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SustainabilityReport
2009
C y t e c I n d u s t r i e s I n c .
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p r o f i l e
2009CyteC IndustrIes InC. is a global specialty chemicals and materials company
focused on developing, manufacturing and selling value-added products. Our
products serve a diverse range of end markets including aerospace, adhesives,
automotive and industrial coatings, chemical intermediates, inks, mining and
plastics. We use our technology and application development expertise to create
chemical and material solutions that are formulated to perform specific and
important functions in the finished products of our customers.
CyteC at a GlanCe• 2009salesof$2.79billion• Approximately5,800employees• 36manufacturingfacilitiesglobally• 3researchcenters• NYSE:CYT
17%
39%
38%
Europe / Middle East/ Africa
Asia-Pacific
Latin America
North America
6%
perCent of 2009 net SaleS by GeoGraphiC reGion
table of ContentS
pa G e 2 Cytec Profile
pa G e 3Chairman’s Letter
pa G e 4 - 5 Strategic Commitment
pa G e 6 - 7 Safety, Security and Occupational Health
pa G e 8 - 9 Social Responsibility
pa G e 1 0 - 1 1 Environmental Performance
pa G e 1 2 - 1 3 Sustainability Innovation
pa G e 1 4Product Stewardship
pa G e 1 5 Value Chain Management
pa G e 1 6 Our Journey
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from the ChairmanIn2009,wemadestrideswithoursustainabilityeffortsatCytecdespiteoperatinginachallengingeconomicclimate,andIampleasedtobringyouthisyear’sSustainabilityReport.
Sustainabilityisasubjectwhichisgrowinginimportanceandvisibility.Whilecontinuingourjourneytowardimplementationofsustainablepracticesinallaspectsofourbusiness,werealizethatsustainabilityisnotonlyaboutenvironmentalstewardship,butalsoeconomicprogressandsocialresponsibility.
AtCytec,safety,healthandprotectingtheenvironmentisourfirstpriority,andweremainfocusedonourvisionofworldclasssafety,healthandenvironmentalperformance.In2009,wewerepleasedwithoursafetyperformance,aswehadamilestoneyearwithimprovementofsixpercentoverarecordsetting2008performance.Ouremployees’dedicationtosafetyisparamount,particularlyduringatimeofchange,andwewillremainfocusedonsafetyasourbusinessclimateimproves.
Wearecommittedtoenvironmentalprogress,especiallyourfocusoncompliancewithregulationsandrespondingtonewlegislation,ourcontinuousimprovementinitiativessuchasenergyandwastereductionprograms,anddevelopmenteffortsonenvironmentallyfriendlyproductsinordertosupporttheindustryinreducingitsenvironmentalfootprint.Cytechasalsomadesignificantprogressinthedevelopmentandpublicrolloutofatool,theiSUSTAIN™GreenChemistryIndex,formeasuringthegreenchemistryofaproductforindustryandacademicinstitutions.
Cytechasasignificantportfolioofeco-friendlyproducts,withincreasingopportunitiestogrowourbusinessaroundtheseproducts.Wehavestrongdifferentiatedtechnologyplatforms,whichincludeourEngineeredMaterials,eco-friendlyRadcureandWaterborneCoatingResins,andInProcessSeparationBusinesses.Wearecommittedtodeliveringtechnologythatmeetsourcustomers’needswithoutcompromisingsafety,healthortheenvironment.
Sustainabilityisagrowingworldwidetrend,andin2009,weintroducedouremployeestotheconceptsofsustainabilityandCytec’ssustainabilityefforts,withafocusedawarenesscampaignatallofourglobalmanufacturing,R&Dandofficelocations.Thiseffortcontinuesin2010.OurpeoplearethecornerstoneofwhatCytecistoday.WearecommittedtoprovidingacultureatCytecthatchallenges,engagesandrewardsouremployees,andinturnwillhelppositivelyimpactsociety.
Throughourcollectiveefforts,weareastrongercompanyaswemoveinto2010.Wewillcontinuetobeproactiveinaddressingoursocial,environmentalandeconomicopportunities,andthisreportdetailsourcommitmenttounderstandingourimpactontheenvironmentandmakingdecisionswithourplanetinmind.Onbehalfofouremployees,weareproudofouraccomplishments,andarelookingforwardtoourfutureachievementsinallaspectsofourbusiness.
Shane FlemingChairman, President, and Chief Executive Officer
f r o M t h e C h a i r M a n 2 0 0 9
Safety, health and environmental (She) policyAtCytec,wearecommittedtothesafetyandhealthofouremployees,contractors,customersandneighbors,andtosustainabilityandtheprotectionoftheenvironment.
Wedemonstratethiscommitmentbystrivingto:• Maintainanopendialoguewithourstakeholders;• Continuallyimproveoursafety,health,security,andenvironmental
performancebymaintaininganeffectivemanagementsystem;• Meetorexceedapplicableregulatoryrequirements;• Enableouremployeestoprotecttheenvironmentandtomaintaina
safe,secureandhealthyworkplace;• Reducewasteandpreventemissionstotheenvironment;• Conserveenergyandmaterialsusagethroughrecovery,reuseand
recycling;• Promotethedevelopmentofproductsthatreducesafety,health
andenvironmentalrisks;• Guideourcustomersinthesafeandresponsibleuseofourproducts;• Provideforthesecurityofourworkplace,employeesandproducts;
and• Setobjectivesandtargetstodrivereductionofriskandimproveour
performance.Weseektoworkwithcontractors,customers,suppliers,distributors,andtransportersthatsharethesecommitments.
Cytec’s She VisionTobeaworldleaderinsafety,health,andsecurityandinthe
protectionoftheenvironment,sothatouremployeeswilltakeprideintheirachievementswhileourshareholderswillenjoythehighestreturnontheirinvestment.
Cytec’s She MissionBuildaglobalteamoffully-engagedemployeescommittedto
theachievementofanincident-freeworkplace.Extendproductstewardshipandsustainabledevelopmentinour
businessactivities,achievingapositiveimpactonourcompany,theenvironmentandthecommunitiesinwhichweoperate.
EnsureacontinuedvalueforallofourstakeholdersthroughtheproperapplicationofourSHEPolicy.
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Sustainability as a Strategic CommitmentAtCytec,webelievethatSafety,HealthandEnvironment(SHE)performanceservesasafoundationforourbusiness.Thus,our SHEVisionistobeaworldclassleaderinSHEPerformance,andourSHEPolicydescribesourcommitmenttosustainabilityandtheprotectionoftheenvironment.
WeknowthatbeingaleaderinSHEwillresultinimprovedfinancialresultsandgreateremployeecommitment.Wewillachievethisbybuildingateamofcommittedemployeeswhoshareinourvision,extendingtheprinciplesofsustainabledevelopmentintoallofourbusinessprocesses,andimplementingamanagementsystemthatwillenableustocontinuouslyimproveourperformance.Strategicplanningisimportanttoalignanorganizationaroundsustainability,andthiswasafocusforCytecthroughout2009. Afterathoroughanalysis,wedevelopedasustainabilitydefinitionthatfitsourbusinessmodel.AtCytec,sustainabilitymeanslivingourvaluesinachangingworld,includingdevelopmentofinnovativeandenvironmentallysustainableproductsthatcompeteinaglobaleconomy;achievingthehigheststandardsofsafety,healthandenvironmentalstewardship;andbeingresponsibletoourstakeholders. Thesestatementsshowhowsustainabilityalignswithourtechnologyplatforms,ourtraditionalSHEprograms,andtheneedsofourstakeholders.Wehavelookedatspecificareaswheresustainabilityappliestoourbusiness–wherethebiggestimpactsareinourbusiness–anddeterminedtheareasthatwewillfocusonthroughapracticalandmeaningfulapproachtosustainability.
practical approach to SustainabilityAtCytec,wehavegonethroughareviewofhowsustainabilitycanbeappliedacrossourenterprise.Therearevarioussustainabilityaspectsthatarerelevanttodifferentbusinessprocesses.Thus,thesustainabilitystrategycanzeroinonwhichaspectsapplytorawmaterialsupply,allthewaythroughtothecustomer.Cytec,aglobalspecialtychemicalsandmaterialscompany,reliesonaddingvalueforourcustomer.Thereforeoursustainabilityeffortsfocusnotonlyonimprovingthesustainabilityofourownproductsbutextendingtechnologytoourcustomersthatwillimprovethesustainabilityoftheiroperations.
organizational focus of SustainabilityForCytec,thereisanorganizationalhierarchytosustainabilityandourapproachisadirectedinteractionwithallstakeholders.WithintheCompany,thereisaSustainabilityCouncil,whichincludescross-functionaltopleadership.Mostrecently,wecreatedabroad-based,multi-functional,virtualSustainabilityCommunityofPractice(SusCoP)tosharebestpracticesandideas.And,thereistheextendedcommunityofallemployeesandtheexternalenvironment.WealsohaveaSHECommitteeoftheBoardofDirectorswhichreviewsprogressagainstourSHEtargets.
2 0 0 9 S t r at e G i C C o M M i t M e n t
Toxicity
Biodegradability
Carboncontent
Renewablecontent
Transportationcostandfootprint
Raw Material Sourcing Inputs
Innovation Process
Designforenvironment
Waterbased
Lowwateruse,lowenergyprocesses
Lesstoxic,safer
Mustsolvecustomerneed
Applygreenchemistryprinciples
Reduceresourceintensity
Reducewaste/improveyield
Lessenergy
Reducewateruse
Reduceemissions
Production
Customer
Solvecustomers’mostdifficultproblems
Meettoday’smarketneeds
Improvecustomersustainability
Benefitsociety
CyteC praCtiCal SuStainability Model
CuStoMer foCuS
Cytec works with customers to help with their sustainability efforts, while focusing on bringing value to the products they produce.
Cytec has a wide range of resins used in eco-friendly coatings systems. One example is the UV RADCURE® coatings on plastics predominantly used in consumer electronics. Cytec’s technology helps manufacturers create coatings for plastics that dry faster using less energy during production.
Cytec is leveraging our technology leadership in aerospace composites to investigate other high-performance industrial composites markets such as wind energy. Cytec helps our customers, and their customers, be environmentally friendly.
Our carbon fiber composites make airplanes lighter, stronger and, therefore, more fuel efficient.
Our waterborne resins also help meet the environmental needs of our customers. These solvent-free liquid coatings, found in paints, are not harmful to the environment during the drying process.
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S t r at e G i C C o M M i t M e n t 2 0 0 9
our Stakeholder Commitment: Voluntary and other programs Wewillcontinueourproactiveapproachinaddressingoursocial,environ-mentalandeconomicopportunities,andthisalsomeansinvolvementinuniqueopportunitiestosupportthiseffort.Someexamplesareshownbelow:• CytecwasoneofthefirstcompaniestoteamupwiththeU.S.Environmental
ProtectionAgency(EPA)intheSustainableFutures™Programin2006.ThisprogramhasenabledtheCompanytousesophisticatedmodelingandothertoolstoassesstheimpactofourproductsontheenvironment.
• Cyteciscommittedtoimplementinganexternallycertified,ISO-based,SHEManagementSystemat100percentofoursitesglobally.Asof2009,92percentofoursiteshaveimplementedtheSHEManagementSystem,andwehaveachievedcertificationofallbutthreeofourlocations.
• Throughout2009,ourtechnicalexpertshaveattendedtradeassociationconferencessharingourcompany’sbestpracticesandpracticalapproachestosustainability.Theseincluded:- AmericanChemistrySociety(ACS)GreenChemistryInstitute(GCI)
StandardsGroupMeetinginJuly- AmericanInstituteofChemicalEngineers(AIChE)SustainabilityCongress
MeetinginAugust- TheConferenceBoard’sEnvironmental,HealthandSecurityCouncil.
sessionsinNorthAmericainSeptemberandinEuropeinOctober.• CytechostedanEPADesignfortheEnvironmentmeetingin2009with
representativesoftheU.S.EPA’sDesignfortheEnvironmentProgramoffice.ThismeetingresultedinanexcellentinformationalexchangeandincludedanoverviewoftheEPADesignfortheEnvironmentcertificationprogram.ProductsmeetingEPAsustainabilitycriteriareceiveanactualcertificationlabel,thusallowingfor“green”claims.
Inaddition,eachofourbusinesses,BuildingBlockChemicals(BBC),CytecEngineeredMaterials(CEM)andCytecSpecialtyChemicals(CSC),hasreachedouttolike-mindedcustomerstodiscusshowwecanworktogethertoimprovesustainabilityperformanceandcontributetowardadditionalsustainabilityefforts.
SuStainability at CyteC
Living our Values in a Changing World
Delivering innovative and sustainable products that compete in a global economy
Achieving the highest standards of safety, health and environmental stewardship
Understanding our responsibility to our customers, our employees, our shareholders and other stakeholders
StatuS of the Global She ManaGeMent SySteM
CertifiCation
92%Certified
8%Remaining
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our priorityOperatingsafelytoprotectouremployeesfromworkplaceinjuriesandillnesses,tocomprehensivelymanagehealthriskstoourpeople,tosafeguardthecommunitiesadjacenttoourfacilities,andtopreservethenaturalenvironmentforallofusandfuturegenerationsisthefundamentalpriorityatthecoreofeverythingthatwedoatCytec.Wehavebeen–andcontinuetobe–attheforefrontofourindustryasaleaderinsettingthepaceinprocedures,programsand,mostimportantly,performancerelatingtoSafety,HealthandtheEnvironment.
employee SafetyCytec’sgoaliszeroinjuries.Safetyisournumberonepriority,andwestrivetoachieveaninjury-freeworkplace.OurleadersmadecommitmentstosafetythroughCytec’sVisibleSafetyLeadershipProgram,whichbeganin2008.Wecontinuedourcommitmenttosafetyin2009byinvestingapproximately$14millioninsafetycapitaltoreducethepotentialforprocessincidentsandotherrisk.Cytecalsoreneweditsfocusonincorporatingsafety,healthandenvironmentalaspectsinproductandprocessdesign,andweareworkingtointegrateourDesignforSHE(DFSHE)principlesintopractice.Theseeffortswillcontinuein2010.
injuriesFor2009,ourRecordableInjuryFrequencyonaglobalbasiswas0.84,improvingourperformancebysixpercentagainst2008,whichmarksourbestperformancetodate.Nearly50percentofourmanufacturingsiteshadnorecordableinjuriesin2009.Whilewearepleasedwiththeperformanceimprovement,weremainfocusedoncontinuouslyreducinginjuries,andhaveagainseta10percentimprovementtargetfor2010.
Ourlosttimeinjuryfrequencywas0.37in2008and0.28in2009.Thisrepresentsadramaticimprovement,especiallyduringadifficulteconomictimewhensafetyperformancetypicallyslips.
process SafetyWedefinethemostseriousprocessincidentsasunplannedprocessincidentsthatcouldcauseinjuriesormonetarydamage.During2009,wehadsixsuchincidentsthatmetthesecriteria.Theincreasecanpartiallybeexplainedbyachangeinourmetric.However,wearefocusingonreducingtheseandourpotentialforexposuretoprocessincidents.Wearealsoimprovingoursystemstoinvestigatetherootcausesoftheseincidents.WehavefurtherrefinedourprocesssafetyincidentmetrictobeconsistentwiththeCenterforChemicalProcessSafety(CCPS)metricaswemoveforward.Ourgoalfor2010istoreduceallprocesssafetyincidentsbyfivepercent.
Alsointheareaofprocesssafety,Cytecisnowimplementinganewstandardtomanagecombustibledustinadvanceofanyregulatoryrequirements.In2009,wefinalizedandissuedathermal(hot)fluidstandardinordertomoreadequatelyprotectourpeopleandfacilitiesintheeventofaleakwhichwouldlikelyresultinafire.
2 0 0 9 S a f e t y, S e C u r i t y a n d o C C u pat i o n a l h e a lt h
Energy Consumption and Intensity
0
1
2
3
2 0 0 92 0 0 7M
illion
MW
HEn
ergy
Cons
umpt
ion
1 .0
1 .2
1 .4
1 .6
1 .8
2 .0
Ener
gy In
tens
ity(K
WH/
KG)
CSC BBC CEM Intensity2 0 0 8
Accidental Releases to Environment 2002-2009
51
9 4 3 3 4 11
5129 19 25 27 32 22
11396 91
69 77
50
70
20406080
100120140160180
2002 2003 2004 2005 2006 2007 2008
# Rele
ases
to En
viron
men
t (>
1 lbs
.)
Land Air Water Total
31
17 2 02 2
1 0
2 0
3 0
4 0
2005 2006 2007 2008
REACH Timeline
Even
t
Year2007 2009 2011 2014 2019
>1 ton>100 tons
>1000 tons
REACH Authorized
REACH Implemented
Cytec Recordable Injury Frequency
1.641.45
1.20 1.24 1.17 1.220.89
0
1
2
2002 2003 2004 2005 2006 2007 2008 2009
Reco
rdab
le In
jury F
requ
ency
Serious Process Safety Incidents
114 3 2 11
1
1
012345678
# of In
ciden
tsNon-U.S.U.S.
2002 2003 2004 2005 2006 2007 2008 20090 2
4
2
0.84
3439
7
2009
2009
11
Number of Permit Excursions by Year
Cytec Waste Performance - Year to YearAbsolute Basis: Change in kg production
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2006 - kgproduction
2006 - 2007 2006 - 2008 2006 - 2009
Thou
sand
s
Waste Generation and Intensity (Kg waste/1,000 kg production)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2006 2007 2008 2009
Was
te G
ener
ation
(in
thou
sand
s kg.)
0
10
20
30
40
50
60
Was
te In
tens
ity (k
g. wa
ste /
1,000
kg. o
f pro
ducti
on)
CSC BBC CEM Intensity
Energy Consumption and Intensity
0
1
2
3
2 0 0 92 0 0 7
Milli
on M
WH
Ener
gy Co
nsum
ption
1 .0
1 .2
1 .4
1 .6
1 .8
2 .0
Ener
gy In
tens
ity(K
WH/
KG)
CSC BBC CEM Intensity2 0 0 8
Accidental Releases to Environment 2002-2009
51
9 4 3 3 4 11
5129 19 25 27 32 22
11396 91
69 77
50
70
20406080
100120140160180
2002 2003 2004 2005 2006 2007 2008
# Rele
ases
to En
viron
men
t (>
1 lbs
.)
Land Air Water Total
31
17 2 02 2
1 0
2 0
3 0
4 0
2005 2006 2007 2008
REACH Timeline
Even
t
Year2007 2009 2011 2014 2019
>1 ton>100 tons
>1000 tons
REACH Authorized
REACH Implemented
Cytec Recordable Injury Frequency
1.641.45
1.20 1.24 1.17 1.220.89
0
1
2
2002 2003 2004 2005 2006 2007 2008 2009
Reco
rdab
le In
jury F
requ
ency
Serious Process Safety Incidents
114 3 2 11
1
1
012345678
# of In
ciden
ts
Non-U.S.U.S.
2002 2003 2004 2005 2006 2007 2008 20090 2
4
2
0.84
3439
7
2009
2009
11
Number of Permit Excursions by Year
Cytec Waste Performance - Year to YearAbsolute Basis: Change in kg production
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2006 - kgproduction
2006 - 2007 2006 - 2008 2006 - 2009
Thou
sand
s
Waste Generation and Intensity (Kg waste/1,000 kg production)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2006 2007 2008 2009
Was
te G
ener
ation
(in
thou
sand
s kg.)
0
10
20
30
40
50
60
Was
te In
tens
ity (k
g. wa
ste /
1,000
kg. o
f pro
ducti
on)
CSC BBC CEM Intensity
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plant SecurityCyteciscommittedtosecurityatallofourlocations.ThisisanimportantcomponentofourSHEManagementSystemrequirements,withapurposeofhelpingtoprotectpeople,property,products,processes,informationandinformationsystemsbyenhancingsecurity,includingsecurityagainstpotentialterroristattack,notonlyatplantlocations,butthroughoutthechemicalindustryvaluechain.
TheDepartmentofHomelandSecurity(DHS)hasissuedChemicalFacilityAnti-TerrorismStandardsforanyfacilitythatmanufactures,uses,storesordistributescertainchemicalsatoraboveaspecifiedquantity.ThisrequirementappliestosomeoftheCytecfacilitiesintheU.S.and,whereapplicable,allrequiredsubmittalshavebeenmadeontimeoraheadofschedule.SubmittalsrequireduptothispointintimehaveincludedtheTopScreensecurityassessment,designedbytheDHStogiveapreliminaryevaluationofpotentialrisk;theSecurityVulnerabilityAnalysis,designedtogiveDHSamorequantifiableevaluationofpotentialrisk;andtheSiteSecurityPlan,whichidentifiesexistingand/orplannedsecuritymeasuresinordertoallowtheDHStoassesstheadequacyofprotectivemeasures.Insomeinstances,Cytecfacilitieshaveworkedtoeliminatetheuseofthechemicalsthatmadethemsubjecttotherequirement.Wherethisisnotpossible,CytecwillworkwiththeDHStomeetallfuturesecurityrequirements,includingtheRiskBasedPerformanceStandards.
occupational health & WellnessEarlyin2009,Cytec’sfocusonoccupationalhealthactivities
expandedwiththecreationofanewOccupationalHealthCenterofExcellence(OHCOE)tomeettheneedsofCytectodayandinthefuture.ThisnewfunctionisresponsibleforimplementingacomprehensivestrategyformanagingoccupationalhealthrisksacrossCyteconaglobalbasiswithformalcollaborationwithCytec’smedicalandhealthprofessionals.
Overthepastyear,Cytec’sOccupationalHealthstrategyfocusareasincluded:• FurtherdevelopingtheOccupationalHealthCenterofExcellence
organizationtoleverageCytec’sexpertiseandresourcesprovidingmoreeffectiveandefficientservicesonaglobalbasis.
• Updatingfoundationprocessessuchashealthhazardidentification,healthriskassessment,exposureassessmentandhealthsurveillance.Aglobalizedoccupationalhealthriskassessmentprocess,integratingEuropeanandNorthAmericancriteria,hasbeendevelopedandisbeingpilotedtoensuresiteresourcesarefocusedonmanagingkeyrisks.
• Installingarisk-basedfocustoouroccupationalhealthactivitiesandeffortstoobtainthebestbenefittoCytec.
• Integratingoccupationalhealthintoourproductdevelopment,processdevelopment,andsustainabilityactivities.
Inanefforttodevelopastrategyforcomprehensivelymanagingallhealthimpactstoleadtohealthierandmoreproductiveemployees,wearedevelopingaCytecComprehensiveWellnessPrograminwhichemployeescanproactivelytakechargeoftheirhealthandwell-beingwithaccesstovariousinformationandresources.
HealthandwellnesshaslongbeenapartofCytec’sSHEculture.Oursitescontinuetoenthusiasticallysupportwellnessactivitiesandarecommittedtothehealthandwell-beingofeachotherandtheircommunities,whichwillbeleveragedinCytec’scomprehensiveprogram.Afewsiteexamplesareshownbelow:• OurGraz,Austria,sitewasoneof14localsitesintheStyrianregion
thatrecentlyreceivedaqualitysealforoutstandingoccupationalhealthpromotion.
• In2009,theWelland,Canada,facility’sWellnessCommitteewasrecognizedbytheCanadianBloodServicesfortheirinvolvementanddedicationtothenationwideprogram“PartnersforLife,”promotingtheimportanceofblooddonationtothelocalcommunity.
• AtourFortierplantinLouisiana,anon-sitefitnessfacilityandpersonaltrainingareprovidedtoemployees.
• Wellandhasfocusedhealthriskassessments,andothersiteshavesimilarprogramsinplacetoenhancewellness.
2 0 0 9 S a f e t y, S e C u r i t y a n d o C C u pat i o n a l h e a lt h S a f e t y, S e C u r i t y a n d o C C u pat i o n a l h e a lt h 2 0 0 9
the fortier Manufacturing facility in louisiana
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GovernanceCytechasamatureauditingprocesstoassesscompliancewithapplicablesafety,healthandenvironmentalregulations.Inaddition,wemaintaindetailedSHEoperatingstandardswhicharerequiredonaglobalbasis.WeauditagainstbothourregulatorycomplianceandcompliancewithCytec’sstandards.
Wemonitoremergingregulationstoensurethatoursitesareabletomeetupcomingrequirements.Ourcompliancerecordhasimprovedovertime.Penaltiespaidhavegraduallyreduced,althoughwedidseeanincreasein2009duetoincreasedregulatoryagencyenforcementactionsandaggressivepenaltysetting.Additionally,aspartofthepenaltyforthelatereportingofanenvironmentalreleasein2009,weagreedtopayforasupplementalenvironmentalprojectthatamountedtoatotalof$10,576.
TypePenalties ($US)
2007 2008 2009
SafetyandHealth 4,000 18,000 1,320
Environmental 10,231 66,050 161,048
Transportation 5,762 3,975 10,070
Other 50 0 0
Totals 20,043 88,025 172,438
Wetrackandmonitorcompliancewithourpermitparametersandhavesignificantlyreducedpermitexcursionsoverthepastfiveyears.Also,inspectionsandnoticesofviolationaremonitored,aswellasneighborcomplaints.Wecontinuetoworktomaintaingoodrelationshipswithlocalregulatoryagencies.
Oursiteremediationprogram,whichhasbeeninplacesinceCytec’sinception,focusesonreducinglong-termliabilities,activelyassessingoff-siteimpacts,andworkingwiththeregulatoryagenciestoperformsiteassessmentsandremediationprograms.Cytechasmadegoodprogressaddressinglong-termliabilitiesandhasclosed,remediated,andinsomecases,helpedtodeveloplegacyproperties.Wecontinuetolookforopportunitiestopartnerwithlocalintereststobringourremediationsitestoviableeconomicuse.
Asanexample,inNiagaraFalls,Canada,theCityofNiagaraFallswillopena$30million,four-padrecreationalicehockeyarenacomplexinSeptember2010thatisbeingconstructedona16.5acreparcelofaformerCytecmanufacturingfacility.Cytecdonatedthe16.5acrestotheCityafterremediatingthepropertyin2007.CyteciscontinuingtoworkwiththeCityofNiagaraFalls,theNiagaraRegionDepartmentofTransportationandalocaldeveloperinexploringadditionalopportunitiestofurtherdeveloptheremaining77acresoflandthatmadeupthisformermanufacturingsite.Currently,threeotherparcelsofthesiteareunderconsiderationbytheCityandNiagaraRegionforfurtherdevelopment.
Management SystemsCyteccontinuestofullyimplementanexternallycertifiedSHE
ManagementSystemonaglobalbasis.OursystemincorporatesISO14001(environment),RC14001,security,productstewardship,emergencyresponse,andvaluechainmanagementrequirementsandhasjustrecentlyincludedOHSAS18001(occupationalsafety).In2009,allbutthreefacilitiessuccessfullyimplementedtheSHEManagementSystem.Theremainingsiteswillcompletetheimplementationoftheirsystemsin2010.
Community involvementCytecemployeesareactivelyinvolvedinthecommunitiesinwhichtheyliveandwork.Volunteersparticipateineducationalactivities,healthandhumanserviceprogramsandenvironmentalinitiatives.
GivingbacktothecommunitiesinwhichweoperatehasbeenalongstandingpartofCytec’shistory.Wehaveadecentralizedapproachtocommunityinvolvement.Donationsandparticipationinspecificinitiativesaredeterminedlocallybyregionalneedsandcultures.Someexamplesofinvolvementin2009include:• Mentoringstudents,participatinginsciencefairsandhosting
planttours• Awardingscholarshipstostudentsexcellinginscience• Supportingfund-raisersthroughvolunteerismandgiving• Hostingcommunityhealthfairsandblooddrives• Hostingenvironmentalawarenesseventsincludingtreeplantings
andrecyclingactivities.Severalofourmanufacturingfacilitiesarealsoinvolvedin
CommunityAdvisoryPanels(CAP).
2 0 0 9 S o C i a l r e S p o n S i b i l i t y
Cytec Malaysia Country Manager Zulfaizal Badarudin received the Prime Minister’s Hibiscus Award on behalf of the Seremban, Malaysia, facility.
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Cytecfacilitiesareregularlyrecognizedfortheircommitmentstotheirlocalcommunitiesanddedicationtosafety,healthandtheprotectionoftheenvironment.In2009,ourfacilitiesreceivedseveralprestigioushonorsforavarietyofsocialresponsibilityeffortsincluding:• Cytec’sRayong,Thailand,sitewashonoredwithanEnvironmental
GovernanceAwardbytheGovernoroftheIndustrialEstateAuthorityofThailandforexcellenceintheprinciplesofEnvironmentalGovernanceManagement.
• Cytec’sSeremban,Malaysia,facilityreceivedthePrimeMinister’sHibiscusAwardinrecognitionofnotableperformanceinenvironmentalmanagement.ThePrimeMinister’sHibiscusAwardisthecountry’spremierprivatesectorenvironmentalawardforbusinessandindustrythatrecognizesenvironmentalaccomplishmentsandleadership.
• Cytec’sWelland,Canada,plantwashonoredfortheirlongstandingexcellentsafetyrecordwithavisitfromtheMinistryofLabourandlocalMemberofParliamentforamediaeventtokickofftheMinister’scampaigntoaddress“Trips,SlipsandFalls.”
• Cytec’sWinona,Minnesota,facilityreceivedtheGovernor’sSafetyAwardforExcellenceinWorkplaceSafetyandHealthfromtheMinnesotaSafetyCouncil.
• Cytec’sFortierplantinLouisianareceivedthe“WorkforceInvestor”awardfromtheLouisianaWorkforceCommission,thestate’slabordepartment.
• Cytec’sAtequiza,Mexico,facilitywasre-certifiedinFebruary2009as“CleanIndustry”bytheMexicanFederalEnvironmentProtectionProsecutor(PROFEPA);thesitewasoneofthefirstplantscertifiedin2001andhasbeenre-certifiedeverytwoyearssince.
our employeesCytecknowsthatprogressandgrowthdependoneachemployeetakingresponsibility,beingcreativeandcontributingtosuccessfulperformance.Wevalueouremployeesandstrivetokeepthemengaged,empoweredandchallengedsotheycanenjoysuccess.Weinvestinouremployees’education,growthandpersonaldevelopmentby:• Providingastructuredprogramforemployeedevelopmentand
careerpath• Supportingemployeementoringprograms• ProvidingeducationalassistancetoeligibleCytecemployeesseeking
highereducation.Werealizetheinnovativepolicies,benefitsandprogramswe
offerouremployeestopromotehealthandwell-beingnotonlyleadtoamoreproductiveandenergizedworkforce,buthelpourlocalcommunitiesandbenefitCytecasawhole.Someofouruniqueprogramofferingsinclude:• MaternityLeavewithfullcompensationincludingtimeallotted
priortothebirthofachildandPaternity/AdoptionLeavewithfullcompensation
• Aglobalwomen’snetworktoprovideanopportunityforcommunicationandcareerdevelopmentforCytecemployees
• ACytecScholarshipProgramforsonsanddaughtersofCytecemployeesidentifiedasexceptionallyablehighschoolstudentsconductedannuallybyNationalMeritScholarshipCorporation(NMSC),anindependent,not-for-profitorganization
• Ourpharmacyvendor’stool,whichmonitorsthemedicalandprescriptiondrugclaimsofU.S.employees,retireesanddependentsandidentifiessafetyrisksthatmayresultinhospitalizationandotheradverseoutcomes
• Ourmedicalvendor’snurselineprogram,whichisavailabletoU.S.employees,retireesanddependentsandprovidesmemberswithtelephonicaccesstoalivenurseona24/7basis.
Additionally,ourcorporatewellnessprogramandflextimeinitiativesarebeingdeveloped,andeffortstoidentifyandimplementthesetypesofprogramswillcontinuein2010.
S o C i a l r e S p o n S i b i l i t y 2 0 0 9
9
10
resource useDuring2009,Cytecutilizedanewenvironmentalmetricstrackingsystemthatcapturesallwaste,energy,greenhousegas,SulfurOxides/NitrousOxides(SOx/NOx),waterconsumption,andrelateddata.Thissystemishelpingoursitestrackandmonitortheirperformanceagainsttargets.OneofCytec’stopgoalsistoreducewasteandenergyusageacrosstheCompany.Wehavesetfive-yeartargetsof15percentimprovementinwastereductionandenergyefficiencyandareworkingtowardsachievingtheselong-termgoals.
Waste reduction and energy efficiencyCytec’soperationsimprovementinitiativeshavefocusedonreducingwasteandenergyconsumptionatourmanufacturingsites.Inabsoluteterms,in2009,Cytecreducedenergyuseby12percentandreducedwasteby32percentforthesameperiod,ascomparedto2008.TheCompanyhaswellestablishedprocessesandtoolssuchasSixSigma,LeanandWorkout,whichareusedtosupportcontinuousimprovementacrossthecompany.ThesetoolshavehelpedCytecfindopportunitiestoreducewasteandenergyuseatourfacilities.
TheCompany’swasteperformanceimprovedinanumberofareaslastyear,despitemanychallengesasaresultoftheeconomicdownturn.In2009,Cytecachieveda9.7percentwasteintensityimprovementonaweightaveragebasis,measuredaskgwaste/kgproduction,anda32percentreductioninwasteonanabsolutebasiseliminatingapproximately1,360truckloadsofwastewhencomparedtoour2008wastegeneration.Thesewastereductionachievementsweretheresultofyieldimprovements,wastewaterrecyclingandreuseinitiatives,solventreclamationeffortsandthesaleofco-productstreamsintothemarketforuseasarawmaterialinamanufacturingprocess.Whileourdecreasedproductionlevelsaidedwiththereductionofwastegenerationonanabsolutebasis,itactuallyworkedagainstusontheweightaveragebasisasunitslikeourwastewaterpretreatmentfacilitiescontinuedtoproducesludgeatnormallevels.Cytecisontrackinachievingitslong-termwasteintensitygoalof 15percentreductionby2012.
Cyteccontinuestoinvestsignificantcapitaltoimproveenergyefficiencyatmanyofouroperatinglocations.In2007,tosupporttheseefforts,Cytecsetaninternalenergyefficiencyimprovementgoalof15percentby2012.Sincethen,Cytechasdevelopedanactiveenergyprogramfocusedonimprovementsinenergyefficiencythroughbothcapitalinvestments,aswellasnon-capitaloperatingimprovements.In2009,theseimprovementswereovershadowedbyasloweconomyreflectedbyaslowdowninproduction.Asaresult,theamountofenergyusedversustheamountofproductmade(KWH/kgproduct)increased,resultinginadecreaseinefficiencyof2.7percentagainsttheannualenergyimprovementtargetof3percent.TheabsoluteenergyuseacrossCytecdroppedby12percentwhencomparedto2008,butoverthesametimeperiod,productiondroppedby14percent.
Acrossthecompany,capitalimprovementshavebeenimplementedtoexpandcapacityandimproveefficiencyoffurnaces,upgradesteamdistributionsystemsandinstallvariablefrequencydrivesandeconomizerstoimproveenergyefficiency.Operationalimprovementsincludedbetterandmorefrequentenergyaudits,aswellasmoreeffectivelymatchingenergysupplytoprocessdemands.Thesepracticesaresharedacrossthemanufacturinglocationstoimproveefficiencies.
Inthefuture,greateremphasiswillbeplacedonidentifyingmetricsthatbetterreflectimprovementsinenergyperformanceinthesechallengingtimesandonidentifyingprocessimprovementprojectsthatdirectlyimpactenergyconsumptiontohelpachieveour2012goals.
2 0 0 9 e n V i r o n M e n ta l p e r f o r M a n C e
Energy Consumption and Intensity
0
1
2
3
2 0 0 92 0 0 7
Milli
on M
WH
Ener
gy Co
nsum
ption
1 .0
1 .2
1 .4
1 .6
1 .8
2 .0
Ener
gy In
tens
ity(K
WH/
KG)
CSC BBC CEM Intensity2 0 0 8
Accidental Releases to Environment 2002-2009
51
9 4 3 3 4 11
5129 19 25 27 32 22
11396 91
69 77
50
70
20406080
100120140160180
2002 2003 2004 2005 2006 2007 2008
# Rele
ases
to En
viron
men
t (>
1 lbs
.)
Land Air Water Total
31
17 2 02 2
1 0
2 0
3 0
4 0
2005 2006 2007 2008
REACH Timeline
Even
t
Year2007 2009 2011 2014 2019
>1 ton>100 tons
>1000 tons
REACH Authorized
REACH Implemented
Cytec Recordable Injury Frequency
1.641.45
1.20 1.24 1.17 1.220.89
0
1
2
2002 2003 2004 2005 2006 2007 2008 2009
Reco
rdab
le In
jury F
requ
ency
Serious Process Safety Incidents
114 3 2 11
1
1
012345678
# of In
ciden
ts
Non-U.S.U.S.
2002 2003 2004 2005 2006 2007 2008 20090 2
4
2
0.84
3439
7
2009
2009
11
Number of Permit Excursions by Year
Cytec Waste Performance - Year to YearAbsolute Basis: Change in kg production
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2006 - kgproduction
2006 - 2007 2006 - 2008 2006 - 2009
Thou
sand
s
Waste Generation and Intensity (Kg waste/1,000 kg production)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2006 2007 2008 2009
Was
te G
ener
ation
(in
thou
sand
s kg.)
0
10
20
30
40
50
60
Was
te In
tens
ity (k
g. wa
ste /
1,000
kg. o
f pro
ducti
on)
CSC BBC CEM Intensity
11
Energy Consumption and Intensity
0
1
2
3
2 0 0 92 0 0 7
Milli
on M
WH
Ener
gy Co
nsum
ption
1 .0
1 .2
1 .4
1 .6
1 .8
2 .0
Ener
gy In
tens
ity(K
WH/
KG)
CSC BBC CEM Intensity2 0 0 8
Accidental Releases to Environment 2002-2009
51
9 4 3 3 4 11
5129 19 25 27 32 22
11396 91
69 77
50
70
20406080
100120140160180
2002 2003 2004 2005 2006 2007 2008
# Rele
ases
to En
viron
men
t (>
1 lbs
.)
Land Air Water Total
31
17 2 02 2
1 0
2 0
3 0
4 0
2005 2006 2007 2008
REACH Timeline
Even
t
Year2007 2009 2011 2014 2019
>1 ton>100 tons
>1000 tons
REACH Authorized
REACH Implemented
Cytec Recordable Injury Frequency
1.641.45
1.20 1.24 1.17 1.220.89
0
1
2
2002 2003 2004 2005 2006 2007 2008 2009
Reco
rdab
le In
jury F
requ
ency
Serious Process Safety Incidents
114 3 2 11
1
1
012345678
# of In
ciden
ts
Non-U.S.U.S.
2002 2003 2004 2005 2006 2007 2008 20090 2
4
2
0.84
3439
7
2009
2009
11
Number of Permit Excursions by Year
Cytec Waste Performance - Year to YearAbsolute Basis: Change in kg production
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2006 - kgproduction
2006 - 2007 2006 - 2008 2006 - 2009
Thou
sand
s
Waste Generation and Intensity (Kg waste/1,000 kg production)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2006 2007 2008 2009
Was
te G
ener
ation
(in
thou
sand
s kg.)
0
10
20
30
40
50
60
Was
te In
tens
ity (k
g. wa
ste /
1,000
kg. o
f pro
ducti
on)
CSC BBC CEM Intensity
Thechartbelowindicatesoverallthatenergyconsumptiondeclinedandintensityincreasedbetween2008and2009.
Greenhouse Gas emissionsIn2007,CytecbecameamemberofEPAClimateLeaders,anindustry-governmentpartnershipthatworkstodevelopcomprehensiveclimatechangestrategies.Sincethen,Cytechascommittedtoreduceimpactontheglobalenvironmentbycompletingacorporate-wideinventoryofourGreenhouseGas(GHG)emissionsbasedonourSHEManagementSystem,settingaggressivereductiongoals,andannuallyreportingprogresstoEPA.
CytechassetaninternalGHGemissionsefficiencyimprovementof12percentby2012.Duetothedownturnintheeconomy,atrendsimilartoenergywasseeninGHGemissions.TheamountofGHGemittedversustheamountofproductmade(kgCO2equivalents/kgproduction)increased,ascomparedto2008,resultinginadecreaseinefficiencyof4.2percentagainstanannualimprovementtargetof2percent.TheabsolutereductioninGHGwas11percentin2009ascomparedto2008or13percentreductionsince2007.Thecorrespondingreductioninproductionwasgreaterthan11percentin2009.
WiththecompletionoftheGHGinventoryandtheuseoftheWeb-baseddatacollectionsystem,CytecwillbetrackingGHGemissionsandefficiencyimprovementsagainsttherequirementssetbyClimateLeadersbasedonWorldResourcesInstitute(WRI)andtheWorldBusinessCouncilforSustainableDevelopment(WBCSD)protocols.
releases to the environmentCytectracksallreleasesofmaterialstotheenvironment,includingair,waterandland,aswellasreleasestosecondarycontainment,includingairpollutioncontrolequipmentandwastewatertreatmentsystems.Oursiteshavehadacontinuousimprovementgoaltoreduceallunanticipatedemissionstotheenvironmentby10percent,year-on-year(seechartbelow).During2009,thenumberofreleasestotheenvironmentgreaterthanonepoundofmaterialwas80,thesameasin2008.Forthosefacilitiesthatdidnotshowimprovement,plansareinplacetoidentifyneedsandimplementactivitiestoaddressoperations,datacollectionandanalysis.
environmental Compliance ManagementCytectrackscompliancewithourenvironmentalpermitsbymeasuringthenumberofeventsleadingtoanexceedanceofapermitlimit.Shownbelowisourpermitcomplianceperformanceoverthelastfouryears.
Since2005,wehaveimprovedcomplianceby65percent,whileatthesametime,doublingthenumberofmanufacturingfacilitiesthatareregulated.
Wecurrentlytrackvolumesofwastewaterandsludgegeneratedfordisposalandincludereductionofsuchwasteinourperformancemetrics.
e n V i r o n M e n ta l p e r f o r M a n C e 2 0 0 9
Energy Consumption and Intensity
0
1
2
3
2 0 0 92 0 0 7
Milli
on M
WH
Ener
gy Co
nsum
ption
1 .0
1 .2
1 .4
1 .6
1 .8
2 .0
Ener
gy In
tens
ity(K
WH/
KG)
CSC BBC CEM Intensity2 0 0 8
Accidental Releases to Environment 2002-2009
51
9 4 3 3 4 11
5129 19 25 27 32 22
11396 91
69 77
50
70
20406080
100120140160180
2002 2003 2004 2005 2006 2007 2008
# Rele
ases
to En
viron
men
t (>
1 lbs
.)
Land Air Water Total
31
17 2 02 2
1 0
2 0
3 0
4 0
2005 2006 2007 2008
REACH Timeline
Even
t
Year2007 2009 2011 2014 2019
>1 ton>100 tons
>1000 tons
REACH Authorized
REACH Implemented
Cytec Recordable Injury Frequency
1.641.45
1.20 1.24 1.17 1.220.89
0
1
2
2002 2003 2004 2005 2006 2007 2008 2009
Reco
rdab
le In
jury F
requ
ency
Serious Process Safety Incidents
114 3 2 11
1
1
012345678
# of In
ciden
ts
Non-U.S.U.S.
2002 2003 2004 2005 2006 2007 2008 20090 2
4
2
0.84
3439
7
2009
2009
11
Number of Permit Excursions by Year
Cytec Waste Performance - Year to YearAbsolute Basis: Change in kg production
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2006 - kgproduction
2006 - 2007 2006 - 2008 2006 - 2009
Thou
sand
s
Waste Generation and Intensity (Kg waste/1,000 kg production)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2006 2007 2008 2009
Was
te G
ener
ation
(in
thou
sand
s kg.)
0
10
20
30
40
50
60
Was
te In
tens
ity (k
g. wa
ste /
1,000
kg. o
f pro
ducti
on)
CSC BBC CEM Intensity
Energy Consumption and Intensity
0
1
2
3
2 0 0 92 0 0 7
Milli
on M
WH
Ener
gy Co
nsum
ption
1 .0
1 .2
1 .4
1 .6
1 .8
2 .0
Ener
gy In
tens
ity(K
WH/
KG)
CSC BBC CEM Intensity2 0 0 8
Accidental Releases to Environment 2002-2009
51
9 4 3 3 4 11
5129 19 25 27 32 22
11396 91
69 77
50
70
20406080
100120140160180
2002 2003 2004 2005 2006 2007 2008
# Rele
ases
to En
viron
men
t (>
1 lbs
.)
Land Air Water Total
31
17 2 02 2
1 0
2 0
3 0
4 0
2005 2006 2007 2008
REACH Timeline
Even
t
Year2007 2009 2011 2014 2019
>1 ton>100 tons
>1000 tons
REACH Authorized
REACH Implemented
Cytec Recordable Injury Frequency
1.641.45
1.20 1.24 1.17 1.220.89
0
1
2
2002 2003 2004 2005 2006 2007 2008 2009
Reco
rdab
le In
jury F
requ
ency
Serious Process Safety Incidents
114 3 2 11
1
1
012345678
# of In
ciden
ts
Non-U.S.U.S.
2002 2003 2004 2005 2006 2007 2008 20090 2
4
2
0.84
3439
7
2009
2009
11
Number of Permit Excursions by Year
Cytec Waste Performance - Year to YearAbsolute Basis: Change in kg production
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2006 - kgproduction
2006 - 2007 2006 - 2008 2006 - 2009
Thou
sand
s
Waste Generation and Intensity (Kg waste/1,000 kg production)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2006 2007 2008 2009
Was
te G
ener
ation
(in
thou
sand
s kg.)
0
10
20
30
40
50
60
Was
te In
tens
ity (k
g. wa
ste /
1,000
kg. o
f pro
ducti
on)
CSC BBC CEM Intensity
12
2 0 0 9 S u S ta i n a b i l i t y i n n o Vat i o n
Global Cytec CommitmentIn2008,CytecintegratedsustainabilityandgreenchemistrypracticesintoitsR&Dprograms.In2009,weworkedtospreadthispracticethroughoutthecompany.Theestablishmentofahigh-levelSustainabilityCouncilcreatedahigh-leveldialoguearoundthesustainabilitydirectionforthecompanygoingforward.Additionally,aSustainabilityCommunityofPractice(SusCoP)wasformedtoactasacommunicationhubandhelpdisseminatesustainability-relatedinformationtoallfunctionalgroupswithinCytec.TheSusCoPisalsotheinformationarmoftheSustainabilityCouncil,actingastheirresourcetodeveloptacticalapproachestotheuseofrenewablerawmaterialsandexpansionofthemetricsweusetomeasuresustainability.
Cytechasalsoprovidedsustainabilitytrainingforallemployees,havingrolledoutthefirststage,anoverviewofsustainabilityanditsapplicationwithinCytec,latein2009.AdditionalstageswilladdressthespecificactivitiesandactionsapplicabletovariousfunctionalgroupswithinCytec,suchasmanufacturing,procurementandR&D.
renewable raw MaterialsAcross-functionalgroupofemployeesisworkingasasubgroupoftheCytecSustainabilityCommunityofPracticetoadvancethecompany’suseofrenewablerawmaterials(RRM),definedasnaturalresourcesthatarereplenishedbynaturalprocessesofgrowthataratecomparableorfastertoitsrateofconsumption.
Increasingnumbersofproductdevelopmentprojectsareevaluatingtheuseofrenewablerawmaterialsinadditiontoperformanceimprovements.AfterreducingtheVolatileOrganicCompounds(VOC)contentofcoatingresinsandoverallenergy-savingeffortsinproductionandapplication,theusageofrenewablerawmaterialshasbecomeoneofthemostimportantprinciplesofGreenChemistry.
ThereareseveralexamplesoftheseRRMsusedinCytec’sproducts,suchasoilsandfattyacids,includingtheirderivatives,andglycerolfromoilseedcropsandtheirconversionprocess.
InadditiontodevelopingdefinitionsandusageequationsforRRM,thesubgrouphasdevelopedanupdatedlistofrenewablerawmaterialsusedinCytec,whichithasmadeavailabletotheCytectechnicalcommunity.ThegrouphasnowturneditsattentiontomakingupalistofrenewablerawmaterialsthatarenotusedinCytec,butcouldbeusedbythecompany.
Theusageofrenewableresourcesasfeedstockforchemicalproductionhasclearadvantages,sincetheyareCO2-neutral(acyclicprocesswithnonetgain),notpersistentintheenvironment,andcanrequirefewerstepsinsynthesis,becauseofthecomplexityalreadyprovidedintheirstructures.
Sustainability indexCytechasexpandedtheuseofourinternally-developediSUSTAIN™GreenChemistryIndex,basedontheTwelvePrinciplesofGreenChemistry1,throughoutourR&Dorganization.Interestgeneratedoutsideofthecompanybydemonstrationatvariousvenues,plustheurgingofourcollaboratorinthiswork,Dr.JohnWarneroftheWarner-BabcockInstituteofGreenChemistry(WBI),haspromptedustoworktowarddevelopingapublicWeb-basedversionoftheIndex.
Asaresult,CytechascreatedaniSUSTAINAlliancewithSopheonCorporation,aninternationalproviderofproductlifecyclemanagementsoftwareandservicesthatimprovethebusinessimpactofproductinnovation,andBeyondBenignFoundation,thenon-profitarmofWBIthatpromotessustainablescienceinordertocreateanenvironmentally,sociallyandeconomicallyprosperousworld,topromoteGreenChemistryawarenessintheglobalchemicalindustry.
TheAlliancehaslaunchedawebsite,www.isustain.com,whichallowschemicalmanufacturersanduserstotracktheirprogressindevelopinggreenerproductsovertimethroughtheuseofthepubliclyavailableiSUSTAINGreenChemistryIndex.Theywillbeabletoassessthesustainabilityofnewproductsusingasystematicapproach,whichisbothcomprehensiveandsimple,tohelpshapetheformulationoftheseproducts.ThesiteallowscompaniestotesttheirgreenproductattributesandgiveeachproductaniSUSTAINGreenChemistryIndexrating,whichwillbeindependentlyverifiablethroughacertificationprocess.
TheacademiccommunitywillbeabletousetheiSUSTAINapplicationfreeofcharge,whilecompanyuserswillpayasmallsubscriptionfee.Whilethesoftwarewillbemanaged,updatedandsupportedbySopheon,administrationandsupportforakeyelementoftheiSUSTAINGreenChemistryIndex,theRawMaterialDatabase,willbeprovidedbyBeyondBenign.Thisdatabase,whichwasinitiallyconstructedwithinCytec,providessafety,health,environmentalandregulatoryscoringforseveralthousandchemicalcompoundsbasedonreadilyavailablepublicinformation.ItisourintentwithBeyondBenigntocreateaconsortiumofusersaroundtheiSUSTAINGreenChemistryIndexandtheRawMaterialDatabasetocontinuetodevelopbothsystemsandprovidecorroborationandevolutionforthevariousalgorithmsanddataused.Additionally,anadvisoryboardfortheAlliancewillbeestablishedin2010,whichwillincluderepresentationfromthewebsite’susercommunity.1 As detailed in Paul T. Anastas, John C. Warner, “Green Chemistry: Theory and Practice,” Oxford University Press, U.S.A, 1998
13
S u S ta i n a b i l i t y i n n o Vat i o n 2 0 0 9
Sustainable productsCytechasasignificantportfolioofproductsthatoffersubstantialenvironmental,healthandsafetyadvantages,andofferincreasedvaluetoCytec’scustomers.BelowarejustafewexamplesofCytec’snewandexistingsustainableproducts.
MAX HT Bayer Sodalite Scale InhibitorThisfamilyofproductsinourInProcessSeparationoperatingsegmentwasdevelopedtoeliminatesodalitescalingintheheatexchangersandpipingusedintheBayerprocessfortheproductionofaluminafrombauxiteore.Byeliminatingtheformationofthesodalitescaleontheheatersurface,severalbenefitsarerealized,includingincreasedefficiencyintherecoveryofheatfromsteamproducedinvariousunitoperations,reducedproductionofnewsteamwiththeresultingreductionincarbonemissions,andreduceduseofsulfuricacidresultinginlesswaste.
Formaldehyde-Free CrosslinkerCYLINK®2000crosslinkingagent,aclassofmelamineresinusedinautomotivecleartopcoatandcellphonecoatings,wasdevelopedasareplacementforaminoformaldehydecrosslinkerstohelpthecoatingindustriescomplywithstringentenvironmentalregulationstoreduceVolatileOrganicCompounds(VOCs)andotherhealth-relatedOccupationalSafetyandHealthAssociation(OSHA)regulations.WhilecoatingsystemsformulatedwithhighsolidsmelaminecrosslinkerscanreduceVOCsdramaticallyandofferexcellentcoatingproperties,thesesystemsalsoinvolveformaldehyde,whichisregulatedbyOSHAandhasbeenthesubjectofnumerousstudiesforhealthandtoxicologyrisks.
New Saturated Polyester Resins (Epoxy-Free Technology)Cytechasdevelopedafamilyofnewsaturatedpolyesterresinsasreplacementsforhigh-molecular-weightepoxyresinsininteriorcan-coatingapplicationsforfood.Whilethesecoatingsshowgoodperformanceasconventional,epoxyresin-basedsystems,theyoffertheclearadvantageofnotcontainingBisphenolA.Incombinationwithmelamineorbenzoguanamineresins,thesenewpolyesterresinscanalsobeusedasbackbonebindersforhigh-heatresistantandflexibleexteriorcan-coatingsystems.
UV Pressure Sensitive Adhesives (UV PSA)Cytec’sGELVA®GMR8020-02UVPSArepresentsthefirstviablealternativeforthecommercialPSAtapesconverter.ForCytecandtheindustry,thesustainabilityadvantagesof100percentsolidssystemsareclear.Therearenodilutionsolventsneededandpackagingmaterialsarereducedbymorethan50percent.Thiswillresultin
lowerutilitycostsperpoundofadhesiveproduced.Fortheconverter,thesustainabilityadvantagesareequallyobvious–lowerenergyrequiredforvaporizingsolvents,fewerVOCs,lowernoise,lessmetalsandotherrawmaterialsrequiredforconvertingoperations’mechanicalequipmentandfloorspace,andimprovedyieldswithreducedchangeovercosts.Allofthesesustainablebenefits,inadditiontolowerunitconversioncosts,presentsignificantvalueforadoptingtheconverterinthetapesindustry.
Bio-solvent Based Acrylic Conformal Coating CytecEngineeredMaterial’sCONAP®CE-2290single-componentacrylicconformalcoatingprovidescustomerswitha“green”alternativeforhigh-performancethinfilmapplications.Thisproductisusedincoatingsforprintedcircuitboardsinelectronicsforshockandvibrationrequirements,whichincludeslaptopsandairplanes.CE-2290providesexceptionalcoatingperformanceincludingfastdryingtime,repairability,humidityresistance,hydrolyticstability,retentionofflexibilityduringthermalcyclingandexcellentadhesiontophenolicandepoxyglasslaminateseveninadverseenvironmentalconditions,allwithouttheuseofpetroleum-basedorreportablesolvents.CE-2290isfreefromHazardousAirPollutants(HAPs)andozonedepletingsolvents.ThisproductwasfeaturedintheProductronica2009InnovationGuide.
u.S. epa Green Chemistry programCytecisastrongsupporteroftheEPAGreenChemistryProgramandhasmadenumeroussubmissionstotheannualEPAPresidentialGreenChemistryChallengeAwards,demonstratingexamplesofproductsdevelopedandusedwithsustainabilityinmind.Thesecanbefoundathttp://www.epa.gov/greenchemistry/pubs/pgcc/past.html.
Cytec Coating Resins is a pioneer in the development of low-VOC coatings, radiation curing and powder coating resins and additives that allow our customers to create sustainable change for the industries they serve. Cytec is promoting our product sustainability efforts to customers around the globe with a “Pioneering Sustainable Change” campaign.
13
Email: [email protected] l Worldwide Contact information: www.cytec.com l US Toll Free: 800-652-6013 l Tel: 973-357-3193
© 2010 Cytec Industries Inc. All Rights Reserved.
Cytec Coating Resins delivers innovative products beyond our customer’s imagination. We are pioneers in the development and production of high performance coating solutions.Our line of low-VOC coatings, radiation curing and powder coating resins and additives allow our customers to create sustainable change for the industries they serve. For more information, visit us at the American Coatings Show in booth #2625.
Pioneering Sustainable Change
14
2 0 0 9 p r o d u C t S t e Wa r d S h i p
Energy Consumption and Intensity
0
1
2
3
2 0 0 92 0 0 7
Milli
on M
WH
Ener
gy Co
nsum
ption
1 .0
1 .2
1 .4
1 .6
1 .8
2 .0
Ener
gy In
tens
ity(K
WH/
KG)
CSC BBC CEM Intensity2 0 0 8
Accidental Releases to Environment 2002-2009
51
9 4 3 3 4 11
5129 19 25 27 32 22
11396 91
69 77
50
70
20406080
100120140160180
2002 2003 2004 2005 2006 2007 2008
# Rele
ases
to En
viron
men
t (>
1 lbs
.)
Land Air Water Total
31
17 2 02 2
1 0
2 0
3 0
4 0
2005 2006 2007 2008
REACH Timeline
Even
t
Year2007 2009 2011 2014 2019
>1 ton>100 tons
>1000 tons
REACH Authorized
REACH Implemented
Cytec Recordable Injury Frequency
1.641.45
1.20 1.24 1.17 1.220.89
0
1
2
2002 2003 2004 2005 2006 2007 2008 2009
Reco
rdab
le In
jury F
requ
ency
Serious Process Safety Incidents
114 3 2 11
1
1
012345678
# of In
ciden
ts
Non-U.S.U.S.
2002 2003 2004 2005 2006 2007 2008 20090 2
4
2
0.84
3439
7
2009
2009
11
Number of Permit Excursions by Year
Cytec Waste Performance - Year to YearAbsolute Basis: Change in kg production
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2006 - kgproduction
2006 - 2007 2006 - 2008 2006 - 2009
Thou
sand
s
Waste Generation and Intensity (Kg waste/1,000 kg production)
0
10,000
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CSC BBC CEM Intensity
product regulatory ComplianceCytec’sproductstewardshipprogramstartswithglobalproductregulatorycompliance.Thecompanymaintainsstandardsrelatedtoproductregulatoryandhazardcommunicationcomplianceactivities.Cytecmaintainssystemsthatcomplywithallglobalchemicalcontrollawsincountrieswheretheyexist(U.S.,Canada,Europe,China,Australia,etc.).Thisisdonewithoversightandvisiontomakethebestuseofavailabledatatoallowourproductstoenternewmarketsquicklyandinacost-effectivemanner.
reaChREACHstandsfortheRegistration,EvaluationandAuthorizationofChemicals,representingtheEuropeanCommission’sharmonizedchemicalsmanagementlegislationwithinEurope.
TheREACHprocessrequiresamanufacturerorimportertonotifytheEuropeanChemicalsAgency(ECHA)oftheintentiontoproduceorimportasubstanceandtosubmitatechnicaldossierunderan11-yeartransitionperiod,whichbeganin2007.
Cytecpre-registeredallcomponentsofproductsmanufacturedinEuropeorimportedintoEuropebytheNovember2008deadline,andcontactedsuppliersofpotentiallyaffectedrawmaterials.CytecdevelopedagatekeeperprocesstoensurethatnoproductsareofferedforsaleinEuropewhichhavenotbeenpre-registered.Wearenowfocusedonregistrationandconsortiaparticipation,aswellasdossierpreparationforhighvolumeTierIsubstances(greaterthan1000tons).InternalteamsareworkingtoaddressSubstancesofVeryHighConcern(SVHC),StrictlyControlledConditions(SCC)anduseandexposure.AllrelatedinformationneedstoconvergeaspartoftheREACHregistrationdossier.Formoreinformation,seehttp://www.cytec.com/about/reach.htm.
nanomaterials in new product development Cytecisworkingwithnanomaterialsandthedevelopmentofnewtechnology.Webelievethattheriskassociatedwithnanoscalematerialscanbemanagedeffectively,andthematerialscanbeusedtoproduceanextgenerationofsustainableproducts.CytechasdevelopedprotocolsforsafehandlingofnanoscalematerialswithinR&Dandmanufacturing.In2009,Cytecdevelopedatrainingmoduleforsafehandlingofnanomaterials,toheightenawarenessaboutthisimportanttopic.
hazard assessment and risk CommunicationCytechasdevelopedandcontinuestorefineaworld-classglobalhazardassessmentprocess.Cytecpersonnelusedtheirknowledgeofindividualcountryhazardcommunicationrequirementstodevelopaprocesswhichcanassessproductsforallregulatedregionsatthesametime.Theadvantagesofthisprocessincludeconsistencyofinformationanddata,aswellcosteffectiveness.
Tohelpsupportthisprocess,wedevelopedandmaintainacentralizeddatabaseforallproduct-relateddata,includingphysical/chemicalproperties,toxicity,environmentaltoxicity,andenvironmentalfateandeffects.Weassessthepotentialhazardsofourproductsandcommunicatesafehandlinginformationtoouremployeesandcustomers.Wherepossible,weusecomputermodeling,structure-activityrelationshipsandliteraturedatatoassesspotentialhazardsinlieuoftesting,includingtheEPASustainableFuturesmodeling.Ourworld-classSafetyDataSheets(SDS)andlabelsarenowavailablein28languageswiththe2009additionsofRussianandTurkish.
GloballyHarmonizedSystemofClassificationandLabeling,orGHSforshort,isaUnitedNationsdevelopedrecommendationforasingle,globallyharmonizedsystemtoaddresstheclassificationofchemicals,labels,andSDS,whichisinvariousstagesofimplementationbymanycountries.OfparticularinteresttoCytecarerelativelyearlyimplementationsforNewZealand,Taiwan,Thailand,Malaysia,KoreaandChina.WehavesuccessfullycompletedbothSDSandlabelrequirementsforbothJapanandChina.
AmoredetaileddescriptionofCytec’sRiskCharacterization andManagementprocesscanbefoundonourwebsiteathttp://www.cytec.com/about/risk_process.htm.
Cytec completed construction of our first carbon fibers prepreg manufacturing facility in Asia in 2009. This plant allows Cytec to provide commercial aerospace composite materials and significant logistics and supply chain value to our customers, and contributes to the growth of the civil aerospace industry in the region.
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2 0 0 9 p r o d u C t S t e Wa r d S h i p Va l u e C h a i n M a n a G e M e n t 2 0 0 9
Value Chain Customer and Supplier review process Cytec’sSHEManagementSystemencouragesadoptionandimplementationofappropriateproductriskmanagementpracticesforCytec’shighvolumeorhazardousproducts.TheprocessassessestheproductstewardshipattributesofourcustomersanddistributorstoassurethattheycanhandlethoseCytecproductswhichhavethepotentialtobehighlyhazardous.AsimilarsystemisinplaceforsuppliersofrawmaterialstoCytec.TheprocessandassociatedproceduresassurethatCytec’schemicalrawmaterialsuppliersstrivetowardtheresponsiblemanagementofchemicals.
Suppliersareaskedtocompletequestionnairestoassesstheircommitmenttoworkinginasafeandenvironmentallyconsciousmanner.Similartoourapproachtocustomersanddistributors,theremaybesuppliersorpotentialsupplierswholackcertainsafety,health,environmentalorproductstewardshipskills.Ourprocurementstaffwillcontactthem,reviewanyconcernsandoffertrainingorotherservices.Wealsoratesuppliersbasedontheirperformanceonsafety,health,andenvironmentalissuesaspartofoursupplierscorecard.
Ifitisfoundthatacustomerlackssufficientsafety,health,environmentalorproductstewardshipskillstohandleapotentiallyhighlyhazardousproduct,thechiefproductsteward,productmanagerandbusinessdirectorworkinconcerttoassureanydeficienciesarecorrected.
Contractor SelectionWhenCytecusesoutsideserviceproviderstoperformworkatoursites,companiesareselectedbaseduponseveralfactors,includingtheircomplianceandsafetyperformance.Cytecchoosesbusinesspartnerswhoshareourprioritiesaroundenvironmentalandsafetyperformance.
toll and other Manufacturing ServicesCytec’sSHEManagementSystemseekstoengageonlythosethird-partyfacilitieswhoseoperationsareincompliancewithapplicableregulatoryrequirementsandwhoseactivitiesdonotendangeremployees,thepublicortheenvironment.Occasionally,itisnecessaryforCytectousetheservicesofanoutsidethirdpartytoperformmanufacturing,formulation,blending,packagingandotherservices.Accordingly,dependingontheevaluatedrisk,third-partyfacilitiesmaybesubjecttoathoroughevaluationoftheiroperationswhichmayincludeafullon-siteaudit.Approximately100tollmanufacturersareactivelylistedwithCytec.
Waste disposal ServicesCytecworkstoreduceandpreventthegenerationofwaste.However,whereCytechastocontractforwastedisposal,weconductareviewofcompaniesandindividualoff-sitefacilitiesusedforthemanagementofhazardousandnon-hazardouswastes.ThereviewofthesesitesmaybeimplementedbyCytecstaff,bythird-partyconsultantsorthroughconsortiumaudits.Inaddition,thecompanyminimizesthenumberofwastemanagementfacilitiesandcompaniesused,astheuseofadditionalcompaniesandindividualsitesincreasespotentiallong-termrisk.
distribution facilitiesWemonitorourdistributionfacilities’compliancewithsafety,healthandenvironmentalpracticesandcompliancewithstandards.Thesefacilitiesarereviewedonanongoingbasis.Weexpectfacilitiesthatmanageourproductstolivebythesamestandardsofexcellence.
transportationOurtransportersarequalifiedonthebasisofsafetyperformance,inadditiontootherparameters.Weperformtransportationriskassessmentsforcarriersthattransporthigh-riskrawmaterialstoCyteclocations.WealsotracktransportationincidentsacrossCytecandhavereducedthenumberofincidentswithreleasesby60percentfrom2008to2009.
BUSINESS
Incidents with Release Frequency (Incid/1000 shipments)
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
BBC 8 3 10 5 0 0.59 0.23 0.83 0.54 0.00
CEM 3 0 0 1 1 .010 0.00 0.00 0.03 0.03
CSC 32 25 59 24 11 0.14 0.10 0.29 0.18 0.10
Cytec 43 28 69 30 12 0.16 0.10 0.35 0.17 0.08
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Trademark Notice: The ™ indicates a Trademark of Cytec Technology Corporation, a subsidiary of Cytec Industries Inc. in the United States. The Trademark may also be registered, the subject of an application for registration or a trademark in other countries. © 2010 Cytec Industries Inc. All Rights Reserved. 04/2010
CGL-567
Cytecisonajourneytowardtheimplementationofsustainablepracticesinallaspectsofourbusiness.Ourvisionistobeaworldleaderinsafety,healthandenvironmentalperformance,andwehavesetlong-termimprovementgoalstoassessourperformanceandtrackprogress.
2010 GoalsCytec’sobjectivefor2010istocontinueimprovingagainst2009performance.During2010,Cyteciscommittedtothefollowinggoals:• ReducingtheRecordableInjuryFrequencyby10percent
againstthe2009rate• Achievinga5percentreductioninallprocesssafetyincidents
acrossCytecfrom2009• Achieving10percentreductioninaccidentalenvironmental
releasesgreaterthan1poundfrom2009levels
• Achievinga3percentimprovementinenergyefficiencyand2percentimprovementinCO2intensityagainst2009
• Achievinga3percentimprovementonwastereductionperkilogramofproductsagainst2009
• FullyimplementingtheSHEManagementSystematallofourmanufacturingsitesandR&Dsitesonaglobalbasisbyyearend2010.
long-term Goals
Cyteciscommittedtothefollowinglong-termgoals:• ReducingtheRecordableInjuryFrequencyrateto0.5• Improvingglobalenergyefficiencyby15percentby2012• Improvingglobalgreenhousegasemissionsintensity(CO2
equivalentsperkgofproduct)by12percentby2012• Reducingglobalwastegenerationby15percentby2012.
Global reporting initiative WesupporttheGlobalReportingInitiative(GRI)effortstostandardizenon-financialreportssuchasthisandwillincreasinglyalignourreportingandmetricswiththeGRIguidance.
2 0 0 9 o u r J o u r n e y
Key Metrics - Safety, Health & Environment 2007 2008 2009 Target and Actual 2010 Target
Recordable Injury Frequency 1.22 0.8910%annualimprovementagainst2008/.84for2009
10%annualimprovementagainst2009
Serious Process Safety Incidents 1 2 0 RollintoPSMincidentreductiontarget
Process Safety Incidents n/a Setbaseline Developseverityfactor 5%reductionagainstnewbaseline
Releases to the Environment 94 79 10%annualimprovementagainst2008 10%improvementagainst2009
Energy Efficiency (kwh/kg product)
3%improvementagainst2006
Energy–16%increasefrom2007to2008;influencedbya10%decreaseinproductiondueto
stateofglobaleconomy
3%annualimprovementagainst20083%improvementinenergyefficiencyor
theoreticalmodel,against2009
Greenhouse Gas Emissions (GHG) SetbaselineRevisingbaselinetomeetClimate
Leadersrequirementsandchangingbaselineyearto2007
2%against2008 2%improvementagainst2009
Waste Reduction (kg waste/kg product)
1%improvementagainst2006
Wasteefficiencyhasimprovedbyover5%inthefirst2years
3%against2008 3%against2009,usingweightedaverage
Product Stewardship and Sustainability
n/a n/a
Existingproducts–CompliancewithProductStewardshiprequirements
Newproducts–SustainabilityIndexImplementin2009andestablishbaseline
ImplementiSUSTAIN™Indexfornewlycommercializedproducts;worktoclosedata
gapsforexistingproducts
Corrective Action Closure Rate Track Track 90%/91%for2009 90%
