World Coatings Council SUSTAINABILITY IN THE GLOBAL PAINT & COATINGS INDUSTRY Contributions to the United Nations’ Sustainable Development GoalsAbout this Report The World Coatings Council (WCC) and its 16 member associations collaborate on environmental, economic, and social issues. This publication is the result of an ongoing effort to highlight the industry’s commitment to the United Nations’ Sustainable Development Goals. This joint sustainability report of the global coatings industry is based on a materiality analysis with industry representatives and sustainability experts from business, science, networks, and non-profit-organizations. The challenges, opportunities, and achievements identified in the process, will serve as the basis for the further sustainability transformation of the global coatings industry. Extensive gratitude is extended to the member associations of the World Coatings Council, representatives from paint and coating manufacturers around the globe, and external stakeholders who contributed to this publication with great commitment and valuable insights. This publication is dedicated to the memory of David F. Darling, Vice President of Health, Safety, Environmental Affairs at the American Coatings Association. DECEMBER 2022Table of Contents INTRODUCTION ............................................................................................................................... CHAPTER 1 – About The World Coatings Council ............................................................. The World Coatings Council’s Organization ................................................................. Sustainability Roadmap ........................................................................................................ CHAPTER 2 – Our Industry’s Value Proposition .................................................................. Paint and Coatings: Essentially Sustainable .................................................................. CHAPTER 3 – Our Material Issues ............................................................................................ CHAPTER 4 – Our Sustainability Principles..................................................................... Sustainability Charter ............................................................................................................. Our Commitment to Sustainable Development ......................................................... CHAPTER 5 – Our Industry’s Contribution To The Sustainable Development Goals ................................................................................................ Our Contribution to SDG 3: Ensure Healthy Lives and Promote Well-Being For All at All Ages .................................................................................. Our Contribution to SDG 4: Quality Education ........................................................... Our Contribution to SDG 6: Clean Water and Sanitation ....................................... Our Contribution to SDG 8: Decent Work and Economic Growth .................... Our Contribution to SDG 9: Industry, Innovation, and Infrastructure ................. Our Contribution to SDG 11: Sustainable Cities and Communities .................... Our Contribution to SDG 12: Responsible Consumption and Production ................ Our Contribution to SDG 13: Climate Action ............................................................... Our Contribution to SDG 14: Life Below Water ............................................................ APPENDIX .......................................................................................................................................... WCC Member Associations ........................................................................................................ Definition of Material Issues ......................................................................................................... Participating Companies ............................................................................................................. Disclaimer ............................. ......................................................................................................... 4 6 6 8 9 9 10 14 14 14 15 16 18 20 21 23 25 26 28 30 32 32 36 38 39Introduction Together for Sustainable Development The World Coatings Council brings together 16 coatings associations worldwide, including their member companies. Each regional association and company – whether small, medium, or large – is on its own, yet interconnected, sustainability path. With the increased complexity of global challenges, it is more important than ever to coordinate actions and contribute to sustainable development as a whole industry. Through the council, members learn from each other’s successes and challenges, and together increase their positive impact on society, the economy, and the environment. World Coatings Council SUSTAINABILITY IN THE GLOBAL PAINT & COATINGS INDUSTRY 4O ver the last few decades, the coatings industry has worked hard to continually increase the sustainability of its products and manufacturing processes while maintaining their safety and effectiveness. From the outset and as far as technically feasible, we have focused on substituting hazardous substances, while maintaining the quality and functionality of our products. At the same time, we have reduced the energy and resource demand of our production processes. In these efforts, it is important to recognize that various parts of the world are at different stages of implementing government- mandated requirements and industry practices to improve their sustainability. The World Coatings Council aims to provide each member with the resources appropriate to their abilities and legal requirements. Our member companies support a wide variety of customers’ needs that contribute directly to sustainability with their range of paint and coating products. Coatings provide resistance and durability to the products to which they are applied; they offer vital functions for consumer goods and industrial applications; they contribute to a safe and healthy environment for communities; and they add color and protection to buildings and other goods. During the events of the last few years, the global coatings industry has demonstrated that it is an indispensable industry, providing essential coatings for the health and food sectors. As the World Coatings Council, we are proud of what the industry has already achieved on sustainability and are confident in our ability to continue to contribute to the to the United Nations’ Sustainable Development Goals (UN SDGs). We are happy to present to you the World Coatings Council’s first Sustainability Report which introduces our Sustainability Charter, highlights how the coatings industry currently contributes to achieving the UN SDGs, and addresses areas we will undertake in the years to follow. 5Chapter 1 – About The World Coatings Council The World Coatings Council Organization Since its creation in 1992, the World Coatings Council (WCC) has provided a forum for the paint and coatings industry, where companies can exchange information and work to coordinate matters of international concern. Today, the WCC – originally named International Paint and Printing Ink Council – serves as a common and global voice, responding to strategic and regulatory issues. With this sustainability report, the WCC raises awareness on the collective sustainability contributions of the global coatings industry for the first time. German Paintand Printing InkAssociation 1. American Coatings Association (ACA) 2. Australian Paint Manufacturers’ Federation (APMF) 3. Brazilian Coatings Manufacturers Association (ABRAFATI) 4. The British Coatings Federation (BCF) 5. Canadian Paint and Coatings Association (CPCA) 6. China National Coatings Industry Association (CNCIA) The association names below correspond to the logos listed above, from left to right. 7. European Council of the Paint, Printing Ink, and Artists’ Colours Industry (CEPE) 8. French Paints, Printing Inks, Artist Colours and Adhesives Association (FIPEC) 9. German Paint and Printing Ink Association (VdL) 10. Japan Paint Manufacturers Association (JPMA) 11. Malaysian Paint Manufacturers Association (MPMA) 12. Mexican Paint and Printing Ink Manufacturers’ Association (ANAFAPYT) 13. New Zealand Paint Manufacturers Association (NZPMA) 14. South African Paint Manufacturers Association (SAPMA) 15. Spanish Association of Manufacturers of Paints and Printing (ASEFAPI) 16. Association of the Paint Industry in Turkey (BOSAD) SUSTAINABILITY IN THE GLOBAL PAINT & COATINGS INDUSTRY 6The role of the council’s Secretariat is appointed to one of WCC’s member associations. The Secretariat ensures timely and proper communication between members, as well as complete preparation for all WCC meetings. The American Coatings Association (ACA) has been Secretariat since the council's inception. The chair and the vice chair of the WCC are elected by its members. Currently, the chair is held by the British Coatings Federation (BCF). The World Coatings Council carries out numerous important tasks for the industry. It acts as a focal point for monitoring and communicating international issues, produces a global market analysis every two to three years, and drafts recommendations on global issues. Furthermore, the council coordinates industry positions on matters affecting paint and coatings companies in all countries through open dialogue between the participating member associations. It also communicates with other international organizations and, as a Non-Governmental Organization (NGO), serves as a technical consultant for the United Nations’ International Maritime Organization (IMO) and the UN Economic and Social Council (ECOSOC), as well as on the UN Environment Program (UNEP) Business Industry Major Group (BIMG), among others. 72014 The Latin American Federation of Associations of Paint and Ink Technicians and Manufacturers (LATINPIN) is founded 2018 The council reaffirms its policy statement regarding lead in paints 2010 Creation of the Global Alliance to Eliminate Lead Paint (GAELP), also known as Lead Paint Alliance (LPA), with WCC participation from the beginning 2017 Creation of the Responsible Mica Initiative (RMI); the WCC is an active serving member 2019 The name of the council was changed to World Coatings Council (WCC) 2010s 2022 WCC appointed to UNEP BIMG First, joint publication on sustainability of the global coatings industry and reinforced effort to contribute to the UN SDGs 2020 Launch of the WCC Sustainability Platform 2021 Having worked together since 2018, the WCC joins the GloFouling Partnership for implementing the IMO guidelines on the control and management of biological fouling on ships 2020s 1992 Creation of the International Paint & Printing Ink Council, now known as the World Coatings Council 1996 Development and adoption of the global version of the Coatings Care program to promote sustainability in the industry 1994 Foundation of Asian Paint Industry Council 1990s 2008 The council was granted permanent NGO status by the UN International Maritime Organization (IMO) 2005 The council was granted NGO status by the UN Economic and Social Council (UN ECOSOC) as well as by the UN Sub-Committee of Experts on the Transport of Dangerous Goods 2000s Sustainability Roadmap Sustainability is one of the World Coatings Council’s key focus areas, as demonstrated by the wide array of sustainability initiatives undertaken since the council’s formation 30 years ago. Our sustainability milestones show how we act together to make the voice of the industry heard and to increase our sustainability impact. We evolved together with our association members and their customers' needs. The latest step was the creation of this report in which we present our industry’s efforts in the area of sustainability. THREE DECADES OF MILESTONES SUSTAINABILITY IN THE GLOBAL PAINT & COATINGS INDUSTRY 8Chapter 2 – Our Industry’s Value Proposition Paint and Coatings: Essentially Sustainable Paints and coatings serve all of us in our daily lives: they protect our buildings and infrastructure; support the hygienic production and transportation of food; provide essential coatings for offshore wind power plants and solar panels with resistance to the negative effects of weather; and add color to the spaces we inhabit and the objects we use, among many other things. 🌐 Coatings improve the durability of critical assets including the buildings we work and live in and the many objects to which they are applied. The core function of coatings is to preserve and protect substrates. Their resistance-enhancing properties contribute to safer, longer lasting infrastructure and buildings, extending their useful life and thus preserving both renewable and non-renewable resource materials for future generations. 🌐 As functional surfaces, coatings are a crucial ingredient in production processes and spark innovation in many industries. Coatings can enhance the sustainability of the materials and products to which they are applied. They can protect products from corrosion, abrasion, extreme temperatures, and prevent microbial growth. Coatings can also provide functions such as solar reflectivity, insulation, minimized adhesion to surfaces, reduced friction, or conductivity. All these functions are beneficial in the transition to renewable energy and in many other sectors. 🌐 Coatings contribute to a healthy environment as well as a safe and reliable provision of foods. The industry offers antimicrobial products for the health care sector, hygienic surfaces for the food industry and protective coatings for food packaging. Furthermore, it enables consumers’ well-being with low emitting indoor paints. The industry delivers innovative antimicrobial paints that aim to further protect people, which has been especially important during the pandemic. Paints and coatings play a fundamental role in saving resources: they help reduce the environmental footprint as they extend the life cycle of many products, delay replacement of those products, or make them more suitable for recycling. Through their functions, paint and coatings ensure that companies and consumers can continue to thrive in the world we share. Put simply, every manufacturing process that results in the production of a non-liquid product includes a process for coating the finished good, making the coatings industry an integral part of and partner to myriad larger manufacturing and end-use industries. The paint and coatings industry has a global market revenue of US $173 billion. Architectural coatings represent the largest market, with more than 50 % of market volume. Nevertheless, our diverse products serve all major industries. Source: The ChemQuest Group, Inc. Architectual Coatings General Industrial Finishes Powder Coatings Wood Finishes Protective Coatings Automotive OEM Coatings Coil Coatings Automotive Refinish Paint Marine Coatings Packaging Finishes Other Transportation Coatings 53% 12% 8% 7% 5% 4% 3% 2% 2% 2% 2% Global End-Use Market Share (2019) 9Next >