Sustainability

About TPC Group

TPC Group, headquartered in Houston, is a leading producer of value-added products derived from petrochemical raw materials such as C4 hydrocarbons, and a provider of critical infrastructure and logistics services along the Gulf Coast. The Company sells its products into a wide range of performance, specialty, and intermediate markets, including synthetic rubber, fuels, lubricant additives, plastics, and surfactants. TPC Group has a manufacturing facility in the industrial corridor adjacent to the Houston Ship Channel with an operating history more than 75 years and operates product terminals in Port Neches, Texas and Lake Charles, Louisiana.

All for One

We work with One Vision to be the undisputed leader in C4 petrochemicals and a recognized leader in the petrochemical industry. We operate under One Plan to ensure safe, reliable, environmentally sound, and cost-effective operations and create significant value for our shareholders. One TPC is about our employees Delivering Results by living and demonstrating the elements of our One Culture – commitment, trust, ownership and accountability, collaboration and engagement – that elevates TPC Group as a leader in C4 petrochemicals.

Our Commitment to Sustainability

At TPC Group, Sustainability combines the Company’s commitment to environmental protection, reliability and efficiency along with supplying key materials to our customers which enable the production of better consumer products such as today’s safer, more reliable, lower emission automobiles. This all comes with the expectation of contributing to the social and economic wellbeing of the communities in which we operate.

Through the implementation of new practices that enable our employees to work safer, smarter and more efficiently, we are making strides in our approach to operational excellence. This is not only good for our employees, our business and our communities but also drives impactful and sustainable results in our operations.

Our Sustainability Journey

The Company’s focus on sustainability and corporate social responsibility is backed by a governance structure to establish and drive a Sustainability strategy and support the Board of Directors through the Safety Environment and Sustainability Committee.

TPC Group’s sustainability framework has evolved to combine and align with industry-recognized standards established by the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board, American Chemistry Council’s Responsible Care®, UN Global Compact and UN Sustainable Development Guide while ensuring alignment with the Company’s All for One culture encompassing how we work and do business.

TPC Group has a governance structure to establish and drive a Sustainability strategy as part of the Company's Long Range Plan (LRP) and support the Board of Directors on Sustainability governance. The governance structure is comprised of a Board Safety Environment Sustainability Committee.

The Company is committed to conducting business ethically and legally. Our employees are expected to uphold the highest ethical and business standards no matter where in the world business takes them. TPC Group’s Compliance Program designates a senior executive responsible for compliance and drives compliance through both formal programs and policies and standing cross-functional teams.

The Business Conduct and Ethics Code (BCE) summarizes many of the principles and policies that we have developed to assist in conducting our global business ethically consistent with our values and in compliance with applicable laws and regulations. All employees receive annual training on the BCE and have a duty to report suspected violations. The Company maintains an ethics hotline, investigates all reports and does not retaliate. Our One TPC Culture goes beyond the law - it means doing the right thing. We also expect our suppliers and contractors to embrace similar values and standards.

TPC Group’s Enterprise Risk Management program is an enterprise-wide process applied by Management and the Board of Managers to identify potential risks that may affect the Company, and to manage those risks within an established risk tolerance given business objectives and the Company’s Long Range Plan.

TPC Group conducted a Materiality Assessment to make informed decisions on the Sustainability Strategy by:

• prioritizing Sustainability efforts to issues that align with TPC’s values and stakeholder expectations;

• identifying key Sustainability issues upon which to build a successful
  sustainability strategy, and

• potentially serving as an outline for a TPC Group Sustainability report to align with the
  Global Reporting Initiative (GRI) Standards.

TPC Group completed a materiality assessment in partnership with a third-party consultant. The assessment included peer/best-in-class benchmarking research and external and internal stakeholder interviews. Findings from the assessment will help us enhance our sustainability strategy by prioritizing our sustainability efforts to those issues that align with TPC’s values and stakeholder expectations. The assessment established a pathway for ensuring our actions are consistent with industry-recognized standards/framework established by the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board, American Chemistry Council’s Responsible Care®, UN Global Compact and UN Sustainable Development Guide.

The Materiality Assessment revealed seven critical areas of focus – based on external and internal stakeholder input - and comprise TPC Group’s Sustainability Goals in the Long Range Plan. TPC Group will focus on critical areas identified by the Materiality Assessment, while we continue to further our efforts to contribute to the social and economic wellbeing of the communities in which we operate.

The guiding principles of TPC Group’s commitment to protecting people and the environment and conducting our operations and managing our products in a safe, reliable, environmentally responsible and efficient manner are inherent in the elements of our culture: collaboration, commitment, trust, engagement and delivering results.

This commitment applies to all aspects of our business, including planning, research, development, design, construction, operation, maintenance, marketing, commercial transactions, transportation, distribution and delivery. The Company actively participates in trade organizations, such as Texas Chemical Council (TCC), American Fuel & Petrochemical Manufacturers (AFPM) and American Chemical Council (ACC), to share best practices and performance results. Metrics such as air emissions, energy usage, water consumption/usage and greenhouse gas emissions are tracked, and we focus on continuous improvement and reduction in these areas.

We utilize risk assessment, risk prioritization and risk management principles to promote continuous improvement, including the commitment to the guiding principles of Responsible Care®. Further, our commitment to sustainability extends beyond our fence line. TPC Group is committed to being a responsible neighbor. TPC Group is not only a business in the neighborhood but also a vital member of the community. Through real-time monitoring at the fence line of TPC Group’s facilities, the Company can detect volatile organic compounds (VOCs) to provide critical and timely information when investigating or preventing emissions.

Workforce Health and Safety

TPC Group is committed to providing a safe workplace for our employees and contractors and our community. Robust management systems, employee participation, and ownership are key to sustaining our safety culture. We believe “stop work” and accountability make the workplace safe for all.

Product Stewardship 

TPC Group has a product stewardship program that is fundamental to how we do business and is integral to how we manufacture, transport, use, recycle and dispose of our products. A collaborative cross-functional team, which includes Technology, Operations, EHSS, Legal and Commercial representatives, oversees the product steward strategy. Our commitment to protect the health and safety of our employees, customers and surrounding communities is the highest priority. 

Process Safety Management & Reliability 

A successful Process Safety Management (PSM) program is essential for TPC Group to continue to operate in a manner that protects our workers, the environment and the community. The Company is committed to an effective PSM program that includes ongoing multi-faceted actions to enhance processes and procedures across the organization, including a Reliability Centered Maintenance (RCM) improvement program, which focuses on infrastructure improvements (see Reliability Centered Maintenance and Infrastructure Improvement). A successful PSM program requires cross-functional involvement with established levels of accountability and ownership at all levels of the organization to drive safe operations and mitigate potential risk. 

Cybersecurity 

The ongoing threat of cybersecurity has far-reaching impact. TPC Group and its Cybersecurity Governance Team are committed to ensuring a secure and resilient cybersecurity environment, aligned to the NIST Cybersecurity Framework, which facilitates and protects the business of TPC Group, reduces risk and protects privacy, while promoting innovation, business growth and transparency. 

Supply Chain

TPC Group has robust supply chain processes to comply with the requirements of TPC Group’s Business Code of Ethics and various local, state, and federal regulations governing the procurement of goods and services. These efforts support policies and practices to ensure efficient, consistent, sustainable procurement and support activities. TPC is developing a process for gathering information about diversity and establishing criteria for including this data in the selection process.

Third-Party Assessments, Awards and Recognition 

As an ACC member company, TPC Group systems have received the Responsible Care Management Systems® (RCMS) certification. An independent third party has certified that our management systems and practices meet the ACC Responsible Care Codes. As an ACC member company, we support the belief that chemistry plays an integral role in solving our world’s sustainability challenges. 

TPC Group also received a “confirmed” rating from EcoVadis. EcoVadis aims to improve the environmental and social practices of companies by leveraging the influence of global supply chains. The “confirmed” rating means that TPC Group has a structured and proactive Corporate Social Responsibility (CSR) approach with policies and tangible actions on major CSR, and therefore risks are limited. In addition, the EcoVadis rating highlights the Company’s position to embrace continuous performance improvements on CSR that makes TPC Group a company with whom long-term business relationships should be considered. 

TPC Group has received awards from the Texas Chemical Council - Caring for Texas Award and American Fuels Petrochemical Manufacturers (AFPM) Safety Achievement Award in 2016, 2017 and 2018.

Butadiene

As the largest independent merchant processor of Crude C4, TPC Group fulfills a critical role in the U.S. Olefins industry. The resurgence of natural gas in the United States has triggered many ethylene capacity expansions. The petrochemical industry depends on TPC Group to be a consistent and reliable offtake processor for this material. Proven technology and innovative solutions have enabled the Company to add value by separating the various molecules in the crude C4 stream and create additional value for our supplier. This is an integral part of creating sustainable value in the overall petrochemical resource chain.

Without the innovation and ability to process Crude C4s into butadiene, the impact to a modern lifestyle from which we all benefit would reveal itself in the absence of many everyday products as we know them, including high-performance tires, synthetic lubricant and fuel additives, carpet and much more.

Highly Reactive Polyisobutylene

The newest International Lubricant Standardization (GF 6) aimed at improved fuel economy, lower emission and enhanced engine capabilities for passenger cars is driving demand for highly reactive polyisobutylene (HR PIB) produced using the Company’s proprietary technology. Used as a fuel and lubricant additive, HR PIB is critical to delivering on GF 6. Optimizing fuel and lube additive performance means more miles per gallons, less air emissions and enhanced engine performance. Processing less crude oil while delivering improved performance means reducing our carbon footprint.

An enhanced focus on overall reliability is a critical element of driving sustainability. Reliability and Critical infrastructure categories include electrical systems, cooling water systems and mechanical integrity structure. Examples include:

• Electrical infrastructure improvements and upgrades to LED lighting.

• Replacement of more than 31,000 feet of pipe across the facilities since 2016.

• Cooling Tower rebuilds and the implementation of a Lamella clarifier system provide consistent reliability and performance to support efficiency in cooling water production while cooling tower drift eliminators meet current Best Available Control Technology (BACT) requirements. This also drives improved environmental compliance as high-efficiency drift eliminators reduce corrosion of nearby equipment and eliminate its impact on cooling tower performance.

Brownfield Expansion and Utilization of Idle Assets

In 2015, TPC Group completed an expansion project to restart one of its existing idled dehydrogenation units utilizing the equipment previously taken out of service. Following extensive engineering reconfiguration and an upgrade in air emissions controls, the Company was able to place the unit back in service following its idle state.

The startup of this unit enabled TPC Group to provide an additional strategic source of feedstock for the Company’s rapidly growing fuel products and performance products businesses, both producing products that go into cleaner-burning fuel and helping reduce automobile emissions.

Energy

TPC Group has a dedicated energy manager to oversee the Company’s specific energy needs, drive continuous improvement and minimize total energy costs. To achieve best in class energy performance the Company leverages multiple opportunities including:

• Optimizing TPC Group’s distillation operations through the application of advance process controls

• Defining and executing energy-use and recovery projects to incrementally improve TPC Group’s energy footprint 

• Risk assessing for energy supply with medium and long-range planning

• Reporting Key Performance Indicators

Steadier overall energy trends are driving more stable plant operations, performance reliability and predictive energy consumption.

Transparent Communication

At TPC Group, it is only by working together that we can achieve One Plan, One Culture and One Vision. Every employee has a part to play. Through commitment, collaboration, engagement and trust, we are a team that delivers results. Our employees are guided and grounded in the elements of our culture that drive our success.

There are many opportunities for employees to learn about our culture and provide feedback to the Leadership team. These include shift starter meetings, senior leadership roundtable discussions, CEO Lunches, bi-annual company-wide and quarterly communication meetings.

Employee Benefits and Compensation

The Company strives for a workplace that appeals to a diverse, multi-generational population. Based on an industry-leading, market-based and a performance-driven culture, the Company offers various programs that highlight TPC Group’s commitment to fostering an environment that supports safety, work-life balance, volunteerism and opportunities to pay it forward. Some examples of these programs for eligible employees include:

• Pay Practices Standard – The Company set standards for pay practices and work schedules for non-represented employees. These standards includes pay rates, paydays, overtime pay for scheduled and unscheduled overtime, shift differential, call out pay, vacation pay, shift trades, and backfill for shift supervisor pay.  

• Maternity Leave Standard – The Company supports birth moms in giving 12 weeks of paid leave.

• New Parent Leave Standard – The Company provides six weeks paid leave for a non-birth parent before and after the birth or adoption of his/her child.

• Sabbatical Standard – The Company provides up to three months of Sabbatical for eligible employees to recharge, pursue a personal goal or desired action.

• Occasional Flexible Work Hours and Location Standard – The Company allows for a mutually beneficial arrangement as agreed upon by employee and supervisor that allows flexibility for eligible employees, regarding both hours and location, around a set of Core Business Hours (9 a.m. to 3 p.m.)

• Reduced Workweek Standard - A reduced workweek arrangement is a work week schedule that is less than the standard 40 hours. There are two versions of the reduced workweek arrangement: A Short-Term Reduced Workweek Arrangement and a Transition to Retirement Reduced Workweek Arrangement.

• Working from Home Standard - Working from home or from other premises of the employee’s choosing other than the workplace.

• Vacation-Buying Standard - The Company allows up to forty (40) hours of purchased vacation above and beyond any carryover or employee vacation allotment.

We offer a generous compensation and benefits program to attract and retain top talent. We believe our compensation is designed to support, reinforce and align with our key culture elements, the Company’s business strategies and objectives, as well as goals and metrics set on an annual basis. We will always work to administer a compensation program that is fair, consistent and free of discrimination. In this spirit of trust and transparency, we share a detailed individual market comparison annually so each of our salaried employees know how they compare to a market-driven benchmark.

• Medical
• Dental
• Vision
• Life
• AD&D
• Disability
• Retirement Plan

Health & Wellness

TPC Group believes that a healthy and engaged workforce is a productive and safe workforce. Through Vitality, the Company’s wellness program, employees can participate in year-round healthy wage challenges, competitions and fitness activities that support the holistic wellbeing of employees. Since the program’s launch in 2017, employees have challenged one another in a Steps Challenge, Weight Loss Challenge, Hydration Challenge and Sleep Challenge. This continued focus on personal wellness with preventive wellness efforts improve employee health while driving down healthcare costs.

Employee Development

TPC Group’s performance-based culture enables employees to achieve their ultimate potential and help the Company to achieve superior performance. TouchPoints, our performance management program, provides multiple opportunities during the year for employees to receive forward-looking feedback. Our Company’s employee development planning process occurs twice annually through robust dialogue between managers and employees. The focus of these conversations is on the employee’s short- and long-term career aspirations. Through this shared, collaborative process, employees have the opportunity to discuss their unique development needs in relation to their career goals and determine the best means by which to achieve those objectives.

It is our people that deliver results and drive success. At TPC Group, we define development as growth in someone’s knowledge, skills and personal effectiveness by providing learning facilities and avenues where these new ideas can be applied to increase someone’s capabilities in current and future roles. The Company’s leadership team is committed to setting employees up for success and providing the tools and capabilities to do so. Meaningful initiatives that include regular TouchPoints conversations between manager and employee; formal and informal learning opportunities through the Company’s online learning tool Catalyst; individual development plans, or garnering experiences through committee participation, project assignments or temporary positions, means that limitless possibilities exist at all levels in the organization when our employees commit to grow and develop and achieve a level of ownership and accountability for mapping one’s own journey at TPC Group.

TPC All for One Foundation

TPC Group’s emergency relief fund, established as a 501 (c) 3 organization, was founded in 2017 to provide financial assistance to support employees who had been adversely impacted by Hurricane Harvey. The Foundation, maintained with contributions from employees and matching Company dollars, continues to support employees who face unexpected hardships and apply for assistance from the Foundation.

At TPC Group, our commitment to sustainability goes beyond our goals to reduce our carbon footprint. It is delivering results that underscore the commitment to be a good neighbor, and one that operates our plants safely, reliably and in an environmentally responsible manner. Since 2014, we have reduced butadiene emission from our Houston Operations by more than 90 percent.

Beyond our commitment to environmental performance, we want to be part of what makes the community and our employees thrive. Through program and initiatives made possible with an engaged and diverse workforce, aligned with our principles in business conduct and ethics, our people are making a difference in the quality of life for those who live and work in the communities where we have operations. We do this in many ways, including:

Community Investment

• College Scholarships. Our Mark of Excellence Scholarship Program, initiated in 2006, has awarded more than $950,000 in academic scholarships providing educational assistance to graduating seniors who go on to receive two and four-year degrees.

• Internships. Through its Genesys Works Partnership, TPC Group employs high school students during their senior year in three key disciplines: Finance, IT, and Engineering. The Company also affords meaningful work experience across all functions of the organization for college students seeking a summer internship opportunity.
  
• Charity Golf Tournament. More than $1.2 million has been raised for nearly 40 not-for-profit organizations through the Annual Charity Golf Tournament since 2006.
  
  
• United Way Campaign. Since 1994, TPC Group has pledged more than $1 million to the United Way, which stewards these funds in the communities where Company employees live, work and do business. We have increased our annual giving from $35,000 in 2015 to more than $230,000 in 2022.
  
  
• Community Day. One Day is when employees and family members come together to lend a helping hand on one day for two selected organizations and help make a difference. Since 2018 more than 1020 volunteer hours and $120,000 has been invested in community projects affiliated with our ONE DAY event.

Employee Engagement & Volunteerism

Our culture of giving is underscored by how employees are supported for their personal efforts to give back to the community. Throughout the year, employees are recognized for their personal volunteer time, as well as their time spent making the communities in which TPC Group has operations, a more inviting place to live, work and do business.

Eligible employees can apply for one or more of the following:

• Matching Gifts Program. Contributions to qualified 501(c) 3 organizations are matched dollar-for-dollar, up to $250 per employee per calendar year.

• Employee Lottery. Employees who donate a significant amount of time or hold a leadership position on a board or committee of a not-for-profit organization, are eligible to receive funds for the organization, from TPC Group on behalf of the employee.

• Volunteer Paid Day. An employee that volunteers 12 or more hours to a non-profit organization with a 501 (c)(3) or its U.S. equivalent qualification, independent from Company-sponsored volunteer events that occur during business hours, will receive one floating holiday.

• Volunteer Response Program. In the spirit of an All for One culture, employees volunteer their time to support their coworkers impacted by the devastation of property caused by weather or other unexpected events.

Open Communication

TPC Group participates in Community Advisory Panels at its locations to share EHSS and other relevant business information. The Company also works closely with its elected officials, business leaders and Chambers of Commerce to help drive quality of life issues that enrich communities where the Company operates.