Chairman, President & CEO Message and 2016 Highlights

In 2013, Calgon Carbon made a strong commitment to advance our Company's impact and contribution to our environmental, social, and economic influence. I am proud to introduce our fourth Sustainability Report, which chronicles our initiatives and performance in four key focus areas: Enhancing the Workplace, Environmental Stewardship, Community Support, and Product Stewardship. By thoroughly tracking and transparently reporting our sustainability metrics in these areas, both in years past and currently, we allow ourselves to easily and effectively manage our efforts as we move into the future.

Commitment

With an improved safety performance across the board, reduced energy demand for production, and effective frameworks in place for continuous improvement in environmental management systems, Calgon Carbon made great strides in 2016.

The company's footprint also expanded, as we celebrated the grand opening of our reactivation plant in Tipton, U.K., and the acquisition of the wood-based activated carbon, reactivation, and mineral-based filtration media business of CECA, a subsidiary of ARKEMA Group (the New Business). The acquisition expanded our European operations by the addition of five facilities. We are especially eager to have included in the acquisition the capabilities to produce activated carbon from wood, a renewable resource, and increase our reactivation capabilities.

Safety Performance

Our safety performance showed a 62% improvement compared to 2014, proving a consistent year-over-year reduction in the number of injuries sustained within the Company; and, our recordable incident rate totaled less than 1.0, securing our corporate goal.

We attribute these substantial advances to:

  • Upholding Corporate Safety Standards and revising the Standards in 2016 to continue to promote improvement within our current requirements;
  • Increased employee participation in our Behavior Based Safety Program, which directly increases employee engagement in the program; and,
  • Continued implementation of SafeStart® trainings and concepts, emphasizing the importance of safe behaviors among new and current employees.

As mentioned last year, we intended to focus efforts on improving the safety performance of our European operations, known as Chemviron. In doing so, we developed an EU executive safety committee to closely monitor and guide the region's safety programs and acquired an additional safety resource at the largest of our EU operations. We remained strong in our deployment and support of SafeStart® training and concepts in the region. As a result, we saw a vast improvement in 2016 compared to our performance in 2015.

Enviromental Management and Performance

In 2016, our newest Chemviron facility in Tipton, U. K. began preparations to certify to the ISO 14001 Environmental Management System, with final certification achieved in April, 2017. Chemviron utilizes the standard to drive continual improvements within its business operations leading to ever increasing environmental performance and greater sustainability.

Additionally, U.S. virgin activated carbon manufacturing and reactivation facilities, as well as our headquarters and innovation center, achieved certification to the American Chemistry Council's Responsible Care Management System® in 2016. This system drives continuous improvement efforts in our environmental, health, safety, and security performance, as well as improvements to product stewardship and process safety. We believe the initiative is both integral and complementary to Calgon Carbon's mission.

Since our first report in 2013, we have seen a 9% reduction in energy consumption per metric ton of production, which we attribute to capital projects and initiatives. This is achievable only through the innovation and cooperation of multiple departments and teams of individuals who continually strive to improve our impact on the environment.

Growth

As I mentioned, Calgon Carbon forged ahead not only in our sustainability efforts, but in size as well. The grand opening of our plant in Tipton, U.K., which is dedicated to the reactivation of spent activated carbon used in drinking water and food grade applications, was completed after undergoing major upgrades to increase the capacity and efficiency. We also added five facilities through the acquisition of the New Business, all of which expand our purification technologies, and in turn, expand our ability to assist our customers in meeting their clean air and pure water demands.

We are excited to integrate these facilities into our sustainability program and reporting in the years ahead, including harnessing the positive impact of the new facilities on our key focus areas of Environmental Stewardship, Enhancing the Workplace, Community Support, and Product Stewardship.

Moving into the future, we will continue to place top priority on our initiatives and reporting our progress. As always, these efforts require the dedication of our employees, who consistently go above and beyond to shape the future of our company. I thank you for taking the time to read our 2016 Sustainability Report, and look forward to continuing our widespread efforts to bring you updates on our growth and performance in years to come. I encourage your feedback and welcome comments and suggestions.

Sincerely,

Randy signature

Randall S. Dearth
Chairman, President & Chief Executive Officer
Calgon Carbon Corporation