Environment Overview At PPG, we are committed to using resources efficiently to preserve and protect the environment in which we operate. We also innovate products and processes that provide environmental and other sustainability benefits to our customers. Our environment, health and safety (EHS) policy provides the guidelines under which we manufacture, market and distribute products globally in a manner that protects our people, neighbors, customers and the environment. This policy incorporates elements from several voluntary global industry initiatives in which we are a participant, including the RESPONSIBLE CARE® program and COATINGS CARE® initiative. Our locations implement the policy through our global EHS management system, ensuring consistent execution against our EHS standards, sustainability goals and strategies worldwide. The system also enables us to track our progress on a location, business and global level. In 2016, we had 45 locations certified to the ISO 14001:2015 standard for environmental management systems. Our corporate environmental management system was also certified to the ISO 14001:2015 standard in 2016, two years ahead of the September 2018 transition deadline. We established a new set of environmental sustainability goals in 2016 to better represent the sustainability challenges we currently face. We measure intensity and other calculated rates rather than absolute numbers to account for year-to-year variations in production volume and company growth, which could mask progress or slippage against the goals. Environmental Sustainability Goals Goal 2012 Baseline 2016 Progress versus Baseline 40 percent of sales from sustainable products and processes by 2020 20 percent 31 percent ↑ 55 percent 10 percent reduction in total waste disposal intensity by 2020 from a 2012 baseline 4.70 (metric tons of waste per 100 metric tons of production) 4.16 ↓ 11 percent 25 percent reduction in greenhouse gas intensity by 2020 from a 2012 baseline 0.52 (metric tons of emissions per 100 metric tons of production) 0.37 ↓ 29 percent On our path to eliminating spills, ensure that we achieve an improvement of at least 10 percent per year in our spills and releases rate 2.32 (total spills and releases per 1,000 employees) 1.48 ↓11 percent over 2015 Implement water management plans at priority sites - Created and implemented a process to develop water management plans - Eliminate lead from remaining non-consumer coatings formulations by 2020 - Eliminated 21 percent of the remaining non-consumer products that contain lead - Data include our flat glass and European fiber glass businesses, which we sold in 2016.