2015 Sustainability Report

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GRI Index

GLOBAL REPORTING INITIATIVE INDEX

General Standard Disclosures

Disclosure

Description

Location

Strategy and Analysis

G4-1

Statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and its strategy for addressing sustainability.

CEO Statement

G4-2

Description of key impacts, risks and opportunities.

Contained in various sections throughout the report.

2015 Annual Report & Form 10K
(page 13-16)

Organizational Profile

G4-3

Name of the organization.

PPG

G4-4

Primary brands, products and services.

2015 Annual Report & Form 10K
(pages 9-11)

Businesses

G4-5

Location of organization’s headquarters.

Pittsburgh, Pennsylvania, USA

G4-6

Number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.

Worldwide Operations

Facts about PPG

G4-7

Nature of ownership and legal form.

PPG is a publicly owned company, with shares traded on the New York Stock Exchange (symbol: PPG).

G4-8

Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries). 

2015 Annual Report & Form 10K
(pages 9-11)

Businesses

G4-9

Scale of the reporting organization.

2015 Annual Report & Form 10K
(pages 34-37)

Facts about PPG

G4-10

Total number of employees.

People Overview

Data by employment contract are not applicable since our employees work on a permanent basis. Data on supervised workers are not provided. There is no centralized repository for this information, and we do not anticipate creating one in the near future.

G4-11

Percentage of total employees covered by collective bargaining agreements.

About 32 percent of our total global workforce was covered by collective bargaining agreements in 2015.

G4-12

Describe the supply chain.

Supply Chain

G4-13

Significant changes during the reporting period regarding the organization’s size, structure, ownership or supply chain.

2015 Annual Report & Form 10K
(pages 25-26)

G4-14

Report whether or how the precautionary approach or principle is addressed by the organization.

PPG Global Code of Ethics

2015 Annual Report & Form 10K
(page 13)

 G4-15

Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

Stakeholder Engagement

 G4-16

Memberships of associations and national or international advocacy organizations in which the organization holds a position on the governance body, participates in projects or committees, provides substantive funding beyond routine membership dues, or views as strategic.

Stakeholder Engagement

Identified Material Aspects and Boundaries

G4-17

All entities included in the organization’s consolidated financial statements or equivalent documents and whether any entity included in the organization’s financial statements or equivalent documents is not covered by the report.

2015 Annual Report & Form 10K
(page 38)

G4-18

Process for defining the report content and the aspect boundaries and how the organization has implemented the Reporting Principles for Defining Report Content

Materiality

Reporting Overview

G4-19

All material aspects identified in the process for defining report content.

Materiality

G4-20

For each material Aspect, the Aspect Boundary within the organization.

Materiality

G4-21

For each material Aspect, the Aspect Boundary outside the organization.

Materiality

G4-22

The effect of any restatements of information provided in previous reports, and the reasons for such restatements.

Not applicable

G4-23

Significant changes from previous reporting periods in the Scope and Aspect Boundaries.

Not applicable

Stakeholder Engagement

 G4-24

List of stakeholder groups engaged by the organization.

Stakeholder Engagement

G4-25

Basis for identification and selection of stakeholders with whom to engage.

Stakeholder Engagement

G4-26

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.

Stakeholder Engagement

G4-27

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

2015 Annual Report & Form 10K
(pages 65-66)

Stakeholder Engagement

Report Profile

G4-28

Reporting period.

2015

G4-29

Date of most recent report.

2014

G4-30

Reporting cycle.

Annual

G4-31

Contact point for questions regarding the report or its contents.

We encourage stakeholder feedback to assess the usefulness of this report and to provide suggestions regarding the content of future reports.

To provide feedback or request additional information, contact PPG at One PPG Place, Pittsburgh, PA 15272, Attention: Corporate Communications.

G4-32

In accordance option the organization has chosen, GRI content index and external assurance.

Reporting

GRI Index

G4-33

Policy and current practice with regard to seeking external assurance for the report.

Reporting

Governance

G4-34

Governance structure of the organization, including committees of the highest governance body and any committees responsible for decision-making on economic, environmental and social impacts.

Governance

Technology and Environment Committee

Sustainability Approach

G4-35

Process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees.

PPG Corporate Governance Guidelines

G4-36

Executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body.

Our Sustainability Committee establishes policies, programs and procedures and reports to the Technology and Environment Committee of our Board of Directors. Most Sustainability Committee members are officer-level employees.

G4-37

Processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.

Stakeholders and other interested parties may send communications to the Board, the independent directors (individually or as a group) or the Lead Director in writing by sending them in care of our corporate secretary at PPG, Inc., One PPG Place, Pittsburgh, Pennsylvania 15272.

G4-38

Composition of the highest governance body and its committees.

Board of Directors

Governance

G4-39

Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organization’s management and the reasons for this arrangement.)

Board of Directors

Charles E. Bunch is Executive Chairman, PPG. Bunch serves as chair of our Executive Committee and is a member of our executive management team.

G4-40

Nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members.

Nominating and Governance Committee

G4-41

Process for the highest governance body to ensure conflicts of interest are avoided and managed and whether conflicts of interest are disclosed to stakeholders.

Corporate Governance Guidelines

G4-42

Highest governance body’s and senior executives’ roles in the development, approval and updating of the organization’s purpose, value or mission statements, strategies, policies and goals related to economic, environmental and social impacts.

Technology and Environment Committee

G4-43

Measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental and social topics.

Our Sustainability Committee’s work is reviewed by our Board of Director’s Technology and Environment Committee. The Sustainability Committee establishes policies, programs and procedures, including metrics, to help us better understand and address sustainability in our business practices in order to remain a leader in the business segments in which we participate.

G4-44

Process for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics and actions taken in response to the evaluation.

Corporate Governance Guidelines

G4-45

Highest governance body’s role in the identification and management of economic, environmental and social impacts, risks and opportunities and whether stakeholder consultation is used to support this identification and management.

Technology and Environment Committee

G4-46

Highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics.

Technology and Environment Committee

G4-47

Frequency of the highest governance body’s review of economic, environmental and social impacts, risks and opportunities.

2015 Annual Report & Form 10K
(pages 13-16)

G4-48

Highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material aspects are covered.

The sustainability report is reviewed by our Sustainability Committee

G4-49

Process for communicating critical concerns to the highest governance body.

We have an open reporting environment and expect employees to raise any ethics- or compliance-related questions or concerns. We offer several reporting channels for employees to use, such as an anonymous Ethics Hotline that is available 24 hours every day. The phone numbers are also available on our internal and external Ethics websites so that anyone, including customers and suppliers, can report potential ethics violations by PPG employees and seek advice and assistance.

Employees are also offered other avenues to communicate their concerns or questions by contacting our “Ask the Experts” online resource, their supervisor, Human Resources representative, and Chief Compliance Officer. All of these reporting channels are posted on the Ethics intranet.

Stakeholders and other interested parties may send communications to the Board, the independent directors (individually or as a group) or the Lead Director in writing by sending them in care of our corporate secretary at PPG, Inc., One PPG Place, Pittsburgh, Pennsylvania 15272.

G4-50

Nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them.

We do not disclose specific information about the number and nature of items communicated to, and addressed by, our Board of Directors.

G4-51

Remuneration policies for the highest governance body and senior executives and how performance criteria in the policy relate to the highest governance body’s and senior executives’ economic, environmental and social objectives.

PPG’s Directors receive an annual retainer, half of which is paid in cash on a quarterly basis and half of which is paid on the date of each annual meeting of shareholders in restricted stock units that vest on the day prior to the subsequent annual meeting of shareholders.

Annual incentive compensation of the company’s executives and senior managers is partially (30 percent) based on personal goals that tie to overall corporate business goals, with the remainder based on company and business financial performance. PPG does not require that its executives have personal goals linked to social or environmental performance, although some executives, by virtue of their responsibilities, may have goals related to those issues.

G4-52

Process for determining remuneration.

2016 Proxy Statement (page 19)

G4-53

How stakeholders’ views are sought and taken into account regarding remuneration.

2016 Proxy Statement (page 19)

G4-54

Ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees.

We do not track this information currently. We will comply with the U.S. Securities and Exchange Commission’s pay ratio disclosure regulations.

G4-55

Ratio of percentage increase in annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees.

We do not track this information currently. We will comply with the U.S. Securities and Exchange Commission’s pay ratio disclosure regulations.

Ethics & Integrity

G4-56

Organization’s values, principles, standards and norms of behavior, such as codes of conduct and codes of ethics.

PPG Vision, Mission, Strategy and Values

Global Code of Ethics

G4-57

Internal and external mechanism for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines.

Global Code of Ethics

G4-58

Internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.

Global Code of Ethics

Specific Standard Disclosures

Economic Performance

G4-EC1

Direct economic value generated and distributed.

2015 Annual Report & Form 10K (pages 34-37)

G4-EC3

Coverage of the organization’s defined benefit plan obligations.

2015 Annual Report & Form 10K (page 28)

G4-EC4

Financial assistance received from government.

Partnerships

Energy

G4-EN3

Energy consumption within the organization.

Energy

G4-EN5

Energy intensity.

Energy

G4-EN6

Reduction of energy consumption.

Energy

G4-EN7

Reductions in energy requirements of products and services.

Sustainable Products

Water

G4-EN8

Total water withdrawn by source.

Water

Breakdown by source is not provided. There is no centralized repository for this information, and we do not anticipate creating one in the near future.

Emissions

G4-EN15

Direct greenhouse gas emissions (Scope 1).

Emissions

G4-EN16

Energy indirect greenhouse gas emissions (Scope 2).

Emissions

G4-EN18

Greenhouse gas emissions intensity.

Emissions

G4-EN19

Reduction of greenhouse gas emissions.

Emissions

G4-EN21

NOx, SOx and other significant air emissions.

Emissions

Effluents and Waste

G4-EN23

Total weight of waste by type and disposal method.

Waste

G4-EN24

Total number and volume of significant spills.

Waste

Health and Safety

G4-LA6

Type of injury and rates of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities, by region and by gender.

Health and Safety

Data on absenteeism and by gender, as well as some contractor data, are not provided. There is no centralized repository for this information, and we do not anticipate creating one in the near future. Due to a data system change in 2015, we are unable to provide occupational disease data but anticipate doing so in the 2016 report.

Local Communities

G4-SO1

Percentage of operations with implemented local community engagement, impact assessments and development programs.

Community Engagement Strategy

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