2016 Sustainability Report

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Global Reporting Initiative

General Standard Disclosures

GRI 102 General Disclosures 2016

Disclosure Description Location

Organizational Profile

102-1

Name of the organization

PPG

102-2

Activities, brands, products and services

Businesses

102-3

Location of headquarters

Pittsburgh, Pennsylvania, USA

102-4

Location of operations

Worldwide Operations

Facts about PPG

102-5

Ownership and legal form

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

102-6

Markets served

Businesses

102-7

Scale of the organization

Facts about PPG

102-8

Information on employees and other workers

People Overview

Data by employment contract are not applicable since our employees work on a permanent basis.

102-9

Supply chain

Supply Chain

102-10

Significant changes to the organization and its supply chain

2016 Annual Report & Form 10K (pages 25-26)

102-11

Precautionary Principle or approach

PPG Global Code of Ethics

2016 Annual Report & Form 10K (page 13)

102-12

External initiatives

Stakeholder Engagement

102-13

Membership of associations

Stakeholder Engagement

Strategy

102-14

Statement from senior decision-maker

To Our Shareholders

102-15

Key impacts, risks and opportunities

Contained in various sections throughout the report.

2016 Annual Report & Form 10K (pages 13-15)

Ethics and Integrity

102-16

Values, principles, standards and norms of behavior

PPG Vision, Mission, Strategy and Values

Global Code of Ethics

102-17

Mechanisms for advice and concerns about ethics

Global Code of Ethics

Governance

102-18

Governance structure

Governance

Technology and Environment Committee

Sustainability Approach

102-19

Delegating authority

PPG Corporate Governance Guidelines

102-20

Executive-level responsibility for economic, environmental and social topics

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.

102-21

Consulting stakeholders on economic, environmental and social topics

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.

102-22

Composition of the highest governance body and its committees

Board of Directors

Governance

102-23

Chair of the highest governance body

Board of Directors

Michael H. McGarry is Chairman and Chief Executive Officer, PPG. He serves as chair of our Executive Committee and is a member of our executive management team.

102-24

Nominating and selecting the highest governance body

Nominating and Governance Committee

102-25

Conflicts of interest

Corporate Governance Guidelines

102-26

Role of highest governance body in setting purpose, values and strategy

Technology and Environment Committee

102-27

Collective knowledge of highest governance body

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.

102-28

Evaluating the highest governance body’s performance

Corporate Governance Guidelines

102-29

Identifying and managing economic, environmental and social impacts

Technology and Environment Committee

102-30

Effectiveness of risk management processes

Technology and Environment Committee

102-31

Review of economic, environmental and social topics

2016 Annual Report & Form 10K (pages 13-15)

102-32

Highest governance body’s role in sustainability reporting

The sustainability report is reviewed by our Sustainability Committee

102-33

Communicating critical concerns

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.

102-34

Nature and total number of critical concerns

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

102-35

Remuneration policies

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.

102-36

Process for determining remuneration

2017 Proxy Statement (page 21)

102-37

Stakeholders’ involvement in remuneration

2017 Proxy Statement (page 21)

102-38

Annual total compensation ratio

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

102-39

Percentage increase in annual total compensation ratio

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

Stakeholder Engagement

102-40

List of stakeholder groups

Stakeholder Engagement

102-41 Collective bargaining agreements About 32% percent of our total global workforce was covered by collective bargaining agreements in 2016. 

102-42

Identifying and selecting stakeholders

Stakeholder Engagement

102-43

Approach to stakeholder engagement

Stakeholder Engagement

102-44

Key topics and concerns raised

Stakeholder Engagement

Reporting Practice

102-45

Entities included in the consolidated financial statements

2016 Annual Report & Form 10K (page 40)

102-46

Defining report content and topic Boundaries

Materiality

Reporting Overview

102-47

List of material topics

Materiality

102-48

Restatements of information

Indicated when necessary throughout the report.

102-49

Changes in reporting

Indicated when necessary throughout the report.

102-50

Reporting period

2016

102-51

Date of most recent report

2015

102-52

Reporting cycle

Annual

102-53

Contact point for questions regarding the report

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.

102-54

Claims of reporting in accordance with the GRI Standards

Reporting Overview

GRI Index

102-55

GRI content index

GRI Index

102-56

External assurance

Reporting Overview

Material Topics

Disclosure Description Location

GRI 201: Economic Performance 2016

201-1

Direct economic value generated and distributed

2016 Annual Report & Form 10K (pages 34-39)

201-3

Defined benefit plan obligations and other retirement plans

2016 Annual Report & Form 10K
(page 29)

201-4

Financial assistance received from government

Partnerships

GRI 302: Energy 2016

302-1

Energy consumption within the organization

Energy

302-3

Energy intensity

Energy

302-4

Reduction of energy consumption.

Energy

302-5

Reductions in energy requirements of products and services

Sustainable Products

GRI 303: Water 2016

303-1

Water withdrawal 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.

GRI 305: Emissions 2016

305-1

Direct (Scope 1) GHG emissions

Emissions

305-2

Energy indirect (Scope 2) GHG emissions

Emissions

305-4

GHG emissions intensity

Emissions

305-5

Reduction of GHG emissions

Emissions

305-6

Emissions of ozone-depleting substances (ODS)

Emissions

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX) and other significant air emissions

Emissions

GRI 306: Effluents and Waste 2016

306-2

Waste by type and disposal method

Waste

306-3

Significant spills

Waste

GRI 403: Occupational Health and Safety 2016

403-2

Types of injury and rates of injury, occupational diseases, lost days, absenteeism and number of work-related fatalities

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.

GRI 413: Local Communities 2016

413-1

Operations with local community engagement, impact assessments and development programs

Community Engagement Strategy

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