2016 Sustainability Report

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To Our Stakeholders

PPG had another successful year in 2016 financially and strategically. We continued to strengthen our paint, coatings and specialty materials businesses around the world while maintaining our focus on sustainable operations.

Highlights of our 2016 sustainability performance include:

  • Achieving 31 percent of sales from sustainable products, an increase of 55 percent since 2012;
  • Reducing our energy intensity by 17 percent, greenhouse gas (GHG) emissions intensity by 14 percent, waste disposal intensity by 8 percent and water usage intensity by 9 percent;
  • Achieving our waste disposal intensity and GHG emissions intensity goals four years ahead of the 2020 target, with respective reductions of 11 percent and 29 percent since 2012;
  • Eliminating 21 percent of the very small number of remaining non-consumer products that contain lead. We remain on track to meet our goal of eliminating lead in remaining non-consumer formulations by 2020;
  • Having 70 percent of our facilities meet the requirements of the PPG Community Engagement Framework; and
  • Creating the PPG Supplier Sustainability Award to recognize suppliers that help us meet our sustainability goals and demonstrate industry-leading sustainability and safety cultures.

Our employees continued to enhance and strengthen our sustainable operations. During the year, we recognized nearly 200 projects through our internal sustainability awards initiative. These projects, which we estimate saved more than $20 million, helped us reduce our energy consumption, waste, water use and emissions.

Our continued commitment to innovation is intertwined with sustainability and covers a wide range of products and services that provide environmental, safety and other benefits to our customers. Our products contribute to lighter, more fuel-efficient vehicles, airplanes and ships, and they help our customers reduce their energy consumption, conserve water and reduce waste.

As we continue our 10-year commitment to the COLORFUL COMMUNITIES™ program, we plan on bringing our paint brushes, our passion and our colorful commitment to the entire PPG footprint, helping create brighter surfaces and brighter futures for the communities we call home.

In 2016, PPG volunteers led more than 40 Colorful Communities projects in 20 countries to bring color and vitality to schools, hospitals and community organizations through the use of PPG paints and coatings. We’ve made measurable progress toward covering PPG’s entire global footprint with improvement projects since the initiative began in 2015, completing nearly 60 projects and positively impacting more than 1.8 million people.

We are proud of the progress we have made on our sustainability journey but also recognize that we have more to do. I encourage you to learn more by reading our full 2016 Sustainability Report and our 2016 Community Engagement Report.

Michael H. McGarry
Chairman and Chief Executive Officer

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