To our Stakeholders:

We are delighted to be part of the UN Global Compact community. This is our first communication on progress.

I am pleased to confirm that Elementis reaffirms our support of the Ten Principles of the
United Nations Global Compact in the areas of Human Rights, Labor, Environment and Anti-Corruption.

In this annual Communication On Progress, we describe our actions to improve our integration of the Global Compact and its principles into our Company Values, business strategy, and daily operations. We continue to commit to sharing this information with our stakeholders using all our channels of communication.

Sincerely,

Paul Waterman
CEO

Our newly launched Code of Conduct strives to require respect for all human rights through clear communication of our expectations for employees, suppliers, distributors, customers and other business partners. This Code encourages high ethical standards of fairness and respect in all business dealings. This code has been extended to our terms and conditions and establishes clear requirements for our business partners and requires them to have their own policies and procedures to protect Human Rights.

* Ensured safe and proper working conditions for all employees and contractors through 5 annual online courses and in-person training programs such as:
- Eliminating Forced Labor, Slavery and Human Trafficking
- Ethics and Compliance
- Preventing Workplace Violence
- Preventing Sexual Harassment
- Information Security

* Updated the security procedures at visitor sign in for Headquarters and other locations

* Addressed and reaffirmed human rights protection principles in our newly launched Code of Conduct and Company Values

• Increased the number of internal promotions by 16 in 2018

• Included gender diversity plans in Human Resource planning

• Required female candidates on external short lists for Leadership Team positions

While Elementis is obligated to comply with the UK Modern Slavery Act of 2015 and the US California Transparency in Supply Chains Act of 2010, we have extended the requirements of these Acts to all countries and regions in which we do business. Our policy also describes our due diligence processes to assess our compliance with the principles of these Acts. Furthermore, our Company Values includes a “Respect” which further delineates our commitment to fair and respectful practices of our employees and responsibilities for compensation and benefits. These expectations also extend to business partners via our terms and conditions.

• Ensured the company complied with labor codes and practices through training and use of Equality and Diversity policies

• Ensured sites are certified using appropriate local and international safety standards

• Strived to protect our workforce by continually reducing our injury rate, provided a comprehensive safety program and regular emphasis by all levels at each site
on the importance of safety both in and outside the workplace

• Achieved our best ever safety performance (3 recordable injuries in 2018)

• Improved our EcoVadis Corporate Social Responsibility scoring putting us in the top 7% of over 2000 companies in our sector (EcoVadis includes a section on
Labour)

Environment and climate risk is integrated into multi-disciplinary company-wide risk identification, risk assessment, and management processes. Elementis annually reports environmental performance and Green House Gas (GHG) emissions in our Annual Report and through the Carbon Disclosure Project (CDP). We incorporate climate change, biodiversity, energy responsibility, and environmentally friendly technologies and products through our Company Values and Sustainability programs.

• Measured our manufacturing and carbon intensity ratios annually and used this data to drive improvements in plant operations that minimize energy utilization
and waste

• Emphasized respect for the environment to all employees in our Code of Conduct and Company Values training

• Initiated a formal program to find and use more sustainable or natural technologies for our products and processes

• Incorporated sustainable thinking in our R&D innovation programs

• Initiated local site specific programs to replace disposable paper products, plastic utensils, and non-recyclable consumables.

• Established an assessment program for products using COSMOS and ISO16128 to assert naturalness

• Improved our EcoVadis Corporate Social Responsibility scoring putting us in the top 7% of over 2000 companies in our sector (EcoVadis includes a section on
Environment)

In all regions we operate, we are committed to vigorous but fair competition for suppliers and customers. Employees are expected to uphold our Company Values and Code of Conduct in all business transactions. Explicit anti-corruption training is given all employees annually. An anonymous Alertline is in place to report infractions or seeming transgressions so we can uphold our reputation as a reputable and responsible company.

• Created a culture via our Code of Conduct, Management Leadership, and employee engagement that requires the highest standard of ethics in everything we do

• Conducted required annual online and in-person training on anti-corruption, bribery and ethical business practices

• Continued our committed to conducting business with integrity and maintains a confidential alert line for reporting any incidents or discretions

• Used third-party audits of our business processes to measure performance and validate adherence to our policies and programs

• Completed 1,800 hours of online anti-corruption training in 2018

• Required training on the newly launched Code of Conduct for all employees