Responsible Care Report

Introduction Being an international chemical company, Eastman understand the importance of handling and using chemicals with great care. We have learned that what a company does reveals a great deal more than what it says. That is why we actively work to protect people and the environment and to uplift the standards of the economic, physical and social world in which we live and work. The Japanese call it kyosei, mean harmony and prosperity between business and society. ®

Through the American Chemistry Council’s Responsible Care initiative, Eastman has agreed to continue to lead the company in ethical ways that increasingly benefit society, the economy and the environment. ®

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Sustainability and Responsible Care go hand in hand. Since 1988, our Responsible Care efforts have focused on improving our health, safety, and environmental performance. Sustainability takes a broader view and encompasses societal issues – from human rights – to standards of living – to access to natural resources. Eastman has been involved in sustainability in many ways. We are making life better, healthier, and safer for people around the world through:     

Supplying high quality products and services to our customers Creating values for our investors Providing a good place for people to work Being a good community neighbor Minimizing the environmental footprint we leave on the earth

Almost everything we do has an economic, environmental or social impact. We strongly believe that Eastman’s presence enhances the quality of life in the communities surrounding our plants. Eastman Chemical Company is doing a world of good by creating products, being a good neighbor, and making a difference – another way to look at the triple bottom line.

The Foundation for Sustainability At Eastman Chemical Company, when we talk about health, safety, the environment and security (HSES), it’s not about the numbers that we report, but about the people both inside our plants and outside in our surrounding communities. That’s why we take our role as a Responsible Care® company very seriously. We have adopted Responsible Care® as the cornerstone of our corporate HSES policy and regularly assess our operations and business practices against that policy. In the past year, we’ve had many positive stories to tell about our company, including our continued strong performance in health, safety, security and environmental stewardship. Our safety performance continues to be among the best in our industry, as we experienced fewer recordable injuries, fewer serious injuries and fewer significant incidents in 2008. At Eastman we strive to address safety from three perspectives: personal safety, process safety and product safety. We place equal emphasis on all three areas and in 2008 that emphasis yielded significant safety dividends: 

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Personal Safety Performance o Our corporate Injury and Illness Recordability Rate (OSHA-R) was 0.75, our target and best rate in our Company's history! o Our corporate Days Away from Work (DAW) rate was 0.13 and below our 2008 target of 0.15. o A number of sites and divisions delivered “best ever” safety performance and some have been recognized by government authorities for their commitment to safety. Process Safety Performance o We developed “leading indicator” measures for process safety which will allow us to focus efforts on reducing the number of significant events we experience. Product Safety Efforts o A key effort in the Product Safety arena has centered on compliance with REACH in Europe. Eastman has been an industry leader in this new regulatory regime as demonstrated by the European Chemical Industry Council’s (CEFIC) adoption of Eastman’s method for coding SIEF (Substance Information Exchange Forum) participation.

Eastman innovation led to a variety of improvements in products and processes around the world. Many of these improvements help reduce emissions and conserve resources. At our Workington, UK, plant, two 2-megawatt wind turbines enable us to satisfy a significant portion of the site’s electricity needs from a renewable resource. Our new Integrex™ Technology PET manufacturing plant in Columbia, SC, minimizes scrap, waste, and energy consumption and has a significantly smaller environmental footprint than other PET technologies. Good stewardship requires that the company pay attention to its impact on the environment as well as its impact on safety. 

Environmental Performance o In July 2008, our Corporate Responsible Care® Management System was recertified through a third-party audit. o We continue to make progress on our corporate environmental goals. Established in 2006, these goals focus on 5 to 8 year improvements in metrics such as hazardous waste per unit volume, reportable releases, energy efficiency, greenhouse gas intensity and emissions of SO2, NOx, and VOC’s.

o

A number of Eastman sites and functions were recognized with awards for outstanding environmental performance.

Securing chemical manufacturing sites from terrorist attack is also an important aspect of protecting people and the environment. We are diligent in securing our sites around the world. In response to increased regulations related to security, our U.S. manufacturing sites have timely completed required tasks for implementation of the Department of Homeland Security’s Chemical Facilities Anti-Terrorism Standard (CFATS). An important aspect of our approach to HSES is transparency. At Eastman, we openly share our approach, goals, and performance with the public in many ways. We encourage you to look at the pages here for information on our environmental footprint; health and well-being of employees; workplace safety; public safety and security; performance measures and awards. While we are proud of our HSES accomplishments, we believe there is more to be done and we won’t stop until we’ve accomplished a workplace with zero accidents and injuries. We are committed to building a sustainable future for our employees, our communities and our environment. Strong HSES performance is foundational to sustainable operational excellence and financial performance. Our past successes and well-earned recognition emphasize the sound HSES systems we have in place throughout the company and we are well positioned to meet the changes and challenges before us. Theresa K. Lee Chief Officer of Health, Safety, Environment & Security Eastman Chemical Company

Responsible Care In the late 1980’s, the chemical industry realized that its success would be greatly enhanced by gaining the public’s trust. Even though responsible chemical companies were taking great precautions to ensure their operations were safe, many communities surrounding those plant sites were unaware of those measures. ®

To address this issue, the American Chemistry Council developed Responsible Care . CEOs of most major chemical companies throughout the US voluntarily made a public commitment to improve health, safety, and environmental performance beyond levels required by law – and to make that performance known to the employees, communities and public outside their companies. No other industry can claim such an initiative, and Eastman played a leadership role from the very ® beginning. The general management practices developed for Responsible Care have been further refined and incorporated into a series of Corporate Health, Safety, Environmental, and Security Policies ® which Eastman applies to its operations and businesses globally. Eastman’s Responsible Care Pledge, outlining our approach to protecting people and the environment, has been one of the company’s core documents for years. ®

2008 marked the 20th anniversary of Responsible Care . It is a program now familiar to all Eastman men ® and women around the world. Responsible Care represents our commitment to protect the environment and the health and safety of our employees, communities, and people who handle our products. It has become the way we operate our facilities and do business. What began as a listing of management practices and self-evaluations has become an integrated management system, complete with performance metrics and goals, public reporting, and third party assessment and certification. As people throughout the world call for more environmental and social accountability, more attention has been given to the idea of sustaining our plant for the future. From our beginnings in Kingsport, Tennessee as a manufacturer of photographic chemicals from renewable natural resources through our leadership in developing and adopting the chemical industry’s Responsible Care initiative, Eastman has tried to be a ® sustainable company. We always have and always will. Our legacy with Responsible Care will serve as a key foundational element for Eastman’s commitment to a sustainable future. ®

Visit www.responsiblecare-us.com to learn more about Responsible Care . American Chemistry Council Eastman Chemical Company has been a long-standing member of the American Chemistry Council (ACC). As the flagship trade organization for the chemical industry, the ACC represents the companies that make the products that make modern life possible, while working to protect the environment, public health and the security of our nation. Founded in 1872, the ACC’s support for research and initiatives that serve our communities and customers continues today. Member companies have committed to implement a set of goals and guidelines that go above and beyond federal regulation on health, safety, security and the environment. The ACC believes that information and dialogue have the power to create change: in our industry, in our communities, and in our world. For more information about the American Chemistry Council, go to www.americanchemistry.com.

Responsible care OUR PLEDGE TO PROTECT PEOPLE AND THE ENVIRONMENT Our industry is essential to the products and services that help make our lives safer, healthier and better. Through the Responsible Care® initiative and the Responsible Care® Global Charter our industry has made a worldwide commitment to improve our environmental, health, safety and security performance. Accordingly, we believe and subscribe to the following principles: ● To lead our companies in ethical ways that increasingly benefit society, the economy and the environment. ● To design and develop products that can be manufactured, transported, used and disposed of or recycled safely. ● To work with customers, carriers, suppliers, distributors and contractors to foster the safe and secure use, transport and disposal of chemicals and provide hazard and risk information that can be accessed and applied in their operations and products. ● To design and operate our facilities in a safe, secure and environmentally sound manner. ● To instill a culture throughout all levels of our organizations to continually identify, reduce and manage process safety risks. ● To promote pollution prevention, minimization of waste and conservation of energy and other critical resources at every stage of the life cycle of our products. ● To cooperate with governments at all levels and organizations in the development of effective and efficient safety, health, environmental and security laws, regulations and standards. ● To support education and research on the health, safety, environmental effects and security of our products and processes. ● To communicate product, service and process risks to our stakeholders and listen to and consider their perspectives. ● To make continual progress toward our goal of no accidents, injuries or harm to human health and the environment from our products and operations and openly report our health, safety, environmental and security performance. ● To seek continual improvement in our integrated Responsible Care Management System® to address environmental, health, safety and security performance. ● To promote Responsible Care® by encouraging and assisting others to adhere to these Guiding Principles.

James P. Rogers President and Chief Executive Officer Eastman Chemical Company RESPONSIBLE CARE® IS A REGISTERED SERVICE MARK OF THE AMERICAN CHEMISTRY COUNCIL. M 981 (6-09)

RE S PONSI BLE CARE G LO B AL CH A RT E R

Responsible Care

®

R ESP O N SI B LE CAR E G LO B A L CH A RT E R 2 0 0 5 R ESP O N SI B LE CAR E G LO B A L CH A RT E R 2 0 0 5

Responsible Care® is the global chemical industry’s environmental, health and safety (EHS) initiative to drive continuous improvement in performance. It achieves this objective by meeting and going beyond legislative and regulatory compliance, and by adopting cooperative and voluntary initiatives with government and other stakeholders. Responsible Care is both an ethic and a commitment that seeks to build confidence and trust in an industry that is essential to improving living standards and the quality of life. The Responsible Care Global Charter arose from an examination of chemical industry practices and performance that has evolved since the mid-1980s, and was shaped by considering the recommendations of independent stakeholders from around the world. The Charter goes beyond the original elements of Responsible Care since its inception in 1985. It also focuses on new and important challenges facing the chemical industry and global society, including the growing public dialogue over sustainable development, public health issues related to the use of chemical products, the need for greater industry transparency, and the opportunity to achieve greater harmonization and consistency among the national Responsible Care programmes currently implemented. The International Council of Chemical Associations (ICCA), through Responsible Care, will continue to undertake actions consistent with the environmental principles of the United Nations Global Compact.

T H E R E S P O N S I B L E C A R E G L O B A L C H A RT E R C O N TA I N S N I N E K E Y E L E M E N T S :

1. ADOPT GLOBAL RESPONSIBLE CARE CORE PRINCIPLES.

people to understand and address

national Responsible Care programme

their concerns and expectations.

based on a set of eight common

The Global Responsible Care Core

‡ Cooperate with governments and

fundamental features. They are:

Principles commit companies and

organisations in the development

national associations to work together

and implementation of effective

Guiding Principles that member

to:

regulations and standards, and to

companies sign.

‡ Continuously improve the

meet or go beyond them.

environmental, health and safety

‡ Provide help and advice to foster

‡ Establish and implement a set of

‡ Adopt a title and logo that are consistent with Responsible Care. ‡ Implement management practices

knowledge and performance of

the responsible management of

our technologies, processes and

chemicals by all those who

through a series of systems,

products over their life cycles so

manage and use them along the

codes, policies or guidance

as to avoid harm to people and

product chain.

documents to assist companies

the environment. ‡ Use resources efficiently and minimise waste. ‡ Report openly on performance, achievements and shortcomings. ‡ Listen, engage and work with

to achieve better performance. 2. IMPLEMENT FUNDAMENTAL FEATURES OF NATIONAL RESPONSIBLE CARE PROGRAMMES. Each national chemical association establishes and manages its own

‡ Develop a set of performance indicators against which improvements can be measured. ‡ Communicate with interested parties inside and outside

the membership. ‡ Share best practices through

support national and international

‡ Utilize clean and safe technologies

initiatives to advance these goals.

and processes when building new

information networks.

plants or expanding their current

‡ Encourage all association member

4. CONTINUOUSLY IMPROVE

companies to commit to and

AND REPORT PERFORMANCE.

participate in Responsible Care.

Each chemical company that

implementation of Responsible

implements Responsible Care is

Care and adopt verification

procedures to verify the

expected to collect and report data

processes carried out either by

implementation of the measurable

for a core set of environmental, health

associations, government bodies

elements of Responsible Care by

and safety performance measures.

or other external organisations.

member companies.

Each national association is expected

‡ Introduce and apply systematic

facilities around the world. ‡ Go beyond self-assessment of the

Industry leaders support the national

to collect, collate and report this data

5. ENHANCE THE MANAGEMENT OF

associations in the fulfillment of these

from its members in each country.

CHEMICAL PRODUCTS WORLDWIDE –

fundamental features. The Charter

The data will also be collated and

PRODUCT STEWARDSHIP.

defines specific commitments

reported publicly at the international

Product stewardship issues will

consistent with the fundamental

level and be updated every two years

increasingly shape the Responsible

features.

at a minimum.

Care initiative in future years. The

In order to continue to achieve

ICCA will establish a strengthened

3. COMMIT TO ADVANCING

improved performance, each national

global programme to evaluate and

SUSTAINABLE DEVELOPMENT.

association that implements

manage chemical-related risks and

Responsible Care is a uniquely

Responsible Care will:

benefits by developing a unified

designed initiative that enables the

‡ Periodically assess, with the

product stewardship management

global chemical industry to make a

participation of their members,

system approach. This approach will

strong contribution to sustainable

stakeholder expectations for

be in place by 2006.

development. Through improved

expanded or modified

National associations, working with

performance, expanded economic

performance reporting or other

their member companies, will commit

opportunities, and the development

aspects of performance.

to this concerted global effort by

of innovative technologies and other

‡ Commit to providing practical help

establishing processes for Responsible

solutions to societal problems, the

and support in sharing and

Care companies to:

industry will continue taking practical

adopting best practices to improve

‡ Re-commit to full implementation

steps to implement initiatives in

environmental, health and safety

of current Responsible Care

support of sustainable development.

performance, and other

product stewardship

The industry will expand its dialogue

assistance related to Responsible

commitments, including all

with stakeholders to identify additional

Care implementation needs.

existing codes, guidelines and

opportunities to contribute to

practices. ‡ Improve product stewardship

sustainable development through

Chemical companies that implement

Responsible Care.

Responsible Care will:

performance and increase public

The chemical industry recognizes the

‡ Adopt a management systems

awareness of the industry’s

important contribution that can be

approach to implement their

made through capacity building of

Responsible Care commitments

the sound management of chemicals

consisting of the internationally

to achieve sustainable development

accepted elements of Plan-Do-

goals. The industry will continue to

Check-Act.

commitments and results. ‡ Develop and share best practices through mutual assistance. ‡ Work in partnership with upstream suppliers and downstream

chemical users to collaborate on

business partners and other

commitments; and establishing a

improved processes for the safe

stakeholders and to expand

global process for revoking, when

and effective uses of chemicals.

knowledge and understanding of

necessary, the Responsible Care

the management of chemicals. They

status of any company or association

for education, research and testing

will also work in partnership with

that fails to meet its commitments.

approaches that will yield useful

national governments, multi-lateral

information about the risks and

and non-governmental organisations

8. ADDRESS STAKEHOLDER

benefits of chemicals through

to define mutual assistance priorities

EXPECTATIONS ABOUT CHEMICAL

such initiatives as the High

and share access to information

INDUSTRY ACTIVITIES AND PRODUCTS.

Production Volume chemical

and expertise.

The global chemical industry will

testing programme and the Long-

The global chemical industry will

extend existing local, national and

range Research Initiative.

develop and share information and

global dialogue processes to enable

‡ Implement enhanced product

practices across companies consistent

the industry to address the concerns

stewardship commitments

with competition law and other

and expectations of external

consistent with the ICCA’s Global

legal requirements.

stakeholders to aid in the continuing

‡ Encourage and sustain support

Chemicals Management Policy,

development of Responsible Care.

and periodically assess product

7. ACTIVELY SUPPORT NATIONAL AND

stewardship practices in the light

GLOBAL RESPONSIBLE CARE

9. PROVIDE APPROPRIATE

of evolving societal expectations

GOVERNANCE PROCESSES.

RESOURCES TO EFFECTIVELY

for chemical products.

The chemical industry, through the

IMPLEMENT RESPONSIBLE CARE.

ICCA, commits to an enhanced,

Responsible Care is the signature

6. CHAMPION AND FACILITATE THE

transparent and effective global

performance initiative of the chemical

EXTENSION OF RESPONSIBLE CARE

governance process to ensure

industry and will have an increasingly

ALONG THE CHEMICAL INDUSTRY’S

accountability in the collective

important part to play as a basis for

VALUE CHAIN.

implementation of Responsible Care.

the industry’s views in societal and

Responsible Care companies and

The governance process will be

regulatory discussions. Companies

associations commit to promoting the

implemented by the ICCA and will

participating in Responsible Care must

Responsible Care ethic, principles

incorporate such issues as tracking

support and meet the requirements

and practices along their own value

and communicating performance

of the national programmes and

chains and communicating the

commitments; defining and

provide sufficient resources for

importance of the industry’s economic

monitoring the implementation of

implementation.

and social contributions.

Responsible Care obligations;

Chemical companies and national

supporting national association

associations commit to increase

governance; helping companies and

dialogue and transparency with their

associations to achieve Charter

Only the English language version is the official document

For further information visit www.icca-chem.org · www.responsiblecare.org

INTERNATIONAL COUNCIL OF CHEMICAL ASSOCIATIONS

Or contact the ICCA secretariat at the European Chemical Industry Council, Cefic, Avenue E van Nieuwenhuyse 4, box 1, B-1160 Brussels, Belgium Tel: +32 2 676 72 17

Operational Excellence Chemical companies share a common goal – to operate safely while protecting employees, the community and the environment. Eastman is very proud of its history in demonstrating this. To meet that goal, we engage in risk management on a daily basis—from design and construction, through start-up and operation, to maintenance and training. We measure performance, conduct audits, investigate accidents, and improve conditions and behaviors. It’s an ongoing process that requires highly skilled people and continuous monitoring and testing of equipment and management systems. Assessing risk and finding ways to reduce them is our first responsibility to our communities. Layers of Protection      

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Employees – Highly trained and continually educated employees are our most important resource in operating our facilities and in protecting our community and our environment. Mechanical Integrity – Comprehensive inspection and testing programs assure reliable and well-maintained equipment, which greatly reduces the possibility of failure. Hazard Reviews – Comprehensive reviews are conducted before startup and every five years thereafter on all systems handling hazardous materials. Hazard Reviews identify accident potential and corrective actions before something becomes a problem. Our goal is to eliminate and/or reduce hazards. Process Controls – A variety of reliable, computerized systems provide precise control of processes in different manufacturing areas and maintain tight operating parameters. Monitoring Systems – Highly sensitive detectors identify impending problems and give operators early warning, enabling them to provide quick and effective responses. Emergency Response – The key to minimizing the effect of an incident or accidental release is to get the right people and equipment to the scene quickly. This takes planning, practice, and highly trained emergency responders with specialized equipment. These two things will help keep an incident or accidental release from affecting a large area. Eastman also enhances emergency readiness by playing a leadership role in local emergency planning commissions. Notification – If an incident has the potential to impact employees or near neighbors, Eastman has systems in place for notifying them and the rest of the community. Good Communication – To increase our neighbors’ awareness and understanding of operations, Eastman holds public meetings, makes classroom and civic presentations and works with local media. Carrier Selection Process – To minimize risk in transporting our products to our customers, Eastman has developed a rigorous selection process for carriers. We require a superior performance record from each before that company becomes a carrier of our products. Management of Change – We use a documented process at each chemical handling site to evaluate any potential hazards associated with process-related changes. Root Cause Analysis – We use a structured approach to incident investigation which allows us to extract lessons from incidents and prevent future incidents. Chemical Safety Testing – We perform a laboratory analysis of chemicals before their use to identify any potentially hazardous properties. Engineering Standards – We make use of currently recognized and generally accepted good engineering practices (GEP) in the design and construction of facilities and equipment. This includes both generally recognized global standards and local standards. Management Leadership and Commitment –At every chemical handling site, there is a management-led committee responsible for process safety.

Workplace Safety The culture at Eastman is one of commitment to safety, accountability for actions, and feedback on performance. We believe that workplace incidents, injuries, and illnesses are preventable. Our goal is to ensure the highest personal safety for our employees. In other words, no injuries – ever. Working safely is a condition of employment and is a basic responsibility of every employee. Preventing workplace incidents, injuries, and illnesses is an integral part of Eastman’s worldwide business strategy. Our safety programs are the best in the nation. Compared to our industry peers, we perform in the top quartile for workplace safety. In 2008, our corporate Injury and View our Safety Measures Illness Record ability rate (OSHA-R) was 0.75. This performance allowed us to meet our target of 0.75, and represents the best rate in our Company's history. Our corporate Days Away from Work (DAW) rate was 0.13 which is below our 2008 target of 0.15. In addition, a number of sites and divisions delivered “best ever” safety performance and some have been recognized by government authorities for their commitment to safety.

Guiding Principles for Workplace Safety

Incident Prevention

Work-related incidents are prevented through several layers of protection, including safe design, safe work practices, safe behaviors, and the use of appropriate engineering, operating, and administrative controls.

Management Leadership and Accountability

Each manager establishes clear safety expectations and goals, provides resources, establishes processes, and monitors overall progress.

Employee Involvement

Each employee is committed to working safely and to protecting the safety of others. Employees participate fully in all elements of the safety program.

Regulatory Compliance

Complying with applicable laws and regulations is an integral part of Eastman’s safety program.

Inclusive Scope

Prevention of workplace incidents, injuries, and illnesses for employees, contractors, visitors, suppliers, and customers is our safety objective. Providing the skills and attitude to work safely off the job is our expanded goal.

Safety Education

Each employee is provided with the knowledge and skills necessary to work safely.

Hazard Control

Exposures to potential hazards in the workplace are identified, assessed, controlled, and monitored.

Assessment

Assessment and benchmarking against the world’s safety leaders drives continual improvement through the adoption of best practices.

Emergency Preparedness

Emergency response plans and capabilities are maintained to manage emergencies related to Eastman facilities and operations.

Public Safety & Security Eastman takes its role of protecting the community and the environment very seriously. Eastman sites have many layers of protection in place to prevent incidents from happening and to help ensure that a minor incident does not escalate to a catastrophic event. We maintain emergency response programs designed for rapid and effective response to site emergencies to help protect employees and the communities. Eastman facilities that manufacture, process, use, distribute, or store hazardous materials have an emergency response program that includes the following essential elements: an ongoing assessment of potential risks to employees and local communities with a current, written site emergency response plan; an ongoing training program for employees who have response or communications responsibilities in the event of an emergency with annual emergency exercises; communication of relevant and useful emergency response planning information to the local emergency planning authorities or committees; and coordination of the written site emergency response plan with the comprehensive community emergency response plan and other facilities. Security Eastman maintains risk-based, performance-oriented security programs designed to protect Company facilities, products, intellectual property, information, people on Company property and the public. These security programs are consistent with applicable regulations and with sound, industry-accepted security practices. Each manufacturing facility has extensive physical security measures as well as personnel security measures to address new hire employees and contractors. Also in place are all-encompassing processes for corporate cyber / information technology and logistics / supply chain security. In addition, each manufacturing facility or geographic region has a Local Crisis Management Plan that is exercised on a periodic basis.

Community Advisory Panels Spreading the Word Around the World About Eastman

“Oftentimes, people don’t realize how much Eastman does,” says a member of South Carolina’s Community Advisory Panel, David Summers. “The company is a great corporate citizen and neighbor.” A Community Advisory Panel (CAP) is a partnership between communities and companies that was developed as part of the Responsible Care initiative. It was created to enhance communications between the company and communities in which plants are located. Eastman has six Community Advisory Panels and they are located in Columbia, Jefferson, Kingsport, Longview, Middelburg and Workington. The objective of a CAP is to provide citizens living in plant communities with the opportunity for open dialogue with company representatives. This helps the citizens understand industry issues and helps Eastman to understand concerns of citizens. CAP meetings also provide a forum for plant representatives to discuss community response to ideas and plans presented by Eastman. Ultimately the purpose of a CAP is to look after the community’s interests and build trust. CAP members are made up of citizens from all walks of life that provide a diverse representation of the community. Some examples of members would be plant neighbors, civic leaders, medical professionals, teachers, government officials, service organizations and environmentalists. Their role as a CAP member for Eastman is to serve as an advisory body to the company. They help the company assess its communications within the community and offer suggestions for improved communication. “Community Advisory Panel members broadly represent many stakeholders in our site communities – educators, environmentalists, public officials, ministers and near neighbors,” says CeeGee McCord, Community and Local Relations manager. “The feedback we receive and the information shared allows us to be responsive and continue to work together on many different things.” Members of Eastman’s CAPs serve for one, two or three years. This provides a fresh outlook and helps to keep spreading the word about the company to others living in the community. A typical CAP meeting is held monthly and lasts for about two hours. The agenda varies from month-tomonth and often includes tours of plant facilities, discussion of current Eastman initiatives and their impact on the community and other company strategies such as education and hiring.

Teaching Sustainability At Eastman, we believe the future is in our hands—in the work that we do, in the products that we make, and in the communities in which we live. That’s why Eastman men and women take time to teach others the importance of sustainability. Environmental Education One of the ways we do this is through environmental education. At our Longview, Texas manufacturing site, we have a nature center that also serves as an outdoor classroom for local teachers. Together with the Texas Forestry Service, Eastman hosts annual nature walks for educators and environmental science competitions for students. In South Carolina, Eastman sponsors the statewide Champions of the Environment competition for students in kindergarten through high school. This hands-on outdoor science competition demonstrates the importance of protecting our environment. In Tennessee, Eastman sponsors a Good Sports Always Recycle™ program to promote plastics recycling at sports events at the University of Tennessee and to educate the public about the importance of conserving our environment. All schools in the state are invited to submit their recycling programs which are judged for excellence and ingenuity. Ten winners are awarded a trip to a UT football game for on-field recognition during half-time and receipt of $500 for continued improvement of their programs. Sustainable Workforce We also teach the importance of a sustainable workforce. We know that our future business success will be determined by the quality of our workforce. By partnering with local schools and colleges, Eastman provides mentors, classroom science demonstrations, grants and scholarships to promote further education in math and science. In Tennessee, we have committed one million dollars to further classroom training and development for middle school math teachers, and in the Netherlands, Eastman employees volunteer time working with underprivileged children through the MORE Project. A sustainable workforce also comes from promoting healthy living. Eastman offers a combination of health programs and healthcare benefits to our employees that focus on enhancing wellness. And, both on the job and at home, we promote safety as our number one concern. Sustainability is a part of the Eastman culture. Whether it’s in the way we do business, the way we operate our facilities, or the way we care for our employees and community, our philosophy about sustainability is simple. We believe we can, and must, meet today’s needs without compromising the ability of future generations to meet their own.

Texas Eastman is “Certified Forest Steward” We use innovative forest sustainability practices on 40 acres of forest land and open the property to schools, scouts and others to learn about forest stewardship, water and wildlife.

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Energy Management As a leader in the chemical industry, Eastman has long realized what energy intensive challenges are encountered in this business. We have always encouraged and promoted energy efficiency at our many worldwide operating facilities. Eastman realizes that minimizing energy usage ensures increased opportunities for profitability and productivity, while minimizing our greenhouse gas (GHG) emissions. Eastman has a corporate energy policy that emphasizes continual improvement, innovation, and environmental stewardship. It also recognizes the importance of management leadership, empowerment and partnerships in achieving the performance and results we desire. We have goals for energy efficiency improvement at the corporate level, with supporting goals at the site and operating unit level. Eastman's achieved corporate energy goals include: 

  

Early corporate goals were achieved in the 1990's, causing new goals to be established in 2002. This new goal called for a 2% per year improvement in energy intensity (energy required per pound of product) through 2012, and we are on track to achieve that goal Reduced energy intensity by 40% from 1997-2007 Greenhouse gas (GHG) emissions intensity measures show a 27% reduction over the last 10 years Energy savings for 2008 projects equated to over 4,500,000 MMBTUs.

Eastman Chemical Company has earned energy efficiency awards for reducing energy consumption since the inception of the American Chemistry Council (ACC) program 16 years ago. Combined 2008 ACC Energy Award projects will save 2.8 trillion BTUs and 138,000 tons of greenhouse emissions annually. Eastman's energy policy balances our need for affordable supply with the need to identify alternate and renewable sources of energy that will leave a lighter footprint on the environment. We've been recognized as an Energy Champion by the Department of Energy and participate and in the Environmental Protection ® Agency's ENERGY STAR Partner Program. .

Alternative and Renewable Energy Sources

In 2006, Eastman’s Workington, UK site was one of the first chemical companies in the UK to install wind turbines to assist in achieving improvements in energy efficiency while reducing cost. The two turbines provide 25 percent of the site’s total electricity requirements. Wind is one of the many technologies to help reduce greenhouse gas emissions and is the cleanest and lowest form of renewable energy available. The site has been recognized “For Demonstrating Commitment to Sustainability” by the Chemical Industry Awards and many companies have followed their example. Additional projects: – Biodiesel in fleet vehicles and locomotives in Tennessee. – A new hydrogen plant at Eastman Chemical Middelburg BV, which reuses almost all process generated heat. – A new boiler installed in the incinerator in Eastman Chemical Middelburg BV. The system uses residual heat to generate steam. In addition to a significant financial savings, also has resulted in a reduction of 30% natural gas usage, as well as a reduction of 13% in CO2 emissions.

Green Biocatalytic Process The Eastman™ green biocatalytic process provides new green, sustainable, and natural ingredients for use in cosmetics and personal care products. It uses enzymes and closely controlled conditions to make esters, eliminating the high temperature and strong acids traditionally required in their manufacture. Esters are a vital building block in thousands of products. The cosmetic and personal care industry in North America annually consumes an estimated 50,000 metric tons of esters for a variety of uses including emollients, emulsifiers, and specialty performance ingredients. Presented with the 2009 Presidential Green Chemistry Challenge Award by the U.S. Environmental Protection Agency (EPA), this “gentler” process consumes less energy while making high quality products, even when beginning with sensitive starting materials. Eastman’s green biocatalytic process uses no solvents and virtually eliminates byproducts, reducing the number of processing steps required for manufacture. Key benefits of the Eastman™ green biocatalytic process:    

Low energy consumption Operates at low temperatures and uses no solvent or strong acids Adheres to the EPA’s Twelve Principles of Green Chemistry Can utilize natural source material to produce natural ingredients

Sustainable Processing Breakthrough Wins U.S. Government Green Chemistry Award

The Eastman™ green biocatalytic process has received the 2009 Presidential Green Chemistry Challenge Award. The U.S. Environmental Protection Agency (EPA) on behalf of the White House, recognizes technologies that incorporate the principles of green chemistry into chemical design, manufacture and use. More...

Industrial Gasification Sustainability through Industrial Gasification Technology Eastman was the first manufacturer in the U.S. to commercialize industrial gasification – a process that converts coal and other carbonaceous materials into a very clean & usable synthetic gas (syngas.) For over 25 years, Eastman has been gasifying coal and converting syngas into some of its most significant chemical products that ultimately become part of many consumer products including pharmaceuticals, clothing, LCD screens, tools, toys and automobiles. Gasification is widely recognized as the leading clean alternative for deriving chemicals from hydrocarbons. It not only meets the energy and chemical products needs of the present generation but will enable future generations to meet their needs, as well. Sustainable benefits of industrial gasification include:   

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Provides a solution to the energy and raw materials crisis. Syngas can be used in many of the same ways as natural gas or oil (only more cheaply) to produce energy and chemical products. Conserves valuable water resources. Gasification uses approximately 30-40% less water than traditional coalbased power generation. Provides the lowest-cost approach for capturing and storing carbon dioxide, the compound most associated with global warming. Carbon dioxide capture is typically required as part of the production process and its cost is thus included as a part of normal production costs. Incremental costs are therefore reduced to those costs associated primarily with the compression, transportation, injection and monitoring for long-term geologic storage of the carbon dioxide. Produces inherently lower air emissions than conventional coal- or petcoke-based technologies, along with lower collateral production of solid wastes and wastewater. Syngas is typically not combusted during industrial gasification and chemical conversion steps require the removal of contaminants to very low levels. In many cases, carbon in the feedstock is incorporated into final durable products. Sulfur, slag and any carbon dioxide that is formed can be recovered as relatively pure by-products with productive uses in fertilizers, building materials and enhanced oil recovery.

IntegRex™ Technology Eastman’s innovative IntegRex™ technology is used to produce PET resins. This advanced technology reduces the number of steps needed to produce PET and makes efficient use of plant space, meaning a smaller environmental footprint than conventional PET manufacturing facilities. It also requires less fossil fuel for construction and operation and improves yield while reducing water and wastewater streams, compared with traditional processes. The IntegRex™ manufacturing process uses substantially less energy (51%) than conventional PET production processes. Integrex™ technology enables a variety of promising product attributes ParaStar™ next-generation PET resins which are produced via this revolutionary technology enable Eastman’s customers to more efficiently and economically produce a wide variety of containers for food and beverage packaging. This pioneering technology also minimizes scrap, waste and energy consumption. ParaStar™ provides customers with greater opportunities to be environmentally responsible in their own processing and conversion. Products molded or formed from ParaStar™ resins are 100 percent recyclable and are compatible with the existing PET recycling stream.

ENERGY STAR® Partnership At Eastman, we are committed to protecting the environment through the continuous improvement of our energy performance. To foster that ® commitment, we have joined ENERGY STAR as a Partner. ®

ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy focusing on helping everyone save money and protect the environment through energy efficient products and

practices. ®

As an EPA ENERGY STAR Partner, Eastman Chemical Company commits to:    

Measure, track, and benchmark our energy performance. ® Develop and implement a plan consistent with the ENERGY STAR strategy to improve energy performance in our facilities and operations. ® Educate employees and the public about our partnership and achievements with ENERGY STAR . ® Support the ENERGY STAR Challenge, a national call-to-action to help improve the energy efficiency of America’s commercial and industrial buildings by 10 percent or more.

Our commitment to energy performance improvements is supported by the resources and tools offered through ENERGY ® STAR . These tools are not only available to us as a company, but to our employees as well.

Air Quality As a responsible local neighbor and a sustainable global company, Eastman is dedicated to doing our part to improve air quality in the places we operate throughout the world. To that end, all Eastman manufacturing facilities are committed to protective and conservative management of air resources. Over the years, Eastman has developed a comprehensive air pollution control program by upgrading process technology, installing air pollution control equipment, and implementing improved work practices. Recent examples of improvement projects include a new flare installed by Texas Operations which reduces VOC emissions by 60 tons per year. South Carolina Operations replaced existing polymer manufacturing lines with the new IntegRex™ process eliminating 300 tons of VOC emissions annually. The Eastman facility in The Netherlands reduced annual VOC emissions 40% by incinerating scrubber exhaust gases. Tennessee Operations now uses biodiesel fuel in all in-plant vehicles including locomotives resulting in cleaner exhaust gases. An important part of the management of air emissions is the measurement and reporting program. At U.S. facilities, Eastman operates over 50 continuous emission monitors on vent stacks and conducts about 60 emission tests each year to confirm that control requirements are met. In addition, we minimize fugitive emissions by periodically monitoring over 140,000 components, such as valves and pumps, in our leak detection and repair programs. The results of these tests along with other performance data are routinely reported to state and federal agencies. Every year Eastman makes approximately 150 reports certifying compliance with air permits. Eastman also works closely with local and state agencies to promote air quality within the region. Both Texas Operations and Tennessee Operations participate in Ozone Early Action Compacts, which tackle the complex task of meeting ozone standards through voluntary emission reductions. Texas Operations has permanently retired NOx and VOC emission sources as part of the Longview attainment plan. Tennessee Operations has a response plan in place for Ozone Action Days in the Kingsport area that includes encouraging employees to reduce vehicle use, adjusting boiler operation to minimize NOx emissions, and asking trucks entering the facility to avoid idling. The protection of air quality is an essential and complex part of Eastman’s environmental program. We assure sound environmental performance and improve the air quality in our manufacturing neighborhoods through pollution prevention methods, control technologies, monitoring programs, and community partnerships.

Water Stewardship At Eastman Chemical Company, we recognize that water is a finite, valuable and renewable resource that is essential to life as well as the operations of our company. Efficiency and pollution prevention are the key components to our water sustainability practices. We design our industrial processes to minimize the use of water by treating water to meet specific purposes and recycling water where possible. Our water efficiency practices not only reduce the cost of water and wastewater treatment, but also reduce capital equipment costs, reduce or eliminate the handling and use of potentially hazardous chemicals typically used to produce potable water, and decrease the carbon footprint of our company by reducing energy consumption associated with water treatment and distribution. We strive to protect water quality during construction and operation of Eastman facilities. We do this through pollution prevention measures and effective wastewater treatment. Our wastewater treatment plants are state-of-the-art facilities designed and operated to meet or exceed all applicable standards or limits for the protection of human health and the ecosystem. Our wastewater treatment processes also return high quality water to the environment for others to use. Eastman also has a long standing record of sponsoring independent, third party ecological studies on the receiving streams of our major manufacturing facilities to ensure that our operations are not causing negative impacts. We will continue this intensive monitoring and share the results with the public. By continuing to be good stewards of this valuable natural resource, we will ensure that a quality water supply can be sustained for generations to come.

Protecting Our Rivers

On a regular basis since the 1960s, we have commissioned the Philadelphia based Academy of Natural Sciences to study the rivers upstream and downstream from our major U.S. plant sites. We do this to ensure that the wastewater treated by our treatment facilities and sent to the neighboring rivers does no harm to the biological communities there. We’re pleased to report that thousands of measurements have confirmed that these rivers are healthy. The abundance and diversity of fish species has increased – a very good indicator of the overall good health of the ecosystem in the rivers— and our continued commitment to their protection for today and the future.

Product Stewardship One of Eastman's Product Stewardship commitments is to conduct Product Regulatory and Risk Reviews to help minimize the potential for adverse effects on human health or the environment from exposure to our products, as well as to help ensure that product specific regulatory requirements are met. Subject matter experts in Product Safety and Health review the raw materials and final composition, the manufacturing process steps, and the end use of the product to help ensure risks associated with products, process materials, and samples are known and that appropriate risk management measures have been implemented prior to commencement of manufacturing, use, sale, or shipment. Outputs of this process include documented toxicity and regulatory reviews, Material Safety Data Sheets, and appropriate statements for product labels. These procedures are conducted in conjunction with the Eastman Product Commercialization Process. High Production Volume (HPV) Chemical Testing Program Another example of Eastman's commitment to good Product Stewardship is our participation in the Environmental Protection Agency's High Production Volume (HPV) challenge program that began in 2000. This was a voluntary program managed through the EPA as a key component of the Chemical Right-to-Know Initiative. Eastman is currently participating on a voluntary basis in the Extended High Production Volume (EHPV) program that has been established to collect information on chemicals that were not included in the original HPV program. The goal of these programs is to make publicly available the baseline health and environmental screening data for chemicals that are manufactured or imported in excess of one million pounds. There were approximately 2,800 chemicals in the HPV program, and over 500 were added under the EHPV program. When the HPV program was initiated, Eastman was associated with 116 chemicals. Eastman and other companies completed data submissions in 2003 for all chemicals we volunteered to address. Eastman is currently managing 5 chemicals under the EHPV program; these chemicals have an anticipated data submission date of 2009. Several of the chemicals manufactured at Eastman have also been included in an HPV program that is globally managed by the OECD (Organization for Economic CoOperation and Development). This program requires the assessment of more data and is accomplished through support of manufacturers on a global basis.

Product Regulatory & Risk Characterization Process Eastman’s corporate Product Safety and Health (PS&H) organization stewards the Product Regulatory and Risk Characterization Process. The PS&H group is staffed with toxicologists, environmental toxicologists, chemists, biologists, industrial hygienists and other experienced regulatory and risk review specialists. These specialists work in conjunction with technology, manufacturing, business and associated health, safety and environmental representatives to gain an understanding of the product, its manufacturing process, and its intended use in order to evaluate the product risk and regulatory compliance and, as appropriate, facilitate the implementation of risk management measures. Eastman’s Product Regulatory and Risk Characterization Process is based on three factors:   

Inputs - what we need to know about the product Considerations - what we take into account as we analyze the inputs Outputs - the results of our analysis in order to satisfy various stakeholders

The first set of inputs for the process provides a clear understanding of the inherent properties of the starting materials and the finished product. Included are the physical, chemical and mammalian/environmental toxicological properties. These are used to define the hazards of the product. This can be done using actual data on the product, its components or, when appropriate, by analogy to similar materials. The next sets of process inputs help define the exposure potential. These include the end use of the product and understanding the details of the manufacturing process. Considerations for helping define exposure potential include the markets in which the product will be sold. For instance, exposures for a product used solely in an industrial setting where strict control measures are typically enforced are anticipated to be much different than a product being used in consumer markets. In some instances, the volume of material being manufactured can be used as a surrogate for exposure potential. The knowledge of both hazard and exposure helps define product risk. Whereas the level of risk is based on hazard and exposure, the regulatory status often depends on both the market specific end use and the jurisdiction in which the material is to be marketed. The outputs from the Product Regulatory and Risk Characterization Process can be varied and typically have many uses. The outputs range from informal opinions or determinations to formal detailed reviews. They can include regulatory based classifications, material safety data sheets (MSDS) and label statements. In some cases formal risk-based summaries are created as with products in the U.S. and international High Production Volume (HPV) chemical review programs. Information developed in this process can be used to complete government reports, notifications and registrations. Eastman’s subject matter experts are available to address specific questions from our various stakeholders. Questions can be directed to Eastman using the Contact Us form on www.eastman.com or by phone to 423-229-2000. Some examples of outputs of Eastman’s Product Regulatory and Risk Characterization Process include:     

Chemical MSDSs Plastics MSDSs Information on Eastman’s participation in the U.S. EPA’s High Production Volume Challenge Program: http://cfpub.epa.gov/hpv-s/ Information about phthalates plasticizers: http://www.phthalates.org/terms.asp Information about ethylene glycol: http://www.egep.org/

Generalized Product Regulatory and Risk Characterization Process Process Inputs

Considerations

Inherent Properties of Starting Materials and Products Physical chemical properties Flammability Reactivity Toxicity information Impurities

data on material/components structure activity relationship analogy to other materials modeling relative hazards

Exposure Potential Physical and chemical properties End use

industial vs. consumer food, drug, device, cosmetic pesticide

Estimated exposure Actual exposure information

closed vs. open batch vs. continuous number of employees volume manufactured concentration vs. limits

New chemical substance Product modification Incident reviews Allegations (TSCA 8c) "Product Stewardship Opportunities" New chemical data/information Internal requests (IH, Safety, Medical, etc.) External requests (customers, public) New regulations

regulatory status by jurisdiction extent of modification significance/findings review review significance type of request type of request applicability/impact

Manufacturing process

Other

Examples of Process Output

Determinations Regulatory and toxicity reviews Product Commercialization statements/opinions Hazard classifications Transport classification Material Safety Data Sheet (MSDSs) Label statements HPV summaries Toxicity summaries (for selected materials) Food contact statements (for selected mateials) Premanufacturing and new substance notifications US EPA Inventory Update Reports Product Notifications Product Registrations MSDS/label updates Feedback to customers Discussions with requester Training employees Training customers (for select materials)

REACH Eastman Chemical Company fully supports the objectives of the new regulation known as the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH). The objective of this new policy is to determine the hazards of chemicals and to carry out risk assessments in order to protect human health and the environment. Eastman, a Responsible Care® company, fully supports the objectives of this policy. Eastman remains actively involved in REACH through working groups in the European Chemical Industry Council (CEFIC) including its Sector Groups like HARRPA, PlasticsEurope as well as the Dutch Chemical Industry Association (VNCI). Cooperation between all key stakeholders is crucial to make REACH a success, minimize costs and decrease the need for animal testing. Eastman confirms its compliance with REACH. Where relevant and required, all substances manufactured in and imported into the European Union by Eastman have been duly pre-registered before December 1, 2008. Eastman intends to participate in as many consortia as possible, to jointly develop required data sets as early as possible. The company is actively engaged in evaluating all its products for registration requirements and will inform customers and suppliers as appropriate of steps Eastman takes on further product registrations. For further information on REACH, please contact your Eastman sales representative.

Nanjing, China Nanjing Yangzi-Eastman Chemical Co. (YEC) in the People's Republic of China has been in operation since 2000 and currently employs approximately 90 people. Expansion of the site was completed in April 2006. The site is accredited under ISO 9001 and ISO14001. YEC includes a hydrogenated resin facility and supplies resin materials to Eastman customers for use in the production of adhesives for products such as disposable diapers, glue sticks and packaging applications. YEC has received several recognition awards, including Best Performance Joint-Venture in 2003 and 2004 by the Chinese Foreign Investment Association. Employees at the site are focused on customer satisfaction, high quality products and innovative solutions. Social responsibility and sustainable contributions to the society are long term visions for the site and its employees.

Shandong, China Qilu Eastman Speciality Chemicals, Ltd. (QESCL) is located in Zibo City, Shandong Province, China. Facility opened in April 2002 and manufactures products used in manufacturing toys, sheet flooring and other products, along with products used in paint. QESCL was certificated on ISO 9000/14000 in 2005. In 2004, QESCL was awarded the Green Label Type Ⅱcertificate by China Environmental United Certificate Co. Ltd (CEC), which is a wholly owned subsidiary company of State Environmental Protection Administration of China. Employees at the site are committed to protecting people and the environment. The site is considered a top level safety management enterprise by the local government safety authority and also obtained the Safety Production License from their local safety authority in 2005.

Kuantan, Malaysia Eastman's Malaysia site has been in operation since April 1998 and employees approximately 80 people. This site produces products primarily used in the manufacturing of specialty film, signage, furniture, and decorative laminates. They are also widely used in packaging and advertising. Responsible Care Eastman Chemical Malaysia is strongly committed to Responsible Care®. ECMAL is an active member of the Responsible Care® Committee Eastern Zone (RCP EZ) under the Chemical Industry Council of Malaysia (CICM). ECMAL fully adheres to all the six codes of the Responsible Care® Management System. In July 2004, ECMAL co-organized and participated in the Responsible Care® Program for River Clean-up and Tree Replanting at Balok River, Kuantan. ECMAL is fully committed to protecting people and the environment. Both the site leadership and employees are committed to maintaining a safe and healthy working environment. ECMAL is also an active member in Gebeng Emergency Mutual Aid (GEMA), a committee formed among all the plants in this industrial zone to render support to each other in case of an emergency. ECMAL has supported and participated in Environmental Week held in Kuantan by the Department of Environment, to promote public awareness of environmental protection. Citizenship As part of our ongoing community outreach, ECMAL has made donations and contributions to schools, as well as several community groups and organizations, including the turtle sanctuary in Kuantan, a senior citizens home, some low-income families, and the local police department.

Singapore Eastman's Singapore site has been in production since late 1998 and employs approximately 100 people. It is one of the pioneer plants established in the merged Jurong Island. The Singapore site produces chemicals sold primarily for use in resins, coatings and vinyl compounding markets. Eastman Chemical Singapore received ISO 9000 certification within one year of production and upgraded to the new ISO version in 2003. HSES Commitment Eastman Chemical Singapore (ECSPL) actively supports Responsible Care® and is committed to health and safety. Since 2000, the site has received several recognition awards for safety performance from the Ministry of Manpower. They were also presented the Family Friendly Employer Merit Award from the President of Singapore, and they have a very active Health & Wellness committee. Gold Awards  

Employee Health & Safety Pollution Prevention

Achievement Awards  

Process Safety Community Awareness & Emergency Response

Citizenship The Singapore site's Leadership Team participates in several Sakra Island committees and in other Jurong Island community events. The site's General Manager is an active member of the Singapore Chemical Industrial Council (SCIC) and is currently one of the Directors of the SCIC Board.

Kirkby, United Kingdom Eastman Company UK Limited employs 29 people, 19 of which are based at the European Technical Centre. The facility offers technical service/application development and research and development for Coating Specialties and SPBO. Also based at Kirkby are Analytical, Accounting and Sustainability functions. HSES Commitment The European Technical Centre (ETC) is committed to an employee health and safety program designed to promote and protect the health and safety of all people working at or visiting the site. Proactive management of issues related to health and safety are part of the ETC’s commitment to its employees and the community. Employees are encouraged to participate in development, implementation, and review of health and safety programs. The ETC Health & Safety Policy promotes efforts to prevent all accidents. A reporting system is used to report incidents or situations that could potentially lead to an accident. Each report is reviewed by supervision and actions recommended to prevent occurrence of the situation are made. In 2008 we recorded over 7 years since a lost time injury and reported a record 44 near miss reports. An employee safety committee meets on a quarterly basis to review all aspects of safety policy and procedures. The committee manages all necessary actions required to ensure compliance with the ETC Health & Safety Policy. Since we became an independent facility we proactively developed recycling and hazardous waste minimization procedures to enable us to increase recycling and reduce hazardous waste in line with the ETC Environmental Policy that was developed and implemented during 2008. Citizenship The ETC also administers an annual community relations fund for the benefit of the local community. The committee focuses on education, health, civic and community events and organizations and provides donations to a selected group of local educational initiatives.

Middelburg, The Netherlands Eastman Chemical Middelburg B.V. in the Netherlands covers 25 acres, was started in 1968 and currently employs approximately 250 people. The Middelburg site produces 80 different resin products. The main applications for those products include adhesives, printing inks, coatings, paper production, paint, the food industry, cosmetics, pharmaceuticals, textiles and building products. The facility exports more than 90% of its total sales to 70 countries worldwide. Eastman's Middelburg site is strongly committed to Responsible Care® and is currently ISO-900, ISO 14001 and ISO 22000 certified. Environmental Awareness The Middelburg plant has an environmental plan for 2006 to 2010. Several projects to minimize waste, energy usage and emissions have been developed and implemented. Safety and environmental improvements are already being realized. Below are some examples:  

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Process and design improvements have reduced VOC air emissions at Middelburg by 60%. Energy efficiency has improved by 10% due to an extension of the Regalite plant. This facility produces hydrogen as a raw material, and is characterized by its reliability and efficient heat integration. Almost all process generated heat will be reused, not only in the hydrogen plant but also in other manufacturing units. A Six Sigma study on wastewater resulted in a reduction in the volume of wastewater by 10%, while the oxygen consuming organic load of the waste water (COD) was reduced by 31%. In 2007, the installation of a new hot oil unit with a low-NOx burner has helped reduce NOx-emissions by 10% Added an incinerator, with a steamboiler, that converts waste heat into steam, used for heating other parts of the production process. This has resulted in a 13% reduction of CO2 emissions and a 30% reduction in the use of natural gas Disposal of hazardous waste has been reduced by 25%.

In 2008, construction began for expanding the Regalite plant. Also a new and larger hydrogen plant is in place to help improve the facility’s energy efficiency. Safety As a Seveso site, Eastman Chemical Middelburg B.V. has a health and safety system in place. In 2007, the site successfully completed a BRZO audit by BRZO authorities. Behavioral Based Safety was implemented at the Middelburg site following a Safety Cultural Assessment. As a result of the assessment, improvement opportunities were identified and addressed. The Middelburg site had one OSHA recordable incident in 2008. The goal for the site is to create an interdependent safety culture. The Middelburg site’s environmental management system was recertified and the site was certified for ISO 22000, which is the norm for food safety and hygiene. The Middelburg site succeeded in achieving certification as the first manufacturing site for chewing gum resins in the world. Due to new European legislation the site has submitted IPPC environmental permit applications. Citizenship The site’s Community Advisory Panel continues to work toward improvement of communications between the plant site and its neighbors in the community.

Workington, United Kingdom More than 160 people are employed at Eastman's Workington site in the United Kingdom. The site covers 80 acres with about 35 acres occupied by buildings. The operation started in 1969, with the production of acetate tow as Ectona Fibres Ltd. - a joint venture between Eastman Kodak and Bunzl. Later, Eastman bought out Bunzl and the company became Eastman Chemical Ectona Ltd. Shipping of final products is mainly by sea bulk containers and trucks. The Workington site is ISO 9001:2000 certified. In line with the Eastman Responsible Care® Pledge, the Workington site is also committed to the Responsible Care® Program sponsored by the UK Chemical Industries Association ( CIA). Being a member of this program enables the site to participate in a local Responsible Care® Cell, whose members represent local chemical industries and associated businesses. The group meets regularly to discuss common issues in the industry and regulatory issues. Environmental Stewardship The Workington site received a 2007 Chemical Industry Energy Award from the Chemical Industries Association for improving energy efficiency at the site and also an IChemE, Resource Efficient Manufacturing Award 2007 (Highly commended). Since commissioning in October 2006, the two wind turbines on site continue to generate more than 25% of the electricity required by the site, resulting in an annualized reduction of at least 9000 tonnes of CO2 emissions. The use of green clean energy from a renewable source fits perfectly with the company's Responsible Care® policy. The use of these turbines enables the company to secure energy generated from a sustainable source and underlines the company's commitment toward the environment. To encourage energy efficiency and enable the company to recoup part of the levy imposed by the UK government's Climate Change Levy scheme, the Workington site has committed to a Climate Change Agreement. This agreement requires the company to set energy efficiency targets and meet them in order to reclaim the levy. The Acetate Tow plant continues to operate under an IPPC permit. As part of the ongoing expansion to the Acetate Tow plant, a new filtration system has been installed which will result in a reduction of waste produced at the site.

Workington, United Kingdom

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Working Safely Safety has always been a key issue for the Workington site and this resulted in the site receiving an Improvement Award from the Chemical Industries Association for attaining an improvement in Lost Time Accident Rate of at least 25% per year for 3 years (2004 -2006). Citizenship The Community Liaison Panel at Workington was established in 1993. It is an important part of Eastman's commitment to Responsible Care®. The panel helps promote understanding between the local community and Eastman, as a responsible employer in the community. The panel meets four times a year with representatives from local village (Seaton, Siddick, Northside and Flimby) residents, local government councilors and the church.

Uruapan, Mexico Approximately 50 people are employed at Eastman's Uruapan manufacturing site in Mexico. The entire facility covers approximately 2.5 acres. The plant started operations in 1937, processing gum dip and producing gum rosin and turpentine. In 1981, a new operation opened in the plant to produce gum rosin derivatives. Eastman acquired the Uruapan site in May 2001, when the company purchased a portion of the resins business from Hercules. With the recent installation of a Pastillator belt, customers are assured of optimum product quality. Eastman's Uruapan plant produces 34 different resin products which are used in adhesives, chewing gum, coatings and inks. The site exports about 14 percent of its total sales. Employees at the site are focused on safely manufacturing products and are proud of their excellent safety records. The site has experienced only one OSHA recordable accident since 1995 and is currently working on its sixth accident-free year.

Jefferson, Pennsylvania, United States Near Pittsburgh, Pennsylvania on 56 acres of land, Eastman employs approximately 230 highly skilled employees at this location. The Jefferson, PA site has been a prosperous manufacturing location for almost 60 years. The Pittsburgh region is a multi-faceted economic community that includes heavy industry, corporate services, light manufacturing, advanced technology, education and health care. This site has industrial capabilities in many chemicals, advanced operating capabilities, reliable support services and utilities, and a waste treatment for aqueous waste. Employees at the Jefferson site have a long history of community involvement. Current outreach programs receive both financial resources and volunteer time. Jefferson operations are regulated by the local Allegheny County Health Department, Pennsylvania Department of Environmental Protection, the U.S. Environmental Protection Agency, and U.S. Coast Guard agencies. By partnering with these agencies, Eastman’s Jefferson site has built a strong relationship based on good performance and strategic environmental goals. The site has fully embraced the Responsible Care® initiative and uses the management system’s approach to deliver and sustain a high level of compliance. The Jefferson site successfully achieved certification in its Responsible Care® Management System in 2007. The Jefferson site also reaches out to its community through a Community Advisory Panel (CAP) that has been active for over 11 years.

Columbia, South Carolina, United States Eastman South Carolina Operations (SCO) is one of the largest manufacturers of Polyethylene Terephthalate (PET) polymer in the United States. PET is the raw material used for plastic bottles for carbonated beverages and bottled water consumed worldwide, and is the most recyclable of all plastics. The manufacturing site is located on the Congaree River in rural Calhoun County on approximately 2,300 acres. This site was established in 1967 as Carolina Eastman, and was originally built to produce polyester fiber for the textile industry. Eastman SCO is also the location for the first IntegRex™ Technology facility, the most advanced PET manufacturing asset in the world. Eastman SCO's dedication to safety, outstanding attention to environmental conservation, loyal citizenship, and world-class product quality are a direct result of Eastman SCO's pledge to adhere to the principles of the Responsible Care® program. Environmental Awareness Eastman SCO is dedicated to environmental conservation. It was awarded membership into the prestigious South Carolina Environmental Excellence Program in recognition of SCO's commitment to protecting and preserving the South Carolina environment.   

Toxic Release Inventory emissions have been reduced by 64% since 1991. Recovers and reuses several in-process chemicals to minimize waste. Over the past five years, reduced the energy required to manufacture a pound of PET by over 35% and actual air emissions by 77% since 2003.

The Patrick Center for Environmental Research of the Academy of Natural Sciences of Philadelphia conducts environmental studies on the Congaree River close to the plant. Results from these river studies conclude that SCO has no negative impact on the river. Through flexibility and constant innovation, Eastman SCO has been able to stay ahead of challenging industry demands and changing market conditions. Citizenship Being outstanding environmental stewards isn't the only way Eastman SCO is committed to being a good neighbor; the site also shares resources with the community. The SCO emergency crew responds to approximately 20 mutual aid (ambulance and fire) calls per year in the surrounding area. SCO hosts a group of site neighbors on a Community Advisory Panel to address issues related to the site and Eastman's role in the community. The site also maintains CARELINE, a dedicated phone line available 24 hours a day, 7 days a week, for the community to address concerns and offer comments.

Columbia, South Carolina, United States

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Educational Outreach Educational development is supported at every level at SCO. One of our major initiatives is being a sponsor of the Champions of the Environment competition for the state of South Carolina. This competition is open to teams of K-12 students from across the state. Winning projects demonstrate potential for long-term benefits to the environment. SCO participates in Earth Day programs and presentations for local elementary schools, and school science fair participation. Co-op opportunities and scholarships are also offered for outstanding students of engineering. Our Values We practice the values of being a good neighbor, an excellent employer, and provide impeccable quality every day. This is how Eastman Chemical Company – South Carolina Operations fulfills the role of being a division employees want to work for; customers want to buy from; communities value; that contributes value to the corporation.

Kingsport, Tennessee, United States Eastman's Tennessee Operations was founded in 1920 in Kingsport, Tennessee, at the edge of the Great Smoky Mountains. Today, Tennessee Operations employs approximately 6,800 of Eastman's 10,200 employees and is one of the largest chemical manufacturing sites in North America. The Kingsport site also serves as worldwide headquarters for Eastman Chemical Company. Tennessee Operations has long been recognized by the outside world as a progressive, innovative facility. This has earned our company numerous public honors, including the Tennessee Governors' Quality Award. Since 1997, Tennessee Operations has been an OSHA Volunteer STAR site, attesting to the fact that our safety and health programs are among the best in the nation. This is a fast-paced facility, and at full production Tennessee Operations:   

Uses 160,000 kilowatts of electricity and has 196,000 kilowatts of generating capacity (enough to serve about 170,000 homes). Operates five diesel locomotives, over 37 miles of Eastman track and makes about 5,000 railcar movements per week. Occupies more than 550 buildings and approximately 4,000 acres of land, with the main plant site covering 900 acres.

Tennessee Operations products go into hundreds of end-use applications in a variety of industries, including your wall paint, your shampoo bottle, the coating on your aspirin, even the credit card you use to buy all of these. So, while our world would be very different without these products, we also understand the importance of handling chemicals with great care and knowledge. Commitment to the Environment and Safety We've long embraced the goals of the Responsible Care® Program, which demand environmental responsibility and public accountability among all chemical manufacturers. We are recognized for our commitment to protecting people and environment. For 14 out of 15 years, Tennessee Operations received the Kentucky-Tennessee Water Environment Association Award for "Operational Excellence". Every year, we recycle millions of pounds of cardboard, paper and plastic, and since 1987, have reduced total Toxic Release Inventory emissions by 74%. Since 1965, Tennessee Operations has commissioned the Academy of Natural Sciences to monitor the health of the South Fork Holston River near the plant. Citizenship Eastman's Community Advisory Panel of local citizens meets regularly with company management to share the public's concerns and interests regarding the impact of plant operations in the community. As a leading company, we have all the technology and equipment it takes to continue the next chapter of our success story. But, above all, we realize that leveraging the exceptional know-how of our employees is the true key to our success.

Longview, Texas, United States Eastman Texas Operations, located near Longview, Texas, manufactures over 40 major chemical and polymer products which are sold to customers worldwide. Total employment for the site is over 1,500, making it one of the largest employers in East Texas and one of the largest chemical facilities in the state of Texas. The more than 40 chemical and polymer products produced are supplied to industrial customers for use in the manufacture of hundreds of consumer items that are essential to the quality of life for millions of people worldwide. Some of these products include automobile interiors, steering wheels, paints, tires, upholstery, food preservatives, adhesives, furniture, cosmetics and personal care items, pharmaceutical products, toys, soft drink bottles, printing inks, latex paint, fiberglass, toothbrushes, fabric and many other consumer and industrial products. The Texas site has more than 200 buildings and 6,000 acres of land in Longview and approximately 300 acres at its underground storage facility near Tyler, Texas, where more than 250 million gallons of propane, ethane and chemical intermediates can be safely stored. Virtually all products are manufactured from two primary raw materials--propane and ethane, referred to as feedstock—using approximately 55,000 barrels per day. To obtain this large quantity of raw material, the company is connected to its principal supply sources by seven pipelines, some of which are 200 miles long and extend to the Texas Gulf Coast. Eastman's production units are high-volume, continuous processes which operate 24 hours a day, seven days a week. On average, the company ships nearly ten million pounds per day of chemical product to its customers worldwide. Commitment to HSES In 2008, Texas Operations' continual commitment to Responsible Care® via a variety of health, safety, environmental, and security programs was recognized with the following: 

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American Chemistry Council’s (ACC’s) 2008 Responsible Care® Energy Efficiency Award for implementing energy saving initiatives and achieving significant carbon dioxide emission reductions in 2007. The following two projects were recognized: ‘Process and Energy Optimization at EastmanTexas Operations-Year 3 and ‘Reduce Steam Usage at Incinerator American Chemistry Council’s 2008 Certificate of Achievement for Zero Days Away from Work during 2007 Sustained Excellence in Caring for Texas from the Texas Chemical Council (TCC) in the large member company category which recognizes sustained efforts in the areas of Environmental, Emergency Response, and Community Outreach

Texas Operations continues to maintain OSHA VPP (Voluntary Protection Program) Star status which recognizes the site's on-going efforts in employee health and safety. The site has been a member of this voluntary program since 1994. Citizenship Texas Operations hosts and facilitates a 21-member Community Advisory Board (CAB) which also includes membership from our three on-site tenant companies (Air Liquide; Flint Hills Resources; and Westlake Chemical), as well as a variety of interested citizens ranging from neighbors of the plant to students and conservationists. The CAB has been active since 1988. Texas Operations employees participate extensively in civic, community and professional organizations throughout East Texas. The men and women of Eastman proudly assume the responsibility of caring citizens and will continue to devote their time, talent and energy as volunteers and civic leaders for the betterment of their community.

Environmental Performance Eastman tracks a variety of environmental measures and establishes goals for those we want or need to improve. Responsible Care® emphasizes continual improvement in Health, Safety, Environmental, and Security performance. In that spirit, Eastman committed to a review process of our environmental performance measures and goals in 2006. Through that process, we have expanded the environmental performance metrics that we track and strengthened the goals that we set to document improvement. Of special interest is the addition of a greenhouse gas intensity reduction goal. This goal joins our energy efficiency goal in targeting yearly improvements until 2012. Hazardous waste, now reported as a ratio to product sold, has a new 5-year goal as well as reportable releases and TRI emissions. For the first time in 2007, we began reporting volatile organic compound, nitrogen oxide, and sulfur dioxide emissions and comparing with either 5-year or 10-year goals. Hazardous Waste Indexed to Production - (without biosolids) Eastman's goal is to reduce hazardous waste per unit of production by 10% from 2005 by 2010. From 2005 until 2008, Eastman has reduced hazardous waste per unit of production by 31%.

Reportable Releases - (Releases reported by number) Reportable releases have been reduced by about 60% since 2000. A goal of 25% reduction from a 2005 baseline by 2010 has been established. The number of releases for 2008 was 39. Eastman continues to progress towards the new goal by reducing reportable releases by 17% since 2005.

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Toxic Release Inventory (TRI) Releases - (Million Pounds) Toxic Release Inventory (TRI) releases have been tracked and reported by the Environmental Protection Agency (EPA) since the late 1980’s. Since 1989, Eastman’s reportable TRI emissions have declined by almost 86%. Eastman has established a goal of reducing TRI emissions by 25% by the year 2010 using 2005 as a baseline year. Eastman achieved a 16% reduction from 2005 to 2007.

Energy Efficiency - (MMBTU's/1,000 Kg Sold) Eastman has a long history of working to improve energy efficiency. An original energy usage goal was established in the mid 1990’s. Eastman met that goal and has established a new one—2% improvement per year until 2012, starting with 2001. The energy needed to produce 1,000 kg of product sold was reduced by 21% from 2001 to 2008.

Greenhouse Gas Intensity - (Equivalent Pounds of CO2 Emissions Per Pound of Product Sold) Eastman has committed to a 2% reduction per year starting with 2001. In 2008, we achieved a 17% reduction in greenhouse gas intensity using 2001 as a baseline year. 1993-2000: U.S. sites only, increasing over time 1993-1997: Energy-related CO2 only 1998-2006: Process and energy related CO2 2001-2006: Includes global sites All years: Includes CO2 emissions from generators for purchased electricity

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Environmental Expenditures - (Million Dollars) Eastman's environmental expenditures are tracked on a global basis. These include operations, construction and development costs. The amount spent for 2008 was $218 million.

Volatile Organic Compounds (VOC) – (Tons) The reduction of VOC emissions is a new goal for Eastman reflecting our desire to reduce air emissions from facilities around the world. The goal was set to achieve a 15% reduction from a 2005 baseline by 2010. In 2007, we reported almost a 19% reduction in VOC emissions compared to 2005.

Nitrogen Oxides (NOx) – (Tons) In 2006, Eastman set a 10-year goal to reduce nitrogen oxides worldwide by 20% by 2015. In 2007, global NOx emissions were 7% less than 2005 levels.

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Sulfur Dioxide (SO2) – (Tons) Eastman also established a new 10-year SO2 goal of making a 40% reduction in emissions by 2015. Eastman’s 2007 SO2 emissions were almost 3% less than the 2005 baseline emissions.

Safety Performance Eastman tracks a variety of safety measures and establishes goals for those we want or need to improve. Global OSHA Recordable Rates - (Annual Incidents/100 Employees Involving Treatment Beyond First Aid) An important measure of employee safety is the OSHA Recordable injury rate. An OSHA recordable injury is one that involves treatment beyond first aid. A cut requiring stitches is a good example. Our actual rate for 2008 was .75 which met our goal. While no injury is acceptable, our goal for 2009 is to have no more than 0.75 incidents per 100 employees annually. Note: This measure reflects Eastman's global performance. OSHA Recordable Rates published by ACC in Responsible Care® reporting include only U.S. sites.

Global Days Away From Work – (Annual Incidents/100 Employees Where Work is Missed) A Day Away From Work injury is one that is serious enough to cause an employee to lose time from work. In 2008, our rate was .13 which was below our goal that we set for the year. Our goal for 2009 is to have no more than 0.15 Days Away From Work Injuries per 100 employees annually. Note: This measure reflects Eastman's global performance. OSHA Recordable Rates published by ACC in Responsible Care® reporting include only U.S. sites.

Global Process Safety Incidents - (*Data from 2000 and beyond include global sites.) This measure shows the number of process safety incidents globally that match specific criteria established by the American Chemistry Council. Note: This measure reflects Eastman's global performance. Process Safety Incidents published by ACC in Responsible Care® reporting include only U.S. sites.

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Distribution Incidents - (Per 1,000 Shipments) Eastman tracks the rate of distribution incidents involving the shipment of our products that are considered hazardous by the U.S. Department of Transportation.

Awards & Recognition Eastman is committed to being a premier chemical company, by using best practices in all areas. We have been honored to receive many awards from external sources. Newsweek's Top 100 Green Rankings - 2009 Newsweek Magazine Eastman has been named among the top 100 greenest companies in America by Newsweek magazine. The Newsweek Green Rankings is the first-ever report based on companies' actual environmental performance, policies and reputation.

Presidential Green Chemistry Challenge Award - 2009 United States Environmental Protection Agency Eastman has been recognized with won one of the U.S. government’s top environmental awards for its breakthrough Eastman™ green biocatalytic process.

Global Green 100 in IT Energy Efficiency -2009 The Uptime Institute This achievement highlights significant energy efficiency achievements of global corporations operating major data centers. Chosen companies have demonstrated board-level policy and governance commitment to increasing energy efficiency and reducing the carbon footprint of their enterprise IT and data center operations.

“Certified Forest Steward” by the State of Texas - 2009 USDA Forest Service and State Foresters Eastman's Texas Operations has been recognized for implementation of recommended management practices in their Forest Stewardship Plan to improve and maintain the health of the 40-acre Eastman Demonstration Forest and surrounding Nature Center. Additionally, the Texas Operations site has been recognized as a “Certified Tree Farm” by the American Tree Farm System.

Shining Star Award - 2009 TN Governor’s Council on Physical Fitness and Health Eastman's Tennessee Operations has earned special recognition for its commitment to health. Tennessee Governor Phil Bredesen presented Eastman with the award for its efforts in the promotion of healthy lifestyles in the workplace. Best Places to Work in Information Technology - 2009 Computerworld and International Data Group Eastman has been selected as one of the top workplaces for information technology (IT) professionals for 2009. Eastman was ranked number 55 out of 100 on this year’s list.

Also, visit our Awards & Recognition section on www.eastman.com/sustainability.