Axalta’s sustainability program is directly shaped by our key stakeholders and aligned with their priorities. The success of our sustainability efforts and our business depends on how well we meet the needs of our stakeholders.

Stakeholder Engagement

Directly engaging with stakeholders allows us to hear their perspectives and understand their needs and priorities so we can factor those into our plans as appropriate. Axalta actively engages with key stakeholders—customers, employees, investors, suppliers, and communities—on a regular basis through our day-to-day business activities. Because these stakeholder groups have an interest in a variety of environmental, social, and governance topics, we consider them the key stakeholders for our sustainability program and performance. We also periodically engage with other stakeholders such as the scientific and technology community, industry associations, legislators and regulators, and NGOs and civil society to advance our business priorities.

Throughout the development of this report, Axalta engaged with a number of stakeholders to discuss the topics covered in this report, including investors, customers, community partners, and employees. We also reviewed this report with the Environmental, Health, Safety and Sustainability Committee of the Board of Directors and their feedback has been incorporated.

The table below lists our key sustainability stakeholders, how we engage with them, and selected topics of interest that they’ve raised with us.

Stakeholder Group

How We Engage

Topics of Interest

Customers

  • Customer learning and development centers
  • Sales meetings
  • R&D and technology partnerships
  • Sustainability discussions
  • Sustainability attributes of products and services
  • Product and service quality
  • Product development and innovation
  • Responsible sourcing and human rights
  • On-site service and support

Employees

  • Town hall meetings
  • Employee intranet and online social community
  • Employee events
  • Training and development sessions
  • Career development
  • Health and safety
  • Diversity and inclusion
  • Business progress and strategic planning
  • Job satisfaction

Investors

  • Annual meeting
  • Quarterly and annual reports and associated investor calls
  • Dialogues on ESG topics
  • Financial performance
  • Business growth
  • Ethics and integrity
  • Human rights
  • ESG performance

Suppliers

  • Supplier Code of Conduct
  • Supplier screening and contractor process
  • Supplier relationship management meetings
  • Supplier of the Year evaluation
  • Supplier development
  • Responsible sourcing
  • Environmental sustainability
  • Quality expectations

Communities

  • Community meetings
  • Axalta Bright Futures programming
  • Government affairs efforts
  • Safe operations
  • Economic benefits
  • Environmental stewardship and STEM education initiatives

Materiality Assessment

In early 2018, Axalta conducted a robust sustainability materiality assessment to determine the key issues for our company and guide our sustainability strategy, reporting, and goal setting. The assessment process included reviewing input sources such as peer benchmarking, industry guidelines, topics identified in sustainability frameworks such as the Global Reporting Initiative standards and Sustainability Accounting Standards Board guidelines, and investor and sustainability analyst survey topics. We then conducted 30 interviews with internal and external stakeholders to identify the key focus areas for Axalta. This process and outcomes are outlined in more detail in our previous 2016-2017 Sustainability Report.

For this 2018-2019 Sustainability Report, we reviewed the results from our prior materiality assessment and compared them with updated peer and customer benchmarking, topics raised by stakeholders such as customers and investors since the last assessment, and any changes to our company business priorities and strategic initiatives. Through this refresh process, we identified one new material issue for this report: occupational health and safety. The definition and boundaries for all of the identified key issues are shown below.

Key Sustainability Issue

Definition

Boundary

Air quality

Managing emissions for the following pollutants from Axalta’s operations and products: nitrogen oxides (NOx), sulfur oxides (SOx), volatile organic compounds (VOCs), particulate matter (PM), and hazardous air pollutants (HAPs).

Internal operations, our products and product application technologies

Attracting and retaining employees

Recruiting and retaining a skilled and talented workforce, including risks surrounding evolving workforce demographics and workforce planning.

Internal operations

Compliance

Complying with all applicable regulations on environmental performance, safety, ethics, labor practices, and human rights in a timely and cost-effective manner.

Internal operations

Economic performance

Maintaining strong financial performance to support business growth.

Internal operations

Emerging markets

Entering emerging markets responsibly while gaining acceptance by local customers.

Internal operations

Ethics and integrity

Preventing unethical or illegal behavior involving a company employee or agent in a position of power, and ensuring an ethical approach to how we work with suppliers, customers, regulators, and other business partners.

Internal operations, supply chain

Human rights

Ensuring company facilities and suppliers are upholding human rights, such as no forced or child labor, no extensive working hours, and providing safe working conditions.

Internal operations, supply chain

Occupational health and safety

Protecting employees, contractors, and visitors from occupational injuries and illnesses through design of safe operations and work practices, training programs, safety management systems, and culture.

Internal operations

Product and service impact on customer operations and performance

Enabling our customers to improve their operational eco-efficiency or the quality and productivity of their processes and products by using our products and services.

Internal operations, customer operations

Safety and environmental stewardship of chemicals

Working with customers, carriers, suppliers, distributors, and contractors to foster the safe and secure use, transport, and disposal of chemicals. Providing hazard and risk information that can be accessed and applied in their operations and products.

Internal operations, supply chain, our products and services

Technology and innovation

Developing new products to meet customer demands and expectations; innovating to improve business growth.

Internal operations, our products and services