To Our Stakeholders

Michael McGarry

PPG delivered a solid performance in 2017 both financially and strategically. We continued to enhance and strengthen our sustainable operations and bring life to our purpose and promise: We protect and beautify the world.

As evidence, we recognized more than 200 projects through our internal sustainability awards initiative. We also recognized programs that improved ergonomics through our separate Ergo Cup Awards. We estimate that projects honored by both internal awards programs saved more than $17 million in 2017 and helped us reduce our energy consumption, waste, water use, emissions and injury rate.

Highlights of our 2017 sustainability performance include:

  • 0fatalities and a 6.5 percent reduction in our injury and illness rate
  • 32%of sales from sustainable-advantaged products
  • 25%reduction in our greenhouse gas emissions intensity
  • 22%decline in our energy intensity
  • 4%reduction in our total waste disposal intensity
  • 75%of our facilities meeting the requirements of the PPG Community Engagement Framework
  • $10.5MMin community investments

Our commitment to innovation is intertwined with growth and sustainability. It covers a wide range of products and services that provide environmental, safety and other benefits to our customers. Our products contribute to lighter, more fuel-efficient vehicles, airplanes and ships, and they help our customers reduce their energy consumption, conserve water and reduce waste. Our technologies are helping manufacturers to protect their assets and products from corrosion, and we are sharing those technologies across our businesses. Examples include PPG’s award-winning waterborne technologies, our compact painting process for vehicles and new coatings for lithium batteries needed for electric cars.

As our portfolio continues to evolve, we are evaluating our business and striving to achieve even more. In 2018, we launched new, aggressive sustainability goals that will further guide our company in increasing the use of sustainable business practices.

At PPG, sustainability goes beyond our products and extends to our communities. Through our COLORFUL COMMUNITIES™ initiative and other community engagement programs, we invested more than $10.5 million in 2017, supporting hundreds of organizations across 29 countries. Committed volunteers contributed their time and PPG paint products to help transform community assets—from painting classrooms to bringing color to a maternity ward and redesigning a playground.

One of our greatest strengths is the diversity of our people, who represent wide-ranging nationalities, cultures, languages, religions, ethnicities, lifestyles and professional and educational backgrounds. Our ongoing diversity and inclusion efforts begin at the highest levels of our company. We are proud of the diversity represented in our 11-member board of directors, which plays an instrumental role in our focus, strategic direction and path forward.

In 2017, we achieved a 100-percent score on the Human Rights Campaign Foundation’s Corporate Equality Index and were recognized by Forbes Magazine on its list of “World’s Best Employers.”

We firmly believe that our company and communities benefit when we provide equal opportunities for diverse suppliers to compete for our business. Through a variety of supplier diversity programs, we sought out small businesses and businesses owned by veterans, minorities and women that provide quality products and services at competitive prices during 2017.

We have made significant progress in sustainability, but we remain focused on continuous improvement. I encourage you to learn more by reading our full 2017 Sustainability Report and our 2017 Community Engagement Report.

Michael H. McGarry
Chairman and Chief Executive Officer