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Governance

_{Note 1: Our sustainability organization is responsible for developing our corporate sustainability strategy and working alongside our businesses and functions to execute that strategy. The organization is led by the vice president of global sustainability, and collaborates with teams across PPG to drive our environmental, social and governance (ESG) efforts, including assessing and managing climate-related risks and opportunities.}

_{PPG's programs, initiatives and activities in the areas of environment, health, safety, technology and sustainability are overseen by the Sustainability and Innovation Committee of the Board, with support from other Board-level committees depending on the issues and risks involved. The Board engages with management on ESG strategy, risks and opportunities, and has oversight of the tracking of our sustainability progress.}

Strategy

_{Note 2: Our paints, coatings and specialty materials are key enablers of the transition to a low-carbon economy. We sell a wide range of products in varied markets around the world, and the company is well positioned to take advantage of climate-related opportunities. These factors help make our business resilient, and ensure that we will be able to respond appropriately to any climate-related occurrences.}

_{We have analyzed a range of climate scenarios and have incorporated important climate-related risks and opportunities into our growth strategy. See more detail on our scenario analysis exercise in the climate-related risks and opportunities section.}

Risk Management

_{Note 3: PPG's physical risk assessment process uses global climate models to assess the relative risk to our facilities from six climate change stressors. The assessment identifies the most at risk PPG sites for more detailed analysis and resiliency planning. Transition risks from climate change, including market impacts, are considered at the business unit level. Each of our businesses conduct a climate risk assessment to define priority risks and opportunities. This work is being integrated into the overall business strategy process.}

_{Climate-related risks are managed within the respective business or function based on the outcomes of the ERM process, the results of our physical risk assessment and input from our Sustainability function. This process is overseen by the Corporate Sustainability Committee. The vice president, global sustainability serves as the risk owner for ESG within the Enterprise Risk Management (ERM) process and is responsible for working across the organization to facilitate and drive action on many of the climate-related risks that we have identified.}

_{Our annual ERM process separately identifies business and enterprise risks that could be related to climate change. The Enterprise Risk Committee (ERC) meets three times per year, and considers climate-related risk as one of many ESG-related risks. Through the standard ERM process, the ERC identifies climate-related risks, determines the company’s priorities for addressing those risks, and monitors progress of addressing these risks over time. We recognize that climate-related risks are also drivers of other risks, and are working to improve our consideration of these interconnected risks in our ERM processes.}

_{The vice president, global sustainability, is accountable for reviewing the outcomes of the ERM process with functional teams and business leadership. Specific key performance indicators are provided to businesses and functions to mitigate greenhouse gas emissions from operations and from product solutions at customer sites.}

Metrics and Targets

_{Note 4: Our 2030 targets continue to guide our work. By 2030, we aim to achieve a 50% reduction in GHG emissions from our own operations (scope 1 and 2 emissions), and a 30% reduction in GHG emissions in our value chain (scope 3 emissions).}

_{We have set a goal for 50% of sales to come from sustainably advantaged products by 2030. This target represents our focus on capturing market opportunities driven by the transition to a low carbon economy. To increase sales from sustainably advantaged products, our customer sustainability business partners work directly with customers to identify novel uses for existing PPG products and needs for new innovations.}

_{These targets and our performance to date are described in the 2023 Progress and Highlights section.}

Examples of climate-related risks and associated PPG strategies

Examples of climate-related opportunities and associated PPG strategies