Environment

Our Group believes that contributing to the reduction of global environmental impacts--through the effective use of resources such as water, energy, and raw materials, and the prevention of environmental pollution--is essential for sustainable business operations. With this belief, we will advance various initiatives and proactively leverage innovative technologies to build sustainable business operations.

Resources and Environment


Group policy

Our business and communities depend on the sustainable consumption of natural resources and protection of the environment and biodiversity. We will work to improve the life cycle and circularity impacts of our products and supply chain.

Risks & opportunities

The key risks and opportunities associated with resources and environment are summarized in the table of materiality page (Materiality, Risk, Opportunity). While these are largely common across the consolidated group, though individual PCGs do have different focus areas and action priorities that reflect the local maturity of their improvement journeys.

Improvement & performance(2025)

In 2025, total waste generated decreased 0.9% to 15.9 kg/t, while the hazardous waste proportion increased 1.5 percentage points (pp) to 41.8%. Waste recovered (recycled, reused) decreased by 5.4 pp to 40.3% of total waste generated. The changes are influenced by a range of factors, including inclusion of recent acquisitions, offset by improved efficiencies through implementation of waste recovery improvement initiatives, and improvements in data consolidation and reporting.
For water performance, total water withdrawal increased by 18.1% to 0.64 kL/t, while water consumed increased 21.3% to 0.58 kL/t. For 2025, 53% of total water consumption was from high stress regions, a decrease of 3.4 pp from the previous year. This high stress metric was established to improve understanding of water consumption in regions of high or extremely high water stress. We continue work across the PCGs to develop insights for the priority areas for improvement.

Performance

Performance and changes versus the prior year for individual PCGs are summarized in the following table, together with the key improvement priorities for the year.

Metrics and results related to Resources and Environment (2025)

* Figures in brackets indicate year-on-year change

PCG Waste Water Improvement Priorities
Total Waste Generated
(kg/t)
Hazardous Waste Generated
(% of total)
Waste Recovered
(% of total)
Total Water Withdrawn
(kL/t)
Total Water Consumed
(kL/t)
Water Consumed in High Stress Regions
(% of total)
NIPSEA Group 10.4
(-14.0%)
53.9%
(+1.1 pp)
40.3%
(+3.0 pp)
0.46
(-6.6%)
0.44
(-8.3%)
60.9%
(-2.1 pp)
In NIPSEA China, water efficiency was improved through reclaimed water reuse, high-efficiency equipment, and water balance assessments. Wastewater management was strengthened through enhanced monitoring systems, compliance improvements, and targeted rectification actions.
DuluxGroup 31.4
(-4.4%)
25.0%
(+0.9 pp)
48.5%
(-4.0 pp)
0.54
(-5.7%)
0.34
(-9.8%)
31.9%
(+5.2 pp)
DGL (Pacific): Continued focus on reducing site waste sent to landfill through operational efficiencies, improved segregation and increased recycling, has delivered reductions in waste generation and landfill aligned to the Group’s long-term landfill-reduction target. In addition, continued transition toward lower-VOC and water-based product formulations, supported by product stewardship and sustainable product design, is reducing VOC impacts while maintaining performance.

JUB: Project for the reuse of wash water in the production process of dispersion-based products.
Japan Group 50.9
(-4.2%)
11%
(0 pp)
81.5%
(-1.1 pp)
1.54
(-5.4%)
0.58
(+1.5%)
0%
(0 pp)
Reduction of defective products.
Dunn-Edwards 41.0
(+12.6%)*
8.1%
(+5.2 pp)
12.6%
(-2.7 pp)
0.91
(+6.5%)
0.86
(+0.3%)
61.3%
(+61.3 pp)
AOC 50.9
(n/a)
47.5%
(n/a)
3.5%
(n/a)
3.55
(n/a)
3.55
(n/a)
44%
(n/a)
Tennessee Colorants reduced their hazardous waste by 45% from 2024 to 2025 due to the Styrene rinsate project. No water withdrawn from high stress regions in North America.
Total 15.9
(-0.9%)
41.8%
(+1.5 pp)
40.3%
(-5.4 pp)
0.64
(+18.1%)
0.58
(+21.3%)
53%
(-3.4 pp)

* Store waste is now included in reporting scope, which comprises approximately 70–80% of total waste

For details on Resources and Environment, see the ESG Data page.

Environment initiatives

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