PPG ranked as leading paints and coatings manufacturer in 2024 Corporate Knights Clean200 list

Rhea-AI Summary

PPG (NYSE:PPG) secures top spot on the 2024 Corporate Knights Clean200 list for sustainable revenue, aiming for 50% sales from sustainable products by 2030. The company reported 19% of sales from sustainable sources in 2022 and ranked 161st globally. PPG focuses on product sustainability, energy efficiency, emissions reductions, and innovation to meet its targets.

Insights

Market Research Analyst

PPG's inclusion in the Corporate Knights Clean200 list reflects a growing trend among investors and consumers who prioritize sustainability in their decision-making. As the leading paints, coatings and specialty materials manufacturer on this list, PPG demonstrates a commitment to sustainable practices, which can be a significant competitive advantage. Their current performance, with 19% of sales from sustainably certified products, indicates a positive trajectory towards their 2030 goal of 50%. This progress can attract environmentally conscious investors and potentially boost the company's market reputation.

Additionally, the development of innovative products such as the PPG SIGMAGLIDE® 2390 and PPG INNOVEL® PRO showcases the company's ability to respond to market demands for eco-friendly solutions. The impact of such products on reducing emissions and enhancing energy efficiency can contribute to customer retention and acquisition, as well as possible regulatory advantages as environmental policies become stricter. The focus on sustainability can also lead to operational cost savings in the long term, as processes become more efficient and waste is reduced.

Environmental Sustainability Expert

PPG's methodology for assessing product sustainability, which includes energy efficiency, emissions reductions, toxicity reductions, resource efficiency and product lifetime, aligns with global sustainability standards and can serve as a benchmark for the industry. The launch of products such as PPG CORASEAL™ 4-Wet Sealer, which reduces carbon dioxide generation in the automotive manufacturing process, exemplifies the company's integration of sustainability into the innovation pipeline.

By focusing on the environmental impact of their products, PPG not only positions itself as a leader in sustainable manufacturing but also contributes to the broader goal of reducing the carbon footprint across industries. Their approach to R&D, prioritizing sustainability, can lead to long-term environmental benefits and align with international goals such as the Paris Agreement. The recognition by Corporate Knights can also serve as third-party validation of PPG's sustainability claims, which is crucial for maintaining trust with stakeholders.

Financial Analyst

The financial implications of PPG's sustainability initiatives are multifaceted. On one hand, the investment in sustainable product development and the associated R&D costs could present a short-term financial burden. However, the long-term benefits, including potential market share gains, premium pricing opportunities for eco-friendly products and reduced regulatory risks, are likely to offset these initial costs.

The company's performance, with a substantial portion of sales from sustainably advantaged products, suggests a strategic alignment with consumer trends and regulatory frameworks that favor sustainability. This could lead to a more resilient business model in the face of environmental regulations. Furthermore, PPG's commitment to sustainability could enhance its appeal to impact investors and ESG-focused funds, potentially leading to a more diversified and stable investor base.

PITTSBURGH--(BUSINESS WIRE)-- PPG (NYSE:PPG) today announced that it was named to the 2024 Corporate Knights Clean200 list as the leading paints, coatings and specialty materials manufacturer. The company earned the top spot by having a strong percent of 2022 sales from sustainable products, as defined by Corporate Knights.

The Clean200 list ranks the 200 publicly traded companies that have the most sustainable total revenue, earning a minimum of 10% from sustainable sources. Among approximately 8,000 global firms that were evaluated, PPG ranked No. 161 overall on the list in sustainable revenue, reporting 19% of sales from products with third party sustainability certifications in 2022.

PPG has a 2030 target to achieve 50% of sales from sustainably advantaged products, reaching 39% by the end of 2022. A critical component to reaching the goal is the company’s methodology for assessing the sustainable attributes of its products, evaluating based on energy efficiency, emissions reductions, toxicity reductions, resource efficiency and a paint or coating’s useful lifetime. The company also ensures sustainability is a core component of its research and development innovation pipeline.

“Sustainability is at the forefront of our product development and innovation strategy,” said Diane Kappas, PPG vice president, global sustainability. “We are committed to minimizing our own environmental footprint as well as our customers’ and finding solutions to increase the useful lifetime of their most valuable assets. This recognition reinforces our commitment to meeting our 2030 targets and driving toward a more sustainable future.”

Since 2022, PPG has launched several sustainably advantaged products, including:

• PPG SIGMAGLIDE^® 2390, a biocide-free antifouling paint that uses PPG HYDROSET TECHNOLOGY™ to create a friction-free surface when it is immersed in water that marine organisms cannot adhere to. This reduces drag and achieves power savings of up to 20%, with a 35% reduction in carbon dioxide emissions compared to traditional antifouling coatings.
• PPG INNOVEL^® PRO, a non-bisphenol/non-BPA coating that provides improved application properties for recyclable aluminum beverage cans. The coatings ensure minimal spoilage, protecting both the can and beverage integrity.
• PPG CORASEAL™ 4-Wet Sealer, which allows for streamlined application by eliminating a sealer oven and faster curing in the automotive manufacturing process, reducing carbon dioxide generation by up to 6 kg per vehicle.
• PPG SEIGNEURIE™ EVOLUTEX™ Bas Carbone, an architectural coating launched in France that uses a bio-based binder and has a 20% lower carbon footprint than previous coatings.

To learn more about PPG’s sustainably advantaged product innovations and recent progress, visit ppg.com/sustainability.

PPG: WE PROTECT AND BEAUTIFY THE WORLD®

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty materials that our customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $18.2 billion in 2023. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

The PPG Logo, We protect and beautify the world and Innovel are registered trademarks and Coraseal is a trademark of PPG Industries Ohio, Inc. Sigmaglide is a registered trademark of PPG Coatings Nederland B.V. Seigneurie and Evolutex are trademarks of PPG-AC France.

CATEGORY Sustainability

View source version on businesswire.com: https://www.businesswire.com/news/home/20240221756497/en/

PPG Media Contacts:

Greta Edgar Borza

Corporate Communications

+1 724 316 7552

edgar@ppg.com

Mark Silvey

Corporate Communications

+1 412 759 1735

silvey@ppg.com

www.ppg.com

Source: PPG

FAQ

What list was PPG named to in the press release?

PPG was named to the 2024 Corporate Knights Clean200 list.

What percentage of sales came from sustainable products in 2022 for PPG?

PPG reported 19% of sales from sustainable products in 2022.

What is PPG's target for sales from sustainably advantaged products by 2030?

PPG aims to achieve 50% of sales from sustainably advantaged products by 2030.

What are some examples of sustainably advantaged products launched by PPG since 2022?

Examples include PPG SIGMAGLIDE® 2390, PPG INNOVEL® PRO, PPG CORASEAL™ 4-Wet Sealer, and PPG SEIGNEURIE™ EVOLUTEX™ Bas Carbone.

What is the focus of PPG's sustainability strategy?

PPG's sustainability strategy focuses on product development, energy efficiency, emissions reductions, and innovation.