Disclosure 102-1 - 3

Disclosure 102-1: Name of the organization
Sika AG

Disclosure 102-2: Activities, brands, products, and services

• The strong Sika brand is recognized for its sustainable solution portfolio
• Sika screens the product portfolio for sustainability using life-cycle data
• Dynamic growth through fragmented markets, megatrends, and an attractive business model
  

Description general activities: Sika is a specialty chemicals company with a leading position in the development and production of
systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and the automotive industry.
The Sika brand: The Sika umbrella brand, and some 930 Sika product trademarks, such as Sika® ViscoCrete®, SikaBond® or Sikaflex®, sharpen the company’s competitive edge. Hence the crucial role of trademark protection as a management task, performed both globally at Group level, and locally at national level. In total, Sika held 11,383 trademark registrations in 165 countries at the end of 2018. Sika AG continuously monitors its
trademarks and takes appropriate legal action in cases of infringement.

• Sika MaxTack®: Power grab adhesive
• Sikaflex®: Polyurethane-based sealants for a wide range of sealing applications
• Sikasil®: Silicone sealants for all types of applications
• Sika Boom®: Professional polyurethane-foam-range for sealing, bonding, and damping
• SikaBond®: Bonding solutions for all your needs
• Sikalastic®: Liquid applied waterproofing systems
• Sikagard®: Professional solutions for cleaning and protection
• Sika AnchorFix®: Sika solutions for all types of anchoring applications
• Sikadur®: Our strong and long lasting epoxy-based adhesives
• Sikafloor®: Strength and beauty – combined in our Sikafloor products
• Sika® ViscoCrete®: Sika admixtures that bring innovative options to concrete mix design
• Sikafloor®: Flooring systems which contribute to higher process reliability and effectiveness
• Sarnafil® and Sikaplan®: Long lasting thermoplastic roofing membranes and solutions

SUSTAINABLE SOLUTIONS
Sika aims to be an industry leader with a portfolio of sustainable products, systems, and services. The company makes an essential contribution to customers in construction and other industries to meet their sustainability targets, such as energy and material efficient vehicles and buildings. Sustainability is an important component of the company’s capacity for innovation and an important driver of product development. Sika strives to extend the service life of buildings and industrial applications, to reduce maintenance effort, to improve energy and material efficiency, and to further enhance user-friendliness and health and safety profiles. One of the company’s main objectives is to reduce resource consumption, energy consumption, and the associated CO2 emissions along the value chain, both internally, and for partners and customers who place their trust in Sika products and solutions.

The Group's goals are: TARGET 1: PRODUCT CREATION PROCESS
All new product developments are reviewed against sustainability criteria using a standardized methodology, including a documented sustainability profile and an appropriate improvement plan where necessary.
PERFORMANCE: A uniform sustainability assessment process (including guidelines and tools) addresses relevant sustainability indicators and forms part of the official Sika product development process. The objective of the sustainability assessment process, which is established throughout the company, is to evaluate relevant sustainability aspects of a new development over its entire life cycle, compared with the company’s own or competitive solutions.  Economic, environmental and social aspects are assessed and serve as the basis for understanding risks and opportunities, and therefore deciding what measures are feasible to improve the sustainability profile of a development.   

In the year under review, the sustainability assessment process was used to evaluate 108 new local and global product developments. Of these, 15% were identified to offer an improvement over the existing product and are therefore of importance for the company’s sustainability. Some examples of  sustainable innovations are described below.

New process for high-quality recycling concrete: A new process for 100% recycling of concrete/mortar demolition waste allows to significantly reduce the embodied footprint of buildings and structures. Sika has developed a new patented recycling process which allows the extraction of secondary raw  material from old concrete at the quality level of primary material which enables the production of high quality recycling concrete by using 100% secondary aggregates, which saves limited natural resources such as sand and gravel.
Sika’s novel recycling technology exploits synergy from a chemo-mechanical treatment of concrete demolition waste. The new process focuses on  sequestrating about 50 kg of CO2 per ton of crushed concrete demolition waste. It involves a superficial carbonation of the cementitious matrix which is softened and removed upon attrition. The freshly exposed surfaces are able to further carbonate until aggregates which are free from cementitious material are obtained.

In this way, concrete/mortar demolition waste can be separated into “secondary aggregates” for recycling at a quality level of primary
material and a powdery by-product utilizable as secondary raw materials in a broad application spectrum, such as partly replacing primary cement
raw meal for cement clinker production, or as an inert filler for cement plants and building materials in general. Once implemented at an
industrial scale, this new process can also significantly help decarbonize the cementitious sector as well.

New i-Cure technology based polyurethane waterproof coating system for balcony range:
Resin flooring developments continue to focus on high performance products that meet sustainable building requirements. To complement the existing  balcony range, a new moisture triggered polyurethane waterproof coating system was developed, consisting of Sika® Concrete Primer LO, Sikafloor®-425 (waterproofing layer) and Sikafloor®-420 (protection layer). All system components are i-Cure technology based, a novel latent hardener that prevents gassing in the finished film, which can often be seen in conventional polyurethanes when applied in harsh environments. The new technology allows the final products to be formulated with higher solid content, reduced VOC’s (volatile organic compounds), lower odor, lower hazard, and most importantly, reduced emissions. The system is protected by the water-based polyurethane Sikafloor®-418W top sealer, which allows the design of a new generation
of best-in-class highly durable and aesthetically attractive balcony system buildups. 

Innovative injection material that sets a new standard in post applied waterproofing applications: Conventional acrylic injections are supplied as three part systems including liquid resin, accelerator and hardener, which have to be packed and kept separately to prevent preliminary curing. The hardener requires special handling as it is classified as dangerous goods.
On construction sites, the components have to be applied according to a comparatively complex procedure that includes dosing of the accelerator, mixing with water, preparation of premixes and finally, their homogenization.
Sika Injection-310 is based on Sika proprietary technology and is regarded as game changing material, as it overcomes the aforementioned limitations. It combines all components in only one powder that has tobe simply mixed with water in order to obtain the injection solution. As the product comprises all components for a reliable cure in one part, the risk of injecting wrongly mixed and unreactive chemicals into soil and ground is eliminated, which  contributes to an efficient consumption of waterproofing material, and reduces the release of chemicals to the environment. Due to its product design, Sika® Injection-310 also allows for improvements in the supply chain and environmental footprint. As the material is not labelled as dangerous goods, no precautionary measures have to be taken for shipping and no limitations concerning transportation apply. In contrast to the conventional acrylic injections, Sika Injection-310 is provided as bagged goods that resultsresults in an 80% reduction of plastic packaging material and packaging waste reduction on site to the same extend.
New Solution for sealing ventilation ducts: Buildings equipped with tight and well-functioning ventilation systems save energy, help avoid spreading disturbing odors, and ensure a good indoor climate, which is important for the occupant’s health. Sikaflex 404 Inliner, an innovative new solution, has been developed in collaboration with an external partner to help reduce energy losses by sealing and insulating ducts and leaking ventilation channels. A  flexible, fire protected, and air tight composite-inliner is cured on-site in the existing old ventilation, adjusting to all surface irregularities, offsets, and
narrowings. The on-site curing allows the inliner to follow the shape of the channels and seal leaking ventilations regardless of shape, diameter, and ventilation material, and without the inhabitant having to leave the residence. Sealed, air tight channels permit significant energy savings, safety improvements, and cost savings, which ensures a pay back of the installation costs in less than ten years.

TARGET 2: LOCAL SUSTAINABILITY ROADMAPS
The major Sika national subsidiaries prepare a sustainability action plan and implement all key projects planned in this context. The plan is aligned with local trends and market requirements, and requirements and encompasses the key projects and topics that are geared towards the global initiative.

PERFORMANCE: All of the larger countries in North America, Southern Europe, Northern Europe, Central Europe, and Eastern Europe further developed product sustainability road maps in the year under review. As a result of the regional Sustainability Academy programs in 2017 for Asia/Pacific and Latin America, a priority in the year under review was to extend the scope of the road map activities into the Asia/Pacific and Latin America region. In this regard, the Sustainability Academy programs played an important role in involving further national subsidiaries and increasing the future number of projects and activities to now 39 countries.

ENVIRONMENTAL PRODUCT DECLARATION
Customers, as well as building and construction standards, increasingly demand that companies declare the environmental performance or environmental impact of its products in a transparent manner. This calls for sound data and knowledge regarding the impacts of product manufacturing and application and the added value of finished products in their application and use phase. In 2018, Sika expanded the existing reference database for Environmental Product Declarations (EPD) for its products and systems in accordance with the international ISO and EN standards, which increases the customer'schoice when it comes to product selection and decision making, by providing information on the environmental performance of Sika solutions. Examples include the preparation of EPD for Pulastic® multifunctional sportsfloor and the Sikafloor® product range under the German IBU standard, whereby Sika has published EPDs for all its major European flooring products and technologies. Furthermore, Sika has been developing third party certified EPDs for the North American construction market, covering sealing and flooring products and liquid applied membranes for roof waterproofing solutions, utilizing local US standards. In 2019, EPD activities in European and North American markets and active involvement in association work will continue to be key activities.

GREEN BUILDING PRODUCT PORTFOLIO
Customer interest in EDPs has grown significantly alongside theincrease in green building projects. Green building schemes, such as the US Green Building Council’s (USGBC) LEED, the UK’s British Research Establishment Environmental Assessment Method (BREEAM) and the German Sustainable Building Council’s (DGNB) DGNB, amongst others, award credits for buildings incorporating products with EPD, which provide added value and comprehensive information for assessing buildings and building structures/ elements. In the year under review, the existing LEED product portfolio was expanded to include a large number of adhesives and sealants as well as flooring products, with a particular focus on Europe and North America (USA, Canada). With the increasing number of green building projects in commercial and public construction, and having a product portfolio that contributes to multiple green building requirements, Sika is in a good position to benefit. With the know-how built up over the years in local companies and with the comprehensive product portfolio, a number of LEED and BREEAM projects were successfully acquired in several European countries such as Greece, Serbia, Slovakia or Poland.

REDUCING EMBODIED AND OPERATIONAL FOOTPRINT
With buildings having extensive direct and indirect impacts on the environment, embodied and operational energy and CO2 efficiency is an essential aspect for the building design. In the reporting year, Sika has introduced for its roofing business an “energy-saving calculator”, which enables to quantify the contribution of the roof design on energy and cost savings during a building’s use phase. Possible energy ­savings can be achieved through improved thermal insulation characteristics and/or reflectivity of roofing membranes. Dedicated trainings were held in countries like Spain, Portugal, Netherlands and UK, amongst others. As an example, in Spain, the acquisition of first projects could be successfully supported by quantifying the benefits of reflectivity of highly reflective roofing membranes in warm climates. In 2019 the focus will be to further introducing the energy saving concept in some other key countries in EMEA, Latin America and Asia/Pacific to support sales of insulation and cool roof solutions.

Another initiative in Refurbishment is the development and introduction of a complete range of sustainable cementitious mortars for repairing, waterproofing, levelling, tiling and flooring. The main characteristic of these products is the significant reduction of portland cement by replacing part of it with supplementary cementitious materials, which may otherwise be disposedof in a landfill. In direct comparison with a cement based mortar of equivalent performance, reducing the amount of portland cement results in significant reduction in the embodied energy and carbon footprint. As an example, the existing concrete repair product range will be extended with Sika MonoTop®-910 Eco, a new high-performing one-componentready mix, bonding and corrosion inhibitor primer, which was developedin 2018.

Sika innovates to increase the efficiency of products and solutions along the entire value chain, and thus responds to the market demand for sustainable solutions. Sika is transitioning into a supplier of innovative solutions which enhance the efficiency, durability, and the aesthetic appeal of buildings, infrastructure, and installations. The integrated concepts and solutions address the entire life cycle of a built structure, from initial construction and maintenance through to refurbishment expansion or ultimately demolition.

Disclosure 102-3: Location of headquarters
Sika AG
Zugerstrasse 50
6341 Baar
Switzerland

Phone +41 58 436 68 00
Fax +41 58 436 68 50
sikagroup@ch.sika.com.

www.sika.com