2023 INCLUSION AND DIVERSITY REPORT

Embracing the power of inclusion

3 Leadershipperspectives

11 Building an inclusive workplace

Report20 summary

30

Our communities

Our commitments

34 Global recognitions

LETTER FROM MARK COSTA

Embracing inclusion and diversity makes us better and accelerates innovation

We have always been a company rooted in innovation - a culture that supports and builds diverse perspectives is necessary for innovation to flourish. That is why inclusion and diversity (I&D) are so important. This isn't optional at Eastman. It isn't another corporate initiative. This is core to who we are as a company and a global team, and we simply won't achieve all we want to achieve without this being part of our makeup.

Here's another important thing: Lasting change takes time and unwavering effort. We are making progress on our goals, but we are not moving as quickly in some areas as others. This won't happen overnight, and we are fully committed to long-term progress and transformation through hard work and persistence.

We have a sound I&D strategy based on four strategic pillars that foster inclusion, accelerate diversity in leadership, build inclusive teams and mitigate unconscious bias. We are executing that strategy through actionable plans that involve every leader at Eastman, and we're holding ourselves accountable to strengthen our culture. This will accelerate progress and make our company the best it can be.

Accountability at the leadership level starts with me, and I have the highest expectations of myself and our executive team. Each of our senior executives is focused on how we will achieve those goals and metrics that demonstrate progress.

Regardless of title or job, every person at Eastman is responsible for doing their part to accelerate our progress toward a more inclusive workplace. During my career here, I have learned that no team embraces responsibility the way the Eastman team does.

Technology and innovation are tools to bring about progress. But those tools are only as good as the team behind them. The team must possess diversity of thought and openness to new ideas and all perspectives. And it must be a team of people who can fully be themselves at work so that they are inspired to come together and accomplish something bigger than themselves.

That is our team, and Eastman is striving to become better each year by attracting and keeping the best talent. We are strengthening a culture that enables each of us to achieve our full creative potential so that, collectively, we fulfill our company purpose to enhance the quality of life in a material way.

"There has never been a better time, nor a more important time, to be part of the Eastman team. We have accomplished

much in our more than 100-year history. Now Eastman has

the opportunity - and the responsibility - to solve some of the world's greatest challenges through material innovation."

Mark Costa (he/him/his)

We know we still have work to do, but I'm inspired by our efforts, the progress we've made and our commitment to

Board Chair and Chief Executive Officer

do even more in the future.

We embed inclusion and diversity into everything we do at Eastman

By forging a solid connection to our purpose and values and embracing the power of inclusion and belonging, we challenge conventional thinking, overcome limitations and celebrate the unique qualities of each individual.

Our commitment to inclusion and diversity is more profound than a set of initiatives, reactionary measures or a defined metric. It is reflected in our collective actions and behaviors during everyday interactions, shaping how our team members experience and embrace our core values and principles.

The ultimate objective is to foster an environment that fully harnesses the potential of our diverse global workforce, driving innovation, ensuring psychological safety and improving business outcomes.

We believe inclusion and diversity enable us to deliver on our organizational aspirations of improving the world for future generations. That is what is at stake.

2022 accomplishments

"We all want to be accepted for who we are. We need to feel included. We need our voices to be heard. We want to feel connected to a great purpose."

Kaamilya Clinkscales-Major (she/her/hers)

Global Head of Inclusion and Diversity

37%

Enhanced

9%

40%

offerings,

inclusive benefit

of leaders across

Eastman has

14 countries

committed nearly

increase in ERG

including infertility,

increase in hiring

$1 million

memberships

surrogacy, adoption

racially and ethnically

have participated

to base pay adjustments

in 2022

diverse talent

in Inclusive

benefits and gender

alignment services

Leadership training

Non-U.S. ERG

Launched global

memberships

Veteran self-identification

employee wellness

Increased board of directors to

increased by

increased by

platform with

Men and women are

84%,

250%

female

15%

promoted at

representation

the same rate

33% ethnically

expanding into

employee utilization

diverse

all regions

within the first year

25% representation

MEASURING OUR PROGRESS

Values in action

Inclusion and diversity are embedded in Eastman's core values, guiding documents and business strategy, and they are the foundation of building engaged and resilient teams that reflect our diverse society. We cultivate teams that are better equipped to navigate the challenges and opportunities that lie ahead of us. Inclusion and diversity help us boost morale and satisfaction and strengthen our organizational capabilities. When we prioritize inclusion and diversity, we fully tap into the wealth of diverse ideas, experiences and viewpoints of our team members. And that's how we fuel innovation, enhance problem-solving and, ultimately, lead to better outcomes for Eastman and our customers.

Adrian Holt (he/him/his)

Senior Vice President and Chief

Human Resources Officer

"Embracing inclusion and diversity isn't just about checking boxes. It's demonstrating a commitment to fair, transparent and sustainable practices. We're shaping a workplace culture that transforms and improves business results."

MEASURING OUR PROGRESS

Workplace representation

We have maintained the representation of racially and ethnically diverse team members over the past two years. We will be continuing to focus our efforts on increasing representation in the coming years.

Racial/ethnic diversity by organizational level4

14%

Professional313%

14%

Leadership1

Total POC2

Total POC2

Total POC2

15%

13%

12%

14%

10%

5%

0%

2020

2021

2022

Professional3

Total POC2

Total POC2

Total POC2

15%

14%

13%

14%

10%

5%

0%

2020

2021

2022

Black

Latinx

Asian

Manager

Director

Vice president and above

Total Eastman

12%

10%

13%

14%

13%

14%

15%

18%

18%

14%

13%

14%

  1. Manager and above
  2. POC includes Asian, Black/AA, Latinx, Native American/Pacific Islander and mixed race
  3. Professional-levelroles without management responsibility
  4. Racial/ethnic data are U.S. only

202020212022

MEASURING OUR PROGRESS

Workplace representation

2022 hiring 1

Our recruitment focus is yielding progress as our diversity representation in hiring exceeds our current population demographics for both race/ethnicity and gender. While we have more work to do, diversifying our external pipeline will help us continue to advance diversity at all levels of the company.

Women by organizational level

Professional3

37%

38%

39%

25%

27%

40%

For more information on Eastman's

Manager

30%

workforce representation, see

the data we reported to the

U.S. Equal Employment

34%

Opportunity Commission.

Racially/ethnically

Women

diverse

25%

We continue to focus on improving female

Director

25%

representation across the company.

Leadership2

24%

25% 27% 28%

40%

20%

0%

2020

2021

2022

20%

Vice president22% and above

22%

Professional3

40%

37%

38%

39%

20%

0%

2020

2021

2022

  1. Gender representation includes all team members globally.
  2. Manager and above
  3. Professional-levelroles without management responsibility

36%

Total Eastman

37%

38%

202020212022

MEASURING OUR PROGRESS

Breaking barriers in manufacturing

When Katrien De Keukeleere applied to Eastman in 2017, she knew she was qualified to work in manufacturing as a chemist. She had a doctorate in chemistry and was excited about the role and the company. She also knew the manufacturing industry was predominantly male.

At Eastman, however, she felt accepted from the beginning and respected based on her qualifications.

De Keukeleere is now a production manager at Eastman's Ghent South site in Belgium. She's responsible for three production lines that create Eastman Saflex advanced interlayers, which enhance glass safety, security and more. She brings a unique perspective to her team with experience in organic and physical chemistry research, and she's used her skills since her first role at Eastman in the engineering department.

While De Keukeleere has never personally felt that being a woman in manufacturing - particularly in a leadership role - was an oddity at Eastman, the materials industry is still predominately male. That is why Eastman is striving to increase the number of women in operations and leadership roles in an effort to continue to reach gender parity.

De Keukeleere often sees fewer women than men apply for manufacturing operator roles. She believes there are several reasons why women go into manufacturing less often, including their education preferences, societal norms and balancing shift work with personal or family life.

De Keukeleere also thinks women in every industry may be hesitant to apply for new roles because they think they won't check every box even when they have the experience and training.

"It's not always someone else who's putting the weight on our shoulders," she said. "Sometimes we do it ourselves because of our upbringing and what we're used to. But the world is changing, and we want to empower women to seek roles in manufacturing, leadership or any other space that men have traditionally held. Even though a small part of yourself might be hesitant, you just need to go for it and be confident in yourself. If you don't apply, you'll never know."

De Keukeleere is an example of that at Eastman and at home.

"I have two daughters, so I hope I can make them confident women who know what they want and aren't scared to do it," she said.

Eastman is actively promoting diversity and inclusion in its leadership team. In 2022, there was a 13% increase in female leader hires, a 24% increase in Asian leader hires and double the number of Black leaders hired compared to the previous year. Additionally, women were promoted at

a rate similar to men, with 18% of females and 17% of males receiving promotions. Eastman is committed to creating an inclusive work environment that values the contributions of all team members.

"We feel inclusion is critical to establishing a culture of belonging."

Michelle Caveness (she/her/hers)

Vice President, Tennessee Operations and Global Operations Support

LEADERSHIP ENGAGEMENT

Supporting a diverse workforce

Inclusion and diversity are at the forefront of Michelle Caveness's thoughts and actions. As the leader of our largest manufacturing site in Kingsport, Tennessee, and several sites in other regions, Caveness works to ensure progress in strengthening the culture for her team of more than 4,000 Eastman team members and those who visit the site.

She has good reason to focus on inclusion with her leaders and team. The Kingsport workforce is rapidly diversifying as a generational wave of team members with decades of experience and expertise has retired or is nearing retirement. Harnessing the energy and potential of the next generation to create belonging is critical to the health and safety of all.

"We have been hiring, and our workforce is diversifying. And we are all really accountable for the culture of inclusion - of belonging - that we develop," she said. "You need that culture where everybody raises concerns and addresses risks in an open way. If you don't have that, you lose the benefit of a diverse workforce."

"If a leader doesn't create an environment where people speak up, it can lead to safety risks for that team member or the people working around them and missed opportunities to improve manufacturing. It's what creates a path to solutions where others see barriers."

For the past year, Caveness and her leadership team spent ample time in workshops and discussions with supervisors on inclusive leadership, and she champions a manufacturing I&D council.

There's a significant indicator of progress. Through October 2023, the Kingsport manufacturing site was tracking toward its best safety performance ever. That covers a century of operations.

"Our safety has improved 70% over last year, and I'm proud of the work by the entire Tennessee operations team," Caveness said. Caveness's leadership for I&D extends beyond her site. She serves as an advisory board member for Catalysts, the Eastman Resource Group that promotes equity and inclusion for women throughout our company, and also works with The Manufacturing Institute on its Women MAKE America program, which provides resources for women professionals and maintains an annual awards program to recognize the top women in science and technical fields. Caveness is a previous winner.

"We're trying to equip women with the understanding of how leadership opportunities play out across different industries and equip them with the background and confidence to understand how they can leverage their strengths to support the future of manufacturing," she said.

LEADERSHIP ENGAGEMENT

LEADERSHIP ENGAGEMENT

Training our

Holding our

leaders

leaders accountable

Eastman's Inclusive Leadership course helps mitigate unconscious bias and foster an inclusive culture by giving leaders practical tools to build high-performing teams. To date, 400 leaders across 14 countries have completed the course, and 90% of them have personal inclusion action plans in place.

"We bring our outside experiences to our role as leaders, role models and team members. That's real life, and it's what makes Eastman stronger.

"The Inclusive Leadership course was a journey of reflection about what we each bring to the company. We learned how to encourage our team members - of all backgrounds and strengths - so we can experience new perspectives and learn from one another.

"We are innovative people at a materials company. We are empowering our people to bring their experiences and ideas together in a safe space."

Elvira Cavaleiro Neves (she/her/hers)

Latin America Leader and Advanced Interlayers

"Inclusion and diversity are central to the success of our innovation-driven growth strategy. We're committed to innovating sustainable material solutions to some of the world's most significant challenges, and meeting those challenges takes incredible talent. Attracting, growing and developing top talent from diverse backgrounds is an essential enabler of our strategy.

"Inclusion and diversity business reviews increase transparency and accountability and drive alignment with our core values and strategic ambitions. As a technology organization and as a company, we have taken several actions to accelerate our journey. It's important to track progress so that we know what's working and where we need to work harder to improve.

"That's why business reviews are so important. They instill a sense of ownership and drive continual improvement and a review-and-adjust mindset, giving senior leaders visibility into the actions we're taking and the tangible results of those actions."

Chris Killian (he/him/his)

Senior Vice President and Chief Technology Officer

and Executive Sponsor of Connect ERG

Organizations throughout Eastman are following a plan to increase I&D. Here's how the technology organization is driving positive change:

Ensuring diverse hiring teams and candidate pools to enhance selection and hiring practices

Targeting senior-level

Hosting gender diversity

Addressing women in STEM

mentorship and sponsorship

workshops to build

with an initiative to increase

for diverse talent

action plans

their participation in invention

and patenting

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Disclaimer

Eastman Chemical Company published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2024 15:24:03 UTC.