Each of us at Axalta is committed to conducting business every day in accordance with the highest standards of ethics and integrity.

Axalta is governed by our Board of Directors and the Axalta Leadership Team. Our Board of Directors is currently composed of seven independent directors, in addition to our Chairman and CEO. Our Board is composed of three women and five men. In 2017, the Axalta Board of Directors was recognized for its diversity by the Forum of Executive Women and PricewaterhouseCoopers in the Women in Leadership 2017 report.

Our company’s Board of Directors has the highest level of oversight of environmental, health, safety and sustainability matters. In 2017, Axalta introduced a new committee of the Board: our Environment, Health, Safety and Sustainability Committee, which demonstrates our commitment to strong sustainability governance and performance. The committee, as described in its charter, is responsible for periodically reviewing our sustainability strategy, objectives, policies and performance. In conjunction with the establishment of this new committee, we refreshed our corporate Environmental, Health and Safety (EHS) Policy during 2017.

In addition to our new committee, the Board of Directors has four other committees—the Audit Committee, the Compensation Committee, the Executive Committee and the Nominating Committee. Our Board of Directors and its committees held regularly scheduled meetings quarterly in both 2016 and 2017. Our Management Team, which is composed of the head of each corporate function or business unit, is responsible for day-to-day management of EHS and sustainability matters at Axalta. In 2017, as part of our ongoing evolution, we appointed our first Vice President of Sustainability to help steward continual improvement globally.

Our Management Team, which is composed of the head of each corporate function or business unit, is responsible for day-to-day management of EHS and sustainability matters at Axalta. In 2017, as part of our ongoing evolution, we appointed our first Vice President of Sustainability to help steward continual improvement globally.

To roll out sustainability more broadly throughout the organization, our Vice President of Sustainability leads our Sustainability Council, which has the responsibility of setting our sustainability strategy, goals, programs and public reporting. This Council meets throughout the year and features senior representatives from operations, procurement, legal and compliance, technology, human resources, corporate affairs and all business segments. For more information on governance at Axalta, please see the Corporate Governance section of our corporate website, our 2017 Annual Report and our 2017 Proxy Statement.

For more information on governance at Axalta, please see the Corporate Governance section of our corporate website, our 2017 Annual Report and our 2017 Proxy Statement.

Enterprise Risk Management

In 2017, Axalta introduced a global enterprise risk management program. Our risk management program is led by our Treasury department, overseen by the Board of Directors, and includes active engagement from the Axalta Leadership Team. This program is designed to help the company address and manage enterprise level or other significant business risks. The program is structured to help support Axalta’s global goals and value creation efforts and to enable improved decision making, planning and prioritization though a structured understanding of both opportunities and threats. The end goal of the program is to have an integrated and forward-looking program that enables Axalta to intelligently quantify and address risks on a company-wide basis. We used the results from the latest risk assessment process as an input into our sustainability materiality assessment that guided the focus areas of our sustainability program and the contents of this report.

Please see our CDP response for more information on our specific climate risk management procedures.

Cybersecurity

The security of our customer, product and employee data is of paramount importance for Axalta. The emergence of global cybersecurity threats elevates the importance of traditional information security. Over the past year, we have made strides towards a fully ISO27000-aligned cybersecurity structure, which is emerging as an industry benchmark in cybersecurity. Axalta’s Information Technology organization has deployed tools and technology to secure our intellectual property and data internally, while fortifying our defenses against threats from outside, with more investments to come in 2018 and beyond. Thousands of employees have received web-based training on the danger posed by fraudulent email (phishing) and how to recognize phishing attempts. Axalta’s Board of Directors receives updates on the ongoing cybersecurity efforts and our progress.

Goal

Secure our intellectual property and data by maintaining tools and technology to fortify our defenses against threats and ensuring employee understanding of their obligations.

Ethics and Integrity

Since our inception, Axalta has maintained a strong commitment to operating with integrity and behaving ethically. Our company values drive our performance every day.

Goal

Continuous improvement of compliance processes and procedures by modernizing the way we deliver training to employees on the Axalta Code of Business Conduct and Ethics, expanding our due diligence reach, requiring additional compliance certifications and supplier training.

Axalta has adopted five values that are the foundation for the behaviors we expect of our employees and form the basis of our performance evaluation process.

We

These values guide our business and all of our representatives—from Directors on the Board to employees around the world—and serve as the foundation for our Code of Business Conduct and Ethics. The Code goes further, however, and sets forth the company’s expectations of employee behavior regarding anti-corruption, human rights, workplace environment, health and safety, respect, accurate books and records and data privacy, among other topics. The Code is available in multiple languages. The Code is also bolstered by a full suite of compliance-related policies and procedures, including those addressing anti-corruption, whistleblower protection and insider trading, among others.

99% of Employees Trained on Ethics and Integrity Principles

Every year, each Axalta employee around the globe receives training on the Code. Employees who are computer users receive the training online and those who work on factory floors or in warehouses are trained in person by site leaders. The training is delivered in 15 languages. In 2017, we had a 99 percent completion rate for this training.

Axalta is committed to fostering an open reporting environment and preventing retaliation, retribution or harassment when an employee makes a good faith report or cooperates with an investigation of any violation of our Code. Axalta employees are encouraged to report any suspected or known violations of the Code using appropriate channels, such as through our Legal department, regional or local compliance officers, or our ethics hotline which is operational globally and facilitates the reporting of employee questions, concerns and issues. We have an effective system for investigating and resolving concerns raised through these channels.

Supply Chain

Any individual or company working for or on behalf of Axalta is expected to be a good corporate citizen and share our values. From the onset, our Procurement and Compliance teams complete a risk assessment of all prospective business partners, suppliers, contractors and consultants in order to assess their corporate governance and ethics programs and identify any high-level environmental, social and sustainability issues.

For our suppliers, these expectations are codified in our Supplier Code of Conduct, which we further supplemented in 2017 by developing a supplier sustainability risk management program. This sustainability screen further assesses new and existing suppliers’ environmental, social and governance systems and performance against the requirements we establish in our Supplier Code of Conduct. It is complementary to our Procurement and Compliance teams’ risk assessment programs and was successfully piloted and introduced in 2017. For more information on this program, please see the Supply Chain and Logistics section of this report.

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