Análisis PESTLE de Stepan Company (SCL) [Actualizado en Ene-2025]

En el intrincado mundo de la fabricación de productos químicos, Stepan Company (SCL) navega por un paisaje complejo de desafíos y oportunidades globales. Este análisis de mortero presenta las fuerzas externas multifacéticas que configuran la trayectoria estratégica de la Compañía, desde obstáculos regulatorios e innovaciones tecnológicas hasta imperativos ambientales y fluctuaciones económicas. Al diseccionar las dimensiones políticas, económicas, sociológicas, tecnológicas, legales y ambientales, exploraremos cómo la compañía Stepan no solo sobrevive sino que prospera en un mercado global cada vez más dinámico y exigente.

Stepan Company (SCL) - Análisis de mortero: factores políticos

Cumplimiento de la industria de fabricación de productos químicos regulados

Stepan Company opera bajo estricta supervisión regulatoria de múltiples agencias federales:

Agencia reguladora	Área reguladora clave	Requisitos de cumplimiento
EPA	Regulaciones ambientales	Cumplimiento de la Ley de Aire Limpio
OSHA	Seguridad en el lugar de trabajo	Normas de manejo de productos químicos
FDA	Seguridad de productos	Verificación de ingredientes químicos

Impacto en la política comercial en la importación/exportación química

Las regulaciones actuales de importación química/exportación implican un cumplimiento complejo:

• Las regulaciones de exportación química de los EE. UU. Requieren una tarifa de registro anual de $ 2,500
• Licencias de exportación de productos químicos Mandatos de procesamiento de 45 días
• Las tasas arancelas para las exportaciones químicas oscilan entre 3.7% y 6.5%

Mandatos de protección del medio ambiente

El cumplimiento ambiental implica importantes inversiones financieras:

Regulación ambiental	Costo de cumplimiento	Línea de tiempo de implementación
Ley de control de sustancias tóxicas	$ 1.2 millones anualmente	En curso desde 2016
Requisitos de la Ley de Agua Limpia	Actualizaciones de infraestructura de $ 850,000	Implementación 2023-2025

Tensiones geopolíticas que afectan las cadenas de suministro

Las tensiones comerciales globales actuales impactan el abastecimiento de materia prima:

• Los aranceles comerciales de China aumentan los costos de las materias primas químicas en un 15-25%
• Restricciones comerciales de los Estados Unidos limitan las posibles fuentes de ingredientes químicos
• Las regulaciones de importación química de la Unión Europea requieren documentación adicional de cumplimiento

Stepan Company (SCL) - Análisis de mortero: factores económicos

Rendimiento de la industria química cíclica vinculada a las tendencias de fabricación global

Los ingresos de Stepan Company para el año fiscal 2022 fueron de $ 2.394 mil millones, lo que refleja un aumento del 14.7% de 2021. La tasa de crecimiento global de la industria química se estimó en 3.2% en 2022. Índice de gerentes de compras de fabricación (PMI) para los Estados Unidos promedió 54.8 en 2022, 2022, indicando expansión.

Año	Ingresos ($ M)	Crecimiento global de la industria química	Fabricación PMI
2020	1,922	-3.5%	50.3
2021	2,087	2.8%	58.6
2022	2,394	3.2%	54.8

Fluctuando los costos de las materias primas que afectan los márgenes de beneficio

Los costos de materia prima para Stepan Company en 2022 representaron el 62.3% de los ingresos totales. Los precios del petróleo crudo fluctuaron entre $ 70 y $ 120 por barril en 2022. El margen bruto de la compañía fue del 17.8% en 2022, en comparación con el 19.2% en 2021.

Año	Costos de materia prima (%)	Precio promedio de petróleo crudo	Margen bruto (%)
2020	59.5%	$ 41/barril	16.5%
2021	61.7%	$ 68/barril	19.2%
2022	62.3%	$ 95/barril	17.8%

Inversión continua en segmentos de mercado químico especializado

Stepan Company invirtió $ 78.4 millones en investigación y desarrollo en 2022. El mercado de productos químicos especializados se valoró en $ 836.9 mil millones en todo el mundo en 2022, con una tasa compuesta anual proyectada de 5.3% de 2023 a 2028.

Año	Inversión de I + D ($ M)	Tamaño del mercado global de productos químicos especializados ($ B)	CAGR del mercado
2020	65.2	764.5	4.7%
2021	71.6	795.3	5.1%
2022	78.4	836.9	5.3%

Posibles incertidumbres económicas que afectan las estrategias de gasto de capital

El gasto de capital de Stepan Company en 2022 fue de $ 94.6 millones. La tasa de inflación en los Estados Unidos fue de 8.0% en 2022. Las tasas de interés de la Reserva Federal oscilaron entre 4.25% y 4.50% para fin de año.

Año	Gasto de capital ($ M)	Tasa de inflación de los Estados Unidos	Tasa de interés de la Reserva Federal
2020	76.3	1.4%	0.25%
2021	85.2	4.7%	0.25%
2022	94.6	8.0%	4.50%

Stepan Company (SCL) - Análisis de mortero: factores sociales

Creciente demanda de consumidores de productos químicos sostenibles y ecológicos

El mercado global de productos químicos sostenibles proyectados para llegar a $ 165.1 mil millones para 2027, con una tasa compuesta anual de 6.2%. La cartera de productos verdes de Stepan Company representa el 37% de los ingresos totales en 2023.

Categoría de productos sostenibles	Cuota de mercado (%)	Contribución de ingresos ($ M)
Tensioactivos biodegradables	15.3%	87.5
Químicos biológicos	12.7%	72.4
Polímeros ecológicos	9.0%	51.3

Aumento de las iniciativas de diversidad e inclusión en el lugar de trabajo

Métricas de diversidad de la fuerza laboral de Stepan Company para 2023:

Categoría demográfica	Porcentaje (%)	Total de empleados
Mujeres en el liderazgo	28.6%	142
Minorías raciales/étnicas	22.4%	316
Veteranos	5.7%	80

Cambiando la demografía de la fuerza laboral que requiere gestión de talento adaptativo

Distribución de edad de los empleados en 2023:

• Millennials (25-40 años): 42.3%
• Gen X (41-56 años): 33.6%
• Gen Z (18-24 años): 15.2%
• Baby Boomers (57-75 años): 8.9%

Promedio de la tenencia del empleado: 7.4 años. Inversión de capacitación por empleado: $ 3,750 anualmente.

Creciente conciencia ambiental que influye en el desarrollo de productos

Inversión en I + D en tecnologías sostenibles: $ 24.6 millones en 2023, lo que representa el 8.2% de los ingresos totales.

Área de enfoque de sostenibilidad	Asignación de I + D ($ M)	Impacto esperado
Tecnologías de reducción de carbono	9.2	15% de reducción de emisiones para 2025
Soluciones de economía circular	7.5	50% de contenido reciclado para 2026
Conservación del agua	5.9	30% de mejora de la eficiencia del agua

Stepan Company (SCL) - Análisis de mortero: factores tecnológicos

Inversión continua en investigación y desarrollo de productos químicos especializados

En 2023, Stepan Company invirtió $ 42.3 millones en investigación y desarrollo, lo que representa el 2.8% de los ingresos totales de la compañía. La compañía mantiene 3 centros de investigación principales ubicados en Northfield, Illinois; Millbury, Massachusetts; y Wyandotte, Michigan.

Año	Inversión de I + D ($ M)	% de ingresos	Nuevas formulaciones químicas desarrolladas
2021	39.7	2.6%	17
2022	41.2	2.7%	22
2023	42.3	2.8%	26

Tecnologías de fabricación avanzadas mejorando la eficiencia de producción

Stepan Company ha implementado tecnologías de fabricación avanzadas en 12 instalaciones de producción global, logrando una mejora de eficiencia de producción promedio de 7.5% en 2023.

Tecnología	Año de implementación	Ganancia de eficiencia (%)	Ahorro de costos ($ M)
Sistemas de control de procesos automatizados	2021	4.2%	3.6
Redes de sensores avanzados	2022	3.3%	2.9

Transformación digital de sistemas operativos y de gestión

Stepan Company ha invertido $ 24.6 millones en iniciativas de transformación digital en 2023, implementando sistemas de planificación de recursos empresariales (ERP) basados ​​en la nube y plataformas avanzadas de análisis de datos.

Implementación de automatización e inteligencia artificial en procesos de fabricación

La compañía ha implementado sistemas de mantenimiento predictivo impulsados ​​por la IA en 8 instalaciones de fabricación, reduciendo el tiempo de inactividad del equipo en un 22% y los costos de mantenimiento en $ 4.3 millones en 2023.

Tecnología de IA	Instalaciones implementadas	Reducción del tiempo de inactividad (%)	Ahorro de costos ($ M)
Mantenimiento predictivo ai	8	22%	4.3
Control de calidad de aprendizaje automático	6	15%	2.7

Stepan Company (SCL) - Análisis de mortero: factores legales

Cumplimiento regulatorio estricto en la fabricación de productos químicos y estándares ambientales

Stepan Company opera bajo estrictos marcos regulatorios regidos por múltiples agencias:

Agencia reguladora	Requisitos clave de cumplimiento	Costo de cumplimiento anual
EPA	Regulaciones de la Ley de Aire Limpio	$ 3.2 millones
OSHA	Estándares de seguridad en el lugar de trabajo	$ 1.7 millones
FDA	Seguridad de productos químicos	$ 2.5 millones

Protección potencial de propiedad intelectual

Estado de cartera de patentes:

Categoría de patente	Número de patentes activas	Duración de protección de patentes
Formulaciones químicas	47	20 años
Procesos de fabricación	23	15-20 años

Regulaciones ambientales y de seguridad complejas

Métricas de cumplimiento ambiental:

• Reducción de residuos peligrosos: 22.3% año tras año
• Reducción de la emisión de carbono: 15.6% desde 2020
• Mejora de la eficiencia del uso del agua: 18.4%

Consideraciones legales internacionales comerciales

Mercado internacional	Costo de cumplimiento regulatorio	Evaluación de riesgos legales
unión Europea	$ 4.1 millones	Alta complejidad
Porcelana	$ 3.6 millones	Complejidad moderada
Brasil	$ 2.9 millones	Baja complejidad

Inversión de cumplimiento legal: $ 12.3 millones anuales en operaciones globales

Stepan Company (SCL) - Análisis de mortero: factores ambientales

Compromiso para reducir la huella de carbono y las emisiones de gases de efecto invernadero

Stepan Company informó un Reducción del 15% en las emisiones de gases de efecto invernadero De 2018 a 2022. El alcance total de la compañía 1 y el alcance 2 de las emisiones fueron 101,250 toneladas métricas de CO2 equivalente en 2022.

Tipo de emisión	2020 emisiones (toneladas métricas CO2E)	2022 emisiones (toneladas métricas CO2E)	Porcentaje de reducción
Alcance 1 emisiones	58,720	52,860	10%
Alcance 2 emisiones	52,380	48,390	7.6%

Prácticas de fabricación sostenibles y estrategias de reducción de desechos

En 2022, Stepan Company logró 92% de tasa de reciclaje de residuos a través de sus instalaciones de fabricación. La compañía invirtió $ 3.2 millones en reducción de residuos y iniciativas de economía circular.

Métrica de gestión de residuos	Valor 2020	Valor 2022
Desechos totales generados (toneladas)	12,450	11,680
Residuos reciclados (toneladas)	11,220	10,750
Tasa de reciclaje de residuos	90%	92%

Inversión en química verde y desarrollo de productos ecológicos

STETEPAN Company asignada $ 12.5 millones para la investigación y el desarrollo de la química verde En 2022. La compañía desarrolló 7 nuevas formulaciones de productos ecológicos durante este período.

Inversión de química verde	2020	2022
Gasto de I + D ($)	10,800,000	12,500,000
Nuevos productos ecológicos	5	7

Cumplimiento de regulaciones de protección ambiental cada vez más estrictas

La compañía Stepan logró 100% Cumplimiento de la EPA y las regulaciones ambientales a nivel estatal En 2022. La compañía pagó $ 0 en sanciones de violación ambiental.

Métrico de cumplimiento regulatorio	2020	2022
Violaciones regulatorias	2	0
Sanciones de cumplimiento ($)	15,000	0

Stepan Company (SCL) - PESTLE Analysis: Social factors

Consumer Demand Shift: Weakness persists in the global commodity Consumer Products end markets for Surfactants

You see the immediate impact of shifting consumer spending when you look at the Surfactants segment, which is Stepan Company's largest business. The global commodity Consumer Products end markets-specifically Laundry and Cleaning-showed persistent weakness in the second quarter of 2025. This softness caused a year-over-year sales volume decline of 1% for the Surfactants segment. Honestly, a 1% volume drop in your core commodity business is a clear signal that consumers are either trading down or simply buying less of the essentials. This decline happened despite the Surfactant segment's net sales increasing 8% to $411.5 million, an increase primarily driven by passing through higher raw material costs and a more favorable product mix in other areas.

Here's the quick math on the segment's Q2 2025 performance, showing the mixed signals:

Metric	Q2 2025 Value	Year-over-Year Change	Commentary
Surfactant Net Sales	$411.5 million	+8%	Driven by higher selling prices.
Surfactant Sales Volume	N/A	-1%	Due to lower demand in commodity markets.
Surfactant Adjusted EBITDA	$34.5 million	-1%	Down slightly, reflecting volume and cost headwinds.

Health & Nutrition Growth: The Specialty Products segment benefits from growing demand in the nutraceutical, food, and pharmaceutical industries

The good news is that the secular trend toward health and wellness is a strong tailwind for the Specialty Products segment. This business focuses on high-value applications like nutraceuticals, food, and pharmaceuticals, where demand remains robust. In Q2 2025, Specialty Product net sales jumped 22% year-over-year to $20.5 million, primarily on the back of higher sales volume. That's a massive volume signal, telling you where the market is headed.

Still, you need to be a realist: the segment's adjusted EBITDA decreased by 24%, or $2.1 million, in the quarter. What this estimate hides is that the dip was mostly due to order timing fluctuations within the pharmaceutical business, where large orders were simply shifted from Q2 to the second half of 2025. So, while the quarterly earnings look soft, the underlying sales volume growth of 22% is defintely the more important long-term social factor here.

Labor Relations: A new collective bargaining agreement at the critical Millsdale site was a factor in Q2 2025 working capital decisions

Labor stability at key manufacturing sites is a non-negotiable factor. The Millsdale, Illinois site is critical to Stepan Company's operations, and the negotiation of a new collective bargaining agreement (CBA) in 2025 had a direct, measurable impact on the company's financials. Management proactively built up inventory to maintain safety stock and ensure supply continuity during the negotiation period. This strategic inventory build contributed to the company's free cash flow turning negative, landing at a negative $14.4 million for Q2 2025. This is an expected, prudent cost of managing a major labor transition that happens every four years.

Also, the Millsdale site had an environmental remediation reserve adjustment that negatively impacted pre-tax earnings by part of a total $6.1 million charge in Q2 2025, showing that even routine labor events at a critical site carry multiple financial risks.

Sustainability Preference: Increasing customer demand for products with a lower product carbon footprint requires R&D investment

The social pressure for environmental responsibility is now a hard commercial requirement. Customers increasingly demand products with a lower product carbon footprint (PCF), which forces Stepan Company to invest heavily in innovation and new certifications. The company has responded by making R&D investments in areas like fermentation-based biosurfactants, which are derived from renewable sources.

To meet this demand, Stepan Company is focusing on:

• Achieving a 10% reduction in Scope 1 and 2 Greenhouse Gas (GHG) intensity from its base year by the end of 2025.
• Expanding the number of manufacturing sites with International Sustainability and Carbon Certification (ISCC) PLUS, which enables certified tracking of sustainable raw materials.
• Launching products, such as polyols with bio-circular components, that allow customers to make reduced PCF claims on their end-products like insulation.

This is not a feel-good initiative; it's a necessary investment to stay relevant to Tier 1 customers who have their own ambitious sustainability goals.

Stepan Company (SCL) - PESTLE Analysis: Technological factors

The core of Stepan Company's near-term technological strategy is centered on two clear actions: bringing the new, large-scale alkoxylation capacity online and aggressively pursuing green chemistry to future-proof the product portfolio. You need to understand that operationalizing this new Texas capacity is the single biggest lever for margin improvement in the second half of 2025.

New Alkoxylation Capacity

The new alkoxylation facility in Pasadena, Texas, is a major technological investment designed to expand Stepan Company's specialty surfactant business, particularly in high-growth markets like agriculture and oilfield. This site, which is the company's third alkoxylation facility, became operational in the first half of 2025 and is defintely critical for future supply chain redundancy and specialty product growth.

However, getting a complex chemical plant to full efficiency takes time. In the second quarter of 2025, pre-tax earnings were negatively impacted by $6.1 million primarily due to start-up costs associated with this new site. The facility is already demonstrating its flexibility, having produced 31 different products as it ramps up production.

Pasadena Alkoxylation Site - Key Metrics (Q2 2025)	Value/Impact	Note
Start-up Costs (Q2 2025 Pre-Tax Impact)	$6.1 million	Primary headwind to Q2 earnings.
Number of Products Produced (Ramp-up)	31	Demonstrates early product flexibility.
Capacity (Flexible)	75,000 tonnes/year	Long-term capacity for ethoxylates and propoxylates.
Expected Benefit Timeline	Second half of 2025 and beyond	Incremental margin benefits as ramp-up completes.

Green Chemistry Focus

Stepan's strategic research and development (R&D) is heavily focused on sustainability, which is a key competitive advantage in the specialty chemical space. The biggest long-term technological challenge for the chemical industry is Scope 3 emissions (indirect emissions from the value chain, like raw material production), and Stepan is tackling this head-on by innovating its feedstocks.

The use of alternative raw materials with a lower emissions footprint represents the greatest potential to lower the company's Scope 3 emissions. This is not just a compliance issue; it's a product innovation play. The R&D team is scaling up new technologies to create more sustainable offerings.

• Develop biofermentation-based surfactant offerings.
• Create a circular and renewable-based polyester polyol portfolio.
• Target a 35% reduction in Scope 1 and 2 emissions by 2030.
• Aim for 90% renewable or zero-carbon electricity by 2030.

Product Innovation Success

The company's R&D focus on specialty products is paying off in volume growth, especially in markets where performance is valued over commodity price. This is a clear sign that the product/customer mix optimization strategy is working. The Surfactant segment saw double-digit volume growth in two key strategic end markets in Q2 2025, even as overall Surfactant volume declined by 1% due to lower demand in global commodity consumer products.

Here's the quick math: Surfactant net sales were $411.5 million in Q2 2025, an 8% increase year-over-year, driven by selling prices up 11%. This price increase is primarily attributable to the improved product and customer mix from these specialty innovations, plus the pass-through of higher raw material costs. You're seeing the premium for high-tech, specialized chemistry.

Process Optimization

The immediate technological priority is stabilizing and optimizing the new Pasadena facility. The full ramp-up is expected to unlock significant cost savings and margin enhancement in the second half of 2025 and beyond, which is crucial for offsetting the persistent pressure from high oleochemical raw material costs. Beyond Pasadena, the company is also focused on leveraging its existing global alkoxylation network-now three plants-to provide strategically located redundancy and long-term capacity for growth. This is how you build a resilient, high-margin chemical business.

Stepan Company (SCL) - PESTLE Analysis: Legal factors

Regulatory Compliance

You need to understand that regulatory compliance for a specialty chemical manufacturer like Stepan Company isn't just about avoiding fines; it's a core operational cost and a key to market access. The regulatory environment is defintely getting more complex, especially in the US.

Stepan Company actively manages this through its membership in the American Chemistry Council (ACC) and adherence to the Responsible Care initiative. This commitment ensures proactive compliance with evolving standards, particularly the US Environmental Protection Agency's (EPA) implementation of the Toxic Substances Control Act (TSCA).

The company's participation in the ACC's Global Product Strategy (GPS) is a clear signal of proactive compliance management, moving beyond minimum legal requirements. This framework helps manage the health and environmental risks of chemical products globally, which is critical for a company with net sales of $594.69 million in Q2 2025.

Environmental Liability

Environmental liability is an immediate, measurable financial risk, and Stepan Company saw this play out in the first half of the 2025 fiscal year. The company recorded an environmental remediation reserve adjustment at its Millsdale site in Q2 2025, which was part of a larger, non-recurring financial impact.

Here's the quick math on the Q2 2025 pre-tax impact of these one-time legal and environmental costs:

Q2 2025 One-Time Pre-Tax Impact	Amount (Millions USD)	Notes
Total Pre-Tax Negative Impact	$6.1 million	Primarily start-up costs and environmental/legal items.
Estimated EPA Penalty (Included in Total)	~$1.0 million	The company plans to recover this from third parties.
Environmental Remediation Reserve Adjustment (Millsdale)	Part of the remaining ~$5.1 million	Adjustment to the reserve for ongoing remediation efforts.

The total pre-tax earnings were negatively impacted by $6.1 million in Q2 2025 due to these combined issues. This shows that environmental and regulatory issues aren't abstract risks; they hit the income statement directly.

Litigation Exposure

The general risk of an unfavorable resolution of litigation is a constant for chemical companies, and Stepan Company explicitly lists this as a potential financial drag in its forward-looking statements. The Q2 2025 financial results provided a concrete example of this exposure.

The company incurred an EPA penalty of approximately $1 million during the second quarter of 2025. While this penalty was included in the larger one-time charge, the company believes it will be able to recover this amount from third parties. Still, the initial outlay and the legal process itself represent a cash and resource drain. You must factor in the potential for these one-time events to recur.

Product Stewardship

Product stewardship is the legal and ethical commitment to managing the health, safety, and environmental (HSE) impacts of a product throughout its entire life cycle, from R&D to final disposal. For Stepan Company, this is formalized through the Product Safety Code, which is mandatory for all ACC members.

The company implements this code through a set of 11 Management Practices to monitor health and environmental impacts. This structured approach is how they keep their products on the right side of global chemical regulations.

Key areas covered by the 11 Management Practices include:

• Integrating HSE considerations into product and process design.
• Characterizing the risk of a product based on its inherent hazard and potential uses.
• Communicating product safety information efficiently to all stakeholders.
• Establishing goals and responsibilities for product stewardship throughout the organization.

This commitment is subject to third-party audits, ensuring the practices are not just on paper, but are actively driving continuous improvement in product safety performance.

Stepan Company (SCL) - PESTLE Analysis: Environmental factors

Emissions Reduction: Absolute Scope 1 and 2 greenhouse gas emissions were reduced by 12% over the 2016 baseline.

You're looking at Stepan Company's environmental performance, and the headline is strong: they've already blown past their near-term emissions target. The initial goal was a 10% absolute reduction in Scope 1 and 2 greenhouse gas (GHG) emissions over the 2016 baseline by the end of 2025. They achieved this ahead of schedule.

As of the end of 2024, Stepan Company reported an absolute reduction of just over 20% in Scope 1 and 2 market-based emissions against the adjusted 2016 baseline of 281.2 kilotons of CO2e. To be fair, the 2023 achievement was a 12% reduction over the unadjusted 2016 baseline, but the 2024 data, which includes facility acquisitions in the baseline, shows the greater progress. This means they are defintely moving in the right direction, setting a solid foundation for their new, more aggressive 2030 goals.

Here's the quick math on their recent emissions data:

Metric	2023 Performance	2024 Performance	Progress Note
Total Scope 1 & 2 GHG Emissions (kilotons CO2e, Market-Based)	246.98	253.45	Emissions rose slightly year-over-year, but the long-term reduction vs. 2016 remains strong.
Absolute Reduction vs. Adjusted 2016 Baseline	N/A (Reported as 12% vs. unadjusted baseline)	Just over 20%	Achieved and exceeded the initial 2025 goal of 10% reduction.
Emissions Intensity (metric tons CO2e per metric ton of throughput)	0.126	0.134	Intensity increased due to lower production volumes in 2023 and 2024, showing the risk of using intensity metrics alone.

Renewable Energy Use: Over 50% of the company's global electricity was sourced from renewable sources in 2023.

The push for renewable energy is a major lever for Scope 2 emissions reduction. In 2023, Stepan Company sourced a high of 52.0% of its global electricity from renewable sources, a significant jump from 47.0% in 2022. This includes electricity covered by Renewable Energy Certificates, Green Origin Certificates, Power Purchase Agreements, and on-site solar generation.

However, the most recent data for 2024 shows a slight pullback, with renewable electricity usage dropping to 43.0% of the total global electricity mix. This volatility highlights the challenge of securing consistent, high-volume renewable energy contracts globally, especially as their total energy consumption for 2024 was 4.16 thousand terajoules. Still, their European operations are a bright spot, sourcing 100% renewable electricity for that region. That's a clear win.

2025/2030 Goals: The 2024 Sustainability Report provided a progress update on 2025 goals and introduced new 2030 Environmental Goals.

With the original 2025 emissions goal already met, Stepan Company has introduced new, more ambitious 2030 Environmental Goals. These targets reflect a commitment to deeper decarbonization and are key indicators for investors focused on long-term Environmental, Social, and Governance (ESG) performance. The new goals are a clear signal that the company is taking climate risk seriously.

The new 2030 targets focus on two critical areas:

• Reduce Scope 1 and 2 emissions by 35% (from the adjusted 2016 baseline).
• Achieve an energy mix where renewable and zero-carbon electricity covers 90% of total usage.

For context, their Scope 3 emissions-those in the value chain-account for about 90% of their total carbon footprint, so future strategy will need to focus heavily on supply chain and product innovation to truly move the needle.

Water Management: Key water efficiency projects are underway to improve water management across manufacturing sites.

Water scarcity is a material risk for chemical manufacturers, and Stepan Company is strategically addressing it. They have achieved a substantial absolute freshwater usage decrease of 43% from 2016 to 2024 for a consistent set of operating sites. This is a strong operational efficiency metric.

However, the total water withdrawn across all global operations in 2024 was significant, totaling 4,617.03 megaliters. The company has identified four sites located in regions classified as high or extremely high water-stressed areas, based on the WRI Aqueduct water risk analysis. This forces them to prioritize water risk management in those specific locations. Key water efficiency projects include:

• Implementing new technologies to improve water reuse.
• Strengthening water management processes at high-risk sites.
• Refining the capital project review process to include sustainability criteria, ensuring new investments also drive water efficiency.

Finance: draft 13-week cash view by Friday.