Risk Management & Materiality

Risks are present in all business activities. Well-managed risks add value to a business and provide opportunities. Kraton’s senior leaders identify and assess risks and evaluate their impact continuously. This assessment is an integral part of the company’s Enterprise Risk Management (ERM) process where risks are evaluated and prioritized based on the likelihood of occurrence and the potential severity of impact. The ERM process is facilitated by the Internal Audit department, which reports to the Board’s Audit Committee. The Audit Committee assists the Board in fulfilling risk oversight responsibility.

Sustainability risks are evaluated as part of the ERM process. We manage these risks through our Sustainability Council, which comprises company senior executives. Our Board delegates sustainability oversight at the board level to our Nominating, Governance & Sustainability Committee, which receives periodic progress reports. Material topics include: