MASHINIi

Koppers.

KOP.US | Manufacture of basic chemicals

Koppers Holdings Inc. is a global integrated provider of treated wood products, wood treatment chemicals, and carbon compounds. The company operates through three segments: Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC), and Carbon Materials and Chemicals (CMC). The RU...Show More

Ethical Profile

Mixed.

Koppers faces significant environmental scrutiny. Its coal tar plant has been linked to over 50 violations, with reports suggesting the release of cancer-linked chemicals like naphthalene and benzene. This contributes to the surrounding area being among the top 5% most polluted air nationally, allegedly elevating local cancer risks. The SEC fined Koppers $1.3 million in 2019 for allegedly withholding vendor payments to meet debt targets. Koppers also reports a 67:1 CEO to median employee pay ratio and has incurred over $500,000 in employment and safety penalties, including wage violations. While Koppers reports a 54% reduction in Scope 1 and 2 emissions since 2007, these efforts are noted amidst ongoing environmental challenges.

Value Scores

Better Health for All-80
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect10
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business0
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-60
-100100
Respect for Cultures & Communities20
-100100
Safe & Smart Tech10
-100100
Zero Waste & Sustainable Products-30
-100100

Better Health for All

-80

Koppers' core operations, particularly its coal tar and chemical manufacturing segment, are linked to severe negative health impacts on surrounding communities. In 2022, a Koppers plant emitted over 150,000 pounds of chemicals, including 21,000 pounds of naphthalene and 11,500 pounds of benzene, both cancer-linked.

1
The area around this plant is in the top 5% of the most polluted air in the country
2
, with EPA risk modeling indicating elevated cancer risks for residents who also report respiratory problems, headaches, and nausea.
3
More than 95% of Koppers' industrial commodity chemicals are sold to downstream users
4
, with their production linked to these health harms. The company has a history of over 50 environmental violations in the past decade
5
, with 25 alleged violations in October 2023 alone
6
, including spills of toxic chemicals and malfunctions of pollution control equipment.
7
Despite a stated commitment to transparency, Koppers has been criticized for a lack of proactive communication regarding pollution risks, disputing violations, and holding private meetings with community officials.
8
While Koppers plans to cease phthalic anhydride production in 2025 to reduce emissions
9
, these severe health externalities and safety incidents persist. The company does implement internal employee safety and wellness programs, such as an opioid overdose response program with naloxone distribution
10
, which has reported no overdoses at Koppers sites since implementation.
11

Fair Money & Economic Opportunity

0

Koppers is a global provider of treated wood products, wood treatment chemicals, and carbon compounds, and does not operate as a financial institution.

1
Consequently, the company does not offer lending, deposit services, or consumer credit products. This means that KPIs such as underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives, data accessibility, fair lending compliance, wealth building outcome, financial literacy initiatives, debt burden ratio, geographic inclusion, and product simplicity are not applicable to its core business, aligning with the rubric's 0-tier definitions for non-financial entities. There is no evidence provided regarding Koppers' profit reinvestment in community finance or profit-sharing with underserved communities, leading to the omission of that KPI.

Fair Pay & Worker Respect

10

Koppers' CEO-to-median employee pay ratio for fiscal year 2024 was 67:1

1
, with the CEO's total compensation at $5,879,522
2
and median employee pay at $88,206
3
. The company's Total Recordable Incident Rate (TRIR) was 2.52 in 2024
4
, which was the lowest in company history
5
, with 0 fatalities
6
and 3 Process Safety Incidents reported for the year
7
. An employee engagement survey in 2024
8
, with a 55% response rate
9
, showed 80% favorable responses
10
, with 79% of employees stating they would recommend Koppers as a place to work
11
and 81% happy working there
12
. The total employee turnover rate in 2024 was 25%.
13
There are no substantiated labor-law or human-rights violations reported for the past three years (2022-2024)
14
, with the latest recorded violation being a workplace safety or health violation in 2019
15
.

Fair Trade & Ethical Sourcing

0

No quantitative data or specific facts relevant to Fair Trade & Ethical Sourcing KPIs were found in the provided articles. The documents include links to company information and an Audit Committee Charter

1
, but these do not contain details on fair-trade certifications, supply chain audit frequencies, forced/child labor incidents, traceability, remediation speed, ethical clause coverage, materials risk index, or supplier diversity spend
2
,
3
. An Excel file containing CSR data was mentioned
4
but its content was not extractable
5
.

Honest & Fair Business

0

Koppers Holdings Inc. was ordered by the U.S. Securities and Exchange Commission (SEC) to pay a $1.3 million civil fine in 2022.

1
This fine was for failing to disclose material information about its debt reduction efforts in fiscal year 2019, specifically by withholding substantial past-due vendor payments to meet debt reduction targets.
2
The company has a Code of Conduct applicable to all Directors, officers, and employees, which includes a provision that Senior Officers will not retaliate against those providing information for investigations.
3
The Board of Directors maintains a policy that there should be a majority of independent Directors.
4
The Code of Ethics Applicable to Senior Officers was most recently revised on February 14, 2024.
5
Koppers publishes annual sustainability reports, a Task Force on Climate-related Financial Disclosures (TCFD) report, a UK Modern Slavery Transparency Statement, a CA Supply Chains Act statement, and a Canada Modern Slavery Report.
6

Kind to Animals

0

No evidence available to assess Koppers on Kind to Animals.

No War, No Weapons

0

No evidence available to assess Koppers on No War, No Weapons.

Planet-Friendly Business

-60

Koppers was cited for 25 violations of Illinois environmental laws between July 2022 and September 2023, relating to equipment malfunctions at its naphthalene distillation plant.

1
Over the past decade, the company has been cited for over 50 violations in Illinois, incurring nearly $12 million in environment-related penalties from 2000-2024.
2
Koppers publishes a Task Force on Climate-related Financial Disclosures (TCFD) Report.
3
The company reported a 54% reduction in Scope 1 and 2 emissions against a 2007 baseline, seven years ahead of its 2030 goal.
4
Solar energy production increased by 53% year-over-year, including the completion of a 100-kilowatt solar panel system at its Mayfield, Australia, facility.
5
Floating wetlands were installed at the Newsoms, VA, facility in 2020 to improve water quality and provide habitat.
6
Koppers tracks, monitors, and reviews water use and waste generation with the goal to improve annually.
7
The company earned an EcoVadis Bronze Medal, placing it in the top 35% of assessed companies, and publishes annual Sustainability Reports.
8
It has been recognized for the fifth consecutive year as one of Newsweek's Most Responsible Companies and for the third consecutive year as one of USA Today's America's Climate Leaders.
9

Respect for Cultures & Communities

20

Koppers has established two formal partnerships with local community groups: New Castle Elementary School and Mercy EMS.

1
No cultural appropriation incidents are mentioned in the provided articles. The company implements a formal cultural impact assessment protocol, with 89% of its operations having local community engagement and impact assessments.
2
A Programmatic Agreement with the EPA, Delaware State Historic Preservation Office, and the Advisory Council on Historic Preservation outlines steps to mitigate adverse effects on historic properties, including archaeological sites eligible for the National Register of Historic Places.
3
This agreement also serves as a framework for responding to potential cultural incidents.
4

Safe & Smart Tech

10

Koppers reported no material information security incidents or unauthorized data use incidents as of February 2025.

1
The company uses multi-factor authentication (MFA), VPN, firewalls, endpoint protection, and privileged access management.
2
Security systems are deployed to manage vulnerabilities, and periodic penetration tests are conducted.
3
Regular security training is provided for all employees interacting with IT systems, with specialized training for sensitive data handling.
4
The company's privacy policy, last updated in May 2018, grants users rights to access, correct, and delete personal information, including data portability for EEA residents, and allows opting out of marketing communications and managing cookie preferences.
5
Koppers dedicates financial resources and management time to GDPR compliance, and its program is aligned with local and regional compliance requirements.
6
,
7
The company has a policy to store information only as long as legally required, considering factors like data sensitivity and purpose.
8

Zero Waste & Sustainable Products

-30

Koppers uses 100% recycled copper in its wood preservation products

1
and states that at least 75% of its products by revenue utilize recycled, reused, and renewable materials.
2
The company employs a 'cradle-to-cradle' strategy, emphasizing circularity in its business model, focusing on reuse and recovery of products, and aiming for sustainability from inception to end-of-life.
3
Koppers recovers end-of-life railroad ties and utility poles for reuse or fuel, and distills crude coke oven tar into valuable products.
4
A five-year, $50 million contract was announced to collect and manage end-of-life railroad crossties, expanding service to four of six Class I railroads, covering 66.67% of these customers for crossties.
5
However, Koppers has a history of environmental non-compliance, with numerous penalties totaling over $11 million for environment-related violations since 2000.
6
The company's Stickney plant alone faced 25 alleged violations in October 2023
7
and is identified as a leading polluter for certain chemicals nationally and in Cook County.
8

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.