LyondellBasell Industries N.V. Class A

Human capital and workforce · Talent acquisition and retention

If we lose key employees or are unable to attract and retain the employees we need, our business and operating results could be adversely affected. Our success depends on our ability to attract and retain key personnel, and we rely heavily on our management team. There is substantial and continuous competition for engineering, manufacturing, and operations employees.

Supply chain and procurement · Supplier operation and dependance

For some of our raw materials and utilities there are a limited number of suppliers, and in some cases, the supplies are specific to the particular geographic region in which a facility is located. Having a sole or limited number of suppliers may limit our negotiating power, particularly in the case of rising raw material costs.

Core operations · Safety incidents and operational accidents

Our operations are subject to hazards inherent in chemical manufacturing and the related storage and transportation of raw materials, products and wastes. These potential hazards include: pipeline leaks and ruptures; explosions; fires; severe weather and natural disasters; mechanical failure; unscheduled downtimes.

Core operations · Quality control and product defects

Our operations are subject to hazards inherent in chemical manufacturing and the related storage and transportation of raw materials, products and wastes. These potential hazards include shipment of incorrect or off-specification product to customers, storage tank leaks, other environmental risks and cyber-attack or other terrorist acts.

Human capital and workforce · Key personnel dependence and succession

The inability to recruit and retain key personnel or the unexpected loss of key personnel may adversely affect our operations. In addition, because of the reliance on our management team, our future success depends in part on our ability to identify and develop talent to succeed senior management.

Supply chain and procurement · Transportation and logistics disruption

Disruptions of supplies may occur as a result of transportation issues resulting from natural disasters, water levels, and interruptions in marine water routes, among other causes, which can affect the operations of vessels, barges, rails, trucks and pipeline traffic. These risks are particularly prevalent in the U.S. Gulf Coast area.

Geopolitical and trade · Trade policies tariffs and sanctions

Trade protection measures such as tariffs, quotas, duties, safeguard measures or anti-dumping duties imposed in the countries in which we operate could negatively impact our business. Additionally, there may be substantial capital and other costs to comply with regulations and/or increased security costs or insurance premiums, any of which could reduce our operating results.

Natural and catastrophic events · Natural disasters and extreme weather

The physical impacts of climate change can negatively impact our facilities and operations. Potential physical impacts of climate change include increased frequency and severity of hurricanes and floods as well as freezing conditions, tornadoes, and global sea level rise. A number of our facilities are located on the U.S. Gulf Coast, which has been impacted by hurricanes that have required us to temporarily shut down operations at those sites.

Geopolitical and trade · Regulatory and policy uncertainty

In addition, it remains uncertain whether the EU will implement a carbon border adjustment mechanism for organic chemicals and polymers, and, if so, how such a mechanism would affect the competitiveness of our products and our exposure to higher carbon costs.

Geopolitical and trade · Political instability and government changes

Our ability to source raw materials or deliver products may be adversely affected by political instability, civil disturbances or other governmental actions. Incidents of civil unrest, including terrorist attacks and demonstrations that have been marked by violence, have occurred in a number of countries, including in the Middle East and South America.

International and currency · Foreign exchange and currency exposure

We operate internationally and are subject to exchange rate fluctuations, exchange controls, tariffs, political risks and other risks relating to international operations. Exchange rates between these currencies and functional currencies in recent years have fluctuated significantly and may do so in the future. It is possible that fluctuations in exchange rates will result in reduced operating results.

Capital structure and performance · Financial performance volatility

These factors result in significant fluctuations in profits and cash flow from period to period and over business cycles. The timing and extent of any changes to currently prevailing market conditions are uncertain and supply and demand may be unbalanced at any time.

Credit and liquidity · Liquidity and cash flow constraints

If we are unable to generate sufficient cash flow or raise adequate external financing, including as a result of significant disruptions in the global credit markets, we could be forced to restrict our operations, lower or suspend our dividends or reduce share repurchases, and not pursue growth opportunities.

Legal and litigation · Product liability and warranty claims

Our business, including our results of operations and reputation, could be adversely affected by safety or product liability issues. Failure to appropriately manage occupational safety, process safety, product safety, human health, product liability and environmental risks inherent in the chemical business and associated with our products, product life cycles and production processes could result in unexpected incidents including releases, fires, or explosions resulting in personal injury, loss of life, environmental damage, loss of revenue, legal liability, and/or operational disruption.

Data and privacy · Data protection and privacy laws

We are subject to a variety of laws and regulations in Europe, the United States and other jurisdictions regarding privacy, data protection, and data security, including those related to the collection, storage, handling, use, disclosure, transfer, and security of personal data, and impose obligations on us to ensure transparency, purpose limitation, data minimization, accuracy, storage limitation, integrity, confidentiality, and accountability.

Industry regulation · Safety and environmental regulations

We cannot predict with certainty the extent of future costs under environmental, health and safety and other laws and regulations, and cannot guarantee they will not be material. We may face liability arising out of the normal course of business, including alleged personal injury or property damage due to exposure to chemicals or other hazardous substances at our current or former facilities.

Reputation and brand · Corporate social responsibility

If we are unable to meet our circularity, greenhouse gas reduction or gender diversity goals, or if we are perceived by regulators, customers, stockholders or employees to have not responded appropriately to these issues, our reputation, and therefore our ability to sell our products, could be negatively impacted.

Cybersecurity and data protection · Third party data security and vendors

Our cybersecurity and infrastructure protection technologies, disaster recovery plans and systems, employee training and vendor risk management may not be sufficient to defend us against all unauthorized attempts to access our information or impact our systems. We – and our third-party vendors and service providers – have been and may in the future be subject to cybersecurity events of varying degrees.

Technology infrastructure · Technology systems and infrastructure failure

Our systems and procedures for identifying and protecting against such attacks and mitigating such risks may prove to be insufficient due to system vulnerabilities, human error or malfeasance, or other factors.

Strategic execution · Merger acquisition and divestiture risks

Acquisitions or dispositions of assets or businesses could disrupt our business and harm our financial condition and stock price. Dispositions of assets or businesses involve risks, including difficulties in the separation of operations, services, products and personnel, the diversion of management's attention from other business concerns, the disruption of our business, the potential loss of key employees and the retention of uncertain environmental or other contingent liabilities related to the divested business.