Advancing

CABOT CORPORATION
SUSTAINABILITY REPORT UPDATE
2013/2014
About Cabot
Cabot Corporation Cabot Corporation is a leading global specialty chemicals and performance materials
company headquartered in Boston, USA. Cabot delivers performance solutions that solve customers’
challenges today and prepares them to meet tomorrow’s needs. Our businesses deliver a broad range
of products and solutions to customers in every corner of the globe, serving key industries such as
transportation, infrastructure, environment and consumer.

We are a business-to-business company with 43 manufacturing facilities in 21 countries, 8 research and

development facilities and 23 sales offices. In fiscal year 2013, we had sales of $3.5 billion and employed
approximately 4,600 people worldwide.

CABOT BUSINESS MODEL

REINFORCEMENT MATERIALS Our Reinforcement Materials segment is a global leader in the

manufacturing of top-quality rubber blacks for increasingly high performing and energy-efficient
tires and specialized industrial rubber products. We bring years of experience and the industry’s
best talent to meet our customers’ needs.

PURIFICATION SOLUTIONS Our Purification Solutions segment is one of the world’s leading producers
of activated carbon products and equipment systems, which are used to purify water, food ingredients,
industrial air emissions, pharmaceuticals and more. Cabot produces over 150 different types of activated
carbon, enabling us to offer the most precise fit and best performance for any application.

PERFORMANCE MATERIALS Our Performance Materials segment offers customized solutions that
move our customers’ products forward. Our global applications development network stands ready
to guide customers to the right product for their needs, whether it is specialty carbons, compounds,
masterbatches or fumed metal oxides.

ADVANCED TECHNOLOGIES Our Advanced Technologies segment produces durable inkjet colorant
dispersions for home, office and commercial printing; versatile aerogel for wide-ranging insulative
applications; game-changing elastomer composites; and sustainable cesium formate products for oil
and gas drilling.

CABOT LABS Our scientists, engineers and researchers work together to nurture ideas, experiment with
new approaches, and help our customers create the next breakthrough innovation. Our new product
development area expands regularly and focuses on the latest technologies, while scouting the next
innovation and upcoming industry trends. Some of our latest work involves using graphenes to help
meet our customers' sustainability challenges.
Advancing
Letter from Martin O'Neill, Senior Vice President
Safety, Health & Environment

I am pleased to present the update to our 2012-2013 Sustainability Report,

“Advancing.” This update highlights our progress on key performance areas through
calendar year 2013. You’ll read about such things as the innovations we’ve introduced
to help our customers solve some of their technical and industry challenges;
advancements in our own process innovations; progress toward our environmental,
health and safety goals; and our efforts to support Cabot communities on a global level.

In the spirit of transparency, this report reflects the first full year of ownership of
our Purification Solutions segment. We acquired Norit in July 2012, which includes
seven wholly-owned manufacturing plants. These sites significantly expanded our
global manufacturing footprint. With this expansion, it is difficult to get a clear sense
of Cabot’s year-over-year performance in certain safety and environmental metrics.
Martin O'Neill Our 2011 data includes what we call our legacy businesses, including Reinforcement
Materials, Performance Materials and Advanced Technologies. Our 2012 data includes
12 months from our legacy businesses, along with annualized data from the
Purification Solutions facilities. Our 2013 data reports on a full year from all
our businesses. Given these differences, some year-over-year changes in
metrics may be due to Cabot’s performance, while others may be attributed to
Cabot’s expanded global footprint. In this report, we have attempted to clarify the
basis for these changes where possible.

Looking ahead, we are undergoing a complete evaluation of our sustainability

goals and objectives. In the near future, we will examine specific goals to measure
our progress on reducing water usage, as well as our progress on emissions
reductions beyond greenhouse gases (GHGs).

I am proud of the progress our company is making in sustainability. I hope you

enjoy reading our report, and I invite you to contact us with your feedback.

Regards,

Martin O’Neill, Senior Vice President

Cabot Corporation
Two Seaport Lane, Suite 1300
Boston, MA 02210 USA
+1 617 345 0100

ABOUT THIS REPORT

This report presents Cabot’s sustainability activities and relevant data from January 2013 through December 2013. All data is reported on a calendar year basis.
However, financial data is reported for Cabot’s fiscal year 2013, which began October 1, 2012 and ended September 30, 2013. Additionally, certain community
projects that we have been involved with in 2014 are discussed.

This report includes information from all wholly-owned Cabot operations, which includes all manufacturing locations, major administrative and regional
headquarter offices and affiliated manufacturing locations in which Cabot has operational control and a greater than 50% ownership interest. Information
is not included for small sales/technical service offices, leased warehouse space managed by a third party, and an unmanned marine terminal.

We have developed and used a variety of systems across our sites to ensure the data provided in this report is consistent and accurate. These systems include our
sustainability reporting database, finance and human resources databases, safety and environmental incident tracking database, and greenhouse gas emissions
data collection systems. All environmental data are determined by direct measurement or estimated by mass balance calculations. Internal processes and stan-
dards were used to evaluate the quality and accuracy of the collected data. Our annual greenhouse gas data is verified biannually by an independent third-party
organization.
Contents

statement from ceo 4 evolving our

business
leading
innovation 6
5
8
environmental

13
progress

setting the standard for safety

15
elevating talent
fostering
communities 17 19 recognition
and awards
 Statement
from Patrick Prevost, President and CEO
Cabot Corporation

I am pleased to present the latest update on Cabot’s Sustainability journey. Throughout our history, we have held the safety
of our people, our neighbors and the protection of the environment as essential parts of who we are as an organization.

We have also recognized our responsibility to ensure a sustainable future goes beyond our site boundaries. We use our
knowledge of particle science and materials to provide our customers with products that respond to our changing world and
enhance the quality of life. Trends in population growth and increased mobility demand that products are created and operated
more efficiently throughout the world. Resource limitations require innovations that provide our customers with clean water, better
insulating materials and new ways to access hard-to-reach natural resources. Aging populations need pharmaceutical products
that are purer and easier to ingest. Cleaner environments require products that efficiently remove pollutants from waste streams.
The opportunities are endless, and the challenges to meet them are complex. Our broad global reach, market-leading products, and
exceptional technical talent and service make us uniquely positioned to help our customers advance in their industries.

Our newest products demonstrate Cabot’s strength as a sustainability partner. Our new carbon black materials are designed
to help achieve greater fuel efficiency and material durability for tire applications. Our activated carbon products are being used to
purify air emissions from coal-fired power plants and to provide clean water. Our high-performance cesium formate brine products
provide an environment-friendly oil drilling and completion fluid, which is biodegradable and reclaimable. Our fumed silica products
help manufacturers produce pharmaceutical products more efficiently and our recent work in graphenes enables advanced battery
manufacturers to achieve superior cell performance.

Like our products, our own processes have to become more efficient, emit less and maintain a high degree of safety for our
people and our neighbors. We are making progress on our goals to reduce greenhouse gases and energy intensity — goals that are
designed to challenge our normal way of thinking about our facilities. We are employing new process technology in our carbon
black plants that will increase the efficient use of our raw materials. We are implementing energy recovery projects that improve our
efficiency and reduce others' reliance on fossil fuels.

We have also committed, through our agreement with the U.S. Environmental Protection Agency, to implement
environmental controls that will reduce our emissions in the United States. Some of these controls have already been deployed
in our newest facilities in China and Brazil. We believe these commitments and investments demonstrate our industry leadership in
this area, while sending a strong signal to our customers that we are committed to helping them continue to grow their businesses
over the long term.

We believe in being strong contributors to the communities where we operate. We have continued to focus on improving the
competitiveness of our businesses through strategic expansions and acquisitions. We recently completed the construction of our
new carbon black plant in Xingtai, China, and acquired our partner’s equity stake in our Mexican carbon black manufacturing joint
venture, NHUMO. These developments are a major step forward in our strategy to enhance Cabot’s global presence in the carbon
black industry, and strengthen our position in emerging and growing markets. Finally, an important part of our commitment will be
to foster innovation, technology and customer centricity to grow all of our businesses sustainably. We are convinced that this is the
way to create sustainable jobs for our employees and develop long-term value for our shareholders.

Our sustainability story has been dynamic, and marked by an ever-evolving set of conditions in how we do business. We hope
this report gives you a clear view of our sustainability journey — one in which we detail our progress, and share our experiences and
challenges with you.

Sincerely,

Patrick Prevost

4
Evolving Our Business

We are committed to delivering earnings growth

through leadership in performance materials.

To deliver earnings growth through leadership in and South America by adding 140,000 metric tons of annual
performance materials, we must continuously strengthen carbon black manufacturing capacity. Furthermore, this
our businesses and operations. transaction will help strengthen our position in growing
markets, expand our customer offerings, and create value
In September 2013, we completed the construction for our shareholders.
of our manufacturing facility in Xingtai, China, which
provides us with an additional 130,000 metric tons of In our Purification Solutions segment, we supply
annual capacity. With this addition, Cabot’s overall carbon activated carbon solutions to some of the largest U.S.
black manufacturing capacity in China increased by 25%. power utility companies. We also continue to win contracts
Through the use of state-of-the-art technology, we will be to help these companies comply with environmental
able to supply Cabot’s ultra-reinforcing products, which are regulations that require utilities to reduce the quantity of
key materials in the production of high-performance tires air pollutants they release, such as the impending Mercury
for the Chinese and Asia-Pacific markets. In addition, we and Air Toxics Standards (MATS). With the MATS implemen-
have invested heavily in advanced emissions control and tation date of April 2015 approaching, contracting activities
energy efficiency technology to minimize our environmental for our activated carbon solutions are accelerating as
footprint and simultaneously reduce energy consumption. shown by several key customer wins. Cabot has made
significant investments to develop our new lignite mine in
We also completed the acquisition of the equity stake Texas to secure our feedstock supply. We believe these
owned by Grupo Kuo S.A.B. de C.V. in our Mexican carbon actions will help ensure Cabot continues to be the
black manufacturing joint venture, NHUMO, S.A.de C.V., in partner of choice for the coal-fired utilities industry in
November 2013. This strategic business will help us meet meeting these new regulations.
the growing demand for carbon black throughout North

5
Leading Innovation

Innovation has played a critical role in our Innovation has played a critical role in our company’s
company’s success, and we recognize that success, and we recognize that innovation and technology
innovation and technology are key drivers are key drivers for sustainability. Our focus is to continuously
for sustainability. improve what we do to support our customers, remain
competitive, and contribute to a more sustainable society.

Today, we are working on creating

tomorrow's opportunities.
The world around us is rapidly evolving. To remain competitive,
we must find new solutions to everyday problems, and meet our
customers' most demanding challenges. With a focus on
value-driven innovation, we continually invest in the development
and deployment of new products and services.

Our customers share our view on the importance of sustain-

ability. End-market consumers are increasingly demanding better
performing and more efficient products that are produced in a more
sustainable manner. We work closely with our customers to help
them achieve their business and sustainability goals by developing
new products that reduce fuel consumption, improve water quality,
increase performance, and minimize their environmental impact.
Furthermore, our global research and development network gives
our customers the full depth of our technical expertise, with local
support to help them meet new challenges.

We are actively developing new products for a variety

of applications including silicones, environmental solutions and
insulation materials. We also continue to invest in technologies
for applications such as high-performance tires, energy storage
and toners. A number of our recently introduced products are
for specialty applications related to our Performance Materials
segment. For instance, the VULCAN® XCmax™ family of
superconductive specialty carbons is used in wire, cable and
electrostatic dissipation with a range of performance well beyond
that of conventional specialty carbon blacks. For printing, our
ATLAS™ silica composite particles represent a new category of
materials designed to greatly improve image quality and
consistency of energy-efficient toners in digital printing devices.

PROPEL™ PRODUCTS DELIVER LOWER ROLLING RESISTANCE

AND GREATER DURABILITY FOR TIRES
In February 2014, we launched two new carbon black products
for tire tread applications that will create more value for our
customers, while reducing impacts to the environment. PROPEL™
E7 carbon black is designed for fuel efficiency. It enables tires
to achieve lower rolling resistance without sacrificing tire
durability. PROPEL™ D11 carbon black is engineered to provide
higher durability. It helps create tire treads that resist cutting,
tearing and abrasion, and extends the useful life of a tire.

6
ADVANCING CABOT CORPORATION 2013/2014 SUSTAINABILITY REPORT UPDATE

NEW TEST BED WILL ALLOW FOR FASTER INNOVATION IN

COMMERCIAL PRINTING APPLICATIONS
Our Inkjet Colorants team has many great new ideas for the
high-speed commercial printing market. However, testing these
ideas has always been a challenge. Due to its large size, a
typical commercial press can cost millions of dollars and use
rolls of paper weighing as much as a ton. Given this, it has
been difficult to install a commercial press for application
development testing.

In November 2013, we installed a new test bed in Billerica,

USA that is much smaller than a commercial press — but still
produces realistic results. Along with creating a test bed, we
have been developing formulations to test our capabilities so
we can engineer and test both dispersions and inks. This work
has advanced our material science understanding and product
development for the business.

CABOT SHARES IDEAS WITH NOBEL LAUREATES THROUGH LINDAU

INNOVATION FORUM
Customers value Cabot for our technical expertise. We go
beyond just problem solving by bringing industry insights
to our customers that are difficult to find elsewhere. We are
involved in innovation discussions at a global level through our
participation in the Lindau Innovation Forum in Lake Constance,
Switzerland. This annual event brings together Nobel Laureates,
international business executives, and some of the world’s most
accomplished graduate students to discuss ways to advance
innovations that can have a major impact on modern society.
Yakov Kutsovsky (left in photo), Cabot senior vice president and
chief technology officer, attended last year’s conference, in
which participants held an open discussion on the concept of
green chemistry and its applicability in the industry today and in
the future. Cabot has elected to become a Lindau event sponsor
to help support this type of global innovation dialogue.

CABOT DELIVERS KEYNOTE ADDRESS AT MAJOR INTERNATIONAL

GRAPHENE CONFERENCE
Cabot Principal Scientist Dr. Angelos Kyrlidis gave the
keynote address at IDTechEx Graphene LIVE! USA 2013, a major
international graphene conference in California. This event, held
in November 2013, covered the applications and latest technology
developments of graphene — a performance-enhancing
material that has high electrical and thermal conductivity
and is mechanically strong. Cabot is working closely with
its key customers to further validate these performance
improvements, especially as they relate to energy storage,
such as batteries and supercapacitors. Most recently,
graphene products were added to Cabot’s portfolio of LITX™
conductive additives for batteries.

7
Environmental Progress

We remain committed to reducing our impact on the

environment through continuous improvement in our
operations.

We remain committed to reducing our impact on the environment through continuously improving our operations by
developing and implementing programs, practices and guidelines within our businesses. Our current priorities include reducing
our greenhouse gas emissions and energy intensity, as well as our overall environmental performance.

Energy
We continue to make progress on reducing the energy Energy Intensity
needed to make our products. We have set a goal to reduce our (GJ energy used/MT product)
energy intensity (the amount of energy needed to make a unit of
product) by 10% by 2020 from our base year 2005. Through the
end of 2013, we have achieved more than 40% of this goal. Our 65.1 63.1 62.4 58.6
Fumed Metal Oxides business has already exceeded their 2020
energy-reduction goal by more than 25%, reducing the amount
of energy needed to produce a metric ton of product to 34.6
gigajoules. In addition, our carbon black operations have realized
more than 48% of their 2020 goal. These accomplishments have
been achieved through continued implementation of operational 2005 2012 2013 2020
excellence, introduction of more energy efficient production baseline goal
facilities and implementation of energy recovery processes.
While we have realized significant decreases in our energy
intensity in some businesses, the intensity associated with our
mining operations has increased due to a decrease in output.

Our joint venture partners, neighboring facilities and the

public utility grids also benefit from Cabot’s energy improve-
ments. By investing in state-of-the-art energy recovery facilities
within our manufacturing plants, these groups are provided
steam and electricity from the recovery of useful energy in our
waste gases that would otherwise be lost. This reduces their
need for fossil fuels to generate steam and electricity. In 2013,
Cabot facilities provided more than 7.4 million gigajoules of
energy to our partners through the recovery of energy from our
waste gases.

8
 ADVANCING CABOT CORPORATION 2013/2014 SUSTAINABILITY REPORT UPDATE

Greenhouse Gases

Carbon dioxide (CO2) is the primary greenhouse gas of integrating the Purification Solutions segment into our
(GHG) emitted from Cabot’s manufacturing facilities. Other long-term GHG strategy and goal. Cabot’s current GHG
GHGs, namely methane and nitrous oxide, are also emitted reduction goal, which was established prior to the
from Cabot’s operations, but in lesser quantities. The other acquisition of our activated carbon business, is to achieve
GHG emissions are released in extremely low quantities or a 20% reduction in total GHG intensity by 2020, using 2005
not emitted at all and therefore are not discussed in this as our baseline year. Through 2013, we have realized 30%
report. Collectively, the quantities of all three GHGs of our goal, inclusive of Purification Solutions. We are eager
are reported as CO2-equivalents (CO2-e). GHG emissions to continue strengthening our emission reduction efforts
were calculated according to the Greenhouse Gas so that we may continue to make strides toward our goal in
Protocol established by the World Resources Institute and coming years.
World Business Council for Sustainable Development. Data
was compiled by corporate databases and from surveys of In addition, as noted in the Energy section, our
Cabot facilities. Cabot’s GHG data collection systems, production of electricity and steam helps offset GHG
methodology, calculations and quality assurance emissions that would otherwise be generated to meet the
processes are verified biannually by a third party to needs of our joint venture partners, neighboring facilities
ensure an accurate accounting of our GHG emissions. and the public utility grids. In 2013, the energy we supplied
offset more than 410,000 metric tons of CO2-e of GHG
Total CO2-e emissions from our manufacturing, emissions from their facilities, which is equivalent to
research and administrative facilities for calendar year about 10% of our total emissions.
2013 were 4.44 million metric tons, a 6% increase over
2012 levels. This number is higher due to the full-year
inclusion of emissions from our seven Purification Solutions GHG Emissions (million MT of CO2-e)
manufacturing facilities. A more consistent year-over-year
comparison can be seen across our carbon black facilities,
0.29 0.32 0.34
which represent Cabot’s largest business. At these sites,
Cabot achieved a 1% decrease in actual GHG emissions in 3.84 3.88 4.10
2013, despite increasing our product output by 1% during Scope 1 Emissions
the same period. Scope 2 Emissions

As total volumes vary from year to year, a more useful

emissions performance measure is GHG intensity. This
metric provides more clarity on how a company is actually
managing its emissions. We calculate this by normalizing 2011 2012* 2013*
our total GHG emissions in metric tons to the corresponding
amount of our products produced in metric tons. In 2013,
GHG Intensity (MT of CO2-e / MT of Production)
our total (direct plus indirect) GHG intensity increased 2%
over 2012 levels, to 2.39 MT CO2-e/MT product. This increase
is attributable to the inclusion of the Purification Solutions 0.16 0.18 0.18
sites. Excluding these sites, Cabot decreased its total
2.09 2.16 2.21
GHG intensity by 1%, to 2.19 MT CO2-e/MT product, which
represents over 40% of our 2020 goal.

As we learn more about the activated carbon

manufacturing process, we anticipate developing
process improvements and identifying efficiencies that will
help us decrease our carbon footprint from our activated 2011 2012* 2013*
carbon manufacturing operations. We are in the process
* with Purification Solutions

9
Environmental Progress
Waste

We generated approximately 480,000 metric tons of waste in 2013, of which 77% (370,000 metric tons) was classified
as hazardous and 23% (110,000 metric tons) was classified as non-hazardous. Compared to 2012, the total amount of waste
decreased 23% and the total waste intensity (i.e., metric ton of waste generated per metric ton of product produced) decreased
24%. The large drop in waste generation can be partly attributed to the successful implementation of a multi-year plan to reduce
hazardous waste at our Tuscola, USA fumed silica facility.

Hazardous Waste Generation Non-Hazardous Waste Generation

0.20
0.40 0.42
0.37

0.22 0.23 0.20 0.11 0.11

0.07 0.06
0.04
2011 2012* 2013*
2011 2012* 2013*

Hazardous Waste Total Hazardous Waste Non-Hazardous Waste Non-Hazardous Waste

(million MT) Intensity (MT/MT) Total (million MT) Intensity (MT/MT)

* with Purification Solutions

2013 Hazardous Waste Disposal Methods 2013 Non-Hazardous Waste Disposal Methods

Other Methods 0.4% Re-use/Recycling/Recovery 8.2%

Re-use/ Other Incineration/
Recycling/ Methods Use as Fuel 3.2%
Recovery 1.1% 0.5%

Deep Well Injection Landfilling

98.5%
98.5% 88.1%

10
 ADVANCING CABOT CORPORATION 2013/2014 SUSTAINABILITY REPORT UPDATE

Water Consumption and Discharge

In 2013, Cabot facilities used 50.3 million cubic meters Water Usage and Intensity
of water obtained from a variety of sources, including
surface water, private or public water supplies, or water
extracted from the ground. Our manufacturing facilities 50.2 50.3
49.2
use water for reactor quenching, pelletization of products,
equipment cooling, steam activation of carbon, product 27.9 27.1
washing and air pollution control. While our actual water 26.7
consumption increased in 2013 by a negligible amount from
the previous year, the amount of water needed to produce 2011 2012* 2013*
our products decreased by 3%. In our Reinforcement
Water Use Total (million m3)
Materials, Performance Materials and Advanced
Technologies segments, we recognized reductions of more Water Use Intensity (m3/MT)
than 10%. We achieved this through water-use reductions
and increased water recycling.
Wastewater Discharge and Intensity
In cases where we are not able to recycle water, our
wastewater is discharged in accordance with applicable 38.7 39.0
permit requirements and/or local regulations. Approximately 38.3
39 million cubic meters of wastewater were released
21.0 21.3 20.8
in 2013, which is 1.8% greater than in 2012. Despite the
increase in wastewater discharge volume, wastewater 2011 2012* 2013*
intensity (i.e., the amount of wastewater discharged per
metric ton of product produced) decreased 2.3%, which is Wastewater Discharge Total (million m3)
reflective of our improvements in using water resources
more efficiently. Wastewater Discharge Intensity (m3/MT)

An example of where we have reduced water-use * with Purification Solutions

intensity is at our carbon black manufacturing facility in
Ville Platte, USA. Large volumes of water are used for non-
contact cooling as well as reactor quenching. Process 2013 Water Sources
water is obtained from two aquifers by a network of
groundwater wells. Plant engineers developed a system Groundwater 4%
to capture the once-through, non-contact cooling water
Purchased
and use the water for quenching. This process modification
will enable the facility to reduce its wastewater effluent 26%
discharge by 67% and reuse nearly 600,000 cubic meters 70% Surface
of water annually, conserving groundwater resources for
the local community that also relies on groundwater for its
potable water needs.

Over the last two years, Cabot embarked on a strategic

water management plan aimed at identifying facilities that 2013 Wastewater Destinations
we consider priorities for improved water management
practices. We are currently in the process of developing Public/Private Groundwater 0.2%
detailed water balances at each of these facilities to Sewer 5.5%
Other Destination 0.5%
identify and execute water conservation and recycling
projects. Our intent is to implement similar improvements
at our other facilities, reducing our water demand globally
wherever we do business. Surface

93.8%

11
Environmental Progress
Environmental Non-conformances Agreement with USEPA
and Expenditures for Emissions Control
Our Drive to Zero initiative, which sets the goal of Cabot entered into an agreement with the U.S.
zero injuries across all Cabot operations, extends to the Environmental Protection Agency (USEPA) and the
management of our environmental programs. Cabot Louisiana Department of Environmental Quality regarding
facilities report and investigate all environmental our three carbon black manufacturing facilities in the United
non-conformance (ENC) events. We define an ENC as States. Cabot was the first carbon black manufacturer to
a reportable spill or release, a notice of violation, a settle with the USEPA to address growing concerns
deviation from a regulatory requirement or a public regarding emissions from the industry. The agreement
complaint. Each ENC is thoroughly investigated to covers nitrogen oxides, sulfur oxides and particulate matter
determine the root cause and to implement corrective emissions. As part of the agreement, Cabot paid $975,000
actions to minimize the possibility of future events. to the USEPA and the Louisiana Department of
Monitoring ENCs enables us to be accountable for our Environmental Quality in April 2014 and will also invest
environmental performance, share learnings throughout $450,000 toward approved environmental mitigation
the company and prevent recurrence of incidents. projects that will be focused on energy efficiency
improvements in the communities where our three U.S.
Our continued focus on environmental compliance carbon black plants are located.
has been extremely successful in minimizing ENCs over
the past several years. The number of ENCs within the Cabot also committed to spend approximately $85
Cabot business segments, excluding Purification Solutions, million over the next six years to implement advanced
has decreased by 47% in the last three years, from 30 ENCs control technology and continuous emissions monitoring
in 2011 to 16 ENCs in 2013. at the three sites. The implementation of these new
controls will reduce our NOx emissions by 90% and our SO2
We are also tracking ENCs in the Purification Solutions emissions by 95% at our Louisiana facilities, and reduce
segment since its acquisition in mid-2012. For calendar year our NOx and SO2 emissions by over 50% at our Texas facility
2013, that business segment recorded 236 ENCs for the from the 2010 baseline.
full year, which is 4% higher than the 2012 annualized ENC
count of 225. In response, we have developed a continuous Our continued investment in advanced control
improvement plan for the Purification Solutions facilities technologies for our U.S. carbon black plants will enable us
that is focused on infrastructure improvements that will to grow our business in North America and affirms Cabot's
drive compliance with permit conditions and prevention of leadership as a responsible carbon black manufacturer.
spills and releases.

While Cabot paid fines totaling $89,500 for alleged air R&D Process Improvements
emission violations in 2013, we continue to invest in our
facilities to improve environmental performance. In fiscal for Sustainability
year 2013, we expended $22 million in our facilities and
expect to spend $23 million in fiscal year 2014 related to We continue to advance our manufacturing efficiency
these environmental investments. through research and development (R&D) efforts.
Working to maximize the use of process energy, Cabot
R&D is investigating technologies that will extract energy
Cabot Environmental Non-Conformances* that is otherwise wasted and recover it, improving our
energy and GHG intensities while realizing gains in product
2011 438 yield. Some of these technologies will produce additional
benefits through the reduction of water use in the
2012 240 manufacturing process. The implementation of these
technologies in the coming years will allow Cabot to
2013 252 continue to lead the industry, reducing our environmental
footprint and support our customers’ sustainability goals.

* Purification Solutions data estimated for 2011 and 2012

12
Setting the Standard for Safety
Title

With an ultimate goal of zero

injuries, we have a deep sense of
responsibility for the safety of our
employees, contractors and the
visitors to our sites, and we believe
all injuries are preventable.

In 2013, a major safety focus for us has been Process Safety

implementing Cabot safety standards at all Purification
Solutions sites. While the company’s total number of An important measure of process safety performance
recordable incidents and lost-time cases increased is the number of process safety events (PSEs). We analyze
slightly in 2013 over 2012 levels, Cabot achieved two root causes for PSEs so we can take actions to prevent
important safety achievements last year. First, we future incidents. To increase our transparency, we have
are seeing meaningful progress with the Purification begun to report externally our PSEs, using the widely known
Solutions segment. The segment’s number of Center for Chemical Process Safety (CCPS) definitions. The
recordable incidents has declined, and we have seen CCPS defines a PSE as a “release of material or energy from
a reduction in the number of severe injuries. Second, a process that resulted in injury, fire or explosion, or release
despite the challenges in integrating a new business, of flammable, combustible or toxic chemicals." Based
the entire Cabot organization continued to operate at on the severity of an incident and other criteria, PSEs are
world-class safety levels, as evidenced by injury rates subdivided into tiers to provide consistency in reporting and
that are better than our peer group companies. measuring performance across the chemical industry.

Cabot has a strong internal safety, health and In 2013, Cabot facilities had zero Tier 1 and one Tier 2
environment audit program in place. This program verifies PSEs.
that all manufacturing sites are in compliance with local
regulations and Cabot standards as well as adopting best Process Safety Events
SH&E management practices.
2011 0/0 CCPS Tier 1 events
To further improve our safety performance, we have
put in place a number of steps to accelerate the overall CCPS Tier 2 events
2012 0/1
long-term trend to reduce workplace safety incidents,
including an assessment of our safety culture and the
use of leading indicators at all sites. 2013 0/1

Total Recordable Incident Rate* Each process safety event is fully analyzed to
understand its root cause. To help ensure incidents
.44 occurring at a given facility are not repeated at another,
.41
the analysis of each incident and the associated
.35 .29 lessons learned and corrective actions taken are shared
globally.
* Purification Solutions data
estimated for 2011 and 2012

2011 2012 2013

13
Setting the Standard for Safety

CABOT NORTH AMERICA SITES EARN RESPONSIBLE CARE®

CERTIFICATION
In 2013, Cabot successfully completed Responsible Care
14001® certification audits at five U.S. locations, including
Boston, Alpharetta, Ville Platte, Tuscola and Albuquerque. These
audits were conducted by an independent third-party firm. With
these audits, Cabot has achieved RC 14001® certification for all
of its covered sites in North America. “This certification provides
assurance to our business partners, shareholders and neighbors
that we have the systems in place to sustain excellence in
Safety, Health & Environmental (SH&E) performance over time,”
says Martin O’Neill, senior vice president, SH&E. “It is another
verification for our customers, neighbors and regulators that our
programs and employees are constantly working to improve our
SH&E performance.”

CABOT ACHIEVES 10-YEAR SAFETY MILESTONES AT OUR

MANUFACTURING FACILITIES IN INDONESIA AND EUROPE
Two Cabot facilities recently completed 10 consecutive
years without a recordable injury – our carbon black facility in
Merak, Indonesia and our aerogel facility in Frankfurt, Germany.

NEW CHINA FACILITY BUILT WITHOUT A SINGLE

RECORDABLE INCIDENT
In 2013, we opened our new carbon black facility in Xingtai,
China. The Xingtai team worked together for a total of 3.3 million
hours in building the plant, without incurring a single recordable
injury. Patrick Prevost presented the Xingtai team with a
“President’s Club Award” for the achievement.

RHEINFELDEN TEAM BUILDS INNOVATIVE HANDS-ON

SAFETY TRAINING
At Cabot’s fumed silica plant in Rheinfelden, Germany, the
team greatly enhanced its life-critical standards training in 2013.
The site leadership team brought in experts to lead sessions
on fire extinguisher and confined space entry training. The
Rheinfelden team also introduced a multi-faceted training
platform that emphasizes hands-on learning over classroom
discussions. “The best way to learn something is to actually
do it,” said Raj Ahuja, Cabot Fumed Metal Oxides operations
director. “Our program in Rheinfelden is designed to help
our people learn these standards in a very active and
engaged way.”

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Elevating Talent

About Our
People

Cabot employees are at the core of our business. Our Cabot Workforce Total (as of 12/31/2013)
customers often choose Cabot as a supplier because they
know our people deliver consistently high-quality products
and excellent customer service. Our customers trust the Asia Americas
Cabot team to help them solve their toughest challenges Pacific
today, and to help them prepare for growth tomorrow. 23%

As of December 31, 2013, we employed 4,648 employees,

nearly all of whom held permanent (99.1%) and full-time Total Number of Cabot
(98%) positions. employees: 47%
4,648
Where possible, we strive to hire employees from the
communities where we operate. We believe we support
the sustainability of a community by providing jobs to the 30%
people who live there. This practice also makes it easier for EMEA
customers and suppliers to work with Cabot, and for our
neighbors to build relationships with us. In the 2013
calendar year, we hired about 370 employees globally.

Talent Management
Evaluating Performance
Cabot’s Performance Based Management (PBM) approach supports the company in achieving our long-term strategy and
objectives while serving as an important component of our talent management philosophy.

The PBM approach is a continuous improvement process that is owned by managers and supported by the company’s
most senior leadership team. Managers are responsible for identifying the specific contributions their teams must make to the
organization, while supporting their employees to help them achieve or exceed these expected results. As part of this process,
managers are required to hold and document performance discussions twice per year. During 2013, leaders reported that they
delivered a performance review to approximately 90% of employees.

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Elevating Talent

TRAINING
We give our employees access to training and
professional development programs. We want our people
to develop their skills so they can excel in their current roles
and prepare for even greater responsibilities in the future.
We also provide training opportunities to our supervisors to
help them become stronger leaders. Our belief is that when
we help our people grow professionally, we help Cabot
become a workplace of choice.

Cabot currently tracks training on a site-by-site

basis. In 2013, our employees received an average of up
to 36 hours of training, depending on their role in the
organization.

Average hours per employee

Administrative 16

Professional 29

Technical 36

Other 15

CODE OF BUSINESS ETHICS We require all employees to participate

in training annually on Cabot’s Code of Business Ethics, which is
provided in the employee’s local language. The Code sets forth
guidelines for how we conduct business as a company and is
rooted in our shared Cabot Values. In 2013, we also required employees
to complete an on-line training program concerning anti-corruption.
These training sessions help ensure that Cabot employees operate
with integrity, respect, excellence and responsibility.

CABOT LAUNCHES GLOBAL APPLICANT TRACKING SYSTEM CABOT CHINA OPENS LIBRARY
At Cabot, we understand that people have choices on where to The Cabot China library was officially
apply their talents. When prospective employees apply for a job opened in December 2013. With an
at Cabot, we want to create a positive experience for them. In initial book collection totaling 120, the
2013, we piloted a new global applicant tracking system that books cover 16 categories, including
will help achieve this goal. The new system will keep applicants economic management, chemistry and
regularly updated on their status. It will also allow Cabot to make chemical engineering, history and
its internal processes more efficient and cost-effective. Cabot culture, lifestyle and health. All Cabot
piloted this new system in the United States and China, and is employees are invited to read and
planning to introduce it globally in 2014. borrow books from the library.

16
 Fostering Communities
Title

We believe giving our time,

money and talent is an
important part of our
sustainability strategy and
can make a positive impact
on the communities in
which we operate and live.

Giving our time, money and talent is an important part of our sustainability strategy and can make a positive impact on the
communities in which we operate and live. Our corporate giving includes cash gifts from Cabot’s community groups and the
Cabot Corporation Foundation, combined with volunteerism by our employees worldwide. From January 2013 through May 2014,
we have given almost $2 million in charitable contributions through cash and in-kind donations.

Funding from the Cabot Corporation Foundation is provided to a diverse group of organizations focused on improving
science and technology literacy, community improvement initiatives and health and human service programs. To ensure
Cabot’s corporate giving is meaningful to employees at our various locations, a significant portion of the Foundation’s total
giving is provided to organizations identified and sponsored by our facility general managers and/or site community relations
teams. The organizations are typically ones with which the site has developed or is developing an ongoing relationship.

Many of our efforts are focused on inspiring young students to develop and sustain an interest in science, technology,
engineering and math (STEM) subjects. This is a cornerstone not only for our business, but one that will help ensure future
innovation and technology development.

Community Highlights
MUSEUM OF SCIENCE TRAVELLING PROGRAM AT THE CONDON SCHOOL
In February 2014, Cabot sponsored the Boston Museum of Science’s
Traveling Program — Electromagnetism visit to the Condon Elementary
School in South Boston, USA. More than 150 fourth-grade students
participated in an engaging and electrifying live presentation facilitated
by a science instructor. Using high-tech museum equipment, students
explored voltage, current, resistance and the interrelationship between
magnetism and electricity.

TIANJIN OPEN DAY & RESPONSIBLE CARE SUMMER CAMP

Cabot opened its doors to the local community in Tianjin, China
during an Open Day event and Responsible Care Summer Camp that was
organized with the Association of International Chemical Manufacturers. The
events were held to help increase the public’s understanding of chemistry
and chemical engineering enterprises, and helped foster a new image of
the chemical industry. Students from four local universities, government
officials, community members and media gained an understanding of
Cabot’s products, businesses and corporate social responsibility
achievements.

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Fostering Communities

UMASS LOWELL – UTEACH PROGRAM

The Cabot Corporation Foundation provided funding to support
the first UTEACH program in the New England area, at the University
of Massachusetts Lowell campus. UTEACH is designed to give
students majoring in STEM subject areas the opportunity to earn
a STEM teaching minor with their bachelor’s degree, as well as
obtain an initial license to teach in those areas at the middle-
and high-school level.

MÁUA FACILITY HOSTS COMMUNITY EVENT

In September 2013, Cabot hosted a community event in
Máua, Brazil, to discuss the company’s commitment to safety,
health and the environment. The company introduced the site’s
new employees and talked about Cabot’s environmental controls
and social programs.

CITY YOUTH CENTER IN RHEINFELDEN, GERMANY

Last fall, the Cabot Corporation Foundation donated funds to
create a new youth center in Rheinfelden, Germany. The center is
supported by Cabot’s local team. About 160 young people visit the
center every weekend.

CABOT JIANGXI VISITS AICHENG ELDERLY NURSING HOME

Members of Cabot’s Jiangxi, China facility visited the residents
of the Aicheng Elderly Nursing Home in January 2014. The group
spoke with residents about their care, and donated two washing
machines to the nursing home.

NEW PLAYGROUND IN VALMEZ, CZECH REPUBLIC

The Cabot Corporation Foundation provided funds to the town
of Valašské Meziříčí (Valmez), Czech Republic, for the construction of
a new playground in the center of town. The funds were presented
during a meeting between Cabot President and CEO Patrick Prevost
and the Mayor of Valmez in September 2013. The playground will
include an innovative game system designed to look like a pirate
ship, which will encourage children to climb and spark their
imaginations while enjoying the outdoors.

CABOT PROMOTES EMPLOYEE HEALTH AND WELLNESS WHILE

SUPPORTING OUR COMMUNITIES
The Cabot Corporation Foundation works to provide employees
with meaningful volunteer opportunities that instill a sense of pride
and community engagement. In the last year, employees across
the globe participated in various charitable health events, including
the Pan-Mass Challenge, which supports the Jimmy Fund for cancer
research (Boston, USA); the Susan G. Komen 3-Day Breast Cancer
walk (Alpharetta, USA); the Pyreneen Challenge cycling event, which
supported research relating to energy metabolic diseases (Botlek,
the Netherlands); the American Diabetes Association cycling event
(Alpharetta, USA); and the Icycle spinning event (Boston, USA), which
raised funds to address homelessness in the Boston area.
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Recognition and Awards

Recognition

PATRICK PREVOST NAMED 2013 “RESPONSIBLE CEO OF THE YEAR”

In October 2013, Corporate Responsibility Magazine named Cabot CEO and President Patrick Prevost as one of five
recipients of its 2013 “Responsible CEO of the Year” award. The annual awards are presented to CEOs across industries that
visibly exceed standards in the areas of employee relations, environmental impact, human rights, philanthropy and corporate
responsibility practices. In determining the winners, judges considered several dimensions, including the scope of the CEO’s
impact on their organization and community, the extent to which the CEO drove this initiative, and the individual reputation or
professional risk taken by the CEO.

Since joining the company in 2008, Prevost has been focused on increasing the company’s commitment to sustainability.
Since then, Cabot has made significant process improvements and investments to its own manufacturing operations, and has
introduced new products and technologies to help its customers be successful. With the acquisition of Norit in 2012, Prevost
sought to reshape Cabot’s product portfolio in a way that would allow the company to more powerfully participate in future
sustainability-related growth. The acquisition enhances Cabot’s portfolio with diversification into purification products and
solutions to serve the world’s rapidly growing need for clean air and water.

“I firmly believe responsibility goes beyond just our own manufacturing operations. At Cabot, we approach our social
responsibility initiatives with a collaborative mindset and focus on product innovation, process safety, environmental
excellence, operational efficiency and more to help drive us toward a more sustainable future,” said Prevost. “I am honored
by this recognition, which ultimately speaks to Cabot’s increasing commitment to corporate responsibility and the hard work
of our employees around the globe.”

Cabot continues to increase its transparency as evidenced by its long-term greenhouse gas emissions targets,
participation in the Carbon Disclosure Project, and the release of its Global Reporting Initiative™ certified sustainability report.

CABOT WINS TOP ICIS INNOVATION AWARD

Cabot earned the top innovation honor in the 2013 ICIS Innovation Awards program in October 2013. Cabot’s aerogel was
named the winner of “Best Overall Innovation” and “Innovation with the Best Environmental Benefit” for use in eco-friendly
building and construction applications.

ICIS (Independent Chemical Information Services) is the world's largest petrochemical market information provider,
with more than 30 years of experience in providing pricing information, news, analysis and consulting to buyers, sellers
and analysts. The ICIS Innovation Award has been presented annually for the past decade.

The ICIS judging panel of leading industry experts recognized Cabot’s use of open innovation and extensive collaborations
to bring to market a technology that is poised to have a dramatic impact on improving energy efficiency, reducing carbon
footprints and mitigating energy costs in buildings around the world. Cabot’s aerogel technology is currently being used in a
range of commercial and residential building and construction products including plasters, boards, day-lighting systems,
tensile roofing and coatings. These aerogel-containing products are key enablers in meeting even the most stringent regional
and industry building energy standards and codes.

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Recognition and Awards

Awards

Throughout the years, we have received hundreds of awards from publications and organizations that
recognize the value we deliver. Cabot’s people, innovation, products and corporate citizenship efforts continue
to be recognized by a variety of organizations globally.

 Billerica, USA - Mass High Tech (MHT) Women to Watch, Wendy Pryce Lewis
 Cabot China - Giti Tyre, Outstanding Supplier
 Campana, Argentina: Recognition for the 40th Anniversary of the Interindustrial Committee on
Environmental Conservation Zárate-Campana
 Cartagena, Colombia – National Safety World Class Organization 2011-2012. May/2013
 Cilegon, Indonesia - Gold Award, Komite Nasional Responsible Care Indonesia
 Corporate Responsibility (CR) Magazine, 2013 Responsible CEO of the Year, Patrick Prevost
 ICIS Innovation Awards 2013, Best Overall Innovation and Innovation with Best Environmental
Benefit, for aerogel
 Midland and Haverhill, USA – Responsible Care 14001 Recognition
 São Paulo, Brazil - Revista Borracha Atual (major rubber industry magazine), Top Rubber Awards -
Best Reinforcement Filler Supplier (sixth consecutive year)
 Ville Platte, USA - LCA SAFE Award Class 1 finalist

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