Aspen Technology : Download our 2022 Report

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2022 Report

Table of Contents

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Business

EnvironmentalImpact

Social

Impact

Governance

Look

Ahead

From Our CEO

In 1987, the United Nations Brundtland Commission defined sustainability as "meeting the needs of the present without compromising the ability of future generations to meet their own needs."

That makes sustainability personal for me and defines AspenTech's ethics as well. A future generation sits across the dinner table from each of us every evening. Future generations come to work at the company we lead every day. And those generations are a growing part of the community we live in. Ensuring they can meet their needs is part of the ethic that drives me and us as business leaders.

And we're not alone. Companies and their leaders across nearly every sector are incorporating increasingly ambitious sustainability goals in their business strategies to help offset the impact of a growing global population with increasing standards of living; and many of them are AspenTech's customers. Institutional investors are applying sophisticated sustainability criteria to their investment decisions. And talented workers of all ages today want to join companies that are serious about environmental stewardship, social fairness and ethical governance.

For all those reasons, sustainability is integral to the way we do business at AspenTech.

It is a responsibility, to be sure. Even as a software company with a relatively modest environmental footprint, we constantly look for ways to lower our use of energy and water as well as to reduce our greenhouse gas emissions and plastic waste.

But sustainability is also a highly profitable opportunity for our company.

The reason is easy to see. In the United States alone, manufacturers consume 30 percent1 of the nation's energy and draw 18 billion gallons2 of fresh water every day. Industry is the source of 21%3 of the world's greenhouse gas emissions, and the world's economy generates 300 million tons4 of plastic waste every year.

In short, producing the goods and services that make modern life possible imposes an enormous environmental impact. These numbers will only continue to rise as the global population is expected to increase by two billion people by 20505, leading to a global energy demand growth of 50%.6 Companies, trade organizations, governments and investors recognize the urgent need to reduce that impact.

The movement is led by the global energy transition - the shift from an energy system dependent almost exclusively on hydrocarbons to one that relies more heavily on renewable energy sources like wind, solar, hydrogen and geothermal and that deploys technologies like carbon capture and storage (CCS) to neutralize the emissions from oil and gas.

AspenTech is positioned to help do all of that. Our first principles and artificial intelligence based technologies, coupled with our domain expertise and modeling systems are all about optimizing industrial assets, processes and use of resources. Our software solutions use sophisticated optimization algorithms, advanced data analytics and machine learning to identify - and even anticipate - unproductive processes, wasteful breakdowns, variability

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in downstream product demand and upstream supply. Our products enable strategies for decarbonizing the existing oil and gas and chemicals infrastructure as well as increasing the reliability and life span of wind farms.

In this report, you will see specific examples of how we work with customers to enhance the sustainability not only of their operations but also of their business models.

But sustainability is not just about environmental impact. Increasingly it includes a focus on social impact and corporate governance as well - or ESG.

For AspenTech, social impact is principally about our employees. As you will see in this report, we invest significant resources and management focus to building a diverse and inclusive workforce. In addition, we dedicate a great deal of executive focus to developing leaders, driving a culture of operational excellence and embedding sustainable business practices into our processes.

Scaling the skills, mindset and culture that will ensure our competitiveness in a rapidly evolving market is vital. Sustaining those attributes is even more critical - ensuring that our people and our organization are robust to the breathtaking pace of change in technology, markets and social expectations. Realizing these demands will require a massive deployment of resources, talent and leadership imagination.

Finally, we report here on our commitment to good corporate governance - ensuring that we're properly managing risks, deploying diverse perspectives in our strategic decision-making, adhering to strict standards of business ethics and rigorously protecting the interests of the shareholders as well as our stakeholders.

One of the most significant corporate developments in the past year has been our announced agreement of an enhanced partnership and expanded commercial alliance with Emerson, including our pending acquisition of Emerson's world- class OSI Inc. and Geological Simulation Software (GSS) businesses. The strategic case for the transaction includes the ability to strengthen even further our commitment to sustainability - in particular, to sharpen our collective focus on reducing industrial emissions, increasing carbon capture and the electrification of industry and transport sectors.

(1) U.S. Energy Information Administration, International Energy Outlook, Sept 19

(2) U.S. Census Bureau, Water Use and Conservation in Manufacturing: Evidence from U.S. Microdata, Jun 15

(3) U.S. Environmental Protection Agency, Global Greenhouse Gas Emissions Data

ESG(4) UN Environment Programme, Banning single-use plastic: lessons and experiences from countries report, (2018) Report(5) International Institute for Sustainable Development, SDG Knowledge Hub, Aug 2020

(6) EIA projects nearly 50% increase in world energy usage by 20250, International Energy Outlook 2021, Oct 21

We also expect the new combination to create opportunities for setting even more robust strategic ESG processes, metrics and goals, and I look forward to exploring those in 2023.

Meanwhile, I want to express here my appreciation to the AspenTech team and our customers who make our sustainability journey real. Despite the challenges

• some of them very personal and painful - imposed by a second year of the global COVID-19 pandemic, our people and our company never wavered in their commitment to our customers, our investors, each other and society. For that I am both proud and humbled, grateful and inspired.

I see a very bright, fulfilling and truly sustainable future ahead for this great team.

Antonio Pietri President & CEO

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OurOURBUSIOver 40 years-ago, Aspen BusinessNESS OURTechnology, Inc. (AspenTech)

was founded on efficiency and optimization.

Today, AspenTech is a global leader in helping companies achieve their

sustainability goals while enabling them to

BUSINESSreach operational excellence.

AspenTech's mission is to digitally transform the industries we serve by optimizing their assets to run safer, greener, faster and longer.

Right now, in addition to the pressures of meeting operational excellence, companies are challenged with finding solutions

OUR to improve their resource efficiencies, reduce emissions and help enable the global energy transition. AspenTech is hard at work every day helping companies meet the increasing demand for resources driven by a growing population with rising standards of living, while also addressing sustainability goals.

Our unique asset lifecycle approach and market-leading solutions achieve new levels of efficiency, accelerate

BUSINESSinnovation and reduce emissions and waste, without compromising safety. With an established network of

global partners and over 1,900 employees in more than 30 countries, we help our 2,400 customers achieve critical business insights across the entire value chain.

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