Climate Change Data

Covia

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:314.9 thousand metric tons CO2e
Scope 1 Emissions:314.9 thousand metric tons CO2e
Scope 2 Emissions:297.8 thousand metric tons CO2e
Renewable Energy Share:<1%
Total Energy Consumption:478 million kWh
Water Consumption:Data track fresh water withdrawn at 73% of sites, including 100% of sites with high or extremely high baseline water stress
Waste Generated:3.4 million tons tailings waste (essentially all reprocessed or used as backfill); 6.1 million tons mineral processing waste (essentially all reused as backfill)

ESG Focus Areas

  • Safety and Health
  • Environmental Responsibility
  • Community Investment
  • Diversity & Inclusion

Environmental Achievements

  • Reduced GHG emissions by 275 thousand metric tons CO2e from 2019 to 2020 (Scope 1 and 2 combined)
  • Electricity reduction of 28%
  • Recovered 18 turtle nests and released 148 turtle hatchlings
  • Three clean industry certifications at three plants in Mexico

Social Achievements

  • Established an employee-led Diversity & Inclusion Council
  • Invested over $1.5 million in communities
  • 900 hours of paid and personal volunteer time
  • Exceeded the goal of allocating at least 10% of the annual Community Investment budget toward organizations that support Social Equality awareness

Governance Achievements

  • Transitioned to a privately held company with a new five-member Board of Managers
  • Maintained public company behaviors such as conducting audits and tracking environmental, health, and safety performance indicators
  • Introduced a new Code of Business Conduct and Ethics in 2021 (no material changes noted in 2020)

Climate Goals & Targets

Environmental Challenges

  • COVID-19 pandemic impacting operations, employees, and communities
  • Financial restructuring due to market impacts from the pandemic
Mitigation Strategies
  • Created a COVID Response Team to implement safety protocols
  • Financial restructuring to create a more sustainable cost and capital structure
  • Modified volunteering to adhere to social distancing restrictions
  • Increased financial donations to communities

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB (Sustainability Accounting Standards Board) for Metals & Mining industry

Certifications: Wildlife Habitat Council (WHC) certifications at multiple sites

Sustainable Products & Innovation

  • DST™ (Dust Suppression Technology) treated sand
  • Technisand® advanced resin-coated technology

Awards & Recognition

  • President’s Safety Award (Portage facility)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:572.9 thousand MT CO2e/year
Scope 1 Emissions:344.3 thousand MT CO2e/year
Scope 2 Emissions:228.6 thousand MT CO2e/year
Renewable Energy Share:<1%
Total Energy Consumption:8.2 million gigajoules/year
Water Consumption:24,235 thousand cubic meters/year (consumed)
Carbon Intensity:0.021 MT CO2e/ton

ESG Focus Areas

  • Environmental Stewardship
  • Positive Social Impact
  • Responsible Governance and Ethics

Environmental Achievements

  • Earned or maintained 17 Wildlife Habitat Council certified active sites
  • Identified baseline for Scope 1 and 2 GHG emissions of 572.9 thousand MT CO2e
  • Initiated partnership with the Arbor Day Foundation, planting 13,900 trees
  • Recycled 98% of water at Tunnel City, WI, site
  • Reclaimed 30+ acres in Lake Michigan coastal dune ecosystem

Social Achievements

  • Achieved 5,790 volunteer hours by Team Members
  • Contributed $1.1 million in community investments
  • Reduced susceptibility to phishing emails by 33%
  • Filled 83% of vacant Director-level positions with diverse Team Members
  • Increased number of women in leadership positions by 63%
  • Spent $160 million with businesses local to operating communities
  • Successfully commercialized LUMINEXTM

Governance Achievements

  • Established new Board of Managers
  • Enhanced Board and Executive Leadership Team diversity
  • Appointed dedicated ESG leadership

Climate Goals & Targets

Long-term Goals:
  • Donate $10 million through the Covia Foundation by 2030
  • Contribute 50,000 volunteer hours by 2030
  • Expand and strengthen sustainable product offerings by 2030
  • Increase Board and Leadership Team diversity to 40% by 2030
  • Become a signatory to the UN Global Compact by 2030
Medium-term Goals:
  • Reduce Scope 1 and Scope 2 GHG emissions by 20% on a per ton basis by 2030
  • Recycle 90% of water at sites in water-stressed areas by 2030
  • Achieve WHC certification or equivalent at 50% of mining and processing sites by 2030
  • Improve ratio of land rehabilitated to land disturbed
Short-term Goals:
  • Improve Team Member engagement ratings
  • Develop Community Action Plans at all locations

Environmental Challenges

  • Climate change (GHG emissions)
  • Water stress in some operating areas
  • Supply chain disruptions
Mitigation Strategies
  • GHG emissions reduction strategy with 2030 target
  • Water recycling initiatives (90% target by 2030)
  • Diversification of North American sourcing network
  • Strategic inventory management
  • Power purchase agreement for renewable energy

Supply Chain Management

Responsible Procurement
  • Business Partner Code of Conduct
  • ESG assessment program (in development)

Climate-Related Risks & Opportunities

Opportunities
  • Energy efficiency improvements
  • Renewable energy adoption
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB Metals & Mining Industry Standard

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 6
  • SDG 8
  • SDG 10
  • SDG 11
  • SDG 12
  • SDG 13
  • SDG 15
  • SDG 16
  • SDG 17

Covia's Goals that Inspire: ESG 2030 align with these SDGs.

Sustainable Products & Innovation

  • LUMINEXTM
  • MINEX®
  • DST®
  • ACCEL®
  • Black Lab® Blend
  • GLASSIL®

Awards & Recognition

  • Sentinels of Safety Award

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:403,948 MT CO2e
Scope 1 Emissions:262.7 thousand MT CO2e
Scope 2 Emissions:366.9 thousand MT CO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:<1%
Total Energy Consumption:9.5 million GJ
Water Consumption:16,991 thousand cubic meters consumed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental Stewardship
  • Positive Social Impact
  • Responsible Governance and Ethics

Environmental Achievements

  • Began the phased rollout of our new Environmental Management System (EMS)
  • Completed a third-party verification of our emissions calculation
  • Invested $1.7 million in capital projects aimed at reducing emissions
  • Recycled 97% of water used at our Crane, TX, site
  • Established our signature Community Beekeeping Initiative in Mexico

Social Achievements

  • Decreased our all-incidence rate by 10% versus the prior year
  • Served our communities through 10,800 Team Member volunteer hours
  • Contributed approximately $1.2 million to community investments
  • Added paid Military Leave, Parental Leave, and enhanced time away policies to our benefit offerings
  • Introduced our Emerging Leaders Program

Governance Achievements

  • Became a signatory of the UN Global Compact
  • Awarded Bronze status in our first year of participation in the EcoVadis survey
  • Developed a formalized Community Action Plan (CAP) process and policy
  • Established five goal-specific steering teams
  • Achieved 750 hours of Team Member cybersecurity training
  • Introduced our Business Partner Code of Conduct

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce Scope 1 and Scope 2 GHG emissions by 20% on a per-ton basis by 2030
  • Recycle 90% of water at sites in water-stressed areas by 2030
  • Implement a conservation biodiversity initiative at all sites, with 50% of our mining and processing sites holding Wildlife Habitat Council (WHC) certification or equivalent by 2030
  • Improve ratio of land rehabilitated to land disturbed by 2030
  • Increase the collective gender, racial, and/or ethnic diversity of both Board Members and the Leadership Team to 40% by 2030
  • Drive continuous annual improvement in underrepresented talent across our workforce by 2030
  • Enhance organizational programming to support a culture of inclusion by 2030
  • Donate $10 million in funds through The Covia Foundation by 2030
  • Contribute 50,000 paid or personal volunteer hours by 2030
  • Expand number and strengthen effectiveness of sustainable product offerings by 2030
  • Develop a robust Community Action Plan (CAP) at 100% of our locations by 2030
  • Establish and implement an ESG assessment program for strategic suppliers by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Overall increase in emissions impacted by planned higher production, increased energy usage due to colder than expected temperatures at some of our U.S. sites, and increased material handling at one of our largest mines
  • 2022 performance was impacted by additional land disturbances at several of our mining and processing sites, which more than offset the reclamation progress we made during the year
  • Decrease in overall leadership diversity percentage from 22% in 2021 to 17% in 2022
Mitigation Strategies
  • Investing in solutions that will enable us to achieve our GHG emissions reduction goal by 2030 (increasing reliance on renewable energy, improving transportation efficiencies, installing more efficient technologies, participating in power purchase agreements, purchasing carbon offsets)
  • Established clear land management expectations as well as more effective, centralized budgetary support across our sites to improve our ratio
  • Implementing programs to drive progress toward 40% leadership diversity goal (e.g., Emerging Leaders Program)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Business Partner Code of Conduct
  • Prioritizing local suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather patterns
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB Metals & Mining Industry Standard, UN Global Compact

Certifications: Mexico Clean Industry certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 6
  • SDG 8
  • SDG 10
  • SDG 11
  • SDG 12
  • SDG 13
  • SDG 15
  • SDG 16
  • SDG 17

Not disclosed

Sustainable Products & Innovation

  • LUMINEX™ ultrawhite filler
  • DST® Dust-Suppression Technology
  • ACCEL® Dust-Preventing Polymeric Sand
  • BLACK LAB ® Blend
  • MINEX® functional fillers and extenders
  • BIOFLEX®

Awards & Recognition

  • United Way Torchbearer Award of Cleveland
  • Sentinels of Safety Award
  • EcoVadis Bronze Medal

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:666,886 tCO2e (Scope 1 & 2 combined)
Scope 1 Emissions:410,244 tCO2e
Scope 2 Emissions:259,666 tCO2e
Renewable Energy Share:approximately 1%
Total Energy Consumption:560 million KWh (electricity)
Water Consumption:38,960 thousand cubic meters (withdrawn); 17,123 thousand cubic meters (consumed)
Waste Generated:11.7 MM metric tons (tailings); 2.8 MM metric tons (waste rock)
Carbon Intensity:Reduced by 7.6% in 2023

ESG Focus Areas

  • Environmental Stewardship
  • Positive Social Impact
  • Responsible Governance and Ethics

Environmental Achievements

  • Reduced Scope 1 & 2 GHG Emissions Intensity by 7.6% compared to 2022
  • Invested $6.4 million in energy efficiency-related projects
  • Expanded Environmental Management System (EMS) to nine sites
  • Created Species-At-Risk (SAR) Plans for five facilities
  • Improved ratio of land rehabilitated to land disturbed from 1:25 in 2022 to 1:6 in 2023

Social Achievements

  • 21% decrease in all-incidence rate compared to the prior year
  • Averaged 46 hours of annual safety training per Team Member
  • Contributed more than $1 million to local communities through The Covia Foundation
  • Hosted 34 Covia Cares Action Days
  • Launched employee resource group for veterans
  • Introduced a new intranet, the Quarry

Governance Achievements

  • Completed a comprehensive TCFD Scenario Analysis
  • Established a Cybersecurity and Data Privacy Goal
  • Improved Team Members’ average password strength by 40%
  • Introduced Third-Party Information Security Due Diligence Program
  • Updated Anti-Corruption and Sanctions Policy and Code of Business Conduct and Ethics

Climate Goals & Targets

Long-term Goals:
  • Expand the number and reach of products that have environmental and social benefits
  • Complete annual and continual cybersecurity training for 100% of Team Members
Medium-term Goals:
  • Implement conservation and biodiversity initiatives at all sites with 50% of mining and processing sites achieving WHC certification
  • Develop a Species-at-Risk (SAR) Plan at 100% of mining and processing sites where at-risk species are present
  • Improve ratio of land rehabilitated to land disturbed
  • Increase the collective gender, racial, and ethnic diversity of our Board Members and Leadership Team to 40%
  • Drive continuous annual improvement in underrepresented talent
  • Donate $10 million through The Covia Foundation
  • Contribute 50,000 volunteer hours
Short-term Goals:
  • Develop a robust CAP at 100% of locations
  • Implement an EMS at every site
  • Reduce Scope 1 and 2 GHG Emissions by 20% from 2021 baseline, on a per-ton basis
  • Recycle at least 90% of water at sites in water-stressed areas and expand reporting on consumption at all facilities
  • Achieve year-over-year reduction in the number of job positions potentially overexposed to respirable silica

Environmental Challenges

  • Reducing greenhouse gas emissions in an energy-intensive industry
  • Managing water usage in water-stressed areas
  • Protecting biodiversity across a large operational footprint
  • Maintaining high safety standards
  • Addressing cybersecurity risks
Mitigation Strategies
  • Developed a decarbonization roadmap
  • Implemented various water conservation and recycling initiatives
  • Developed site-specific Conservation Frameworks and SAR Management Plans
  • Implemented a comprehensive Safety and Health Management System (SHMS)
  • Invested in advanced security measures and employee training

Supply Chain Management

Supplier Audits: More than 99% of new suppliers submitted written acknowledgement of the Supplier Code of Conduct

Responsible Procurement
  • Supplier Code of Conduct
  • ESG criteria considered when selecting and evaluating suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Wildfire
  • Heat wave
  • River flood
  • Extreme precipitation
  • Severe storm
  • Drought
  • Temperature change
  • Precipitation change
Transition Risks
  • Reputation
  • Customer demands
  • Electricity costs
  • Carbon tax
  • Regulatory reporting
  • Market risk
Opportunities
  • Brand reputation
  • Access to markets
  • Tax incentives

Reporting Standards

Frameworks Used: SASB Metals & Mining Industry Standard, TCFD

Certifications: EcoVadis Bronze Medal, Wildlife Habitat Council (WHC)

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 6
  • SDG 8
  • SDG 10
  • SDG 11
  • SDG 12
  • SDG 13
  • SDG 15
  • SDG 16
  • SDG 17

Covia's initiatives align with these SDGs through various environmental, social, and governance programs.

Sustainable Products & Innovation

  • Cristobalex™
  • Minbloc®
  • Spectrum®

Awards & Recognition

  • EcoVadis Bronze Medal
  • Medical Mutual Pillar Award for Community Service
  • Digital Transformation Award for Best Intranet Launch