Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Safety
• Community Engagement
• Ethical Business Practices
• Corporate Governance

Environmental Achievements

• 99.86% compliance rate with environmental water regulations
• Spent over $1 million on environmental initiatives and compliance enhancements in 2018
• 62% of methane produced captured and sold as natural gas
• Almost perfect environmental compliance record with EPA’s NPDES program
• Successful land reclamation resulting in the release of 1,036 acres since 2017

Social Achievements

• Industry-leading safety rate 33% better than peers
• Zero work-related fatalities since 2016
• Charitable giving to local organizations, schools, and first responders
• Partnerships to improve local education and workforce development

Governance Achievements

• Robust risk assessment process with oversight from the Enterprise Risk Management (ERM) committee
• Confidential hotline for reporting ethically questionable behavior
• Active Environmental, Health and Safety (EHS) Committee of the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions
• Maintaining high safety standards
• Managing environmental impacts of mining operations

Mitigation Strategies

• Investing in technology and innovation (VFDs, LED lights, methane capture)
• Implementing safety training programs (Safety ACTion, Supervisor’s Safety Coaching)
• Continuous monitoring and compliance with environmental regulations
• Proactive land reclamation

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Environmental Stewardship
• Ethical, Honest Business Practice
• Diversity and Inclusion
• Operational Efficiencies

Environmental Achievements

• 5% increase in greenhouse gas (GHG) captured since 2019
• Established a water usage reduction goal of 25% by 2030
• 99.8% compliance record with the EPA’s NPDES program
• Successfully reclaimed and achieved bond releases on 466 acres
• Reduced reclamation liabilities by 1,333 acres (18.6% reduction)

Social Achievements

• Diversity recruitment initiative to increase minority representation
• Employee safety incident rate 32% lower than the national average
• Supported community partners and local non-profit organizations during COVID-19 pandemic (Community Food Bank of Central Alabama, West Alabama Food Bank, American Red Cross)

Governance Achievements

• 100% compliance with required annual Mine Safety & Health Administration (MSHA) safety training
• Established policies to ensure compliance with all laws and regulations
• Annual review of governance policies by the Board of Directors

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Potential impacts to local water systems
• Potential impacts to protected wildlife and their habitats
• Potential market risks associated with climate regulation

Mitigation Strategies

• Secured essential industry designation for the mining industry during COVID-19
• Operational enhancements (sanitizing, staggering shifts)
• Cash contributions to community food banks and American Red Cross
• Water recycling efforts
• Proactive approach in mitigating biodiversity impacts (permitting process, toxicity tests, site inspections)
• Modified capital expenditure forecasts to account for the pandemic
• Strategic positioning as a low-cost producer to absorb unexpected regulations

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Potential market risks associated with climate regulation

Reporting Standards

Frameworks Used: SASB

Environmental Metrics

ESG Focus Areas

• Safety Culture
• Environmental Performance (Greenhouse Gas Emissions, Waste Management, Water Management, Biodiversity Impact, Reserves Valuation)
• Labor Negotiations
• People and Community
• Governance

Environmental Achievements

• 64% of methane vented from underground mines captured and sold as natural gas
• 99.24% compliance record with the EPA’s National Pollutant Discharge Elimination System (NPDES) program
• Full bond release on 1,335 acres (18.6% of total acreage) from reclamation campaign

Social Achievements

• Continued support for nonprofit organizations (American Heart Association, Habitat for Humanity, etc.) despite COVID-19 pandemic and labor strike
• No mines operating within or near regions identified with high or extremely high water stress

Governance Achievements

• Actively engaged six-member Board of Directors with various committees (Audit, Compensation, Nominating/Governance, Environmental, Health and Safety, Finance)

Climate Goals & Targets

Environmental Challenges

• Continued effects of the worldwide COVID-19 pandemic
• Ongoing labor strike

Mitigation Strategies

• Refocusing on future goals including aggressive environmental targets (to be unveiled in 2022)
• Negotiating in good faith with the union for a fair and reasonable resolution to the labor strike
• Maintaining corporate strategy to protect jobs and ensure profitability

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Environmental Performance
• Social
• Governance

Environmental Achievements

• Installed first flare system to destroy methane vented from open degasification boreholes (verified by CARB)
• 67% of methane produced in mines captured and collected for beneficial use in 2021
• 19.3% reduction of reclamation requirements over the previous 5-year period
• Earned the “Land Stewardship Award” from the Alabama Mining Association for a wetland development project in 2021

Social Achievements

• Safety incidence rate 63% lower than the U.S. industry rate for underground mining in 2022
• Received a Sentinels of Safety award from the National Mining Association in 2021
• Edward Boylen received the Outstanding Safety and Training Leadership Award from the Alabama Mining Association in 2021
• Spent over $5 million on training in 2022
• Contributed over $1,000,000 to local nonprofits in 2022

Governance Achievements

• Developed a comprehensive ESG strategy focusing on materiality and risk assessments, creating trackable goals, reducing GHG emissions and water usage, enhancing waste management and governance standards, and performing a community impact assessment
• Established standards of business conduct for all officers, employees, agents, and members of the Board
• Board is 33% female and 17% racially and/or ethnically diverse as of year-end 2022

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions, particularly methane from mine venting
• Reducing water usage
• Enhancing waste management procedures
• Improving environmental performance
• Fostering a diverse and equitable workforce
• Balancing business decisions to serve all stakeholders
• Strengthening community partnerships

Mitigation Strategies

• Partnering with industry experts to develop a comprehensive ESG strategy
• Implementing a three-phased water efficiency and optimization plan
• Installing a mesh node communication system to monitor water usage
• Implementing a dry slurry system to reduce water usage
• Sealing a shaft at Mine 4 to reduce methane emissions
• Developing Blue Creek Mine and Mine 4 North reserves to encounter less methane
• Installing a Regenerative Thermal Oxidizer (RTO) to destroy VAM
• Actively working towards building a diverse workforce through talent attraction and retention efforts
• Implementing policies and conducting annual training regarding human rights, anti-bullying, harassment, and discrimination

Supply Chain Management

Responsible Procurement

• Supplier and Contractor Code of Conduct (being incorporated into contracts in 2023)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: ISO 14001

Awards & Recognition

• Sentinels of Safety award (2021)
• Land Stewardship Award (2021)