Climate Change Data

Summit Materials, Inc.

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

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:1.96M MT CO2e
Scope 1 Emissions:1.96M MT CO2e
Scope 2 Emissions:0.23 MT CO2e
Renewable Energy Share:20% (grid electricity)
Total Energy Consumption:7.34M GJ
Water Consumption:1.457M cubic meters (utility only)
Waste Generated:5,717 tons of Cement Kiln Dust (other waste types not collected)

ESG Focus Areas

  • Carbon Reduction
  • Social / Human Impact
  • Land Reclamation

Environmental Achievements

  • Reduced recordable incident rate by 62% in 2020 versus 2019
  • Completed first SASB-compliant baseline for emissions, water, and waste for 2020
  • Expanded Green America Recycling facility to increase use of alternative fuels
  • Commercialized Portland Limestone Cement (PLC)
  • Piloted next-generation low-carbon concrete
  • Partnered with universities on AI solutions for ready-mix concrete optimization
  • Captured methane at Kansas landfill and evaluated expansion to other landfills

Social Achievements

  • Achieved gender parity in 2021 with over 50% female Board directors and over 50% female executive officers
  • Implemented mobile hand washing stations at worksites during COVID-19 pandemic
  • Implemented e-ticketing system for contactless transactions
  • Developed and implemented water conservation programs and closed-loop water systems

Governance Achievements

  • Established a Governance and Sustainability Committee to oversee ESG initiatives
  • Renamed the Compensation Committee to the Human Capital and Compensation Committee to better reflect its oversight of talent development, diversity and inclusion, employee engagement and company culture
  • 8 of 9 directors are independent of the Company

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050 (specific targets to be published in early 2022)
Medium-term Goals:
  • Reduce carbon emissions by 2030 (specific targets to be published in early 2022)
Short-term Goals:
  • Develop specific goals and roadmap to enhance social impact, improve land use practices, and reduce carbon emissions by 2030 and 2050 (to be published in early 2022)

Environmental Challenges

  • COVID-19 pandemic impacting operations and employee safety
  • Limited data availability for certain waste types in 2020
  • Explosion at Green America Recycling facility limiting operations in 2020
  • Water withdrawal data limited to utility-provided freshwater withdrawals
Mitigation Strategies
  • Implemented COVID-19 safety protocols (mobile hand washing stations, e-ticketing, training & risk assessment)
  • Undertaking standardization of hazardous and non-hazardous waste monitoring and reporting
  • Received approvals to resume full operations at Green America Recycling facility
  • Initiated water metering systems across operations in 2022 to improve data collection

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Sustainable Products & Innovation

  • Portland Limestone Cement (PLC)
  • Buildex Haydite (lightweight aggregate)
  • Recycled concrete and asphalt

Awards & Recognition

  • National Asphalt Pavement Association’s (NAPAs) Diamond Commendation (19 sites)
  • The National Stone, Sand & Gravel Association’s (NSSGA) Excellence in Community Relations Bronze Award (Boxley operation)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:2.24M tCO2e/year
Scope 1 Emissions:1.89M tCO2e/year
Scope 2 Emissions:0.31M tCO2e/year
Renewable Energy Share:39.8% (cement plants only)
Total Energy Consumption:8.56M GJ/year
Water Consumption:2,007k m3/year (utility only)
Waste Generated:2,531 t/year (cement kiln dust only)

ESG Focus Areas

  • Human/Social Impact
  • Land Reclamation
  • Carbon Reduction
  • Diversity, Equity and Inclusion
  • Employee Engagement
  • Pay Equity
  • Talent Acquisition
  • Recruitment and Retention Practices
  • Greenhouse Gas Emissions
  • Water Management
  • Waste & Hazardous Materials Management
  • Air Quality
  • Biodiversity Management
  • Closure & Reclamation
  • Workforce Health and Safety

Environmental Achievements

  • Improved recordable incident rate by approximately 9%
  • Improved preventable vehicle incident rate by approximately 33% over 2020
  • Published SASB-compliant baseline for emissions, water and waste
  • Established specific targets and strategies to address impacts by 2030 and 2050, including a path towards net zero emissions by 2050
  • Expanded Green America Recycling facility to increase use of alternative fuels in cement production
  • Launched Portland Limestone Cement (PLC), a lower clinker factor cement
  • Piloted next generation low carbon concrete
  • Partnered with universities investigating AI solutions for ready-mix concrete optimization
  • Captured methane at landfill business in Kansas
  • Installed fuel consumption and mileage efficiency monitors in every Summit-owned vehicle
  • Achieved 39.8% alternative fuel energy in cement plants (above the U.S. industry average of 25%)
  • Continental Cement Davenport Plant achieved WHC Conservation Certification Gold Tier

Social Achievements

  • Achieved gender parity at the Board and executive officer level
  • Launched an employee stock purchase program
  • Improved safety record and implemented 5S campaign
  • Implemented WTFR (Watch, Think, Focus, Repeat) safety program
  • Implemented Samsara fleet safety and fuel consumption tracking system
  • Implemented Wash Water Stabilization project, saving an estimated 7,000,000 gallons of water in 2021
  • Piloted CarbonCure sustainable concrete technology

Governance Achievements

  • Formalized a dedicated ESG function
  • 8 of 9 directors are independent
  • Over 56% of Board of Directors are female
  • Over 60% of executive officers are female, including CEO
  • Established specific 2030 and 2050 targets for social impact, land use and carbon emissions
  • Helped develop and signed The Portland Cement Association’s pledge to reach carbon neutrality in 2050
  • All executives have specific ESG targets as part of their incentive compensation

Climate Goals & Targets

Long-term Goals:
  • Reduce employee turnover to 10-20% by 2050
  • Achieve net-zero emissions by 2050 (0.5 - 1.2 M MT CO2e with offsets)
  • Achieve 100% renewable power by 2050
  • Reduce freshwater withdrawn by 25% by 2050
  • Divert 100% of waste by 2050
  • Preserve & convert 20% of total acres by 2050
  • Reduce cement emissions intensity to 0.25 MT CO2e/mt produced by 2050 (with offsets)
Medium-term Goals:
  • Reduce employee turnover to 30% by 2030
  • Reduce CO2e emissions to 1.6 - 2.0 M MT CO2e by 2030
  • Achieve 30% renewable power by 2030
  • Reduce freshwater withdrawn by 10% by 2030
  • Divert 80% of waste by 2030
  • Preserve & convert 10% of total acres by 2030
  • Reduce cement emissions intensity to 0.65 MT CO2e/mt produced by 2030
Short-term Goals:
  • Reduce employee turnover to 40% in 2022
  • 75% participation in DE&I training
  • Set goals for diverse sourcing and candidate pools
  • Increase employee engagement survey participation
  • Implement water metering across operations
  • Develop a specific water action plan
  • Standardize waste monitoring and reporting
  • Convert diesel-powered stationary operations to line power

Environmental Challenges

  • Inability to achieve ESG targets within projected timelines
  • Inability to achieve Diversity, Equity and Inclusion initiatives and targets within projected timelines
  • Inability to reduce turnover at desired levels and within desired timelines
  • Inability to achieve targeted employee engagement levels within desired timelines
  • Lack of economically viable market-based CO2e offsets and credits
  • Performance of environmental management system
  • Performance of existing technology related to CO2e emission reductions
  • Development of future technologies related to CO2e emissions
  • Continued evolution and development of ESG methodologies, frameworks and standards
  • Market adoption of products with less environmental impact
  • Supply chain disruptions
  • Water scarcity in some operating regions
  • Data limitations for waste reporting
Mitigation Strategies
  • Developing alternative sourcing strategies
  • Implementing an Environmental Management System (EMS) called eVue
  • Establishing clear 2030 and 2050 targets for carbon emissions reductions
  • Reporting on sustainability progress annually under the SASB Construction Materials Framework
  • Aligning with the UN Sustainable Development Goals
  • Recycling hazardous waste and using it as alternative fuel
  • Using hybrid vehicles and equipment
  • Using recycled materials
  • Managing and tracking fleet to optimize fuel efficiency
  • Managing and mitigating waste
  • Promoting progressive reclamation and biodiversity-focused actions
  • Tracking and managing water use
  • Implementing water metering systems
  • Developing a specific water action plan
  • Standardizing hazardous and non-hazardous waste monitoring and reporting
  • Developing a comprehensive, company-wide reclamation policy

Supply Chain Management

Responsible Procurement
  • Use of recycled materials
  • Partnerships with waste recycling facilities

Climate-Related Risks & Opportunities

Physical Risks
  • Abnormal weather
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts towards lower-carbon products
Opportunities
  • Development of energy-efficient products
  • Expansion of low-carbon economy

Reporting Standards

Frameworks Used: SASB

Certifications: WHC Conservation Certification (Gold and Silver)

Sustainable Products & Innovation

  • Portland Limestone Cement (PLC)
  • Buildex Haydite lightweight aggregate
  • CarbonCure sustainable concrete technology

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:2.14M tCO2e/year
Scope 1 Emissions:1.88M tCO2e/year
Scope 2 Emissions:0.26M tCO2e/year
Renewable Energy Share:38.2% (cement plants)
Total Energy Consumption:7.38 M GJ/year
Water Consumption:1,496 k cubic meters/year (utility only)
Waste Generated:5,028 tons/year (Cement Kiln Dust only)

ESG Focus Areas

  • Human/Social Impact
  • Land Reclamation
  • Carbon Reduction

Environmental Achievements

  • 22% improvement in recordable incident rate (2022 vs 2021)
  • Sold 1.5 million tons of lower emitting Portland Limestone Cement in 2022 (300,000 tons ahead of target)
  • 38.2% of cement plants’ energy from alternative fuel in 2022
  • Captured methane at landfill business in Kansas
  • Recycled more than 185,000 tons of concrete and more than 12,800 tons of other recycled materials in 2022
  • Recycled asphalt accounted for 12% of total tons produced in 2022

Social Achievements

  • Launched an employee stock purchase program
  • Increased investment in talent acquisition and retention, employee engagement and diversity initiatives
  • Achieved an MSCI rating of “AAA”
  • Gender parity on the Board of Directors

Governance Achievements

  • Established specific 2030 and 2050 targets for social impact, land use and carbon emissions
  • ESG targets embedded in executive compensation

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
  • Preserve and convert 20% of total acres by 2050
  • Achieve 100% renewable power by 2050
  • Reduce cement emissions intensity to 0.25 MT CO2e/mt produced by 2050 (with offsets)
Medium-term Goals:
  • Reduce freshwater withdrawn by 25% by 2050
  • Divert 100% of waste by 2050
  • Reduce employee turnover to 20% by 2050
  • Achieve 80% employee engagement by 2050
  • Match community diversity in employee base by 90% by 2050
Short-term Goals:
  • Reduce freshwater withdrawn by 10% by 2030
  • Divert 80% of waste by 2030
  • Reduce employee turnover to 30% by 2030
  • Achieve 75% employee engagement by 2030
  • Match community diversity in employee base by 60% by 2030

Environmental Challenges

  • Inability to achieve ESG targets within projected timelines
  • Lack of economically viable market-based CO2e offsets and credits
  • Supply chain disruptions due to climate events (implied)
  • Achieving greater diversity in frontline leadership
Mitigation Strategies
  • Developed specific 2030 and 2050 emissions reduction targets and strategies
  • Expanding Green America Recycling facility to increase alternative fuel use
  • Transitioning to Portland Limestone Cement (PLC)
  • Piloting next-generation low-carbon concrete
  • Investing in talent acquisition and retention, employee engagement and diversity initiatives

Supply Chain Management

Responsible Procurement
  • Code of Vendor Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Abnormal weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Expansion of low-carbon product offerings

Reporting Standards

Frameworks Used: SASB

Sustainable Products & Innovation

  • Portland Limestone Cement (PLC)
  • Buildex Haydite lightweight aggregate
  • CarbonCure concrete technology

Awards & Recognition

  • MSCI AAA rating
  • Samsara Connected Operations Award for Most Sustainable Operations
  • Virginia Statewide Mineral Mining Reclamation Award
  • Jack Starner Award for Outstanding Reclamation Success
  • Missouri Limestone Producers Association’s Hillenkamp-Rush Meritorious Safety Award
  • NAPA Diamond Commendation (15 sites)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1.73M MT CO2e
Scope 1 Emissions:1.73M MT CO2e
Scope 2 Emissions:0.28M MT CO2e
Renewable Energy Share:30%
Total Energy Consumption:7.17M GJ
Water Consumption:1,228 k cubic meter (utility only)
Waste Generated:9327 metric tons of cement kiln dust (775 tons landfilled, 8552 tons shipped off-site)
Carbon Intensity:0.65 MT CO2e/MT produced (2023), target 0.25 MT CO2e/MT produced by 2050

ESG Focus Areas

  • Carbon Reduction
  • Land Reclamation
  • Human/Social Impact

Environmental Achievements

  • Exceeded expectations with lower diesel fuel usage in fleet and higher thermal substitution rate at cement plants, reducing costs and emissions.
  • Full implementation of Portland Limestone Cement (PLC), a lower clinker factor cement in certain markets.
  • Expansion at Green America Recycling facility to increase use of alternative fuels in cement production.
  • Recycled asphalt accounted for 20% of total tons produced in 2023.
  • Captured methane at landfill business in Kansas.

Social Achievements

  • 100% of company leadership completed unconscious bias training.
  • Launched an employee stock purchase program.
  • Improved inclusivity score, showing a relationship between inclusivity and turnover reduction.
  • 3,731 volunteer hours performed.
  • Completed 529 activities with positive social and environmental impact on communities.

Governance Achievements

  • Gender parity at the Board and executive officer level.
  • 8 of 9 directors are independent.
  • Adopted a policy to require diverse candidate pools for Board vacancies.

Climate Goals & Targets

Long-term Goals:
  • Reduce CO2e emissions to 0.5-1.2 M MT by 2050 (with offsets to reach net zero)
  • Achieve 100% renewable energy by 2050
  • Reduce employee turnover to 20% by 2050
  • Match % diversity in employee base to 90% by 2050
  • Reclaim land to 20% of total acres by 2050
  • Divert 100% of waste from landfill by 2050
Medium-term Goals:
  • Reduce CO2e emissions to 1.6-2.0 M MT by 2030
  • Achieve 30% renewable energy by 2030
  • Reduce employee turnover to 30% by 2030
  • Match % diversity in employee base to 60% by 2030
Short-term Goals:
  • Reduce water consumption by 10% by 2030
  • Reduce waste to landfill by 80% by 2030

Environmental Challenges

  • Lack of economically viable market-based CO2e offsets and credits.
  • Performance of environmental management system.
  • Performance of existing technology related to CO2e emission reductions.
  • Development of future technologies related to CO2e emissions.
  • Continued evolution and development of ESG methodologies, frameworks and standards.
  • Market adoption of products with less environmental impact.
  • Ability to reduce turnover at desired levels and within desired timelines.
Mitigation Strategies
  • Established an ESG strategic roadmap on value generative commitments.
  • Intensified focus on belonging and inclusion to enhance employee well-being, lower costs, and improve productivity.
  • Investing in fleet electrification and diesel to line power conversion.
  • Leveraging safety, fuel and emissions monitoring data from vehicles to reduce impacts.
  • Partnering with a university on exploring carbon capture opportunities.
  • Leveraging DOE funding options where it makes sense.
  • Aligning with innovative companies.

Supply Chain Management

Responsible Procurement
  • Code of Vendor Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Abnormal weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Expansion of Green America Recycling

Reporting Standards

Frameworks Used: SASB

Certifications: WHC Conservation Certification Gold Tier (Davenport Plant Wildlife Restoration Areas)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 11 (Sustainable Cities and Communities)

Initiatives contribute to these goals through emissions reduction, renewable energy use, sustainable product development, employee well-being, and community engagement.

Sustainable Products & Innovation

  • Portland Limestone Cement (PLC)
  • CarbonCure sustainable concrete technology
  • Buildex Haydite lightweight aggregate

Awards & Recognition

  • NAPA Diamond Commendation (15 sites)
  • GCCA Safety Awards
  • Mine Safety Awards
  • SCAA NSSGA GOLD AWARD
  • WHC Conservation Certification Gold Tier