Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions Reduction
• Water Management
• Chemicals Management
• Ecological Impact Management
• Workforce Health & Safety
• Business Ethics and Payments Transparency
• Management of the Legal and Regulatory Environment
• Critical Incident Risk Management

Environmental Achievements

• Developed the DURA-BASE® matting system, which is 100% recyclable and reduces CO2 emissions compared to alternatives.
• Introduced a brine-tolerant, high-performance friction reducer allowing customers to utilize recycled water, reducing fresh water consumption.
• Developed the Evolution® family of high-performance water-based drilling fluid systems, providing an environmentally sensitive alternative to traditional oil-based fluids.

Social Achievements

• Maintained a Total Recordable Incident Rate (TRIR) of 0.52 and a Fatality Rate (TFR) of 0.04 in 2020.
• Provided 10,750 average hours of health, safety, and emergency response training.

Governance Achievements

• Implemented an Ethics and Compliance (E&C) Program designed to prevent corruption and bribery, aligned with best practices outlined in the U.S. Department of Justice’s Evaluation of Corporate Compliance Programs and the Resource Guide to the U.S. Foreign Corrupt Practices Act.

Climate Goals & Targets

Environmental Challenges

• Approximately 1% of Newpark’s 2020 consolidated revenue was generated from customer activities in countries with low Transparency International’s Corruption Perception Index rankings (Congo and Libya).
• Potential risks associated with the global energy transition and reduced reliance on fossil fuels.

Mitigation Strategies

• Commitment to expanding business outside of oil and gas markets, including renewable energy sectors.
• Addition of industry expertise to the Board of Directors with experience in electric utilities and environmental sustainability.
• Board of Directors oversight of ESG program, including material climate-related risks and opportunities.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Reduced reliance on fossil fuels

Opportunities

• Expansion into renewable energy sectors

Reporting Standards

Frameworks Used: SASB

Sustainable Products & Innovation

• DURA-BASE® matting system
• Evolution® water-based drilling fluids
• TerraTherm™ water-based system for geothermal applications

Environmental Metrics

ESG Focus Areas

• Emissions Reduction
• Water Management
• Chemicals Management
• Ecological Impact Management
• Workforce Health & Safety
• Business Ethics and Payments Transparency
• Management of the Legal and Regulatory Environment
• Critical Incident Risk Management

Environmental Achievements

• Developed a next-generation mat with further weight reduction, expected to provide additional logistical efficiencies and greenhouse gas reductions.
• Significantly expanded the use of telematics technology for the U.S. vehicle fleet, improving efficiency and reducing fleet energy consumption and carbon emissions.
• Utilized local-based carriers for outbound deliveries and leveraged brokers for warehouse-to-warehouse product moves to maximize fleet utilization and minimize vehicle waiting time and reduce greenhouse gas emissions.
• Introduced Transition™ family of brine-tolerant, high-performance friction reducers, allowing customers to utilize recycled water for pressure pumping applications and reduce their consumption of fresh water.
• Implemented closed-loop systems to minimize the consumption of fresh water in manufacturing operations.
• Launched next generation of high-performance water-based drilling fluids systems (Nviros™ and Hydros™), providing an environmentally sensitive alternative to traditional oil-based drilling fluids.

Social Achievements

• Maintained a strong safety culture, resulting in a Total Recordable Incident Rate (TRIR) of 0.51 and a Fatality Rate (TFR) of 0.00.
• Provided an average of 17.5 hours of health, safety, and emergency response training for all employees.

Governance Achievements

• Implemented an Ethics and Compliance (E&C) Program designed to communicate Newpark’s culture of compliance and commitment to abiding by Anti-Corruption Laws.
• Added relevant industry expertise to the Board of Directors, including individuals with extensive experience in the electric utility industry and clean energy.

Climate Goals & Targets

Environmental Challenges

• Addressing air emissions-related risks and opportunities.
• Addressing water consumption and disposal-related risks and opportunities.
• Addressing chemical-related risks and opportunities.
• Addressing risks and opportunities related to ecological impact from core activities.
• Managing catastrophic and tail-end risks.

Mitigation Strategies

• Optimizing logistics to reduce greenhouse gas emissions associated with product movements.
• Developing technologies that enable customers to reduce their consumption of water.
• Providing customers with superior products and solutions that improve on industry best practices, while working in harmony with the environment to optimize resource management.
• Manufacturing, selling, and renting recyclable DURA-BASE® advanced composite matting system.
• Initiatives underway to enhance sustainable product portfolio by increasing the usage of recycled materials in manufacturing process.
• Developing state-of-the-art, high-performance water-based fluids systems which optimize efficiency while reducing the carbon footprint of customers’ drilling operations.
• Board of Directors oversees processes for assessing and managing risk; management manages risk on a day-to-day basis; reporting software and assessment procedures used to evaluate, identify and control potential workplace health, safety, and environmental risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Increasing awareness of the role that fossil fuels play in climate change, leading to a groundswell of support to reduce global reliance on these non-renewal energy sources.

Opportunities

• Expanding business outside of oil and gas markets, including targeted renewable energy sectors.

Reporting Standards

Frameworks Used: SASB

Sustainable Products & Innovation

• DURA-BASE® matting system
• Evolution® water-based drilling fluids system
• Nviros™ and Hydros™ high-performance water-based drilling fluids systems
• TerraTherm™ high-performance water-based drilling fluid system

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Saved over 420,000 trees through the recycling of DURA-BASE mats.
• Saved an estimated 17,000+ tons of CO2 emissions through transportation using DURA-BASE compared to wood alternatives.
• Avoided over 9.5 million miles driven in 2022 by using DURA-BASE mats.
• Consumed over 1% recycled resin in manufacturing operations.

Social Achievements

• Maintained a Total Recordable Incident Rate (TRIR) of 0.49.
• Provided 24.4 HSE training hours per person.
• Implemented several safety initiatives, including Stop Work Authority and Key Stone Safety Rules.
• Engaged in community outreach programs supporting various charities.

Governance Achievements

• Achieved 90%+ shareholder approval of named executive officer compensation.
• Maintained a strong Board independence and diversity.
• Implemented a robust Ethics and Compliance (E&C) Program with 100% employee training completion on anti-bribery and anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Historical dependency on customers within the Oil and Natural Gas market.
• Increasing awareness of the role that fossil fuels play in climate change.

Mitigation Strategies

• Expanding operations in markets supporting the energy transition (utilities, renewables, geothermal drilling).
• Developing new products focused on environmental sustainability.
• Implementing a system to report Scope 1 and 2 emissions in future years.

Supply Chain Management

Responsible Procurement

• Utilizing small, local, and diverse businesses, including HUBs.

Climate-Related Risks & Opportunities

Transition Risks

• Risks associated with historical dependency on Oil and Natural Gas market.

Opportunities

• Opportunities to expand in markets supporting the energy transition.

Reporting Standards

Frameworks Used: SASB, TCFD

Sustainable Products & Innovation

• DURA-BASE Advanced Composite Mat System
• Evolution®, Nviros™, and Hydros™ water-based drilling fluids systems
• TerraTherm™ geothermal drilling fluid system

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Avoided over 450,000 trees through the manufacturing and recycling of DURA-BASE mats.
• Avoided 18.8+ thousand tons of CO2 emissions in 2023 through transportation using DURA-BASE compared to wood alternatives.
• Avoided over 10.4 million miles driven during 2023 by using DURA-BASE mats.
• Consumed over 750,000 pounds of recycled resin in manufacturing operations in 2023.

Social Achievements

• Maintained a Total Recordable Incident Rate (TRIR) of 0.37.
• Provided 11.9 HSE training hours per person.
• Implemented several safety initiatives, including a new digital platform (STAR) for HSEQ management.
• Engaged in community outreach programs supporting children's education and cancer research.

Governance Achievements

• Achieved 99%+ shareholder approval of named executive officer compensation.
• Maintained a strong Board independence and diversity.
• Implemented a robust Ethics and Compliance (E&C) Program with annual training for 100% of employees on topics including anti-bribery and anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Historical dependency on customers within the oil and natural gas market.
• Managing climate-related risks and opportunities.

Mitigation Strategies

• Divesting from oil & gas operating units and investing in growth within the utilities industry.
• Launching a formal sale process for substantially all of the Fluids Systems business.
• Developing and launching new products focused on environmental sustainability (e.g., DURA-BASE 800 Series).

Supply Chain Management

Responsible Procurement

• Utilizing small, local, and diverse businesses; including businesses owned or operated by women, minorities, veterans, and other historically underutilized businesses (HUB).

Climate-Related Risks & Opportunities

Transition Risks

• Risks associated with historical dependency on customers within the oil and natural gas market.

Opportunities

• Opportunities to expand in markets supporting the energy transition (utilities, renewables, geothermal drilling).

Reporting Standards

Frameworks Used: SASB, TCFD

Sustainable Products & Innovation

• DURA-BASE composite matting system
• DURA-BASE 800 Series
• Evolution®, Nviros™, and Hydros™ water-based drilling fluids systems
• TerraTherm™ high-performance water-based geothermal drilling fluid system