Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Compliance
• Biodiversity
• Energy
• Community Engagement
• Employee Development
• Occupational Health & Safety
• Human Rights

Environmental Achievements

• Recycled 75 percent of quench water
• Zero reportable spills at all locations
• Produced more clean electricity via our production process than electricity consumed during our production process
• Successfully managed environmental compliance throughout the COVID-19 pandemic

Social Achievements

• Maintained very low regrettable turnover of less than 1 percent
• Successfully renewed multiple union contracts at three locations
• Continued excellent safety record, reducing recordable rate from previous year
• Implemented optimized safety programs at our Brazil location and enhanced their safety training regimen

Governance Achievements

• All employees successfully completed annual training on our anti-harassment, anti-discrimination, and no-retaliation policies
• Board considers racial, ethnic, and gender diversity when assessing candidates
• Governance Committee reviews sustainability, climate, environmental, and social issues at least twice annually

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and customer demand
• Decreased demand for steel production leading to reduced coke production
• Climate change related risks and increasing regulatory attention
• Water scarcity at Brazil facility

Mitigation Strategies

• Internal COVID-19 task force and implementation of safety guidelines
• Negotiated short-term coke purchase relief with customers in exchange for contract extensions
• Company-wide savings initiative
• Water reuse programs at Brazil facility
• Plan to conduct scenario analysis and implement climate-related risk management process

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct requiring adherence to SunCoke’s Code of Business Conduct and Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Evolving GHG regulations
• Increased regulatory attention regarding climate change

Opportunities

• Providing low-carbon energy to customers
• Replacing aging by-product coke capacity with heat-recovery technology

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, CDP

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Foundry coke

Environmental Metrics

ESG Focus Areas

• Occupational Health & Safety
• Advanced Technology for Leading Environmental Performance
• Innovation & Evolution
• Climate Change Management
• Community Engagement & Relations
• Employee Development, Retention & Diversity

Environmental Achievements

• Achieved zero reportable spills at all locations
• Recycled 75 percent of coke quenching water
• Produced more clean electricity via our production process than the electricity consumed by it
• Maintained strict environmental management program and adherence to best air pollution control practices

Social Achievements

• Achieved industry-leading Total Recordable Incident Rate (TRIR) of 0.76
• Successfully filled 40 percent of open positions with internal candidates
• Regrettable turnover <1%
• Enhanced Diversity & Inclusion (D&I) training for workforce and recruitment

Governance Achievements

• Formed a Climate Change Team
• Began developing greenhouse gas (GHG) emissions reduction targets
• Initiated a technical feasibility study of carbon capture and sequestration (CCS) technology
• Performed a qualitative climate risk and opportunity analysis
• Safety and environmental performance each accounted for 10% of consolidated company performance goals within the annual incentive plan

Climate Goals & Targets

Environmental Challenges

• Impacts of COVID-19
• Increasing extreme weather events and changing climate conditions
• Reliance on metallurgical coal and fossil fuels in production
• Evolving regulatory requirements and investor/public sentiment related to climate change
• Technical limitations to directly reduce GHG emissions

Mitigation Strategies

• Implemented guidance from federal, state, and local agencies to ensure employee safety during COVID-19
• Encouraged employee vaccinations and provided support
• Continued to invest in innovations that improve processes, increase energy efficiency, decrease GHG emissions, realize climate-related opportunities and mitigate climate-related risks
• Formed Climate Change Team to develop climate strategy
• Began evaluating GHG emission reduction targets
• Conducting technical feasibility study for CCS technology
• Developing a stand-alone climate risk and opportunity register

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct and Ethics
• Compliance with SunCoke’s Environmental and Health and Safety Policies, and Human Rights Policy

Climate-Related Risks & Opportunities

Physical Risks

• Increasing extreme weather events

Transition Risks

• Evolving regulatory requirements
• Investor and public sentiment

Opportunities

• Helping customers achieve GHG reduction goals
• Clean energy production through cokemaking
• Lowering own emissions through CCS technology

Reporting Standards

Frameworks Used: GRI Standards, SASB Iron & Steel Producers Standard, TCFD

Sustainable Products & Innovation

• Foundry coke

Environmental Metrics

ESG Focus Areas

• Occupational Health & Safety
• Advanced Technology for Leading Environmental Performance
• Innovation & Evolution
• Climate Change Management
• Air Emissions
• Energy
• Environmental Compliance
• Waste
• Community Engagement & Relations
• Employee Development, Retention & Diversity

Environmental Achievements

• Achieved zero reportable waste-related spills at all locations
• Recycled 75 percent of coke quenching water
• Haverhill and Middletown facilities approved as eligible Ohio renewable energy resource generating facilities
• Produced more clean electricity via our production process than the electricity consumed by it
• Completed a limited scope life cycle assessment (LCA) demonstrating that by supplying domestically produced coke, SunCoke is playing a part in eliminating a significant amount of CO2 equivalent that could have otherwise been associated with transcontinental transport of imported coke.

Social Achievements

• Achieved industry-leading Total Recordable Incident Rate (TRIR) of 0.69
• Regrettable turnover <1%
• Successfully filled 30 percent of open positions with internal candidates in 2022
• Maintained our very low regrettable (voluntary) turnover of less than 1 percent
• Offered many employee benefits, including tuition reimbursement

Governance Achievements

• Formed ESG Steering Committee by joining the Sustainability Team and the Climate Change Team
• Safety and environmental performance each accounted for 10% of consolidated company performance goals within the annual incentive plan for all non-union employees, including executives
• Updated climate disclosures to align more closely with the recommendations of the TCFD

Climate Goals & Targets

Environmental Challenges

• Potential impacts of a new or more stringent GHG emissions standard
• Increasing regulatory attention concerning climate change and the impact of GHGs
• Potential to suffer negative reputational impacts related to investor and public opinion on fossil fuels
• Technology changes in the steel value chain, particularly alternatives to processes that require coke
• Impacts on operations, supply chains and workforce due to extreme weather

Mitigation Strategies

• Research and Development program to improve existing and develop new cokemaking technologies
• Diversification with foundry coke and pig iron
• Energy savings initiatives
• High water level risk mitigation at Convent Marine Terminal
• Procedures to prepare facilities for extreme cold weather

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier and Vendor Code of Conduct
• Compliance with SunCoke’s Environmental and Health and Safety Policies, SunCoke’s Human Rights Policy, and all applicable environmental, health, and safety regulations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (e.g., flooding, hurricanes, polar vortex)
• Impacts on operations, supply chains and workforce

Transition Risks

• GHG regulations
• Decarbonization of the steel industry
• Alternatives to processes that require coke
• Carbonaceous substitutes for coke
• Customer climate targets

Opportunities

• Support the energy transition by supplying high-quality coke
• Maintain strong customer relationships and optimize operations
• Strengthen business resilience by diversifying product offerings and customers

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• High-quality coke that enables customers to reduce their GHG emissions

Environmental Metrics

ESG Focus Areas

• Occupational Health & Safety
• Advanced Technology for Leading Environmental and Operational Performance
• Innovation and Evolution of Products & Services
• Environmental Compliance
• Climate Change Management
• Waste
• Air Emissions
• Community Engagement & Relations
• Energy
• Employee Development, Retention, and Diversity

Environmental Achievements

• Completed a capital project for foundry coke screening at our Jewell plant that allows for more efficient and effective sorting of foundry coke prior to shipment—saving time, increasing product yield, lowering emissions, and more efficiently allocating operational expenses.
• SunCoke heat recovery technology generated enough electricity to power 63,000 homes in 2023.
• Recycled 75% of coke quenching water.
• Achieved zero reportable waste-related spills at all locations.
• Successfully managed environmental compliance.
• Maintained our strict environmental management program.
• Continued adherence to best air pollution control practices.
• Produced more electricity via our production process than the electricity consumed by it.

Social Achievements

• Awarded the National Maintenance Agreements Policy Committee Zero Injury Safety Incidents Award (ZISA) for the Heat Recovery Steam Generator (HRSG) upgrades project at the Haverhill plant.
• Maintained our goal of zero injuries in the workplace.
• Maintained a very low regrettable (voluntary) turnover of approximately 1%.
• Filled 46% of open positions with internal candidates in 2023.
• Provided diversity and inclusion (D&I) training to our workforce and to our HR managers.
• Continued participation in Middletown Community Advisory Panel (CAP).
• Funded local community programming.

Governance Achievements

• Implemented a more rigorous contractor onboarding process that was put in place for all capital projects.
• All employees successfully completed annual training on our anti-harassment, anti-discrimination, and no-retaliation policies.
• Reviewed and published our sustainability disclosures, including our 2023 Sustainability Report and CDP Climate Change 2023 response.

Climate Goals & Targets

Environmental Challenges

• Risks related to evolving regulatory requirements and investor and public sentiment related to climate change.
• Our reliance on metallurgical coal and fossil fuels in our production process.
• Extreme weather events and changing climate conditions.
• Technical limitations to directly reduce GHG emissions from our production process, paired with opportunities associated with our high-quality, high-CSR coke and more environmentally sound heat-recovery technology.
• The ability to adjust and adapt our operations in the face of increased regulation, investor and community interest, inclement weather, and other effects of climate change.
• GHG and other air emissions created by our manufacturing processes.
• Potential impacts of a new or more stringent GHG emissions standard
• Reputational risks associated with participation in the coal and fossil fuels industries.
• Climate risk mitigation
• Extreme weather (e.g., flooding, hurricanes, polar vortex), and prolonged changes in energy consumption due to warmer winters
• Downstream and upstream impacts from severe weather
• Technology changes in the steel value chain, particularly those that aim to reduce coke consumption
• Customer climate targets

Mitigation Strategies

• Analyzing our own technical options for carbon reduction and exploring opportunities to diversify our product mix.
• Growing our own participation in the market as less environmentally friendly cokemaking facilities are shut down.
• Diversifying our markets and products, including through foundry coke production and a potential partnership with U.S. Steel to manufacture GPI for EAF steelmaking processes.
• Continuing to evaluate energy saving opportunities, such as reducing natural gas use.
• Upgrading the equipment anchoring systems at Convent Marine Terminal (CMT) to mitigate the risks of equipment movement in hurricane conditions.
• Developing procedures to prepare our facilities for extreme cold weather
• Executing our climate strategy.
• Ensuring compliance with various legal obligations, such as measuring and reporting our GHG emissions and determining the need for any changes.
• Continuously refining our climate risk analysis and incorporating the findings into our capital and strategic planning decisions.
• Communicating the environmental benefits of our cokemaking processes to our customers and regulators.
• Continuously improving our processes to reduce energy use and carbon emissions where possible.
• Continuing to invest in innovations that improve our processes, yield, and product portfolio and provide high-strength, high-quality coke to our customers.
• Continuing to monitor climate-related risks as part of our regular risk assessment processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier and Vendor Code of Conduct
• Adherence to SunCoke’s Environmental and Health and Safety Policies, SunCoke’s Human Rights Policy, and all applicable environmental, health, and safety regulations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Extreme cold weather

Transition Risks

• Evolving regulatory requirements
• Changes in demand for steel and coke
• Development of less carbon-intensive alternatives to coke
• Customer climate targets

Opportunities

• Growing market participation as competitors' facilities close
• Diversifying product offerings and customers
• Supporting customers with their decarbonization plans
• Exploring business opportunities and technology to support customers as the steel industry evolves

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Foundry coke

Awards & Recognition

• National Maintenance Agreements Policy Committee Zero Injury Safety Incidents Award (ZISA)