Climate Change Data

Knife River Corporation

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:471,506 tCO2e/year (Scope 1 and 2 combined)
Scope 1 Emissions:421,670 tCO2e/year
Scope 2 Emissions:49,836 tCO2e/year
Renewable Energy Share:27% (renewable diesel)

ESG Focus Areas

  • People
  • Safety
  • Quality
  • Environment
  • Governance
  • Social

Environmental Achievements

  • Reduced Scope 1 emissions from 454,456 tons in 2022 to 421,670 tons in 2023
  • Reduced Scope 2 emissions from 51,237 tons in 2022 to 49,836 tons in 2023
  • Renewable diesel accounted for approximately 27% of the company’s total diesel fuel consumption in 2023.
  • Used approximately 21,000 railcars to ship 2.2 million tons of aggregate material in 2023, reducing reliance on trucks.
  • Shipped approximately 534,500 tons of aggregate products via barge in 2023, eliminating approximately 17,500 truck deliveries.
  • Implemented fuel conservation programs and automatic shutdown systems on heavy-haul trucks to reduce emissions.
  • In California, met on-road diesel emission standards two years ahead of schedule.
  • Recycled 2.7 million gallons of oil and 358 tons of steel through Jebro Inc. in 2023.

Social Achievements

  • Lower turnover than the industry and the US average.
  • Raised almost $96,000 and donated supplies to victims of the Maui wildfires.
  • Provided training to over 1,100 students through 78 separate courses at the Knife River Training Center in 2023.
  • Partnered with the National Association of Minority Contractors to provide scholarships and outreach efforts.
  • Implemented diversity, equity, and inclusion programs, including unconscious bias training and anti-racism training.

Governance Achievements

  • Established a robust compliance program, including a 24/7 ethics hotline.
  • Maintains a diverse board of directors (50% women and minorities).
  • Implemented a Compliance Reporting and Investigation Policy, which also covers whistleblower protection.

Climate Goals & Targets

Long-term Goals:
  • Net-zero carbon emissions (long-term goal, timeline not specified)
Short-term Goals:
  • Evaluate corporatewide carbon emission intensity goals.

Environmental Challenges

  • Potential negative impacts of climate change on construction activities due to greater weather volatility.
  • Carbon pricing programs in Oregon and Washington adding to operational costs.
  • Stringent California emission reduction regulations.
  • Advanced Clean Fleets regulations in California requiring fleet replacement with zero-emission vehicles.
Mitigation Strategies
  • Continuously evaluating and updating equipment to the most efficient and cost-effective options.
  • Implementing fuel conservation programs and using renewable diesel fuel.
  • Utilizing rail and barge transportation to reduce reliance on trucks.
  • Proactive in meeting early emission reduction targets in California.
  • Working with multiple suppliers to determine the best path forward to comply with California's Advanced Clean Fleets regulations.

Supply Chain Management

Responsible Procurement
  • Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Greater volatility in weather patterns
Transition Risks
  • Carbon pricing programs
  • Stringent emission regulations
Opportunities
  • Longer construction seasons in some areas
  • Infrastructure repair opportunities after climate events

Reporting Standards

Frameworks Used: SASB (Construction Materials framework), TCFD

Sustainable Products & Innovation

  • Warm-mix asphalt
  • Rubberized asphalt
  • Exploration of synthetic aggregates