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