Climate Change Data

DMC Global Inc.

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:3,210 tCO2e
Scope 1 Emissions:3,210 tCO2e
Scope 2 Emissions:4,290 tCO2e
Renewable Energy Share:6.9%
Total Energy Consumption:82,578 GJ
Water Consumption:18,060 m3
Waste Generated:9,986 tons
Carbon Intensity:0.00003 tCO2e/$ of revenue

ESG Focus Areas

  • Safety
  • Diversity, Equity and Inclusion
  • Cybersecurity
  • Digitalization
  • Environmental Stewardship
  • Responsible Sourcing
  • Community Engagement
  • Governance

Environmental Achievements

  • Zero environmental incidents in 2021
  • 6.9% renewable energy use
  • 20.9% renewable electrical use
  • 2,658 tons of recycled metals used

Social Achievements

  • Completed first pay equity study of U.S. employees
  • Adopted Diversity, Equity and Inclusion Policy
  • 27,833 hours of safety training completed (average 58 hours per employee)
  • NobelClad Europe achieved over 800 days without a Lost-Time Incident
  • Various community engagement initiatives across multiple locations

Governance Achievements

  • Continued advancement of cybersecurity maturity
  • Implemented vulnerability management and incident detection and response tools and processes
  • No material cybersecurity breach

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Expand pay equity study to non-U.S. and Arcadia employees
  • Further diversity and inclusion efforts with in-person training
  • Accelerate digitalization initiatives
Short-term Goals:
  • Debt reduction
  • Arcadia integration
  • Improve 3-year average Lost-Time Incident Rates (LTIR) and Total Recordable Incident Rates (TRIR)

Environmental Challenges

  • COVID-19 pandemic impacts on operations and employee well-being
  • Supply chain disruptions
  • Increasingly complex regulatory and business environments
  • Climate change related physical and transition risks (extreme weather, regulatory changes)
Mitigation Strategies
  • Adherence to health and safety protocols
  • Daily digital health surveys
  • Emphasis on employee assistance programs
  • Voluntary COVID-19 vaccine programs
  • Risk assessment and mitigation strategies for extreme weather
  • Monitoring of climate-related transition risks
  • Engagement with stakeholders to understand needs and concerns

Supply Chain Management

Responsible Procurement
  • Ethical sourcing commitments
  • Conflict Minerals Policy
  • Human Rights Policy
  • Supplier onboarding processes (due diligence questionnaires, credit checks, compliance reviews)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (hurricanes, tornadoes, flooding)
Transition Risks
  • Regulatory changes
  • Market shifts
  • Increased costs of compliance
Opportunities
  • Development of energy-efficient products
  • New products or businesses related to alternative energy

Reporting Standards

Frameworks Used: GRI Core Standards, SASB, TCFD

Certifications: ISO 45001:2018

Sustainable Products & Innovation

  • DynaEnergetics IS2™ and DS systems
  • NobelClad DetaPipe™

Awards & Recognition

  • IME Award of Safety (DynaEnergetics)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:13836 tCO2e
Scope 1 Emissions:5,706 tCO2e
Scope 2 Emissions:8,130 tCO2e
Renewable Energy Share:11.1%
Total Energy Consumption:185,546 GJ
Water Consumption:118,810 m3
Waste Generated:3470 tons (landfill)
Carbon Intensity:0.00002 tCO2e/$ of Revenue

ESG Focus Areas

  • Safety
  • Energy Conservation
  • Raw Material and Waste Management
  • Employee Development
  • Community Engagement

Environmental Achievements

  • NobelClad reduced annual cutting-related energy consumption by 58%.
  • DynaEnergetics' perforating guns use less metal and plastic.
  • DynaEnergetics' packaging programs are expected to reduce annual cardboard consumption by 70% (237,000 pounds).

Social Achievements

  • NobelClad's Liebenscheid facility completed 2022 without a single lost-time or recordable incident.
  • DMC completed diversity, inclusion, and harassment training for all U.S.-based employees.
  • Arcadia implemented biannual harassment training for all employees.

Governance Achievements

  • DMC rolled out its Code of Ethics to all Arcadia locations.
  • Live Code of Ethics training was provided to approximately 954 employees.
  • Targeted compliance training continued, focusing on anti-bribery, anti-corruption, insider trading, and cybersecurity.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions (not explicitly stated as a long-term goal, but implied through various initiatives)
Medium-term Goals:
  • Complete Phase 1 of Arcadia’s ERP system
  • Finish implementation of an ERP system for NobelClad
  • Continue capacity expansion projects in Arcadia and NobelClad
  • Broaden Arcadia’s participation in sustainability and environmental certification processes
Short-term Goals:
  • Optimize DynaEnergetics product designs and manufacturing processes to decrease material usage and increase manufacturing efficiency
  • Accelerate the integration of Arcadia
  • Improve DMC’s cash flow
  • Continue NobelClad’s efforts to innovate in applications and materials

Environmental Challenges

  • Supply chain disruptions
  • Fluctuations in customer demand
  • Fluctuations in foreign currencies
  • Fluctuations in tariffs and quotas
  • Cost and availability of energy
  • Cyclicality of businesses
  • Competitive factors
  • Geopolitical and economic instability
  • Inflation
  • Supply chain delays and disruptions
  • Transportation disruptions
  • General economic conditions
Mitigation Strategies
  • Deleveraging and building cash reserves
  • Targeted and strategic capital investment
  • Enterprise risk planning systems in Arcadia and NobelClad
  • Securing access to NobelClad’s Konigzug shooting site
  • Improving DMC’s cash flow through cost and capital discipline and operating excellence
  • Focusing on highest return on investment (ROI) initiatives
  • Strengthening relationships with suppliers to ensure continuity of supply
  • Ensuring suppliers are aligned with ethical sourcing commitments

Supply Chain Management

Responsible Procurement
  • Ethical sourcing commitments
  • Compliance with Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (hurricanes, tornadoes, extreme heat/cold)
  • Flooding
  • Damage to roads and worksites
  • Facility damage
  • Harm to employee health
Transition Risks
  • Policy and legal risks
  • Disclosure obligations
  • Environmental and climate-related regulations
  • Increased operational expenditures
  • Escalated transportation costs
  • Surging fuel and energy expenses
  • Potential power disruptions
  • Regulations curbing oil and gas activities
  • Reputational challenges
Opportunities
  • Development of more streamlined and cost-efficient products
  • New applications and markets
  • Opportunities in alternative energy (concentrated solar power, wind, hydrogen, geothermal)

Reporting Standards

Frameworks Used: GRI Core Standards, SASB, TCFD

Sustainable Products & Innovation

  • DynaSlot™ (well sealing)
  • Cylindra™ (cryogenic transition joints)
  • DetaPipe™ (corrosion-resistant pipe)
  • Energy-efficient aluminum and steel framing systems (Arcadia)
  • Red List Free products (Arcadia)