Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Health and Safety
• Community Involvement
• Supply Chain Responsibility

Environmental Achievements

• Installed motion sensor switches to conserve energy
• Recycled office paper, aluminum cans, plastic bottles, and waste wood products
• Replaced existing lights with LEDs in some facilities, increasing efficiency by up to 90%
• Implemented a new operating schedule in Lebanon, KY to conserve energy
• ATI Specialty Materials recirculates processing water for minimal water consumption
• Richburg, SC Operations employs a closed-loop recycling system
• Waste stainless steel liners recycled and reused as raw material

Social Achievements

• Established ATI Veterans Network
• Donated $865,000 to United Way campaigns
• Contributed 500–1,000 hours of volunteer service through United Way Day of Caring
• Participated in U.S. Marine Corps Toys for Tots toy drive
• Supported community college and university partnerships, employing college students (~$1.3M annually)
• Implemented a Volunteer Incentive Program (VIP), donating ~$4K to employee-championed non-profits
• Donated land in Pennsylvania for community projects

Governance Achievements

• Full compliance with Dodd-Frank Act regarding conflict minerals
• Implemented internal risk-based due diligence procedures for conflict minerals
• Commitment to respecting human rights and prohibiting human trafficking and slave labor

Climate Goals & Targets

Environmental Challenges

• Slightly increased incident rates over the past four years
• Need to expand reporting to include all global operations by 2020
• Not all facilities were ISO 14001 and 45001 certified in 2017

Mitigation Strategies

• Continuous work to identify and reduce potential risks (hand injuries, slips, trips, falls)
• Modifying job procedures, adjusting PPE, and providing training
• Goal to have every operation certified to both ISO 14001 and ISO 45001 by 2020

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Purchasing materials from legitimate and reputable suppliers
• Maintaining a sustainable and responsible supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 140001 (45% of operations), OSHAS 18001 or ISO 45001 (63% of operations)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Materials used in fuel cell batteries, battery storage, turbines, solar panels, LED lamps, OLED screens
• Biomedical implant materials
• Zirconium alloys for MRI technology
• Materials for desalinization

Awards & Recognition

• Mayor’s Environmental Quality Control Award (Louisville, OH Operations)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Safety
• Supply Chain

Environmental Achievements

• Reduced nitric acid usage by 57%, hydrofluoric acid by 30%, sulfuric acid by 25%, lime by 35%, and wastewater treatment plant sludge by 20% through acid regeneration systems.
• Developed a process to produce briquettes from spent shotblast baghouse dust and scale, replacing purchased metallics and reducing waste.
• Achieved a 5% reduction in graphite electrode consumption at the Brackenridge facility.
• Reduced energy consumption by 1% at the Cudahy forging operation through lighting projects.
• Installed a VFD exhaust fan at the Vandergrift facility, reducing energy consumption by 295,100 kilowatt hours annually.
• Purchased over half a million MWh of electricity from renewable sources.

Social Achievements

• Launched an annual Employee Engagement Survey to improve the work experience.
• Launched the Global Leadership Development Program to train frontline leaders and management employees.
• Donated over $20,000 to fire departments and emergency rescue units.
• Achieved 100% participation in the annual United Way workplace campaign, donating $215,000.
• Engaged in various community involvement activities such as food drives, volunteer work, and charitable giving.

Governance Achievements

• Announced a female Board Chair for 2019.
• Annual training and education of employees on the code of conduct and ethical behavior.
• Supplier due diligence on potential key suppliers to manage risk in our supply chain.

Climate Goals & Targets

Environmental Challenges

• Data collection issues affecting baseline year for some metrics.
• Potential supply chain disruptions due to unstable political and economic conditions in foreign countries sourcing raw materials.
• Potential for human rights violations among suppliers.
• Potential impact of climate change on operations and costs.
• Implementation of Carbon Cap-and-Trade Plans.

Mitigation Strategies

• Established a cross-functional water conservation team.
• Entered into long-term supply contracts where possible.
• Require suppliers to comply with ATI’s Corporate Guidelines for Business Conduct and Ethics.
• Investing in newer, more efficient processing technology.
• Implementing energy efficiency programs (e.g., LED lighting).
• Purchasing energy from renewable sources.
• Expanding processes for screening suppliers, verifying compliance, and enforcing expectations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Require suppliers to comply with ATI’s Corporate Guidelines for Business Conduct and Ethics.
• Supplier onboarding process requiring compliance with laws and regulations and demonstration of a program for compliance and ethical standards.

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather affecting operations

Transition Risks

• Carbon Cap-and-Trade Plans

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001 (46% of operations by Q3 2019), OSHAS 18001 or ISO 45001 (65% of operations by end of 2018)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products for next-generation jet engines; materials for solar, fuel cell, and geothermal applications; specialty materials for highly corrosive environments; alloys for medical applications.

Awards & Recognition

• Recognized for eight consecutive years by 2020 Women on Boards for having a Board comprised of 20% women.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Sustainability
• Diversity & Inclusion
• Community Involvement
• Corporate Governance

Environmental Achievements

• 45% decline in Greenhouse Gas (GHG) emissions since 2018
• More than 7 billion gallons of water recycled by manufacturing facilities in 2021
• More than 62% recycled materials used in production

Social Achievements

• 53% decline in lost time rate since 2018
• 48% decline in recordable incident rate since 2018
• 43.1% of 2021 new hires were diverse candidates

Governance Achievements

• Published first stand-alone TCFD report in April 2022
• Adopted the Task Force on Climate-Related Financial Disclosures (TCFD) reporting framework for 2021
• 8 out of 9 directors on the Board are independent

Climate Goals & Targets

Environmental Challenges

• Lower production volumes due to the COVID-19 pandemic impacting energy intensity and emissions data
• Challenges in using recycled materials in the production of highly-specialized products
• Ongoing consolidation and restructuring of facilities impacting ISO 14001 certification goal

Mitigation Strategies

• Strategic plans for reducing energy intensity and carbon emissions including purchasing carbon-free energy, conducting energy audits, investing in new technology, installing energy-efficient lighting, replacing/optimizing compressors, maximizing production capabilities, purchasing RECs, and installing carbon-free power sources
• Consistently evaluating opportunities to recycle scrap generated in production
• Re-evaluating ISO 14001 certification goal in 2022

Supply Chain Management

Responsible Procurement

• ATI’s Supplier Expectations and Supply Chain Policies (addressing integrity, ethics, safety, health, environmental compliance, anti-corruption, anti-bribery, and human rights)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ISO 14001 (18 of 34 facilities), OHSAS 45001 (85% of operating facilities)

Sustainable Products & Innovation

• Materials for green hydrogen production, geothermal applications, nuclear power generation, energy storage and pollution control; alloys and components for land-based gas turbines, solar and geothermal power applications, electrolyzers, sustainable nuclear energy applications, fuel cell interconnects, solid oxide fuel cells, and next-generation aircraft

Awards & Recognition

• N.C. Department of Labor Safety Gold Award (ATI Specialty Materials)
• ATI CEO Award for Safety and Sustainability (Solar Array project)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Corporate Governance
• Workplace Safety
• Community Engagement

Environmental Achievements

• 45% decline in Greenhouse Gas (GHG) emissions since 2018
• More than 7 billion gallons of water recycled by manufacturing facilities in 2022
• More than 120,000 tons of recycled materials used in production (73% of all feedstock)

Social Achievements

• Over 40% of nearly 1,000 new hires in 2022 enhanced gender, ethnic, and racial diversity or were veterans
• World-class safety record with zero fatalities and a recordable incident rate of 1.22 in 2022
• Launched ATI Women’s Network (AWN) with five chapters and enterprise business executive sponsorship

Governance Achievements

• Expanded Board to include a new director and two new senior leaders, increasing gender, racial, and ethnic diversity
• 9 out of 10 directors are independent
• Robust stock ownership guidelines for directors and executive management

Climate Goals & Targets

Environmental Challenges

• Managing GHG emissions from high-heat production processes
• Balancing the use of recycled materials with the production of highly specialized products
• Maintaining environmental compliance across multiple facilities and jurisdictions

Mitigation Strategies

• Purchasing carbon-free energy where available
• Investing in new technology and energy-efficient equipment
• Implementing water reclamation and reuse strategies
• Evaluating options for battery storage systems and constructing renewable energy sources
• Consistently evaluating opportunities to recycle scrap generated in production

Supply Chain Management

Responsible Procurement

• ATI’s Supplier Expectations and Supply Chain Policies (outlined on website)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ISO 14001 (18 of 34 facilities), ISO 45001 (nearly 90% of operating facilities)

Sustainable Products & Innovation

• Materials for green hydrogen production, geothermal applications, nuclear power generation, energy storage and pollution control

Awards & Recognition

• N.C. Department of Labor Safety Gold Award (2022)
• ATI CEO Award for Safety and Sustainability (Solar Array project)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Supply Chain Sustainability

Environmental Achievements

• 42% decrease in absolute Scope 1 and 2 GHG emissions in 2023 compared to 2018
• Lighting retrofits reduced aggregate annual energy usage by more than 10,000 MWh
• Annual purchases of carbon-free electricity since 2019 comprising a significant portion of electricity used

Social Achievements

• Not disclosed

Governance Achievements

• Established a cross-functional TCFD working group
• Board oversight of climate-related risks and opportunities

Climate Goals & Targets

Environmental Challenges

• Transition risks associated with a low-carbon economy (policy, legal, technology, market, reputation)
• Physical risks from climate change (acute events and chronic shifts)

Mitigation Strategies

• Proactive GHG emission reduction targets
• Focus on resource efficiency and process improvements
• Transitioning to low-carbon and renewable energy sources
• Monitoring regulatory landscape and stakeholder expectations
• Engaging with customers and suppliers on sustainability initiatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Coastal and river flooding
• Wildfires
• Drought
• Extreme heat

Transition Risks

• Policy and legal changes
• Technological advancements
• Market shifts
• Reputational risks

Opportunities

• Growing demand for sustainable products
• Resource efficiency improvements
• Transition to renewable energy sources

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lighter, more fuel-efficient jet engines
• Materials for solar, geothermal, and nuclear energy applications
• Products for green hydrogen production and pollution control

Awards & Recognition

• Not disclosed