Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Valuing Our People
• Contributing to Communities
• Customer Service & Product Responsibility

Environmental Achievements

• Reduced energy consumption by 4.6 percent compared to 2012.
• CMC Steel Arizona reduces electrical energy consumption by 30-35 kWh (10%) and saves 1,200 standard cubic feet of natural gas per ton per year vs. a conventional mini mill.
• 100 percent of slag recycled.
• 98 percent of baghouse dust recycled.
• Over 95 percent recycled materials used in manufactured finished steel.

Social Achievements

• Total recordable incident rate (TRIR) dropped from 2.0 in 2014 to 1.5 in 2016.
• Invested in apprenticeship programs in the U.S. and Poland.
• Donated $1.3 million to charitable organizations in 2015-2016.
• 100% of CMC employees in 2015 and 99% in 2016 completed the ethics questionnaire.

Governance Achievements

• Established a confidential whistleblowing system in all locations.
• Implemented a new web-based Safety Data Sheet Management System across our U.S. facilities.

Climate Goals & Targets

Environmental Challenges

• Attracting skilled labor
• Water scarcity in the southern U.S.

Mitigation Strategies

• Invested in apprenticeship programs
• Improved water conservation, reuse, and treatment
• Implemented automation to reduce water consumption

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines (Standard Disclosures)

Certifications: ISO 14001 (CMC Poland)

Sustainable Products & Innovation

• Spooled rebar (introduced in 2018)

Awards & Recognition

• Achievement Award from Intertek (CMC Poland)

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Business Ethics
• Local Community Investment & Engagement
• Customer Service & Product Responsibility
• Commitment to Our People

Environmental Achievements

• 5.7% reduction in total energy use in 2018
• Commissioned CMC Recycling Nonferrous Reclamation Project in Lexington, SC in 2018
• Removed and re-processed more than 80,000 tons of material from the landfill for metals recovery in FY18
• Recycled and/or reused more than 95% of the water used in operations in FY17-18
• 100% of slag produced has been captured for reuse since 2014
• >98% of electric arc furnace dust/zinc has been recycled since 2014

Social Achievements

• Achieved the lowest global total recordable incident rate since tracking began in 2018
• 81 sites achieved zero OSHA recordables in 2018
• Launched new safety training in FY17 for 1,446 employees
• Released a formal Workplace & Human Rights Policy in FY18
• Named a “Top 25 Company for Diversity in Texas” in 2018
• Donated $567,620 and $594,230 in FY17 and FY18 respectively to various charities
• Partnered with Gary Sinise Foundation to build five smart homes for veterans

Governance Achievements

• 100% of employees completed ethics training questionnaire in 2018
• All CMC employees have access to a confidential ethics hotline

Climate Goals & Targets

Environmental Challenges

• Water scarcity in the southern U.S.

Mitigation Strategies

• Increased water reuse and recycling rate to over 95%

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: LEED, Suststeel Products Mark

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ChromX® steel

Awards & Recognition

• Durant Main Street Community Partner of the Year
• Durant Area Chamber of Commerce Large Business of the Year
• Top 25 Company for Diversity in Texas

Environmental Metrics

ESG Focus Areas

• Safety
• Innovation
• Energy Management
• Greenhouse Gas Emissions
• Climate Change
• Water Management
• Waste Management
• Product Stewardship
• Corporate Governance
• Ethics & Compliance
• Talent Management
• Community Engagement

Environmental Achievements

• 96% water recycling and reuse rate
• 82% increase in electricity from renewable sources since FY18
• 4% decrease in energy consumption intensity since FY18
• 100% slag recycled
• 8,964,411 tons of scrap metal recycled
• 98% recycled content in finished product
• 99% EAF dust recycled

Social Achievements

• 42% ethnic diversity in our workforce (non-white)
• 117 facilities with a zero incident rate
• Increased community charitable giving since FY18
• >87% global customer satisfaction score
• 60% of our corporate executives are women
• 36% of our board members are women

Governance Achievements

• 99.5% of required employees completed Code of Conduct and Business Ethics training
• Formal Supplier Code of Conduct (SCC) developed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chain
• Climate change risks (legislation, GHG emissions, renewable energy targets, water shortages)

Mitigation Strategies

• Adapted operations to protect employees and contain virus spread
• Established goals to reduce energy consumption, GHG emissions, and water withdrawal by 2030
• Increased renewable energy usage through agreements with electricity providers
• Implemented energy efficiency projects (variable speed air compressors, LED lighting upgrades)
• Developed a formal Supplier Code of Conduct

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (SCC)

Climate-Related Risks & Opportunities

Transition Risks

• Emerging and evolving legislation regarding carbon emission pricing, GHG emissions, renewable energy targets and water shortages

Opportunities

• Increased use of renewable energy sources

Reporting Standards

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

Certifications: ISO 14001 (Poland facilities)

Sustainable Products & Innovation

• Spooled rebar
• CryoSteel®
• ChromX®
• GalvaBar®

Awards & Recognition

• S&P Global Platts Global Metals Awards Deal of the Year Award
• Steel Manufacturers Association’s Achievement in Innovation Award
• Association for Iron & Steel Technology Steelmaker of the Year Award
• Office of Technical Inspection (UDT) Technical Safety Leader recognition
• S&P Global Platts CEO of the Year Award
• Good Employer Award
• Women on Boards “W” Winning Company
• Flatbed Trailer Supplier of the Year for Great Dane
• Ranked one of the Top 100 Places to Work by The Dallas Morning News

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Product Stewardship
• Health & Safety
• Talent Management
• Community Engagement
• Corporate Governance
• Ethics & Compliance
• Sustainable Supply Chain

Environmental Achievements

• Reduced energy consumption intensity by 7.8% since 2019 (surpassing 5% 2030 goal)
• Increased renewable energy usage by almost three percentage points from 7.1% to 9.8% since 2019 (38% increase)
• Recycled and reused 89.6% of water
• Recycled 8.6M tons of metal
• Reduced Scope 1 and 2 GHG emissions intensity by 6.2% since 2019

Social Achievements

• Achieved 41% ethnic diversity in the workplace
• 103 facilities with a zero incident rate
• 50% of corporate executives are women
• Increased community charitable giving since 2019
• 88% global customer satisfaction score

Governance Achievements

• 44% of board members are women
• 99.3% of required employees completed Code of Conduct and Business Ethics training

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Extreme weather events
• Potential impacts of climate change on operations (e.g., rising sea levels, extreme weather, regulatory changes)
• Water shortages in some operating regions

Mitigation Strategies

• Proactive monitoring of global events to minimize supply chain impacts
• Contingency planning
• Investing in renewable energy sources
• Improving energy efficiency
• Implementing water recycling and reuse strategies
• Implementing a corporate sustainability software tool for efficient data collection and reporting

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (SCC) aligned with UN Guiding Principles on Business and Human Rights and ILO Declaration on Fundamental Principles and Rights at Work

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Extreme weather conditions
• Flooding

Transition Risks

• Evolving legislation regarding carbon emission pricing, GHG emissions, renewable energy targets

Opportunities

• Development of energy-efficient products and processes
• Increased use of renewable energy

Reporting Standards

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

Certifications: ISO 14001 (Poland facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CryoSteel®, ChromX®, GalvaBar®

Awards & Recognition

• Environmental Award by First Coast Manufacturers Association (2020)
• Top 100 Places to Work by The Dallas Morning News (2021)
• SMBE Silver Winner by the Florida Sterling Council and FloridaMakes (2021)
• Green Large Business Award by Keep the Midlands Beautiful (2021)
• CRSI Excellence in Safety Award (2021)
• CRSI Safety Achievement Award (2021)
• SMA Zero Lost Time Award (2021)
• Workforce Development Award from the Seguin Economic Development Corporation (2021)
• John Bell Award for Dr. Sam Matson (2021)

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• 127% increase in electricity from renewable sources since 2019
• 88.4% water recycling and reuse rate
• 13.8% decrease in Scope 1 and 2 emissions intensity over 2019 baseline
• 7.4% increase in waste recycled since 2021
• More than 19 billion pounds of recycled metal kept from landfills

Social Achievements

• 46% of our facilities had a zero incident rate
• 60% of our executive leadership team are women
• 136% increase in our community charitable giving since 2019
• 100% of employees received performance reviews
• Dallas Morning News voted CMC one of “Top 100 Places to Work” for second year in a row

Governance Achievements

• Implemented global ESG management system with controls to increase transparency and improve data collection
• 44% of our Board members are women
• 63% of our continuing directors and director nominees are ethnically or gender diverse

Climate Goals & Targets

Environmental Challenges

• Periods of extended inclement weather or flooding may inhibit construction activity, delay or hinder product shipments, or reduce scrap metal inflows.
• Economic downturns in the U.S. and Central Europe, or decisions made by individual governments, can adversely impact our supply chain and demand for our products.

Mitigation Strategies

• Active and innovative management of GHG emissions, energy, air pollutants, water use, material sourcing and waste production
• Adopting an approach to procurement that seeks to move the supply chain closer to our operations
• Developing a supply chain program that extends our ESG commitments and sustainable practices to our suppliers (planned for 2023)

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Conflict minerals policy
• Supply Chain Academy courses

Climate-Related Risks & Opportunities

Physical Risks

• Extended inclement weather or flooding

Transition Risks

• Legislation regarding carbon emission pricing

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI 2021 Standards, SASB Iron & Steel Producers Standard, TCFD recommendations

Certifications: ISO 14001:2015 (CMC Poland, CMC Steel New Jersey, Tensar UK and China), ISO 45001:2018 (Tensar China)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

CMC's activities align with these goals through recycling, efficient steel production, renewable energy use, and resilient infrastructure.

Sustainable Products & Innovation

• RebarZero™ (carbon-neutral)
• CryoSteel ® (cryogenic reinforcing steel)
• ChromX ® (high-strength, corrosion-resistant steel)
• GalvaBar® (zinc-alloy-coated rebar)

Awards & Recognition

• Dallas Morning News Top 100 Places to Work
• CRSI’s Excellence in Safety Award (38 facilities)
• CRSI’s Safety Achievement Award (8 facilities)
• Tensar Disability, Inclusion & Inclusive Recruitment Award
• Missouri Recycling Association’s “Legacy Recognition” Achievement Award
• Forbes Poland’s Best Employers 2022

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 12% decrease in Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions intensity over 2019 baseline
• 8.1 million metric tons of recycled metal kept from landfills
• 88% water recycling and reuse

Social Achievements

• 114 of our facilities had a zero incident rate
• 50% of our Executive Leadership Team (ELT) are women
• 49% of our workforce is diverse (female & non-white male)
• 285% increase in our community charitable giving since 2019

Governance Achievements

• 44% of our Board members are women
• Proactive board refreshment with three new directors in the past three years

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (extreme weather, heat waves impacting operations)
• Supply chain disruptions due to economic downturns or geopolitical crises
• Evolving regulatory requirements for sustainability disclosures

Mitigation Strategies

• Proactive management of GHG emissions, energy, air pollutants, water use, material sourcing, and waste generation
• Moving supply chain closer to local operations where possible
• Performing a TCFD-aligned climate risk analysis
• Bolstering compliance program, enhancing risk management, and expanding engagement with suppliers

Supply Chain Management

Supplier Audits: Strategy and risk books program (combination of on-site visits and virtual data gathering)

Responsible Procurement

• Supplier Code of Conduct
• Conflict minerals statement
• Focus on local sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Heat waves

Transition Risks

• Legislation on carbon emission pricing
• Rising electricity prices

Opportunities

• Increased demand for construction-related products due to climate impacts
• Increased demand for low-carbon products

Reporting Standards

Frameworks Used: GRI 2021 Standards, SASB Iron & Steel Producers Standard, TCFD recommendations

Certifications: ISO 14001:2015 (Poland, New Jersey, UK, China Tensar)

Third-party Assurance: WAP Sustainability (limited assurance)

UN Sustainable Development Goals

• 6
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 17

CMC's initiatives contribute to these goals through various activities detailed in the UN SDGs Index section of the report.

Sustainable Products & Innovation

• RebarZero™
• Merchant Zero™
• Tensar Geogrid

Awards & Recognition

• Dallas Morning News Top 100 Places to Work
• Forbes Poland’s Best Employers
• Newsweek America’s Most Responsible Companies
• As You Sow Clean200 company
• Willy Korf/Ken Iverson Steel Vision Award
• Eaton Supplier Excellence Award
• Good Employer (Poland)
• Women’s Forum of New York Corporate Champions

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Governance

Environmental Achievements

• Completed a TCFD-aligned climate risk assessment in 2023.

Governance Achievements

• Board oversight of climate-related risks and opportunities.
• Management's role in assessing and managing climate-related risks and opportunities.

Climate Goals & Targets

Environmental Challenges

• Rising electricity prices
• Physical impacts of climate change (rising sea levels, extreme weather)
• Legislation on carbon emission pricing

Mitigation Strategies

• TCFD-aligned climate risk analysis (2023)
• Establishing 2040 and 2050 emission targets to reach net zero by 2050
• Investigating productivity loss at facility sites due to climate events
• Tracking carbon pricing for raw materials
• Engaging critical suppliers
• Tracking customer requests for sustainability criteria
• Preparing for upcoming sustainability reporting regulations

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Extreme weather conditions

Transition Risks

• Legislation on carbon emission pricing
• Rising electricity prices

Opportunities

• Increased demand for construction-related products due to climate impacts
• Increased demand for products and services due to low-carbon market

Reporting Standards

Frameworks Used: TCFD