Climate Change Data

Environmental Metrics

ESG Focus Areas

• Mine Safety

Social Achievements

• The Company believes it is responsible to employees to provide a safe and healthy workplace environment. The Company seeks to accomplish this by: training employees in safe work practices; openly communicating with employees; following safety standards and establishing and improving safe work practices; involving employees in safety processes; and recording, reporting and investigating accidents, incidents and losses to avoid reoccurrence.

Climate Goals & Targets

Environmental Challenges

• Accident at the Company’s St. Clair plant in Oklahoma, resulting in a fatality.
• Proposed Mine Safety and Health Administration assessments.
• Increased fuel, electricity, transportation and freight costs
• Inadequate demand and/or prices for the Company’s lime and limestone products due to the state of the U.S. economy, recessionary pressures in particular industries, including highway and housing related construction and steel, and inability to continue to increase or maintain prices for the Company’s products
• Uncertainties of development, production, pipeline capacity and prices with respect to the Company’s Natural Gas Interests, including reduced drilling activities pursuant to the Company’s O & G Lease and Drillsite Agreement, unitization of existing wells, inability to explore for new reserves and declines in production rates
• On-going and possible new regulations, investigations, enforcement actions and costs, legal expenses, penalties, fines, assessments, litigation, judgments and settlements, taxes and disruptions and limitations of operations, including those related to climate change and health and safety

Mitigation Strategies

• All matters relating to the accident have been resolved except for proposed Mine Safety and Health Administration assessments, which are not considered by management to be material to the Company’s financial condition, results of operations or cash flows, and are currently being contested by the Company.
• The Company seeks to accomplish this by: training employees in safe work practices; openly communicating with employees; following safety standards and establishing and improving safe work practices; involving employees in safety processes; and recording, reporting and investigating accidents, incidents and losses to avoid reoccurrence.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Incurred capital expenditures related to environmental matters of approximately $395 thousand in 2013.
• Received the necessary air permit from the Oklahoma Department of Environmental Quality to replace the non-preheater kiln with the construction of a new highly efficient vertical heat regenerative kiln.

Social Achievements

• The Company believes that its employee relations are good.
• Company contributions to 401(k) plans were $156, $161 and $147 in 2013, 2012 and 2011, respectively.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased revenues during the year and increased costs of revenues and decreased sales volumes in the fourth quarter 2013 due to inclement weather conditions.
• Decreased production of natural gas and natural gas liquids compared to 2012.
• Difficult economic conditions in the U.S. reduced demand for lime and limestone products.
• Increased coal, petroleum coke, diesel, natural gas, electricity, transportation and freight costs.
• Fluctuating demand for lime and limestone products.
• Changes in legislation and regulations, including Environmental Laws, health and safety regulations and requirements to renew or obtain operating permits.
• Inclement weather and the effects of seasonal trends.
• Governmental fiscal and budgetary constraints and legislative impasses.
• Operating risks beyond control (geological formation problems, accidents, equipment failures, strikes, adverse weather).

Mitigation Strategies

• Seeking to maintain, and increase where possible, both sales volume and prices for products.
• Exploring ways to improve and expand operations and production capacity through major development projects and acquisitions.
• Varying the mixes of fuel used in kilns, and passing on some increased costs to customers.
• Financing modernization and expansion projects through debt financing and cash flows from operations.
• Focusing on maintaining, and increasing where possible, lime and limestone prices to offset increased costs.
• Continuing to explore ways to expand operations and production capacity through major development projects and acquisitions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• inclement weather

Transition Risks

• climate change legislation and regulations limiting greenhouse gas emissions

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Incurred capital expenditures related to environmental matters of approximately $1.0 million
• Recurring costs associated with managing environmental permitting and waste recycling and disposal amounted to approximately $0.9 million

Social Achievements

• Good employee relations
• Paid $2.8 million in quarterly cash dividends during the year

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased costs of revenues
• Demand for lime and limestone products hampered by inclement weather conditions and reduced demand due to reduced drilling activities
• Normal declines in production from existing wells
• Decline in natural gas prices in recent months

Mitigation Strategies

• Increase revenues and control operational and selling, general and administrative costs
• Maintain and increase lime and limestone prices to offset increased costs
• Explore ways to improve and expand operations and production capacity through major development projects and acquisitions

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Construction of a new, more fuel-efficient kiln and related plant improvements at St. Clair plant.
• Capital expenditures related to environmental matters of approximately $0.5 million.

Social Achievements

• Good employee relations.
• Company contributions to 401(k) savings plans for non-union and union employees.

Governance Achievements

• No debt outstanding at December 31, 2016.
• Extension of share repurchase program.
• Increased regular quarterly cash dividend.

Climate Goals & Targets

Environmental Challenges

• Fluctuating demand and prices for lime and limestone products.
• Increased competitive pressures from other lime producers.
• Changes in legislation and regulations (Environmental Laws, health and safety regulations).
• Volatile costs (fuel, electricity, transportation, freight).
• Inclement weather and seasonal trends.
• Reduced demand from certain industries (steel, oil and gas services, coal-fired utility plants).
• Depleting natural gas reserves and no exploration for new reserves.
• Volatile natural gas and natural gas liquids markets.

Mitigation Strategies

• Improve revenues and control expenses.
• Maintain and increase lime and limestone prices.
• Increase operating efficiency of plants and facilities (new kiln project).
• Explore ways to expand production capacity through acquisitions.
• Modernization and expansion projects in Texas and Arkansas.
• Acquisitions of St. Clair operations and Texas slurry operations.
• Varying fuel mixes in kilns and passing on increased costs to customers.
• Construction of a new, more fuel-efficient vertical kiln at St. Clair.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Inclement weather

Transition Risks

• Regulation of greenhouse gas emissions

Opportunities

• Development of energy-efficient products