Page 41 - 2020 Sustainability Report

ENVIRONMENTAL STEWARDSHIP

Our Aggregates and Downstream Businesses

In our aggregates product line, which is the largest of our businesses, the primary source of our Scope 1 CO e emissions is
2
the consumption of diesel fuel in our quarry operations. The same is largely true of our targeted downstream operations,
namely ready mixed concrete and asphalt and paving services, that have similar mobile combustion sources, including off-
road and on-road equipment. These downstream businesses also use natural gas in their processes, and those emissions,
while considerably smaller than their diesel-related emissions, are included in the total carbon footprint provided in this
report.

1
1
Scope 1 GHG Emissions (in metric tonnes) Scope 1 GHG Emissions Financial Performance Ratio
Aggregates and Targeted Downstream Businesses Aggregates and Targeted Downstream Businesses

534 154.4
502 519 151.1 144.5 133
479
Metric Tonnes of Scope 1 GHG Emissions (x 1,000) GHG Emissions / $M in Product and Services Revenue

2017 2018 2019 2020 2017 2018 2019 2020

1 Scope 1 GHG Emissions = Direct emissions, less transportation and international operations.

In an effort to mitigate the risks to the Company associated with GHG emissions while ensuring and improving financial
sustainability, we have made significant capital investments in our mobile fleet in both the aggregates and targeted
downstream businesses. We have also invested significant capital to right-size our operations, which can result in an
operation using fewer pieces of equipment and, for the aggregates business, shorter haul distances from the mine to
the crushing plant. See “Our Roadmap” starting on page 41 of this report.

Notably, like our Magnesia Specialties business, our
“In an effort to mitigate the risks aggregates business also produces material that is
used by others to reduce emissions. For example, our
to the Company associated with
limestone aggregate operations produce substantial
GHG emissions while ensuring and quantities of scrubber stone sold to power producers
improving financial sustainability, for use in reducing the sulfur dioxide (SO ) emissions
2
generated by their coal-fired plants. As noted earlier,
we have made significant capital our aggregates production — although it
investments in our mobile fleet at represents the majority of our facilities and
consolidated revenue — has a small direct GHG
both the aggregates and targeted emissions footprint.
downstream businesses.”

MARTIN MARIETTA 39