var textForPages = ["BUILDING. CARING. GROWING. TOGETHER. 2020 Sustainability Report Our Hatton Quarry Cove, Arkansas","Contents A Message From Our CEO 1 Environmental Stewardship 29 Company Overview 4 Employee Well-Being 58 Sustainability 13 Community Well-Being 69 Safe Operations 17 Appendix 75","CEO Letter A Message From Our CEO To our Stakeholders, For Martin Marietta and our employees, 2020 was an unprecedented year of uncertainties, resiliency, progress and growth. I am grateful and proud to say that our Company has been navigating the challenges of a historic pandemic while delivering record-setting financial, safety and other performance as we also support our local communities. We believe these accomplishments demonstrate both our commitment, and how we are positioned, to create a positive, lasting impact and to succeed in delivering exceptional, sustainable value to our employees, customers, investors and the communities in which we live and operate. This report will provide you with more details on these important topics. In last year’s letter, published in April 2020 at the beginning of the coronavirus (COVID-19) outbreak, I noted that we, together with our Board of Directors, were actively monitoring emerging developments, taking steps to prepare for and respond to the challenges and uncertainties posed by the pandemic, and proactively implementing responsible actions across our enterprise to keep our employees, stakeholders and business safe and healthy. Throughout 2020, and as of the date of this letter, we have remained open for business, and as we continued to meet our customers’ needs, the Company achieved record profits and earnings. ADJUSTED EBITDA* EARNINGS PER DILUTED TOTAL PRODUCTS AND GROSS PROFIT SERVICES REVENUES +11% SHARE +6% +18% < 1% $1,393M $1,253M $11.54 $4,422M $4,432M $70M $1,255M $0.87 $1,179M $9.74 $1,323M $10.67 2019 2020 2019 2020 2019 2020 2019 2020 *Adjusted EBITDA and earnings per diluted share for 2020 included $70 million and $0.87, respectively, of nonrecurring gains on surplus, non-core land sales and divested assets. Adjusted EBITDA is a non-GAAP financial measure. See Appendix for reconciliation to nearest GAAP measure. To do this, we established internal task forces on COVID-19 planning and employee communications, implemented robust health safety protocols consistent with the recommendations of the Centers for Disease Control and Prevention and maintained close contact with our industrial hygienist group doctors. This has included rules for social distancing, enhanced cleaning, canceling all non-essential in-person meetings and business travel, and establishing contingency plans with respect to facility staffing, all of which resulted in recording to date only a handful of employee-to-employee transmission cases. Our ability to manage the potential risks of COVID-19 to our business, even while being an essential business and operating every day all across the country, is both a reflection of, and testament to, the care we have for our employees’ well-being and our commitment to operating our business responsibly. MARTIN MARIETTA 1","CEO Letter WE CONTINUE TO PROVE THAT ZERO IS POSSIBLE 99.8% 98.9% 79 of employees experienced of employees experienced business units have worked ZERO lost-time incidents ZERO incidents more than 500,000 hours with ZERO lost-time injuries Over the years, we have built a solid foundation for ensuring our employees and managers have the information, tools and resources to operate our business safely and efficiently and, in 2020, it was tested and shown to be robust and resilient. For the fourth year in a row, Martin Marietta delivered a world-class safety performance in our industry with 99.8 percent of our approximately 9,000 employees experiencing zero lost-time incidents. In 2020, our performance represented the best safety record in Martin Marietta’s history with Company-wide lost time and total injury incident rates at 0.15 and 0.93, respectively. We recognize that our employees are our most valuable assets so we continue to strive for zero incidents and to set a standard for our industry. World-Class Safety Level 0.39 0.24 0.15 (0.20) 2010 2015 2020 Note: Safety data current as of 12/31/2020. LTIR per 200,000 man hours worked. World-class levels based on general industries. Sustainability is also a core value at Martin Marietta, as well a driver for continuous improvement and a key element of delivering greater long-term value to our stakeholders. This commitment is shared throughout our enterprise — from our Board of Directors to our managers to our employees — and is integral to each of our businesses and their day-to-day operations. As part of our commitment to sustainability and acting in an environmentally responsible manner, we also recognize the global threat posed by climate change and the need for a global and ambitious response. Martin Marietta has vigorous governance and oversight in place relating to climate and other environmental matters. With respect to climate concerns in particular, in 2020, we established reduction targets for the direct greenhouse gas (GHG) emissions associated with our cement and magnesia specialties businesses which, although responsible for a small portion of our revenue, generate the vast majority of our GHG emissions. We also have made new investments expanding our ability to use alternate fuels and new operational changes, such as vertical integration at our Hunter, Texas cement facility, to reduce our GHG footprint. We also have continued to enhance our disclosure related to the environmental impact of our operations. In this year’s report, we provide additional information about GHG emissions related to our operations, including reporting our Scope 2 emissions, and our efforts to implement new initiatives to achieve our commitments. Earlier in 2021, we hosted our virtual Investor Day. The program’s theme was SOAR to a Sustainable Future and focused on our disciplined execution of a proven strategy, business model, outlook and other topics that are important to our investors. SOAR, our five-year Strategic Operating Analysis and Review, is the foundation on which our business, people and communities continue to thrive. Importantly, we also reaffirmed our commitment to a world-class safety culture, operating in an environmentally responsible manner, supporting and investing in our people, and robust governance protocols with oversight by an engaged Board of Directors. 2 2020 SUSTAINABILITY REPORT","CEO Letter We are proud of the work we have done in the past year, achieving and even surpassing certain of our goals despite the challenges of the COVID-19 pandemic and resulting global economic disruptions, while continuing to build a world-class enterprise that delivers sustainable, long-term value to our stakeholders. We look forward to more conversations with you about our work to continue strengthening Martin Marietta and its impact, as well as our achievements. We are excited about our Company’s progress and, while there remains much to do, we know that our partnership with you on this journey makes us ever more able to conquer whatever challenges lie ahead and to continue making a positive impact on our communities and environment. Sincerely, C. Howard Nye Chairman, President and Chief Executive Officer Our Garner Quarry Garner, North Carolina MARTIN MARIETTA 3","Company Overview Martin Marietta provides the foundation upon which our communities improve and grow. Our products build the roads, homes, schools, ofﬁces and hospitals that anchor the communities where our employees, families, friends, neighbors, customers and vendors live. As such, we operate with a wholehearted focus on creating a better future for all of us. Our Red Oak Quarry Red Oak, Georgia 4 2020 SUSTAINABILITY REPORT","COMPANY OVERVIEW Company Highlights While there has been a recent push for companies to more thoughtfully consider the needs of both stakeholders and shareholders, this has always been at the forefront for Martin Marietta. Our 2020 results underscore our commitment to excellence in all that we do, as well as the importance of continued responsible investment in our facilities to maintain a safe and healthy workplace. Equally important is our steadfast investment of time and resources to ensure our employees, customers, vendors, communities and the environment are taken care of and protected. We believe it is both the smart and right thing to do. TOTAL REVENUES EARNINGS FROM OPERATIONS NET EARNINGS ATTRIBUTABLE TO (in millions) (in millions) MARTIN MARIETTA 2 (in millions) 8,600+ $4,730 $4,739 $1,005 $721 $612 $4,244 $885 $470 Employees $691 300+ Aggregates Quarries, Mines, Yards 2020 2019 2018 2020 2019 2018 2020 2019 2018 2 Our ability to deliver these record results while enhancing our Cement corporate governance practices, delivering world-class safety Plants performance and strengthening our sustainability reporting, has been rewarded by the public markets. The following graphs highlight Martin Marietta’s total shareholder return for the one–, three–, ﬁve–, and ten– year periods ending December 31, 2020. 120 Ready Mixed Concrete Plants Martin Marietta Common Stock Total Return (Including Dividends) 8 248.9% Asphalt Plants 117.5% 2 Magnesia 32.2% Specialties 2.6% Facilities 1 Year 3 Year 5 Year 10 year MARTIN MARIETTA 5","COMPANY OVERVIEW Corporate Governance Serves as Our Foundation Martin Marietta has a culture dedicated to ethical business • Monitors our safety performance, Ethics Office activity, behavior and responsible corporate activity. We believe and compliance with environmental laws and strong corporate governance is the foundation for regulations, as well as our public reporting and delivering on our commitments. disclosure with respect to climate change-related risks and opportunities and other environmental issues Our Board of Directors • Has the authority to investigate any matter falling within its purview As stewards of Martin Marietta, our Board plays an • Reports to the full Board essential role in determining strategic priorities and considers sustainability issues an integral part of its These examples reflect the ways in which sustainability is a business oversight. Our Corporate Governance Guidelines, priority in our risk oversight, strategic planning and available on our website, set forth a flexible framework management, as well as the ongoing dialogue with our within which the Board, assisted by its committees, directs shareholders. the affairs of Martin Marietta. The Board receives a report from each of these committees on its work relating to sustainability matters. Importantly, as discussed in the next 45% Women or minorities represent 45% section, the Board’s strategic review and risk assessments of our Board also includes management’s sustainability goals, our performance relating to sustainability and our engagement OUT 7 out of 11 new Board members since with investors with regard to sustainability matters. 7 OF 11 2016, increasing refreshment and blending new ideas with experience “These examples reflect the ways in All Board members comply with our Corporate Governance Guidelines, which sustainability is a priority in 100% including those relating to overboarding; all directors sit on fewer than three our risk oversight, strategic planning public Company boards and management, as well as the ongoing dialogue with our 91% Board members are non-management and independent shareholders.” Our Other Board Committees Our Ethics, Environment, Safety and In addition to our EESH Committee, we have established a number of Board committees with overlapping Health (EESH) Committee responsibilities for sustainability matters. We believe this approach has been effective in integrating sustainability as • Established in 1994 and meets at least twice annually, a core element of our corporate governance: increased to at least three times annually in 2021 • Comprised wholly of independent directors, whose • Our Management Development and Compensation members are diverse and have relevant expertise to Committee reviews management’s performance with provide appropriate oversight in helping us achieve regard to its sustainability goals and considers those sustainable growth and reduce our risks achievements in determining incentive pay • Reviews our Sustainability Report and our sustainability • Our Audit Committee reviews our significant performance commitments and goals, including capital environmental matters and assesses the potential risks investments and improved practices that reduce and liabilities they may pose to our business greenhouse gas (GHG) and other emissions • Our Finance Committee reviews large capital projects • Reviews the input we have had from, and our relating to sustainability and growth as well as all our engagement with, investors on sustainability matters political contributions 6 2020 SUSTAINABILITY REPORT","COMPANY OVERVIEW Our Employees Martin Marietta employees play a critical role in enforcing good governance and sustainability practices. It is their commitment to each other and to our communities that elevates our efforts and performance as a Company. Our employees understand the importance of acting with integrity in all of their interactions. We provide them with a variety of resources to guide them in daily decision-making and support them should they have questions. These resources include an engaged senior leadership team, our Code of Ethical Business Conduct, a confidential ethics hotline managed by an independent third party, and annual ethics training. Our Code of Ethical Business Conduct BOARD OF DIRECTORS As a Company dedicated to fulfilling its mission and living its values, we understand how important it is to provide resources that help guide our hardworking Martin Marietta team members in the countless decisions they make every day. Our Code of Ethical NOMINATING AND CORPORATE GOVERNANCE COMMITTEE Corporate Governance Business Conduct, which has been in place since the 1980s, is MANAGEMENT AND EMPLOYEES Guidelines regularly updated. This code provides our policies and expectations ETHICS, ENVIRONMENT, SAFETY AND HEALTH COMMITTEE Code of Ethical on a number of topics, including our commitment to good Business Conduct Conﬁdential Ethics Hotline citizenship, promoting a positive and safe work environment, Annual Ethics Training avoiding conflicts of interest and operating with integrity in all that we do. The Code of Ethical Business Conduct applies to everyone on the Martin Marietta team, including Board members, and annual ethics training is required to ensure our policies are communicated and understood. Board With Diverse Skills and Experience 91% of directors 45% of directors are women or minorities are independent 3 of our 11 63.9 average 3 directors are women director age YEARS of directors of 6.8 average 45% directors are current or former public director tenure Company CEOs YEARS MARTIN MARIETTA 7","COMPANY OVERVIEW Corporate Governance Highlights • Directors elected annually to serve one-year • Lead Independent Director terms • Independent chairs of Board Committees • Adopted proxy access • Eliminated single-trigger vesting in equity • Established robust stock ownership award agreements for grants beginning guidelines for officers and directors in 2019 • No poison pill • Implemented anti-hedging and • Eliminated excise tax gross-up, anti-pledging policy walk-right and value of perquisites in • Adopted clawback policy the severance calculation in Employment • Added seven new Board members Protection Agreements since 2016 • Proactive, year-round engagement with shareholders Our Chattanooga Quarry Chattanooga, Tennessee 8 2020 SUSTAINABILITY REPORT","COMPANY OVERVIEW Our Award-Winning Impact All awards are meaningful, but it’s particularly gratifying when we’re recognized for achievements consistent with our core values of safety, stewardship and community. Martin Marietta aggregates operations were well represented in 2020, receiving 69 awards in these areas from the National Stone, Sand \& Gravel Association (NSSGA). 2020 NSSGA Safety Excellence Awards Gold Silver Bronze Oslow Quarry (NC) Charlotte Quarry (NC) San Pedro Quarry (TX) Benson Quarry (NC) Moore Quarry (IA) 2020 NSSGA Environmental Excellence Awards Platinum Gold Silver Bronze Berkeley Quarry (SC) Berkeley Quarry (SC) Cumming Quarry (GA) 33 winners Riverbend Sand Parsons Sand and Gravel (CO) and Gravel (CO) Red Canyon Quarry (CO) Specification Agg Quarry (CO) Tyrone Quarry (GA) Woodworth Aggregate (LA) 2020 NSSGA Community Relations Awards Platinum Gold Silver Bronze Cumming Quarry (GA) Cumming Quarry (GA) Lithonia Quarry (GA) 19 winners MARTIN MARIETTA 9","COMPANY OVERVIEW Berkeley Quarry, pictured here, received the NSSGA's Platinum Award for Environmental Excellence in 2020 Annual Boulder Dash held at Cumming Quarry prior to COVID-19 Cumming Quarry sponsors Dream Kids as fundraiser for local high school seen here prior to COVID-19 In 2020, Martin Marietta’s financial performance was recognized on the Fortune 1000 listing and on Forbes’ Global 2000 World’s Largest Public Companies. Our disciplined and significant growth, plus key financial metrics, including sales, assets and market capitalization, landed us on these impressive lists. 10 2020 SUSTAINABILITY REPORT","COMPANY OVERVIEW The Pinnacle of Safety Tennessee Team Earns Top Industry Honor as One of the Safest Mines in the Country The East Division’s Chattanooga Quarry, in Chattanooga, Tennessee, was awarded the National Mining Association’s Sentinels of Safety Award. This award recognizes coal and mineral mining operations in 10 categories for recording the most hours in a calendar year without a single lost-time injury. A minimum of 4,000 hours is required for award consideration. Initiated in 1925 by then Commerce Secretary Herbert Hoover, a former mining engineer, the Sentinels of Safety Award program remains the nation’s most prestigious recognition of mine safety and has helped foster a strong safety commitment on the part of U.S. mines. Mark Brown, Chattanooga’s plant manager, has been in the mining industry since 1984 and says winning the award is the pinnacle of his career. Though thrilled to be leading a Sentinels of Safety team, he’s quick to take a back seat, preferring instead to recognize the men and women who drive the site’s success. “With a mixture of experience and enthusiasm, the team balances perfectly between tried-and-true methods and a willingness to experiment,” Brown says. As a result Chattanooga has been increasingly productive while going more than five years without a reportable incident. “The most important thing we do is communicate,” Brown says. “We have tailgate meetings in the morning and it just goes down the line. We talk before, during and after each job. If you’re in the pit, you’ll hear the radio chatter going on. It’s a little communication, but it’s important. It tells you that everyone is looking out for one another.” Mechanic Sean Barry, a safety mentor at Chattanooga, says that in addition to maintaining safety, the team’s high The East Division’s Chattanooga level of communication results in a great deal of education, Quarry, in Chattanooga, which is equally important. Tennessee, was awarded the “There are questions here every day and if I can’t handle them, we have about a half-dozen others who can,” he National Mining Association’s says. “We work through it together. It’s a round-robin approach. If you’re in mining and you think you know it all, Sentinels of Safety Award. or have seen it all, then you’re in the wrong business.” MARTIN MARIETTA 11","COMPANY OVERVIEW Thomas Shillings, a quality control technician at the site, every member of this team have accomplished is sums up the feelings of many employees with regard to the extraordinary. They’ve set an example not just for our Company’s attitude toward safety: “I’ve worked in operations in the East Division, but for operations across construction and similar fields for a long time and I’ve never the Company.” felt as safe as I do here. That radiates throughout this quarry. It’s an honor to be at a place where they really “I’ve worked in construction and care.” similar fields for a long time and Looking beyond the Chattanooga team, Brown says the I’ve never felt as safe as I do here. efforts of employees in the North Georgia District and East Division also contributed greatly to Chattanooga’s That radiates throughout this Sentinels of Safety Award. Division President Ron Kopplin quarry. It’s an honor to be at a acknowledges the work of the Chattanooga team which deserves to be singled out for its achievements. place where they really care.” “This honor places Chattanooga in an exclusive group as just a handful of Martin Marietta’s operations have earned a Sentinels of Safety Award,” he says. “What Mark and Troy Heckert, A replica of the Sentinels of Safety trophy management associate, stands at Chattanooga Quarry Chattanooga Quarry 12 2020 SUSTAINABILITY REPORT","l i y it b O ur Sustaina h Our Sustainability Approach Approac t w w d M M d S u st a in a bi i i lity i s n ’ ’ ’ t j u s t a w o r d at M a r t in M a ri i i e tta .I t ’ ’ ’ s th e em bod i m e n t of ou r M M Sustainability isn’t just a word at Martin Marietta. It’s the embodiment of our t i i c c s v v t t – d d d commitments to creating value for all of our stakeholders – including our employees, i i r r d commitments to creating value for all of our stakeholders – including our employees, i i s i i i v v s t t i i l i i l i i y customers, communities, vendors and investors. Sustainability is a core value at Martin d t t d i customers, communities, vendors and investors. Sustainability is a core value at Martin i i h r nt r d i r r r r a o eb or d q e d d r u arry i t at s t t t d n r d d d he r eve of y r r Marietta and, both in the quarry or the boardroom, stands at the heart of every Mariettaetta and, both in the quarry or ththe boardroom, stastands at the hheart of every Mar rt a e r b ot t m m oo h r r t t r n i i i a r d d i d r i i u t t r d n d c c i Company decision. As an organization reliant upon the Company decision. As an organization reliant upon the i i i r r ’ Earth’s natural resources, our sustainability approach Earth’s natural resources, our sustainability approach c c ’ i i t t l l helps us remember that our purpose is to bring value i i helps us remember that our purpose is to bring value t t l i r i l l to all Company stakeholders. Our pledge is to protect to all Company stakeholders. Our pledge is to protect d d l r n t t r l and enhance the environment while creating the and enhance the environment while creating the d r l i i t i i products that build communities. As an organization products that build communities. As an organization t t t i i built upon the strength of its employees, our approach built upon the strength of its employees, our approach y also reﬂects that we care deeply about their safety, also reﬂects that we care deeply about their safety, y f t f l l l l i c c i i i well-being, and being able to welcome and include w w well-being, and being able to welcome and include a a diverse workforce. v v diverse workforce. Our Stamper Mine Kansas City, Missouri The four pillars are integral to our day-to-day and long-term strategies and drive our ability to create value for all our stakeholders: Safe Operations Environmental Employee Well-Being Community Well-Being Stewardship Keeping safe all who come Encouraging and assisting Being a responsible into contact with our Remaining cognizant of our people in their growth neighbor and caring for business by providing the and responsive to our and development, while the communities in which environment, resources and impact on climate, air, recognizing that the we live, work and serve knowledge necessary to water, wildlife and other diversity of our employees always make the prudent natural resources is a strength that enhances decision, and fostering a our entire Company culture of responsible leadership MARTIN MARIETTA 13","OUR SUSTAINABILITY APPROACH Sustainability Highlights for 2020 Safe Environmental Operations Stewardship • Fourth consecutive year of world-class lost time • Only 15 notices of violation across more than incident rate (LTIR) performance 400 operating locations, all of which were • Continued improvement in total injury incident minor with no fines assessed rate performance, with safest year on record • Reduced coal in our cement kiln fuel mix from • 99 percent of our employees worked 70 percent to 23 percent percent of total fuel usage without a reportable safety incident • Implemented filter press systems that allow use of • MSHA citations per inspection continue to be recycled water for as much as 70 percent of well below industry average production needs • Chattanooga, Tennessee quarry received • Set carbon intensity reduction targets for 2030 prestigious Sentinels of Safety Award from the for our cement and magnesia businesses that National Mining Association we believe will continue to position us ahead of the U.S. domestic cement industry average • Very limited employee-to-employee transmission of COVID-19, despite nearly continuous • Disclosed Scope 1 CO e emissions across all 2 operations as an “essential” business business lines in the 2019 Sustainability Report issued in 2020, as well as Scope 2 CO e emissions in 2 this year’s Sustainability Report • Beneficial use of synthetic gypsum, a by-product of flue-gas desulphurization by coal-powered plants, helps divert this material from overburdened landfills 14 2020 SUSTAINABILITY REPORT","OUR SUSTAINABILITY APPROACH Employee Community Well-Being Well-Being • Implemented new benefits for our hourly • Our magnesia-based products are used to purify workforce, including an enhanced Paid Time Off drinking water, reduce sewer system pollution and policy improve electricity efficiency • Launched Inclusion and Engagement • Finalized safe harbor agreement at our Berkeley Task Force quarry for the protection of the endangered Red Cockaded Woodpecker • Implemented Career Development Framework program to provide employees and managers • Maintained our water quality efforts at our resources for development and career growth Woodworth Louisiana facility which has allowed an increase in the endangered Pearl Shell Mussel in • Named a top workplace, including the nearby Bayou Clear Denver Post’s Top Workplaces for the second consecutive year • Our teams across the country contributed to their local communities, including donating more than • Created the internal Martin Marietta HealthHub 50,000 face masks as well as making cash donations to provide employees with easy access to current and in kind service efforts to those most affected by information regarding the COVID-19 pandemic the COVID-19 pandemic and safety protocols MARTIN MARIETTA 15","OUR SUSTAINABILITY APPROACH Martin Marietta’s Investor Day Focuses on Sustainability: Soar to a Sustainable Future Martin Marietta incorporates sustainability in its long-term strategy, day-to-day operations, and assessment of how well the business is performing. We refresh our Strategic Operating Analysis and Review, or SOAR, every five years, and include performance objectives relating to our sustainable growth and performance. Execution of our SOAR objectives has led to a dynamic 10 years of growth; our most recent SOAR 2025 was presented to our Board of Directors in 2020. We have achieved this growth responsibly, and with a focus on Safety, the Environment, our Employees, our Communities, as well as Growth and Capital Allocation. Strategic Operating Analysis and Review Safe Environmental Employee Community Platform for Commercial and Capital Operations Stewardship Well-Being Well-Being Growth Operational Allocation Excellence As you will read in this report, 2020 was the safest year in our Company’s history despite 2020’s public health and “Our business is guided by its Mission, other pandemic-related challenges. Our Company-wide Vision and Values. Its foundation is to total injury incident rate, or TIIR, and lost-time incident operate Safely, Ethically, Sustainably, and rate, or LTIR, exceeded or almost reached world-class to pursue Operational Excellence. In doing levels. This means more of our colleagues go home safely this we focus on our four pillars of Safety, at the end of each shift than ever before. It’s the right Environmental Stewardship, Employee thing to do, and it’s good business. Safety sets the Well-Being and Community Well-Being. foundation for achieving our long-term objectives. Safety is part of our culture, it is part of our strategy, it is part of our And we undertake what we view as our day-to-day operations, and it is part of our performance duties, not just as a building materials objectives, as are the other pillars of our Sustainability Company, but as a world-class program. These were all a focus of our Investor Day in organization: February 2021 as a way for us to create more value for our Building a better organization stakeholders. Building a more valuable organization” – Ward Nye, Chairman and CEO 16 2020 SUSTAINABILITY REPORT","Safe Operations Safety is present in every element of Martin Marietta, from our operational excellence and proven best practices to the science- based protocols adopted to ensure the health and well-being of our employees, neighbors and communities during the COVID-19 pandemic. Safety is a shared responsibility that every member of our team takes seriously. Our Kentucky Avenue Underground Mine Indianapolis, Indiana MARTIN MARIETTA 17","SAFE OPERATIONS World-Class Safety Performance Given the nature and physical demands of our quarrying activities, operating our business safely is at the core of our long-term success and our ability to continue delivering value. We believe our employees are our most valuable asset and, in 2020, we continued our impressive safety performance. “In 2020, our lost-time incident rate was 0.15, meaning 99.8 percent of our ~8,600 employees experienced zero lost-time incidents, a world-class level for the fourth straight year.” And our 2020 performance is the best safety record in Martin Marietta’s history, despite nearly continuous operations as an “essential business” during the COVID-19 pandemic, with Company-wide lost time and total injury incidents near or exceeding world-class levels. In 2020, our lost-time incident rate was 0.15, meaning 99.8 percent of our ~8,600 employees experienced zero lost-time incidents, achieving a world-class level for the fourth straight year. We believe that we are on the right track to realizing our goal of zero incidents and our Guardian Angel safety culture is a key part of our ongoing efforts to keep our employees safe. Achieving World-Class Safety Lost-Time Incident Rate (LTIR) Total Injury Incident Rate (TIIR) 0.39 1.34 1.26 0.93 0.24 World-Class Safety Level World-Class (0.90) 0.15 Safety Level (0.20) 2010 2015 2020 2010 2015 2020 *LTIR and TIIR are per 200,000 man hours worked. World-class levels determined by external benchmarking against companies inside and outside the aggregates industry. Safety Highlights • Safest year on record, with TIIR of 0.93, slightly above the • 99.8% of employees worked with ZERO lost-time incidents in world-class rate of 0.90 2020 • East, Southwest and Magnesia Specialties Divisions exceeded • 98.9% of employees worked with ZERO incidents in 2020 world-class Total Injury Incident Rate (TIIR) with TIIRs of 0.60, • 79 business units finished 2020 with ZERO lost-time incidents 0.82 and 0.81, respectively during 500,000+ consecutive hours of work • World-class LTIR for the 4th consecutive year • Safety performance sets the foundation for long-term financial strength and successful SOAR execution 18 2020 SUSTAINABILITY REPORT","SAFE OPERATIONS MSHA Citations The United States Department of Labor’s Mine Safety and Health Administration (MSHA) inspects each surface mine at least twice a year and each underground mine at least four times a year. As shown below, citations per inspection at Martin Marietta operations are significantly lower than the aggregates, cement and lime industry average. MSHA citations per inspection 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Aggregates, Cement \& Lime Industry Martin Marietta MSHA citations per day at Martin Marietta operations are lower than industry average 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Aggregates, Cement \& Lime Industry Martin Marietta MARTIN MARIETTA 19","SAFE OPERATIONS Despite the numerous challenges, concerns and distractions associated with the pandemic, we have demonstrated dramatic safety improvements over the prior year. One of the values we embrace that has enabled this achievement is our Guardian Angel Creed. With Guardian Angel as the foundation of our safety culture, safety performance, ownership and engagement of the safety process extends beyond division lines and allows our employees to be consistently reminded that each one of us is responsible for their own and each other’s safety. In this regard, we established a Safety Task Force in 1999, comprised of employees from across the enterprise who engaged in extensive benchmarking of companies within and outside of the mining industry. From this effort, the foundational elements of Martin Marietta’s safety program were developed. Their task was to pursue safety and occupational health functional excellence. Some of the initiatives that came from continuing these efforts in 2020 were standardization of personal protection equipment so that employees could easily recognize potential hazards, an enhanced safety learning management system, task training modules and consistent safety communications. To further emphasize the importance of safety, Martin Marietta annually awards Diamond Awards, and one of its facilities receives the Diamond Elite Award. The Diamond Awards is a recognition and commitment that at Martin Marietta, we view ourselves as an industry leader, respected for the work we do to help make things possible. Whether it’s roads or bridges or buildings, our specialty is building strong foundations. The foundation of our success as a Company are the dedicated, talented teams of employees who day in and day out work hard, safely and ethically to provide our customers with quality products and materials. In many ways, we vow that our people are our most precious asset, essential to everything we accomplish. To recognize our employees’ excellent efforts, DIAMOND AWARDS are presented each year to the “best of the best” at Martin Marietta. Consisting of three tiers (Achievement, Honor and Elite), the Diamond Awards program rewards exceptional performance in all of our divisions and business segments. The criteria for each of our award levels are: 1. No reportable safety incidents during the previous calendar year; 2. No environmental notices of violation during the previous calendar year; and 3. Return on assets that exceeds the Company’s weighted average cost of capital for the previous calendar year, in addition to other financial performance. All operations that achieve this criteria receive Martin Marietta’s Diamond Achievement Award. To be considered for a Diamond Honor Award,an operation must meet the criteria for no environmental violations and the financial metric for three consecutive years. They must also show continuous safety improvement over a three-year period, with zero incidents the third year. The Diamond Elite Award winner is recognized for performance and achievements above all the rest. Our Diamond Elite Award trophy 20 2020 SUSTAINABILITY REPORT","SAFE OPERATIONS KEY DIAMOND AWARD PERFORMANCE METRICS • Lost-time incidence rate • Corporate citizenship • Total incidence rate • Innovation • Environmental stewardship • Weighted average cost of capital • Sustainability • Return on investment • Productivity • No environmental notices of violation In 2020, Lemon Springs Quarry was recognized as our Diamond Elite Award winner for a second consecutive year. This was the first team to win back-to-back Diamond Elite Awards, but its achievements were exemplary. Lemon Springs hasn’t experienced a reportable incident since 2013 or a lost-time incident since 2011. That stretch is significant enough to earn the site the North Carolina Department of Labor’s Certificate of Safety Achievement in each of the past eight years. Our Lemon Springs Quarry Sanford, North Carolina MARTIN MARIETTA 21","SAFE OPERATIONS Corporate Safety Audit Initiative Our corporate safety audit initiative has been an essential element in our safety journey. Originally implemented with a core team of seven safety professionals, the audit We Continue to Prove team was expanded in recent years to include all safety that Zero is Possible professionals and operational staff as well. The purpose of the initiative was to share best practices and to identify process and communication improvements to further the of employees Company’s safety performance to world-class levels. In 99.8% experienced ZERO lost- time incidents in 2020 doing so, the corporate safety audit teams have already conducted 55 comprehensive audits of the safety and health programs in place at Company locations, inspected nearly 3,000 pieces of mobile equipment, and conducted of employees experienced ZERO safety surveys with more than 2,500 hourly employees. 98.9% incidents in 2020 Importantly, audited sites have consistently showed business improvement in incident rates versus the prior year. COVID-19 and related travel safety concerns paused the corporate safety audit team’s activities in 2020. units have worked more However, recognizing that the audit process has become 79 than 500,000 hours with an important element of the Company’s safety program, ZERO lost-time injuries we asked local personnel to act as safety auditors to continue driving better performance. In total, these audit teams conducted 188 safety audits across the Company’s footprint in 2020. Led by hourly employees, the audits were accompanied by safety blitzes conducted by operations leadership, including our Division Presidents. This process allowed our teams to maintain a strong, boots-on-the-ground presence, which contributed to Martin Marietta’s safest year on record. In this regard, our citation per inspection (CPI) rate of 1.05 and our citation per inspection day (CPD) rate of 0.30 outperformed the 2020 aggregates/cement/lime industry averages of 2.17 and 1.08, respectively. 22 2020 SUSTAINABILITY REPORT","SAFE OPERATIONS “Essential Business” Operations During COVID-19 Pandemic The COVID-19 pandemic has had an unprecedented impact on the world, including our business and community, over the past year. As Martin Marietta’s business has to date been considered “essential” under applicable governmental orders, we have continued to meet the needs of our customers and communities, all of whom depend on us being able to continue operating, and to do so safely. Some of the responsible steps we implemented in response to the pandemic include: • Enhancing facility and equipment cleaning • Implementing personal safety protocols, social distancing and remote work (where possible), consistent with the guidelines from the Centers for Disease Control and Prevention and our industrial hygienist group medical physicians • Establishing task forces related to COVID-19 planning and communications • Cancelling all non-essential in-person meetings and business travel • Developing contingency plans with respect to facility staffing • Active monitoring of the COVID-19 pandemic and its consequences and our need to respond to its impact on our operations, business relationships and employees These measures allowed us to continue serving our customers and our communities, providing a safe workplace for our employees, and building the critical infrastructure of our states and nation. Despite our almost 9,000 employees and 400 sites, we experienced very few employee-to-employee COVID-19 transmissions. Our Drennan Yard Colorado Springs, Colorado MARTIN MARIETTA 23","SAFE OPERATIONS Biennial Mine Safety Conference Brings Together Company’s Brightest Underground Professionals Martin Marietta’s Central Division is the largest Indiana District Senior Safety operator of underground aggregate mining operations in the country with 14 underground mines Representative Dave Metcalf spread across the Midwest. As such, we maintain an (left) teaches North Indianapolis in-house team of operations and safety professionals Assistant Plant Manager Charles with particular expertise in this type of mining. This community comes together biennially for two days of Waychoff about the equipment learning, networking and sharing of best practices. used by the district’s Mine Rescue The February 2020 Underground Mine Safety Team. Conference in Collinsville, Illinois, was the largest to date. The event featured in-depth presentations and discussions led by Martin Marietta professionals on topics like underground electrical safety, communications, ventilation and mine rescue. Other presenters included an industrial hygienist, who discussed occupational health; an attorney, who spoke about Mine Safety and Health Administration (MSHA) regulations; and several vendors, who focused on such topics as fall prevention. Des Moines District Production Manager Ryan Bender helped plan the conference alongside Vice President of Safety and Health Michael Hunt, Des Moines District Vice President-General Manager Todd Clock, Director of Explosives Mike McGill and Indiana District HR and Safety Manager Jeff McIntosh. Ames Underground Mine Ames, Iowa 24 2020 SUSTAINABILITY REPORT","SAFE OPERATIONS The program’s primary goal was to continue sharing best practices in underground mining to achieve our goals of operational excellence. These included discussions relating to re-emphasis of our underground safety culture, mine rescue protocols and drills, mine engineering and development, ground control, and other relevant topics. This event speaks volumes about Martin Marietta’s values. “Putting on an event like this requires a tremendous amount of time and resources, but from our corporate executives to our division presidents and vice president-general managers, it’s supported at every level,” Bender said. “It’s the type of event that really demonstrates our Company’s commitment to advancing our safety culture.” The next Underground Mine Safety Conference is tentatively scheduled for 2022. Nearly 70 of the Company’s top underground professionals gathered for a two-day conference in February 2020 in Collinsville, Illinois. MARTIN MARIETTA 25","SAFE OPERATIONS Why I Work Safely Campaign Continues to Grow From the moment his steel-toed boots first touch down on quarry ground, Plant Manager Keith Flynn is focused. He has rock to crush, orders to process and decisions to make that will ultimately affect his well-being as well as that of his crew, their families and the Company. “We don’t just work safely because of a motto, or a sign, or a tagline. We work safely for the people involved – the family members, the friends and the other loved ones.” Not long into the morning, he’s all about business as he meets with the Porcupine Mountain Quarry team. They talk about equipment maintenance and the important projects of the day. They talk about special work taking place and make sure everyone knows about the visitors they expect onsite. It’s business talk and it’s all necessary, but when the topic of safety comes up (and it does frequently), something changes in Flynn’s tone. This change is why he shared his story for the Why I Work Safely campaign. “This is a reminder that safety is personal,” he says about a photo of his wife and three sons. The idea of highlighting personal photographs and safety testimonials at Martin Marietta isn’t a new one. Operations and offices across the Company have long utilized such photos and stories to varying degrees. Included in Flynn’s Why I Work Safely story is this family photo 26 2020 SUSTAINABILITY REPORT","SAFE OPERATIONS This past summer, Jenifer Padgett, an East Division senior safety. It keeps us engaged with our Guardian Angel safety manager, and Southwest Division Safety Manager culture.” Jeff Cross worked with the rest of the Company’s Safety Leadership Team to formalize the photo/testimonial effort. Carolina South District Area Production Manager Justin The result is the Companywide Why I Work Safely Nelson agrees and says that just taking the time to think campaign. about why he works safely forced him to realize how his attitude has changed over time. The experience, he says, “Where I come from in Ohio, we’ve done this for a long was quite valuable. time, and one of the things I noticed was that people took ownership of the safety process,” Padgett says. “They “I started my career with Martin Marietta as a college really take pride in doing things the safe way.” student who just wanted to enjoy life, but I realized quickly the role that safety plays in our business. I formed strong “We don’t just work safely because of a motto, bonds with my peers and, naturally, did what I could to or a sign, or a tagline. We work safely for the prevent them from getting hurt,” he says. “When I got a people involved – the family members, the little older and had a family of my own, I still wanted my work family to be safe, but my attitude evolved because I friends and the other loved ones.” now had to provide for my wife and kids. With my kids now getting older, my attitude continues to evolve. I When the Safety Leadership Team began calling for Why I realize more and more that safety can’t just be a focus at Work Safely submissions, they asked employees to share work, it has to be ingrained into my life so that I take it photos along with a brief description explaining their home to my family as well.” thoughts on safe work. Initially, Padgett and Cross expected enough stories to populate the Company’s digital Flynn, whose team in Nova Scotia last year celebrated signs for about a month. Currently, the campaign has 2 million hours of safe work, seconded the notion that the received so many submissions that new slides will be exercise is worthwhile. He says he’d be more than willing running through the year. to share his story again and that he hopes others feel the same way. “This has been great because we never really wanted this to be just a one-month safety topic or just part of our “Sharing my story was my way of showing that safety is of training for new employees,” Padgett says. “We want this the utmost importance,” he says. “I wanted to share it so to continue. It’s easy to say that focusing on why we work that the people here at Porcupine Mountain and others safely is part of our safety program, but really working to across the Company understand that safety is part of who keep it in focus is another way we show our dedication to we are and everything we do.” Among the first to submit a Why I Work Safely form, Padgett chose to highlight her roles as daughter, mother, sister, wife and “Gamma.” MARTIN MARIETTA 27","SAFE OPERATIONS Poteet Crew’s Milestone Just One More Stop on Safety Journey Experience and Commitment Lead Texas Team to 500,000 Injury-Free Hours While stressing the word “experienced,” Pfitzinger notes that more than half of the site’s employees have worked at the plant for more than 20 years. Perhaps none of these employees is more familiar with the grounds than Weighmaster Roy Esquivel Jr., whose father began work at Poteet long before it was owned by Martin Marietta. “My dad came here in the late 1960s to help open the place up, and they built him a house right here on the property,” Esquivel says. “I grew up just steps away from where they’d park the equipment at the end of the day.” Esquivel, who has worked at the sand plant for 20 of his The Poteet Sand Plant is located about 35 miles south of 38 years with Martin Marietta, says that while safety San Antonio in the Company’s Southwest Division. improved gradually over the years, it wasn’t until Martin Marietta’s Guardian Angel Culture really began to take Hard working. Professional. Knowledgeable. Driven. Safe. The list of adjectives Company leaders have used to hold in the early 2000s that the team was able to take leaps forward in safety. describe the Poteet Sand Plant team is expansive, but as crew members pause to celebrate their accomplishment “Once everyone bought into the culture, it made a big of reaching 500,000 hours without a reportable injury and difference,” he says. “Now, we follow the Guardian Angel continuing their journey to 1 million hours and beyond, Creed every day, and none of us are afraid to shut things their new leader has a few more adjectives he’d like to add. down if we have to. We have toolbox meetings every morning to discuss our safety concerns and perform a job safety analysis before every project we do. Safety matters “One of the first things I was told before joining this team here.” is that it’s probably one of the most experienced we have,” says Kyle Pfitzinger, Poteet’s plant manager since April Poteet Sand is: 2020. “I was told this was a solid team that is committed Employee Years of Service to safety and committed to each other. From what I’ve Rudy Cardona 27 seen, everything I’ve heard is true.” Alejandro DeLeon 41 Roy Esquivel Jr. 36 Jeffrey Felan 3 “Once everyone bought into the Esteban Guillen Ramirez 1 culture, it made a big difference,” Alfredo Lambardia Jr. 20 he says. “Now, we follow the Frank Montemayor 24 Guardian Angel Creed every day, Enrique Pequeno III 13 Toral Tinsley 8 and none of us are afraid to shut Agapito Zapata 35 things down if we have to. We Kyle Pfitzinger Plant Manager have toolbox meetings every Pfitzinger says his primary mission is to help the crew morning to discuss our safety continue its incredibly strong performance. concerns and perform a job safety “I know that I’m joining a team that has had tremendous success, and my job is to help us keep it going,” he says. analysis before every project we do. “The amount of pride they take in doing their jobs safely is Safety matters here.” huge, and they really take the Guardian Angel message to heart. I want to provide whatever assistance the team needs.” 28 2020 SUSTAINABILITY REPORT","Environmental Stewardship As stewards of our natural resources, we strive to minimize our environmental impact while providing the materials on which our communities grow. Sustainable business practices are necessary for our Company’s long-term success, but beyond that, they help ensure the preservation of our air, water and land so that each may be enjoyed for generations to come. Our Marshalltown Sand Plant Marshalltown, Iowa MARTIN MARIETTA 29","ENVIRONMENTAL STEWARDSHIP Our Approach Martin Marietta is committed to operating in an environmentally responsible and safe manner and reporting our performance with respect to key areas of focus as well as how our sustainability practices and goals are embedded in our corporate strategy. All aspects of our sustainability approach, including environmental stewardship, are an integral part of Martin Marietta’s annual planning process and day-to-day business. We strive to safely and sustainably manage our business and to pursue our economic objectives. The Role of Our Employees, Management and Board Martin Marietta has robust governance and oversight in Various aspects of our business are highly regulated, place as it relates to environmental matters, including including by governmental standards and permitting climate change-related issues. We place day-to-day requirements related to air emissions, water discharges, responsibility for compliance with our operations waste management, noise and dust control, land use and management and view it as an important part of our other environmental matters. It is our policy to continually ongoing strategy. In this regard: meet and, where possible, exceed compliance with applicable environmental laws and regulations, which in • We have a strong commitment to environmental matters the U.S. (where almost all of our operations are conducted) at each of the Board, management and operating levels. can be stricter than in Europe or other parts of the world. • We view sustainability as a part of our day-to-day and We also continually invest in new or upgraded equipment long-term strategies and as a driver of our ability to and processes to maintain compliance and to outperform create value. in building value for our shareholders. To achieve our • We strive for improvements in our environmental environmental-related goals, we employ a full-time staff of performance and view it as an area that can also create engineers and managers with significant expertise in business opportunities for us. environmental compliance and sustainability. • Our stewardship programs are guided by a combination • Most hold degrees in various engineering disciplines or of industry best practices, innovative operational environmental-related sciences, including mining and improvements and the use of clean technologies. civil engineering, geology, biology and soil science. • We include environmental matters in our management • Many are members of, or have leadership positions in, discussions, goals and compensation. industry associations and hold professional certifications that require continuing education and training. “We view sustainability as a part of • Many are former staff of regulatory agencies or of organizations that are dedicated to wildlife and our day-to-day and long-term conservation, such as The Nature Conservancy. strategies and as a driver of our • Many of our environmental professionals and operations ability to create value.” managers are outdoorspeople with a keen interest in wildlife and habitat conservation, as evidenced by their active memberships in organizations such as Ducks Unlimited, the Rocky Mountain Elk Foundation and the Wildlife Habitat Council. 30 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP Our operations are subject to periodic self-audits, as well directly from management, which in turn receives at least as regular inspections by regulatory authorities, and our quarterly updates from operating personnel directly confidential ethics hotline is available for reporting responsible for compliance in these areas. The EESH suspected environmental issues and bringing those issues Committee reports to the full Board. to the attention of management. Our internal practices and procedures often go beyond regulatory requirements. For example, our Magnesia Specialties business has ”Our EESH Committee members are maintained ISO 9001 quality management certifications for diverse and have relevant expertise both of our magnesia facilities since 1996. to provide appropriate oversight Our proactive management of environmental matters at in helping us achieve sustainable our sites and the high skill level of our employees, coupled with advice from qualified outside advisers when growth and reduce our risks.” appropriate, have allowed us to achieve an impressive compliance record. As we have responsibly grown our business, we have maintained our focus on these goals by In the sections that follow, we further detail our prioritizing environmental stewardship and compliance performance with respect to various issues that are, or may during integration. be, material to our business. This includes the issue of climate change-related risks and goals, which are At the Board of Directors level, we have an Ethics, increasingly important considerations for our business as Environment, Safety and Health (EESH) Committee, well as our shareholders. On the following pages, we comprised wholly of independent directors, which now provide important information regarding the carbon meets at least three times annually to review and discuss footprint of our overall business and important steps we our sustainability goals, including an update on capital have taken and plan to take in reducing the carbon investments and improved practices that reduce intensity of our operations. With respect to our cement greenhouse gas (GHG) and other emissions, and and magnesia specialties businesses, this includes providing performance with respect to these undertakings. Our EESH Scope 1 CO 2 e emissions intensities on a per metric tonne Committee members are diverse and have relevant of product basis. Moreover, as reported in the past and expertise to provide appropriate oversight in helping us further detailed below, we also have committed to Scope 1 achieve sustainable growth and reduce our risks. In CO 2 e emissions intensity reduction targets for those particular, our EESH Committee is tasked by the Board businesses by 2030 (as compared to a baseline year of with reviewing and monitoring our compliance with 2010). With respect to our business as a whole, in this environmental laws and regulations, our public reporting report we are for the first time reporting our Scope 2 CO e and disclosure with respect to climate change-related risks 2 emissions. and opportunities and other environmental issues, and has the authority to investigate any matter falling within its purview. The EESH Committee receives reports relating to environmental, safety, ethics and other sustainability matters, including GHG emissions, MARTIN MARIETTA 31","ENVIRONMENTAL STEWARDSHIP Greenhouse Gas Emissions Overview This year we are reporting for the first time on our Scope 2 CO e emissions for all business lines: aggregates, cement, 2 ready mixed concrete, asphalt and paving services and magnesia specialties. This is in addition to our existing e emissions across our business lines, as well as our Scope 1 CO e emissions reductions disclosures on Scope 1 CO 2 2 commitments for our cement and magnesia specialties businesses. Martin Marietta is, overwhelmingly, an aggregates-led Company (crushed stone, sand and gravel) in terms of our revenue and operational footprint. In fact, the vast majority of our facilities are associated with our aggregates business, including more than 300 quarries, mines and distribution yards. Construction aggregates businesses are not large emitters of GHGs, with the predominant source being diesel fuel used in trucks and other mobile equipment. We also have two targeted downstream businesses: ready mixed concrete and asphalt and paving services. Finally, we operate a small, but strategic, cement business and the magnesia specialties business that, collectively, account for 87 percent of our Scope 1 GHG emissions. 2020 GHG for All Business Lines We previously reported our Scope 1 emissions for all business lines in our most recent Sustainability Report. In this report, we are reporting our Scope 2 emissions for all our business lines for the first time. Scope 1 4.505 million metric tonnes CO e Scope 2 0.671 million metric tonnes CO e 2 2 Select Examples of Number of Cement Plants Worldwide 270 142 94 56 54 43 31 2 Lafarge Holcim Heidelberg China Nat Mat CEMEX CRH Votoranim Buzzi Cement Martin Marietta Sources: 2019 annual reports, sustainability reports and corporate websites Not surprisingly, our total GHG footprint in absolute terms — from our cement operations as well as all our other business lines — is a small fraction of the footprint of many domestic and international cement companies. Our 2020 Scope 1 CO e emissions were 4.505 million metric tonnes of CO e across all business lines (including stationary and mobile 2 2 sources), of which 2.6 million metric tonnes were attributable to emissions from our cement business. 32 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP This level of Scope 1 CO e emissions constitutes less than 4 percent of total GHG emissions attributed to the cement 2 industry in the United States, as reported to the USEPA in 2019. Our 2020 Scope 2 CO e emissions were 0.671 million 2 metric tonnes across all business lines. On a global basis, the emissions from our cement business constitute less than 0.2 percent of the worldwide CO e emissions from cement production and our combined Scope 1 and 2 emissions for our 2 entire business is only a fraction of those of our global competitors as shown in the chart below. 1 Select Examples of Scope 1 and 2 GHG Footprints (million metric tonnes CO e) 2 277.8 129 77.58 49.3 42.4 35.5 5.17 China Nat Mat Lafarge Holcim Heidelberg Ultratech CEMEX CRH Martin Marietta Sources: 2019 Annual Reports, Sustainability Reports, USGS, USEPA and PCA Put succinctly, we are a very small contributor to the CO e emissions attributed to the global cement sector. This is 2 consistent with the fact that our cement operations represent a small share of our overall business. In fact, those operations, together with our Magnesia Specialties business, accounted for approximately 15 percent of our consolidated revenue in 2020. This is in stark contrast to other operators in the cement sector who have a substantially greater number of cement plants, total GHG emissions, and percentage of their revenue derived from such cement operations. WA WA MT ME MT ND ME ND MN VT MN VT OR NH OR MI NH ID SD WI MI NY MA ID SD WI NY MA RI WY CT RI WY CT NJ IA NJ IA PA PA NE DE NV NE DE NV OH OH MD DC UT IL IN MD DC UT IL IN WV CA CO WV VA CA CO VA KS MO KY KS MO KY NC NC TN TN OK OK AZ AR AZ NM AR SC NM SC GA GA MS AL MS AL TX TX LA LA FL FL Martin Marietta aggregates, concrete and asphalt plants Martin Marietta cement plants The small size of our cement operations compared to our overall business — both in terms of revenue and production — is an important and significant differentiator between Martin Marietta and other companies operating in the cement industry. Our cement business: • Operates from two modernized, efficient plants, • Has a carbon intensity better than the U.S. cement both in the state of Texas, that have benefitted industry average from more than $1 billion in investments since • Represents 58 percent of our gross CO 2 e emissions, 2008 but still less than 0.2 percent of total GHG • Accounts for 9.6 percent of our consolidated emissions from the cement industry worldwide revenue in 2020 1 Total estimated GHG emissions attributed to the cement industry in 2020 worldwide were 1.5 gigatonnes or, 1,500 million metric tonnes, of CO 2 e according to R.M. Andrew of the Global Carbon Capture Project. MARTIN MARIETTA 33","ENVIRONMENTAL STEWARDSHIP Our Cement Business Cement and aggregates are critical components of building materials, such as concrete, and in the construction and maintenance of roads, buildings, bridges and other infrastructure assets that are vital to economic growth and quality of life. While it is well known that the cement sector is a significant contributor to global GHG emissions, a holistic approach that takes into account the environmental impacts of embodied carbon during the entire life cycle of cement and concrete building materials (including materials sourcing, distribution, use, productive reuse, recycling and disposal) means that cement and concrete products can play an important role in a sustainable low-carbon economy. Emerging research suggests that up to 25 percent of the CO originally emitted during cement production can be captured 2 over the lifecycle of concrete through the process of “recarbonation”. According to Cembureau, the European Cement Association, recarbonation is a slow process that occurs in concrete where lime (calcium hydroxide) in the cement reacts with carbon dioxide from the air and forms calcium carbonate. At the end of their useful life, buildings and infrastructure (reinforced concrete structures) are demolished. If the concrete is then crushed, its exposed surface area increases and this further increases the recarbonation rate. The amount of recarbonation is even greater if stockpiles of crushed concrete are left exposed to the air prior to reuse. 2 Carbon dioxide (CO ) emissions are an unavoidable component of manufacturing cement due to the nature of the raw 2 materials and chemical reactions involved. In fact, our GHG footprint is largely driven by the operation of our two cement kilns and, in particular, the calcination process that is chemically necessary to transform the raw materials used in manufacturing cement. 1 Limestone and other raw materials quarried 2 Raw materials are ground and blended 3 Raw materials are heated to 2,850° F in a kiln 4 Heat transforms the materials into pellets of “clinker” 5 Clinker is ground with gypsum 1 5 6 cement 6 Cement is stored and shipped via truck or rail 7 Primary end use consumption is concrete During the calcination process, limestone is heated in excess of 2,800 degrees Fahrenheit. This breaks down the molecular structure of the stone into clinker (mainly comprised of calcium oxide (CaO) compounds) and CO gas. While the solid 2 clinker is subsequently ground and incorporated into cement, the CO 2 is emitted from the plant. In a modern kiln, more than 50 percent of the Scope 1 GHG emissions are a result of this calcination process, with the remaining emissions coming from the combustion of fuels needed to heat the kiln and the on-site generation of electricity. 3 2 https://lowcarboneconomy.cembureau.eu/5-parallel-routes/downstream/recarbonation/ 3 Testimony for the Congress of the United States House of Representatives Select Committee on the Climate Crisis hearing on “Solving the Climate Crisis: Reducing Industrial Emissions Through U.S. Innovation”, September 26, 2019. Jeremy Gregory, PhD, MIT on behalf of the PCA. 34 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP Cement producers have limited ability to abate or reduce process emissions resulting from calcination due to the fundamental chemical composition of the limestone. While carbon capture and storage technologies may one day be sufficiently developed to offer new, practical means of addressing the CO emitted from limestone, at this time the 2 technologies are still in early stage development and testing. For the moment plants must focus on opportunities to use lower-carbon fuel sources and improving energy efficiency in the manufacturing process. Our Investments in Reducing our Carbon Intensity We have worked hard and invested heavily in our greater detail below in “Understanding Blending and the sustainability practices and improved carbon intensity Impact of Fuel Choice”. As a result of these efforts, we in our cement manufacturing operations, including have successfully reduced the carbon intensity of our employing and improving on patented production cement business to 0.75 net metric tonnes of CO e/ 2 processes, upgrading equipment, improving fuel efficiency metric tonnes of cement as of 2020 over the 2010 and increasing our use of lower-carbon alternative fuels, intensity of 0.836. This also places us well below the U.S. and reducing total air emissions. In fact, since 2008, we cement industry average intensity of 0.79 metric tonnes of have invested more than $1 billion to upgrade kilns and CO e/metric tonnes of cement in 2019 (the most recent 2 equipment at both cement plants, including replacing year for which data is available from the USEPA) and “wet process” cement production with modern makes us one of the more carbon efficient cement pre-calciner technology and installing state-of-the-art producers in the United States. 2020 saw a slight uptick in emissions control equipment at our Midlothian Cement our intensity due to EPA rules which required us to include Plant. We believe our two cement plants are now the biogenic GHG previously excluded from our among the most modern in the United States. calculations for the year. While our carbon intensity is reported in terms of CO e 2 emissions net of emissions from biogenic sources, it is “As a result of these efforts, we notable that our net and gross emissions from our operations do not materially differ. This is due to the fact have successfully reduced the that the use of alternative fuels is significantly less carbon intensity of our cement incentivized in the U.S. (where we operate) than in the European Union, including that biogenic sources are only business to 0.75 net metric tonnes partially credited in calculating emissions required to be of CO e/metric tonnes of cement 2 reported to the USEPA. In addition, we report our carbon as of 2020 over the 2010 intensity intensity in terms of metric tonnes of “cement” we produce (which is comprised of clinker and certain blend of 0.836.” materials) rather than “cementitious material” typically used by EU cement companies. Although our cement includes some blending with non-clinker materials, like Not surprisingly, in 2015, the Company’s Midlothian other U.S. operators, we are not permitted to substitute Cement Plant was recognized by the USEPA as a high clinker at the higher percentages permitted in the EU. performing, energy efficient facility following investments Therefore, we use the term “cement” to differentiate the in innovative air pollution control technologies and usage products. The above considerations are discussed in of alternative fuels. MARTIN MARIETTA 35","ENVIRONMENTAL STEWARDSHIP Understanding the Impact of Blending and Fuel Choice While we are proud of these achievements — and, in fact, as discussed below with respect to our 2030 reduction “This also places us well below the goals, we have committed to further reduce the carbon U.S. cement industry average intensity of our cement and magnesia businesses — we also believe it is important to recognize critical regulatory intensity of 0.79 metric tonnes of differences between the U.S. and the EU (and other CO e/metric tonnes of domestic 2 international jurisdictions) that result in meaningful cement in 2019 (the most recent differences in the makeup of corresponding end-products and reported emissions metrics. Those differences, in turn, year for which data is available make like-for-like comparisons of the emissions from the USEPA) and makes us one performance of such companies challenging. of the more carbon efficient For example, outside of the U.S., the allowable rate of cement producers in the United “clinker substitution” — the replacement of ground clinker in cement with alternate materials such as pozzolan, slag States.” and fly ash — is much higher than it is in the U.S. because of the limitations imposed by the American Society for Testing and Materials, Inc. (ASTM) and Department of In addition, in the U.S., alternative fuel use by the Transportation (DOT) standards for cement. While our cement industry averages only 15 percent of the fuel mix, clinker substitution rate (like other U.S. producers) compared to 36 percent of the fuel mix used in the European generally does not exceed 10 percent, the average clinker Union and as high as 60 percent in Germany. 5 substitution rate for international cement companies is in In large part, this is because combustion of secondary the range of 28 percent to 50 percent, depending on the alternate fuels is incentivized in the European Union, whereas type of cement. Accordingly, even where their clinker in the U.S. environmental laws and USEPA regulations create 4 intensity (the amount of CO generated in producing a hurdles to using these materials as fuel sources. Moreover, 2 tonne of clinker) is comparable to our 2020 rate of 0.836 the calculation of reportable CO emissions under 2 net metric tonnes of CO /metric tonnes of clinker (and in international regulations differs materially from the 2 many cases is actually higher), international cement calculation allowed under USEPA regulation. The European companies can reduce the carbon intensity they publicly Union Gross CO 2 Emission rates exclude CO 2 emissions from report by simply substituting higher percentages of non- alternative fuels while the widely reported Net CO 2 emission clinker products for clinker in their end product, rather rates do not include the biogenic or alternative fuel CO 2 than actually reducing total emissions or improving contributions. Again, if we used a hypothetical 75% efficiencies in the manufacturing process. In fact, if we clinker factor and calculated our emissions using the were to use a hypothetical 75% clinker factor for our Global Cement and Concrete Association (GCCA)/ cements, we estimate our intensity would be reduced European calculation method and our current fuel mix, from 0.75 to approximately 0.62 net metric tonnes of we estimate that our intensity would see a further Absolute Gross CO /metric tonnes of cement reduction to approximately 0.53 Net metric tonnes of 2 equivalent. CO /metric tonnes of cement equivalent basis. 2 4 European cement standard EN 197-1 “Cement – Part 1: composition, specifications and conformity criteria for common cements”, as reported by CEMBUREAU. 5 PCA Response to House Select Committee on Climate Crisis dated 11/22/2019, pg. 5. 36 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP Our Midlothian Cement facility Midlothian, Texas We believe that our track record of achieving comparably Despite these regulatory constraints, Martin Marietta views favorable clinker intensities to European producers, despite the use of alternate fuels and improving fuel efficiency as key regulatory differences affecting how emissions important components of our overall commitment to intensity is calculated in the U.S., highlights our record of sustainability, including climate change-related issues and investing in our plants and continually improving our concerns. In this regard, in addition to significant plant processes. It further underscores our continued dedication upgrades and other modernization in which we have to sustainable practices in our operations. invested, our accomplishments include the following: Accordingly, although our actual carbon emissions from • As noted later in this Sustainability Report, we have clinker production may be comparable to or better than made a significant investment in tire processing systems European producers, their ability to calculate reportable at our Midlothian Cement Plant and are actively CO emissions differently leads, in part, to a seemingly exploring adding additional equipment to our Hunter 2 lower carbon intensity calculation. Cement Plant in the next several years. Our permit for our Hunter plant, however, caps our use of tires as Simply put, because U.S. producers are more heavily alternate fuels to 25 percent of the fuel mix. regulated in using alternative fuels in production and must both report a greater amount of the related CO emissions • In the last six years, we have dramatically reduced the 2 than their European competitors and use more higher- use of coal in our kiln fuel mixes at both cement plants CO clinker in cement, carbon intensities are effectively from approximately 70 percent to 12.9 percent of our 2 calculated differently for U.S. and European producers. total fuel usage. In particular, at Midlothian, coal makes up less than 7.3 percent of the kiln’s fuel, as compared to 59 percent in the past. At Hunter, the percentage of “Despite these regulatory coal in the fuel mix is 17.5 percent, down from 77 constraints, Martin Marietta views percent in 2014, and we are actively engaged in a pipeline project to obtain additional supplies of natural the use of alternate fuels and gas at Hunter as an alternative to coal use. improving fuel efficiency as important components of our overall commitment to sustainability, including climate change-related issues and concerns.” MARTIN MARIETTA 37","ENVIRONMENTAL STEWARDSHIP Our Magnesia Specialties Business After our cement business, our magnesia specialties We also manufacture magnesia-based products at our business, which has two plants — one in Ohio and one Manistee, Michigan, facility, which are a relatively in Michigan — is the second largest contributor to our insignificant source of direct GHG emissions. Notably, our Scope 1 GHG footprint. This is due almost entirely to products manufactured at this plant help control emissions the operation of our Woodville, Ohio, plant where we and result in other environmental benefits. operate six lime kilns of varying ages. The calcination process at Woodville is very similar to our cement Some of those applications for our products include: business, except that Woodville processes dolomitic limestone, which contains a higher CO component than 2 the high calcium limestone used in our cement plants. Purification of drinking water as well as In contrast to cement, our Magnesia Specialties business industrial and municipal wastewater cannot achieve GHG reductions through substitution for our calcined lime product since both internal and external customers require that we maintain extremely high purity Optimization of transformer electricity to allow further processing. transmission Nevertheless, we have seen a considerable reduction in GHG emissions intensity in our Magnesia Specialties business in recent years. This is primarily driven through Replacement of hazardous chemicals with our investments in modernizing the Woodville plant, our non-hazardous magnesium oxide and most notably construction of a new, more efficient kiln hydroxide products that was completed in 2012. In 2018, under a consent decree negotiated with USEPA, the Company committed to spend an additional +/- $30 million at this site to add Sulfur oxide pollution reduction preheaters and other state-of-the-art control technology to two other large kilns. While primarily designed to control NOx and SO emissions, we believe this project 2 may also result in GHG emission reductions. This project is well under way. Nuclear waste neutralization We are currently evaluating systems to achieve additional reductions through implementation of heat recovery Improvements in gas turbine electric systems, improvements in combustion efficiency through generation efficiency new product mixes, process changes and upgraded equipment, and minimizing the generation of fines and other byproducts. Reduction of chemical usage in pulp bleaching and improvements in paper “Notably, our products grade pulp yield, reducing wood demand, and fertilizers to maximize crop yield and manufactured at this plant help to replenish soil nutrients control emissions and result in other environmental benefits.” Reduction of sewer system pollution, such as hydrogen sulfide gas 38 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","ENVIRONMENTAL STEWARDSHIP Climate Change Lobbying Given our businesses’ relatively low GHG emissions profile, Martin Marietta does not conduct, at the federal or state level, any direct lobbying on climate change. We are a member of only three national trade associations (two of which represent the aggregates and ready mix industries) in addition to the U.S. Chamber of Commerce. We periodically review lobbying registrations submitted by these associations, and do not believe that any have taken any position as part of its lobbying efforts that is inconsistent with the Paris Agreement. • The Portland Cement Association (PCA), a major industry • The U.S. Chamber of Commerce, which represents U.S. group for U.S. cement manufacturers (and the only businesses across all sectors, has stated since 2019 its cement industry association in which we are a member), support for U.S. participation in the Paris Agreement as recently announced its commitment to helping its well as its position that our climate is changing, that member companies achieve carbon neutrality across the humans are contributing to these changes and that value chain by 2050. To this end, the PCA expects to mitigating GHG emissions, increasing fuel efficiency and adopt and publish its own roadmap to carbon neutrality use of renewable fuels and investing in commercially- later this year. viable technological solutions for lower-carbon infrastructure and carbon capture or storage, are essential for managing climate risks. As recognized by a number of international organizations (including the International Energy Agency) as well as various industry associations, the cement sector’s ability to contribute to limiting GHG levels in a manner consistent with the goals of the Paris Agreement depends on successful future development and implementation of carbon capture and sequestration (CCS) technologies on a commercial scale. Similarly, acceptance of lower clinker content cements by Departments of Transportation and ASTM in the United States will also be critical in allowing the cement sector to achieve carbon neutrality across the value chain by 2050. We are monitoring these developments closely. Our Hunter Cement Plant New Braunfels, Texas 40 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP Roadmap to Achieve 2030 GHG Reduction Goals Martin Marietta continues to issue enhanced climate- Our Goals related disclosures, including information about the physical and transition risks and opportunities relating to Notwithstanding our operational focus on aggregates, we climate change, in our annual reports to the SEC. We have made considerable strides in reducing the intensity of believe this enhanced disclosure: our GHG emissions from our cement and magnesia specialties plants, as described previously. • Helps to facilitate more informed business and investment decision-making, including by comparison In connection with our continuing commitment to with our peers in our industry sustainability, including concerns relating to climate change, we commit to a total of: • Is consistent with the objectives of the Task Force on Climate-related Financial Disclosures (TCFD) 15% Reduction in the intensity recommendations and Sustainability Accounting of our Scope 1 CO e Standards Board (SASB) guidelines for the construction 2 process emissions from our cement operations materials sector as compared to 2010 levels by 2030 1 All of our public reports are available on Martin Marietta’s website. Our long-term reduction targets were selected based on 10% Reduction in the intensity a number of factors, including the significant investment of our Scope 1 CO e 2 process emissions from our magnesia specialties we have made in our plants in the past two decades; the use of improved technologies in our plant processes that business as compared to 2010 levels by 2030 1 has resulted in a reduction in GHG emissions; the current limited ability in the United States to use alternative fuels to operate our plants, both from a regulatory and a customer perspective; the stringent requirements included These two businesses (four plants) are responsible in all of our air permits for our cement and magnesia for approximately: specialties plants; and the absence of high-emissions 87% of Martin Marietta’s sources, such as wet or older cement plants, that could be overall Scope 1 CO e shut down or removed. We chose 2010 as our base year 2 emissions because that was the first year that most sources were required to, and started reporting, emissions to the USEPA resulting in reliable and comparable data. 1 Facilities in most source categories subject to the USEPA’s Greenhouse Gas Reporting Program (codified at 40 CFR Part 98), including cement production, began reporting emissions in 2010. Thus, we believe 2010 is a year with reliable and comparable data across a wide range of facilities in the U.S. Our Scope 1 CO 2 e emissions intensity associated with our cement operations in 2010 was 0.836. Notably, when we announced our 2030 emissions reduction targets in 2019,as described above, we took into account that we have been investing heavily over the past decade to reduce our cement and magnesia emissions, which is reflected in our favorable CO 2 e intensity performance relative to the U.S. cement industry average. We also believe this has allowed us to achieve significant environmental benefits from reduced emissions well ahead of many other operators in the industry and will position us not only to achieve our targets but to be in a good position to evaluate additional actions in the future. Midlothian Cement Tire Processing MARTIN MARIETTA 41","ENVIRONMENTAL STEWARDSHIP Our Roadmap Our roadmap to achieving these reduction targets includes numerous actions we have committed to, through current or recent investments and operational improvements, as well as future steps we are evaluating, including: Coal replacement and tire derived fuel (TDF) investments Operational improvements • In 2019, we invested in an improved handling system at • Adding slag to our process, using our CemStar patented the Hunter Cement plant allowing the plant to utilize a technology. In 2020, the slag addition represented substantial amount of tire-derived fuel. We are currently almost 4 percent of our clinker production. considering additional upgrades at this facility. • We are conducting pilot studies of the CarbonCure • We are in the process of permitting and installing a system in our ready mix business. This system injects larger natural gas line to the Hunter Cement Plant which into the concrete mix to reduce its carbon recycled CO 2 is expected to be completed in 2021 and will further footprint without impacting its performance. reduce our coal usage. • We have reduced coal in the fuel mix at our cement Investments in our business to develop and market plants by an additional 10% in 2020 from 2019. products that deliver meaningful environmental benefits, including reducing emissions and chemical use Use of additional alternative fuels, including the purchase of wind energy and other renewables • Scrubber stone produced by our limestone operations • In 2020 we used 806,254 gallons of B99 Biodiesel, is used by power producers in controlling sulfur than ordinary diesel. dioxide emissions. which emits 21% less C0 2 • We are currently evaluating both wind and solar power • Products manufactured by our magnesia specialties projects in both our cement and magnesia businesses. business assist in purifying industrial and municipal wastewater, neutralizing nuclear waste and reducing Continued use of synthetic gypsum as a substitute chemical usage and wood demand in paper production. for natural gypsum • Synthetic gypsum is a byproduct of flue gas Leadership positions in industry and advocacy desulfurization (FGD) — a scrubbing technology utilized associations that support actions to control by many coal-fired power plants to reduce SO . climate change 2 • In 2020 we reduced our need for mined gypsum by 46% • Participating in working groups at both the PCA and over 2017. NRMCA to evaluate the feasibility and/or opportunity • Using recaptured gypsum helps to divert 51,000 tons associated with PCA’s 2050 working “roadmap”, along from overburdened landfills. with other developments relevant to commercial-scale Capital investments in more efficient, lower CCS technologies that we anticipate being considered by emission transportation systems and emissions the industry in the coming years. reduction equipment • Support for the MIT Sustainability Hub, which conducts • Reduced fuel use in our aggregates business by converting research supporting the beneficial use of low-carbon from quarry trucks to conveyor belt systems, right-sizing footprint concrete and brings together leaders from trucks and installing fleet management software. academia, industry and government to develop a holistic • Replacing older rail cars with more efficient, high- approach that will achieve durable and sustainable capacity models homes, buildings and infrastructure in ever more demanding environments. • Continued upgrading our mobile equipment fleets to newer, cleaner burning equipment We also recognize the importance of continuing to set goals for sustainability and to increase transparency around GHG emissions reporting, and thus, we expect to make additional reports and commitments for our businesses in the years to come. For example, we anticipate the next iteration of our Sustainability Report will include, for the first time, Scope 2 emissions reductions targets. 42 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP Engineering, Vertical Integration and a Sustainable Business Model Drive Success at Hunter Facility Our Hunter facility operates across all our business lines -- aggregates, cement and ready mix plants. The aggregates facility, completed just five years ago, operates with some of the newest and most efficient equipment on the market. And, while vertical integration is a financial benefit for the Company, it’s also an environmentally friendly business model. Our Hunter Cement The site uses a filter press system that allows Hunter Plant New Braunfels, Stone to use recycled water for as much as 70 percent Texas of its production needs, greatly reducing the need for underground water in a water-challenged area. “Our filter press system allows us to truly minimize the amount of water we need to pump from underground sources,” Aggregate Plant Manager Pat Kinser said. “That has greatly reduced our environmental impact and has helped preserve the Trinity Aquifer.” Additionally, the filter press system allows Hunter Stone to operate without an inground settling pond, a fact that Kinser said is greatly appreciated. “While necessary at most operations, settling ponds take up real estate, mean more work hours and more hours on the equipment for building the ponds and maintaining the accompanying berms and dams,” he said. “The filter press system allows us to operate without those concerns. It replenishes itself daily and makes us incredibly efficient.” In 2019, Hunter Cement installed an alternative fuel handling system that allows the site to utilize a substantial amount of tire-derived fuel to make its product. The method allows Hunter to better regulate the temperature in its kiln, making for a more stable production environment. Additionally, the system helps Hunter minimize the amount of fossil fuels it consumes and pulls discarded tires out of communities across Texas, helping the state rid itself of an unwanted environmental hazard. Filter press equipment at our Hunter aggregate plant MARTIN MARIETTA 43","ENVIRONMENTAL STEWARDSHIP The Hunter plant has also transitioned to synthetic The Hunter ready mix site was constructed in such a way gypsum, a vital material in cement production, which that it recycles all rainwater and runoff from truck reduces the amount of natural rock gypsum that must washing. “All wastewater stays on site and goes right back be mined. In addition, because synthetic gypsum is a into the cement plant,” Folhadella said. “Conserving water byproduct of other industrial operations such as power resources is generally a good thing, but here in Texas, plants, we are able to find ways to beneficially reuse their where we don’t always get much rain, it’s essential. We waste. “Power plants can’t use the synthetic gypsum they have to do everything we can to recycle.” create, but we certainly can,” Cement Plant Manager Julio Folhadella said. “Moving to synthetic gypsum, has helped Finally, since raw materials needed by each of the three us reduce our environmental impact. We’re still able to use production facilities are already on site, the need to import high-quality materials in our cement, but we don’t have to products from distances outside of Hunter is dramatically mine for it, which opens up land for other uses and reduced. The combined result means lower emissions from eliminates the emissions created by a mining operation.” equipment like haul trucks and railcars. Our Hunter Stone’s filter press system eliminates the need for an inground settling pond, which makes the operation more efficient 44 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP Water Management We use water for production, maintenance activities, permits under the National Pollutant Discharge Elimination environmental controls and reclamation. We recognize that System (NPDES) that contain site-specific limits designed to water availability is critical to the future of our maintain the health of the receiving water body and the communities and our operations. We also recognize that aquatic species that call it home. We use treatment our diversion and discharge of water into the environment systems designed to ensure that permit compliance is impacts our communities and the ecosystem. We are maintained and conduct regular monitoring and reporting committed to responsible and efficient water management to ensure compliance. and continuously seek opportunities to use renewable and recycled sources. As with our GHG emissions strategy, we In addition, stormwater discharges associated with invest in new processes and technologies following industrial activity are regulated pursuant to the CWA. appropriate testing. These regulations require that the site operate under either a general permit applicable to all similar facilities or a site- In 1972, the U.S. Congress enacted the Federal Water specific permit depending upon many factors. Pollution Control Act, now known as the Clean Water Act (CWA). This law, as amended, established the basic The storm water permitting system is designed to minimize framework for regulating water pollution in the United and reduce pollution in the runoff from industrial facilities. States. Compliance with water quality requirements under Sites must maintain a Storm Water Pollution Prevention the CWA is a critical aspect of Martin Marietta’s Plan, implement Best Management Practices, and environmental stewardship. undertake certain sampling and reporting. While we make significant efforts to reuse and recycle In 2020, we operated more than 400 facilities across the water in our processes, we do have discharges at or from a United States and recorded a total of only ten CWA-related number of our locations. In those cases, we have obtained violations, all of which were minor, with no penalties assessed. An expansive lake created at a reclaimed site in Georgetown, South Carolina MARTIN MARIETTA 45","ENVIRONMENTAL STEWARDSHIP Water and the Needs of Our Communities Not only do we focus on ensuring that our discharges Institute’s Water Risk Atlas tool, known as Aqueduct. A do not diminish the quality of local water resources, we profile of our building materials operations (which includes all also are committed to being responsible users of the businesses other than Magnesia Specialties) is shown below: available water in the communities in which we operate. Martin Marietta’s production processes rely on water. Importantly, we implement water management practices “Importantly, we implement recognizing that clean and reliable water is also critical to water management practices our local communities. recognizing that clean and reliable To this end, in 2020 we undertook to re-examine the water stress levels of these communities, measured as a water is also critical to our local ratio of annual water withdrawals to total available annual communities.” renewable supply. A higher percentage indicates that there are more water users competing for the water resource. Areas with high water stress are those with a range of 40 percent to 80 percent and areas with extremely high water stress are those greater than 80 percent. We analyzed our operating locations by zip code, using the World Resources 42 aggregates locations in areas 18 ready mixed concrete 1 cement plant located in as high water stress an area 28 aggregates locations in areas 32 ready mixed concrete high water stress as extremely high water stress water stress Geographically, the majority of our locations classified as improvements, including an on-site water recycling pond high water stress are located in Texas; those classified as as well as paving 4 miles of roadway. While the plant’s extremely high water stress areas are primarily in Texas and production of washed products has increased dramatically Colorado. In those areas, responsible water use and over time, these improvements still led to an estimated 20 recycling are critical, and we have made significant efforts to percent drop in water usage per ton of stone produced or reduce water waste, as described in the following examples. an annual savings of approximately 390 acre feet of water. Texas The water recovery system at Beckmann Quarry, installed in 2010, continues to provide significant benefits and Over the past several years, Martin Marietta has invested in reduced the facility’s water withdrawal by an average of water recovery equipment at Medina Rock \& Rail Quarry, 50 percent compared to 2009. This equates to a pumping Beckmann Quarry, Chico Quarry, Black Spur’s Bird Hill reduction of more than 20,000 acre-feet, resulting in Plant and Hunter Stone Quarry, each located in Texas. For billions of gallons of additional Edwards Aquifer water that example, at our Medina Rock \& Rail plant between 2018 is available to South Central Texas communities for other and 2020 we completed a number of operational beneficial uses. 46 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP In 2020, our Texas ready mix operations undertook with the opportunity to repurpose more pits in the future. additional initiatives designed to reduce water waste. Three The West Division is also working to develop storage additional Shumaker Industries “Load and Go Ready Mix facilities in other locations within its footprint. ® Truck Wash” systems were installed in our Dallas-Fort- Our Colorado Front Range operations are situated adjacent Worth- area ready mix plants, and twelve more are to rivers, streams and ditches that provide vital water for planned for 2021. These systems dramatically reduce the agricultural, residential and commercial purposes. This amount of water used to clean ready mix trucks after system of water distribution through streams and ditches loading, reducing both water use and runoff. was established in the 1880’s supplying water from the Mountains to the Front Range below. Through our Colorado numerous water rights, 3 state approved reservoirs and 4 leases, Martin Marietta operates to ensure there is no net The West Division continues to work in cooperation with water loss to the stream system. This means that our total the City of Denver, the City of Aurora and the State of water usage is returned back monthly to the stream system Colorado to create a much-needed new fresh water and the surrounding aquifers. In 2020, Martin Marietta reservoirs at our facilities.These water projects include on- returned over 130 million gallons of water back to the going projects at our Riverbend Sand \& Gravel, 35th environment through this process. Avenue, Ditullio, Duckworth, and Heaton facilities Our Medina Rock \& Rail water recovery pond Hondo, Texas While water conservation and protection is key in our Similarly, our Tyrone Georgia operation also invested $1.1 western operations, it is not neglected elsewhere. For million in its own clarifier system in 2020. This system example, in 2020 our Northeast Quarry in Maryland consists of a 40 foot clarifier, a clarifier underflow pump, invested $3.9 million in a new fines recovery plant which and three prefabricated containers plumbed to a series of included a 40 foot clarifier, two belt filter presses, four settling ponds to collect the concentrated mud from the slurry pumps, two clean water pumps, a polymer system, clarifier. It also includes a fully automated polymer mix, advanced piping and electrical systems and process flocculant and feed system. This system is designed to controls. By recovering 90-95 percent of the water used eliminate fine material from entering the stream running during production and reducing the sediment load of the through the property, preserving its surface water quality. remaining discharge, this system benefits both surface and groundwater resources in the area. MARTIN MARIETTA 47","ENVIRONMENTAL STEWARDSHIP Waste Management We are committed to improving resource efficiency Notwithstanding these important differences, we attempt through reuse, recovery and/or recycling of waste materials to minimize the need to store and/or dispose of aggregates in our businesses. We also dispose of waste using safe and waste products at our facilities by selling the fine material responsible methods. from our processes for reuse in other commercial activities. We often sell fine material as a replacement for natural In recent years, following the failure of the Brumadinho sand where customer specifications allow. To the extent Dam at a Vale iron mine in Brazil, there has been increased that we maintain settling basins for fine material on our attention by regulators and the public to the environmental mine sites, these are generally constructed below grade in and safety risks associated with the storage and disposal of mined out areas of our pits or in specially engineered mine tailings. Although our aggregates operations result in settling basins. certain waste products, ours are meaningfully different than tailings produced through metals mining. Whereas, in These pits and basins are regulated by MSHA, as well as a metals mine, a very high percentage of the mined various state laws, and are subject to multiple inspections material becomes waste or tailings (e.g., some copper each year. Further, to the extent water is discharged from mines waste in excess of 80 percent of their raw material), 7 a pit or basin, it is regulated by the CWA and various state the waste fraction in our quarries and mines is generally laws and subject to periodic monitoring. less than 20 percent of the mined stone. These pits and basins often serve as more than simply a Further, tailings in metals mines can release toxic metals, place to collect the fine rock fraction. As an adequate such as arsenic and mercury, and may lead to acid mine supply of water is essential at any aggregate mining drainage (caused by microbial action on sulfide ores) which operation for processing and dust control, water from our can result in significant environmental impacts, particularly settling basins is reintroduced to our process. This reduces in the case of a sudden release. Our operations, on the our reliance on other water sources and lessens stress on other hand, involve mining limestone and granite; the local aquifers and surface water bodies. resulting fines are non-hazardous. The 282-foot-high Brumadinho Dam in Brazil was built using the “upstream” method in which terraced embankments are constructed successively higher on the upstream side of the dam as the impoundment fills with tailings. Thus, it was not a single engineered structure. Brazil has now banned new upstream tailings dams and ordered the removal of existing ones. None of Martin Marietta’s 34 dams, all of which are located in the United States, were constructed using the upstream method. The vast majority of our dams are under 30 feet, and none exceeds 70 feet in height. All of our dams are designed and operated in compliance with stringent U.S. regulations, including those of MSHA, various states and the Army Corps of Engineers. Additionally, these structures are regularly inspected by our A below ground level settling pond qualified personnel. The majority of our dams are maintained in connection with fresh water ponds. 7 D. R. Nagaraj “Minerals Recovery and Processing” in Kirk-Othmer Encyclopedia of Chemical Technology, Wiley-VCH doi:10.1002/0471238961.1309140514010701. a01.pub2 48 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP Biodiversity and Land Use We own or lease significant land holdings on which we operate our businesses. We are committed to minimizing operational impacts on local ecosystems’ biodiversity. In addition to complying with applicable laws and regulations, we integrate various protection measures into the way we operate, as described below. Further, our environmental management practices consider Prebble Jumping Mouse the relevant ecosystem throughout the lifecycle of an operation, including reclamation. Woodworth facility a number of steps to prevent such impacts were taken including the use of substantial buffers Habitat and Species Protection between operations and stream banks; levees constructed Throughout the duration of our operations at a particular on a 3-1 slope; and the use of matting, silt fencing, and location, we take a variety of steps to mitigate impacts seeding to prevent sedimentation from erosion. The facility on habitats and species and to restore disturbed also installed a closed loop water recycling system to ecosystems. Our environmental staff works in concert prevent any discharges of process water. In part due to with our mine planners and operations teams to ensure these efforts, during the last mussel survey conducted in sensitive areas and species are not impacted. We late 2019 by the Louisiana Department of Fish and Wildlife, follow the U.S. Fish and Wildlife Service guidelines and it was found the numbers of mussels has increased. regulations for operations near endangered or threatened Additionally, many of our quarries benefit biodiversity by species, and we obtain required permits and conduct creating and maintaining valuable habitats for many necessary mitigation in connection with our activities in species of wildlife, including threatened or endangered or near waters of the United States. species. This occurs both in the ordinary course of An excellent example of this practice can be found at our maintaining large rural sites and through set-asides and Woodworth facility in Louisiana which borders Bayou Clear, conservation easements we have granted. For example, in home to the endangered Louisiana Pearl Shell Mussel. This our Central Division, we have set aside portions of our mussel is restricted to only two river drainages in central Racoon River property as habitat for the endangered Louisiana, and as a result had declined by over 80% during Indiana Bat. In our West Division, a portion of our Lyons the last few decades. facility has been set aside to protect the Prebble Jumping Mouse. And in our East Division, a portion of the Appling As both sedimentation and water diversion could impact property was set aside to provide a habitat for the Snorkel the Pearl Shell Mussel, during construction of the Wort Plant. In addition, in many of our sand and gravel operations, we create wetland features that improve water quality long term and water-storage basins that help to supply local water needs. Because we own and lease many thousands of acres of land, we are also active managers of significant forest resources. Management and replenishment of this resource is top of mind for our operations. For instance, beginning in 2015, our East Division implemented a timber management program. To date, Pearl Shell Mussels MARTIN MARIETTA 49","ENVIRONMENTAL STEWARDSHIP the division has planted more than 250,000 trees reclaiming many acres of forest. Our sites also actively partner with local agencies, as well as organizations like the Wildlife Habitat Council of which we are a member. For example, our Berkeley Quarry has undertaken significant steps to encourage the protection and enhancement of wildlife. In 2020 the Company entered into a Safe Harbor Agreement with the South Carolina Department of Natural Resources covering 2,050 acres at its Berkeley property for the protection of the endangered Red Cockaded Woodpecker. This 99 year agreement includes habitat buffers to protect the existing nesting tree, along with annual habitat enhancement activities including thinning, controlled burns and construction of artificial nesting boxes to encourage additional birds into the habitat. This site also participates in the South Carolina Wildlife Federation’s W.A.I.T. Endangered Red (Wildlife and Industry Together) program. This program Cockaded Woodpecker encourages the protection and enhancement of wildlife on industry lands. Similarly, our Milford, Utah, quarry continues to provide assistance to a consortium of groups, including the Wild Sheep Foundation, Rocky Mountain Elk Foundation, the Utah Stockman’s Association, the Federal Bureau of Land Management and the Utah Division of Wildlife Resources, for the maintenance of facilities in an area devastated by a wildfire 10 miles from the quarry. This includes guzzlers that provide a sustainable source of water for livestock and the native elk, deer and other wildlife in the area, including as a water source that will help with the reintroduction of desert bighorn sheep into the area. A reclaimed quarry in Rocky Point, North Carolina 50 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP Land Reclamation Activities Our approach to reclamation includes the protection of the The result is a landscape that blends in with the environment while we are quarrying as well as its surrounding undeveloped land, enhances wildlife habitat restoration after mining, both of which we typically plan and habitat diversity, and provides winter forage for elk before we open a new site. In so doing, we commit to and mule deer. Once mining is completed on the site, a activities that include minimizing impacts to neighboring large reservoir will remain, which will serve as a source of properties, wildlife and fauna, adjacent streams and water municipal water for the region and may also serve as a quality. We are generally required by state or local laws, or recreational feature. pursuant to the terms of an applicable lease, to reclaim quarry sites after use, which usually includes a requirement Although concurrent reclamation is our usual practice, to post a reclamation bond to guarantee performance of there are times when reclamation must be brought that work. During the process of applying for permits, we current after a period of mining has occurred. At our include extensive information regarding our reclamation Garwood, Texas sand mine, in 2020 the team completed activities, and consider any concerns expressed by local three phases of reclamation on almost 1500 acres that had communities and other stakeholders. previously been mined over the past 30 years. This project involved the movement of more than 5 million cubic yards We own or lease more than 250,000 acres of land and of material at a cost of approximately $3 million. The have developed reclamation or restoration management landowner is exploring post-mine land uses including plans for approximately 90 percent of our operating recreation and water storage at the site west of Houston. quarry sites. Generally, we perform reclamation activities on an ongoing basis as an integral part of the normal quarrying process. An important aspect of reclamation is returning the land to beneficial use. Lands that are reclaimed are often improved by a more diverse plant community and weed control. As such, reclaimed lands often provide valuable wildlife habitat. Other common land uses for our reclaimed quarries post-mining include water storage and reservoirs, parks and other recreational uses and sometimes commercial development. A prime example of this approach is found in the reclamation activities at our Specification Aggregates Quarry in Golden, Colorado, which have been featured on ReclamationColorado.com. The quarry is situated on the eastern edge of the foothills with much of the quarry area visible from many parts of the Denver metropolitan area. A primary goal for reclamation of the mining area is to minimize visual impacts by creating a topographic and ecological setting that is similar to that of the hillside areas surrounding the quarry. The landscape of the surrounding Concurrent reclamation area is dominated by grassland communities interspersed at our Specification Aggregate Quarry with patches of scrub oak and scattered evergreen trees. MARTIN MARIETTA 51","ENVIRONMENTAL STEWARDSHIP Our Specification Aggregates Quarry Golden, Colorado These are just a few examples of our efforts to keep sustainability a priority in our operations and strategy. Rooted in our core values and commitment to being responsible stewards of the Earth’s resources, our sustainability approach allows us to create lasting results that benefit our employees, customers, communities and society as a whole. Largely because of our efforts to maintain habitat diversity, we easily coexist with wildlife at our Specification Aggregates Quarry 52 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP For Colorado Quarry, Reclamation is About More Than Aesthetics Team’s Efforts Also Benefit Local Wildlife Parkdale Quarry, located outside of Canon City, Colorado, Utilizing a top-down mine plan, Parkdale reclaims portions provides railroad ballast and construction materials for of its quarry soon after being mined and concurrent with asphalt and concrete plants in southern Colorado and overall mining operations on the site. While mining southwestern Kansas. As the only rail-served quarry in the continues down the slope, mined-out areas are backfilled, state of Colorado, it is an integral part of our business in re-graded and mulched or seeded. the western United States. It is also a shining example of reclamation done well. “For us, reclamation is integral to the mining process,” noted Plant Manager Josh Esquivel. “Concurrent Praised by the Colorado Division of Reclamation, Mining reclamation helps ensure the quarry will be viewed in a and Safety, Parkdale isn’t waiting until its reserves are positive light in the community, and that’s extremely exhausted to begin its reclamation efforts. important to our team. They are very proud of their reclamation efforts.” While employees at Parkdale mine portions of the quarry, they are actively reclaiming others MARTIN MARIETTA 53","ENVIRONMENTAL STEWARDSHIP When Parkdale’s mining days are done, the hope is people won’t be able to tell that quarrying took place there Reclamation at Parkdale is about more than just aesthetics, however. Among other things, it’s about “It’s the right thing to do. lending a hand to the animals that call the quarry home. That’s true at Parkdale, it’s The area is a habitat for bighorn sheep and mule deer. As part of the Parkdale team’s reclamation activities, true across the West Division, and they are removing invasive species and enhancing the it’s true throughout site with vegetation that more closely resembles pre-development conditions. our Company. It’s simply the Martin Marietta way of doing In addition, upon a recommendation from the Colorado Department of Parks and Wildlife, some business.” parts of the site are left bare and rocky, to mimic existing landscape and to provide sheep with a safe haven from predators. While many aspects of reclamation are mandated by law, Martin Marietta routinely goes above and beyond the regulations. As noted by West Division President Abbott Lawrence: “It’s the right thing to do. That’s true at Parkdale, it’s true across the West Division, and it’s true throughout our Company. It’s simply the Martin Marietta way of doing business.” Reclamation efforts at Parkdale provide food and shelter for bighorn sheep 54 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP Enhanced by Our Presence Winner of NSSGA Platinum Environmental Excellence Award Champions Stewardship Each year, the National Stone, Sand and Gravel (NSSGA) issues Awards of Excellence for Environment in platinum, gold, silver and bronze. These awards recognize specific producer member operations’ active contributions to the preservation of the environment in and around their operations. It is not an aesthetic or beautification award, but rather recognizes the corporate commitment to meeting and exceeding technical regulatory requirements and an exemplary use of environmental controls and systems. Of the Gold level winners (nine in 2020), only one is selected for the Platinum level award. The Company’s Berkeley Quarry was selected for this honor in 2020, and anyone familiar with the operation knows the recognition was years in the making. The Platinum Award recognizes the best of the best in environmental responsibility in the building materials industry by showing its commitment to the environment every day in their business operations. Berkeley Quarry’s grounds provide ample wetlands for local plant and animal species MARTIN MARIETTA 55","ENVIRONMENTAL STEWARDSHIP A wet mine utilizing an electric dragline, the 4,500-acre Berkeley team to ensure that its forest is healthy and site naturally offers an abundance of environmental providing the habitat necessary for local animals to thrive, resources, including a habitat for endangered species. East including the endangered Red Cockaded Woodpecker. Division Vice President of Environmental Services and Land Martin Marietta also continued its sponsorship of the Brian North says quarry management’s desire to always live South Carolina Wildlife Federation in 2020. The non-profit up to Martin Marietta’s own high standards helps support organization, which works to preserve the state’s natural their efforts to maintain and expand those resources. resources, has long partnered with Kramer and his team in various efforts to educate the public. “The Platinum Award recognizes Pausing to reflect on the NSSGA awards and the excellent the best of the best in achievements of the Berkeley team, Kramer summed up environmental responsibility in the Company’s approach to sustainability. the building materials industry by “What this award comes down to is that we’re doing the showing its commitment to the responsible thing at Berkeley by maximizing the resources we’ve been given while minimizing our overall environment every day in their environmental impact,” Kramer says. “We’re also helping business operations.” to educate the next generation so that they know that Martin Marietta works with the land, not against it.” “Our primary goal is to responsibly care for this land. Stewardship is a core value at Martin Marietta, so when it comes to compliance, we don’t just meet the minimum requirements, we go above and beyond,” North says. “Another one of our goals is education. We want people to understand our operation and to know that the wildlife we have here is enhanced by our presence.” Plant Manager Lin Kramer has led Berkeley Quarry for the past eight years and says the site has achieved perfect regulatory compliance during his tenure, receiving zero notices of violation. The Company became owners of a portion of land in 2017 that was previously owned by the neighboring Walworth Plantation. Since then, Kramer and his team have welcomed students to the facility from the surrounding area for educational workshops on mining and the plants, birds and animals that are native to the region. Although the COVID-19 pandemic brought a temporary halt to student activities at Berkeley in 2020, the site’s management continued its cooperation with numerous environmental agencies and advocates. As an example, Martin Marietta’s East Division partnered with American Forest Management, a Company that helps landowners responsibly care for their woodlands. Working Our Berkeley Quarry Cross, South Carolina with the forest management Company has allowed the 56 2020 SUSTAINABILITY REPORT","ENVIRONMENTAL STEWARDSHIP Texas Team Goes Above and Beyond to Minimize Environmental Impact Working in a part of town not served by the city’s waste St. Clair and Terminal Coordinator Bret Freudenberg now management department, employees at the Katy Cement make regular visits to the recycling center, carrying two Terminal in Texas have taken it upon themselves to make pickup trucks’ worth of bottles each time. St. Clair sure their plastic bottles are disposed of properly. estimated the team has recycled more than 15,000 bottles since the program began. Elrick St. Clair, the terminal’s manager, says the team typically goes through 1,500 bottles of water and sports drinks each month to battle dehydration under the blistering Texas sun. “These bottles also allow us to be efficient because they allow “The use of bottled water is very important to keep us hydrated,” St. Clair said. “These bottles also allow us to be our employees to have fluids efficient because they allow our employees to have fluids close to their work areas.” close to their work areas.” As the city of Katy was not able to assist in establishing a recycling program, the employees started their own by locating a nearby recycling center and creating a recycling area on the terminal grounds. The team at the Katy Cement Terminal started its own recycling program after learning their site was located outside of the city’s pickup zone MARTIN MARIETTA 57","Employee Well-Being Behind every great success at Martin Marietta, you will ﬁnd a commited group of diverse people all working toward the same goal. We believe our people are our greatest asset and remain dedicated to ensuring that each has the programs, resources, support and opportunity necessary to grow. Senior Safety Representative Caitlin Darnall 58 2020 SUSTAINABILITY REPORT","EMPLOYEE WELL-BEING A Career, Not a Job Company Workforce Enjoys Improved Martin Marietta Experience Social distancing and remote working in 2020 brought with it certain challenges, including how to effectively attract, recruit, hire and develop employees. At Martin Marietta, one of our goals is to make sure our people know that if they’re going to invest their time in us, we’re going to do the same for them, and that we have shared goals to work together to build a legacy. Among the initiatives adopted in 2020 was the launch of a new Martin Marietta Careers website and applicant tracking system. Designed primarily to enhance the experience of job candidates, the site highlights the overall diversity of the Martin Marietta workforce and business while offering a better understanding of the Company, its history, Mission, Vision and Values, benefits, and opportunities. Our team intends to expand this to a newly designed internal job board to improve the candidate experience for current employees seeking other opportunities within Martin Marietta. The onboarding process was also improved to ensure that all newly hired employees receive a package of materials that are informative, thorough and consistent in all locations in the Company. The onboarding process is heavily focused on the Company’s ONE culture and Mission, Vision and Values, and in 2020 was primarily moved to an online format, allowing newly hired individuals to complete all necessary paperwork at their own pace and, in light of the COVID-19 pandemic, without person-to-person contact. Another improvement made in 2020 was responsive to employees’ needs for personal time off. Introduced in the spring, Martin Marietta’s new paid time off (PTO) policy provides most employees with additional days off that can be used for vacations, illness, dependent care, or any other event that would prevent someone from attending work. Additionally, the Company engaged in an effort to more formalize its succession process that began by encouraging all employees to complete a talent profile detailing their career aspirations. Talent Management Specialist Rebecca Sperry played a key role in the project and said the information provided by employees allowed them to think about and articulate their career aspirations, and allow “Martin Marietta has helped me managers to gain better insight into their teams. The talent grow and learn about the type of profile data along with other assessments are used to bolster the Company’s bench strength for succession professional that I want to be.” planning, as well as serving a basis for professional and personal development opportunities for employees. – Kyle Vincent, Manager of Infrastructure and Network Architecture “The great thing about this project is that it provides valuable tools for succession management,” Sperry says. “The talent profiles give our employees a venue to MARTIN MARIETTA 59","EMPLOYEE WELL-BEING Martin Marietta’s newly launched Careers website aims to enhance the job applicant experience with Martin Marietta. At Left: Octavia Langston, Reliability Engineer at Midlothian Cement clearly communicate their goals, their perceived strengths Additional Employee Well-Being Highlights and areas for improvement, their willingness to relocate, and other details. This data then allows managers and We maintain a full slate of health and human resources professionals to align the goals and welfare and retirement plans. Importantly, aspirations of the employee with the strategic talent needs in addition to a retirement savings plan of the business, with more than 400 locations in 27 states that includes a company match of in 2020 and two international facilities. This is good for our employee contributions, we provide a employees, our managers and the Company as a whole.” qualified pension plan to which we contributed $75 million in 2020 and is fully Perhaps the most impactful change at Martin Marietta in funded. 2020 was the introduction of an additional medical coverage plan designed to give employees more choices Martin Marietta partnered with a new that are better tailored to their specific situations. benefits administrator (Alight Solutions) that began serving the Company’s Unveiled in late summer in advance of the 2021 annual workforce on Jan. 1, 2021. enrollment period, our new high-deductible health plan (HDHP) with a health savings account (HSA) provides The ONE culture continued to grow as it employees with medical coverage and a tax-advantaged provided a rally point around which the entire workforce could unite. savings and investment vehicle that offers a new way for employees to save money. Employees were offered greater access to flu shots as part of an ongoing effort to “This is a great option for many of our employees because ensure the overall health of the workforce. the HDHP provides comprehensive health insurance while the HSA provides greater freedom in terms of how Digital signage (installed Companywide in employees can save for a variety health-related expenses 2019) was used heavily in 2020 to convey they may encounter at any point in the future,” says vital information directly to employees Benefits Director Scott Mancini. “This is really about regarding a number of topics, including offering our people additional benefit options that work updates on COVID 19 pronouncements, for them and their families.” wellness and safety. 60 2020 SUSTAINABILITY REPORT","EMPLOYEE WELL-BEING An Employer of Choice Continues to Evolve Inclusion and Engagement Task Force Dedicated to Strengthening Company Culture In 2020, Martin Marietta formed an Inclusion and “The team has a unique moment to help shape the next Engagement Task Force intended to set the Company on a generation of thought leadership at Martin Marietta; that’s journey that will ensure our culture is consistently not an opportunity we’re taking lightly,” he says. “This welcoming and engaging with new and innovative responsibility compels us to be our best. Our interactions thoughts, based on feedback from its current and future have been energetic and highly engaging. It’s been great.” employees. While the group’s formation ran parallel to many of the Led by Chairman and CEO Ward Nye and Senior Vice national events that garnered media attention in 2020, the President and Chief Human Resource Officer Craig LaTorre, team had actually been in the works for quite some time the task force is comprised of 14 leaders who represent and will focus on matters that go much deeper than the the Company’s various divisions and corporate functions as headlines, task force members say. well as a diversity of opinions, experience, race, gender, sexual orientation, tenure and background. “This team is discussing inclusion and engagement from a diversity perspective, but we’re also discussing elements “When we first met as a group, we realized quickly that like trust, valuing the opinions of others, and feeling a the work of this task force will help strengthen our already sense of belonging – elements that align perfectly with the extraordinary culture,” Nye says. “We’re looking at this as sentiments behind Guardian Angel and ONE,” says Aileen a continuous improvement journey. The best elements of Gibson, Magnesia Specialties vice president of technical Martin Marietta have always come from task forces like services and a task force member, added, “By working this – committees of our people. Guardian Angel is a toward an even more inclusive culture, we’ll be better able perfect example. Our World Class Task Force and the to engage our employees, which will make Martin Marietta emergence of our ONE employee branding effort are more productive and more innovative.” others. Just as we’ve done historically, this committee will act deliberately to position our people and Company for “This isn’t about hitting some type of a quota or settling sustainable growth and long-term success.” on some pre-determined number, this is about new voices and opportunity,” Sifuentes says. “We want our people, Referring to the effort as “a roll up (from the people) rather and anyone considering a career with us, to know that than a rollout (from leadership),” Manny Sifuentes, director opportunity is available to all here. We want everyone to of competitive intelligence and a task force member, agrees understand that this journey we’re on together will lead to with Nye’s assessment and says it’s exciting to be part of this a stronger Martin Marietta.” next phase in the Company’s evolution. MARTIN MARIETTA 61","EMPLOYEE WELL-BEING A Year Like No Other Adapting to and Succeeding in the COVID-19 World Martin Marietta’s safety performance in the midst of the Wingman principles while always acting as ONE team in COVID-19 crisis in 2020 was extraordinary, and we are 2020 enabled us to not only adapt quickly to a host of extremely proud of our employees for what they continue operational and safety changes brought about by the to do -- day in and day out -- to work safely in the face of pandemic, but to post our safest year on record in unprecedented challenges. the process. Difficult times can test character, so we rely upon our Our approach to managing the COVID-19 pandemic, values, beliefs and culture to guide us. This is what makes though we were deemed an “essential business” and Martin Marietta so special. Our collective commitment to operated nearly continuously throughout 2020, has been ethics and safety is deeply rooted in our DNA. It’s who we multi-faceted from the outset. Non-essential travel was are. Embracing our Guardian Angel safety culture and its restricted in early March as a majority of our support staff Fernando Ocampo Rodriguez, a lab technician at Arkansas’ Hatton Quarry, dons a face covering while testing a sample of the site’s granite. 62 2020 SUSTAINABILITY REPORT","EMPLOYEE WELL-BEING Exceptional Execution The Move to Remote Work COVID-19 safety protocols were implemented In order to prevent the spread of COVID-19 in our across all Company operations in 2020 to help offices, a majority of our support staff transitioned ensure the health of our employees: to primarily remote work environments: • Adherence to safety protocols ensured minimal • Approximately 1,300 employees remotely employee-to-employee transmission supported Martin Marietta’s operations in 2020 • Operational planning and flexibility enabled • Transitioning this portion of our workforce to the Company to maintain its “essential remote work provided greater control over our business” designation and continuing work environments and allowed our teams to operating during 2020 effectively implement COVID-19 social distancing requirements • Creation of a Martin Marietta HealthHub internal website to give employees easier access • Virtual quarterly and annual external audits were to Company policies and guidance, as well as conducted in 2020 with no delays in internal or fast-changing educational materials from the external financial reporting CDC and the government relating to COVID-19 • We experienced ZERO significant deficiencies or material weaknesses transitioned to remote work. Our executive leadership team quickly mobilized to provide the framework needed for an effective Company response. We leveraged our long-standing business relationship with our occupational medical provider to help draft safety protocols that were quickly implemented across the Company. Our proactive and rapid management response to the COVID-19 pandemic involved a cross functional Corporate Response Team, which oversaw the development, implementation and maintenance of safe working protocols that allowed for uninterrupted business at all of our 24-hour operations; we experienced only very modest shutdowns across other operations. These protocols have allowed us to navigate an effective response to the COVID-19 pandemic and the evolving guidance from the Centers for Disease Control and Prevention (CDC) while operating our business safely. All the while, we maintained the flexibility needed to meet all operational, business and regulatory demands. As COVID-19 infection rates fluctuated nationwide throughout the year, our protocols remained effective. We continue to see little employee-to-employee spread. As the virus and its impacts persist through 2021, we will remain true to our Guardian Angel and ONE cultures and continue to follow the protocols that have so effectively protected our employees’ health and well-being. MARTIN MARIETTA 63","EMPLOYEE WELL-BEING Covid-19 Strategy \& Response Guiding Principle Ensure the safety, health, and well-being of our employees, customers, visitors and other constituents, and the continuity of essential functions COVID-19 Strategic Health \& Operational Operating Structure Business Partner Safety Protocols Agility • Executive steering • Partnered with • Face coverings • Remote work committee industrial medical • Employee and • Virtual meetings physicians who know • Corporate response our operations and visitor screening • Staggered shifts team employee base well • Cleaning and • Meeting size • Re-opening • Screening disinfecting restrictions committee and triage • Task training • Online training • Field HR and safety • Medical • Re-opening • Electronic visitor professionals consultation protocol sign-in and • Corporate • Case management • Travel safety screening communications • CDC guidance precautions • Digital signage • Corporate and • Data trend analysis division point of contacts 64 2020 SUSTAINABILITY REPORT","EMPLOYEE WELL-BEING Company’s Tuition Reimbursement Program is Changing Lives They had their health, but in the earliest days of the “Before coming to Martin Marietta, I was going to school pandemic, life in the Gutierrez household grew part time while working two jobs to pay tuition. But considerably harder. working through the Tuition Reimbursement Program has been great. I don’t have to work two jobs anymore, so I “My wife, Helen, was in marketing for the travel industry, have more time to concentrate on my studies.” so when travel shut down, she was let go pretty quickly,” said Justin Gutierrez, a talent acquisition specialist based in HR Operations Specialist Jessica Holmes administers the the Southwest Division office in Dallas. “I’m in graduate program from her office in Raleigh and said it is available school, and the last thing we needed at that stage was a to any full-time employee who has been with the giant tuition bill. Luckily, we had our finances in order. Company for more than one year and is pursuing an Martin Marietta had a hand in that.” associate, bachelor’s or master’s degree in a subject that aligns with his or her career path or current job Gutierrez, who has been with the Company for about three responsibilities. years, is studying to earn a master’s degree in industrial and organizational psychology from Angelo State University. Annually, the program is allowed to provide up to $5,250 Through the Martin Marietta Tuition Reimbursement in reimbursement benefits, Holmes said, adding that the Program, the Company is helping him foot the bill. money can cover costs like tuition, books, program fees and other related charges. Talent Acquisition Specialist Justin Gutierrez plans to soon complete a master’s degree in industrial and organizational psychology. MARTIN MARIETTA 65","EMPLOYEE WELL-BEING “There is an application involved, and anyone wishing to High Achievers enroll in the program must receive the proper approvals,” she said. “We also request that each student-to-be submit a Among the Tuition Reimbursement Program participants letter of intent that outlines their academic plan – details like earning degrees this year are: how many credits they’ll need to graduate and whether they’ll be attending live classes or an online program. The • Charlie Charping, senior GIS analyst, school must also be an accredited college or university.” master’s degree in geospatial information science and technology, May 2020, Depending upon the employee’s role with Martin North Carolina State University Marietta and/or the proposed degree type, the necessary application approvals range from an immediate supervisor • Rafael Fajardo, operations manager, MBA, all the way up to a division president or executive vice December 2020, University of Texas at Tyler president, Holmes said. • Joe Gohrs, senior field services specialist, master’s Once approved for the Tuition Reimbursement Program, degree in information technology management students must maintain at least a C average to retain – specialization in cybersecurity, November 2020, eligibility. Holmes said program participants are also Colorado State University Global provided with thorough instructions detailing exactly how and what documents to submit for reimbursement. • Elizabeth Hecker, senior accountant, master’s degree in professional accountancy, August 2020, “One thing that’s important to note is that there’s no Colorado State University Global timeline on this program,” she said. “As most of us realize, life happens. Sometimes we think it’s a good time to enroll • Jeff Jones, electrical engineering manager, MBA, in an academic program, but then our circumstances May 2020, Campbell University change. We understand that you may need to take some • Robyn Marra, office manager, associate degree time away from the classroom. All we ask is that you notify in business administration – human resource us if that’s the case.” management, May 2020, Gaston College One person who appreciates the program’s no-timeline • Suzanne Marucci, business reporting administrator, clause is Regina Woodard, office manager in the East bachelor’s degree in business, December 2020, Division’s Ball Ground Quarry in Georgia. Tarleton State University Woodard began her studies in 2006, about 11 years before • Rebecca Sperry, talent management specialist, Ball Ground was acquired by Martin Marietta. Taking two master’s degree in organizational management, classes per semester while continuing to work full time, project management specialization, June 2020, Woodard said the site’s former owners offered little help in Ashford University the way of tuition reimbursement. At one point, work, combined with a host of other circumstances, forced • April Tranmer, ready mix sales auditor, bachelor’s Woodard away from the classroom for several years. degree in general business, August 2020, Colorado State University Global Once the Ball Ground team became part of the Martin Marietta family, Woodard leapt at the opportunity to • James Wallace, estimator/project manager, master’s utilize the Tuition Reimbursement Program. degree in management, May 2020, Colorado State University Global “It took a while, and I’m still working to get where I want to be, but this is something I’ve always wanted to do, so • Regina Woodard, office manager, bachelor’s I’m determined to finish,” she said. degree in accounting, July 2020, Georgia Southwestern State University 66 2020 SUSTAINABILITY REPORT","EMPLOYEE WELL-BEING Ball Ground Quarry Office Manager Regina Woodard earned a degree in accounting in July. In July, Woodard completed her undergraduate program, Holmes said. “We’re proud of everyone going through earning an accounting degree from Georgia Southwestern this program. It’s not easy to juggle a full-time career, State University. Now, she’s planning to spend the next education and family commitments.” year taking the tests necessary to become a certified public accountant. Eventually, she hopes to pursue a master’s Gutierrez said the program has not only improved his degree as well. professional outlook, but also the collective outlook for the next generation of his family. “Everyone here at Martin has been so supportive,” she continued. “(District Production Manager) Matt Waligora “My wife and I are from similar backgrounds and we and my supervisor, (Plant Manager) Chuck Schlumbrecht, didn’t always have a lot growing up,” he said. “What we are both on board and have been so helpful making sure did always have were large families; between the two of my program forms make it to the proper people.” us, we have 25 nieces and nephews. We both feel like we’re setting a good example for them. We’re showing Holmes said the program currently has about 73 active them that hard work and dedication can pay off.” participants and that more than a dozen have already graduated in 2020 or plan to do so before the end of the For Woodard, the program has strengthened the sense of year. She said their efforts are truly impressive. community she feels at Martin Marietta. “I think our Tuition Reimbursement Program offers our “It comes down to feeling valued,” she said, “and having employees a great opportunity to move forward with their this opportunity does that for me. It makes me feel like I’m development – both personally and professionally,” part of a team here – like I’m working with people who really care about me.” MARTIN MARIETTA 67","EMPLOYEE WELL-BEING Scholarship Recipients In Year of Pandemic, Company Awards 8 Student Scholarships Each spring, Martin Marietta provides as many as eight The class of 2020 missed out on proms, rallies, graduations high school graduates with scholarships that may be used and many of the other activities that make high school to attend any accredited college or university. Well- memorable. Still, many of our scholars appear to have rounded students with exceptional marks in the classroom handled the pandemic with grace and gratitude. Martin and worthwhile service in the community, these Marietta is proud to offer these young men and women scholarship recipients receive $3,500 annually ($14,000 assistance as each strives to find their place in the post- over the course of a four-year degree program) while pandemic world. pursuing any course of study they desire. With economic conditions tightened for many in 2020 because of pandemic-driven societal shutdowns, these scholarships were even more important than in past years. Megan Collins Nicole Kaminski • North Carolina State University • Michigan State University • Lee County High School (NC) • Manistee Catholic High School (MI) • Daughter of Lemon Springs Quarry Office • Daughter of Magnesia Chemicals Senior Office Manager Donald Collins and April Collins Administrator Debra Kaminski and Phil Kaminski Wade Dobbs Avery Koeppen • University of Georgia • University of North Carolina Wilmington • Monroe Area High School (GA) • Sanderson High School (NC) • Son of North Georgia District QC Supervisor • Daughter of Senior Software Engineer Jaime Chad Dobbs and Tonya Dobbs Koeppen and Elizabeth Ciereszko Samuel Gentry Wyatt Moore • The University of Texas at Tyler • Oklahoma State University • Arp High School (TX) Son of East Texas Ready • L.V. Berkner High School (TX) Mix Group Senior Mechanic and Welder Tom • Son of North Texas Ready Mix Group Safety Gentry and Heather Gentry Manager Mark Moore and Leigh Moore Jonah Johannes Madeline Rouze • University of North Dakota • American University • Annandale High School (MN) • Holy Family High School (CO) • Son of St. Cloud Quarry Driller Delroy Johannes • Daughter of Denver Metro Ready Mix Group and Victoria Johannes Mixer Truck Driver Carl Rouze and Kerri Reilly 68 2020 SUSTAINABILITY REPORT","Community Well-Being In communities large and small, the relationships that we build in our own backyards deﬁne Martin Marietta. We are committed to being a responsible neighbor and supporting the communities that are home to our operations and colleagues. We are invested in each community's well-being and proud to serve as a ready and willing partner. Mary, a third grader in Wake County, North Carolina, reads while wearing a face covering provided by Martin Marietta. The Company donated more than 47,000 face coverings to the school district, which is the state’s largest. MARTIN MARIETTA 69","COMMUNITY WELL-BEING A Trusted Community Partner: Corporate Giving Our corporate philanthropic priorities focus our giving and community support activities to create a deeper, more meaningful impact in the areas where we live and work. Our philanthropic support is in four key areas: disaster preparedness and response, meeting families’ basic needs, education and workforce development, and environmental preservation. Our commitments in these areas helps us be a good neighbor and trusted partner in the more than 400 communities in which we live and work, while creating the most value for our diverse stakeholders. In 2020, this included assisting our communities as they struggled to respond to the COVID-19 pandemic. Disaster Preparedness Meeting Families’ and Response Basic Needs Safety is a core value of Martin Marietta and a key Our mission statement says we provide the sustainability focal area. In line with our foundation upon which our communities improve uncompromising commitment to the safety and health and grow. It’s hard for communities to flourish if of our people and our neighbors, we support working families are struggling to make ends meet. programs that help our communities prepare for and As such, we support programs focused on meeting respond to disasters, and that bring aid to our the basic needs of families, including food, shelter communities when in need. and access to healthcare. Education and Workforce Environmental Development Preservation An educated and skilled workforce is critical to a Environmental stewardship, a core value of Martin community’s foundation and to the future of Martin Marietta, embodies our commitment to making Marietta. We support educational programs that help tomorrow’s world better than today. We support people develop the knowledge skills, and expanded projects that provide tangible improvements to the views that will help them succeed and contribute to environment, such as ecosystem conservation and society. Additionally, we support programs that restoration, improvements in air and water quality, provide young or transitioning adults with training and waste reduction, and conservation education. technical skills to equip them for satisfying and productive careers. 70 2020 SUSTAINABILITY REPORT","COMMUNITY WELL-BEING We’re All Going Through This Together Company Donations During Pandemic Bring Comfort to Communities Across the Country As COVID-19 began to spread across the globe in early “Soon after COVID emerged, it became a mandate that 2020, it became clear to Martin Marietta’s employees that we had to wear face masks pretty much everywhere,” it would take a collective effort by all to protect people Charles Carney said. “But many of us had trouble finding against the virus. them early on. April sat down and went to work making masks for anyone in need. In the past year, she’s probably Deemed an essential business in the pandemic’s earliest given away more than 500 masks to friends, family, days, and operating nearly continuously during 2020, neighbors and co-workers.” Martin Marietta’s employees across the Company not only strove to keep each other safe, they worked tirelessly to While April Carney’s efforts earned her the gratitude of the ensure the health and well-being of our communities. operation team and West Division leadership, Charles Carney’s efforts earned him a divisional Wingman of the In Johnstown, Colorado, Batchman Charles Carney at the Month honor. Highway 34 Ready Mix Plant took it upon himself to lead the effort to keep the site’s work surfaces cleaned and In Manistee, Michigan, home to Magnesia Specialties’ disinfected. In addition to his regular duties, Carney also Magnesia Chemicals operation, Process Engineer Kris maintained a steady supply of cleaning solution for the rest Kacynski and Furnace Superintendent Brett Ballard, of the crew. He also enlisted the help of his wife, April representing Martin Marietta as part of the local Chamber Carney, who quickly sewed more than 60 cloth face of Commerce’s Leadership Program, were involved in coverings for the team, in the early days when supplies organizing the community’s Big Day of Serving. were scarce and largely reserved for medical practioners. Brett Ballard (left) and Kris Kacynski worked alongside 10 members of the Manistee Area Chamber of Commerce’s Leadership Program to distribute 6,500 pounds of food during the Big Day of Serving. MARTIN MARIETTA 71","COMMUNITY WELL-BEING The team at Bakers Quarry collected 500 pounds of food for a local were matched by nearby Matthews Quarry, which contributed an additional 582 pounds of food. “In past years, the Chamber has organized hundreds of “Helping our community helps give Martin Marietta a volunteers and completed dozens of hands-on projects good name,” says Director of Transportation and Logistics all on the same day,” Kacynski said. “But our 2020 team Julia Larson, who spearheaded a donation of 500 meals for had to coordinate this event around COVID-19, and what staff at a Denver area hospital and 2,000 face coverings for we realized pretty quickly was that our community doesn’t students in a local school district, “but more importantly, it need its parks painted right now. Our seniors don’t need shows that we’re a part of this community. We’re all going their lawns raked right now. What our community needs through this together.” most is food.” After collecting donations from the local business COVID-19 Donation Highlights community, including Martin Marietta, Kacynski, Ballard and the rest of the Chamber group distributed 6,500 pounds of food to more than 260 area families. Martin Marietta’s Corporate Office in Raleigh donated 47,000 face coverings to the Wake “Knowing there are so many in our community who have County Public School System, the largest school district in North Carolina. trouble securing enough food is humbling,” Ballard said. “But it feels good to help. And it feels good knowing that I work for a really good Company that’s always willing to help, too.” The Southwest Division’s Midlothian Cement and Hunter teams donated more than 4,750 To help address increased food insecurity during the N-95 masks to various first responder agencies across Texas along with several pandemic, Martin Marietta teams across the Company hundred large bottles of hand sanitizer. organized similar types of food drives. In the East Division’s Charlotte District, teams at Matthews and Bakers quarries collected more than 1,000 pounds of The East Division’s NC-East District provided food. At the Company’s corporate headquarters in the Boys and Girls Clubs of Wake County Raleigh, employees contributed almost 25,000 meals. In with $10,000 to support virtual Texas and Colorado, teams also purchased hundreds programming and food distribution to local of meals for first responders in hospitals, fire houses and families in need. police departments. 72 2020 SUSTAINABILITY REPORT","COMMUNITY WELL-BEING Southwest Division Team Shows Support for Residents of Historic Freedmen’s Community In late August 2020, Martin Marietta’s Southwest Division Jackson said the Martin Marietta team’s contribution was team worked with Dallas’ South Central Civic League to part of an effort coordinated by Shalondria Galimore, bring aid to a community first settled by newly freed men president of the South Central Civic League. The South and women in the late 1860s. Central Civic League, whose main goal is to improve living conditions for local families, was founded in 1948 by Mrs. Rail Operations Manager Bradley Jackson worked with Laurabelle Foster and has been instrumental in the Production Supervisor Randy Rutledge, Management completion of many projects that benefited the Joppa Associate Ashley Trappe and Executive Administrative neighborhood, including the addition of paved streets, Assistant Nancee Trinh to source, package and deliver 88 better schools, the installation of street lights, and sewer backpacks filled with school supplies, along with 160 line extensions. bottles of hand sanitizer and 160 face coverings, to the children of Joppa, an historic Dallas neighborhood near the Delivered directly to the students and families, each Company’s Miller Rail Yard in southeast Dallas. backpack contained pencils, coloring books and stress relief safety cones, Jackson said. Joppa, occasionally spelled Joppee, Joppie or Joppy, was first settled by formerly enslaved people from a nearby “This is the type of event that goes a long way with our plantation shortly after the Civil War. It is said to be one of neighbors in the community, especially the children,” three Freedmen’s Communities remaining in Texas and one Jackson said. “For many of these parents, affording school of the best preserved in the country. supplies isn’t possible and for others, it’s a real sacrifice. We wanted to help where we could.” From left: Randy Rutledge, Shalondria Galimore and Bradley Jackson deliver backpacks to the families of Joppa, Texas MARTIN MARIETTA 73","COMMUNITY WELL-BEING Corporate Human Resources Team Lends a Virtual Hand to Non-profit Women’s Organization In early 2020, the Corporate Human Resources team Martin Marietta Human Resources team met virtually to began a partnership with Dress for Success Triangle, the host mock interview sessions to help 18 Dress for Success Raleigh, North Carolina chapter of an international non- clients sharpen their interview skills. After completing the profit that provides assistance to low-income women in hour-long sessions, Martin Marietta staff provided the achieving economic independence. Dress for Success offers women with feedback and interview tips. women help in many ways, according to Megan Eilenberger, director or programs for the Triangle branch. “I really enjoyed working with Dress for Success,” said First, the organization offers quality professional attire to Corporate Recruiter Josh Jones, a member of the five- help women looking to enter or re-enter the workforce. person group that first reached out to the non-profit. Additionally, the non-profit organization offers skills “Helping the women in the Dress for Success program training, along with guidance on interviewing and resume hone their interview skills, while providing tips and tools writing, so that each woman is prepared for the that will help each woman land her next opportunity feels professional world. like a great way to pass along what I’ve learned during my 10 years of recruiting.” Martin Marietta began the relationship with Dress for Success when plans were made to hold an in-person Eilenberger said mock interviews have become an service event. increasingly important piece of the Dress for Success program in the past year and praised Martin Marietta for Although the initial event had to be canceled because of its willingness to contribute. the COVID-19 pandemic, the Company and the non-profit found other ways to work together. First in the spring “We’re thrilled companies like Martin Marietta are still able 2020 and then again later in the year, members of the to give back and still able to engage with us,” she said. Members of Martin Marietta’s Corporate Human Resources Team meet virtually with clients of Dress for Success Triangle. 74 2020 SUSTAINABILITY REPORT","APPENDIX APPENDIX Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Earnings before interest; income taxes; depreciation, depletion and amortization; and the earnings/ loss from nonconsolidated equity affiliates (Adjusted EBITDA) is an indicator used by the Company and investors to evaluate the Company’s operating performance from period to period. Adjusted EBITDA is not defined by generally accepted accounting principles and, as such, should not be construed as an alternative to earnings from operations, net earnings, or operating cash flow. However, the Company’s management believes that Adjusted EBITDA may provide additional information with respect to the Company’s performance. Because Adjusted EBITDA excludes some, but not all, items that affect net earnings and may vary among companies, Adjusted EBITDA as presented by the Company may not be comparable to similarly titled measures of other companies. The following table presents a reconciliation of net earnings attributable to Martin Marietta to Adjusted EBITDA (in millions): Years ended December 31, 2020 2019 Net Earnings Attributable to Martin Marietta $721.0 $611.9 Add back: Interest expense, net of interest income 117.6 128.9 Income tax expense for controlling interests 168.2 136.3 Depreciation, depletion and amortization expense and earnings/loss 386.0 377.4 from nonconsolidated equity affiliates Adjusted EBITDA $1,392.8 $1,254.5 MARTIN MARIETTA 75","Our Red Canyon Quarry Colorado Springs, Colorado 76 2020 SUSTAINABILITY REPORT","Safe Operations Environmental Stewardship Keeping safe all who come into Remaining cognizant of and contact with our business by responsive to our impact on providing the environment, climate, air, water, wildlife resources and knowledge and other natural resources necessary to always make the prudent decision, and fostering a culture of responsible leadership Employee Well-Being Community Well-Being Encouraging and assisting our Being a responsible neighbor people in their growth and and caring for development, while the communities in which we recognizing that the diversity live, work and serve of our employees is a strength that enhances our entire Company 1 2021 PROXY STATEMENT MARTIN MARIETTA 1","Martin Marietta 4123 Parklake A venue Raleigh, NC 27612 (919)919) 781 www.martinmarietta.com NYSE Stock Symbol: MLM"];