Page 41 - 2021 Sustainability Report

ENVIRONMENTAL STEWARDSHIP

As noted above, Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or
cooling. Our ability to control the actual emissions of the third party providers is obviously limited. However, to achieve Scope
2 emissions targets, multiple tools are available including the purchase of Renewable Energy Credits (RECs), the purchase or
installation of green power (such as our Woodville Wind project described elsewhere in this report), and the sponsorship or
financing of offsite green power projects.

In 2021 our heritage operations consumed 1.468 million kilowatt hours of purchased power which generated 584,422
e of GHG. In this report we are adopting a target to reduce or offset those Scope 2 emissions by 30% by 2030
mtCO 2
versus a baseline year of 2021. In addition, while we are still considering a long term target for our Scope 1 emissions
as discussed above, we believe that the available offset and reduction methods in regard to Scope 2 emissions are certain
enough that we are also committing to reducing or offsetting these emissions a goal of Net Zero Scope 2 emissions by
2050. This goal will apply to all Scope 2 emissions across all product lines.

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.

Recarbonation

Emerging research suggests that up to 25 percent of the CO originally emitted during cement production can be
2
captured 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. 1

Cement Manufacturing

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 https://lowcarboneconomy.cembureau.eu/5-parallel-routes/downstream/recarbonation/

MARTIN MARIETTA 39