Page 50 - 2022 Sustainability Report

ENVIRONMENTAL STEWARDSHIP

Put succinctly, as an aggregates company with a small strategic cement business, we are a very small contributor to CO e
2
emissions. This is in stark contrast to global cement companies who have a substantially greater number of cement plants,
total GHG emissions, and percentage of their revenue derived from such cement operations.

Mar n Marie a aggregates, Mar n Marie a heritage
concrete and asphalt plants cement plants

2
The small size of our heritage 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 only 1.7% of 2022 Product shipments.
2008
• Accounts for 9.8 percent of our consolidated
revenue in 2022

Scope 2 Emissions

As noted above, Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or
cooling. 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 2022 our heritage operations consumed 1.5 million kilowatt hours of purchased power which generated 625,943
mtCO e emissions. In last year’s report we adopted a target to reduce or offset those Scope 2 emissions by 30% by 2030
2
versus a baseline year of 2021. In addition, as we believe that the available offset and reduction methods in regard to
Scope 2 emissions are certain enough that we also committed 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.

In 2022, we undertook some of the first steps to achievement of our 2030 and 2050 Scope 2 goals. In particular, working
with our partner Engie we purchased GREEN-E® ENERGY certified renewable energy credits (RECs) in an amount equal to
40,247 MWhs. These RECs were generated by three wind energy projects in the state of Texas for audit year 2022. In
addition, and as described more fully elsewhere in this report, construction on our Woodville wind energy project
commenced in 2022 and energy from that project is anticipated to be used in future years to meet our Scope 2 goals. We
continue to explore solar and wind options for at our other facilities as well. For example, at our St. Cloud and Yellow
Medicine quarries in Minnesota, a substantial portion of their power (79% and 100%, respectively) is provided from a local

2 The Scope 1 GHG totals do not include any of the assets acquired in October 2021 and held for sale in 2022.

48 2022 SUSTAINABILITY REPORT