Page 52 - 2022 Sustainability Report
P. 52

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 mining 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.

        As shown below, despite an increase in GHG emissions from our aggregates and targeted downstream businesses as a
        result of our acquisitions in 2021, we achieved a decrease in our GHG emissions per million dollars of revenue. As we
        continue to make investments to replace older equipment, we would expect this trend to continue.

                                                                                  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


                                                   599               154.4  151.1  144.5  133   124   123.5
             Metric Tonnes of Scope 1   GHG Emissions (x 1,000)  GHG Emissions / $M in   Product and Services Revenue
                               534
                                            532
                                      519
                         502
                   479





                  2017   2018  2019  2020   2021  2022                2017  2018  2019   2020  2021   2022

          1  Scope 1 GHG Emissions = Direct emissions, less transportation and international operations. California and Arizona aggregate, asphalt and concrete
          assets are included in these totals.


        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 58 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.”





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