Page 57 - 2023 Sustainability Report

ENVIRONMENTAL STEWARDSHIP

Put succinctly, as an aggregates led company with a small strategic cement business, we are a very small contributor to
CO e emissions. This is in stark contrast to global cement companies who have a substantially greater number of cement
2
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

The small size of our heritage cement operations compared to our overall business — both in terms of
2
revenue and production — is an important and significant differentiator between Martin Marietta and
other companies operating in the cement industry. Our cement business:
• In 2023 operated 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 • Achieved a 10.8% year over year reduction in
2008
actual Scope 1 GHG emissions
• Accounted for 10.4 percent of our consolidated • Represents only 1.7% of 2023 Product shipments
revenue in 2023

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 and the solar projects
described elsewhere in this report), and the sponsorship or financing of offsite green power projects. In fact, based on our
review of publicly available data we estimate that approximately 24.6% of the electrical grids across our geographic footprint
are powered by green energy.

In 2023 our heritage operations consumed purchased power which generated 610,606 mtCO e emissions, a 2.5%
2
decrease year over year. In our 2021 report we adopted a target to reduce or offset Scope 2 emissions by 30% by 2030
versus a baseline year of 2021. In addition, we also committed to reducing or offsetting these emissions a goal of Net
Zero Scope 2 emissions by 2050. This goal applies to all Scope 2 emissions across all product lines.

In 2023, we continued our efforts towards meeting 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 80,494
MWhs. These RECs were generated by two wind energy projects in the state of Texas for audit year 2023. In addition, and as
described more fully elsewhere in this report, construction on our Woodville wind energy project was completed in late 2023
and energy from that project is anticipated to be used in future years to meet our Scope 2 goals. We also 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 Solar Garden

2 The Scope 1 GHG totals do not include any of the California assets acquired in October 2021 and held for sale and sold in 2023. We have included
emissions from the Hunter cement plant which was sold in February 2024.

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