Page 58 - 2023 Sustainability Report

ENVIRONMENTAL STEWARDSHIP

under a long term subscription agreement. Similarly, as described in more detail elsewhere in this report our Hatton and
Jones Mill, Arkansas quarries, we have installed solar power panels that power the offices, labs and training rooms during
daylight hours. Lastly, we continue to undertake efficiency projects which replace older equipment with newer, more energy
efficient equipment such as at our Eden Prairie, MN asphalt plant and our finish mill upgrade at our Midlothian Cement
plant.

Minnesota Solar Garden

Scope 3 Emissions

Scope 3 emissions are not produced by the reporting organization, and are not the result of activities from assets owned
or controlled by the reporting organization, but are emissions that result from its value chain. The Scope 3 emissions for
one organization are the Scope 1 and 2 emissions of another organization. Scope 3 emissions are also referred to as value
chain emissions.

At this time, the Company has begun the initial steps of gathering this data. We are also evaluating the disclosure of
Scope 3 emissions in light of the U.S. Securities and Exchange Commission recently published climate disclosure rule.
For many service related businesses, Scope 3 emissions make up the bulk of their GHG footprint. However, as a
manufacturing business, we believe that the bulk of our Scope 3 emissions are most likely from the transportation of our
products. Transportation commonly occurs by truck with attendant GHG emissions related to diesel and other fuels.
However, we are also the largest rail shipper of aggregates in the U.S., which is more efficient and less GHG-intensive for
longer shipments.
Efforts to reduce transportation-related emissions will increasingly be incentivized or required by regulation. Heavy
on-road trucks are already highly regulated and we expect emissions standards will continue to become stricter. We

56 2023 SUSTAINABILITY REPORT