Page 59 - 2023 Sustainability Report

ENVIRONMENTAL STEWARDSHIP

expect that railroad engines will face similar standards. We will continue to support our vendors in their efforts to reduce
their Scope 1 emissions, thereby reducing our Scope 3 emissions.

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, in 2023 we saw a decrease in both absolute Scope 1 emissions and in our GHG emissions per million
dollars of revenue. As we continue to make investments to replace older equipment, we 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

599 551 154.4 151.1 144.5 133 124 123.5
534
532
Metric Tonnes of Scope 1 GHG Emissions (x 1,000) Metric Tonnes GHG Emissions / $M in Product and Services Revenue 96
519
502
479

2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023

1 Scope 1 GHG Emissions = Direct emissions, less transportation and international operations.

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. Finally, as noted elsewhere we continue to invest capital in fixed plant equipment modernizations that
result in, among other things, Scope 2 efficiencies. See “Our Roadmap” starting on page 65 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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