Page 55 - Martin Marietta - 2024 Sustainability Report

ENVIRONMENTAL STEWARDSHIP

Greenhouse Gas Emissions

Overview

Scope 1 emissions are direct greenhouse (GHG) emissions that occur from sources that are controlled or owned by an
organization (e.g., emissions associated with fuel combustion in boilers, furnaces, and vehicles). Scope 2 emissions are
indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Although Scope 2 emissions
physically occur at an offsite facility where they are generated, they are accounted for in an organization’s GHG
inventory because they are a result of the organization’s energy use. In our 2021 Sustainability Report we established
our goals for reducing or offsetting our Scope 2 emissions. This was in addition to our existing Scope 1 GHG emissions
reduction commitments for our cement and Magnesia Specialties businesses. In our 2022 Sustainability Report we
established our ambition for the business as a whole to be Net Zero by 2050 for Scopes 1 and 2.

Martin Marietta is an aggregates company (crushed stone, sand and gravel) when viewed in terms of our revenue and
operational footprint. The vast majority of our facilities are associated with our aggregates business, including more
than 389 quarries, mines and distribution yards. Construction aggregates businesses are not large emitters of GHGs,
with the predominant source being diesel fuel used in trucks and other mobile equipment. We also have two targeted
downstream businesses: ready mixed concrete and asphalt and paving services. Finally, we operate small, but strategic,
cement and Magnesia Specialties businesses.

In our previous Sustainability Reports, we focused on the metric of GHG intensity per tonne of cement. However,
because cement is an increasingly small component of our portfolio, focusing only on this metric has resulted in
incongruous comparisons relative to true cement companies and makes it difficult for investors and climate-related
ratings organizations to evaluate our performance with respect to our primary business of aggregates. For example, in
2024, cement made up only 1.1% of the total tons of products (excluding magnesia based products) shipped. On a
revenue basis, only 6.7% of our 2024 revenue was from cement.

1
The small size of our heritage cement operation 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:
• In 2024 we reduced our cement capacity to one
• Achieved a year-over-year reduction of 210,000
modernized and efficient plant in Midlothian, Texas
metric tonnes of actual Scope 1 GHG emissions at
• Accounted for 6.7 percent of our consolidated our Midlothian Plant alone, and an additional 1.01
revenue in 2024 million metric tonnes eliminated through the
divestiture of our Hunter Plant.
• Further reduced our Midlothian Plant’s intensity to
0.550, which remains well below the U.S. cement • Represents only 1.1% of 2024 product shipments
industry average

1 We have included emissions from the divested Hunter Cement Plant and associated ready mix plants for the first 40 days of 2024 in our Scope 2 totals.

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