Page 29 - Martin Marietta - 2024 Sustainability Report

COMPANY OVERVIEW

profitability in all markets served by the Company in its Building Materials business. In addition, inclement weather can
reduce the useful life of an asset. In particular, the Company’s operations near the Atlantic Ocean and Gulf Coast regions of
the United States and The Bahamas are at risk for hurricane activity, most notably in August, September and October. The
Company is also at risk for Pacific Ocean storm activity. The last several years brought an unprecedented amount of
precipitation to the United States and particularly to Texas and the southeastern United States, notably the Carolinas, Florida
and Georgia, where it impacted the Company’s facilities. In addition, the Company’s California operations are at risk for
wildfires and water use restrictions in the event of severe drought conditions. An insufficient supply of water for the
Company’s operations in those areas could impact production. While reconstruction activities may offset some or most of
the financial impacts on sales and demand, any of these events could have a material adverse effect on the Company’s
business and operations.

As the Company’s footprint of quarries and aggregates facilities has grown nationwide, management believes it has
bolstered resilience in its operations by maintaining a geographically diverse business and distribution network that is
increasingly able to adjust to local disruptions and source materials from different facilities. In addition, because the
Company transports aggregates products by various methods, including rail and water, it may be able to mitigate supply
or transportation issues in any location caused by severe weather or disruptions in any transport modality.

Sustainability Opportunities

Notwithstanding the foregoing risks and uncertainties relating to climate change, there may also be opportunities for the
Company to increase its business or revenues through sustainability opportunities. For example, warm and/or moderate
temperatures in March and November allow the construction season to start earlier and end later, respectively, which
could have meaningfully positive impacts on the Company’s first- and fourth-quarter results, respectively. From a
regulatory standpoint, the Infrastructure Investment and Jobs Act (IIJ Act), which was signed into law in November 2021,
provides billions of dollars in new funding for roads, bridges and other major infrastructure projects which require
aggregates and cement for construction. New public transit and clean energy projects that address climate change may
also result in increased demand for the Company’s products. Other opportunities are likely to result from the passing of
the $1.2 trillion IIJ Act, the Cornyn-Padilla Amendment that allows $104 billion of unused COVID-19 dollars to be directed
to infrastructure projects, and $41 billion of voter-approved state and local transportation-related 2024 ballot initiatives,
all of which will fund infrastructure growth, repair and development. In addition, the Company’s magnesium hydroxide
products are used to increase fuel efficiency in various industries, including both coal- and gas-fired electricity generation,
which has a direct impact on reducing energy use and GHG emissions by more GHG-intensive companies. Finally, the
desire for sustainable building solutions has led to greater recognition of the benefits of concrete construction in the
effort to move to a circular economy through innovative products, longevity and recyclability, and increased demand for
green construction projects would have a direct impact on the Company’s cement and concrete business.

Political Contributions and Lobbying

At Martin Marietta, we believe our success depends on the ability to integrate important values into our long-term
corporate strategy. In addition to safety, environmental, employees, communities, and our other important considerations
that advance our sustainable value, this includes making sure that our political expenditures and advocacy are aligned
with our core business strategy, goals and values. In particular, we recognize the importance of monitoring our political
spending and our participation in trade associations, including those that may lobby on climate change-related concerns,
as well as maintaining our robust governance procedures. Martin Marietta’s policy with regard to political contributions
and lobbying is that it must be carried out in a lawful and ethical manner that promotes the interests of the Company
without regard for private political preferences of individual executives, officer or directors. We are committed to
disclosing political donation and lobbying expenditure information to promote an understanding of the issues that are

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