S3 2021 ESG & Data Security Report

2021 Environmental, Social and Governance (ESG) & Data Security Report

S3 Recycling Solutions’ 2021 Environmental, Social and Governance and Data Security Report is presented to all S3 stakeholders, clients and friends. S3’s overall mission is to maximize security, sustainability, and stewardship through technology recycling solutions and make it easy for businesses across the nation to responsibly recycle.

This report demonstrates S3’s capability, methodology and resolve to do just that. As S3 continues to expand its operations and influence on the national stage, reports of this nature will be distributed annually to confirm the organization’s credibility and commitment to address global e-waste matters.

Table Of Contents 2

A Message from S3 Leadership

4

About S3

5

Professional Team

6

S3’s Growth, Certifications & Distinctions

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Energy Efficiency Improvements and Equipment Upgrades

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Environmental Impact Report

10

Data and Privacy

11

Environmental, Health & Safety

12

Employee Programs

14

Community Engagement

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Diversity, Equity & Inclusion

A Message From S3 Leadership As we reflect on another successful year at S3, we would like to use this platform as an opportunity to thank our clients, community partners, and team members for the contributions they’ve made to our growing firm.

S3 experienced huge milestones in 2021, including being named to Inc. Magazines’ list of fastest-growing private companies in America and surpassing $3 million in revenue. These are just a couple of the indicators that we believe demonstrate

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2021 Environmental, Social and Governance (ESG) & Data Security Report

that we’re headed in the right direction.

Our hard work and dedication to customer service is paying off and we’re motivated – now more than ever – to keep improving, continue growing and steadily increase our positive impact on the environment and our community.

Our mission of providing sustainable e-waste solutions to businesses across the country could not be successful without each participant who plays a role in this journey.

We are the electronics and medical recycling partner to hundreds of businesses who trust S3 to deliver on our pledge of security, sustainability, and stewardship. And all of our talented team members work tirelessly every day to fulfill that promise.

This report details the significant efforts to achieve comprehensive improvements to our organization – from personnel benefits to equipment upgrades and community service. We are motivated to attract and retain the best talent so that we can, in turn, provide the best possible electronics recycling services to our customers. As data security continues to become an increasingly critical business component throughout all industries, we are confident that S3 is positioned to provide first-class data destruction, information technology asset disposition, mobility management and medical equipment disposal services to the business community at large.

It gives us great pleasure to present the 2021 S3 ESG report and celebrate the accomplishments of our growing team. S3’s commitment to the core values of dependability, sustainability, simplicity, community, and integrity continues to drive our business forward. - Rod McDaniel and Darrell S. Freeman, Sr.

© George Walker IV – USA TODAY NETWORK

Darrell S. Freeman, Sr. Board Chairman

Rod McDaniel Chief Executive Officer

About S3 S3 Recycling Solutions is the right choice for businesses looking for an easy and hassle-free way to responsibly and safely manage excess electronics. Headquartered in Springfield, Tenn., S3 is an award-winning, R2-certified technology recycling firm that provides tailored e-waste solutions to businesses across the nation and in Canada. Since 2007, S3 has helped its customers reduce the cost of ownership of their electronic technology assets, while providing a peace of mind that data security is maintained at the highest industry standards.

The ease of doing business with S3 makes it an attractive recycling partner for companies – large and small – who are looking for customized, personal and dedicated service; robust reporting and chain-of-custody tracking for sensitive materials; and a seamless scheduling and pickup process.

S3 customers can be assured that all of their electronics and technology devices are processed at R2 and e-Steward certified facilities, ensuring total compliance with local, state and federal environmental regulations.

S3’s staff is trained to evaluate, test and determine the best disposition solutions for retired electronic and technology assets.

It handles the entire process of sorting, selling, recycling or donating items based on clients’ needs. With an emphasis on costeffective processes and sustainable solutions for businesses, S3 is consistently raising its profile as a leader in the national tech industry.

S3 services include: • Information Technology Asset Disposition • Data Destruction • Mobility Management • Medical Equipment Disposal

2021 Highlights • S3 Named an Inc. 5000 Fastest-Growing Private Company • 23 percent increase in annual revenue; 28 percent increase in workforce • More than 1,000 laptops donated to charities internationally

Board of Advisors As of May 1, 2022

James Crumlin, Jr.

Partner Spencer Fane LLP

Myra Herring

VP of Operations Information Technology Senior Management Forum

Brian Moyer Past President & CEO Greater Nashville Technology Council

Professional Team

Anthony Smith Director of Remarketing

Brad Lineman Director of Technology

Greg Welch Chief Financial Officer

Jarquis Hendricks Director of Operations

George Rogers Sr. Director of Business Development

Caleb Velazquez Sales Manager

Rayna Bosemer Sr. Account Executive

Corey Palmer Manager of Logistics

Steven Lee Second Shift Manager

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S3’s steady growth and increased national recognition is a testament to its position as a leader in the information technology asset disposition industry. S3 created seven new jobs in 2021, and since 2018, revenues have grown by 363 percent, and pickups have increased by 423 percent.

S3’s Growth Pickups Electronics and Technology Devices Processed (lbs)

916 3.1M

603

2.4M

326 1.6M 175 900K 2018

2019

2020

2021

Certifications & Distinctions

S3 Recycling Solutions works with businesses around the country and in Canada to help reduce their total cost of electronics and information technology assets. S3 provides IT recycling and remarketing services across all industries including: • Universities and K-12 school systems • Medical centers • Government agencies • Financial institutions • Non-profit organizations • Fortune 500 corporations, and others 6

2021 Environmental, Social and Governance (ESG) & Data Security Report

Energy Efficiency Improvements and Equipment Upgrades In the quickly evolving landscape of technology, it’s important to continually upgrade and enhance S3’s equipment to ensure the most efficient operations possible. In 2021, S3 invested in a new hard drive shredder, new forklifts, and a sanitization station for wiping data from hard drives much faster. S3 also added three 53-foot semi-trailers to its fleet that increases the maximum load size for pickups around the country.

Energy Efficiency Improvement Idling for S3 trucks was reduced from 12.4 percent to 5.14 percent.

This contributed to an overall 7.26 percent reduction of carbon footprint from idling.

Equipment Upgrades • Hard Drive Shredder — S3 purchased a new hard drive shredder that is securely mounted on a box truck and provides enhanced on-site shredding services for its clients. With the capability of shredding over 2,000 1”-hard drives in an hour, this is a top-of-the-line piece of equipment that allows for quick and effective on-site data destruction.

• Sanitization Station — For drives that are processed at the warehouse, S3 now employs a first-class sanitization station. The drive wiping station runs on two standalone systems that are completely disconnected from the internet. The total wipe capacity is approximately 200 to 250 drives, depending on enclosure configuration. S3 wipes with the NIST 800-88 R2 standard using a program from Extreme Protocol Solutions called Enterprise Data Erasure. All wipes are logged in the system using the serial number of the drive and can be searched to verify success or failure, time and date completed. Any drive that fails the wiping procedure is placed in a shred bin to be shredded.

Environmental Impact Report In 2021, S3 Recycling Solutions processed 3.1M pounds of electronics and technology devices.

S3’s recycling and reuse activity prevented 22,581 metric tons of carbon dioxide (CO2).

This is equivalent to greenhouse gas emissions from:

4,865 gasoline-powered passenger vehicles driven for one year https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#vehicles

56,049,510 miles driven by an average gasoline-powered passenger vehicle https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#miles

2,844 homes’ energy use for one year https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#houseenergy

4,394 homes’ electricity use for one year https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#houseelec

125 railcars’ worth of coal burned https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#railcars

This is equivalent to CO2 emissions from:

2,540,849 gallons of gasoline consumed

52,279 barrels of oil consumed https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#oil

https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#gasoline

This is equivalent to greenhouse gas emissions avoided by:

2,218,126 gallons of diesel consumed https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#diesel

24,983,304 pounds of coal burned https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#lbscoal

299 tanker trucks’ worth of gasoline https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#tankers

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2021 Environmental, Social and Governance (ESG) & Data Security Report

922,070 propane cylinders used for home barbeques https://epa.gov/energy/greenhouse-gasesequivalenciescalculator-calculations-and-references#propane

0.006 coal-fired power plants in one year https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#coalplant

0.057 natural gas-fired power plants in one year https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#gasplant

2,746,755,090 number of smartphones charged https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#smartphones

7,813 tons of waste recycled instead of landfilled https://epa.gov/energy/greenhouse-gasesequivalenciescalculator-calculations-and-references#recycle

This is equivalent to carbon sequestered by:

1,116 garbage trucks of waste recycled instead of landfilled https://epa.gov/energy/greenhousegasesequivalencies-calculator-calculations-and-references#gtrucks

977,413 trash bags of waste recycled instead of landfilled https://epa.gov/energy/greenhousegasesequivalencies-calculator-calculations-and-references#trash

6.1 wind turbines running for a year https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculationsand-references#wind

855,825 incandescent lamps switched to LEDs https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#lights

373,371 tree seedlings grown for 10 years https://epa.gov/energy/greenhouse-gases-equivalencies-calculatorcalculations-and-references#seedlings

26,723 acres of U.S. forests in one year https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#pineforests

152 acres of U.S. forests preserved from conversion to cropland in one year https://epa.gov/energy/greenhouse-gases-equivalenciescalculatorcalculations-and-references#deforestation

With an increasing uptick in hacks and data security breaches, information technology equipment management and data-bearing device security are becoming critical business components. Many companies are putting more emphasis on physical destruction of hard drives and data wiping. - Rod McDaniel, S3 CEO

Data and Privacy From onsite data destruction to IT asset removal, S3 protects clients’ data and interests. S3 performs data sanitization and destruction on all data-bearing devices including but not limited to hard drives, removable flash memory, removable storage devices, and solid-state drives. All S3 processing and recycling activities satisfy the regulatory standards set forth by HIPAA, GLB, PCI and the California Security Breach Information Act in accordance with U.S. DoD 5220.22-M and NIST SP 800-88 R1 guidelines. And all material designated for recycling is done in a zero-landfill manner.

As a member of the National Association for Information Destruction (NAID), S3

sanitizes or completely destroys all media in accordance with NIST guidelines and provides each client with a certificate of destruction. Full transparency is an important part of S3’s service, so it produces detailed audit reports for clients for each device including: Asset ID, serial number, the security process that was performed, the name of the technician who performed it, and a real-time status report of where the device stands at any given time.

Training — S3 Recycling Solutions ensures that employees involved in the data wiping process receive appropriate training on a regular basis (at minimum, annually or as software or equipment change) and are evaluated for competency. Employees involved in the physical destruction process are evaluated for competency at minimum, annually, unless the method of destruction changes.

Security Controls — including physical security, monitoring, chain-of-custody, and personnel qualifications – are in place for all unwiped or undestroyed data storage devices.

Secure Facilities — When a data destruction project requires offsite processes, clients can be sure that S3’s multilevel security continues to protect their sensitive data. S3 provides a secure chain of custody during the relocation of clients’ data-containing devices, and its offsite facilities are monitored 24/7. On top of constant CCTV monitoring, facilities have armed guards on both shifts, RFID badge access to data-sensitive areas, third party monitoring, and security gates on dock doors.

Environmental, Health & Safety S3 Recycling Solutions is committed to following the R2: 2013, ISO 45001:2018 and ISO 14001: 2015 requirements and to maintain conformance to the requirements of this EH&S management system and scope.

S3 is equally committed to meet or exceed its customer requirements, to continually improve its processes and to maintain compliance with relevant environmental, Occupational Health and Safety and data security legislation and regulations. The goal of S3 Recycling Solutions’ operation is to have a positive impact on the environment through responsible recycling requirements that includes the conservation of metals, plastic and other non-renewable resources.

Consistent with these core operations, it is S3 Recycling Solutions’ overall goal to accomplish its business objectives while meeting and exceeding the environmental and health & safety expectations of management, employees, customers, suppliers and regulators.

S3 will continually improve its systems while striving to minimize adverse impacts on the environment by managing and tracking through the recycling chain used and endof-life electronic equipment, components and materials, including focus materials as identified in the R2: 2013 Standard –with respect to both on-site activities and the selection of downstream vendors- using a “reuse, recover, dispose” hierarchy of responsible management strategies.

To achieve the above stated objectives, S3 Recycling Solutions is committed to: • Ensuring that these policies are appropriate to S3’s operations, and its potential environmental impacts and health and safety risks of S3 Recycling Solutions’ activities, products and services; • Fulfilling and complying with all relevant EH&S legal requirements, compliance obligations, customer and product requirements, industry guidelines and any other EH&S commitments made by S3 Recycling Solutions; • Striving for continual improvement to enhance EH&S performance; • Providing safe and healthy working conditions for the prevention of workrelated injury and ill health; • Eliminating hazards and reducing risks • Providing the framework for setting & reviewing EH&S goals, which are established and are compatible with the strategic direction and the context of S3 Recycling Solutions; • Protecting the environment and preventing pollution; • Consultation and participation of workers, and workers’ representatives • Ensuring that this system and policies are communicated and understood by all persons working for or on behalf of S3 Recycling Solutions; • Making the EH&SMS policy available to the public and interested parties and; • Ensuring that this EH&S policy is reviewed and amended, as necessary and appropriate.

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We understand the importance of having a healthy and happy workforce, and we strive to create a culture at S3 where everyone feels valued and appreciated.

- Darrell S. Freeman, Sr., S3 Chairman

Employee Programs S3’s recent growth and leadership in the electronics recycling industry has made it an attractive workplace for top talent in Middle Tennessee. For example, in 2021, Inc. Magazine named S3 to its annual Inc. 5000 list, a prestigious ranking of the nation’s fastest-growing private companies.

Because of this business success, S3 is able to offer competitive wages and benefits, professional development for employees, and opportunities for long-term career paths.

A strong workforce is the best foundation for a sustainable and viable organization, so S3 leadership strives to stay in tune with the

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2021 Environmental, Social and Governance (ESG) & Data Security Report

desires of its team members. It monitors the morale within the organization – at the individual level as well as the collective company morale – with an overall goal of creating forums where all team members are comfortable and confident to share their thoughts, ideas and suggestions. This approach has resulted in more collaboration and unity in the S3 team.

S3 has placed heavy emphasis on making the company attractive to new team members.

It has created 19 jobs since 2018 and added a second shift in Q1 2022.

While providing excellent customer service is a top priority, S3 leadership believes it is equally important to create a great workplace for its team members. From drivers who regularly visit client sites for pickups, to account managers who are on-call to assist clients, S3 is committed to creating an environment of professionalism, fun and wellness for the entire team.

Benefits Provided To The S3 Workforce: • Competitive wages for all employees • A company-wide minimum wage that is double Tennessee’s official rate • 100 percent coverage of medical, dental, vision, and life insurance for employees • Holiday pay and paid time off for salaried and hourly employees • Short-term and long-term disability

S3 Recycling Solutions was named a 2022 Best Places to Work honoree by Nashville Business Journal. S3 is therefore considered a company with a positive work environment,

• Assistance with costs for therapy and counseling

leaders who inspire their teams

• Work programs for students with Autism

and the ability to have fun while

• Weekly team lunches • Opportunities for overtime hours on the weekend

finding success across all parts of the business. S3 employees were asked to complete an online survey conducted by Quantum Workplace who measured 10 key engagement categories, including team effectiveness, trust in senior leaders and manager effectiveness.

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Community Engagement Throughout 2021, S3 has supported numerous organizations and individuals with financial resources, volunteer hours, and donated technology and supplies. Everything from strengthening the literacy of at-risk children by donating iPads to grooming the next generation of leaders in Middle Tennessee through mentoring, S3 takes a proactive approach to doing good in the community.

2021 Community Engagement Events And Activities:

A spirit of servant leadership and community service permeates throughout S3. It’s a company value that is important to the CEO, Rod McDaniel, and is actively displayed with events and opportunities for all team members to participate. “I grew up in public housing in Nashville, so I understand the importance of business leaders giving back to the community,” McDaniel said. “I was once a recipient of such generosity, and I am incredibly honored to be in a position to pay it forward.”

• Donated more than 1,000 laptops to charities internationally

• Donated 120 turkeys to residents of Middle Tennessee for Thanksgiving • Adopted 20 families to provide toys and gifts for Christmas • Sponsored Boy Scouts of America, McGavock High School Girls Basketball, and 3D Vision Basketball Team

• Provided relief to victims of Hurricane Ida in Louisiana.

2021 donations were made to: • Hopes Ministry • Pivot Technology • Culturally Tech • The East Nashville Hope Exchange

In 2021, S3 contributed over $70K in Community Service and Charitable Donations.

On September 13, 2021, S3 donated supplies to help residents of New Orleans after Hurricane Ida. Chairman Darrell S. Freeman, Sr. personally delivered the supplies in collaboration with United Way of Southeast Louisiana.

Diversity, Equity & Inclusion One of S3 Recycling Solutions’ greatest attributes is that it is a culturally diverse team.

S3 fosters an inclusive environment and is committed to an equal opportunity workplace.

S3 is certified nationally and by the State of Tennessee as a minority-owned business.

S3 follows hiring guidance from the Equal Employment Opportunity Commission, and follows all legal requirements

for employment screening. But most importantly, S3’s leadership recognizes that in order to have the most talented team, it must make the organization a welcoming place for everyone regardless of gender, ethnic background, religious affiliation, disabilities, or any other areas of diversity.

S3 is proud to have diversity displayed throughout all levels of the organization from the labor force to executive leadership.

At S3 Recycling Solutions, we choose to hire the best talent we can find. Therefore, diversity is a natural by-product of our hiring practices.

- Darrell S. Freeman, Sr., S3 Chairman

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2021 Environmental, Social and Governance (ESG) & Data Security Report

901 Central Ave W Springfield, TN 37172 888-970-7377 www.s3rs.com