GREENHOUSE GAS EMISSIONS

Strategic Materials is committed to managing, reporting on, and reducing GHG emissions. In 2022, the Company’s GHG emissions totaled 18,686 MT CO2e Scope 1 emissions and 31,866 MT CO2e Scope 2 emissions. Compared to the 2021 baseline, SMI reduced emissions by 7%, largely due to a decrease in diesel fuel consumption. Furthermore, using tons of product sold as the denominator, we realized a 3.8% reduction in GHG emission intensity.

The GHG emissions sources include diesel fuel, gasoline, purchased electricity, welding gas, natural gas, and propane. In future reporting, SMI will improve data collection process, and report on Scope 3 GHG emissions associated within the supply chain. Furthermore, the Company will set GHG emissions reduction targets aligned with the Science Based Target Initiative.

All GHG emissions calculations were conducted using the Greenhouse Gas Protocol’s Corporate Accounting and Reporting Standard. All facilities under operational control were included in the inventory.

The GHG emissions material topic is managed by the sustainability committee and any planned initiatives are implemented by the facility.