2021 SMI Sustainability Report
About SMI
Report Contents 04 YEAR AT A GLANCE
With a 125-year history, Strategic Materials, Inc. (SMI) is North America’s largest and most comprehensive glass recycler, with nearly 50 locations in the United States, Canada, and Mexico. Operating as the go-to solutions provider, the company creatively unites the interests of people, partners and planet with economic and environmental products and services.
“Strategic Materials improves industrial performance by creating a circular economy”
06 MESSAGE FROM CEO & CCO 07 OVERVIEW 22 SUSTAINABLE GOVERNANCE 30 PEOPLE 38 PARTNERS 48 PLANET 56 APPENDIX
planet partners people
2021 YEAR AT A GLANCE
95%
internal safety audits completed
100% performance review goal met
26 hrs environmental, health, and safety training per operations employee
Employee satisfaction survey implemented
Glass Warriors program expanded
0
99.97% quality acceptance rate
incidents of corruption
$73,003 charitable contributions
332 tons hazardous waste recycled
100%
water saved through rainwater collection at Mexico facility
800,000 kWh
energy saved through LED lighting at South Windsor facility
2,244,060 tons material diverted from landfill in 2021
A Message from the President & CEO In 2021, we proudly celebrated our 125th year in business. We started from humble beginnings in one small location in Cleveland, Ohio, processing specialized glass. Today, we operate in 46 locations across three countries—it’s amazing how far we’ve come. But we recognize there is work yet to be done; The U.S. recycling recovery rate for glass is about one third nationally. Although our heritage and reach are noteworthy, our focus is keenly on the future for our people, partners, and planet. • People: By optimizing our operations with better sorting technology and equipment investments at key facilities, we increase efficiencies, improve work environments, and support communities where we operate. • Partners: We drive increased recovery for the entire value chain by creatively solving complex challenges in glass collection and processing. Further, we are at the forefront of developing comprehensive glass packaging design guidelines for recyclability. This transformative initiative will increase yield and reduce waste. We are also exploring opportunities with new partners to accept new streams of glass for recycling. • Planet: As demand for furnace-ready recycled glass (cullet) in end markets reaches an all-time high — primarily due to aggressive goals for responsible manufacturing and packaging recyclability—efforts to divert glass from landfill and return to the circular economy is vital for the industry. We are ready to help.
“
We are developing insightful reports for our suppliers sharing CO2 emissions reduction and environmental impacts. We are also aggressively working to reduce our own energy consumption, water usage, and have begun tracking our greenhouse gas inventory.
A Message from the Chief Compliance Officer Sherry D. Williams joined the company in January 2021 and previously served as vice president, deputy general counsel and global chief compliance and ethics officer for Jabil (NYSE: JBL), an American worldwide manufacturing services company, and as senior vice president and chief ethics and compliance officer for Halliburton Company, one of the world’s largest oilfield service companies. Outside of SMI, she serves on the Board of Directors for several non-profit organizations, including Brown Girls Do Ballet, which promotes diversity in the arts by providing annual scholarships, a mentor network and community programs to empower young girls.
In reflecting on my first year with SMI, I’m proud of the improvements and accomplishments the team has made to further protect our employees, our business, and our partners. We act with integrity in all our dealings. We’ve not only identified key areas within the organization that needed more attention and acted, but have also, developed robust policies and plans to ensure our corporate compliance is top tier going forward. No one is exempt from the values, policies and rules that govern our business. Therefore, whether an employee of SMI or a third-party partner, if you see something, say something. Any inappropriate behavior or actions should be reported through our anonymous hotline, 1-877-217-4681. The company has made considerable strides in the way we do business - for the better.
“
Although our heritage and reach are noteworthy, our focus is keenly on the future for our people, partners, and planet. SMI was built on environmental stewardship. Today, as an environmental leader, our mission is unwavering and simple. It is one that is shared by many, but not possible without all, which is to leave our planet better than we found it for generations to come.
Because of our glass warriors, each year we: • •
Save nearly 2,162,136 tons of glass, plastic, aluminum and cardboard from the landfill Reduce more than 339,421 tons of CO2 emissions, a greenhouse gas directly linked to climate change. That’s roughly 347 tons of CO2 reduced per SMI employee
No one is exempt from the values, policies and rules that govern our business.
Our compliance focus has resulted in: • • •
Legal spend savings of 75% from the previous year 50% increase in employee hotline calls from the previous year 0 incidents of corruption
We have made incredible progress in a short period of time. I am excited about our trajectory and what’s to come to shape this business into the very best it can be.
Our success as a company is attributed to the talent and passion of our people. And after 125 years in business, we are just getting started.
CHRIS DODS PRESIDENT & CEO 2021 SMI SUSTAINABILITY REPORT | OVERVIEW | LETTER FROM CEO | PAGE 6
SHERRY WILLIAMS CHIEF COMPLIANCE OFFICER 2021 SMI SUSTAINABILITY REPORT | OVERVIEW | LETTER FROM CCO | PAGE 7
C E L E B R AT I N G
years
About This Report
In 1896, Strategic Materials, Inc. (SMI) began life as an environmental pioneer under the company name Bassichis, partnering with General Electric (GE) in Cleveland, Ohio, to recycle its lightbulb glass. Since then, the company’s passion for glass has only grown.
Strategic Materials, Inc. (“Strategic Materials”, “SMI”, “We” or the “Company”) published its first Sustainability Report in 2020 and is proud to publish this 2021 report highlighting the company’s commitments, progress, and initiatives within each of our focus areas: People, Partners, Planet. SMI has identified these focus areas to reinforce the commitment to sustainability practices and our purpose, mission and values.
After many years in operation, the Bassichis Company was purchased by Allwaste. During the time as Allwaste, the business implemented innovative glass recycling techniques and completed several acquisitions. As the company’s reach expanded, it emerged as the first nationwide glass recycler in the United States.
This report describes the company’s impacts based on our most material topics as identified via a materiality analysis conducted in 2020. The materiality analysis consisted of conducting industry research and stakeholder engagement efforts through senior leadership interviews and materiality surveys distributed to employees, suppliers, customers, and recycling organizations. The findings were used to identify the areas that SMI impacts the most.
In 1994, the company transformed under the name Strategic Materials, Inc. (SMI). With sights set on international expansion, SMI purchased Nexcycle, a glass and plastic recycling business in Ontario, Canada. The company also acquired the Container Recycling Alliance and American Specialty Glass in the United States. As a result, the company’s footprint and portfolio of products, services and capabilities widened.
This report is intended to be interactive. We encourage you to click the links to watch videos, view images, and listen to podcasts or audio clips to learn about the circular economy of glass, its challenges and successes, and how glass recycling plays a critical part in closing the materials loop.
After more than a century, SMI operates in 46 locations across three countries and has evolved to recycle a variety of glass, plastics and other materials totaling the beneficiation of nearly three million tons each year. To commemorate its history and mark a new era, the company debuted a new logo, purpose, mission and core values. Today, SMI is focused on passionate advocacy, operational excellence, and collaborative partnership with a renewed commitment to people, partners and the planet.
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | 125 YEARS | PAGE 8
This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. For questions about this report, contact: info@smi.com
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | ABOUT THIS REPORT | PAGE 9
Our Values
Our Purpose
Our Mission
We recycle glass to unite the interests of our people, our partners, and our planet
Through passionate advocacy, operational excellence, and collaborative partnership, we recycle glass for the world
Our core values keep our employees and leadership aligned with the same goals. Below we pinpoint the ways in which our efforts support our long-term purpose and our day-to-day mission.
1
See Through the Customer’s Eyes
2
Integrity Guides Every Decision
3
Create Positive Energy
4 5
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | MISSION & VISION | PAGE 10
Our core values keep us aligned.
Internal: Support each other to serve the customer External: Listen actively, act in the customer’s interest
Internal: Earn teammates’ trust External: Integrity and accountability lead to strong relationships
Internal: Find joy in our journey External: Be the partner with whom customers want to work
Embrace and Drive Change Internal: Commit to finding better ways External: Accept the challenge to think differently
Be Passionate About the Progress We Make Internal: Focus on our goals for each other, our customers and the planet External: Care deeply about outcomes
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | VALUES | PAGE 11
A Leader in the Circular Economy SMI is instrumental in helping companies and communities achieve their waste management and circularity goals. Glass is the perfect partner to a circular economy: it can be recycled endlessly without any loss in quality, closing the material loop.
Glass containers made with recycled glass are filled & stocked in stores ready to restart the cycle
Furnace-ready recycled glass (cullet) melts at lower temperature than virgin materials. Therefore, the use of cullet in the production of new glass containers and fiberglass insulation reduces energy usage and lowers greenhouse gas emissions. In turn, it also allows for reduced furnace maintenance and can extend furnace life for manufacturers. Savings are also realized through displacing the need for mined virgin materials such as sand.
The process begins and ends with the consumer buying products in glass and then recycling the empty glass container
SMI customers buy recycled glass to make new glass products more sustainably 2021 SMI SUSTAINABILITY REPORT | OVERVIEW | CIRCULAR ECONOMY | PAGE 12
Glass is picked up and sent to the Material Recycling Facility (MRF)
Glass is transported to Strategic Materials to be processed PAGE 13
Partners in Glass Project Club Cool After being closed for nearly three years, Club Cool reopened in September 2021 at EPCOT, Walt Disney World® in Orlando, Florida. The all-new Club Cool, hosted by Coca-Cola®, was revitalized with sustainability in mind – most notably, the new terrazzo flooring. The floor was designed to include recycled glass, but not just any recycled glass – ColaCola bottles of course! SMI was delighted to donate the signature-colored ‘Georgia Green’ crushed glass aggregate to the project. The floor gives off a green glittery sheen due to the Coca-Cola green glass chips and specks of red from the ‘Coke Red’ bottle label, which we intentionally left visible in our crushing process.
Partners in Glass
“
“These beautiful floor finishes not only create a branded aesthetic for Club Cool but further emphasize both Disney and Coca-Cola’s commitment to sustainability and protecting our environment – perfectly fitting in EPCOT.” Imagineer Zach Riddley, Creative Portfolio Executive at Walt Disney
Volkswagen® Windshield Glass
Tesla Motors®
One of the largest Volkswagen assembly plants in the U.S., located in Chattanooga, Tennessee, produces about 150,000 cars and SUVs annually. The facility was searching for a solution to recycle its scrap auto glass, such as windshields, and found SMI as a partner. SMI recycles the company’s glass that would otherwise go to landfill only about 100 miles away near Atlanta, Georgia. Once crushed and sorted, the recycled glass provides environmental benefits downstream in the production of reflective highway bead and fiberglass insulation. SMI recycles flat glass at many locations in North America, many times fostering a closed loop process for flat glass manufacturers.
In California, SMI is proud to be the exclusive partner to recycle auto glass for nearby Tesla Motors. To date, the company has recycled approximately 500 tons of its glass. Auto glass is considered post-industrial plate or flat glass and is beneficiated for a variety of applications including back into auto glass, reflective highway bead and fiberglass insulation.
All the recycled glass is held together by a natural binder that is made up of biodegradable materials.
WATCH VIDEO
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | PARTNERS IN GLASS | PAGE 14
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | PARTNERS IN GLASS | PAGE 15
Tennessee CLEAN Act In 2021, SMI signed the petition for the Tennessee Cleaner Landscapes for the Economy, Agriculture, and Nature (CLEAN) Act, showing our support to call on Tennessee’s leadership to do their part in the fight against litter in the State of Tennessee. The Tennessee CLEAN Act is collaborative and SMI is excited to join the leadership committee to help tackle not only litter, but also, help reduce micro-plastics in the Tennessee waterways. As proposed in the bill, the commission’s intent is to:
WATCH VIDEO
•
Incentivize the prevention of litter in the state;
•
Reduce and remove litter on roads, landscapes, and waterways;
•
Reduce costs to businesses, farmers, and governmental entities that results from litter;
•
And provide economic development opportunities that will create jobs, increase the availability of recyclable material for reuse in manufacturing, and enhance the quality of life for all residents and visitors to this state.
Some companies who have also signed the petition include: Patagonia, Ball Corp., Owens Corning, B.A.S.S., LLC, Indorama Ventures Sustainable Solutions, Wiseacre Brewing Company, Can Manufacturers Institute.
Industry Partner Highlights Circular Indiana SMI proudly supports the efforts of Circular Indiana, formerly the Indiana Recycling Coalition, which is an Indiana based nonprofit organization that convenes to “educate, advocate, and innovate towards a better future for Indiana.” The organization brings together those with backgrounds in legislation, the public, and the private sector all with one focus – strengthening their circular economy. SMI partnered with Circular Indiana to co-host the Full Circle event, a circular economyfocused policy discussion that brought together federal and state leaders, manufacturing employers, recycling and supply chain partners, economic development leaders, trade associates, and nonprofit organizations across the state.
The goal of the discussion was to increase the focus and demonstrate the importance of a circular economy in Indiana and explore “policy solutions to manage risks, solve problems, and capture opportunities to leverage Indiana’s robust manufacturing industry and transportation and logistics network.” The event was deemed a success due to the conversations that took place surrounding the needs of manufacturers, the opportunities of the public, and ways investment, policy, and innovation could make dramatic improvements within the state.
The invitation-only event was attended by 63 individuals including elected officials in attendance included Rep. Mike Speedy, who chairs the House EnvironmentalAffairs Committee, Rep. Beau Baird, Rep. Ed Clere, Rep. Sue Errington, Rep. Carey Hamilton, Rep. Donna Schaibley, Sen. Mike Gaskill, and Sen. Jean Breaux. Representatives for 3 Indiana Congressional leaders were also present, including Sen. Todd Young, Sen. Mike Braun, and Rep. Trey Hollingsworth.
Learn more at tennesseecleanact.org
SMI GLASS WARRIORS JOE PAWLAK & ROBERT CHRISTIAN
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | PARTNER HIGHLIGHTS | PAGE 16
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | PARTNER HIGHLIGHTS | PAGE 17
Industry Partner Highlights Our Product
HRRA Glass Recycling Drop-off Program SMI’s South Windsor, Connecticut, facility found partnership with the Housatonic Resources Recovery Authority (HRRA) to make a nondeposit glass recycling program possible in the state of Connecticut, supporting 14 Western municipalities. Thanks to the leadership and determination from HRRA, non-redeemable food & beverage glass found a new option for recycling. The program, which is approved by the Connecticut Department of Energy and Environmental Protection (DEEP), allows local residents to bring glass to the local municipal drop-off sites.
Cullet (cul·let) /ʹkələt/) noun “Increasing recycling is one of the key methods identified by the Connecticut Coalition for Sustainable Materials Management to help solve Connecticut’s waste crisis as we see aging waste-to-energy infrastructure come offline,” underscores DEEP Commissioner, Katie Dykes. Residents collected an estimated 600 tons of glass during the pilot program, and it is expected that this number will grow after the full launch of the program.
Recycled glass that is cleaned, crushed and ready to be processed into new products. Benefits of cullet in the production of new glass containers and fiberglass insulation:
• •
•
By recycling glass from the program, a consumer in Connecticut can buy a glass packaged product off the grocery shelf, use it, recycle it and it could be back on the shelf in less than 30 days – creating a circular economy. SMI plays an integral part in this process.
•
Reduces the demand for energy — Energy costs drop about 2-3% for every 10% cullet used in the manufacturing process. Cuts CO2 emissions — For every six tons of recycled container glass used, a ton of carbon dioxide, a greenhouse gas, is reduced. A relative 10% increase in cullet reduces particulates by 8%, nitrogen oxide by 4%, and sulfur oxides by 10%. Extends furnace life — Including cullet in the manufacturing mix makes it less corrosive and lowers the melting temperature (from 2800 degrees F. to 2600 degrees F.), prolonging furnace life. Displaces the need for virgin, mined materials such as sand. Source: https://www.gpi.org/why-recycle-glass
SMI GLASS WARRIOR ANDREW CROWLEY
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | PARTNER HIGHLIGHTS | PAGE 18
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | OUR PRODUCT | PAGE 19
100% recyclable, forever, and never degrades. 1 bottle in means 1 bottle out.
Our Process
WHY RECYCLE GLASS?
Supply
6 tons of recycled container glass
=
=1
SMI receives feedstock of glass from a variety of streams. Single-stream, curbside glass is typically referred to as 3-mix because all colors of glass are mixed together. It also includes some non-glass residuals (NGR) aka contamination such as plastic, paper, and metal or non-recyclables.
ton CO2
Pre-Process This part of the process removes ferrous and non-ferrous materials, uses air classification to remove light-weight material, mainly paper with some small plastics, which end up in the “reject pile”.
1 ton of carbon dioxide reduced
Second Cleaning
Glass is inert and will not leach
1250’
Optical Sort Line Removes ceramic, stone, and porcelain (CSP) and large pieces of plastic.
Color Sorting & Sizing Line Sorts and sizes the glass by flint (clear), amber (brown) and emerald (green) for different applications.
The United States throws away enough glass every week to fill a 1350-foot building. That’s about 1.1 Empire State Buildings.
Glass is ocean friendly, and wildlife will not ingest it
The glass, heavier plastics, and other materials that were not removed from the pre-cleaning line run through a series of conveyors and screens to be properly sorted out.
Finished Product Bunker or Silos
=
4 Hrs.
Recycling one glass bottle saves enough energy to light a 100-watt light bulb for 4 hours.
The glass now meets customer specifications and is ready to be loaded into a truck and delivered to the customer.
WATCH VIDEO
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | OUR PROCESS | PAGE 21
Sustainability Committee
In 2021, we made significant strides in our sustainability efforts, made possible by our inaugural sustainability committee. Overseen by our President and CEO, Chris Dods, the sustainability committee is responsible for maintaining and implementing our sustainability plan focused on delivering meaningful positive changes to business initiatives connected to our material topics. Our cross-functional sustainability committee was created with the purpose of implementing sustainability initiatives as well as tracking progress towards our goals, targets, and aspirations. The committee is comprised of senior management across the organization, representing the following business functions: Sustainability, Human Resources, Finance, Environmental, Health and Safety (EHS), Communications, Quality, Procurement.
Objectives • •
Plan, execute, and manage our sustainability initiatives Enhance organizational understanding of sustainability and ensure stakeholder buy-in through all levels of the company
Planned Initiatives for 2022 • • • • •
Develop a supplier code of conduct Enhance our employee EHS training programs Implement employee satisfaction survey Update our employee code of conduct Expand our Glass Warriors Program
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | SUSTAINABILITY COMMITTEE | PAGE 22
The material topics enhance our ability to sharpen the initiatives that drive our sustainability goals and create ownership of those goals with the appropriate members of the organization.
People
To identify the company’s most material impacts, SMI commissioned surveys, conducted interviews, and researched industry best practices. In all, we conducted 18 interviews and 143 materiality surveys engaging senior leadership, employees, suppliers, customers, and recycling organizations. The results of this assessment were analyzed to better understand the concentration areas that SMI impacts or has the potential to impact most significantly.
Partners
Materiality Assessment
• Employee Health & Safety • Ethics & Integrity • Employee Engagement
• Customer Service • Product Offering & Scale • Quality
Planet
Material Topics
• Recycling & Material Recovery • Waste Generated and Diverted • GHG Emissions
We will continue to use our material topics to refine and continuously improve our sustainability aspirations and quantitative targets.
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | MATERIAL TOPICS | PAGE 25
Glass Recycling: Myth Busting Myth:
Fact: ✓
X Broken glass cannot be recycled.
We accept broken glass.
✓
X Mixed color glass cannot be recycled.
We accept mixed color glass.
✓
X Glass must be washed & clean.
✓
X Glass contaminates other recyclables.
✓
X Glass cannot be recycled due to China’s SWORD policy.
X
X
X
X
Glass has no value & belongs in the landfill or the glass value has decreased.
There are no end markets for glass.
Recycling glass creates a safety concern for MRFs.
MRFs can’t make money recycling glass.
✓
✓
✓
✓
Education from SMI Learn about glass recycling through our social media channels.
Podcasts Listen to insightful podcast interviews with Laura Hennemann, SVP Sustainability & Corporate Affairs
Although appreciated, not required.
Proper MRF layout, sequencing and processing maximizes value for all materials in the stream.
Glass is produced and recycled domestically and never sent to China. Glass is one of the most stable commodities in the stream. Contaminated piles hurt value.
Demand exceeds supply in end markets such as container glass, fiberglass insulation & more. Glass does not create a disproportionate safety concern for MRFs.
Glass is highly profitable for many MRFs if economics are analyzed correctly.
2021 SMI SUSTAINABILITY REPORT | OVERVIEW | EDUCATION | PAGE 27
U.N. Global Compact While SMI has been committed to human rights, labor, the environment and anti-corruption throughout its history, SMI signed on to the U.N. Global Compact to demonstrate its formal commitment to corporate responsibility at the onset of 2021. The company is committed to making the U.N. Global Compact and its principles part of its strategy, culture, and dayto-day operations, and to engage in collaborative projects that advance the broader development goals of the United Nations, particularly the Sustainable Development Goals (SDGs).
The company recognizes a key requirement for participation in the U.N. Global Compact is an annual submission of a Communication on Progress (CoP). SMI supports public accountability and transparency and commits to report annually on company progress. This report is intended to serve as SMI’s CoP.
U.N. Sustainable Development Goals The United Nations Sustainable Development Goals (“SDGs” or the “Global Goals”) were created by the United Nations in 2015, targeted to be achieved by 2030. These ambitious goals and their related targets and indicators focus on eradicating poverty and hunger, providing healthcare and access to education for all while mitigating climate change, and are the blueprint for achieving a sustainable future for all. SMI takes urgent action to combat climate change as a leader in the circular economy of glass and through our specific environmental impact reduction goals. With an in-depth focus on the total supply chain, SMI works with suppliers to ensure and promote sustainable consumption and production patterns.
SMI fosters technical innovation towards a circular economy and promotes resilient infrastructure of recycled glass products by its customers. Through innovation, promotion and supply chain partnerships, SMI makes cities and human settlements safer, resilient, and sustainable.
0
incidents of corruption
100% performance review goal met
100%
of workers covered by the Health and Safety Management System
PEOPLE Engage employees who embrace our purpose, mission, and values to safely recycle glass for the world.
SMI GLASS WARRIORS JENNIFER ZIMMERMAN, DUSTIN THORNLEY, JOE MERCHANT
95%
26 hrs
internal safety audits completed
environmental, health, and safety training per operations employee
Employee General Demographic
6% Gen Z
36% Millennial
GLASS WARRIOR PROGRAM
41% Gen X
16% Boomers
is being expanded to include enhanced onboarding, new improved uniforms, and a milestone recognition program
100%
of new hires expected to be enrolled into the new mentorship program in 2022
Employee Health and Safety
Employee health and safety continues to be the number one priority for the company. Overseen by SMI’s Environmental Health and Safety (EHS) Director, all employees are covered through the company’s health & safety management system, policies and actions. To further enhance existing programs, SMI developed a safety training course, completion of which will be required for all employees in 2022. SMI continues to conduct routine facility assessments and internal safety audits as a critical measure in identifying potential inefficiencies and safety hazards in the workplace. A job safety analysis audit (JSA) is conducted annually to ensure all tasks and job operations are being conducted safely.
Facility assessments are conducted at each facility at least once per year. The scope and approach are defined by the plant manager. In 2021, 95% of monthly internal safety audits were completed across all facilities. In 2022, SMI is working to achieve 100%. To continuously monitor and improve the health and safety of employees, a quantifiable target of reducing Total Recordable Incident Rate (TRIR) to 1.25 was set for 2022 and beyond. This is approximately a reduction of one incident per month.
• •
•
30 of 43 plants achieved ZERO recordable injuries in 2021 In the east operational region, 5 of 7 plants achieved an annual safety score of > 90% The scorecard percentage is based on completion of EHS compliance tasks - such as safety training, safety committee meetings, plant inspections - and recordable injuries SMI introduced a new Learning Management System for plant managers to complete online specialized EHS training courses for management
To safeguard the highest ethical standards, the company is building an ethics-specific employee training program, emphasizing the importance of business ethics and integrity in the workplace. The program is set to launch in the second quarter of 2022. Additionally, in 2021, SMI updated its employee code of conduct, with enhancements in areas of integrity and safety. The new employee code of conduct will be deployed in 2022. SMI continues to provide an anonymous whistleblower hotline available to all stakeholders for potential reporting of any incidents of wrongdoing. Any incident that may be reported is provided as a transcript to the company’s human resources team. The whistleblower hotline promotes accountability throughout the organization and is one way to ensure the company is operating with high integrity and strong business ethics. All matters regarding ethics and integrity are overseen by the Chief Legal Officer and Senior Vice President of Human Resources.
Annual Highlights •
Ethics and Integrity
• •
TRIR = 2.9 and injuries were reduced in severity Industry average = 4 bls
The EHS team is also collaborating closely with several departments under the Glass Warriors program to develop standards for company uniforms by each job function and individual facility needs. The company has identified a partner to properly protect employees, make new employees feel prepared and welcome for their new role, and quickly be able to visually identify leadership positions on the operational floor.
2021 SMI SUSTAINABILITY REPORT | PEOPLE | HEALTH & SAFETY | PAGE 32
SMI GLASS WARRIOR MARK NELSON
Employee Engagement
Employee engagement is essential to ensure every person who steps through the door at SMI feels valued and understands the work they are doing is meaningful. SMI works to build an inclusive culture, develop employee ownership in their work and strengthen a shared mission. Employee engagement and the initiatives within are monitored and implemented by our human resource and communication teams and are overseen by the sustainability committee.
The benefits of the program are endless, but some include:
SMI recently rebranded its purpose, mission, values and logo allowing the company to reset for the next chapter in its history. The communications and human resources team shared these revisions with all levels of the organization.
For the mentor • Sharpens leadership skills for future management opportunities • Enforces learned best practices at the site • Fosters new ideas for continuous improvement • Helps to reduce safety incidents
A formal employee satisfaction survey was crafted to give employees an opportunity to confidentially provide feedback. The survey focused on the following areas: compensation and benefits, health & safety, job satisfaction, career training and advancement, and manager feedback.
For the new employee • Learns best practices • Asks questions freely • Develops a rapport with a peer • Feels more included, and many times, acclimates with the team and the facility more quickly
Currently, the mentor program is implemented at 15 plants. In 2022, SMI will roll-out this program to more plants, with the goal for the program to standard practice across the whole organization. Lastly, SMI has set a goal for 95% of technical, managerial and professional employees to receive performance reviews twice a year. The performance assessment rates the individual’s performance based on goals set at the beginning of each year. These goals are tied directly to corporate strategy, safety and general sustainability practices. This information is used to evaluate pay, promotions and to identify high potential employees. In 2021, we completed 100% of the performance reviews.
In 2022, the internal Glass Warriors program will expand to include enhanced onboarding practices with welcome gifts, standard uniforms and expanded implementation of the SMI mentor program. The human resources team is also developing a milestone recognition program. Additional initiatives may be executed after the employee satisfaction survey results are captured.
The survey was finalized in 2021 and will be implemented in the first quarter of 2022. The results of this survey will be used to implement meaningful changes to improve employee satisfaction and retention. Furthermore, SMI implemented a mentor or “buddy” program, where a newly hired employee is partnered with a tenured or senior mentor.
2021 SMI SUSTAINABILITY REPORT | PEOPLE | ENGAGEMENT | PAGE 34
SMI GLASS WARRIOR EUGENE MORELAND
2021 SMI SUSTAINABILITY REPORT | PEOPLE | ENGAGEMENT | PAGE 35
Breaking the Glass Ceiling Women of SMI Amy Allgaier Human Resources Business Partner “I enjoy working closely with the team I support to solve issues that arise. I also appreciate the opportunity to help drive positive change within the organization.”
Stefany Delcampo Office Supervisor “Besides the people I work with throughout the company being amazing, I am intrigued by the process of glass recycling and love that I continue to learn more each day.”
Antonia Gutierrez, Maintenance Technician
Olga Aleman, Quality Technician
“When I moved to the maintenance department, I didn’t know very much and now I have learned many things and I know that I will learn more. Above all I thank God for the opportunity to have a job and bring the fruits of my work to my home. I think that’s why we work more to support our family, but I also love what I do. I am satisfied when College Park has 100% uptime. That is my goal and that of my colleagues to maintain 100% uptime.”
Griselda Castaneda, Production Supervisor “I have worked at SMI for 16 years and over that time I have become very knowledgeable of the processes. I really like the people that I work with, and this job allows me to do things for my family. I like that I was given this opportunity and try every day to do the best that I can do.”
2021 SMI SUSTAINABILITY REPORT | PEOPLE | WOMEN OF SMI | PAGE 36
“I really like working here with all the people. I enjoy coming to work every day and being appreciated.”
Mely Medina, Forklift Operator “I enjoy my job because it is fast paced.”
quality acceptance rate
99.97%
0
incidents of corruption
PARTNERS We are committed to being reliable partners with our cutomers, suppliers, and communities in which we work.
$73,003 charitable contributions
95%
of contracted suppliers to sign Code of Conduct Agreement
Partners Be reliable and trustworthy partners with customers, suppliers, and communities where the company operates Customer Service At SMI, customers are defined as any partner the company works with. Being a reliable and trustworthy partner means providing exceptional customer service. Included in SMI’s core values is “See Through the Customer’s Eyes”. Inside the company, this means supporting each other to best serve the customer. Externally, and when interacting with customers, it means listening and acting in our customers’ best interest. SMI has plans to conduct customer satisfaction surveys annually with all customers. Topics that will be surveyed include: • • • •
99.9%*
Quality Acceptance Rate *Percentage of recycled glass accepted by our customers in our primary markets
Product Offering and Scale SMI offers recycled glass and recycled plastic products in the following industries: glass container, fiberglass insulation, highway bead, terrazzo flooring, landscaping, countertops, surface preparation, filtration, plastic films, agricultural pipe and more.
TruAbrasives® TruAbrasives are a high quality, 100% recycled glass air blast abrasive. Abrasive media is required for the surface preparation industry in steel, concrete, wood and other substrates whether brand new preparation or removing old coatings. The term “sandblasting” has come from the use of virgin, mined sand. SMI introduced TruAbrasives to the marketplace as an alternative to sand and other materials such as slags, for not only the environmental benefits, but worker health benefits. Although glass is made from sand, it is considered a low-free silica material in comparison to sand with 99% crystalline silica – and performs extremely well on a variety of substrates.
Our ability to launch new product offerings and scale locations enables SMI’s ability to meet the evolving needs of an environmentally conscious consumer, which in turn, drives demand for SMI’s customer base. SMI stands as a partner to help meet circularity goals by providing low environmental impact materials.
Turnaround time (sales to operations) Value (price to quality measure) Number of customers that would repeat business and/or refer to others Alignment/support of customer’s goals, including sustainability
Furthermore, SMI monitors query response time as an indicator in providing high-quality service. It is a concerted effort of the organization to continue to advance and pursue high growth markets. One of the goals in these markets is to improve turnaround time and efficiency to better meet the needs of customers.
2021 SMI SUSTAINABILITY REPORT | PARTNERS | CUSTOMER SERVICE | PAGE 40
SMI Products
TruFiltration® SMI launched TruFiltration in early 2021, which is made from recycled glass. TruFiltration is ecofriendly filtration and replaces less sustainable sand media from commercial and residential filtration systems. The benefits of using TruFiltration compared to sand include: • Lasts three times as long • Requires 20% less media • Certified by the National Sanitation Foundation (NSF), a global independent public health and environmental organization • Filters down to 5 microns (6 times better than sand) • Less than 1% free silica, compared to 99% free silica in sand
American Specialty Glass® American Specialty Glass specializes in decorative glass aggregate applications including landscaping / xeriscaping, countertops, terrazzo flooring, and fire pit glass. American Specialty Glass products are made in the USA from 100% recycled glass and help to offset quarried materials such as granite or other stone.
2021 SMI SUSTAINABILITY REPORT | PARTNERS | PRODUCTS | PAGE 41
Quality
Partner Spotlight This can be attributed to key capital investments in pre-processing lines, upgraded optical sortation equipment, improved quality training software, and expanded personnel to several facilities.
Manufacturing high-quality recycled products is a vital component to the longevity and overall success for the recycling value chain. SMI’s finished product quality is monitored through a customer acceptance rate and is assured with statistical process control. Year-over-year SMI has seen a dramatic improvement; The rejected glass tons in the recycling process decreased from over 7,000 tons in 2014 to roughly 500 tons in 2021, resulting in an acceptance rate of 99.97% in 2021.
8000 7000 6000 5000 4000 3000 2000 1000 00
SMI will continue to push to 100% customer acceptance through implementing operational improvements while simultaneously partnering with suppliers to create the highest inbound quality glass possible.
Historical Quality Annual Tons Rejected
250 200 150
Single-Stream Recyclers MRF partnership: Sarasota, FL Sarasota-based Single-Stream Recyclers (SSR), now under the leadership of Balcones Resources, approached SMI asking how they can achieve a higher value for their MRF glass. SMI went to work. After touring the SSR facility and understanding the process and challenges, the technical team recommended a new design for the glass sorting system. SSR agreed to an equipment investment and process change, and SMI got to work with designing and fabricating the new line, installing it in 2021. As a result, the contamination in the glass was cut in half and provided an impressive incremental value for the glass. The new higher value for the glass pile being sent to SMI for recycling, earned a little over a one-year payback period on their investment.
100 50 2014
2015
2016
2017
2018
Tons Rejected SMI is also implementing a supplier code of conduct in 2022. SMI’s goal is to have 95% of contracted suppliers acknowledge the code of conduct by 2023. A supplier code of conduct will operate as a tool to reduce operational risk by confirming suppliers are operating in a safe, ethical, and environmentally healthy manner.
2019
2020
2021
Total Rejected
SMI’s product quality and improvement initiatives are overseen by our director of quality and continuous improvement.
PHOTOS COURTESY OF SINGLE-STREAM GLASS RECYCLERS SARASOTA, FL
2021 SMI SUSTAINABILITY REPORT | PARTNERS | QUALITY | PAGE 42
2021 SMI SUSTAINABILITY REPORT | PARTNERS | SPOTLIGHT | PAGE 43
Spotlight on: Creative Collections Rome, GA Collection Teresa Lartundo of Rome, Georgia, was unhappy when her local community decided to remove glass from the curbside collection program. After several phone calls to the county to respectfully express her disappointment with the decision, she decided to find her own solution. She reached out to SMI to divert glass that was otherwise destined for landfill. After evaluation, SMI was able to provide a recycling roll-off container to the community and help arrange ongoing collection service through a third-party for the bin. Several months later, it was clear the recycling container was a success. The community once again had an opportunity to recycle their glass and do their part in helping the environment and supporting the local circular economy. All of Rome’s residential glass is sent to SMI in College Park, where it is processed and recycled into new products such as glass container or fiberglass insulation – all made in Georgia.
“
Milton High School Students, Milton, GA In Milton, Georgia, the county’s certified waste haulers stopped picking up glass for recycling in 2017 and the local Roswell Recycling Center no longer allowed Milton residents to use their facility, leaving limited and inconvenient glass recycling options for residents. Ella Katekovich and Jeslyn Guo, two Milton High School seniors and members of the school’s “Clean and Green” environmental club, stepped up with an idea to provide the local community with a more convenient drop-off location for glass, but they needed a partner.
Shortly after the program’s launch, Milton’s Mayor and City Council recognized the seniors for their enthusiasm, commitment, and initiative to bring glass recycling back to the city. The seniors were given an official proclamation noting glass is 100% recyclable, recycling glass requires 30% less energy than making it from scratch, and the importance of glass recycling. Ella and Jeslyn were applauded for their efforts to seek out companies that would accept recycled glass, connecting the city with Strategic Materials who have placed a large container for glass recycling in Bell Memorial Park.
It was then the students connected with SMI, who helped bring their idea to reality by providing a container in a nearby location approved by the county.
“My health is not separate from the health of the planet” - Teresa Lartundo
WATCH VIDEO
2021 SMI SUSTAINABILITY REPORT | PARTNERS | SPOTLIGHT | PAGE 44
WATCH VIDEO 2021 SMI SUSTAINABILITY REPORT | PARTNERS | SPOTLIGHT | PAGE 45
Spotlight on: Creative Collections Multi-family housing collection, Atlanta, GA In Atlanta, Georgia, President & founder of Haulin’ Glass, Derek Riker, and his glass truck could be on your street. Haulin’ Glass provides specialty glass recycling for a variety of locations including multifamily housing, bars & restaurants, event spaces, and sports complexes in Atlanta. Haulin’ Glass also developed a partnership with Tower Beer, Wine & Spirits (‘Tower’) to provide a public glass recycling drop-off spot. Since space is limited on the premises of Tower, Haulin’ Glass offered 96-gallon roll carts for glass-only drop-off in front of both stores. The program grew so quickly, the bin count tripled in less than a year.
Owens Corning Fairburn incorporates about 100 million pounds of recycled glass a year into their pink fiberglass insulation. Recycled glass in the production of fiberglass insulation melts at a lower temperature than virgin materials such as sand, providing energy savings and lowered CO2 emissions.
Once Haulin’ Glass collects the glass, it is delivered to SMI in nearby College Park. At the facility, glass is processed into cullet to make new glass containers or fiberglass insulation with companies like Owens Corning, in Fairburn, GA.
WATCH VIDEO
GLASS WARRIOR DEREK RIKER HAULIN’ GLASS RECYCLING
2021 SMI SUSTAINABILITY REPORT | PARTNERS | SPOTLIGHT | PAGE 46
800,000 kWh energy saved through LED lighting at South Windsor, CT facility
PLANET While the nature of our work is inherently environmentally friendly, we are deeply committed to the continual improvement of our operations and strive to expand the role that recycled glass plays in manufacturing at large.
100%
water saved through rainwater collection at Mexico facility
332 tons hazardous waste recycled*
2,224,060 tons diverted from landfill in 2021
5%
2023 goal for reduction in energy and water consumption over 2020 baseline
110,348 total water consumed
*In 2021, we recorded 332 tons of batteries that were recycled through our third party specialized recycler. Batteries are collected from local SMI locations and sent to our recycling partner’s facility for proper disposal. SMI is committed to improving tracking and reporting on all hazardous materials in future reporting years.
Planet Waste Generated and Diverted: Diverting more than glass
Reduce environmental impact by diverting glass from landfill, and facilitating a circular economy Recycling and Material Recovery SMI is a proud recycling and material recovery business and takes responsibility in reducing the amount of virgin materials being used in the production of glass. For every ton of glass that is recycled and processed through SMI facilities, 1,300 pounds of sand, 410 pounds of soda ash, 380 pounds of limestone, and 160 pounds of feldspar are conserved. SMI also plays an integral part in advancing recycling and material recovery in local communities. Through advocacy and creative collection solutions, SMI has helped communities retain or develop alternative recycling programs at a time when many local governments have been rolling back recycling. SMI remains a strong advocate for curbside glass recycling first and foremost. Although single-stream collection at the curb has its challenges for all materials, curbside collection means convenience and convenience means high volumes, which are needed to support the long-term viability of glass recovery and manufacturers’ recycled content goals. There are many material recovery facilities (MRFs) that process glass well today and we applaud those partners for their commitment and encourage other MRFs to learn how glass can benefit their operations.
At SMI, recycling and material recovery is our company’s mission. This responsibility and oversight is owned by all employees. When necessary, SMI creates and supports non-traditional collection methods or “creative collections” in conjunction with curbside programs or separate from. Creative collections such as drop-off programs are part of a wider solution for recycling, giving residents and businesses more convenient ways to recycle glass. The benefits of recycling glass are numerous, and SMI will continue to promote and advocate for widespread recycling programs to be the best partner to the supply chain and the planet.
2021 SMI SUSTAINABILITY REPORT | PLANET | MATERIAL RECOVERY | PAGE 50
An unfortunate common occurrence, contamination from single-stream waste collection creates logistical and operational inefficiencies. In working towards zero waste goals, SMI samples every inbound load of material, to help reduce contamination of non-recyclable materials. In partnership with our suppliers, SMI develops strategies to help reduce the amount of waste absorbed by SMI’s facilities. Additionally, if non-glass materials are found in deliveries and are deemed recyclable, SMI takes measures to find outlets for the material before resorting to landfill options. Batteries are a common contaminate received in glass supply. In previous years, SMI’s California facilities have been removing, collecting and recycling batteries that entered the facilities. As part of SMI’s 2020 report, batteries that were recycled through this process in California were disclosed. In 2021, the goal was set to improve the ability to
remove, track and disclose the number of batteries that were recovered across all operations. Using the California facilities as an example, the other SMI facilities implemented a standard practice to inspect, audit and collect batteries and other universal waste.
SMI has implemented a battery surcharge program to help reduce the number of batteries being received into the facilities. These additional procedures help to maintain high-quality standards, reduce waste at the secondary processor level, and help the environment by ensuring batteries are properly recovered. In 2021, SMI diverted 2,244,060 tons of material away from landfills and are working every day to increase that number.
Planet Rainwater Reuse
Greenhouse Gas Emissions Inventory For the first time, SMI conducted a full Scope 1 and Scope 2 Greenhouse Gas (GHG) Emissions Inventory in 2021. This calculation will serve as the baseline year for all future emission reduction targets. This exemplifies the company’s commitment to fully understand its climate impact on communities and the world. This is a first step in the journey towards achieving net-zero carbon emissions. In future years, SMI will continue to improve data collection process and set science based GHG emission reduction targets.
Using the EPA simplified GHG Emissions Calculator (SGEC), which follows the direction of the Center for Corporate Climate Leadership Greenhouse Gas Inventory Guidance Documents and the Emission Factors Hub, SMI’s GHG inventory was conducted through the collection of stationary combustion, mobile sources, and purchased electricity. SMI is actively investigating opportunities to expand GHG emissions reporting to include Scope 3 emissions.
Scope 1 GHG Emissions
20,465 mT CO2e
Scope 2 GHG Emissions
30,350 mT CO2e
{location-based}
PAGE 52 2021 SMI SUSTAINABILITY REPORT | PLANET | GHG EMISSIONS | PAGE 52
The SMI glass recycling facility in Torreon, Mexico, is located in an area of the country that experiences “rainy season” each year. Research showed annual rainfall is between 900 and 1000 mm of rainwater from June to September. With this in mind, the local team installed a collection system for rainwater, including a cistern of 60 m³ of capacity. The water is collected in a cistern and fed to a pipe circuit and onto a glass washing process, after which any non-glass material is separated and sent to the drainage without any waste.
All non-glass material collected is captured with a trap and disposed of with the proper methods. Any water used in the process is cycled over and over to reduce water consumption by more than 40%. The initial project was so successful, facilities in San Luis Potosi and Mexico City, who have similar climates, also adapted a rainwater collection and reuse process. San Luis Potosi has reduced water usage by 60% and Mexico City uses only rainwater, equating to 100% water savings each year.
SUSTAINABILITY REPORT 2021
Planet CalRecycle Grant Awarded
LED Lighting Project
SMI’s facility in Modesto, California, was awarded a grant from the California Department of Resources Recycling and Recovery (‘CalRecycle’). The CalRecycle grant program was developed to help reduce greenhouse gas emissions by aiding projects that establish or expand facilities that process California-generated post-consumer recycled fiber, plastic, or glass to manufacture products.
In 2020, SMI set environmental consumption reduction targets to reduce waste, water, and energy consumption by 5%. In 2021, SMI identified and initiated opportunities to further help achieve this goal.
As part of the CalRecycle funded project, SMI received support to expand operations, allowing more glass to enter the facility for recycling, such as automotive and architectural glass. The recycled glass will be processed into cullet and sent to end markets such as fiberglass insulation. The project is anticipated to divert about 7,500 tons of glass a year from landfills and prevent 1,500 MTCO2e from entering the environment.
One project from this initiative was installing high efficiency LED lighting in the 182,855 square foot facility in South Windsor, Connecticut. During the analysis of the opportunity, the benefits of the LED lighting installation included new lights to improve productivity, safety, and energy efficiency. Additionally, the new lighting technology has a longer lifespan and will allow the company to save money on maintenance and replacement bulbs. SMI quickly got to work, replacing over 300 bulbs throughout the facility, with expected savings of 800,000 kWh per year.The company is identifying other similar opportunities at other facilities.
Appendix GRI INDEX GRI #
Disclosure
Page / Response
GRI #
Disclosure
Page / Response
102-1
Name of organization
Pg. 1; Strategic Materials Inc.
102-13
102-2
Activities, brands, products, and services Pg. 5; Strategic Materials processes recycled glass and plastic for use in a wide array of products, creating efficiencies for our customers while conserving earth's natural resources.
Membership of associations* not a complete list
102-3
Location of headquarters
Houston, TX
102-4
Location of operations
Pg. 5; 42 locations in the United States, Canada, and Mexico
102-5
Ownership and legal forms
Privately held
102-6
Markets served
42 locations in the United States, Canada, and Mexico; Containers, fiberglass, highway bead, glass abrasives, fillers, specialty glass, plastics
102-7
Scale of the organization
Approximately 800 employees across 42 locations across North America
102-8
Information on employees and other workers
Pg. 18-20; Approximately 800 employees
102-9
Supply Chain
Accepted supply includes 3 mix (single stream), color sorted container glass, mixed container glass, automotive glass, windshields, windows, borosilicate, heavily laminated glass
AROW (Associated Recyclers of Wisconsin) CalRecycles Carolina Recycling Association (CRA) Container Recycling Institute (CRI) Georgia Recycling Coalition Glass Recycling Coalition Glass Packaging Institute (GPI) Glass Recycling Foundation (501c3) Indiana Recycling Coalition (IRC) ISRI (Institute of Scrap Recycling Industries) NRC (National Recycling Coalition) NERC (Northeast Recycling Council) NWRA (National Waste & Recycling Association) Ontario Waste Managers Association SERDC (Southeast Recycling Development Council) SWANA (Solid Waste Association of North America) Tennessee Recycling Coalition TX STAR (State of Texas Alliance for Recycling) WSRA (Washington State Recycling Association)
102-14
Statement from senior decision-maker
Pg. 4; Message from the CEO
102-15
Key impacts, risks, and opportunities
Pg 16
102-16
Values, principals, standards, and norms of behavior
Pg. 17-18
102-17
Mechanisms for advice and concerns about ethics
Policy and process is included in our Employee Handbook
102-18, 19, 20
Governance structure; delegating authority; executive-level responsibility for economic, environmental, and social topics
Sustainability topics are managed and governed by our sustainability commitee comprised of cross-functional leaders in finance, health and safety, compliance, human resources, marketing.
102-21
Consulting stakeholders on economic, environmental, and social topics
Pg. 15
102-22
Composition of the highest governance body and its committees
Pg. 10-12
102-23
Chair of the highest governance body
Chris Dods, President and CEO
102-24
Nominating and selecting the highest governance body
SMI’s senior leadership team is selected and hired into strategic positions based on their qualifications regarding education, prior experience, core competencies, and leadership ability
102-10
Significant changes to the organization and its supply chain
No significant changes to report
102-11
Precautionary principle or approach
Pg. 13-14
102-12
External initiatives
Pg. 13
2021 SMI SUSTAINABILITY REPORT | APPENDIX | GRI INDEX | PAGE 56
2021 SMI SUSTAINABILITY REPORT | APPENDIX | GRI INDEX | PAGE 57
Appendix GRI INDEX GRI #
Disclosure
Page / Response
GRI #
Disclosure
Page / Response
102-25
Conflicts of interest
Any conflict of interest is to be reported and tracked through our employee hotline system.
102-45
Entities included in the consolidated financial statements
102-26
Role of highest governance body in setting purpose, values, and strategy
The senior executive team is responsible for the development, approval, and updating of Strategic Material’s purpose, value statement, missions statement, strategies, policies, and goals related to economic, environmental, and social topics
SMI is comprised of 34 total entities, 24 of which are active and covered within this report unless otherwise stated
102-46
Defining report content and topic bound- People, Partners, Planet aries
102-47
List of material topics
Pg. 15, Our material topic language was adjusted in 2021 to better reflect company nominclature. The intent of each material topic has not changed.
102-27
Collective knowledge of highest governance body
N/A
102-28
Evaluating the highest governance body's performance
SMI conducts internal, self assessments of our senior leadership team
102-48
Restatement of information
N/A
102-29
Identifying and managing economic, environmental, and social impacts
Pg. 10, 15, 18-19, 23, 29
102-49
Changes in reporting
GRI Core Compliant
102-50
Reporting period
2021
102-30
Effectiveness of risk management processes
SMI is actively investigating the feasibility of implementing an Enterprise Risk Management function
102-51
Date of most recent report
Jun-21
102-52
Reporting cycle
Annual
102-53, 54
Pg. 9
Review of economic, environmental, and social topics
Our Sustainability Committee reviews our economic, environmental, and social topics and their impacts, risks, and opportunities on a quarterly basis
Contact point for questions regarding the report; claims of reporting in accordance with the GRI Standards
102-55
GRI content index
Pg. 33-36
102-56
External Assurance
SMI is investigating the feasibility of external assurance for the future
205-2
Communication and training about anti-corruption policies and procedures
Anti-corruption training is assigned to key employees
205-3
Confirmed incidents of corruption and actions taken
Pg. 23, 26
301-2
Recycled input materials used
100%
301-3
Reclaimed products and their packaging
100%
305-1
Direct (Scope 1) GHG emissions
20,465 mT CO2e
102-31
102-32
Highest governance body's role in sustainability reporting
Our Sustainability Committee oversees sustainability reporting on an annual basis
102-33
Communicating critical concerns
All incidents that are reported to our third-party employee hotline are reported to our Chief Compliance officer
102-34
Mechanisms for advice and concerns about ethics
Our process to address and resolve any incident of critical concern is to first investigate the incident and then, if deem appropriate, enforce disciplinary action or implement policy change
102-35, 36, 37, 38, 39
Remuneration policies; Process for deN/A termining remuneration; Stakeholders' involvement in remuneration; Annual total compensation ration; Percentage increase in annual total compensation ratio
305-2
Energy indirect (Scope 2) GHG emissions 30,350 mT CO2e
306-2
Waste by type and disposal method
Pg. 30-31
306-4
Transport of hazardous waste
102-40
List of stakeholder groups
Pg. 15
Pg. 29, 31; All hazardous waste is handled and transported by our third party specialized recycler
102-41
Collective bargaining agreements
Less than 10%
307-1
Non-compliance with environmental laws 1 OSHA citation; $3,850 and regulations
102-42, 43, 44
Identifying and selecting stakeholders; Approach to stakeholder engagement; Key topics and concerns raised
Pg. 15
401-1
New employee hires and employee turnover
2021 SMI SUSTAINABILITY REPORT | APPENDIX | GRI INDEX | PAGE 58
Pg. 20
2021 SMI SUSTAINABILITY REPORT | APPENDIX | GRI INDEX | PAGE 59
Appendix GRI INDEX GRI #
Disclosure
Page / Response
403-8
Workers covered by an occupational health and safety management system
Pg. 19
403-9
Work-related injuries
29 incidents
404-1
Average hours of training per year per employee
Pg. 20
404-3
Percentage of employees receiving regular performance and career development reviews
100%; Every employee who is in the bonus plan. At the Plant level the review group includes Maintenance Supervisors, Quality Leads, Production Managers, assistant plant managers and plant managers. All corporate people and sales professionals received performance reviews.
2021 SMI SUSTAINABILITY REPORT | APPENDIX | GRI INDEX | PAGE 60
Appendix GLOSSARY Term
Definition
Term
Definition
Carbon Footprint
the amount of carbon dioxide and other carbon compounds emitted due to the consumption of fossil fuels by a particular person, group, etc.
Sustainability
Circularity
measures taken to retain the value of products, materials, and resources and redirect them back to use for as long as possible with the lowest carbon and resource footprint possible, such that fewer raw materials and resources are extracted and waste generation is prevented
development that meets the needs of the present without compromising the ability of future generations to meet their own needs - Brundtland report ‘Our Common Future’
Sustainability Accounting Standards Board (SASB)
an independent nonprofit organization that sets standards to guide the disclosure of financially material sustainability information by companies to their investors
CDP
a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts
Total Recordable Incident Rate (TRIR)
an OSHA metric for measuring occupational safety and health; Total Number of Recordable Cases multiplied by 200,000 divided by total hours worked by all employees during the year covered
carbon dioxide (CO2) equiv- measure used to compare the emissions from various types of greenhouse gas alent (CO2e) (GHG) based on their global warming potential (GWP) Note: The CO2 equivalent for a gas is determined by multiplying the metric tons of the gas by the associated GWP Code of Conduct (COC)
a statement setting out guidelines regarding the ethical principles and standards of behavior expected of a professional person or company
Cullet
Recycled broken glass, furnace-ready for remelting
Energy Efficiency
the ratio of a heating or cooling system’s output, per hour, in British thermal units to the input in watts, used to measure the system’s efficiency
Greenhouse Gas (GHG)
a gas that contributes to the greenhouse effect by absorbing infrared radiation
GHG Inventory
a list of emission sources and the associated emissions quantified using standardized methods
Global Reporting Initiative (GRI)
an international organization that helps businesses and other organizations take responsibility for their impacts with widely used standards for sustainability reporting
Materiality
a topic that reflects a reporting organization’s significant economic, environmental and social impacts; or that substantively influences the assessments and decisions of stakeholders
OSHA 10 hr
provides basic awareness training on the recognition, avoidance, abatement, and prevention of workplace hazards, including information regarding workers’ rights, employer responsibilities, and filing a complaint in a general industry or construction setting
OSHA 30 hr
provides a greater depth and variety of training on an expanded list of topics associated with workplace hazards in each industry for supervisors or workers with some safety responsibility
Recycling
reprocessing of products or components of products that have become waste, to make new materials
2021 SMI SUSTAINABILITY REPORT | APPENDIX | GLOSSARY | PAGE 62
United Nations Global Com- a voluntary initiative based on CEO commitments to implement universal suspact tainability principles and to undertake partnerships in support of UN goals United Nations Sustainable Development Goals (UN SDGs)
17 Sustainable Development Goals, which are an urgent call for action by all countries - developed and developing - in a global partnership. They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests
Waste Diversion
waste diverted from the landfill through reduction, reuse, and recycling
Glossary definitions pulled from GRI, CDP, Oxford Dictionary, and UCLA
2021 SMI SUSTAINABILITY REPORT | APPENDIX | GLOSSARY | PAGE 63
Strategic Materials, Inc. 17220 Katy Freeway, Suite 150 Houston, TX 77094 +1 281-647-2700 www.smi.com info@smi.com © 2022 Strategic Materials, Inc. All Rights Reserved.