2022 ESG REPORT
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 2 CEO LETTER Dear Stakeholders, Published: August 22, 2023 I am delighted to present our latest Environmental, Social, and Governance (ESG) report, showcasing our commitment to building a sustainable future and driving a greener tomorrow. As we navigate the complex challenges of our time, I am proud to share our progress and highlight a key priority that lies at the heart of our organization: zero waste. At Liberty Tire, we recognize that the pursuit of zero waste is not just an aspiration; it is a responsibility we owe to our planet and future generations. By finding new and innovative uses for end-of-life tires and reducing waste throughout our operations, we are actively working towards minimizing our environmental impact and creating a more circular economy. The accomplishments detailed in this report stand as a testament to the dedication and ingenuity of our exceptional employees. Their tireless efforts and innovative thinking have propelled us forward, enabling us to set ambitious targets and exceed expectations. From the production floor to the boardroom, every member of our team has played a role in bringing new ideas and implementing effective solutions. Furthermore, our employees have demonstrated an unwavering commitment to engaging with local communities and driving positive change. Through volunteering initiatives, educational outreach programs, and partnerships with nonprofits, we have empowered our employees to become sustainability champions, extending our impact beyond the walls of our organization. Their dedication to making a difference exemplifies the values that define us as a company. Looking ahead, we remain steadfast in our pursuit of zero waste. We will continue to invest in research and development and collaborate with industry partners and experts to explore innovative waste reduction technologies. I want to express my deepest gratitude to our exceptional employees, whose passion, creativity, and determination have made our company the business we are today. Their tireless efforts reflect their character and unwavering commitment to our shared vision. As we continue to evolve and strive for excellence, we invite all our stakeholders to join us on this transformative journey. Together, we can build a future where end-oflife tires are no longer considered waste, resources are conserved, and the planet thrives. Thank you for your ongoing trust and support. Sincerely, THOMAS WOMBLE CEO Liberty Tire is leading the industry by Driving a Greener Tomorrow.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 3 Corporate Highlights Years In Business 22 Number of Employees 3,099 Number of Customers 53,423 Locations Across North America 52 (45 facilities, 7 offices) States/provinces where we operate 53 Headquarters Pittsburgh, PA ESG Highlights % of Women in Corporate/Regional Leadership 22% On Grid Renewable 21.21% Scope 1 & 2 GHG Emissions 103,284 CO2-e Metric Tons Liberty Learning Training Hours 156,373 Tires Collected 195,925,849 TRIR (Total Recordable Incident Rate) 3.24 Number of Brands 17 2022 HIGHLIGHTS ZERO WASTE GOAL 100% of tires collected enter end use markets by 2030
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 4 COMPANY OVERVIEW Who We Are Founded in 2000, Liberty Tire Recycling, LLC (“Liberty Tire”) is committed to partnering with our stakeholders and all tire manufacturing industry leaders to create a more sustainable planet. We continually strive to develop new and more efficient methods to reclaim, recycle, reuse, and repurpose the more than 195 million end-of-life tires we collect annually. Our efforts to keep tires out of landfills and clean illegal dump sites benefit ecosystems and the communities in which we live and work. Our passion is making the world a better place for generations to come by boldly changing how the tire industry approaches sustainability. As the North American market leader in tire recycling management operating in both the United States and Canada, Liberty Tire reclaims more than 4.3 billion pounds of rubber each year. The recycled rubber produced by Liberty Tire is used for: Surfacing applications like sports fields, gym and hospital rubber flooring, athletic track surfacing, and equestrian arenas Molded products like landscape edging and pavers, lawn and garden products such as splash blocks for rain spouts, weightlifting plates, ADA-compliant thresholds, and the base of traffic cones Construction and civil engineering applications like asphalt, beneath railroad tracks, sound dampening, roadbeds, stormwater retention, and drain fill material Tire-derived fuel to power industrial kilns, paper mills, and power plants Mulch for landscaping and playgrounds A focus on environmental stewardship drives Liberty Tire to develop innovative solutions for end-of-life tires. Our work ensures end-of-life tires are repurposed to the greatest extent possible as we move ever closer to our zero waste goal. This process improves the overall environmental footprint of a tire by reducing the raw materials required to produce new products, thereby decreasing the waste sent to landfills.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 5 Tire Collection Liberty Tire is a full-service tire collection, processing, and manufacturing company. Each year, all types of tires are collected from more than 36,700 retail locations across North America and processed at one of our 38 strategically located manufacturing plants throughout the United States and western Canada. Over the last decade, more than 1.56 billion tires have been collected by Liberty Tire and we are continually developing new partnerships to expand our recycling efforts. Tire Remediation Services Liberty Tire works with communities to remediate abandoned or illegal end-of-life tire piles. Since 2011, we have remediated more than 150 dump sites and recycled over 40 million abandoned tires throughout the United States. Each year, Liberty Tire takes part in more than 450 cleanup projects or sponsored amnesty days where consumers are able to bring tires for disposal at no cost. Tire Processing Services Liberty Tire uses state-of-the-art technologies in our 38 advanced processing plants to recycle end-of-life tires into reusable raw materials such as crumb rubber, industrial feedstock, feedstock for retail products, tire-derived aggregate (TDA), and tire-derived fuel (TDF). Manufacturing Through reclamation and recycling efforts, Liberty Tire repurposes end-of-life tires into useful, inventive products for both the commercial and retail sectors. Utilizing recycled rubber, we manufacture more than 100 product SKUs that are sold in North America at more than 10,000 retail and commercial locations, including every major home improvement retailer. COMPANY OVERVIEW What We Do
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 6 COMPANY OVERVIEW Processing for Beneficial Reuse Tires are then ground through cryogenic or ambient methods into smaller particles for a variety of end markets. That material is then distributed to customers globally through our transportation network. Creating Recycled Products Not only is natural rubber a limited resource, it contributes to deforestation, biodiversity loss and more. Recycled rubber products extend the useful life of tires and have a smaller carbon footprint than virgin alternatives. We recycle and repurpose tires into a variety of innovative products, including mulch, landscape edging, patio pavers, consumer products and more. Retail and Manufacturing Locations Achieving Circularity While there is still work to do in the industry to achieve full circularity, many of the products that we manufacture go back on the shelves of our retailers, creating a closed loop for product use. Collections Our fleet of more than 400 vehicles collect tires from more than 36,000 locations annually. In addition, tires may be dropped off at our locations for recycling. Gate Drop-Offs Route Collection Drop and Hook Sorting Once tires are received in our facilities, they go through a multi-point inspection. Tires with useful treadlife are segmented and go back into circulation as used tires. Tires that are eligible for recycling move on to our processing lines and those that aren’t may be sent to disposal. Facility Sorting Used Tire Sales Disposal Rubber Mulch Molded Products Crumb Rubber Recycled Steel Tire Derived Aggregate Tire Derived Fuel
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 7 COMPANY OVERVIEW Mission, Vision, and Values Mission Liberty Tire is committed to providing world class service and finding new and innovative ways to reclaim, recycle, and reuse end-of-life tires for eco-friendly products—in support of a green circular economy and for the long-term health of our planet. Vision To create a more sustainable and resilient future that respects the environment and protects the health and safety of our people and communities. Values Safety We are committed to sending everyone home safe, every day. People We are building our business with a diverse, dedicated, and empowered team of people. We value and respect each individual and create opportunities for employee growth. Ethics We strive to do the right thing. We say what we’re going to do and we do what we say. Sustainable Value Creation We recognize that creating value for our customers drives our success. Teamwork We work together in the best interest of our customers and company. Innovation We must take the initiative to see and act on opportunities to continually improve the organization.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 8 COMPANY OVERVIEW The Growth of Liberty Tire Liberty Tire started in North Carolina in 2000 and over the last two decades, has grown into a dynamic organization with more than 40 collection and processing facilities across North America. Industry Associations and Memberships Liberty Tire actively engages in numerous trade associations and organizations at both national and local levels, reflecting the extensive scope of our business endeavors. We encourage our employees to actively participate in trade associations that hold significance and relevance to our operations. National Regional Recycled Rubber Coalition (RRC) Tire Industry Association (TIA) Tire and Rubber Association of Canada (TRAC) Institute of Scrap Recycling Industries (ISRI) Synthetic Turf Council (STC) American Sports Builders Association (ASBA) American Iron and Steel Institute (AISI) Air and Waste Management Association (AWMA) National Asphalt Pavement Association (NAPA) Solid Waste Association of North America (SWANA) National Road Research Alliance (NRRA) Eastern States Blast Furnace and Coke Association Southeast Recycling Development Council (SERDC) Cameron, Concord 2000 2002–2004 Minerva, Columbus, North Liberty 2010 Delta, Legal 2007–2008 Calhoun, Jackson, Chicago, Savage, Des Moines 2018–2019 IMC Outdoor Living, Indianapolis 2022 L&S Tire, Rubberecycle, Fillmore, Sanford Johnston, Atlanta, Baytown 2006 St Martin, Marion, Nashville, Knoxville, Saltillo 2011 Auburndale, Midlothian, San Antonio, Austin, Salt Lake City, Rockledge, Sturgis, Port St. Lucie 2009 Lakin Tire, BAS Recycling 2020–2021
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 9 COMPANY OVERVIEW Access-A-Mat™ Aquabond™ Burpee® Decktop™ Equitile™ Geneflex™ Genesis™ Groundsmart® Kid-Kushion™ Lasting Beauty® NuPlay® NuScape® Playsafer™ Rubberbond™ Rubberific® SmartMix™ Sportplay™ The Liberty Family The Liberty Brands IMC Outdoor Living, BAS and Western Rubber Products are all DBAs of Liberty Tire Recycling
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 10 OUR APPROACH TO SUSTAINABILITY Sustainability at Liberty Tire is woven into our business model of keeping end-of-life tires out of landfills and recycling them into new products. We are the market leader in tire recycling management, annually collecting more than 195 million tires, or 4.3 billion pounds of rubber, and transforming those tires into a variety of recycled products. When we began our sustainability journey, we assembled an ESG Task Force comprised of nine employees from cross-functional areas led by the Senior Vice President of Sustainability to create our initial ESG roadmap. As our strategy matures and we continue to integrate ESG considerations into our business model, we have shifted the responsibility for driving our ESG priorities to our Senior Management team. The Senior Vice President of Sustainability reports ongoing activity and progress to the Executive Team bi-weekly and to the full Board of Directors on a quarterly basis. The Board also conducts a comprehensive review of our sustainability performance annually. In 2021, we conducted our first sustainability materiality assessment. We requested feedback from our internal and external stakeholders, including investors, employees, customers, industry NGO’s and business leaders, to identify our most material sustainability topics given our current business operations. The resulting materiality assessment prioritized areas of focus according to the greatest impact on our business and our stakeholders. This year saw the continued evolution of our sustainability efforts. We adopted a company-wide ESG Policy that formally states our commitment to environmental, social, and governance efforts at Liberty Tire. The policy details our approach and identifies existing policies that are relevant to our environmental, social, and governance material topics. Influence on Stakeholder Assessments and Decisions Liberty’s Significant Economic, Environmental, and Social Impacts Employee Health & Safety Sustainable Operations Product Quality & Safety Diversity, Equity, & Inclusion Climate Change Recruitment & Training Product Stewardship Community Engagement Corporate Governance Supply Chain Management Data Privacy & Security Risk Management Product Innovation Advancing Sustainable Products Accelerating Environmental Stewardship Engaging People & Communities Operating Responsibly 13 9 8 1 2 6 7 3 5 11 12 10 4
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 11 OUR APPROACH TO SUSTAINABILITY ESG at Liberty Tire Advancing Sustainable Products Accelerating Environmental Stewardship Engaging People & Communities Operating Responsibly Material Topics Product Quality and Safety Product Innovation Market Acceptance and Product Awareness Supply Chain Management Product Stewardship Climate Change ` GHG Emissions, Air Quality Sustainable Operations ` Energy, Water, Waste Employee Health and Safety Diversity, Equity, and Inclusion Community Engagement Recruitment, Training, and Development Risk Management Corporate Governance Data Privacy and Security Focus Areas ` Increase sustainable packaging use ` Manage supply chain ESG risks ` Maximize beneficial reuse ` Produce high quality products ` Fuel and fleet efficiency ` Reduce GHG emissions ` Improve operational efficiency ` Promote sustainable operations ` Culture of health and safety as #1 priority ` Healthy workforce ` Increase community engagement ` Diverse and inclusive culture ` Improve talent development ` Demonstrate ethical values ` Risk analysis and mitigation
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 12 OUR APPROACH TO SUSTAINABILITY At Liberty Tire, sustainability is integrated into our overall business strategy and our day-to-day decision-making. We understand that our company becomes more financially successful as we become more environmentally sustainable. In support of our sustainability goals, every dollar of free cash flow is reinvested into the business to continue improving our operations, collecting more tires, and moving tire-derived material to its highest and best use. During 2022, Liberty Tire made substantial improvements to our business by implementing various infrastructure and procedural enhancements, with the goal of moving rubber up the value chain. ` Process improvements in our Texas locations allowed us to increase the yield of used tires that were eligible for the used tire market. The most sustainable approach is to utilize these tires through their complete lifespan, rather than prematurely initiating the recycling process. ` The acquisition of Rubberecycle in Lakewood, New Jersey, brought several significant advantages to our overall business. The strategic location allowed us to transport tires, previously destined for West Haven, Connecticut, to a facility much closer to the tire collections, effectively reducing miles driven during transportation. By moving the manufacturing of several Rubberecycle products to our Godfrey, Illinois facility, we successfully eliminated the need for overseas production. This consolidation enabled us to optimize production in Godfrey, eliminate freight movements, and foster the advancement of more material up the value chain in the U.S. market, contributing to improved operational efficiency and sustainability in our business practices. ` Liberty Tire is committed to advancing its operations. Recently, we implemented automated packaging and palletizing systems in select molded goods and rubber mulch production facilities. These automation initiatives were specifically designed to replace manual and repetitive processes, and resulted in reduced employee injuries, improved production rates, and more packaging uniformity. This uniformity not only minimizes storage and transportation damage but enhances retail product merchandising for our retail partners. ` Our processing line for the SmartMIX™ asphalt solution was moved from an external location to our Jackson, Georgia facility. This eliminated the need for additional transportation and now enables us to process and produce the product in the same location. As these examples demonstrate, sustainability is ingrained in our business strategy, and we believe that what is good for the planet and good for our employees is good for our business.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 13 ZERO WASTE GOAL Liberty Tire aspires to have 100% of tires we collect enter end use markets by 2030.” Liberty Tire takes pride in our efforts to transform endof-life tires into usable products, realizing the significant advantages of reducing greenhouse gas emissions and diverting these tires away from landfills. In 2021, members of the U.S. Tire Manufacturing Association (USTMA) reported a utilization rate of 71% for end-of-life tires, with the balance being sent to landfills. Many factors contribute to the inability to recycle all tires, such as limited markets for recycled products due to geographical constraints, low consumer demand, or a scarcity of applications for the recycled material. Liberty Tire achieved an industry-leading 74.4% utilization rate in 2022. While we have made great progress thus far, we acknowledge there is much work ahead to achieve our zero waste goal of 100% utilization rate from the end-of-life tires we collect by 2030. Our aim is to ensure that every tire we collect will be reused, repurposed, or recycled, with no tires or tire components ending up in landfills. While our goals are ambitious, it is noteworthy that, according to the USTMA, only batteries and cardboard are recycled at higher rates than endof-life tires. End-of-life tires continue to find end uses at a higher rate than glass, plastic, aluminum, metal, and paper. Liberty Tire has set a more ambitious, longer-term goal that all end-of-life tire material will be utilized in low, or no carbon closed loop applications by the year 2050. At present, a portion of our end-of-life tire material is consumed as tire-derived fuel by our customers. Although tire-derived fuel serves as an alternative to conventional fossil fuels like coal, it is not the highest and best use for those tires. This goal represents a challenge for us to elevate our material up the value chain, aligning with our commitment to sustainability and reducing carbon emissions. The goals we have set at Liberty Tire are bold and transformative, and achieving them will require the collective efforts of every individual within our organization. As we move forward, there are numerous avenues to explore on our path to success. Our strategy to attain zero waste includes: Developing new markets Developing new products Collaborating with industry partners Piloting innovative products and processes Our strategy to reach these zero waste goals can be found throughout this report. Attaining these goals is our highest priority and is the basis of everything we do.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 14 ADVANCING SUSTAINABLE PRODUCTS Our Purpose is to Repurpose To achieve our zero waste goal by 2030, Liberty Tire must not only manage waste throughout our operations but find beneficial reuse for 100% of the tires we collect including the rubber, steel, and fiber. Our focus lies in developing innovative products and fostering partnerships across diverse industries. At present, our tire recycling efforts enable us to repurpose tires into a wide range of products, including athletic surfaces, pavement applications, as well as landscape mulch and playgrounds. Moreover, tire rubber can be found in outdoor pavers, front door welcome mats, gaskets and hoses, or even transformed back into new tires. From crumb rubber that is used as a raw material in more technical industrial applications to tire derived fuel or rubberized asphalt, we create safe and useful products that drive a greener tomorrow. Paving the Way with New Asphalt Technology In 2022, Liberty Tire participated in an unprecedented project to evaluate the potential to use fibers derived from the tire recycling process in asphalt technology. This project tested a new asphalt technology that incorporates the tire fibers into our proprietary SmartMIX™ product. SmartMIX™ is a dry mix asphalt technology with well-known benefits that include 15% per ton cost reduction, an additional 3 to 5 years on an asphalt pavement’s lifecycle, more crack resistant, and easier and less expensive to install. Liberty Tire teamed up with Michigan Technological University and Ace-Saginaw Paving in St. Clair County, Michigan in September 2022 to test the performance of the addition of the recycled tire fiber to the SmartMIX™ product. The trial proved successful and resulted in the tire fiber and SmartMIX™ combination providing an overall 43% improvement in strengthening and reinforcing the mix against cracking. It was the first-of-its-kind project to beneficially reuse the tire fiber that was separated from passenger tire rubber during the granulating and tire recycling process. This project used rubber from 1,715 scrap tires and fiber collected from 2,024 scrap tires. 43% improvement in strengthening asphalt and reducing cracking when tire fiber and SmartMIX™ are combined
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 15 Circular Rubber Technologies is excited to continue to strengthen our partnership with Liberty Tire in the years to come and lead the way in redefining the tire industry by embracing circularity, driving positive change, and leaving a legacy of environmental stewardship.” MAARTJE VAN DER SANDE - CEO, CIRCULAR RUBBER TECHNOLOGIES ADVANCING SUSTAINABLE PRODUCTS Partnerships Achieving circularity of tires requires partnerships and collaboration across many industries. Liberty Tire works together with other businesses and organizations to collectively improve the circularity of tires. Liberty Tire places a high priority on providing excellent service to our customers and helping them create value through our service offerings. In 2022, we successfully completed several initiatives, resulting in a 6% improvement in On Time percentage for our direct-served National customers. Circular Rubber Technologies is a Canadian Waste to Value company who strives for the infinite reuse of the world’s rubber. Their rubber devulcanization technology converts end-of-life tires into a material suitable for the use in new tires; a tire-totire solution. During 2023, the world’s first rubber devulcanization facility specifically for end-of-life mining tires will be built in Red Deer, Alberta and Liberty Tire will provide the required feedstock. Through this joint effort, Liberty Tire and Circular Rubber Technologies expect to divert thousands of end-of-life mining tires from being buried at the mining sites and employ state-of-theart devulcanization recycling processes to transform discarded rubber into valuable resources. This partnership will foster the development of groundbreaking products that exemplify the principles of circular economy and is planned to be the first of many future facilities to serve the fast growing global demand for sustainable rubber products.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 16 This innovative pilot to recycle and reuse waste haul truck tires, which can weigh up to 5 metric tonnes and stand over 13 feet tall, aligns with Teck’s sustainability goals to find new ways to reduce waste and keep products in use. Liberty Tire understands the importance of collaborating with other companies to test new products and to finds new uses for recycled tire products.” MARIO TALARICO, SPECIALIST, INVESTMENT RECOVERY AND SUPPLY CHAIN STEWARDSHIP, TECK ADVANCING SUSTAINABLE PRODUCTS Teck Resources Limited (Teck) Developing markets for recycled tire products is critical to the circularity goals of the tire manufacturing industry. In 2022, Liberty Tire partnered with Teck to provide crumb rubber for a trial of rubberized asphalt on roads in North Vancouver, British Columbia, CA. Using rubberized asphalt has numerous sustainability benefits including diverting endof-life giant mining truck tires from landfills and the ability to last 3 to 5 years longer than regular asphalt. It also reduces tire tread wear up to 50% compared to other types of asphalt 1 and can be recycled and blended into more asphalt when it is replaced. 1. Impact of Asphalt Rubber Friction Course Overlays on Tire Wear Emissions and Air Quality Models for Phoenix, Arizona, Airshed.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 17 ADVANCING SUSTAINABLE PRODUCTS Beneficial Reuse While Liberty Tire remains committed to continuously developing new products and exploring new markets for materials derived from end-of-life tires, we currently offer a diverse range of sustainable products made from this material. Crumb Rubber ` Compression molding: floor and agricultural mats, weightlifting plates, playground products, traffic devices ` Sports infill for synthetic turf fields ` Running tracks ` Roofing materials Recycled Steel ` Appliances ` Vehicles ` Construction and building materials ` Bridge and highway construction Tire-derived Aggregate ` Drain-fill material ` Backfill ` Permeable fill for infrastructure ` Insulation Rubberized Asphalt ` Traditional rubberized asphalt (RMA) applications ` SmartMIX™ dry mix asphalt additive Commercial Products ` Surfacing – rubber mulch, pavers, tiles, pour-in-place ` Playground – swing mats, borders ` Landscaping – rubber mulch, edging, pavers, tree rings, splash blocks Tire-derived Fuel ` Industrial and power boilers ` Paper and steel mills ` Cement kilns
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 18 ADVANCING SUSTAINABLE PRODUCTS Product Quality and Safety The quality and safety of our products are the highest priorities at Liberty Tire. In addition to corporate in-house Quality Management System (QMS) audits, many of our facilities are also required to go through 3rd party audits to ensure that quality management systems are in place and continuously improved upon. In tandem with these audits, many of our products are held to the highest of standards, those of ASTM International. ASTM International has defined and set standards for performance and safety of products around the world. Our products are also externally certified for compliance with federal, state, and local regulations as well as applicable industry standards bodies such as International Playground Equipment Manufacturers Association (IPEMA). We are committed to providing the highest quality products to our partners. ASTM International is a globally recognized leader in the development and delivery of voluntary consensus standards. These standards are a means to ensure successful global trading strategies and were developed with the guiding principles of the World Trade Organization in mind. 2 For more information on ASTM, please visit www.astm.org IPEMA provides a product certification program which validates a participant’s product(s) for conformance to certain ASTM standards. In the interest of public safety, IPEMA provides a product certification program for public play equipment and surfacing materials, such as rubber mulch made from our recycled tires. 3 For more information on IPEMA, please visit www.ipema.org Product Stewardship Liberty Tire is a critical partner within the tire manufacturing industry as it expands its focus into product stewardship including circularity and low carbon energy generation. Tire manufacturers rely on the work of Liberty Tire to efficiently collect and provide a second life for end-of-life tires. The products that Liberty Tire produces and sells create both open loop and closed loop opportunities towards circularity. Through new market development and industry collaboration, our goal is to continue innovating and working with industry partners to bring all end-of-life tire material into low, or no carbon closed loop applications by 2050. Product packaging is also an important element of our commitment to reducing raw material use and creating more sustainable solutions. Today, all our rubber mulch sold in retail outlets is packaged in low-density polyethylene (#4 plastic or LDPE) bags, which can be recycled with other plastic shopping bags. The ability to recycle our packaging is a key consideration of the lifecycle of our products. 2. https://www.astm.org/about/overview/detailed-overview.html 3. https://www.ipema.org/about-ipema/
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 19 Triumvirate/BestPLUS and Liberty Tire has been on the cutting edge of recycling with a focus on creating a more sustainable future. Using the strengths of both companies we are closing the loop on sustainability. We’re really excited about the relationship with Liberty Tire and see this path of utilizing waste materials to beneficial reuse as the way of the future.” JOSEPH SADLIER - VP AND GM OF PLASTICS RECYCLING, BESTPLUS PLASTIC LUMBER - A DIVISION OF TRIUMVIRATE ENVIRONMENTAL ADVANCING SUSTAINABLE PRODUCTS Super Sack Recycling As we continue to evaluate all aspects of our operations for more sustainable options, we identified an opportunity to reduce our waste by recycling our super sacks. In 2022: 371,802 pounds of super sack material recycled Super sacks are large totes, capable of holding 2,200 pounds, that are used to transport tire-derived material between Liberty Tire locations or to a customer. Historically, super sacks have been cut and sent to the landfill as waste. In early 2022, Liberty Tire signed an agreement with BestPLUS Lumber, a division of Triumvirate, to remove our supersacks from the waste stream and use them in the manufacture of recycled plastic lumber. In this process, super sacks are compounded, plasticized, and blended and then extruded into molds to create a final product. Resulted in 177,512 linear feet of 2x4s or 33.6 miles of plastic lumber created
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 20 ADVANCING SUSTAINABLE PRODUCTS The Recycled Claim Standard (RCS) is an international, voluntary standard that sets requirements for third-party certification of Recycled input and chain of custody. The standard gives the textile industry a tool to verify the raw material content of products through third-party verification and chain of custody. We are proud of our efforts to reduce the use of raw materials, minimize the number of end-of-life tires that end up in landfills, and support the circular economy. Liberty Tire Recycling is certified to the Recycled Claim Standard (RCS) Version 2.0, which certifies and tracks our processed post-consumer materials from the source to final product. Certified by SCS Global Services (SCS), License number CL27157.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 21 ACCELERATING ENVIRONMENTAL STEWARDSHIP Reclaiming, recycling, reusing, and repurposing is just the start of our efforts to accelerate environmental stewardship. Understanding the immediate climate crisis our world faces, reducing greenhouse gas emissions is also one of our top priorities. In 2020 and 2021, we measured our carbon footprint and handprint to better understand our total impact on the environment. Our handprint shows how beneficial the use of recycled products is when compared to the virgin alternatives of these products and how much these products can impact greenhouse gas emissions reductions. We have identified opportunities to reduce greenhouse gas emissions by implementing software to optimize collection routes and ensure trucks are filled to capacity at the end of each route. This has already resulted in a lowered carbon impact during tire collection. Building on this progress, we are actively working to develop a comprehensive strategy and subsequent initiatives to further decrease our carbon footprint. In late 2022, in addition to our zero waste goals, we set the two additional goals. We look forward to reporting our progress in our future ESG reports. Reduce Energy Intensity by 25% by 2032 4 We will accomplish this goal by identifying opportunities in production efficiencies, compressed air management, peak demand, power factor, and LED lighting upgrades. Improve Fleet Efficiency by 30% by 2032 4 We will reach this goal through a variety of initiatives in the areas of alternative fuels, DOT compliance, route optimization, fuel efficiency, idle time reductions, and driver training. 4. Baseline year is 2022
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 22 Utilized 159,196 gallons of renewable diesel ACCELERATING ENVIRONMENTAL STEWARDSHIP Environmental Highlights Recycled 545 items including desktop computers, monitors, and laptops and 245 pounds of tablet covers and cables totaling 1,798 pounds during our “Clean Sweep 2022” e-cycling event at our Corporate Headquarters in Pittsburgh Converted more than 320,000 square feet to LED lighting which reduced lighting consumption by 67% By moving to digital work orders, we reduced our paper usage by 6+ tons over the last 6 years Reduced energy usage by approximately 20% leveraging solar power at our Rubberecycle plant Participated in a trial program for the EV Peterbuilt 579, an EV Class 8 Tractor Our Connecticut facility captures up to 400 gallons of water per day from tires collected and a gutter system around our shredding facility. We then filter the water and reuse it to cool our shredder blades. Supporting Our Partners’ Emissions Goals As a downstream supplier for many large tire retailers’ and manufacturers’ waste, Liberty Tire is an important part of their sustainability initiatives. Liberty Tire’s operations span the U.S. and Canada, allowing us to support our partners as they pursue their own waste reduction and greenhouse gas emissions goals. We collect end-of-life tires from manufacturers and retailers and use the components to create new products. As part of our commitment to transparency, we maintain detailed data on the number of tires collected from each company and the output of recycled products entering reuse markets. This information is shared with our partners, who trust us to leverage our national footprint to expertly manage their waste stream and deliver valuable data and metrics for their reporting needs. Reduced fleet mileage by over 161,000 miles as well as improved on-time service levels by 5% through the utilization of route optimization software
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 23 ACCELERATING ENVIRONMENTAL STEWARDSHIP Carbon Emissions To better understand the baseline from which to measure improvement in our energy efficiency, Liberty Tire calculates our annual carbon footprint and handprint. In prior years, our carbon footprint has been focused on the total greenhouse gas (GHG) emissions generated from our operations from the moment a truck leaves our facility to collect used tires to the moment we deliver our end product to a customer. In 2022, we calculated additional upstream and downstream emissions from our value chain. Greenhouse gas emissions are categorized into Scope 1, 2, and 3 emissions. Scope 1 emissions are the greenhouse gases emitted from our truck fleet and from our natural gas usage. Scope 2 emissions are calculated from the electricity purchased to run our facilities. The calculation of our Scope 3 emissions includes purchased goods and services, capital goods, fuel and energy-related activities, upstream transportation, generated waste, downstream product transportation, processing and end-of-life treatment of sold products, and employee business travel and commuting. To more thoroughly and accurately track our Scope 3 emissions, in 2022, we added eight more categories to our Scope 3 data collection. As Liberty Tire continues to grow organically and by acquisition, our Scope 1, 2, and 3 greenhouse gas emissions have increased from 2020 to 2022 due to additional locations, improved integrity of our data and expanded reporting of our Scope 3 emissions. Category 11 of our Scope 3 emissions (Use of Sold Products) is comprised of the greenhouse gases emitted when our tire-derived fuel (TDF) is combusted by our customers. The cement industry burns scrap tires as fuel in kilns used to make clinker—a primary component of portland cement. The pulp and paper industry uses tire-derived fuel in their boilers which are used to supply energy for making paper. While this value is higher than our other categories, the value would be 9.6% higher if coal was burned instead of the tire-derived fuel. Additionally, emissions associated with mining coal are over 14 times higher than the production of tire-derived fuel from waste tires. The use of TDF also results in lower nitric oxide emissions when compared to many U.S. coals, particularly the high-sulfur coals. Given these factors, tire-derived fuel is a beneficial waste product alternative to mining and burning traditional fossil fuels like coal. Scope Component 2020 GHG Emissions CO2-e (Metric Tons) 2021 GHG Emissions CO2-e (Metric Tons) 2022 GHG Emissions CO2-e (Metric Tons) 1 Stationary Combustion (Natural Gas Usage) 4,394 2,418 4,093 Mobile Sources (Truck Fleet) 33,992 40,123 52,967 2 Purchased Electricity (Facilities) 44,387 46,386 46,224 3 Upstream and Downstream Emissions 39,103 49,053 1,910,176 Footnotes Category 5 Categories 5, 9, 6* (incomplete data set) Categories 1-7, 9-12 2022 Value Chain Footprint CO2-e (Metric Tons) Scope 1 57,060 Scope 2 46,224 Scope 3 1,910,176 Purchased Goods & Services 9.6% Capital Goods 0.2% Fuel & Energy-Related Activities 1.4% Upstream Transportation 1.1% Waste Generated in Operations 0.6% Employee Business Travel 0.2% Employee Commuting 0.4% Downstream Transportation 4.9% Processing of Sold Products 16.1% Use of Sold Products 65.1% End of Life Treatment of Sold Products 0.4%
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 24 ACCELERATING ENVIRONMENTAL STEWARDSHIP Handprint Our Handprint (Scope 4) calculations quantify the avoided or reduced emissions resulting from the use of Liberty Tire’s recycled products compared to the manufacture and use of alternatives made with virgin materials. Choosing the products we manufacture from recycled, end-of-life tires results in reduced greenhouse gas emissions for consumers and businesses. Each category below identifies the amount of emissions avoided by using the recycled products sold by Liberty Tire in 2022. The use or application of Liberty Tire’s products avoided: 762,661 metric tons of CO2-e in 2022 Liberty Tire’s handprint currently includes 88% of total volume sold * Includes Scope 1, 2 and Scope 3 Categories 3-9 Resold Tires -167,664 CO2-e Rubber Mats -205,971 CO2-e Tire-Derived Fuel -123,770 CO2-e Asphalt Alternatives -59,992 CO2-e -135,082 CO2-e (avoided emissions over the useful life of the product) Recovered Steel Wire -206,134 CO2-e 2022 GHG Emissions 267,163 CO2-e to produce our products* Rubber Mulch +870 CO2-e
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 25 ACCELERATING ENVIRONMENTAL STEWARDSHIP Longevity of rubber mulch Liberty Tire’s rubber mulch products are used in playground and landscaping applications as an alternative to wood mulch solutions. Although the production of rubber mulch emits 1.7x the greenhouse gases of wood mulch, it lasts approximately 12 years after initial application which is much longer than the annual reapplication of wood mulch that is necessary. Avoided emissions: 134,786 metric tons of CO2-e (over 10 yrs) Improving asphalt products Crumb rubber is added to traditional asphalt mixes to create a better product. Rubberized asphalt adds 3-5 years to an asphalt pavement’s lifecycle as well as being more resistant to cracking and easier and less expensive to install. Avoided emissions: 59,992 metric tons of CO2-e Using rubber for mats vs. virgin materials Liberty Tire’s largest molded product segment by annual volume is in flooring and rubber mats for industries like oil and gas, agriculture, commercial building, gyms and even consumer households. For this product line, Liberty Tire prepares tire crumb to be used as feedstock, which is shipped to manufacturers who make the end product. Avoided emissions: 205,971 metric tons of CO2-e Recovering steel wire from tires Steel wire is removed from the end-of-life tires after shredding. This recovered wire is remelted in steel furnaces to make sheet and long steel products. As a result of Liberty Tire’s recycling efforts, the use of coal, petroleum coke, and other raw materials for the production of steel is reduced. Avoided emissions: 206,134 metric tons of CO2-e Reselling used tires When a consumer replaces one bad tire, they often choose to replace all the tires on the vehicle for consistency, regardless of the condition of the remaining tires. Rather than recycling and processing the tires that are still in good condition, we sell them to customers in the used tire market. Avoided emissions: 167,664 metric tons of CO2-e Replacing fossil fuels with Tire-Derived Fuel (TDF) Due to its high heat output, tire-derived fuel has the ability to replace other fuels in co-fired boilers in pulp and paper mills, cement kilns, and to power electricity plants. This enables these boilers and kilns to use less overall fuel; therefore, avoiding the generation of additional greenhouse gas emissions. Using end-oflife tires instead of traditional fossil fuels reduces greenhouse gas emissions by 20-30% for each ton of coal burned. Avoided emissions: 123,770 metric tons of CO2-e Environmental Benefits to Using Liberty Tire’s Products
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 26 Liberty Tire’s commitment to improving its energy productivity by 25% over 10 years establishes the company as a leader in efficiency and helps strengthen the nation’s manufacturing competitiveness.” BECCA JONES-ALBERTUS – ACTING DIRECTOR, ADVANCED MANUFACTURING OFFICE, U.S. DEPARTMENT OF ENERGY ACCELERATING ENVIRONMENTAL STEWARDSHIP Better Plants Program Liberty Tire proudly participates as a program partner with the U.S. Department of Energy’s Better Buildings, Better Plants Program. Our collaboration aligns us with more than 270 companies and industrial organizations nationwide, all committed to setting ambitious goals for energy, water, waste, and carbon reduction. As part of the Better Plants Program, we are committed to improving the energy efficiency of our U. S. operations by 25% over a 10-year period. There are many benefits to Liberty Tire’s participation in this program including technical support to develop energy management plans, engagement with peers at annual events, in-plant trainings, and access to energy-saving resources. By increasing our energy efficiency through this program, we expect to realize cost savings which is supportive of our business strategy.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 27 ACCELERATING ENVIRONMENTAL STEWARDSHIP Alternative Fuels Liberty Tire is always looking for opportunities to improve fuel efficiency and maximize carbon reduction of our fleet of vehicles. In 2022, our Delta, British Columbia facility took the pioneering step of testing the first EV Peterbilt 579 on the open road in Canada. While the vehicle showcased numerous benefits, including zero emissions, swift acceleration, and safety features like enhanced comfort, minimal noise, and shock-free operation, its range and usage time before requiring a charge made it unviable for our travel distances. We eagerly anticipate adopting electric vehicles once technology evolves to meet our business needs. Until then, we remain committed to route optimization and continuously exploring emerging technologies as they become feasible alternatives.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 28 We are excited that Liberty Tire has selected ADAPT to empower its organization and to understand and mitigate the impact of transportation emissions on its business, customers, and stakeholders. We look forward to expanding our relationship and to grow Liberty Tire’s leadership in this important area.” DINESH C, CEO OF ADAPT ACCELERATING ENVIRONMENTAL STEWARDSHIP Using Technology to Improve Fleet Efficiency Liberty Tire partners with ADAPT to realize decarbonization strategy. Liberty Tire entered a partnership with Silicon Valley’s ADAPT to realize our sustainability objectives by accurately and automatically tracking, analyzing, and reporting greenhouse gas emissions from our vehicle fleet. Facing challenges such as diverse vehicle fleets, nonstandardized telematics services, and the need to convert raw mobility data into standardized greenhouse gas reporting, Liberty Tire turned to ADAPT’s comprehensive and robust transportation intelligence solution. ADAPT’s platform ingests and analyzes disparate telematics data for automating accurate greenhouse gas reporting. This information is used both internally and externally to direct business strategies and to ensure reporting compliance. For example, ADAPT’s ‘Hotspot’ function provides insights on reducing emissions while saving operational cost, supporting Liberty Tire’s sustainability objectives. This comprehensive approach to emissions tracking sets the foundation for Liberty Tire to set realistic decarbonization goals and effectively monitor our progress.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 29 ACCELERATING ENVIRONMENTAL STEWARDSHIP Water Management Liberty Tire is exploring creative ways to conserve water usage at our facilities. Our water conservation measures are specifically tailored to suit the distinct operations of each of our facilities. At some locations where it is feasible, rain and snow runoff is collected and stored to be used onsite for our shredding operation and firefighting spray systems. At another facility, we recycle our captured water. We have a gutter system around our grading and shredding areas to capture water from tires that are collected and water coming out of our shredders. We use sump pumps to collect the water in 100-gallon containers which we run through filters and extract uncontaminated water (approximately 50%). We then use the clean water for spraying and cooling our shredder blades. Depending on the season, this can range from 100+ gallons in our drier seasons to as much as 400 gallons per day. We understand the importance of having a comprehensive understanding of our water usage so that we can identify areas for improvement. In 2023, Liberty Tire will initiate a water use inventory and evaluate the water management systems at all of our facilities for areas of opportunity.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 30 ENGAGING PEOPLE AND COMMUNITIES Workforce Demographics Our employees are the heart and soul of our company and we are committed to supporting them throughout the hiring process and their career at Liberty Tire. Ensuring we are an inclusive and diverse employer is one way we support the communities in which we operate. In 2022, 56% of our total workforce identified as an ethnic minority and 12% were female, up from 10% in 2021. We understand diversity at all levels of an organization is important to a company’s success and we are continually striving to increase the racial and gender diversity of our team. At present, 18% of our executive leadership is diverse, however, we have no gender or racial diversity on our Board of Directors. This is an area of opportunity for Liberty Tire to explore in upcoming years. Mgmt. Plant Mgmt. Non-Management Total Racial/Ethnic Minority 20 173 1,548 1,741 White 128 229 1,001 1,358 Race/Ethnicity Age Female Employees Total Employees % of Total Corporate/ Regional Management 32 148 22% Plant Management 64 402 16% Non-Management 283 2,549 11% 379 3,099 12% Gender Diversity 41% 43% 13% 2% 1% 47% 36% 17% Hispanic Black or African American American Indian Two or more Races White Under 30 30–50 Over 50 Liberty Tire does not currently collect diversity data for our Canadian operations. This accounts for 189 employees that are not included in the data counts provided. Creating a culture that encourages diversity and values our employees starts with our hiring process, continues with supporting our employees and their families with our benefits offering, and continually encourages their career development through our extensive Liberty Learning training program. As a result of the respect and support given to our employees, Liberty Tire has become an employer of choice in our local markets and throughout the tire recycling industry.
Liberty Tire Recycling | 2022 Environmental, Social & Governance Report 31 ENGAGING PEOPLE AND COMMUNITIES Diversity, Equity, and Inclusion Liberty Tire is committed to fostering, cultivating, and preserving a culture of diversity, equity, and inclusion. Our human capital is our most valuable asset and we embrace and encourage our employees’ differences. Our diversity initiatives focus on the ongoing development of a work environment built on the premise of Diversity, Equity, and Inclusion (DEI) that encourages and enforces: ` Respectful communication and cooperation between all employees. ` Inclusive teamwork and employee participation, permitting the representation of all groups and employee perspectives. ` Employer and employee contributions to the diverse communities we serve. With the advantage of a highly diverse employee population, Liberty Tire emphasizes offering communication options for its many Spanish speaking employees. Employee support in Spanish ranges from Benefits Representatives and summary materials, employee training materials, employee policies and procedures, employee communication postings, and bilingual site resources. Through its support of all employees, whether English or Spanish speaking, Liberty Tire is dedicated to building an inclusive, collaborative, and informed workplace. In addition to conducting company-wide DEI training in 2022, Liberty Tire focused our efforts on our St. Louis and Godfrey IMC Outdoor Living facilities. We worked with community groups to offer interviews to all applicants that were interested in working with our organization as well as sponsored and participated in networking events and job fairs. ` Saint Louis University Transformative Academy assists individuals coming out of prison or have a criminal record with finding gainful employment. IMC Outdoor Living has been a sponsor of the last three Second Chance Job Fairs. ` Urban League Save Our Sons program seeks to help economically disadvantaged African American men living in the St. Louis region find jobs and earn livable wages. All individuals that participate in the program complete job training and are assisted with obtaining post-secondary education and life skills training to be successful employees. IMC Outdoor Living has partnered with the Urban League to assist with job training initiatives and to offer interviews. ` Goodwill of Alton and St. Louis Workforce Center provides individuals the opportunity to build essential work skills and provides resources to obtain gainful employment. IMC Outdoor Living has partnered with Goodwill to assist with job training initiatives as well as to offer interviews. ` Honest Jobs is the leading national job marketplace for people affected by the criminal justice system. IMC Outdoor Living has been certified through Honest Jobs as a Fair Chance Employer by demonstrating our commitment to hiring individuals with criminal records. ` VETwork provides opportunities for veterans and employers to meet in informal environments to build relationships and gain resources for employment. IMC Outdoor Living has participated in several of their monthly events. ` Diversity Job Fair is held quarterly in North County St. Louis to provide qualified and diverse job seekers the opportunity to meet with employers. IMC Outdoor Living is a platinum sponsor of the event. These pillars of our company foundation were formalized in a Diversity, Equity, and Inclusion policy in 2022.
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