The 2024 Liberty Tire Recycling Sustainability Report SUSTAIN BY Design ABILITY
2024 SUSTAINABILITY REPORT Introduction 2 Environmental Stewardship 8 Our Sustainable Products 16 Valuing & Investing In Our Team 20 Supporting Communities Where We Live & Work 27 Operating Responsibly 31 Appendix 35 Table of Contents 1
This sustainability report, published annually, covers the 2024 calendar year and is inclusive of all Liberty Tire Recycling facilities. While the data has undergone thorough internal review, it has not been externally assured. This report is overseen by the Board of Directors, but its drafting, approval, and publication are management functions. The effort is led by our Senior Vice President of Sustainability, who reports to and collaborates with the CEO, a member of the Board. For questions, please contact Amy Brackin, Senior Vice President of Sustainability ABrackin@LibertyTire.com 2024 SUSTAINABILITY REPORT 2 SUSTAINABILITY IN ACTION Introduction
2024 SUSTAINABILITY REPORT As we look back on 2024, I am inspired by the collective efforts of the Liberty Tire Recycling team and our partners in advancing our shared vision for sustainability. This year’s sustainability report celebrates our progress and reaffirms our commitment to continuous improvement. At Liberty, being a good teammate—to our people, the planet, and our partners—is core to who we are. This means building trust through transparency, collaboration, and doing the right thing. We know that investing in sustainable practices also strengthens our business and unlocks new opportunities. Whether in our facilities or on the road, our goal is for every employee to return home safely each day. We’re extremely proud of the progress made this year and remain relentless in our pursuit of perfection in this critical area. The safety of our people remains our top priority. Circularity is the foundation of Liberty’s business. Every tire we collect is an opportunity to move rubber material into higher value products and away from disposal. Our Zero Waste goal - by 2030, 100% of tires we collect will enter an enduse market - drives our innovation and collaboration as we seek smarter ways to reduce environmental impact and maximize resources. This year, we've made meaningful strides in circularity, safety, and community engagement, strengthening partnerships, expanding environmental stewardship, and pushing the boundaries of what’s possible. Yet, we recognize there is always more to do. I am deeply grateful to the Liberty team for their dedication, to our partners for their collaboration, and to our communities for inspiring us to aim higher every day. Together, I’m confident we will continue setting new standards for sustainability, responsibility, and success. Thank you for being part of this journey. Thomas Womble Liberty Tire Recycling Chief Executive Officer A Letter from Our CEO 3
215,634,461 205,817,489 2023 2024 2024 SUSTAINABILITY REPORT 2024 Highlights 4 24 8.7% $150,726 3570 81.1% 54,514 56 97% YEARS IN BUSINESS Emissions Reduction (YOY) REVENUE GROWTH (YoY) DOLLARS DONATED TO CHARITY CUSTOMERS LOCATIONS (52 FACILITIES + 4 OFFICES) INDUSTRY COLLECTION RATE end market utilization rate +2.7% INCREASE from 2023 TIRES COLLECTED* The U.S. tire recycling industry achieves a 97% collection rate, a materially higher recovery rate than other recycling sectors1 *Tires Collected is calculated in passenger tire equivalents (PTE’s) 3.10 2.36 1.06 0.75 2023 2024 Total Recordable Incident Rate (TRIR) Preventable Vehicle Accident Rate (PVAR) SAFETY IMPROVEMENTS 1.5% EMPLOYEES
2024 SUSTAINABILITY REPORT Who We Are & What We Do 5 As North America’s leading tire recycler, we are committed to transforming endof-life tires into valuable resources and driving sustainability across the industry. Liberty provides tire collection services and recycling solutions while developing innovative products that contribute to a circular economy. In 2024, we reclaimed 4.7 billion pounds of rubber from more than 215 million collected scrap tires—diverting valuable materials from landfills and reducing environmental impact. Through advanced technology, innovative processes, and strong partnerships, Liberty creates sustainable products that support infrastructure, manufacturing, and energy recovery. To learn more about Liberty and our daily operations, visit our website: Liberty Tire Recycling → Tire Collection and Processing → Mission, Vision & Values → Collection / Processing Facilities: 38 Collections Facilities / Transfer Stations: 7 Mulch & Molded Goods Facilities: 7 Regional / Administrative Offices: 4 Infrastructure Investment Highlights: In 2024, we acquired Castle Tire, the leading tire recycler in the Pacific Northwest region. The goal of this acquisition was to improve route density and increase the number of tires going to beneficial reuse in this region. Liberty also completed the Puyallup, WA facility relocation, including processing enhancements, routing optimization, and strategic whole tire transfers to our Southern California location. This improved environmental outcomes and reduced miles driven by 1.2 million. At the Jackson, GA facility, we optimized the processing line to boost production, which advanced 19,000 tons up the value chain compared to the previous year.
2024 SUSTAINABILITY REPORT Our Process 6 COLLECT TRANSPORT TIRE COLLECTION SOURCES VEHICLES IN OUR FLEET PROCESS USED TIRE SALES Wholesalers & Retailers RETAILERS MANUFACTURERS Communities MUNICIPALITIES Individuals Disposal 538 PRODUCTS Crumb Rubber Molded Products Rubber Mulch Recycled Steel Tire-Derived Aggregate Tire-Derived Fuel CREATE SORT 81.1% Utilization rate end market 54,514 CUSTOMERS COMMERCIAL 86.0% Municipal 11.7% Industrial 2.3% Residential 0.1%
2024 SUSTAINABILITY REPORT Our Approach to Sustainability 7 OUR SUSTAINABILITY PRIORITIES OUR SUSTAINABILITY GOALS Liberty launched its sustainability program in 2020, embedding Environmental, Social and Governance (ESG) principles into our operations and strategy. Led by the SVP of Sustainability, with Board and executive oversight, Liberty’s sustainability efforts align with corporate and stakeholder goals. Site managers drive implementation, with quarterly reviews and annual assessments. Focus areas are reviewed annually to adapt to market trends, risks, and opportunities, ensuring lasting value for stakeholders and the planet. Liberty Tire Recycling Materiality Matrix Employee Safety & Wellbeing Circular Economy Operational Efficiency Community Engagement Responsible Operations By 2030, Liberty will increase miles per gallon (MPG) by 20%. = Reduced Scope 1 Emissions – Improved fuel efficiency lowers diesel consumption and Scope 1 Mobile Sources emissions from company-operated vehicles.8 = Sustainable Growth Management – Monitoring fuel efficiency ensures emissions remain controlled as operations expand.8 = Operational Cost Reduction – Enhanced efficiency decreases fuel costs. Improve Fuel Efficiency = Reduced Scope 1 & 2 Emissions – Reducing energy intensity decreases Scope 1 Stationary Combustion and Scope 2 Purchased Electricity emissions.8 = Sustainable Growth Management – Monitoring energy use ensures controlled emissions as Liberty grows.8 = Operational Cost Reduction – Optimizing energy intensity decreases energy costs. By 2032, Liberty will lower the amount of energy used per ton of production by 25%. Reduce Energy Intensity = Enhanced Circular Impact – Expanding recycled material use decreases reliance on and the use of virgin resources, while also reducing waste.8 = Reduced Scope 3 Emissions – As we pursue our zero-waste goal, we focus on moving recycled rubber up the value chain into recycled products and reducing emissions resulting from sold products in less sustainable outlets = Business Resilience – Advancing reuse and recycling increases material value and unlocks new market opportunities. By 2030, 100% of tires we collect will enter an enduse market. Target Zero Waste DEFINITION GOAL OUTCOMES
2024 SUSTAINABILITY REPORT 8 SUSTAINABILITY IN ACTION Environmental Stewardship
2024 SUSTAINABILITY REPORT Managing Our Impact 9 At Liberty, environmental stewardship at the core of who we are. We are committed to managing our growth responsibly while continuously optimizing our operations, recognizing that our work plays a critical role in advancing sustainability and reducing waste. Every tire we collect and every product we create moves material away from disposal and into valuable, more sustainable applications. This makes it essential to continue improving production efficiency and turning waste rubber into valuable products, reducing the need for virgin materials. Our business is focused on turning end of life tires into new products, reducing the need for virgin materials and creating value from a product that was once considered waste destined for a landfill. As part of our sustainability strategy, we have identified three key goals based on the areas most material to our operations and stakeholders. These goals support sustainable growth while also ensuring we are managing our impact and operating sustainably. Improving fuel efficiency BY 20% by 2030 Measured by MPG Reducing energy intensity BY 25% by 2032 Measured by MMBtu / Production Tons 100% of tires collected entering an end-use market Zero Waste BY 2030 Measured by Utilization Rate Together, these goals reflect our commitment to operational efficiency and advancing circularity GOAL 1 GOAL 2 GOAL 3
2024 SUSTAINABILITY REPORT Resource Management 10 Environmental oversight is led by the Director of Environmental Services, who ensures regulatory compliance and responsible practices for all Liberty locations. Liberty Tire Recycling’s primary focus in waste management is expanding the beneficial reuse of the tires we collect, as it is material to our operations and central to our zero-waste goal (see the Circularity section of this report for more details). In addition to these efforts, the company tracks and monitors all other waste streams through vendor reports and looks for opportunities to recycle other materials such as super sacks and wood pallets where possible. We actively monitor consumption through a utility management platform that alerts our sustainability and facility teams to any significant variance in usage. This enables us to respond quickly to anomalies and ensure responsible water use across the business and with specific focus in high water stress areas. Rainwater Recycling The West Haven, CT facility uses a rainwater recycling system to reduce water use and costs. Rainwater is collected in trenches and recycled into 250-gallon drums. Each drum filled provides approximately 10 hours of misting in our production process, supporting sustainability while cutting water consumption and costs. SOURCE GALLONS Public WATER 32,354,587 5,710,101 Well WATER TOTAL WATER CONSUMPTION 38,064,688 BY THE NUMBERS BY THE NUMBERS SOURCE METRIC TONS TIRE DISPOSAL 453,168.4 GENERAL 5,445.2 USED OIL 14.8 HAZARDOUS 2.8 UNIVERSAL 2.0 TOTAL WASTE DISPOSAL 458,633.2 WASTE MANAGEMENT WATER MANAGEMENT
2024 SUSTAINABILITY REPORT Carbon Emissions 11 FOOTPRINT In 2024, Liberty achieved a year-over-year reduction in greenhouse gas (GHG) emissions compared to 2023— even as we continued to grow through both organic expansion and acquisitions. This achievement underscores our commitment to managing environmental impact while scaling our operations. By setting emissions management goals aligned with our growth trajectory, we are able to measure, manage, and mitigate our footprint effectively. The following pages highlight our progress to date, outline plans for continued improvement, and showcase the key initiatives supporting our sustainable growth. SCOPE 2020 2021 2022 2023 2024 MANAGEMENT PLAN 46,386 49,053 Cat. 5, 9, & 6 (incomplete data set for category 6) 1,806,951 Category 1-7 & 9-12 1,861,234 Category 1-7 & 9-12 1,840,577 Category 1-7 & 9-12 NOx Nitrogen Oxides 359 Metric Tons SOx Sulfur Dioxide 80 Metric Tons Total Electrical Consumption 137,706,298 kWh On-grid Renewable Energy Consumed 8,229,374 kWh Total Natural Gas Consumption 16,968,483 kWh 1 Stationary Combustion (Natural Gas Consumption) Mobile Sources (Truck Fleet) Reduce Energy Intensity (Natural Gas) & Improve Fuel Efficiency (Mobile Sources) 52,967 2,418 40,123 56,792 48,202 4,093 4,845 3,076 4,394 33,992 2 Reduce Energy Intensity (Electricity) Purchased Electricity 44,387 46,224 44,875 46,883 3 Move Rubber Up the Value Chain Upstream & Downstream Emissions 39,103 Category 5 TOTAL EMISSIONS 1,938,738 100% 2.6% ◼ SCOPE 1 51,278 2.4% ◼ SCOPE 2 46,883 2.0% 39,544 ◼ 1. Purchased Goods & Services 0.1% 1,451 ◼ 2. Capital Goods 1.4% 27,817 ◼ 3. Fuel & Energy Related Activity 1.0% 19,940 ◼ 4. Upstream Transportation & Distribution 0.6% 12,468 ◼ 5. Waste Generated in Operations 0.2% 3,052 ◼ 6. Employee Business Travel 0.3% 6,574 ◼ 7. Employee Commuting 9.4% 181,376 ◼ 9. Downstream Transportation & Distribution 14.2% 274,392 ◼ 10. Processing of Sold Products 65.2% 1,264,326 ◼ 11. Use of Sold Products 0.5% 9,637 ◼ 12. End-of-Life Treatment of Sold Products Emissions TYPE CO2e % OF TOTAL EMISSIONS Total CO2e Emissions Breakdown SCOPE 1, 2, 3 SCOPE 3
2024 SUSTAINABILITY REPORT Carbon Emissions Avoided 12 HANDPRINT Rubber Mulch (over useful life of 2024 production) 29,757 CO₂e Avoided Rubber Mats 181,824 CO₂e Avoided Asphalt Applications 102,031 CO₂e Avoided Tire-Derived Fuel 100,357 CO₂e Avoided Resold Tires 180,992 CO₂e Avoided Recovered Steel Wire 273,232 CO₂e Avoided CO₂e GENERATED TO CREATE OUR PRODUCTS* 349,388 CO₂e avoided through the use or application of our products** 868,193 *Includes Scope 1, Scope 2, Scope 3 Categories 3–9 **Handprint currently includes 77.36% of total volume sold. Our handprint (Scope 4) represents the positive environmental impact generated by recovering, recycling, and repurposing end-of-life tires. Our handprint quantifies the carbon emissions avoided when customers purchase Liberty’s recycled products and materials rather than those made from traditional virgin materials, emphasizing the environmental benefits of sustainable choices. Choosing products made from Liberty’s recycled materials instead of those made from virgin materials results in significantly reduced greenhouse gas emissions for our customers and consumers.
2024 SUSTAINABILITY REPORT Targeting Efficiency 13 Improving fuel efficiency by 20% by 2030 With a fleet of 538 trucks, fuel efficiency presents a key opportunity to reduce Scope 1 emissions and lower transportation costs. Since 2021, Liberty has focused on fleet efficiency, making progress in several areas, including driver safety—reflected in our Preventable Vehicle Accident Rate (PVAR) —route optimization, and improved fuel economy. In 2024, we refined our focus specifically on fuel efficiency by leveraging the technology available through the implementation of Samsara. Samsara is a fleet management platform that uses GPS tracking and telematics to monitor vehicle performance, fuel usage, and driver behavior. This fleet technology advancement enabled us to take our original goal—improving fleet efficiency by 30% by 2032—better defining it into a more actionable and high-impact target: improving fuel efficiency by 20% by 2030. We will measure the progress of this goal using miles per gallon (MPG). With Samsara providing updated MPG metrics, we now have more precise tracking and goal setting, allowing us to make data-driven improvements. To achieve this goal, we will prioritize idle time reduction, driver habit coaching, and route optimization. In 2024, Liberty took a major step in fuel efficiency by actively tracking and reducing idle time across our fleet. Through monthly tracking, targeted coaching, and one-on-one sessions with transportation managers, we reduced idle time by 7.78% over the course of 2024. This effort saved over 12,000 gallons of diesel, cutting costs and lowering emissions. The success of this initiative demonstrates the power of data-driven strategies and focused coaching in improving fleet performance. 2024: 6.86 MPG Goal 2030: 8.23 MPG FUEL EFFICIENCY HIGHLIGHTS
REDUCTION OVER TIME 2021 2022 2023 2024 ENERGY INTENSITY 2024 SUSTAINABILITY REPORT Targeting Efficiency 14 Reducing Energy Intensity by 25% by 2032 Liberty tracks energy intensity by collecting monthly energy consumption through our energy management platform and production data. Sites are evaluated by operational complexity to accurately benchmark production and identify best practices. By focusing on energy intensity rather than total consumption, we are able to better understand the ways we utilize energy in each of our distinct operations. Efficiency improvements are measured against our 2021 baseline production sites, accounting for the transition period needed to implement Liberty’s efficiency driven processes at newly onboarded facilities. Energy Intensity is measured by MMBtu / Production Tons. To continue making progress and achieve a 25% reduction in energy intensity by 2032, we will focus on implementing improvements recommended by third-party Industrial Assessment Center (IAC) audits and installing Manufacturing Execution Systems (MES) to allow for predictive analysis on critical machinery. Manufacturing Execution Systems Technology Liberty is implementing wireless sensors to monitor vibration and temperature on critical motors and drives. This predictive technology will help prevent premature equipment failure, reduce downtime, and minimize equipment disposal. Optimizing Energy Use Facility management is continuously looking for operational improvements that reduce energy usage. Opportunities such as better management of compressed air systems, leak identification, and converting legacy lighting to LED as bulbs burn out enhance sustainability and business efficiency. These improvements help by reducing energy intensity, lowering costs, and improving safety. In addition, the Industrial Assessment Center (IAC) audits continue to offer additional recommendations for energy savings and operational improvements. REDUCING ENERGY INTENSITY HIGHLIGHTS BASELINE 1.84% As a privately held company, Liberty does not publicly disclose production data. The graph reflects energy intensity improvements across our baseline sites from 2021 through 2024.
2024 SUSTAINABILITY REPORT Advanced Circularity 15 Liberty Tire Recycling is committed to 100% of tires collected entering an end-use market by 2030, eliminating landfill disposal. Progress is tracked by our utilization rate, measuring the percentage of tires processed into products versus disposal. Our strategy prioritizes shifting rubber from disposal into high-value recycling and reuse outlets. This drives rubber to the top of the product value chain and supports a reduction in Scope 3, Category 11 emissions (Use of Sold Products) by decreasing the volume of tires used as tire-derived fuel in cement manufacturing—a process that, while a sustainable alternative to coal, is more energy-intensive than other product applications. As we collect more tires year over year, we are continuously driven to expand end markets to keep pace with the growing volume. Taking into consideration the volume growth since our baseline year, we’ve still been able to improve utilization by 6.7%, keeping us on track to achieve Zero Waste by 2030. We are particularly proud of this improvement in our utilization rate given the dilutive impact that recent acquisitions have had on our utilization performance. At the time of acquisition in early 2024, Castle Tire disposed 67% of the volumes it collected into landfills. While this was dilutive to Liberty’s reported utilization rate in 2024, we see a clear path to improving the utilization in the Pacific Northwest marketplace and have actively been working on improvements. As the market leader in utilization of end-of-life tires, Liberty will continue to pursue business combinations that will allow us to increase the end-of-life tire beneficial reuse rate. ZERO WASTE BY 2030—100% OF TIRES WE COLLECT WILL ENTER END-USE MARKET 195,925,849 501,570 74.4% 205,817,489 419,380 78.4% ↑ 215,634,461 407,667 81.1% ↑ Total Tires Collected Passenger Tire Equivalents (PTEs) Total Disposal Volumes Metric Tons Utilization Rate % of Material going to Beneficial Reuse 2023 2022 2024 ZERO WASTE GOAL 0% 100% 81% PROGRESS REUSE RECYCLE MATERIAL RECOVERY ENERGY RECOVERY DISPOSAL Extend the life of tires by directing acceptable tires to the used tire market Process tires into crumb rubber to be used in new products in place of virgin materials Recover tires for use in civil engineering applications Supply recovered rubber as a more sustainable alternative fuel for energy generation Landfill disposal of product that cannot be used in the value chain or in areas where there are no market opportunities MOVING PRODUCT UP THE VALUE CHAIN
2024 SUSTAINABILITY REPORT 16 SUSTAINABILITY IN ACTION Our Sustainable Products
2024 SUSTAINABILITY REPORT Reuse Recycle 17 Used tires go through a rigorous evaluation process on tread depth and structural integrity to identify tires fit for resale. These tires are then wholesaled to industry partners for distribution, keeping tires in circulation until the end of their useful life, reducing waste, and lowering demand for new materials. Liberty remains focused on expanding the distribution and sales of our environmentally responsible material and products. This requires capital investment to grow our production capacity, close coordination with our existing customers to increase their adoption of our products, and support for early-stage businesses and technologies with the potential to become significant users of our recycled materials and sustainable solutions. Crumb rubber is a high-performance, high-value material that’s ideal for a wide range of applications. More than just a substitute for virgin materials, it often outperforms alternatives—making it a smart and sustainable choice. Rubberized asphalt blends recycled tire rubber with traditional asphalt, enhancing durability, flexibility, and sustainability. Used in highways, streets, and runways, it resists cracking, improves skid resistance, and reduces noise. SmartMIX™, Liberty Tire Recycling’s dry mix additive, simplifies recycled rubber integration without extra storage or equipment, extending road lifespan and boosting sustainability. Recovered tire wire is a strong, durable material that can be recycled repeatedly - helping customers reduce reliance on virgin resources, lower costs, and cut emissions. With high tensile strength, it supports construction, manufacturing, and automotive applications. USED TIRES Rubberized Asphalt Crumb Rubber Recovered Steel Wire Sports & Recreation – Enhances traction and durability in turf, tracks, and play surfaces. Molded Products – Used in a variety of products such as weight plates, floor mats, traffic safety devices, and in landscaping, lawn, and garden products. Roofing – Extends lifespan and boosts weather resistance. Pour-In-Place (PIP) Surfaces – RubberBond™ improves safety and durability for playgrounds, trails, and splash pads, re- purposing 14 lbs. of recycled tires per sq. ft. and expanding sustainable tire recycling.
2024 SUSTAINABILITY REPORT 18 Material Recovery Energy Recovery TDA is lightweight, durable, and highly permeable, making it ideal for road embankments, retaining walls, stormwater management, and landfill drainage. Its insulating and vibration-absorbing properties enhance seismic and transportation stability, while its drainage efficiency ensures long-term reliability. TDA reduces lateral earth pressure and lowers construction costs due to its lighter weight and easy handling. Tire-Derived Fuel (TDF) is produced by shredding scrap tires into a fuel source for industrial processes. TDF has been recognized by the U.S. Environmental Protection Agency (EPA) as a viable fossil fuel alternative, providing both environmental and economic benefits. With a higher heating value than coal, TDF generates 25% more energy per ton, allowing facilities to achieve the same output with less fuel input.2 Additionally, the EPA has indicated that TDF combustion ash may contain lower levels of heavy metals than some coals and can result in reduced nitrogen oxide (NOₓ) emissions, particularly when compared to high-sulfur coal.2 It's important to note that TDF does not contain mercury, and TDF use can lead to decreased nitrogen oxide (NOₓ) emissions, especially when compared to high-sulfur coal and petroleum coke.2 TDF also plays a key role in scrap tire management, with 33% of end-oflife tires in the U.S. repurposed as TDF in 2023.3 Its use helps reduce landfill waste, mitigate tire stockpile hazards, and conserve landfill space.3 While TDF contributes to Scope 3 emissions, its footprint is often lower than that of traditional fossil fuels. The EPA has expressed support for responsible TDF use when industrial facilities implement proper storage, handling, and regulatory compliance measures.2 Liberty remains committed to moving recycled material up the value chain but recognizes that TDF is a more sustainable alternative to conventional fossil fuels and landfilling, improving energy efficiency, waste management, and environmental conservation. Tire-Derived Aggregate (TDA) Tire-Derived Fuel (TDF)
2024 SUSTAINABILITY REPORT Certifications 19 Learn more about our products & brands: OUR BRANDS → RECYCLED TIRE PRODUCTS → The Recycled Claim Standard is an international, voluntary standard for recycled content. Liberty Tire Recycling is certified to the Recycled Claim Standard (RCS) Version 2.0, which certifies and tracks our recycled material from source to final product for supply chain transparency.4 We maintain IPEMA certification at both the corporate and site level for shredded and nugget rubber mulch. The International Play Equipment Manufacturers Association (IPEMA) certifies materials that meet ASTM safety and quality standards for impact attenuation, ensuring safer playground and landscaping applications. Recycled Claim Standard Crumb Rubber IPEMA Certification Rubber Mulch
2024 SUSTAINABILITY REPORT 20 SUSTAINABILITY IN ACTION Valuing & Investing In Our Team
2024 SUSTAINABILITY REPORT We are committed to hiring top talent from diverse backgrounds, recognizing that different perspectives drive innovation, teamwork, and problem-solving. We value both seasoned professionals and emerging talent, maintaining a balanced workforce with a strong pipeline of next-generation leaders. Employee Demographics Full-Time Equivalent (FTE) and Subcontractors Total Employees 3570 21 % MANAGEMENT RACE / ETHNICITY GENDER ◼ Male ◼ Female % TOTAL WORKFORCE 90.4% 9.6% 78.3% 21.7% AGE Under 30 30—50 Over 50 70% 80% 90% 100% 20% 30% 40% 50% 60% 0% 10% 19% 55% 26% 2024 ◼ American Indian 0.5% ◼ Asian 0.5% ◼ Black or African American 11.9% ◼ Hispanic 48.6% ◼ Pacific Islander 0.3% ◼ Two or more races 1.8% ◼ Unknown 6.8% ◼ White 29.6%
2024 SUSTAINABILITY REPORT 22 Liberty Cares Team Liberty Vision Liberty Cares, an employee-led group founded in 2022, drives engagement, wellness, and community outreach. Now 30+ members strong across 14 locations, it bridges communication between employees and site management. Its growth in 2024 reflects Liberty’s commitment to connection, well-being, and community impact. Liberty Vision is our digital signage platform that keeps employees informed with realtime updates, including safety alerts, company announcements, and employee recognition. It also reduces the need for printed material. In 2024, we made significant progress in rolling out Liberty Vision, with a target to have all facilities online in their break rooms by April of 2025. Employee Survey Performance Reviews Leadership Programs Our annual employee survey provides valuable insights that guide company strategy for employee engagement, workplace culture, and strategic planning. In 2024, 99% of employees took part in a performance review with their supervisor. These conversations offer a chance for both employees and managers to share feedback, align on goals, and discuss growth opportunities. Many of our facilities offer programs to support employee growth and provide cross-training opportunities. The Liberty Leaders Playbook outlines key leadership qualities and steps to develop a leadership program. Engaging & Developing Our Employees Through implementing programs and strategies focused on communication, development, and engagement, Liberty continues to strengthen connections across teams and support employee growth at every level. AvG. Training Per Employee in 2024 31.75 hRS EMPLOYEE TURNOVER (2022—2024) 2022 2023 2024 60% 40% 20% 61% 51% 45%
2024 SUSTAINABILITY REPORT Prioritizing Employee Well-Being 23 Full-time employees at all locations of operations have access to all our benefits including Health, Pharmacy, Health Savings Account, Flex Spending Accounts, Dental, Vision, Accident, Critical Illness, Hospital Indemnity, Basic and Voluntary Life, Accidental Death, Long Term Disability, Short Term Disability, 401k, and Employee Assistance Program. Part-time employees have access to the 401k program. Company-Paid Benefits Life Insurance Accidental Death and Dismemberment (AD&D) Insurance Long-Term Disability Insurance Employee Assistance Program Cost-Shared Benefits Voluntary Benefits Three Medical Plan Options, including free programs for qualifying members Tobacco Cessation Program Pharmacy Advocate Program Virtual Physical Therapy Program Mental Well-Being Program Diabetes Prevention Program Two Dental Plan Options Vision Insurance Health Savings Account (HSA) Health Flexible Spending Account (FSA) Dependent Care Flexible Spending Account Voluntary Life and AD&D Insurance (for employees, spouses, and children) Accident Insurance Critical Illness Insurance Hospital Indemnity Insurance 401(k) w/ Employer Match EMPLOYEE BENEFITS Step Challenge: A Win for Health & Teamwork Wellness Wednesdays: Employee-Led Health Series Plan for Health: Monthly Wellness Resources In 2024, our first Step Challenge engaged 51 facilities with 40% employee participation. Employees, including leadership, tracked over 350 million steps using free activity trackers and a digital platform, fostering wellness and friendly competition. Launched in Q4 2024, this six-month video series featured real employees sharing tips on sleep, stress, and nutrition. Available in English and Spanish via Liberty Vision and text, it promoted healthier lifestyles at work and home. Our monthly newsletters, in English and Spanish, offer tips on safety, mental health, and wellness. With insights on mindfulness and work-life balance, they support lasting healthy habits. Employees are encouraged to share with family members as well. We offer wellness programs as part of our commitment to supporting employees both at work and beyond. We recognize that a healthy workforce lowers healthcare costs for employees, reduces business insurance expenses, boosts productivity, enhances teamwork, and supports long-term business sustainability.
2024 SUSTAINABILITY REPORT Our Top Priority: Safety 24 Our top priority is ensuring every employee returns home safely each day. With operations spanning manufacturing, manual labor, and fleet management, our structured safety program is led by the Safety Director, supported by corporate and site teams. The Fleet Safety Manager oversees compliance and risk reduction, while Site Managers and Regional Vice Presidents ensure safety compliance and program execution. Progress is tracked through monthly reports, with annual safety targets set for PVARs, OSHA Recordables, and Lost Time Injuries. Leadership accountability is reinforced through management bonuses tied to safety performance. 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL RECORDABLE INCIDENT RATE (TRIR) LOST TIME INCIDENT RATE (LTIR) PREVENTABLE VEHICLE ACCIDENT RATE (PVAR) Total Recordable Incident Rate (TRIR) Lost Time Injury Rate (LTIR) Preventable Vehicle Accident Rate (PVAR) 3.04 0.72 0.79 2021 2.37 0.59 1.19 2020 3.24 0.49 1.11 2022 3.10 0.40 1.06 2023 2.36 0.55 0.75 2024 SAFETY RATES Safety Training 27.7 HRS / EMPLOYEE Zero OSHA Recordables 55% of facilities Fatalities 0 Near-Miss Rate 3.07 Hours worked 8,651,089 BY THE NUMBERS
2024 SUSTAINABILITY REPORT Facility Safety 25 Preventing incidents before they occur is the foundation of Liberty Tire Recycling’s safety approach. Through structured training, hazard identification, and employee engagement, we equip our workforce with the knowledge and resources needed to recognize risks and maintain a secure working environment. However, when incidents do occur, we prioritize a structured response, identifying root causes, implementing corrective actions, and continuously improving our safety programs to strengthen workplace culture. Operational Safety Excellence (OSE) Team Established in 2024, the OSE team was established to standardize safety practices and enhance performance across all sites. The team focuses on hazard assessment, execution, communication, and safety tools, with oversight from Safety Director, Mike Herbert. Site leaders also have access to a wide variety of key resources online via a corporate intranet. Incident Response, Learning, & Continuous Improvement 5-Why Hazard Analysis Site managers conduct root cause analysis after an incident and implement corrective actions. Site Stand-Downs Monthly site-wide safety training, with additional stand-downs after major incidents. Incident Follow-Up Management meets with employees post-incident to discuss causes and identify improvements. Friday Safety Incident Review Calls General Managers present incident reports, root cause analysis, and corrective actions. Incident Tracker Tracks OSHA recordable incidents, assigns safety managers, and ensures corrective actions are implemented. Ortholive Healthcare Access Free access to licensed medical professionals for workplace injuries, available in English and Spanish. Stop Work Authority Employees can halt work if unsafe conditions arise, with no fear of retaliation. 5-Minute Safety Talks Daily site-specific discussions led by General Managers, reinforcing key safety practices with attendance tracked. Work Hardening Programs Increasing new employees’ workload gradually helps them adjust to physically demanding tasks & reduce injury risk. Recognition of Safe Behavior Safety performance is tied to management incentives, reinforcing leadership accountability. Safety Suggestion Boxes Employees can submit safety improvement ideas which are reviewed monthly. Anonymous Safety Surveys Conducted every two years to gather employee feedback, identify trends, & improve safety measures. Safety Improvement Teams Management and frontline employees at sites with over 50 employees meet monthly to review training and identify hazards. Smaller sites integrate safety discussions into daily management meetings Non-Routine Work Analysis Site management assesses lighting, PPE, and employee qualifications before beginning non-routine tasks. Stretch & Flex Program Conducted after daily safety talks to reduce soft tissue injuries, addressing common strains & sprains. Near Miss Reporting Employees report potential hazards anonymously, categorized as red (stop work), yellow (caution), or green (continue work). Contractor Safety Video Covers PPE, emergency procedures, and hazard reporting; includes assessments and is available in English and Spanish. Liberty Learning Training Safety training covers hazards, equipment use, emergency readiness, and risk prevention. Safety Manual Updated in 2024, the safety manual provides guidelines for safe operations, incident reporting, and emergency response. Contractor Safety Briefings Pre-work safety briefings ensure contractor compliance with sitespecific safety requirements.
2024 SUSTAINABILITY REPORT Fleet Safety 26 Advancing with Technology & Training In 2024, we continued to prioritize fleet safety by expanding the rollout of Samsara cameras across our fleet. By the end of the year, we had over 350 active camera units installed, further enhancing our ability to monitor and improve driver behavior. Additionally, we began leveraging Samsara's cutting-edge Artificial Intelligence (AI) technology, which is helping to shape our upcoming driver safety incentive program. This AI integration enables in-cab alerts, automated coaching, and more personalized safety interventions, giving us the tools to proactively manage and enhance driver performance. Alongside the introduction of this advanced technology, we also maintained and expanded on the safety initiatives launched in previous years. These included: Monthly safety communications to keep safety top-of-mind. A more robust Driver Appreciation Week, celebrating and recognizing the hard work of our drivers. Enhanced driver pre-hire training to ensure every new driver enters the fleet with the skills and knowledge they need for success. 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2017 2018 2019 2020 2021 2022 2023 2024 Transformative Change: Accident Rate Reduced by 80.5% 3.83 4.29 1.19 0.79 1.11 1.06 0.75 80.5% 3.59
2024 SUSTAINABILITY REPORT 27 SUSTAINABILITY IN ACTION Supporting Communities Where We Live & Work
2024 SUSTAINABILITY REPORT 28 Support By The Numbers $150,726 in Charitable Contributions 75+ local impact projects completed tires collected from clean-up & amnesty efforts 31,154METRIC TONS $87,000 raised for Blessings in a Backpack We’re committed to creating lasting impact through both company-wide initiatives and local site efforts. From tire cleanups and volunteer work to financial and in-kind donations, Liberty and our employees give their time and resources to strengthen the communities they call home. Strong communities build strong businesses—and we’re proud to invest in both.
2024 SUSTAINABILITY REPORT Liberty Cares Inaugural Golf Tournament 29 This year, Liberty Tire Recycling partnered with Blessings in a Backpack to combat childhood hunger. This collaboration was inspired by a company-wide survey revealing employees' strong desire to support charities focused on children and hunger relief—two causes central to Blessings in a Backpack's mission. The nonprofit mobilizes communities, individuals, and resources to provide weekend meals for school-aged children across America who face food insecurity through discretely providing meals to students in their backpacks. To support this initiative, we hosted our inaugural Liberty Cares Charity Golf Tournament, bringing together suppliers, supporters, and employees. Through sponsorships and participation, the event successfully raised over $87,000 for Blessings in a Backpack. Half of the proceeds were allocated to the nonprofit's strategic growth, enhancing its capacity to reach more children in need. The remaining funds were used to purchase and transport food for six packing events held at Liberty facilities, where employees came together to assemble a total of 5,250 weekend meal bags for children. To learn more about Blessings in a Backpack, visit their website: BLESSINGS IN A BACKPACK → Additionally, we organized a company-wide lunch-andlearns to educate employees about Blessings in a Backpack's mission and how food insecurity affects children. During these sessions, employees wrote child-friendly, encouraging notes to include in the backpacks, adding a personal touch to brighten students' weekends. This partnership exemplifies our commitment to community engagement and making a meaningful difference in the lives of children facing food insecurity. SUPPORTING COMMUNITIES
2024 SUSTAINABILITY REPORT 30 Earth Day Neighborhood Forest Partnering with Bridgestone Playground Projects Annual Giving Back Campaign To celebrate Earth Day in 2024, we partnered with Neighborhood Forest, a non-profit that helps distribute free trees to children. Liberty Tire Recycling remains dedicated to sustainability and community engagement. Each year, Liberty Tire Recycling supports families in need through the Giving Back program. In 2024, we continued our partnership with Bridgestone Americas and other local Nashville organizations, donating recycled products to help build and revitalize community playgrounds, promoting environmental responsibility and safe play spaces. Through this on-going partnership, Liberty has donated over 60,000 pounds of recycled products to support local communities. Each of our facilities selects a family in their community that could use extra support during the holiday season. To kick-start the initiative, Liberty provides each site with a $250 gift card for their chosen family, and employees have an opportunity to contribute additional donations if they choose. These combined efforts help provide essentials and gifts, bringing much-needed support to local families. In 2024, Liberty employees raised over $45,000 to give back to local communities, demonstrating the power of compassion and generosity. Liberty was also recognized by Walmart during its Earth Day promotions, which highlighted our products as a way to “make sustainable choices easy, accessible, and affordable” for customers. Together, we donated 1,800 trees to schools in Salt Lake City, UT, and Port St. Lucie, FL, encouraging students to plant and care for their own trees. Liberty employees also led Earth Day presentations, sharing a kid-friendly story about tire recycling and introducing students to sustainability. Through tree donations and recycling education, our employees helped inspire the next generation of environmental stewards.
2024 SUSTAINABILITY REPORT 31 SUSTAINABILITY IN ACTION Operating Responsibly
2024 SUSTAINABILITY REPORT Principled Governance 32 All employees receive a written copy of the Code of Conduct during onboarding, which includes anti-corruption provisions and is accessible via the intranet. Employees in leadership, management, sales, and other key roles complete annual Code of Conduct training. The Code of Conduct is reviewed annually, and managers must attest to compliance. Leadership is required to act ethically and report misconduct. Liberty upholds human rights protections through its AntiHuman Trafficking Policy and Supplier Code of Conduct. Our policies encourage prompt reporting of unethical behavior through supervisors, HR, an anonymous Ethics & Compliance Hotline, or the public website. Liberty enforces a strict nonretaliation policy. The Harassment Investigation Guide is available to assist leadership in handling claims. In-house counsel ensures compliance with policies and regulations, and laws, reinforcing ethical conduct company-wide. Code of conduct Key Topics Fair Dealing Fair Wages Compliance with Laws, Rules, & Regulations Anti-Corruption & Bribery Workplace Safety & Violence Prevention Discrimination & Harassment Ethical DecisionMaking Antitrust & Fair Competition Honest Advertising & Marketing Liberty is committed to the highest ethical standards and enforces policies to support ethical business practices and human rights protections.
2024 SUSTAINABILITY REPORT Cybersecurity 33 Cybersecurity is a top priority for Liberty, as such, we have deployed a proactive approach to protecting systems, data, and operations. Overseen by our Chief Information Officer (CIO), Liberty actively maintains an Incident Response Plan, reviewed annually. Systems are classified by business impact to align recovery and response times with business criticality. In 2024, Liberty conducted four cybersecurity tests—one internal vulnerability test and three external penetration tests—resolving all critical vulnerabilities. Cyber risks are managed through Information Technology Infrastructure Library (ITIL) problem management, with bi-monthly risk reviews. All vulnerabilities are entered as problems and tracked until a resolution has been confirmed. In 2024, we partnered with Ontinue as our 24/7 Security Operations Center (SOC), which monitors threats and possible incidents. This resulted in zero data breaches in 2024. Knowing that employees are the front line in any cybersecurity attack. Employee awareness remains a priority, with quarterly phishing tests and more than 400 hours of cybersecurity training completed in 2024. The foundation for the training is a strong framework of cybersecurity policies, accessible via the intranet, covering everything from incident response and data classification to acceptable use guidelines and business continuity planning. These policies provide clear guidance on handling security incidents, protecting sensitive data, and ensuring business resilience. Sustainable Procurement Liberty conducts annual supplier surveys to assess risks and ensure alignment with sustainable vendors. The process begins by identifying suppliers above a specific spend threshold. This process focuses on direct material suppliers due to potential supply chain disruptions, manufacturing and logistics suppliers which contribute largely to Scope 3 emissions, waste disposal providers to address environmental compliance risks, laborintensive subcontractors due to human rights concerns, and suppliers headquartered outside the U.S. and Canada due to potential supply chain interruptions. Key suppliers receive surveys, including a request for a signed Supplier Code of Conduct, available on our website. The surveys collect data on social factors such as minority business ownership and human rights policies, environmental practices including emissions, water usage, and waste disposal, and governance topics related to sustainable supply chain management. Increased supplier engagement, with more responses to the supplier survey than in previous years Minority-owned suppliers increased by 150% when compared to responses from 2023 70% of suppliers that responded reported providing regular health, safety, and environmental training to employees 71% of suppliers that responded reported having at least one policy related to sustainability topics BY THE NUMBERS Data is based on suppliers that responded to the 2024 survey.
2024 SUSTAINABILITY REPORT Climate Resilience 34 Risk Analysis Physical Risks Climate change and extreme weather events pose a risk to our operations and to the health and well-being of our employees. Regulatory Risks Disruptions caused by extreme weather could temporarily impact our ability to meet regulatory requirements, including those outlined in operating and environmental permits. Operational Risks Severe weather events may result in production interruptions if sites are unable to operate, or cause supply chain disruptions that delay the collection of inbound tires or the distribution of outbound products. Additionally, significant losses from climate-related events could impact our ability to secure insurance coverage in the future. Financial Implications Extreme weather events may lead to costly repairs to operating sites and equipment, as well as additional expenses to manage business interruptions. Delays in tire collection, production, or outbound shipments could result in revenue loss. Insurance premiums may also increase due to higher loss frequency and severity. As part of our annual insurance renewal process, Natural Catastrophe (CAT) modeling is conducted to assess extreme weather risks and determine the probability of impact to Liberty Tire Recycling’s sites and operations. The results of this modeling informs our insurance strategy, helping us determine appropriate coverage levels and assess the need for additional Earthquake or Flood insurance. Property insurance plays a critical role in protecting the company from financial loss due to weather-related business interruptions and damage to property and equipment. We have initiated the development of a state-of-the-art Enterprise Risk Management Framework to enhance our approach to identifying, assessing, and mitigating climate-related risks. Annual Risk Assessments We conduct CAT modeling and loss analytics annually to evaluate our exposure and determine appropriate insurance coverage. Operational management is informed of identified risks to ensure preparedness. Insurance Strategy We maintain Property, Earthquake, and Flood insurance coverage, transferring financial risk associated with covered losses. Risk Prevention Investments We allocate capital expenditures toward risk mitigation measures, such as fire prevention and maintenance, to minimize potential damages. Future Planning We are developing systems to better calculate the financial implications of climate risks, allowing us to make more informed revenue projections and enhance our resilience to extreme weather events. Risk Mitigation & Management
2024 SUSTAINABILITY REPORT 35 SUSTAINABILITY IN ACTION Appendix
2024 SUSTAINABILITY REPORT 36 SUSTAINABILITY IN ACTION Global Reporting Initiative (GRI) Content Index
2024 SUSTAINABILITY REPORT 37 GRI STANDARD DISCLOSURE LOCATION GRI Standards Used: GRI 1: Foundation 2021 Liberty Tire Recycling has reported the information cited in this GRI content index for the period 1/1/2024 – 12/31/2024 with reference to the GRI Standards. GRI 2: General Disclosures 2021 2-1 Organizational details INTRODUCTION 2-2 Entities included in the organization’s sustainability reporting INTRODUCTION 2-3 Reporting period, frequency and contact point INTRODUCTION 2-4 Restatements of information No data corrections were restated from the 2023 to 2024 sustainability reports. 2-5 External assurance INTRODUCTION 2-6 Activities, value chain and other business relationships INTRODUCTION 2-7 Employees VALUING & INVESTING IN OUR TEAM Subcontractors: 330 2-8 Workers who are not employees VALUING & INVESTING IN OUR TEAM 2-9 Governance structure and composition Liberty Tire Recycling operates under ECP’s seven-member Board of Directors. 2-11 Chair of the highest governance body Our Board of Directors is chaired by Tyler Reeder, Managing Partner at Energy Capital Partners (ECP), the Company’s owner. 2-12 Role of the highest governance body in overseeing the management of impacts INTRODUCTION 2-13 Delegation of responsibility for managing impacts INTRODUCTION 2-14 Role of the highest governance body in sustainability reporting INTRODUCTION 2-15 Conflicts of interest OPERATING RESPONSIBLY
2024 SUSTAINABILITY REPORT 38 2-13 Delegation of responsibility for managing impacts INTRODUCTION GRI STANDARD DISCLOSURE LOCATION 2-14 Role of the highest governance body in sustainability reporting INTRODUCTION 2-15 Conflicts of interest OPERATING RESPONSIBLY 2-17 Collective knowledge of the highest governance body Liberty reports sustainability metrics to the Board of Directors on the same cadence as financial metrics, ensuring timely communication and transparency on sustainability-related topics. Our executive team reviews annual feedback from the board on our sustainability practices to support continuous education and improvement. 2-22 Statement on sustainable development strategy INTRODUCTION 2-23 Policy commitments OPERATING RESPONSIBLY 2-24 Embedding policy commitments OPERATING RESPONSIBLY 2-25 Processes to remediate negative impacts OPERATING RESPONSIBLY 2-26 Mechanisms for seeking advice and raising concerns OPERATING RESPONSIBLY 2-28 Membership associations NATIONAL ASSOCIATIONS Air and Waste Management Association (AWMA) American Iron and Steel Institute (AISI) American Sports Builders Association (ASBA) National Asphalt Pavement Association (NAPA) National Private Truck Council (NPTC) National Road Research Alliance (NRRA) National Safety Council Recycled Materials Association (ReMA), formerly known as the Institute of Scrap Recycling Industries (ISRI) Recycled Rubber Coalition (RRC) Solid Waste Association of North America (SWANA) GRI 2: General Disclosures 2021 (cont.)
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