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%
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