2023 EMPOWERING SUSTAINABILITY From Vision to Action
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 2 TABLE OF CONTENTS CEO Letter............................................................. 3 2023 Highlights..................................................... 4 About Liberty Tire Recycling................................... 5 ESG at Liberty Tire Recycling................................ 11 Our Company ESG Goals...................................... 15 Engaging People & Communities.......................... 19 Accelerating Environmental Stewardship............. 35 Advancing Sustainable Products..........................46 Operating Responsibly......................................... 51 Conclusion........................................................... 58 UNSDG Alignment................................................ 59 GRI Content Index................................................60 SASB Index...........................................................66
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 3 CEO LETTER Dear Stakeholders, Published: August, 2024 As we navigate the dynamic landscape of modern business, it is with great pride and enthusiasm that I present to you our annual Environmental, Social, and Governance (ESG) report. This report is a testament to our unwavering commitment to sustainable practices, ethical conduct, and transparent communication with all our stakeholders. At the heart of our ESG efforts lies a profound dedication to the principle of Zero Waste. It is not merely a goal; it is a philosophy that permeates every aspect of our operations. We are steadfast in our mission to find beneficial reuses for all tires, eliminating waste from our processes and maximizing resource efficiency. Through innovative technologies and strategic partnerships, we have made significant strides in this regard, and we remain steadfast in our pursuit of even greater achievements. Our commitment to Zero Waste is not an isolated endeavor but is intricately linked with our broader sustainability goals. We are pleased to report substantial progress towards these objectives, with measurable improvements in waste reduction, resource conservation, and carbon footprint reduction. These achievements underscore our dedication to creating a more sustainable future for generations to come. Central to our ESG agenda is the paramount importance of safety. We recognize that the well-being of our employees, customers, and communities is non-negotiable. Through robust safety protocols, continuous training, and a culture of vigilance, we have maintained an exemplary safety record, ensuring that everyone who interacts with our business does so with confidence and peace of mind. Furthermore, our ESG maturity extends beyond our internal operations to encompass our entire value chain. We actively engage with suppliers, partners, and stakeholders to foster a culture of responsibility and accountability throughout the industry. By promoting transparency and collaboration, we seek to drive positive change and set new benchmarks for sustainable business practices. I am also excited to announce the addition of Patrick Ryan, Chief Strategy Officer and Andrew Meurer, President and Chief Commercial Officer in 2023. Their expertise, understanding of industry expectations, and passion for sustainability will undoubtedly bolster our ESG initiatives and propel us towards even greater achievements. With their leadership, we are poised to chart new frontiers and redefine the boundaries of the tire recycling business. In closing, I extend my sincerest gratitude to the Liberty Team and our stakeholders for their unwavering support and partnership on this transformative journey. Together, we will continue to lead by example, demonstrating that profitability and sustainability are not mutually exclusive but rather complementary facets of a successful business. Thank you for your continued trust in Liberty Tire Recycling. Sincerely, THOMAS WOMBLE CEO Liberty Tire Recycling is leading the industry by Driving a Greener Tomorrow.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 4 Corporate Highlights Years In Business 24 Number of Employees 3,513 Number of Customers 53,355 Locations Across North America 56 (50 facilities, 6 offices) States/Provinces/Territories of Operation 54 Headquarters Pittsburgh, PA Number of Brands 16 ESG Highlights Tires Collected 205,817,489 End Market Utilization (% of tires used) 78.4% Hours of Employee Training 92,591 % of Women in Leadership 22% Community Service 544 Cleanups Site-level Goals Recycling Energy Efficiency Community Outreach CPR/AED Training Scope 1 & 2 GHG Emissions 106,512 CO2-e Metric Tons 2023 HIGHLIGHTS ZERO WASTE GOAL 100% of tires collected enter end use markets by 2030
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 5 ABOUT LIBERTY TIRE RECYCLING Who We Are Liberty Tire Recycling, a privately held company and North America’s leading tire recycler, transforms billions of pounds of waste tires into a valuable commodity by offering comprehensive end-of-life tire management solutions to tire manufacturers, retailers, and state and local governments. We are leading the charge in sustainable tire solutions, pioneering new methods to reclaim, reuse, and recycle over 205 million tires annually and reshaping the tire industry’s environmental footprint. Our Mission Liberty Tire Recycling is committed to providing world class service and finding new and innovative ways to reclaim, recycle, and reuse end-of-life tires—in support of a sustainable and growing economy and for the long-term health of our planet. Our Vision To create a more sustainable and resilient future that respects the environment and protects the health and safety of our people and communities. Our Values Safety: We are committed to sending everyone home safely, 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 do the right thing. We say what we’re going to do and we do what we say. Innovation: We take the initiative to see and act on opportunities to continually improve the organization. Teamwork: We work together in the best interests of our customers, communities, employees, and company. Sustainable Value Creation: We recognize that creating value for our customers drives our success.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 6 ABOUT LIBERTY TIRE RECYCLING What We Do Our operations fall into four categories. Tire Collections Liberty Tire Recycling’s extensive network of collection operations and 41 strategically located manufacturing and processing plants across North America has allowed us to collect all types of end-of-life tires from over 37,400 retail partners. Over the past decade, we have diverted over 1.63 billion tires from landfills, and we continue to forge new partnerships to expand our recycling impact. Manufacturing & Retail Services Liberty Tire Recycling’s recycled rubber products reach consumers and businesses through a vast network of over 15,000 retail and commercial locations across North America, including all major home improvement retailers and online platforms. Our diverse portfolio of over 100 products demonstrates our commitment to innovation and sustainability. We actively collaborate with our partners to identify new opportunities for incorporating recycled rubber into existing products. Community Services Liberty Tire Recycling actively collaborates with state and local governments, communities, nonprofits, and private entities to remediate abandoned or illegal tire piles. Over the past thirteen years, we have partnered in thousands of events to collect tens of millions of tires across North America. In 2023 alone, we participated in over 500 cleanup events, including tire amnesty days, diverting countless tires from landfills and illegal dumping. Tire Processing & Recycling Our 41 advanced processing plants transform end-of-life tires into valuable raw materials, including crumb rubber, recycled rubber feedstock, tire-derived aggregate (TDA), and tire-derived fuel (TDF), which are widely used in infrastructure and industrial applications.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 7 ABOUT LIBERTY TIRE RECYCLING Where We Operate Liberty currently operates 56 locations, providing services in all 50 states and two Canadian provinces across North America. Corporate Headquarters: 1 • Collection / Processing Facilities: 34 • Collections Facilities / Transfer Stations: 9 • Mulch & Molded Goods Facilities: 7 • Regional / Administrative Offices: 5 Company Growth In 2023, we made strategic acquisitions, invested in new facilities, and expanded processing capabilities to meet growing demand and enhance sustainability across the country: New Facility: We built a state-of-theart recycled rubber mulch facility in Hebron, Ohio with 60,000 square feet for production and an additional 70,000 square feet for storage and shipping that began producing products in 2023. New Acquisitions: We acquired two new operations in the fast-growing Central Florida market that will allow Liberty to optimize our collection routes, reduce fuel consumption and lower emissions, and to keep more end-of-life tires out of landfills. Expanded Processing: Our Jackson, Georgia facility was upgraded with advanced processing equipment, increasing our capacity to transform scrap tires into valuable crumb rubber for various applications include sports surfacing, industrial mats, flooring and other molded products. Future Expansions: We broke ground on a new facility in Puyallup, Washington to better serve existing customers and expand into new markets in the region with operations beginning in early 2024. Improved Service Levels: Our commitment to operational excellence and timely service is evident in the substantial growth of our fleet. Our driver count grew by 32% from 2021 to 2023, underscoring our dedication to efficient customer service. As we continue to expand our fleet, we remain committed to incorporating sustainability measures, detailed later in this report. This ongoing investment in our fleet and infrastructure reinforces our position as the industry leader in tire recycling.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 8 ABOUT LIBERTY TIRE RECYCLING IMC Outdoor Living, BAS and Western Rubber Products are all DBAs of Liberty Tire Recycling The Liberty Family of Products and Brands
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 9 ABOUT LIBERTY TIRE RECYCLING Access-A-Mat™ Aquabond™ Decktop™ Equitile™ Geneflex™ Genesis™ Groundsmart® Kid-Kushion™ Lasting Beauty® NuPlay® NuScape® Playsafer™ Rubberbond™ Rubberific® SmartMix™ Sportplay™ The Liberty Brands
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 10 ABOUT LIBERTY TIRE RECYCLING What is Crumb Rubber? Crumb rubber is a versatile category of recycled rubber particle sizes and finds applications in surfacing, molded products, and various industrial uses. Due to its adaptability, crumb rubber is considered one of the most valuable forms of recycled rubber. At Liberty Tire Recycling, we not only utilize crumb rubber in our own products but also supply it as a feedstock material to other manufacturers, contractors, and installers. Liberty Tire Recycling and our family of companies span the scope of the recycling industry from premium tire collection services to the manufacture of innovative products made from recycled rubber. Our innovative recycled rubber products replace virgin materials in countless applications, including: Rubberized Asphalt ` Traditional rubberized asphalt (RMA) applications ` SmartMIX™ dry mix asphalt additive 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 Tire-derived Fuel ` Industrial and power boilers ` Paper and steel mills ` Cement kilns Commercial Products ` Surfacing – rubber mulch, pavers, tiles, pour-in-place ` Playground – swing mats, borders ` Landscaping – rubber mulch, edging, pavers, tree rings, splash blocks
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 11 Our ESG Journey Liberty Tire Recycling started externally reporting our ESG efforts in 2021, leading our industry in a critical path towards transparency. Each year, we’ve continued to expand on our reporting capabilities, educate our employees and integrate sustainability into our day-to-day operations and decision-making. We know this is a journey, and it’s one we are proud to be on. Completed a Materiality Assessment Calculated Scope 1 and 2 Created a Handprint model Named Senior Vice President of Sustainability Published Inaugural ESG Report Joined Walmart’s Project Gigaton Announced our Zero Waste Goal Began reporting to GRI and SASB Calculated our full Scope 3 Emissions Expanded Sustainability Team Established Liberty Cares Community Outreach Team Implemented Site Level Sustainability Goals 2020 2021 2022 2023 ESG AT LIBERTY TIRE RECYCLING Our Approach to ESG At Liberty Tire Recycling, sustainability is ingrained in our business model. We prioritize doing right by people and the planet while leading the tire recycling industry. Embracing ESG principles enhances our reputation, operational efficiency, and stakeholder trust, driving long-term success and positive environmental impact. This year marks a significant milestone as ESG considerations have been fully integrated into our business model, fostering growth and progress toward defined, long-term sustainability goals. Our Senior Management Team now leads ESG priorities, ensuring their integration into strategic planning and decision-making. Our Senior Vice President of Sustainability, supported by the ESG Coordinator, is responsible for developing and implementing crossfunctional sustainable strategies and fostering site-level engagement.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 12 ESG AT LIBERTY TIRE RECYCLING Material Topics Engaging People & Communities Accelerating Environmental Stewardship Advancing Sustainable Products Operating Responsibly Importance of Issues to Our Stakeholders Importance of Issues to Our Business Low Low High High 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
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 13 ESG AT LIBERTY TIRE RECYCLING Stakeholder Communication At Liberty Tire Recycling, we recognize the importance of transparent communication as our sustainability efforts evolve. Our Senior Vice President of Sustainability leads the charge in sharing our ESG goals and progress both internally and externally. Internal Communication To keep our employees informed and engaged, we utilize a multi-channel approach. Weekly leadership calls, led by our CEO, ensure alignment on company vision, ESG goals, and operational strategies. Monthly newsletters, text messages, and bilingual posters (English and Spanish) provide regular updates on company news, achievements, and ESG initiatives. Site-level meetings foster a culture of inclusion, enabling all employees to contribute to our ongoing progress. Community and Customer Engagement We actively engage with local communities through regular communication with leaders, participation in community meetings, and support for cleanups and tire amnesty days. We also keep our customers informed about our sustainability efforts through direct communication, reporting, and face-to-face meetings. This ongoing collaboration helps define our strategic priorities and creates mutually beneficial growth opportunities. Executive and Investor Communication We provide bi-weekly ESG updates to our Executive Team and quarterly reports to our Board of Directors and our private equity owners, Energy Capital Partners (ECP). This ensures that ESG priorities remain central to our operations. ECP’s annual comprehensive review of our sustainability performance reinforces our commitment to continuous improvement and long-term adherence to ESG principles. These communication channels allow us to share our progress, address challenges, and collaborate on future strategies, ensuring our investors are informed and engaged. By fostering transparent communication with all stakeholders, Liberty Tire Recycling strives to build trust, collaboration, and a shared commitment to sustainability. Industry Associations and Memberships Liberty Tire Recycling actively participates in numerous national and local trade associations, reflecting the breadth of our business. We encourage employee engagement in industry organizations that are relevant to our operations. National Air and Waste Management Association (AWMA) American Sports Builders Association (ASBA) American Iron and Steel Institute (AISI) National Asphalt Pavement Association (NAPA) National Private Truck Council (NPTC) National Road Research Alliance (NRRA) 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) Synthetic Turf Council (STC) Tire and Rubber Association of Canada (TRAC) Tire Industry Association (TIA) Regional Eastern States Blast Furnace and Coke Association Southeast Recycling Development Council (SERDC)
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 14 ESG AT LIBERTY TIRE RECYCLING Driving ESG Responsibility into Our Business Sustainability Integration At Liberty Tire Recycling, sustainability is not just an aspiration but a core element of our operations. We’re driving change through enhanced internal communication, integrating sustainability goals into daily operations, and empowering our team to lead this transformation. Leadership Commitment Our CEO champions ESG integration, encouraging all employees to embed sustainability into their daily work. To demonstrate this commitment, we’ve incorporated safety and sustainability targets into performancebased bonuses for managers and ESG team members. Tools and Training We offer monthly webinars on topics like energy efficiency, fleet management, environmental compliance, and compressed air management to plant and operations management. To track progress and collect data, we developed an internal ESG webpage housing resources and metrics. Additionally, we use Watchwire by Tango, a cloud-based energy and sustainability management solution for carbon accounting and energy utility management, providing site leaders with real-time data analytics to monitor, measure and track their visibility into costs, environmental footprint, and energy performance. Cross-Functional Collaboration Responsibility for ESG extends beyond our dedicated team. We’ve empowered individuals across departments to drive positive change: Environmental Health & Safety (EHS): Develops policies, procedures and training to provide a safe working environment and ensure adherence to all federal, state and local laws and regulations. Human Resources: Promotes equitable hiring practices and fosters a diverse and inclusive workforce. General Managers: Implement site-level sustainability and safety measures. Sales: Develops new markets and products from recycled tire materials. Transportation: Optimizes routes for fuel efficiency and safety. Environmental Compliance: Ensures adherence to regulations and policies. Customer Service: Fosters customer satisfaction through transparent communication and ethical practices. Education and Empowerment We prioritize educating and inspiring our employees about the impact of their roles on our sustainability mission. In late 2022, we provided ESG materials to employees’ homes, fostering pride in our environmental, social, and community contributions. In 2023, we released a video highlighting various roles and their connection to sustainability. (See the “Driving a Greener Tomorrow Video” on the Sustainability page on our website at libertytire.com/sustainability.) To further empower our team, we challenged each of our 56 sites to plan their own initiatives to achieve four sustainability goals. This approach allowed for local, meaningful projects, including volunteering, environmental cleanups, and donations. Site-specific results are detailed in the “Individual Site Goals” section of this report. By working together, we’re building a more sustainable future for Liberty Tire Recycling and the communities we serve.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 15 OUR COMPANY ESG GOALS Overview In 2022, Liberty Tire Recycling set three sustainability goals on which the entire company is focusing their efforts and priorities. Zero Waste Zero waste by 2030: Every tire that we collect will enter an end-use market. By 2050, our goal is that all end-of-life tire material will be utilized by low or no carbon, closed loop applications. Moving our tires up the value chain is the path to reducing the number of tires disposed of in landfills. It aligns with our commitment to sustainability and reducing carbon emissions. We are accomplishing this by developing new markets and products, collaborating with industry partners in innovation, and piloting more efficient, automated processes in our operations. We achieved progress on this front at our Jackson, GA facility. With less than a full year of operation, we were able to move 3,945 tons of rubber away from disposal and into feedstock for our customers in the region providing consumer products. The full year impact is expected to be 17,500 tons annually. In 2023, we continued to improve our landfill diversion rate and today, nearly 80% of the tires collected are being reclaimed, reused, repurposed, and recycled. This is above the industry average of 71% according to the most recent U.S. Tire Manufacturer Association’s Scrap Tire Management report issued October 25, 2022. We disposed of 462,287 metric tons comprised of municipal solid waste, tires, and universal and hazardous waste and 20,837 gallons of waste oil. As we move forward on our zero waste goal, we are going to continue to move tires into sustainable end-use markets while beginning to reduce waste streams associated with our on-site operations through recycling. Zero waste by 2030 Every tire that we collect will enter an end-use market. Reduce energy intensity by 25% by 2032 Improve fleet efficiency by 30% by 2032
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 16 Landfill disposal of product that cannot be used in the value chain or in areas where there are no market opportunities OUR COMPANY ESG GOALS Zero Waste Zero Waste Goal 2022 2023 Total Tires Collected* 195,925,849 205,817,489 Total Disposal (Metric Tons) 501,570.2 419,380.5 Market/Utilized 74.4% 78.4% Reuse Move Product Up the Value Chain Process tires into rubber granulates to be used in new products that can continuously be recycled at end of life Extend tires until the end of their natural life—provide acceptable tires to the used tire market Recover or reclaim tires for use in Landfill construction, Slope Stabilization or agricultural use Provide rubber as an alternative fuel for energy generation Recycling Material Recovery Zero Waste Goal by 2030 eliminates tires from landfill disposal Energy Recovery Disposal Progress 2030 Goal * Tires Collected is calculated in passenger tire equivalents (PTE’s)
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 17 OUR COMPANY ESG GOALS Fleet Efficiency Improve fleet efficiency by 30% by 2032: We began tracking and reporting greenhouse gas emissions using Adapt™ technology in 2022. Understanding that our starting point was crucial, we recognized that to truly improve fleet efficiency, it required more than emissions tracking. This led us to select the Samsara connected platform in 2023. Samsara provides a holistic view of our fleet, enabling initiatives focused on optimizing driver behaviors to improve fuel efficiency and reduce idle time, as well as improve asset utilization and route efficiency. We will begin collecting data in January 2024 to use as our baseline year from which to track our progress towards our fleet efficiency goal. We will reach this goal through various initiatives including alternative fuels, U.S. Department of Transportation (USDOT) compliance, route optimization, fuel efficiency, idle time reductions, and driver training. Energy Intensity Reduce energy intensity by 25% by 2032: Energy efficiency gains will be measured by kilowatt hours (kWh) per ton of recycled rubber material. We are using 2022 as our baseline year to measure progress towards this goal. To reduce our energy intensity, we are focused on production efficiencies, compressed air management, peak demand, power factor, and LED lighting upgrades. In 2023, we began a series of 3rd party energy audits at our production facilities to evaluate how energy is used and identify new opportunities for improving efficiency, reducing costs and minimizing our environmental impacts.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 18 OUR COMPANY ESG GOALS Site-Level Sustainability Leadership Sustainability is at the heart of everything we do at Liberty and is the shared responsibility of every member of our team. That philosophy drove our 2023 Individual Site Goal program in which each site was asked to develop and implement programming to address four categories of goals: a volunteer effort, an energy initiative, a recycling program, and the completion of AED/CPR/First Aid training. Spotlight on a Liberty Hero William (BJ) Kirby, General Manager – Concord, NC The importance of AED/CPR/First Aid training was brought home to the Liberty family in a very personal way in 2022 when one of our general managers suffered a serious cardiac episode. General Manager BJ Kirby was at home one evening when he began feeling sick and experiencing shoulder and arm pain, followed by jaw pain. He knew something was not right and asked his wife to call 911. He was having a heart attack. Paramedics and hospital staff eventually had to use an AED device 33 times to keep him alive. Thankfully, Kirby survived and is now a volunteer with the American Heart Association to raise awareness of the importance of AED/ CPR/First Aid training. Access to an AED device and proper training can be a critical bridge to help save lives in a medical emergency while waiting for paramedics to arrive. Kirby helped to inspire our goal of conducting AED/CPR & First Aid training at all of our sites. As a result of his experience and advocacy, we have conducted training at more than 45 facilities in 2023 with more than 300 of our team members earning their certification. These individual projects have resulted in long-lasting improvements at Liberty. Sites have implemented on-going recycling programs, teams are more prepared to handle emergency health and injury situations, and efficiency practices are being shared across the company. We will specifically highlight some of the exceptional energy efficiency programs and numerous volunteer events later in the report. 82% of sites completed an energy efficiency initiative 80% of sites completed a volunteer effort 90% of sites completed a recycling program 86% of sites completed AED/CPR/ First Aid training
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 19 ENGAGING PEOPLE & COMMUNITIES Engaging People & Communities Key Stakeholders Why It’s Important Impact Employees Customers Suppliers Investors Employee Health & Safety There is no higher priority than ensuring a safe and productive work environment to avoid accidents and enhance overall well-being Social Environmental Community Engagement Fosters strong relationships, builds trust, and creates mutual benefits Social Diverse & Inclusive Culture Varied perspectives and experiences drive innovation, enhance decision-making and improve employee satisfaction and organizational performance Social Talent Development Enhancing employees’ skills and potential leads to increased productivity and job satisfaction which drives organizational growth Social Goals Aim to reduce turnover, insurance costs, and fines by enhancing employee satisfaction, health, and safety, and building a positive reputation in the community. ` Install AED devices at every location. ` Continue to prioritize reducing OSHA recordables, lost time injuries, and PVAs. ` Develop and support newly formed Liberty Cares committee to drive employee engagement and community involvement with a focus on quarterly themes such as employee health and wellness, environmental efforts, charitable events, food insecurity, and support of local families through holiday giving. ` Conduct an annual employee engagement survey. ` Foster diversity, equity, and inclusion through awareness efforts and succession planning.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 20 22% FEMALES in management ENGAGING PEOPLE & COMMUNITIES Our Workforce Overview At Liberty Tire Recycling, we recognize that a diverse workforce fuels innovation, productivity, and success. In 2023, our team of 3,513 employees (including 396 temporary workers) continued to evolve, with increased tenure rates, improved retention, a higher percentage of female plant managers, and a workforce that is younger and more diverse overall. We are proud of the talented individuals who are propelling our company into a future of growth and innovation. Employee tenure is a valuable asset, bringing extensive experience, industry knowledge, mentorship, and strong relationships. We are proud that over 40% of our corporate and plant managers have been with the company for more than ten years, far exceeding the U.S. average of 27%. 1 This long-term commitment is a testament to the positive and supportive culture we foster at Liberty. We believe tenure embodies our ESG values: a safe work environment, engaged employees, a thriving business, and policies that promote fairness, inclusion, and accountability. While according to the Bureau of Labor and Statistics in 2020, the waste management and remediation industry has historically had low female representation, at 15.5%, 1 we are committed to our efforts to increase the number of women at Liberty, currently at 10%. In 2023, however, we saw a significant increase in the percentage of female plant managers, rising from 16% in 2022 to 22%. We are excited to share the inspiring stories of several of these women leaders later in this report. In 2023, Liberty Tire Recycling achieved a significant 10% reduction in employee turnover, bringing our rate down to 51%. This reflects our dedicated efforts to foster a positive and supportive work environment, which is essential for both employee satisfaction and our overall sustainability goals. Notably, our Southeast, Rockies, and IMC Outdoor Living divisions achieved remarkable turnover reductions of 21%, 24%, and 28%, respectively. 1. https://www.bls.gov/news.release/pdf/tenure.pdf | Table 3 2. https://www.bls.gov/oes/2020/may/naics3_562000.htm
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 21 ENGAGING PEOPLE & COMMUNITIES We acknowledge that the manual nature of many roles presents a challenge for our workforce. To address this, Liberty Cares, a committee of engaged employees, works closely with our human resources team to enhance employee engagement and retention. While we are proud of our progress, we recognize that continuous improvement is key. We value the mutual dependency and respect at the core of our relationship with employees. Our 98% completion rate for performance reviews over the past two years underscores our commitment to open communication and feedback. We remain dedicated to cultivating a respectful, transparent, and supportive work environment for all of our employees. To ensure compliance and fairness, Liberty conducts regular Fair Labor Standards Act (FLSA) audits. Our payroll system is designed to automatically flag any instances where wages might fall below the required minimum, ensuring immediate corrective action. This system ensures we uphold our commitment to legal compliance and employee welfare. Additionally, while we strive to maintain comprehensive wage records, it is important to note that Liberty Tire Recycling does not currently track wages for workers who are not direct employees, as they are compensated through contracted agencies. We acknowledge this omission and are continuously working with our contract labor partners towards enhancing our wage tracking and transparency efforts. Our dedication to fair compensation reflects our broader commitment to creating a supportive and equitable workplace, where every employee is valued and fairly rewarded for their contributions.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 22 ENGAGING PEOPLE & COMMUNITIES Workforce Demographics 3 Age Male Female Race/Ethnicity Hispanic 46.5% White 30.2% Black or African American 12.4% Unknown 8.2% Two or more races 1.6% American Indian 0.5% Asian 0.4% Pacific Islander 0.2% 3. Data was collected using headcount on the last day of the calendar year, December 31. 3,097 Total Female Employees Total Employees % of Total Corporate 35 159 22% Plant Management 71 331 22% Frontline Work Force 199 2,607 8% Gender Diversity Corporate Plant Management Frontline Work Force 17% 31% 20% 47% 45% 56% 36% 24% 24% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2021 2022 2023 Under 30 30–50 Over 50 22% 78% 22% 78% 8% 92%
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 23 All of these high performing women credit much of their success to their mentors who believed in them and wanted them to succeed – many of whom are colleagues at Liberty Tire. These mentors challenged them, taught them the dynamics of working in plant operations, and provided both formal and informal training. Thank you to these incredible women for the impact they have at Liberty Tire Recycling and the inspiration they give to others. Debbie Housden has been with the company for 30 years and held various roles including assistant to the controller, controller, director of transportation, and GM roles on both the West Coast and the East Coast. She has been the GM at Lakin East in Connecticut for three years. Juvelina Salgado came to Liberty Tire Recycling after a 33-year career as an operations manager for a large national retail corporation. She began at Liberty as a warehouse manager in 2017 and became the GM at Lakin West in California in 2022. Pam Boling worked in retail, banking, human resources, and accounting before starting her career at our facility in Calhoun, GA in 2010 as an accounts payable team member. As part of a succession planning effort, she mentored under the out-going general manager (GM) for almost three years to broaden her knowledge of the day to day site operations and to be well-equipped to take over the position. She became the GM in Calhoun in October 2023. ENGAGING PEOPLE & COMMUNITIES Female Plant Managers These three female plant general managers (GM) have charted independent courses to their current positions and are a testament to the growing role of women in the recycling industry: Boling challenges new employees to be curious and step outside of their role to learn what is happening around them in the plant. She believes in the benefit of cross-training and provides opportunities to her teammates. Housden encourages new teammates to keep their eyes and ears open and learn as much as they can about everything happening around them, not just their role. Salgado is an example of showing employees how much you care about them as individuals to earn their trust and respect. She also has demonstrated that one’s past professional experiences can successfully translate into different industries and situations. None of these women will tell you it is always easy in their roles. The women admit they face challenges as plant managers - some because they are a woman in a male dominated industry, and some are typical challenges that all leaders face. At times, they struggle with balancing the management aspects of running the plant while creating strong relationships with the team on the floor. They have faced pushback from male colleagues who challenged their expertise. One area that the company will focus on in 2024 is helping these women connect more with each other – facilitating opportunities to share ideas and discuss challenges. Don’t invite me to that table just because I’m a woman; invite me because you believe I add value. At the same time, don’t keep me away from the table just because I’m a woman either. – PAM BOLING
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 24 ENGAGING PEOPLE & COMMUNITIES Inclusion at Liberty Tire Recycling Innovative Hiring Practices Help Us Build a Stronger Team In 2023, Liberty Tire Recycling collaborated with various outside groups to support our Diversity, Equity, and Inclusion (DEI) hiring and recruiting processes, utilizing organizations such as: ` Diversity Job Source, LLC provides resume writing, job fairs, workshops, interview prep and other job readiness tools to help diverse candidates find equitable employment. Liberty was proud to sponsor the annual job fair which allowed us to meet and interview diverse job seekers. ` Second Chance Recruiting extends job opportunities to individuals recently released from prison. To support this programming in 2023, we attended quarterly virtual job fairs and guaranteed any person who attended an automatic interview upon release if they chose to apply. We have also sponsored several of the Second Chance Job Fairs hosted by The Saint Louis University’s Transformative Academy. This initiative reflects our commitment to offering a chance for stable employment to those seeking a fresh start. Our commitment is reflected by our nearly 200 Second Chance employees who contribute to our collective success and growth every day. ` Our partnership with the Saint Louis County Probation and Parole offices advertises our available positions via quarterly flyers. These job postings and applications were dropped off at area probation and parole offices to provide any individual on parole the information necessary to apply. ` Our partnership with the Professional Diversity Network (PDN) connects diverse professionals with employers. PDN supports various minority communities, including women, Hispanic and Latino professionals, African Americans, Asian Americans, persons with disabilities, and LGBTQ+ individuals. ` By the end of 2024, we aim to utilize Career One Stop and Military Transition Center for all job postings. Career One Stop is a comprehensive resource for job seekers, offering a wide range of tools and information to help individuals find employment. The Military Transition Center specifically supports veterans and transitioning service members, providing tailored resources to help them navigate the civilian job market. Liberty Tire Recycling employs 145 self-reported veterans. Veterans bring a strong work ethic, discipline, and leadership abilities, which align perfectly with our company’s values and operational needs. Through these partnerships and initiatives, Liberty Tire Recycling reaffirms its commitment to diversity, equity, and inclusion. We believe that a diverse team drives innovation, productivity, and success, and we are dedicated to creating a workplace where all employees feel valued and empowered to contribute to our shared mission.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 25 ENGAGING PEOPLE & COMMUNITIES Celebrating International Women’s Day Celebrating our teammates is a great way to support each other and show our appreciation. On International Women’s Day, women from around the company took the time to write handwritten cards of appreciation and encouragement to each other. Posters were put up at all of our locations and cards with packets of wildflowers were sent to every woman working across Liberty Tire Recycling to celebrate the day. Breaking the Mold Amy Brackin, an 11-year veteran of Liberty Tire Recycling and the current Senior Vice President of Sustainability, was Rubber News’ “Women Breaking the Mold” Honoree, Class of 2023. The publication recognized 30 women from around the rubber industry who lead with grace and tenacity, drive innovation in the industry, and inspire other women. Honorees were celebrated at the 2023 Breaking the Mold Conference in Scottsdale, AZ in November. "Having a leadership team that both empowers and supports me is the greatest motivator. My competitive and passionate nature drives me to strive for success, but collaboration is essential to achieving it. I am grateful to work with such a fantastic team and am deeply inspired by our mission at Liberty Tire Recycling to recycle every tire we collect and find valuable uses for the 200 million tires we process each year." – AMY BRACKIN, SENIOR VP OF SUSTAINABILITY
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 26 ENGAGING PEOPLE & COMMUNITIES Attracting and retaining the best employees is critical to a company’s success. Liberty Tire Recycling offers a comprehensive suite of employee benefits to support full-time employees and their families’ physical and mental well-being and financial health. Company paid benefits include: ` Life insurance ` Accidental death and dismemberment (AD&D) insurance ` Long term disability insurance ` Employee assistance program ` Tria health pharmacy advocate program ` Sword health virtual physical therapy program Benefits that are cost-shared between Liberty Tire Recycling and employees include: ` Choice of 3 medical plans ` Choice of 2 dental plans Other voluntary benefits: ` Vision insurance ` Voluntary life and AD&D insurance for employee and dependents ` Accident insurance ` Critical illness insurance ` Hospital insurance ` 401(K) plan with employer matching on up to 1.5% of salary Our Employee Benefits
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 27 ENGAGING PEOPLE & COMMUNITIES Liberty Learning enhances employee performance by handling the administration, documentation, tracking, reporting, and delivery of training courses. It was piloted at 8 sites in 2022, rolled out to an additional 19 sites in 2023 and will be fully implemented company-wide by the end of 2024. The system offers courses in both English and Spanish on topics such as safety, human resources and legal concepts. The New Hire Orientation includes classroom and practical sessions covering workplace safety. These topics include workplace hazards, personal protective equipment, equipment safety, Chemical Safety Data Sheets, and specific job tasks Hazard Assessments. Chemical Safety Data Sheets provide detailed information on the properties, handling, storage, and emergency measures related to chemicals used in the workplace; and Hazard Assessments identify potential risks associated with each task and outline necessary precautions and safety measures. In addition to extending training courses offered, Liberty Learning also has automated tracking and made training more user friendly and accessible. For automated tracking, the system features automated reports for training status and a dashboard to monitor course completion and overdue courses. With 90% of courses available in Spanish and a web-based application accessible on-site via computers or tablets, training completion has become more accessible through the Liberty Learning software. We understand that for safety and training to be effective, employees need to understand it is a priority within the company and it needs to be accessible. Our strategy for employee training is consistent reinforcement across all management levels and constantly exploring and deploying new tools and vehicles for people to access training in an impactful way. We are proud to share that our documented training in 2023 exceeded 10,000 hours, comprised of 5-minute safety talks, daily texts, videos, stand-down trainings, and Liberty Learning. This system not only ensures comprehensive and standardized training for all employees but also promotes a safer and more knowledgeable workforce. Training Our People Continuous learning and the safety of our employees is a priority across Liberty Tire Recycling. In 2022, we developed a comprehensive learning management system called Liberty Learning. This system not only ensures comprehensive and standardized training for all employees but also promotes a safer and more knowledgeable workforce.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 28 ENGAGING PEOPLE & COMMUNITIES Keeping Our People Safe Overview Our top priority is the safety of our people, and it requires dedicated effort from all levels of personnel within Liberty Tire Recycling to ensure our employees are safe at work. All employees, contractors and temporary workers follow Liberty’s safety protocols and company management, led by our Director of Safety, is responsible for overseeing the quality of safety services and employee accessibility. To ensure we continue to be cautious and actively engage employees in our safety goals, we implement a comprehensive array of mechanisms designed to promote a culture of safety and continuous improvement. These include proactive risk identification and hazard resolution, safety training, collaboration teams, and resources readily available if an injury occurs. To identify safety risks proactively, we conduct Job Safety Analysis (JSA) and have established Standard Operating Procedures (SOPs) that identify potential hazards and outline safe working practices. These foundational steps guarantee that all employees are aware of the risks associated with their tasks and understand the proper procedures to mitigate those risks. In addition, we perform regular safety walks and plant inspections to proactively identify and address safety issues on the ground. These inspections are critical for maintaining a safe working environment and ensuring compliance with established safety standards. To manage and track safety-related tasks, we utilize a work order system. This system enables us to efficiently address and resolve safety issues so that any hazards are promptly corrected. Near miss reports are another vital tool in our safety program. By documenting and analyzing near misses, we can prevent potential incidents before they occur, reinforcing our commitment to proactive risk management. Training is another cornerstone of our safety strategy. We provide OSHA 10/30 hour training to make certain our employees are well-versed in occupational safety and health standards. This training is essential for equipping our workforce with the knowledge and skills necessary to maintain a safe working environment. To foster a collaborative approach to safety, we have established Safety Improvement Teams and Management/Employee Engagement Teams. These teams work together to identify areas for improvement, develop solutions, and implement changes that enhance workplace safety. Additionally, Safety Suggestion Boxes are placed throughout our facilities, encouraging employees to share their ideas and concerns, further promoting a culture of continuous safety improvement. Our safety efforts are supported by both corporate and regional teams. Corporate safety visits help ensure everyone follows safety standards. We have Safety Manual Personnel who provide guidance on safety policies, and Regional and Site Safety Personnel at each location to oversee and implement these policies and procedures. This multi-layered approach ensures that safety rules are consistently applied across all our operations, keeping our safety standards high everywhere we work. In addition to these safety mechanisms, we provide various resources to support the health and safety of our employees, contractors and temporary workers if an injury is to occur. We have on-location first aid nurses available to address any immediate medical needs and provide basic medical care. Our nurse triage phone line offers employees access to medical advice and guidance so that they can quickly and easily obtain professional health support. We also collaborate with local medical clinics and medical services to provide comprehensive healthcare options for our employees. These resources are essential in making sure our workforce remains healthy and safe, further reinforcing our commitment to their well-being. Through these diverse mechanisms, we demonstrate our unwavering commitment to safety, fostering an environment where employees feel valued, protected, and empowered to contribute to our shared safety goals.
Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 29 ENGAGING PEOPLE & COMMUNITIES In 2023, these efforts resulted in 0 work related fatalities, a 62% decrease in our annual OSHA recordables, a 90% decrease in our Lost Time injuries since 2010, and a 70.4% reduction in Preventable Vehicle Accident Rate (PVAR). The improvement in these metrics is a result of the prioritization of our employees’ safety performance and the expertise of our safety team. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Recordable Incident Rate (TRIR) 4 8.18 6.64 5.47 4.21 3.11 4.49 3.84 3.84 2.92 2.88 2.37 3.04 3.24 3.10 Lost Time Incident Rate (LTIR) 4 4.09 2.56 1.52 1.04 1.41 1.37 1.00 0.89 0.68 0.51 0.59 0.72 0.49 0.40 Preventable Vehicle Accident Rate (PVAR) 3.83 4.29 3.59 5 1.19 0.79 1.11 1.06 4. TRIR and LTIR are based upon 200,000 hours worked. 5. 2019 PVAR was revised from 4.29 to 3.59 reflect a more accurate calculation. 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 # of injuries x 200,000 hours divided by total hours worked 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 # of injuries x 200,000 hours divided by total hours worked 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 2017 2018 2019 2020 2021 2022 2023 # of preventable vehicle accidents per million miles Total Recordable Incident Rate (TRIR) Lost Time Incident Rate (LTIR) Preventable Vehicle Accident Rate (PVAR)
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