SUSTAINABILITY REPORT - Graymont

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SUSTAINABILITY REPORT - Graymont
SUSTAINABILITY 
2020

       REPORT
SUSTAINABILITY REPORT - Graymont
About Graymont
REPORT SCOPE                                                   Graymont is a global leader in lime and limestone
                                                               solutions. Headquartered in Canada, it serves markets
                                                                                                                                      GRAYMONT’S MISSION

                                                                                                                                      Improving our world
The 2020 Sustainability Report summarizes the                  throughout North America and Asia Pacific. Graymont is
sustainability performance of Graymont and its                 also the strategic partner of Mexican-based Grupo Calidra,

                                                                                                                                      by responsibly meeting
subsidiaries, including recently acquired lime operations      the largest lime producer in Latin America. Professionally
in Asia Pacific. The Company’s global lime and limestone       managed and family owned, our Company has been in

                                                                                                                                      society’s needs for
operations constitute the largest portion of its economic,     operation for more than 70 years. Graymont aims to be
environmental, and social impacts. In this report, data and    the preferred supplier, employer, and partner of choice

                                                                                                                                      quality lime and
information contained in the Environmental Care section        wherever it operates.
relate primarily to the lime operations. Historical data and
                                                               Our products are essential in addressing many of today’s
                                                                                                                                      limestone products.
information in the Workforce Culture and Community
                                                               most pressing environmental issues, while supporting vital
Relations sections relate to all operations, including the
                                                               industrial processes and agricultural needs. Applications
Materials Group prior to its divestment in mid-2017.
                                                               include the purification of air and water, and the
Discussion, data and information contained herein relate,      production of an array of items and materials essential
with noted exceptions, to the 2020 calendar year. Historical   to a modern economy, such as paper, glass, steel and
data is provided, again with noted exceptions, for the years   assorted other metals.
2016 through 2020 and includes references to the year
2004, which has been established as the baseline.
The 2021 report is scheduled for publication in April 2022.

                                                               WHAT WE VALUE                                                 OUR VISION
                                                               Our success requires both individual effort and teamwork in   World Class in everything we do!
                                                               accordance with our shared Graymont values.
                                                                                                                               Safety
                                                                                                                              	
                                                                 Integrity                                                   We operate safe, clean and orderly facilities where
                                                                   We always do the right thing.                               everyone shares a strong commitment to an injury-free
                                                                                                                               workplace.
                                                                	
                                                                 Respect
                                                                                                                               Customers
                                                                                                                              	
TABLE OF CONTENT                                                 We respect:
                                                                 - the right of every individual to a safe workplace;          We are committed to exceeding our customers’ needs
                                                                 - the cultures, customs and values of all people;             by reliably delivering quality products and services.
01                              26                               - the sustainability objectives of society; and
About Graymont                  Community Relations                                                                            Communities
                                                                                                                              	
                                                                 - our shareholders’ capital.
                                                                                                                               We proactively develop and maintain relationships of
04                              34                              	
                                                                 Teamwork                                                      mutual support with our neighbours and others for the
A Message From the CEO          Sustainability                   Effective teams can better solve complex problems.            long-term success of Graymont and our communities.
                                Performance Data
06                                                              	
                                                                 Innovation                                                   Environment
                                                                                                                              	
Corporate Governance            38                                There is always a better way to do things.                   We are dedicated to improving our environmental

                                                                                                                                                                                       Graymont 2020 Sustainability Report
                                                                                                                               performance.
and Accountability              Graymont in                     	
                                                                 Excellence
                                North America                     Whatever we do, we strive to do it well.                     Value Creation
                                                                                                                              	
08                                                                                                                             We continuously optimize our processes and activities
Workforce Culture               38                              	
                                                                 Long-Term Perspective
                                                                                                                               to deliver increased value to all stakeholders.
                                Graymont in Asia Pacific          We take a long-term perspective around decisions.
20                                                                                                                             People
                                                                                                                              	
Environmental Care              40                              	
                                                                 Accountability
                                                                  We honor our commitments.
                                                                                                                               We have developed a talented team of engaged
                                Glossary and                                                                                   and empowered individuals, collaborating to deliver
                                Abbreviations                                                                                  world-class performance.

                                                                                                                                                                                              1
SUSTAINABILITY REPORT - Graymont
What We Do
                                      Lime, Graymont’s main product, is a
                                      versatile industrial solution that has long
                                      been indispensable for vital industrial
                                      processes and applications. More recently,
                                      lime has also become an essential solution
                                      for addressing a myriad of complex
                                      environmental issues and challenges,                         TYPICAL QUICKLIME
                                      both naturally occurring and man-made.                       AND HYDRATED LIME
                                      The word “lime” refers to products derived from burnt
                                                                                                   APPLICATIONS                                                             Hydrated lime
                                                                                                                                                                            Ca(OH)2
                                      (calcined) limestone. Limestone is a naturally occurring       	
                                                                                                      Mining: including soda ash, copper,
                                      and abundant sedimentary rock, comprised of high                zinc, nickel, gold, uranium
                                      levels of calcium and/or magnesium carbonate and/or                                                                            H2O
                                                                                                      Industry: steel, alumina, glass, pulp and
                                                                                                     	
                                      dolomite (calcium and magnesium carbonate), along
                                      with small amounts of other minerals. It is extracted           paper and oil and gas production
                                      from quarries and underground mines all over the world.         Agriculture: soil pH, soil conditions                                    Heat
                                                                                                       improvement, dairy and poultry feeding
                                      Once extracted, the stone goes through a crushing and
                                                                                                       supplements
                                      screening process to create the proper sizes required
                                      for various applications. The stone is then fed to a kiln,     	
                                                                                                      Food production and conservation:
                                      where it is heated at high temperature. The intense             sugar, produce, dairy, glue and gelatin,
                                      heat triggers the chemical reaction that transforms             baking industry
                                      limestone into lime. Lime can be used at this stage,           	
                                                                                                      Construction: mortar, plastering,
                                      where it’s called “quicklime,” or water can be added            restoration, whitewash, soil stabilization
                                      to produce “hydrated lime.”                                     and asphalt treatment
                                                                                                     	
                                                                                                      Environment: acid rain reduction,
                                                                                                      environment rehabilitation, water and                                 Quicklime
                                                                                                                                                                            CaO
                                                                                                      sewage treatment, animal waste treatment,
                                                                                                      flue gas treatment, industrial sludge and
                                                                                                      petroleum waste treatment, acidic
                                                                                                      drainage treatment                                             Heat

                                                                                                                                                                                CO2
Graymont 2020 Sustainability Report

                                                                                                                                                                                            Graymont 2020 Sustainability Report
                                                                                                                                                   Lime Production
                                                                                                                                                   Process
                                                                                                                                                                            Limestone
                                                                                                                                                                            CaCO3

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SUSTAINABILITY REPORT - Graymont
A Message From the CEO
                                      Over the course of nearly a decade as
                                      Graymont’s CEO, I have observed on                             With respect to the environment, Graymont aims to                 Notwithstanding the success stories I alluded to above,
                                                                                                     consistently meet or exceed its regulatory and permit             it is clear when we look back at 2020 that, despite our
                                      numerous occasions how fortunate
                                                                                                     obligations, while working proactively to minimize the            best efforts, Graymont was not totally immune from the
                                      I am to lead such an outstanding                               environmental impacts of its operations. The benefits             negative impact of the pandemic. With non-essential
                                      organization. That sentiment was                               of our comprehensive, systems-based approach were                 industrial and commercial activities the world over either
                                      reinforced as I looked back at the                             reflected in a 12% reduction in total environmental               significantly slowed or, in many cases, halted altogether,
                                      unprecedented events of 2020, when we                          incidents in 2020 — marking the fourth successive year            demand for lime slumped in concert with the broader
                                                                                                     of improved performance.                                          economy. Our sales decreased precipitously in the spring
                                      found ourselves in uncharted waters,
                                                                                                                                                                       of 2020, before trending upward on a path of steady but
                                      grappling with a global pandemic that                          Nevertheless, the lime industry, along with steel, cement         gradual recovery that extended into early 2021. Acting
                                      literally threatened lives and livelihoods,                    and others, remains a significant source of greenhouse gas        responsibly, our Company responded to the prevailing
                                      and tested the limits of our resources                         (GHG) carbon emissions. Consequently, tackling climate            economic and market uncertainty by implementing cash
                                                                                                     change will continue to be among the greatest challenges
                                      and resolve.                                                   we face in the foreseeable future. We are determined
                                                                                                                                                                       conservation and cost reduction measures and putting
                                                                                                                                                                       a number of potential capital investments on hold, while
                                      Given the essential nature of Graymont’s business — lime       to work with governments, customers, suppliers, industry          exercising tighter control and closer scrutiny
                                      has long been regarded as indispensable for vital industrial   associations and our host communities in the global               of on-going projects.
                                      processes and, more recently, has come to the fore as          transition to a low carbon economy.
                                      a key element for addressing complex environmental                                                                               That said, work on all required safety and environment-
                                                                                                     At Graymont, we also pride ourselves on working hard              related initiatives proceeded apace during 2020, and we
                                      challenges — we were compelled on short notice to find
                                                                                                     to build bridges and engage in a meaningful way with              moved forward with the realization of several major
                                      innovative solutions that would enable us to keep our
                                                                                                     the communities where we are present — including with             strategic investments, including the Rexton expansion
                                      facilities up and running and maintain crucial supply
                                                                                                     First Nations, Aboriginal and Indigenous peoples. Needless        project in Michigan’s Upper Peninsula, and the pending
                                      chains to our customers, many of whom are also deemed
                                                                                                     to say, the strict anti-COVID measures adopted across             restart of the Charbon lime plant and Excelsior Quarry in
                                      essential.
                                                                                                     our operations in 2020 inhibited our ability to stage the         New South Wales, Australia. Meanwhile, we continued with
                                      Our Graymont teams at sites across North America and           usual ambitious agenda of collaborative community                 the successful integration of Asia Pacific assets — in
                                      Asia Pacific rose to the occasion. Leveraging a powerful       events. However, to their credit, many sites responded            Eastern Australia, the Philippines and Malaysia — acquired       Stéphane Godin
                                                                                                     by redirecting their efforts to pandemic-related initiatives                                                                       President and Chief Executive Officer
                                      combination of talent and tenacity, they managed to                                                                              from the Belgium-based Sibelco group in late 2019.
                                                                                                     designed to enhance the quality of life for some of the                                                                            Graymont
                                      largely keep the coronavirus at bay — there were no major
                                      outbreaks at any of our facilities — while maintaining         most vulnerable members of their communities, while               In conclusion, I would like to salute the remarkable men
                                      our plants operations at near-normal levels and avoiding       respecting social distancing. You can learn more about            and women who showed up for work day in and day out
                                      major disruption to supply chains.                             those endeavours in the Community Relations section               at Graymont facilities across our global network in 2020,
                                                                                                     of this report.                                                   often in difficult circumstances. It is primarily due to their
                                      Furthermore, we managed to turn in Graymont’s best-                                                                              efforts that we were able to not simply carry on in the face
                                      ever safety performance, bucking an industry trend that        Looking ahead, a new area of focus that is a priority             of the pandemic, but to deliver a solid all-round
                                      saw safety at many mining and materials producers              for me and the rest of Graymont’s senior leaders is the           performance. It would be remiss of me not to acknowledge
                                      negatively impacted during the pandemic. This is quite an      issue of equity, diversity and inclusion (EDI). This topic has    as well the hard work and dedication of fellow members
                                      achievement! I invite you to examine our exemplary             become increasingly relevant in today’s workplace,                of our senior management team. Finally, I am grateful
                                      safety record in more detail by turning to Page 8.             particularly for companies like Graymont that have global         for the unwavering support of our shareholders, who take
                                                                                                     footprints. We have broadened our thinking on this topic,         a long-term approach to business — and embrace our
Graymont 2020 Sustainability Report

                                                                                                                                                                                                                                                                                Graymont 2020 Sustainability Report
                                      This 2020 Sustainability Report chronicles some                from a narrower lens looking solely at gender diversity,          aim to become the world-class leader of our industry
                                      of the noteworthy challenges and achievements that             to considering diversity in all its forms and ensuring equity     and make Graymont the preferred supplier, employer,
                                      characterized a year like no other, as we continued            and inclusion are key pillars along with diversity. I encourage   and partner of choice wherever in the world we operate.
                                      striving to attain world-class performance in all aspects      you to read more about our recently launched diversity
                                      of Graymont’s operations.                                      agenda in the Employee Engagement section.

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SUSTAINABILITY REPORT - Graymont
Corporate Governance
                                      and Accountability                                                                                                                                                                         CODE OF BUSINESS
                                                                                                                                                                                                                                 CONDUCT AND ETHICS
                                      Central to Graymont’s corporate                              Strategic Leadership Team                                       A Responsibility Shared by All                                Graymont’s commitment to operating with integrity and
                                                                                                                                                                                                                                 according to the highest ethical standards is an integral
                                      philosophy is a long-term approach to                        The Board, in turn, holds management – in particular            In summary, from an organizational perspective,               part of the foundation on which we are building a
                                      business, built on a solid commitment                        the SLT – accountable for the responsible day-to-day            accountability for sustainable development rests with         world-class organization. Our Code of Business Conduct
                                      to sustainable growth and strict adherence                   conduct of the business.                                        focused management and leadership at the local, regional      and Ethics sets out the standards that all Graymont
                                      to responsible environmental, workplace                                                                                      and corporate levels while encompassing our                   employees, officers and directors must adhere to.
                                                                                                   Led by the President and Chief Executive Officer (CEO),         One Graymont culture. Graymont utilizes an annual
                                      and operating practices. This philosophy                     the SLT also includes the Vice President and Chief Financial                                                                  In addition, Graymont maintains an Ethics Reporting
                                                                                                                                                                   performance-review process that is integrated at all levels
                                      is evident in actions taken at every level of                Officer; the President of Graymont’s Asia Pacific operations;   of management, to ensure goals are set in accordance with     System, managed by an independent third-party provider,
                                      the company, from the Board of Directors                     the Vice President, North America Operations; the Vice          corporate strategy and that we move forward and drive         which allows employees to report alleged violations of the
                                      and the Strategic Leadership Team (SLT)                      President General Counsel and Corporate Secretary; as well      continuous improvement. However, the Company’s strong         Code on an anonymous and confidential basis.
                                                                                                   as the Vice Presidents for Sales and Marketing; Human
                                      to managers, supervisors and front-line                                                                                      commitment to corporate social responsibility transcends
                                                                                                                                                                                                                                 Graymont’s Code of Business Conduct and Ethics is
                                                                                                   Resources and Corporate Services; Corporate Affairs,            divisional, departmental and hierarchical boundaries.
                                      employees throughout the organization.                       Environment and Sustainability; and Business Development                                                                      available on our website: www.graymont.com/en/about-
                                                                                                                                                                   There is a fundamental expectation within Graymont that
                                                                                                   and Technical Services.                                                                                                       us/mission-vision-values
                                                                                                                                                                   all employees share in the responsibility for developing
                                      Board Oversight                                                                                                              and maintaining a sustainable organization.
                                                                                                   The responsibilities of the SLT also extend to the
                                      The fundamental objective of Graymont’s Board of             development and implementation of a broad strategy that                                                                       ABORIGINAL, FIRST NATIONS
                                      Directors is to create shareholder value. To that end, the   reflects Graymont’s world-class vision. The strategy aims                                                                     AND INDIGENOUS PEOPLES
                                                                                                   to drive continuous improvement in six vital areas:
                                      Board recognizes that, in addition to delivering sustained
                                      profitability, the Company must maintain a high level of
                                                                                                                                                                                                                                 POLICY
                                      health-and-safety, environmental and social                                                                                                                                                Graymont recognizes that collaboration with First Nations,
                                      performance.                                                                                                                                                                               Aboriginal and Indigenous communities is essential for the
                                                                                                                                                                                                                                 realization of our mission and world-class vision. We strive
                                      In accordance with that underlying objective, and in

                                                                                                             COMMUNITIES
                                                                                                                                                                                                                                 to build and maintain effective long-term relationships
                                      keeping with the Board’s governance responsibilities, six
                                                                                                                                                                                                                                 based on trust and respect that are mutually beneficial.
                                      permanent Board Committees oversee specific aspects
                                                                                                                                                                                                                                 Our Aboriginal, First Nations and Indigenous Peoples

                                                                                                             SAFETY
                                      of the business considered crucial to Graymont’s
                                                                                                                                                                                                                                 Policy sets out the guiding principles of this commitment
                                      long-term viability. They include the Environment,
                                                                                                                                                                                                                                 and outlines focus areas for mutual value-creation
                                      Health, Safety and Community Engagement (EHSCE)
                                      Committee; the Employee Retirement and Health
                                      Benefits Committee; the Talent and Compensation
                                                                                                             CUSTOMERS                                                                                                           opportunities.

                                                                                                                                                                                                                                 Graymont’s Aboriginal, First Nations and Indigenous
                                      Committee; the Resources and Reserves Committee; the
                                      Audit and Finance Committee and the Legal and Risk                     ENVIRONMENT                                                                                                         Peoples Policy is available on our website: www.graymont.
                                                                                                                                                                                                                                 com/en/sustainability/aboriginal-first-nations-and-

                                                                                                             VALUE CREATION
                                      Management Committee. The EHSCE Committee, whose                                                                                                                                           indigenous-peoples-policy
                                      function is most relevant to this report, exercises due
                                      diligence by closely monitoring performance in those four

                                                                                                             PEOPLE
Graymont 2020 Sustainability Report

                                                                                                                                                                                                                                                                                                Graymont 2020 Sustainability Report
                                      vital areas and reporting back to the full Board on its
                                      activities and observations.

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SUSTAINABILITY REPORT - Graymont
Workforce Culture
                                      Graymont’s intense focus on workforce                           Pandemic Puts Safety Practices
                                      culture — particularly with respect to                          to the Test
                                      health and safety — demonstrated its true                       That commitment was put to the test early in 2020,
                                      worth in 2020, facilitating an all-out team                     as the first wave of the global pandemic began to batter
                                      effort that enabled us to significantly                         populations and economies in various regions of the world
                                      mitigate the impact of COVID-19 on                              where Graymont operates.
                                      Graymont’s people and operations.                               Because lime is deemed an essential industry, Graymont’s
                                                                                                      operations remained open throughout the course of
                                      As Graymont has grown and evolved into                          the year. This necessitated putting in place numerous
                                      a global industry leader, we have never                         measures designed to protect the health of employees and                                                                    Nevertheless, Graymont took all necessary precautions
                                      been shy to credit our success in large                         their families, while assuring the continuity of operations                                                                 to prevent the spread to other employees, while
                                      part to the efforts of the remarkable men                       and maintaining critical supply chains to customers.                                                                        supporting COVID-19-positive employees and their families
                                      and women — now numbering 1,576                                                                                                                                                             to ensure they had access to appropriate healthcare that
                                      — who bring their skills and energy to                                                                                                                                                      would help facilitate their speedy and complete recovery.
                                                                                                      THE COVID-RELATED MEASURES                                                                                                  As vaccines become more available in 2021, Graymont
                                      work every day at offices and plant sites                       AND PROTOCOLS ADOPTED INCLUDED:                                                                                             is committed to making certain they will be accessible
                                      across North America and Asia Pacific. In                                                                                                                                                   to all employees at no cost.
                                                                                                        Establishment of a COVID-19 Taskforce and
                                      return, the Company strives to provide                            complementary cells to constantly monitor
                                      competitive wages and benefits, a safe,                           the situation and lead the response as required                                                                           Outstanding Performance Belies Impact
                                      healthy work environment, and ample                               Creation of a COVID-19 Resources Hub that enables                                                                         of COVID-19
                                      opportunities for employees to grow                               employees to access relevant information, tools
                                                                                                                                                                                                                                  Given the COVID-related disruptions and distractions
                                      and develop in order to achieve their full                        and guidelines
                                                                                                                                                                                                                                  that arguably made 2020 a year like no other, it should
                                      potential.                                                        Arrangements for employees to work from home                                                                              come as no surprise that the safety performance of the
                                                                                                        whenever possible                                                                                                         mining industry, including the lime sector, was negatively
                                      SAFETY                                                            A stipulation that employees who must work                                                                                impacted by these events. For instance, the U.S.-based
                                                                                                                                                                                                                                  National Lime Association (NLA) reported a sharp uptick in
                                                                                                        from a Graymont facility adhere to enhanced
                                      Health and safety are core Graymont values — essential            personal-hygiene and cleaning practices and                                                                               the overall “incident rate.”
                                      to realizing our vision of being world-class in everything        observe social distancing                                                                                                 Against that backdrop, Graymont is particularly pleased
                                      we do. Nothing is more important than ensuring that our
                                                                                                        Implementation of formal protocols for reporting                                                                          to have bucked the trend and achieved significant
                                      co-workers return home safely to their families and loved
                                                                                                        COVID-19 symptoms, and determining if and when                                                                            improvements in two of its KPIs for 2020 — the Graymont
                                      ones at the end of the day. Hence our commitment to
                                      creating and sustaining a robust, safety-first culture, where     employees should not come to work                           Graymont took all                                             Reportable Incident Rate (GRIR) and the Graymont
                                                                                                                                                                                                                                  Severity Rate (GSR). We attained our best-ever GRIR
                                      everyone is committed to reaching the ultimate goal
                                      of zero injuries.
                                                                                                         Introduction of thorough site-screening procedures
                                                                                                                                                                    necessary precautions                                         at 1.73, and our second-best GSR at 18.4. The Graymont
                                                                                                                                                                                                                                  Lost Time Incident Rate (GLTIR), although not at a record
                                                                                                                                                                    to prevent the spread
                                                                                                         Adoption of staggered work schedules and the
                                                                                                         establishment of isolated work stations for certain                                                                      low, is below the previous five-year average, indicating
Graymont 2020 Sustainability Report

                                                                                                                                                                                                                                                                                                 Graymont 2020 Sustainability Report
                                                                                                                                                                                                                                  progress nonetheless.
                                                                                                                                                                    to other employees
                                                                                                         strategic functions

                                                                                                         Limiting in-person meetings to demonstrably                                                                              This exceptional performance in an extraordinarily difficult
                                                                                                         critical tasks                                                                                                           environment attests to the dedication and determination
                                                                                                                                                                    Despite those measures, a number of employees did test        of our employees to keep their workplaces safe, as well
                                                                                                         Placing strict limitations and, in some regions,           positive for COVID-19, with most of the cases attributed to   as to the Company’s proactive management of the
                                                                                                         an outright ban on air travel                              community transmission as determined by contact tracing.      COVID-19 threat.

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SUSTAINABILITY REPORT - Graymont
Nothing is more
                                      important than ensuring
                                      that our co-workers                                         CONTRACTORS

                                      return home safely                                          We have historically captured contractor and carrier
                                                                                                  incidents, good catches, near misses, and injuries/illnesses
                                                                                                  in our safety incident reporting system. During 2020,
                                                                                                  we have started extracting these numbers on a monthly,
                                                                                                  quarterly and annual basis and reporting them to the
                                      SAFETY SCORECARD                                            Board of Directors. The majority of contractors/carrier
                                                                                                  employees are not directly supervised by Graymont and

                                      1.73
                                                                                                  we do not have access to their hours worked, therefore
                                                                                                  we are reporting the raw numbers of good catches, near
                                                                                                  misses, and injuries/illnesses that occur. This heightened
                                                                                                  level of attention and transparency enhances our focus
                                      REPORTABLE
                                                                                                  on managing contractor risks. To that end, in 2021 we are
                                      INCIDENT RATE
                                                                                                  undertaking a contractor management project that will,
                                      (The benchmark 2020 US metal/non-
                                                                                                  in its first phase, standardize contractor, carrier and visitor
                                      metal mining industry average was 1.67.)
                                                                                                  site inductions and provide a platform with which
                                                                                                  to deliver and track this training via e-learning.

                                      0.92
                                      LOST-TIME INCIDENT RATE
                                                                                                  Graymont Safety Performance

                                      (The benchmark 2020 US metal/non-                           4.0                                                         80
                                      metal mining industry average was 0.72.)
                                                                                                                                                              70

                                      18.4
                                      SEVERITY RATE
                                                                                                  3.0                                                         60
                                                                                                                                                              50
                                                                                                                                                                                    Graymont
                                                                                                                                                                                    Lost Time Incident
                                                                                                                                                                                    Rate
                                                                                                                                                                                                         Graymont
                                                                                                                                                                                                         Reportable Incident
                                                                                                                                                                                                         Rate

                                      (A measure of lost and restricted                           2.0                                                         40                    US M/NM Annual       National Lime
                                      days per reportable incident.)                                                                                                                Industry Average     Association Incident
                                                                                                                                                                                    (GRI rate)           Rate
                                                                                                                                                              30

                                                                                 Incident Rates

                                                                                                                                                                    Severity Rate
                                                                                                  1.0                                                         20                    US M/NM Annual       Graymont
                                                                                                                                                                                    Industry Average     Severity Rate
                                                                                                                                                              10                    (LTI rate)

                                                                                                  0.0                                                          0
Graymont 2020 Sustainability Report

                                                                                                                                                                                                                                Graymont 2020 Sustainability Report
                                                                                                            2016 2017 2018 2019 2020

10                                                                                                                                                                                                                              11
SUSTAINABILITY REPORT - Graymont
Safety Culture Project
                                      The Safety Culture Project, a major initiative that focuses
                                      on the area of human behavior to help instill a robust
                                      safety culture, gained further traction in 2020. It is widely
                                      believed that a behavioral approach holds the key to the
                                      next “step change” advance in workplace safety. Simply
                                      put, because all human behavior is learned, “risky”
                                      behaviors can be unlearned and replaced by new, more
                                      desirable behaviors. To that end, Graymont aims to nurture
                                      a culture of stewardship and mutual consideration, where
                                      the main driver of behavior is the employees’ wish to stay
                                      safe as a team and look out for one another. In that type       Near Misses and Good Catches
                                      of environment, employees are motivated to operate in a
                                      safe manner and avoid undue risks, not because the rules        In 2020, Graymont operations continued to focus on            During 2020, behavior-related events accounted for some       Uniform Standards Help Drive Continuous
                                      and regulations say they must, but rather because they          advancing safety-culture maturity. Central to these efforts   6,400 — or more than 40% — of the approximately 15,000        Improvement Organization-Wide
                                      care about one another’s well-being: it is essentially          is a program that entails encouraging people                  reported near misses/good catches. That equates to
                                      a case of “we’ve got your back.”                                to jointly report occurrences that we dub “near misses”       roughly twice the number of behavior-related occurrences      With a view to further enhancing safety performance,
                                                                                                      and “good catches.” A good catch is a situation involving     reported in 2019, when we launched this initiative.           Graymont has adopted a multidisciplinary strategy that
                                                                                                      a potential hazard that is identified and resolved prior                                                                    stresses the value of teamwork and cross-functional
                                      The safety culture improvement work continued in 2020,
                                                                                                      to causing injury to a worker, while a near miss is an        A sustained upward trend in the reporting of such events      collaboration to achieve continuous improvement
                                      albeit scaled back due to the inability to travel and visit
                                                                                                      incident that resulted in no harm to a worker. Tracking       illustrates that our safety culture continues to gain         throughout the Company, in keeping with our
                                      sites. Most notably, the Pleasant Gap facility introduced
                                                                                                      these occurrences, which may be attributed to conditions      traction, and that Graymont employees understand              One Graymont culture.
                                      a composite safety score that includes leading indicator
                                                                                                      in the workplace and/or employee behaviour, helps us          and appreciate the value of accident prevention.
                                      measurements for all levels, including front line                                                                                                                                           To that end, a set of uniform health-and-safety standards
                                                                                                      identify opportunities for improvement before someone
                                      employees. This has allowed for a more objective criteria                                                                     Rather than being disciplined or exposed to other negative    has been developed and successfully embedded at
                                                                                                      gets injured.
                                      for positive recognition and behavior interventions.                                                                          responses, employees are encouraged to come forward           Graymont facilities in North America and New Zealand
                                      The Pleasant Gap management team has also continued             Historically, the majority of near misses and good catches    as teams in order to learn from the occurrences and receive   over the past several years. The year 2020 saw
                                      their formal interactions program whereby members               have been linked to unsafe, or potentially unsafe, work       positive reinforcement. Going forward, there is every         implementation of those comprehensive standards
                                      of the management team strike up conversations with             conditions — for instance, a machine guard that needs         indication to believe this approach will prove effective      get under way at recently acquired facilities elsewhere
                                      employees working on various tasks. These discussions           repairing or a housekeeping issue. Recognizing that most      in helping us identify systemic practices where further       in Asia Pacific, namely in Australia, Malaysia and the
                                      offer opportunities for positive reinforcement and              injuries also involve some element of behavior in the         risk-control is required.                                     Philippines. A first phase of implementation, focused
                                      employees’ responses are rated on the safety culture            causal pattern, we wanted to have a sharper focus on                                                                        on the six highest-risk standards, is complete.
                                      maturity scale from counterproductive to citizenship.           instances of inappropriate or unsafe behavior.                                                                              The implementation is on-going, with the objective
                                      In an era where it is not feasible to conduct on-site audits                                                                                                                                of having all standards fully implemented by
                                      of safety culture maturity, this is a grass roots effort at
                                      the Pleasant Gap facility to not only create a leading
                                                                                                      NEAR MISSES AND GOOD CATCHES
                                                                                                                                                                    Graymont aims                                                 mid-year 2021.

                                      metric that shows shifts in overall safety maturity but also
                                      helps develop leadership skills and increase interactions
                                                                                                      16,000
                                                                                                                                                                    to nurture a culture                                          Due to travel restrictions stemming from COVID-19,
                                                                                                                                                                                                                                  Graymont’s Asia Pacific Health and Safety (H&S) teams

                                                                                                                                                                    of stewardship and
                                      specific to safety culture and behaviors. In 2021, we will      14,000
                                                                                                                                                                                                                                  found themselves having to rely on virtual training and
                                      roll out a Safety Interaction Tracking System that will                                                                                                                                     best-practices sharing sessions to help keep the standards
                                                                                                      12,000
                                      allow us to scale up this approach across the organization,
                                      including Asia Pacific.                                         10,000
                                                                                                                                                                    mutual consideration                                          implementation on track. Fortunately, however,
                                                                                                                                                                                                                                  the Company’s H&S specialists demonstrated their
                                                                                                                                                                                                                                  penchant for innovation with the timely development
Graymont 2020 Sustainability Report

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                                                                                                       8,000                                                                                                                      of e-learning modules for each of the standards — tools
                                                                                                                                                                                                                                  that will prove especially useful to support and facilitate
                                                                                                       6,000                                                                                                                      H&S training in a social-distancing environment.

                                                                                                       4,000

                                                                                                       2,000

                                                                                                           0
                                                                                                                2016        2017      2018    2019      2020

12                                                                                                    Near misses      Good catches                                                                                                                                                             13
SUSTAINABILITY REPORT - Graymont
H&S Internal Audit                                                                                                                                                                      SCIENCE-BASED APPROACH
                                      During 2020, we commenced the third cycle of our                                                                                                                                        TO PHYSICAL DEMANDS
                                      comprehensive H&S Internal Audit program, which verifies                                                                                                                                Another noteworthy initiative launched in 2019
                                      compliance with more than 400 different requirements                                                                                                                                    and continued through 2020 involved partnering
                                      at each of our facilities. The audit exercise is intended to                                                                                                                            with a specialized professional ergonomist
                                      be constructive and aims to ensure conformance while                                                                                                                                    to identify and assess the most physically
                                      providing opportunities for the respective sites to learn                                                                                                                               demanding jobs at Graymont’s U.S. facilities.
                                      from one another and share good practices.                                                                                                                                              The objective is to gain a better understanding
                                                                                                                                                                                                                              of the physical demands of each position,
                                      Here again, our approach had to be adapted to comply
                                                                                                                                                                                                                              to help ensure that we hire personnel with
                                      with COVID-related travel restrictions that prevented
                                                                                                                                                                                                                              the appropriate physical capabilities in order
                                      teams of auditors from visiting most sites in person.
                                                                                                                                                                                                                              to reduce the risks of injury.
                                      Consequently, we developed a process that enables us
                                      to conduct virtual health-and-safety audits, albeit                                                                                                                                     Additionally, this process has helped us
                                      somewhat limited in scope. Virtual audits focused                                                                                                                                       identify opportunities for improvement with
                                      primarily on documentation review were successfully                                                                                                                                     respect to reducing the physical demands of
                                      carried out at four of the Company’s production facilities                                                                                                                              certain positions, either by improving the work
                                      over the course of the year. While there remains room
                                                                                                     Building on the Success of Legacy Safety                     Be Safe – Play It Smart
                                                                                                                                                                                                                              environment or work techniques. Graymont
                                      for improvement with the process, we now have the tools        Programs                                                                                                                 plans on extending the reach and scope
                                                                                                                                                                  The Be Safe – Play it Smart poster campaign, designed
                                      in hand to continue virtual audits on a broader scope, until                                                                to raise awareness of potential hazards among employees     of this initiative to other regions and other
                                                                                                     While embracing new approaches such as the Safety
                                      circumstances enable us to return to our usual on-site,                                                                     and their families, is another annual fixture on the        applications, including enhanced
                                                                                                     Culture Project, Graymont’s commitment to continuous
                                      in-person procedures.                                          improvement also involves leveraging the success             Graymont safety calendar. Thanks to the input and ideas     return-to-work and fit-for-duty
                                                                                                     of established programs like the Safety Challenge            generated by people from across the organization, we were   testing protocols.
                                                                                                     and our safety-awareness poster campaign. The annual         able to pinpoint specific messages tailored to the issues
                                                                                                     Graymont Safety Challenge, which made its debut in           and situations that dominated 2020. Not surprisingly,
                                                                                                     2015, unfortunately had to be cancelled this year due        given that we found ourselves in the midst of a global
                                                                                                     to the pandemic. Staged during the same week at all          pandemic, COVID-related threats figured prominently
                                                                                                     facilities across Graymont, the Safety Challenge features    in eye-catching campaign posters that urged everyone
                                                                                                     a highly engaging game-show format, whereby employees        to take appropriate precaution with respect to
                                                                                                     are divided into multidisciplinary teams and challenged      handwashing and personal hygiene, social distancing
                                                                                                     to show which side can demonstrate the best knowledge        and the protocols for recognizing and reporting symptoms.
                                                                                                     and understanding of Graymont safety standards
                                                                                                     and culture. It has proven to be a very effective training
                                                                                                     tool, providing an opportunity for peer-led learning
                                                                                                     that promotes a positive safety culture while fostering      SAMPLE POSTERS FROM THE 2020 CAMPAIGN
                                                                                                     camaraderie and teamwork. As soon as the sanitary
                                                                                                     measures will be lifted, Graymont’s Safety Challenge
                                                                                                     will be back at the forefront of our safety program.
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14                                                                                                                                                                                                                                                                              15
SUSTAINABILITY REPORT - Graymont
EMPLOYEE ENGAGEMENT
                                      AND RETENTION                                                                                                                     Going forward, we will be aiming to understand the
                                                                                                                                                                        reasons for the demographic distribution among our
                                      At Graymont, we strive to nurture a One Graymont                                                                                  employees, and looking at ways to ensure we do not have
                                      culture that motivates employees across the organization —                                                                        barriers to diversity in our workforce, that all employees
                                      in dozens of locations spanning North America and                                                                                 have equitable access to the resources and opportunities
                                      Asia Pacific — to take ownership of the tasks assigned                                                                            that allow them to reach their full potential, and that we
                                      to them and help sustain Graymont’s evolution into                                                                                continue to foster an inclusive workplace in which all
                                      a dynamic global industry player.                                                                                                 employees can be themselves.

                                      We understand that the long-term success of our business
                                      ultimately depends on effectively engaging with and
                                      mobilizing the remarkable men and women who must                 Equity, Diversity and Inclusion (EDI)
                                      implement our growth strategy, taking care to ensure
                                                                                                                                                                        GENDER DISTRIBUTION
                                                                                                       As Graymont continues to expand its global reach,
                                      that everyone — wherever in the world they happen to be
                                                                                                       the benefits of a diverse, inclusive workforce are
                                      situated — acts for the benefit of all of Graymont, rather
                                                                                                       increasingly clear and ever more relevant. Hiring
                                      than favouring any particular facility, region or function.                                                                                 Directors
                                                                                                       people from diverse backgrounds, nationalities and                                                                             Women

                                      We believe it’s not just what you do that contributes to our     cultures brings to the table a fresh array of perspectives,
                                      success, but also how you go about doing it. It’s about living   which fosters innovation, improved problem-solving                          Officers                                           Men
                                      up to Graymont’s shared values, which include integrity,         and decision-making, better employee performance
                                      respect, teamwork and accountability. Ongoing training           and, in turn, increased profits.                                          Senior
                                      and professional development are also crucial to fulfilling                                                                       Management Team
                                                                                                       Championing diversity, ensuring employees are treated
                                      Graymont’s mission, as is our commitment to open,
                                                                                                       equitably so they can reach their full potential, and
                                      two-way communication.                                                                                                                 All employees
                                                                                                       ensuring an inclusive culture so that each employee’s
                                      The Company’s people-centered approach and its                   unique perspective is heard and valued also contribute to
                                                                                                                                                                                              0%   20%   40%   60%    80% 100%
                                      commitment to making Graymont an employer of choice              enhancing a company’s reputation.
                                      is reflected in a loyal, engaged workforce that numbered
                                                                                                       Accordingly, in 2020, when Graymont forged ahead with
                                      some 1,576 full-time permanent employees at year-end
                                                                                                       concerted action to achieve greater equity, diversity and
                                      2020. The impact of the COVID-19 pandemic on the global                                                                           Training and Development
                                                                                                       inclusion, it determined that the logical place to begin was
                                      economy and markets necessitated the adoption of
                                                                                                       to take stock of the current reality in our workplaces vis-à-
                                      a restructuring and streamlining initiative that saw the                                                                          Graymont understands that, to attract and retain              a beat while successfully delivering critical skills training
                                                                                                       vis gender, since this data is already available.
                                      elimination of approximately 125 jobs over the course                                                                             top-quality people, we must strive not only to provide        both virtually and via e-learning. Although work is still
                                      of the year, while the voluntary turnover rate increased         The proportion of women to men among Company                     meaningful, challenging jobs and competitive                  underway to complete the transition to predominantly
                                      marginally, to 8.1%. There were no workdays lost                 directors and officers is at slightly under 17% for both         remuneration but also professional development                virtual training, a number of key subject areas already
                                      to strikes or work stoppages in 2020.                            directors and officers. Women are also under-represented         opportunities that enable employees to enhance their          have been re-designed and deployed, including induction
                                                                                                       in the senior executive ranks, accounting for a little over 9%   skill sets and prepare themselves to take on greater          training; health-and-safety-standards; and “respectful
                                                                                                       of the Senior Management Team. Overall, women account            responsibilities. The year 2020 was definitely challenging    workplace” training. Underscoring the remarkable success
                                                                                                       for a little over 14% of Graymont employees and 32% of           from a training perspective. But the threat posed by the      of those efforts is the fact that we reached a historic
                                                                                                       salaried employees.                                              global pandemic turned out to be the catalyst required        milestone in 2020, with our training programs reaching —
Graymont 2020 Sustainability Report

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                                                                                                                                                                        to help pivot our training strategy from mostly traditional   one way or another — every single Graymont employee
                                      EMPLOYMENT                                                                                                                        classroom-based to mostly virtual. Our HR teams proved        throughout the year, for the first time ever.
                                                                                                                                                                        to be more than up to the challenge, barely missing

                                      1,576
                                      FULL-TIME
                                                                  8.1%
                                                                  VOLUNTARY
                                                                                               11 YEARS 309               EMPLOYEES
                                                                                                                                                       0
                                                                                                                                                       STRIKE DAYS
                                                                                               AVERAGE LENGTH
                                      PERMANENT                   TURNOVER                                                WITH SERVICE
                                                                                               OF SERVICE
                                      EMPLOYEES                   (includes employees                                     GREATER THAN
                                                                  who retired)                                            20 YEARS

16                                                                                                                                                                                                                                                                                                    17
Challenges Abound
                                                                                                                                                                      Along with the myriad activities available through the
                                                                                                                                                                      Graymont WIN portal, employees can participate in other
                                                                                                                                                                      popular challenges designed to promote healthy lifestyles.
                                                                                                                                                                      For instance, the Maintain Don’t Gain Challenge encourages
                                                                                                                                                                      employees to eat healthy and exercise over the holidays,
                                                                                                                                                                      when people are tempted to over-indulge. Employees
                                                                                                                                                                      seeking to shed pounds or simply maintain their weight
                                                                                                                                                                      can access helpful resources that encourage healthy
                                                                                                                                                                      eating, physical activity and self-awareness throughout the
                                                                                                                                                                      holiday season.

                                                                                                                                                                      The May Step Challenge, staged as the title suggests during
                                                                                                                                                                      the month of May, encourages employees to step up their
                                                                                                                                                                      physical activity by adopting formal work-out programs
                                      Investing in Our People
                                                                                                                                                                      and training techniques. Participants can track their
                                      At the heart of the Company’s training curriculum is the                                                                        activity manually, or with a synchronized activity device.
                                      Investing in Our People (IOP) Program. This initiative is
                                      focused on providing key employees from the various              WIN Program Promotes Smart Lifestyle                           Employee Assistance Program
                                      production sites and corporate functions with the
                                                                                                       Choices
                                      wherewithal required to make the best-possible decisions                                                                        Graymont’s people-centered approach is evident as well
                                      about their respective areas of Graymont’s operations —          Graymont’s innovative Wellness is Now (WIN) Program,           in the Employee Assistance Program (EAP). EAP is
                                      and, in the process, to further his or her own career. To that   accessible via a portal on the Sprout social-media platform,   a confidential short-term counselling service, established
                                      end, IOP employs a variety of specialized training tools and     is designed to engage employees and their families across      to assist employees and family members encountering
                                      programs, all tailored to ensure that participants possess       the Company’s Canadian and U.S. operations and to assist       personal problems that impact their work performance.
                                      the high level of skills and motivation commensurate             them in making healthier lifestyle choices. WIN exemplifies    Those seeking assistance can receive support either in
                                      with Graymont’s quest to become a truly world-class              Graymont’s inclusive, people-centered culture. Participants    person, over the telephone or on-line, through a variety
                                      organization. Given that IOP training has proven in the past     are encouraged to take part in a wide variety of activities    of qualified, issue-based health and wellness resources.
                                      to be most effective when delivered in person, this particular   supported by the Sprout platform, combining competitive
                                      program has essentially been put on hold for the duration        challenges with social networking in order to reach their
                                      of the pandemic, while we develop appropriate virtual tools.     own particular
                                      Meanwhile, however, the IOP principles continue to be            wellness goals.
                                      reinforced and practiced in the Company’s North American
                                      plants, where they proved particularly effective in helping      In addition to promoting healthy lifestyles, WIN was
                                      to manage and mitigate the impact of COVID-19.                   designed to foster camaraderie and help instill a
                                                                                                       competitive team spirit. The program enables employees
                                      Over and above its in-house training and development             to connect with colleagues with similar interests, either
                                      initiatives, Graymont provides support for personnel who         in person or on-line, and to monitor their progress with
                                      wish to improve their formal education. Full-time employees      an easy-to-use activity tracker — all the while racking up
                                      who pursue approved post-secondary academic                      points which make them eligible for rewards that provide
                                      or vocational training can have their tuition costs              an extra incentive to adopt a healthy lifestyle. (Of course,
                                      reimbursed. The Company also offers financial assistance         in 2020, most of these interactions were staged virtually
                                      to the children of employees to help them take advantage         in order to comply with COVID-19 precautionary measures.)
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                                      of a wide variety of educational opportunities, through
                                      the Graymont Scholarship Program.                                U.S. WIN participants can qualify for reductions in the
                                                                                                       employee portion of their medical insurance premiums,
                                                                                                       while their Canadian colleagues earn WIN credits that can

                                      The program enables                                              be converted into “Wellness Dollars.” These dollars may
                                                                                                       be applied against the purchase price of sports gear and

                                      employees to connect                                             other merchandise, or gym memberships.

                                      with colleagues with
18                                    similar interests                                                                                                                                                                             19
Environmental Care                                                                                                             NUMBER OF GRAYMONT
                                                                                                                                                                                                                                                                     4.1

                                                                                                                                                                                                                                         2020 EMISSIONS IN NUMBERS
                                                                                                                                                                     ENVIRONMENTAL INCIDENTS
                                                                                                                                                                     500                                                                                             MILLION TONNES
                                      We are committed to operating in                                                                                                                                                                                               OF LIME PRODUCED
                                      a sustainable manner and proud of                                                                                                                                                                                              (QUICKLIME EQUIVALENT)
                                      the fact that Graymont’s essential                                                                                             400                                                                                             ▶ a 3.6% decrease compared to 2019
                                      products are part of the solution in                                                                                                                                                                                           ▶ 28.3% above 2004* levels
                                      terms of addressing many of today’s
                                                                                                                                                                     300

                                                                                                                                                                                                                                                                     25.1
                                      environmental challenges.                                                                                                                                                            Complaints

                                                                                                                                                                     200
                                                                                                                                                                                                                           Spills                                    PETAJOULES OF ENERGY
                                      SYSTEMS-BASED APPROACH                                                                                                                                                                                                         CONSUMED
                                                                                                                                                                     100
                                                                                                                                                                                                                                                                     ▶ a 0.2% decrease compared
                                      Graymont aims to consistently meet or exceed its                                                                                                                                     Deviations
                                                                                                                                                                                                                                                                       to 2019 intensity
                                      regulatory and permit obligations, while working
                                      proactively to minimize the environmental impacts                                                                                0                                                                                             ▶ 15.3% above 2004* levels
                                      of its operations. To fulfill our commitment, we integrate                                                                                                                           Exceedances
                                                                                                                                                                              2016 2017 2018 2019 2020

                                                                                                                                                                                                                                                                     5.2
                                      environmental accountability into our strategic planning
                                      and take a systems-based approach to our practices                                                                             ENERGY AND AIR
                                      with respect to environmental impacts.                           ENVIRONMENTAL
                                                                                                                                                                     The calcination of limestone to produce quicklime is an
                                      To help us fully comprehend our environmental                    PERFORMANCE -                                                 energy-intensive process. Improved energy efficiency                                            MILLION TONNES OF CO2eq
                                      performance and identify opportunities for further               2020 PROGRESS                                                 translates into reduced levels of air pollutants and GHG                                        OF SCOPE 1 GHG EMISSIONS
                                      improvement, Graymont relies on a dual-component                                                                               emissions as well as lower costs. The approach we have                                          ▶ 21.7% below 2004* levels
                                      system. First, we utilize our environmental compliance           Air emissions from Graymont’s lime kilns are carefully        taken to process control is integrated and multidisciplinary,                                     of fuel-related emission intensity
                                      tracking system to record all compliance-related                 tracked, either by real-time emissions-monitoring             encompassing Graymont’s Technical Services, Health,                                               (equates to 537,000 tonnes of avoided
                                                                                                       devices or through periodic testing, to ensure that limits                                                                                                      GHG emissions)
                                      activities, site by site. A comprehensive audit program,                                                                       Safety and Environment, Quality and, of course, Operations.
                                      which includes both internal and external elements,              are respected. Historically, the recorded incidents of        Our multi-disciplinary teams look at ways to ensure our

                                                                                                                                                                                                                                                                     164.7
                                      serves as a second line of control with respect to               non-compliance have mostly involved exceedances of            processes are as efficient as possible, in order to meet the
                                      compliance. During 2020, five Graymont facilities in             short duration detected by the emissions-monitoring           quality requirements of our customers while respecting
                                      North America and New Zealand were audited by third              equipment. Nevertheless, we remain stringent in terms         relevant environmental and emissions standards.
                                                                                                       of ensuring that the causal issues are addressed, and
                                      parties either virtually or onsite, as part of a three-year,                                                                                                                                                                   THOUSAND TONNES OF
                                                                                                       corrective actions taken to prevent recurrences.              Graymont’s total energy consumption decreased by 3.8% in
                                      environmental-compliance auditing plan.                                                                                                                                                                                        CO2eq SCOPE 2 GHG
                                                                                                                                                                     2020. That decrease primarily reflected reduced production
                                                                                                       Total environmental incidents in 2020 decreased by 12%                                                                                                        EMISSIONS
                                      Graymont has also developed and adopted comprehensive                                                                          compared to 2019, stemming from the impact of the
                                      environmental standards addressing seven key areas:              compared to 2019, marking the fourth successive year

                                                                                                                                                                                                                                                                     0.9
                                                                                                                                                                     COVID-19 pandemic and the resultant slow-down in many
                                      Air Management; Fugitive Dust; Water; Residual Materials;        of improved overall performance. Those latest results         economies. The Company’s overall “energy intensity,” that
                                      Energy; Planning and Reclamation; and Aesthetics. These          reflected a substantial 33% reduction in emissions            is the amount of energy used to produce one tonne of lime,
                                                                                                       “exceedances” — defined as events where emissions
Graymont 2020 Sustainability Report

                                                                                                                                                                                                                                                                                                               Graymont 2020 Sustainability Report
                                      standards have been implemented at all Graymont sites in                                                                       decreased by 0.2%.
                                      North America and New Zealand. Going forward, they will          exceed an environmental permit limit or internal standard                                                                                                     THOUSAND TONNES OF SOX
                                      be introduced to recently acquired facilities in Asia Pacific,   for a prescribed duration of time, which can be as little     As well, we continued working hard to reduce the volume                                         EMISSIONS
                                      as part of broader environmental-improvement plans               as six minutes. We also achieved a 14% year-over-year         and intensity of both NOx (oxides of nitrogen) and                                              ▶ 86% under 2004* levels
                                      tailored to the unique circumstances of each site.               decrease in spills. However, those improvements were          SOx (oxides of sulphur) emissions, which are by-products
                                                                                                       partially offset by a 39% increase in the number of           of combustion. Here again, the effects of the
                                                                                                       “deviations” – defined as a failure to meet a requirement
                                                                                                       other than an emissions limit. Given that only a handful of
                                                                                                       facilities accounted for more than 80% of those deviations,
                                                                                                                                                                     pandemic-induced economic slow-down was felt and,
                                                                                                                                                                     combined with initiatives to optimize fuel mixes, the
                                                                                                                                                                     utilization of monitoring equipment as well as specialized
                                                                                                                                                                                                                                                                     5.0
                                                                                                                                                                                                                                                                     THOUSAND TONNES OF NOx
                                                                                                       we will be able to focus intensely on the sites in question   training and process-control initiatives, we were able
                                                                                                       to help them come up with effective long-term strategies      to reduce NOx and SOx emissions by 12% and 6%                                                   EMISSIONS
20                                                                                                     aimed at curbing such occurrences in the future.              respectively.                                                                                   ▶ 22% under 2004* levels                  21
MONITORING AND CONTROL
                                      The mining and processing of minerals, including lime,
                                      can generate dust and other air pollutants which,
                                      left uncontrolled, risk becoming a nuisance and can                                                                          Additionally, we are including in this report for the first   level of 2004. We will be transitioning to tracking total
                                      also have a negative impact on the environment.                                                                              time our “scope 2” GHG emissions. We have historically        emissions intensity only in future reports, to better
                                      Consequently, Graymont operates in accordance                                                                                focused only on direct emissions from our production          account for all emission sources.
                                      with stringent company-wide environmental standards                                                                          facilities, where the lime production process generates
                                      and practices aimed at reducing air pollutants                                                                               the so-called “scope 1” emissions. But our facilities also    On top of its proactive initiatives, Graymont takes an
                                      and emissions.                                                                                                               consume a substantial amount of electricity which,            integrated approach to monitoring requirements with
                                                                                                                                                                   depending on the location, can also generate significant      respect to GHG emissions, in order to ensure that the
                                      Monitoring those efforts normally entails having                                                                                                                                           Company remains fully cognizant of any real or potential
                                                                                                                                                                   GHG emissions. Our “scope 2” metric reflects those
                                      Graymont environmental staff working on-site,                                                                                                                                              issues, and has ample time to make any changes that
                                                                                                                                                                   emissions stemming indirectly from Graymont’s electricity
                                      shoulder-to-shoulder with independent outside                                                                                                                                              might be necessary to ensure operational efficiency
                                                                                                                                                                   consumption. In 2020, Graymont facilities emitted some
                                      consultants, to facilitate compliance testing at the                                                                                                                                       and full compliance with regulatory requirements and
                                                                                                                                                                   164,700 tonnes of “scope 2” emissions in CO2 equivalent.
                                      various facilities. However, that collaborative                                                                                                                                            norms. We do our utmost to meet all requirements in
                                      approach proved to be impractical in 2020, due to                                                                            The volume of scope 1 GHG emissions emitted directly          the respective jurisdictions where we operate, and work
                                      COVID-19 precautions that limited access to sites,                                                                           from our production facilities being larger than scope 2      proactively to further reduce our GHG emissions intensity.
                                      particularly for Company employees. Nevertheless,                                                                            emissions, we will continue to focus our reduction effort
                                      we managed to arrange sufficient access for the                                                                              primarily on scope 1 while keeping an eye out for             % CHANGE COMPARED
                                      consultants to successfully complete 36 on-site                                                                              opportunities to reduce scope 2 emissions as well. Scope 1    TO 2004 EMISSIONS INTENSITY
                                      stack tests, an achievement all of the teams                                                                                 emissions will therefore remain our primary focus. In 2020,
                                      involved can be proud of.                                                                                                    we reduced total scope 1 GHG emissions by 5%, reflecting       0.00%
                                                                                                                                                                                                                                           2016     2017      2018        2019         2020
                                                                                                                                                                   in large part a reduction in production.

                                      CLIMATE CHANGE                                                                                                               Graymont’s overall emissions intensity, that is the volume     -5.00%
                                                                                                                                                                   of GHG emissions per tonne of lime produced (including
                                      Climate change is more than ever at the forefront             however, that easily attainable “low-hanging fruits” are       both process and combustion emissions), continued             -10.00%
                                      of today’s environmental issues. As a large emitter           limited in number, which means that achieving emissions        to decline, registering a 2% decrease from 2019 levels.
                                      of greenhouse gases (GHGs), Graymont recognizes its           reductions of any magnitude will require a sustained,          This latest reduction made 2020 the fourth year in a row      -15.00%
                                      responsibility to address and reduce its emissions,           long-term effort — an effort Graymont is prepared to make.     that the Company achieved reductions in its emissions
                                      although the path forward in that respect is fraught with                                                                    intensity. Following the same trend, our combustion-only
                                      challenges. For starters, the transformation of limestone     During 2020, Graymont in fact forged ahead with                                                                              -20.00%
                                                                                                                                                                   emissions intensity continued its gradual decline to an
                                      (CaCO3) into quicklime (CaO) inherently produces CO2,         multi-level discussions on potential pathways to a
                                                                                                                                                                   all-time low, reaching close to 22% below our baseline
                                      which comes directly from the stone, that is referred         decarbonized world. These strategic discussions engaged
                                                                                                                                                                                                                                 -25.00%
                                      to as process emissions. Furthermore, the calcining           all our internal stakeholders, from entry-level employees,
                                      process, which takes place in kilns at temperatures in        to management, to Board members, urging to rise to the
                                                                                                    challenge. They also encompass a wide array of know-how                                                                      Combusion Emissions                 Total Emissions
                                      the range of 900 to 1050°C, is very energy-intensive                                                                                                                                       Intensity                           Intensity
                                                                                                                                                                                      GRAYMONT’S

                                                                                                                                                                 2020 SOx SCORECARD
                                      and thus produces significant GHG emissions. Although         and disciplines, from process engineering, technology and
                                                                                                                                                                                      SOx EMISSIONS:

                                                                                                                                                                                      930
                                      hard to quantify precisely, in many applications, CO2 is      regulatory compliance to carbon pricing, market
                                                                                                    development and human resources. Through this                                                                                Partnering to Improve Our World
                                      partially reabsorbed through recarbonation of the lime,
                                      therefore reducing total GHG emissions from lime’s            sweeping new initiative, Graymont is striving to                                                                             Graymont constantly strives to leverage the unique
                                      life-cycle.                                                   progressively switch more facilities to low-carbon fuels                                                                     properties of lime products to help resolve and mitigate
                                                                                                    such as natural gas and biomass, and look into innovative
                                                                                                                                                                                      TONNES
                                                                                                                                                                                                                                 the many environmental issues our modern world
Graymont 2020 Sustainability Report

                                                                                                                                                                                                                                                                                              Graymont 2020 Sustainability Report
                                      Breakthrough kiln technologies, e.g. carbon-capture-and-      “net-zero” technology, all the while supporting and                                                                          faces. This goal could not be achieved without strong
                                      storage, are on the horizon. However, it will be quite some   encouraging our customers to continue exploring new
                                                                                                    lime-based solutions for today’s crucial
                                                                                                                                                                                      SOx EMISSIONS AVERTED                      partnerships with other companies equally committed
                                      time before we can avail ourselves of economically viable,
                                      commercial-scale solutions that will enable us to markedly    environmental issues.
                                                                                                                                                                                      IN OTHER INDUSTRIES BY                     to addressing environmental concerns in their particular
                                                                                                                                                                                      THE USE OF GRAYMONT PRODUCTS:              spheres of activity. We continue collaborating with

                                                                                                                                                                                      749,000
                                      reduce combustions and process emissions. In the                                                                                                                                           a number of partners to further advance environmental
                                      meantime, we are proactively seeking out opportunities        While those initiatives are playing out, Graymont has
                                                                                                    added two key metrics to its toolbox, both designed to                                                                       uses of lime, in applications such as the scrubbers
                                      for more-readily-achievable initiatives aimed at curbing                                                                                                                                   used to curb emissions like SOx from coal-fired
                                      emissions, such as best-in-class parallel flow regenerative   better inform decision-making. The Company’s rolling
                                                                                                    five-year production forecast exercise will now include                           TONNES                                     generating plants.
                                      shaft kilns for future capital projects, enhanced
                                      process-control systems and the increased use of biomass      a CO2 forecast. This new tool will focus on the projected
                                      and other low-carbon fuels. It must be said in that regard,   CO2 emissions associated with business decisions for the
22                                                                                                  coming five years.                                                                                                                                                                        23
WASTE REDUCTION
                                      At the heart of Graymont’s approach to waste reduction                                                                       MANGROVE REFORESTATION
                                      is the Company’s determination to create added value                                                                         IN THE PHILIPPINES
                                      and reduce its environmental footprint by fully utilizing all
                                                                                                                                                                   The 2020 environmental agenda at Graymont Philippines
                                      of the materials and resources touched by its operations —
                                                                                                                                                                   also saw the Company collaborating with the Community
                                      be it limestone, natural stone, overburden, fuel or other
                                                                                                                                                                   Environment and Natural Resources Office (CENRO)
                                      materials. The ultimate goal is to reach the point where
                                                                                                                                                                   of Brooke’s Point, which is situated in the south-eastern
                                      our processes essentially generate zero waste, by ensuring
                                                                                                                                                                   section of Palawan Island, a province of the Philippines.
                                      that no waste is sent to landfills or incinerators and that all
                                                                                                                                                                   The goal there was to rehabilitate 30 hectares
                                      products are reused or recycled to make new products.
                                                                                                                                                                   of mangrove forest, through an initiative that entailed
                                      Over the past few years, Graymont successfully pushed                                                                        planting several potted species, including Tangal,
                                      forward with an organization-wide initiative aimed at                                                                        Bakawan Lalaki and Api-Api. The Graymont Rio Tuba
                                      reducing stockpiles of by-products traditionally associated                                                                  crew pitched in to help with the planting, maintenance,
                                      with lime operations. Sales of these by-products tend                                                                        monitoring and patrolling of the grove. In addition
                                      to vary year by year, influenced by market conditions                                                                        to reforesting the area, this initiative succeeded in
                                      and product availability. Sales picked up in 2020, with                                                                      bringing back protected native species such as the
                                      421,000 tonnes sold company-wide. That represented                                                                           “flying fox” bats to the region.
                                      an increase of 22% compared to 2019. We remain firmly
                                      committed to finding new applications and opportunities
                                      for waste reduction, in line with our zero-waste goal.
                                                                                                                                                                   BEDFORD’S SUPPORT FOR
                                      2020 PARTIALLY                                                                                                               SUSTAINABLE AGRICULTURE
                                      CALCINED                                                                                                                     In 2020, Graymont’s Bedford plant entered into an
                                      BY-PRODUCT SALES                                                                                                             agreement with Le collectif de Bolton-Ouest, a

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                                                                                                                                                                   not-for-profit organization that aims to foster the
                                                                                                                                                                   revitalization and utilization of the region’s agricultural
                                                                                                                                                                   and forest resources in a sustainable, responsible
                                                                                                                                                                   manner. The collective’s areas of focus include enhancing
                                           THOUSAND TONNES
                                                                                                                                                                   soil fertility; improving forestry techniques in order
                                           of calcined by-products sold
                                                                                                                                                                   to conserve biodiversity; and advancing agricultural
                                                                                                        INDIAN CREEK                                               related research-and-development. Graymont is
                                                                                                        RECLAMATION                                                committed to helping support the NGO’s efforts over           HARVESTING WATER
                                                                                                        An ambitious reclamation project mounted by
                                                                                                                                                                   the next five years through donations of limestone
                                                                                                                                                                   products for use in soil conditioning and other agriculture
                                                                                                                                                                                                                                 AT RIO TUBA
                                                                                                        the team at Graymont’s Indian Creek facility in            applications. This partnership is an excellent illustration   In the Philippines, the team at Graymont’s
                                                                                                        the state of Montana was the recipient of a national       not only of the value of lime and limestone in addressing     Rio Tuba lime plant conceived and constructed
                                                                                                        environmental award from the U.S. Department               environmental and agricultural issues, but also of how        an ingenious rainwater and wastewater
Graymont 2020 Sustainability Report

                                                                                                        of the Interior’s Bureau of Land Management.               our Company strives to contribute in a meaningful             harvesting-and-storage facility. The so-called
                                                                                                        The Hardrock Environmental Award recognizes the            way to the well-being of the communities                      On-Site Detention (OSD) tanks not only provide
                                                                                                        outstanding nature of the work done at Indian Creek,       we call home.                                                 a valuable additional source of sometimes-
                                                                                                        which goes above and beyond legal requirements

                                                                                                                                                                                                                                                                                            2019 Sustainability Report
                                                                                                                                                                                                                                 scarce water for use in the plant’s operations,
                                                                                                        and everyday environmental stewardship. Rather,
                                                                                                                                                                                                                                 but also deliver a bonus side effect — namely
                                                                                                        the aim of the project was to bring the landscape back
                                                                                                                                                                                                                                 zero waste-water discharge. The OSD initiative,
                                                                                                        to a native form, thereby facilitating the return of the
                                                                                                                                                                                                                                 which represented the culmination of many
                                                                                                        wildlife that frequented this habitat before industry
                                                                                                                                                                                                                                 months of planning and study aimed at making
                                                                                                        arrived. Demonstrating its penchant for innovation,

                                                                                                                                                                                                                                                                                   Graymont 2020
                                                                                                                                                                                                                                 the plant more self-sufficient with respect to
                                                                                                        the plant is using limestone “fines” from its operations
                                                                                                                                                                                                                                 water supply, gathered widespread attention
                                                                                                        as a growth media for mountain mahogany, a native
                                                                                                                                                                                                                                 in the region, and the facility received the
                                                                                                        species that is a primary food source for the mountain
                                                                                                                                                                                                                                 prestigious Platinum Presidential Mineral
                                                                                                        mule deer, elk and big-horn sheep which are already
                                                                                                                                                                                                                                 Industry Environmental Award.
                                                                                                        beginning to return to the area, much to the delight
24                                                                                                      of everyone involved.                                                                                                                                                      25
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