ENVIRONMENTAL, SOCIAL RESPONSIBILITY & GOVERNANCE REPORT 2021
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
2021 ENVIRONMENTAL, SOCIAL RESPONSIBILIT Y & GOVERNANCE REPORT
OUR
SUSTAINABILITY
APPROACH
ain
ch ent
ply m
p ge
u na
S
a
m
Sustainability
Sustainability
MRC GLOBAL ESG REPORT TABLE OF CONTENTS
1 Our Company & Our Strategy
A Note from Rob Saltiel, President & CEO
2 Our ESG Journey
A Note from Dan Churay, EVP - Corporate Affairs & ESG Committee Chair
A Note on Data
4 About MRC Global
MRC Global at a Glance
6 2020 ESG Performance Summary & Key Achievements
Low-E Valves
Environment & Climate
Health & Safety
Ethics & Values
Diversity
Employee Development
8 Governance
Board Oversight over ESG
Board of Directors
Board Membership & Diversity
Board Committees
The Board’s Oversight of Risk Management
Executive Compensation & ESG Priorities
Management of the Legal & Regulatory Environment
Code of Ethics
Global Ethics Hotline
Corporate Policies
14 Environment & Climate
Our Products
Our Environmental Footprint
17 Our Clean Technology
18 Emissions in Our Operations
Scope 1 Emissions
Scope 2 Emissions
Scope 3 Emissions
Emissions Reporting
21 Water
22 Deforestation
23 Waste Management & Recycling
24 Managing Environmental Risk
25 Supply Chain Sustainability
Supplier Code of Conduct
Conflict Minerals
28 Social Responsibility
Health & Safety
You See It, You Own It
Stop Work Obligation
Daily Safety Meetings & Quarterly Safety Stand Ups
2020 Safety Awards
Short Service Employee Program
Life Protector Guides
Employee Assistance Program
Additional Programs
32 Navigating the COVID-19 Pandemic
33 Employees
Diversity & Culture
Talent Management
Employee Development & Learning Opportunities
Employee Relations
Monitoring for Success
37 Human Rights
Human Trafficking & Slavery
Anti-Bribery & Anti-Corruption
Community Involvement
About this Report
Forward-Looking Statements
40 Stakeholder Engagement
41 2020 SASB Index
2021 l Environmental, Social Responsibility & Corporate Governance Report
OUR COMPANY &
OUR STRATEGY
A NOTE FROM ROB SALTIEL, PRESIDENT & CEO
MRC Global is the largest As a distributor of PVF, we • diversify our product and While the energy transition
distributor, based on sales, sell products that control the service offerings to serve is inevitable, we believe that
of pipe, valves and fittings flow of liquids and gases in attractive new industry carbon-based energy will
(PVF) products and related a safe and environmentally sectors, including those continue to play a critical
infrastructure supplies and responsible manner that related to the energy role in supporting economic
services to the energy and minimizes impacts on our transition growth and human quality of
industrial sectors of the air, water and soil. Our life, particularly in developing
global economy. Our business customers specify their • invest in technology countries, for the next few
mix is diversified by region, PVF products to limit the systems and distribution decades. Many of our largest
industry sector and product greenhouse gases (GHGs) warehouse infrastructure customers are among the
line. We are a multi-cultural that their operations emit. For to improve operational leading investors in green
team of over 2,600 dedicated instance, 94% of the valves we efficiency and customer energy and decarbonization
employees with facilities in 17 sell are designated as “Low-E” reach technology. As they further
countries. We are committed (i.e., low emission) because rebalance their capital
• deliver attractive returns
to the success of our they prevent unwanted leaks investments toward green
for our shareholders
customers, our communities of harmful GHGs such as energy sources, we expect
through optimization of our
and each other. methane or carbon dioxide. to enhance our product and
inventory mix and working
In addition, the pipe, fittings service offerings to support
The four main business capital
and flanges that MRC Global their changing requirements.
sectors we serve are: provides are differentiated by A global energy transition is
Gas Utilities (storage and metallurgy, pressure rating, In summary, MRC Global
underway to address climate
distribution of natural temperature rating, and other will continue to leverage
change, and we expect that
gas), Downstream and requirements to transport our company’s 100-year
this will have significant
Industrial (crude oil refining, fluids and gases safely without history of serving the
impacts on MRC Global’s
petrochemical/chemical leaks or pollution. oil and gas industry by
future business. We believe
processing and general providing our customers
that our company has an
industrials), Upstream MRC Global’s corporate with critical pollution
important role to play in the
Production (exploration, strategy is focused on prevention equipment for
energy transition, and we
production and extraction of sustainable growth, margin their operations. At the same
are already participating in
oil and gas), and Midstream enhancement, and the time, we will work to establish
many green energy projects
Pipeline (gathering, development of long-term MRC Global as the leading
and decarbonization efforts.
processing and transmission customer relationships within PVF provider to the rapidly
In recent years, we have
of oil and gas). In addition the markets we serve. expanding energy transition
supplied PVF products for use
to our traditional focus on oil and decarbonization space.
Our strategic objectives are in biofuel, wind, hydrogen,
and gas, our end use-markets We believe that our skills,
to: geothermal, hydro-electric
also include mining, chemicals assets and experience will
and carbon capture and
production, desalinization position us for success in both
• increase market share in storage projects. As of this
plants, pulp and paper arenas, and I am confident
our four main business writing, we are competing to
processing, power utilities, our employees are up to the
sectors through superior participate in various green
green energy projects and task.
customer service and new energy and decarbonization
other industries.
value-added offerings projects around the globe.
1
2021 l Environmental, Social Responsibility & Corporate Governance Report
OUR ESG JOURNEY
A NOTE FROM DAN CHURAY, EVP – CORPORATE AFFAIRS
& ESG COMMIT TEE CHAIR
This year MRC Global Inc. can be followed in our proxy Global was engaged and area. Our North American
is celebrating its 100th statements for our annual the various policies that environmental data was
anniversary. We trace our meetings beginning with the the company adopted that more easily accessible than
roots back to the formation first one in 2013 through our impact ESG. We highlighted data in our International
of McJunkin Supply Company proxy statement for our 2021 our Core Values and our segment as North American
in 1921 in West Virginia by annual meeting. environmental and other ESG data was more centrally
Jerry McJunkin and Bernard efforts. maintained. We reported on
Wehrle. Since that time, over Our Core Values guided this data, as North America
120 companies have joined our founding companies In the intervening reports, represented over 84% of
our organization through and continue to guide our we began to assess what our revenue. We began our
acquisitions and mergers. In current company’s actions data was needed to drive reporting by utilizing the
2007, McJunkin merged with every day. For instance, our ESG efforts, especially Global Reporting Initiative
Red Man Pipe and Supply to Employee Development, regarding the environmental (GRI) Standards following
form the MRC Global that we one of our Core Values,
know today. Lew Ketchum, has been a keystone of our
a member of the Delaware constituent businesses since
Indian tribe, was the driving the beginning. Our founding
force behind the Red Man family owners cared for their
organization that he founded employees and desired for
in 1977 in Tulsa, Oklahoma. them to participate in the
Together, McJunkin and Red success of the business and
Man have held high ethical the growth of their careers.
and business standards Likewise, Involvement in
since their respective starts the Community, including
and have maintained these charitable endeavors, was a
standards as MRC Global Core Value for these families.
today. Safety Leadership has been
a fundamental Core Value
After their merger in 2007, in our company since the
the combined company beginning. Our founding
continued its environmental, families wanted to make sure
social and governance (ESG) that their employees went
journey well before its initial home every day without
public offering (IPO) in 2012. harm, and that remains our
For instance, as early as desire to this very day. Our
2008, prior to our IPO, our Core Values underpin our ESG
company created a set of efforts as well as all aspects of
Core Values to guide it and our business.
its employees, instituted a
risk management committee In 2018, we published our
and formed an independent first ESG Report. The ESG
audit committee. As a public Report that you are reading
company, we adopted the today is our fourth annual
policies listed on page 13. report. Initially, we began by
Our continued improvement reporting on the various ESG
in our governance practices activities and management
objectives in which MRC
2
OUR ESG JOURNEY
GRI’s core components. products and services that environment as well as implementation to create
Then, we adopted the core we provide to our energy other aspects of employee this improved reporting.
recommendations of the industry customers. development. In most cases, Improved data allows
Task Force on Financial parts of our business have better decision-making and
Climate-related Disclosures Data collection, analysis and maintained and managed tracking of progress.
(TCFD) and reported data verification continue to be this data, and now this
an important foundation to We continue on our ESG
using the Sustainable data is being elevated into
implement the company’s journey that began 100 years
Accounting Standards our strategic decision-
strategy. Without good, ago with McJunkin Supply
Board (SASB) standards for making. We are making
consistent, verifiable data, it Company, and we are looking
the Industrial Machinery & changes to our reporting
is not possible to set realistic forward to the next 100 years
Goods segment. and enterprise resource
goals, implement strong of providing our customers
planning (ERP) systems
This year, we continue to initiatives to meet those with critical products to
to collect better data. In
refine our data efforts and goals and measure progress support the world’s energy
2020, we implemented
have reported many of in achieving them. We have and infrastructure needs in an
a new human resources
our numbers on a global maintained good data on ethical and environmentally
information system
basis for the first time. We our health and safety efforts, friendly manner with the
(HRIS), which will allow
have continued our SASB our training for employees, appropriate governance to
us to have better metrics
reporting, now using a mix our community engagement support our mission.
around our employee and
of Multiline and Specialty and aspects of our employee organizational development
Retailers & Distributors and development and employee efforts, including our
Oil & Gas - Services SASB composition. We have been diversity initiatives. In 2021,
codes. This reflects the improving in our reporting we are implementing a
distribution business of our regarding our impacts on second phase of this HRIS
company and the types of climate change and the
A NOTE ON DATA
The data presented in this report Where data was not completely
was generally derived from available, the company has
various company reports and utilized reasonable, good faith
systems. However, in some cases, estimates to fill gaps, including
data was derived from third party estimates derived from trends
systems that vendors maintained in available data. For instance,
on behalf of the company or data regarding fleet emissions
provided to the company, which in the company’s international
may not be subject to verification. segment was estimated by the
For instance, data sources for company’s North American fleet
electric and water usage include vendor based on the number of
utility bills as well as reports from various classes of vehicles in the
landlords when landlords supply International segment using the
utility services to us. Data for same methodology as used for
North American vehicle emissions North America.
was provided by the company’s
fleet management vendor.
3
2021 l Environmental, Social Responsibility & Corporate Governance Report
ABOUT MRC GLOBAL
MRC Global is the largest distributor of • stainless and alloy fittings and flanges that MRC Global provides are
pipe, valves and fittings (PVF) products and flanges friendly to the environment because their
and related infrastructure supplies and • couplings purpose is to transport fluid and gases
services to energy and industrial sectors • anodes without leaks and prevent pollution.
of the global economy, based on sales. • gas products and The COVID-19 pandemic and downturn
MRC Global’s business mix is diversified accessories in energy markets impacted customer
by region, industry sector and product • coiled tubing demand for our products and services in
line. We are a global team in 17 countries • polyethylene pipe & the upstream production and midstream
dedicated to our customers, our fittings pipeline sectors the most and impacted
communities and each other. • fiberglass piping the downstream and industrial sector
• storage tanks to a lesser extent. Our Gas Utilities
As a distributor of PVF, we sell products • general oilfield supplies sector (which represented 33% of the
that control the flow of liquids and • gauges company’s revenue in 2020) has been
gases in a safe and environmentally • instrumentation relatively stable and has experienced
responsible manner. The products we • measurement products growth over the past five years. Our
provide prevent and minimize accidental • mill supplies customer spending in the Gas Utilities
leaks of hydrocarbons, gases and other • safety equipment sector is not determined by oil and gas
substances into the air and soil. Our
prices but rather customer needs to
product offering includes (among other
Our clients use these products to limit replace existing infrastructure, modernize
products) the following:
the greenhouse gas (GHG) emissions distribution systems and expand their
• carbon steel pipe in their operations. For instance, the markets. MRC Global has contracts with
• carbon steel fittings and overwhelming majority of the valves nine of the 10 largest gas utilities, and
flanges that we sell are designed to prevent 18 of the 25 largest gas utilities, in the
• valves unwanted leaks of harmful gases such as U.S. based on number of customers.
• stainless and alloy pipe methane. In addition, the pipe, fittings
We report revenue by industry sectors which include the following sectors in 2020:
% 2020 Revenue
33% 31% 23% 13%
Gas Utilities Downstream & Upstream Midstream
storage and distribution of Industrial Production Pipeline
sectors
natural gas crude oil refining and exploration, gathering, processing
petrochemical and chemical production and and transmission
processing and general extraction of of oil and gas
industrials underground oil and
gas
4
ABOUT MRC GLOBAL
Many of our largest and enhance our product such as alternative energy. projects, including those in
customers are among the and service offering as In fact, we already supply the following alternative
leading investors in renewable needed to support their products to alternative energy energy categories:
energy technology. As they changing requirements. Our end uses. We are working
Biofuels
further rebalance their capital warehouses, distribution to enhance our reporting
investment from traditional, network and technology systems to better capture
Wind
carbon-based energy to are capable of pivoting and sales to these end markets.
alternative sources, we expect enhancing our offerings for Even so, in 2020, we supplied Hydrogen,
to continue to supply them many industries and end uses, products to alternative energy Geothermal,
Hydro (water)
& Carbon Capture
& Storage
MRC GLOBAL AT A GLANCE
$2.6 B ~230 12,000+ ~2,600 $664 M 10,000
SALES1 LOCATIONS CUSTOMERS EMPLOYEES INVENTORY SUPPLIERS
OUR MISSION OUR VISION CORE VALUES
TO DELIVER SUPERIOR BE THE WORLD’S SAFETY LEADERSHIP
SERVICE TO OUR LEADING PROVIDER CUSTOMER SATISFACTION
CUSTOMERS AROUND OF PVF PRODUCTS BUSINESS ETHICS
THE WORLD AND AND SOLUTIONS OPERATIONAL EXCELLENCE
PROVIDE INNOVATIVE TO THE ENERGY FINANCIAL PERFORMANCE
SUPPLY SOLUTIONS AND INDUSTRIAL TEAMWORK
TO ENHANCE MARKETS EMPLOYEE DEVELOPMENT
OUR CUSTOMERS’ COMMUNITY / CHARITY
OPERATIONS INVOLVEMENT
1 - TRAILING 12-MONTH SALES FOR THE PERIOD ENDING DECEMBER 31, 2020
5
2021 l Environmental, Social Responsibility & Corporate Governance Report
2020 ESG PERFORMANCE
SUMMARY & KEY ACHIEVEMENTS
[ N/M ] DENOTES DATA THAT WAS NOT MEASURED
LOW-E VALVES
Total Valve Sales - $790 million of the company’s total revenue of $2.6 billion
Low-E Valve Sales for use in hydrocarbon applications were $739 million
(94% of total valve sales and almost 30% of the company’s total revenue).
LOW-E VALVE
SALES OF $739M
94% OF ALL
MRC GLOBAL ENVIRONMENT & CLIMATE
VALVE SALES
Global North America
(except as noted)
2020 2020 2019 2018
Scope 1 Emissions, metric tons (1) 9,909 9,658 14,402 14,421
Scope 1 Emissions, gigajoules (2) 143,949 138,307 206,106 206,424
DECREASE IN Scope 1 Emissions Intensity (3) 3.87 3.77 4.18 3.78
WATER AND ENERGY Average Miles per Gallon n/m 13.67 13.88 13.68
CONSUMPTION
Scope 2 Emissions, electricity consumption from
2020 49,211 39,131 42,213 36,376
hydrocarbon sources - gigajoules (4)
Scope 2 Emissions, electricity consumption from
13,350 4,287 0 0
alternative energy sources
Total Scope 2 Emissions – from all sources 62,561 42,418 42,213 36,376
Water Consumption, cubic meters 21,405 13,286 27,695 31,846
Material Recycled, tons (U.S. only) 507 557 420
26% INCREASE IN Percentage of Waste Recycled (U.S. only) 12% 10% n/m
RECYCLING
TONNAGE IN THE U.S. (1) 2018 and 2019 emissions were revised slightly from prior reporting to better align with SASB requirements.
(2) total fuel consumed in on-road equipment and vehicles, no fuel consumed in off-road equipment
2017 TO 2020
(3) emissions/1,000,000 unit total revenue
(4) excludes alternative energy sources
CERTIFIED Global
2020 2019 2018
ISO 14001 Certified Locations 6 8 10
ISO 9001 Certified Locations 34 31 31
LEED Certified Space 645,690 ft2 415,272 ft2
n/m
(59,986 m2) (38,580 m2)
62020 ESG PERFORMANCE SUMMARY & KEY ACHIEVEMENTS
HEALTH & SAFETY
Global
2020 WAS THE SAFEST
2020 2019 2018
RECORDED YEAR
Total Recordable Incident Rate (TRIR)* 0.49 1.27 0.7 IN OUR COMPANY’S
Lost Workday Rate (LWDR)* 0.17 0.41 0.25 HISTORY, AS OUR
Recordable Vehicle Incident Rate (RVIR)** 0.38 0.85 n/m SAFETY METRICS
Near Miss Frequency Rate (NMFR)+ 20.22 12.96 n/m REACHED RECORD
LOWS.
Work Related Fatalities 0 0 0
*per 200,000 hours worked
**per 1,000,000 miles driven
+The company changed NMFR recording methodology in 2020. 2020 and 2019 numbers were calculated using
this methodology.
ETHICS & VALUES
EMPLOYEE ACTIONS
Global North America
MUST ALWAYS REFLECT
2020 2019
THE HIGHEST POSSIBLE
Percentage of Workforce Trained on Anti-Corruption &
98% 97% STANDARDS OF BUSINESS
Anti-Bribery
Percentage of Workforce Trained on Workplace Equality, CONDUCT AND ETHICS.
98% 97%
Harassment & Discrimination
All employees are required within five days of employment to take compliance training, and EMPLOYEES ARE
employees have 90 days to take required refreshment training, so the training percentages
EXPECTED TO USE GOOD
above reflect a lag in new employee completion.
JUDGMENT, INTEGRITY,
AND COMMON SENSE IN
MAKING WORK-RELATED
DIVERSITY DECISIONS AND TO BE
ACCOUNTABLE FOR THEIR
Global North America ACTIONS.
2020 2019 2018
Workforce (Total), percent women 26% 26% 26%
Workforce Director and Above, percent women 19% 17% 22% THIS INCLUDES AVOIDING
Workforce (Corporate Functions), percent women 45% 45% 42% CONDUCT THAT IS LIKELY
Board of Directors, percent women or persons of color 33% 36% 36% TO DAMAGE MRC GLOBAL’S
BUSINESS OR
We operate in 17 countries and have an increasingly global and diverse customer and REPUTATION.
employee base.
EMPLOYEE DEVELOPMENT
Global
2020 2019 2018
Average Number of Training Hours Per Employee 17.2 20.8 15.3
We are committed to paying fair wages that sustain families. In the U.S., we pay all hourly
employees at least $15 per hour beginning in their first year of employment and in other
countries employees were paid prevailing wage for our industry.
72021 l Environmental, Social Responsibility & Corporate Governance Report
GOVERNANCE
MRC Global is committed achieving our performance the caption “Corporate
to adhering to sound goals and to maintaining Governance Matters”. The
principles of governance the trust and confidence 2021 Proxy Statement can
and has adopted corporate of investors, employees, be found on our website
governance practices that customers, suppliers, business (investor.mrcglobal.com) or
promote the effective partners, regulatory agencies the EDGAR portion of the
functioning of our Board, and other stakeholders. website of the U.S. Securities
its committees and our and Exchange Commission
company. The primary The following summarizes (www.sec.gov).
responsibility of our Board our corporate governance
is to foster the long-term practices. For a more
success of the company by detailed description of
promoting the interests of the company’s Corporate
our stockholders. Our Board Governance, please see
believes that strong corporate our 2021 Proxy Statement
governance is critical to beginning on page 30 under
BOARD OVERSIGHT OVER ESG
Our effective management and improving all relevant to determine MRC Global’s
of ESG factors is of long- issues with respect to ESG. effectiveness with all
term significance to our Our EVP – Corporate Affairs stakeholders. The following
stockholders, employees and chairs the ESG Committee, ESG Board Oversight diagram
CORPORATE communities and is critical which is comprised of depicts the oversight
GOVERNANCE to our company’s success. executives representing responsibilities of the Board
MATTERS Our Board has tasked its various functions within and two Board committees as
Governance Committee with our company including they relate to ESG matters.
THE 2021 PROXY STATEMENT
assisting the full Board in its operations, quality, safety,
CAN BE FOUND ON OUR
oversight of the company’s corporate services, marketing,
WEBSITE efforts on ESG matters. human resources, legal,
INVESTOR.MRCGLOBAL.COM Our Board reviews these quality, investor relations and
matters on a quarterly basis. supply chain management
In addition, the company leaders. The ESG Committee
has an ESG Committee that provides formal, documented
reports to the Governance ESG measures and initiatives
Committee and is responsible and ESG reporting with
for monitoring, assessing measures and benchmarks
8GOVERNANCE
ESG GOVERNANCE
STRUCTURE
Board of of
Board
MRCMRC
Global Inc. Inc.
Global
[1] [1]
Board of
Governance
Governance MRC Global
Board ofInc. AuditAudit
Committee
Committee MRC [1] ofInc.
Global Committee
Committee
Board
[2] [2] [3] [3]
[1]
MRC Global Inc.
[1]
Governance Most senior
Most senior DisclosureAudit
and and
Risk* Management CEO CEO
and and Disclosure
Risk Management
Committee individualsindividuals
with with Committee
Governance
Committee Executive
Executive accountability Controls Audit
Review
Controls Review
Committee
[2] accountability [3]
Committee
Governance
[4] Management teamteamfor ESG risk
Management for ESG risk Committee
Committee
Committee
Audit
[4]
[2]
Committee managementmanagement [5] [3]
[5]
Committee
[2] [3]
Most senior
Risk Management CEO and individuals with
Disclosure and
Data Data
and Cybersecurity
and Cybersecurity Executive
EVP - Most senior Controls Review
Disclosure and
RiskCommittee
Management
Committee
SVP -SVP - CEO and EVP - accountability
individuals with Committee
Committee
[4] Management team
Corporate
Corporate for ESG
Most risk
senior Controls Review
RiskCommittee
Management
[5] [6] OperationsExecutive
Operations CEO andAffairs
accountability
management Disclosure
[5] and
[5]
[4] Management
ExecutiveteamAffairsindividuals
for ESG riskwith Committee
Controls Review
Committee accountability
management [5]
Management team Businesses
for ESG risk and
Committee
Businesses and
[4]
management Functions [5]
Functions
[7] [7]
Data and Cybersecurity EVP -
SVP - ESG * ESG
Committee
Data and Cybersecurity Corporate
Safety
* Safety
Operations
SVP -
EVP -
[5]
Committee Management
Management
Affairs
Corporate
Data and Cybersecurity Council
Council
Operations EVP -
[5] SVP - Committee
Committee
Affairs Businesses and
Committee Corporate
Operations Functions
[5] Affairs Businesses and
*One senior
*One membermember
of the Safety
*Onesenior
senior member of of
thetheSafety
Safety [7]
Functions
Council is a member
Council of the ESG
isis aamember ofofthe ESG Businesses and
Council
Management member
Committee. the ESG
ESG [7]
Management Committee. Functions
SafetyManagement Committee. Certain
Management
ESG [7]
Council
Safetymembers of the Safety Council are
Committee
Management
ESG
Council
Safetyon the Risk Management Committee.
Committee
Management
*One senior member of the Safety
Council
[1] Oversight of ESG risk management.
[1] Oversight of ESG risk management.
Council is a member of Committee
the
*One senior member of the Safety ESG
Management
Council is a memberCommittee.
of the ESG
*One senior member of the Safety
[2] Non-executive Directors
[2] Non-executive appointed
Directors byis athe
appointed
Management
Council byBoard
member the toESGreview
Board
Committee.
of the and advise
to review on on
and advise
sustainability policies
sustainability and practices
policies and practices including
Management climate
including
Committee. change
climate and other
change and other
ESG matters.
ESG matters.
[1] Oversight of ESG risk management.
[1] Non-executive
[3] OversightDirectors
[3] Non-executive of ESG risk
Directors management.
appointedappointedby thebyBoard
the Boardto oversee the the
to oversee
[2] Oversight
[1] Non-executive
effectiveness
effectivenessofoftheESG Directors of appointed
risksystem
ofsystem
the management.
riskofmanagementby the Board
risk management to
andreview
and internal andcontrol.
control.
internal advise on
sustainability policies
[2] Non-executive Directors andappointed
practicesbyincluding
the Board climate
to reviewchangeandand other
advise on
[2] ESG
[4] Assists thematters.
sustainability
Non-executive
Governance policies
Directors and
Committee practices
appointedand byincluding
Board the Board
in
[4] Assists the Governance Committee and Board in identifying, assessing climate
to
identifying, change
review and
assessing and other
advise
and onand
ESG
monitoring matters.
sustainability
key risks
monitoring keypolicies
to and
thepractices
thetocompany.
risks company. including
Members Members climate
include the change
include CEO, EVPs,
the CEO, andEVPs,
other
[3] Non-executive
SVPs, ESG
SVPs, matters.
certain VPs and
certain Directors
VPs executive appointed
and executive directors. by the Board to oversee the
directors.
effectiveness ofDirectors
[3] Non-executive the system of risk management
appointed by the Board to andoversee
internalthe control.
[3] effectiveness
[5] Assists
Non-executive
the Audit
[5] Assists ofDirectors
the
Committee,
the Audit system
Committee,Board,ofBoard,
appointed risk
CEOmanagement
by
and theCFO
CEO Board
and inCFOand
to internal
inoversee
meeting theirthe
meeting control.
their
[4] Assists
obligations with
obligations the respect
effectiveness Governance
withof respect
thetosystemCommittee
disclosures
to disclosures andregarding
of riskregarding Board
management in and
identifying,
financial internal
results
financial assessing
and and
control.
and
results
other monitoring
[4] Assists
financial
other theand
financial key risksnon-financial
Governance to the
non-financial
and company.
Committee
disclosures.andMembers
Board
Members
disclosures. ininclude
Membersinclude the
identifying, CEO,
the
include EVPs,
assessing
CEO,
the CEO,and
SVPs,
[4] Assists
EVPs, SVPs, certain
monitoring the
certainkey VPs
Governance
VPs and
risksand toexecutive
the company.
Committee
executive
EVPs, SVPs, certain VPs and executive directors. directors.
andMembers
directors.Board ininclude the
identifying, CEO, EVPs,
assessing and
[6] Takes SVPs, certain
monitoring
steps steps
[6] Takes toVPs
key
to understand andtoand
risks
understand executive
themitigate
company.
and directors.
Members
information
mitigate information include
security the CEO,
risks
security risksEVPs,
by by
[5] Assists
SVPs,
completing the Audit
certain
regular
completing VPs Committee,
reviews
regular and executive
and
reviews Board,
approvals
and CEO
of theand
directors.
approvals CFOcompany’s
ofcompany’s
the in meeting
information their
information
obligations
[5] Assists
security program.
security the with respect
Audit
program. Committee,to disclosures
Board, CEO regarding
and CFOfinancial
in meeting resultstheirand
[5] other
[7] Responsible
[7] Assists financial
obligations
Responsible forand
with
theimplementing
for Audit non-financial
respect
Committee,
implementingto
MRC disclosures.
disclosures
Board,
Global’s
MRC CEO regarding
ESG
Global’s Members
CFOfinancial
andstrategy.
ESG in They include
results
meeting
strategy. Theytheir
are the CEO,
areand
EVPs,
other
represented SVPs,
in the certain
with
ESG respectVPs and
to
Management executive
disclosures
Committee directors.
represented in the ESG Management Committee and Safety Council.CEO,
financial
obligations and non-financial disclosures.
regarding
andMembers
financial
Safety include
results
Council. theand
[6] Takes
other steps to
EVPs, financial
SVPs, understand
certain
and VPs andand
non-financial mitigate
executive information
directors.
disclosures. Members security
include risks
thebyCEO,
completing
[6] Takes stepsregular
EVPs, SVPs, to reviews
understand
certain VPs andand and approvals
mitigate
executive of the company’s
information
directors. security information
risks by
[6]*One senior
security
completing
Takes member
program.
steps
*One senior of the Safety
regular
tomember theCouncil
ofreviews
understand is
and
Safetyand a member
mitigate
Council of the ESG
approvals
is a member Management
ofthe
the
information
of ESGcompany’sCommittee.
security
Management information
risks by
Committee.
[7] Responsible
security program.
completing for implementing
regular reviews andMRC Global’sof ESG
approvals strategy. They
the company’s are
information
represented
[7] Responsible
security program. in
forthe ESG Management
implementing Committee
MRC Global’s ESG and Safety
strategy. TheyCouncil.
are
represented in
[7] Responsible forthe ESG Management
implementing Committee
MRC Global’s ESG and Safety
strategy. TheyCouncil.
are
represented in the ESG Management Committee and Safety Council.
*One senior member of the Safety Council is a member of the ESG Management Committee.
*One senior member of the Safety Council is a member of the ESG Management Committee.
*One senior member of the Safety Council is a member of the ESG Management Committee.
92021 l Environmental, Social Responsibility & Corporate Governance Report
BOARD OF DIRECTORS
Our Board consists of eight members, including an independent Chairman of the
Board, six additional independent directors and our CEO.
BOARD MEMBERSHIP & DIVERSITY
Deborah G. Adams
Audit Committee Member The Board regularly company. When reviewing for membership on the
Compensation Committee Member considers the long-term director candidates, the Board without regard
make-up of our Board and Board considers each to race, color, religion,
how the members of our candidate’s qualifications sex, ancestry, sexual
Board change over time. for membership on the orientation, national origin
The entire Board selects Board, including the or disability. While the
nominees for the Board enhanced independence, Board does not have a
in accordance with the financial literary and formal policy on diversity,
procedures and criteria financial expertise in assembling our Board,
set forth in our Corporate standards that Audit our objective is to have
Governance Guidelines. Committee membership wide diversity in terms
Leonard M. Anthony may require and assesses of business experiences,
Governance Committee Chair The Board seeks a the performance of functional skills, gender,
Audit Committee Member diverse group of current directors who race, ethnicity and cultural
candidates who possess are proposed to be backgrounds. In 2020,
the background, skills renominated to the Board. 33% of our directors were
and expertise to make a The Board considers women or persons of
significant contribution qualified candidates color.
to the Board and the
BOARD COMMITTEES
Rhys J. Best The Board currently including (among others) with legal and regulatory
Chairman of the Board
maintains three risks from cyber incidents, requirements and the
committees that have ESG failures, reputational company’s financial
been tasked to assist with risks and the risks set forth reporting and internal
the oversight of their in our Annual Report on control systems.
respective areas of focus Form 10-K for the year
and certain categories of ended December 31, 2020 Compensation
risk management, and the that we filed with the SEC. Committee: reviews the
committees report to the The full Board is actively company’s employee
Board regularly on these involved in overseeing compensation policies
matters. All committees risk management for and practices to assess
play significant roles the company, including whether such policies
Henry Cornell in carrying out the risk material risks relating to and practices encourage
oversight function that climate change. long-term focus, support
typically focuses in their the retention and
areas of expertise. These Audit Committee: development of executive
three standing committees reviews and assesses the talent and discourage
oversee the following guidelines and policies excessive risk-taking
risks: governing the company’s behavior.
financial and accounting
Governance Committee: risk management and
assists the Board with its oversight processes and
oversight of the enterprise assists with the Board’s
risks that may be oversight of financial
Barbara J. Duganier applicable to the company and accounting matters,
Audit Committee Chair
Governance Committee Member from time to time, including compliance
10GOVERNANCE
THE BOARD’S OVERSIGHT OF RISK
MANAGEMENT
The Board, as a whole, is prioritize, address, manage, Consistent with this approach,
responsible for overseeing monitor and communicate one of the Board’s primary
our risk exposure, as part risks across the company’s responsibilities is overseeing
of determining a business operations and foster a and interacting with senior
strategy that generates long- corporate culture of integrity management with respect to
term stockholder value. The and risk awareness. key aspects of the company’s
Dr. Cornelis A. Linse
Board shapes our enterprise- business, including risk Audit Committee Member
wide risk policies, desire for As part of the company’s assessment, monitoring, Compensation Committee Member
risk taking and acceptable risk strategic planning process, managing and risk mitigation
tolerance levels that provide the company maintains a of the company’s top risks.
the foundation for our Risk Management Committee Our Board meets with senior
overall business strategy. The that assists the Board in management at regular
Board recognizes that risk identifying key risks. Our Risk Board meetings and, if
mitigation not only preserves Management Committee is necessary, at other times
value, but, when managed not a committee of the Board to discuss the strategy and
appropriately, can create but rather is comprised of success in addressing our
value and opportunity for the appropriate members of our identified key risks and any
company. management. potential disruptive forces Rob Saltiel
along with any other risks CEO
The Board recognizes that The Risk Management
that we may face.
purposeful and appropriate Committee meets
risk-taking in certain areas is quarterly and its principal
important for the company responsibilities are to review,
to be competitive and to assess and monitor any
achieve our long-term goals. material risks or exposures
Accordingly, the company associated with the conduct
has established an enterprise of our business, our
risk management (ERM) corporate culture, the internal
framework through which risk management processes
the company regularly or systems implemented to
identify, mitigate, monitor Robert L. Wood
identifies key risks that face Compensation Committee Chair
the company and carefully or manage these risks or Governance Committee Member
considers its appetite for each exposures and the company’s
risk. This ERM framework is policies and procedures for
designed to identify, assess, risk management.
EXECUTIVE COMPENSATION &
ESG PRIORITIES
Our compensation program interests with our long-term (TRIR) and lost workday rate
is designed so that higher interests and those of the (LWDR).
ranked executives in the company’s stockholders.
Company have a greater Some of the company’s safety A more detailed discussion of
percentage of their goals are reflected in the our executive compensation
compensation that is 2020 and 2021 short-term program is available in
contingent on the company’s cash incentive compensation our 2021 Proxy Statement
financial performance, opportunity for the CEO beginning on page 39 under
long-term stock price and other members of our the caption “Compensation
performance and individual executive leadership team. Discussion and Analysis.”
performance, described as Specifically, a portion of that
“at-risk” compensation. The compensation opportunity
company believes that having will be based on achieving
a significant portion of our our annual internal objectives
executive’s compensation at related to the company’s
risk more closely aligns their total recordable incident rate
112021 l Environmental, Social Responsibility & Corporate Governance Report
MANAGEMENT OF THE LEGAL &
REGULATORY ENVIRONMENT
The adoption of new GHGs, including carbon regulations could impose
regulatory developments dioxide, associated with costs on us or negatively
and environmental laws the burning of fossil fuels. impact the demand for
designed to support Certain states and regions the products we distribute
energy transition to low have also adopted or are and, consequently, our
carbon sources could considering environmental business. However, our
have significant impacts laws that impose overall Board and management
on the energy business caps or taxes on GHG continue to monitor
and ultimately MRC emissions from certain these developments
Global’s business. One sectors or facility and not only address
example of potential categories or mandate the risks attendant
regulatory developments the increased use of to the developments
is that governments electricity from renewable but also the business
at the international, energy sources. It is not opportunities that may
national, regional and possible to predict how arise. We consider
state level are at various new environmental laws these developments
stages of considering or to address GHG emissions when pursuing our
implementing treaties and would impact our business diversification and energy
environmental laws that or that of our customers, transition strategies.
could limit emissions of but these laws and
CODE OF ETHICS
We are committed to high all employees. Additionally, implementation by replacing
standards of honest and we have a stricter code of prior training with this
ethical behavior and integrity ethics to which our principal four-part ONE MRC Global ONE MRC Global
in carrying out our business executive and senior officers Compliance Training series Compliance Training
activities. Business Ethics is a must adhere. Moreover, to our employees in our consists of:
fundamental Core Value of our compliance function International region. The
our company. All employees routinely reviews recent International implementation
must follow our Code of developments in law so that also included localized WE ACT IN THE BEST
Ethics, compliance policies we can immediately update and translated content. INTERESTS OF THE
and applicable law in all of our policies and practices to Setting a company global COMPANY
our activities and operations maintain our high standards. standard for ethics and
on a worldwide basis. We conduct expectations,
rely on the good judgment, Given that our workforce is these modules transform HOW WE TREAT OUR
high standards and example distributed across 34 U.S. complex legal topics into
CUSTOMERS
of our directors, officers and states and 17 countries, we easily comprehended
employees as the principal utilize an on-line learning practices. Employees learn
guide to ethical conduct. management system (LMS) to our requirements in practical,
deliver broad based training HOW WE TREAT OUR
We conduct training and actionable terms.
to our employees. In 2019, SHAREHOLDERS
testing of our officers and
employees on these issues on we revised our compliance
a regular basis; for example, training to be more
on an annual basis we require interactive to better engage HOW WE TREAT OUR
employees to complete an our employees in important COMMUNITIES
online compliance ethics topics that impact compliance
questionnaire concerning and our cultural ethics. We
their activities and certify implemented this training in
their compliance with our 2019 to employees in North
ethics policies. We also America where over 84% of
conduct online and live one- our revenue was derived.
hour compliance training for In 2020, we completed this
12GOVERNANCE
GLOBAL ETHICS HOTLINE
Our Global Ethics Hotline Every location globally has a related investigations,
ETHICS allows employees and poster with information on including any whistleblower
HOTLINE other individuals to how to access the hotline. reports. Our General Counsel
anonymously report unsafe, We conduct an annual ethics provides a summary report
illegal, unethical behavior, survey of our employees to the Audit Committee
harassment and other to determine if they have of our Board each quarter
concerns about conduct ethics concerns. In that regarding the number and
related to our business to survey, we ask them to let nature of the employee
NAVEX Global, MRC Global’s us know if they are aware concerns. Of course, any
independent third party of the hotline and provide major whistleblower report is
hotline operator. Our Global them with information on communicated to the Audit
888-601-3911
Ethics Hotline is available where to access it. Finally, Committee in accordance
24 hours a day, seven when conducting branch, with our Whistleblower Policy.
days a week. The hotline distribution center or other
operators conduct the hotline site audits, we request
in multiple languages to confirmation that the
address our employees in the hotline has been adequately
various countries in which publicized.
we operate. We proactively
communicate the existence We maintain reports
HTTPS://WWW.
of our Global Ethics Hotline. regarding concerns reported
REPORTLINEWEB.COM/ on the hotline and any
MRCGLOBAL
CORPORATE POLICIES
Our adherence to our • Antitrust Compliance Policy
corporate policies is the
first step in maintaining our • Anti-Discrimination & Anti-
corporate integrity. Our most Harassment Policy
important policies related
• Environmental Policy
to our corporate integrity
include: • Conflict Minerals Policy
• Code of Ethics • Code of Conduct for
Suppliers
• Code of Ethics for Senior
Officers • Whistleblower Policy
• Human Rights Statement • Privacy Statement
• Anti-Slavery & Anti-Human • Business Data Use CORE VALUES
Trafficking Statement Statement SAFETY LEADERSHIP
CUSTOMER SATISFACTION
• Gifts & Hospitality Policy
BUSINESS ETHICS
• Anti-Bribery & Anti- OPERATIONAL EXCELLENCE
Corruption Policy FINANCIAL PERFORMANCE
TEAMWORK
• Related Party Transaction EMPLOYEE DEVELOPMENT
Policy COMMUNITY / CHARITY
INVOLVEMENT
• Dignity at Work & Equal
Opportunity Statement
• Delegation of Authority
Policy
132021 l Environmental, Social Responsibility & Corporate Governance Report
ENVIRONMENT & CLIMATE
Our company is committed to gains and cost reductions), MRC Global’s opportunities to
acting in an environmentally increase our revenue through make a positive impact on
responsible manner and demand for Low-E valves our environment are two-
continually improving our and other pollution control fold: the products we provide
environmental performance. products and services, and, to our customers and the
Our efforts to address most importantly, benefit our environmental footprint that
climate change allow us to society by preserving our our operations create.
potentially reduce operating planet.
costs (e.g. through efficiency
VALVE-
RELATED
FUGITIVE
EMISSIONS
TYPICALLY REFERS
TO THE MEASURABLE
OUR PRODUCTS
LEAKING FROM THE
STEM SEAL AREA MRC Global plays a key role consider these targets when applications represented
OR PACKING, A
DEFORMABLE MATERIAL
in positively impacting our designing, constructing and almost 30% of the products
THAT PROVIDES A SEAL environment because we are operating their facilities. For that we sold in 2020. In
AROUND THE STEM
a distributor of products that example, as a distributor, addition, most of the pipe,
prevent hydrocarbons, gases we purchase valves and flanges and fittings that we
LOW-E VALVE - A VALVE OR
VALVE PACKING THAT WILL
and other substances from actuators designed in sell are also designed to
NOT RELEASE FUGITIVE leaking or escaping into the compliance with Recognized prevent pollution and the
EMISSIONS GREATER THAN environment. Pipe, valves and Generally Accepted escape of GHGs.
100 PPM. [1] and fittings when sourced Good Engineering Practices,
from reliable, high-quality which regulate valve stem When assessing MRC Global’s
suppliers and used in the leakage to minimize fugitive opportunities to facilitate
appropriate application, gas emissions such as a lower carbon footprint,
prevent pollution. The methane. By working with the shift to Low-E valves
products we provide are not MRC Global to sustainably for use in hydrocarbon
only fundamental to moving manage their supply chain, applications is a strategic
and storing hydrocarbon energy producers can focus for us. Commonly,
products and other operate with confidence that “fugitive emissions,” in the
substances in a safe and those products will perform valve industry refers to the
environmentally responsible as intended and prevent measurable leaking from
manner but prevent harmful pollution. the stem seal area between
emissions from negatively the stem and housing.
impacting the environment. Our sales were $2.6 billion in Between 60 – 85% of fugitive
2020. We continue to offer, emissions of hydrocarbons,
Several integrated oil and expand our offering of, gases and other substances
companies (IOCs) and many products that prevent and in the chemical processing
other companies in the minimize accidental leaks and refining industries is
energy industry, many of of hydrocarbons, gases and attributed to valves, due in
[1] ISO 15848-1:2015
whom are our customers, other substances into the part to the cumulative effects
have published targets air, water and onto the land. of large numbers of valves in
to reduce their methane As discussed below, Low-E processing plants.
emissions. These customers valves for use in hydrocarbon
14ENVIRONMENT & CLIMATE
In 2020, our company’s are, therefore, not required to
total valve sales were have any Low-E certificates.
approximately $790 million, Additionally, they are not used
of which roughly 94% were in hydrocarbon applications
sales of Low-E valves for use and as such are not generally
in hydrocarbon applications. a source for fugitive emissions
We experienced a 4 percentage because they are generally
point increase in the used to control steam rather
percentage of our Low-E than hydrocarbons. MRC
valve sales in 2020 compared Global keeps all manufacturer
to 2019. MRC Global also Low-E certificates and
purchases valves, such as manufacturer’s material test
brass and bronze valves, reports (MTRs) on file, and
for use in non-hydrocarbon they are available through our
services such as water and quality assurance function.
air service. These valves are
not considered Low-E and
OUR ENVIRONMENTAL FOOTPRINT
MRC Global strives to limit time and seek efficiencies to inventory. Because the RDCs
the negative effects our reduce use of these resources receive most of the product
operations leave on our and resulting emissions. We we sell, individual branches
world by creating an efficient have recycling programs to have reduced the number
supply chain, which reduces minimize waste from used of products they order and
the carbon footprint of pallets, cardboard, office receive, thereby reducing the
deliveries to our distribution paper and other recyclables. transportation used to deliver
centers and branches and, products to and from the
ultimately, our customers, In general, we know that the branches. We continuously
while conserving resources. primary way we can continue review the efficiency of
to reduce our carbon operations.
Overall, as a distributor, we footprint is to do what we
are engaged in a relatively do best – create an efficient Our shift to greater use
low amount of manufacturing supply chain. By identifying of e-commerce, digital
and assembly, mostly through and utilizing the most efficient transactions and our
the actuation and valve method to move products MRC Global Online
REFINERY
modification services that from one place to another, (MRCGOTM) customer and EMISSIONS
we offer our customers. Our we create efficiencies for our supplier interface allows APPROXIMATELY 60% OF
REFINERY GREENHOUSE
energy inputs are primarily customers and our business. greater efficiency in our GAS EMISSIONS, SUCH AS
electricity for lighting, heating This reduces cost, increases operations. MRCGO METHANE, ESCAPE
THROUGH VALVES. [2]
and office and warehouse financial returns for our simplifies the procurement
equipment, natural gas for business and contributes to process and allows customers
heating and gasoline for the health of the environment to efficiently order our
company sales and delivery by reducing the fuel and GHG company’s products online.
vehicles. Our air emissions emissions required for us to In 2020, approximately 35%
impact is limited to CO2 and operate. of MRC Global’s revenue was
is not attributable to nitrogen through e-commerce, with
oxides, sulphuric oxides or Our hub and spoke system, an increase to 39% (48% in
other significant air emissions, whereby our regional North America) in the fourth
including those from distribution centers (RDCs) quarter of 2020. We expect
nonmethane volatile organic receive the vast majority of e-commerce based revenue
compounds, particulate the product we sell, then to continue to increase. In
matter and hazardous air resupply our branches when 2020, as our e-commerce
pollutants. We do not utilize products are needed, is offering increased, for certain
large amounts of water. We designed to create efficiencies customer segments and [2] Petroleum Refinery National Case Results,
review our resource usage and reduce the product geographic markets, we Environmental Protection Agency
in these areas from time to that we must maintain in began shipping more to our
15ENVIRONMENT & CLIMATE
customers directly from RDCs, We conduct a yearly review of For example, an
which reduced the need to our register of environmental environmental improvement
ship to our branches to fulfill risks and opportunities, opportunity occurred in
orders. We closed two of our then develop plans for 2020 when we opened our
RDCs in the U.S. and 25 other improvements (i.e., risk new Valve Engineering &
facilities to meet demand reduction, waste reduction, Modification Center, the
more efficiently. These etc.) for the coming year. The final addition to our flagship
changes further reduced our risks and opportunities are Houston Operations Complex
shipping needs and, thus, our arranged into operational, in La Porte, TX.
carbon footprint. property, corporate • 127,000 ft2 (11,799 m2)
procurement and initiatives or facility
Another approach we use to projects and are then given
evaluate our carbon emissions to appropriate personnel • LEED certified for energy
relates to fuel usage, electrical within the company for action efficiency
usage and solid waste and completion. Completed • as is our neighboring
creation in our operations. We projects are retained in 415,000 ft2 (38,555 m2)
work closely with our vendors the register to document RDC
of the applicable service to improvements to our
gather and review that data. • and 78,000 ft2 (7,246 m2)
systems and environmental
We seek to reduce the rate office building
performance.
of consumption of those
resources in relation to the
volume of our business.
162021 l Environmental, Social Responsibility & Corporate Governance Report
OUR CLEAN TECHNOLOGY
In addition to our core impacts on the environment.
function of providing PVF ValveWatch employs small
products, such as Low-E sensors installed on or near
valves, to protect the each valve that log precision
environment, MRC Global measurements at high data
has worked with oil and sample rates to capture
gas operating companies the information needed to
to develop and deploy an properly assess valve and
automated, online monitoring actuator condition during
solution for critical valves every operation. The result
that reduces the safety and is a calculable high level of
environmental risks associated safety and environmental risk
with valve failures and prevention that cannot be
degradation. achieved with any other test
or analysis approach. Using
MRC Global’s ValveWatch® this information, customers
is an automated, online valve can remove valves for repair
monitoring system for critical or replace them before they
valves and actuators. Users fail. This has the added
can remotely monitor a valve benefit of preventing leakage
or actuator’s performance and of GHGs, hydrocarbons or
correct degradation before other substances due to valve
it effects safe and reliable failure.
operation causing harmful
PRODUCT
QUALITY
ASSURANCE
PROGRAM
MANUFACTURER
QUALITIFICTION
PRODUCT
INSPECTION
NON-CONFORMANCE
RESPONSE PROCESSES
172021 l Environmental, Social Responsibility & Corporate Governance Report
EMISSIONS IN OUR OPERATIONS
Nearly all of our total emissions and intensity. We Scope 3 – indirect emissions
emissions impact that result report our emissions as not covered in Scope 2 that
from the operation of our Scope 1, Scope 2 and Scope 3. occur in MRC Global’s value
business are attributable to chain, such as third party
(i) our fleet of cars and trucks, Scope 1 – emissions emitted transportation and logistics
(ii) consumption in and use of directly from our operations providers
our facilities, and (iii) our use and fleet
of third party transportation
Scope 2 – emissions that
and logistics providers in our
result from electricity, natural
value chain. Because of this,
gas or other fuel used to light,
energy efficiency is critical to
heat and operate our facilities
continually reduce our total
SCOPE 1 EMISSIONS
SCOPE 1 Emissions emitted directly from our operations and fleet
EMISSIONS EMITTED
Global North America
DIRECTLY FROM OUR (except as noted)
OPERATIONS AND 2020 2020 2019 2018
FLEET Scope 1 Emissions, metric tons (1) 9,909 9,658 14,402 14,421
Scope 1 Emissions, gigajoules (2) 143,949 138,307 206,106 206,424
Scope 1 Emissions Intensity (3) 3.87 3.77 4.18 3.78
Average Miles per Gallon n/m 13.67 13.88 13.68
(1) 2018 and 2019 emissions were revised slightly from prior reporting to better align with SASB requirements.
(2) total fuel consumed in on-road equipment and vehicles, no fuel consumed in off-road equipment
(3) emissions/1,000,000 unit total revenue
In 2020, our North American to improving our average We are exploring the use
operations represented fuel consumption. We are of compressed natural gas
84% of our global revenue. committed to reducing our (CNG), hybrid CNG/gasoline
CO2 emissions by switching and electric or hybrid electric
In 2020, our absolute vehicle our fleet vehicles from eight- engines in our trucks when
emissions were down cylinder gasoline engines to the infrastructure exists near
dramatically due to a large six-cylinder and four-cylinder our branch locations and the
reduction in our fleet size as gasoline engines where operating costs make sense
well as restrictions on travel feasible. Since 2018, we for our business. Moreover,
in response to the COVID-19 have liquidated 681 vehicles, we have replaced our
pandemic. Vehicle emissions replaced 134 out of the 681 gasoline and diesel-powered
intensity was 3.87 in 2020. liquidated, and added 47 new forklifts with electric-powered
vehicles into the fleet. Total forklifts where feasible.
We actively monitor and
percentage, 0.9% replaced Additionally, newer clean
track our fleet emissions
with environmentally efficient burning diesel trucks are
trends and are committed
vehicles. being introduced to us by
18You can also read
