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Dear Stakeholders,

I am pleased to present our Sustainability Report for the year 2023. At Austin Powder, we are deeply committed to sustainable business practices and recognize their crucial role in our company’s success, our planet’s well-being, and future generations’ prosperity.

In 2023, we made significant progress in our sustainability journey, showcasing resilience and innovation. Despite challenges such as geopolitical tensions and disruptions in global commodity markets, our unwavering commitment to safety, strong customer focus, and the “Power of Family” have been pivotal in meeting customer demands and securing supplies across our operations.

One of our notable achievements this year was the development of a lead-free primary explosive for detonators. This environmentally responsible innovation ensures the availability of raw materials and incorporates a safer manufacturing process, significantly reducing our environmental impact.

Following the closure of our AOP (Nitric Acid and ANSOL plant) in August 2023, we substantially reduced greenhouse gas and NOx emissions by over 60% in Mexico. This strategic move was part of our ongoing efforts to mitigate operational risks and minimize our environmental footprint.

Additionally, we have made significant strides in decarbonizing CO2 at our USN Plant, ensuring that the emissions meet beverage-grade purity specifications. By sending over 53,434 tons of CO2 annually to a liquefaction plant, we effectively reduce our emissions, equivalent to taking 11,616 cars off the road.
The Sustainability Report aims to communicate our performance in key areas and address ESG-related challenges and opportunities. Through this report, we align our values with sustainability, improve our financial performance, strengthen stakeholder confidence, and contribute to a sustainable development roadmap.

We are acutely aware of climate change and the explosives industry’s evolving environmental and safety regulations. Austin Powder stays updated with relevant regulations and standards, ensuring that we meet the highest safety, quality, and compliance standards, which align with global and local expectations.

Our relationship with local communities and stakeholders is increasingly important at every site where we operate. We are committed to open and transparent communication with communities and seek to build strong, mutually beneficial relationships.

We have also strengthened our corporate social responsibility policies. We strive to be a responsible employer, ensuring safe and fair working conditions for our employees. Additionally, we promote diversity and inclusion in our work environment, fostering a culture that values and respects the diversity of our team members.
At Austin Powder, we aim to lead our industry in business performance and sustainability. We are committed to pursuing solutions that drive responsible and environmentally friendly economic growth. Our vision is based on collaboration with strategic customers and suppliers, commitment to talent and excellence, and anticipation of future market needs.

The sustainable and social results are the outcome of the work and commitment of the entire Austin Powder team. I am convinced this journey will lead us to improve our practices, seek new ways to innovate and lead in sustainability.
Sincerely,

John D. Rathbun
President & CEO
Austin Powder Holding Company

I am pleased to share Austin Powder’s 2023 Sustainability Report, highlighting a year of progress towards defining and implementing our sustainability strategy.

Austin Powder’s mission is to improve the world we live in through the safe and responsible use of explosives. We fully understand our stakeholders’ expectations for us to operate as a responsible business. Sustainability has been identified as one of Austin Powder’s strategic goals, prompting us to incorporate the Corporate Sustainability function into our Global Leadership team.

In 2023, we made significant strides in developing our Sustainability Master Plan for 2023-2026, which includes:
Re-measuring Austin Powder’s impact on climate change, the environment, and key stakeholders.

• Gaining a deeper understanding of risks related to climate change, biodiversity loss, and community engagement.
  Integrating sustainability into our corporate strategy and decision-making processes.
• Conducting Life Cycle Assessments and obtaining Environmental Product Declarations for some of our most innovative product lines, such as E*STAR, to understand their impact across various categories throughout their entire life cycle.
• Fostering innovation to develop sustainable products.

Our goal is to contribute to sustainable development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

At Austin Powder, we believe that through innovation, a carbon-neutral and zero-biodiversity loss economy is achievable.

Join us on this fantastic journey!

David Fernández
Global Director
Strategy, Sustainability and Innovation