Stego Sustainability Report

OUR FOUNDER’S VOICE AND VISION

Dear Stakeholder, I am humbled every day by Stego’s success and take great pride in inviting you to read our Stego Sustainabil ity Report. This effort is another remarkable milepost in an extraordinary story of a family business that became an industry leader. Stego began in my garage. Our flagship product, Stego ® Wrap Vapor Barrier, was born out of new polyolefin technologies in the 1990’s that provided great promise to many different industries. The story of our highly engineered film does not imme diately hint of sustainable origins. But the origin story of Stego Wrap — and the growth at Stego — is deeply rooted in making buildings healthier, which arose from two major upheavals in the building industry happening at the time. First, the Southwest United States was plagued by a building crisis: mold. The air in countless gathering spaces was making people sick, from school children with asthma in their classrooms to inexplicable side ef fects in hospitals. Myriad building practices needed to evolve to account for a massive liability problem in the building industry, which was also an existential threat to human health in the indoor environment. Most of these solutions fo cused on the five sides of the building you see: the ex terior walls and the roof. There was less understanding about the contribution of mold-inducing water vapor from the first side of the building, the foundation.

habilitate residential crawl spaces (StegoCrawl ® Wrap), redevelop brownfield sites to protect against harmful volatile organic compounds (Drago Wrap ® ), reduce or eliminate the need for poisonous chemical termiticide pretreatments in new construction (Pango Wrap ® ), and permanently isolate new residential floor slabs from many soil vapor concerns (StegoHome ® ). The educational principles we brought to the industry for below-slab protection — performance, durability, longevity — have, in the past decade, also become the key principles of sustainable construction. We are de lighted that the sustainable construction industry has taken these lessons to improve best practices, protect human health, and build spaces for people to gather safely for generations. But this sustainability report is not just about green construction. We are incredibly proud of the efforts we have made to reduce our carbon footprint, produce re newable energy, provide transparency into our materi als, and invest in the health and wellness of our human resources - the key to our continued success. Thank you for taking the time to learn more about our efforts. Sincerely,

Around the same time, the floor covering industry underwent its own upheaval. New EPA regulations — also directed toward the future health of buildings and people — all but mandated the use of water-based adhesives. Again, water vapor from the first side of the building was a common culprit in the breakdown of these new adhesives and created a billion-dollar floor covering failure problem in the industry. At the time, the only products addressing these two cri ses were too cheap to perform well or too expensive to gain widespread adoption. Our new-generation polyolefin film helped solve these problems for the building industry, at a competitive price. And for the past quarter century, our company has grown from the Blasdel Family garage to an industry leader by educating designers, engineers, building own ers, contractors, and concrete placement crews on the importance of protecting that first side of the building. Billions of square feet of Stego Wrap now help protect the indoor air quality and floor coverings of some of the most sensitive — and iconic — buildings in North Amer ica, and our reach expands by the day into new global markets and industry segments. Our mission started with making buildings healthier, but this sustainability report details the way we try to expand that mission every day. The same commitment to human health that launched Stego Wrap has expanded our product lines to help re

Paul J. Blasdel FOUNDER, STEGO INDUSTRIES, LLC INVENTOR OF STEGO WRAP VAPOR BARRIER

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SUSTAINABILITY REPORT | 2023

INTRODUCTION

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OUR IMPACT

CREATING BETTER SYSTEMS

OUR RESPONSIBILITY