Stego Sustainability Report

Upstream Supplier Engagement A considerable initial step in developing this Stego Sustainability Report required gathering in formation so that we could better understand our “baseline” and opportunities for improvement. This included learning more by asking questions to our upstream suppliers. We created a Sustainability Questionnaire that was sent to our upstream supply contacts. The Questionnaire posed questions intended to gather information related to the environmental impact and end-of-life options of our products. Additionally, the Questionnaire included ques tions directed at the supplier’s operational and production impacts, such as carbon emissions (Scope 3), waste, and worker health and safety policies. The goal was not only to better understand the full picture of our products’ impact across the supply chain, but to raise awareness of Stego’s broad efforts toward environmental, social, and corporate responsibility reporting. It also represents an opportunity to regularly inform our up stream supply chain counterparts that Sustainability is a metric our company (and our industry) plans to incorporate to an even greater degree moving forward. The outcome: many of our upstream suppliers provided useful feedback, but it also became ap parent we have more to discover. The Sustainability Questionnaire is a step toward a more inten tional effort to walk the sustainability path together with our external supply chain contributors. Although information gathered from the Sustainability Questionnaire is woven throughout the SSR, additional highlights uncovered include: ° A packaging supplier diverts 95% of production waste from landfills. ° A supplier’s technology has been augmented to reduce GHG and VOC emissions (specific data unavailable at this time). ° A supplier has incorporated new technology and process changes that have reduced associated emissions with Stego-related processes by over 11% from 2020 to 2021. ° The majority of responding suppliers have formal environment, health, and safety policies and ethical sourcing efforts. Our next steps include the development of a more streamlined process for information sharing with upstream suppliers and continuing to expand the metrics we use to benchmark and track future improvement.

SUPPLY CHAIN

Optimizing Value and Sustainability in Our Supply Chains

Taking game-changing products from conception to finished goods — and putting them in the hands of customers — is a significant aspect of our business. We bring value through consistent quality and product performance, ensuring our products are available for projects when customers need them, and providing unmatched support. Our value chain — the activities across our product lifecycle where value is added — presents opportunity to optimize our products and processes. There are obvious economic benefits as we create differentiation, improve efficiency, and reduce costs. Nonetheless, we also understand all lifecycle phases of our products can have impacts on environmental and human health. This may be particularly true when focusing on our supply chain — the operational conveyance of our goods and finished products to customers. Like many building product manufacturers, we rely on strategic partners across our supply chain. From upstream raw material suppliers to downstream freight lines and stocking distributors, many entities are involved with making Stego products available in the marketplace. The impact of our value chain — including operations, product development, sales, marketing, and customer support — has been detailed in various places in this report. Here, we look closer at sustainability in our supply chain.

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SUSTAINABILITY REPORT | 2023

CREATING BETTER SYSTEMS

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INTRODUCTION

OUR IMPACT

OUR RESPONSIBILITY