Stego Sustainability Report

SUPPLY CHAIN

The Sustainability Questionnaire uncovered a number of interesting highlights for our key Warehouse and Freight partners: ° An often-used truck freight carrier has received the Supply & Demand Chain Executive (SDCE) Green Supply Chain Award and the Heavy Duty Trucking (HDT) Top Green Fleets Award. These awards were earned through dedicating resources that incorporate sustainable practices throughout its fleet, facilities, and operations. These include fuel-saving speed transition systems, aerodynamic skirts and sleeper cabs, and engines designed to carry more freight. ° An often-used truck freight carrier has implemented a number of policies to safeguard environmental and human health. These include hazardous freight monitoring and shipping best practices, recycling shipments to reduce landfill waste, and compliance with all national, state, and local laws regulating air emissions. ° A freight broker partner was recognized as a Green Supply Chain Partner by Inbound Logistics in 2021 for its leadership and commitment to supply chain sustainability. This includes data- driven transportation routing optimization strategies to reduce annual truck usage and mileage. ° A warehouse partner is an EPA SmartWay Transport Partner company, a federal program designed to encourage businesses to manage logistics in an environmentally responsible way.

Downstream Logistics and Distribution Channels

To get finished Stego products to our customers, we rely on a network of Logistics partners and distribution channels. After production, Stego products are shipped to customers and warehouses across North America. In the case of Stego barrier film products, production material is often shipped via rail, rather than truck freight. With technological advancements in locomotive fuel efficiency and rail car design/load capacities, it is estimated that shipping freight via rail is three to four times more fuel efficient than trucks. In many cases, large volume quantities of Stego products are shipped directly from manufacturing to our stocking distributors and, when circumstances allow, occasionally directly to commercial construction sites. Thereby, we help reduce GHG emissions associated with regional truck freight. Otherwise, products are inventoried in multiple warehouses located strategically across our sales footprint. FTL (Full Truckload) and LTL (Less than Truckload) truck freight are the most common means of shipping Stego products to our customers. The Stego Supply Chain Department evaluates truck freight options not only based on costs, but also carrier reliability (to reduce lost or damaged product issues) and efficiency, includ ing distance traveled and gross weights. Our Stego Supply Chain Department, as well as our third-party freight brokers, gravitate to a handful of freight service providers, many of whom have their own well-established goals and efforts around sustainability.

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SUSTAINABILITY REPORT | 2023

CREATING BETTER SYSTEMS

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INTRODUCTION

OUR IMPACT

OUR RESPONSIBILITY