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Sustainability Report Sustainability Report 2019 Message from Sustainability Policy Goals/Performance Health and Supply Chain ATI at a Glance Enviromental Social Governance Product Sustainability CEO and Innovation at a Glance Safety Responsibility Message from CEO At ATI, we live our values every day: Integrity, Safety & Sustainability, Accountability, Teamwork and Respect and Innovation. We are committed to doing the right thing on behalf of employees, customers and neighbors. Our commitment to Safety & Sustainability is especially clear in our sustainable operations. We strive to achieve a Zero Injury Culture. Advancing this belief means we proactively mitigate risks of all kinds to ensure the safety of our people, our products and materials, and the environment in the communities where we operate. This report details the progress we’re making toward our goals of ensuring our manufacturing facilities are ISO 14001 and 45001 certified by 2022 and reducing energy intensity, CO2/GHG emissions and freshwater intake by 5% while increasing recycled materials used in production to 80% by 2025. The COVID-19 pandemic has introduced risks that were unexpected, yet our Robert S. Wetherbee values helped us to quickly map a path allowing us to deliver as an essential President and business while keeping our people and their families safe and mitigating spread Chief Executive Officer of the disease. We will provide more details on our response to the virus in our 2020 Sustainability Report. Throughout 2019, collaboration and innovation across our company and the relentless dedication of our team helped to make ATI and the communities in which we operate a better place. I am proud of the work we’ve done to this point and look forward to discovering new ways to help solve the world’s challenges through materials science in the future. ATI Sustainability Report 2019 / 2 Message from Sustainability Policy Goals/Performance Health and Supply Chain ATI at a Glance Enviromental Social Governance Product Sustainability CEO and Innovation at a Glance Safety Responsibility Table of Our Vision: Building the World’s Best Specialty Materials and Contents Components Company™ 2 / Message from CEO ATI is a $4 billion global manufacturer solving the world’s most difficult challenges through materials science; advanced, integrated process technologies, and relentlessly innovative 3 / ATI at a Glance people. We serve customers whose demanding applications need to fly higher, burn hotter, dig deeper, stand stronger, and last longer—anywhere on, above, or below the earth. 4 / Sustainability Policy and We partner to create new specialty materials in forms that deliver ultimate performance Innovation and long-term value in applications like jet engine forgings and 3D-printed aerospace components. We produce powders for forging and additive manufacturing; rolled materials, and finished components. Our specialty materials withstand extremes of temperature, 5 / Goals/Performance at a Glance stress and corrosion to improve and protect human lives every day. Learn more at ATIMetals.com. 6 / Environmental 9 / Social Our Core Values 11 / Health and Safety 12 / Governance Integrity Safety & Sustainability Accountability 14 / Supply Chain Responsibility 15 / Product Sustainability— Helping Customers Achieve Results Teamwork & Respect Innovation ATI Sustainability Report 2019 / 3 Message from SustainabilitySustainability PolicyPolicy Goals/Performance Health and Supply Chain ATI at a Glance Enviromental Social Governance Product Sustainability CEO andand InnovationInnovation at a Glance Safety Responsibility Sustainability Policy and Innovation Allegheny Technologies Incorporated recognizes the need to minimize environmental impacts through the measured and efficient use of natural resources. We also understand the importance of mitigating our own impact and supporting the communities in which we operate. We take an active role in discovering and implementing means to protect and enhance our environment and our communities—it is this strategy that enables sustainability at ATI. Our commitment to sustainability is further reflected in our: Principles of Corporate Responsibility, Corporate Guidelines for Business Conduct and Ethics, and Code of Sustainability. Click here. ATI has commenced a review and evaluation of the applicable industry standards adopted by the Sustainability Accounting Standards Board (SASB). We continue to analyze our ability to gather and disclose the information contained in the SASB sustainability topics, many of which are addressed in this report and other public filings. We are Committed to: • Continually improving safety, health and environmental policies, management systems, and controls so they are • Conducting business in accordance with applicable laws, fully integrated into company activities; regulations, permits and ATI’s Corporate Guidelines for • Promoting a culture of safety and continually reinforcing Business Conduct and Ethics; company-wide safety efforts and maintaining programs • Respecting the rights of people affected by our activities that effectively address workplace hazards and monitor and fostering a respectful dialogue with them; and protect employee health and safety; • Supporting local communities and contributing to • Conducting operations in a sound environmental manner their sustainability through measures such as and seeking to continually improve performance; locally sourcing goods and services and employing • Promoting the efficient use of energy and material local people; resources in all aspects of our business; and • Establishing non-discriminatory conduct in the • Practicing product stewardship and promoting research workplace, hiring practices, and career advancements. to enhance the benefits of our products Ensuring that hiring, advancements and promotions are to society. unbiased and based on merit and ability; We ensure that all ATI employees are involved in the enhancement of health and safety initiatives. ATI Sustainability Report 2019 / 4 Message from Sustainability Policy Goals/Performance Health and Supply Chain ATI at a Glance Enviromental Social Governance Product Sustainability CEO and Innovation at a Glance Safety Responsibility Goals/Performance at a Glance Sustainability Goals (Base Year 2018) PERFORMANCE TARGETS* In 2017 we established and published goals relating to various aspects of our operations. 2022 2025 2030 We refined and updated the goals in 2018. Include all Reduce Energy Intensity 5% Reduce Energy Intensity 7% manufacturing Most of our goals relate to the impact on the facilities in metrics environment. All manufacturing Reduce CO2e/GHG emissions 5% Reduce CO2e/GHG emissions 7% facilities ISO 14001 and 45001 certified Reduce freshwater intake 5% Reduce freshwater intake 8% Increase recycled materials Increase recycled materials used used in production to 80% in production to 83% *When using 2018 as baseline year. EMISSIONS, WATER, AND RECYCLED MATERIALS 2018 2019 Intensity Intensity 2018 2019 unit/ton of unit/ton of Metric Units Performance* Performmance production production Energy Consumed Gigajoules 10,318,477 10,630,491 3.02 3.06 CO2e Emissions Tons of CO2e 877,390 553,294 0.26 0.16 Freshwater Intake Kilo-gallons 3,831,532 3,314,029 1.12 0.90 Material Recycled Tons Recycled 60,865 185,889 0.004% 0.01% *Baseline year is 2018. Reported data is for the seven largest operating sites. ATI Sustainability Report 2019 / 5 Message from Sustainability Policy Goals/Performance Health and Supply Chain ATI at a Glance EnvironmentalEnviromental Social Governance Product Sustainability CEO and Innovation at a Glance Safety Responsibility Environmental Policy Compliance At ATI, safety, health, and environmental compliance We consider environmental compliance to be an are the pre-requisites to all operations. We are integral part of our operations. All of our operations committed to providing a safe workplace and our have a comprehensive environmental management goal is to finish each day incident- and injury-free. and reporting program that focuses on compliance We are also committed to maintaining and operating with applicable federal, state, regional and local our businesses in full compliance with all applicable environmental laws and regulations. Each system environmental laws, regulations, and rules. includes mechanisms for regularly evaluating environmental compliance and managing changes Risks in business operations while assessing potential We are subject to various domestic and international environmental impact. Annual Report F-8 ATI had no environmental laws and regulations that govern the significant issues with compliance in 2019. discharge of pollutants and disposal of wastes, and which may require that we investigate and remediate ISO the effects of the release or disposal of materials at Our goal is for every manufacturing location to achieve sites associated with past and present operations. We an ISO 14001 certified EMS by the end of 2022. At could incur substantial cleanup costs, fines and civil the end of 2019, 52% of ATI Operations achieved ISO or criminal sanctions, third-party property damage 14001 certification and the remaining facilities had or personal injury claims as a result of violations or commenced the certification process. liabilities under these laws or noncompliance with environmental permits required at our facilities. We are Water currently involved in the investigation and remediation Our facilities are generally located in areas where of a number of our current and former
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