2020 Sustainability Report

2020 Sustainability Report OVERVIEW ENVIRONMENT SOCIAL SOCIAL: SAFETY GOVERNANCE METRICS Table of Contents Overview Social: Health and Safety Letter to Stakeholders 3 Health and Safety Statement 22 The Scope of Our Business 4 System Design Safety Benefits 23 Safety and Training Program 25 Incident Performance 27 Environment Coronavirus Response 28 Environment Statement 5 Environmental Impact 6 Energy Consumption 8 Governance Emissions 11 Governance Statement 29 Water Management 14 Management Team 30 Ecological Impact 15 Corporate Governance 31 Business Ethics and Compliance 33 Social Social Statement 16 Metrics Our Values 17 Reporting 34 Employees and Workplace Diversity 18 SASB Index 35 Human Rights 19 Data Sheet 37 Our Communities 21 Glossary 41 2020 Solaris Oilfield Infrastructure Sustainability Report 2 OVERVIEW ENVIRONMENT SOCIAL SOCIAL: SAFETY GOVERNANCE METRICS Letter to Stakeholders Dear Stakeholder, We are publishing Solaris’ first sustainability report in ees own over 17% of Solaris and we’ve also main- the midst of a global pandemic that has greatly dis- tained a quarterly divided for over two years, demon- rupted the business landscape and permanently al- strating the direct alignment of our interest with tered many lives. Despite the uncertainty of these shareholders. unprecedented times, we are unwavering in our commitment to delivering value to all of our stakeholders, Lastly, sustainability and ESG are a fundamental part including our shareholders, customers, employees, of our culture of innovation. We strive to create effi- local communities, and the environment. ciencies for our customers and to respect the many constituencies with which we engage. We are also Our primary goal is to create value by providing prod- committed to transparency, ethics and fairness in ucts and services that promote operational excel- how we manage, operate and report on our business. lence and safety at the well site. Attaining this goal We look forward to sharing future updates about our William Zartler directly results in lower environmental impact, im- sustainability commitment and progress with all of our proved efficiency and lower total cost for our custom- stakeholders. Chairman and ers and our communities. Chief Executive Officer Sincerely, On the environmental front, we help our customers reduce their environmental impact with systems that emit low/no emissions, shrink wellsite footprint, reduce trucking needs and minimize the number of people required on location. Our systems are all-electric and thus designed from an environmentally conscious perspective. William Zartler From a social perspective, we believe that our people Chairman and Chief Executive Officer are what make us great. We are values-oriented, and we strive for diversity of our workforce as we believe diversity of thought, background and experience en- hances our decision-making processes. The health and safety of our employees also continues to be a top priority at Solaris, and we are proud that our incident metrics are currently at record lows. Kyle Ramachandran On governance, Solaris remains focused on creating Kyle Ramachandran President and value for our shareholders because everyone at So- laris is also a shareholder. Management and employ- President and Chief Financial Officer Chief Financial Officer 2020 Solaris Oilfield Infrastructure Sustainability Report 3 OVERVIEW ENVIRONMENT SOCIAL SOCIAL: SAFETY GOVERNANCE METRICS The Scope of Solaris’ Business Our Business Calculation of ESG Metrics Solaris Oilfield Infrastructure was formed in 2014 to provide innovative and Because of the scope of our business, some traditional oil and gas cost-effective oilfield products, services and infrastructure to support in- ESG metrics do not apply to Solaris. Specifically, metrics surround- creased efficiency and safety in United States shale plays. ing oil and gas production and fracing measurements such as water use for fracing are not applicable, since we provide services to Since 2014, our organization has grown from 5 team members to approxi- both fracing companies and oil and gas operators but do not di- mately 125 employees as of December 2020. Solaris maintains its head- rectly fracture wells or develop oil and gas wells. quarters in Houston, Texas, but also operates facilities in Early, Texas and Kingfisher, Oklahoma. All metrics were internally measured and calculated to the best of our ability and have not been audited by an independent third par- Our patented oilfield technologies include the Solaris Mobile Proppant ty. We have tried to adhere to the measurement standards set Management System and Mobile Chemical Management System. Our sys- forth by the Sustainability Accounting Standards Board (SASB) tems were designed to lower completion times and costs by increasing and the Environmental Protection Agency (EPA) but we make no and automating storage capacity and handling of raw materials on well representation or warranty of any kind as to the accuracy and sites. Our systems also help decrease truck demurrage and reduce the completeness of such information. number of trucks on the road when compared to many of the competing available technologies. What We Do What We Don’t Do ✓ Deliver industry-leading proppant and chemical management ser- Explore for or develop oil and gas, which includes drilling wells and vices by utilizing our patented systems that maximize well comple- managing onshore or offshore oil and gas well sites tion logistics efficiency for oil and gas operators Directly hydraulically fracture wells (“fracing”), which includes pro- ✓ Offer supply chain visibility and inventory management through our curement of fresh water and management of waste water software Solaris Lens® Own, lease or operate equipment used in the production phase of oil ✓ Provide round-the-clock maintenance and support of our systems via and gas our field services team Own, lease or operate oil and gas pipelines ✓ Manage sand deliveries through our Last Mile service offering, where we seek to reduce the number of truck loads required by using soft- Own, lease or operate property with oil and gas production ware and state-of-the-art equipment to maximize efficiency Operate in foreign countries ✓ Provide rail transloading services in central Oklahoma 2020 Solaris Oilfield Infrastructure Sustainability Report 4 OVERVIEW ENVIRONMENT SOCIAL SOCIAL: SAFETY GOVERNANCE METRICS Environment Solaris provides products and services that help the oil and gas industry minimize the environmental impact and cost of hydrocarbon production by innovating solutions that improve efficiency, lower emissions, and reduce well site footprint. We also continually seek to minimize our own environmental impact in our manufactur- ing activity, field services operations and corporate functions. 2020 Solaris Oilfield Infrastructure Sustainability Report 5 OVERVIEW ENVIRONMENT SOCIAL SOCIAL: SAFETY GOVERNANCE METRICS Minimizing Environmental Impact in the Oil & Gas Industry 100% Electric Fleet Dust Reduction so that silica waste does not have to be dis- Our Mobile Proppant Management and Mobile Each of our Mobile Proppant Systems is posed of separately. Our systems are also Chemical Management Systems are all electric equipped with dust collection technology on the equipped with automation technology that allows and do not rely on hydraulics. The traditional top of each silo that filters and collects dust, us to enclose the blender hopper, further reduc- benefits of all-electric technology include: then automatically returns any dust back into the silo, where it is ultimately pumped downhole ing the risk of potential dust exposure. • Elimination of hydraulic fluid on site, result- so that silica waste does not have to be dis- ing in fewer drips and spills. posed of separately. Our systems are also Smaller Wellsite Footprints equipped with automation technology that al- • Reduction in carbon emissions. lows us to enclose the blender hopper, further Solaris’ technology allows oil and gas producers reducing the risk of potential dust exposure. to significantly reduce the amount of land re- Improved reliability, which reduces time re- • quired to store and deliver sand, water and quired to complete an operation. Each of our Mobile Proppant Systems is chemicals by storing these materials vertically. • Reduction in live diesel fueling, which also equipped with dust collection technology on the This smaller footprint reduces the overall envi- leads to fewer drips and spills. top of each silo that filters and collects dust, ronmental impact and lowers costs due to re- then automatically returns any dust back into duced pad construction, development and recla- • Improved reliability, which reduces required the silo, where it is ultimately pumped downhole mation required. time to complete an operation. • Lowered noise level impact. • Ability to receive power from the same gen- eration source used by the growing number of electric frac fleets (“e-fleets”) now being deployed to the market. Dust created by traditional sand handling Reduced footprint and dust with Solaris methods 2020 Solaris Oilfield Infrastructure Sustainability Report 6 OVERVIEW ENVIRONMENT SOCIAL SOCIAL: SAFETY GOVERNANCE METRICS Minimizing Environmental Impact in the Oil & Gas Industry Energy Efficient Lighting Fewer Trucks on the Road Built-in LED lights on the top and bottom of each Solaris’ technology helps to reduce emissions silo system offers enhanced lighting of the well for our customers by reducing the number

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