RESILIENT COMPANY

Reporting Practices & Materiality

This is Schnitzer’s seventh Sustainability Report, covering fiscal 2020, which ended August 31, 2020. It includes complete coverage of relevant updates and metrics across all our operations.

At the beginning of our fiscal 2021, Schnitzer completed the transition to a new operating model, and now reports a single set of financial results. We have reported our sustainability results to align with this new operating model.

Since 2014, we have engaged Trucost (part of S&P Global) to provide assurance of selected environmental Key Performance Indicators (KPIs), including greenhouse gas emissions, energy consumption, water withdrawal, and waste generated. Trucost undertook this assurance in accordance with AA1000AS (2008) Type 2 moderate-level assurance.

Circumstances may arise in which reconciliation of data from previous sustainability reports is appropriate. For example, this may be due to, among other things, reconciliation of source data, updates in conversion factors, internal methodology changes, or changes in overall reporting scope.

Reconciliations promote the transparency of our reporting and enable a more accurate assessment of Schnitzer’s progress on our KPIs. Even though the reconciliations do not significantly impact our historic sustainability performance, by retrospectively updating previous figures, we expect to improve the year-over-year comparability of our data. Throughout our report, any reconciliations of previous-year data will be noted.

Materiality

In 2018, we conducted a Sustainability Materiality Assessment (SMA) to identify, analyze, and act on environmental, social, and economic dimensions that may have significant impacts on Schnitzer and our stakeholders. Our key stakeholder groups include current and future employees, shareholders, regulators, local communities, customers, suppliers, and relevant non-profit associations. Combining surveys, meetings, a review of publicly available information regarding our industry sector, and internal stakeholder interviews, we assessed the importance of various sustainability-related issues to Schnitzer and its stakeholders. We plan to refresh our 2018 SMA in fiscal 2021.

Results of the 2018 SMA were averaged and plotted to identify the relative importance of each issue. The insights gained from our SMA help guide our sustainability strategy and communications, including this Sustainability Report, and our sustainability goals. As part of the fiscal 2021 refresh, we intend to realign our SMA with our new One Schnitzer operating model and progress made over the past three years.

Other Non-Financial Disclosures

As a participant in the Carbon Disclosure Project (CDP) over the past four years, Schnitzer is committed to voluntary disclosures of relevant climate change and water security-related information on our governance, risks and opportunities, business strategy, targets and performance, GHG emissions, energy use, water consumption, and stakeholder engagement. In 2019, we received CDP scores of B (Climate), A- (Water Security), and A- (Supplier Engagement). In 2020, Schnitzer elevated its scores to an A- for Climate, and became a distinguished member of CDP’s A List for Water Security. As a further benefit, responses to the CDP questionnaires align with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD).

We are also participants in the Corporate Sustainability Assessment (CSA) for the Dow Jones Sustainability Index (DJSI), administered by S&P Global. In the 2020 CSA we ranked ninth overall among global participants within our sector/industry classification. Additionally, Schnitzer received an MSCI ESG Rating of AA and earned an ISS Corporate rating of “ESG Prime,” with a “Very Transparent” recognition.

Additionally, Schnitzer reports on relevant metrics developed by the Sustainability Accounting Standards Board (SASB) for our Primary SICS Sector (Extractives & Minerals Processing) and Primary SICS Industry (Iron & Steel Producers).