A Message from Our Chairman & CEO,
For more than a century, Schnitzer has been developing robust networks to collect, process, and deliver recycled metals to customers in North America and around the world. Our work and our purpose have never been more relevant than they are today.
The use of recycled metals is recognized as an important strategic solution for companies, industries, and governments focused on carbon reduction. It is a differentiator for metal producers and fabricators. And it is a critical part of every community’s commitment to supporting a circular economy and decreasing material going to landfills."
Tamara L. Lundgren / Chairman & CEO
Global climate commitments are requiring companies and countries to better understand the environmental impacts of their supply chains and to seek out the most sustainable materials available to achieve their carbon reduction targets. Whether for EV battery production, solar panel or wind turbine manufacturing, or the infrastructure projects identified in the Biden Administration’s Infrastructure Investment and Jobs Act and the Inflation Reduction Act, one thing is clear: low-carbon technologies are more metal-intensive than the technologies they are replacing. The use of recycled metals is recognized as an important strategic solution for companies, industries, and governments focused on carbon reduction. It is a differentiator for metal producers and fabricators. And it is a critical part of every community’s commitment to supporting a circular economy and decreasing material going to landfills.
What we do and why it matters are defined by our vision of a sustainable tomorrow. Almost 10 years ago, we created a Sustainability framework based on three pillars: People, Planet, and Profit. In 2019, we created specific multi-year goals aligned with these pillars, and we established metrics to track our progress against these goals. In fiscal 2022, we advanced our Sustainability goals by supporting our employees and communities, implementing best-in-class environmental processes and infrastructure, expanding our operating platform, and introducing new low-carbon product offerings. I am pleased to highlight several Company achievements that reflect significant progress toward our goals.
In fiscal 2022, our teams delivered the second-best safety performance in our Company’s 116-year history, with 90% of our facilities free of any lost time injury. We were certified, for the second consecutive year, as a Great Place to Work® and named by the Ethisphere Institute as one of the 2022 World’s Most Ethical Companies® for the eighth consecutive year. This year’s report offers insights into our employee safety, health, and wellness programs, our volunteer and community engagement activities, and the work of our Employee Resource Groups. It also details the training and development programs that are helping to advance the careers of our next generation of leaders, the educational partnerships that are attracting new recycling professionals into our Company, and our efforts to elevate Sustainability within our Company including through the addition of a new independent director to Schnitzer’s Board who serves as Chief Sustainability Officer at a leading global provider of environmental consulting and engineering services.
These achievements and accolades would not have been possible without all our employees living our Core Values of Safety, Sustainability, and Integrity and operating with the nimbleness, resilience, and collaboration that have underpinned our success.
In fiscal 2022, we maintained 100% net carbon free electricity across our operations for the second consecutive year, and reduced greenhouse gas emissions at our recycling operations by 24% against our 2019 baseline. We launched GRN Steel™, our line of net zero carbon emissions steel products which provide our customers with net zero steel solutions as they build tomorrow’s essential infrastructure. Our steady progress toward reducing our environmental impact and developing solutions for our customers and suppliers to do the same reinforces our role as a responsible neighbor and steward in the communities in which we operate.
In fiscal 2022, we were also honored to be included in the Corporate Knights 2022 Global 100 Index of the most sustainable companies in the world, ranking 15th on the list, and recognized on Newsweek’s list of America’s Most Responsible Companies for the third consecutive year.
Our achievements this fiscal year also included the second-best earnings in our Company’s history. Our adjusted EBITDA of over $300 million was 8% higher than in fiscal 2021, our year-over-year ferrous sales volumes were 5% higher, and our nonferrous sales volumes were 16% higher. We generated operating cash flow of almost $240 million, the highest level since fiscal 2012, and invested in capital projects to upgrade our equipment and infrastructure and for investments in environmental and safety-related assets and advanced metals recovery technology systems. We also expanded our operational footprint through two major acquisitions in the southeastern U.S. and returned capital to our shareholders via our quarterly dividend and the repurchase of approximately 3.5% of our outstanding shares.
Schnitzer’s sustainable business model is poised for further growth and well-positioned to benefit from the global focus on decarbonization, the increased metal intensity of low carbon technologies, and the continued expansion in U.S. and global EAF steel-making capacity. Progress toward our People, Planet, and Profit goals reflects the agility of our workforce, the strength of our culture, and the resiliency of our platform. As outlined in this year’s report, our team demonstrated once again why Schnitzer continues to be a leader in the recycling industry.
On behalf of our Board of Directors, shareholders, and employees, I invite you to read our Fiscal 2022 Sustainability Report, Recycled Metals for a Low-Carbon Future, which shares more about our sustainability performance and goals and our efforts to position our Company for continued success in the years ahead.