CMC 2025 Sustainability Report

Energy & Climate

The energy-efficient EAF technology we use in melting and producing steel enables CMC to produce some of the cleanest steel in the U.S. and in the world. In 2025, CMC’s Scope 1, 2 and 3 emissions were 60% less than the global steel industry average. By using 100% recycled steel as raw material, CMC’s mini mills and micro mills require significantly less energy than the BOF process and fully embrace the concept of a circular economy.

CMC’s micro mills, the first of its kind built in Arizona in 2009, are some of the greenest steel mills in the world and have become the industry standard. We opened a second micro mill in Oklahoma in 2018 and another in Arizona in 2024. Our fourth micro mill is currently under construction in West Virginia, with an expected start-up date in 2026. Our micro mills are ultra energy-efficient due to their continuous manufacturing process that eliminates the need for burning natural gas in a reheat furnace.

All of CMC’s steel mills, including our seven mini mills, are strategically located close to our customers to minimize shipping distances, helping to reduce transportation fuel usage and resulting GHG emissions. Our Primary-to-Primary initiative uses advanced modeling of market demand and CMC’s steel mill network to pair one customer with one nearby mill to improve customer service and reduce transportation costs and emissions. We are approaching 90% compliance with this initiative.

Since 2019, we have reduced our energy consumption intensity by approximately 5%

Energy Consumption Intensity

80%

less than the industry average

Energy Intensity

(GJ/MT)

CMC 2025 Industry Average¹

¹ Industry averages taken from the latest World Steel Association published indicators 2023 data.

Goal

Decrease our energy consumption intensity by 5%

Energy Intensity (GJ/MT)

We have decreased our energy consumption intensity by 5% since 2019, surpassing our goal. We are proud of our progress to date and plan to continue reducing our energy consumption to progress toward a more sustainable future.

Current Progress Towards Goal

2025 2024 2023

Results

decrease
since 2019*

*Based on 2019 baseline value of 4.020 GJ/MT.

LED Lighting Upgrades Reduce Emissions

CMC’s ongoing multi-year project to upgrade lighting at facilities across the U.S. added three more projects to its portfolio in 2025, bringing our total projects to 24.

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CMC has partnered with U.S. Energy Lighting to install energy efficient LED lighting at these locations. The upgraded lighting provides improved visibility inside our facilities and on exterior walkways and driveways, supporting our efforts to ensure workplace health and safety. The overall carbon emissions reduction from the project is estimated to save 12.2 million pounds of CO2 emissions annually and lowered energy costs by over 30% with annual savings of 7.9 million kWh.

12.2M pounds of CO2 emissions saved annually.

7.9M kWh saved annually.

Energy Improvements in 2025

In addition to the built-in energy efficiency of our EAF technology, we utilize advanced data collection and analysis to generate ideas for further process improvements at our mills to drive business performance and help achieve our Scope 1 and Scope 2 emissions reduction goals. These improvements include installing new energy-efficient equipment, utilizing automatic controls to increase efficiency and reducing natural gas use by incorporating new processes and technologies that further electrify our operations.

Examples of our initiatives include:

At rolling mills in New Jersey and Florida, we replaced recuperators used to preheat air in the combustion process with more energy-efficient models.
We installed software at our New Jersey mill that uses analysis and algorithms to help optimize the EAF technology.

CMC works with its energy suppliers and utilities to diversify its sources of power, with dual goals of increasing reliability and reducing Scope 2 GHG emissions by increasing renewable energy use. Our initiatives include negotiating virtual power purchase agreements (VPPAs) to increase the amount of energy purchased from renewable sources. Our steel mill in Birmingham, AL will have a VPPA with Alabama Power as of 2026, which will source 13% of its electricity from renewable sources. Our mill in Seguin, TX has a VPPA that provides 18% of its electricity from renewables and our first micro mill in Mesa, AZ has a PPA with Salt River Project (SRP) that provides 7.5% of its electricity from renewable sources.

To enable our mills to use greater amounts of renewable energy, we utilize advanced Q One technology at both mills at CMC Steel Arizona to reduce transmission losses from energy by up to 10%. This same technology will be utilized at our future micro mill in West Virginia.

Energy Consumption

Metric	Unit	2025	2024	2023
Total Energy Consumption	GJ	21,509,526	20,545,656	19,646,096
Natural Gas Consumption	GJ	9,027,203	8,567,908	8,797,397
Diesel Consumption	GJ	445,954	460,483	622,954
Facility Diesel Consumption	GJ	93,650	43,707	185,000
OTR Diesel	GJ	352,304	416,776	437,954
Electricity Consumption	GJ	12,482,324	11,955,219	12,118,414
Total Energy Intensity	GJ/MT	3.82	4	3.84
Renewable Electricity Consumption	%	24.6%	24%	22.8%
Renewable Energy Consumption	%	14.3%	14	14.1%

Goal

Increase our renewable energy
usage by 12 percentage points

Percent Renewable Energy Usage (%)

Since 2019, we increased the percentage of our total energy usage that comes from renewables from 7.1% to 14.3%; this is a 101% increase in renewable energy usage.

Current Progress Towards Goal

2025 2024 2023

Results

101%

increase
since 2019*

*Based on 2019 baseline value of 7.1%.

Transitioning Our Energy Mix

Process efficiency and technology can’t mitigate all GHG emissions. The sourcing and mix of our energy supply plays a critical role in our carbon footprint. That’s why CMC continually investigates and implements new energy sourcing options that better serve our business and our customers, including the use of renewable energy sources.

At the same time, we work with our suppliers to minimize indirect energy use at our facilities. Our energy teams strive to:

Ensure we have an adequate and reliable supply of power
Diversify our sources of power
Secure the economic purchase of renewable power

We’re also continuing our transition toward more renewable power across all operations. Our strategy of expanding energy supply options helps mitigate supply uncertainty, price risk and environmental impacts. This effort is exemplified by our recent work toward securing a Virtual Purchase Power Agreement (VPPA) for our Steel Alabama site, which is scheduled to begin in 2025. The VPPA will allow our Alabama site to consume up to 12% of its annual energy consumption from a local solar farm.

In 2023, we enhanced our strategies for supplying electricity and natural gas to our mini and micro mills. The goal was to address all facilities’ energy requirements based on their activities, location and demand. To accomplish this, our procurement teams are engaging more directly with suppliers and utilities and working to balance the price and the reliability of the energy source—ensuring we retain clean energy at the right price that will guarantee consistent power to our operations, even in extreme weather.

GHG Emissions Intensity

Scope 1-3

60%

less than the industry average

Greenhouse Gas Emissions

(MT CO2e/MT)

CMC 2025 Industry Average¹

0.42
(Scope 1-2)

0.34
(Scope 3)

1.9
(Scope 1-3)

¹ Industry averages taken from the World Steel Association indicators data

Scope 1, 2 & 3 GHG Emissions

Metric	Unit	2025	2024	2023
Scope 1 GHG Emissions	MT CO₂e	1,146,181	1,038,806	1,056,191
Scope 1 GHG Emissions Intensity	MT/MT	0.20	0.20	0.20
% of CO₂e Covered Under Emissions-limiting Regulations	%	7.25%	7.23%	4.27%
Scope 2 GHG Emissions	MT CO₂e	1,251,864	1,215,332	1,232,430
Scope 2 GHG Emissions Intensity	MT/MT	0.22	0.23	0.23
Scope 1 & 2 GHG Emissions	MT CO₂e	2,398,045	2,254,138	2,288,621
Scope 1 & 2 GHG Emissions Intensity	MT/MT	0.42	0.42	0.42
Scope 3 GHG Emissions	MT CO₂e	1,913,454	1,615,509	1,387,937
Scope 3 GHG Emissions Intensity	MT/MT	0.34	0.30	0.26
Total GHG Emissions (Scope 1, 2 & 3)	MT CO₂e	4,311,500	3,869,647	3,676,558
Total GHG Emissions Intensity (Scope 1, 2 & 3)	MT/MT	0.77	0.73	0.68

Goal

Decrease our Scope 1 & 2
GHG emissions intensity by 20%

Scope 1 & 2 GHG Emissions Intensity (MT CO₂e/MT)

We steadily decreased our Scope 1 and 2 GHG emissions intensity by 12.3% since 2019. Our mills are continuing to investigate new ways to further improve efficiency in order to reduce emissions intensity.

2025 2024 2023

Results

12.3%

decrease
since 2019*

*Based on 2019 baseline value of 0.479 MT CO₂e/MT.

Transform, Advance and Grow (TAG) Program

CMC launched its TAG program in 2024 to focus on driving consistency and best practices across all areas of the business, including productivity and safety.

Energy & Climate

Energy Consumption Intensity

Energy Intensity

Decrease our energy consumption intensity by 5%

Increase our renewable energy usage by 12 percentage points

GHG Emissions Intensity

Greenhouse Gas Emissions

Decrease our Scope 1 & 2GHG emissions intensity by 20%

Increase our renewable energy
usage by 12 percentage points

Decrease our Scope 1 & 2
GHG emissions intensity by 20%