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Letter from Scott Sewell – President and CEO

2022 will mark the 35th Anniversary for Charah Solutions and a major milestone in our Company’s history as we celebrate our continued commitment to living the Charah Solutions mission, vision and values each day our team comes to work: holding each other accountable, exceeding customer expectations, never compromising, rethinking the routine, and taking action when it comes to sustainability and ESG matters. While 2021 marks our second annual ESG report, sustainability has been a part of our DNA since the start, and our commitment has only grown stronger. I thank our leadership team and employees for continuing to deliver on our commitments to improve the environment, our communities, and make Charah Solutions a great place to work.

We set aggressive ESG goals in 2021, and I am very proud to announce that we substantially met all of our 1-year ESG goals and are well on our way to meeting and exceeding our 3-year and 5-year goals due to the hard work and dedication of our employees at our sites across the country. At Charah Solutions, sustainability is integral to what we do and who we are. We are in the business of solving the power industry’s most complex environmental challenges, and we continue to lead. We support the SEC’s push to establish uniform ESG reporting standards because we believe that all corporations should do their part and be held accountable to ESG measures to make for a better America. We’re assessing recent SEC announcements and are fully committed to implementing future requirements.

At Charah Solutions, we are held accountable to our ESG measures by making the commitment to tie these results directly to financial outcomes. In late 2021, Charah Solutions entered into a new credit agreement with JPMorgan Chase Bank which contains a provision to meet specific ESG goals for sustainability adjustments annually that will impact the applicable margin based on the achievement, or lack thereof, of these agreed upon ESG goal metrics which are publicly reported in our annual ESG Report’s Appendix D. We are proud to be participating in this innovative financing structure.

Throughout 2021 and into 2022, there have been several significant legislative and regulatory changes that continue to create positive benefits for the environment while providing significant business opportunities for our core service offerings. These include the U.S. rejoining the Paris Climate Agreement and making commitments to 100% clean electricity by 2035. In November 2021, the Infrastructure Investment and Jobs Act became law, which provides increased opportunity for fly ash to be recycled and beneficially used in the production of green concrete to meet the growing infrastructure demand, providing an environmentally conscious replacement for Portland cement in the production of ready mix concrete and concrete products. Most recently, in January 2022, the U.S. Environmental Protection Agency (EPA) acted to expand and strengthen the regulation for coal ash and groundwater management of regulatory mandated surface impoundments and landfills, marking the first time the EPA has enforced the 2015 Coal Combustion Residuals Regulation from coal-fired power plants for the management of ash impoundments and landfills.

2021 was a major year for Charah Solutions to “double down” on our sustainability commitments through the dramatic growth of our Environmental Risk Transfer (ERT) business. We announced the acquisition of GenOn Energy’s Avon Lake and Cheswick Generating Stations, where we will shutter these plants, perform sustainable environmental remediation and redevelopment that will place thousands of acres of land back into public and private use, once fully remediated, as well as provide a combined annual reduction of more than 1.47 million tons of CO2 greenhouse gases.

The Company also announced the execution of contracts to sell 100% of the real property acreage at our Gibbons Creek Steam Electric Station ERT project in less than one year after our acquisition from TMPA, providing 6,166 acres of fully remediated land back for community use and an annual CO2 savings of .97 million tons a year with the shutdown of this plant.

At Charah Solutions, we know that ESG matters. We have again chosen to structure our ESG Report using the respected and accepted guidelines of the internationally recognized Sustainability Accounting Standards Board (SASB) and UN Sustainable Development Goals (SDGs).

This ESG Report focuses on the real differences we are making, with key performance metrics that are relevant business drivers and value creators for our business while enhancing the environment:

  • Our proven sustainability efforts conserve virgin resources and water, reduce greenhouse gases, shutter and remediate older coal-fired plants, and decrease landfill disposal while recycling and providing essential byproducts that contribute to the growth of our national economy.
  • Our use of recycled ash in structural fill projects in which we return the land to the community for recreational or commercial use allows thousands of acres of land to be reclaimed each year.
  • Our annual beneficial use of over 2 million tons of coal combustion residuals (CCRs), including fly ash and other supplementary cementitious materials (SCMs) in concrete and other products, not only eliminates the need to dispose of fly ash in landfills but also reduces the overall carbon footprint and conserves our virgin natural resources by substituting materials that would typically be mined.
  • Our innovative EnviroSource™ beneficiation technology improves fly ash quality so that significantly more tons of fly ash can be recycled and marketed for reuse. This technology substantially reduces the environmental carbon footprint created by Portland cement and provides a superior product at lower costs for ready mix concrete producers.
  • We commit to our employees to provide a work environment characterized by considerate treatment of others, open and honest communication, personal accountability, trust, and mutual respect to provide superior service and sustainable solutions for our customers.
  • Our commitment to diversity in the workforce has grown even stronger. We have executed diversity initiatives goals and programs that continue to accelerate job placement for minorities and women at all levels of the Company.
  • Our Safety Record is all about ensuring that our people get home in the same physical condition as they came to work in the morning. In 2021, we further improved on our industry-leading safety record by accomplishing a remarkable 0.32 Total Recordable Incident Rate (TRIR) with zero Lost Time Injuries compared to the most recent Recordable Incident Rate industry average of 2.8. Our 2021 0.32 TRIR represents an 11.76% improvement over 2020, which is already one of the lowest in the nation.
  • Our concern for the well-being of our communities is genuine, as demonstrated by our Charah Cares strategy execution as well as the number of community and charitable organizations that our Company and our employees support with over $800,000 in charitable donations in the last 5 years.

I want to thank the ESG Leadership Team and the hard work and dedication of all Charah Solutions team members across the country for their ongoing commitment to live the Charah Solutions values of sustainability and creating better opportunities for all of our employees.

I encourage you to review our 2021 goal accomplishments and see how we continue to raise the bar and set trackable goals to keep improving.

Scott Sewell
President Chief Executive Officer
Charah Solutions, Inc.