Corporate Responsibility at Quanex

Our Commitment to Sustainability

When we at Quanex began our sustainability journey several years ago, we knew it was a daunting task.

We also knew it was a vital one. The world in which we live faces a grave challenge in climate change. We’re committed to doing our part to reduce our emissions, to be better stewards of our resources and raw materials and to act with responsibility toward the environment where we operate.

In the spirit of transparency and accountability, it’s why I wanted to offer some insight into our efforts so far. Here’s a look at where we’ve been, where we are today and where we’re headed tomorrow.

Tracking Our Efforts

With the guidance of our Board’s Nominating & Corporate Governance Committee, we have made tremendous strides over the past three years in developing and implementing an active and effective sustainability program. Importantly, we’re focused on ensuring our sustainability efforts will benefit our stakeholders as we seek to protect the environment as well as the health, safety and human rights of our employees and customers.

To those ends, we have established a tracking and reporting structure that sets performance baselines for each of our focus metrics:

• Our Scope 1 and Scope 2 greenhouse gas emissions
• Our hazardous and nonhazardous waste streams
• Our usage of electricity, natural gas and water

Looking forward, we are committed to reaching these goals, and we are already working to develop and implement strategies that allow us to do so. You can find our goals on our new sustainability website, which is accessible from Quanex.com.

Assessing our Opportunities

In addition to setting measurable sustainability goals, we have incorporated climate-related risks and opportunities into our Enterprise Risk Management (ERM) process.

Our ERM process is overseen by the Board’s Audit Committee and comprises leaders from throughout the organization. By incorporating climate risks and opportunities into this process, we will be more agile in avoiding negative impacts and in taking advantage of positive ones. Our sustainability committees will also be able to use the ERM process annually to continue driving and refining our overall sustainability strategy.

Sustaining Our People

Our sustainability efforts at Quanex go beyond an environmental focus. They also involve improving the health and well-being of our workers at every level—because after all, better sustainability practices are at the heart of creating and maintaining an environment where all can thrive.

In this spirit, we are committed to continually improving the safety of our operations at every level. It’s a goal I’m deeply passionate about and determined to strive for every day. No ideal here is too lofty; our work to enhance safety is unending.

Additionally, our Diversity, Equity and Inclusion (DE&I) Council is making good progress in helping to ensure a welcoming, inclusive and equitable environment at Quanex. The council includes 18 volunteer employees from multiple locations and disciplines, providing insight from across our company. Further, our recently established employee resource groups (ERGs) provide opportunities for employees to build their skills, grow their networks and get involved in their communities. They’re a key part of how we’re working to build a workplace culture of inclusion.

Looking Ahead

I’m excited to continue our sustainability journey as we work to meet long-term goals. I know our teams at Quanex are capable, willing and excited to make a real impact for the betterment of our world.

Our sustainability website on Quanex.com will replace our annual corporate responsibility report. We believe maintaining this permanent, regularly updated hub will enable convenient access and easy understanding of our sustainability information for all our stakeholders. Going forward, this site should be your primary resource for anything related to the Quanex Sustainability Program, including information on metrics, goal progress and strategies, risks and opportunities, materiality mapping and overall program structure and strategy.

I am excited about the future of sustainability at Quanex. Our efforts today will pay dividends for everyone going forward, and I cannot wait to see what we accomplish together.

George Wilson

Chairman, President, and Chief Executive Officer