COMMERCIAL METALS COMPANY 2015-2016 SUSTAINABILITY REPORT 29 Contractor Safety It is a priority for CMC to work with contractors who share our values when it comes to safety. Independent reporting shows that our contractors’ safety records are in fact much better than industry average. This chart shows that CMC’s contractors’ Total Recordable Incident Rates (TRIR, which represents the incident rate per 100 employees) have decreased nearly 20% over the most recent three year period. We follow the same safety practices when working with our contractors that we insist on with our own work force. The success of those practices is demonstrated by the results. On average, CMC contractors have a 35% lower TRIR than their industry peers. That’s success not only for our people, but for the employees of the contractors we work with as well. APPROACH TO TEAM DEVELOPMENT At CMC, we firmly believe that our people are the key to our success. Our energetic and entrepreneurial spirit has enabled us to remain a leader in the metals industry for over 100 years, and we believe our success is a direct result of the contributions and work ethic of one of the most talented work forces in the industry. Our sector faces a resourcing challenge: attracting the skilled labor needed to sustain our business. Because of this, we have taken a proactive approach to developing our pipeline for talent. We also recognize that as the needs of our employees change, we must be intentional about getting their feedback so we can meet those needs and enjoy a high degree of retention. We take pride in hiring and developing the best talent for every facet of our business. We continue to invest in safety, training and opportunities for growth for all employees. Our Learning Management System offers a variety of training courses and helps us track and assess whether employees are up-to-date on the training they need. The Learning Management System drives greater transparency and accountability at all levels within CMC. In 2015 and 2016, CMC continued to focus on the five key areas seen as critical to our future success: Talent Acquisition, Performance Management, Learning and Development, Total Rewards and Career Planning. Team Development Highlights Significant developments in 2015 and 2016 for strengthening the CMC team, both now and for years to come, include: Talent Acquisition •  Partnered with the Joseph Bem Complex of Schools, a technical high school in Zawiercie, Poland, on a dual educational system patronage class. We established a four year Mechanic Scholarship Program for students at the high school with the goal of addressing skilled labor shortages in the forthcoming years. We had five students in 2015 and seven in 2016; 13 students are scheduled to start in 2017. • Continued to strengthen our relationships with local schools in our communities to engage and educate young adults and help develop our talent pipeline. We offer tours of our operations for interested groups and our employees volunteer their time to guest lecture at local schools and provide students insights into jobs that are available for recent graduates. CMC contractors have a 35% lower TRIR than their industry peers. 1.71 1.56 1.40 2014 2015 2016 CMC Contractor TRIR Trend (Total Recordable Incident Rate)