b'OUR ENVIRONMENTAL STEWARDSHIPCMC Steel ArizonaCMC is committed to conducting business inaccess to real time data on our environmental an environmentally responsible manner. WeKPIs, our employees are empowered toIn FY17-18, our light fixture upgrades resulted in cost savings of focus our efforts in three key areas: Improvingidentify opportunities and implement newover $345,000/year and energy reductions of 2.9 million kWh/year.our energy efficiency; encouraging recycling,practices, install new technologies and recovery and reuse when possible in ourcontinuously improve our performance. processes; and increasing our water reuseFor more information on our environmentalRAISING EFFICIENCY,Replaced continuous speed motors with and recycling rate. Through ongoing training,commitments, including our Environmental LOWERING EMISSIONSvariable speed motors, which reduce the sharing of best practices and providingPolicy, visit our website. energy required in our operations.Through participation in the U.S. Department of Energys Better Buildings, Better PlantsInvested over $800,000 upgrading moreInitiative, we set a goal to reduce our absolutethan 1,600 light fixtures to energy-efficient energy use by 25% by 2023 based on aLED lighting, resulting in cost savings of Three Key Areas of Focus 2012 baseline. In FY17-18, we realized aover $345,000/year (average return on 5.7%* reduction in our energy use throughinvestment of ~2.5 years) and energy the following investments/changes: reductions of 2.9 million kWh/year.Improving energy efficiency Reduced the amount of carbon added tothe EAF at CMC Steel Alabamas melt shopENERGY EFFICIENCY and improved automation, which reducedLIGHTING UPGRADE FY2017 FY2018Increase our water recycling/reuse rate our carbon consumption by 21%. PROJECTSTotal Capital Costs $197,767 $639,007 Replaced CMC Steel Alabamas melt shop Encouraging recycling, recovery and reuse air emission control device, which improvedCalculated Energy844,850 2,120,735Reduction (KWh)particulate air emissions capture efficiencyby 94%. Annual Energy Savings $73,191 $275,032Average Payback2.72.32 (years)*Legacy CMC Mills excluding Oklahoma12 COMMERCIAL METALS COMPANY132017-2018 SUSTAINABILITY REPORT'