Vulcan Materials : 2023 CDP Water Security Questionnaire

Vulcan Materials Company CDP Water Security Questionnaire 2023 Thursday,

July 27, 2023

Welcome to your CDP Water Security Questionnaire 2023

W0. Introduction

W0.1

(W0.1) Give a general description of and introduction to your organization.

Vulcan Materials Company operates primarily in the United States and is the nation's largest supplier of construction aggregates (primarily crushed stone, sand and gravel), a major producer of asphalt mix and ready-mixed concrete, and a supplier of construction paving services. We provide the basic materials for the infrastructure needed to maintain and expand the U.S. economy. Delivered by trucks, ships, barges, and trains, our products are indispensable materials for building homes, offices, places of worship, schools, hospitals, and factories, as well as vital infrastructure including highways, bridges, roads, ports and harbors, water systems, campuses, dams, airports, and rail networks.

As of December 31, 2022, we had 404 active aggregates facilities in Alabama, Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, and the U.S. Virgin Islands. We also had aggregates operations in the Bahamas; British Columbia, Canada; and Quintana Roo, Mexico. While aggregates is our focus and primary business, as of December 31, 2022, we further served our customers through our 71 asphalt facilities and 142 concrete facilities located in Alabama, Arizona, California, Maryland, New Jersey, New Mexico, New York, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia, the U.S. Virgin Islands, Washington D.C. and the Bahamas. The products from the Mexico and Bahamas quarries are primarily exported by ship to the U.S. Gulf Coast. The products from the Canadian quarry are primarily exported by ship to California.

Our products are used in nearly all forms of construction. In particular, large quantities of aggregates are used to build and repair valuable public infrastructure such as roads, bridges, waterworks and ports, and in the construction of both residential and non-residential facilities such as manufacturing plants, distribution centers, electricity generation and other energy- related facilities, server farms, office buildings, multi-family housing, single-family homes, and also in schools, hospitals and places of worship. We have four operating (and reportable) segments (Aggregates, Asphalt, Concrete and Calcium) organized around our principal product lines. The largest segment is aggregates (crushed stone, sand and gravel), which represents

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Vulcan Materials Company CDP Water Security Questionnaire 2023 Thursday,

July 27, 2023

65% of the Company's 2022 revenues and 90% of 2022 gross profit. In 2022, the asphalt segment accounted for 13% of total revenue and 4% of gross profit. The concrete segment accounted for 22% of total revenue and 6% of gross profit. Calcium revenues and gross profit were less than one percent.

Environmental Stewardship &Water Management at Vulcan Materials

The Vulcan Way is doing the right thing, the right way at the right time. We have a long history of servicing our customers and delivering results to our shareholders while embodying our commitments to people, to the safety and health of our Vulcan family members, to environmental stewardship, and to the neighborhoods and communities in which we live, work and play. These commitments have always been part of the Vulcan Way.

We continue to evolve our approach to water management beyond regulatory compliance to active stewardship, recognizing that water is a shared and, in many places, highly stressed resource. Water is an input to aggregates operations, what we estimate as our highest water intensity operation, in three primary ways:

• Production: Washing aggregates removes fine particles and clay to meet product specifications.
• Air quality: Wetting roads and rinsing vehicle tires controls dust.
• Health and safety: We provide Water, Sanitation, and Hygiene (WASH) services for our employees in accordance with safety guidelines and best practices.

Vulcan also monitors the volumes and quality of water created as an output. Whenever possible, water is collected and recycled when pumped out of the quarries or through the dewatering process. When water is discharged, it is treated for Total Suspended Solids (TSS) and pH to meet all applicable federal, state, and local permit requirements, supported by regular testing through third-party laboratories. Water resource management is approached as a hyperlocal issue to account for significant variability in regional water availability, quality, regulations, and accessibility. While our local sites have been developing their own programs and processes to improve water efficiency for years, in 2022, we took the first step in creating a company-wide approach to water management. Our formal Water Risk Assessment (WRA) began at the end of 2022 and is slated for completion in 2023. The WRA process began with identifying the highest-priority sites by water stress using watershed-specific data from the Aqueduct Risk Atlas Tool.

W-MM0.1a/W-CO0.1a

(W-MM0.1a/W-CO0.1a) Which activities in the metals and mining and coal sectors does your organization engage in?

Activity	Details of activity
Mining	Other mining, please specify
	Crushed stone, sand and gravel and ready-mix concrete and hot-mix asphalt

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Vulcan Materials Company CDP Water Security Questionnaire 2023 Thursday,

July 27, 2023

W0.2

(W0.2) State the start and end date of the year for which you are reporting data.

	Start date	End date
Reporting year	January 1, 2022	December 31, 2022

W0.3

(W0.3) Select the countries/areas in which you operate.

Bahamas

Canada

Honduras

Mexico

United States of America

W0.4

(W0.4) Select the currency used for all financial information disclosed throughout your response.

USD

W0.5

(W0.5) Select the option that best describes the reporting boundary for companies, entities, or groups for which water impacts on your business are being reported.

Companies, entities or groups over which financial control is exercised

W0.6

(W0.6) Within this boundary, are there any geographies, facilities, water aspects, or other exclusions from your disclosure?

Yes

W0.6a

(W0.6a) Please report the exclusions.

Exclusion	Please explain
Water data is not	Total volumes as asked for are not available at this time. Some data is
collected and compiled	available on discharge amounts and well and stream withdrawals which will
for the entire company	be reported and qualified as to the extent of coverage. Data on amounts of
at time of reporting.	water recycled and amounts of stormwater collected for use is not generally
	available. The company is currently working on an environmental database
	that should allow for the collection of this data so it can be compiled for
	reporting. The enhancement of our data collection and disclosure
	capabilities is part of a greater Water Risk Assessment project that began
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Vulcan Materials Company CDP Water Security Questionnaire 2023 Thursday,

July 27, 2023

at the end of 2022 and is expected to be completed by the end of the 2023 fiscal year.

Additionally, to prioritize the higher risk and higher water-intensity activities,we are focusing the water risk assessment on production facilities of our four business segments:

Aggregates: including stone, sand and gravel, and recycled materials operations.

Ready-mixed concrete

Asphalt

Operations excluded from the water risk assessment were those that have been identified with low-water use and low water-intensity. The excluded operations include offices, distribution yards, and landfills.

W0.7

(W0.7) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?

Indicate whether you are able to provide a unique identifier for	Provide your unique
your organization.	identifier
Yes, a Ticker symbol	NYSE:VMC

W1. Current state

W1.1

(W1.1) Rate the importance (current and future) of water quality and water quantity to the success of your business.

	Direct use	Indirect use	Please explain
	importance	importance
	rating	rating
Sufficient	Important	Neutral	Primary Use: An initial input of quality water
amounts of good			supply is preferred to run aggregate processing
quality freshwater			plants for material washing, employee hygiene,
available for use			and for dust control. That initial water intake can
			then be continuously treated and recycled to meet
			our operational needs.
			Some of our operations, particularly ready-mixed
			concrete requires water of a higher quality as an
			input to meet product mix specifications, this
			occurs at both the operational and customer use
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Vulcan Materials Company CDP Water Security Questionnaire 2023 Thursday,

July 27, 2023

			phases.
			Importance to Direct Use: The importance of
			quality, freshwater to our direct use is rated as
			"important", to maintain the terms of our existing
			water rights and operational processes that, in
			many cases, have assumed access to an initial
			intake of freshwater.
			Important to Indirect Use: We have chosen to
			assign the rated importance to indirect use to
			neutral. We take a hyperlocal approach to our
			operational water management to account for
			regional variability. Similarly, the members of our
			value chain, including our extensive supplier
			network, have a diversity of water needs that
			cannot be accounted for by a singular rating.
			Future State: A number of our facilities are located
			in arid climates, or face other drivers to water
			stress. While we have not experienced any
			significant shortages of quality freshwater water in
			the past, we cannot guarantee that we will not in
			the future. Using data from globally recognized
			climate models and scenarios, we expect many of
			our operations, and the adjacent communities with
			which we share water resources, to experience
			increasing amounts of water stress. Many regions
			are projected to experience both a decrease in
			water supply and an increase in water demand.
			The changes to readily available freshwater will
			likely drive a need for greater water conservation,
			recycling, and treatment in our operations as
			water use for health and human services is a use
			prioritized over industrial processes in public water
			policy.
Sufficient	Important	Neutral	Primary Use: The majority of our aggregate
amounts of			operations use captured stormwater and
recycled,			otherwise recycled water to reduce demand for
brackish and/or			water withdrawals. By recycling water, we are
produced water			making every effort to leave these resources
available for use			accessible to adjacent communities and
			ecosystems. The uses of recycled water are the
			same as the uses of freshwater, except in cases
			of safety and sanitation uses of our employees. In
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