ESG Highlights

Serving the steel-intensive needs of a decarbonizing world, with sustainability in mind.

Environmental

Arch’s metallurgical products are essential to the production of new steel, which in turn is essential to the construction of a new, low-carbon economy.

Steel is pivotal to global decarbonization efforts, including sustainable urban design, infrastructure replacement and the construction of mass transit systems, wind turbines and electric vehicles.

Arch has undertaken a strategic pivot towards global steel and metallurgical markets and away from domestic power markets in recent years.

1ST

Arch recently established an industry-first thermal mine reclamation fund to enable long-term funding to be available for the reclamation and closure obligations at its Powder River Basin operations.

~40%

Since 2011, Arch — through its strategic pivot and other steps – has reduced Scope 1 and Scope 2 CO2e absolute emissions by 40 percent.

1st

During 2023, the Leer mine became the first U.S. mine of any type to achieve Level A verification under the globally recognized Towards Sustainable Mining standard.

>50%

Arch has actively reclaimed former mine sites in the eastern U.S., which is evident in the greater than 50 percent reduction in long- term holding costs for these properties since 2017.

>40K

Arch’s subsidiary operations have restored more than 40,000 acres of mined lands since 2016.

Arch is the first U.S. metallurgical coal supplier to join ResponsibleSteelTM,
a global steel industry certification initiative focused on building an increasingly sustainable steel value chain.

As part of its strategic pivot, Arch is also transitioning towards underground mining, with its more limited environmental footprint and land usage, while systematically reducing surface mining activities.

100%

During 2023, Arch subsidiaries achieved a 100 percent compliance record for water quality management, with zero exceedances against more than 90,000 parameters measured.

42%

In 2023, Arch subsidiaries recycled more than 2.2 billion gallons of water — equivalent to 42 percent of the company’s total water usage — thus avoiding drawing a commensurate amount of new gallons from water sources.

In 2023, Arch subsidiaries achieved a perfect environmental compliance record, as measured by SMCRA violations, with zero violations.

3X

Arch subsidiaries have claimed the top national award for community engagement — the Good Neighbor Award — three times in the past five years.

Social

200

Approximate number of subsidiary mine site and corporate employees who participate in Arch’s annual safety and environmental summit.

The leadership at Arch’s flagship metallurgical mines meet quarterly with Arch- established community advisory panels (CAPs) comprised of business leaders, educators, first responders, and elected officials, among others.

91%

Arch’s responsible and respectful culture has helped it attract an experienced, talented and high-performing workforce with an average voluntary retention rate of 91 percent over the past five years.

Arch’s subsidiary operations provide some of the highest wage jobs in their operating regions, with median annual earnings of more than $110,000 in 2023 and a highly competitive benefits package.

0.78

During the past five years, Arch has averaged 0.78 lost-time incidents per 200,000 employee-hours worked, versus an industry average of 2.22.

Arch’s subsidiary operations have recorded 2.3 million safety observations since launching the behavior-based safety program in 2007.

Arch employees engage in a proactive, behavior-based approach to safety, which has helped the organization consistently lead its large, integrated peers in safety performance.

Arch CARES further reinforces the company’s ongoing efforts to promote a safe and respectful work environment.

Every employee of Arch and its operating subsidiaries is required to comply with the company’s Code of Business Conduct, and all salaried employees are expected to complete annual online training on its contents.

Arch requires suppliers to conduct business in the same ethical and responsible manner it requires of its own employees, and stipulates these requirements via its Supplier Code of Conduct.

Governance

Arch believes that strong corporate governance policies and practices are the foundation of a well-functioning board and are vital to preserving the trust of stakeholders.

The Arch board meets in executive session — with only independent directors in attendance — on a regular basis, and conducts annual self-evaluations at both the full board and committee levels.

Arch regularly conducts shareholder outreach on matters such as executive compensation, corporate governance, and ESG responsibility, and takes action on key learnings related to this outreach.

The board provides critical oversight of the corporation’s enterprise risk management (ERM) system — including climate-related risks and opportunities — and is committed to setting the tone at the top on ESG matters.

The Arch board recently took steps to enhance its ESG governance framework — including the establishment of an ESG and Nominating Committee — to gain efficiencies and re-emphasize the board’s commitment to continuous improvement in ESG.

Arch utilizes an industry-leading environmental management information system (EMIS) to assist in managing and tracking environmental data; compliance obligations; audit findings and corrective actions; and regular internal reporting of environmental activities.

The board and its ESG and Nominating Committee make diversity in gender, ethnicity/race, and career experience a priority when considering director candidates.