2018 CORPORATE RESPONSIBILITY REPORT

Stakeholder Engagement
and Materiality

102-9
Supply chain

102-40
List of stakeholder groups

102-42
Identifying and selecting stakeholders

102-43
Approach to stakeholder engagement

102-44
Key topics and concerns raised

102-46
Defining report content and topic Boundaries

102-47
List of material topics

102-49
Changes in reporting

103-1
Explanation of the material topic and its Boundary

GRI
102-9
102-40
102-42
102-43
102-44
102-46
102-47
102-49
103-1

We believe our relationship with our employees and external stakeholders strengthens our business. By soliciting perspectives and feedback from our board of directors, employees, customers, suppliers, partners, investors, community members, and regulators, we gain insights that enable us to make good strategic decisions.

In 2018, we conducted a robust materiality assessment to identify our most relevant environmental, social, and economic impacts, risks, and opportunities across our value chain. We worked with stakeholders to understand their perspectives, incorporating their input with our knowledge of global and industry trends to prioritize our Sustainable Development (SD) topics. We considered mega trends including resource efficiency (doing more with less) and urbanization. Our products help advance many of these global mega trends.

The results of all the materiality assessment work serve as a roadmap for our SD initiatives, ensuring we are investing our resources where we can have the most positive impact. Each year the SD Advisory Committee sets new and more challenging goals for our SD Teams that push us to achieve greater accomplishments. We plan to refresh our materiality assessment every three years as priorities evolve for our business, our markets, and our valued partners.

Value Chain

The Materiality Assessment Process

Shortly after the creation of Covia in mid-2018, we conducted a materiality assessment. This process was conducted by a third party that looked across our value chain—our operations, supply chain, and product use phase—for impacts, risks, and opportunities, and engaged key internal and external stakeholders in one-on-one conversations. This assessment aimed to ensure that we are managing our most significant Sustainable Development (SD) material topics—topics that matter most to Covia’s stakeholders. Many of the topics identified are issues listed as risk factors in the Covia 2018 Annual Report on form 10-K.

Steps in the Materiality Assessment Process

   
Benchmarking We benchmarked peers to compare and contrast focus areas. We also benchmarked sustainability topics discussed by our top customers in our two business segments—Energy and Industrial.
Research

We conducted research to determine material Sustainable Development (SD) topics in the mining, manufacturing, and oil and gas industries.

 

We also invested in third-party research to learn about topics relevant to our business.

Impact Mapping A cross-functional group of senior leaders came together to discuss benchmarking and research results. The group identified significant economic, environmental, and social impacts, risks, and opportunities across our value chain. We then administered an internal survey where nearly 30 Covia leaders rated the importance of various impacts, risks, and opportunities based on common criteria.
External Stakeholder Interviews We interviewed 35 external stakeholders for their perspectives on which Sustainable Development (SD) topics are most important to proactively manage. Stakeholders included Energy customers, Industrial customers, transportation suppliers, community members, industry associations, regulatory authorities, and an expert on sustainable business practices.
Board of Directors Interviews Four of the 13 members of our board of directors participated in interviews to describe the highest-priority Sustainable Development (SD) topics that both add value and mitigate risk.
Validation Workshop In October 2018, a cross-functional group of senior leaders, discussed the results of the materiality assessment and validated the prioritization of the material topics.

Covia identified stakeholders to engage in the materiality assessment based on one or more of these criteria:

  • Have a deep knowledge of Covia;
  • Influence Covia’s operations and prosperity;
  • Are significantly impacted by Covia’s operations and prosperity;
  • Possess expertise related to industry and/or sustainability topics relevant to
    Covia; and
  • Have the ability to collaborate with Covia to address key impacts, risks,
    and opportunities.

Through the robust research, benchmarking, and stakeholder engagement, the following topics surfaced as our highest priority:

HOME
People
Planet
Prosperity
Materiality
Matrix
In 2018, we conducted our first robust materiality assessment to identify our most relevant environmental, social, and economic impacts, risks, and opportunities across our value chain. By engaging and listening to our internal and external stakeholders, we can better drive innovation, strengthen our capabilities, develop best practices, and be good neighbors. This matrix serves as a roadmap for our Sustainable Development initiatives, ensuring we are investing our resources where we can have the most positive impact.
Throughout fluctuating market conditions, Covia continues to invest in what we believe is key to a thriving business and community—People. We are committed to ensuring our employees work and arrive home safe and healthy, every day. Our Company’s action orientation from our Clearly Covia values and behaviors: Safety First; Be Different; Deliver on Promise; and, Do Good. Do Well. Act. Responsibly. also extends to how we engage with those who handle, use, or are impacted by our products or processes.
Our Company’s action orientation derives from our Clearly Covia values and behaviors: Safety First; Be Different; Deliver on Promise; and, Do Good. Do Well. Act. Responsibly. This also extends to the communities where we operate, and to the planet. Through market cycles, we remain good stewards of air, water, and land. We proactively work to maintain clean air, conserve energy, conserve fresh water, manage land responsibly, and reduce waste.
Our innovative spirit, unwavering commitment to Sustainable Development, and cost consciousness leads us to continuously craft a broad product suite of high-quality, safe when used properly, efficient minerals and material solutions. Our Clearly Covia values and behaviors: Safety First; Be Different; Deliver on Promise; and, Do Good. Do Well. Act. Responsibly. lead to prosperity that is shared with our stakeholders—our shareholders, employees, customers, and communities.
Safety and Health
Community Impacts
and Partner of Choice
Employer
of Choice
Stakeholder
Partnerships,
Education,
and Influence
Air Quality
Transportation Logistics,
Efficiency, Emissions
Water Use
Land
Management,
Remediation, and
Biodiversity
Energy and GHG Emissions
Waste
Product Supply and Demand Dynamics
Capital Structure,
Cost Control, ROI
Business Growth
and Diversification
Product Quality
Product and Process Innovation
Compliance and
Ethical Behavior
Community
Investment
High
Significance to Covia
Higher
High
Significance to Covia's Stakeholders
Higher

People

Safety and Health

Definition / Boundary
Providing the proper training, tools, equipment, and safety culture for those exposed to the hazards of mining and transportation of our products; having emergency preparedness and response plans; having proper equipment, processes, and testing in place to mitigate potential health risks from dust and other airborne particulate matter; providing customers with communication on the proper use of our products and dust management techniques
 
Boundary: All internal operations; external operations — on-site suppliers and contractors in our areas of operation and customer operations globally, communities in our areas of operation
 
Primary Stakeholders Impacted
Customers, Employees, Suppliers

Community Impacts
and Partner of Choice

Definition / Boundary
Managing our potential impact on communities in which we operate, including traffic, noise, lights, air quality, surface water and ground water quality, and blasting impacts; engaging in dialogue with local citizens to develop ongoing positive community relations; being present, accessible, transparent, and proactive in explaining Sustainable Development practices and addressing concerns; working with local stakeholders to plan for and limit the impacts of a closure, idling, or relocation of a Covia facility, including the long—term land use for the benefit of the community
 
Boundary: External operations — communities in our areas of operation
 
Primary Stakeholders Impacted
Communities, Employees

Employer
of Choice

Definition / Boundary
Taking the best of the unique cultures of our legacy organizations to create a thriving, vibrant, and authentic Clearly Covia culture; providing employees with high quality training, education, personal and career development opportunities, recognition, health and wellness assistance, and work—life balance; empowering employees to make a difference at work, in their own lives, and in the world through Sustainable Development and volunteerism; providing employees with competitive wages, benefits, and profit sharing; attracting, developing, and retaining talented and qualified employees; managing high rates of experienced or anticipated organization changes with clear and consistent communication from senior and local leadership, two—way channels of communication, and addressing employee concerns
 
Boundary: All internal operations
 
Primary Stakeholders Impacted
Employees, Investors

Stakeholder
Partnerships,
Education,
and Influence

Definition / Boundary
Partnering with, educating and innovating with suppliers, customers, peers, governments, indigenous peoples, communities, local interest groups, schools, local businesses, and other partners in the adoption of sustainable practices; educating investors about our commitment to Sustainable Development and its value; effectively introducing the Covia brand to all internal and external stakeholders; partnering with non—governmental organizations (NGOs) that share and champion our mission of corporate responsibility
 
Boundary: External operations — suppliers, customers, peers, partners, investors, and businesses in our areas of operation and globally
 
Primary Stakeholders Impacted
Communities, Customers, Suppliers

Planet

Air Quality

Definition / Boundary
Striving to promote safe air quality in and around our facilities through compliance with required regulations in all material respects, voluntarily set measures that exceed required levels, and internal and external third—party testing; Minimizing fugitive dust emissions and striving for safe air quality in nearby communities
 
Boundary: Internal manufacturing and mining operations; external operations — communities in our areas of operation
 
Primary Stakeholders Impacted
Communities, Customers, Employees, Suppliers

Transportation Logistics,
Efficiency, Emissions

Definition / Boundary
Reducing transportation—related carbon emissions and costs; planning for, securing, and effectively utilizing an efficient and reliable network of last mile, regional, national, and international transportation providers; managing the utilization of railcars, trucks, and barges—filling to maximum capacity and reducing unnecessary transportation
 
Boundary: Internal transportation and logistics operations; external operations — supplier and transportation carrier operations
 
Primary Stakeholders Impacted
Employees, Customers, Suppliers

Water Use

Definition / Boundary
Assessing and mitigating our water—related impacts and risks, with sensitivity to water—stressed regions; increasing the efficiency of freshwater withdrawals and the use of recycled water; managing potential direct and indirect impacts on groundwater, surface water, and aquifers; frequent internal and third—party testing of our discharged water for solids in suspension, pH, and other constituents to maintain compliance with relevant regulations
 
Boundary: Internal manufacturing and mining operations; external operations — communities in our areas of operation and customers’ operations using our products
 
Primary Stakeholders Impacted
Customers, Employees, Communities, Investors

Land
Management,
Remediation, and
Biodiversity

Definition / Boundary
Evaluating, managing, and remediating impacts to all flora and fauna, including protected species and natural habitats resulting from our mining activities and reclamation; positively impacting species diversity and their ability to thrive during mining operations and post-closure; assessing post-closure land uses with local stakeholders and returning land to a productive state after mine or quarry closure wherever possible
 
Boundary: Internal mining operations; external operations — communities in our areas of operation
 
Primary Stakeholders Impacted
Communities, Employees, Investors

Energy and GHG Emissions

Definition / Boundary
Effectively managing energy use across our operations to reduce our GHG emissions; procuring low carbon and renewable energy sources; exploring facility and enterprise GHG emission reduction targets
 
Boundary: Internal manufacturing and mining operations (not including offices and company vehicles)
 
Primary Stakeholders Impacted
Communities, Customers, Employees, Investors

Waste

Definition / Boundary
Properly characterizing, monitoring, containing, managing, and disposing of solid and liquid waste from our mining operations; reducing waste sent to landfills; identifying customers for waste streams suitable for beneficial reuse; keeping resources in use for as long as possible
 
Boundary: Internal manufacturing and mining operations; external operations — communities in our areas of operation (including offices)
 
Primary Stakeholders Impacted
Communities, Employees

Prosperity

Product Supply and Demand Dynamics

Definition / Boundary
Foreseeing, planning for, and managing the fluctuating supply, demand, and pricing in markets we serve; positioning Covia to capture shifts in demand (e.g., Permian Basin, finer sands, and low iron sand for high quality glass) while balancing long—term economic, social, and environmental risks and impacts
 
Boundary: All internal operations; external operations — customer operations globally
 
Primary Stakeholders Impacted
Customers, Employees, Investors

Capital Structure,
Cost Control, ROI

Definition / Boundary
Maintaining a strong balance sheet and access to capital to respond to commitments and market conditions (e.g., debt repayments, organic investments, restarting idled mines/quarries, strategic acquisitions); controlling costs to enhance margins; making investment decisions based on agreed—upon ROI
 
Boundary: All internal operations
 
Primary Stakeholders Impacted
Customers, Employees, Investors

Business Growth
and Diversification

Definition / Boundary
Establishing a business strategy that positions Covia for success throughout all market cycles; bridging to lower carbon economies through a diversified portfolio of products and solutions serving sustainable industries through organic growth, geographic expansion, innovation, and/or acquisition; promoting cross—selling synergies
 
Boundary: All internal operations
 
Primary Stakeholders Impacted
Communities, Employees, Investors, Suppliers

Product Quality

Definition / Boundary
Providing consistent, reliable, high—quality products with proper handling and storage to meet or exceed customer expectations
 
Boundary: Internal manufacturing and mining operations; external operations — customer operations globally
 
Primary Stakeholders Impacted
Customers, Employees, Investors

Product and Process Innovation

Definition / Boundary
Investing in innovation and technologies that contribute to solving customer challenges and advance sustainable products and practices (e.g., reduce dust, freshwater consumption, methane emissions, contaminants); protecting our proprietary products and processes; exploring the use of environmental life cycle analyses to drive sustainable product innovations
 
Boundary: Internal research and development operations; external operations — customer operations globally
 
Primary Stakeholders Impacted
Customers, Employees, Investors

Compliance and
Ethical Behavior

Definition / Boundary
Making ethical and responsible decisions in daily practices, adhering to applicable corporate governance policies, and complying with applicable laws and regulations; pursuing business practices that enable us to acquire permits and maintain or gain access to land, mineral rights, and water, helping ensure continuous operations
 
Boundary: All internal operations
 
Primary Stakeholders Impacted
Communities, Customers, Employees, Governments and Regulatory Agencies, Suppliers, Investors

Community
Investment

Definition / Boundary
Investing time, talent, and financial resources to local organizations and initiatives that enhance our communities—focusing on Environment, Health & Wellness, and Education; deeding acreage; prioritizing local hiring and procurement
 
Boundary: External operations — communities in our areas of operation
 
Primary Stakeholders Impacted
Communities, Employees

By engaging and listening to our internal and external stakeholders, we can better drive innovation, strengthen our capabilities, develop best practices, and be good neighbors.

Below are the stakeholder perspectives we gathered through our materiality assessment and other engagement mechanisms.

Stakeholder Group

Types of Engagement

Frequency of Engagement

Topics of Importance

Board of Directors

In-person meetings, calls

Regularly, customized as needed

Air Quality; Business Growth and Diversification; Capital Structure, Cost Control, ROI; Community Impacts and Partner of Choice; Compliance and Ethical Behavior; Employer of Choice; Energy and GHG Emissions; Product Supply and Demand Dynamics; Safety and Health; Transportation Logistics, Efficiency, Emissions

Leadership Team

In-person meetings, calls

Regularly, customized as needed

Air Quality; Business Growth and Diversification; Capital Structure, Cost Control, ROI; Compliance and Ethical Behavior; Employer of Choice; Product and Process Innovation; Product Quality; Product Supply and Demand Dynamics; Safety and Health; Transportation Logistics, Efficiency, & Emissions; Water Use

Employees

Employee Engagement Survey, in-person meetings, calls

Regularly, customized as needed

Air Quality; Business Growth and Diversification; Capital Structure, Cost Control, ROI; Community Impacts and Partner of Choice; Community Investment; Compliance and Ethical Behavior; Employer of Choice; Energy and GHG Emissions; Product Quality; Product Supply and Demand Dynamics; Safety and Health; Water Use

Energy Customers

Surveys, interviews, in-person meetings, calls

Regularly, customized as needed

Capital Structure, Cost Control, ROI; Product and Process Innovation; Product Quality; Product Supply and Demand Dynamics; Safety and Health; Transportation Logistics, Efficiency, Emissions

Industrial Customers

Surveys, interviews, in-person meetings, calls

Regularly, customized as needed

Compliance and Ethical Behavior; Energy and GHG Emissions; Safety and Health; Stakeholder Partnerships, Education and Influence; Transportation Logistics, Efficiency, Emissions; Water Use

Communities

Public hearings, open houses, newsletters, calls, in-person meetings, local media sources

Ongoing, customized as needed

Community Impacts and Partner of Choice; Community Investment; Stakeholder Partnerships, Education and Influence

Governments and Regulatory Agencies

Public hearings, open houses, newsletters, calls, in-person meetings, local media sources

Ongoing, customized as needed

Air Quality; Compliance and Ethical Behavior; Energy and GHG Emissions; Safety and Health; Stakeholder Partnerships, Education and Influence; Waste

NGOs and Subject Matter Experts

In-person meetings, calls

Annually, as needed

Energy and GHG Emissions; Community Impacts and Partner of Choice; Community Investment; Land Management, Reclamation, Biodiversity; Safety and Health; Stakeholder Partnerships, Education and Influence

Suppliers (Transportation, Chemical, etc.)

Surveys, in-person meetings, calls

Ongoing

Business Growth and Diversification; Safety and Health; Stakeholder Partnerships, Education and Influence; Transportation Logistics, Efficiency, Emissions

Investors

Quarterly calls, press releases, in-person meetings

Quarterly, as needed

Capital Structure, Cost Control, ROI; Compliance & Ethical Behavior; Community Impacts and Partner of Choice; Energy and GHG Emissions; Employer of Choice; Land Management, Reclamation, Biodiversity; Product Supply and Demand Dynamics; Safety and Health; Waste; Water Use

Peers and Industry Associations

Membership/ attending in-person meetings, calls

Regularly, customized as needed

Air Quality; Community Impact & Partner of Choice; Community Investment; Compliance & Ethical Behavior; Product and Process Innovation; Safety and Health; Stakeholder Partnerships, Education and Influence

We sincerely appreciate our stakeholders’ interest in engaging with us and the valued time they gave to assist us in prioritizing our most important topics. Their support helps Covia stay true to our ongoing commitment to Sustainable Development.

Our Materiality Results: Significant Impacts, Risks, and Opportunities

The materiality assessment validated many topics we have historically known to be important to our organization. We identified topic owners for each of the 17 most significant Sustainable Development (SD) topics and worked to better understand how each topic is managed. We continue to align our management and SD Team efforts with our most significant SD topics and strengthen our measurement of key performance indicators. In 2019, we plan to set long-term goals for each topic to propel us toward a flourishing future. Throughout People, Planet, and Prosperity, you will learn about our management approach and progress.