COMMERCIAL METALS COMPANY 2015-2016 SUSTAINABILITY REPORT 21 As of December 2016, CMC has reduced energy consumption by 4.6 percent compared to 2012. This equates to more than 750 million kWh enough energy to power nearly 70thousandhouseholds for an entire year. in energy efficiency across industrial manufacturers in the United States. Through this program, we meet with a Technical Account Manager to discuss projects and address efficiency programs that CMC is working on. Since joining, CMC has made great strides in reducing the energy intensity of our operations, and we are making progress towards our goal of a 25 percent reduction by 2023 based on a 2012 baseline. Efficiency-Enhancing Project Highlights Specific projects implemented in 2015-2016 that had the greatest impact on efficiency were: • Reduced carbon consumption through optimization of the electric arc furnace chemical energy programs at CMC Steel Texas and CMC Steel South Carolina. This enabled us to use less charge carbon in the production of steel and maximize metallic yield. • Installation of the static var compensation (SVC) system in our Texas melt shop in 2015 which helped smooth out disturbances and make our electrical power input more consistent, and thus more efficient. This project has been so successful it is now under consideration for other facilities. • Installation of electrical sub- metering at CMC Steel in Texas and South Carolina which enables the team to continuously monitor energy consumption through the process of melting scrap, casting it into billets and rolling it into finished products and to identify opportunities for improvement. Live data from the meters is used by operations to monitor equipment status and health in order to keep our processes running consistently. Partnership with Salt River Project CMC Steel Arizona continues to partner with its electric energy provider, Salt River Project (SRP), to improve energy efficiency by installing more efficient equipment and controls. Our electrical rate includes a contribution to SRP’s energy efficiency program, and we are able to recover this contribution by implementing energy saving projects. Through the program, we have improved compressed air system efficiency by installing a trim compressor, and we have replaced all lighting in the mill with LED lighting and installed more efficient drives and motors. Benchmarking Against Industry Peers Through the benchmarking services of the Association of Iron & Steel Technology (AIST) CMC measures its energy efficiency against other domestic and international EAF mills. When AIST shared the electrical energy consumption of 36 electric arc furnaces in FY2016, CMC compared well: Three CMC Steel mills were better than the average, and two mills were at average.