As a service company, KPE's approach to environmental, social and governance (ESG) is unique. We selectively choose the projects we bid and service to ensure they are aligned with our ESG goals. We create an environment that our employees want to work in. And we enable our employees to ensure our company is run in an ethical and transparent way.

A major focus in the environmental realm is carbon dioxide and overall greenhouse gas (GHG) emission reduction to positively affect climate change. In the last three years, KPE has pivoted the application of our background and expertise to support sustainable projects. When the market turned full speed ahead on renewables, we immediately aligned with our customers to take on the challenge. We leveraged our deep experience in process engineering for refining to pivot HollyFrontier into the renewable fuels sector. The renewable diesel unit we designed for them was the sixth in the country to be built. This gave us credibility in lowering Carbon Intensity scores. We also hired a team of experts in syngas, gasification and hydrogen and began educating the industry on how to successfully transition existing crude oil refineries to renewable diesel production, how to produce green hydrogen, how to recycle waste and more. In addition, we established strategic partnerships with two key technology providers who are leading the way in waste-to-energy conversion. Our support is summarized below:

• • Technology Licensor A: We are creating the process-design-package for a forestry-to-syngas unit to help this company effectively commercialize for the first time.

• • Technology Licensor B: We have an exclusive partnership to produce hydrogen from municipal solid waste

These efforts touch on key areas essential to environmental conservation of the natural world: climate change and carbon emissions, deforestation and waste management.

In the social sphere, creating a diverse workforce that is involved and engaged in issues beyond their profits is key to societal progression. To contribute, we increased our focus on diversity and inclusion and community engagement as well as employee-representation in key industry advocacy and education groups. Below is a summary of the work we’ve done to deliver on this progression:

• • Increased female hires by 20% in 2021
• • Implementation of internship program for future STEM workforce development
• • Implementation of volunteer service programs for community engagement and development
• • Board Members of the Global Syngas Technologies Council, Excellence in Capital Construction, University of Texas Department of Engineering Advisory Council, etc.

These efforts touch on key areas essential to the utmost consideration of people & relationships: gender and diversity, employee engagement and community relations.

Governance can often be overlooked by private companies, as political contributions, lobbying, whistleblower policies, etc. aren’t as common as they are for public companies. However, while KPE is a private company, we affectively assess our company standards through weekly executive meetings and monthly management meetings. In these meetings we address:

• • Company direction – assessment of resources, financial projections, etc.
• • Company strategy – assessment of project selection, strategic partnerships, etc.

These efforts foster an environment of collaboration and transparency, thereby creating better standards for running our company.