Achieving NET-ZERO - Our Commitment to a Clean Future

As GTA’s trusted Paving company, we understand both the magnitude of the climate crisis and our responsibility to help fix it. Over the last two years, we achieved over 20% reduction in GHG emissions. This experience is helping us set new targets and strategies
to further achieve zero emissions in 2050.

WE ARE ALREADY MAKING STEPS

The Board of Directors oversees the company’s climate-related risks and opportunities, emphasizing the transition of the plant and paving and other operations to net-zero emissions by 2050.  A dedicated Sustainability Committee collaborates closely with management to ensure that the strategy is integrated into operational decision-making and that progress is reported regularly.

MOVING TOWARDS CARBON NEUTRALITY

At Gazzola Paving, we embrace the challenge of building a sustainable future by driving bold action against climate change. We believe that achieving net-zero emissions is not just a goal but a responsibility — and we are determined to lead the way. Our mission is to tackle emissions across all three scopes — Scope 1 (direct emissions), Scope 2 (indirect emissions from energy use), and Scope 3 (emissions from the supply chain and product lifecycle) — with a relentless focus on measurable impact. We are committed to disaggregating these emissions to provide clear pathways for our clients to reduce their carbon footprint at every level of their operations.

As a challenge-taking firm, we hold ourselves accountable to ambitious interim targets: a 35% reduction in emissions by 2030 and 70% by 2040. These targets serve as a testament to our dedication to driving real, lasting change in the fight against climate change. We believe in the power of innovation, transparency, and collaboration to turn the complex task of carbon reduction into a tangible and achievable goal for every business. Let’s face the future of sustainability together — one step, one emission reduction, at a time.

SETTING THE STANDARD

As part of our NET-ZERO Challenge, we have established ambitious emissions reduction targets for our operations, with a roadmap that aligns with global climate goals:

To achieve net-zero, our key strategies include:

1. Implementing best industry practices and a scientific approach to enhance machinery efficiency, reducing energy consumption and emissions by 35% in 2030 and 75% by 2040 across Scope 1 and Scope 2.

PROGRESS AGAINST THIS COMMITMENT
To achieve our goal of reducing energy consumption and emissions by 35% in 2030 and 75% by 2040 across Scope 1 and Scope 2, we have implemented a series of effective measures. In 2023, we began covering the aggregate stockpiles to minimize moisture content, ensuring that the dryer consumes less energy to dry out the aggregates. Additionally, we encouraged shovel operators to collect stones from the east side of the pile, where they are naturally dried by the sun, further reducing the need for energy-intensive drying. We also paved the locations of our aggregate stockpiles to prevent moisture absorption from the ground. By monitoring moisture content daily and only using dry materials with less than 5% moisture, we achieved over a 20% reduction in energy consumption and emissions. These initiatives are a significant step toward improving operational efficiency and advancing our net-zero targets.

PROGRESS AGAINST THIS COMMITMENT
As part of our commitment to achieving a 35% reduction in emissions by 2030 and 75% by 2040 across Scope 1, Scope 2, and Scope 3, we have launched “FLEET ZERO”, a comprehensive green freight plan designed to decarbonize our fleet vehicles and increase the use of renewable energy. Based on detailed analysis, we have identified top opportunities for decarbonization that will significantly reduce our carbon footprint.

Key initiatives include the annual rolling replacement of some of our 21 light-duty supervisory trucks with Chevrolet Silverado EVs, starting with six trucks in year one and scaling up over the following years. Additionally, we will install CNG or Dual-Fuel Hydrogen retrofit kits in 13 medium-duty trucks, with a phased approach starting in year one. Our plan also includes refreshing snow operation vehicles with improvement idling management, a telemetric system and low-rolling resistance tires to improve fuel efficiency. To further support our fleet's transition, we will install EV charging infrastructure at our headquarters, including both Level 2 and Level 3 chargers, starting in year one and expanding through year seven to accommodate the growing number of electric vehicles in our fleet.

In addition, we are exploring alternative fuel options, including conducting one-year pilot programs for renewable diesel to assess their viability for our fleet. By transitioning to cleaner technologies, we are not only reducing emissions but also driving innovation and ensuring our fleet operations are ready for a sustainable future.

Implementation starts in 2026

3. Upgrading machinery with electrical and mechanical extensions to regulate energy flow and transition to renewable energy-powered equipment, aiming for a 35% reduction in emissions by 2030 and 75% by 2040 in Scope 1 and Scope 2.

PROGRESS AGAINST THIS COMMITMENT
As part of our strategy to achieve a 35% reduction in emissions by 2030 and 75% by 2040 across Scope 1 and Scope 2, we are upgrading our machinery with advanced electrical and mechanical extensions to regulate energy flow and facilitate the transition to renewable energy-powered equipment. One of the key initiatives is the addition of a heat recovery system in the plant, which will capture and repurpose excess heat generated during production processes, significantly reducing energy consumption. In addition, we are installing a transformer to better regulate current flow, ensuring that energy is used more efficiently and minimizing waste. These upgrades will not only enhance operational efficiency but also play a critical role in reducing emissions and moving us closer to our net-zero targets.

4. Collaborating with transportation companies to set carbon reduction targets, striving for a 35% emissions reduction by 2030 and 75% by 2040 across Scope 3

PROGRESS AGAINST THIS COMMITMENT
As part of our commitment to reducing emissions across Scope 3, we are actively collaborating with transportation companies to set and achieve carbon reduction targets. Scope 3 emissions primarily arise from activities across our value chain, including the transportation and distribution of goods. To address this, we are working closely with our logistics partners to identify key opportunities for decarbonization, such as transitioning to low-carbon fuels, optimizing routes for fuel efficiency, and adopting electric and hybrid vehicles for freight operations.

In addition, we are integrating sustainable practices into our supply chain, encouraging our transportation partners to track and report their emissions, while providing support to help them achieve their own sustainability goals. By setting clear carbon reduction targets, we aim for a 35% emissions reduction by 2030 and 75% by 2040 across Scope 3. This collaborative approach ensures that we reduce emissions not only within our own operations but across the entire supply chain, contributing to a broader shift towards a low-carbon economy. Together, we can build a more sustainable transportation network that minimizes environmental impact and drives long-term, positive change.