Sustainability

Improving Human Lives by Proving Human Being’s with Access to Hydrocarbons in a Sustainable and Environmentally Productive Manner

Our core obligation has been, and will always be, to our stockholders. We recognize that maximizing value for our stockholders requires that we optimize the outcomes for our broader stakeholders, including our employees, as well as the communities in which we operate. We are proud of the fact that our approach to innovation in the hydrocarbon industry while operating in an environmentally responsible manner creates immense value. The hydrocarbons we help to produce enhance many aspects of human life due to hydrocarbon-based energy and products, including machines and vaccines, and we are therefore having a very positive impact on human flourishing.

Since our founding in 2017, our core mission has been to improve human beings’ access to the hydrocarbons that power our lives while also delivering differentiated social and environmental progress. Our Atlas Energy team has driven innovation and has produced industry-leading environmental benefits by reducing energy consumption, emissions, and our aerial footprint. Our core business is fundamentally aligned with a lower emissions economy. Atlas Energy Solutions is, and will continue to be, an industry leader in reducing emissions, especially regarding air pollutants that are known to be harmful to humans. We call this Sustainable Environmental and Social Progress (“SESP”).

Sustainable Environmental Progress:

E-Mining

Our primary mining operations utilize an electrified dredge mining system (or “e-mining”), which generates materially lower emissions when compared to traditional mining as it reduces the need for diesel powered heavy machinery and equipment, characteristic of typical mining operations in the Permian Basin. Furthermore, the e-mining process also leads to less surface area disturbance per ton of sand produced as we mine to greater depth as compared to mining associated with buried sand deposits.

The Dune Express

We are undertaking our Dune Express initiative, which can be characterized as “electrified sand delivery” via an automated conveyor system. We believe the Dune Express will represent a first-of-its-kind, transformational energy logistics platform which, in conjunction with the scale of our asset base, will provide the Permian oil and gas industry with increased efficiencies and reliability while substantially reducing emissions.

Environmental Conservation Initiatives

Since Atlas’ inception, our management team has been proactive in its conservation and protection of the Dunes Sagebrush Lizard (“DSL”). This conservation includes not only protection of the DSL, but its habitat, as well. Although Atlas is constantly mindful of conservation and our environment, its efforts with the DSL are a direct effort to reduce the risk of business interruption in the event that the DSL is listed as endangered under the Endangered Species Act (“ESA”). We have adopted numerous best practices to promote active conservation measures for the benefit of the DSL, including our identification of more than 17,000 acres of land for potential set asides, our pursuit of more environmentally friendly mining practices and our participation in the Candidate Conservation Agreement with Assurances (“CCAA”) for the DSL.

Atlas is committed to managing our environmental footprint proactively. We are committed to working with the industry and communities in which we operate to address our impacts in the environment. We are achieving these commitments through industry-leading research, innovative technologies, and corporate best practices.

Sustainable Social Progress:

Employees

We have committed to fostering a safe environment at our worksites and we are committed to extending this culture of safety far beyond our premises. We have a rigorous safety training program with well-developed protocols. We have automated or have invested in remote operations technology to substantially reduce the amount of the activities at the plant sites that require physical interaction between human beings and industrial equipment, and in doing so have removed many of the safety hazards at our facilities.

The success of our efforts to create a high-quality workplace is evidenced by our low employee turnover and accolades that include the “Great Place to Work” certification from the Great Place to Work Institute, Inc. for the years ended December 31, 2019, 2020, 2021 and 2022, as well as the “Top Work Places” Award of Recognition from Austin American-Statesman for the year ended December 31, 2021 and 2022.

Our Company’s culture is a product of our employees, and as such, we embrace the responsibility of promoting a diverse and inclusive meritocracy, with over 64% minority and/or female representation in our workforce as of December 31, 2022.

Veterans

We believe that the men and women who have served in the United States armed forces have earned a special place in our society. As such, at our founding we created a dedicated effort to support our veterans in our hiring. We have found our focus on recruiting veterans to work for Atlas has brought us many hardworking and outstanding employees over the years and has positively influenced our corporate values. We have received external recognition for our veteran hiring practices, including the Hire Vets Medallion from the U.S. Department of Labor (“DOL”) in 2019, 2020, 2021 and 2022. As of December 31, 2022, 8.4% of our employees served in the U.S. military as compared to an average of 5.6% across all employers nationally.

Dune Express

We anticipate that our planned Dune Express project will provide significant environmental benefits, while also benefitting the surrounding region, making it a safer place to live and work. Our management’s analysis supports our expectation that the Dune Express will contribute to a meaningful reduction in Permian Basin traffic accidents, congestion and automobile fatalities, by taking trucks off public roads and operating in a much more efficient manner than the industry has historically operated. We believe this will also benefit the community by reducing the wear and tear on local infrastructure, while making the region a safer and better place to live and work. Furthermore, by reducing the number of drivers needed per well and in the aggregate, these initiatives can meaningfully reduce trucking-related hazards on customer wellsites and mitigate future driver shortages.

Community Engagement

We are actively engaged in the West Texas community in which we operate, as we believe that by supporting our community, our community will support us. We sponsor a number of programs benefitting schools and the youth in Winkler and Ward Counties, Texas, including supporting after-school programs for children and skill-development programs for high school students.