Sustainability Report

In Fiscal 2026, ADS continued to strengthen its leadership in water management by delivering innovative solutions that address critical infrastructure, resilience, and environmental needs while supporting long-term, profitable growth. Last year, we advanced our strategy through the launch of new products designed to help customers build more resilient communities, including the industry leading Arcadia™ hydrodynamic stormwater separator.

We also expanded our strategic platform through our acquisition of National Diversified Sales (NDS). This acquisition enhances the depth and breadth of ADS’ stormwater offering by extending our reach into complementary water management segments and strengthening our ability to serve customers across the full water solutions value chain. We are excited about the potential of NDS to drive long-term growth and reinforce ADS’ position as a leading provider of innovative water management solutions.

Sustainability remains central to how we manage risk, improve operational efficiency, and create durable value. As our products help customers manage the impacts of a changing climate, we are equally focused on strengthening the sustainability of our own operations. ADS has committed to science-based targets to reduce scope 1 and 2 GHG emissions by 50.4% and scope 3 emissions by 30% by Fiscal 2032, against a Fiscal 2022 baseline – reinforcing our commitment to measurable progress and disciplined execution.

During Fiscal 2026, we continued executing against these targets through targeted optimization and efficiency improvements across our manufacturing operations and transportation assets. Energy efficiency initiatives, transportation optimization, and the continued greening of the grid contributed to a 12.5% reduction in scope 1 and 2 GHG emissions compared with our Fiscal 2022 baseline, and 22% reduction in scope 3 category 1 GHG emissions. As we continue modernizing our fleet, with more than 70% of vehicles now model year 2023 or newer, we are realizing measurable improvements in fuel efficiency. These efforts support both our environmental objectives and our broader focus on productivity, cost discipline, and operational excellence.

I am also immensely proud of the work of our leaders in creating a safe, welcoming environment for our employees each day. In Fiscal 2026, ADS achieved a total recordable incident rate (TRIR) of 1.52, representing our best performance over the last 5+ years and a continuation of year-over-year improvements in safety performance. Further, we maintained several regular engagement touchpoints with our employees, including expanding our leadership development programs and launching seven new affinity groups, contributing to our culture of belonging. In Fiscal 2026, we achieved a 79.6% response rate to the annual Culture and Engagement survey – demonstrating strong employee engagement.

Over the past year, we refreshed our materiality assessment to incorporate stakeholder perspectives more directly and ensure our sustainability priorities remain aligned with the issues most relevant to our business, our customers, our investors, and the areas where ADS can have the greatest impact. Our refreshed assessment largely reaffirmed the priority areas identified in our prior assessment and will help us prioritize resource allocation to the highest-impact areas for long-term performance and stakeholder confidence going forward.

Collectively, these actions demonstrate continued progress against our sustainability strategy and reinforce our focus on disciplined execution, transparent reporting, prudent capital allocation, and long-term value creation. Looking forward, ADS’ growing recycling capabilities, ongoing transportation fleet modernization, and prudent management of climate-related risks and opportunities position the Company well to benefit from durable demand for innovative water management solutions while maintaining resilience in volatile markets and continuing to operate responsibly and efficiently.

Thank you for your continued interest and confidence in ADS. We remain committed to integrating sustainable practices across our business, reducing environmental impact, and strengthening the positive role we play for our customers, communities, stakeholders, and shareholders.