Sustainability Report

At Advanced Drainage Systems, our reason is water^®. We protect and manage water through sustainable solutions that safeguard the environment and build resiliency in communities nationwide.

We remain committed to driving the industry forward through innovative new solutions to solve water management challenges. In October 2024, we opened ADS’ new Engineering and Technology Center, the world’s largest and most advanced stormwater research facility in the world, adjacent to our corporate headquarters in Hilliard, OH, which will enable us to invest in material science; developing and accelerating commercialization of new products; and manufacturing and engineering excellence. This facility was integral in the Fiscal 2025 launch of the EcoStream^TM stormwater biofiltration product, as well as the Arcadia^TM hydrodynamic stormwater separator product launched in early Fiscal 2026, which has industry leading flow rates under new testing protocols.

Elsewhere in the business, we continued to develop innovative new products that assist communities across the U.S. with advance water handling and treatment, launching two new Infiltrator tanks for decentralized wastewater treatment to provide contractors additional flexibility in product selection. ADS also launched two new stormwater storage chambers, a new larger diameter capture product, and we expanded the stormwater offering through partnerships with a plastic storage crates provider and two capture product offerings.

ADS and Infiltrator products help mitigate the impact of climate change, but we recognize that sustainable business practices are equally as important as driving innovation and industry growth. In August 2024, the Science Based Targets Initiative approved ADS’ targets to reduce Scope 1 and 2 emissions by 50.4% from the Fiscal 2022 baseline, and Scope 3 emissions by 30%. Already, we are making progress toward these targets by increasing efficiency of our manufacturing operations and transportation assets. On average, ADS pipe production on a per line basis has increased by over 20% since 2020 due to our focus on growing capacity, rebuilding lines and investing in planning programs while taking inefficient equipment out of the network.

In addition, this year we completed a climate scenario analysis and developed a Climate Adaptation and Resilience Plan that follows the recommendations of the Task-force for Climate-related Financial Disclosure (TCFD). The process gave us the framework to identify both risks and opportunities for ADS under several different plausible future scenarios, both to improve our internal planning and risk mitigations strategies as well as prepare ADS for compliance with future reporting rules, including the California Climate reporting rule.

We believe these updates, as well as others you will find in this report, further underpin our commitment to sustainable business practices and transparency in reporting.

I thank you for taking the time to learn more about the great work ADS is doing to integrate sustainable practices throughout the business, reduce our environmental impact and increase our positive contributions to society. As always, we look forward to further building on the sustainability programs we have established in the years to come.

Read remarks from our Sustainability Chairperson, Michael B. Coleman