OVERVIEW
Dynamic is often defined as “active” and “evolving” and sometimes even as “developing” or “adapting”. At Arq, we believe this notion – dynamic – closely describes our sustainability efforts in 2025.
We experienced material successes and achieved increased efficiencies across many of our operations, while also witnessing efficacy setbacks and stability challenges in others. The risks and opportunities that emerged during 2025 provided insight and learnings that will guide our sustainability strategy going forward. We have taken a measured approach in evaluating our 2025 sustainability data to address the risks that have impacted our sustainability progress and embrace the opportunities that could bolster our long-term sustainability efforts.
OUR CORE VALUES
In light of our growth activities in 2025, we made a deliberate decision to “reset” our company values and align our top priority – safety – formally within our values. This reset re-aligned our values to be more in line with our culture and strategic vision. Further, our re-oriented values aim to mitigate any emerging risks – whether physical, personal, reputational, sustainable, or financial – as we manage new processes and equipment, development of new products, and exploration of new markets.
Arq’s Core Values
Safety
We demonstrate an unwavering commitment to putting safety first in all aspects of our work.
Excellence
We commit to delivering industry-leading technical and operational quality, driven by continuous improvement
Collaboration
We work together, supporting colleagues and customers to drive collective success.
Accountability
We are reliable and dependable, holding ourselves and each other responsible for our actions, performance and the results we achieve.
Integrity
We act with integrity at all times, addressing challenges honestly to achieve optimal outcomes.
2025
AT A GLANCE
total
revenue
full-time
employees
active
customers
(excluding sub-locations)
U.S. patents
international patents
issued or allowed
As of December 31, 2025
2025
Strengthening Arq’s core PAC business
In 2025, Arq further reinforced its core powdered activated carbon (“PAC”) business through continued average selling price improvement, strong customer retention, disciplined cost management, tighter accounting processes, and a more diversified mix of end markets and customers. Over the course of the year, PAC once again demonstrated that it is not simply a stabilized legacy business, but a durable and increasingly profitable platform that we believe is capable of supporting and growing the broader Company.
Highlights from our PAC business in 2025 include:
revenue growth
for the second consecutive year
million in revenue
PAC remains a strong, sustainable business stream with full vertical integration and continued optimization of product performance
Sustainability Amidst Growth
Our primary 2025 growth strategy focused on developing new technologies and products for PFAS remediation. At the forefront of this strategy was our granular activated carbon (GAC) products, which drove the expansion of our facilities at the Red River Plant.
As expected, this rapid growth created challenges for our sustainability efforts. In light of commissioning the Red River Plant GAC Facility expansion and initiating production of our GAC product line in 2025, we realized increases in our carbon footprint (including both Scope 1 & 2 emissions), energy consumption, water usage, and waste production.
Knowing that growth and expansion would intensify resource consumption, our 2025 business expansion led to a year-over-year increase in our carbon footprint. However, since the increases were an anticipated result of strategic growth and expansion, the Company did not see the year-over-year changes as a sustainability or business risk.
The year-over-year data provides Arq with valuable insights into reducing future risks to our business.
Instead, we used these impacts to better forecast carbon footprint and resource usage growth during product expansion. Furthermore, the year-over-year data provides Arq with valuable insights into reducing future risks to our business, such as how to mitigate better unnecessary delays, costs, and energy expenditures.
2025 proved to be a valuable year for Arq’s sustainability program through lessons learned about the impacts of business growth and expansion. Because we have made the strategic business decision to re-focus efforts on powdered activated carbon (PAC) production at our Red River Plant, 2026 will be an opportunity to establish a more comprehensive baseline for steady, consistent, normalized PAC production. This new baseline will provide the necessary foundation from which Arq can make valuable comparisons of year-over-year data and in turn consider establishing new sustainability targets and goals in coming years. By analyzing how our 2025 growth affected our sustainability goals, we can turn those impacts into improvement opportunities for our future PFAS technologies.
2025 Sustainability Highlights
2025 Greenhouse Gas (GHG) Emissions data
Scope 1
15,703.93
MT CO2e
Scope 2
3,590.23
MT CO2e
Scope 3
1,940.63*
MT CO2e
* scope 3 emissions are calculated for waste only
Strengthening
Supply-Chain
Operational Performance
At Arq, we continue to believe that operational excellence should not be compromised during periods of growth and expansion but strengthened over time with a long-term perspective lasting beyond such periods. To support this outlook, we undertook numerous efforts in 2025 to reinforce key operational relationships integral to Arq’s supply chain and strengthen operational performance to ensure continuous operations in both the short and long-term, which is essential to our customers. External and inward facing improvements included:
External and inward facing improvements included:
Identifying that a Supplier Code of Conduct is in the company’s best interest and a priority for logistical operations in 2026, which we expect to implement during 2026
Ongoing carrier contract revisions with Arq’s dedicated network of carriers and transportation partnerships to solidify long-term strategic relationships
Prioritizing reliable, consistent, on-time delivery of products
Implementing a Global Modern Slavery and Anti-Human Trafficking Policy
Adding a key strategic partner for internal transit of our coal feedstock
Key statistics regarding the fulfilment of our customers’ orders remained strong in 2025.
Highlights include:
Orders fulfilled:
Energy Management
Natural Gas: our Red River Facility utilizes natural gas as part of the heat activation step within our activated carbon furnaces. Additional uses are within our emission train for destruction of harmful air pollutants and for heating within administrative and operations buildings to maintain a safe working environment. As we constructed our GAC Facility, we utilized natural gas within certain process equipment for the heat treatment steps necessary to manufacture GAC and, due to original design flaws and constraints, as part of the off-gas emission system. It was the addition of a thermal oxidizer, necessary to prevent the emission of harmful contaminants, that was the main driver of the overall facility’s approximate 3x increase in natural gas usage.
Steam Generation: The Red River plant continued to capture excess heat generated by our processes to both create steam for activating carbon and generate electricity (please refer to our 2024 Annual Sustainability Report for details on Arq’s steam energy generation process). However, the excess heat capture and steam generation dropped significantly in 2025 due to the utilization of some of the superheated steam being redirected to the Char facility process equipment. Additionally, there was a reduction in steam production in the multi-hearth furnace used to activate GAC pellets, which led to less steam generation downstream.
The goal is to conserve water where possible, recirculate water where needed, and return clean, treated water back to natural sources where necessary
Rather than experiencing a change in usage amounts, we instead encountered a change in how water was being used within the new GAC Char Facility:
- Demineralized Water: used as cooling water for the product cooling screws and nitrogen compressor.
- Potable Water (Municipal): used for the eye washing stations throughout the plant, as well as bathrooms, breakrooms, and kitchen areas.
- Filtered Water: used primarily for makeup water, process water, cooling water, and the normal washdown water for water hoses throughout the plant.
Where the growth and expansion at the Red River plant did result in a significant incremental impact to our water systems was in the process runoff water. As designed, the Char Facility runoff fed into the legacy process water runoff system; but what was unforeseen was the heightened levels of finer particles – mostly coal fines and dust – being directed down the drain to the sumps from the expansion runoff. This resulted in a strain on our current filtration system and created the need for a change out in current filtration equipment sooner than expected.
Water Management
As an environmental technology company working to make lasting impacts on the treatment of air, soil, and water, we understand that our approach to water management starts with the very sources from which Arq draws its water resources. This means that even though Arq does not operate in areas of water scarcity or restricted water use, we still utilize the abundant natural water resources in our operations in a responsible, efficient, and cyclical manner. Our water management processes differ between our two primary operational sites, but the goals to conserve water where possible, recirculate water where needed, and return clean, treated water back to natural sources where necessary remain consistent at both sites.
Given the growth and expansion in 2025, we anticipated and expected an increase in water usage, primarily from our natural water source – the Red River – and additionally from the Coushatta municipal source – the Bayou Pierre Water System. However, through streamlined processes and efficiently engineered systems, we were able to mitigate this risk entirely and instead realized a small reduction in total overall usage of water at the plant from natural sources.
Red River Water Process Flow
*The above depicted water process flow diagram has been revised to more accurately show the water processes at the Red River plant with the addition of the Char Facility
Corbin Facility:
Water remained a critical component of processing at our Corbin facility in 2025. With the installation of the thickener (or clarifier) the anticipated result in 2025 was realized with a reduction in water withdrawal from the local basin and contribution to a reduction in water usage overall by approximately 50%.
Consistent with our approach at Red River, we continued to value our water resources at the Corbin facility to the highest extent possible as well. Water quality continued to be monitored closely in line with our existing KPDES Permit. In fact, the water discharged from our Corbin facility remained in full compliance throughout 2025 with water quality classified as exceptional. Our Biological Monitoring (WET Testing) indicated a net-zero impact on receiving streams. Given the nature of our processing at Corbin, chemical treatment of process water is not required. Rather, the water is diverted to a nearby pond for sediment removal prior to its journey downstream to the primary Point Source Discharge.
Corbin Facility 2025 Highlights
134M
gallons
Clean water returned to receiving stream, Lynn Camp Creek
75-80%
of water used
During operational periods was re-circulated
Toxic Emissions
Since 2012, Arq’s Red River Plant’s emissions have been governed by Title V (Part 70) Operating Permits issued by the Louisiana Department of Environmental Quality (LDEQ), most notably tracked under base Permit No. 2420-00027 through its successive revisions, alongside initial Prevention of Significant Deterioration (PSD) Permit No. PSD-LA-727. Arq is committed to complying with its LDEQ Permit and striving to reduce emissions even beyond permitted limits has also been a consideration of Arq’s environmental policy and program.
Arq’s emissions capturing operations have remained consistent and staying within permitted limits was a serious priority of Arq in 2025 during its growth and expansion at the Red River Plant. We control our toxic emissions with our afterburner, which destroys more than 95% of toxic emissions. All emissions are monitored via our CEMs system, and all emissions are reported annually in our emission inventories.
| Emissions Type | Total Emissions |
|---|---|
| NOx | 232.17 (t) |
| SOx | 102.64 (t) |
| VOCs | 1.88 (t) |
| PM | 1.71 (t) |
We control our toxic emissions with our afterburner, which destroys more than 95% of toxic emissions.
Hazardous Materials & Waste Management
The proper handling and disposal of hazardous materials is an important part of Arq’s overall strategy for waste management. Arq starts with a chemical review process before any new chemical is brought onto site. This allows for a hazard assessment to be completed on each new product. This process looks at waste streams generated using the chemicals, a review of chemical incompatibility, storage concerns and proper spill prevention processes are considered before new chemicals are approved.
We also utilize a strategy of replacement first, whenever a hazardous waste stream is identified, we seek a method to replace the chemicals that would generate a hazardous stream. When hazardous waste is not able to be engineered out of our process, Arq establishes a process to minimize the waste being generated. All waste streams have processes developed to track and document the handling, storage, and disposal of the waste. Arq recognizes that any waste stream that is mishandled can have negative effects on the environment, our people, and our communities.
2025
biodiversity
We greatly believe in the direct link between our sustainability efforts, our corporate responsibility, and environmental conscientiousness
Preserving and protecting the biodiversity of the communities and surrounding areas in which we operate continued to be a major commitment for Arq in 2025. Even amidst growth, we understand being a responsible steward of the environment where we source our feedstocks and operate our facilities ensures we remain a reputable and sustainable producer of activated carbon and a valued partner to our communities.
Five Forks
In 2025 we continued to utilize a contemporaneous reclaiming method for the land at Five Forks – concurrently reclaiming adjacent land next to active coal mining sites. As in years past, our operators used best-in-class processes for a number of reclamation activities:
Corbin
At our Corbin Facility we continued valuable preservation efforts to maintain the vast biodiversity in the area. Arq highly values the beautiful Kentucky environment in which our Corbin site operates, and we believe that the surrounding biodiversity provides an opportunity. Therefore, despite the growth operations and implementation of new processes during 2025, our Corbin site continued its biodiversity preservation efforts without interruption.
(see Arq’s 2024 Sustainability Report for additional detail of these ongoing activities)
Human Capital Management
Arq’s success hinges on the success of our people.
Our commitment to our employees’ growth and well-being is supported by our competitive benefits, engagement activities at each location, recognition programs that foster accountability and strengthen team cohesion, and corporate investment in personnel development and advancement. We believe human capital management is directly tied to employee engagement, community engagement, and employee health and safety – all of which drive performance and improve Arq.
Employee Engagement
We care about creating a positive, fun, and respectful community within Arq. To support employee engagement and foster employee relationships, each of Arq’s locations held a number of employee-focused events in 2025 such as:
- Chili Cook-off
- Holiday Pot-luck
- Gingerbread House Decorating contest
- Summer BBQ
- Fantasy Football League
- March Madness Brackets
Community Engagement
Arq remains committed to building strong, lasting relationships with the communities where we live and work. In 2025 we continued to organize volunteer opportunities to encourage employees to support local causes and give back in meaningful ways:
- Greenwood Village Christmas Toy Drive
- 9/11 Food Drive
- Community Blood Drive
Personnel Growth and Development
At Arq, it is paramount that our employees have opportunities to thrive and feel a deep sense of contribution to the company in their daily work. Therefore, in addition to role-specific training programs, Arq provides a wide range of skills-based and compliance training, featuring dozens of environmental courses on hazardous waste management, water treatment, and environmental awareness, as well as extensive safety training to help employees grow in their role and have a meaningful impact in their work.
In 2025, we continued to offer our three-part educational series – Continuing Carbon Education – designed to deepen employee understanding of our products, applications, and core technologies. The series – led by our Senior Director of Global Technical Services – included:
- CCE Level 1 = Activated Carbon Basics and Products
- CCE Level 2 = Markets and Quality Control
- CCE Level 3 = Handling and Safety of Activated Carbon (offered in 2024)
Arq provides a wide range of skills-based and compliance training, featuring dozens of environmental courses
Employee Health and Safety
“Safety is never compromised” remains a critical priority for Arq. As exemplified by the re-aligning of our core values in 2025, we are working to be the “safest activated carbon manufacturer.” The health and safety of our employees is fundamental in our ongoing success and our long-term sustainability.
| Incident Rates | Company-wide |
|---|---|
| Total recordable incident rate | 2.37 |
| Lost work-time incident rate (LTIR) | 0 |
| Employee fatality rate | 0 |
Governance
Board Composition & Diversity
members
directors are independent
male
female
Annual Compliance Training includes an annual review by and acknowledgment by the Board as well as an annual review and agreement by all employees
100% acknowledgment across the company
Key Corporate Policies in 2025:
- Insider Trading
- Whistleblower Protection Policy
- Anti-Bribery & Anti-Corruption Policy
- International Trade Compliance Policy
- Anti-Money Laundering Policy
Global Modern Slavery and Anti-Human Trafficking Policy
100% of Directors and Employees acknowledged receipt, review and understanding of Arq’s Key Corporate Policies in 2025
Looking Beyond
the Present
As an industry leading environmental technology company, Arq’s mission to improve the quality of the air we breathe, the water we drink, and the soil our children play on remains critically important.
As 2025 concluded and we move through 2026, Arq is laser focused on expanding our product portfolio of advanced activated carbons to address emerging contaminants – including PFAS – and micro-pollutant control. We continue to work with our customers and regulators to create high-grade PAC with the potential to serve as an effective solution for low-level PFAS remediation for water utilities.
As a dynamic company, we have moved with urgency, but also with discipline as we commenced a strategic optimization review in early 2026 relating to the challenges faced in our GAC facility, the results of which will have broad implications for the business. Throughout this period, the strengths of Arq – PAC, supply chain security and performance, reduced impact on water resources, and focus on biodiversity – continue to shine through. We have an obligation to manage as responsibly as possible the more than $500M dollars of assets in place at our multiple operating sites, which provide both the foundation and the potential for growth that will continue to be the basis for a profitable and sustainable business.
Neither our successes nor our ability to overcome challenges would be possible without our people. Arq continues to focus on our core value of Safety, and our culture of safety excellence continues to be reflected in our industry-leading safety record. Arq invests in the personal and professional development of our team, which continues to drive our core value of Excellence. Our people enable our mission, and we are excited about the opportunities ahead.
As 2025 concluded and we move through 2026, Arq is laser focused on expanding our product portfolio of advanced activated carbons to address emerging contaminants.
Appendices
SASB – SICS – Resource Transformation | Sustainability Disclosure Topics & Metrics
| Metric | Code | Data |
|---|---|---|
| Gross global Scope 1 emissions, percentage covered under emissions limiting regulations | RT-CH-110a.1 | Gross Scope 1: 15,703.93 MT CO₂-e Regulations Covered: 0 % |
| Discussion of long- and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets | RT-CH-110a.2 | The short-term plan (2026) is to focus on creating a baseline of the Company’s foundational PAC business and its Scope 1 emissions. Given the Company’s planned growth initiatives and strategies, the Company does not plan to implement any emission reduction targets in the medium- to long-term; however, the Company will evaluate implementing Scope 1 emission intensity metrics and potential intensity reduction goals once a solid baseline is established. |
| Metric | Code | Data |
|---|---|---|
| Air emissions of the following pollutants: (1) NOX (excluding N2O), (2) SOX, (3) volatile organic compounds (VOCs), and (4) hazardous air pollutants (HAPs) | RT-CH-120a.1 | (1) NOx: 232.17 t (2) SOx: 102.64 t (3) VOCs: 1.88 t (4) PM: 2.7 t |
| Metric | Code | Data |
|---|---|---|
| (1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable and (4) total self-generated energy | RT-CH-130a.1 | (1) Consumed: 61,729,387 kWh (2) Grid: 356,302 kWh (3) Grid Dependency: Currently dependent on grid contribution (4) Self-generated: 103,745,362 kWh |
| Metric | Code | Data |
|---|---|---|
| (1) Total water withdrawn, (2) total water consumed; percentage of each in regions with High or Extremely High Baseline Water Stress | RT-CH-140a.1 | (1) Withdrawn: 206,998,801 US gal (783,575.70 m³) (2) Consumed: 208,054,046.62 US gal Percentage in high-stress areas: 0% |
| Number of incidents of non-compliance associated with water quality permits, standards and regulations | RT-CH-140a.2 | 0 (zero) |
| Description of water management risks and discussion of strategies and practices to mitigate those risks | RT-CH-140a.3 | Arq’s most intense water usage productions exist at our Red River plant in Coushatta, Louisiana. The area is not a high-stressed water environment, and regulatory constraints are not a risk or concern for operations. Nonetheless, All the water from our steam generation process is condensed, treated, and reused to reduce our use of water from the local water basins. Stormwater is recycled through the same treatment process and is then added to our process water again reducing our use of water already in the local basins. These commitments have shown to have operational benefits in addition to environmental benefits. |
| Metric | Code | Data |
|---|---|---|
| (1) Amount of hazardous waste generated, (2) percentage recycled | RT-CH-150a.1 | (1) Generated: 1.55 t (2) Recycled: 0% |
| Discussion of engagement processes to manage risks and opportunities associated with community interests | RT-CH-210a.1 | The Company proactively engages with the community through a number of avenues, ranging from meetings with local first responders to discussions with local political leaders to participating in local events. By proactively engaging with our community, we keep lines of communication open and keep the community informed of any changes that may have broader impacts. |
| Metric | Code | Data |
|---|---|---|
| (1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) direct employees and (b) contract employees | RT-CH-320a.1 | 2.37 (TRIR) 0 / 0 |
| Description of efforts to assess, monitor, and reduce exposure of employees and contract workers to long-term (chronic) health risks | RT-CH-320a.2 | Arq is committed to minimizing chronic occupational health risks by conducting regular exposure assessments, monitoring workplace hazards, and implementing medical surveillance where appropriate. Through the application of the hierarchy of controls, employee training, and contractor safety requirements, Arq works to reduce potential long-term health impacts associated with workplace exposures. |
| Metric | Code | Data |
|---|---|---|
| Revenue from products designed for use-phase resource efficiency | RT-CH-410a.1 | $103,847,868 |
| (1) Percentage of products that contain GHS Category 1 and 2 Health and Environmental Hazardous Substances, (2) percentage of such products that have undergone a hazard assessment | RT-CH-410b.1 | 0 % While some of the additives may individually be considered health hazardous (or environmental), the chemical reaction bonding to our carbon changes them in such a way that they are no longer considered health hazardous (or environmental). For example, Phosphoric Acid and Sodium Bromide are classified as such separately, but bound to our carbon they chemically change and are a non-hazardous constituent. |
| Discussion of strategy to (1) manage chemicals of concern and (2) develop alternatives with reduced human or environmental impact | RT-CH-410b.2 | We proactively identify and manage chemicals of concern through our chemical review process, while continuously evaluating potential opportunities to reduce potential risks to employees, communities, and our environment. Further, if we identify chemicals of concern, we seek to identify and develop the of safer, more sustainable alternatives that maintain operational effectiveness while minimizing human health and environmental impacts. |
| Percentage of products by revenue that contain genetically modified organisms (GMOs) | RT-CH-410c.1 | 0% |
| Metric | Code | Data |
|---|---|---|
| Discussion of corporate positions related to government regulations or policy proposals that address environmental and social factors affecting the industry | RT-CH-530a.1 | Arq closely monitors issued and proposed regulations as they are introduced to determine the impact in the industry and whether Arq has specific expertise that may be able to assist the regulator in making a determination as to the potential regulatory scheme. In many cases, environmental regulations are seen as an opportunity for Arq and our technology. |
| Metric | Code | Data |
|---|---|---|
| Process Safety Incidents Count (PSIC), Process Safety Total Incident Rate (PSTIR), and Process Safety Incident Severity Rate (PSISR) | RT-CH-540a.1 | Not recorded in 2025 |
| Number of transport incidents | RT-CH-540a.2 | 0 (zero) |
| Metric | Code | Data |
|---|---|---|
| Production by reportable segment | RT-CH-000.A | 51,813.8654969 t |
SASB – SICS – Extractives & Minerals | Sustainability Disclosure Topics & Metrics
| Metric | Code | Data |
|---|---|---|
| Gross global Scope 1 emissions, percentage covered under emissions limiting regulations | EM-CO-110a.1 | Scope 1 Emissions: 15,703.93 MT CO₂-e Regulations Covered: 0% |
| Discussion of long- and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and performance analysis | EM-CO-110a.2 | The short-term plan (2026) is to focus on creating a baseline of the Company’s foundational PAC business and its Scope 1 emissions. Given the Company’s planned growth initiatives and strategies, the Company does not plan to implement any emission reduction targets in the medium- to long-term; however, the Company will evaluate implementing Scope 1 emission intensity metrics and potential intensity reduction goals once a solid baseline is established. |
| Metric | Code | Data |
|---|---|---|
| (1) Total water withdrawn, (2) total water consumed; percentage in regions with water stress | EM-CO-140a.1 | (1) Withdrawn: N/A (2) Details: Five Forks Mine does not tap into any nearby water sources for water, all the water we use comes from the sediment ponds on the mine site. The pond size depends on the size of the watershed that it is capturing water from. Per our surface mining permit, the ponds are designed to be able to handle water from the runoff volume of a 10-year, 24-hour storm event. Each pond has a discharge channel connecting to a nearby stream. No water is discharged unless it meets LPDES water permit requirements. In 2025, Five Forks Mine discharged approximately 183,397.8 thousand m³ from five sedimentation ponds. |
| Incidents of non-compliance associated with water permits | EM-CO-140a.2 | 0 |
| Metric | Code | Data |
|---|---|---|
| Total weight of non-mineral waste generated | EM-CO-150a.2 | 47.19 t |
| Total weight of hazardous waste generated / recycled | EM-CO-150a.5 / 6 | 0.01 t generated / 0 t recycled |
| Significant incidents associated with hazardous waste | EM-CO-150a.7 | 0 |
| Description of waste management policies and procedures | EM-CO-150a.8 | Five Forks Mine utilizes Crystal Clean out of Shreveport, LA, for most waste disposal. Crystal Clean takes aerosol cans that have been punctured and drained—the metal is recycled and the aerosol waste is used in fuel blending. Light bulbs are recycled. Metal from large lead acid batteries is recycled, and remaining materials are destroyed. Used oil is shipped to Crystal Clean's re-refinery to make lube stock. Used oil filters are drained and recycled. Solvent and sludge are treated at Crystal Clean's water treatment facility. Absorbent materials undergo non-hazardous incineration with heat recovery. Used tires are stored on site and taken by LDEQ for recycling. Used grease is collected, stored, and reused on site. |
| Metric | Code | Data |
|---|---|---|
| Environmental management policies and practices for active sites | EM-CO-160a.1 | Five Forks Mine focuses on minimizing environmental impacts while maintaining regulatory compliance and operational efficiency. Key practices include controlling dust with water trucks, planting vegetation once red-grade is achieved in reclamation, managing surface/groundwater with drainage controls and water quality monitoring, implementing updated SWPPP and SPCC plans, and keeping land reclamation synchronized as close to the active mining pit as possible. |
| Acid rock drainage: (1) predicted, (2) mitigated, (3) remediated | EM-CO-160a.2 | 0% / 0% / 0% |
| Reserves in/near protected conservation or endangered species habitat | EM-CO-160a.3 | 0% (Proved) / 0% (Probable) |
| Metric | Code | Data |
|---|---|---|
| Percentage of reserves in or near indigenous land | EM-CO-210a.1 | 0% (Proved) / 0% (Probable) |
| Discussion of engagement processes to manage risks and opportunities associated with community interests | EM-CO-210b.1 | The primary risks associated with our operations tend to be land use related. As such, we reach out to potentially affected landowners to engage well in advance of any potential impacts to their land or any use thereof. This has included tours of our facility to help them understand our operations, and the steps we take to minimize potential impacts on their adjacent properties. |
| Number and duration of nontechnical delays | EM-CO-210b.2 | 0 delays / 0 days |
| Metric | Code | Data |
|---|---|---|
| Percentage of active workforce under collective agreements | EM-CO-310a.1 | 0 % |
| Number and duration of strikes and lockouts | EM-CO-310a.2 | 0 Strikes / 0 days |
| All-incidence rate, fatality rate, and near miss frequency rate (NMFR) | EM-CO-320a.1 | 0 / 0 / 0 |
| Discussion of safety risk management and continuous training | EM-CO-320a.2 | Risks are mitigated by providing active workforce continuous training on safety risk factors and potential hazards in and around mining operations. |
| Metric | Code | Data |
|---|---|---|
| Discussion of how price and demand for coal or climate regulation influence capital expenditure strategy | EM-CO-420a.3 | The Company provides environmental solutions to a number of markets and industries. One of the key markets the Company provides its environmental products to are coal-fired power plants, and the Company for a number of reasons, including potential climate regulations, has been and continues as part of its long-term market and product strategy to focus on expanding its market presence and product portfolio in other markets. With respect to the Company’s use of coal as a feedstock, we don’t believe that current or proposed climate regulation impact (or would impact) use in the manufacture of activated carbon. |
| Metric | Code | Data |
|---|---|---|
| Production of thermal coal | EM-CO-000.A | 0.286 Mt |
| Production of metallurgical coal | EM-CO-000.B | 0 Mt |
Forward-Looking Statements
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended, which provides a “safe harbor” for such statements in certain circumstances. When used in this report, the words “anticipates,” “may,” “believes,” “expects,” “intends,” “plans,” “estimates,” “predicts,” the negative expressions of such words, or similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward- looking statements. All statements that address activities, events or developments that Arq, Inc. (“we,” “us,” “our,” “Arq” or the “Company”) intends, expects or believes may occur in the future are forward-looking statements. These forward-looking statements include, but are not limited to, statements or expectations regarding: our sustainability strategy going forward, as well as the associated risks and opportunities associated therewith; the success of our core values at mitigating emerging risks, including in connection with new processes and equipment, the development of products, and exploration of new markets; the strength and continuing optimization of our PAC business and its ability to support our growth; our ability to utilize sustainability data to mitigate risks; our ability to establish a new sustainability baseline during 2026 and our use of this data in the future; our focus on expanding our product portfolio, including to address PFAS and micropollutant control; and the future of our GAC Facility and the anticipated timing, results, and conclusions of our overall business optimization review and the actions we may take upon the completion of such review. These forward-looking statements involve risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, the timing and scope of new and pending regulations and any legal challenges to or extensions of compliance dates of them; the U.S. government’s failure to promulgate new regulations or enforce existing regulations that benefit our business; changes in laws and regulations, accounting rules, prices, economic conditions and market demand; availability, cost of and demand for alternative energy sources and other technologies and their impact on coal-fired power generation in the U.S.; technical, start up and operational difficulties; competition within the industries in which the Company operates; risks associated with our debt financing; our inability to effectively and efficiently commercialize new products, including our GAC products; our inability to effectively identify solutions to the design flaws in GAC Facility at our Red River Plant or execute on any remedial measures or modifications thereto; disruptions at any of our facilities, including by natural disasters or extreme weather; risks related to our information technology systems, including the risk of cyberattacks on our networks; failure to protect our intellectual property from infringement or claims that we have infringed on the intellectual property of others; our inability to obtain future financing or financing on terms that are favorable to us; our inability to ramp up our operations to effectively address recent and expected growth in our business; loss of key personnel; ongoing effects of the inflation and macroeconomic uncertainty, including from increased domestic and international tariffs and armed conflicts around the world, and such uncertainty’s effect on market demand and input costs; availability of materials and equipment for our business; intellectual property infringement claims from third parties; the impacts of any current or future write-downs or write-offs, restructuring, impairment or other charges; our failure to realize the anticipated benefits of acquisitions, joint ventures, and divestitures we may engage in; pending litigation; factors relating to our business strategy, goals and expectations, including our ability to execute on our GAC business plan; our ability to maintain relationships with customers, suppliers and others with whom the Company does business and meet supply requirements; our results of operations and business generally; risks related to diverting management’s attention from our ongoing business operations; costs related to the ongoing manufacturing of our products, including costs necessary to resume GAC production; opportunities for additional sales of our AC products and end-market diversification, including for our Corbin Wetcake; the rate of coal-fired power generation in the U.S.; the timing and cost of any future capital expenditures and the resultant impact to our liquidity and cash flows; and the other risk factors described in our filings with the SEC, including those described in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025. You are cautioned not to place undue reliance on the forward-looking statements and to consult filings we have made and will make with the SEC for additional discussion concerning risks and uncertainties that may apply to our business and the ownership of our securities. In addition to causing our actual results to differ, the factors listed above may cause our intentions to change from those statements of intention set forth in this report. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise. The forward-looking statements speak only as to the date of this report, and we disclaim any duty to update such statements unless required by law.