Corporate Sustainability

At DNOW, we seek to drive sustainability throughout our business to deliver long-term, profitable growth to our shareholders, while also helping to fulfill the needs of our customers as we develop innovative and more sustainable ways to operate. We endeavor to create positive change globally and in our local communities by minimizing waste and pollution, supporting organizations that possess aligned sustainability goals and maintaining fair and honest business policies. We are committed to working to minimize our impact on the environment through energy management conservation initiatives, air quality improvements, responsible water conservation and recycling, where applicable. We also strive to invest in our employees, our communities and the industries in which we operate.

Message from our President & CEO

David_Cherechinsky

David Cherechinsky
President & Chief Executive Officer (CEO)

The energy and industrial sectors have recently gone through significant change. I would like to thank our employees for their hard work, dedication and agility during these truly unprecedented times. I am proud our company has risen to the occasion to continue providing uninterrupted support for our customers. We are building a resilient model to drive long-term growth and fortify our upstream energy position while diversifying, expanding and investing in the midstream, downstream and industrial end markets. We are taking decisive measures by focusing on structural transformation and efficiencies and investing in digital disruption marketed under our digital tools platform DigitalNOW® to enrich the customer experience.

We have taken additional steps to identify the risks and opportunities of the sustainability issues most relevant to our business and the expectations of our key stakeholders. This work has guided us to define a clear and focused role in how we can reduce our environmental impact and how our products can better serve the sustainability goals of our customers. We undertook a detailed materiality analysis, assessed our strategy, set goals and developed a detailed road map to keep us moving forward, driving long-term value for our shareholders, our customers and our employees.

Our focus is on those environmental, social and governance (ESG”) metrics that have a significant impact to our core business strategy and drive for innovative ways for us to increase engagement of our products and services, while also contributing to the environmental and safety objectives of our customers. As we bring world-class supply chain management and other solutions to our customers, we will continue to identify products and services that help them achieve their sustainability targets.

This inaugural report, Unlocking Sustainable Value, represents our commitment towards increased transparency and a wider focus on sustainability to create a positive impact and a more sustainable future. It allows us to share our key performance data with our stakeholders as an integral part of our business strategy and is an important step in DistributionNOW’s sustainability reporting journey. We are excited about the road ahead and we embrace with enthusiasm and optimism the opportunity to unlock the change needed for a better future. We are proud to present our 2019 Sustainability Report and look forward to sharing our progress in the coming year.

Our Strategy to Unlock Sustainable Value

At DNOW, we know the management of environmental, social and governance (ESG) factors contributes to long-term financial stability, as they have the potential to affect our markets, profits, assets, liabilities and cost of capital. We have created a strategy to unlock value by marrying our geographical footprint, highly skilled people, strategic inventory positioning, relationships with key domestic and import manufacturers and product expertise with disruptive digital innovation. This powerful combination can drive performance, growth and sustainable margins. We believe this strategy is a solid foundation for long-term financial and operational results.

ESG-our-strategy-to-unlock-sustainable-value

Our Sustainability Reporting Framework

In line with our sustainability strategy, we have identified a set of focus areas that are relevant to our business that guide our ESG initiatives and decisionmaking throughout our global operations. These focus areas are aligned with the general approach and guidance laid out by the Task Force on Financial Climate-related Disclosures (TCFD) and the topics recommended by the Sustainability Accounting Standards Board (SASB) Sustainable Industry Classification System® (SICS) for the Multiline Specialty Retailers & Distributors and the Oil & Gas Services industries.

Opportunities & Strategies

Enabling Customer Sustainability

Serving Renewable Energy Markets

Focusing on DNOW Supply Chain Sustainability

Governance

We are committed to and recognize the importance of good corporate governance and high ethical standards. DistributionNOW’s Code of Business Conduct and Ethical Standards enhances our relationships with key stakeholders, including our people, customers, suppliers, other business partners, shareholders and local communities around the world.

Corporate Governance Oversight

Strong corporate governance includes being responsive to the shareholders and other stakeholders of our company. We are accessible and willing to engage with our shareholders to discuss operational, financial, governance, environmental, safety and social issues. Maintaining shareholder trust and goodwill through our policies and performance and adhering to our values remain the primary objectives of our company.

DNOW’s Board of Directors and management recognize their responsibility and are committed to high standards of ethical conduct and corporate governance. Our Board’s core responsibilities are to foster our company’s long-term success, to oversee the business, supervise management and to act honestly, in good faith and in the best interests of our shareholders. In addition, our Board has oversight of certain categories of risk management.

In carrying out this mandate, our Board of Directors has appointed the following committees to assist in fulfilling its oversight responsibilities: the Audit Committee, the Nominating/Corporate Governance Committee and the Compensation Committee. The Nominating/Corporate Governance Committee assists our Board in fulfilling its oversight responsibilities of our efforts on ESG matters. All these committees play significant roles in carrying out the oversight functions in their areas of expertise and report back to our Board on a regular basis.

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Board Oversight of Risk Management

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With the oversight of our Board of Directors, management has a system in place designed to help monitor and assess various types of business risks and opportunities. We identify and evaluate risks and opportunities based on both actual and potential likelihood and significance.

We continuously improve and adjust our risk management system to address actual and potential risks and opportunities in the short-, medium- and long-term, and various levels of severity and frequency.

ESG Committee

Proper and effective management of ESG matters is important to our success. Our Board of Directors understands the importance of proper management of ESG and has tasked our Nominating/Corporate Governance Committee with assisting our Board in its oversight of our company’s efforts on ESG matters.

As mentioned above, DNOW’s risk management function includes focus on health, safety, environmental and security risks. Management formed an ESG Committee in 2019 to oversee the identification, measurement and disclosure of sustainability performance data most relevant to our operations. With the oversight of the Nominating/Corporate Governance Committee of our Board of Directors, the committee ensures that our relevant sustainability metrics and disclosures align with our strategic plan and that the results are communicated to stakeholders.

This committee is comprised of representatives from various departments across our company and is overseen by the following members of the Executive management team: Chief Executive Officer, Chief Financial Officer, Vice President - Investor Relations, Chief Administrative and Information Officer, Senior Vice President - Operations and General Counsel. Meeting at least quarterly, this group facilitates collaboration across divisions and departments to increase understanding of consistent issues. Once issues are identified, the ESG Committee leads the effort in ensuring opportunities can be exploited or risks can be minimized and in determining how performance will be monitored.

ESG-Committee

Management of the Legal & Regulatory Environment

Our customers are being impacted by the shift towards a low carbon energy transition economy. This has the potential to impact our business from many directions, including the demand to diversify the energy supply to renewable energy and increased reliance on natural gas. Our business is also affected by changes in public policy and by the environmental, health and safety laws of the federal, state, local and foreign jurisdictions in which we and our customers operate. These laws, together with regulations and permitting requirements, influence the products and solutions our customers demand.

Changes in the legal and regulatory environment also yield opportunity for DNOW to seek new markets emerging from regulation or legislation applicable to our current customers around topics such as emissions reduction, air quality, fuels management, water management, chemicals management, ecological impact management, biodiversity and safety. In addition, rules and regulations to accelerate a low carbon energy transition may represent opportunities to serve new and existing customers.

The legal and regulatory landscape is ever changing; there is increased focus on greenhouse gases and regulations around emissions standards. While it is impossible to accurately predict the effect that changes in laws and regulations, or their interpretation or enforcement, may have on us, we approach business opportunities and risks in a highly disciplined manner. Our Board and management, in tandem with our Internal Audit department, Legal department, Compliance department, Finance/Accounting department and Information Technology department, stay abreast of the evolving legal and regulatory landscape.

Risks (including financial, market, political, compliance, operational, cybersecurity and reputational, among others) that inherently may affect our business are evaluated and addressed through strategic planning by various stakeholders within the organization with the chief aim of avoiding adverse impacts to our strategic objectives and remaining competitive in our industry and markets.

We acknowledge that environmental and social factors present market and reputational risks, including those related to climate change. The increasing attention to climate change has negatively impacted the reputation of the oil and gas industry because the industry is seen as a contributor to GHG. However, the industry is a significant provider of affordable energy to communities and individuals. As a distributor to the energy industry, we provide products that safeguard the environment from unintended leaks and spills of hydrocarbons. We are also capable of distributing a diverse product supply to our customers and other industries as the oil and gas industry evolves. Please refer to the risk factors included in our 2019 Form 10-K.

DNOW’s Board and management remain committed to actively monitoring developments within the legal and regulatory environment and stand ready to respond to risks and opportunities resulting from enacted changes to laws and regulations. Our social and environmental initiatives and results are discussed in subsequent sections of this report.

Business Ethics & Payments Transparency

DNOW is committed to and recognizes the importance of high ethical standards. Our Code of Business Conduct and Ethical Standards enhances our relationships with key stakeholders, including our people, customers, suppliers, other business partners, shareholders and local communities around the world.

We have incorporated the following Codes of Conduct and Ethics on our website to provide ways for investors to understand the foundation of our corporate governance:

  • Governance Hotline
  • The U.S. Export & Economic Sanctions Policy
  • Policy on Insider Trading
  • Code of Conduct
  • Code of Conduct for Directors and Officers
  • Anti-Corruption Anti-Bribery Policy
  • Code of Ethics for Senior Financial Officers
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Board Composition

Although we do not have a formal diversity policy in place for the director nomination process, our Board recognizes that diverse candidates with appropriate and relevant skills and experience contribute to the depth and diversity of perspective in the boardroom. An important factor in our Nominating/Corporate Governance Committee’s consideration and assessment of a director candidate is the diversity of background, viewpoints, professional experience, education, gender, age and culture – including nationality, race or ethnic background.

Governance Highlights

  • Majority voting to elect board members
  • Annual say on pay voting
  • 1 of 8 Directors female
  • Independent Chair of the Board
  • Independent committee chairs
  • Clawback policy to recover executive compensation
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Social

We strive to invest in our employees, our communities and the industries in which we operate. We engage and support many organizations and groups in the communities where we operate globally.

Response to COVID

The COVID-19 pandemic has adversely affected the global economy, disrupted the global supply chain and created significant volatility in the financial markets. In addition, the pandemic has resulted in travel restrictions, business closures and other restrictions on movement in many communities. As an essential distributor, we are committed to serving our customers without interruption during these unprecedented times. The safety of our employees, their families, our customers and our communities is our paramount concern. Our COVID-19 response team monitors updates and guidance issued by the Centers for Disease Control and the World Health Organization and maintains regular communication with DNOW location managers in order to understand local COVID-19 directives and mandates. Together with location managers, the COVID-19 response team works to coordinate, implement and continuously communicate best practice safety policies and guidelines to employees worldwide.

We have implemented remote work solutions (for those employees who are able) to minimize the number of employees at locations during work hours, leveraging existing technology to increase reliance on video and teleconferencing for connecting co-workers, customers and vendors. At DNOW locations, we reduce exposure to COVID-19 by taking measures to limit third-party access and by providing masks, signage and disinfecting cleaners as well as education to our employees and any vendors or customers that may have cause to come on site.

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3D-Printed Essential PPE


Recognizing we had the capability to utilize our in-house 3D printers to help fill vital requests for personal protective equipment (PPE), DNOW joined the Wyoming Technology Corona Virus Coalition (WTCC) in April 2020. Our Power Service division was part of the group supplying 3D-printed face masks and shields to medical facilities around the state.

120,000 Hand Sanitizers


We helped Phillips66 protect their employees working at refineries and plants by supplying approximately 115,000 250 milliliter (mL) units and 5,000 1.5 mL units of hand sanitizer with pumps.

Workforce Health & Safety

At DNOW, safety is the center of our actions. Simply put, we act with the highest priority on health and safety in our workplace and in our communities. Our safety culture is driven through our health, safety and environment (HSE) management system (MS) which consists of our HSE Policy Statement, HSE guiding principles, corporate policies and procedures and our business level HSE policies and procedures.

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Relevant Workforce Health & Safety Metrics

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Our TRIR rates for the years 2017 through 2019 compare favorably to the U.S. Bureau of Labor Statistics (BLS) for Industrial Machinery and Equipment Merchant Wholesalers (NAICS 423830). The industry average rate was 2.3 for 2017 and 2.5 for 2018 (rates for 2019 have not been published as of the date of this ESG report).

Employee Engagement & Development

At DNOW, we place a strong emphasis on employee growth and development and provide opportunities for valued contribution and innovation. We know that every person on the DNOW team plays a part in delivering excellence to our customers and in helping us execute on our commitment to be the industry’s preferred supplier. In order to deliver on our commitment, we provide our employees with opportunities for growth through a variety of training and development programs designed to help them grow professionally and advance in their careers.

Training

The skills, knowledge and capabilities of our people are central to our success. We have developed solid training programs throughout various levels of our organization to ensure our employees grow personally and professionally. Workday Learning, our online learning platform, contains all our e-learning trainings and resources, as well as training transcripts for all employees.

Development Programs

DNOW recognizes that the advancement and empowerment of our workforce drives a better quality of work and life for our employees, ultimately resulting in the delivery of exceptional service to our customers. As such, we have designed a range of development programs focused on helping our employees reach their career goals.

Recognizing Employees

Celebration of individual achievements and contributions is an important part of our culture. Our Customer Priority 1 (CP1) program encourages customers, peers and leaders to recognize DNOW employees, customers or vendors who exemplify DNOW’s commitment to customer service. Nominees are awarded a CP1 Brick to showcase their commitment to building a stellar customer service culture “one brick at a time.” In 2019, 237 bricks were awarded to employees who exemplify CP1.

Workforce Diversity & Inclusion

DNOW is committed to advancing an inclusive environment where diversity is appreciated and encouraged, and everyone has a sense of belonging throughout our organization. We recognize the opportunity to drive diversity in our workforce through talent acquisition and retention because we know that one of our greatest strengths is the diversity of our team. We recognize that having a team with a broad range of experience, cultural characteristics and varying perspectives is what fortifies our brand. We believe in advocating for diversity within our workforce by employing men and women of varying cultures, nationalities and backgrounds to work together to achieve a common goal.

To find the best employees, we must have a diverse talent pipeline. We have expanded recruiting efforts at colleges with diverse student bodies so we can reach a broader pool of candidates. We create a culture where all employees can strive to be their best, to achieve company goals and deliver superior service to our customers.

It is our company-wide policy to support diversity outside our organization and within our supplier network. The strengthening of minority- and women-owned businesses contributes to the overall economic growth of DNOW and the expansion of our markets. We seek to assist in the development of minority- and women-owned businesses to enable them to qualify as a supplier of quality products and services to DNOW.

We have shared the diversity data for our U.S. workforce on this page, including race, ethnicity and gender. We continue to focus our efforts on developing programs and commitments to help us foster a diverse and inclusive workforce and culture. We will also continue our commitment to research the best ways to drive change and create an environment for the success of all employees around the globe.

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Community Involvement

DNOW seeks to build strong relationships with our neighbors and to make positive and tangible contributions to the communities where we operate. Our company and our employees regularly support a variety of organizations through the donation of time and talent, as well as through financial contributions, to cultivate strong connections to our communities while also strengthening coworker relationships.

Houston area employees donated over 650 hours of their time and talent through participation in the annual charity golf tournament, as well as a variety of other programs supporting the local Houston community.

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In addition to the charitable efforts of the corporate office, DNOW’s Calgary head office formalized its volunteer efforts through the DNOW Lights program that aims to focus on meaningful contributions to charitable organizations that support the basic needs of food, shelter and wellness throughout the Calgary operating area. Calgary area employees donated nearly 930 hours of their time and talent during 2019 to the following organizations:

  • Teepee Creek Stampede
  • Airdrie Alberta Winter Games Golf Tournament
  • Edson Charity Ball Tournament (supporting Edson Food Bank, Edson Animal Rescue Society, Edson & District Victim Services)

Data Security

At DNOW, we recognize the performance of information systems is critical to the successful operation of our business. We depend on our information management systems to process orders, track credit risk, manage inventory and monitor accounts receivable collections. Our information systems also allow us to efficiently purchase products from our vendors and ship products to our customers on a timely basis, maintain cost effective operations and provide superior service to our customers.

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Environmental

We are committed to working to minimize our impact on the environment through energy management conservation initiatives, air quality improvements, responsible water conservation and recycling, where applicable.

DNOW is committed to being a responsible steward of the environment.

We recognize that climate change is a critical issue and part of the management of our risks and opportunities. Therefore, we categorize our climate change risks into three categories:

Transitional Risks

To mitigate our transitional risks, we bring products to the market that ultimately produce efficiencies for our customers and reduce total environmental impact. We are proud that our products and services help customers meet their sustainability objectives.

Physical Risks

To mitigate our climate-change physical risks, DNOW can assist in reducing emissions of greenhouse gases in our operations by creating a more efficient supply chain, which can help reduce the carbon footprint of deliveries to our distribution centers, branches and, ultimately, to our customers.

Regulatory Risks

As a distributor to the energy industry, we provide products that safeguard the environment from unintended leaks and spills of hydrocarbons. We are also capable of distributing a diverse product supply to our customers and other industries as the oil and gas industry evolves.

Opportunities for Enabling Customer Sustainability

Helping Companies Minimize Environmental Impact

We help companies minimize their environmental impact through the efficient and sustainable distribution of products that contain and control the movement of gases and fluids. We sell products that are designed by manufacturers to prevent and minimize leaks of hydrocarbons. We also offer product lines that further aid in the mitigation of environmental impact, such as domestically produced goods; low emission rated valves (meeting API 622/624 standards); steel piping products produced from recycled scrap; glass reinforced epoxy (GRE) piping systems; vapor recovery units that capture volatile organic compounds (VOCs) in an effort to limit and reduce emissions to the atmosphere; produced water transfer and water injection packages; and pipe produced in sustainable ways through the use of wind power, recycled water and wood pellet inputs.

In the UK, one of our customers who has targeted reducing single-use plastic (SUP) had a client that required no SUP. In 2019, we worked with the customer to ensure the supply chain met all specifications and designed protective soft cases for the protective eyewear manufactured with no SUP included in the packaging. In 2019, 2,700 pairs were manufactured and distributed, and we continue to manufacture to this specification, contributing to the reduction of SUP.

DNOW Environmental Management Products

Product or Service Environmental Benefit
Pump and compressor energy audits Increases energy efficiency and reduces emissions
Vapor Recovery Units (VRU) Captures VOCs and reduces GHG emissions
Microturbines Uses wellhead gas for electricity
Instrument air skids Uses instrument air instead of wellhead gas to reduce VOCs
Sealless charge pumps on lease automatic custody transfer (LACT) units Reduces possible leak points, spills, etc.
Containment systems Reduces possible leaks and captures contaminants
Solar chemical and glycol pumps Uses solar power instead of electricity or wellhead gas
Gas recovery pumps Recaptures wellhead gas and eliminates VOCs

Helping Companies Address Greenhouse Gases

Our energy customers are investing in technology and projects that seek to reduce greenhouse gases. This includes reducing methane emissions, reducing flaring of natural gas and investing in development projects that seek to capture CO2 from the atmosphere, store it and potentially consume it as a feedstock for synthetic fuels. Products we offer to this growing end-market include pipe, valves, fittings, flanges, electrical, personal protective equipment, pump packages and rotating equipment and fabricated process and production equipment. We are proud to supply products that will enable our customers to solve environmental challenges.

Vapor-Recovery-Unit

Helping Companies Manage Water Use

We also provide products that customers need for sustainable water management processes. We help exploration, production and midstream customers use fresh and produced water efficiently, including maximizing water that can be responsibly reused in operations. Our product lines can help clean, transfer, dispose of or reuse water brought to or produced in the field.

DNOW Water Management Products

Product or Service Environmental Benefit
Separators Efficiently separates produced water from oil and gas streams for future use or disposal in an environmentally responsible manner
Water Transfer Transfers stored produced water for processing, reuse or disposal in an environmentally responsible manner
Salt Water Disposal (SWD) Disposes of produced water underground where it originated or via connected reservoir
Rental Pumps Provides rental pumps that move surface water for a variety of needs
Filtration Vessels Cleans fresh or produced water for disposal or reuse
Process Pumps Used in a variety of services to clean, reuse, transfer or inject
Leak Detection Provided in many ways to keep from loss of containment of produced water or fresh water for proper use or treatment
Sealing Technologies Used on a variety of rotating equipment to keep produced or fresh water from losing containment

Opportunities Serving Renewable Energy Markets

We have a strong record serving customers throughout the energy value chain. In addressing our climate change transition risks, we are developing a strategy to expand our preferred supplier status to companies within the rapidly growing renewable energy industry. Our strength in sourcing the highest quality products from thousands of suppliers and maintaining a global network of locations provides a significant base from which we can expand to serve the renewable energy market.

We currently provide products into global renewable end-markets such as biofuels, biomass, wind, geothermal and hydrogen. Products sold into this end-market include electrical, PPE, lubricants, pipe, valves, fittings, flanges, pump packages and rotating equipment.

For instance, in our Canada segment, we provide vendor managed inventory (VMI) services to a customer that manufactures biofuels and renewable chemical products from non-recyclable waste.

Our International segment supports offshore wind farm development supplying key product lines during the fabrication phase. Once an offshore wind farm field has been installed, we continue our support with key product offerings for the technicians to carry out their work safely and efficiently and to make sure they have the correct tools for the correct job.

PPE and MRO for a 50-man team


The Humber Estuary Wind Farm, off the Yorkshire coast, will have 73 wind turbines when fully operational. DNOW supplied personal protective equipment (PPE) and maintenance, repairs and operations (MRO) supplies for the 50-man team at Ecosse Subsea Systems conducting the installation of the offshore cables. This included essential tools and industrial consumables, workwear, life jackets, marine survival suits and other PPE.

Supplying PPE to meet offshore conditions


Statkraft operates the 88 turbine Sheringham Shoal Offshore Wind Farm (jointly owned with Statoil). Statkraft required a selection of PPE to meet the offshore conditions. Working from these requirements and prior knowledge of safety standards for offshore wind farms, DNOW supplied Statkraft with offshore workwear, safety footwear, Working at Height PPE and equipment and other safety consumables.

DNOW Supply Chain Sustainability

DNOW is committed to reducing the environmental impact of the shipping and packaging originating from our distribution and fulfillment centers. Our four distribution centers receive wooden pallets of product packed in wooden crates or cardboard boxes every day. While strategies employed to reduce packaging waste at our distribution centers are unique to each location and depend on recycling and waste hauling services available locally, we all share the same goal of actively minimizing packaging waste through programs to recycle and/or reuse cardboard, plastic, metal and wood used in packaging. Our efforts also focus on compacting waste through use of machinery such as a “pre-crusher” in order to reduce the environmental impact and cost of hauling away waste for recycling or disposal.

DNOW is certified to ISO 14001 in the UK and in Perth, Australia (DNOW MacLean Electrical) and is working towards certification in Norway and the Netherlands. ISO 14001 is the international standard for designing and implementing an environmental management system developed by the International Organization for Standardization (ISO). The certification is significant in that it demonstrates our commitment to managing our environmental responsibilities in a systematic manner and reflects our emphasis on adopting environmental best working practices.

DNOW Environmental Performance

Our global business includes a network of strategic locations close to our customers’ operations. Our distribution and fulfillment centers ensure our customers get products, service and support efficiently.

To mitigate our climate-change physical risks, DNOW can assist in reducing emissions of greenhouse gases in our operations by creating a more efficient supply chain. An efficient supply chain can help reduce the carbon footprint of deliveries to our distribution centers and branches and ultimately, to our customers. The use of our large centralized and regional distribution centers allows us to aggregate products across multiple suppliers and customers, which, in turn, prevents each customer from separately creating duplicative supply chains that require fuel for deliveries and resources to manage.

DNOW-environmental-performance

As a distributor, we perform minimal manufacturing operations. Our energy inputs are primarily electricity for lighting, heating and office and warehouse equipment, natural gas for heating and gasoline for company sales and delivery vehicles. We strive to make our operations more efficient, and in turn, try to work to reduce use of these resources and resulting emissions.

Emissions Reduction Services & Fuels Management

Fuel Consumption
Total fuel consumed in on-road equipment and vehicles 441,477 GJ
Percentage of fuel used in on-road equipment and vehicles 100%
Percentage renewable fuel 0%

DNOW’s fuel consumption is comprised of all fuel consumed by vehicles, trucks and other on-road equipment used in our distribution operations. We collect data based on fuel type and vehicle type. Gigajoules (GJ) is calculated based on fuel type.

Energy Management in Retail & Distribution

Energy Consumption
Total energy consumed 252,200 GJ
Percent grid electricity 35%
Percentage renewable energy -

DNOW’s energy consumption data is derived from electric and gas utility bills from each location. All locations source their own electric providers, which have their own generation sources. Therefore, electric generation source is not available in the aggregate, and is unknown for 2019. All U.S., Canada and International facilities, including warehouses and distribution centers, track their consumption of electricity and natural gas usage for heating. The energy consumed in Gigajoules (GJ) is calculated based on fuel source.

2019 ESG Report

The information included in this report has been subjected to DNOW’s policies surrounding the disclosure of financial and non-financial data. The financial information included in this report was sourced from our Annual Report as of December 31, 2019. This financial information and all non-financial data included in this report was not subject to a thirdparty audit verification process.

Forward-Looking Statements

Certain information contained in this Sustainability Report may constitute forward-looking statements within the meaning of applicable securities laws, including, but not limited to, statements regarding our plans to: move forward with identified climate change opportunities, foster programs regarding diversity and inclusion and plans to seek opportunities to further integrate sustainability factors into investment decisions. Readers are cautioned not to place undue reliance on forward-looking statements as they are subject to a number of assumptions and known and unknown risks and uncertainties that may cause the actual results, performance or achievements of DNOW to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained herein are made as of the date of this document. We also describe risks and uncertainties in our reports filed with the SEC, including our Annual Report on Form 10-K for the year-ended December 31, 2019 (under the headings “Risk Factors” and “Information Regarding Forward-Looking Statements” and elsewhere) and our subsequent reports, which are available through the SEC’s EDGAR system at www.sec.gov, and on our website at www.dnow.com. DNOW assumes no obligation to update or otherwise revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

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