DNOW Environmental Impact | Sustainability Report

Our goal is to assume a vital position and seamlessly integrate within our customers’ value chain while prioritizing our focus on environmental responsibility. We are actively working on our energy management, conservation initiatives, responsible water usage and recycling whenever applicable to reduce our operational footprint. This commitment is firmly established in our Environmental Policy Statement.

We prioritize addressing our customers’ unique energy evolution demands and risks while maximizing value in emerging markets. Our customers face increasing demands to minimize their environmental impact and rely on us for tailored products and process solutions that harmonize with their environmental initiatives and sustainability goals. This includes offering products and services that aid in curtailing environmental footprint, mitigating GHG emissions and fostering sustainable waste and water management practices.

EcoVapor: Enabling a Pathway to Net-Zero Emissions

EcoVapor, a DNOW Company, is dedicated to helping vital industries improve their environmental and financial sustainability with innovative technology. EcoVapor solutions help eliminate routine flaring, minimize emissions and purify natural gas streams to maximize the productivity of oil and gas facilities, midstream and saltwater disposal operations, biogas and landfill gas operations, and more.

Serving the geologic oil & gas sector and the rapidly growing renewable natural gas (“RNG”) and biogas industries, EcoVapor delivers flexible, high- performance systems tailored to meet evolving field demands. The Company offers modular units covering a range of capacities that continuously provide environmental benefits over the life of a well or facility.

Cultivating Sustainable Value

We are dedicated to Cultivating Sustainable Value for our customers. DNOW’s team prioritizes understanding our customers’ challenges so our team can adequately evaluate DNOW’s proprietary solutions, while offering technical acumen and supply chain expertise. We are continually expanding our product and service offerings and leveraging our deep expertise, superior customer service and complementary suite of digital channels and solutions to strengthen the energy value chain. Our solutions aim to diminish environmental impacts and effectively manage the movement of gases and fluids. We offer sustainably produced products, thereby limiting the overall carbon footprint of their offerings (e.g., use of wind power, recycled water, wood pellets, etc.). Additionally, we excel in assembling and fabricating process, production and measurement equipment, contributing to the measurement, detection, prevention and minimization of leaks and emissions.

EcoVapor: Converting Tank Emissions to High-Quality Pipeline Gas

For one West Texas E&P company, the integration of the ZerO2™ system and metering infrastructure significantly improved project economics and eliminated approximately 19,130 MT CO₂e emissions at the company’s sites, equivalent to 4,123 gasoline-powered vehicles per year¹.

In 2024, the value of recovered tank vapor surpassed the operator’s total conventional natural gas sales, while simultaneously reducing emissions by eliminating routine flaring at production sites. The promise of increased profits has proven to be a powerful incentive for operators to utilize EcoVapor solutions that simultaneously minimize emissions and maximize productivity.

Delivering Solutions to Reduce Methane Intensity

Pneumatic controllers and actuators are one of the largest sources of methane emissions in oil and gas production, transmission and storage applications. We are helping our customers decarbonize by reducing or eliminating routine flaring, as well as eliminating methane used to power gas pneumatic devices by replacing them with industrial-grade compressed air systems. DNOW is working with multiple operators to meet their goals of reducing overall methane intensity.

DNOW Fiber Glass Systems: The Greener Choice

Our TS&M Fiberglass Glass Reinforced Epoxy (“GRE”) piping systems offer a number of advantages to our customers, including providing a low-cost alternative and environmental advantages related to the manufacturing process compared to carbon steel pipe. We are continuously educating our customers on the applications and benefits of fiberglass products, including the potential benefit of aiding in the reduction of their Scope 3 carbon footprints. Some benefits include:

31% less energy to produce
65% energy savings throughout a 20-year life cycle
Emissions reduction related to travel and shipping due to its lightweight nature
CO₂ emissions reduction by up to 77% while shipping pipe via semi-trucks
Carbon sequestration effect, as carbon stored in GRE piping systems prevents the same carbon from being emitted into the atmosphere as CO₂
CO₂ emissions reduction by 49,000 tons per year by changing current container ship piping systems to fiberglass
Pumping energy reduction by having a smoother inner pipe surface

DigitalNOW® Initiatives

We are continuously expanding our innovative digital products suite to deliver greater value for our customers. Through our DigitalNOW® platform, customers can access cutting-edge technology in eCommerce, data management and supply chain optimization. These tools enable them to solve complex operational and product sourcing while maximizing their return on assets and sustainability initiatives.

Expanding DigitalNOW® Initiatives to Drive Sustainable Water Reuse and Recycle Efficiencies

Sable Automation is an online software platform from Trojan, a DNOW Company, which automates and monitors oil & gas and water transfer systems in real-time. This industrial automation solution enhances a variety of key environmental applications, including produced water filtering, movement, storage and disposal.

Sable: Water Treatment Automation

For the largest U.S. egg producer, implementation of a Sable water treatment automation system reduced the company’s overall chemical usage and labor costs, improved uptime and enabled consistent compliance with EPA and USDA requirements.

This SCADA system utilizes real-time monitoring through flow meters, level sensors and remote alerts to automate chemical injection based on flow rate and water quality. Data-driven insights allow this customer to forecast future water and chemical usage.

ENVIRONMENTAL Initiatives

DNOW is committed to being a responsible steward of the environment and working to minimize our impact on the environment through energy management, conservation initiatives, responsible water conservation, recycling and waste minimization efforts. DNOW strives for continuous improvement in health, safety and environmental practices to enhance our Company’s business performance, satisfy customer requirements and create positive change globally as well as in our local communities, while acting in a manner consistent with all applicable laws and regulations.

DNOW helps customers minimize their environmental impact through the efficient and sustainable distribution of products and services that contain and control the movement of gases and fluids with tools that prevent and minimize the impact to the environment. We supply products, services and solutions that help deliver affordable and clean energy in a safe, responsible manner worldwide.

Solutions to Manage Water Use

DNOW offers a variety of products designed for sustainable water management, including water transfer, disposal and injection packages. These products enable environmentally responsible produced water disposal in permitted areas. Our products and solutions assist production and midstream customers in efficiently using fresh and produced water, including reuse during well stimulation, water cleaning, transfer, disposal and reuse in the field, which reduces fresh water consumption.

Solutions for Energy Evolution

We have a proven track record of serving customers across the energy value chain and are well-positioned to support them as they invest in projects driving the energy evolution. These projects encompass carbon capture, utilization and storage (“CCUS”), low-carbon or hydrogen and renewable fuels applications. The CCUS market is experiencing significant growth, with many of our current and potential customers involved in projects advancing the phases of carbon capture, separation, compression and liquefaction, transportation, storage and utilization. As our customers’ projects advance through the funding cycle and new CCUS innovators emerge, DNOW is positioned to provide value through our current product lines, including PVF, electrical, personal protective equipment, pump packages, rotating equipment and fabricated process and production equipment. By leveraging our robust network of suppliers and global locations, we are poised to expand our offerings to effectively serve the renewable energy market. Our current portfolio includes products supplied to global renewable end-markets such as biofuels, wind, solar and geothermal energy. These products include electrical, personal protective equipment, lubricants, PVF, pump packages and rotating equipment.

DNOW’s sourcing and procurement team undertakes identifying and managing risks and opportunities associated with our environmental supply chain. We require that vendors provide only products that comply with applicable laws, including those related to environmental protection, and we will not knowingly purchase products made in violation of established environmental requirements.

DNOW Solutions Help Advance Major CCUS Customer Projects

DNOW provides support to several carbon CCUS customers, aiding in the transportation and removal of CO₂ from the atmosphere. We supply products such as high-grade steel pipe, low-emissions valves, fittings, flanges, pumps, instrumentation, electrical supplies and air compressor packages for a variety of CO₂ applications.

These DNOW products are being used to support the control and transmission of CO₂ from both point source and direct air capture programs, delivering CO₂ for enhanced oil recovery (“EOR”) utilization as well as permanent geologic sequestration. In 2024, DNOW supplied PVF, construction materials and process piping to a major U.S.-based direct air capture project. Additionally, DNOW was successful in providing materials to a leading midstream operator, developing a CO₂ pipeline project in the Northwest intending to deliver CO₂ to permanent storage.

GHG Emissions

Our skilled teams regularly perform environmental inspections at our sites to verify compliance with environmental laws, regulations and permits. These programs identify and communicate best practices, risks and improvement opportunities across all sites. We ensure ongoing compliance by conducting periodic audits of our facilities, confirming adherence to environmental requirements and DNOW’s environmental policies.

DNOW’s management team is instrumental in identifying and addressing climate-related risks and opportunities, ensuring our sustainability strategy is embedded across all facets of our operations. This collaborative effort — guided by the Environmental, Social, Governance & Nominating Committee — drives the implementation of initiatives that effectively respond to climate-related challenges throughout the Company.

As a distributor, we perform minimal manufacturing operations and our energy inputs are primarily related to electricity for lighting, office and warehouse equipment, natural gas for heating and fuels for Company sales and delivery vehicles. We are continuously evaluating opportunities to make our operations more efficient while working to optimize the use of these resources in order to reduce emissions. All our energy consumption data, Scope 1 and Scope 2 emissions are reported according to the Greenhouse Gas Protocol. “Scope 1” emissions are defined as direct GHG emissions from sources that are owned or controlled by a company. Indirect emissions from consumption of purchased electricity, heat or steam are referred to as “Scope 2,” and all other indirect emissions constitute “Scope 3.” Indirect GHG emissions are a consequence of the operations of a company but occur at sources owned or controlled by another company. Both Scope 1 and Scope 2 emissions are reported in metric tons of carbon dioxide equivalent (“MT CO₂e”)

Emissions Reduction Services & Fuels Management

DNOW’s fuel consumption mostly consists of fuel consumed by vehicles, trucks and other on-road equipment used in our distribution and service operations. We collect data based on fuel type and vehicle type. CO₂e is calculated from emissions factors based on fuel type and country.

Energy Management in Retail & Distribution

DNOW’s energy consumption data is derived from electric and gas utility bills at each location. Most locations source their own electric providers, which have their own generation sources. The majority of DNOW’s facilities worldwide, including warehouses and distribution centers, monitor electricity and natural gas usage. Because the natural gas consumed by our operations is combusted onsite to heat the buildings, we are including the calculated emissions as Scope 1.¹

	2024	2023	2022	2021
FUEL CONSUMPTION²
Total fuel consumed by equipment and vehicles (“GJ”)	265,333	224,011	216,873	248,228
Total GHG emissions from equipment and vehicles (“MT CO₂e”)	18,579	15,682	15,402	16,624
Percentage of fuel used in on-road equipment and vehicles	99.8%	99.9%	99.8%	99.8%
Percentage renewable fuel	0%	0%	0%	0%
ENERGY CONSUMPTION² (“MT CO₂E”)
Electricity consumed	6,928	7,629	7,896	8,247
Natural gas consumed	3,528	3,900	3,841	5,683
Total energy consumed	10,456	11,529	11,737	13,930
Percentage grid electricity³	46%	44%	45%	38%

1 - CO₂e emission factors based on country and fuel type source. Sources include International Energy Agency (“IEA”), The Climate Registry, the U.S. Environmental Protection Agency (“EPA”) Emissions & GenerationResource Integrated Database (“eGRID”) and Environment and Climate Change Canada.
2 - Since our business operates within a highly cyclical market, our activity fluctuates based on market and customer demand for our solutions. These fluctuations may increase the use of energy in our operationsand should be considered when analyzing our data over a several year period.
3 - Calculated as purchased grid electricity consumption in GJ divided by total energy consumption in GJ, which includes natural gas consumption.

	2024	2023	2022	2021
GLOBAL GHG EMISSIONS IN MT CO₂E
Scope 1 emissions (equipment & vehicle fuel + natural gas)	22,107	19,582	19,243	22,307
Scope 2 emissions (electricity consumed)	6,928	7,629	7,896	8,247
Total Scope 1 and 2 GHG emissions	29,036¹	27,211	27,139	30,554
Total Scope 1 and 2 GHG emissions intensity	12.2	11.7	12.7	18.7

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