2025 Sustainability Report: 'Stronger Together'
Appendix: TCFD Index
We report in alignment with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), the responsibilities for which now sit with the IFRS Foundation under IFRS S2 (Climate-Related Disclosures). This is the first report following the completion of the MRC Global acquisition in 2025 and disclosures reflect the combined company unless otherwise noted.
| Recommended Disclosure | Summary Response | Location |
|---|---|---|
| Governance | ||
| (a) Board oversight of climate-related risks and opportunities | The Board oversees the Company's strategy, risk profile and enterprise risk management (ERM) program, including climate-related risks. The Environmental, Social, Governance, and Nominating Committee assists the Board in overseeing the Company's ESG efforts, and the Audit Committee oversees related disclosure controls. | This Report, p. 13; 2026 Proxy Statement, p. 32; p. 35 |
| (b) Management’s role in assessing and managing climate-related risks and opportunities. | Our cross-functional, management-led ESG Committee, overseen by members of executive management, assesses climate-related risks and opportunities and coordinates with Internal Audit on risk assessments tied to key sustainability metrics and disclosures. | This Report, p. 13 |
| Strategy | ||
| (a) Climate-related risks and opportunities over the short-, medium and long-term | Our most immediate climate-related exposures are acute weather events (hurricanes, wildfires, flooding) affecting our distribution locations. Over the medium and long term, we evaluate market, regulatory, technology and reputational risks associated with the energy transition, alongside opportunities from our diversification into gas utilities, water, mining, data centers and energy transition markets and from products that support customer emissions reduction. | This Report, p. 18; Annual Report on Form 10-K (Risk Factors) |
| (b) Impact on businesses, strategy and financial planning | Diversification of our end markets and product portfolio, including low-emission product lines, is embedded in our corporate strategy and capital allocation, as is operational efficiency across our facility footprint and fleet. | This Report, p. 18; Annual Report on Form 10-K (Item 7, MD&A) |
| (c) Strategy resilience under climate scenarios, including 2°C or lower | We have not conducted a quantitative scenario analysis. Following the November 2025 acquisition of MRC Global, our near-term priority is integrating the two companies' risk management processes and establishing a reliable combined-entity emissions baseline. We will evaluate scenario analysis as part of our post-integration climate roadmap. | — |
| Risk Management | ||
| (a) Processes for identifying and assessing climate-related risks; (b) processes for managing climate-related risks; (c) integration into overall risk management |
Climate-related risks are identified, assessed and prioritized through our ERM program based on financial impact, likelihood of occurrence and magnitude of consequences, with responses reviewed by executive management, facilitation by Internal Audit and regular reporting to the Board. | This Report, pp. 17-18; 2026 Proxy Statement, p. 31 (Board Role in Risk Oversight) |
| Metrics & Targets | ||
| (a) Metrics used to assess climate-related risks and opportunities | We track Scope 1 and Scope 2 GHG emissions and total energy consumption in accordance with the GHG Protocol Corporate Standard. 2025 is the first reporting year reflecting combined DNOW and MRC Global operations. | This Report, pp. 28-29 |
| (b) Scope 1, Scope 2 and, if appropriate, Scope 3 GHG emissions and related risks | We disclose combined Scope 1 and Scope 2 emissions for 2025. We do not currently report Scope 3 emissions; a screening of Scope 3 categories for relevance to the combined organization is underway and will inform the scope and sequencing of future estimation. | This Report, pp. 28-29; p. 57 |
| (c) Targets and performance against targets | We have not yet set climate-specific targets. Establishing a credible combined-entity baseline is the necessary first step following the merger; once that baseline is complete, we will evaluate the feasibility and relevance of reduction targets. | — |
