Risk Management

As discussed above, our senior-level management is responsible for identifying corporate risks, including climate-related risks and opportunities, assessing the potential level of impact to the business, and discussing this risk assessment with the Board on at least a quarterly basis.

Risk assessment communications with the Board involve senior-level management’s preparation and presentation to the Board of a risk mapping exercise, which categorizes identified risks, including climate change-related risks, according to their probability and severity. The purpose of these regular risk assessments is to identify those risks that have the potential to significantly affect our business over the short-, medium- and longer term and to discuss appropriate mitigation and oversight measures, including prioritization of risk management and allocation of responsibility for the management of a particular risk.

Management of Climate-Related Risks and Opportunities

We work to mitigate climate-related and other risks, to the extent we are reasonably able to do so. Mitigation of risk can take many forms, but we primarily mitigate and address these transition risks by providing, and continuing to develop, lower-emissions equipment, technology and software solutions. We prioritize management of climate risks, as with other corporate risks, based on the likelihood of occurrence weighted against severity.

While we are subject to the climate-related risks listed above, we believe that we may benefit from certain climate-related opportunities. We believe we currently have a leadership position in equipment, technology and software solutions that puts us at a competitive advantage as customer demand shifts to lower-emissions operations and services. For example, we have increased our usage of alternative fuel equipment (such as using rich-burn natural gas engines in place of traditional diesel-only equipment), are continuing our development of innovative, lower-emissions technology (such as battery power hybrid energy management systems and technology enabling the use of utility electrical power in our operations) and are redesigning our own equipment to maximize efficiency (such as through the development of emission-reducing automation, remote operations and control systems).

We will continue to invest capital in sustainable solutions and other emission reducing equipment such as the ongoing deployment of natural gas engines. We are also pursuing opportunities related to renewable energy sources, such as electric fleets and other alternative power solutions. We utilize equipment that runs on a variety of fuels to improve efficiency and reduce environmental impact. Please see “Environmental – Air Quality, Greenhouse Gas Emissions and Energy Usage” above.

We plan to continue our development of alternative fuels and lower-emissions solutions. This strategy could result in increased capital expenditures or allocation of funds to research and development, as well as the formation of strategic partnerships with companies that can assist our customers in meeting their climate and sustainabilityrelated goals.

Environmental Management System

Our internal policies and procedures, combined with our audit and training programs described above, also help us manage risks. For example, we have created a comprehensive Environmental Management System (EMS) including hundreds of proprietary environmental protection and safety-related policies, as discussed above in “Environment – Environmental Management.”

Metrics, Scenarios and Targets

We consider a variety of metrics to assess our performance with regard to climate risks and opportunities. For example, we track our diesel fuel savings from the use of our alternative fuels technologies in order to demonstrate to customers and other stakeholders the fuel savings and emissions reduction that result from using our services. We internally track the amount of research and development and capital expenditures spent on developing, building and deploying the technology and equipment behind our lower-emissions operations and services.

We continue to explore models for tracking and reporting of emissions from our operations and participate in discussions regarding best methods for tracking and reporting of GHG emissions with industry.

We also continue to evaluate opportunities from time to time to provide our services outside of the United States, as diversification of geographical opportunities may help to insulate our business from the risks associated with operating solely in the United States.