In 2023, we continued to make progress regarding our environmental, social, and governance (“ESG”)
initiatives. As a leading provider of a product that is mission critical to our customers, GrafTech is
proud of our ongoing contributions towards the sustainability of steel. As we continued to execute our
ESG strategy in 2023, key initiatives included investments to capture heat to reduce fuel consumption at
our production facilities and a significant expansion of our engagement within local communities in the
areas where we operate. Further, in 2023, GrafTech joined the United Nations Global Compact, a voluntary
leadership platform for the development, implementation, and disclosure of responsible business
practices.
Timothy K. Flanagan, Chief Executive Officer and President
GrafTech is proud to be a leader in the manufacturing of high-quality graphite electrodes, operating
three of the
most efficient and highest capacity graphite electrode manufacturing facilities in the world. The
recent full re-start of our facility in St. Marys, Pennsylvania, further enhances our capabilities
to support our customers’ decarbonization efforts. Our products are
essential to the production of electric arc furnace (“EAF”) steel, which is the
fastest-growing segment of the global steel market and, importantly, more environmentally friendly
than blast furnace
steelmaking. In fact, EAF steelmaking generates significantly less carbon dioxide emissions compared
to a blast
furnace facility. It also directly supports the circular economy, as EAF steelmaking recycles
scrap-based raw materials into new steel that is infinitely recyclable. Combined with our strides
towards heat recovery and our ongoing transition to green electricity at our facilities,
we are making significant progress—directly and indirectly—towards the decarbonization of steel.
GrafTech’s success is only possible through the hard work of our global team and their commitment to
upholding our core values
of Safety, Environment, and Quality (“SEQ”). Our people have demonstrated this commitment, as well as
determination and resilience,
as we navigated through what proved to be a challenging year in 2022. In addition to the impacts of
geopolitical conflict, high
levels of inflation, and ongoing supply chain and economic uncertainty, the unanticipated suspension of
our operations in Monterrey,
Mexico, in late 2022 significantly affected our business.
Despite these challenges, we made important ESG progress in 2022. We made key investments in our
heat recovery program, spending more than $13 million in 2022 and 2023. We expanded our safety
initiatives, undertook new several community engagement programs, and embarked on new collaborations
with universities to expand our R&D capabilities.
We are proud of our progress and of our ongoing contributions towards the sustainability of steel.
We continue to identify
and pursue opportunities to drive sustainability performance and increase transparency on ESG
issues. In May 2023, GrafTech joined the United Nations Global Compact, a voluntary leadership
platform for the development, implementation, and disclosure of responsible business practices.
Looking forward, we remain fully committed to advancing our sustainability efforts across our global
organization. Ultimately, we believe that this work supports
our industry-leading position and competitive advantage, optimally positioning GrafTech for
long-term growth and benefits for all stakeholders.
As always, I welcome your questions and comments on our sustainability efforts and look forward to
engaging with you on these topics.
Sincerely,
Marcel Kessler,
Chief Executive Officer