OUR COMMITMENT TO STAKEHOLDERS, SUSTAINABILITY AND GOVERNANCE

A JOINT LETTER FROM OUR CEO AND CHAIRMAN OF THE BOARD

Since our founding in 1947 by the late K.S. “Bud” Adams, Adams Resources & Energy, Inc. (“Adams”) has been committed to doing business the “Right Way”.  The “Right Way” simply means having an intentional focus on continuous improvement towards safety, our Team Members, the environment, our shareholders, Corporate Governance and the communities in which we live and operate.

Our Team Members are our most valued asset. At Adams and our subsidiaries, we are committed to providing our Team Members a safe working environment.  We are continuously working to eliminate physical hazards, while also working toward making Adams a great place to work by providing competitive compensation, benefits and professional development programs regardless of race, sex, religion, nationality, sexual orientation or gender identity.   

We believe that being good stewards of the environment is also good for business.  Part of this belief is measuring and continuously improving our business’ impact on carbon emissions.  As part of our sustainability commitment, Adams’ operating divisions are verified Partners with the U.S. Environmental Protection Agency’s (“EPA”) SmartWay program.  Through SmartWay, we partner with the EPA to measure, benchmark and improve transportation operations to reduce our environmental footprint.  For more information on SmartWay, please visit https://www.epa.gov/smartway/learn-about-smartway

Adams’ chemical transportation division is a Partner with the American Chemistry Council’s Responsible Care® program.  Partners of this program pledge to improve environmental, health, safety and security (EHS&S) performance for facilities, processes and products throughout the entire operating system.  For more information on Responsible Care®, please visit https://responsiblecare.americanchemistry.com

Our pipeline and storage division is an active member of the Association of Oil Pipe Lines (“AOPL”).  We work in partnership with the AOPL to deliver responsible policies, safety excellence and promote innovations that minimize pipeline greenhouse gas emissions.  For more information on AOPL, please visit   https://aopl.org/.

Adams continually invests in the latest technologies to help reduce our fleet’s environmental impact.  The average age of our fleet is less than 3 years.  We invest in low profile tires with auto-inflation devices that reduce tire friction. We purchase custom aerodynamic packages that improve fuel mileage and leverage a state-of-the-art Transportation Management System (“TMS”) system to optimize route planning. 

We remain committed to the practice of good corporate governance.  An active, diverse Board with a broad range of relevant experience helps ensure sound corporate strategy and best practices are being followed, which delivers better results to all of our stakeholders.

Adams supports the communities in which we operate.  We are working with Truckers Against Trafficking (“TAT”) to train all over-the-road drivers on how to spot and report signs of human trafficking.  To learn more on how to support TAT, please visit https://truckersagainsttrafficking.org.

If you have any questions about our employees, sustainability program or governance practices, we encourage you to reach out to us.  Inquiries can be directed to Tracy Ohmart, Adams’ Chief Financial Officer at tohmart@adamsresources.com or (713) 881-3609.


Kevin Roycraft                                                             Townes G. Pressler
CEO & President                                                          Chairman of the Board

HOW ADAMS THINKS ABOUT ESG

We are focused on creating long-term value for our stockholders and fostering a culture that is steadfast on minimizing our environmental footprint, ensuring operational safety, promoting social responsibility and practicing sound corporate governance. As such, we view responsible ESG as one of the key drivers for the continued sustainability of our business.

Our Standard Industry Classification (SIC) code is 5172 – Wholesale-Petroleum & Petroleum Products. 

Our GICS (Global Industry Classification Standard) code, managed by MSCI and S&P Global, is 10102030 – Oil & Gas Refining & Marketing.  Under the GICS methodology, companies are classified by the industries from which they derive their revenues.  In our case, more than 90% of our revenue comes from crude oil marketing activities from customers in the oil and gas vertical. 

Many of the current ESG metrics for our current GICS classification do not apply.  As we strive for ESG transparency, we will be reviewing classification standards and ESG reporting frameworks that apply to our business.

WHAT WE DO

  • Market, transport and store crude oil in various crude oil and natural gas basins in the lower 48 states of the United States, through our subsidiaries, GulfMark Energy, Inc., Victoria Express Pipeline, LLC and GulfMark Terminals, LLC.
  • Transport liquid chemicals, pressurized gases, asphalt and dry bulk primarily in the lower 48 states of the U.S. with deliveries into Canada and Mexico, and with fifteen terminals across the U.S. through our subsidiary, Service Transport Company.
  • Employ approximately 730 persons, of which 492 are truck drivers.
  • Have a strong commitment to safety and reliability in all that we do.

Our strategy is to build long-term relationships with our customers based upon the highest level of customer service, safety and reliability.  We believe that our commitment to safety, flexibility, size and capabilities provide us with a competitive advantage over other carriers. 

WHAT WE DO NOT DO

  • Produce or refine oil and gas, drill wells, manage production or drilling sites.
  • Produce the chemicals we transport.
  • Operate equipment used in the production of oil and gas or chemical production.
  • Own property used in the production of oil, gas or chemicals.

OUR VALUES

At Adams and our subsidiaries, our strategy is to build long-term relationships with our customers based upon the highest level of customer service, safety and reliability.  We believe that our commitment to safety, flexibility, size and capabilities provide us with a competitive advantage over other carriers.

Adams’ core values include:  Safety, Health, Reliability, Diversity and Teamwork, the “Right Way”.

ENVIRONMENTAL SUSTAINABILITY

We operate an efficient and well-maintained fleet.  We continue to invest in new tractors, which reduces the average age of our fleet.  We help to ensure our fleet is as efficient as possible by:

  • Investing in custom-built tractors: We work with manufacturers to custom build and outfit our tractors, enabling us to tailor our vehicles’ specifications for our particular usage profiles.  These specifications include custom gearing and the use of speed limiters to help maximize our fleet’s efficiency.
  • Incorporating the latest technologies to drive fuel efficiency: This includes low rolling resistance tires throughout our trailer fleet as well as automatic tire inflation systems, which are designed to keep tires inflated to the optimal level for peak performance.
  • Optimizing fuel usage: Each of our tractors includes a telematics system that allows us to assess certain driving and operating statistics, including miles per gallon, by unit and driver.  We utilize this data to help manage the efficiency of our fleet and reduce unnecessary fuel use and emissions.

We also recycle and/or recapture tires and waste oil from our tractors. 

All of GulfMark’s unload stations are equipped with over-fill protection and high-level sounding alarms to avoid damage to the environment.  We also operate trailers equipped with internal gauges to prevent the risk of tanker overflow. 

Service Transport Company (“STC”) is also a Responsible Care® Partner. This association with the American Chemistry Council represents our commitment to health, safety and environmental issues surrounding the chemical industry.  The overall goal of the American Chemistry Council is to properly manage chemicals worldwide and to progress toward the vision of no accidents, injuries or harm to the environment.  They lead their Responsible Care® partners in ethical ways that increasingly benefit society, the economy and the environment. We are very proud to be a part of this important cause.

We are proud to have two of our subsidiaries, STC and GulfMark Energy, Inc. (“GulfMark”), as Partners in the U.S. Environmental Protection Agency’s (“EPA”) SmartWay Transport Partnership, a national voluntary program developed by the EPA and freight industry representatives to reduce greenhouse gases and air pollution and promote cleaner, more efficient ground freight transportation.

STC is a proud member of Texas TRANSCAER®, a non-profit organization with membership from the chemical, transportation and emergency response industries.  The mission of Texas TRANSCAER® is to promote safe transportation and handling of hazardous materials, educate about the safety and security of hazardous materials that are transported through communities, and provide education and training for emergency responders along transportation routes.  As members of Texas TRANSCAER®, STC Safety Personnel assist with training events for first responders all over Texas.  For more information on TRANSCAER®, please visit https://www.transcaer.com/.   

During 2020, STC applied for and received its first bronze star rating from EcoVadis, a global leader in monitoring, benchmarking and enabling sustainability in global supply chains.  For more information on EcoVadis, please visit https://ecovadis.com/.    

We also continuously monitor environmental performance across our pipeline and terminal operations and endeavor to meet or exceed all applicable laws and regulations in an effort to minimize environmental impacts. 

OUR HEALTH, SAFETY AND ENVIRONMENTAL (“HSE”) OBJECTIVES

The health, safety and security of our employees, business partners, and affiliates are core values at Adams.  Our objectives are to:

  • Strive for zero workplace incidents by fostering a safe and secure work environment.
  • Mitigate hazards which cannot be eliminated.
  • Minimize operational risk exposure.
  • Minimize operational footprint to reduce environmental risks and increase efficiency.
  • Perform all work tasks in compliance with HSE policies and procedures.

We focus our resources and priorities to ensure:

  • No accidents at worksites.
  • No environmental damage.
  • No damage to operational assets.
  • No lapses in HSE compliance.

OUR EMPLOYEES

Our positive, team-oriented work environment values and recognizes personal initiative and the willingness to help others.  The recruitment, training, and retention of a professional driver workforce is essential to our continued growth and fulfillment of customer needs. 

  • We hire qualified professional drivers who hold a valid commercial driver’s license, satisfy applicable federal and state safety performance and measurement requirements, and meet our hiring criteria. These guidelines relate primarily to safety history, road test evaluations, and various other evaluations, which include physical examinations and mandatory drug and alcohol testing. 
  • We provide comfortable, late model equipment, encourage direct communication with management, and pay competitive wages and benefits, and other incentives intended to encourage driver safety, retention and long-term employment.
  • Prior to being released for individual duty, each new hire is required to undergo a mandatory training and evaluation period by a certified driver trainer/instructor. The length of this training period will be dependent on experience and the new hire adaptation to company policies and procedures.

Competitive Benefits

Adams provides a strong benefit package that includes health care insurance, dental insurance, vision insurance, Company-paid life insurance, paid time off, Company-paid holidays, family medical leave, and a 401(k) with a Company match. 

Work/Life Balance

We understand that a positive work / life balance is important to our employees. We have consistently improved our paid time off benefits for all of our employees, which allows us to retain and recruit quality employees. Our dispatch software and schedules help ensure that Adams’ drivers maximize their time at home.

Service Awards

Adams recognizes the dedication and loyalty of our employees by recognizing their years of service through awards.

DIVERSITY AND INCLUSION

Adams is proud to be an equal opportunity workplace and an affirmative action employer. We do not discriminate based upon race, religion, color, national origin, gender (including pregnancy, childbirth, or related medical conditions), sexual orientation, gender identity, gender expression, age, status as a protected veteran, status as an individual with a disability, or other applicable legally protected characteristics.  We also support the hiring of veterans and are honored to provide opportunities to men and women who have served their respective countries.

HUMAN RIGHTS

Adams supports basic human rights throughout our business enterprise and prohibits the use of child, compulsory or forced labor.  Company employees are strictly prohibited from using our equipment to transport, or our facilities to shelter, unauthorized persons, or to take any other act in support of human trafficking or human rights abuses.  Company employees are required to immediately report any human trafficking concerns to the appropriate law enforcement agency.

We are working with Truckers Against Trafficking (“TAT”) to train all over-the-road drivers on how to spot and report signs of human trafficking.  Our drivers receive training from Truckers Against Trafficking and become registered as TAT trained and certified.  To learn more about TAT, please visit https://truckersagainsttrafficking.org.

BOARD OVERSIGHT

We believe that our Board of Directors should play a critical role in the vision and oversight of our sustainability efforts.  We have an active, diverse Board with a broad range of relevant experience, which  helps ensure sound corporate strategy and best practices are being followed.  Our Board are members of the National Association of Corporate Directors (“NACD”).  For more information about NACD, please visit https://www.nacdonline.org/.  

For more information about our board committees, please visit https://www.adamsresources.com/corporate-governance/.  

ETHICS AND COMPLIANCE RESOURCES & REPORTING A CONCERN

Company employees and directors are expected to conduct themselves at all times in a manner that prevents and avoids harassment and report such conduct to management.  For more information regarding our Code of Conduct, please visit https://www.adamsresources.com/wp-content/uploads/2017/09/Adams-Resources-Energy-Inc-codeofethics.pdf.

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