Sustainability Overview

Message from CEO David Grzebinski

After a year like 2020, the word sustainable has taken on a whole new meaning. With the world adjusting to a new normal due to the COVID-19 pandemic, we all experienced many challenges on a personal and professional level. Both our business segments, marine transportation and distribution and services, were adversely impacted due to depressed demand for our products which was amplified by low oil prices and an intense hurricane season in the late summer. Despite all the “shocks” to our Company, Kirby proved to be resilient. By exercising our pandemic response plan, Kirby continued to seamlessly deliver critical products and services to our customers while promoting safe work practices to our employees. Our commitment to a Zero Harm culture, including: No Harm to People, No Harm to Equipment, and No Harm to the Environment, remained unwavering and steadfast.

I am extremely proud of the initiative, dedication, and commitment our employees demonstrated during these difficult times. During the pandemic, we limited the direct impact of COVID-19 on our Company through exercising workplace strategies including quarantining, remote work practices and other key actions to maintain business continuity. Through a partnership with Rice University, our Stewart & Stevenson team used its ingenuity and designed and built an advanced version of the ApolloBVM ventilator in an effort to help with the low supply around the U.S. and the world during the height of the pandemic. Following the historic 2020 hurricane season, Kirby’s employees, including the Company match, raised a record$325,000 for our Kirby Disaster Relief Fund to assist their fellow employees in times of need. Recovery aid and material assistance were in high demand due to the destruction in our Gulf Coast communities, and Kirby employees stepped up to the plate. I’m pleased that in a year filled with significant economic hardships, the Kirbyspirit of helping our employees and our communities in need continued.

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Despite the challenges of 2020, Kirby was able to make significant progress in its ESG journey. Last year, the Company published our most robust
Sustainability report featuring our first-ever emissions disclosures and emissions reduction target. We continued to advance our ESG strategies and aligned our disclosures with the Sustainability Accounting Standards Board(“SASB”) and the Task Force on Climate-related Financial Disclosures (“TCFD”). Both can be found in the Sustainability section of our website. In 2021, a team of Kirbyemployees are taking our macro level emissions data to a micro level in order to better understand our emissions footprint. We also intend to broaden the scope of our TCFD report to include our distribution and services business. Beyond Kirby, we proudly serve in participatory and leadership roles in various maritime industry coalitions that are tackling marine decarbonization efforts. Kirby will continue to play a key role in these initiatives and coalitions as an industry leader and to advance industry’s focus on climate change.

Despite the challenges of 2020, Kirby was able to make significant progress in its ESG journey. Last year, the Company published our most robust
Sustainability report featuring our first-ever emissions disclosures and emissions reduction target. We continued to advance our ESG strategies and aligned our disclosures with the Sustainability Accounting Standards Board(“SASB”) and the Task Force on Climate-related Financial Disclosures (“TCFD”). Both can be found in the Sustainability section of our website. In 2021, a team of Kirbyemployees are taking our macro level emissions data to a micro level in order to better understand our emissions footprint. We also intend to broaden the scope of our TCFD report to include our distribution and services business. Beyond Kirby, we proudly serve in participatory and leadership roles in various maritime industry coalitions that are tackling marine decarbonization efforts. Kirby will continue to play a key role in these initiatives and coalitions as an industry leader and to advance industry’s focus on climate change.

Sustainability Report Highlights

Guiding ESG Frameworks & Standards

Kirby is relying on the following frameworks and standards to guide our ESG journey

“The Kirby Way”

Safety

Our guiding principle is No Harm to people, the environment or equipment. Safety is at the core of everything we do and always drives our decision making.

People

Our people make the difference. We invest in the tools and resources to empower our employees and we promote a workplace that values mutual respect, knowledge, and teamwork.

Integrity

Do the right thing by having the highest ethical standards whilealways being transparent and accountable for our actions.

Excellence

Creating value for our customers and shareholders by providing the highest quality service and products.

Community

Sharing our success with each other and the communities we live and work in by protecting the environment and encouraging volunteerism.

Strong Emphasis on Safety

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Safety is the first and foremost concern in everything we do
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All levels of supervision have the responsibility for the safety of our employees
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The Board of Directors review monthly safety statistics and major incidents at all levels of the organization
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Investing to ensure safe operations is good for morale and benefits financial performance
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NO HARM award banquets held annually to reward and recognize deserving employees
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NO HARM flags awarded to all towboats, tugboats and facilities with zero incidents
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Kirby has the only inland marine U.S. Coast Guard approved training center
– Company-owned and operated
– In-house towboat wheelhouse simulator

Marine Transportation Safety Highlights

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Reduced Recordable Injury Rate by 20% in 2020
– Offshore Group reduced injury rate by more than 50%
– Florida Bunker Group and Kirby Ocean Transport maintained another year with Zero Harm to People, Environment and Equipment

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2020 Safe Watches – 99.96%

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Treated successfully 2.5 million gallons of waste water

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423.4 million barrels of cargo transported without a spill to the water

Distribution and Services Safety Highlights

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Overall downward trendline for safety statistics since 2016. While the recordable injury rate increased in 2020, the severity of incidents was lower as evidenced by the decrease in the lost time injury rate.

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Driving continuous improvement and awareness through employee engagement, safety expectations, implementation of safety best practices, safety meetings, regular safety seminars and programs, safety committees/teams by location, and virtual employee town hall meetings with senior management

Blue “No Harm” Flag Program

All boats and operations groups that achieve “No Harm” to People, the Environment and Equipment during the year fly a blue “No Harm” flag. Flying a “No Harm” flag reinforces that the employees are steadfast in their commitment to operating SAFELY every day.
Marine Transportation 2020
  • 63% of boats had gold stars at year-end
Distribution & Services 2020
  • 66% of 99 flags issued still successfully flying at year end