ENVIRONMENTAL PRODUCT DECLARATION FOR HOT-DRAWN REINFORCING STEEL FOR CONCRETE IN BARS PRODUCED BY INDUSTRIE RIUNITE ODOLESI I.R.O. S.p.A.

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EPD of Industrie Riunite Odolesi I.R.O. S.p.A ENVIRONMENTAL PRODUCT DECLARATION FOR HOT-DRAWN REINFORCING STEEL FOR CONCRETE IN BARS PRODUCED BY INDUSTRIE RIUNITE ODOLESI I.R.O. S.p.A. BASED ON: PCR 2012:01 CONSTRUCTION PRODUCTS AND CONSTRUCTION SERVICES, VERSION 2.01, 2016-03-09 AND EN 15804:2014 CERTIFICATION N. S-P-00257 REVISION 2 OF 2017/04/03 VALID UNTIL 2020/02/28

Table of contents Company and product presentation... 3 The company... 3 The product and its production... 3 Environmental performance declaration... 5 Methodology... 5 Declared unit... 5 System boundaries and main hypothesis... 6 Environmental results... 8 Additional information... 11 Reference... 12 General information... 12 Contacts... 12 References... 13 Glossary... 14 Pagina 2 di 14

COMPANY AND PRODUCT PRESENTATION THE COMPANY The company Industrie Riunite Odolesi I.R.O. S.p.A. (from now on IRO S.p.A.) is placed in Odolo (BS), in via Brescia 12. Since 1951, IRO S.p.A. has been producing steel billets in electric arc furnace route (EAF) and hot-rolled reinforcing steel for concrete, coming from post and pre consumer steel scraps. The production is divided in two areas in which steel is produced in continuous cycle through melting, casting and hot-rolling. IRO S.p.A. is part of the controlled society "NOVA PIEMME SIDER S.r.l." that carry out transformation centre activities, as defined by D.M. 30 of 14.01.08. THE PRODUCT AND ITS PRODUCTION Steel bars are produced using steel scrap in a mill that uses electric-arc furnace technology, followed by casting of steel billets (squared diameter 120-130 and 140 mm and up to 9 m long) that feed rolling mill in real time. The plant turns out rebar meeting various national and international specifications. The rolling mill plant produce: o hot-rolled reinforcing steel for concrete, diameter 8-40mm and up to 18m long, with exceptional features regarding toughness and ductility, particularly suitable for anti-seismic purposes; o hot-rolled reinforcing steel, CE marked, diameter 10-40mm, various length up to 18m for S355J0, S355JR, S275J0, S275JR, S355J2, S355K2 and S355J0W types. All IRO production is monitored through continuous plant controls and periodic controls made by ministerial official laboratories and competent bodies. IRO is committed to ensure the best results in terms of technology, patents and quality certification and it has always boasted excellent management of the relations between human resources and the surrounding environment. Pagina 3 di 14

IRO is also committed to research and development for reducing atmospheric emissions and limiting energy consumption, adopting state-of-the-art technologies, quality certifications and system management UNI EN ISO 9001 (certificate number IGQ 9114, 1991/10/18) and UNI EN ISO 14001 (certificate number IGQ A2F11, 2005/12/15), certified by IGQ Istituto italiano di Garanzia della Qualità. The main features of the product object of this EPD and the production process are summarized in Table 1. Table 1 - Main information and features related to the product object of the EPD Information Product identification Product features Product properties (under EN10080:2005) Description Hot-drawn reinforcing steel for concrete in bars. Bars: Diameter from Ø 6 mm to Ø 40 mm Length from 6 to 24 m Steel coming from post and pre consumer steel scraps produced in electric arc furnace route (EAF) and further hot rolling process. Adherence and surface geometry fr or fp : - for 6 < Ø 12 mm fr or fp 0.040 - for Ø > 12 mm fr or fp 0.056 Weldability: Ceq <0,52 Typical yield stress Cv: 400 Re and/or Rp0.2 600 MPa Elongation Agt: 7,5% Plant features Successful in bend and rebend test Content of recycled materials 99% (Certificate IGQ n. C062 following ISO 14021) Successful in strength test and oligocyclic strength test Total EPD-covered production, year 2015: 240 028 t Total EPD-covered production, sold in 2015: 236 062 t On-site air emission control system On-site dumping water control system On-site system to recycle water used in process In/out materials/products and casting process monitored to prevent nuclear radiation Plant air emissions accounted under ETS (Emission Trading System) Reference products, object of this EPD, have a chemical composition in compliance with national regulation of the destination countries where the products are sent. In general, the main materials in the final product are: - Iron > 92% - Alloy elements (e.g. manganese, silicon, carbon): 2% c.a. - Other elements (e.g.. copper, nickel, chromium): complementary to 100% Pagina 4 di 14

ENVIRONMENTAL PERFORMANCE DECLARATION In this part of the Environmental Product Declaration (EPD), the main features and the environmental results of the LCA analysis are presented. METHODOLOGY The environmental burden of the product has been calculated according to EN 15804:2014 1 and PCR 2012:01 Construction products and CPC 54 construction services. This declaration is a cradle to gate with options EPD type, developed within the International EPD System and based on the application of Life Cycle Assessment (LCA) methodology 2 to the whole life-cycle system. In the whole LCA model, infrastructures and production equipment are not taken into account. The LCA study was performed using SimaPro 8.3.0 software and the Ecoinvent 2.2 data bank as supporting tool. Hot-drawn reinforcing steel for concrete in bars were described by using specific data from I.R.O. S.p.A. manufacturing plant placed in Odolo (Brescia, Italy) referred to 2015 production (240 028 t). Customized LCA questionnaires were used to gather in-depth information about all aspects of the production system (for example, raw materials contents and specifications, pre-treatments, process efficiencies, air and water emissions, waste management), in order to provide a complete picture of the environmental burden of the system from Raw Materials supply (A1) to Transport (A2) and Manufacturing (A3). Use phase and end of life were not considered according to EN:15804 and PCR 2012:01, while transport to final destination has been taken into account (A4). DECLARED UNIT The function of the whole system is to produce steel products for concrete through two main processes: steel casting in electric arc furnace route (EAF) and further hot rolling process. Environmental burdens have been allocated dividing in/out system mass and energy flows on mass (products and co-products) basis. According to EN:15804 and reference PCR, the declared unit is 1 ton of bars, ready to be delivered to the final customers. 1 EN 15804 (2014) Sustainability of construction works Environmental product declarations Core rules for the product category of construction products. 2 The LCA methodology is standardized at international level by ISO 14040 and ISO 14044. Pagina 5 di 14

A3 - CORE PROCESS ENVIRONMENTAL SYSTEM BOUNDARIES AND MAIN HYPOTHESIS Hot-drawn reinforcing steel for concrete in bars production system has been evaluated from raw materials extraction and production, steel production and transport of semi-finished products and final products (Figure 1). Use phase and end of life stages were not considered according to EN:15804 and PCR 2012:01; in general the certified product has a proper unlimited life cycle and ineffectiveness during use phase is bound to all the parameters that could influence concrete product durability of which steel is the core part. Scrap supplying Raw materials supplying Internal Transport A2 - CORE PROCESS Transport from suppliers Steel billets production Hot rolling process Air emissions Post treatment emissions Waste A3 - CORE PROCESS Scrap pre-treatment Shearing Shredding Sorting Material and energy production A1 - UPSTREAM PROCESS Packaging Internal handling Ancillary activities Market transport A4 - DOWNSTREAM PROCESS Figure 1 - Broad scheme of hot-rolled reinforcing steel for concrete production, in which the main activities included in the system boundaries, are listed and divided in the three subsystems: UPSTREAM Process, CORE Module and DOWNSTREAM Process. The subsystems identified within hot-drawn reinforcing steel for concrete production are the following: Subsystem scrap pre-treatment : all the scrap materials is treated before being used in steel billets production (upstream processes); scrap pre-treatments take place in external plants; Pagina 6 di 14

Subsystem hot-drawn reinforcing steel for concrete production : it comprehends scrap and raw materials transports from suppliers to IRO S.p.A. steel mill, steel billets production and hot rolling process to produce steel bars, included plant ancillary activities and internal handling, air and water emissions, waste management and transport to disposal plants (core process). The total amount of steel billets used in IRO S.p.A. plant is an internal production; Subsystem market transport related to final product distribution from IRO S.p.A. plant to an average customer or place of use (downstream process). About the 50% of the final product is delivered to Italian sites (41% placed in the North, 10% in the Centre and 4% in the South) and the remaining 45% to foreign countries especially Algeria, Switzerland, Slovenia and Croatia. The means of transport are truck and freight ship. On average, a tons of steel bars (finished product) is transported for 361 km by lorry and 462 km by ship. The main hypothesis of the LCA study are: All the phases related to raw materials production and use have been taken into account, from raw materials purchasing form suppliers to their production and sale; In case of transports, all those related to scrap and raw materials supply, waste management (from IRO S.p.A. plant to the place of disposal), internal handling and final product delivery, have been considered; Ancillary activities and auxiliary materials use (heating, lighting, etc.) are included within system boundaries and allocated to the different production stages on mass basis (allocation based on output quantities coming from pre-treatment stage, steel billets production and hot rolling process). According to the EN:15804 general prescriptions as well as PCR on construction products, no environmental credits have been given to input scrap materials; only scrap pre-treatment process (necessary to make it suitable for steel production purpose) has been considered. Pagina 7 di 14

ENVIRONMENTAL RESULTS Detailed environmental performance (in terms of use of resources, waste generation and environmental impacts) is presented for the three production stages (Upstream, Core and Downstream) and the related sub-phases (A1-A2-A3-A4). Note for the reader. The numbers reported in the tables below are the outcome of rounding. For this reason total results could slightly differ from the sum of contributions of the different phases. Table 2 - Renewable resources use referred to 1 tons of hot-drawn reinforcing steel for concrete in bars RENEWABLE Resources Net calorific value Use of RENEWABLE primary energy excluding renewable primary energy resources used as raw materials [MJ, net calorific value] Use of RENEWABLE primary energy resources used as raw materials [MJ, net calorific value] Total use of RENEWABLE primary energy resources (primary energy and primary energy resources used as raw materials) [MJ, net calorific value] Data referred to 1 tons of hot-drawn reinforcing steel for concrete in bars UPSTREAM CORE DOWNSTREAM A1 Raw materials supply A2 Transportation A3 Manufacturing A4 - Distribution TOTAL 780 2 44 1 827 - - - - - 780 2 44 1 827 Pagina 8 di 14

Table 3 NON renewable resources use referred to 1 tons of hot-drawn reinforcing steel for concrete in bars NON RENEWABLE Resources Net calorific value Use of NON RENEWABLE primary energy excluding renewable primary energy resources used as raw materials [MJ, net calorific value] Use of NON RENEWABLE primary energy resources used as raw materials [MJ, net calorific value] Total use of NON RENEWABLE primary energy resources (primary energy and primary energy resources used as raw materials) [MJ, net calorific value] Data referred to 1 tons of hot-drawn reinforcing steel for concrete in bars UPSTREAM CORE DOWNSTREAM A1 Raw materials supply A2 Transportation A3 Manufacturing A4 - Distribution TOTAL 8 702 1 104 788 752 11 347 379 - - - 379 9 081 1 104 788 752 11 726 Table 4- Use of secondary material referred to 1 tons of hot-drawn reinforcing steel for concrete in bars Data referred to 1 tons of hot-drawn reinforcing steel for concrete in bars Use of secondary material Use of secondary material [kg] Use of renewable secondary fuels [MJ, net calorific value] Use of NON renewable secondary fuels [MJ, net calorific value] UPSTREAM CORE DOWNSTREAM A1 Raw materials supply A2 Transportation A3 Manufacturing A4 - Distribution TOTAL 1 191 - - - 1 191 - - - - - - - - - - Pagina 9 di 14

Table 5 Net use of fresh water referred to 1 tons of hot-drawn reinforcing steel for concrete in bars Data referred to 1 tons of hot-drawn reinforcing steel for concrete in bars Net use of fresh water Net use of fresh water [m 3 ] UPSTREAM CORE DOWNSTREAM A1 Raw materials supply A2 Transportation A3 Manufacturing A4 - Distribution TOTAL 2.1 0.1 2.3 0.1 4.5 Table 6 Waste production referred to 1 tons of hot-drawn reinforcing steel for concrete in bars Data referred to 1 tons of hot-drawn reinforcing steel for concrete in bars Waste production and treatment Hazardous waste disposed [kg] NON hazardous waste disposed [kg] Radioactive waste disposed [kg] UPSTREAM CORE DOWNSTREAM A1 Raw materials supply A2 Transportation A3 Manufacturing A4 - Distribution TOTAL - - 22-22 - - 229-229 - - - - - Table 7 Parameters describing environmental impacts referred to 1 tons of hot-drawn reinforcing steel for concrete in bars Environmental impacts parameters Global Warming Potential [ kg CO2 eq ] Ozone Depletion Potential [ kg CFC-11 eq ] Acidification Potential [ kg SO2 eq ] Eutrophication Potential P. [ kg PO4 3- eq ] Photochemical Ozone Creation [ kg C2H4 eq] Depletion of abiotic resources (elements) [ kg Sb eq ] Depletion of abiotic resources (fossil) [ MJ, net calorific value] Data referred to 1 tons of hot-drawn reinforcing steel for concrete in bars UPSTREAM CORE DOWNSTREAM A1 Raw materials supply A2 Transportation A3 Manufacturing A4 - Distribution TOTAL 493 77 173 53 796 < 0.01 < 0.01 < 0.01 < 0.01 < 0.01 0.58 0.21 0.07 0.16 1.02 0.23 0.06 0.03 0.05 0.36 0.24 0.04 0.28 0.04 0.59 < 0.01 < 0.01 < 0.01 < 0.01 < 0.01 8 345 1 095 518 746 10 703 Pagina 10 di 14

ADDITIONAL INFORMATION IRO S.p.A. plant in Odolo (BS) is equipped with prevention and reduction systems for air emissions, a recirculating loop cooling to minimize water consumption and a waste management plan to prevent and reduce waste generation. In Table 8 some additional environmental information are reported. Table 8 - Other environmental indicators referred to 1 tons of hot-drawn reinforcing steel for concrete in bars Other environmental indicator for 1 t of product Air emissions Dust from electric-arc furnace CO2 from electricarc furnace NOx from hot rolling process Unit UPSTREAM CORE DOWNSTREAM TOTAL [g] - 12.7-12.7 [kg] - 70.1-70.1 [g] - 25.8-25.8 In accordance with general EPD requirements the LCA study used specific, generic and other generic data. This last data contribute to the environmental indicators less than 10%. Furthermore some consideration on the contribution of other generic data in the environmental indicators considered in Table 8 is available in the final LCA report. Pagina 11 di 14

REFERENCE GENERAL INFORMATION This declaration has been developed referring to the International EPD System, following the General Program Instruction and Supporting Annexes (ver. 2.5-2015/05/11); further information and the document itself are available at: www.environdec.com. The main database used within the study: Ecoinvent 2.2 EPD document valid within the following geographical area: Italy and other countries according to sales market conditions (North Africa and Europe). CEN standard EN 15804 served as the core PCR (PCR 2012:01 Construction products and Construction services, Version 2.01, 2016-03-09) PCR review was conducted by: The Technical Committee of the International EPD System. Chair: Filippo Sessa. Contact via info@environdec.com Independent verification of the declaration and data, according to EN ISO 14025: 2010: EPD process certification (Internal) EPD verification (External) Third party verifier: ICMQ SpA, via De Castillia, 10 20124 Milano Accredited by: Accredia Environmental declarations published within the same product category, though originating from different programs, may not be comparable. In particular EPDs of construction products may not be comparable if they do not comply with EN 15804. CONTACTS Environmental Manager: Andrea Tisi Phone: +39 0365826089 Fax : +39 0365860564 E-mail: tisiandrea@iro-spa.it Technical support to I.R.O (Industrie Riunite Odelesi) S.p.A. was provided by Life Cycle Engineering, Italy (info@studiolce.it, www.lcengineering.eu). Pagina 12 di 14

REFERENCES Life Cycle Assessment (LCA) for hot-drawn reinforcing steel for concrete in bars produced by I.R.O (Industrie Riunite Odelesi) S.p.A. for EPD purpose 03/04/2017 final report UNI EN 15804: 2014 Sustainability of construction works Environmental product declarations Core rules for the product category of construction products. General Programme Instructions for the International EPD System; Swedish Environmental Management Council (version 2.5, 2015-05-11) (www.environdec.com) PCR Product Category Rules (PCR) on Construction Products and Construction Services, Product Group Classification: Multiple UN CPC codes, 2012: 01. Version 2.01, 2016/03/09, valid until 2019/03/03 (www.environdec.com) European Residual Mixes 2014, v 1.0corr2, 05/15/2015 (www.reliable-disclosure.org) SimaPro 8.3.0.0 from Prè Consultant Ecoinvent v. 2.2 UNI EN 10080-2005 (Steel For The Reinforcement Of Concrete - Weldable) Pagina 13 di 14

GLOSSARY Considered parameters describing environmental impacts: Global Warming GWP: Phenomenon in which the infrared rays emitted from the Earth's surface, as a result of solar heating, are absorbed by molecules in the atmosphere and reemitted as heat, causing the over-warming of the atmosphere. The indicator used to evaluate this contribution is the GWP (Global Warming Potential ), which includes primarily the emissions of carbon dioxide, the main greenhouse gas, as well as other gases with a lower degree of absorption of infrared rays, such as methane (CH4), nitrous oxide (N2O), chlorofluorocarbons (CFC) (g CO2 ). Acidification Potential AP: It is a form of precipitation that is unusually acidic, meaning that it possesses substandard levels of ph. It can have harmful effects on plants, aquatic animals and infrastructure. Acid rain is caused by emissions of SO2, NOx and NH3. The acidification potential is measured in grams of equivalent Sulphur Dioxide (SO2). Ozone Depletion Potential ODP: degradation to the ozone layer, useful to block the ultraviolet component of sunlight, caused by some substances such as chlorofluoromethans or chlorocarbons. Trichlorofluoromethane (R-11 or CFC-11) is the reference substance, being fixed at an ODP of 1.0. The ozone depletion potential is measured in g CFC-11 eq. Eutrophication potential EP: It is an extreme proliferation of vegetation in the aquatic ecosystem caused by the addition of nutrients into rivers, lakes or ocean, which determinates a lack of oxygen. Eutrophication potential is mainly caused by emission into water of phosphate and nitrates. It is expressed in equivalent grams of (g PO4 - ). Photochemical ozone creation potential POCP: Chemical reactions brought about by the light energy of the sun. The reaction of nitrogen oxides with hydrocarbons in the presence of sunlight forms the ozone in the troposphere. The indicator mainly consists of VOCs (Volatile Organic Compounds) and is usually expressed in grams of equivalent ethylene oxide (g C2H4). Pagina 14 di 14