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BREAKTHROUGH ® FUEL 2016 Sustainability Report

BREAKTHROUGH FUEL · CARBON FOOTPRINT BREAKDOWN Team Member Commute 44% Business Travel 29% Electricity 20% Natural Gas 7% In the spirit of transparency, Breakthrough®Fuel discloses

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Page 1: BREAKTHROUGH FUEL · CARBON FOOTPRINT BREAKDOWN Team Member Commute 44% Business Travel 29% Electricity 20% Natural Gas 7% In the spirit of transparency, Breakthrough®Fuel discloses

BREAKTHROUGH®FUEL2016 Sustainability Report

Page 2: BREAKTHROUGH FUEL · CARBON FOOTPRINT BREAKDOWN Team Member Commute 44% Business Travel 29% Electricity 20% Natural Gas 7% In the spirit of transparency, Breakthrough®Fuel discloses

v

1

Breakthrough®Fuel is a global transportation energy and information management firm,

working with the world’s leading shippers to reduce the cost, consumption, and emissions

in their supply chain.

© 2016 Breakthrough®Fuel, LLC / Proprietary and Confidential

Page 3: BREAKTHROUGH FUEL · CARBON FOOTPRINT BREAKDOWN Team Member Commute 44% Business Travel 29% Electricity 20% Natural Gas 7% In the spirit of transparency, Breakthrough®Fuel discloses

2A W

OR

D F

RO

M O

UR

CEO

“Since our doors opened in 2004, we have partnered with the world’s leading supply chains to pursue mutual benefit in the energy and transportation marketplaces. From these early days, we have built our growth as a company – and as a partner – on an understanding of sustainable business principle as the path to true prosperity.”

In 2014, we formalized our commitment to sustainability with the creation of our Sustainability & Community Engagement Committee (SCEC). This cross-functional team brings our emissions reduction efforts together with our work to give back to our community, under an expansive definition of corporate sustainability. With the SCEC’s guidance, we have reduced the carbon intensity of our business while contributing hundreds of hours and thousands of dollars to community causes that we believe in.

Beyond our business’s direct environmental impact, we also work across our client base to eliminate fuel consumption and emissions from their transportation footprint. Our team works tirelessly to keep our clients at the leading edge of efficiency in their reimbursement practices, and to optimize their use of more efficient modes of transportation. As you will see reported here, we are especially proud of our record of achievement converting clients’ freight to intermodal transport at a rate that far outpaces the industry. Together, we are working to create a stronger, low-carbon transportation and business environment for the future.

On behalf of the team at Breakthrough®Fuel, I want to thank you for taking time to learn more about our commitment to sustainability, broadly defined. We are proud of the work we are doing to support a more sustainable future, and are pleased to share this report with you.

CRAIG DICKMANCEO, Chief Innovation Officer

© 2016 Breakthrough®Fuel, LLC / Proprietary and Confidential

Page 4: BREAKTHROUGH FUEL · CARBON FOOTPRINT BREAKDOWN Team Member Commute 44% Business Travel 29% Electricity 20% Natural Gas 7% In the spirit of transparency, Breakthrough®Fuel discloses

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H® P

ERFO

RM

AN

CE

MET

RIC

S

WATER CONSUMPTION | Cubic Ft.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

0

500

1,000

1,500

2,000

2,500

3,000

2015

2016

7.4%Y-o-Y H2O Decrease

CARBON FOOTPRINT BREAKDOWN

Team MemberCommute

44%Business Travel

29%Electricity20%

Natural Gas7%

In the spirit of transparency, Breakthrough®Fuel discloses its emissions and consumption metrics publicly, in order to draw attention to these crucial metrics and to work to reduce the emissions intensity of our operations in coming years.

FACT: Our emissions per team member decreased by 3 percent from 7.23 metric tons in 2015 to 7.00 in 2016 despite our office completing 130,000 more air miles than we did in 2015.

FACT: From 2015 to 2016 our water consumption fell by 7.4 percent. In the same time frame, our waste per team member decreased from 57.3 cubic ft per team member to 46.0 cubic ft per team member.

© 2016 Breakthrough®Fuel, LLC / Proprietary and Confidential

Page 5: BREAKTHROUGH FUEL · CARBON FOOTPRINT BREAKDOWN Team Member Commute 44% Business Travel 29% Electricity 20% Natural Gas 7% In the spirit of transparency, Breakthrough®Fuel discloses

4INT

ERM

OD

AL

SHIP

MEN

T G

RO

WT

H

2012

274,498

2013 2014 2015 2016

410,156

491,578521,390

577,409

INTERMODAL SHIPMENTS | 2012-2016

Breakthrough®Fuel managed fuel for more than 575,000 US intermodal shipments during 2016. This growth included new intermodal Fuel Recovery clients and, most importantly, demonstrated how those clients who have been with intermodal Fuel Recovery the longest continue to find mode conversion opportunities that lead to fuel savings and fewer emissions.

The chart below illustrates growth among the group of clients who have been with intermodal Fuel Recovery for the past five years. This group completed 18 percent more intermodal shipments in 2016 than they did in 2012, outpacing the U.S. market’s growth rate by 9 percentage points.

2012 2013 2014 2015 2016

100

106

113

110

116

111

118

109

104

BASE 100 INTERMODAL SHIPMENT GROWTH | 2012-2016

Clients on Fuel Recovery Since 2012 US Market

100

105

110

115

120

Breakthrough® intermodal clients made over 575,000 intermodal shipments in 2016, accounting for 1 of every 25 intermodal containers in the country. Clients average intermodal shipments travel 120 percent of the routed miles of their truckload shipments, but consume just 55 percent of the gallons. That is to say, intermodal shipments represent a gallon and emission reduction of 45 percent when compared to truckload use on a lane, on average

© 2016 Breakthrough®Fuel, LLC / Proprietary and Confidential

Page 6: BREAKTHROUGH FUEL · CARBON FOOTPRINT BREAKDOWN Team Member Commute 44% Business Travel 29% Electricity 20% Natural Gas 7% In the spirit of transparency, Breakthrough®Fuel discloses

5CLI

ENT

PER

FOR

MA

NC

E M

ETR

ICS

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

2.0

Emis

sio

ns p

er 1

,000

Mile

s (M

T o

f CO

2 )

2013

EMISSIONS INTENSITY BY SHIPPER | 2013-2016

2016

2016

2015

2014

2013

2012

5.2 5.4 5.6 5.8 6.0 6.2 6.4 6.6 6.8 7.0 7.2 7.4

5.986.78

6.036.96

6.117.04

6.167.07

6.227.17

Clients MPG - All Modes Truckload MPG

CLIENT FUEL EFFICIENCY MIX | All Clients with Intermodal Programs

FACT: Breakthrough® clients took their fuel spend further by incorporating intermodal shipments into their network. Our intermodal clients traveled nearly an additional mile for each gallon of fuel consumed overall during 2016 by putting some of their freight on the rail. During 2016, clients who mixed truckload and intermodal shipping in their networks averaged a combined fuel efficiency of about 7.20 miles per gallon, while peers who used only trucking within their networks averaged a fuel efficiency of just 6.2 miles per gallon.

FACT: Client fuel efficiency improvements resulted in at least 6.7 percent fewer metric tons of CO2 emissions and helped clients avoid over 190,000 metric tons of CO2. That is the same amount of CO2 emitted by 1,200 class 8 trucks annually!

© 2016 Breakthrough®Fuel, LLC / Proprietary and Confidential

Page 7: BREAKTHROUGH FUEL · CARBON FOOTPRINT BREAKDOWN Team Member Commute 44% Business Travel 29% Electricity 20% Natural Gas 7% In the spirit of transparency, Breakthrough®Fuel discloses

6BR

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IN T

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UN

ITY

COMMUNITY IN ACTIONWe believe in making good things happen. That starts right here in our local community of Green Bay, Wisconsin. Our support has positively affected 20 organizations, helping families, children’s education, the arts, and our environment. The Breakthrough®Fuel team is boldly dedicated to sharing our passion, our time, and our resources to enable our community to succeed. Check out a few of our highlights below!

BREAKTHROUGH® TEAM CHALLENGEOne of our most memorable events each year is the Client Product Team

Challenge. Our organization divides into teams for a friendly, yet competitive, event to purchase as many client products as possible. These food and

hygiene products are then donated to our local Downtown Green Bay food pantry. To date, we have donated over 16,000 products to those in need.

ST. NORBERT COLLEGE HONORS PLEDGEBreakthrough®Fuel is proud to support the St. Norbert College Honors Program, which transforms learning into action. This program promotes

and supports life-long learning, creative problem solving, critical thinking skills, original research and ethical leadership. Through our partnership,

Breakthrough was able to help send eight students to the National Collegiate Honors Council Conference.

UW - GREEN BAY IDEA SPOTWith a nod to vision, leadership, innovation and collaboration, the new

Breakthrough® Studio was unveiled at UW-Green Bay. This space will give students, faculty, staff and community members a place to come together to work collaboratively, to debate ideas, work through problems, and innovate.

GREATER GREEN BAY - HABITAT FOR HUMANITYOur Breakthrough®Fuel team was hard at work volunteering for the Greater

Green Bay Habitat for Humanity. We are proud to support this global nonprofit organization that builds homes, advocates for fair and just housing policies, and provides training, access, and resources for families in our local

community.

© 2016 Breakthrough®Fuel, LLC / Proprietary and Confidential