Badger Infrastructure : 2022 ESG Report

Report scope

This report covers the entirety of Badger's operations, including (but not necessarily limited to) our light-duty and heavy-duty excavation fleet, branch and manufacturing facilities, and non-destructive excavation service capabilities.

Report methodology

Badger's senior leadership team underwent a thorough evaluation process to identify the ESG focus areas most relevant to our business. This assessment included a series of interviews and focus group sessions with key stakeholders across the company, which supported the development of six high-priorityESG focus areas.

Reporting standards and framework

Badger is committed to advancing our standards for ESG disclosure and is looking to further incorporate the Sustainability Accounting Standards Board ("SASB") framework into our ESG strategy moving forward. The

basis of this report drew inspiration from SASB's Engineering and Construction Services, Materials Management, and Chemicals accountability standards. Moreover, given the multifaceted nature of Badger's work, we will continue to assess how we can ensure future disclosures will reflect ESG best practices.

Looking to the future

We aspire to publish an updated version of our ESG report every two years. Furthermore, the company's goal is to ensure that with every new iteration of our ESG report, we can showcase sustainable performance improvements across our six ESG focus areas and other ancillary topics that may become more relevant to Badger's ESG strategy over time.

COMPANY WEBSITE: BADGERINC.COMINVESTOR RELATIONS: IR.BADGERINC.COM

Our best-in-classnon-destructive excavation service offerings include:

Hydrovac: Using pressurized water and an industrial strength vacuum to break apart soil, clay, or hard-packed dirt surrounding sensitive underground infrastructure.

Airvac: Using air-excavation technology to break apart soil so it can be deposited and reused directly on client sites while reducing overall water usage and emissions.

Locating Services: Providing clients with GPS data so they can accurately visualize their infrastructure, protect their assets, and excavate with confidence.

Sewer Services: Deliver a myriad of advanced services including CCTV inspections, air testing, line inspections, and laser profiling to support our clients excavation needs.

Our service offerings and exceptional customer service have allowed us to:

Employ 1,450 operators to service over 20,000 unique customers across North America

Seize organic growth opportunities and realize sustainable growth with a

10-year revenue CAGR of $

15%

Badger's ESG strategy and purpose

For 30 years, Badger has been committed to the highest standards of safety and integrity for our employees, customers, and the communities we serve.

A core component of our corporate vision is to be the North American leader in safely and efficiently satisfying our customers' excavation needs. Achieving this vision is no small task and requires reliable equipment, a robust safety strategy, and committed team members.

This vision also requires a strong ESG strategy, which at Badger means promoting environmental stewardship, enhancing social responsibility and safety, and maintaining good governance practices.

As an industry leader and a good corporate citizen, our commitment to stakeholders is that we will be transparent and steadfast in our ambition to move the needle on the six

ESG focus areas we have identified:

1. Water Stewardship
2. Customer Materials Management
3. Scope 1 and 2 Emissions
4. Safety and Integrity
5. Diversity, Equity, and Inclusion ("DEI")
6. Governance and Risk Management

Badger's governance and culture

In 2021, we released our inaugural ESG report which identified several focus areas and aspirations that we have refined in this iteration. We have realized several aspects of our original ESG ambition and have invested in the processes and governance required to enable a strong culture of ESG that will carry us into the next phase of our journey.

Our next step will be to set targets against each

of our ESG priorities, and improve overall performance in our identified ESG focus areas.

Innovation and future aspirations

Building this culture is an ongoing journey and will require continuous improvement in our behaviour, policies, and practices. We are optimistic and excited about our ability to make progress, and look forward to sharing a handful of compelling case studies in this report that reflect the initiatives we have advanced thus far.

Sincerely,

Robert Blackadar

President and Chief Executive Officer

APPROACH AND PRIORITIES

"Emphasizing six current focus areas will allow Badger to effectively move the needle on our ESG strategy in areas that are material to our business

Prioritizing our ESG focus areas

Incorporating ESG into our corporate strategy

A key enabler to seizing organic growth opportunities and achieving our long-term revenue targets will be progressing our ESG performance to meet the growing demands of the customers and communities we serve. Although we are still in the early stages of our ESG journey, we evaluate our business and strategic priorities through the lenses of environmental stewardship, social responsibility and safety, and good governance.

These three strategic lenses have now manifested in the overarching guiding principles of our corporate ESG strategy. Each of these principles and their significance are defined below.

Environmental stewardship

Being accountable for the impact our operations have on all aspects of the environment, including the emissions we generate, the water we withdraw, and how we manage customer materials.

Social responsibility and safety

Becoming true champions of diversity, creating equitable employment opportunities for all, and an inclusive corporate culture that incorporates safety and integrity into everything we do.

Good governance

Remaining transparent about our operations and objectives with all our stakeholders and managing our exposure to risk as we progress along our ESG journey and pursue meaningful growth targets.

Approach to identifying ESG focus areas

In 2021/2022 Badger explored several focus areas linked to our guiding principles of environmental stewardship, social responsibility and safety, and good governance. To effectively progress our ESG performance, we prioritized the focus areas that are the most important to our stakeholders and would have the largest impact on our business.

We conducted a materiality assessment that consisted of our senior leadership team and Board of Directors (the "Board") evaluating alternative ESG focus areas based on two key criteria:

1. The importance of the focus area to Badger's primary stakeholders.
2. The impact the focus area has on Badger's overall business and operations.

The results of this assessment were consolidated and discussed by our executive team, who used this data along with the company's corporate strategy to determine the top six focus areas that we would work to advance in the immediate term (i.e., current ESG focus areas). These focus areas were considered the most "material" to Badger's business and stakeholders.

It is important to note that the development and prioritization of our ESG priorities is an iterative journey. Therefore, we are committed to assessing which ESG priorities are most relevant to us and making necessary adjustments as the needs of our stakeholders and business evolve.

and stakeholders."

• Robert Blackadar, President and Chief Executive Officer

Badger's current ESG focus areas