2012

2012 AnnualSustainabilityReportQUEST RESOURCE MANAGEMENT GROUP

Since its inception in 2007, Quest has posted year-over-year revenue growth. 2012 proved no different – exceeding expectations.

In order to reflect both our momentum and new offerings as a full service environmental consulting and management company, Quest changed its name from Quest Recycling to Quest Resource Management Group in 2012. In addition to recycling services, Quest offers clients sustainability solutions such as LEED® certification project management, energy modeling and carbon footprint reporting. Since acquiring Sustainable Partners in April 2012, Quest has completed five LEED® certification projects including two international projects in Canada and Mexico. Quest’s commitment to participating in effective and responsible environmental solutions has created a 360° sustainability effort that is becoming the new standard for business.

In 2012, Quests’ success generated substantial recognition including:

• BusinessoftheYear,CityofFriscoChamberofCommerce

• #6–SouthernMethodistUniversity’s100Fastest-growing,privatelyheld,Dallascompanies

• #34–WasteandRecyclingNews–TopRecyclingCompanies

• #928–Inc.magazine–TopFastestGrowingCompanies

• #8–Inc.magazine–Top100EnvironmentalServicesCompanies

• 2012SupplierSustainabilityAward,AT&T

Quest’s growth and success over the last year exemplifies the hard work and dedication our employees have put into ensuringeachclientreceivesthebestpossibleservicefortheirrecyclingandsustainabilityneeds.Thislevelofcommitmentisrecognizedbyourclientsandpartnerswitheachcompletedservicecall,reportorsiteaudit–makingusaleaderintheindustry.

BrianDick

Chief Executive OfficerQuest Resource Management Groupwww.QuestRMG.com

QUEST: A YEAR IN REVIEW

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QUEST 2012 SUSTAINABILITY REPORT

“61% of companies that have changed their business model and have sustainability as a permanent fixture in their manage-ment agenda say they have added profit from sustainability.”

People. Profit. Planet.

Customers, investors, financial institutions, employees, communities as well as other entities all have growing expectations forcompaniestoexamineandaddressthebroaderimpactstheirbusinesseshaveontheenvironmentandcommunity.Tothatend,Questisdedicatedtoembodyingsustainability.Werecognizethatreducingtheenvironmentalimpactofourownoperations is an important part of the value that we deliver to our customers.

Doingtherightthingfortheenvironmentandsocietymakesgoodbusinesssense.ArecentMITSloanManagementReviewreport uncovered that 61% of companies that have changed their business model and have sustainability as a permanent fixture in their management agenda say they have added profit from sustainability.I

I MIT Sloan Management Review and The Boston Consulting Group, The Innovation Bottom Line – How companies that sustainability as both a necessity and an opportunity, and change their business models in response, are finding success.

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Balancedgrowth.Injustfiveshortyears,Questhasexperiencedconsiderablegrowthascompany.From2008to2011,thecompanyhasgrownby349%.

Atestamenttothisgrowth,QuestResourceManagementGroupwasrankedNumber9282inInc.Magazine’ssixthannual500|5,000listofthefastinggrowingprivatelyownedcompaniesintheU.S.Inc.Magazinerankscompaniesbypercentgrowthofrevenueoverathreeyearperiod.Revenuesfrom2008and2011wereusedtocalculatethisyear’s list.

InadditiontorankingNumber928inthenation,QuestrankedNumber33intheDallasareaandNumber8intheEnvironmental Services Industry.2

Inaddition to revenuegrowth,Questhasadded47new jobs in the last threeyears.“The rapidgrowthofourcompanyistheproductofourteamandthequalityserviceandprogramsweprovideourclients,”QuestCEOBrianDicksaid.“ThismilestoneforQuestistestamenttothehardworkingandpassionatestaffwehavehereandthetrust our clients have given us to lead and manage their sustainability programs.”

Withsuchrapidgrowthcomestheincreasedneedforfinancialandenvironmentalresources.However,webelievethat growth and the need for resources can be balanced through strategic planning.

2 http://www.inc.com/profile/quest-resource-management-group

Quest pledged to reduce carbon utility footprint by 10%

Quest implemented desk-side recycling and trash bins at each employee’s desk.

In 2012, Quest implemented a written sustainable purchasing policy establishing guiding principles for the purchase of environmentally preferable products and materials – when economically feasible.

As standard business practice, Quest team members are encouraged to save documents electronically versus printing.

Quest tracks and analyzes all customer-related air travel mileage andassociatedemissionsutilizingtrackingsoftware.

Utilizingtrackingsoftware,Questtracksandanalyzesallcustomer-relatedautomobile mileage and associated emissions.

Quest encourages the use of public transportation and carpooling, when feasible, as alternative commuting options.

QUEST 2012 SUSTAINABILITY REPORT

Electric Utility Performance

Waste Diversion

Environmental Purchasing

Printing

Customer Travel- Air

Customer Travel- Auto

Employee Commuting

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Waste

In the face of continued growth, Quest pledged to reduce its carbon utility footprint

by10%.Measurementsweretrackedandcomparedto2011consumption.The

company utilizes several energy conservation initiatives including occupancy

sensors,daylighting,EnergyStar-ratedITequipmentaswellasothers.

Inaddition,Questtracksandreportsitsannualoperations’GHGemissions with

the Carbon Disclosure Project.

Energy

2012 QUEST SUSTAINABILITY REPORT

In addition to helping clients divert

millions of pounds from area landfills,

Quest implemented an internal waste

reduction program in 2012. As part of

the program, Quest implemented desk-

side recycling and trash bins at each

employee’s desk. By providing an easy-

to-access collection point, employees can

properly dispose of trash and recycling

without having to leave their area of work.

In addition to desk-side bins, centralized

and well-marked collection bins have

been strategically placed at opposite ends

of the Quest space. Program initiatives

also include waste diversion from area

landfills of any used batteries, electronic

waste and toner cartridges.

2011 2012Electricity usage (kWh) 292,191 267,317

167.23 152.993.89 2.51

35.48% decrease

Electricity usage emissions1 (MtCO2e)

Emissions per full time employee (MtCO2e)

Comparison to last year1 Methodology- United States Environmental Protection Agency: Energy Star Portfolio Manager

Goal: 10% Reduction

2011 2012

Landfilled waste emissions2 (MtCO2e)

Comparison to last year

Landfilled waste emissions per full time employee (MtCO2e)

Landfilled waste (tons) 2.02 2.36

1.98 2.31

.046 .03817.39% decrease

2 Methodology- U.S. Environmental Protection Agency: Waste Reduction Model Emissions Factors

Goal: 12% Reduction

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In 2012, Quest implemented a written sustainable purchasing policy establishing

guiding principles for the purchase of environmentally preferable products and

materials – when economically feasible.

Examples of sustainable office supplies include; post-consumer/post-industrial

material; rapidly renewable materials (e.g., bamboo, cotton, cork, wool); materials

harvested and extracted and processed within 500 miles of the facility; Forest

Stewardship Council (FSC)-certified paper products; and rechargeable batteries.

Quest exclusively purchases 100% recycled copy paper.

Environmental Purchasing

Some aspects of our business operations require more printing than

others. As standard business practice, Quest team members are

encouraged to save documents electronically versus printing. When

printingisabsoluteynecessary,employeesutilizedouble-sidedprinting.

As a company, Quest is exploring further opportunities to reduce our

overall printing footprint – and the associated emissions.

Printed pages (pages)

2011 2012

Printed pages emissions per full time employee

Comparison to last year

Printed pages emissions

233,760 261,249

4.44 4.970.07 0.08

14.28% increaseMehodology- Internal Tracking

Goal: 10% Reduction

Environmentally Preferable Product (EPP) Cost

2011 2012

Average EPP Purchases

EPPper full time employee

Comparison to last year

$4,864 $8,156

$113.11 $159.1329% 54%25% increase

Goal: Increase by 20%

Printing

2012 QUEST SUSTAINABILITY REPORT

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Whenairtransportationisrequiredfor

business travel, Quest team members

are encouraged to take advantage

of non-stop flights, when available.

My minimizing layovers, Quest team

members are contributing to reduced

greenhouseemissions.Whenfeasible,

Quest team members also travel

together. Doing so helps to further

reduce carbon emissions. Quest tracks

and analyzes all customer-related

air travel mileage and associated

emissionsutilizingtrackingsoftware.

Customer Travel- Air

When travelling for business, Quest

team members are encouraged to

utilize public transportation options,

when available. In the event that

those options are not available, hybrid

and low emitting transportation are

recommended when renting a vehicle

to travel to and from the customer site.

When feasible, Quest team members

also travel together using the above

vehicle transportation options. Doing

so helps to further rreduce carbon

emissions. Utilizingtrackingsoftware,

Questtracksandanalyzesallcustomer-

related automobile mileage and

associated emissions.

2011 2012

Emissions per full time employee (MtCO2e)

Comparison to last year

Customer travel- Air emissions3 (MtCO2e)

³Methodology – TerraPass Carbon Footprint Calculator

Customer travel- Air (miles) 256,191 341,285103 70.42.40 1.11

53.75% decrease

Goal: 10% Reduction

2011 2012

Emissions per full time employee (MtCO2e)

Comparison to last year

Customer travel- Air emissions4 (MtCO2e)

Customer travel- Auto (miles) 56,247 77,10528.60 39.920.66 0.66

No change4Methodology- U.S. EPA: Greenhouse gas emissions from typical passenger vehicle- Dec 2011

Goal: 10% Reduction

Customer Travel- Auto

2012 QUEST SUSTAINABILITY REPORT

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Quest is located in Frisco, Texas a suburb located Northof downtown Dallas. Quest encourages the use of public transportation and carpooling, when feasible, as alternative commuting options. Doing so reduces commute costs, traffic and air pollution.

Thecompanyrecognizesthattrafficcongestioncontributestoair pollution and energy waste. Alternatives to commuting to work alone benefit both employees and the environment.

Employee Commuting

2011 2012

Emissions per full time employee (MtCO2e)

Comparison to last year

Employee commuting mileage emissions4 (MtCO2e)

Employee commuting (miles) 231,948 315,350

107.85 146.642.51 2.41

3.98% decrease4 Methodology- U.S. Environmental Protection Agency: Greenhouse gas emissions from typical passenger vehicle- Dec 2011

2012 QUEST SUSTAINABILITY REPORT

ThecorporatesustainabilityprogramatQuestbeganwiththeimplentationofaninternalgreenteam.Thegreenteamincludesrepresentativesfromeachbusinessdivision,includingcorporatemanagement.Green team members met and immediately began evaluating current business practices and identify-ingareaswhereimprovementwasneeded.Theybalancedanumberofproposedinitiativesusingtheframework of the triple bottom line - Environmental Stewardship, Economic Prosperity, and Social Re-sponsibility.

Thegreenteamnotonlysetcompanysustainability goals, and performed internal waste audits, but also encouraged participation from all employees, as well as served as a resource for any questions about the Quest’s corporate sustainability program.

The Quest “Green Team”

The 28.75% reduction in total emissions per full time Quest employee, equates to the CO2 emissions from over 18,500 gallons of gasoline consumed

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NEWS

SOCIAL

Communication and Community Involvement

Employee CommunicationEffective communication, no matter what the subject, is both an ongoing challenge and potential productiv-ity booster within any organization.Takingthetimetocommunicatewithemployees helps boost morale, retain talent and increases productivity – all of which positively impact the bottom line.

In an effort to effectively communicate internally, Quest rolled out a monthly e-newsletter beginning in August.

In addition to important company news, each newsletter updates em-ployees on sustainability initiatives andprogress. For example, Septem-ber’s newsletter educated employees on what a carbon footprint is, why it is important to monitor and ways to re-duce our footprint as a company.

Community InvolvementQuest takes pride in being an ac-tive participant in the local commu-nity. Wehaveestablishedongoingcommunity partnerships with local charityorganizations.Forexample,Quest donated approximately 80pounds of food and household items to the Frisco Family Services FoodPantyduringaJulydrive. ThroughourpartnershipwithFFS,localfami-lies in need will receive these much needed items. DuringFriscoFam-ily Services’ Back to School SupplyDrive, Quest employees donated 160 school supply items, exceeding the company’s collection goal.

Social MediaIn August, Quest hired a dedicated Marketing Communication Specialist tasked with numerous sustainability communication initiatives – both in-ternal and external. Based on theirefforts, Quest now has a digital pres-ence on various social media websites as well as a company blog.

STEWARD

2012 QUEST SUSTAINABILITY REPORT

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Overall Metrics: MtCO2e

Total Scope 2 emissions (MtCO2e)

Total Scope 1 emissions (MtCO2e)

Total Scope 3 emissions (MtCO2e)

Total emissions (MtCO2e)

Total emissions per full time employee (MtCO2e)

Comparison to last year (per FTE)

4.44 4.97

167.23 152.99

240.98 259.27

413 417.239.60 6.8428.75% Decrease

2011 2012

2012 QUEST SUSTAINABILITY REPORT

In just five short years, Quest has experi-enced considerable growth as company. From2008to2011,ourcompanyhasgrownby over 300%. With such rapid growthcomes the increased need for both financial and environmental resources. We believethat growth can be balanced through stra-tegicsustainabilityplanning.Werecognizethat reducing the environmental impact of our own operations not only makes good business sense, but benefits our community.

Since 2011, Quest has tracked carbon emis-sions associated with conducting daily busi-ness operations. Progress towards reduc-tiongoalsismonitoredmonthly.Beginning

in 2012, Quest made the strategic business decision to purchase renewable energy and carbon offsets equivalent to 100% of the company’s 2012 carbon emissions. We’vepurchased Green-e certified renewable en-ergy credits (offsetting 2012 electricity con-sumption) as well as Climate Action Reserve certified carbon offsets (offsetting all other emissions generating business operations).

As a result of the purchased offsets, Quest operated in 2012 as a carbon neutral busi-ness.

A Carbon Neutral Company

Total emissions (MtCO2e) 417.23

Green-e certified renewable energy credits

Climate Action Reserve Certified Carbon Offset 152.99 264.24

Debits Credits

I am very proud of the accomplishments of our Quest “green team” and their efforts to make our

company more sustainable. We believe that we must also be good stewards of the environment

as we help other companies achieve their goals. We know it’s not easy, but progress towards

these goals and tracking is the key to success. We are happy about our progress but not

satisfied, and will continue to improve each year.

6175 MAIN STREET SUITE 420 | FRISCO, TX 75034 | OFFICE : (972) 464-0004 | FAX : (972) 464-0015WWW.QUESTRMG.COM