SCHN 2017 Proxy Statement

Proxy Summary Sustainability Report Schnitzer is a leader in the global recycling industry. Our automotive and metals recycling facilities promote sustainability by processing scrap metals for reuse by steel mills and other manufacturers globally, our steel mill produces finished products from recycled metals, and our auto facilities sell millions of parts from end-of-life vehicles. Steel, our largest traded material, is the world’s number one most recycled material. Using recycled metals in steel manufacturing saves up to 65% in primary energy input, reduces water use up to 91%, and generates up to 92% less waste compared to newly mined ore. As a leader in the recycling industry for almost 110 years, sustainability is in our DNA. It is the reason we embed in our processes a strong focus on environmentally sound practices, employee health and safety, ethics and compliance, and community partnerships. We view our commitment to sustainable business practices and further integration of sustainability into our business as key components of our long-term strategy. In order for us to further develop our sustainability strategy and identify levers and approaches to improve our performance, in fiscal 2017 we appointed a Vice President, Chief Sustainability Officer as a direct report to the CEO. In August 2017, we issued our third annual sustainability report covering our fiscal 2016. By every measure, we continued to show year-over-year improvement in key resource and safety metrics. We lowered our water usage, energy consumption, and carbon emissions. These Key Performance Indicators (KPIs) have been externally verified and assured for accuracy and materiality. We also diverted more waste from landfills both in terms of reducing our internally generated waste and by recycling higher volumes of scrap metal. Our commitment to safety is evident as 87% of our facilities experienced zero lost time due to injuries in fiscal 2016. Here are other KPI results for fiscal 2016: 15% reduction in water use 11% decline in total energy use 8% reduction in carbon dioxide equivalent emissions/ferrous ton 6% reduction in landfilled waste per ferrous ton 86% of purchased electricity from renewable sources Schnitzer believes our success is intertwined with the success of the communities in which we operate. Our charitable foundation, Recycling for a Better Tomorrow , has been supporting communities for eight years now through disaster relief and our food bank donation program. Some examples of our active engagement with our communities include gun destruction for the city of Boston, participating in the national Fishing for Energy Initiative (recycling fishing gear recovered from ocean debris), and employee-led cleanup efforts for several cities in our geographical footprint during the globally recognized Earth Day. In 2017, for the third consecutive year, Schnitzer was named a World’s Most Ethical Company by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices. Representing endorsements of our commitment to ethical business practices, we also, again, earned the Ethics Inside © Certification and Anti-Bribery Program Verification. To view our latest Sustainability Report, please visit: http://www.schnitzersteel.com/sustainability_report.aspx. 10 | Notice of Annual Meeting of Shareholders and 2017 Proxy Statement