ASTEC INDUSTRIES INC

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11 Astec Industries, Inc. | Notice of Annual Meeting and Proxy Statement 2024

fashion is incentivized through our annual incentive program, which is partially focused on this leading safety metric.

Our Company aspires to reduce its lost time and recordable injuries each year.

In 2023, we had zero recordable injuries at five of our manufacturing sites. In 2023, we experienced a 35% decrease in our Recordable Incident Rate to 1.27 compared to 1.96 in 2022. We have worked diligently to continually assess safety risks and address issues before accidents happen. Additionally, we have worked to simplify our communication style and methodology, focusing in on picture-based communications where possible and making messaging digestible within 30 seconds or less for numerous safety topics. These efforts, coupled with our constant focus on accountability, standardization of safety policies, and continuing education, have been instrumental in reducing our overall injury rates.

Talent Development, Diversity, Equity and Inclusion

Our key talent philosophy is to develop talent from within and supplement with external hires. This approach has yielded a deep understanding among our employee base of our business, products, and customers, while adding new employees and ideas in support of our continuous improvement mindset. Our talent acquisition team uses internal and external resources to recruit highly skilled and talented workers, and we encourage employee referrals for open positions.

In 2023, we further enhanced the framework we call Career Journeys, which provides common job profiles and career paths for employees to navigate their growth and development.

We provide all employees with a wide range of professional development experiences, both formal and informal, at all stages in their careers. In addition, talent development and succession planning for critical roles is a cornerstone of our talent program. Development plans are created and monitored for critical roles to ensure progress is made along the established timelines. In 2023, we rolled out leadership development training to supervisors and managers globally.

One of our core values — Respect — reflects the behavior we strive to include in every aspect of the way we conduct business. We recognize that our best performance comes when our teams are diverse and inclusive. We continue to define our diversity, equity and inclusion strategy. These efforts touch all levels of the Company, including our Board.

We continue to listen to our employees through our Voice of OneASTEC survey. Throughout the year, we focused on the three main areas of opportunity — Communication, Performance Management, and Change Management.

Overseeing Employee Ethical Standards and Adherence

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As it relates to customers, investors, suppliers and partners, the Company is dedicated to conducting business with integrity and responsibility for the greater good. We promote honest and ethical conduct, compliance with applicable government regulations and accountability by all of our directors, officers and employees. When considering an acquisition or partnership, the Company embeds questions specific to human capital management within its due diligence approach. These questions are in the areas of culture, equal employment opportunity, compliance with governing bodies, ethics and employee benefits. We ask these questions in an effort to ensure that the acquisition or partnership candidate is a positive cultural fit and to minimize any risk when assessing the acquisition or partnership candidate. In addition, we undertake the following efforts in this arena:

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Astec Global Code of Conduct and Ethics (“Code of Ethics”), available at https://astecindustries.com/legal/corporate-code-of-conduct.html sets forth our expectations of our employees, officers, directors and other stakeholders in respect of dealing fairly and honestly with our stakeholders: shareholders, customers, suppliers, competitors and employees. All of us are expected to behave in an ethical manner and to not take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair dealing practice. Our CEO, CFO, and other senior financial officers, including site controllers, are expected to comply with additional standards of conduct that are listed under the section of the Code of Ethics entitled “Supplemental Standards for Chief Executive Officer and Other Senior Financial Officers.”​

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Anonymous employee hotline for reporting possible violations of Code of Ethics is administered by an outside vendor. Telephone operators for this compliance hotline have been trained to receive the calls and generate a report to be sent to the Chief Compliance Officer of the Company.

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Mandatory attestation, at hire and annually, to the Code of Ethics from all employees.

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Supplier Code of Conduct

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Only suppliers who comply with the expectations detailed in our Core Values, Global Code of Business Conduct and Ethics, Conflict Minerals Policy, California Transparency in Supply Chain Act and contract terms and conditions will be permitted to supply materials or services to Astec. Astec verifies its supply chain through the supplier onboarding and contracting process and under our Conflict Minerals program. As part of those programs, our suppliers are expected to respect all individuals and promote the core values of dignity and honor in their operations. This includes zero tolerance for human trafficking and illegal labor practices in the supply chain. Those organizations that do not follow our rigorous standards will not be permitted to do business with us. Our Supplier Code of Conduct is available at https://www.astecindustries.com/esg/.

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