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Polaris Together Is Geared for Good

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Polaris Together Is Geared for Good POLARIS TOGETHER IS GEARED FOR GOOD 2018 CORPORATE RESPONSIBILITY REPORT INTRODUCTION 2 INTRODUCTION For 65 years, Polaris has been driven by a desire to make a positive impact on every individual our business touches — from helping people enjoy the outdoors for work and play, to being a great place to build a career, to serving as an ethical and valued community member everywhere in the world we do business. Environmental stewardship is also important for preserving the riding lifestyle we all know and love. The Polaris Geared for Good framework signals our most focused effort yet to do all we can to elevate industries, communities and quality of life for everyone and everything within our corporate ecosystem. 3 INTRODUCTION A B C D Executive Leadership Team, left to right: James P. Williams Pamela L. Kermisch A. The Polaris Executive Leadership Team. Sr. Vice President and Chief Human Resources Officer Chief Customer Engagement and Growth Officer Steven D. Menneto B. Polaris GEM providing green transportation President of Motorcycles Scott W. Wine Christopher G. Wolf during the Super Bowl 52. Chairman and Chief Executive Officer President of Snowmobiles Michael D. Dougherty C. Building engines in our Osceola, WI plant. President of International Matthew J. Emmerich Michael F. Donoughe Vice President and Chief Information Officer Sr. Vice President and Chief Technical Officer D. 2018 Vets Ride to Sturgis with Indian Motorcycle. Lucy Clark Dougherty Sr. Vice President, General Counsel, Michael T. Speetzen Robert P. Mack Compliance Officer and Secretary Executive Vice President of Finance Sr. Vice President of Corporate Development and Chief Financial Officer and Strategy, and President of Boats/Global Todd A. Gross Adjacent Markets Vice President of Product Quality & Safety Christopher S. Musso President of Off-Road Vehicles Kenneth J. Pucel Not Pictured: Craig A. Scanlon Executive Vice President of Operations, Stephen L. Eastman President of Transamerican Auto Parts Engineering and Lean President of Aftermarket/Parts, Garments & Accessories Since our founding in 1954, Polaris has been Geared for Good. This good comes to life through our products, our practices, our partnerships, and our people. Through efforts big and small we support our values and shape Polaris, creating products, experiences, and a corporate culture we can be proud of. Under the Geared for Good framework, our corporate stewardship is encouraging employees to share ideas for improving processes, safety focused on an unwavering commitment to our employees, quality and and quality are cornerstones of Polaris culture. safety, environmental sustainability, and the communities in which we work, live, and ride. We stand behind our Employees in other ways as well. At Polaris we are proud to foster a welcoming, respectful, inclusive and engaging workplace We are passionate about creating products that enable riders to enjoy the while providing ample resources and opportunities for our employees to outdoors and build experiences they will never forget. Our connection to achieve their long-term career goals. the outdoors extends from the trails, lakes and mountains we ride on to the manufacturing facilities where our vehicles are produced, and this Across the globe, Polaris strives to be a good neighbor. From promoting linkage underlies our commitment to achieve the following Environmental safe and responsible riding to aiding veterans to various charitable Sustainability goals: donations, supporting our local Communities is a natural part of our culture. In addition to our corporate giving we support our employees 5% reduction in greenhouse gas generation by 2022 in their charitable efforts through designated volunteer time off and our Dollars for Doers programs. 5% improvement in overall energy efficiency by 2022 Our Geared for Good framework serves as a guide for us to create value 15% of energy portfolio driven by renewable energy by 2022 and best serve the interests and needs of our stakeholders. We look forward to the future – building upon our strong foundation and continuing Our Safety and Quality efforts encompass everything from designing to create impact. high quality products to delivering safe working environments for our employees. From educational resources on safe riding practices to Respectfully, Scott W. Wine Chairman and Chief Executive Officer 4 TABLE OF CONTENTS Table of Contents Introduction 02 Governance and Ethics 08 Executing Environmental Responsibility 12 Reducing Our Impact 13 Innovative Products and Partnerships 19 Fostering Safety and Quality 22 Employee Safety 23 Products and Features 26 Cultivating Company Culture 30 Strengthening Our Communities 38 Proudly Honoring and Supporting the U.S. Military 45 5 INTRODUCTION Polaris Industries At a Glance Established Portfolio Motorcycles Off-Road Vehicles / 1954 % Snowmobiles 9 Adjacent Markets 7% 64% Employees 15% Aftermarket Approximately 5% 13,000 Boats Worldwide and more than 9,000 people in the United States, Products which includes nearly 6,000 manufacturing workers. Side-by-Side Vehicles (SxS) Moto-Roadsters Mid-Size and Heavyweight Motorcycles Ultra-Light Tactical Vehicles Headquarters Snowmobiles Jeep and Truck Aftermarket Accessories Boats Light-Duty Haulers Parts, Garments and Accessories (PG&A) People Movers Medina All-Terrain Vehicles (ATV) Personal Quadricycles Minnesota, USA Commercial Utility Vehicles (UTV) 2018 Sales NYSE Symbol U.S. Network Support a national dealer network $ with 2,000+ dealers across all 6.1 Billion PII 50 states and over 20,000 dealer employees. 6 INTRODUCTION Our ORV market share is bigger than our next three competitors combined Polaris was named Polaris employees are one of to the Fortune 500 our top five shareholders thanks list in 2018 to the company´s ESOP Polaris has connection in all 50 states Polaris Polaris was Suppliers recognized as one Dealers of America's best large employers by Forbes in 2018 Polaris holds over 1,000 Roseau, MN Founded Population - 2,800 patents worldwide in Roseau, MN, where 514 Off-Road we still 186 Other maintain our Commercial, 166 largest U.S. Government & Military operations 111 Snowmobiles to-date 111 Motorcycle 7 GOVERNANCE AND ETHICS 8 GOVERNANCE AND ETHICS A B C D E A. Putting on the finishing touches for Indian Motorcycle builds in Spirit Lake, IA. B. New Polaris Snowmobiles rolling down the line in Roseau, MN. C. Taking a sunset cruise on a Bennington Pontoon. D. All smiles while working on the line in Roseau, MN. E. Living the RZR Life on the trail. It’s not about winning at Polaris. It’s about winning the right way — guided by our longstanding core principle of Safety and Ethics Always. Every day, across all functions of the company, we live out this concept by staying committed to conducting our business in an ethical and legal manner. Corporate Responsibility Materiality Assessment Polaris Code of Conduct Committee BSR is a global nonprofit organization Our Code of Business Conduct We are driven by Innovation, that works with its network of more and Ethics summarizes the ethical Integrity and Accountability, and than 250 member companies and and legal standards that we we continually tune to be good other partners to build a just and expect from all Polaris employees, stewards for the industry, our sustainable world. business partners and board riders and the outdoors. This members. Polaris, through the CRC, has vision for Geared for Good guided become a BSR member. Beyond To help us meet our goals and us in establishing our Corporate the benefits of the membership, uphold our reputation as an Responsibility Committee (CRC). Polaris has also engaged BSR to ethical corporate citizen, every The Committee’s purpose is to lead us through a formal Materiality one of us must rely on the Code advise the company on matters Assessment in 2019. to drive our behavior, through of significance to the company celebratory and challenging times This assessment uses robust and its stakeholders concerning alike. We offer multiple reporting methodologies to identify key corporate social responsibility mechanisms in the rare event a priorities for the business and and sustainability, and to assist violation is witnessed including stakeholders, leadership opportuni- the company’s Board of Directors anonymous reporting through the ties and strategic implications. The and Senior Management Team Ethics Point Hotline, administered purpose of this effort is to inform in addressing the impact of by an independent third party and Polaris sustainability strategy and these matters on the company’s available to our global employee goals, while working to align them business, strategies, operations, base 24 hours a day, 365 days a to strategic, business objectives. performance and reputation. year. View Corporate Responsibility View Polaris Code of Conduct > Committee Charter > 9 GOVERNANCE AND ETHICS Corporate Governance Highlights Our commitment to good corporate governance stems from our belief that a strong governance framework creates long-term value for our shareholders, supports partnership with our dealers, offers opportunity for our employees, and builds trust in Polaris and its brands for consumers. Board Independence and Leadership Board Diversity 9/10 30% Directors Independent Lead Female Diverse and Independent Director with Directors Relevant Skill Set Robust Authority Board Refreshment 4 Directors 6 Years 57 Years in the past 4 years Average Tenure Average Age We are not only Supplier Code of Conduct by demanding transparency
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