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To Lead As a Strong Corporate Citizen

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To Lead As a Strong Corporate Citizen DR IV EN TO LEAD AS A STRONG CORPORATE CITIZEN 2017 STEWARDSHIP REPORT INTRODUCTION CORPORATE STEWARDSHIP: Essential to All We Do—and the Right Thing to Do e are proud of the millions of vehicles • 5% improvement in overall energy efficiency Supporting the Communities where we live, Polaris made in our first six decades, work, and ride is ingrained in our culture. From Wbut it is the experiences we create, the • 15% of energy portfolio driven by renewable donating millions of dollars to various charities passion we inspire, the lives that we enhance energy and encouraging safe and responsible outdoor and the good that we do that defines and activity, to supporting a wide variety of programs motivates us. Our focus on corporate stewardship for veterans, Polaris strives to ensure that each of is based on an unwavering commitment to Safety and Quality considers everything from our worldwide locations give back and become a embody safety and ethics in everything we do, designing and building high quality products valued neighbor. while making a difference in the lives of our for our customers, to fostering safe working customers, employees, local communities and environments for our employees. Our focus is on Our corporate stewardship strategy helps chart the environment. safe operations in every Polaris location, and we Polaris’ course from a moral perspective, but it have set out to: also provides a competitive advantage by creating Between the nature of our products and how they • Achieve and maintain a Total Recordable value and serving the best interests of every are used, we have a longstanding commitment Incident Rate of at or less than 1.2 by 2022 stakeholder. We look forward to continuing our to the outdoor lifestyle we all know and love. journey for decades to come. We believe in introducing people to the outdoor experience, so that many, not just a few, can We seek to serve our thousands of hardworking enjoy the natural world around us. Moreover, Employees in other ways as well. Hiring and Respectfully, we minimize the environmental impact of our developing the Best Team in Powersports has manufacturing footprint on the great outdoors. In always been one of Polaris’ greatest strengths, support of these commitments, we have set forth and we believe in creating a welcoming, three measurable and time-bound Environmental respectful, inclusive and engaging workplace that Sustainability goals. By 2022, we are striving to offers the tools and opportunities our employees achieve: need to experience rewarding long-term careers. Scott W. Wine • 5% reduction in greenhouse gas generation Chairman and Chief Executive Officer 2 TABLE OF CONTENTS Organizational Profile 4 Governance and Ethics 6 Lessening Our Environmental Impact 8 Reducing Greenhouse Gas Emissions 9 Improved Energy Efficiency 10 More Renewable Energy in Portfolio 12 Producing Less Waste 13 Innovative Products and Partnerships 15 Safety and Quality 20 Supporting Our Team 28 Strengthening Our Communities 32 3 ORGANIZATIONAL PROFILE VISION Fuel the passion of riders, workers and outdoor enthusiasts around the world by delivering innovative, high-quality vehicles, products, services and experiences that enrich their lives. 4 OUR MAJOR WORLDWIDE FACILITES GLOBAL MANUFACTURING 01 04 UNITED STATES ASIA EUROPE 03 MEXICO 02 01 UNITED STATES 02 MEXICO 04 ASIA Huntsville, Alabama Spirit Lake, Iowa Monterrey, Mexico Shanghai, China SxS, Slingshot Motorcycles SxS, Engines Hammerhead Anaheim, California Roseau, Minnesota Taylor-Dunn, GEM Snow, ATV, MRZR 03 EUROPE Banning, California Cuyahoga Falls, Ohio Aix-les-Bains, France Transamerican Auto Parts Kolpin Aixam Chula Vista, California Spearfish, South Dakota Bourran, France Transamerican Auto Parts, Pro Armor Motorcycle Paint Goupil Sandpoint, Idaho Osceola, Wisconsin Chanas, France Timbersled Engines Aixam Opole, Poland ATV, SxS 5 GOVERNANCE AND ETHICS DEMANDING THE BEST At Polaris, we are focused on winning the right way, every day. This belief is central to our guiding principle of Safety and Ethics Always. This principle applies to every corner of our company – no matter an employee’s role or area of our business. 6 e aim to hold ourselves — and those who support our business — to the highest ethical standards, and we are committed to Wpromoting and practicing ethical and legal business conduct. Polaris Code of Conduct As it has in the past, the Code will continue to Conflict minerals include tantalum, tin, tungsten direct our approach to the job and drive behaviors and gold. We work with our suppliers to increase The Code of Business Conduct and Ethics that set the stage for achieving our goals. transparency regarding the origin of minerals summarizes the most important standards that contained in our products, requiring each of we expect from ourselves and our business View our Code of Conduct them to undertake reasonable due diligence to partners in order to further this principle. identify any products supplied to us that contain Supplier Code of Conduct conflict minerals sourced from the DRC and The Code applies to all employees, Board nine adjoining countries. Whenever this is the Suppliers are a vital and valued extension of members, and anyone contracted on our behalf case, the mines and smelters identified must Polaris. That is why our focus on ethics, integrity around the world. As we pursue our goal to be certified as “conflict free” by an independent and responsible business operations extends to be the global leader in “Powersports Plus,” we third party for Polaris to continue sourcing from our supply base as well. rely on the Code to provide a consistent basis that supplier. on which to conduct our business in a legal and We expect all suppliers to share our commitment ethical manner. The policies set forth in the Code and conduct business in a socially and View our Conflict Minerals Policy clarify expectations for everyone, no matter the environmentally responsible manner. Our role or geographic location. Supplier Code of Conduct is aimed at promoting responsible business practices and standardizing UK Modern Slavery Act 2015 Polaris’ commitment to maintaining its reputation our expectations throughout our global supply as an ethical corporate citizen means acting chain. The U.K. Modern Slavery Act of 2015 requires responsibly, even during challenging times. companies carrying on business in the U.K. to To ensure that the company stays on the right View our Supplier Code of Conduct publish a statement describing steps taken to path, the Code provides multiple mechanisms ensure modern forms of slavery and human for reporting violations, including anonymous trafficking are not taking place in the company’s reporting options through our EthicsPoint Hotline. Conflict Minerals Policy business operations and supply chains. Available 24 hours a day and 365 days a year, EthicsPoint is managed by an independent third Since 2013, Polaris has supported the Read Polaris’ Modern Slavery Act Transparency party provider and is accessible to our global humanitarian goal to end violence and human Statement. employee base. rights violations in the Democratic Republic of Congo (DRC) through our Conflict Minerals Policy. 7 ENVIRONMENTAL RESPONSIBILITY REDUCING OUR IMPACT Polaris aims to fuel the passion of riders and outdoor enthusiasts across the globe. And to that end, we recognize the importance of using resources responsibly and supporting efforts to ensure that the incredible adventures our riders love are around for the riders of tomorrow. 8 uring 2017, we set three key measureable goals designed to improve our efficiency and reduce the environmental impact of our operations, which are outlined below. To get there, we have partnered with CustomerFirst Renewables, an organization to support Dour strategic energy efficiency efforts and help us to not only achieve but exceed the goals we have set out for ourselves. Our Environment, Health, Safety and Security Although much remains to do, we are facility with LED lighting. LED lighting systems team (EHSS) leverages an integrated continuously improving and adopting best provide numerous benefits including energy Environment, Health and Safety Management practices to support our goals and limit our efficiency, reduced energy costs, longer lifespan System designed to meet Polaris’s continually environmental footprint. and less heat production then traditional lighting evolving and dynamic business and operating systems. This change will reduce CO2 generation model. The system, which follows ISO by approximately 62 metric tons each year, methodology, supports the implementation of Commitment in Action: compared to the original lighting system. proactive sustainable business practices for the Bright Ideas at Taylor Dunn purpose of ensuring compliance with internal Taylor Dunn, a company acquired by Polaris in and external requirements, driving continuous 2016, was founded in 1949 and their facility has improvement, and supporting our strategy of run on conventional lighting since then. In 2017, becoming a leader in environmental, health and we replaced all 1,266 conventional lighting at the safety management. * Our environmental goals will be measured based on ten priority loca- tions (listed on page 11 of this report) that make up 90% of emissions and en- ergy consumption for our manufacturing and research & development facilities. 9 ENVIRONMENTAL RESPONSIBILITY Commitment in Action: DIRECT AND INDIRECT ENERGY CONSUMPTION Reducing Energy Use in Monterrey IN GIGAJOULES (GJ) Employees
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