DOING OUR PART TO MAKE A DIFFERENCE AROUND THE GLOBE

Genuine Parts Company 2019-2020 Corporate Sustainability Report

2019-2020 CORPORATE SUSTAINABILITY REPORT 1 TABLE OF CONTENTS

Leadership Letter...... 3 We Are GPC...... 4 Our Business...... 4 Our Stakeholders...... 4 2019-2020 Sustainability Highlights ...... 5 Our Guiding Principles...... 6 Sustainability...... 6 ABOUT THIS REPORT Corporate Governance...... 8 Genuine Parts Company (GPC) publishes a biennial Corporate Sustain- Business Ethics and Compliance...... 10 ability report. This report is prepared in accordance with the Sustainabil- Data Privacy and Cyber Security...... 10 ity Accounting Standards Board’s (SASB) “Multiline and Specialty People...... 11 Retailers and Distributors” sector standard. SASB-related information is Talent Management...... 11 found throughout this report and summarized in the SASB Index on page 23. Employee Engagement...... 13

Diversity and Inclusion...... 14 Unless otherwise indicated, the information presented in this report Employee Safety...... 16 covers the period of January 1 through December 31, 2019, including Supply Chain Responsibility and Human Rights...... 17 data from all business units owned by the Company during the period. Planet...... 18 Fleet Management and Transportation...... 18 Follow our sustainability initiatives and related news at www.genpt.com Energy and Emissions...... 19 Water and Effluents...... 20 FORWARD-LOOKING STATEMENTS Waste...... 20 All statements in this report that are not historical, including our sustainability Products and Services...... 21 plans and goals, the expected execution and effect of our sustainability Purpose...... 22 strategies and initiatives and the amounts and timing of their expected SASB Index...... 23 impact, constitute forward-looking statements that are based on current societal, market, competitive and regulatory expectations. These for- ward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions, known or unknown, which could cause actual results to vary materially. These statements speak only as of the date they are made and, except to the extent required by the law, Genuine Parts Company undertakes no obligation to update publicly any forward-looking statement included in this report, whether as a result of new information, future events, changes in assumptions or otherwise. Please see Genuine Parts Company’s latest Form 10-K and subsequent SEC filings for a discussion of risk factors as they relate to forward-looking statements.

2019-2020 CORPORATE SUSTAINABILITY REPORT 2 LEADERSHIP LETTER

TO OUR STAKEHOLDERS:

At GPC, we embrace our responsibility to innovate in ways that provide for our environment, our employees, and the communities in which we operate. While preparing and publishing this report, we all continue to be tested by an exceptionally challenging year.

In recent months, the COVID-19 of ensuring racial equality and + Taken steps to grow, develop pandemic has taken a toll on our fair treatment for all citizens. We and protect our talented way of life and, in far too many denounce racism and bigotry workforce as we pursue our cases, has robbed us of loved wherever it exists around the growth objectives and expand ones, friends and acquaintances. globe and support those who our product and service At GPC, we have seen the impact peacefully advance the ideals offerings. of COVID-19 firsthand. of inclusiveness, non-violence and equal treatment. + Carried on GPC’s legacy of The safety of our employees is a giving back by donating time, top priority, and we are taking Turning to our broader sustain- talent and treasure to commu- actions to keep them safe, ability initiatives, I am proud of nities and causes that make a including enhancing cleaning the progress we continue to difference. procedures, implementing make. For example, during screening protocols, providing 2019 and so far in 2020, I look forward to continuing our protective equipment, and we have: sustainability journey and implementing an emergency welcome feedback from all of employee relief fund to help those + Reduced the environmental our stakeholders on how we can employees impacted by footprint of our operations continue to make a meaningful COVID-19. through efforts to reduce difference. To share your ideas energy use and emissions, on how we can achieve further At the same time, we are also while increasing recycling progress toward our sustainabil- faced with the very different, opportunities across ity objectives, please contact us but equally urgent challenges the globe. at [email protected].

Paul Donahue Chairman and Chief Executive Officer

2019-2020 CORPORATE SUSTAINABILITY REPORT 3 WE ARE GPC

OUR BUSINESS OUR STAKEHOLDERS GPC BY THE Our stakeholders consist of many individu- Genuine Parts Company (GPC) is a service organization NUMBERS* als and groups across our value chain and engaged in the distribution of automotive replacement beyond who are touched by our activities. parts and industrial parts. HEADQUARTERS ATLANTA, To ensure strong and enduring relationships For 92 years, GPC’s commitment and reputation for GEORGIA, USA with all our constituents, we actively engage excellent service and quality products have made the COUNTRIES SERVED with internal and external stakeholder groups Company a critical partner in our customers’ success. 14 through a variety of channels to better under- stand their unique expectations and concerns. Headquartered in Atlanta, Georgia, we serve hundreds EMPLOYEES of thousands of customers from an extensive network ~ 50,000 Aligning our business practices with their of locations around the world. expectations helps us achieve our mission to 2019 REVENUES be a world-class service organization. $19.4B We strive to be:

GPC GLOBAL FOOTPRINT The REVENUE BY REGION* EMPLOYER of Choice A respected business COMMUNITY member LOCATIONS The 77% SUPPLIER 10,575 NORTH AMERICA 9% of Choice WAREHOUSES AUSTRALASIA 900 AN INVESTMENT DISTRIBUTION 14% of Choice FACILITIES EUROPE 174 A valued and preferred RETAIL (OWNED/INDEPENDENT) CUSTOMER 9,500 of choice

*As of June 30, 2020. 2019-2020 CORPORATE SUSTAINABILITY REPORT 4

COAL 27% OIL 1% GAS 36% NUCLEAR 19% HYDRO 8% BIOMASS 2% WIND 5% WE ARE GPC

2019-2020 SUSTAINABILITY HIGHLIGHTS

Maintained Established our Enhanced our HEALTH Enforced SUSTAINABLE BUSINESS ETHICS and first DIVERSITY and and WELLNESS SUPPLY CHAIN policies COMPLIANCE programs, INCLUSION committee, platform to promote and among our vendors and including ongoing designed to broaden advance the physical, continued to monitor their RECOGNIZED FOR SUSTAINABILITY enforcement and GPC’s business practices emotional and financial compliance with our social employee training. and strategy. goals of employees. supply chain expectations.

We are proud to have Gained EFFICIENCIES IN Reduced REDUCED ENVIRONMENTAL Recycled Motion Industries, been recognized by the TRANSPORTATION GREENHOUSE GAS IMPACTS FROM THOUSANDS OF TONS a GPC subsidiary, Metro Atlanta Chamber and FUEL MANAGEMENT EMISSIONS by OUR PRODUCTS by of waste through was honored with of Commerce. The E3 through route optimization, 5.3 percent while purchasing and using our comprehensive Honda North Award recognizes anti-idling policies and increasing global products that are reusable, waste recycling America’s 2020 companies, organiza- electronic monitoring. sales by 3.5 percent. recycled or recyclable. program. Indirect Procure- tions and individuals ment Award for working to conserve Sustainability metro Atlanta’s natural for its commitment resources, develop to corporate clean technologies to sustainability— enhance our economy social, ethical and and environment, environmental. support sustainable Donated time, talent and Reduced the Enhanced Supported employees in projects and initiatives treasure to PHILANTHROPIC number of WORKPLACE SAFETY need of accommodation and to collaborate on and COMMUNITY EFFORTS COMMUTING HOURS through the through EXTENDED solutions through such as United Way, American experienced by establishment and LEAVES OF ABSENCES university connections, Cancer Society, Starlight employees by providing implementation of and assisted those marketing and education. Children’s Foundation and flex scheduling policies and in hardship with other community and diversity and remote work procedures relating GRANTS AND OTHER initiatives around the world. protocols. to COVID-19. FORMS OF AID.

2019-2020 CORPORATE SUSTAINABILITY REPORT 5 WE ARE GPC

OUR GUIDING PRINCIPLES Responsible and ethical practices enhance the value of our business and our brand. That approach is central to our mission to sustain our workforce, support our community, and preserve and protect the environment. Our commitment to earnest and sound business practices has resulted in significant gains relating to our sustainability efforts, corporate governance structure, business ethics and com- pliance practices, and data security measures.

SUSTAINABILITY view of GPC’s sustainability ap- + Sustaining Our Workforce: At GPC, our approach to sustain- proach, progress, and future plans. keeping our diverse team ability balances the priorities of our members safe and secure. business with those of our stake- GPC’s Sustainability Ambassadors Derek B. Goshay holders to ensure we protect our + Sustaining Our Community: and Safety Council perform essential Vice President of Safety people, our communities, and our supporting and uplifting the functions designed to advance and Sustainability planet. It is this approach that communities we serve. sustainability throughout the allows us to be nimble in respond- organization. The Sustainability + Sustaining Our Environ- ing to environmental and social Ambassadors group, consisting of ment: working to positively concerns, and to respond to the Chief Human Resources Officer, impact our environment. market challenges as they emerge. VP of Compliance and Corporate Secretary, VP of Safety and Sustain- GPC’s Roadmap for Sustainability is a ability, Director or Risk Management, SUSTAINABILITY INITIATIVES comprehensive look at how we are Director of Community Relations, as Our sustainability mission outlines formalizing and reporting on our well as the Director of Safety, the primary objectives of our sustainability progress as an organi- Environmental, and OSHA, serves as sustainability efforts: zation, giving our employees a clear a formal, cross-functional

2019-2020 CORPORATE SUSTAINABILITY REPORT 6 WE ARE GPC

diverse corporate committee. the Council is currently overseeing ers, often with the involvement of The group is responsible for the a multi-year project focused on our senior leadership, to under- organization’s sustainability and enhancing workplace safety. stand their interests and concerns Environmental Social and Gover- regarding our sustainability efforts nance (ESG) practices, as well as STAKEHOLDER ENGAGEMENT and disclosure. Through use of the on-the-ground oversight of the Continued success for our sustain- Company bimonthly newsletter, ROADMAP FOR SUSTAINABILITY sustainability program. ability programs requires being Aspire, GPC educates and informs responsive to employees, inves- its employees on a wide range of GPC’s Roadmap for Sustainability is a comprehensive The Safety Council serves as an tors, suppliers, partners, communi- sustainable practices. look at how we are formalizing and reporting on our sustainability progress as an organization, giving our internal sustainability advisory ties and customers. It follows that employees a clear view of GPC’s sustainability group that works alongside we systematically incorporate LOOKING AHEAD approach, progress, and future plans. representatives from Human stakeholder feedback into the In the near term, we will continue to As our sustainability program continues to grow and Resources, Safety, Operations, and planning and ongoing manage- focus on further formalizing our evolve, we will continue to update the Roadmap to the Sustainability Ambassadors ment of our programs. We recently sustainability program and clearly illustrate our future initiatives and focus, which group to approve safety-related conducted a stakeholder prioritiza- ensuring ongoing communication will adapt from year to year to an ever changing and policies, sustainability initiatives, tion exercise and are currently with our stakeholders about evolving business environment. and communications. For example, engaging our external stakehold- sustainability and ESG issues.

2019-2020 CORPORATE SUSTAINABILITY REPORT 7 WE ARE GPC

Jennifer Ellis VP of Compliance and Corporate Secretary

CORPORATE GOVERNANCE The Board of Directors is committed to sound corporate governance. The Board of Directors exercises oversight of the Company to ensure that it is well-run and focused on delivering sustainable long-term value—value that ultimately benefits our shareholders and other stakeholders.

We believe that strong and effective Board of Directors has oversight Their feedback was an important corporate governance practices responsibility for GPC’s sustainabili- consideration in our decision to support our strategic, financial, and ty program and disclosure. Working incorporate SASB sector standards sustainability goals. The Corporate closely with relevant members of into this 2019-2020 Corporate Governance Guidelines adopted by our leadership team, the CNG Sustainability Report. our Board serve as a guide for Committee discusses ESG topics various corporate governance relevant to GPC business through- OUR BOARD matters. These Guidelines and the out the year. Our board includes a diverse group Charters for our Board committees of leaders with a wealth of experi- that describe their work in more detail Investors and shareholders’ perspec- ence in their respective fields. The can be found on the corporate tives inform GPC’s decision-making varied backgrounds, skills, and governance section of genpt.com. and help to guide our actions in experiences of our Board are a The Compensation, Nominating, and continuing to enhance our sustainability significant asset for the Company, Governance (CNG) Committee of our efforts and ESG disclosures. its leadership, and its stakeholders.

2019-2020 CORPORATE SUSTAINABILITY REPORT 8 WE ARE GPC

BOARD OF DIRECTORS

EXPERIENCE Elizabeth W.Richard “Betsy” Cox, CampPaul Jr. D. DonahueGary P. FayardP. Russell HardinJohn R. HolderDonna W. HylandJohn D. JohnsJean-JacquesRobert Lafont C. “Robin”Wendy Loudermilk, B. NeedhamE. Jenner Jr. Wood III

Finance/Accounting

Distribution/Supply Chain

Automotive

Government Regulatory To ensure effective and proper governance, Legal the Board, annually: CEO /Leadership + Reviews the Board’s leadership structure Technology + Reviews the experience, skills and characteris- tics required of Board members International

+ Conducts a self-evaluation to determine whether Public Co./Boards it and its committees are functioning effectively Independent

TENURE 5 5

2 41.7% 83% 62 25% 42% DIVERSE INDEPENDENT AVERAGE AGE FEMALE 5 YEARS OR LESS 5 out of 12 10 out of our 12 4 directors are in their 50s and 3 out of 12 Average board tenure 0-5 6-10 11+ directors are diverse* directors are independent 8 directors are in their 60s directors are women is 6-8 years YRS YRS YRS

*Gender, race/ethnicity, and/or nationality 2019-2020 CORPORATE SUSTAINABILITY REPORT 9 WE ARE GPC

BUSINESS ETHICS AND COMPLIANCE At GPC, we represent two distinct global busi- ness segments, and although we may work in various locations and support a diverse set of industries, we share a common goal – providing great service to our customers.

Our growth is the result of decades of hard work INTEGRITY and high levels of integri- AT WORK ty. We maintain the trust We believe in having we have earned with our a positive impact on stakeholders by consis- people and our tently conducting business world, so we set high with the highest standards standards for of ethical behavior and ourselves and our honesty. Our Code of business partners. In Conduct applies to all em- 2019, we updated the ployees across the world GPC Code of and represents our shared DATA PRIVACY AND CYBER SECURITY Conduct. The Code commitment to doing the We are committed to being good stewards and custodians of our stake- provides coverage right thing. We require holders’ data and are dedicated to ensuring appropriate controls are for all our operations employees to read and effective and align with current best practices. globally. acknowledge the Code of Conduct upon hire and Our Data Security Standards and cyber quarterly tabletop simulations to test the then at least every two comments or concerns security program provide the framework strength of our data security systems, years thereafter. anonymously, the Compa- for responsible collection, storage, and to practice and continually improve ny provides an Ethics transfer, use, and destruction of data. our incident response plan. ETHICS HOTLINE Hotline for employees to The cyber security program covers all We promote our open- report their concerns. GPC information, systems, data, and The cyber security program is overseen door policy and want Every employee world- media, and applies to all individuals with at the executive level by the Cyber SECURITY TRAINING employees to feel comfort- wide has access to the authorized access to GPC systems, Security Committee, which is comprised All GPC employees are able speaking up and anonymous reporting data, or network infrastructure. of the CEO, CFO, CHRO, CIO, CISO, GC required to complete sharing their concerns hotline and on-line and Corporate Secretary. The Audit Security Awareness and with management. Where submission for any We continuously monitor the Company’s Committee is responsible for this Phishing training employees wish to voice concerns they may have. network and infrastructure and conduct oversight at the board level. modules annually.

2019-2020 CORPORATE SUSTAINABILITY REPORT 10 PEOPLE

SUSTAINING OUR WORKFORCE At GPC, we are a global company with a rich blend of people, products and services coming together to make a difference in the lives of customers all over the world.

More than ever before, we rely on the skills of our talented and diverse workforce as we pursue our growth objectives and expand our product and service offerings. Although we may represent different business segments and work in various locations, we share the goal of providing great service to our customers. TALENT MANAGEMENT Our people are our most valuable asset and the At GPC, people don’t just have jobs; they have careers that span many years and satisfy their need greatest contributors to our success. As a for professional and personal growth. We believe in attracting, developing, and retaining talented result, we are committed to: employees so as to best serve our customers and communities.

+ Recruiting, retaining, and developing RECRUITMENT AND RETENTION new and existing talent, to help us and recent graduates. At GPC top talent We have designed our recruiting not only adapt, but better position Headquarters, for example, the robust practices to attract both qualified and ourselves as the employer of choice summer internship program spans + Offering resources and opportunities to diverse candidates who will help us for top talent. We also continued to over 16 departments and lasts from improve overall health and wellbeing continue our legacy of ingenuity, take a data-driven approach to mid-May to early August. The HQ + Listening to employee feedback innovation and integrity. In all areas assessing GPC’s talent needs in program has also grown significantly of recruitment and retention, we hopes of better understanding since its inception in 2016, having + Creating an inclusive culture in which adhere strongly to the principles of those qualifications necessary for expanded from five interns to more our dedicated employees can thrive equal employment opportunity and employee success. than 40 interns in 2019. + Providing a safe work environment affirmative action. and ensuring all members of the GPC DEVELOPING THE Within the U.S. Automotive Group, we team are properly trained in all In 2019, we hired our first Chief NEXT GENERATION have a dynamic Executive Manage- aspects of their work Transformation Officer, who oversees GPC and its businesses offer a variety ment Trainee (EMT) program that our transformation team that includes of opportunities for college students targets recent college graduates.

2019-2020 CORPORATE SUSTAINABILITY REPORT 11 PEOPLE

The EMT program is designed to offer of whom work in a branch location our Learning Management System high potential leaders the opportunity and complete a curriculum established (LMS), we offer a library of GPC to gain exposure to all areas of the with the help of the Power Transmission training content. All employees can NAPA business through a compre- Distribution Association (PTDA) that sharpen their knowledge and skills by hensive list of business processes, exposes each intern to the primary job completing courses on topics such as experiences and training that must be classifications found at each branch. leadership, safety, and communication. completed over the 18-month pro- In addition, interns recruited from Auburn gram. Each year, we typically launch or the University of Alabama fill We also offer in-person development two classes and graduate 30 EMTs. functional intern roles at the Motion opportunities to employees. Specifical- headquarters building, located in ly, our Management Development The Motion Industries internship Birmingham, Alabama. Most every Seminar (MDS) convenes high-poten- program has a foundation centered on student that successfully completes the tial global leaders for two weeks of relationships forged with the Industrial program is tracked for the remainder experiential learning and networking. Distribution degree programs at Texas of their university career and offered a At our MDS in 2019, a group of 40 “My internship with A&M University, University of Nebras- position with Motion upon graduation. participants gained invaluable GPC was an outstand- ka- Kearney, East Carolina State Uni- cross-training relating to our businesses, ing launch pad to versity and the University of Alabama LEARNING AND DEVELOPMENT toured distribution facilities, and had understanding at Birmingham. Approximately 80 We believe that learning and develop- multiple opportunities to get to know corporate culture, interns are hired each summer, most ment is essential for growth. Through their counterparts throughout the world. learning the best practices in my field, This group reconvenes six months and networking with later at Emory University for Executive professionals at all MBA classes and additional network- levels of the organiza- ing opportunities. In addition, GPC tion. I participated in sends high potential executives each complex projects, year to the Wharton School of Busi- career development ness at the University of Pennsylvania. and even volunteer opportunities within These executive development efforts the community, which help with succession planning and the allowed me to transfer of institutional knowledge. smoothly transition into my current role as PERFORMANCE EVALUATIONS a Talent Management At GPC, we believe that feedback is a Specialist.” crucial ingredient for the development of all employees. All salaried employ- Claire Graff ees receive a formal mid-year and Talent Management annual performance review. Specialist

2019-2020 CORPORATE SUSTAINABILITY REPORT 12 PEOPLE

LISTEN TO EMPLOYEES In 2019, we used EMPLOYEE ENGAGEMENT feedback from our employee engage- We take pride in our people and our unique corporate culture. We know that healthy, engaged employees do ment survey and their best work. For this reason, we strive to create a positive work environment that includes a competitive implemented new benefits package and includes a wide variety of resources to promote overall wellbeing. training and development + Opportunities to create personal programs, updated BENEFITS HEALTH AND WELLBEING our corporate dress wellbeing goals and competitions. At GPC, we understand that we We are committed to helping our employ- code, and instituted flexible work are only as good as the team members ees improve their physical, emotional and LOOKING AHEAD who support us. To ensure our team financial wellbeing. In 2019, we launched schedules. We are preparing to conduct an employee members are motivated and secure, the “What Moves You?”1 wellbeing survey later this year. We want to under- we offer a variety of benefit options to program to help our people get started, stand the engagement of our employees meet the full range of our employees’1 maintain momentum, and make progress across the globe and their perspective on needs, including, but not limited to: toward their top wellbeing goals. The a variety of topics, including: our program includes: COVID-19 response, work environment, safety programs, diversity and inclusion + An online platform that offers + Medical, Dental and Vision progress, and culture. an interactive way to accomplish Insurance wellbeing goals; + Life and AD&D Insurance + A personal progress chart to + Disability Plans monitor completion of + 401(k) with Matching GPC-sponsored competitions and earned incentives; + Paid Time Off

+ Tuition Reimbursement + A rewards platform where participants can redeem + Employee Discounts incentive dollars for a variety of e-gift cards; and

1 Some programs and benefits included in the U.S. only. 2019-2020 CORPORATE SUSTAINABILITY REPORT 13 PEOPLE

PEOPLE OF COLOR REPRESENTATION AT GENUINE PARTS COMPANY 20.6% of U.S. Managers 33.5% DIVERSITY AND INCLUSION of U.S. Non-managers* As a global company, GPC employs people from all around the world because we believe our business should reflect the communities and cultures we serve. GPC is currently refining our diversity and inclusion strategy. We strive to:

GPC currently maintains policies goals. In addition, we increased our + Recruit talent that is representative designed to make employees feel safe, support for the United Way’s African of the communities we serve valued, and connected. We have also American Partnership (AAP) and Young + Train employees to mitigate unconscious provided sensitivity training to further Professional Leaders (YPL) programs. bias and model inclusive behaviors promote an environment in which These programs engage the next individual differences are valued and generation of leaders by cultivating and + Strengthen external partnerships contribute to GPC’s success, and plan growing the spirit of philanthropy, that support diversity and inclusion to continue offering these training community advocacy, volunteerism and initiatives opportunities. leadership in underrepresented + Ensure pay equity communities. In 2019, we conducted a workforce + Embed diversity and inclusion into the analysis and began conducting an This year, GPC established a Diversity strategic work of the organization audit of our U.S. compensation practic- and Inclusion Committee. The group, + Measure progress toward diversity es. Results of these assessments help comprised of representatives from and inclusion goals us better understand our progress on throughout the organization, is leading various diversity, inclusion, and equity the effort to advance a more diverse

*From 2018 EEO-1 Report 2019-2020 CORPORATE SUSTAINABILITY REPORT 14 PEOPLE

and inclusive workplace within our organization. GPC will continue to champion new initiatives related to:

+ Diversity – We believe in affirming similarities and finding value in differences. We will seek to proactively engage, understand and draw on a Diversity & Inclusion Committee and its ment for internal advancement and promo- variety of perspectives long-standing objective to promote and tion, as well as the external hiring of advance qualified individuals of all races qualified applicants, it is the Company’s + Equality – We believe in creating and genders. goal to continue to increase these levels in an environment built on respect, future years. dignity and fairness With respect to its Board of Directors, + Inclusion – We believe in an Genuine Parts Company demonstrates As for all positions within the organization, environment where there is a diversity as to gender and people of color. Genuine Parts Company is committed to sense of belonging and all voices Specifically, women represent 25% of the the investment of both economic and are welcome and valued Board while minorities represent just under human resources to advance diversity. This 10% of the Board. These levels reflect an begins with the external recruitment, hiring + Racial Equity – We believe in increased presence on the part of both and retention of qualified females and creating an environment where women and individuals of color. It is the minorities. Once individuals become part of society can reach its full Company’s objective to continue to achieve the organization, the Company engages in FEMALE potential because racial added diversity on the Board as opportuni- succession planning in an effort to provide equity is achieved REPRESENTATION ties become available. structure to its internal advancement and AT GENUINE promotion practices. PARTS COMPANY In the U.S., women represent 19.6% of our OUR COMMITMENT TO DIVERSITY managers. Most notably, the Company’s LOOKING AHEAD Genuine Parts Company is and has always Chief Financial Officer and Executive Vice We will continue working toward been committed to diversity and inclusion President has successfully served in her formalizing our diversity and inclusion 19.6% throughout all levels of the organization. To role since 2013. Further, people of color strategy, ensuring that diversity and of U.S. Managers advance this commitment, the Company represent 20.6% of all managers within the inclusion is embedded into our employee relies on its equal employment opportunity U.S. workforce. Here again, through hiring, training, development, and 23.1% policies, its affirmative action initiatives, the utilization of the Company’s strong commit- engagement efforts. of U.S. Non-managers*

*From 2018 EEO-1 Report 2019-2020 CORPORATE SUSTAINABILITY REPORT 15 PEOPLE

EMPLOYEE SAFETY INVESTING At GPC, our people are our most important asset. Every Company environment should be IN SAFETY one where our team members feel safe, secure, and comfortable. We ensure our people In 2019, GPC invested have the necessary knowledge and resources to maintain safe work environments through: considerable resources to enhance the safety of ment to the safety of our team. We believe key safety concerns our employees face the work environment. + Workplace safety training that proper vigilance by all GPC employ- on a daily basis. This multi-year project ees through the LiveSafe program can included: replacing + Frequent messaging on substantially impact workplace safety. MAKE IT SAFE, MAKE IT HOME mezzanine gates, safety topics In GPC’s Asia-Pacific region, the installing dock lock systems, implementing + Employee safety quizzes The program includes our safety “Make it Safe, Make it Home” program a high-visibility toolbox, a comprehensive inventory of has successfully improved safety and prizes wearables requirement, safety guidelines, policies and require- performance by inspiring behavioral + Safety audits of workplace a safety shoe program, ments that specify safety responsibili- change. This unique approach, designed installing DriveCam in safety performance and ties of all employees at a particular site, around an employee engagement model, delivery vehicles, and conditions safety training requirements, safety emphasizes the importance of prevention implementing a forklift committee activities, safety inspections, rather than reaction, and ensures that technology platform. LIVESAFE accident reporting and investigation, employees know safety is everyone’s Our LiveSafe program, in which we safe driving, strain reduction, and slip responsibility. Since the program’s encourage every GPC employee to and fall prevention. Additionally, we launch, there has been a significant participate and take personal responsibility issue a monthly safety message that reduction in workplace injuries and for their safety, underscores our commit- takes a tactical approach to some of the workers’ compensation claims.

2019-2020 CORPORATE SUSTAINABILITY REPORT 16 PEOPLE

An employee survey also revealed that our Vendor Code of Conduct and Social We regularly measure and enforce 92.9% of respondents are comfortable Responsibility Standards and Policy. vendor compliance under our policies. reporting a safety issue and 88.7% Together with third-party auditors, GPC believe the Company provides a safe These policies, which are part of our utilizes the SA8000 supply chain audit working environment. international supplier agreement, provide a standard, which focuses on improving clear statement of GPC’s expectations and working conditions, ensuring fair SUPPLY CHAIN RESPONSIBILITY requirements as well as an explanation of compensation, and enhancing worker AND HUMAN RIGHTS how vendors will be monitored and audited, safety. We have conducted hundreds of GPC plays a key role in the supply chain including the consequences of non-compli- vendor audits since adopting the from a procurement and distribution ance. At a minimum, GPC requires that standard in 2015. Vendors that do not perspective. As part of our Code of vendors meet social standards relating to: meet the social compliance standards Conduct, we are keenly focused on must take corrective action in a timely strengthening our commitment to manner or risk termination of the responsible and sustainable sourcing + Child labor business relationship. We continue to 84 through identifying and selecting + Forced labor audit potential and active GPC vendors SOCIAL partners who share similar values as to ensure compliance. + Human Trafficking COMPLIANCE GPC. We are similarly committed to + Health and safety AUDITS ensuring we deliver safe and high-quali- LOOKING AHEAD CONDUCTED ty products for our customers. + Anti-Discrimination To demonstrate our commitment to IN 2019 + Disciplinary practice protecting human rights, GPC has VENDOR POLICIES developed and will institute a Human + Working hours/wages GPC expects our vendors to share our Rights Policy that will outline responsi- and compensation commitment to responsible and sustainable bilities and expectations for each of our sourcing. At a minimum, we require that our + Work & break environments partners and suppliers throughout our 398 vendors meet the requirements outlined in global supply chain. SOCIAL COMPLIANCE AUDITS COMPLETED SINCE 2015

2019-2020 CORPORATE SUSTAINABILITY REPORT 17 PLANET

U.S. FLEET FUEL CONSUMPTION AND CARBON SUSTAINING OUR EMISSIONS REDUCTIONS

ENVIRONMENT Greenhouse Gas Emissions With our global expansion comes tremendous (Thousand Metric Tons) responsibility — and opportunity. Given our 88.9 81.1 76.9 expanding operational footprint, we continue to seek new ways to conduct business in a manner that protects the quality of the environment, conserves natural resources, and complies with laws and regulations that protect our planet. 2017 2018 2019 We believe that we have a duty to protect and preserve our planet and, as such, we are committed to the following: Carbon Emissions (Thousand Metric Tons) 88.2 71.3 + Enhancing the fuel efficiency in our 70.3 transportation fleet

+ Reducing our greenhouse gas (GHG) emissions FLEET MANAGEMENT + Conserving water and energy resources 2017 2018 2019 AND TRANSPORTATION + Handling hazardous materials and waste safely Fuel Consumption (Million Gallons) GPC has changed our fleet profile with the goal to enhance fuel + Reducing waste, increasing recycling and efficiency and reduce GHG emissions. While our revenue has sourcing recycled materials 10.7 9.7 9.1 increased steadily over the past three years, our fleet-related impacts + Sourcing responsibly with vendors that are have been decreasing. When our vehicles are on the road, we employ equally committed to environmental protections numerous strategies to deliver our products more efficiently and lessen any environmental impact:

+ Route Optimization: Utilizing route + Auxiliary Power Units: We utilize 2017 2018 2019 optimization software has positioned auxiliary power units across our our fleet with multiple cross-docks fleet to provide creature comforts Number of Vehicles across different regions to better — notably heating and air condi- (Thousands) optimize our network. tioning — without the need to run a 9.4 9.4 9.2 truck’s engine, significantly cutting + Anti-Idling: Each truck in our fleet down on idling. is equipped with technology to automatically shut down the + Electronic Monitoring: We electroni- engine after five minutes of idling, cally monitor driver hours, length of helping to save on fuel consump- drive and idling time through in-cab 2017 2018 2019 tion and cost. mounted electronic devices.

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ENERGY CONSUMPTION ENERGY AND EMISSIONS AND EMISSIONS Because Company facilities account for the vast majority of GPC’s annual SAVINGS energy use around the world, we aggressively seek solutions to improve energy efficiency in every building we operate, with a particular focus on Electricity our larger buildings, such as distribution centers and corporate campuses. Consumption (Million kWh) To manage our energy consumption, we utilize HVAC and lighting automation sys- tems. In addition, GPC has installed lighting retrofits across hundreds of retail loca- 212 209 202 tions and distribution centers. Together, these initiatives have offset 60 million pounds of carbon. We also continue to explore renewable energy opportunities. Since 2012, solar installations at our facilities in North America have produced nearly 1.5 million kilowatt hours of clean energy. In 2019, we continued to enhance fleet management programs to reduce miles 2017 2018 2019 driven without impacting customer service. The adoption of Lytx, a delivery vehicle GPC U.S. GENERATION SUMMARY Gas Consumption event recording system, drives account- (Million kWh) ability by providing oversight of driver behavior. We also launched a delivery 7.5 7.9 tracking system to enable better route 6.1 optimization and began a pilot program for electric vehicles. COAL 27% INTERMODAL RAIL OIL 1% Taking trucks off the road while maintaining 2017 2018 2019 GAS 36% shipping efficiency is yet another way we NUCLEAR 19% HYDRO 8% are working to move product sustainably. Carbon BIOMASS 2% While we use trucks to move containers Emissions (Million Pounds) WIND 5% and trailers across short distances at the beginning and end of the transportation 332 302 journey, we utilize rail for the longer hauls. 281 This approach, known as intermodal transportation, reduces fuel consumption and carbon emissions by 71.4 percent on average per month, compared to shipping the same goods entirely by truck. 2017 2018 2019

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WASTE We focus on minimizing the amount of waste from our facilities that is transported to landfills. Our recycling efforts are the primary means by which Motion Industries we avoid directing material into the waste stream. continues to advance In 2019, we recycled nearly 6,400 tons of waste. sustainability within its organization by While recycling remains our largest diversion of waste, we expanding the are taking additional steps to avoid sending materials to corporate recycling the landfills, including donating damaged retail products, program. recycling product cores, minimizing paper waste and encouraging employees to use permanent ware (mugs, 1,072 utensils, dishes, towels) rather than disposables. total tons recycled In 2019, PartsPoint, a division of GPC in the Netherlands, began using energy from wind turbines to generate sustainable energy to power its new distribu- 4.78 TRASH RECYCLED DIVERSION tion center. This facility received an “Excellent” certification from BREEAM, million kWh of YEAR MATERIAL (TONS) (TONS) RATE one of the world’s leading sustainability assessment organizations, which electricity saved measures the environmental sustainability of building, infrastructure and 2017 26,825 5,953 18.2% masterplan projects. Our new state of the art Nashville, TN and Charlotte, NC automotive distribution centers save energy and time, and serve our 131,221 gallons of oil saved customers much more efficiently than our older DCs could. These investments 2018 27,476 6,445 19.0% in the future benefit our customers, our employees, and our shareholders. 2019 28,021 6,397 18.6% WATER AND EFFLUENTS 12,874 mature trees saved At GPC, we recognize that water represents a significant component of our environment and we are taking steps to do our part to conserve this precious In partnership with Australian Packaging Covenant, resource. Water is addressed specifically through UN Sustainable Develop- 7.51 GPC Asia Pacific has created a multi-year plan outlining ment Goal 6: ensure availability and sustainable management of water and million of gallons waste reduction and recycling initiatives. Examples include: sanitation for all. As water consumption increases at a historic pace, freshwater of water saved availability is declining with one in nine people today lacking access to safe water. Reduced greenhouse + Battery recycling: 24,646 batteries were recycled in 2019, WATER USAGE representing a 123% increase from the previous year. (Million Gallons) gas emissions by To conserve water in our operations around the world, 112.6 + Packaging: A significant majority of the 2,981 product 109.8 many of our facilities have been updated with low-flow 3,412 99.3 SKUs introduced in 2019 are packaged in cardboard devices and motion-sensing fixtures to automatically shut metric tons and exhibit the appropriate recycling symbols. off faucets in kitchens and restrooms. Water leakage from pipes is also a concern, and GPC is conducting regular Reduced net energy + Landfill diversion:379 stores, 12 distribution centers, inspections of water lines to detect and repair leaks. consumption by and the corporate headquarters have dedicated Outside our buildings, we are limiting the use of irrigation recycling arrangements. 52 percent of the total waste sprinklers and adjusting sprinkler times and durations 16,309 collected was diverted from landfill. 2017 2018 2019 according to season, rainfall, and soil types. MBTU

2019-2020 CORPORATE SUSTAINABILITY REPORT 20 PLANET

GPC Asia Pacific encourages an environmental ethos within their suppliers, including with respect to packaging. Suppliers have received guidance on how to align with GPC Asia Pacific’s expectations regarding reducing the amount of packaging and increasing the amount of recycled and recyclable content in packaging. In addition, all GPC private label-branded packaging features PRODUCTS AND SERVICES recycling symbols and guidance GPC’s automotive and industrial businesses offer customers a wide array of recycled for appropriate disposal. or remanufactured products and components. Each remanufactured or recycled part or product we sell reduces the environmental impact associated with mining or sourcing virgin material, including related energy and transportation costs, reduces landfill waste, and results in cost savings for customers.

We also have policies and processes in Though their work began with planned air place to assess and manage the risks systems, a full range of energy-efficiency associated with chemicals in products, consultation, including turnkey solutions in and continually evaluate suppliers to compressed air, steam, lighting, water, HVAC/ upgrade and replace goods in our refrigeration, power quality and mechanical product lines with newer, cleaner, greener performance have been implemented. versions — many of which are reusable, recycled or recyclable. During the 2018-2019 timeframe, the team performed 95 assessments at customer ENERGY SERVICES TEAM facilities. Cumulatively, these assess- In our Industrial segment, the energy ments accounted for over: services team is responsible for conduct- ing energy efficiency assessments at + 265 GWh in savings customer facilities. Since the creation of + 230 million pounds of carbon emission the team in 2015, the greatest improve- reductions ment in energy efficiency came through deploying better energy and conservation + $18 million in realized operational savings solutions to reduce operating costs.

2019-2020 CORPORATE SUSTAINABILITY REPORT 21 PURPOSE

+  Addressing heart disease: As part of their strong partnership with the American Heart Association, team members from Motion Industries participate in annual walks in various cities and engage in fundraising activities, raising awareness of the risk factors of heart disease. In 2019, our teams at GPC Asia Pacific and Motion Industries launched programs designed to organize their philanthropic efforts. The GPC Asia Pacific Foundation focuses on five action areas most important to their organization: disaster relief, volunteering, external charity support, a team member hardship SUSTAINING OUR COMMUNITY fund, and an internal charity geared toward supporting education resources in disadvantaged communities. At the heart of GPC’s culture is the strong sense to look beyond our responsibilities as a business. By living our values and giving back through fundraising, raising awareness, and Through the MI Cares program, Motion Industries volunteerism, we are doing our part to make a genuine difference around the globe. employees are connected to volunteering and fundrais- ing initiatives that bring resources and attention to the We maximize our impact in communities by supporting and forming partnerships with numerous non-profit causes that need it most. In 2019, Motion Industries and community-based organizations. Our efforts are organized around five areas of priority: employees participated in community clean-ups and Habitat for Humanity events, among others. HOMELESSNESS YOUTH HEART DISEASE VETERANS AND DISASTER AND BASIC NEEDS OUTREACH MILITARY RELIEF AND CANCER LOOKING AHEAD

In 2019, we launched YourCause, an internal philanthro- Habitat for Humanity Boys and Girls Club American Cancer Society Intrepid Fallen Heroes Fund Australian Red Cross py platform that connects our employees to the causes Salvation Army Junior Achievement American Heart Association American Red Cross that they care about most. In addition to helping our United Way Save the Children Make-A-Wish Foundation employees schedule events, the platform collects, Starlight Children’s Foundation tracks, and organizes comprehensive data on their donations of time, talent, and treasure.

GPC’s legacy of charitable giving also takes the focus of + Cancer research: The Real Men Wear Pink breast COVID-19 RELIEF thousands of GPC employees donating time, talent and cancer campaign raised money and awareness At GPC, our top priority during treasure each year. Among the most meaningful programs for the American Cancer Society. The initiative, these uncertain and trying times we supported in 2019 through philanthropic gifts and held in October 2019, was full of pink, cancer is the health and safety of our employees, customers and volunteerism include: trivia, live music, survivor stories, a truck drag communities. We are proud to support communities competition, and critical awareness raising. suffering from the effects of the pandemic as well as +  Bush fire relief: In response to the unprecedented healthcare workers and first responders on the front wildfires, GPC Asia Pacific organized support for +  Basic needs: United Way has been a valued lines. We have donated cleaning supplies, food, care various disaster relief and recovery funds. Through a GPC partner for more than 60 years. During the packages, automotive services and financial support to fundraising effort targeted at team members, 2019 Giving Campaign, GPC team members’ organizations in need. We have also donated PPE, vendors and customers, GPC Asia Pacific was able fundraising efforts and payroll deductions were including 48,000 masks donated as part of the Million to donate towards supporting the thousands of donated to advance opportunities in education, Mask Challenge, and partnered with organizations to people displaced by these tragic fires. income, and health. maximize the impact of our relief efforts.

2019-2020 CORPORATE SUSTAINABILITY REPORT 22 Genuine Parts Company 2019-2020 SASB Index Multiline and Speciality Retailers & Distributors Sustainability Accounting Standard 2018*

SASB CODE ACCOUNTING METRIC ANSWER, CROSS-REFERENCE, OMISSIONS, AND EXPLANATIONS

Energy Management in Retail & Distribution CG-MR-130a.1 (1) Total energy consumed, Planet, p. 19 (2) percentage grid electricity, GPC uses renewable energy from the company's own wind and solar installations, but overall renew- (3) percentage renewable able energy use does not represent a material percentage of total energy consumption at this time. Data Security CG-MR-230a.1 Description of approach to identifying and addressing data security risks Our Guiding Principles, p. 10 2020 Proxy Statement, p. 14 CG-MR-230a.2 (1) Number of data breaches, GPC did not experience a reportable data breach during the reporting period. (2) percentage involving personally identifiable information (PII), Our cyber incident response plan provides the framework for incident identification, (3) number of customers affected assessment, management and impact mitigation. Labor Practices CG-MR-310a.1 (1) Average hourly wage and (2) percentage of in-store employees earning minimum wage, by region GPC is not disclosing average hourly wage because we consider it sensitive competitive data. 100% of our in-store employees earn at least minimum wage (Federal/State/Municipal) in every U.S. region.

CG-MR-310a.2 (1) Voluntary and (2) involuntary turnover rate for in-store employees 2020 TURNOVER RATES1

Total Turnover Rate 46.3% Voluntary Turnover 36.9%

Involuntary Turnover 6.9%

Turnover Due to Job Elimination 2.6%

CG-MR-310a.3 Total amount of monetary losses as a result of legal proceedings associated with labor law violations Monetary losses as a result of legal proceedings associated with labor law violations during the reporting period were an immaterial amount.

Workforce Diversity & Inclusion

CG-MR-330a.1 Percentage of gender and racial/ethnic group representation for People, p. 14-15 (1) management and (2) all other employees" CG-MR-330a.2 Total amount of monetary losses as a result of legal proceedings associated with Monetary losses as a result of legal proceedings associated with employment discrimina- employment discrimination tion during the reporting period were an immaterial amount. Product Sourcing, Packaging & Marketing CG-MR-410a.1 Revenue from products third-party certified to environmental and/or social sustainability standards To be reported in next Sustainability Report. CG-MR-410a.2 Discussion of processes to assess and manage risks and/or hazards associated with Planet, p. 21 chemicals in products

CG-MR-410a.3 Discussion of strategies to reduce the environmental impact of packaging Planet, p. 20

SASB CODE ACTIVITY METRIC ANSWER, CROSS-REFERENCE, OMISSIONS, AND EXPLANATION

CG-MR-000.A Number of: retail locations: ~1,375 (1) retail locations and distribution centers: ~81 (2) distribution centers CG-MR-000.B Total area of: retail locations: ~131,220,099 ft2 (1) retail space and distribution centers: ~7,847,084 ft2 (2) distribution centers

*GPC’s 2019-2020 Corporate Sustainability Report applies the 2018 version of the Multiline and Speciality Retailers & Distributors Sustainability Accounting Standards; “2018” refers to the Standards issue date, not the date of information presented in this report. 1Data is accurate as of June 1, 2020 and covers the retail employees of our U.S. Automotive Parts Group. 2019-2020 CORPORATE SUSTAINABILITY REPORT 23 Genuine Parts Company 2019-2020 Corporate Sustainability Report

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