Doing the Right Thing
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Doing the Right Thing GENUINE PARTS COMPANY 2017 CORPORATE SUSTAINABILITY REPORT ABOUT Genuine Parts Company OUR Genuine Parts Company, founded in 1928, is a service organization engaged in SUSTAINABILITY the distribution of automotive replacement parts, industrial parts and materials, and business products. The Company serves hundreds of thousands of customers from more than 3,100 operations and has approximately 48,000 employees. Vision As we celebrate 90 years of business, Genuine Parts Company has a great story to tell, and we are pleased to share it with you in our inaugural Corporate Sustainability Report. Sustainability has long been at $16.3 the heart of our culture — to do the right thing in order BILLION 48,000 to operate our businesses in a responsible manner. EMPLOYEES Paul D. Donahue 2017 Our approach encompasses the proper balance President and Chief Executive Officer REVENUES of environmental responsibility, safety, wellness, $12.4 ATLANTA, community involvement and economic success to ensure we protect our valuable resources: our BILLION GEORGIA USA people, our communities and our planet. TOTAL HEADQUARTERS ASSETS We are proud of the progress we have made in workplace injuries. In addition to health in the workplace, implementing our sustainability initiatives across we are committed to enhancing the overall physical the business. Creating a roadmap for our official and mental health of our employees through our sustainability platform and properly reporting on our Strength in Numbers program. Finally, as a global progress are essential steps forward in reflecting our company, we recognize that our communities depend long-standing commitment to operate with integrity, on us, just as we depend on them. That is why we strive and we look forward to sharing our progress against to give back by sharing not just our resources, but measurable goals in the years to come. also the time and talent of our employees. AUTOMOTIVE: 53% In 2017, we better positioned GPC for long-term We are energized about the road ahead. Our growth, with significant investments in our existing commitment to operate our business with the highest businesses as well as new ones, both in North America social and environmental standards has never been NET and abroad. With that global expansion comes tremen- greater, and we are dedicated to delivering on that SALES BY SALES BY dous responsibility — and opportunity. Given our objective. I look forward to continuing our sustainability REGION SEGMENT ever-increasing operational footprint, we continue to journey and welcome feedback from all of our stake- seek new ways to increase supply-chain sustainability holders on how we can continue to make a meaningful INDUSTRIAL: 35% and reduce our overall carbon footprint. We offset difference. To share your ideas on how we can achieve millions of pounds of carbon emissions through LED further progress against our sustainability objectives, lighting retrofits in our facilities, and we diverted please contact us at [email protected] thousands of tons of waste from landfills. UNITED STATES: 81% Sincerely, BUSINESS PRODUCTS: 12% When it comes to our people and the communities we CANADA: 9% serve, we take a holistic approach to well-being, striving every day to create a culture of inclusiveness — where ASIA PACIFIC: 7% everyone’s authentic voice is heard. The safety of our EUROPE: 2% 48,000 employees is paramount, and we are continually Paul D. Donahue working to enhance training programs to help prevent President and Chief Executive Officer MEXICO: 1% 2017 CORPORATE SUSTAINABILITY REPORT 1 Sustainability Provided HEALTH and HIGHLIGHTS WELLNESS BENEFITS to employees, including biometric screenings, fitness challenges, eLearning modules and counseling/recovery assistance programs Implemented EFFICIENCIES Furthered initiatives for IN TRANSPORTATION and a more SUSTAINABLE FUEL MANAGEMENT SUPPLY CHAIN and continued through route optimization, purchasing and using products Donated significant anti-idling policies and that are reusable, recycled time and resources to electronic monitoring or recyclable PHILANTHROPIC and Reduced energy consumption COMMUNITY EFFORTS such by 41 MILLION kWh through as United Way, Intrepid Fallen implementation of hundreds Heroes, City of Hope, Starlight of LED lighting retrofit Children’s Foundation and projects and deployment other community initiatives of solar installations around the world Developed employee programs for SUSTAINABILITY AWARENESS Recycled THOUSANDS and engagement, including GROW OF TONS of waste through (Greater Respect for Our World) our comprehensive waste and LEEP (Living Earth recycling program Environmental Program) Provided services for renewable Maintained BUSINESS power projects and other ETHICS and COMPLIANCE ENVIRONMENTALLY programs, including ongoing FRIENDLY PRODUCTS enforcement and employee and SERVICES training 2 GENUINE PARTS COMPANY 2017 CORPORATE SUSTAINABILITY REPORT 3 OUR THE BUSINESS CASE FOR Sustainability For GPC, the benefits of sustainability go beyond a Guiding commitment to environmental stewardship — we know sustainable practices generate business value. These efforts inspire investor confidence in our plans and support our ability to build brand value. That is why we are committed Q&A to sustainability and the numerous ways it accompanies our key DEREK B. GOSHAY Principles strategies and priorities: to be the employer of choice for each of our employees; to be the supplier of choice for all our customers; VICE PRESIDENT OF SAFETY AND SUSTAINABILITY to be a valued and preferred customer to each of our suppliers; to be a respected business community member that gives back to the communities in which we operate; to generate above-market returns; and to be a preferred investment choice for all of our shareholders. Q What preparations have you made for the launch of GPC’s inaugural sustainability report? A While this is our first official report, we have been implementing Derek B. Goshay sustainability initiatives across the business for years. We are doing Vice President of Safety and Sustainability remarkable work when you look at our safety, wellness and environ- mental impact initiatives, just to name a few. We made the decision OUR SUSTAINABILITY PROGRESS as a company that the timing is right for us to begin formally reporting on those initiatives and measuring progress in the years to come. We are proud of our efforts during the last decade to improve our awareness and impact through various sustainability actions, particularly In 2017, Q As you look at your impact opportunities based on your “ As we continue our sustainability in North America. As our business expands to become more diverse and we recycled nearly initial assessment, how do those opportunities align with journey, we have done so with a global, so will our sustainability efforts in various markets and geographies. GPC’s business goals? We have launched initiatives and programs to advance sustainability credo that will continue to drive A Especially on the social side, I think we are seeing tremendous awareness, enhance our social responsibility and interact with local our efforts: ‘what gets measured 6,000 tons alignment. We have always talked about our people being the communities where we live and work. We have also made significant of waste. driving force behind GPC. So it only makes sense that developing gets managed; what gets managed progress implementing initiatives that reduce the Company’s environ- them to be better leaders and ensuring they are healthy and safe gets improved’.” mental impact by reducing energy and fuel consumption, greenhouse through world-class training would be great for business. Energy gas (GHG) emissions and various waste streams. is our greatest area for environmental impact, and we have been working on strategies to reduce our operational footprint for years. It’s a win-win when you save money through these in-house efficien- cies and positively impact our shared environment. STAKEHOLDER ENGAGEMENT GPC Stakeholders Q What are the Company’s immediate priorities as you move forward with your sustainability strategy? Effective stakeholder engagement and sound management A Anywhere we have an opportunity to strengthen our environmental of stakeholder concerns can lead to many positive outcomes performance is on the table when I look at our immediate and both for the Company and our stakeholders. GPC’s POLICYMAKERS COMPETITORS long-term goals. As we continue our sustainability journey, we have stakeholders are found throughout our value done so with a credo that will continue to drive our efforts: ‘what chain; we define them to be any individual or INVESTORS & gets measured gets managed; what gets managed gets improved.’ group that is affected by GPC’s activities. We EMPLOYEES COMMUNITIES STOCKHOLDERS Even where we are already strong, we are committed to improving. have identified and prioritized key stakeholders Some of the key areas on which we will be focused in the near term and are developing an approach to manage and include electrical energy conservation programs, fleet programs to CUSTOMERS SUPPLIERS incorporate stakeholder feedback into ongoing reduce fuel consumption and carbon emissions, waste recycling management of the business. and diversion programs, transportation and network optimization SPECIAL programs, health and wellness and social responsibility, just to PHILANTHROPIES INTEREST MEDIA GROUPS name some. PRIMARY SECONDARY GENUINE PARTS COMPANY 2017 CORPORATE SUSTAINABILITY