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