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2024 Sustainability Report

The Compass of a Responsible Company

Parts Authority’s 2024 Sustainability Report explores the work our team members have done in the past year to advance us toward vital business and sustainability goals. Our teams set aggressive business goals, build sound strategies, and move forward with resolve. This same spirit and sense of direction drive our sustainability efforts, which is why we named this 2024 report The Compass of a Responsible Company.

"We have set a course toward achieving even greater impact through our environmental, social and governance (ESG) efforts, and are committed to maintaining both our momentum and our bearing.”

Parts Authority’s Values

Our Values – which will never change – articulate our foundational beliefs and are part of who we are. These Values are:

Integrity

We are honest, do the right thing, and always act in the best interest of our stakeholders.

Teamwork

We grow and develop as a group and accomplish more than we ever could on our own.

Pride

As a team we are proud of our accomplishments but remain humble in our success.

Embrace Differences

Our team is the sum of our individual perspectives and experiences.

Team members are responsible for living up to the Values every day and being an example to others in the company.

Maintaining Our Sustainability Momentum

The sustainability ethic at Parts Authority is imbedded in our company’s DNA, demonstrated at our oldest locations and newest acquisitions, and embraced by our team members across the nation.

Our 2024 Sustainability Report highlights a range of initiatives and metrics from across the company. We use the Sustainability Accounting Standards Board’s (SASB) standards to understand material ESG topics for our industry and refer to the UN Sustainable Development Goals (SDGs) to help set goals and targets, which are summarized in each report section:

In addition to the formal reporting, our 2024 Sustainability Report features narrative interludes that provide a human face, a snapshot, a story that illustrates impact in ways that data can’t always convey.

Our Planet

We embrace practices such as recycling, reusing and repurposing resources, and strive to reduce our reliance on virgin raw materials, when possible. Additionally, we believe that our output – auto parts placed in the hands of those who repair and optimize the performance of millions of cars – has the potential to influence global environmental processes such as climate change.

Energy efficiency is a key focus. We have continued to make energy-efficient upgrades such as replacing traditional lights with LED bulbs across 32 distribution centers – which saved up to 2.5 million kWh of energy in 2023.

Transportation is essential for delivering vital products quickly. To reduce environmental impact, we have deployed routing algorithms to minimize miles driven, outfitted each vehicle with a tablet that enables route optimization, and formalized our engine idling procedure to reduce emissions.

Shipment packaging choices also can lower environmental impact. We have adopted a new type of air pillow that uses less virgin material, resulting in a 30% reduction of raw material usage. In addition, we use paper that is 100% recycled (Forest Stewardship Council® certified) for packaging. Looking forward, our targets include:

Waste management is a key priority for us.

As a major automotive parts distributor, the waste we produce is mainly from packaging materials for inbound and outbound goods. We strive to recycle cardboard packaging and wooden pallets in as many of our locations as possible. Looking forward, our waste management targets include:

Right-to-Repair is the rallying cry for an effort to regulate automobile-data access to protect consumer interests and foster fair competition in the auto servicing sector. Parts Authority works with industry groups both to advocate and encourage legislators to support the Right to Equitable Auto Industry Repair (REPAIR Act). In September 2023, in Washington, DC, several Parts Authority team members joined over 300 aftermarket professionals from across the country to speak to the staff of congressional representatives about the importance of our industry and to seek their support of the REPAIR Act.

Our Supply Chain

Parts Authority’s focus on building an outstanding supply chain organization has made us a leader in the warehouse distribution ecosystem of the automotive aftermarket. As a leader we take responsibility for advancing our sustainability, and for supporting the progress of our broad supplier network.

Our Sustainable Procurement Policy sets environmental and social goals for our supply chain. As of 2023, more than 60% of our top vendors have signed our Supplier CSR (Corporate Social Responsibility) Code of Conduct.

Remanufactured Parts are those that have some components that get worn down by daily use, even as other components (the “core”) remain undamaged. Remanufacturers salvage cores and rebuild the necessary elements – giving the component new life. We estimate that nearly 1 out of every 10 parts (9%) Parts Authority sells is remanufactured. (Statistic includes recycled batteries, which carry a core charge.)

Product safety is important to our business. We are proud that out of 800,000 SKUs (Stock Keeping Units) offered, we only had 26 voluntary, supplier-initiated recalls. This means that only 0.003 percent of all parts were recalled in 2023.

Aftermarket Industry Sustainability – Parts Authority was among the key advocates of the 2023 creation of a new Sustainability Committee at the Auto Care Association. The committee, which is chaired by Ben Spitz, our Vice President of Strategy & Sustainability, seeks to generate dialogue and action regarding environmental opportunities and challenges across the automotive aftermarket industry. One initial result is the launch of a new website, which provides resources and tools to help visitors understand sustainability and take action to advance critical goals.

Our People

Parts Authority can only achieve its full potential and serve our customers superbly when our team is engaged and operating at peak performance! Accordingly, we focus on enhancing team member satisfaction, career development and professional growth, which have been core values of the company since its inception.

Our team members receive competitive company benefits (e.g., paid time off, company holidays, medical and life insurance, etc.) and we strive to support their health and safety through our policies and programs. Team members are guided by their supervisors and managers and also are offered career development opportunities through our learning management system. In 2023 Parts Authority Education delivered nearly 46,000 hours of training.

Labor Practices

Our labor practices aim to make Parts Authority a great place to work. Some highlights and targets include:

Health and Safety

We have set the following safety goals as part of our overall focus on continuous improvement and team members’ wellbeing:

Diversity and Inclusion

Achieving Parts Authority’s mission relies on the contributions of talented and diverse team members. We value the unique characteristics and experiences that enrich personal perspectives and positively impact our workplace. Accordingly, we work to create an inclusive environment where diverse voices strengthen our organization.

Parts Authority Education, our learning management system (LMS), gives team members a single destination for all Diversity & Inclusion education, information and resources, such as our Preventing Discrimination and Harassment training.

Women’s Networking Group Formed

In 2023, Parts Authority launched its first Team Member Networking Group. A Women’s Networking Group was formed to continually support and empower women and their supporters across the company. The group serves as a platform for sharing experiences, generating new ideas, instilling confidence, broadening connections, and amplifying their voices. Steering the progress of the new group are two leaders who exemplify our company’s commitment to sustaining diversity, inclusion and empowerment: Executive Sponsor Lisa Tanzi, General Counsel; and Group Leader Jill Natalie, Organizational Development Manager.

Our Community

True sustainability demands consideration of a broad community of people whose lives Parts Authority is committed to enhancing through our work. Those who bring vibrancy to this community include team members, suppliers, customers and local nonprofits who make our towns and cities stronger.

Among our community relationships are those listed below:

University of the Aftermarket Foundation – For more than 35 years, UAF has provided funding for aftermarket education programs and research. Parts Authority has been a steadfast UAF supporter for many years, becoming a Lifetime Trustee of the Foundation in 2021 and expanding its support to the Diamond Lifetime Trustee level in 2023.

Women in Auto Care, a community of the Auto Care Association, provides opportunities, education and career leadership to women in the auto care industry through conferences, networking, scholarships, education, data, awards and a curated mentorship program.

Mr. October Foundation, which was founded by major league baseball legend Reggie Jackson, works to improve educational opportunities for underprivileged youth. Parts Authority has been a proud Corporate Partner for the foundation’s Celebrity Golf Classic fundraiser for several years.

Representative Company Sponsorships

Across the nation, Parts Authority helps to build vibrant communities by providing financial support and volunteer action. Here are just a few of the organizations we support:

Business Ethics

In general, the use of good judgment, based on high ethical principles, guides our team members when making difficult decisions. In addition to the policies set forth in the team member handbook, the following basic principles guide the conduct of all team members:

Data Security

Our technology team plans and executes a range of strategies to identify and address data security risks across the enterprise. Parts Authority maintains a written information security program, which encompasses policies, standards, procedures, and guidelines. Taken together, these elements establish operational security controls to govern security for processing, storage, and transmission of customer data.

United Nations Sustainable Development Goals

Below are the UN Sustainable Development Goals (SDGs) to which Parts Authority is striving to contribute.

Following each SDG are the related steps Parts Authority intends to take.

SDG 5 on gender equality by increasing our percentage of women employed, increasing female representation in our leadership positions, and improving working conditions for women by providing things such as paid maternity leave.

(5.1 End all forms of discrimination against all women and girls everywhere)

Parts Authority intends to:

  • Provide ongoing anti-discrimination and anti-harassment training to new and veteran team members throughout the company. Promptly address any report of discrimination or harassment filed and follow up with appropriate and adequate next steps in a timely manner.

(5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life)

Parts Authority intends to:

  • Introduce a women’s networking and support group by 2025 (Achieved in 2023).
  • By 2026 offer additional learning opportunities to women in the company to help them grow into management roles.

SDG 8 on decent work and economic conditions by improving our overall working conditions and providing employees with fair wages and compensation.

(8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value)

Parts Authority intends to:

  • Continue to be an equal opportunity employer and assess candidates only based on experience and skills.
  • Prohibit all forms of discrimination and harassment during the recruitment phase and after.

(8.8 Protect labor rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment)

Parts Authority intends to:

  • Reduce team member injury rate by 5% by 2028.
  • Reduce lost time cases rate by 4% by 2028.
  • Improve manager/supervisor safety knowledge to address unsafe conditions or behaviors through additional training.
  • Provide ongoing health and safety training to new and veteran team members throughout the company.

SDG 9 on industry, innovation, and infrastructure by providing more jobs in the manufacturing sector and increasing R&D in the industrial sector.

(9.5 Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending)

Parts Authority intends to:

  • Offer training to team members to develop their sector knowledge and their work-related skills.

SDG 11 on sustainable cities and communities by monitoring the products we sell, as we contribute to cleaner air and more sustainable urban life.

(11.6 By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management)

Parts Authority intends to:

  • Comply with applicable laws and regulations concerning the environment.
  • Track the amount of waste produced by 2025 in order to set reduction targets for facilities thereafter.
  • Implement a formal, nationwide recycling program concerning cardboard by 2025.

SDG 12 on sustainable consumption and production patterns by improving the quality of our products and making them last longer, thereby reducing the total global material footprint.

12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse)

Parts Authority intends to:

  • Track the amount of waste produced by 2025 in order to set reduction targets for facilities thereafter.
  • Implement a formal, nationwide recycling program concerning cardboard by 2025.
  • Ensure that a majority of our packaging is Forest Stewardship Council® certified by 2025 (Already in use since 2023).
  • Use plastic packaging composed of more than 20% recycled plastic by 2025 for our shipping filler material
  • Contribute to repairs of an estimated 10 million vehicles each year to extend their lifetimes.

(12.6 Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle)

Parts Authority intends to:

Participated in the CDP private markets pilot to help establish benchmarks for private companies to assess climate-specific risks and opportunities; and has calculated and reported on our Scope 1 and 2 emissions since 2022.