067HN_AAP-ESG-2021-Report-M

RISK MANAGEMENT & ETHICAL STANDARDS

COMMUNICATION AND ENGAGEMENT As a foundational principle, our Board maintains open communication channels with management, third party advisors and our shareholders. In additional to having regular sessions of independent directors, our Nominating and Corporate Governance Committee regularly holds a private session with only our senior vice president, communications and investor relations to help stay informed and engaged on stockholder interests outside the presence of other management. These open channels and a high degree of engagement by our directors enable close oversight of our business and facilitate discussions with shareholders and interested parties on important topics such as sustainability and diversity. RISK OVERSIGHT Our management regularly identifies and reviews near term risks to the execution of our business activities and long-term strategic risks to our plans for enterprise development and growth. On an annual basis, our management team executes a comprehensive risk identification and analysis process, considering our strategic priorities, and reports and discusses its findings with the Board. Our Board is responsible for overseeing enterprise-wide risk management activities. Management provides regular updates to the Audit Committee, or as appropriate, the full Board, on risk exposure and mitigation efforts, as well as discusses any recommendations with respect to risk management. ESG OVERSIGHT We believe that strong environment, social and governance oversight enhances our ability to identify, develop and implement initiatives designed to make meaningful improvements to our long-term profitability and sustainability. Senior leaders from several functions, including human resources, risk and environmental health and safety, investor relations, communications and legal meet regularly to discuss and address ESG initiatives and disclosures. Representatives of that working group regularly provide updates to and engage in dialogue with both our Executive Committee and our Nominating and Corporate Governance Committee, which has

oversight responsibility of our ESG programs. During 2021, we conducted our first ESG materiality assessment to help us refine our ESG focus and prioritize those areas of ESG that our stakeholders believe are the most relevant and that we believe can provide the most value to our business. Additional information about the ESG materiality assessment can be found beginning on page 57 of this report. ETHICAL STANDARDS & COMPLIANCE We expect our team members and the third parties with whom we do business to conduct themselves with high ethical standards and in compliance with applicable laws wherever we do business in the world. We continually strive to build and enhance a culture of responsible and ethical behavior and have several policies and procedures in place to advance that business environment. CODE OF ETHICS AND BUSINESS CONDUCT We have adopted both a Code of Ethics and Business Conduct and a Code of Ethics and Business Conduct for Finance Professionals, which articulate our commitment to and expectations for honest and ethical conduct in business dealings, including with respect to human rights matters, and full, fair and accurate financial management and reporting. TRAINING AND TEAM MEMBER HOTLINE Our ethics and compliance (E&C) team delivers annual training on our Code of Ethics and Business Conduct and Fair and Respectful Workplace policies to make clear the company’s expectations of ethical conduct wherever we do business. During 2021 annual training, team members completed a customized course built in-house with targeted content for our team members. In addition, the E&C team creates and delivers custom training and communications on selected compliance topics and works across functions to establish our enterprise-wide compliance training curriculum that helps drive team member awareness and compliance with applicable laws and regulations. This includes training for general managers on compliance with selected California laws in support of our expansion in this market. We promote our Speak Up Cultural Belief through our Open Door Policy, and we encourage team members to report

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2021 ADVANCE AUTO PARTS CORPORATE SUSTAINABILITY AND SOCIAL REPORT | 54

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