MATERIALITY ASSESSMENT
ESG MATERIALITY ASSESSMENT Throughout our business, we believe it is important to prioritize with purpose. As we continue to mature our ESG work, we intend to focus our efforts and communications on the areas that are most important to our stakeholders and can add the most value to our business. Conducting our first ESG materiality assessment provided us a principled way to identify those areas of ESG that matter most to our stakeholders and are most likely to impact our long-term success. With the support of a third-party consultant, a cross-functional team of leaders at Advance curated a list of 35 potentially meaningful ESG topics and reached out to over 170 internal stakeholders and over 100 external stakeholders to better understand how important they perceived those topics to be for the future of our business. All of our Board and our Executive Committee participated, as did many corporate functional leaders and field leaders in our stores and distribution
centers. External participants included investors, sell-side analysts customers, suppliers, community organizations and industry associations. In addition to participating in our assessment as stakeholders, those responsible for oversight of ESG at Advance had integral involvement with this work. Nearly half of the members of our Executive Committee served on the Executive Steering Committee for the materiality assessment, receiving regular updates and providing input throughout the assessment. The Nominating and Corporate Governance Committee of our Board of Directors also received regular updates and engaged in dialogue with project leaders throughout the assessment. Our materiality assessment survey asked stakeholders to rate each of the 35 ESG topics relative importance to Advance’s long-term success on a scale of 1 to 100. The plot below depicts the results of our survey, and how we defined each of these ESG topics in the survey appears in the Appendix to this report.
Cyber Security
Data Privacy
Employee Safety
Compliant & Ethical Business Conduct
Labor Practices Product Quality Management
Social Topics Governance Topics Environmental Topics
Talent
Employee Engagement
Total Rewards
Customer Safety
Disclosure Transparency & Reporting
Crisis Preparedness & Operational Resiliency
Responsible Sourcing & Supplier Practices
Diversity, Equity, & Inclusion
Internal Audits & Assessments Haz. Substances and Products End-of-Life Mgmt.
Stakeholder Engagement Board Composition & Structure
ESG Oversight Energy Efficiency
Shareholder Rights
Selling Practices
Sustainable Packaging
GHG Emissions & Carbon Reduction
Waste Management/Recycling in Operations Customer Accessibility
Sustainability and Circularity of Products & Serivces Sourcing Product Materials & Stewardship
Social Justice
Climate Change Resiliency & Adaptation
Renewable Energy
Community Engagement
Environmental Impact of Real Estate Footprint
Environmental Justice
Water Usage
INTERNAL SURVEY AVERAGE RATING
ABOUT
PEOPLE
PLANET
COMMUNITY
GOVERNANCE
2021 ADVANCE AUTO PARTS CORPORATE SUSTAINABILITY AND SOCIAL REPORT | 57
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