067HN_AAP-ESG-2021-Report-M

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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