AAP 2021 ESG Report

APPENDIX

APPENDIX B – EVIRONMENTAL DEFINITIONS

Energy Efficiency

The energy efficiency of the company’s operations through buildings, transportation of products and first and third-party data centers.

Renewable Energy

The procurement of renewable energy sources in the company’s operations.

GHG Emissions and Carbon Reduction

The reduction and elimination of direct and indirect greenhouse gas (GHG) and carbon emissions of the company’s operations through buildings, vehicle efficiency, miles driven and third-party/supply chain emissions.

Water Usage

The management of water usage and wastewater in the company’s operations.

Climate Change Resiliency and Adaptation

The adaptation and resiliency of the company’s operations to climate change impacts, including acute (e.g. severe weather) and chronic (e.g. sea level rise, drought) events.

Waste Management/ Recycling in Operations

The reduction and extent of recycling of non-hazardous waste generated in the company’s operations, including handling of shipping materials and clearance inventory.

Hazardous Substance and Product End-of-Life Management

The management and minimization of hazardous substances in the company’s operations and products, including the storage and handling of products as well as end of life practices for products and product components.

Sustainable Packaging

The minimization of environmental impacts of packaging, including resource efficiency, recoverability and recyclability, and toxicity. vehicle efficiency, miles driven and third-party/supply chain emissions.

Sustainability and Circularity of Products and Services

The circularity of products and product components (e.g., use of recycled materials and remanufactured parts in product design, product take-back programs), and innovation in merchandising to prepare for and respond to ESG-driven consumer trends.

Sourcing of Product Materials and Stewardship

The responsible sourcing and stewardship of product materials to minimize direct environmental impacts associated with third parties’ sourcing activities for raw materials in private label products.

Environmental Justice

The degree of equitable distribution of environmental risks and burdens, and recognition of impacts on local communities, associated with the company’s operations.

Environmental Impact of Real Estate Footprint

The management and minimization of environmental impacts associated with the company’s real estate footprint and land use, including owning and leasing land, upfitting stores, and local environmental and community considerations (e.g. biodiversity, protected areas).

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GOVERNANCE

2021 ADVANCE AUTO PARTS CORPORATE SUSTAINABILITY AND SOCIAL REPORT | 62

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