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2024 Sustainability Report VALUE IN Seeing more SUSTAINABILITY
LOGO USAGE
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CONTENTS
INTRODUCTION A Message From Our President and CEO LOGO USAGE
PRODUCTS Achieving Materials Circularity
ENVIRONMENT Minimizing Our Environmental Footprint
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9
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About Trex
Environmental Policy
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15
2024 Award Highlights
Energy and Climate Impact Waste Diversion From Landfill
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16
2024 Financial Performance Highlights
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17
2024 Sustainability Highlights
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PEOPLE Prioritizing Health and Safety
LEADERSHIP Best Practice Corporate Governance Integrated Sustainability Governance
SUPPLEMENT About This Report
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34
40
Empowering and Supporting Our People
UN Sustainable Development Goals (SDGs) International Financial Reporting
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36
41
Promoting Equal Opportunity Partnering With Communities
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44
30
Standards (IFRS)
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A message from our PRESIDENT AND CEO
How sustainability and business strategy can be aligned
aligning with the ISO 14001 international standard, we are committed to improving energy efficiency, reducing waste, and conserving water across our operations. Productivity: The human side of our sustainability program is just as important. At Trex, we strive to be the employer of choice in our industry and in the communities near our sites. I’m proud of the extensive training and career development opportunities we provide for our team members at every level. In 2024 alone, our employees benefited from over 62,000 hours of training. We’ve also invested in employee communications, launching a new survey to gather consistent feedback on engagement and areas for improvement. Combined with our competitive pay and comprehensive benefits package—including healthcare and wellness programs—we are confident that Trex offers fulfilling, long-term career opportunities for all team members. The impact of this investment is clear. We see it in the productivity of our loyal and motivated teams, as well as in reduced recruitment costs. I am deeply grateful for everyone’s contributions in 2024 and was honored to award over $500,000 to 90 employees through our annual Distinguished Performance Awards, recognizing their exceptional efforts. Resilience: When Trex first started using recycled plastic film and wood, there was little competition for these materials. Today, however, more industries are incorporating recycled PE and scrap wood, increasing demand for these raw materials. To secure our future supply and continue to drive down our raw material costs, Trex is investing in diversifying its sourcing strategy and identifying new material streams. We’ve developed
ways to recycle waste PE that others can’t, such as unused rolls of packaging film from industry and trimmings from the production of widely used personal products. Similarly, we’ve expanded our wood scrap sourcing by utilizing materials like end of life orchard trees. Together, these efforts strengthen Trex’s resilience—helping us navigate market fluctuations from increased competition for waste materials to maintain our leadership in sustainable manufacturing. I am proud of how Trex has seamlessly integrated sustainability into our business—not as an add-on, but as a core strategy to build a distinctive brand, enhance resilience, and drive stronger returns for our shareholders. This approach has made sustainability a win-win for both our business and society at large.
LOGO USAGE
Trex has been committed to sustainability from the very start, pioneering the composite decking category over 30 years ago. Today, as the world’s #1 brand of sustainably made wood- alternative decking and railing, our dedication to sustainability remains as strong as ever. It’s not just part of our history—it’s the key to our future. Over time, we’ve expanded our sustainability efforts beyond using reclaimed and recycled materials, applying these principles to drive both social and environmental responsibility and business success. Here’s how: Brand identity: Trex has made sustainability a key part of our brand, raising consumer awareness around the use of recycled materials in high quality and long-life products. Our decking is crafted from approximately 95% reclaimed and recycled materials, including waste polyethylene (PE) plastic and wood scraps. Since our founding, we’ve upcycled over five and a half billion pounds of waste plastic film that would have otherwise ended up in landfills. While quality, design, longevity, and low maintenance remain core selling points, we know that sustainability is a major part of what makes Trex stand out. Efficiency: In addition to our main raw materials, our manufacturing process relies on utilities such as electricity, natural gas, water, and waste disposal—accounting for substantial annual costs. The more efficiently we run our plants, the fewer resources we consume, the smaller our environmental impact, and the greater our cost savings. We already recycle nearly 100% of our production scrap back into our process, and by
Bryan Fairbanks President and Chief Executive Officer
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About Trex
Trex Company, Inc. is the world’s foremost producer of low-maintenance, high-performance, wood-alternative decking and railing products. For over 30 years, Trex has been a leader in sustainable design and production, creating products that embody quality, beauty, and environmental responsibility. We’re also deeply committed to making a positive impact on our employees and communities. LOGO USAGE
Our Vision To enhance the lives of people by engineering what’s next in outdoor living. Our Mission Design and market high-performance outdoor living products that offer superior aesthetics and quality.
Our Values Do the Right Thing We operate as a team, prioritizing the well-being of our employees and holding each other accountable to the highest levels of integrity. Act with Boldness and Authenticity We deliver results that exceed customer and employee expectations through decisive action, positive intent, and respect. Drive Sustainability We ground ourselves in our recycling heritage and social responsibility while also cultivating long-term business growth. Innovate + Adapt We actively listen to our customers and employees to continuously improve and invent creative solutions to tomorrow’s problems.
Maximize opportunities that leverage our manufacturing expertise and are tied to our recycling heritage.
Achieve this through human talent, world-class manufacturing innovation and our preeminent brand.
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2024 Award Highlights
ADEX Platinum Award for Design Excellence Good Housekeeping Sustainable Innovation Award Trex Transcend® Lineage® decking LOGO USAGE
Barron’s Top Sustainable Companies Top companies that achieved the highest scores across hundreds of ESG metrics (2024 and 2025) Architect Brand Use Study Builder Brand Use Study JLC Brand Use Study #1 Brand Familiarity and #1 Brand Most Used in both the Decking: Composite/PVC and Deck Railings categories
Virginia Business magazine “Virginia 500 Power List” Trex CEO Bryan Fairbanks named among Virginia’s most powerful and influential leaders in manufacturing
Green Builder® Sustainable Brand Leader 14 th consecutive year as voted by respondents in the annual Reader’s Choice survey
Lifestory Research: America’s Annual Most Trusted Brand Survey 1 America’s Most Trusted Outdoor Decking Brand for fourth consecutive year
Greater Good Award, Large Business of the Year Presented by The Top of Virginia Regional Chamber, recognizing Trex’s commitment to community, sustainability, philanthropy, and economic impact
1 Trex received the highest numerical score in the proprietary Lifestory Research 2021-2024 America’s Most Trusted® Outdoor Decking studies. Study results are based on experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com .
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2024 Financial Performance Highlights 1
$144M Net cash provided by operating activities LOGO USAGE
$1.2B Net sales
$2.09 Diluted EPS
$79M Income tax expense
31.3% EBITDA margin
$360M EBITDA
$232M Capital expenditures
$226M Net income
1 Earnings before interest, income taxes, depreciation and amortization (EBITDA) and EBITDA margin are considered non-GAAP measures. A reconciliation of non-GAAP measures to GAAP measures can be found in our earnings press release issued February 24, 2025, for the year ended December 31, 2024.
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2024 Sustainability Highlights
Environment 95% Decking raw materials sourced from recycled and reclaimed sources since inception 1.05B Pounds of reclaimed wood and PE film sourced for use in our products ~100% Trex process waste materials from our manufacturing recovered and re-incorporated into our processes ~19B Gallons of process water recycled in our manufacturing operations
People and Communities 1,838 Full-time employees as of December 31, 2024 62k+ Hours of leadership, onboarding, and professional development training completed by employees $500k+ Annual Distinguished Performance Awards made to 90 employees in recognition of their exceptional contribution 3,800+ Community groups and schools participated in the NexTrex® Recycling Challenge, recycling more than 2.9 million pounds of PE film
Governance 9 Independent directors on our 10-member Board 40% Board members are women 100% Office-based and field sales employees completed online ethics training 2024 Sustainability Report indexed to IFRS Sustainability Disclosure Standards
We are committed to driving positive sustainable change through innovation— expanding flexible plastic recycling; reducing our own environmental footprint; prioritizing employee health, safety, and well-being; strengthening local communities; and upholding the highest ethical standards. LOGO USAGE
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LOGO USAGE
CIRCULARITY Seeing more
IN THE PRODUCTS SECTION
Achieving Materials Circularity 9
CIRCULARITY IS OUR BUSINESS, AND WE CONTINUOUSLY INNOVATE TO FIND NEW SOURCES OF WASTE WOOD AND PLASTIC TO RECLAIM AND RECYCLE AS OUR PRIMARY RAW MATERIALS.
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Achieving Materials Circularity Over 30 years ago, we invented a product that spurred a category of its own—composite decking made from recycled and reclaimed materials—
By blending reclaimed wood fibers—like sawdust—with recycled plastic film from discarded items such as pallet wrap, shopping bags, and consumer packaging, Trex low-maintenance composite decking keeps millions of pounds of waste out of landfills every year. With approximately 95% of our materials coming from recycled and reclaimed sources, Trex stands as one of North America’s largest plastic film recyclers. Since we began, we’ve upcycled over five and a half billion pounds of waste plastic film, and that number keeps growing.
Our commitment to circularity drives us to continuously innovate—improving our manufacturing processes, reusing factory waste, and sourcing more reclaimed wood and plastic film for our products. Because our decking has a smaller environmental impact and lasts much longer than conventional wood, our customers can be confident they’re making a more sustainable choice.
putting ‘circularity’ at the heart of what we do, before the term had been invented. LOGO USAGE
“As fourth-generation winemakers and stewards of the land, sustainability is at the heart of everything we do. Trex’s use of 95% recycled materials in their decking was a game-changer for us. Our dock and beach stairs remain in perfect condition, while our neighbor’s wooden dock has deteriorated. Choosing Trex was the best decision for durability, longevity, and the environment.”
Rob & Lydia Mondavi Win emakers a nd home-ware designers
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Made From Recycled and Reclaimed Raw Materials
1.
Expanding Partnerships: We actively seek new partners and sources of waste PE film and reclaimed wood.
4. Recycling End-of-Life Products: We are exploring ways to recycle old Trex products back into production. While our processes are ready to accept this material, the main challenge is the logistics and cost of recovering end-of-life waste. In 2024, we expanded on earlier initiatives by partnering with a Texas-based distributor to consolidate and return scraps to our Virginia facility. Additionally, a pilot program in Illinois launching in 2025 will make it easier for homeowners and contractors to return cut offs and construction waste for recycling. We are also collaborating with our merchandising and distribution partners to recover waste film from their operations.
supply chain and strengthening relationships with our raw material partners. As our business grows, we are constantly innovating to increase the supply of recycled and reclaimed raw materials. By diversifying our sourcing of waste plastic film and reclaimed wood and improving efficiency in our manufacturing processes, we are ensuring that Trex continues to lead in circular practices. In addition, the commissioning of our Little Rock, Arkansas site will expand our PE processing capacity to meet foreseeable future demand. We follow a four-pillar strategy to maximize the circularity of our decking products and ensure that approximately 95% of our materials come from recycled and reclaimed sources:
2. Investing in R&D: We invest in research and development to test and recover additional streams of waste PE film that others have not yet tapped into for recycling. 3. Boosting Internal Circularity: We recycle nearly all production scraps back into our products. This includes line startups, scraps, cutoffs, rejects, field returns, and even used Trex boards. In 2025, we conducted a waste audit to identify more opportunities for in-house and external recycling.
In 2024, Trex sourced an impressive, 1,050 million pounds of waste PE film and reclaimed wood to make our decking products—an increase from 844 million pounds in 2023. While our demand for raw materials can vary due to seasonal and market factors, rapid scaling up or down of our sourcing is not practical. The organizations we partner with to collect waste PE film and reclaimed wood depend on Trex to pick up materials from their facilities regularly. That is why we have invested in warehouse capacity, building resilience into our LOGO USAGE
Post-retail sources such as plastic bags or wrap generated in back-of- house operations
Post-commercial sources from manufacturing or distribution centers such as waste plastic film from pallet wrap
Our propreietary manufacturing process is optimized to re-use factory waste and minimize emissions.
Post-consumer sources, plastic bags, wrap and other packaging collected by communities and schools or deposited in recycling bins in retail stores
Plastic film cleaned and ground into granules
Trex decking is made from 95% recycled PE plastic and reclaimed wood
Reclaimed wood from multiple sources
Sawdust made from ground wood
Quality inspection of finished boards that have been cooled and cut into length
Finished boards packaged and sent to customers
Plastic film and sawdust combined and heated
Mixture die-formed into boards
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How We Source Waste Plastic
Amount of Recycled PE Sourced (million pounds)
network—spanning post-commercial, post-retail, and post- consumer sources—we sourced more than 377 million pounds of PE in 2024.
SOURCES OF RECYCLED PLASTIC FILM Post-retail sources include stores that generate waste plastic bags or wrap in back-of-house operations before items reach the sales floor. Post-commercial sources include manufacturing hubs and/or distribution centers that frequently generate waste plastic film from pallet wrap. Post-consumer sources include used plastic bags, wrap, bubble mailers, dry cleaning bags, and other packaging that consumers deposit in our recycling bins in retail stores.
When Trex first began recycling plastic film, there were not many ways to reuse this material, and most of it ended up in landfills. Today, however, industries are stepping up to address the challenges of single-use plastics by incorporating recycled PE into their products and packaging—opening up new possibilities for reusing waste plastic film. Our NexTrex® recycling program partners with businesses that produce large amounts of plastic film waste, like stretch film, shrink wrap, pallet wrap, and plastic bags, to collect and recycle PE. Many of our commercial partners, including grocery stores and retailers, also serve as convenient drop-off locations for post-consumer PE. LOGO USAGE By 2024, the NexTrex® network had grown to include over 10,000 retail stores across the country. Through this extensive
421
Novel Sources of PE Film
377
328
As new recycling opportunities for PE continue to emerge, Trex remains committed to its founding principles by exploring new, largely untapped sources of waste PE. For example, we utilize end-of-life PE packaging materials which are often used by the food and chemical industry. We have focused our efforts on testing recycled trimmings generated during the production of certain personal use products. We have also invested in specialized equipment to allow us to process recycled material in various forms.
2024
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2023
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How We Source Sustainable Reclaimed Wood
Amount of Reclaimed Wood Sourced (million pounds)
Wood Sourcing Sustainability Credentials (% of total wood sourced)
In 2024, we estimate that 94% of the reclaimed wood we received came from certified sources and agricultural waste (see chart to the right). We remain committed to collaborating with our suppliers to validate and continuously update their certification records. Trex sources wood based on sustainability credentials to ensure responsible forest management and material traceability. This includes certifications from the Forest Stewardship Council (FSC Certified), Appalachian Hardwood Manufacturers Inc (AHMI Verified Sustainable), the Sustainable Forestry Initiative (SFI program), and others. We also source end-of-life orchard wood, which does not have an applicable certification. In total, 73% of our wood is sustainability certified, with an additional 21% coming from end-of-life orchard wood—bringing our responsibly sourced total to 94%.
At Trex, we source waste wood fiber in various forms from lumberyards, flooring and cabinet makers, and other wood processing companies to create our products. By using waste fiber as our raw material, we eliminate purchasing any virgin timber. However, we work closely with our suppliers to understand the origins and certifications of the virgin timber they purchase. We ask for details about the percentage of their wood that is sustainably certified and the specifics of those certifications. Our Fernley plant is a great example of circular sustainability, as it is fully supplied by waste orchard trees that have reached the end of their productive life. Farmers often face challenges in disposing of this wood, and we are proud to provide an efficient, environmentally conscious solution for this waste stream. LOGO USAGE
674
Sustainable certifications
592
516
End-of-life orchard wood (no applicable certification)
73%
21%
6%
Wood without sustainable certifications
2024
2022
2023
TREX VERSUS CONVENTIONAL WOOD DECKING Our wood-alternative composite decking products outperform traditional wood decking. They do not split, splinter, rot, or sustain structural damage from insects or fungal decay. 1 Made of 95% reclaimed and recycled materials, our decking is exceptionally durable and requires no sanding or chemical staining. Trex decking is warrantied for 25-50 years, depending on the product, which is at least as twice as long as the life of a wood deck.
TREX DECKING PRODUCT WARRANTIES 1
Trex Signature®
Trex Transcend® Lineage® 50 years
Trex Transcend®
Trex Select®
Trex Enhance®
50
50
35
25
1
Limited residential decking warranty period. See website.
years
years
years
years
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Increasing the Recycled Content of Our Other Raw Materials
Supply Chain
two wood decks to match the 25-year warranty of a deck built with Trex Enhance® decking. By replacing traditional wood decking, Trex helps reduce the demand for commercial forestry, supporting biodiversity and ecosystem health. Since January 1, 2023, all Trex composite deck boards sold for residential use come with limited warranties of 25, 35, or 50 years. Our proprietary shell technology protects against common weathering issues such as fading, staining, scratching, and mold. To ensure our products perform as promised, we rigorously test them both internally and externally during the design phase. We also obtain third-party verification to ensure compliance with International Building Code standards.
The impact has been transformative: dimensional variations have significantly decreased, manufacturing waste has been reduced, yield has improved, and product quality has reached new levels of consistency. Moreover, this innovation has enabled us to reallocate resources from manual inspections to proactive quality audits, fostering greater efficiency and driving continuous improvement. It has also opened the door to exploring many other in-line applications, paving the way for future advancements in our processes.
Trex aims to maintain a high-quality, resilient supply chain comprising partner companies that comply with all applicable environmental, labor, and human rights legislation. Our Vendor and Customer Code of Conduct and Ethics (Code) outlines our expectations for suppliers and customers. All suppliers must comply with these standards. We conduct risk assessments to determine the likelihood of vendors having difficulty in complying with our environmental, social, or quality standards. In cases where we assess there to be significant risks, we require new vendors to complete a virtual self-assessment of compliance with our Code. Self-assessments may be followed by operating facility tours and on-site audits. Trex sources the majority of its raw materials from suppliers located in the U.S. and Canada. We purchase specific components for Trex products from overseas vendors when necessary. When sourcing from outside North America, we contract with a third-party specialist firm to audit these companies, identify any code compliance issues, and ensure problems are remediated before they are onboarded.
Our wide range of high-performance, low-maintenance outdoor living products includes composite and aluminum railing kits and systems. We have taken another step forward in our commitment to circularity by increasing the recycled content of aluminum and PVC used in our railing products. In 2024, we increased the recycled content of our aluminum railing components to an average 78% compared to about 40% in 2023. We also use PVC for railing components and started incorporating recycled PVC, totaling 682,000 pounds in 2024. LOGO USAGE
Sustainability Certifications
Recycled and reclaimed materials used in Trex products position them as a preferred choice for customers seeking Leadership in Energy and Environment Design™ (LEED®) certification and International Code Council Evaluation Service (ICC-ES) validation. Our decking has been validated by ICC-ES as conforming to U.S. National Green Building Standards® for each category assessed. Use of Trex decking can add up to four points to a project on LEED® rating assessments.
Leveraging Technology to Maximize Yield
Designing Products That Last Longer and Use Fewer Materials
Technology is integral to optimizing production and ensuring outstanding product quality. In 2021, we introduced an advanced In-line Measuring System, fully deployed across all decking production lines by 2023. This cutting-edge system continuously monitors dimensional stability in real time.
Since launching our Transcend® product line in 2010, Trex has continued to innovate with products built to withstand weather and the test of time. Trex decks last at least twice as long as traditional wood decks. In fact, it would take a minimum of
MORE CIRCULAR RAILING We are proud to share that, through close collaboration with our suppliers, we have successfully increased the recycled content of the aluminum used in our railing products. The recycled aluminum content from our suppliers ranges from 30%-100%. Overall, the aluminum we purchase has an average recycled content of 78% by weight.
ABOUT LEED® AND ICC-ES
The U.S. Green Building Council’s LEED® green building program is the world’s most widely used and was created as a leadership standard defining best practices for healthy, high-performing green buildings. ICC-ES is a subsidiary of the International Code Council (ICC) that evaluates building products, materials, and systems and validates compliance with building codes and standards, including sustainable building standards.
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EFFICIENCY Seeing more
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Minimizing Our Environmental Footprint 15
QUALITY AND EFFICIENCY ARE INTEGRAL IN OUR MANUFACTURING OPERATIONS, MINIMIZING OUR ENERGY USE, REDUCING LANDFILL AND CONSERVING WATER RESOURCES.
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Minimizing Our Environmental Footprint
Environmental Policy
Our commitment to sustainability shapes every aspect of Trex manufacturing operations. Along with designing our products to be made primarily from reclaimed and recycled materials, we are dedicated to responsible management of our production-related energy use, water consumption, waste, and emissions. LOGO USAGE As our company’s manufacturing volume grew in 2024, requiring more resources, we stayed focused on quality and efficiency. This approach benefits our business, our customers, and the environment.
Reducing waste generated in our manufacturing and business operations
In 2024, we remained committed to continuous improvement in these key areas by aligning our manufacturing practices with ISO 14001 environmental management and ISO 9000 quality management standards. Additionally, we enhanced our data collection on the environmental performance of Trex manufacturing locations. By consolidating this data into a single digital platform, we improved management accountability, enabled more detailed reporting, and supported better-informed decision-making. Improved data management also helps us work more effectively with our partners, such as waste management contractors, to further Trex’s environmental sustainability goals.
Our Environmental Policy establishes the key principles we apply to integrate sustainability throughout our business:
Incorporating recycled, reclaimed, and other waste resources
Preventing pollution by maintaining environmental management as a core value
Developing and adopting environmentally acceptable, safe, and efficient production methods Identifying and complying with all legal and statutory requirements
TREX MANUFACTURING FACILITIES
SUSTAINABILITY GUIDES DESIGN OF LITTLE ROCK PLANT When we invest in new facilities, we seize the opportunity to build in our sustainability principles. Set to open in 2025, our new manufacturing facility in Little Rock, Arkansas, will include extensive features designed to reduce energy and water use. We are working with a third-party sustainability program consultant to verify that equipment installed in our Little Rock plant will deliver improved efficiency compared to industry standards. This process qualifies Trex for monetary rebates as well as yielding substantial annual energy cost savings, demonstrating that sustainable choices are good business. The new facility’s LED lighting, heating, ventilation, and air-conditioning systems are projected to achieve more than 7.4 million kWh of energy savings annually compared to less efficient standard alternatives. We expect additional energy savings and rebates from the installation of technology including efficient pumps, cooler fans, and chillers.
“My job is to ensure that people work safely and have the tools and support they need to succeed. This includes collaborating across departments to navigate the ever-evolving materials landscape. By focusing on performance and process optimization, we are able to consume
Owned Manufacturing, storage, office space
Virginia
Nevada
1.5 M sq ft
more recycled material and move closer to 100% landfill diversion. These cross- functional efforts and innovations help us stay flexible—enabling continuous progress and expanding what we’re able to repurpose.” Rena Maffei Production Manager, Winchester, Virginia
Leased Manufacturing, warehouse, research and development, storage, training
Virginia West Virginia
Nevada
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Energy and Climate Impact
Transportation
Energy Use
We transport raw materials and finished products to and from our production facilities by truck and by rail. In 2024, we increased our use of carriers certified through the Environmental Protection Agency (EPA) SmartWay® program, which helps logistics companies to improve transportation efficiency. SmartWay carriers transported 60% of our outbound decking loads in 2024, up from 28% in 2023. Also, we chose SmartWay carriers for 78% of shipments of railing products, compared to 85% in 2023. The decrease was due to Trex having more full truckload shipments, for which we use non-SmartWay carriers. Additionally, approximately 64% of our inbound shipments of recycled PE film came via SmartWay carriers, compared to 63% in 2023. We also began to introduce SmartWay carriers for wood loads in 2024 and have established a partnership that should increase our use of SmartWay for wood loads to more than 20% in 2025. We continue to prioritize rail transport for large shipments when feasible, providing a lower-carbon alternative to trucks. In 2024, we shipped 222 railcars, an increase of 95% compared to 2023. For product shipments, we offer the option to drop trailers at Trex distribution sites and later pick up a preloaded shipment, which reduces idling while trucks wait to be loaded. Through this program, we eliminated an estimated 7.1 metric tons of CO 2 e emissions.
2024
2022
2023
We take an energy-smart approach to our manufacturing processes and transportation to reduce our energy and fuel consumption and consequent greenhouse gas (GHG) emissions. Our focus on energy efficiency applies to all the electricity, natural gas, and fuel usage in our operations. We use energy- efficient LED lighting in all Trex manufacturing plants. Additional LED upgrades at our Virginia location further reduced electricity consumption by approximately 163,000 kWh in 2024.
426,922
Total energy use (electricity, natural gas, and fuels) – MWh
415,509
369,186
371
Energy use intensity – MWh/$ million sales
392
337
Breakdown of Energy Use (MWh)
2024
2022
2023
237,014 170,773
Electricity for manufacturing Natural gas for manufacturing
228,263 168,092
209,089
144,613
LOGO USAGE
10,202
Propane for forklift trucks
11,098 8,056
8,994 6,490
Our overall energy usage totaled 426,922 MWh in 2024, an increase of nearly 16% compared to 2023. Our energy intensity was 371 MWh/$ million sales, an increase of nearly 11% compared to 2023. These increases primarily resulted from the addition of several decking and railing lines along with increased powder coating production in 2024. In 2024, our absolute carbon emissions (Scope 1 and 2) totaled 105,053 metric tons of CO 2 e, an increase of 17% compared to 2023. Our GHG emissions intensity was 91 metric tons of CO 2 e/$ million sales, an increase of nearly 11% compared to 2023, driven by our increased production.
8,909
Diesel for backup generators, fire pumps, and intra-site transport
107
Solar-generated electricity at Trex headquarters office 1
N/A
N/A
Breakdown of Energy Use 2024 (%) 2
Natural gas for manufacturing
Propane for forklift trucks 2.4%
40.0%
Diesel for backup generators, fire pumps, and intra-site transport 2.1%
Solar-generated electricity at Trex headquarters oce 0.03%
55.5%
Electricity for manufacturing
Scope 1 & 2 GHG Emissions 3
2024
2022
2023
35,416 66,915 69,637 102,331 105,053
Scope 1 – Metric tons CO 2 e
34,924 97,848
29,854 60,893 59,559 90,747 89,413
Scope 2 (location-based) – Metric tons CO 2 e Scope 2 (market-based) – Metric tons CO 2 e
81,819
Scope 1 & Scope 2 (location-based) – Metric tons CO 2 e Scope 1 & Scope 2 (market-based) – Metric tons CO 2 e GHG emissions intensity (Scope 1 & Scope 2 market-based) – Metric tons CO 2 e/$ million sales
132,772
116,743
91
110
82
1
The headquarters office opened in June 2023. Totals may not add up to 100% due to rounding.
2
3 Location- and market-based GHG calculation methodologies are defined under the World Resources Institute GHG Protocol.
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Waste Diversion From Landfill
Reducing and Reusing Product Packaging
Waste Disposed and Recycled (Tons)
We continually improve Trex packaging to reduce the environmental footprint of our products. In addition, we seek opportunities to recycle used packaging materials we receive at our warehouses whenever feasible. In 2024, we reached agreement with one of our corrugated cardboard suppliers to return used corrugate for re-use in its 100% recycled packaging material. We recycled over 470,000 pounds of corrugate through this practice in 2024. In addition, we partnered with a merchandising vendor to retrieve dunnage (thin wooden strips that separate bundles of deck boards while in transport) from the vendor’s decking shipments. By returning the dunnage to Trex for re-use instead of sending it to landfill, this vendor is helping to divert nearly 36,000 pounds of material from landfill annually. In 2024, we also changed the packaging design for one of our railing kit SKUs to reduce the amount of cardboard required by more than 50%, with no adverse effect on shipping durability. This initiative will save approximately 7,400 pounds of cardboard annually.
2024 17,112 7,528
2022
2023
As part of our landfill diversion strategy, nearly all the scrap composite materials from our manufacturing are recovered and re-incorporated into our processes—a circular ‘closed-loop’ system. In 2024, we commissioned a third-party audit of our waste streams to better understand both the volume and the types of waste that Trex generates. We are using the results of this audit, which concluded in early 2025, to help identify and prioritize additional waste reduction opportunities at Trex locations. LOGO USAGE We disposed of approximately 17,112 tons of non-hazardous waste in 2024, a 6.7% increase compared to 2023. Our recycling of non-hazardous waste increased by 95% in 2024, to 7,528 tons. The increase is due to higher overall volumes and improved tracking of recycled streams. We have not made any significant changes to our waste handling procedures that would have diverted waste from landfill. Purge, a byproduct of waste PE reprocessing, accounts for a significant proportion of our non-hazardous waste each year. During 2024, we partnered with a materials management company to divert 63% of our purge waste from landfill for conversion into energy. This process generated nearly 1,100 MWh of electricity, contributing to the energy grid supplying Trex operations in Virginia. We dispose of all hazardous waste safely and in compliance with regulations. We sort and send universal waste, a subset of hazardous waste, to off-site recycling facilities. In 2024, we recycled all but about 200 pounds of hazardous waste.
Non-hazardous waste disposed
18,440
16,041 3,860
Non-hazardous waste recycled (including energy recovery)
3,867 1
0.1
Hazardous waste disposed
0.5
0.3
76.7
Hazardous waste recycled (including universal waste)
53
43
1
Figure restated with previously unavailable data.
2024 SUSTAINABILITY REPORT
INTRODUCTION
PRODUCTS
ENVIRONMENT
PEOPLE
LEADERSHIP
18
ONE COLOR SPRUCE
ONE COLOR BLACK
ONE COLOR
Water Use and Recycling
Biodiversity
Clean Air Technologies
~99% Process water recycled annually by closed-loop recirculation systems at our Virginia and Nevada manufacturing facilities
To minimize impact on air quality, we use approved EPA control technology to manage air emissions, such as particulates, volatile organic compounds (VOCs), and other air pollutants generated by our manufacturing processes. Emissions in all our plants are maintained below federal and state standards. We use control devices such as fabric filtration and wet scrubbers at both our Virginia and Nevada plants. In Virginia, we also use state-of-the-art regenerative thermal oxidation (RTO) equipment, which reduces VOCs by at least 95% and other air pollutants by 90% without using chemicals to treat the airstream. We are installing similar RTO units at our new Arkansas facility.
We strive to be good stewards of precious freshwater resources by reducing the amount of water we use and by managing the quality of runoff at our sites. We comply with all applicable regulations in locations where we operate. Trex does not have any operating locations in a high- or extremely high-risk water stress area as defined under the World Resources Institute Aqueduct tools . In 2024, we used 265 million gallons of water, an increase of 11% compared to 2023. This change is tied to our increased production as well as the new systems that we have started to bring online at our manufacturing facility in Little Rock. LOGO USAGE
We assess biodiversity impact when constructing new facilities or making significant changes at our existing sites. As part of the construction of our new Little Rock facility, we acted to protect biodiversity by minimizing our impact on nearby wetlands and maintaining 12 acres of wetlands within our 300-acre site.
Environmental Compliance
We diligently follow the terms and details in our permits to protect air, water, soil, and other natural resources. Our Environment, Health, and Safety team continually reviews Trex operations to ensure ongoing compliance. Trex did not incur any violations or fines in 2024.
Minimizing Water Use and Mitigating Runoff
Looking Ahead
We actively reduce water consumption in our manufacturing processes by employing a closed-loop recirculation system that recycles approximately 99% of the process water used at our Virginia and Nevada sites. The system initially draws from municipal water sources, moving through the system for multiple cycles and undergoing filtration processes for cleaning. This setup allows for the continuous re-use of water with minimal loss. We plan to implement the same system at our new facility in Arkansas. Additionally, we control the runoff of phosphorous, nitrogen and particulates from our sites through stormwater collection and filtration systems.
Chemicals Management
We will continue to implement lean manufacturing and continuous improvement processes across environmental, safety, and quality performance. This includes optimizing Trex manufacturing operations to reduce energy and climate impact. Our priorities in 2025 include improving how we gather data related to sustainability reporting, which will support compliance with third- party assurance. Additionally, we are committed to implementing methodologies that streamline our processes, such as automation that eliminates repetitive manual labor, and that ensure the safety of our employees.
We use heat to meld wood and plastic materials, incorporating a minimal amount of chemical additives in our product mix. These chemicals are carefully controlled, maintaining levels well below the acceptable thresholds for both occupational safety and environmental health. To responsibly manage materials containing potentially hazardous chemicals, we collaborate with a licensed waste management company for proper disposal and recycling. Our handling and storage practices strictly adhere to permit requirements and internal safety standards, ensuring a safe and compliant approach to chemical handling.
Water Use (Millions of Gallons)
Environmental Compliance
2024
2024
2022
2023
2022
2023
Number of violations (waste, water, chemicals, air emissions) resulting in a fine
265
Water from public supply Process water recycled 1
233
238
None
None
One
18,760
16,479
16,909
1 Process water recycled is specific to Trex manufacturing facilities.
2024 SUSTAINABILITY REPORT
INTRODUCTION
PRODUCTS
ENVIRONMENT
PEOPLE
LEADERSHIP
19
ONE COLOR SPRUCE
ONE COLOR BLACK
ONE COLOR
LOGO USAGE
POTENTIAL Seeing more WE SUCCEED WHEN OUR PEOPLE
IN THE PEOPLE SECTION
Prioritizing Health and Safety 20
AND COMMUNITIES THRIVE. WE FOSTER INCLUSIVE AND REWARDING WORKPLACES AND STRONG COMMUNITIES.
Empowering and Supporting Our People 23
Promoting Equal Opportunity 27
Partnering with Communities 30
2024 SUSTAINABILITY REPORT
INTRODUCTION
PRODUCTS
ENVIRONMENT
PEOPLE
LEADERSHIP
20
ONE COLOR SPRUCE
ONE COLOR BLACK
ONE COLOR
Prioritizing Health and Safety Keeping employees safe and providing resources to enhance their overall health are integral values at Trex. Safety Policy and Strategic Framework
We strive for continuous improvement in each of these areas to protect our people with stringent regulatory compliance and a safety-conscious workplace culture. Spurred by the increasing complexity of our operations, we further invested in our EH&S organizational structure in 2024 to address the company’s evolving requirements with deeper expertise and targeted resources—including an EHS director supported by an environmental manager and corporate safety manager. We also added a new EH&S specialist in the Distribution and Transportation Department.
Our comprehensive Environmental, Health, and Safety (EH&S) framework guides us through five core objectives:
Minimizing the risk of serious injuries and fatalities
Every member of the Trex community plays a vital role in maintaining a safe work environment. Our CEO and Board of Directors are responsible for ensuring compliance with applicable laws and the company’s own standards and practices. At Trex, our Occupational Health and Safety Policy lays out the key principles that guide our approach and sets clear expectations for every department across the company.
Analyzing and eliminating workplace hazards
We take proactive steps to prevent accidents, eliminate workplace hazards, and fully train and equip our employees to perform their work safely. Further, we offer robust healthcare benefits and wellness support to help our team members thrive— physically, mentally, and emotionally. LOGO USAGE
Improving incident response
Maintaining clean and organized facilities
Making safety part of the daily conversation
2024 SUSTAINABILITY REPORT
INTRODUCTION
PRODUCTS
ENVIRONMENT
PEOPLE
LEADERSHIP
21
ONE COLOR SPRUCE
ONE COLOR BLACK
ONE COLOR
Employee Safety Incidents
Reducing the Risk of Serious Injuries and Fatalities
A longer new-hire orientation process with expanded safety training Occupational Safety and Health Administration (OSHA) outreach training for EH&S leads
manufacturing equipment, powered vehicles, lockout/tagout procedures, working in confined spaces, and other potentially hazardous situations.
In 2024, our lost time incident rate (LTIR) 1 was 0.95. We track such incidents monthly and observed an increase during the first half of last year as we were ramping up capacity to support the market. Most of these incidents involved employees with less than one year of tenure. We addressed this trend by developing and implementing a comprehensive strategy which includes: A robust new-hire training program focused on building safety competency Reorganizing the EH&S department and increasing the number of trained professionals at all manufacturing facilities Training managers and supervisors on hazard awareness and mitigation tactics that focus on prevention Incorporating safety questions into the annual engagement survey to identify opportunities to improve safety culture LOGO USAGE
We believe that all workplace accidents and injuries are preventable. To help achieve our goal of eliminating such incidents, we reinforce safe work practices as the top priority for all Trex employees and regularly assess our facilities for potential safety issues. In 2024, we updated our policies governing high-risk activities within Trex operations that have the potential to cause significant injury or death, including motor vehicle accidents, falls from heights, fires, explosions, and incidents involving machinery or heavy objects. To further reinforce our preventative approach, we launched Rules to Live By, an initiative focused on ensuring our workforce clearly understands our safety practices relating to the use of
Analyzing and Eliminating Hazards
New informational campaigns that reinforce safety rules
A job hazard analysis for non-standard work activities
Bi-weekly review of safety work orders
Trex EH&S specialists work closely with frontline manufacturing employees to identify and correct potential risk factors before they lead to an accident or injury. Our Find It, Fix It hazard reporting initiative encourages workers to share concerns with their supervisor, an EH&S specialist, or a member of the Plant Safety Committee.
As a result, we significantly reduced both the number and severity of lost-time incidents in the second half of 2024. Despite the year-over-year increase, our LTIR remained well below the industry average 2 of 1.71 as compiled by the U.S. Bureau of Labor Statistics. Also, our Total Recordable Incident Rate (TRIR) 3 declined from 3.61 in 2023 to 3.24 in 2024, below the industry average. By continuing to step up our safety-related actions, we aim to reduce our LTIR by at least 7% in 2025.
Employee Safety Incidents
Bureau of Labor Statistics — industry average 2
2024
2022
2023
0.95 3.24
Trex lost-time incident rate (LTIR) 1
0.66
0.47
1.7 4.1
Trex total recordable incident rate (TRIR) 3
4.75
3.61
LTIR 1 vs Industry
TRIR 3 vs Industry
4.75
Industry average 2
Industry average 2
3.61
3.24
0.95
1
OSHA defines LTIR as the number of incidents that result in time away from work, divided by the total number of hours that employees worked during a given period. Industry average related to North American Industry Classification System (NAICS) code 321999 for the most recent reported year: 2023.
0.66
0.47
2
3
OSHA defines TRIR as the frequency of recordable safety incidents per 100 full-time workers annually.
2024
2024
2022
2023
2022
2023
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