Trex 2024 Sustainability Report

2024 SUSTAINABILITY REPORT

INTRODUCTION

PRODUCTS

ENVIRONMENT

PEOPLE

LEADERSHIP

26

ONE COLOR SPRUCE

ONE COLOR BLACK

ONE COLOR

Employee Recognition

Employee Communications

Turnover in Workforce

handwritten note of appreciation or even a gift card from their manager. This program is another step in efforts to strengthen engagement and ensure that team members feel valued for their contributions.

Employee recognition is built into our training curriculum for all Trex managers, and we take time to honor the outstanding work of our employees through several initiatives. The annual Distinguished Performance Awards, our preeminent recognition program, honors high-performing individuals in roles below director level for their above-and-beyond contributions. Team members are nominated for these awards based on specific criteria, followed by executive team and Board consideration to determine the final honorees. In 2024, we distributed cash and equity awards totaling $517,500 to 90 employees through this award program. Our newest recognition program, Above and Beyond, launched in December 2024 to reward team members who excel in their work and exemplify Trex core values. Employees may receive a LOGO USAGE

We use a variety of channels to disseminate information and improve internal communications. These include our company intranet, business updates disseminated via email, online links to corporate policies, and compilations of frequently asked questions. At manufacturing sites, we conduct pre-shift daily huddles and periodic roundtable sessions to facilitate interaction between employees and site leadership teams. Our leadership teams at production facilities organize quarterly town halls to exchange information with employees. In addition, executive leadership hosts quarterly calls for employees to present financial results from the quarter and other business updates.

In 2024, the voluntary turnover rate among hourly employees who have been with us for more than one year was 4.5%, slightly below our 2023 rate of 4.8%. Across all our salaried and hourly employees, voluntary turnover was 15.0%, up from 10.0% in 2023. Our total turnover rate also increased from 18.8% in 2023 to 26.1% in 2024. Increased hiring across Trex last year contributed to the rise in turnover, as the rate of leaving among new hires is typically higher than among established employees.

Employee Engagement

We use the Gallup Q12® tool to conduct our annual employee engagement survey and follow-up activities, which include action plans that our people managers develop with individual team members to improve overall engagement and employee experience. Notable results from our 2024 survey included an overall increase in engagement scores and improved accountability scores related to our action planning. We are applying insights from the survey to help drive continuous improvement at Trex and strengthen our workplace culture.

TREX APEX LEAGUE Through this program, we honor the commitment, perseverance, and excellence of employees who have worked at Trex for at least 25 years. Each year, we host a dinner for new and previous

TREX FAMILY FUN DAY For a second straight year, we hosted a Trex Family Fun Day at our locations in Virginia and Nevada as an opportunity for socializing and camaraderie outside of working hours. Employees and their families enjoyed a picnic lunch and games as part of the day’s events.

Employee Turnover

2024

2022 1

2023 2

Hourly workers with > 1 year of service Voluntary turnover rate

4.5%

17.0%

4.8%

3.3%

Involuntary turnover rate

15.9%

4.4%

All employees Voluntary turnover rate Involuntary turnover rate

15.0% 11.0% 26.1%

21.0% 10.0%

inductees to further build a sense of camaraderie and community. In 2024, we inducted 12 employees into the Apex League.

14.6%

8.8%

Total turnover rate

35.6% 18.8%

1

Includes a reduction in force.

2

Includes a reduction in force in Nevada.

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