2024 SUSTAINABILITY REPORT
INTRODUCTION
PRODUCTS
ENVIRONMENT
PEOPLE
LEADERSHIP
36
ONE COLOR SPRUCE
ONE COLOR BLACK
ONE COLOR
Integrated Sustainability Governance
Executive Management Team
At Trex, our Board reviews the sustainability matters most relevant to our business to establish current and future priorities. Quarterly Board discussions consider our assessment of sustainability risks, such as raw materials supply and safety. The board has formally appointed its Nominating/Corporate Governance Committee to oversee sustainability matters and the Audit Committee to oversee cybersecurity. LOGO USAGE
Risks to supplies of the waste materials we reclaim and recycle to manufacture Trex decking.
Labor shortages or increases in labor costs could adversely impact our business and results of operations.
Our executive management team is responsible for the integration of sustainability priorities into our business strategy. Our Sustainability Manager, reporting to the Chief Legal Officer, coordinates implementation and reporting of our sustainability programs. We keep our stakeholders engaged on sustainability topics through investor presentations, conferences, reports, website updates, and periodic news articles. Our CEO and other senior executives also connect informally with stakeholders to gather valuable feedback.
Impact
Impact
Our business could suffer from the termination of significant sources of raw materials, the payment of higher prices for raw materials, reduction in quality of available raw materials, or from the failure to obtain sufficient additional raw materials to meet planned increases in production.
We rely heavily on our employees, and any shortage of qualified labor could adversely affect our business by impairing our ability to function optimally and meet our production targets. A labor shortage may also require us to pay higher wages for employees and incur a corresponding reduction in our profitability.
Nominating / Corporate Governance Committee
Mitigation
Sustainability Risks
Our Nominating/Corporate Governance Committee receives the full support of our leadership team—including the President and CEO, Senior Vice President and CFO, and Senior Vice President, Chief Legal Officer, and Secretary. The Committee receives information about sustainability risks, opportunities, and performance (including climate issues) from company Officers at every meeting. This informs the Committee’s guidance on strategy and risk management and broad sustainability objectives. The Committee has oversight of the skills and competencies required to manage Trex sustainability issues and ensures appropriate controls, management processes, and targets are in place.
Mitigation
We continually diversify supply and develop new sources of wood fiber and waste PE to meet our growing raw materials needs. Innovation in our processes enables Trex to use novel waste materials with varying specifications that were not previously suited to our needs. The commissioning of our Little Rock, Arkansas, site will expand our PE processing capacity to meet foreseeable future demand.
Our employee training and development programs available at all levels in our workforce are designed to foster long and rewarding career progression in Trex, minimizing voluntary leavers. Extensive employee engagement including surveys and communications channels encourage loyalty and shared vision between our employees and our company. We benchmark and review our pay and benefits against industry standards and update our compensation structure periodically to remain competitive in the market. Our equal opportunity recruitment and workplace practices ensure we have access to a wide talent pool.
Of the risks identified in the 2024 Trex 10-K, the following are wholly or partially related to sustainability issues (right and page 37 ). For more information see our 10-K .
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