INTRODUCTION OUR PLANET OUR SUPPLY CHAIN OUR PEOPLE OUR COMMUNITY ABOUT THE REPORT
Cars are among the most complex mass-produced devices ever created. Yet the capacity and convenience a vehicle provides can make us oblivious to the plethora of moving parts that sustain our access to this mobility mode. And, if something breaks down, as it
inevitably does, a robust automotive aftermarket allows for most repairs and maintenance to be done fairly quickly – if the car owner can get the right parts. Traditional vehicles have 30,000 distinct parts, while some electric vehicles have 15,000 parts. What’s more, manufacturers create distinctly di�erent versions of various parts; such “parts proliferation” makes it challenging for distributors to stock parts that are ordered less often. However, Parts Authority has chosen to di�erentiate itself in the marketplace by making a signi�cant investment in stocking a larger percentage of the “long tail” of aftermarket components. Today, we stock over 550,000 SKUs from over 700 global suppliers that can support more than 15 million vehicle repair applications.
OUR SUPPLY CHAIN
Parts Authority’s focus on building an outstanding supply chain organization has made us a leader in the warehouse distribution ecosystem of the automotive aftermarket. As a leader we take responsibility advancing our sustainability, and for supporting the sustainability progress of our broad supplier network. Our company is strengthening its sustainable procurement processes to better assess suppliers’ sustainability e�orts and to spark collaboration to reach higher sustainability goals – and further enhance their business success. As a starting point, Parts Authority has developed a Sustainable Procurement Policy, which sets goals for our supply chain from environmental and social perspectives. In support of the policy, we seek to have at least 60% (by sales volume) of our top vendors sign our Supplier Code of Conduct (or share their own equivalent code of conduct) by 2023. Our Code outlines our expectations for suppliers on material topics such as energy consumption, greenhouse gas emissions, health and safety, human rights and other topics. It helps to ensure that we prioritize working with companies who accept the principles of our Supplier Code of Conduct. To assess our suppliers’ maturity on ESG topics, we have a supplier questionnaire to gather information on relevant topics, actions, policies and certi�cations. The questionnaire supports conversations with our suppliers about how we can provide support to improve their sustainability. In addition, we train our company’s buyers on sustainability topics to ensure they grasp both the challenges and bene�ts of sustainable procurement and how to integrate these factors into supplier selection. Supplier Policies and Procedures • Sustainable Procurement Policy: Contains objectives and measures for each of Parts Authority’s material issues, including general corporate social responsibility performance of our supply chain; social performance; environmental performance; materials sourcing, and supply chain resiliency. • Supplier Code of Conduct: Parts Authority is committed to conducting business in a sustainable manner, which means ensuring that our actions as well as suppliers’ are aligned with sustainability principles. We ask them to complete a sustainability-focused questionnaire and to sign our Supplier Code of Conduct. • Forced Labor Policy: Our Purchasing team is responsible for ensuring that our vendors have signed the Supplier Code of Conduct (the “Code”). As part of signing the Code, a supplier a�rms that its operations remain free of forced and child labor; the supplier also agrees to respect international agreements regarding human rights, such as the United Nations Declaration on Human Rights.
22 Sustainability Report 2023: The Composition of a Responsible Organization
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