HUNTERSVILLE, N.C. — ATD is embracing ESG in order to be more G-R-E-E-N.
And that's just the start.
American Tire Distributors Inc. (ATD) has released its first Environmental, Social, Governance (ESG) report in hopes of "assertively leading the industry toward a better, more sustainable future," it said.
ATD said its environmental measures focus on reducing greenhouse gas (GHG) emissions by 25% by 2030 and replacing carbon-based energy sources with renewable sources.
The company also intends to expand its use of electric or alternative-fuel vehicles, reduce energy consumption and increase the recycling and repurposing of materials across its North American fleet and distribution centers and its field support center in Huntersville.
"Our corporate vision is to help our customers thrive and drive into the future, with a stated purpose to be the most connected and insightful automotive solutions provider," ATD President and CEO Stuart Schuette said.
"We consider ESG to be a key factor driving business resilience and as a leader in the industry and tire replacement ecosystem, we serve as a critical and expeditious link between manufacturers and customers of all types."
The replacement tire industry historically has lagged other sectors in taking responsibility for its community impact, ATD said. The company is encouraging others in the industry to embrace ESG.
ATD's ESG effort began in 2017 with the creation of its Sustainability Committee, which consulted with independent ESG and corporate governance research firm Sustainalytics to assess ATD's ESG standing.
In its first report on the company, Sustainalytics gave ATD a low-risk rating of 140 out of almost 13,000 companies and fourth among 36 retailing distribution companies studied in 2020.
"The release of our first ESG report is an important milestone not only for ATD, but also for the broader automotive aftermarket industry," Mr. Schuette said. "The overarching goal of our sustainability initiatives is providing superior service while lowering our carbon footprint.
"By launching services for our retail and manufacturing partners that eliminate the need for inefficient transportation methods while reducing GHG impacts, we're setting the industry standard and ultimately helping drive improved results across our industry.
"We are early in our sustainability goals, but by aiming for these ambitious targets, we expect to be well on our way to realizing sustainability in every sense of the word."
ATD said that in order to achieve its purpose — to help its customers thrive and drive into the future— it must first "understand, empower and nurture the human capital within the company." ATD's social goal is centered on "careers, culture and the community," which extends to active engagement and support of the communities it serves, the company said.
"Good governance is a fundamental principle at ATD and encourages a culture of transparency, legal compliance and ethical conduct," ATD said. "ATD values a strong company culture that promotes clear expectations of ethical behavior, trust and confidence between the company, its shareholders and its communities. The company reinforces this commitment through training and firm accountability measures."
Because ATD links suppliers and customers, the company can help its partners solve legacy problems — including environmental impacts — that threaten the industry's productivity, profitability and performance, Mr. Schuette said.
"Our aim is to ensure we thrive amidst change, revolutionize our ecosystem and remain a high-performance company constantly steering toward success," he said.