Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community participation
• Environmental sustainability
• Culture
• Human capital
• Investor outreach

Social Achievements

• Thirty-three dealerships were named to the Automotive News Top 100 Dealerships to Work For in the United States. For the second year in a row, a Penske dealership was ranked #1 in the United States.

Climate Goals & Targets

Environmental Challenges

• Brexit impacting new and used sales, consumer confidence, and the economic environment in the U.K.
• Shortage of certain vehicles due to new fuel economy testing and emissions standards (WLTP and RDE) in the U.K. and Europe.
• Reduced demand for diesel vehicles in the U.K.
• Potential ban on gasoline and gasoline hybrid engines in cars and vans in the U.K. by 2032.
• Cyber-attacks and security breaches.
• Climate change and potential for more stringent environmental regulations.

Mitigation Strategies

• Proactive strategy for environmental, health, and safety compliance, including periodic inspections by third parties.
• Periodic control testing and audits on information systems, employing dedicated and third-party resources to monitor and protect against cyber-attacks.
• Data-driven marketing strategy to enhance customer service and drive sales.
• Implementation of docuPAD® to improve document processing, menu presentation of finance and insurance options, and reduce paper usage.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions

Transition Risks

• Increased fuel economy requirements
• Restrictions on emissions
• Reduced demand for diesel vehicles

Awards & Recognition

• Automotive News Top 100 Dealerships to Work For
• Fortune Magazine’s “World’s Most Admired Companies”

Environmental Metrics

ESG Focus Areas

• Human Capital
• Community Participation
• Environmental Sustainability
• Investor Outreach

Environmental Achievements

• Deployed several strategies for reducing or optimizing energy use, such as installing LED lighting, occupancy sensors, energy-efficient glass, and high-efficiency heating, ventilation and air conditioning (HVAC) systems.
• Deployed several strategies to ensure the efficient use of resources and responsible disposal of waste, including hazardous waste, and use third parties to manage, collect and process recycling for many of the materials that go through our service departments.
• Recycling worn-out tires collected from participating U.S. retail dealerships and eliminating the use of paper for internal communications and customer documentation.
• Network of EV charging stations totaled over 2,000, including a combination of Level 1 (standard), Level 2 (240V), and Level 3 (fast charging) capabilities.
• Approximately 27% of new vehicles sold in 2023 in the U.S. and U.K. combined were either electric or hybrid electric vehicles.

Social Achievements

• Published 2023 Corporate Responsibility Report highlighting the Company's environmental, social, and governance strategies, activities, progress, metrics, and performance for 2022.
• Donated $2.8 million to charities in 2023.
• Supported the Paralyzed Veterans of America (PVA) since 2015, contributing collectively more than $9.8 million.

Governance Achievements

• Over 99% of the votes cast by stockholders approved 2022 named executive officer compensation.
• ESG oversight by Nominating and Corporate Governance Committee.
• Clawback Policy requires the repayment of unfairly awarded executive officer compensation in the event of a financial restatement.
• Director independence guidelines more stringent than NYSE guidelines.
• Annual election of our Board of Directors.
• Company policy prohibits Directors and employees from hedging our Common Stock.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB Multiline & Specialty Distributors sector standard, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric vehicles

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Human Capital, Diversity, Equity, and Inclusion
• Community Participation
• Environmental Sustainability-Electric Vehicles
• Managing our Energy Use and Reducing Waste

Environmental Achievements

• Installed over 2,000 charging stations
• Approximately 26.7% of new vehicles sold in 2023 in the U.S. and U.K. combined were either Electric Vehicles or hybrid electric vehicles
• Deployed several strategies for reducing or optimizing our energy use, such as installing LED lighting, occupancy sensors, energy-efficient glass, and high-efficiency heating, ventilation, and air conditioning (HVAC) systems.
• Deployed several strategies to ensure the efficient use of resources and responsible disposal of waste, including hazardous waste, and use third parties to manage, collect, and process recycling for many of the materials that go through our service departments.
• Recycling worn-out tires collected from participating U.S. retail dealerships and eliminating the use of paper for internal communications and customer documentation

Social Achievements

• 44 of our dealerships were named to the "Automotive News Best Dealerships To Work For"
• Dealerships recognized for commitment to promoting diverse and inclusive workplaces
• PTG was named as the winner of the 2023 "Successful Dealer Award"
• Company named a winner of Glassdoor's 16th Annual Employees' Choice Awards, "Best Places to Work 2024"
• Penske Automotive Group named by Fortune as a "World's Most Admired Company"
• Annual employee turnover of approximately 20% is below our industry's average
• Donated $2.8 million to charities in 2023

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the war in Ukraine and shortage of microchips and other components
• High rate of inflation affecting vehicle prices, parts prices, employee pay, consumer credit, and consumer demand
• Unavailability of quality, low-mileage used vehicles
• Reduced new and used vehicle gross profit due to improved supply
• Affordability challenges, inflation, higher interest rates, and reduced consumer spending
• Transition to agency model for new vehicle sales in the U.K. and Europe
• Increased competition from online vehicle retailers
• Increased competition from manufacturers selling directly to consumers
• Potential for U.S. franchise laws to be repealed or amended
• Rapid changes to the automotive and trucking industries due to new mobility models and vehicle electrification
• Uncertainty regarding the impact of driverless vehicles
• Significant debt and other commitments
• Risk of default under financing commitments
• Variable interest rates on debt
• Impairment of goodwill or other intangible assets
• Performance of sublessees
• International and foreign currency exchange risk
• Performance of joint ventures
• Control exercised by vehicle manufacturers
• Governmental regulations, claims, and legal proceedings
• Privacy regulations
• Vehicle recalls
• Vehicle requirements and emissions standards
• Tariff and trade risk
• Climate change and environmental regulations
• Accounting and disclosure rules and regulations
• Related party transactions and influence of major stockholders
• Property loss, business interruption, or other liabilities
• Information technology and cybersecurity risks

Mitigation Strategies

• Diversified revenue and gross profit mix
• Geographic diversification
• Brand diversification
• Digital strategy/omnichannel approach
• AI-driven technologies
• Investing in premium retail automotive and commercial truck dealerships
• Returning value to shareholders through dividends and share repurchases
• Proactive strategy related to environmental, health, and safety compliance
• Insurance programs
• Integrated marketing strategy
• Data-driven marketing approach
• Digital marketing
• Online reputation management
• Robust corporate governance policies
• Information Security Program
• Cybersecurity risk assessments
• Incident response plan
• Third-party engagement and oversight
• Board of Directors oversight
• Management's role in managing risk
• Regular audits to assure and maintain compliance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather, flooding

Transition Risks

• regulatory changes, market shifts

Opportunities

• development of energy-efficient products

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric Vehicles

Awards & Recognition

• Automotive News Best Dealerships To Work For
• Successful Dealer Award
• Glassdoor's Best Places to Work 2024
• Fortune's World's Most Admired Company

Environmental Metrics

ESG Focus Areas

• Sustainability
• Energy Efficiency
• Electric Vehicles
• Waste Reduction
• Renewable Energy

Environmental Achievements

• Embracing energy efficiency
• Offering electric vehicles
• Eliminating pollution and waste
• Modern building standards
• Leveraging partnerships (Shell)
• Renewable energy sources
• Encourage use and sales of EVs
• Increasing EV service opportunities
• Installing charging stations
• Recycling of hazardous waste, tires, etc.
• Paperless processes
• Water reclamation

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric Vehicles

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to natural disasters, shortage of vehicle components, war in Ukraine, challenges in sourcing labor or labor strikes or work stoppages, or other disruptions.
• Changes in the retail model either from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of electric vehicles.
• The effects of a pandemic on the global economy, including our ability to react effectively to changing business conditions in light of any pandemic.
• Increased tariffs, import product restrictions, and foreign trade risks that may impair our ability to sell foreign vehicles profitably.
• Changes in tax, financial or regulatory rules, or requirements, including new regulations proposed by the Federal Trade Commission for automotive dealers.

Mitigation Strategies

• Geographic diversification, concentration on higher margin regular service and parts revenues, and diversification of our customer base to reduce the negative impact of adverse general economic conditions or cyclical trends.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes, market shifts to zero-emission technologies