Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Employee Well-being
• Diversity and Inclusion

Environmental Achievements

• Reduced freshwater usage by an average of 11% and recycle 33% of water, on average, during the wash process
• More efficient wash process than DIY home wash (estimated to use more than three times the amount of water per wash)

Social Achievements

• Established the Mister Cares Foundation, granting over $175,000 to over 200 employees
• Raised average wages for non-managerial hourly workers by 5% in 2020 and 6% in Q1 2021, while reducing turnover
• +55 Employee Net Promoter Score

Governance Achievements

• Women represent approximately half of the senior management team

Climate Goals & Targets

Environmental Challenges

• Increased competition in the car wash industry
• Maintaining and increasing demand for UWC subscription program
• Successfully implementing growth strategies
• Risks and regulations related to credit card and debit card payments
• Economic downturns impacting consumer spending
• Maintaining and enhancing reputation and brand recognition
• Opening and operating new locations timely and cost-effectively
• Identifying attractive acquisition targets at attractive prices
• Changes in labor and chemical costs, other operating costs, interest rates and inflation
• Indebtedness
• Restrictive covenants in Credit Facilities
• Various laws and regulations
• Environmental laws and regulations
• Data security and privacy risks
• LGP's significant ownership and potential conflicts of interest
• Status as a controlled company and exemptions from certain corporate governance requirements
• Status as an emerging growth company and reduced reporting requirements
• Potential for stock price volatility

Mitigation Strategies

• Active programs to identify acquisition targets and greenfield expansion locations
• Focus on operational excellence, innovation, data analytics, and positive industry trends to grow UWC membership
• Disciplined approach to acquisitions and integration process
• Proactive measures to augment liquidity (drawing on credit facilities, rent deferrals, etc.) during the COVID-19 pandemic
• Extensive measures implemented in response to COVID-19
• Robust training & development programs and talent pipeline
• Dedicated regional support infrastructure
• Sophisticated technology and proprietary products
• Strategic market density
• Compliance programs
• Data security measures
• New employment agreement with CEO, including severance benefits and restrictive covenants
• Adoption of executive officer and director stock ownership guidelines

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Drought conditions impacting water access
• Severe weather events impacting water access and facility damage

Sustainable Products & Innovation

• Proprietary cleaning products
• Unity Chemistry System
• Dynamic Dry system
• HotShine wax system

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Employee Well-being
• Community Investment

Environmental Achievements

• Uses proprietary cleaning products free of phosphates and dyes
• Recycles an average of 33% of water used in wash process
• Wash process is more efficient than DIY home wash (estimated to use more than three times the amount of water)

Social Achievements

• Raised average wages for non-managerial hourly workers by 5% in 2020 while reducing turnover
• Offers attractive benefits including paid parental leave, 401(k) program, health benefits, paid time off, and tuition reimbursement
• Established the Mister Cares Foundation in 2020, granting over $175,000 to over 200 individuals

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased competition in the car wash industry
• Maintaining and increasing demand for UWC subscription program
• Successfully implementing growth strategies
• Risks and regulations related to credit card and debit card payments
• Economic downturns impacting consumer spending
• Maintaining and enhancing reputation and brand recognition
• Opening and operating new locations in a timely and cost-effective manner
• Identifying attractive acquisition targets
• Changes in labor and chemical costs, interest rates, and inflation
• Indebtedness
• Restrictive covenants in Credit Facilities
• Various laws and regulations
• Environmental laws and regulations
• Data security and privacy risks
• LGP's significant ownership and potential conflicts of interest
• Status as a controlled company
• Reduced reporting requirements as an emerging growth company

Mitigation Strategies

• Active programs to identify acquisition targets and greenfield expansion locations
• Member-centric approach to UWC, adding dedicated lanes and RFID technology
• Investments in training, technology, and innovation
• Proactive measures to augment liquidity during COVID-19 pandemic
• Extensive measures implemented in response to COVID-19
• Marketing initiatives to maintain and enhance brand recognition
• Data-driven approach to site selection for greenfield locations
• Disciplined approach to acquisitions
• Labor optimization model to drive maximum volume
• Robust training and development programs
• Dedicated regional support infrastructure
• Sophisticated technology and proprietary products
• Compliance programs and procedures
• Data security measures
• Not disclosed
• Not disclosed
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Long-term relationships with key vendors
• Leveraging scale and purchase quantities for competitive pricing

Climate-Related Risks & Opportunities

Physical Risks

• Water availability impacted by climate change and drought

Transition Risks

• New restrictions on GHG emissions

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

• Unity Chemistry
• Dynamic Dry
• HotShine wax system

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Employee Well-being
• Water Conservation

Environmental Achievements

• Reduced freshwater usage by an average of 11%
• Recycled 33% of water, on average, during the wash process

Social Achievements

• Raised average wages for non-managerial hourly workers by 5% in 2020 and 6% in Q1 2021
• Established the Mister Cares Foundation, granting over $175,000 to over 200 employees
• Reduced team member turnover in the first 30 days of employment by approximately 50% over the last three years
• +55 Employee Net Promoter Score

Governance Achievements

• Adopted a code of conduct applicable to all directors, officers, and employees

Climate Goals & Targets

Environmental Challenges

• Increased competition in the car wash industry
• Maintaining and increasing demand for the UWC subscription program
• Successfully implementing growth strategies
• Risks and regulations related to credit card and debit card payments
• Economic downturns impacting consumer spending
• Maintaining and enhancing reputation and brand recognition
• Opening and operating new locations timely and cost-effectively
• Identifying attractive acquisition targets
• Changes in labor and chemical costs, interest rates, and inflation
• Indebtedness
• Restrictive covenants in Credit Facilities
• Compliance with various laws and regulations
• Environmental laws and regulations
• Data security and privacy risks
• LGP's controlling interest
• Controlled company status and exemptions from corporate governance requirements
• Emerging growth company status and reduced reporting requirements
• Potential anti-takeover effects
• Stock price volatility
• Lack of securities analyst coverage
• COVID-19 pandemic

Mitigation Strategies

• Active programs to identify acquisition targets and greenfield expansion locations
• Focus on operational excellence, innovation, data analytics, and positive industry trends to grow UWC membership
• Disciplined approach to acquisitions and integration
• Proactive measures to augment liquidity during COVID-19 (drawing on credit facilities, rent deferrals, etc.)
• Extensive measures to respond to COVID-19 (protective gear, sanitizing, cashless transactions, etc.)
• Investing in training, infrastructure, and technology to improve speed of service, quality, and sustainability
• Developing a strong talent pipeline and robust training programs
• Leveraging scale to drive operating leverage and generate robust free cash flow

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Drought conditions impacting water access
• Severe weather events interrupting water service

Sustainable Products & Innovation

• Proprietary cleaning products
• Unity Chemistry System
• Dynamic Dry system
• HotShine Carnauba wax waterfall

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Refined staffing model to ensure wash locations run efficiently, allowing focus on competitive wages and benefits and investment in team member training and development, resulting in a 6% reduction in team members while adding 40 locations.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Overall decline in the health of the economy and other factors impacting consumer spending (natural disasters, recession, inflation, worsening economic conditions); inability to attract new customers, retain existing customers, and maintain or grow the number of Unlimited Wash Club members; failure to acquire, open, and operate new locations in a timely and cost-effective manner; inability to successfully implement growth strategies; risks and regulations related to credit card and debit card payments; supply chain disruptions and increased operating costs; difficulty hiring and retaining qualified personnel or increases in labor costs; leasing or subleasing land and buildings; indebtedness; various laws and regulations; environmental laws and regulations; data security and privacy risks; inability to adequately protect intellectual property; stock price volatility.

Mitigation Strategies

• Enhanced sourcing procedures to identify alternative suppliers and avoid supply chain disruptions; refined staffing model; transition from LIBOR to SOFR; implemented ESG and sustainability strategies to reduce GHG emissions; conducting due diligence regarding potential exposure to environmental liabilities and overall regulatory compliance for acquired locations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather events, including droughts, wildfires and flooding

Transition Risks

• regulatory changes on greenhouse gas emissions

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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Social Achievements

• Increased team members by 4% to approximately 6,600, primarily due to adding 40 net locations.

Governance Achievements

• Adopted a Compensation Clawback Policy on December 1, 2023.

Climate Goals & Targets

Environmental Challenges

• Inflationary pressures on operating costs and administrative expenses.
• Potential for reduced consumer demand for car washes during economic downturns.
• Difficulty hiring and retaining qualified personnel, resulting in higher labor costs.
• Risks related to credit card and debit card payments.
• Dependence on a limited number of suppliers for equipment and supplies.
• Data security and privacy risks.
• Increasingly complex privacy and security laws and regulations.
• Potential for infringement claims related to intellectual property.
• Evolving global climate change regulations and effects of greenhouse gas emissions.
• Government regulations and weather conditions affecting water availability.

Mitigation Strategies

• Enhanced sourcing procedures to identify alternative suppliers and avoid supply chain disruptions.
• Implemented a risk-based cybersecurity program with multiple layers of security controls.
• Considering and implementing sustainability strategies to reduce GHG emissions.
• Refining staffing model to ensure efficient operation of wash locations and competitive wages and benefits.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, including droughts, wildfires, and flooding.

Transition Risks

• New federal or state legislation or regulations on greenhouse gas emissions.