Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established a Board Diversity Policy in 2018.
• Adopted a formal policy in 2018 for managing its commitment to social and environmental matters.
• In 2019, the Corporate Governance and Nominations Committee was charged with providing appropriate oversight on ESG matters.

Climate Goals & Targets

Environmental Challenges

• Market declines in 2019 were materially greater than assumptions in the fiscal 2019 operating plan.

Mitigation Strategies

• Adapted and flexed its operating structure to appropriately align costs with the revenue stream, deliver organic market share gains, and position itself for anticipated market growth.

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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Medallion Plastics regrinds approximately 75 tons of plastic annually.
• Middlebury Hardwoods reclaims and reuses over 50% of defective wood and wood waste.
• Sigma Wire reuses 5,000-6,000 packaging units monthly and recycles approximately 120 tons of scrapped copper wire annually.
• Initiatives to reduce carbon footprint and manage waste included replacing light bulbs with LEDs, exploring electric forklifts, replicating wood recycling programs, and paper/cardboard recycling (22 tons).

Social Achievements

• COVID-19 response including creation of a task force, provision of PPE, enhanced facility disinfecting, and exceeding $600,000 in charitable contributions (62% increase).
• Continued investment in the Patrick Industries Impact Leadership Program.
• Partnership with Care Camps to support children battling cancer.

Governance Achievements

• Amendment to charters, Code of Ethics and Business Conduct, and Governance Guidelines.
• Board Diversity Policy consideration.
• Establishment of a formal ESG committee.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing operational disruptions and a five-week shutdown in some facilities.

Mitigation Strategies

• Temporary salary reductions for NEOs and other executives, furloughing of team members with benefits, temporary reduction in cash fees for the Board, compensation reduction for salaried team members, and a freeze on non-essential hiring.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental, Health and Safety
• Social Responsibility
• Corporate Governance

Social Achievements

• Invested in human capital initiatives

Governance Achievements

• Amendment to Charters; Code of Ethics and Business Conduct; and Governance Guidelines
• Board Diversity Policy
• Environmental, Health and Safety / Social Responsibility and Corporate Governance Disclosures
• Information Security Risks/Matters

Climate Goals & Targets

Environmental Challenges

• Supply chain challenges impacted all major markets in 2021

Mitigation Strategies

• Leveraged available production capacity, buying power, and procurement strength between brands to secure incremental inventory for customer production
• Continued strategic investment in automation and information systems
• Invested in human capital initiatives

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Increased investment in our philanthropic platform, creating more opportunities for community engagement at all levels of our organization

Governance Achievements

• Published inaugural Responsibility & Sustainability Report in December 2022 outlining progress on ESG initiatives
• Creation of a sustainability data collection framework to improve accountability, transparency, and accuracy across operations

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Environmental Metrics

ESG Focus Areas

• Empowering People
• Caring for Our Planet
• Living by Our Policies

Environmental Achievements

• 60% total waste recycling rate

Social Achievements

• 36% reduction in the Total Recordable Incident Rate
• engagement of over 3,000 team members in leadership training experiences

Governance Achievements

• Implementation of an Incentive Compensation Recovery Policy (Clawback Policy)

Climate Goals & Targets

Environmental Challenges

• Higher inflation and interest rates impacting end markets
• Challenged end market demand

Mitigation Strategies

• Stringent inventory and cost management
• $260 million of debt paid down
• $158 million reduction in inventory
• Year-over-year declines in expenses through prudent management of operations
• Investment in automation, product innovations and BETTER Together training

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB