Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethics & Governance
• Employees & Culture
• Environment & Sustainability

Environmental Achievements

• Calculated Scope 1 and 2 GHG emissions for the first time.
• Reduced waste output at Greenville office by approximately 50% through recycling.
• Implemented initiative to replace fluorescent lighting with LED lighting to conserve energy.

Social Achievements

• Created a comprehensive Diversity & Inclusion (D&I) program.
• Launched a monthly internal D&I newsletter.
• Offered new D&I educational opportunities to employees.
• Introduced Employee Resource Groups focused on women and mental health.
• Named one of the Best Places to Work in South Carolina for the seventh consecutive year.

Governance Achievements

• Performed first-ever ESG materiality assessment.
• Aligned reporting with the Sustainability Accounting Standards Board (SASB) framework.
• Implemented stringent workplace safety standards.

Climate Goals & Targets

Environmental Challenges

• Understanding and reducing Scope 3 emissions (supply chain emissions).
• Maintaining employee engagement in a flexible work environment.

Mitigation Strategies

• Undertaking the process of understanding the most likely sources of GHG emissions in the supply chain.
• Administering employee engagement surveys and conducting focus group sessions.
• Planning monthly/quarterly virtual and in-person events and engagement opportunities for employees.

Supply Chain Management

Responsible Procurement

• Business Partner Code of Conduct requiring suppliers to operate responsibly in areas of human rights, health and safety, environment, and business ethics.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Awards & Recognition

• Best Places to Work in South Carolina (7 consecutive years)

Environmental Metrics

ESG Focus Areas

• Diversity, Equity, and Inclusion
• Employee Engagement
• Data Security and Privacy
• Supply Chain Resilience
• Environmental Sustainability

Environmental Achievements

• Reduced on-site waste from an average of 40 cubic yards per week to 16 cubic yards per week at Greenville headquarters through improved recycling.
• Converted approximately 90% of lighting in corporate headquarters to LED lighting.
• Recycled 17,000 pounds of e-waste and specialized materials in 2023.

Social Achievements

• Launched Employee Voices, a new employee engagement survey with over 70% participation in North America.
• Introduced The Bridge, a new digital workplace enhancing global communication and collaboration.
• Launched two additional Employee Resource Groups (ERGs) in North America in 2023, focusing on women, gender equity, mental health, multicultural issues, race equity, LGBTQIA+, and people with disabilities.
• Donated approximately $400,000 and provided volunteer hours to over 70 nonprofits in 2023.

Governance Achievements

• Updated and reviewed Business Ethics and Code of Conduct Policy in fall 2023.
• Implemented stringent workplace safety standards with a 0.58 Total Recordable Incident Rate (TRIR) in the US in 2023.
• Maintained ISO 9001:2015 certification since 1998 for its primary US distribution center and relevant headquarters departments.

Climate Goals & Targets

Environmental Challenges

• Ransomware attack in May 2023 impacting IT systems.
• Understanding and reducing Scope 3 emissions from the supply chain.

Mitigation Strategies

• Implemented incident response plan, restored core systems, and strengthened IT security infrastructure following the ransomware attack.
• Undertaking the process of understanding the most-likely sources of GHG emissions in the supply chain and will report on progress over time.

Supply Chain Management

Responsible Procurement

• Business Partner Code of Conduct requiring suppliers to operate responsibly in human rights, health and safety, environment, and business ethics.
• Commitment to conflict-free sourcing of metals and elimination of conflict minerals.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 9001:2015

Awards & Recognition

• 2024 Best Places to Work in South Carolina
• Fortune magazine’s 2024 list of World’s Most Admired Companies
• 2023 Changemaker Award by Fill it Forward

Environmental Metrics

ESG Focus Areas

• Business ethics
• Diversity, equity and inclusion
• Data security and privacy
• Employee engagement, training and development
• Environment and Sustainability

Environmental Achievements

• Estimates for Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions; waste reduction initiatives such as ScanSource’s recycling program; and energy management initiatives, such as converting ScanSource facility lighting to LED

Social Achievements

• Diversity, Equity and Inclusion Program Expansion: New educational opportunities, employee resource groups, and workforce recruitment strategies; Community Impact: Support for more than 70 nonprofits through financial donations, volunteering or drives; Introduced unconscious bias training for all employees; Launched a DEI learning channel via our internal learning management system for employees; Launched two additional ERGs in North America; Introduced Employee Voices, a new employee engagement survey, and The Bridge, a new digital workplace.

Governance Achievements

• Shareholder Engagement Efforts: Engaging with our shareholders and considering their views as we make decisions is an important part of the Board’s commitment to strong corporate governance. Our engagement efforts focus on building relationships, expanding dialogue to cover strategy and governance topics and collecting shareholder feedback.

Climate Goals & Targets

Environmental Challenges

• Fiscal 2024 was a challenging year, our team stayed focused and delivered strong profitability and significant free cash flow for the full year. For fiscal 2024, net sales, gross profit and net income declined; however, we expanded our gross profit margin and executed well on improving our working capital efficiency as supply chain disruptions normalized. Soft demand environment continued into fiscal 2025.

Mitigation Strategies

• During fiscal 2024, we focused on building a cash culture and managing our SG&A to match our lower revenue base and expectations into fiscal 2025. We adjusted some of our annual cash incentive plan performance metrics to reflect that. The Company managed to significantly reduce working capital needs, primarily from lower inventory levels, while still delivering excellent service to our channel partners. We will continue to manage our SG&A spending appropriately in fiscal 2025.

Supply Chain Management

Responsible Procurement

• Business Partner Code of Conduct requires that our suppliers and partners throughout the supply chain are dedicated to the values of corporate social responsibility, fairness, and ethics.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB