Climate Change Data

Environmental Metrics

Social Achievements

• Implemented various measures to help ensure the safety and well-being of employees, following guidelines issued by the U.S. Centers for Disease Control and Prevention and the World Health Organization.
• Annual turnover rate for driver graduates of approximately 6.4%, which is below the Company-wide turnover rate for all drivers of approximately 9.0%.

Climate Goals & Targets

Environmental Challenges

• Supply chain challenges impacted equipment manufacturers in 2021 and may continue in 2022.
• Shortages of suitable real estate may limit growth and cause congestion.
• Projected freight volume growth may differ from actual results.
• Growth may strain management, capital resources, information systems, and customer service.
• Competition for qualified employees could adversely affect profitability.
• Difficulty maintaining corporate culture.
• Expanding service offerings may require entering new markets and encountering new competitive challenges.
• Limited supply and increased costs of new equipment may adversely affect profitability and cash flows.
• Risks related to health epidemics, pandemics, and similar outbreaks.
• Fluctuations in the availability and price of diesel fuel.
• Seasonal factors, harsh weather conditions, and disasters.
• Significant ongoing cash requirements.
• Decrease in the demand and value of used equipment.
• Inability to successfully consummate and integrate acquisitions.
• Risks arising from international business operations and relationships.
• Anti-terrorism measures and terrorist events.
• Downward pricing pressures and other factors that may adversely affect operations and profitability.
• Increased costs of compliance with, or liability for violation of, existing or future regulations.
• Legal, regulatory, or market responses to climate change concerns.
• Healthcare legislation and other mandated benefits-related coverage may increase costs.
• Risks of litigation and governmental proceedings.
• Legislative, regulatory, and legal developments involving taxes.
• Cybersecurity and technology risks.

Mitigation Strategies

• Using older equipment and purchased transportation to ensure adequate capacity.
• Fuel surcharge programs to offset increased diesel fuel costs.
• Regularly monitoring pricing components and addressing individual account profitability issues.
• Investing in new equipment and facilities to support growth.
• Utilizing third-party transportation services to supplement workforce and equipment needs.
• Security processes, protocols, and standards to protect information systems.
• Maintaining insurance to address costs associated with cyber incidents and data privacy concerns.
• Adapting operations to new technologies.
• Investing in and enhancing technology systems.
• Maintaining a competitive and comprehensive benefits plan for employees.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• 10-year average turnover rate for driver graduates is approximately 6.9%, which is below the 10-year average turnover rate for company-wide drivers of approximately 9.8%
• Safety bonuses paid to drivers totaled $5.3 million in 2022

Climate Goals & Targets

Environmental Challenges

• Recent supply chain challenges have adversely impacted our equipment manufacturers.
• Higher costs for or limited availability of suitable real estate may adversely affect our business operations.
• Our growth may be limited by the availability and cost of third-party transportation used to supplement our workforce and equipment needs.
• We may be adversely impacted by fluctuations in the availability and price of diesel fuel.
• We have significant ongoing cash requirements that could limit our growth and affect our profitability if we are unable to obtain sufficient capital.
• A decrease in the demand and value of used equipment may impact our results of operations.
• We may be unable to successfully consummate and integrate acquisitions.
• We are subject to various risks arising from our international business operations and relationships, which could adversely affect our business.
• Anti-terrorism measures and terrorist events may disrupt our business.
• Increases in employee compensation and benefit packages used to attract and retain qualified employees, including drivers and maintenance technicians, and addressing general labor market challenges could adversely affect our profitability, our ability to maintain or grow our fleet and our ability to maintain our customer relationships.
• If we are unable to retain our key employees, or if we do not continue to effectively execute our succession plan, our business, results of operations and financial position could be adversely affected.
• Our information technology systems are subject to cyber and other risks, some of which are beyond our control, which could have a material adverse effect on our business, results of operations and financial position.
• If we do not adapt to new technologies implemented by our competitors in the LTL and transportation industry, our business could suffer.
• If we are unable to invest in and enhance or modernize our technology systems in a timely manner or at a reasonable cost, or if we are unable to train our employees to operate the new, enhanced or modernized systems, our results of operations and financial condition could be adversely affected.
• Any disruption in the operational and technical services provided to us by third parties could adversely affect our business and subject us to liability.
• The FMCSA’s CSA initiative could adversely impact our ability to hire qualified drivers, meet our growth projections and maintain our customer relationships, each of which could adversely impact our results of operations.
• We operate in a highly regulated industry, and increased costs of compliance with, or liability for violation of, existing or future regulations could have a material adverse effect on our business.
• We are subject to various environmental laws and regulations, and costs of compliance with, liabilities under, or violations of, existing or future environmental laws or regulations could adversely affect our business.
• We may be adversely affected by legal, regulatory, or market responses to climate change concerns.
• Healthcare legislation and other mandated benefits-related coverage may increase our costs for employee healthcare and benefits and reduce our future profitability.
• We are subject to the risks of legal proceedings and claims, governmental inquiries, notices and investigations which could adversely affect our business.
• We are subject to legislative, regulatory, and legal developments involving taxes.

Mitigation Strategies

• Our fuel surcharge programs are one of many components that we use to determine the overall price for our transportation services.
• We utilize purchased transportation services from third-party transportation providers in our domestic linehaul network to supplement our equipment and our workforce when needed to support our growth initiatives and to maximize the efficient movement of LTL freight within our service center network.
• We have security processes, protocols and standards in place to protect our information systems, including through physical and software safeguards, as well as redundant systems, network security measures and backup systems.
• We maintain insurance intended to address costs associated with aspects of cyber incidents, network failures and data privacy-related concerns

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Maintained low employee turnover rates (10.1% company-wide, 7.4% for driver graduates), attributed to company culture and comprehensive benefits package.
• Safety bonuses paid to drivers totaled $5.5 million in 2023.

Governance Achievements

• Adopted a Code of Business Conduct applicable to all directors, officers, and employees.
• Established a Clawback Policy to recoup incentive compensation in case of accounting restatements.

Climate Goals & Targets

Environmental Challenges

• Continued softness in the domestic economy leading to lower freight volumes.
• Higher costs for real estate, equipment, fuel, parts, repairs, insurance, and other expenses due to inflationary pressures.
• Decreased freight density in the network due to reduced freight volumes.
• Shortages of qualified drivers and maintenance technicians.
• Increased costs for employee benefits and healthcare.
• Cybersecurity risks.
• Compliance with increasingly stringent environmental regulations, particularly concerning emissions from heavy-duty engines (Clean Trucks Plan, Advanced Clean Fleets rule).

Mitigation Strategies

• Yield management strategy focused on price increases to offset cost inflation.
• Cost control measures in a low-volume environment.
• Investment in new capacity to accommodate future growth.
• Fuel surcharge programs to mitigate the impact of fluctuating diesel fuel prices.
• Comprehensive benefits package and employee engagement initiatives to retain employees.
• Comprehensive cybersecurity program including technical safeguards, incident response plans, and employee training.
• Elected the ZEV Milestones Option under CARB's ACF rule to phase in zero-emission vehicles.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes concerning emissions and fuel efficiency.
• Increased customer focus on sustainability.

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

Climate Goals & Targets

Environmental Challenges

• Harsh winter weather, hurricanes, tornadoes, floods and other natural disasters can also adversely impact our performance by reducing demand and increasing operating expenses.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Harsh winter weather, hurricanes, tornadoes, floods