Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Used more than 850 million pounds of polyethylene film and reclaimed wood fibers in products.
• Invested in closed-loop water recirculation systems at manufacturing facilities, recycling approximately 99% of water used.
• Launched NexTrex™, a collection program expanding recycling initiatives.
• Achieved approximately 8% annual energy savings from 2017-2019.

Social Achievements

• Voluntary turnover rate for employees with more than one year of service was only 7%.
• Increased number of women in leadership roles to 22%.
• Trex team members received more than 1,600 hours of leadership development training.
• Two-thirds of leadership positions were filled from within the company.
• Improved onboarding program resulting in over 25% increase in hourly worker retention.
• $310,000 corporate community investment.
• Successful United Way campaign raising $211,000.

Governance Achievements

• Advanced leadership succession plan.
• All employees complete annual ethics training.
• Updated key ethics policies.
• Directors and executive officers hold more than 3 times their required minimum stock holdings.

Climate Goals & Targets

Environmental Challenges

• Lack of efficient collection processes prevents used Trex decking and railing products from being recycled at the end of their lifespan.

Mitigation Strategies

• Trex will make all efforts to advance recycling programs as composite use becomes more widespread and collection programs are developed. A solution will require collaboration from various organizations across the industry.

Supply Chain Management

Supplier Audits: Supply chain assessments conducted for significant purchases and business opportunities, including in-person reviews and operating facility tours.

Responsible Procurement

• Vendor and Customer Code of Conduct and Ethics; 95% of raw materials purchased from suppliers located in the US and Canada; use of post-consumer and post-industrial content where possible; Operation Clean Sweep pledge.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Carbon pricing considerations and trends

Opportunities

• Cost and carbon-cutting, energy reducing clean technologies

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Trex Enhance®, Trex CustomCurve®, Trex RainEscape®, Trex Transcend®, Trex Select®

Awards & Recognition

• Green Builder Media Readers’ Choice Awards (greenest decking)
• Remodelers’ Choice 100
• 2019 Eco-Leader (Green Builder)
• Best of Houzz design award

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Governance

Environmental Achievements

• Upcycled more than 900 million pounds of plastic film and reclaimed wood.
• Reduced energy use related to cooling by approximately 40% in 2020.
• Recycled nearly 100% of factory scrap back into the manufacturing line.

Social Achievements

• Developed a COVID-19 pandemic response plan to ensure safe working conditions.
• Provided flexible time for all employees affected by the COVID-19 pandemic.
• Launched a first-ever diversity and inclusion training initiative.

Governance Achievements

• Updated voting procedures for electing directors, introducing majority rather than plurality voting.
• No corporate funds were donated for political advocacy or other political purposes in 2020.
• Recorded zero environmental compliance issues at its manufacturing operations in 2020.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations and employee well-being.
• Supply chain disruptions (implied due to reliance on recycled materials).

Mitigation Strategies

• Implemented a comprehensive COVID-19 response plan including safety measures and flexible work arrangements.
• Continuously researching new sources of recycled polyethylene film and reclaimed wood to ensure supply.

Supply Chain Management

Supplier Audits: More heavily on self-assessments in 2020 due to the pandemic; will resume on-site audits when safe.

Responsible Procurement

• Trex Vendor and Customer Code of Conduct and Ethics

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB Building Products and Furnishings standard

Sustainable Products & Innovation

• Trex composite decking (95% recycled and reclaimed materials)

Awards & Recognition

• 2020 Sustainability Leadership Award (Business Intelligence Group)
• Greenest decking (Green Builder Readers’ Choice Awards, 11 straight years)

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Governance

Environmental Achievements

• Diverted more than 1 billion pounds of polyethylene film and reclaimed wood from landfill for use in products.
• Reduced greenhouse gas emissions intensity by 33% compared to 2020.
• Recycled more than 16.5 billion gallons of water in manufacturing operations.

Social Achievements

• Added approximately 400 employees.
• Increased women in management by 4 percentage points and ethnically diverse talent in management by 4 percentage points compared to 2020.
• Employees completed 65,000+ hours of leadership, safety, onboarding, and professional development training.
• 42% of Trex Residential employees participated in the wellness program.

Governance Achievements

• Added ESG oversight to the charter of the Nominating/Corporate Governance Committee.
• Formalized ESG oversight at the executive level, naming Leslie Adkins Vice President, Marketing and ESG Development.

Climate Goals & Targets

Environmental Challenges

• Increased Lost Time Incident Rate (LTIR) due to rapid expansion and increased new hires requiring safety training during the COVID-19 pandemic.
• Challenges in conducting in-person safety training for new hires due to the pandemic.

Mitigation Strategies

• Comprehensive update of EH&S strategy, including increased safety training, strengthened EH&S leadership, increased safety team staffing, and improved work area structure.
• New EH&S achievement program to establish targets and measure progress at each Trex production site.
• Increased use of vendors’ self-assessments due to pandemic-related travel restrictions.

Supply Chain Management

Supplier Audits: Relied more heavily on vendors’ self-assessments in 2021 due to pandemic-related travel restrictions.

Responsible Procurement

• Vendor and Customer Code of Conduct and Ethics

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB Building Products & Furnishings standard, UN Sustainable Development Goals

UN Sustainable Development Goals

• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 12
• 13

Report details Trex's contributions to various UN SDGs, including health, education, gender equality, water, energy, economic growth, innovation, inequality, sustainable consumption and production, and climate action.

Sustainable Products & Innovation

• Composite decking made from 95% recycled and reclaimed materials.

Awards & Recognition

• America’s Most Trusted Outdoor Decking Brand (Lifestory Research)
• Readers’ Choice for “Greenest” Decking (Green Builder magazine)

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Employee Well-being and Diversity, Equity & Inclusion
• Community Engagement
• Corporate Governance

Environmental Achievements

• Diverted and recycled more than 5 billion pounds of recycled polyethylene (PE) film since inception.
• Recycled 337 million pounds of waste polyethylene (PE) film in 2022.
• Reduced total energy use by 3% compared with 2021.
• Reduced total non-hazardous waste disposed by 27% to 18,440 tons in 2022.
• Increased recycling of non-hazardous waste by 48% to 3,864 tons in 2022.
• Recycled 99% of water used at Virginia and Nevada manufacturing facilities.
• Reduced paper use by 475,000 pounds by replacing a 60-page product brochure with a digital QR code mailer.
• Transitioned one product to a new packaging design using 27% less material, eliminating nearly 4,000 pounds of strapping and more than 640 pounds of labels per year.

Social Achievements

• 50% decrease in lost-time incident rate (LTIR) compared with 2021.
• Increased women in management roles to 30% (from 26% in 2021).
• Increased ethnically diverse employees in management roles to 12% (from 10% in 2021).
• Completed more than 40,000 hours of leadership, onboarding and professional development training.
• Contributed more than $400,000 in donations to community causes in 2022.
• Expanded NexTrex® community outreach and recycling program, benefiting more than 3,300 community groups and schools.

Governance Achievements

• 33% of Board of Directors are women.
• 12% of Board members identify as ethnically diverse.
• All Officers and Directors complied with stock ownership guidelines.
• 100% completion rate of online ethics training for office-based and field sales employees.

Climate Goals & Targets

Environmental Challenges

• Increased channel inventories in the third quarter of 2022 requiring cost structure alignment with demand.
• Decline in demand from distribution partners in late June 2022 due to economic factors.

Mitigation Strategies

• Reduced production levels and streamlined employee base.
• Reduced employee count to match reduced demand.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor and Customer Code of Conduct and Ethics; purchasing 95% of raw materials from US and Canada; risk assessments and virtual self-assessments for new vendors; facility tours and on-site audits.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB Building Products & Furnishings standard, Sustainable Development Goals (SDGs)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 12
• 13

Trex's initiatives contribute to these SDGs through environmental stewardship, employee well-being, diversity and inclusion, community engagement, and responsible governance.

Sustainable Products & Innovation

• Composite decking and fencing; composite and aluminum deck railing kits and systems.

Awards & Recognition

• 2023 Sustainable Brand Leader (Green Builder Media®)
• America’s Most Trusted Outdoor Decking Brand (Lifestory® Research)
• No. 6 on Industry Week’s 50 Best U.S. Manufacturers
• 2022 and 2023 Sustainable Product of the Year (Green Builder Media®)