Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, Environment, Safety and Security

Environmental Achievements

• Completed a corporate-wide implementation of ISO 14001 (except Ibero, expected by early 2012).
• Established objectives, targets and plans to reduce fuel consumption and CO2 emissions intensity (targets ranging from 0.25% to 2.5% annual reduction).

Social Achievements

• Good employee and union relations.
• Built a maritime training facility near Amsterdam, Netherlands.
• Established the European Cruise Academy in Rostock, Germany.

Governance Achievements

• Adopted a code of ethics that applies to all employees.

Climate Goals & Targets

Environmental Challenges

• High fuel costs.
• Compliance with environmental regulations (MARPOL, ECA, etc.).
• Economic weakness in Spain impacting Ibero Cruises.
• Potential for accidents, disease outbreaks, and adverse weather conditions.

Mitigation Strategies

• Fuel supplement (in some brands).
• Investment in fuel conservation initiatives and emission abatement technologies.
• Shore power connections in several ports.
• Monitoring and investigating new abatement technologies.
• Collaboration with public health agencies.
• Insurance coverage for various risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions, natural disasters

Transition Risks

• Legislation regulating CO2 emissions

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: ISO 14001 (most brands)

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Our ability to find and retain skilled personnel; our ability to execute our growth strategy; the effects of competition; changes in the number of deaths in our markets; changes in consumer preferences; our ability to generate preneed sales; the investment performance of our funeral and cemetery trust funds; fluctuations in interest rates; our ability to obtain debt or equity financing on satisfactory terms; our ability to consummate the divestiture of certain businesses; increased or unanticipated costs, such as insurance or taxes; our level of indebtedness; changes in federal income tax laws and regulations; effects of litigation and burial practice claims; effects of the application of other applicable laws and regulations; consolidation of the funeral and cemetery industry; our ability to integrate acquired businesses with our existing business; and other factors and uncertainties inherent in the funeral and cemetery industry.
• Price competition could also reduce our market share or cause us to reduce prices to retain or recapture market share, either of which could reduce revenue and margins.
• Our ability to generate preneed sales depends on a number of factors, including sales incentives and local and general economic conditions.
• Our funeral and cemetery trust funds own investments in equity securities, fixed income securities, and mutual funds, which are affected by market conditions that are beyond our control.
• Increasing death benefits related to preneed funeral contracts funded through life insurance contracts may not cover future increases in the cost of providing a price-guaranteed funeral service.
• The financial condition of third-party insurance companies that fund our preneed funeral contracts may impact our future revenue.
• Increased or unanticipated costs, such as insurance or other taxes, may have a negative impact on our earnings and cash flow.
• Changes in taxation as well as the inherent difficulty in quantifying potential tax effects of business decisions could have a material adverse effect on the results of our operations, financial condition, or cash flows.
• Covenant restrictions under our debt instruments may limit our flexibility in operating and growing our business.
• Our level of indebtedness could adversely affect our financial condition and prevent us from fulfilling our debt obligations.
• Economic, financial and stock market fluctuations could affect future potential earnings and cash flows and could result in future goodwill, intangible assets and long-lived asset impairments.
• We rely significantly on information technology and any failure, inadequacy, interruption or security lapse of that technology, including any cybersecurity incidents, could harm our ability to operate our business effectively.
• The funeral and cemetery industry is competitive.
• Declines in the number of deaths in our markets can cause a decrease in revenue.
• The increasing number of cremations in the United States could cause revenue to decline because we could lose market share to firms specializing in cremations.
• If we are not able to respond effectively to changing consumer preferences, our market share, revenue and profitability could decrease.
• Because the funeral and cemetery businesses are high fixed-cost businesses, changes in revenue can have a disproportionately large effect on cash flow and profits.
• Changes or increases in, or failure to comply with, regulations applicable to our business could increase costs or decrease cash flows.
• We are subject to environmental and worker health and safety laws and regulations that may expose us to significant costs and liabilities.
• Unfavorable results of litigation could have a material adverse impact on our financial statements.
• Burial practice claims could have a material adverse impact on our financial results.
• Failure to maintain effective internal control over financial reporting could adversely affect our results of operations, investor confidence, and our stock price.

Mitigation Strategies

• We believe that our culture is very attractive to owners of premier independent businesses that fit our profile of suitable acquisition candidates.
• We believe that our capital structure provides us with financial flexibility by allowing us to invest our cash flow in growth opportunities, such as business acquisitions and cemetery inventory projects.
• We have demonstrated the ability to generate strong and stable cash flow.
• We believe that we have strong field-level gross profit margins and that this performance is a testament to the success of our business strategies.
• We have implemented information systems to support local business decisions and to monitor performance of our businesses compared to financial and performance standards.
• We are committed to continue operating an efficient organization and strengthening our corporate and local business leadership.
• We are focused on educating and providing our cremation customers additional services and products that are available.
• We operate under a local, decentralized preneed sales strategy whereby each business location customizes its preneed program to its local needs.
• We monitor current and forecasted interest rate risk in the ordinary course of business and seek to maintain optimal financial flexibility, quality and solvency.
• We maintain substantial security measures and data backup systems to protect, store, and prevent unauthorized access to such information.
• We have historically experienced price competition primarily from independent funeral home and cemetery operators, and from monument dealers, casket retailers, low-cost funeral providers and other non-traditional providers of services or products.
• We are always at risk of not complying with the regulations or facing costly and burdensome investigations from regulatory authorities.
• We believe we are in substantial compliance with existing environmental laws and regulations, we cannot assure that we will not incur substantial costs in the future.
• We believe that we are in substantial compliance with all applicable laws and regulations relating to worker health and safety.
• We believe that the reserves and our insurance provide reasonable coverage for known asserted and unasserted claims.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Strong safety program focusing on policies and training to ensure employee safety; commitment to diversity and inclusion across all workforce levels; conducted Employee Engagement Survey to measure employee engagement and satisfaction.

Governance Achievements

• Adopted a Code of Conduct for directors, officers, and team members; Board of Directors has oversight responsibility for strategic and operational risks, including cybersecurity; Audit Committee regularly reviews cybersecurity strategies, processes, and controls.

Climate Goals & Targets

Environmental Challenges

• Competition from national, regional, and local retailers; changes in consumer preferences; successful implementation of growth strategies; maintaining and enhancing brand; importing a substantial portion of merchandise from foreign sources; dependence on third-party producers; vendor failures to meet quality control standards or comply with product safety regulations; supply chain disruptions; reliance on third-party transportation vendors; labor disruptions or shortages; attracting and retaining key employees; rising oil and gasoline prices; increased transportation costs; damage to distribution centers; vulnerability of IT infrastructure to cyberattacks; changes in general economic conditions; pending or unforeseen litigation; ESG risks.

Mitigation Strategies

• Continuous monitoring of home design trends; execution of long-term business strategy (increasing retail footprint, expanding online presence, improving operational efficiency, introducing new products, driving traffic to stores and e-commerce); advertising campaigns; dedicated quality control specialists on-site during production; real-time information to track import orders; robust distribution and delivery system; investments in website and technology; cybersecurity framework, incident response plan, employee training, supplier risk assessments, third-party cybersecurity assessments; compensation programs to attract and retain employees; disciplined approach to capital allocation; cybersecurity risk management and strategy processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Dedicated quality control specialists on-site during production; works with industry designers and manufacturers in factories throughout Asia; maintains overall inventory levels within an appropriate range and reduce the number of written sales awaiting product delivery; real-time information to closely follow import orders.

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

• Our Governance
• Our World
• Our Community
• Our Philanthropy

Social Achievements

• Launched Capri FLEX, a learning management system, offering training on compliance, ethics, diversity & inclusion, and supply chain transparency.
• Expanded employee listening approach with a global employee survey.
• Launched a new mentorship program.
• Implemented a hybrid working environment.

Climate Goals & Targets

Environmental Challenges

• Increased scrutiny from investors and others regarding corporate social responsibility initiatives and changing regulatory requirements around ESG.
• Risks associated with climate change and other environmental impacts.
• Risks associated with importing products and the imposition of additional duties, tariffs, or trade restrictions.
• Fluctuations in tax obligations and changes in tax laws, treaties, and regulations.
• Failure to comply with labor laws or collective bargaining agreements, or if independent manufacturing contractors fail to use acceptable, ethical business practices.

Mitigation Strategies

• Publicly announced global strategy to achieve significant, measurable goals across a range of important environmental and social sustainability issues.
• Science-based targets around greenhouse gas emissions (GHG) reductions.
• Supply chain empowerment programs.
• Global customs and product compliance organization.
• Supplier Code of Conduct and Factory Social and Environmental Compliance Program.
• Periodically assess the realizability of deferred tax assets and the adequacy of deferred tax liabilities.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Business Partners and Factory Social Compliance Program

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events, natural disasters, significant changes in climate patterns

Transition Risks

• New or additional legal, legislative and regulatory requirements to reduce or mitigate the effects of climate change

Awards & Recognition

• Great Place to Work® in 2022 (U.S.)
• Great Place to Work® in the U.K. (Michael Kors)