Fastenal Company
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:183,147 tCO2e (2021)
Scope 1 Emissions:132,030 tCO2e (2021)
Scope 2 Emissions:51,117 tCO2e (2021)
Carbon Intensity:0.000030469 MT of CO2-eq per $ of revenue
ESG Focus Areas
- Governance
- People
- Planet
- Sustainability Solutions
Environmental Achievements
- Reduced scope 2 emissions by 19% in 2021 compared to 2020.
- Achieved ISO 14001:2015 Environmental Management System certification in August 2022.
- Recycled over eight million pounds of material within US-based distribution centers and manufacturing facilities in 2021, a 32% increase from 2020.
Social Achievements
- Launched several initiatives to improve employee engagement, including a 90-day new hire program, newly-promoted supervisor program, and the ‘big branch’ program.
- Named one of America’s safest companies for 2021 by EHS Today.
- Achieved an EMR of .45 in 2021, 55% better than the industry average (North American operations).
Governance Achievements
- Achieved ISO/IEC 27001 Information Security Management System certification in 2022.
- 70% of the board of directors is independent.
Climate Goals & Targets
Long-term Goals:
- Reach net zero emissions by 2050.
Medium-term Goals:
- Set science-based targets for all emissions within the next 3 years.
Short-term Goals:
- Reduce scope 2 emissions intensity by 5% by 2025 (relative to 2021).
Environmental Challenges
- Limited data on Scope 3 emissions.
- Supply chain disruptions due to the COVID-19 pandemic and other global events.
Mitigation Strategies
- Investing in infrastructure and innovation.
- Empowering employees to make local decisions.
- Taking a frugal approach to resource use.
- Providing sustainability solutions to customers to reduce resource consumption across their supply chains.
Supply Chain Management
Responsible Procurement
- Supplier code of conduct requiring compliance with all applicable regulations.
Climate-Related Risks & Opportunities
Physical Risks
- Inclement weather disrupting supply chains and transportation networks
Transition Risks
- Increased operating costs due to emerging regulations
Opportunities
- Resource efficiency through fleet electrification
- Greater use of renewable energy
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UN SDGs
Certifications: ISO 14001:2015, ISO 45001:2018, ISO/IEC 27001
UN Sustainable Development Goals
- Goal 7
- Goal 8
- Goal 9
- Goal 12
- Goal 13
Sustainable Products & Innovation
- 76,000+ environmentally preferred products
Awards & Recognition
- America’s safest companies for 2021 (EHS Today)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:187,592 tCO2e/year
Scope 1 Emissions:137,410 tCO2e/year
Scope 2 Emissions:50,182 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:2,434,628.56 GJ/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:0.00002687 metric tons of CO2-eq per $ of revenue
ESG Focus Areas
- Empowering People
- Preserving Our World
- Serving as a Trusted Partner
Environmental Achievements
- Received third-party certification to the ISO 14001 environmental management standards.
- Distribution centers in Washington state and Utah received ENERGY STAR certification.
- Increased waste diversion rate from 60.7% in 2021 to 70% in 2022.
- Reduced clean water consumption by 2% in distribution centers and manufacturing facilities from 2020 to 2022.
Social Achievements
- Launched Blue Team Blood drive, resulting in over 800 units of blood donated.
- Continued support of Wells Academy, awarding $272,000 in scholarship funds since 2016.
- Completed nearly 200,000 health and safety activities across the organization, a 30% increase compared to 2021.
- Achieved an EMR of 0.52, 48% better than the industry average.
Governance Achievements
- Received third-party certification to the ISO 27001 information security management systems.
- Completed a materiality assessment to identify key ESG issues.
- Established an ESG Community of Practice.
- Received a Bronze sustainability rating from EcoVadis.
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero emissions by 2050.
Medium-term Goals:
- Set science-based targets for all emissions within the next 3 years.
Short-term Goals:
- Reduce scope 2 emissions intensity by 5% by 2025 relative to a base year of 2021.
Environmental Challenges
- Slight decrease in the proportion of women in the U.S. workforce for a third consecutive year.
- Supply chain disruptions due to inclement weather.
- Increased operating costs due to emerging regulations.
Mitigation Strategies
- Focused recruiting and retention efforts, including expanding the recruiting team and pipeline.
- Investing in the latest vehicle technology and optimizing routes, loads, and efficiency.
- Utilizing self-owned logistics, diverse supply base, and decentralized business model to increase resilience to climate-related disruptions.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Supplier terms and code of conduct requiring compliance with all applicable regulations.
- Risk analysis of suppliers.
- Sustainable Procurement Manual.
Climate-Related Risks & Opportunities
Physical Risks
- Inclement weather disrupting supply chains and transportation networks
Transition Risks
- Increased operating costs due to emerging regulations
Opportunities
- Resource efficiency through fleet electrification
- Greater use of renewable energy
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UN SDGs
Certifications: ISO 14001, ISO 45001, ISO 27001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Goal 7
- Goal 8
- Goal 9
- Goal 12
- Goal 13
Initiatives contribute to these goals through various programs and practices detailed in the report.
Sustainable Products & Innovation
- Approximately 53,000 green products
Awards & Recognition
- Bronze sustainability rating from EcoVadis
- Leader in Sustainability by Call2Recycle