Environmental, Social and Governance (ESG)

Starting Line

Our Company proudly exists to serve the needs of our customers, the motoring public.

“As is reflected in this report, in FY2022, we expanded our commitments, provided meaningful disclosures, and implemented programs that are driving us toward our goals and beyond. Building upon our materiality assessment initiated in FY2022, we continued to evolve our ESG work through four distinct workstreams—Environmental, Products, Social (People & Community) and Governance. Each workstream reports into our cross-functional ESG Steering Committee led by senior officers of our company.

As 1TEAM, we recently announced our climate transition plan and proudly committed to achieving Net Zero greenhouse gas (GHG) emissions by 2050. We have set short-, medium- and long-term GHG reduction targets that are purposely intended to align with the Paris Agreement’s 1.5-degree Celsius target.

I continue to be inspired by our unique and powerful customer and people-centered culture and the wonderful work we do every day to impact the lives of people—our customers, AutoZoners, community partners and neighbors. I’m particularly proud of our progress around one of our six AutoZone Values, which ensures that “An AutoZoner Always... Embraces Diversity.”

I understand our ESG journey is one of progress, taking steps every day to reduce our environmental impact and continuing to create positive change in our communities. AutoZoners are the key to our success, and I’m grateful for their passion and commitment to our goals, and more importantly, their commitment to our customers."

- Bill Rhodes, Executive Chairman, AutoZone Inc.

Environmental Responsibility

Products

 

32%
32% of sales were U.S. made products and 100% of vendors contractually agreed to comply with AutoZone's Vendor Code of Conduct

 

357

357 audits conducted of vendors' factories on environmental, social, quality and security criteria

 

1,638

Pre-Shipment Examinations conducted, ensuring our products perform up to our quality, safety and packaging standards

Saving Energy And Reducing Emissions

Short-Term GHG Emissions Reduction Goal

  • Committed to decreasing our U.S. Scopes 1 and Scopes 2 energy-related emissions by 15% by 2025 from a 2019 baseline.

Medium-Term GHG Emissions Reduction Goal

  • Committed to decreasing Scopes 1 and 2 GHG emissions across the entire enterprise by 50% by 2030, measured against a 2019 baseline.

Long-Term GHG Emissions Reduction Goal

  • We aspire to achieve Net Zero GHG emissions across Scopes 1 and 2 by 2050.
 
scope 3 resource
         Source: WRI/WBCSD Corporate Value Chain (Scope 3) Accounting and Reporting Standard

Recycling

gallon icon

 

13.8 MILLION
gallons of oil
battery icon

 

275,912 TONS

of batteries

plastic icon

 

1,451 TONS

of plastic

tree icon

 

1,083,236

wood pallets

cardboard icon

 

29,322 TONS

of cardboard

car icon

 

19,515 TONS

of steel

tow truck icon

 

52,364 TONS

of used and worn-out auto parts

AutoZone Cares About People

Image of AutoZone employees

An AutoZoner Always... Embraces Diversity

“AutoZone is a diverse Company, full of caring, committed AutoZoners, who are passionate, service-focused, problem-solvers. When you are an AutoZoner, you are part of something special – a culture unlike any other that pledges to Put Customers First in all we do. As AutoZoners, our Values define and guide us. It is our commitment to those Values, along with the diversity of skills, knowledge, abilities and backgrounds possessed by our more than 112,000 AutoZoners that make AutoZone a winning team.”

- Bill Rhodes, Executive Chairman, AutoZone Inc.

Diversity, Equity and Inclusion (DEI)

Since 2016, ethnic diversity at our leadership levels (from Director to our Board) has improved at each level by as much as 20%:

26%
Women represent more than 26% of our management roles
27%
27% of our Board of Directors are women
45%
Racially/ethnically diverse AutoZoners represent almost 45% of our management roles
27%
27% of our Board of Directors are racially/ethnically diverse
90K
AutoZoners complete approximately 90,000 training modules every week
10%
Almost 10% of AutoZoners currently serve in the U.S. Armed Forces or are military veterans

AutoZone has laid a foundation of support that includes reliable and accessible reporting, a cross-functional Diversity Council, a DEI Steering Committee and the following business resource groups (BRGs): AZ BE BOLD, Black Excellence Building Opportunities for Leadership Development; AZ ¡HOLA!, Hispanic Organization for Leadership at AutoZone; AZ NextGen, AutoZone’s Next Generation of Leaders; AZ PRIDE+, People Recognizing Individuality, Diversity and Equity; AZ VALOR, Veterans and Active Leadership Organization for Recruitment and Retention; and AZ WIN, AutoZone’s Women’s Initiative.

LENDING A HELPING HAND

An image of main fixing something

AutoZoners are always helping fellow AutoZoners. In our stores, DCs and SSCs, this can mean supporting a team member on a project or lending another set of hands to get a customer on their way. Through the AutoZoner Assistance Fund (AAF), AutoZoners help other AutoZoners facing personal challenges by donating their own money. AAF is a primarily AutoZoner-funded non-profit organization that helps cover the cost of the unexpected – personal tragedies, natural disasters or sudden loss. The company provides additional support, especially during times of increased hardship, such as the COVID-19 pandemic. The organization is independently managed by a cross-functional board of AutoZoners who volunteer their time.

Since 2000, the AAF has provided $12.9MM in financial assistance to AutoZoners. In FY2022, with contributions from AutoZoners and AutoZone, AAF raised more than $900,000, and with these funds, AAF was able to support over 2,000 AutoZoners and their families.

Helping end the opioid crisis

Image of a woman

In FY2020, we launched an initiative in partnership with our group health plan providers to help reduce opioid usage among AutoZoners. Many of the communities we serve, and where we live and work, have been affected by the opioid crisis, including AutoZoners.

We have been actively working with our pharmacy benefit providers to ensure there are safeguards in place to reduce the risk of inappropriate opioid use or abuse. This includes prior authorization criteria to confirm the medication is needed for acute or chronic pain; quantity and refill limits; and monitoring for potential fraud, waste and abuse. These initiatives align with the latest national guidelines. Since 2019, opioid prescription rates among AutoZoners covered by our health insurance plan have decreased by nearly 25%.

Community Engagement

Images of AutoZOners

 

$2.1M
Over $2.1M in donations generated for nonprofits through employee giving programs

 

$5M
AutoZone proudly donated $5 million to the National Civil Rights Museum to create sustainable programming with an emphasis on developing Black leaders

 

93%
93% of AutoZone’s charitable giving went to racially and/or ethnically diverse communities

CORPORATE GOVERNANCE FRAMEWORK

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Our primary corporate governance objective is to maximize long-term business success and increase shareholder value, while adhering to the laws of the jurisdictions where we operate and conducting our business with the highest ethical standards.

90% of our Board members serve as Independent Directors.

9 of 15 Executive Committee members are diverse.

We have a strong governance framework that connects individuals and teams across our Company and includes various levels of oversight through the organization: Board of Directors, Chief Executive Officer, Executive Committee, Executive Sponsor and Environmental, Social and Governance (ESG) Committee.

Reporting Frameworks

General Reporting Initiative logo

We have applied select General Reporting Initiative (“GRI”) Sustainability Reporting Standards to identify and cross reference meaningful information for our stakeholders.

Sustainability Accounting Standards Board logo

We reference the Sustainability Accounting Standards Board (“SASB”) index and select SASB indicators for the Multiline and Specialty Retailers and Distributors industry.

United Nations’ Sustainability Development Goals logo

We recognize the importance of the United Nations’ Sustainability Development Goals (“SDGs”) and proudly report in our ESG 2023 how we’re contributing thus far.

Carbon Disclosure Project

We disclosed to CDP our climate performance data which is aligned with the Task Force on Climate-related Financial Disclosures ("TCFD")

See Environmental, Social, and Governance Report 2023 for more details