exo-is/governance-reporting-on-listed-companies huggingface dataset:
Keyword: governance
CHIEF EXECUTIVE risk-related responsibilities1, with our Risk Our Nominating and Governance Committee is
practices throughout the organization.
OFFICER Committee tasked with reviewing, assessing and responsible for assisting the Board in overseeing the
providing oversight of our overall risk management Furthermore, we use the three lines of defense succession planning process and our Compensation
ABOUT CME GROUP practices, including approving the ERM framework model (management, risk and compliance functions Committee is regularly updated on key talent
and risk universe. The Risk Committee also assists and internal audit) to manage and mitigate our indicators for the overall workforce, including
the full Board in its oversight of the effectiveness of enterprise risk. Key risk owners, including the Chief voluntary attrition, engag
Keyword: governance
or contractors without regard to their race, gender, the Code of Conduct and the Anti-Financial Crime will not provide or receive improper or corrupt governance is consistent with our overall approach
A LETTER FROM
OUR CHAIRMAN & age or any other legally protected characteristic. Policy on an annual basis and periodic training is payments. This means that we comply with to risk management. It requires compliance with
CHIEF EXECUTIVE
We are committed to providing a workplace free provided on the Code of Conduct and its related anticorruption laws including the U.S. Foreign our legal and regulatory obligations everywhere
OFFICER
from discrimination or harassment. Our principles policies. Mandatory education on our AML program Corrupt Practices Act and the U.K. Bribery Act we operate.
of equality and opportunity guide us in the way we is provided to applicable colleagues in accordance without excepti
Keyword: governance
EMPOWERMENT governance (ESG) our clients regarding our products and services. As the market evolves, our products and services will evolve to reflect changing client needs. Specifically, we continue to develop
information and enhance products that can help our clients manage risks associated with renewable energies and environmental change. ESG is a key priority in our product and services
development.
SUSTAINABLE
SOLUTIONS In 2022, we launched the following ESG and environmental-related products and services:
• CBL Core Global Emissions Offset (C-GEO) futures which are intended to align with the Core Carbon Principles, an emerging set of transparent and consistent standards around
COMMUNITY the supply of carbon credits as overseen by the Integrity Council for t
Keyword: governance
company. The Nominating and Governance Committee is responsible for compliance with the Board of Directors Code of Ethics. Board members must certify to this Code of Ethics on
WORKFORCE an annual basis.
EMPOWERMENT
When identifying a situation where an actual or potential conflict of interest cannot be avoided, Compliance recommends appropriate actions to manage, document and, as
applicable, report the situation.
SUSTAINABLE
CME Group's program to address conflicts of interest includes:
SOLUTIONS
• Written policies (CME Group Code of Conduct, CME Group Conflicts of Interest Policy, Board of Directors Code of Ethics, Confidentiality and Data Protection Policy, Personal Trading
Policy, Anti-Financial Crime Policy)
COMMUNITY
COMMITMENT • Disclosure obligations to identify, assess
Keyword: governance
FN-EX-550a.3 Description of INFORMATION GOVERNANCE AND DATA PRIVACY
(continued) efforts to prevent CME Group is committed to protecting its proprietary, confidential and personal data, including information relating to its business, customers, vendors, strategic partners, employees
technology errors, and other third parties. We have an established Information Governance and Privacy Program which is designed to support our company in managing our data and corporate
A LETTER FROM
OUR CHAIRMAN & security breaches, information in compliance with applicable laws and regulations and reducing risk associated with our data.
CHIEF EXECUTIVE and market
THIRD-PARTY RISK MANAGEMENT
OFFICER disruptions
CME Group maintains a Third-Party Risk Management (TPRM) Program designed to identify, assess and man
Keyword: governance
ABOUT CME GROUP engagement lifecycle. The TPRM Program coordinates with Procurement, Legal, Information Security, Information Governance and Privacy and OpRes teams, allowing our contracts
and vendor renewals to align to our risk management posture, provide adequate assurance and meet regulatory requirements. The OpRes team works with TPRM to help provide
assurances that third-party vendors impacting our critical operations have business continuity and disaster recovery plans to minimize service interruptions and control issues,
WORKFORCE whenever unforeseen disturbances arise involving a third party’s operation.
EMPOWERMENT
INSURANCE
We maintain insurance coverage that may, subject to the terms and conditions of the policy and payment of significant deductibles, cover certain aspects of cybersecurity issues.
SUSTAINABLE
MONITORING, TESTING AND AUDIT
SOLUTIONS
We have adopt
Keyword: governance
environmental, social and governance issues at CME Group. Therefore, materiality and its relevant definition as used in this report and our ESG Due to the limited amount of operational control, emissions related to third party subtenants who sublease from CME Group are either excluded
materiality review process is different than the definition used in the context of filings with the SEC. Issues deemed material for purposes of this report from our emissions or considered to be within our Scope 3 Downstream Leased Asset emissions depending on the circumstances and industry best
and for purposes of determining our ESG strategies may not be considered material for SEC reporting purposes. practices.
This report contains “forward-looking statements” within the meaning of the safe h
Keyword: bribe
policies and expectations regarding human rights, business ethics, anti-bribery, anti-corruption, cyber security, and employee health and safety.
Compliance Trainings
As part of our people-centered culture, Fastenal invests in comprehensive, career-long employee training and development, including training focused
on the environment, ethics, and labor and human rights. Below is a summary of employee participation in trainings related to these topics in 2021.
Labor &
Environment Ethics
Human Rights
Completions Completions Completions
28,410 125,444 106,246
Sum of Total Hours Sum of Total Hours Sum of Total Hours
24,659 47,252 50,725
1133Our ESG Sustainability
Governance People Planet Appendix / 2022 ESG Report
Journey Solutions
People
14Our ESG Sustainability
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Jo
Keyword: corruption
policies and expectations regarding human rights, business ethics, anti-bribery, anti-corruption, cyber security, and employee health and safety.
Compliance Trainings
As part of our people-centered culture, Fastenal invests in comprehensive, career-long employee training and development, including training focused
on the environment, ethics, and labor and human rights. Below is a summary of employee participation in trainings related to these topics in 2021.
Labor &
Environment Ethics
Human Rights
Completions Completions Completions
28,410 125,444 106,246
Sum of Total Hours Sum of Total Hours Sum of Total Hours
24,659 47,252 50,725
1133Our ESG Sustainability
Governance People Planet Appendix / 2022 ESG Report
Journey Solutions
People
14Our ESG Sustainability
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
D
Keyword: tax
of 1995. Such statements can be identified construction industries, competitive pressure in tax law or the impact of any such changes
by the use of terminology such as anticipate, on selling prices, changes in our current mix of on future tax rates, changes in tariffs or the
believe, should, estimate, expect, intend, may, products, customers, or geographic locations, impact of any such changes on our financial
will, plan, goal, project, hope, trend, target, changes in our average branch size, changes in results, changes in the availability or price of
opportunity, and similar words or expressions, our purchasing patterns, changes in customer commercial real estate, changes in the nature,
or by references to typical outcomes. Any needs, changes in fuel or commodity prices, price, or availability of distribution, supply chain,
statemen
Keyword: tax
related to future capital expenditures, future tax business expands, the leasing to customers of reports. Each forward-looking statement speaks
rates, future inventory levels, pricing, Onsite a significant number of additional FMI devices, only as of the date on which such statement
and weighted FMI device signings, the impact the failure to meet our goals and expectations is made, and we undertake no obligation to
of inflation on our cost of goods or operating regarding branch openings, branch closings, update any such statement to reflect events or
costs, and the impact of price increases or expansion of our FMI offering or Onsite circumstances arising after such date.
and surge sales on overall sales growth or operations, changes in the implementation
margin performance. You should unde
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Governance People Planet Appendix / 2022 ESG Report
JJoouurrnneeyy Solutions
What’s Inside
This report is interactive. You can scroll from page to page, or use the navigation tools at the top. Will return you to the table of contents.
Our ESG Journey Governance People
2-5 6-13 14-23
Welcome to Our Inaugural ESG Report Board of Directors Our Approach
Who We Are ESG Management Diversity, Equity, and Inclusion
The Values Behind Our Vision Product & Sourcing Compliance Employment
Fastenal at a Glance Responsible Sourcing Training & Development
Overseas Sourcing and Quality Resources Workplace Health & Safety
Cyber Security & Data Privacy Community Engagement
Ethics & Compliance
Planet Sustainability Solutions Appendix
24-31 32-52 53-65
Our Strategic Focu
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Reducing, Reusing, and Recycling Governance Solutions SASB Index
Category Management
Global Sourcing TCFD Index
Metalworking Program
Product Compliance SDG Index
Engineering Program
Safety Regulatory Compliance
Total Cost of Ownership
(TCO) Analysis eCommerce Tools
FMI Technology A Final Word on Supply Chain
Resiliency
Tool Repair Service
Tool & Cutter Grinding Service
Recycling Programs
Unless noted, goals and other data in this report reflect our global operations. 1OOuurr EESSGG Sustainability
Governance People Planet Appendix / 2022 ESG Report
JJoouurrnneeyy Solutions
Our Inaugural The Values Behind Fastenal at a
Who We Are
ESG Report Our Vision Glance
Welcome to Our Inaugural ESG Report
This isn’t the beginning of Fastenal’s journey to (EHS) and sustainability teams focus on sa
Keyword: governance
on environmental, social, and governance (ESG) fleet of long-haul and final-mile delivery vehicles. And within the next two years. We've also received
aspects. That said, creating this report marks an our property teams are always seeking ways for us to certification to the ISO/IEC 27001 Information
important step in the maturity of our program. We’re operate more safely and sustainably. Security Management System, the ISO 14001:2015
excited to build on this foundation by publishing Environmental Management System, and the
annual ESG reports moving forward. In short, we have a lot of energy and expertise ISO 45001:2018 Occupational Health and Safety
surrounding ESG in our organization. What we Management System. Currently we hold a Bronze
We continue to appreciate our stakeholder
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
JJoouurrnneeyy Solutions
Our Inaugural The Values Behind Fastenal at a
Who We Are
ESG Report Our Vision Glance
Who We Are
Organizations partner with Fastenal to simplify inventory management, illuminate data around
inventory and usage, and reduce waste and risk in the supply chain. By relying on our teams
to manage daily needs and optimize supply chain performance, these organizations are able
to focus finite resources on their fundamental purpose. From a high-level ESG perspective,
our goal is to help them bring more value to the world while using fewer resources.
Our strategic supply model requires end-to-end capabilities. This includes global sourcing
and quality teams, a diverse and closely-alig
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
JJoouurrnneeyy Solutions
Our Inaugural The Values Behind Fastenal at a
Who We Are
ESG Report Our Vision Glance
The Values Behind Our Vision
Since our founding in 1967, Fastenal has prospered through a core belief in people, careful resource consumption, and sustainable value creation for
our stakeholders – foundational aspects of our identity that predate the concept of “ESG” but closely align with our ESG vision. This vision can be
summed up with three words:
People Planet Solutions
Because we value people, we prioritize Our core strategy involves helping We invest in personnel, partnerships,
safety, we foster a culture of diversity, organizations become more resource- and structures – locally and
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Governance People Planet Appendix / 2022 ESG Report
JJoouurrnneeyy Solutions
Our Inaugural The Values Behind Fastenal at a
Who We Are
ESG Report Our Vision Glance
Fastenal at a Glance: Key Stats Regarding Our Global Business in 2021
20,507 627,000 520+
People Employees Fastenal School of Business Highly-Trained Specialists
71% directly serve our customers Trainings Completed engineering, safety, Lean Six
17 hours of training per FT employee and 9 Sigma, metalworking, construction,
hours of training per PT employee (on average) solutions, national accounts
3,209 90% 57%
Proximity
In-Market Selling Locations of Product Tonnage in N. America of Our $1.5 Billion in
(including 1,416 Onsite locations) Ships on Our Internal Trucking Fleet Inventory is Stage
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey Solutions
Governance
6Our ESG Sustainability
GGoovveerrnnaannccee People Planet Appendix / 2022 ESG Report
Journey Solutions
Board of Product & Sourcing Responsible Overseas Sourcing and Cyber Security & Ethics &
ESG Management
Directors Compliance Sourcing Quality Resources Data Privacy Compliance
“G” may be the last letter in “ESG,” but ethical, effective governance is where ESG begins. Even in a
decentralized organization such as Fastenal, employees look to leadership to define goals, set standards,
provide resources, and prioritize areas of focus. Below is a look at some key personnel, procedures, and
guidelines we employ to foster ESG success and guide ethical actions across the organiz
Keyword: governance
corporate governance committee chair serves as a liaison to the ESG team and proposes climate-
related topics to be included in the quarterly board meeting agenda.
The independent members make up three standing committees focused on critical board duties.
• Nominating and Corporate Governance Committee (formerly the Nominating Committee):
Assists the board in maintaining appropriate candidates to serve as directors of the
organization. This committee receives quarterly updates from the ESG team.
• Audit Committee: Assists the board by overseeing our management and independent
registered accounting firm with regard to corporate accounting, financial reporting, internal
controls, audit matters, and corporate risk management.
• Compensation Committee: Assists wit
Keyword: governance
Nominating and Corporate Governance
Committee) as well as our executive
leadership. Strategy is supported by
the ESG Enterprise Strategic Alignment
Project, which is updated on a quarterly
basis and asked to provide input on
strategy. Under the supervision of our
CFO, our ESG team works with various
stakeholders across the organization to
define goals, implement strategies, and
measure progress within their areas of
the business.
A point of clarification: For years, we
have had many experts throughout the
organization focused on various aspects
of ESG – from safety and sustainability to
compliance and community outreach. In
2021, we created a dedicated ESG team
to help coordinate and bring visibility to
all of those efforts. We have continued
to build and develop this team a
Keyword: governance
Compliance, Governance, and Audit teams.
Fastenal conducts organization-wide cyber security training and compliance exercises in connection with our information security program. Our security
training consists of educational material and compliance testing administered to all Fastenal employees, which is tracked and recorded throughout
the year. The results and progress of our security training are shared with executive leadership, the audit committee, and the board of directors each
quarter.
1122Our ESG Sustainability
GGoovveerrnnaannccee People Planet Appendix / 2022 ESG Report
Journey Solutions
Board of Product & Sourcing Responsible Overseas Sourcing and Cyber Security & Ethics &
ESG Management
Directors Compliance Sourcing Quality Resources Data Privacy Com
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey Solutions
People
14Our ESG Sustainability
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Our Approach
What is the secret ingredient that has enabled Fastenal to grow from a small-town fastener shop into a multibillion-dollar global organization? The answer:
great people, and a culture that empowers them to use their full creativity in pursuit of a common goal. While Fastenal has embraced rapid change and new
ideas over the years, we have never lost sight of a foundational belief – that “ordinary” people can accomplish extraordinary th
Keyword: governance
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Diversity, Equity, and Inclusion
As of December 31, 2021, we had 20,507 employees worldwide. 16,548 of those employees were located within the United States, 2,568 employees
were located in Canada and Mexico, and 1,391 were located overseas in 22 other countries around the world.
Non-Discrimination
It is Fastenal’s policy to provide equal employment opportunity/affirmative action to all employees and applicants for employment in accordance with all
applicable federal, provincial, state, or local executive orders, regulations, and laws. We will not
Keyword: governance
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Employment
Recruitment
Our cultural values – Ambition, Integrity, Innovation, and Teamwork – are woven into the fabric
of our human resources processes and protocols, starting with our employment process.
These values serve as guideposts for leadership as they administer and adhere to the system
and processes. The ultimate goal is straightforward: hire the candidate who is the best match
for the position based on their skills and abilities. In light of our commitment to promote from
within, we know we are welcoming a potential future leader with e
Keyword: governance
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Hiring
The cornerstone of the hiring process is our Applicant Tracking System, which was developed internally by our Diversity and Compliance team. This
system facilitates data collection and storage while also streamlining a multi-step process. The Diversity and Compliance team reviews and approves the
job openings for posting via our internal intranet site, our external websites, and the many post-secondary schools we work with across the country. To
further diversify our outreach efforts, we partner with Circa (formerly Local Job Network), whic
Keyword: governance
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Training & Development
Fastenal School of Business
Fastenal’s approach to training our employees continues to evolve as the organization expands globally,
pursues new endeavors, and adapts to world changes. Our corporate university, the Fastenal School of
Business (FSB), consists of professional staff focused on course research, design, instruction, advising,
and management. These individuals develop, maintain, and deliver Fastenal-specific training through
published materials, online courses, virtual and classroom instructor-led trainings, and vi
Keyword: governance
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Workplace Health & Safety
We’ve taken a multi-faceted approach to safety that helps us understand and reduce hazards in
our business. Trainings, audits, inspections, risk assessments, safety coaching, and employee
engagement are all programs that help us consistently manage our facility and employee safety.
Our internal scorecard system and safety management system are designed to help us maintain
focus on a variety of risks while we sustain an inclusive safety environment that contributes to
innovation and improved performance. We continue to exp
Keyword: governance
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Proactive Employee Engagement
In keeping with our people-centered culture, we believe employee participation and feedback are central to workplace safety. 100% of our large (non-
branch) facilities have formed EHS committees and first response teams made up of local personnel. In all, these committees include hundreds of
employees ranging from new part-time employees to tenured full-time leads.
In addition, more than 2,700 North American locations participated in regular monthly assessments
of work practices, workplace conditions (hazard identific
Keyword: governance
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Community Engagement
Since our start in 1967, Fastenal’s founders believed in being humble and staying out of the spotlight. They also believed in decentralized decision-
making, empowering employees to make local decisions for their customers, for the organization, and also for their communities. Today, this spirit
shines through in local markets across the globe where our employees strive to be active in their communities through volunteering and donation
efforts. To provide resources and structure for those efforts, we're working to build a sus
Keyword: governance
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
BK5K
Through our BK5K Road Race program,
Fastenal employees organize community
events across the globe, working with Workforce Development
sponsors to provide hundreds of thousands
In addition to youth programs, we also focus
of dollars to youth programs each year. In
on assisting organizations that support
2021, Fastenal employees volunteered a total
professional development and wellness. Blue Team Sports
of 683 hours of their time for event planning,
For over six years, we have supported
grant reviews, and race-day coordination In 2012, Fastenal
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Governance People Planet Appendix / 2022 ESG Report
Journey Solutions
Planet
24Our ESG Sustainability
Governance People PPllaanneett Appendix / 2022 ESG Report
Journey Solutions
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations & Recycling
This section will provide statements pertaining to our scope 1 emissions related
to fuel combustion in our furnaces, boilers, and vehicles; scope 2 purchased
electricity emissions; and scope 3 waste related to our business operations.
Our Strategic Focus
Fastenal began reporting to the Carbon Disclosure Project (CDP) in 2020
in accordance with the Greenhouse Gas (GHG) Protocol, and our overall
grade increased in the 2021 report. In 2021, we formed an ESG team whose
responsibilities includ
Keyword: governance
Governance People PPllaanneett Appendix / 2022 ESG Report
Journey Solutions
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations & Recycling
GHG Management
At Fastenal, we’re always seeking ways to make our business more efficient and sustainable. Key areas of focus in our own operation include
transportation, consumption, energy use, waste reduction, and recycling.
We continue to track scope 1 and 2 emissions across more areas of operation. Fastenal’s 2021 CDP data reflects our ongoing plan to reduce fuel
consumption by optimizing fleet operations, making our buildings more energy efficient, and reducing waste.
In 2021, Fastenal worked toward certification to the ISO 14001:2015 Environmental Management System (and we went on
Keyword: governance
Governance People PPllaanneett Appendix / 2022 ESG Report
Journey Solutions
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations & Recycling
Transportation
Decades ago, Fastenal made a pioneering decision to internalize and innovate logistics within industrial distribution. By
operating our own transportation network, we're able to optimize supplier pick-up, transfers for secondary operations, and
how our customers receive their product. It also allows us to directly impact environmental sustainability. Nearly 90% of
the product tonnage transported in North America to meet our customers’ needs travels via our internal fleet. This North
American fleet includes more than 740 commercial motor vehicles (CMVs) as well as 8,200-plus
Keyword: governance
Governance People PPllaanneett Appendix / 2022 ESG Report
Journey Solutions
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations & Recycling
Facilities & Operations
Energy Use and Consumption
Fastenal has always made it a priority to pursue energy efficiency throughout our organization. All
distribution centers and corporately-managed facilities occupied after 2017 have completed LED lighting
retrofits, and many have undergone additional efficiency upgrades. Some specific facility examples:
• Between 2018 and 2019, our manufacturing facility based in Winona, Minnesota invested in LED
lighting retrofits, optimization studies, and efficiency programs to help reduce annual energy
consumption by roughly 439,956 kWh.
• In 2021, we
Keyword: governance
Governance People PPllaanneett Appendix / 2022 ESG Report
Journey Solutions
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations & Recycling
Evolving Our Branch Infrastructure
The Covid-19 pandemic prompted us to evaluate our United States public branch network
and how we could evolve to keep pace with changes in our business and the environment.
Previously, these public branches had relatively large front rooms with retail-like fixtures and
standardized inventory for walk-in customers, along with a (usually smaller) back room to
manage and store customer-specific inventory.
In 2019, we began testing our Market-Based Inventory (MBI) program to make our United
States branch network more space-efficient and customer-focused. Thi
Keyword: governance
Governance People PPllaanneett Appendix / 2022 ESG Report
Journey Solutions
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations & Recycling
Environmental Risk Assessments Sustainable Purchasing
To help us continue to perform at a high level and meet our We have implemented a variety of systems and programs to
ISO 14001:2015 requirements, we have partnered with U.S. reduce consumption and, in many cases, to reuse or recycle
Compliance and EMI, which provide a variety of consulting, resources in our own operation. In cases where we do purchase
auditing, and program services. We use risk assessments from and consume materials, we work to ensure these materials
these partners to identify areas of opportunity and consistently alig
Keyword: governance
Governance People PPllaanneett Appendix / 2022 ESG Report
Journey Solutions
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations & Recycling
Reducing, Reusing and Recycling
Fastenal is pursuing a range of initiatives focused on energy consumption
reduction, water consumption reduction, recycling and waste reduction, and
efficient use of resources. Through these initiatives, we’re working to reduce
our operational impact on the environment and also the impact we have on
our customers as part of their supply chains.
Fastenal’s ENERGY STAR Portfolio Manager program has illuminated
opportunities to reduce energy consumption through improved technology,
processes, and programs. LED lighting projects, motion sensor systems,
and ener
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey Solutions
Sustainability
Solutions
32Our ESG SSuussttaaiinnaabbiilliittyy
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Our Sustainability Solutions
Because Fastenal is part of so many supply chains around the world, when we improve our ESG practices, it can be amplified on a global scale.
But it doesn’t end with our internal operations – we also offer a range of solutions to he
Keyword: governance
Environmental Social Governance
Solutions Solutions Solutions
Products, services, Resources to improve Systems and reporting
and systems to reduce workplace safety and to improve supply chain
consumption and waste supply chain diversity transparency and regulatory
compliance
33Our ESG SSuussttaaiinnaabbiilliittyy
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Environmental Solutions
Our environmental solutions for customers fall into four categories. With thi
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Green and Energy Efficient Products Program
To meet a broad range of our customers’ application needs, Fastenal offers 76,000-plus environmentally
preferred products (consisting of both certified green and non-certified green products). We have identified
that these products (1) reduce negative effects on human health and the environment compared to competing
products and/or (2) promote susta
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Category Management
Assisting customers with category management is central to our
value proposition as both a strategic supplier and an ESG solutions
provider. This exercise involves analyzing the products used
throughout the customer’s operations, often on a global scale, and
looking for opportunities to streamline the supply chain by:
1. Standardizing part numbers
2. Rationalizing overlapp
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Metalworking Program
Some of the products we supply are highly technical
in nature, requiring specialized expertise for us to
serve as a solutions provider for the customer. A prime
example: metalworking products, particularly the high-
precision cutting tools manufacturers use to fabricate
metal components.
To provide expert support in this category, we maintain
a team of metalworking specia
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Engineering Program
We also support manufacturers with a global
team of fastener application engineers who
specialize in the science of bolted joint
assemblies. In addition to reviewing prints,
assisting with technical questions, and
conducting trainings, these professionals provide
value analysis/value engineering (VAVE) services
to drive cost savings and provide design for
manufacturability
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Governance People Planet Appendix / 2022 ESG Report
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Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Total Cost of Ownership
Case Study:
Gorman-Rupp
(TCO) Analysis
Reducing Waste, Boosting Employee Morale
In order to make data-driven recommendations for process Through Continuous Improvement
improvements, our Lean Solutions team routinely conducts Total
Cost of Ownership (TCO) Analysis exercises at customer facilities
to analyze how they purchase, move, stock, and use products.
Historically,
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
FMI Technology
Industrial supplies are traditionally a “blind spot” for manufacturers and other businesses. Limited visibility to basic information – what product is
stocked in the facility, where it’s located, how it’s being used – leads to various forms of waste, from obsolete inventory and over-consumption to stock
outages and inefficient rush deliveries.
Through the development of our FMI
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
A Systematic Approach to Reducing Consumption
Remote Inventory Monitoring Access Controls
The devices are equipped with sensing technologies to Several of our devices allow organizations to set role-
digitally report the current inventory level in each stocking specific controls so their employees only have access
location. This eliminates the need for Fastenal employees to products relevant
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Tool Repair Service
Fastenal’s eight North American-based tool
repair service centers provide authorized
warranty repairs for 35 major tool brands (and
are able to work on more than 750 brands
of tools in all). This resource, combined with
our local service and transportation network,
allows customers to meet their tool repair
needs through a single efficient source, and to
do so through a pr
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Tool & Cutter
Grinding Service
The goal of this service is to help
manufacturers maximize the lifetime value
and productivity of their cutting tools.
The process is similar to our tool repair
program, but in this case the customer’s
worn (cutting) tools are transported to
a Fastenal manufacturing facility, where
our machinists sharpen them to like-new
condition for a fraction of the cost of
b
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Recycling Programs
We offer a range of solutions to help organizations slow the pace of consumption, but eventually every product enters the waste stream. That’s when
our third-party recycling partnerships come into play. Today, we partner with key suppliers and recycling services to help customers integrate waste
stream solutions into their work processes. This includes (but is not limited t
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Social Solutions
Our social solutions are focused on the areas of supplier diversity and safety. Through these programs,
we help customers improve safety in their workplace and create opportunities across the supply chain.
Supplier
Safety
Diversity
Our inclusive purchasing Providing highly-trained
practices create a well- specialists to help customers
developed network of avoid workplace haza
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Supplier Diversity Program
We serve as a point of connection between organizations looking to increase their diversity
spend and a network of well-qualified small and/or diverse suppliers striving to grow their
businesses and create opportunities in their communities. It is our policy to advocate for
these businesses, working to match their capabilities with the needs of our customer base.
As
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Safety Specialist Program
Fastenal’s safety specialists work with our customers’ EHS teams to help them: (1) eliminate
potential serious injuries and fatalities (P-SIFs) in the workplace, (2) reduce regulatory, financial, and
operational risk by improving compliance with governing bodies such as the Occupational Safety
and Health Administration (OSHA), and (3) improve transparency and control
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Governance Solutions
Organizations rely on our governance solutions to help them reduce risk in their business
and to access the data they need to make informed, ethical business decisions.
Responsible Product Safety Regulatory eCommerce
Global Sourcing Compliance Compliance Tools
Building relationships
Ensuring the products Helping to reduce Making it easy for
with suppliers that meet
we sup
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Global Sourcing
Through our supplier terms and code of conduct, we require our
suppliers to comply with all applicable regulations. Although we
have not joined the UN Global Compact, we endeavor to incorporate
the Ten Principles of the UN Global Compact in our operations,
including our supplier code of conduct. We conduct risk analysis
of suppliers who want to do business with us, which as a
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Product Compliance
As a strategic supplier, Fastenal has a responsibility to stay in sync with an ever-changing
global landscape of regulation, supply chain risk, and industry demands. To that end, we
maintain multiple teams of product compliance specialists worldwide to ensure the products
we supply comply with applicable standards and regulations across global supply chains.
One of their co
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
eCommerce Tools
Our eCommerce platform offers tools to help customers dial in on products that meet their application and compliance needs. This includes a range
of “sustainability” and “special interest” filters that allow users to narrow their search results based on very specific criteria (for example, products with
certain green certifications, supported by specific recycling/sustainabili
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
A Final Word on Supply Chain Resiliency
Unlike the preceding topics, supply chain resiliency isn’t a discrete program, technology, resource, or service. It’s the “ecosystem” that supports
all of the above, and to which all of the above contribute. It’s also a precondition for partnership: Before a customer can give us the opportunity to
consolidate and streamline their industrial supply needs
Keyword: governance
Governance People Planet Appendix / 2022 ESG Report
Journey Solutions
Appendix
53Our ESG Sustainability
Governance People Planet AAppppeennddiixx / 2022 ESG Report
Journey Solutions
Forward Looking About This
GRI Index SASB Index TCFD Index SDG Index
Statements Report
Forward Looking Statements
Certain statements contained in this report of variety of risks and uncertainties, known and of customers that bought product from us for
the organization, or in other written and oral unknown, and may be affected by inaccurate the first time during the pandemic, difficulty in
statements made from time to time by the assumptions. Consequently, no forward-looking hiring, relocating, training, or retaining qualified
organization, do not relate strictly to histor
Keyword: governance
Governance People Planet AAppppeennddiixx / 2022 ESG Report
Journey Solutions
Forward Looking About This
GRI Index SASB Index TCFD Index SDG Index
Statements Report
About This Report
Fastenal’s annual environmental, social, and governance (ESG) report provides an overview of our organization’s ESG initiatives in line with the criteria
required by several leading ESG reporting frameworks.
These standards inform our disclosures and reflect our commitment to giving investors and other stakeholders an account of our approach,
performance, and progress. The responses in the following indexes include links to further information where relevant.
Scope
This inaugural report, Fastenal’s 2022 ESG Report, was published in January 2023 and reflects activities an
Keyword: governance
Governance People Planet AAppppeennddiixx / 2022 ESG Report
Journey Solutions
Forward Looking About This
GRI Index SASB Index TCFD Index SDG Index
Statements Report
GRI Index
Fastenal has reported the information cited in this GRI content index for the period January 1, 2021 through December 31, 2021 with reference to GRI
Standards. The report has been prepared with references to 2016-2021 GRI Standards.
Disclosure Number GRI Standard Disclosure Title Fastenal Response
General Disclosures
Organizational Profile
Fastenal Company
102-1 General Disclosures Name of organization
2021 Form 10-K: Cover
Activities, brands, products, 2021 Form 10-K: part I. Item 1. Business
102-2 General Disclosures
and services Fastenal does not intentionally sell items that
Keyword: governance
Governance People Planet AAppppeennddiixx / 2022 ESG Report
Journey Solutions
Forward Looking About This
GRI Index SASB Index TCFD Index SDG Index
Statements Report
Ethics and Integrity
People
Values, principles, standards, Governance
102-16 General Disclosures
and norms of behaviors 2021 Form 10-K: part I. Item 1. Business
Supplier Code of Conduct
Mechanisms for advice and
102-17 General Disclosures 2022 Proxy Statement: Other Board and Corporate Governance Matters Page 12
concerns about ethics
Governance
Governance
2021 Form 10-K: part III. Item 10. Directors, Executive Officers, and Corporate
Governance
Board of Directors
102-18 General Disclosures Governance structure
Corporate Governance Guidelines
Nominating and Corporate Governance Committee C