exo-is/governance-reporting-on-listed-companies huggingface dataset:
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future capital expenditures, future tax rates, future inventory levels, liquidity, liabilities from tax positions, the performance of our fastener business in comparison to our non-fastener
business, openings and closing of in-market locations and signings of Onsite programs and new machine equivalent units for Fastenal Managed Inventory (FMI) (including bin stock
and industrial vending) and the competitive advantages they offer, our digital solutions and other product offerings (including new product lines), national accounts as a percentage
of overall sales, the advantages of our integrated physical and virtual model, growth in safety products as a percentage of product sales, the amount of FMI revenue that we may
be able to service through local inventory fulfillment terminals, the ability of our competitors to replicate our distribution
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in tax law or the impact of any such changes on future tax rates, changes in tariffs or the impact of any such changes on our financial results, changes in regulatory requirements,
changes in the availability or price of commercial real estate, changes in the nature, price, or availability of distribution, supply chain, or other technology (including software
licensed from third parties) and services related to that technology, difficulty in obtaining business from new safety product customers and acceptance by customers of any new
product lines, cybersecurity incidents, potential liability and reputational damage that can arise if our products are defective, difficulties measure the contribution of price increases
on sales growth, acts of war, and other risks and uncertainties detailed in our fil
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
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 Empowering People
1-5 6-13 14-28
A Letter From Our President and CEO Board of Directors Empowering People
Who We Are ESG Management Human Rights & Diversity,
Equity, and Inclusion
ESG Strategy & Vision Responsible Sourcing
Employment
Fastenal at a Glance Cybersecurity & Data Privacy
Training & Development
Ethics & Compliance
Workplace Health & Safety
Community Engagement
Preserving Our World Serving as a Trusted Partner Appendix
29-38 39-55 56-67
Our Strategic Focus Cautionary Note: Forward
A
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
A Letter from our ESG Strategy Fastenal at
Who We Are
President and CEO and Vision a Glance
Welcome! Thank you for taking the time to read Fastenal's 2024 Environmental,
Social, and Governance (ESG) Report. This is our third ESG report,
and it covers our progress and performance in 2023.
In last year’s report, we spoke about the completion of a materiality assessment to define and prioritize our key
ESG issues. During 2023, we took the next step to define our ESG vision, pillars, and strategic objectives. The
following two pages provide an overview of how we define ourselves in the marketplace and how we define
our vision: empowering people, preserving our world, and servi
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
A Letter from our ESG Strategy Fastenal at
Who We Are
President and CEO and Vision a Glance
Who We Are
Organizations partner with Fastenal* to reduce cost, waste, risk, and growth constraints in the supply chain for
a broad range of industrial and construction supplies. By helping our customers operate more efficiently and
productively, our role is elevated from “supplier of products” to “strategic supply chain partner.”
Our strategic supply model requires end-to-end capabilities, including:
› Robust global sourcing and quality operations
› A geographically-diverse and closely-managed supplier base
› A network of regional distribution centers, vehicles, and in-market servi
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
A Letter from our ESG Strategy Fastenal at
Who We Are
President and CEO and Vision a Glance
ESG Strategy and Vision
Our ESG Vision
As a catalyst for innovation and positive change, we strive to provide exceptional value to our customers by empowering people, preserving our world,
and serving as a trusted supply chain partner.
Strategic Objectives Relevant Topics
We foster a safe and welcoming workplace
for all, prioritize employee development,
Empowering • Employee safety/wellbeing
and empower our "Blue Team" to achieve
People positive outcomes for themselves, our • Diversity, equity, and inclusion
customers, and the community.
We work to reduce consumption and • Energy ef
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
A Letter from our ESG Strategy Fastenal at
Who We Are
President and CEO and Vision a Glance
Fastenal at a Glance: Key Stats Regarding Our Global Business in 2023
Our strategic supply model starts
23,201 874,000+
starts with a simple premise:
employees. 71% directly Fastenal School of Business
great people, close to the customer,
serve our customers trainings completed
with a passion for learning and growth.
Our local team operates in 3,419 in-market operating units across 25 countries. 64% of 1,597 1,822
our $1.5B in inventory is staged locally or within customer sites for same-day access. traditional branches Onsite operations
Service through our traditional branches and
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(3) Includes individuals specializing in the following: sourcing, quoting, purchasing, supplier development and operations, compliance, and logistics.Our ESG Governance Empowering Preserving Serving as a Appendix / 2024 ESG Report
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Governance
6Our ESG Empowering Preserving Serving as a
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Board of Responsible Cybersecurity & Ethics &
ESG Management
Directors Sourcing Data Privacy Compliance
“G” is the last letter in “ESG,” but responsible governance is where ESG begins. Even in a decentralized organization like Fastenal, employees look to
leadership to define goals, set standards, provide resources, and prioritize areas of focus. This section will focus on the personnel, procedures, and
guidelines we’ve put in place to promote ESG success and guide ethical actions across the organization.
Bo
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ESG issues. The full board has assigned the nominating and corporate governance committee the primary duty to oversee corporate governance
matters subject to board oversight and sets high standards for the company's employees, officers, and directors. Among its priorities are corporate
responsibility, human capital management, and sustainability. The topic of ESG, including climate-related issues, is on the full-board meeting agenda a
minimum of twice per year and is on the committee agenda quarterly.
On matters of enterprise risk, including ESG matters, the full board has oversight responsibility and receives leadership and guidance from three
standing committees composed exclusively of independent members.
Nominating and Corporate Audit Compensation
Governance Committee Committee Committee
Assists the board in maintaining Assists the board by overseeing the accounting Assis
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Board of Responsible Cybersecurity & Ethics &
ESG Management
Directors Sourcing Data Privacy Compliance
ESG Management
Nominating and Corporate Governance Committee
This committee serves as a liaison between the full board of directors and the ESG team, providing oversight to help integrate ESG initiatives into our
overall growth strategy. It consists of five directors, each of whom qualifies as an independent director.
Community of Practice
Our ESG Community of Practice is made up of leaders and subject matter experts from various areas of the business that are essential to the success
of our goals. This group is responsible for continuous improvement to core aspects of o
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Board of Responsible Cybersecurity & Ethics &
ESG Management
Directors Sourcing Data Privacy Compliance
Responsible Sourcing
As a strategic supplier, we believe Fastenal has a responsibility to stay in sync with an ever-changing landscape of global regulations, supply chain risks,
and industry demands. To that end, we maintain multiple teams of compliance specialists around the world with the expertise to ensure the products we
supply meet or exceed applicable standards and regulations across global supply chains. Our processes are regularly updated in response to new and
changing regulations, business needs, and customer expectations; however, we maintain a consistent foc
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Board of Responsible Cybersecurity & Ethics &
ESG Management
Directors Sourcing Data Privacy Compliance
Forced Labor Policy
Fastenal maintains a strong stance against the use of forced labor within any tier of our supply chain and actively
works with our suppliers to monitor, educate, and address any potential compliance concerns. Forced labor prevention
expectations are written into our supplier code of conduct. In addition, our teams execute supplier documentation
reviews, on-site audits, internal and external trainings, risk assessments, and material origin reviews.
Supply Chain Security Policy
As both an importer and exporter, Fastenal has been a member of the United S
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Board of Responsible Cybersecurity & Ethics &
ESG Management
Directors Sourcing Data Privacy Compliance
Product Alerts and Recalls
Our quality management system includes well-defined processes for product alerts and recalls. These can be initiated either internally by Fastenal
(based on product testing in our A2LA-accredited labs) or externally by our supply chain partners. Recalls and alerts are classified into four levels:
• Level A is an alert only, prompting us to remove the product from our distribution centers.
• Level B is also an alert only, but in this case the product is removed from both our distribution centers and our in-market servicing locations
(branches an
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Board of Responsible Cybersecurity & Ethics &
ESG Management
Directors Sourcing Data Privacy Compliance
Cybersecurity & Data Privacy
Fastenal has received certification to the ISO 27001:2013 information security management system. This certification was achieved through a formal
audit process conducted by A-LIGN, an independent and accredited certification body in the United States.
ISO 27001 is an international standard to manage information security published by the International Organization for Standardization (ISO), the world’s
largest developer of voluntary international standards, and the International Electrotechnical Commission (IEC). Achieving certification to IS
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executive leadership team is briefed on information security at least once a quarter by members of our IT security, compliance, governance, and audit
teams. Any identified risks are included in Fastenal's overall risk management program, and internal and external auditors validate its IT controls on a
regular basis.
Fastenal conducts organization-wide cybersecurity training and compliance exercises in connection with our information security program. This training
consists of educational material and compliance testing administered annually to all Fastenal employees, which is tracked and recorded throughout the
year. Results and progress are shared with executive leadership and the audit committee each quarter.
In our continued commitment to maintaining a strong internal control environment, Fastenal underwent a System and Organization Controls (SOC)
2 examination from an ind
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Board of Responsible Cybersecurity & Ethics &
ESG Management
Directors Sourcing Data Privacy Compliance
Ethics & Compliance
Business Conduct
At Fastenal, we are committed to operational excellence, ethical and responsible conduct, fair and respectful treatment of all individuals, and practices
that promote safety, health, and environmental protection. 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 analyses of suppliers who want to do
business with us, which includes obtaining supporting documentation regarding quality, capaci
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Empowering
People
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Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
"
The greatest resource in the world is
the human individual, with each
individual having enormous potential
to do wonderful things. "
Bob Kierlin, Fastenal Founder
Our people-centered strategy can be summarized with some simple thoughts:
The quote above speaks to Fastenal’s
foundational belief in people and
serves as a fitting lead-in to the social Find great Invite them
1 2
a
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Human Rights and DEI
Human Rights
Fastenal is committed to complying with all applicable labor and employment laws
and regulations in every country and jurisdiction in which we operate. These include
but are not limited to: antiharassment and discrimination in all aspects of employment;
employees' freedom of association and the right to collectively bargain; prohibitions
on child labor, forced labor, or any form of human trafficking; and fair wage and hours
requirements. Fastenal also expects its suppliers and vendors to comply with all
applicable law
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Diversity Data & Reporting
As indicated in the EEO-1 data below, women and minorities constituted 24.0% and 23.6%, respectively, of our United States workforce at year-end
2023. Based on U.S. Bureau of Labor Statistics data, our mix of female and minority employees is generally consistent with that of the manufacturing
and construction industries, which, as our primary end markets, provide useful context for our workforce recruiting pool, composition, and trends.
In reviewing the table, a few trends stand out. First, following a steady rise from
U.S.
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI 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 leaders throughout the organization as they administer and adhere
to the system and processes. The ultimate goal is straightforward: make
the candidate pool as expansive and inclusive as possible, and hire the
candidate who is the best match for the position based on their skills and
abilities. In light of our cul
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Hiring
The cornerstone of the hiring process is our Applicant Tracking System, which was designed 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 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, which
each day shares the job postings from the
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Developing Great Leaders
Managers (i.e., those positionally responsible for leading others) are
automatically enrolled in our Leadership Training Plan, providing
trainings on coaching, business ethics, recruiting, and other topics
related to fair and effective leadership. It includes our flagship LDR450:
Leadership Enhancement Program (which covers topics like dilemma
management, leader influence, and emotional intelligence) as well as
Training & Development our long-standing leadership course titled LDR210: Coaching.
In the third quarter of 2023, two
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Workplace Health & Safety
Our employees continue to distinguish Fastenal as a leader in workplace health and safety. We continually encourage safety participation through
new-employee trainings and ongoing coaching, audits, inspections, risk assessments, safety committee meetings, and first-responder programs. In
2023, we completed nearly 214,000 health and safety activities, an increase of 7% compared to 2022. In addition to engaging 23,000-plus employees
across the organization, our environmental health and safety (EHS) & sustainability team continu
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Health and Safety Impact
2
Our focus on employee engagement is producing
1.8
excellent results. A widely accepted measure of
organizational health and safety is the Experience 1.6
Modification Rate (EMR). An organization's EMR is
1.4
determined by the National Council on Compensation
1.2
Insurance (NCCI) based on a comparison of its past and
1
expected losses incurred through workplace injuries
versus other organizations in its industry. The NCCI 0.8
factors in variables such as the number of employees
0.6
and the mix of job classifications to group o
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Community Engagement
Since our start in 1967, Fastenal's founders have always believed in giving generously while staying out of the spotlight. They also believed in
decentralized decision-making, which included empowering local employees to take the lead in company-sponsored community efforts. Today, this
spirit shines through in local markets across the planet where our employees contribute to their communities through volunteering and donations. To
provide resources and structure for these efforts, we're working to build a sustainable community str
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
In the fourth quarter of 2022, we launched our Blue Team Blood drive in partnership with the American Red
Cross and other blood supply organizations throughout North America and also in India (home to many of
our IT employees). With this program, we’re committed to hosting in-person blood drives for employees
at large Fastenal facilities one to four times per year. We also created a virtual blood drive program, which
allows employees, friends, and customers to participate at local community sites around the world. In 2023,
we hosted 38 in-person blood
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Workforce Development
To support communities and engage with potential future employees, our local teams partner with a variety of educational institutions, from high
schools to technical colleges and universities. Local employees lend their expertise to bring educational value to these programs, whether it’s teaching
courses through programs like Junior Achievement or leading seminars in college business departments. With Fastenal’s financial backing, they also
contribute to scholarships, classroom equipment, and learning activities. In 2023, we supp
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
In recent years, our Fastenal Manufacturing division has partnered with several high
schools and technical colleges to provide equipment (including lathes and robotic arms),
scholarships, tuition and book reimbursement, training, sponsorships, and employment
opportunities. What do these programs look like in action? Click here to watch a video
about our employer partnership with Minnesota State College Southeast (MSCS).
In 2023, Fastenal became part of a core group of companies and individuals to invest in
a three-year pilot of the College Opportunity
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Disaster Response and Recovery
When disasters strike, Fastenal employees are able to work together across locations and departments to help our customers, employees, and
communities. Our Blue Team Responds program facilitates cross-departmental collaboration to expedite emergency needs, and our in-house trucking
fleet allows us to move supplies into disaster zones without having to rely on third-party carriers. A key advantage: having local “feet on the street”
supported by layers of regional and nationwide resources. This allows us to proactively pla
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
BK5K Road Race
Through our BK5K Road Race program, Fastenal
employees organize 5K walk/run events (and free
1K kids races) in multiple communities. All proceeds, including contributions from
event sponsors, are provided to 501(c)(3) non-profit youth organizations through
a grant process. Since its initial run in 2000, the BK5K has funded 521 grants
totaling over $3 million. These proceeds support wide-ranging community
requests, from equipment and supplies for sports and educational programs
to life needs such as hygiene kits and weekend food boxes fo
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Preserving
Our World
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Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations and Recycling
Our Strategic Focus Raising the Bar for Efficient Operations
In 2022, we announced our intention to work Fastenal’s value proposition centers on helping organizations become more resource-efficient across
toward a plan to reach net zero emissions by 2050, the supply chain. It starts by driving efficiencies within the span we directly control – the vehicles,
including an expectation to establish science-base
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Governance Appendix / 2024 ESG Report
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Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations and Recycling
GHG Management
This year-over-year comparison of our scope 1 and 2 emissions reflects our ongoing efforts
to reduce fuel consumption in our fleet operation and energy consumption in our facilities.
2023 2022
Scope
(Metric ton CO2e) (Metric ton CO2e)
Scope 1* 130,852 132,879
Scope 2** 39,077 40,074
Total*** 169,929 172,953
2023 Scope 1 Emissions 2022 Scope 1 Emissions
Business Division
(Metric ton CO2e) (Metric ton CO2e)
Scope Transportation 113,034 113,453
1 Manufacturing 3,187 3,494
Distribution Centers 1,925 1,376
Branch Locations 12,706 14,556
Support - -
Scope 1 Total 130,852 132
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Governance Appendix / 2024 ESG Report
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Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations and Recycling
Transportation
Driving Toward a Greener Future
A key (and differentiating) feature of Fastenal’s service model is our in-house transportation network, which allows us to control the movement of
materials across much of the supply chain. Our North American fleet includes more than 800 commercial motor vehicles (CMVs) as well as nearly 8,300
RAM pickup trucks used by our local teams to provide final-mile delivery service.
On a technical level, operating such a large fleet makes our scope 1 reporting higher than it would be if we relied more heavily on third-party carriers,
as is standa
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations and Recycling
Fuel Efficiency Strategies
Because we sell and replace a large portion of our fleet annually, we are regularly reviewing the latest fuel efficiency and safety options. In 2023, we
replaced roughly 1,820 vehicles to capture the newest technology. This included ordering 713 vehicles equipped with embedded telematics, which will
provide local managers with visibility to the vehicles’ fuel consumption and related data such as idling time, speed, and acceleration – a valuable tool to
improve the efficiency of the units.
A Proud SmartWay Partner
Since mid-2019, Fastenal has participated in
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations and Recycling
Facilities & Operations
In 2023, we continued our push for operational efficiency by completing 111 environmental projects in our facilities, including waste reduction, recycling,
and energy reduction projects. This involved a total investment of $372,400, a projected annual cost savings of $844,700, and an estimated annual
reduction of 3,040 metric tons of CO2.
Energy Use and Consumption
From technology investments to behavioral changes, we’re taking a holistic approach to reduce energy consumption throughout our brick-and-mortar
footprint. Here are some recent and in-progress highl
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations and Recycling
Evolving Our Branch Infrastructure
Over the last several years, we’ve been restructuring our United States branch model to be more customer-focused and space-efficient. This includes
removing standardized (non-market-specific) inventory, reducing or removing walk-in shopping space, and using that square-footage to install high-
density vertical shelving to support customer inventory needs. In select locations, we’re also implementing "pick modules" to create a second floor of
warehousing space, supporting thousands of additional products within the existing building. As a result of t
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations and Recycling
ENERGY STAR Program
Initiated in early 2021, our partnership with ENERGY STAR
provides us with tools to benchmark our electricity and
natural gas usage in all of our United States and Canada
locations. In 2023, we completed more than 1,000 ENERGY
STAR assessments for Fastenal locations larger than 5,000
square feet.
In late 2022, our distribution centers in Salt
Lake City, Utah and Lacy, Washington became
our first facilities to be certified as ENERGY
STAR buildings. In 2023, those distribution
Onsite: Sharing Space, Saving Energy centers were recertified, and they were joined
by two
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations and Recycling
Reducing, Reusing, and Recycling
Sustainable Procurement & Material Consumption
In 2023, we created a waste management program aimed at reducing our waste-to-landfill impact while generating direct cost savings. By profiling and
tracking waste streams, we are able to identify opportunities to improve our carbon footprint through waste reduction activities. The objective of the program
is to improve our waste diversion rate 10% annually compared to the baseline year of 2021.
Creating a Less Packaging-Intensive Distribution System
As part of our automated storage and retrieval
In 2023,
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Our Strategic Facilities & Reducing, Reusing
Transportation
Focus Operations and Recycling
Turning Pallet Wrap Into Patio Decks Water Consumption & Natural Resources
Plastic wrap (aka polyethylene film) presents a vexing Although we believe our water consumption and risk exposure are low, we’re taking steps
waste stream challenge for a distribution company to properly manage this critical resource. We comply with the United States Clean Water
like Fastenal. We need it to secure palleted shipments, Act and relevant regulations in other countries where they apply to our operations – for
and we receive tons of it into our distribution centers example, in our management of sto
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service for customers.Our ESG Governance Empowering Preserving Serving as a Appendix / 2024 ESG Report
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Serving as a
Trusted Partner
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Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
A Partner for Positive Change
Because Fastenal is part of so many organizations’ supply chains, when we improve our ESG practices, it can be amplified
on a global scale. The impact i
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
Safety Specialist Program
Fastenal’s safety specialists work with our customers’ environmental health and safety
(EHS) teams to help them:
Reduce regulatory, Improve transparency
Eliminate
financial, and operational and control around
potential serious
risk by improving their personal
injuries and
compliance with protective equipment
fatalities in the
governing bodies
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
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 specif
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
Sustainability Solutions
Our customers recognize that sustainability is a grassroots effort, and that every member of the organization – from senior leadership to new employees – can
affect the outcome. It starts with changes in behavior and a desire to implement process improvements for a healthier environment and sustainable future.
To help organizations turn grassr
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Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
Prevention Consumption Reduction Product Life Extension Recycling & Recovery
Supporting sustainable procurement, energy efficiency projects,
and process efficiencies in manufacturing and metalworking
Green and Energy-Efficient Products Program
To meet a broad range of our customers’ application needs, Fastenal offers approximately 52,700 green products, including cert
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
Category Management
Assisting customers with category management is central to our
value proposition as both a strategic supplier and a sustainability
solutions provider. It 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
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
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 tea
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
Engineering Program
We also support manufacturers with a global team of engineers who specialize
in the science surrounding fasteners and fastening applications. In addition to
reviewing prints, assisting with technical questions, and conducting trainings, these
professionals work with customers’ engineering teams during the design stage to
optimize how fasteners are
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
Prevention Consumption Reduction Product Life Extension Recycling & Recovery
Streamlining supply chain steps, visualizing usage, controlling consumption
Total Cost of Ownership (TCO) Analysis
In order to make data-driven recommendations for process improvements, our Lean Solutions team routinely conducts TCO Analysis (TCOA) exercises at customer
facilities to analyze
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
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 facilities, where it’s located, how it’s being used – leads to various forms of waste, from over-buying and obsolete inventory to stock
outages and inefficient rush deliveries.
Through the
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
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
digitally report the current inventory level in each stocking role-specific controls so their employees only have
location. This eliminates the need for Fastenal employees acce
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
Case Study: Curtiss-Wright: Custom Solutions for Each “Customer” in the Building
It wasn’t exactly a smooth takeoff for our Onsite program at Curtiss-Wright’s aerospace technology plant in Shelby, North Carolina.
When their previous supplier learned Fastenal had been awarded the business, they abruptly cleared out without sharing data and
Luckily, Fastenal,
assisting
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
Prevention Consumption Reduction Product Life Extension Recycling & Recovery
Maximizing product life through maintenance, repairs, and remanufacturing
Tool Repair Service
Fastenal’s eight North American 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, c
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
Tool & Cutter Grinding Service
The goal of this service is to help manufacturers reduce waste by optimizing the
performance and service life of their cutting tools. The process is similar to our
tool repair program (see previous page), but in this case the customer’s worn
(cutting) tools are transported to a Fastenal manufacturing facility, where our
machinists sharpe
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
Prevention Consumption Reduction Product Life Extension Recycling & Recovery
Diverting waste from landfills to create usable products or energy
Recycling & Recovery Programs
We’ve covered a range of solutions to help organizations prevent pollution, reduce consumption, and extend product life, but eventually all products flow
to a waste stream. That’s when our third-p
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Safety Our Green Total Cost of Recycling &
Supplier eCommerce Category Metalworking Engineering FMI Tool Tool & Cutter Supply Chain
Specialist Sustainability Products Ownership Recovery
Diversity Tools Management Program Program Technology Repair Grinding Resiliency
Program Solutions Program Analysis Programs
A Final Word on Supply
The "Links" in a Reliable, Responsible Supply Chain
Chain Resiliency
Recent years have clarified an unfortunate Robust global sourcing,
620+ dedicated supply chain
truth: When a supply chain is broken, compliance, and quality teams,
professionals (130+ on the
sustainability can quickly become an giving us agility early in the supply
ground in As
Keyword: governance
55Our ESG Governance Empowering Preserving Serving as a Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Appendix
56Our ESG Empowering Preserving Serving as a
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Forward Looking About This
GRI Index SASB Index TCFD Index SDG Index
Statements Report
Cautionary Note: Forward-Looking Statements/Disclaimers
Certain statements contained in this report of the organization, or in other written and oral statements made from time to time by the organization, do not relate strictly to historical
or current facts. As such, they are considered ‘forward-looking statements’ that provide current expectations or forecasts of future events. These forward-looking statements are
made p
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
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 report, Fastenal’s 2024 ESG Report, was published in March 2024 and reflects activities and initiativ
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
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, 2023 through December 31, 2023 with reference to GRI
Standards. The report has been prepared with references to GRI 1: Foundation 2021.
Disclosure Number GRI Standard Disclosure Title Fastenal Response
General Disclosures 2021
Organizational Profile
10-K Item 1: Business
2-1 General Disclosures Organizational details
10-K Item 2: Properties
Entities included in the organization’s
2-2 General Disclosures 10-K Item 15: Exhibits and Financial Statement Schedules
sustainability reporting
Keyword: governance
Governance
10K Item 10: Directors, Executive Officers, and Corporate
Corporate Governance Guidelines
2-9 General Disclosures Governance structure and composition Nominating and Corporate Governance Committee Charter
Compensation Committee Charter
Audit Committee Charter
Proxy: Corporate Governance and Director Compensation
Nomination and selection of the highest Proxy: Board Leadership Structure and Committee Membership
2-10 General Disclosures
governance body Corporate Governance Guidelines
10K Item 10: Directors, Executive Officers, and Corporate
2-11 General Disclosures Chair of the highest governance body
Governance
Proxy: Other Board and Corporate Governance Matters
Role of the highest governance body in
2-12 General Disclosures Governance
overs
Keyword: governance
Corporate Governance Guidelines
Role of the highest governance body in Corporate Governance Guidelines
2-14 General Disclosures
sustainability reporting About This Report
5599Our ESG Empowering Preserving Serving as a
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Forward Looking About This
GRI Index SASB Index TCFD Index SDG Index
Statements Report
Proxy: Audit Committee and Related Person Transaction Approval
2-15 General Disclosures Conflicts of interest Policy
Corporate Governance Guidelines
Corporate Governance Guidelines
2-16 General Disclosures Communication of critical concerns
About This Report
10K Item 10: Directors, Executive Officers, and Corporate
Collective knowledge of the highest governance
2-17 General Disclosur
Keyword: governance
es Governance
body
Corporate Governance Guidelines
Evaluation of the performance of the highest
2-18 General Disclosures Compensation Committee Charter
governance body
2-22 General Disclosures Statement on sustainable development strategy A Letter From Our President and CEO
Empowering People
Governance
2-23 General Disclosures Policy commitments
10K Item 1: Business
Supplier Code of Conduct
Mechanisms for seeking advice and raising
2-26 General Disclosures Proxy: Other Board and Corporate Governance Matters
concerns
2-29 General Disclosures Approach to stakeholder engagement About This Report
Material Topics 2021
3-2 Material Topics List of material topics Table of Contents
Economic Performance 2016
201-1 Economic Performance Direct economic value gener
Keyword: governance
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Forward Looking About This
GRI Index SASB Index TCFD Index SDG Index
Statements Report
Waste 2020
Waste generation and significant waste-related
306-1 Waste 2024 EHS Report
impacts
306-2 Waste Management of significant waste-related impacts 2024 EHS Report
306-3 Waste Waste generated 2024 EHS Report
306-4 Waste Waste diverted from disposal 2024 EHS Report
306-5 Waste Waste directed to disposal 2024 EHS Report
Supplier Environmental Assessment 2016
New suppliers that were screened using
308-1 Supplier Environmental Assessment Supplier Code of Conduct
environmental criteria
Occupational Health and Safety 2018
403-1 Occupational Health and Safety Occupational health and safet