Sustainability

A Message from Our President & CEO

I am proud to share Applied’s 2024 ESG Report which highlights Applied’s commitment to contributing to a better world for all our stakeholders. We recognize our business can make an impact in empowering the industrial economy to operate in a more sustainable and effective way.

Consistent with our commitment to continuous improvement, our ESG strategy is approached with a long-term perspective and balanced focus on driving steady progress that aligns with our Core Values, financial results, and shareholders’ expectations. We have integrated our ESG strategy into our operations, and I’m extremely pleased with our progress in recent years, including providing more disclosure about ESG topics and initiatives, which has been recognized by several of the third-party rating agencies.

We recognize that we play a critical role in supporting our customers’ sustainability efforts and understand that our customers turn to us for our product selection, knowledge, and expertise that helps find the right product for their needs. At the same time, we are advancing our own sustainability actions and transparency.

During fiscal 2024, we reduced our absolute energy consumption by 3% and increased our percentage of recycled waste. In this year’s report, we are also providing information on our waste generation and water consumption for the first time. We look to continue to identify and prioritize the sustainability issues that are important to our stakeholders and to increase our disclosures in the future.

We have a keen awareness that our success is tied to our ability to foster a productive and vibrant culture that motivates our team to be better every day. This includes a relentless focus on safety and advancing the well-being of our associates. Our Environment, Health & Safety (EH&S) program is integrated in all aspects of our business, including providing extensive training and coursework, as well as establishing policies that communicate clear expectations. This is evidenced by our Total Recordable Incident Rate (TRIR) improving 31% year-over-year.

Lastly, in August, we welcomed Richard J. Simoncic to our Board. We believe Rich’s fresh perspectives and track record of operational leadership is a great addition to our Board and aligns with our commitment to responsible corporate governance.

I am grateful to all of our associates and their contributions throughout the last year and look forward to continuing to move forward on our journey while strengthening our Company and delivering value to our shareholders.