Sustainability

A Message from Our President & CEO

At Applied, we believe sustainability is not a destination, but a continuous journey of responsibility, innovation, and improvement. As a leading industrial distributor and solutions provider with unparalleled domain knowledge of industrial facilities, we operate at the intersection of global supply chains, essential infrastructure, and evolving customer expectations. That critical position brings significant responsibility and opportunity.

This year, we laid important groundwork to deepen our understanding of our impacts and refine our approach to sustainability. We completed our inaugural double materiality assessment, providing a clearer view of where our operations intersect with the issues that matter most. This assessment is already informing our decisions and operating priorities, helping us focus on the most impactful areas in creating a stronger future for our communities and the industries we serve and generating long-term value for our shareholders.

We also undertook our first limited assurance of greenhouse gas (GHG) emissions, a key step in ensuring our environmental data is reliable and aligned with increasing transparency expectations. These initiatives reflect our ongoing commitment to accountability and compliance and set a strong foundation for future climate disclosures, risk management, and operational improvements.

Beyond these milestones, we’ve continued to improve in the areas that matter most to our key stakeholders. We know Our People Make the Difference and have improved the experience of our associates by transitioning all of the HR information our employees need to one easy-to-use online platform and enhancing our HealthyYou! Wellness program. Also, as a Strategic Sourcing partner, we’ve found new ways to support our customers’ operations and sustainability goals, including providing energy-efficient motors and drives and developing innovative solutions supporting customers’ transition to electric powered fluid power systems. We are also are continuing on our path of Environmental Stewardship, including obtaining our ISO 14001:2015 environmental management certification.

Grounded in our Culture of Governance and guided by our Core Values, we are committed to carrying this momentum forward and strengthening the performance and resilience of our company and the industrial economy.

Thank you to our associates, our customers, our suppliers, and all our stakeholders for your continued trust and for being a part of this journey. We have made tremendous progress in recent years that we look to build upon into the future to further enhance our long-term competitive position, associate advancement, and customers’ progress.