ATD Releases Inaugural ESG Report

Leading independent tire distributor shares vision to pivot the industry toward a more sustainable future

American Tire Distributors (ATD), the largest replacement tire distributor in North America, today released its first Environmental, Social, Governance (ESG) report. With its release, ATD commits to identify opportunities and invest in solutions that are designed to improve its holistic community impact while delivering unmatched customer service to the entire replacement tire ecosystem.

As a critical connector between manufacturers and retailers, the Company is encouraging others in the industry to embrace ESG. Historically, the tire replacement industry has lagged other sectors in taking responsibility for its community impact. ATD is changing that by assertively leading the industry toward a better, more sustainable future.

“Our corporate vision is to help our customers thrive and drive into the future, with a stated purpose to be the most connected and insightful automotive solutions provider,” said Stuart Schuette, ATD President and CEO. “We consider ESG to be a key factor driving business resilience, and as a leader in the industry and tire replacement ecosystem, we serve as a critical and expeditious link between manufacturers and customers of all types.”

ATD’s ESG effort began in 2017 with the creation of its Sustainability Committee, which consulted with Sustainalytics to assess ATD’s ESG standing. In its first report on the Company, Sustainalytics gave ATD a low-risk rating, ranking the Company 140 out of almost 13,000 companies and fourth among 36 retailing distribution companies studied in 2020.

“The release of our first ESG report is an important milestone not only for ATD, but also for the broader automotive aftermarket industry. The overarching goal of our sustainability initiatives is providing superior service while lowering our carbon footprint. By launching services for our retail and manufacturing partners that eliminate the need for inefficient transportation methods while reducing GHG impacts, we’re setting the industry standard and ultimately helping drive improved results across our industry,” says Schuette. “We are early in our sustainability goals, but by aiming for these ambitious targets, we expect to be well on our way to realizing sustainability in every sense of the word.”

At ATD, environmental measures focus on direct reductions in greenhouse gas (GHG) emissions, energy use, and waste. The Company aims to reduce its overall operational greenhouse gas (GHG) emission by 25 % by 2030 and reduce its carbon footprint by replacing carbon-based energy sources with renewable sources. From its fleet and distribution centers across North America to its field support center in Huntersville, NC, this includes expanded use of electric or alternative-fuel vehicles, reductions in energy consumption, and recycling and repurposing materials.

The social aspect is driven by the philosophy that to achieve its purpose—to help its customers thrive and drive into the future—ATD must first understand, empower, and nurture the human capital within the company. ATD’s social goal is centered on careers, culture, and the community, which extends to active engagement and support of the communities it serves.

Good governance is a fundamental principle at ATD and encourages a culture of transparency, legal compliance, and ethical conduct. ATD values a strong company culture that promotes clear expectations of ethical behavior, trust and confidence between the company, its shareholders, and its communities. The Company reinforces this commitment through training and firm accountability measures.

“Because we are a critical link between suppliers and customers, ATD can help our partners solve legacy problems—including environmental impacts—that threaten the industry’s productivity, profitability, and performance, said Schuette. “Our aim is to ensure we thrive amidst change, revolutionize our ecosystem, and remain a high-performance company constantly steering toward success.”

To learn more about ATD’s sustainability efforts and view the full ESG report, click here.