8 highlights to CarMax’s 2023 Responsibility Report
CarMax is sharing more than just its used-vehicle retail performance, as on Monday the company released its 2023 Responsibility Report, which features expanded disclosures regarding its environmental, social and governance priorities.
The report also includes details on the company’s relevant climate-related risks and opportunities in a manner aligned with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).
In addition, the report provides updates on several key initiatives, including progress on meeting 2025 greenhouse gas emissions reduction goals, enhancements to the company’s diversity and inclusion program, and the company’s expanded impact on local communities.
“We are excited to share our 2023 Responsibility Report, which outlines the meaningful progress we have made over the last year in our social impact and sustainability efforts,” CarMax CEO Bill Nash said in a news release. “There are many notable developments outlined in this report, and we are particularly proud of our associate culture that thrives with inclusivity increasingly at its center, our enhanced disclosure and transparency on climate-related issues, and the tangible impact we are making in our local communities.
“Thanks to these efforts, we are confident that we are well-positioned to contribute to a better society for everyone and drive the long-term sustainable value of CarMax for all our stakeholders,” Nash continued.
A few key initiatives that are outlined further in the report include:
—CarMax initiated an intensive process to identify and align on the company’s climate-related risks and opportunities, allowing for enhanced disclosure and improved management of the business and long-term planning, as well as ensuring CarMax remains well-positioned to comply with potential climate-related reporting mandates.
—CarMax finalized its greenhouse gas reduction roadmap, which clearly outlines the company’s path to achieving its 2025 climate goal to reduce Scope 1 and Scope 2 greenhouse gas emissions by 50% as compared to the 2018 baseline. The reduction roadmap also serves as a guide for CarMax as it identifies and pursues projects that will reduce its carbon footprint.
—CarMax made meaningful progress in 2022 by reducing greenhouse gas emissions by more than 10% as measured by its 2025 goal.
—CarMax remains focused on the intention to become the leading retailer of used electric vehicles (EVs) in the industry and this year focused on continually improving its ability to recondition a broader range of hybrid and EV models, to assess used batteries, and to profitably acquire, price, and sell used EVs. Additionally, through subsidiary Edmunds and on CarMax.com, CarMax has meaningfully enhanced its focus on educational content aimed at informing and supporting first-time EV and hybrid vehicle owners.
—CarMax increased its ethnic and racial diversity in leadership positions from 29% in FY22 to 30.7% in FY23. Over the same period, the company increased female representation in leadership positions from 23.4% to 24.2%.
—CarMax formalized its supplier diversity plan with a multi-year roadmap to ensure that vendors have equal opportunities to do business with the company.
—CarMax has embedded several ESG metrics into its annual incentive bonus plan, including greenhouse gas reduction and diversity and inclusion training goals.
—In its 2023 fiscal year, the company made an even greater impact on its communities, with 100% of company locations participating in local volunteering events and $10 million invested through The CarMax Foundation and the company’s corporate philanthropy efforts.