We believe that the impact of human activity on the environment, particularly as it relates to the effects of carbon dioxide and other greenhouse gas emissions on the Earth’s climate, will lead to significant environmental, political and social changes that will present both risks and opportunities. As a leading independent manufacturer and distributor of replacement parts for motor vehicles, we recognize that we have an important role to play by conducting our business in an environmentally responsible manner, which emphasizes an awareness for the potential environmental impact of our actions and seeks to identify and implement appropriate solutions to reduce our impact while achieving our business goals. These principles are embodied in our Environmental Policy and form the foundation of our strategic approach to managing climate-related risks and opportunities. You may read more about our Environmental Policy here.
We take a multidisciplinary approach to managing our climate-related risks, which we believe leverages our expertise across various fields to identify, assess and manage these risks effectively within the umbrella of our enterprise-wide risk management processes. Accordingly, members of senior management are primarily responsible for identifying, assessing and managing climate-related risks within their areas of expertise, and reporting to the Board of Directors, where appropriate, material risk to the Company as part of the Board’s risk oversight function.
Climate-related risks include, among others, the increase in frequency and severity of weather events and natural disasters, which could result in the damage or disruption of our manufacturing or distribution operations, and longer-term shifts in climate patterns, which could affect the seasonal demand for our products. Furthermore, public concern regarding the effects of greenhouse gases on the Earth’s climate may result in changes in governmental regulations and policies that directly affect the production, distribution or use of automotive parts.
We believe that our efforts to mitigate these and other climate-related risks also present opportunities. For example, we have sought to improve operating efficiencies and reduce costs through investments in energy efficient facility upgrades, such as lighting fixtures, and through the completion of plant rationalization programs at several principal manufacturing and distribution facilities. We also continuously look to expand our product offering by adding new product categories in response to new and evolving vehicle technologies, including those relating to the ignition, emissions and fuel economy systems of motor vehicles. You can read more about our efforts in this area here.