2024 Corporate Sustainability Report: 'Cultivating Sustainable Value'
ANNEX
This annex expands transparency through key quantitative data compiled in accordance with the SASB and TCFD frameworks, along with additional details on our workforce, revenues, sales, stakeholders, locations and certification. Report data covers all global operations unless otherwise noted. In developing our Report, we have compiled metrics organized by key ESG themes incorporated within our tables and throughout our organization. DNOW member Companies best classify into the Sustainability Accounting Standards Board classifications for Oil & Gas Services and Specialty Retailers & Distributors. Our reporting reflects that classification. All data included in the following SASB and TCFD tables reflects calendar year 2024.
The information below represents a summarized, at-a-glance view of our 2024 Sustainability Report: Cultivating Sustainable Value. The information highlights the 2024-to-baseline year, and year-over-year comparisons, related to our environmental, social and governance sections within the report, in addition to our SASB, TCFD and UN SDG comparison tables. For a complete and more comprehensive view, please download the full document.
SASB Index
The Sustainability Accounting Standards Board (“SASB”) framework aims to provide a standard for companies to disclose financially-material and decision-useful ESG information to investors and other stakeholders. The index below maps our performance under each of the suggested disclosure topics for the following two industries:
- Oil & Gas Services (Code EM-SV)
- Multiline and Specialty Retailers & Distributors (Code CG-MR)
According to SASB’s Sustainable Industry Classification System (“SICS®”), these two industry standards most accurately reflect our business operations. Other topics disclosed throughout this Report beyond the scope of these standards are not reflected in this index.
| SASB Code | SASB Accounting Metric | Unit of Measure | 2024 Response | 2023 Response | 2022 Response | 2021 Response |
| Greenhouse Gas Emissions | ||||||
| EM-SV-110a.1 | Total fuel consumed | Gigajoules (GJ) | 265,333 | 224,011 | 216,873 | 248,228 |
| Metric tons carbon dioxide equivalent (MT CO2e) | 18,579 | 15,682 | 15,402 | 16,624 | ||
| Percentage renewable | Percentage (%) | 0% | 0% | 0% | 0% | |
| Percentage used in on-road equipment and vehicles | Percentage (%) | 99.8% | 99.9% | 99.8% | 99.8% | |
| Percentage used in off-road equipment | Percentage (%) | 0.02% | 0.01% | 0.2% | 0.2% | |
| EM-SV-110a.2 | Discussion of strategy or plans to address air emissions-related risks, opportunities and impacts | N/A | Page 55 | See 2023 Report | See 2022 Report | See 2021 Report |
| Energy Management | ||||||
| CG-MR-130a.1 | Total electricity consumed | Gigajoules (GJ) | 58,669 | 59,868 | 60,470 | 69,358 |
| Metric tons carbon dioxide equivalent (MT CO2e) | 6,928 | 7,629 | 7,896 | 8,247 | ||
| Total natural gas consumed | Gigajoules (GJ) | 68,962 | 76,194 | 74,891 | 112,104 | |
| Metric tons carbon dioxide equivalent (MT CO2e) | 3,528 | 3,900 | 3,841 | 5,683 | ||
| Total energy consumed | Gigajoules (GJ) | 127,631 | 136,062 | 135,361 | 181,462 | |
| Percentage energy consumed that is grid electricity1 | Percentage (%) | 46% | 44% | 45% | 38% | |
| Employee Health & Safety | ||||||
| EM-SV-320a.1 | Total recordable incident rate (TRIR) | Rate | 0.61 | 0.81 | 0.94 | 0.92 |
| Fatality rate | Rate | 0 | 0 | 0 | 0 | |
| Near miss frequency rate (NMFR) | Rate | Not Disclosed | Not Disclosed | Not Disclosed | Not Disclosed | |
| Total vehicle incident rate (TVIR) | Rate | 0.57 | 0.43 | 1.17 | 0.56 | |
| Average hours of health, safety and emergency response training for (a) full-time employees, (b) contract employees and (c) short-service employees | Hours | Not Available | Not Available | Not Available | Not Available | |
| EM-SV-320a.2 | Description of management systems used to integrate a culture of safety throughout the value chain and project lifecycle | N/A | Page 32 | See 2023 Report | See 2022 Report | See 2021 Report |
| Labor Practices | ||||||
| CG-MR-310a.3 | Total amount of monetary losses as a result of legal proceedings associated with labor law violations | Dollars ($) | $15,000 | See 2023 Report | See 2022 Report | See 2021 Report |
| Employee Engagement, Diversity & Inclusion | ||||||
| CG-MR-330a.1 | Percentage of gender and racial/ethnic group representation for (1) management and (2) all other employees | Percentage (%) | Page 41 | See 2023 Report | See 2022 Report | See 2021 Report |
| CG-MR-330a.2 | Total amount of monetary losses as a result of legal proceedings associated with employment discrimination | Dollars ($) | $0 | See 2023 Report | See 2022 Report | See 2021 Report |
| Data Security | ||||||
| CG-MR-230a.1 | Description of approach to identifying and addressing data security risks | N/A | Pages 27-29 |
See 2023 Report | See 2022 Report | See 2021 Report |
| CG-MR-230a.2 | Number of data breaches | Number | 0 | 0 | 0 | 0 |
| Percentage involving personally identifiable information | Percentage (%) | 0% | 0% | 0% | 0% | |
| Number of customers affected | Number | 0 | 0 | 0 | 0 | |
| Business Ethics | ||||||
| EM-SV-510a.1 | Amount of net revenue in countries that have the 20 lowest rankings in Transparency International’s Corruption Perception Index | Percentage (%) of Total Revenues | 0.02% | 0.04% | 0.23% | 0.15% |
| EM-SV-510a.2 | Description of the management system for prevention of corruption and bribery throughout the value chain | N/A | Page 22 | See 2023 Report | See 2022 Report | See 2021 Report |
| Critical Incident Risk Management | ||||||
| EM-SV-540a.1 | Description of management systems used to identify and mitigate catastrophic and tail-end risks | N/A | Page 19 | See 2023 Report | See 2022 Report | See 2021 Report |
| Product Design & Lifecycle Management | ||||||
| CG-MR-410a.1 | Revenue from products third-party certified to environmental and/or social sustainability standards | Dollars ($) | Not Available | Not Available | Not Available | Not Available |
| CG-MR-410a.3 | Discussion of strategies to reduce the environmental impact of packaging | N/A | Page 24 | See 2023 Report | See 2022 Report | See 2021 Report |
| Management of the Legal & Regulatory Environment | ||||||
| EM-SV-530a.1 | Discussion of corporate positions related to government regulations and/or policy proposals that address environmental and social factors affecting the industry | N/A | Page 21 | See 2023 Report | See 2022 Report | See 2021 Report |
| Activity Metrics | ||||||
| CG-MR-000.A | Number of retail locations | Number | 153 | 155 | 170 | 180 |
| Number of regional fulfillment centers | Number | 9 | 10 | 9 | 8 | |
| CG-MR-000.B | Total area of retail space | Square meters (m2) | 198,764 | 247,613 | 267,629 | 254,958 |
| Total area of regional fulfillment centers | Square meters (m2) | 93,962 | 95,169 | 91,552 | 87,836 | |
1 Calculated as purchased grid electricity consumption divided by total energy consumption, which includes natural gas consumption.
TCFD Index
We are committed to increasing transparency and alignment of our reporting with the recommendations established by the Task Force on Climate- Related Financial Disclosures (“TCFD”). The TCFD developed voluntary, consistent climate-related financial risk disclosures for use in providing information to stakeholders. Below is a summary of these disclosures in this report.
| TCFD RECOMMENDATION | SUPPORTING RECOMMENDED DISCLOSURE | LOCATION OF DISCLOSURE |
|---|---|---|
| GOVERNANCE | ||
| Disclose the organization’s governance around climate-related risks and opportunities. | a) Describe the Board’s oversight of climate-related risks and opportunities. b) Describe management’s role in assessing and managing climate-related risks and opportunities. |
Corporate Governance Oversight, Page 12-13 |
| STRATEGY |
||
| Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning where such information is material. | a) Describe the climate-related risks and opportunities the organization has identified over the short-, medium- and long-term. b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning. |
Risk Management, Pages 18-20 Management of the Legal & Regulatory Environment, Page 21 |
| c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. | At this time, DNOW has not conducted a 2°C or lower scenario analysis. We are, however, committed to continuing to enhance our understanding of climate-related risks and opportunities and the ways in which they impact our business, strategy and financial planning, and will assess this initiative in the future. | |
| RISK MANAGEMENT | ||
| Disclose how the organization identifies, assesses and manages climate-related risks. | a) Describe the Board’s oversight of climate-related risks and opportunities. b) Describe the organization’s processes for managing climate-related risks. c) Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization’s overall risk management. |
Risk Management, Page 20 |
| METRICS & TARGETS | ||
| Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. | a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 GHG emissions and the related risks. |
SASB Index, Page 60 |
| c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. | We have not yet set climate-specific targets, as we’re focused on establishing our GHG emissions baseline and enhancing our approach to ESG data collection. We will continue to evaluate the feasibility and relevance of setting climate- specific targets in the future. | |
