DNOW Social Impact | Sustainability Report

Our safety culture is instilled as a core value of our organization first and foremost at the leadership level, including engagement from executives, our Board and operational leaders. We take a proactive approach to safety and are continuously working to adapt our safety topics and priorities to the needs of specific business segments and regions. Our safety culture is driven through our HSE management system, which consists of our HSE Policy Statement, HSE Guiding Principles and our corporate and business-level policies and procedures.

HSE Policy Statement – a one-page, top-level document, which sets the tone for our organization and outlines our HSE expectations for all employees, vendors, customers, contractors, subcontractors and third parties. This statement establishes the heart of our HSE management system and undergoes review and approval by our General Counsel.

HSE Guiding Principles – an essential framework for our HSE management system and safety culture, outlining our minimum corporate safety requirements, as well as how we intend to comply with client and regulatory expectations. Principles such as “Engagement in Safety Culture”, “Management and Retention of Records” and “Prevention and Preparedness” exemplify our commitment.

Corporate Policies and Procedures – broad-based procedures, instructions and restrictions designed to mitigate potential incidents and risks. These policies and procedures offer flexibility to address concerns at the customer, regional, and/or global level and apply to all our business units.

Business-Level Procedures, Forms, Guidelines, Records and Training – includes HSE management system controls, documents and procedures tailored for or by a business group or location. These are very specific in scope and are controlled and updated by the business group.

1 - At the time of this Report’s publication, the 2024 rate was not yet available. As such, DNOW’s 2024 TRIR was compared to the 2023 BLS rate.
2 - TRIR, per 200,000 hours worked and calculated based on industry-accepted methodology used by the U.S. Bureau of Labor Statistics and OSHA requirements. Hours worked are estimated for salaried employees.
3 - TVIR per 1,000,000 miles driven. Mileage for UK and Netherlands is not included.
4 - BLS for Industrial Machinery and Equipment Merchant Wholesalers (NAICS 423830).

Our Safety Best Practices

At the time of hire, all employees undergo comprehensive HSE training covering our HSE management system. Job- and site-specific HSE training are provided based on the employee’s title, responsibilities and location. All U.S. DNOW branch-level locations conduct mandatory monthly safety meetings to fulfill customer training requirements and address current safety topics. Many U.S. and international facilities conduct more frequent safety meetings on a daily, weekly or otherwise necessary basis. Additional safety best practices include:

Facilitating regular operational region meetings to increase HSE exposure
Developing relationships with branch employees and throughout all levels in the organization
Implementing preventative and corrective actions, where necessary, to increase accountability
Conducting application-based, behavior-based safety observations to engage employees and address real-time safety concerns
Providing computer-based, in-person and virtual HSE-related trainings to target improvements
Engaging in direct communication with Executive Leadership Team for top-level buy-in to drive safety culture and expectations

To ensure standardized, appropriate and timely safety training across our organization, Corporate HSE engages an employee management system, which provides our employees with access to an extensive library of training topics and tracks completed training hours. Our HSE training catalog is globally accessible to all employees. The computer-based training courses also serve as corrective actions, assigned by managers, HSE and Human Resources to reinforce safety principles whenever necessary.

DNOW has experienced a substantial shift in safety culture over its 11 years; the focus on safety is pushed at all levels of the organization and has resulted in a safer work force, demonstrated by our incident rate trends. The prioritization of safety has been pushed through continuous education and communications, safety days hosted at locations throughout the U.S. and an HSE department that partners with operations to provide support and guidance based on continuous improvement and compliance.

Technical Sales Development (“TSD”) Program – a year-long program where participants rotate through our organization to gain valuable knowledge about the DNOW business model and develop skills that enable them to provide the highest quality service while advancing within DNOW. The program allows DNOW to identify each employee’s strengths and interests to match to the needs of the Company.
High Potential Development Program (“HiPo”) – targeted training to strengthen specific skills and competencies for ongoing career growth and advancement
Leadership Program – three custom-designed leadership experiences focused on enhancing leadership capabilities and talents at various career points
Inside Sales Training and Accelerated Sales Training Programs – multi-week, webinar-based training programs, which enable our sales team members to increase their virtual selling skills and learn how to apply cutting edge sales techniques to build stronger customer relationships
Operational Leadership Training – provides both current and prospective Operations and Branch Managers with the necessary operational knowledge and resources essential for achieving success and career progression
Peer-to-Peer Mentorship Program – promotes engagement with peers to foster global connections, expand internal networks, advance career development, acquire new skills and gain broader perspectives through cross-functional collaboration

Corporate Excellence Rotational Program – a six-month program for recent graduates to broaden their knowledge of various business areas, while grasping an overview of DNOW’s business model, processes and overall strategy
Sales and Operations Rotational Program – focused on attracting high-potential recent graduates, providing them with hands-on experience through focused rotations to gain comprehensive insights into DNOW’s operations and strategy within a year
Manager Training Program – provides essential leadership skills, best practices and resources for soon-to-be, current and long- tenured people managers

DNOW IN ACTION

Manager Training Program

In 2024, we launched a manager training program to support all DNOW manager positions, from new to more experienced leaders. Participants gain valuable insights to lead effectively, foster team engagement and drive success. DNOW also continued a partnership with a key customer on a collaborative training program designed to enhance team engagement and strengthen relationships. This initiative not only provides valuable training for both parties but also fosters deeper connections, alignment and shared learning.

Training & Development

Formal annual performance reviews to encourage feedback and foster growth
Learning Management System including a library of e-learning content, courses, resources, webinars and instructor-led training, as well as training transcripts for personal and professional development
Comprehensive onboarding program aimed at providing a foundation for new employees to acquire the skills and knowledge to become effective contributors to our organization
Professional development tools through in-person training, webinars and on-demand training designed to meet group-specific needs
Manager training courses focused on building efficient and effective teams
Leadership townhall sessions for our team members to obtain updates from leaders and engage in open dialogue
Training and development programs to recognize performance and grow our talent

At DNOW, our commitment to Cultivating Sustainable Value guides how we work. Since our last Sustainability Report, we’ve continued to review key governance policies — such as our Code of Business Conduct and Ethical Standards — to provide guidance around employee engagement and development. We promote a culture where our stakeholders — including our people, customers, suppliers, other business partners, shareholders and local communities around the world — feel safe speaking up.

We prioritize dignity, mutual respect and fairness in every interaction. Our anti-discrimination and anti-harassment policies set clear expectations and are reinforced through board oversight, ongoing training and open communication. These standards help ensure good corporate governance and high ethical standards.

We also recognize that our people are central to our long-term success. DNOW is committed to cultivating a workplace culture that prioritizes safety, respect, collaboration and innovation — fundamentals that empower our people to perform at their best. We invest in our workforce with the intent to foster an inclusive environment where individuals are supported, recognized and encouraged to grow.

Our employee engagement program is designed to align development with our long-term success model. These efforts include structured goal setting, feedback to make constructive changes, succession planning and ongoing learning opportunities. We maintain a market-aligned compensation framework that supports fair, competitive and equitable pay practices across the Company.

We continue to evolve our talent strategies by building strong partnerships with universities and enhancing our recruiting outreach to attract diverse, high-potential candidates. Talent development processes are regularly reviewed with the Board to ensure transparency and alignment with our organizational values. Our compensation model is structured to promote equity and accountability, while discouraging incentives that could lead to unnecessary or inappropriate risk-taking.

"I want to extend my sincerest gratitude to the women and men of DNOW who work tirelessly to distinguish us in the market. Thank you for everything you do to support our suppliers and delight our customers."
— David Cherechinsky, President and CEO

At DNOW, our people are the foundation of our success. We are committed to cultivating an inclusive workplace where every team member is empowered. This commitment is embedded in our identity as a Company, shaping our culture and enhancing the experience we deliver to our customers, communities and stakeholders.

We prioritize the growth and development of our employees, fostering opportunities for valued contributions and innovation. We understand that empowering and advancing our team not only drives a better quality of work and life for our employees but also enables us to Cultivate Sustainable Value for our customers, helping us execute on our commitment to be our industry’s preferred supplier. We understand that the collective sum of our employees’ individual differences, life experiences, knowledge, self-expression, capabilities and talent amplifies our DNOW brand, enables us to drive innovation and enriches our culture. Our culture commits to advancing an inclusive environment where diversity is appreciated and encouraged, and all employees have a sense of belonging and open communication channels throughout our organization. We believe it is crucial to maintain workplace equity and fairness where our differences are recognized as strengths.

Within the Five Stages of DEI Maturity, DNOW is well into the tactical phase, where integrating DEI efforts into our business to create a more inclusive experience is a top priority. Our ongoing efforts include a focus on DEI education and awareness, the launch and development of additional ERGs and the addition of Inclusion and Safety Moments to team meetings. As we continue to make progress on our journey, we strive to nurture a culture of inclusion where our people are as innovative, productive and diverse as our business portfolio.

In 2024, inclusion remains vital to the Company. Our commitment starts with our goal of attracting, developing and retaining a workforce that is diverse in background, knowledge, skills and experience. We are committed to providing equal employment opportunities with regards to recruiting, compensation, performance and promotion decisions without discriminating on the basis of gender, sexual orientation, age, family status, ethnic origin, nationality, disability, religious belief or any other legally protected characteristics.

We actively support and celebrate cultural events throughout the year, such as Black History Month, Sami National Day, International Women’s Day, Asian Pacific American Heritage Month, National Indigenous History Month in Canada, Pride Month, International Day of the World’s Indigenous People and National Day for Truth & Reconciliation, among many others. We are focused on creating an inclusive and high-performance culture. In addition, DNOW resource groups foster inclusion and build awareness among all employees, which helps with recruiting and retaining a diverse workforce. With approximately 2,575 employees worldwide, we are committed to fostering and embracing a diverse community in which employees share a mutual understanding and respect for one other.

The diversity of the Company’s employees is a tremendous asset. Their strong leadership, team building, problem solving and broad insights into customer needs are demonstrated by our overall success. Our talent acquisition team facilitates interview skills training to ensure consistency in candidate assessments and to mitigate biases during the hiring process.

Diversity is interwoven within the DNOW culture — how we operate and collaborate as a Company to support and strengthen our business performance.

Inclusion is a journey, not a destination. Our intention is to make a lasting and sustainable positive impact, and we aim to be thoughtful, practical and balanced in our approach.

We are all in this together. Everyone is invited to contribute to an inclusive and collaborative culture.

Because we know that creating an environment of safety for our team members starts with each leader setting the tone, our leaders receive education on how to foster an inclusive workplace.

We support employee resource groups (“ERGs”), which help foster inclusion among all teammates, build awareness and recruit and retain a diverse workforce.

We are committed to creating a Company where everyone is included and respected, and where we support each other in reaching our full potential. We take pride in the fact that many of our employees, ranging from field employees to executive management, have significant tenure with the Company. We do not have unionized employees within our domestic employee base; however, many of our international locations are subject to union contracts. At December 31, 2024, we had approximately 2,575 employees, of which approximately 180 were temporary employees. We offer market-competitive benefits for employees and opportunities for growth and advancement. We place a strong emphasis on employee growth and development and provide opportunities for valued contribution and innovation. Our ethos determines how we act and interact; what we value; what we tolerate; how we treat one another, our customers and communities, and the drive to continue to surpass expectations.

DNOW’s success is linked with the prosperity of the communities we serve. Our worldwide DNOW Lights program promotes corporate social responsibility and brings together employees to make a difference through strategic philanthropy, demonstrating our dedication to being a bright light and positive impact within our local communities.

Our team regularly supports many different organizations that share our desire to make positive change in the world. We donate our time and talent, as well as financial contributions, to cultivate strong connections with each other and to the communities we serve. You can learn more about DNOW Lights and our community initiatives by visiting our DNOW Lights page.

SAFETY METRICS	2024	2023	2022	2021
Total Recordable Incident Rate (“TRIR”)²	0.61	0.81	0.94	0.92
Total Vehicle Incident Rate (“TVIR”)³	0.57	0.43	1.17	0.56
U.S. Bureau of Labor Statistics industry average TRIR rate⁴	2.0	2.0	2.1	2.1

Social Impact

OUR 2024 Social Highlights