CarMax Releases 2022 Responsibility Report

Rhea-AI Summary

CarMax (KMX) released its 2022 Corporate Responsibility Report, highlighting ambitious climate initiatives and a commitment to social responsibility. The report outlines plans to reduce greenhouse gas emissions by 50% by 2025 and achieve net-zero carbon emissions by 2050. Additionally, CarMax noted an increase in renewable electricity use to 17.23% in 2021, up from 15.73% in 2020. The company also expanded diversity efforts and increased hourly wages for associates. In FY22, over $9.5 million was invested in community initiatives, underlining its commitment to stakeholders.

Positive

• Targets reducing Scope 1 and Scope 2 GHG emissions by 50% by 2025.
• Aiming for net-zero carbon emissions by 2050.
• Increased renewable electricity use to 17.23% in 2021 from 15.73% in 2020.
• Expanded diversity and inclusion initiatives with dedicated resources.
• Increased hourly wages for the majority of field associates.
• Invested over $9.5 million in community programs in FY22.

Negative

• None.

Report Cites Company’s Ambitious Climate Targets, Ongoing Commitment to Putting Its People First

RICHMOND, Virginia, July 28, 2022 (GLOBE NEWSWIRE) -- CarMax, Inc. (NYSE: KMX), the nation’s largest buyer and seller of used cars, announced the release of its 2022 Corporate Responsibility Report. The report features expanded disclosures and updates on progress across several key initiatives including diversity and inclusion, community impact, and our goal of achieving net zero greenhouse gas emissions by 2050. 

“Strong corporate social responsibility and ESG practices are integral to our company strategy and to driving long-term sustainable value for our associates, customers, communities, and shareholders for years to come,” said Bill Nash, CEO of CarMax. “I am excited by the level of rigor with which we have approached our ESG and sustainability efforts over this past year, and our focus on keeping our core values front and center. Looking ahead, we are extremely well-positioned to continue making a difference for our various stakeholders.” 

A few of the initiatives that are outlined further in the report include: 

• CarMax moved to the forefront of the auto retailing industry in addressing climate change by establishing greenhouse gas reduction targets that demonstrate the company’s commitment to decarbonization. For the first time in the company’s history, the report discloses information on: 

• • Reducing CarMax’s Scope 1 and Scope 2 GHG emissions by 50% by 2025 against the company’s 2018 baseline; and
  • Achieving net-zero carbon emissions by 2050 in accordance with the Paris Agreement. 

• In calendar year 2021, CarMax’s renewable electricity use as a percentage of total electricity consumed was 17.23%, up from 15.73% in 2020, and 6.37% in 2019. 

• CarMax expanded its Diversity and Inclusion commitment by adding additional resources, including a new dedicated role to progress supplier diversity. The company also significantly expanded educational efforts with more than 95% of associates and all Board members completing quarterly educational lessons. 

• The company increased hourly wages for the vast majority of field associates following a comprehensive review of the company-wide pay structure. CarMax approaches compensation through a lens of equity, with a focus of ensuring that associate compensation is fair, competitive, and aligned with the company’s value of Putting People First. 

• In FY22, CarMax invested more than $9.5 million in the communities where the company’s associates live and work through The CarMax Foundation and its other philanthropy efforts. 

### 

About CarMax

CarMax, the nation’s largest retailer of used autos, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. CarMax also provides a variety of vehicle delivery methods, including home delivery, express pickup and appointments in its stores. During the fiscal year ended February 28, 2022, CarMax sold approximately 924,000 used vehicles and 706,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated more than $9 billion in receivables during fiscal 2022, adding to its nearly $16 billion portfolio. CarMax has more than 230 stores, more than 30,000 associates, and is proud to have been recognized for 18 consecutive years as one of the Fortune 100 Best Companies to Work For®. CarMax is committed to making a positive impact on people, communities and the environment. Learn more in the 2022 Responsibility Report. For more information, visit www.carmax.com.

FAQ

What are CarMax's 2022 climate commitments?

CarMax aims to reduce its Scope 1 and Scope 2 greenhouse gas emissions by 50% by 2025 and achieve net-zero carbon emissions by 2050.

How much did CarMax invest in community initiatives in FY22?

In FY22, CarMax invested over $9.5 million in community programs through The CarMax Foundation and other philanthropic efforts.

What percentage of renewable electricity did CarMax use in 2021?

CarMax's renewable electricity use was 17.23% of total electricity consumed in 2021, up from 15.73% in 2020.

What changes were made to CarMax's employee wages?

CarMax increased hourly wages for the vast majority of its field associates after a comprehensive review of its pay structure.

What diversity initiatives did CarMax implement in 2022?

CarMax expanded its diversity and inclusion efforts, including new resources and ensuring that over 95% of its associates completed educational lessons.