CarMax Releases 2024 Responsibility Report

Rhea-AI Summary

CarMax, the largest U.S. retailer of used cars, has published its 2024 Responsibility Report, emphasizing its commitment to sustainability and societal impact. The report highlights CarMax’s initiatives to reduce greenhouse gas emissions, enhance its electric vehicle (EV) expertise, and promote gender equality in sports. Notable achievements include a rise in renewable electricity usage to 41% in 2023, the debut of an all-electric semi-truck pilot, and the establishment of a Sustainability Council. CarMax has also been recognized for its community contributions, donating over $100 million to nonprofits and participating in local volunteer events. The company continues to be listed among Fortune’s 100 Best Companies to Work For, marking its 20th consecutive year on the list.

Positive

• 41% of CarMax’s electricity consumption in 2023 came from renewable sources, up from 36% in 2022.
• Featured on the EPA's Green Power Partnership Top 30 Retail list for the first time in 2023.
• Committed to a 50% reduction in Scope 1 and Scope 2 greenhouse gas emissions by 2025 compared to 2018 levels.
• Introduced an all-electric semi-truck pilot in California to reduce emissions.
• Established an internal EV Strategy Advisors Group to enhance EV expertise and infrastructure.
• Formed a Sustainability Council in 2023 to promote environmental initiatives.
• Donated over $100 million to nonprofit organizations since 2003.
• Recognized as one of Fortune’s 100 Best Companies to Work For, for the 20th consecutive year.

Negative

• Environmental goals partially achieved by shifting Scope 3 emissions to Scope 1, raising questions about net environmental impact.
• Heavy reliance on renewable electricity to meet sustainability targets could be risky if renewable energy sources become or more costly.

Report Cites Company’s Ongoing Commitment to Sustainability and Making a Positive Societal Impact

RICHMOND, Virginia, May 20, 2024 (GLOBE NEWSWIRE) -- CarMax, Inc. (NYSE: KMX), the nation’s largest retailer of used cars, today announced the release of its 2024 Responsibility Report, underscoring the company’s ongoing commitment to making a positive societal impact while building sustainable value for its stakeholders. The report details the numerous ways CarMax continues to enhance its sustainability efforts, invest in its local communities, and promote equal access for all to reach their full potential. Among other initiatives, the report highlights key updates on the company’s roadmap to meet greenhouse gas emission reduction goals; ongoing progress to be the leader in used electric vehicle (EV) expertise, guidance, sales and acquisitions; and expanded efforts to raise the visibility of women in sports.

“We are proud of the strides we continue to make around social impact and sustainability, thanks in significant part to the commitment and hard work of our associates,” said Bill Nash, president and chief executive officer. “We recognize that making progress on sustainability is not a linear journey, and our focus will remain on operating responsibly over the long-term. I have every confidence that we will continue to make a positive difference and drive value for all CarMax stakeholders.”

A few key initiatives further detailed in the report include:

• CarMax has continued efficiencies to reduce its electricity use, including leveraging LED lighting in its stores, and has increased its use of renewable electricity from wind and biogas. In 2023, 41% of CarMax’s total electricity consumed was from renewable sources, up from 36% 2022. In addition, in 2023, CarMax was featured for the first time on the Environmental Protection Agency's Green Power Partnership Top 30 Retail list.
• CarMax continues to advance its greenhouse gas reduction roadmap to reduce Scope 1 and Scope 2 greenhouse gas emissions 50% by 2025 compared to the 2018 baseline. By increasing the use of its own fleet for vehicle transportation, CarMax has continued to reduce dependence on third-party logistics, though shifting some Scope 3 emissions to Scope 1. Additionally, the company’s investment in renewable electricity has decreased Scope 2 emissions.
• CarMax remains dedicated to managing its fleet logistics sustainably as a key component of the company’s ESG strategy. In 2023, the company announced the pilot of its first all-electric semi-truck that is being used as a vehicle hauler in California’s San Joaquin Valley. CarMax’s test to replace a diesel semi-truck with a zero-emission vehicle (ZEV) will help the company make decisions on future expansions of electric semi-trucks.
• CarMax continues to advance its hybrid and EV expertise and infrastructure, and recently established an internal EV Strategy Advisors Group. This cross-functional team, drawing members from engineering, marketing, corporate strategy, and other key areas, is tasked with coordinating research, operational readiness, and marketing initiatives related to EVs at CarMax.
• CarMax established a Sustainability Council in 2023 to enhance environmental initiatives across the company. This council is dedicated to fostering collaboration, connectivity, and creative identification of high-impact opportunities that further advance sustainability efforts at CarMax.
• 2024 marked the 20^th consecutive year that CarMax has been recognized as one of the Fortune 100 Best Companies to Work For.® In addition, this year the company enhanced its Associate Care and Connection program to better support associates and strengthen connections across the organization.
• Since 2003, CarMax and The CarMax Foundation have collectively donated over $100 million to nonprofit organizations, demonstrating the company’s longstanding commitment to the growth and wellbeing of its local communities. In 2023, CarMax associates made a great impact on communities, with 100% of company locations participating in local volunteer events.
• Over the last 13 years, thousands of CarMax associates have brought to life new playgrounds across the country, positively impacting the lives of more than 150,000 children annually. In 2023, The CarMax Foundation and KABOOM! reached an incredible milestone – the 100^th playground built together.
• CarMax’s external partnerships with the National Women’s Soccer League (NWSL) and the Women’s National Basketball Association (WNBA) reflect the company’s commitment to raising the visibility of women in sports as professional athletes and diverse role models to drive impact for future generations of women. In 2023, CarMax signed on as a WNBA Changemaker, and is focused on driving the league’s overall brand awareness and building the brand of its players. 
• Last year, CarMax enhanced cybersecurity efforts and strengthened governance around the use of AI and Generative AI, including the introduction of its Artificial Intelligence Center of Excellence.

Download the 2024 Responsibility Report here.

For more information, visit www.carmax.com

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. During the fiscal year that ended February 29, 2024, CarMax sold approximately 770,000 used vehicles and 550,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated more than $8 billion in receivables during fiscal 2024, adding to its more than $17 billion portfolio. CarMax has 245 store locations, nearly 30,000 associates, and is proud to have been recognized for 20 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 2024 Responsibility Report. For more information, visit www.carmax.com.

FAQ

What are the key highlights of CarMax's 2024 Responsibility Report?

The 2024 Responsibility Report highlights CarMax’s progress in sustainability, including a rise in renewable electricity usage to 41%, a pilot of an all-electric semi-truck, and ongoing support for community initiatives.

How is CarMax advancing its electric vehicle (EV) expertise?

CarMax has established an internal EV Strategy Advisors Group to coordinate research, operational readiness, and marketing initiatives related to EVs.

What is CarMax's goal for greenhouse gas emissions reduction?

CarMax aims to reduce Scope 1 and Scope 2 greenhouse gas emissions by 50% by 2025 compared to 2018 levels.

What percentage of CarMax's electricity consumption was from renewable sources in 2023?

In 2023, 41% of CarMax’s total electricity consumed was from renewable sources.

How has CarMax been recognized for its sustainability efforts?

CarMax was featured in the Environmental Protection Agency's Green Power Partnership Top 30 Retail list for the first time in 2023.

What community contributions has CarMax made?

Since 2003, CarMax and The CarMax Foundation have collectively donated over $100 million to nonprofit organizations.

What are some challenges related to CarMax's sustainability efforts?

Some challenges include the partial achievement of environmental goals by shifting Scope 3 emissions to Scope 1 and the potential risks associated with relying heavily on renewable electricity.