LKQ ECP- Sustainability Newsletter - 17052023

Sustainability Update

Edition: May 2023

Welcome to issue two of our sustainability newsletter. In this issue we delve a little deeper into the many environmental initiatives we’re implementing to support our journey to net zero and reaching our sustainability goals. This includes interviews with Elaine Duffy, our environment and sustainability manager who talks about achieving ISO 14001 for T1 and T2; regional manager, Stephen Rich who shares an update on recycling across the Branch network; and Lee Berridge, head of technical and training, alongside Jodie Mullard, head of channel, at LKQ Bodyshop who give their insight on sustainability in the bodyshop. In our people section we introduce our new mentorship programme and share stories from some of our colleagues already benefitting from the initiative. As always, our Community section is particularly action- packed, with updates on our newCommunity Fund for branches, a recent donation to inspire primary school children in sustainable automotive engineering and a visit from the Sisters of the Congregation of St Joseph as part of our ongoing support for Ukraine. Welcome to our sustainability newsletter

Sustainability Update

Edition: May 2023

Planet

Q&A: Meet Elaine Duffy, our environment and sustainability manager

Elaine Duffy joined the business in November last year as our environment and sustainability manager. She brings more than 20 years’ experience in improving business’ green credentials and here she explains how we at LKQ Euro Car Parts are adapting the business to reduce our impact on the environment. Q: Why is environmental sustainability such a key goal for so many businesses today? A: Attitudes towards green issues among business leaders have really changed in the past decade, and good performance is being viewed less as an obligation and more as a way to drive companies forward and meet the expectations of customers and investors. Since starting at LKQ Euro Car Parts I’ve been really encouraged, because the board and leadership team are very engaged with improving sustainability, and a lot of projects are already underway. For example, the upgrades to the vehicle fleet to reduce reliance on diesel which has delivered significant fuel efficiency and CO2 emissions gains. We’re also making great progress in areas like upgrading lighting systems and installing solar PV in our facilities. Q: What are your main goals when it comes to making us a greener business? A: A major goal for me is to achieve ISO 14001 Environmental Management certification for our T1 and T2 facilities, and we’re currently going through the process of securing those. The certification is all about putting in place the processes to ensure that good environmental practices are always followed, in every part of the business, and we’re starting with our biggest facilities because that’s where the biggest challenge lies.

Elaine Duffy

Q: So what does the certification process involve? A: The first stage is a gap analysis with BSI (British Standards Institution), the independent auditor we’re working with, in June. This will show us any areas that still need to be addressed ahead of the documentation audit in August. The final stage will be an on-site audit in December to confirm that the processes detailed in the documentation are being carried out on the ground. Once the certification is in place it’s valid for three years, although there will be smaller audits each year, just to check we’re maintaining the processes. Q: What are your aspirations for the future when it comes to improving sustainability at LKQ Euro Car Parts? A: Once we have ISO 14001 in place at T1 and T2, we will look to extend this certification to our branches and RFCs (Regional Fulfilment Centres) across the UK. This should be a straightforward step as processes are the same across the network. Ultimately, it’s about driving engagement across the business by encouraging colleagues everywhere to do their bit to push things forward, and putting the structures in place to allow them to do it. I’m confident that together we can build a more efficient business that’s better for the environment.

Sustainability Update

Edition: May 2023

Planet

Shining a light on energy saving

• We’re updating the lighting system at T2 to make efficiency and emissions gains • Other projects on the horizon to cut energy bills and CO2 include installing solar panels on T2 • Read on for tips on how you and your colleagues can help We’re always on the lookout for improvements we can make that will help save energy and we’re currently working on two upgrades at T2 that will make a big difference. The first is that we’re replacing the existing LED lighting system, which has been in place for seven years, with a state-of-the-art installation that uses 20 per cent less energy at the same level of brightness. At the same time, we’re also going to trial smart sensors that will allow the system to work in harmony with the natural light entering the space by dimming when not needed. From a financial perspective, this upgrade will pay for itself in reduced energy bills in just over three years. But it will also cut 62 tonnes of CO2 emissions per year from day one. Another project on the horizon is that we’ll be installing solar panels at T2 to make efficiency and emissions gains. We’re going to install photovoltaic (PV) cells with the capacity to generate 3 megawatts of electricity. When this plan was first proposed, there was already a strong business case for it, with return- on-investment predicted to take just 5 years and the hardware expected to continuing delivering renewable energy for a further 20 years after that. However, the increasing cost of energy means we now calculate that the panels will break even financially in just three years. At the same time, they will slash our carbon emissions by almost 500

Sustainability Update

Edition: May 2023

tonnes per year. How you can help

you leave.

Equipment Office and work equipment can be a big energy drain. If a piece of equipment isn’t being used, it should be switched off. Here are a few things to look out for: • Are computers switched off when not being used? Leaving machines powered up overnight wastes power. • Are kettles only used to heat the water that’s needed? Boiling 2 litres of water to make one cup of tea uses a lot of energy unnecessarily. • Think before you print – only printing essential documents not only saves on paper waste, it can also save energy too. Ultimately, it’s about thinking differently. If you see a light or computer that doesn’t need to be switched on, do what you’d do at home and switch it off. They might feel like small actions individually, but together we know that they can add up to a big change. We’d love to hear if there’s anything else you’re doing or any ideas you have to save energy, share them with us at: lkq-ecp-sustainability@eurocarparts.com

If you’re looking for ways that you and your team can save energy, here are some tips, sorted into three key areas: heating, lighting and equipment. Heating Heating is usually the most significant energy cost in a workplace, accounting for up to 40% of energy use. Preventing heat loss by using the thermostat correctly and eliminating draughts can make a big difference, which are things we’ve been working on. You can help by: • Ensuring radiators and heaters are free from obstructions • Keeping windows closed if the heating is on Lighting The longer lights are left on, the more energy will be used. We shouldn’t be lighting meeting rooms, storage areas and corridors when we don’t need to – it’s one of the reasons we’ve installed sensors and timers wherever possible across our facilities. If there are any areas where you need to turn lights on and off, remember to always turn them off when

Sustainability Update

Edition: May 2023

Help us reduce, re-use and recycle across the branch network Planet

• March 23 was our best month yet for recycling in our branch network, but some branches are doing better than others, with some still showing zero waste recycled • With your help, we can keep cutting the waste we send to landfill • It’s vital that we avoid putting black bin bags in recycling bins, as that causes the whole load to be treated as general waste Since March 2022, we’ve been keeping a close eye on the proportion of waste we recycle from across our network. The results show that our efforts are making a difference, but that there is still a lot of room for improvement. Since we started measuring, an average of 18% of waste has been recycled from across a network. This climbed to 22% in March – our best month yet – showing that with a concerted effort there is a lot more we can do. And it’s not just about reducing environmentally damaging waste – there is a significant financial incentive too. Our waste disposal partner Biffa charges less than half the rate to collect dry mixed recycling (DMR) compared with general waste that goes to landfill. However, to receive these benefits, and to maximise the amount of waste we are recycling, we all need to take care about what we are placing in the recycling bins. That’s because anything non-recyclable that goes in a DMR bin risks the whole thing being sent to landfill instead of recycled. That includes black bin bags, even if they’re full of recyclables. Regional manager, Stephen Rich, who is heading the recycling initiative, said: “We’re seeing some great efforts being made to recycle across the network, and 14 of our branches have averaged around 50% recycling since March 22. However, we’ve also still got branches that haven’t recorded any recycling.

“My goal is for every branch to get to 50%, something we’ll easily be able to do if everyone engages with the drive and thinks about where they’re putting waste. “We’re most of the way there. If I was comparing it to a plane journey, the project has appeared on the departure board, taxied to the runway and taken off. Now we just need colleagues help to land it and reap the benefits.” Top tips • Don’t use bin liners for waste in the recycling bins – all black bin bags must go in general waste. • Give any cans and bottles a rinse before you put them in the recycling • Any questions at all, email lkq-ecp-sustainability@eurocarparts.com

Sustainability Update

Edition: May 2023

Planet

Leading sustainability in the bodyshop division

Operating sustainably isn’t just a priority for our business, it’s just as important to our customers too. And that’s why we’re helping to educate and guide bodyshops as they undertake their own sustainability journeys. Here Lee Berridge, head of technical and training, and Jodie Mullard, Head of Channel, both at LKQ Bodyshop, share their view on why this support is making a vital difference, as they introduce the new LKQ Academy course for bodyshops. Lee said: “Operating more sustainably is a huge challenge for bodyshops right now. At present there’s a lot of misunderstanding, poor guidance and lack of clarity about how to make the right changes. “Additionally, like all businesses, bodyshops are facing a difficult climate with rising energy and business costs. However, what many bodyshops don’t realise is that making even small sustainable choices often don’t require big investments and can lead to cutting costs as well as carbon emissions, and this is one of the key messages we’re focusing on. “Operating sustainably isn’t just the right thing to do for the planet; it makes good business sense.” Jodie agreed: “Bodyshops absolutely need support on making the right changes. Much of the approach so far has focused on gaining carbon neutrality with the primary focus on offsetting – for example planting trees in other parts of the world to offset emissions. And while this goes some way to acting more sustainably, the truth is there are so many things that bodyshops can do on-site to reduce their emissions and help their business operate more cost effectively. “We’re here to help bodyshops identify and implement those changes. Not everything is a huge transformation; often it’s lots of smaller steps that add up to have a big impact – but it can be easy to forget that when you’re facing such a complex challenge. “It’s one of the reasons we’ve launched our industry- first course, ‘Introduction to Sustainability in the bodyshop’ through LKQ Academy. With this course, not only can we train our key account customers, we can also support independent bodyshops, whatever their size.”

Jodie Mullard

Lee Berridge

‘Sustainability in the bodyshop’ focuses change around three core pillars: Product, Process and Equipment at every stage of the repair. Drawing on real life examples to address challenges facing our industry around sustainability, the course covers themes such as waste, CO2, VOCs, plastic and replacement parts. Jodie continued: “One of the fantastic things about this course is that we make it personal to each bodyshop. We ask them to share their own data on everything from utility costs, priming processes, and paint cups to equipment and waste management. After the training session we analyse each area across the end-to-end repair process to come up with a clear, tailored action plan they can implement at their site, with support from our technical and account management teams. “We focus on education, hands on, practical guidance and we demonstrate the outcomes in numbers to help build credible, impactful business cases.” Lee concluded: “We’re incredibly proud of how we’ve developed this course; no one else in the industry offers anything like it. We hope that this approach will encourage many more bodyshops to make truly sustainable changes that also help their businesses operate and grow profitably.” Keep an eye out for our external campaign and customer video testimonials, as well as ‘lunch and learns’ where you can get a taster of our LKQ Bodyshop sustainability course.

Sustainability Update

Edition: May 2023

Introducing our new mentorship programme People

• Led by PAVE (People Adding Value Everywhere), our newmentorship programme offers more opportunities to colleagues to support each other and their career development • Hear from colleagues that have already benefitted from our mentorship initiative • Interested in becoming a mentor or mentee? Find out how you can get involved in the programme As part of our approach to equity, diversity and inclusion (ED&I), we want to foster a workplace where everyone can thrive and bring their full selves to work. To help us achieve this, we recently launched a newmentorship programme which aims to provide colleagues with more opportunities to learn from each other and advance in their roles within the business.

We already have a number of colleagues participating in the programme, and we wanted to share some of their experiences here. New to the automotive industry, Senior Communications Manager, Tina Parker, is mentored by someone who knows it inside out, Market Logistics Director, Tony Shearer. Tina shared: “When I joined LKQ Euro Car Parts six months ago, I was brand new to the automotive industry. Having Tony as my mentor has been fantastic as I’ve been able to look to his wealth of knowledge to understand our business and the wider sector.” Tony commented: “It’s been great to mentor Tina and share my own experiences to help her learn more about the business and automotive industry. Mentoring also helps me keep my own thinking fresh by hearing different perspectives!” Director of Commercial Finance, Mel Lowe, has been mentoring Executive Assistant, Jess Harris, and during their time together, they’ve focused on building their self-confidence and supporting one another to succeed. Mel said: “Being a mentor is a great opportunity to help others grow in a variety of ways. I’ve loved seeing Jess develop whilst I’ve been her mentor and it’s been a truly humbling experience for me. Not only has it broadened my way of thinking, it’s given me the chance to look back on my own experience and I’m super proud of how far Jess has come.” Jess shared: “Having Mel as my mentor has helped me to have the confidence to try new things, both within LKQ Euro Car Parts and my personal life. The mentoring programme has helped me to identify my skill gaps and Mel has been able to support me to further my knowledge and push my development. I’ve found it to be invaluable to my career and look forward to learning even more this year.” If you’d like to get involved in the mentorship programme, get in touch via: Central.Communications@eurocarparts.com.

Tony and Tina

Jess and Mel

The mentorship programme is led by our PAVE network and plays an important role in providing peer support and creating more opportunities for professional development. Whether a colleague has been in the business a long time, or is new to our automotive industry, our mentorship programme provides opportunities to develop new skills, increase self-confidence, gain access to an extra support network and learn from new people across the business.

Sustainability Update

Edition: May 2023

Communities

Giving back to our communities at home and abroad

Supporting Bolton’s next generation of engineers In partnership with Bolton-based Whitecroft Garage we are getting local primary school children revved up about automotive engineering through support for an eco-friendly electric vehicle (EV) kit car project. Our combined support has seen pupils at Holy Infant and St Anthony R.C Primary School in Bolton band together to build the IET Formula Goblin G2 kit car in partnership with Greenpower Education Trust. Year 5 pupils at the school designed and built the car during after-school workshops and will be putting it through its paces in a series of tests at a regional race day organised by Greenpower. Not only has the project helped students develop their skills in science, technology, engineering and mathematics (STEM), it’s also given them the chance to be creative – designing and developing the bodywork to truly make the vehicle their own. As the battery-powered car can also be disassembled and rebuilt – it can go on educating children into the future! Applications still open for the 2023 Joseph M. Holsten scholarship The Joseph Holsten scholarship is designed to support the education of the children of LKQ employees. It’s an exciting initiative that demonstrates our commitment to investing in the future of you, our colleagues, and your families. We believe that education is key to success, and we’re honoured to have the opportunity to play a role in helping shape future generations. We can’t wait to see the positive impact it will have. The deadline to apply is May 31, 2023 3:00 pm CT or until 300 applications are received. Apply here now.

• £500 per branch available to support local causes through our new community fund • Donation to Bolton primary school inspires interest in automotive engineering and EVs • Sisters of the Congregation of St Joseph visit T2 as we demonstrate continued support for those affected by the conflict in Ukraine We’re committed to making a positive difference in the world, and an important part of that means working to support the communities in which we work and live, as well as those further afield where we can be of help. There’s a lot we do already to support those in need – inside and outside of our industry. And now it’s time to build on this and make a bigger difference at a local level. That’s why we’re proud to have created a new community fund to support causes that matter personally to individuals and teams in our branches across the UK and Ireland. Each branch can apply for up to £500 to go to a cause of their choice, and we encourage you to make use of it. From sports clubs to community groups, each branch can make their own decision on which good cause the money goes towards. We only encourage that it is spent on something that will make a specific difference, such as a new kit or uniform, new equipment or a trip or experience. For more detail on the community fund and how to apply for it get in touch with your local RM. And remember to let the communications team know what you’re planning so they can support on sharing your story inside and outside of our business: central.communications@eurocarparts.com

Sustainability Update

Edition: May 2023

Communities

Welcoming the Sisters from Ukraine to T2 As I’m sure many of you know, we’ve had a sustained company-wide fundraising drive to help provide continued support for those affected by the war in Ukraine. Spearheaded by Dawid Kozlowski, an inventory analyst at our Tamworth headquarters and Richard Morgan, our Chief Supply Chain Officer, the response to these efforts has been phenomenal. Through everyone’s hard work, we have been able to donate an incredible seven ambulances to the relief effort and provide support for key events across the year including Easter and summer camps. Now we’ve had the honour of welcoming nuns from the Congregation of St Joseph, who run nurseries and a care home in Ukraine, and were the recipients of one of those ambulances to T2. The day began with introductions from the team, followed by a tour of T2, before we presented them with a cheque for £5,000, to demonstrate our continued support for the Sisters and the children in their care.

Sustainability Update

Edition: May 2023

Get in touch

If you have a story or an achievement you’d like to share in this newsletter, let us know by emailing Central.Communications@eurocarparts.com.

And don’t forget we have lots of opportunities for you to get involved, including becoming a Sustainability Ambassador. If you’re interested in becoming one of our Sustainability Ambassadors, simply drop an email to lkq-ecp-sustainability@eurocarparts.com to find out more.