www.grainger.com

A Letter from Our Chairman & CEO

 

I am pleased to share with you our 2022 Grainger Environmental, Social, and Governance (ESG) Report, which demonstrates our progress and the impact of this important work.

At Grainger, we have a straightforward purpose—We Keep the World Working®. Throughout the pandemic, we’ve kept true to our purpose by serving our customers and supporting our team members, while still making strong strides toward our ESG objectives.

To advance our efforts, last year we reorganized our ESG structure for greater accountability at all levels of the company. Our new structure includes an ESG Leadership Council comprised of Grainger senior leaders and led by me. This Council provides strategic direction for our ESG program to make certain that initiatives are integrated into our business operations and strategy. In addition to this Council, a Steering Committee of leaders and a Working Group of subject matter experts were reorganized to implement our programs.

In 2021, we completed a comprehensive materiality assessment to better align our priorities with those of our stakeholders. This work ensures that our time and resources are effectively focused on the areas that matter most. As a result, we updated our materiality matrix which reflects these shared priorities. In addition, we established four near-term focus areas:

• Customer Sustainability Solutions
• Diversity, Equity and Inclusion
• Energy and Emissions
• Supplier Diversity

These focus areas are bolstered by our continued strong commitment to ethics, safety, supply chain stewardship, and community impact.

We are exploring how to tie achieving our ESG goals to executive compensation. We are piloting ESG metrics and outcomes that will be best suited to include in our incentive programs. We will consider the outcome of this pilot and the engagement it drives as we integrate ESG into future executive compensation program design.

At Grainger, we know we can only achieve our goals with a strong, winning culture. We’re proud to be recognized as one of Fortune’s 100 Best Companies to Work For® in 2022 for fostering a culture that is inclusive, healthy, welcoming, and committed to fulfilling our purpose. To innovate and best serve our customers, we’ve built a culture based on curiosity, collaboration and teamwork where people are valued for who they are and recognized for the work they do.

Thank you to the entire Grainger team, including our team members, partners and suppliers who work each day to strengthen our customers and our communities while making the world a better place. I’m optimistic about what the future holds and look forward to what we’ll achieve together.

D.G. Macpherson
Chairman of the Board and Chief Executive Officer