Living Green at O'Reilly Auto Parts

We LIVE GREEN each day by helping our customers keep their vehicles running as efficiently as possible, improving their gas mileage, and by offering remanufactured parts and recycling options. We also acknowledge the importance of sustainability in our operations, and employ a variety of strategies that reduce our impact on the environment. We are committed to minimizing emissions in our operations, and ensuring that we are utilizing sustainable practices to achieve our goal of reaching net-zero greenhouse gas emissions by 2050.

O’Reilly has a long history of working to improve the energy efficiency of its stores, distribution centers, and corporate offices to reduce overall operating costs. These same strategies also reduce the carbon emissions associated with our operations. Our cross-functional energy abatement committee works collaboratively to build upon energy savings initiatives already in motion and identify additional innovations as we move down the road towards net-zero. We employ teamwork to ramp up our abatement efforts, while ensuring we make the best decisions for the Company, our team members, and the communities we serve. We are working hard to expand the use of existing energy saving initiatives, and explore other abatement measures to reduce our greenhouse gas emissions, while recognizing our journey to net-zero by 2050 will also be reliant on advances in technology.

We offer free battery and fluid recycling to help our customers complete repairs while practicing responsible waste management. This includes requiring core charges for remanufactured parts, as well as encouraging customers to recycle their used motor oil and other fluids with us. We also recycle used car, truck, marine, and motorcycle batteries at no charge. Properly recycling these materials diverts them from landfills and other means of disposal. O'Reilly has developed closed-loop recycling programs in our distribution centers and stores to divert millions of pounds of used auto parts, as well as millions of gallons of automotive fluids, from landfills – ensuring they safely reach facilities that will reprocess and reuse them.

Product Circularity and Remanufacturing

Remanufacturing is an inherently sustainable process that has been a cornerstone of the automotive aftermarket industry for decades. The circular process minimizes waste and maximizes resource efficiency by extending the useful life of key vehicle parts. This involves manufacturers designing products with circularity in mind, implementing closed-loop recycling processes, and bringing new life to products. O’Reilly plays a key role in this piece of the circular economy, which seeks to reduce the environmental impact of the automotive industry to ensure a more sustainable future.

Every year, O’Reilly Auto Parts returns millions of auto parts to suppliers, and they are able to recover and reuse material including copper, aluminum, steel, and cast iron to produce high-quality remanufactured auto parts. We, in turn, sell millions of remanufactured auto parts every year, completing the circular cycle.

Remanufacturing Categories

O’Reilly believes that investing in renewable energy continues to be in the best interest of the Company, and our planet. The greening of the grid is an important cornerstone for achieving the Paris Agreement’s 1.5°C goal, and we are proud that our investments in renewable energy during the last several years are helping to bring additional clean energy to the grid. Over the years, O’Reilly has made significant investments in solar and wind farms. These investments generate clean energy for the communities they serve and provide the Company with a solid financial return. Since 2018, O’Reilly has invested more than $560 million in renewable energy projects.

Since our inaugural 2018 Sustainability, Social, and Governance Report, we have continued to engage with our stakeholders, solicit feedback, establish new priorities, increase transparency, and improve disclosures. While we are pleased with the progress we have made, we understand there is more work to be done, and we remain committed to continual improvement. We will update this report annually to keep our customers, shareholders, and team members aware of our ongoing efforts.