At Monro, operational excellence and responsible business practices are core to how we drive growth, build strong relationships, and deliver lasting value. This is our sixth year of reporting on ESG factors as we believe they can be meaningful to our long-term business strategy. In Fiscal 2024 we conducted a materiality assessment to further help identify risks and opportunities. Oversight from the Board and senior leadership, supported by a cross-functional working group, helps drive alignment, execution, and continuous improvement.
Effective governance underpins long-term value creation and stakeholder trust. We focus on strong oversight, ethical business practices, and responsible management of data and technology across our operations.
We uphold high ethical standards through adherence to our Codes of Ethics and by providing Teammates with clear avenues for reporting concerns. These practices support integrity and accountability at all levels of the business.
We maintain strong data privacy and cybersecurity practices designed to safeguard sensitive information and support secure operations. As artificial intelligence (AI) continues to evolve, we are committed to responsible practices that promote innovation while managing risk, supported by policies, training and ongoing oversight.
Part of our commitment to providing Guests with consistent value and mitigating potential risks includes building relationships with trusted top-tier suppliers. In Fiscal 2026 we directly engaged all of our strategic vendor partners and received a strong response rate. An ongoing analysis of responses is underway to identify future opportunities for engagement and improvement.
We maintain a Teammate-first approach to our strategy that helps us attract, develop, and retain a highly engaged workforce. These efforts help enable consistent service delivery for our Guests and long-term career growth for our Teammates.
In Fiscal 2026, we enhanced safety programs, including targeted training for high-frequency injuries such as strains and sprains. We improved ergonomics training, which contributed to a reduction in workplace injuries, and strengthened incident tracking to better identify trends and risks.
We launched a new human resources capital management system and introduced formal performance assessments to improve the overall Teammate experience. We also expanded development opportunities, including mentorship, leadership training, and Monro University learning programs. Our turnover has improved to now be at the lowest level since Fiscal 2021.
We also expanded benefits, improved transparency, and continued investing in Technicians early in their careers to support long-term growth and retention.
At Monro, we recognize that consistently delivering an exceptional Guest experience is not just a service priority – it is a key driver of our overall busines strategy. Building long-term relationships with our Guests directly supports our business.
We expanded the use of our ConfiDrive digital courtesy inspection platform, with 89% of eligible Guests receiving inspections. This tool enhances transparency and helps Guests better understand their vehicle condition.
During Fiscal 2026, we strengthened our Guest support model through our Call Center and Guest Services teams, enhancing the speed and accessibility of customer communications while allowing Technicians to focus on delivering high-quality service. We also leveraged Guest feedback and continued investing in team training to improve service quality and responsiveness. For inquiries involving Guest issues, more than 90% were resolved within five days during the latest fiscal year.
We also enhanced how we capture and use customer feedback through more regular collection, evaluation, and tracking processes.
Monro’s history of support for our communities began with our founders' commitment to giving back, a commitment that the August family still shares with Monro to this day. We also view our community approach as part of the broader picture of building enhanced lifetime value for our Guests.
Our Community Impact Committee oversees our strategy, which includes partnerships with organizations such as United Way and Feeding America. Through initiatives like the 'Drive to Give' program, we support food security and local community needs.
Teammates actively volunteer and contribute their time and expertise to organizations such as the YMCA and Big Brothers Big Sisters.
We also support youth education and workforce development through partnerships like Junior Achievement, helping students build financial literacy and explore career opportunities.
Monro acknowledges that our automotive repair retail stores and the overall life-cycle of parts used to perform our services can impact the environment. Our approach focuses on measuring emissions, improving operations, and preparing for evolving climate requirements.
In Fiscal 2026, we measured Scope 1 and Scope 2 emissions for the first time and conducted a TCFD-aligned climate analysis, led by our Climate Working Group, to better understand climate-related risks and opportunities. This work supports our preparedness for evolving regulatory requirements and strengthens our long-term environmental strategy.
Energy efficiency remains a key focus, with 35% of Stores fully fitted with LED lighting and continued progress toward our goal of 100% by Fiscal 2028. We also continue to evaluate and implement operational improvements that enhance efficiency, reduce costs, and support a more resilient Store footprint.
We maintain responsible waste management and recycling practices as part of our operations, while prioritizing initiatives that improve overall resource efficiency and support long-term environmental performance.
