At Monro, operational excellence and responsible business practices are core to how we drive growth, build strong relationships, and deliver lasting value for our stakeholders. The continued execution of our strategy and objectives is a top priority for senior management and the Board.
In Fiscal 2024, we conducted our first ESG materiality analysis. The process included engagement with investors, the Board, Teammates in field leadership positions, senior leaders and the Company’s ESG Working Group. We also included consideration for our communities and Guests. Please see our ESG report for more information.
Board: The Nominating and Corporate Responsibility Committee has primary oversight responsibility, in addition to the Board receiving an ESG-related update from members of executive management at each regularly-scheduled meeting.
Executive Vice President – Chief Legal Officer: Leads ESG efforts and communicates regular updates to the Board.
Senior Leadership Team: Led by the CEO, group determines ESG strategy and vision, follows progress, and sets goals and targets.
ESG Working Group: A cross-functional group of managers and senior leaders, provides direct oversight of projects and initiatives to inform the work of the Senior Leadership Team.
We aim to carry out a Teammate-first approach to our strategy that helps us attract, develop, and retain a highly engaged workforce. To achieve this, we prioritize safety, fair compensation, workforce development, and inclusion.
During the year, we continued to build our ongoing safety, development, and training initiatives.
We believe that fair wages, linked to productivity and a well-structured compensation model, are fundamental to workforce stability, engagement, and service excellence. Our store compensation plan incentivizes productivity; during the past year, we made progress towards moving Teammates in all Stores to one consistent pay structure to solidify the connection between productivity and payment.
Monro is implementing a more structured approach to Teammate engagement, training, and career progression. A notable example includes our mentorship and learning programs, in which Technicians work closely with mentors who approve development milestones and productivity achivements.
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 business strategy. Building long-term relationships with our Guests directly supports our business.
We are continuing our investment in technology such as our unique 32-point courtesy inspection, conducted through a digital tablet-based system (the “ConfiDrive Performance Review”), which provides a thorough vehicle assessment and recommends vehicle services immediately or when potentially needed in the future.
Another focus has been to reinforce the link between excellent Guest service and Teammate success. Our “Store of the Week” program helps ensure that the dedication of our Teammates doesn’t go unnoticed. Each week, two locations are recognized for their commitment to five-star customer service and top-tier performance. The selection process pulls Guest Google reviews from the past 60 days to highlight stores that leave a lasting impact on Guests.
Monro’s history of community support started with our founders, who established a culture of giving back to the community over sixty years ago. We also view our community approach as part of the broader picture of building enhanced lifetime value for our Guests.
Led by our Community Impact Committee, which consists of senior leaders from five business units, this was the second year of implementing our community strategy, which was created to embrace the unique needs of the diverse communities surrounding our Stores.
We also maintain longstanding partnerships with various non-profit organizations, such as the United Way. United Way helps fulfill its mission of improving lives by mobilizing people and resources to achieve the common good, helping children succeed in school, assisting parents in finding jobs, and helping more people access quality, affordable health care.
Monro recognizes that its operations, as well as the overall lifecycle of the products we use and offer, can have an impact on the environment. We are committed to growing our knowledge, increasing the measurement of our direct and indirect impact, and reporting to stakeholders.
Long-term climate change-related impacts on our business, as well as our impacts on climate change, vary by the geography of store locations, as well as the types of services required by our Guests. To further assess our climate risks and opportunities, in Fiscal Year 2025, we established a cross-functional climate working group to prepare for state-level requirements and global frameworks focused on climate risk disclosures.
Over time, we anticipate that our efforts to limit our impact can decrease costs, create opportunities, and build business resilience. In line with our focus on overall efficiency and costs, our current approach prioritizes the understanding of energy consumption, particularly within stores, and helps ensure we have business continuity plans in place to respond to weather events.
Lighting is the largest source of our energy consumption and an area of focus for Monro. Two years ago, we set a five-year goal to have 100% LED lights in all Stores owned by Monro for at least one year by fiscal year 2028. As of the end of Fiscal 2025, 32% of Stores are fully fitted with LED lighting. Another 27% are partially fitted. Progress is balanced with market considerations, including costs and other business priorities. We have approached the upgrading of lighting when old bulbs burn out, and installing more energy-efficient signage.
