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Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations


Environmental, Social, and Corporate Governance (ESG) 

Corporate Social Responsibility

Corporate social responsibility is central to our business practices, the continuous improvement of our operations, and our relationships with our employees and the communities we call home. We have always focused on delivering strong financial results, and we remain committed to doing so in a way that respects the communities and environments in which we operate. That’s why we strongly consider environmental, social and governance (ESG) factors when making investment and operational decisions. Doing so helps ensure that our business operations have a positive impact on the planet, the people whose lives we touch and our bottom line.  In an effort to better inform our shareholders and the investment community of the numerous activities of our corporate office and dealerships, we have set up a constantly updated website that provides pertinent data on our corporate social responsibility.  Please visit our website at group1auto.com/group1cares, or our web pages on LinkedIn and Facebook for more detailed information on our corporate social responsibility practices, including our charitable and philanthropic efforts in all three of our major markets.   

Workplace

We know that actively supporting the success and well-being of our employees is one of the best investments a company can make in its own sustainability. Workplace satisfaction is key to attracting and retaining the best talent, as well as fostering innovation and growth.  To an increasing number of workers, job satisfaction has much to do with work/life balance, so scheduling is a primary consideration when making their decision to join or stay with a company. In 2017, Group 1 responded by piloting a flexible four-day schedule in four of our stores. Today, more than 50% of our technicians and more than 80% of our advisors are on the four-day schedule. They work the same hours for the same pay, but do so in fewer days — giving them the personal and family time they value. The result is happier employees, as evidenced by a double-digit improvement in retention for both technicians and advisors. 

Community Involvement

Community participation and charitable donations that enrich the communities we serve have always been a priority for Group 1, and are continuously encouraged and supported by our directors and senior management. We are proud of these efforts and our employees from our corporate office, business centers and dealerships around the world who generously give of their time and resources to benefit others.  For more information about Group 1 Automotive's community involvement, please visit group1auto.com/group1cares.

Governance

We are committed to responsible business practices and continuous improvement of our operations and our relationships with our employees and the communities in which we live and work. Our core values - integrity, transparency, professionalism and teamwork - underlie our commitment to conduct our business in ways that are principled and accountable to key stakeholders and the business community. Our Governance & Corporate Responsibility Committee advises the Board on appropriate corporate governance guidelines and practices and assists our Board in implementing those guidelines and practices. Since 2014, we have added five independent directors to our Board, currently three of whom are women. 

Group 1 Foundation

Group 1 Foundation, the 501(c)(3) charitable arm of our business, was formed in 2005 (in response to Hurricane Katrina) to provide guidance, emotional support and financial assistance to Group 1 employees and their immediate families who suffer hardship due to natural disasters, emergencies, extended illness, injury, fire, flood or other special situations beyond their control. Funds are made available through fundraisers and contributions from employees, Board members and vendors, and are distributed to help employees and their families with temporary, critical expenses. In 2017 and 2018, affected employees were provided temporary living and related expenses after Hurricanes Harvey and Michael, and we distributed over $1.1 million among 321 employees. In 2019, we assisted employees in southeast Texas who were affected by Tropical Storm Imelda.  Since 2015, we have disbursed $1.5 million to 428 employees. 

Environment

Our commitment to sound corporate citizenship includes minimizing our impact on the environment, and doing what we can to contribute to a healthier planet. We work to establish sound policies that support environmental and safety issues, including a robust recycling program. We also have an obligation to spend our shareholders’ money wisely. When constructing our various facilities and considering the nature of our operations, we carefully choose projects that are environmentally responsible, economically viable and good for the company’s long-term financial success. In 2019, we focused on energy-saving initiatives such as LED lighting and solar energy.  We’re encouraged by the success of these projects, and are eager to find more opportunities like these where good environmental stewardship improves our long-term financial results.  We are committed to minimizing our environmental impact and continually look for ways to reduce our carbon footprint.  

LED Lighting

Light-emitting diode (LED) lighting is one of the most energy-efficient and cost-effective technologies that we quickly adopted. The advantages are many. LED bulbs last longer, are more durable, are cooler, mercury-free, and offer comparable or better lighting quality than other sources. We began our move to LED lighting in 2013 and are now 99.5% complete with installed LED lighting on the exteriors of our U.S. stores and about 40% complete with interior LED retrofits. Since we first began our LED lighting initiatives, we have saved approximately $13.4 million in energy and $4.1 million in maintenance. A 10-year warranty from our lighting partner on all LED lighting retrofits, including parts and labor, practically eliminates those maintenance costs. We have also received approximately $1.9 million in utility rebates.

In Brazil, we retrofitted our corporate offices and 11 of our 20 dealerships and collision centers with LED lighting upgrades in February 2018. Since then, we estimate that these dealerships have reduced their energy use by 65%. Retrofits on three more dealerships will be completed during 2020. And, by 2021, we plan to have completed construction on brand-new stores for four additional dealerships, all of which will be fitted with LEDs. In the U.K., we have included LED retrofits in construction projects on 40% of our dealerships. Future construction projects will also include LED upgrades.

The environmental impact of this ongoing initiative in the United States is reflected below:

Solar Installations

Solar technology has greatly advanced in recent years, and costs have gone down, making solar energy now an attractive option for sustainable energy. Our original solar installations are more than 10 years old and the results were mixed. In 2019, with the advent of new technologies, we decided to do more. For our pilot project we looked for a few locations with high energy costs, and where solar could provide the majority of the stores’ energy needs. The first of these was Elite Acura in Maple Shade, New Jersey. We installed 778 solar panels that offset 98.84% of the dealership’s energy requirements, resulting in a high rate of return and a payback on our investment of less than four years.  We subsequently rolled out the project to three more locations: Boardwalk Honda in Egg Harbor Township, New Jersey, BMW-MINI Collision Center in Annapolis, Maryland, and Miller Toyota in Anaheim, California.

 

Group 1 Automotive - Solar Installations

Elite Acura

Boardwalk Honda

Miller Toyota of Anaheim

BMW/Mini/Collision Annapolis Campus

 

The environmental impact of our solar panel installations in 2020 is reflected below:

Environment and Safety

The work we do also requires that we recycle automotive waste, including oil, tires, batteries, paints, antifreeze and used parts, wherever possible and, where necessary, dispose of it responsibly.  The positive impact of these initiatives in 2019 is provided below:

  • In our collision shops, we have focused on eliminating our use of solvent-based liquids, moving to water-based paint products.  Solvent-based liquid usage has so far been reduced by 60 percent, from 31,227 liters in 2017 to 12,383 liters in 2019.
     
  • The Company began an enterprise-wide recycling initiative spearheaded through our partnership with Safety-Kleen.  In 2019, we recycled 232,000 tires to licensed recyclers as good stewards of our resources and in our effort to endeavor to protect the planet.
     
  • Through our Safety-Kleen initiative, the Company disposed of 1,000,000 gallons of used oil in 2019.
     
  • Keeping these products out of landfills saves the Company more than $500,000 each year.