Advance Auto Parts, Inc. (AAP) — ESG & Values Scores

Environment story

Advance Auto Parts discloses minimal environmental metrics and no net-zero target, resulting in substantial deductions. The company operates recycling programs for lead-acid batteries and used motor oil at majority of stores, delegated to third-party vendors; no operational emissions reductions or renewable energy commitments are disclosed. Supply chain and Scope 3 emissions are undisclosed. No verified decarbonization infrastructure investments are evident. Environmental governance appears limited to regulatory compliance with battery/oil recycling laws rather than proactive climate strategy.

Criticisms on file

No disclosed Scope 1, 2, or 3 emissions; no net-zero target; no renewable energy commitments
Source: SEC 10-K 000119312526051305, Item 1. Business & Item 1A. Risk Factors
Potential environmental liability from past property ownership/operations; Company notes it may be liable for hazardous substance cleanup under environmental laws
Source: SEC 10-K 000119312526051305, Item 1. Business, 'Environmental and Other Regulatory Matters'

Disclosed initiatives

Lead-acid Battery and Used Oil Recycling Programs

Company provides collection and recycling programs for used lead-acid batteries, used motor oil and other recyclable items at majority of stores. Third-party vendors handle removal, disposal and compliance with applicable laws.

Operational waste diversion; vendor-managed liability mitigation.

Social story

Advance Auto Parts employs approximately 54,007 workers (28,274 full-time, 25,733 part-time) with 87.4% in store-level operations. Union representation is minimal at 1.7%, indicating low labor organizing but also potential wage/benefits vulnerability. CEO-to-worker pay ratio is not disclosed. Leadership diversity metrics are not disclosed in the 10-K. The company states it offers competitive compensation, benefits and career development, but provides no quantitative validation. Supply-chain labor standards are referenced in risk disclosures (no human trafficking, forced labor, child labor) but no third-party audit or verification is mentioned. Recent 2024 Restructuring Plan involved ~700 store and independent location closures with workforce reductions, raising turnover and severance cost concerns.

Criticisms on file

2024 Restructuring Plan: closure of ~700 stores and independent locations with associated workforce reductions and severance costs
Source: SEC 10-K 000119312526051305, Item 1. Business & Risk Factors
No disclosed CEO-to-median-worker pay ratio; no disclosed diversity metrics (gender, race/ethnicity) for workforce or leadership
Source: SEC 10-K 000119312526051305, Item 7. Human Capital section lacks quantitative disclosure
Securities class action and derivative litigation filed following significant stock price decline
Source: SEC 10-K 000119312526051305, Item 1A. Risk Factors & Item 3. Legal Proceedings

Disclosed initiatives

Competitive Compensation and Benefits Programs

Company states it offers competitive compensation, comprehensive benefits, and opportunities for career growth and development as part of human capital management strategy.

Intended to attract and retain talent; no quantitative outcomes disclosed.
Supplier Labor Standards

Company explicitly states it does not condone human trafficking, forced labor, child labor, harassment or abuse and expects suppliers to operate within the same principles and legal requirements.

Stated policy; no third-party audit, verification, or enforcement mechanism disclosed.

Governance story

Board independence percentage is not disclosed in the 10-K; share structure is single-class common stock (no dual-class voting rights disclosed). Lobbying expenditures and PAC contributions are not disclosed. The company faces active securities class action litigation and derivative shareholder litigation regarding past public disclosures following stock price volatility, indicating governance and disclosure credibility concerns. The company has established cybersecurity governance through a Cyber Steering Committee with CEO and CFO participation, and the Audit Committee receives semi-annual cybersecurity reports. No material cybersecurity incidents reported in past three years. Governance risks identified include restricted covenants in debt instruments, significant indebtedness limiting operational flexibility, and potential conflicts between debt servicing and capital allocation priorities.

Criticisms on file

Active securities class action litigation regarding past public disclosures and derivative shareholder litigation following significant stock price decline
Source: SEC 10-K 000119312526051305, Item 1A. Risk Factors & Item 3. Legal Proceedings
Significant level of indebtedness with restrictive covenants; potential covenant violations could trigger acceleration of all debt
Source: SEC 10-K 000119312526051305, Item 1A. Risk Factors, 'Risks Related to the Company's Common Stock and Financial Condition'
Board independence percentage not disclosed; unable to confirm >75% threshold
Source: SEC 10-K 000119312526051305; no governance section with board composition details provided in submitted document
Lobbying expenditures and PAC contributions not disclosed in 10-K
Source: SEC 10-K 000119312526051305; no political engagement section provided

Disclosed initiatives

Cyber Steering Committee and Risk Management Framework

Company has established Cyber Steering Committee chaired by CISO, including CEO, CFO, General Counsel, CTO and IT leadership. Cyber risk is component of enterprise risk management framework. Audit Committee reviews cybersecurity risk semi-annually; Board reviews annually. External NIST assessment conducted at least every three years.

Documented governance structure for cybersecurity oversight; no material incidents reported in past three years.
Information Security Controls and Third-Party Risk Management

Company uses variety of tools, controls, technologies to prevent data loss, theft, misuse. Risk-based approach to third-party provider evaluation, including contractual risk apportionment, architectural review, penetration testing and threat intelligence.

Risk mitigation processes in place; effectiveness dependent on execution and vendor compliance.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Advance Auto Parts, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Advance Auto Parts, Inc. in the app for interactive charts and portfolio building.

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