Fastenal Company (FAST)

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

• Carbon Disclosure Project (CDP) Participation

  Achieved B score in 2025, indicating strong environmental management and implementation of effective practices to support responsible environmental stewardship.

  Third-party validation of emissions inventory and environmental controls
• Watershed Partnership for GHG Emissions Inventory

  Partnered with Watershed, an end-to-end platform with audited methodologies and approximately 60,000 emissions factors from 150 countries, to standardize and transform business data into rigorous sustainability data.

  Standardized, comprehensive emissions tracking infrastructure
• Internal Environmental Sustainability Training

  Launched in 2022; as of 2025, over 23,000 training events completed by employees across the organization.

  Employee engagement and awareness in environmental stewardship
• ISO Certifications

  Achieved third-party re-certification for three ISO standards in 2025.

  Verified compliance with international environmental management standards
• Supply Chain Sustainability Solutions

  Core business model emphasizes reducing total resource consumption in customer supply chains through environmental solutions featuring products, services, and systems.

  Indirect environmental impact reduction across customer operations

Criticisms on file

• EEO-1 Report Disclosure Declined: Shareholder proposal (NYC Pension Funds) requested mandatory public disclosure of Consolidated EEO-1 Report (workforce breakdown by race, ethnicity, gender). Board took no position on proposal, declined to commit to disclosure policy.

  Source: FAST_proxy.txt - Proposal #6 and Company Response
• Regression in Diversity Data Transparency: 2024 ESG Report disclosed aggregate 'minority' employee percentages by gender in specific job categories; 2025 ESG Report no longer includes this data, reducing public transparency on workforce representation.

  Source: FAST_proxy.txt - Proposal #6 Supporting Statement

Disclosed initiatives

• Promotion-from-Within Culture

  Company explicitly emphasizes 'promote from within' philosophy. Board member Reyne K. Wisecup's career trajectory (hired 1988, advanced through multiple HR roles) is cited as exemplifying this approach.

  Internal career pathway development and employee retention
• Decentralized Employee Empowerment

  Company credit success to 'people centered' decentralized structure relying on entrepreneurial motivation and creative energy of employees.

  Employee autonomy and engagement in decision-making
• Board Oversight of Human Capital Management

  ESG matters, including human-capital management, appear on board meeting agenda minimum twice per year. Nominating and Corporate Governance Committee has oversight of ESG initiatives.

  Governance-level attention to workforce and social matters
• 2025 Headcount Growth

  Total FTE increased by 644 (3.1% growth) with selling personnel up 2.8%, distribution/transportation up 2.0%, and organizational support up 6.9%.

  Expansion of workforce capacity to support growth initiatives
• Diversity, Equity, and Inclusion Commitment

  Company website states commitment to foster culture of DEI and improve communities. Board-level governance includes ESG oversight.

  Stated organizational commitment to DEI principles

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

• Board Independence & Leadership Structure

  9 of 11 directors (82%) are independent. Board chair is independent. CEO and chair roles separated. All three standing committees composed exclusively of independent directors.

  Enhanced oversight and reduced conflicts of interest
• ISS Prime Rating Status

  Company achieved Prime Rating Status with Institutional Shareholder Services (ISS) Corporate for ESG. Companies awarded Prime if overall ESG Corporate Rating meets or exceeds industry-specific Prime threshold.

  Third-party validation of governance practices
• Forbes Most Trusted Companies Debut

  Fastenal debuted on Forbes' list of Most Trusted Companies in America in 2025, evaluated on Employee Sentiment, Customer Sentiment, Financial Performance, Business Trajectory, Media Sentiment, and Workforce Stability.

  External recognition of trust and governance practices
• Stock Ownership Guidelines

  Company maintains stock ownership guidelines requiring each non-employee director and each officer subject to Section 16 reporting to achieve specific equity ownership levels.

  Alignment of director/officer interests with shareholder interests
• Board Diversity & Age Policy

  Board seeks diverse perspectives, backgrounds, and experience without regard to race, color, religion, sex, ancestry, national origin, sexual orientation, gender, or disability. Age-limitation policy provides maximum age 72 (with waiver provisions).

  Board refreshment and diversity of viewpoints
• Annual Board & Committee Self-Evaluations

  Board and committees complete annual self-evaluations to assess performance and identify improvement opportunities. Nominating and Corporate Governance Committee reviews board composition, skills, and succession planning annually.

  Continuous improvement and accountability
• CEO Succession Planning

  On December 19, 2025, CEO Daniel L. Florness announced step-down effective CEO Transition Date. Board appointed Max Watts (current president and chief sales officer) as next CEO. Chair role retained by Scott A. Satterlee.

  Orderly leadership transition and continuity
• Shareholder Meeting Majority Voting

  Full slate of director nominees submitted annually and elected using majority voting standard (each director must receive more votes for than against).

  Accountability to shareholders in director elections