Why Sustainability Reports Matter

Sustainability reporting has become a popular way for companies to measure annual performance goals and meet standards often set on a global basis. In the pages ahead, we take a high-level look at sustainability reports from three RV industry companies: THOR Industries, Patrick Industries and REV Group.

It’s important to note that each company has different measurements it includes in its reporting. In fact, this is common in businesses worldwide. A Harvard Business Review article from 2022 found that with a variety of reporting options available, companies can choose a narrow scope on which to report (focusing on greenhouse gas emissions, for example), or a broader range such as goals associated with Environmental, Social and Governance (ESG) or the United Nations Sustainable Development Goals.

The three companies on the following pages chose to focus on a wider variety of topics in addition to environmental aspects. Those topics include employee safety, diversity and inclusion, philanthropy and more.

The United States Environmental Protection Agency defines “sustainable manufacturing” as: “the creation of manufactured products through economically sounds processes that minimize negative environmental impacts while conserving energy and natural resources.” The agency goes on to say that “sustainable manufacturing enhances employee, community and product safety,” and cites the following as reasons why companies are pursuing sustainability:

• • increase operational efficiency by reducing costs and waste
  • respond to or reach new customers and increase competitive advantage
  • protect and strengthen brand and reputation while building public trust
  • build long-term business viability and success
  • respond to regulatory constraints and opportunities

The companies featured here – as well as many others in the RV industry – see the value in these reports as a way to communicate with customers and investors what is most important.

As found in a Deloitte survey, the “2021 Climate Check – Business’ views on environmental sustainability,” almost half of the 750 executives surveyed said their environmental sustainability initiatives measurably boosted their corporate financial performance.

Get to know some of these measurements, examples of success and learn why a sustainability report can broaden your understanding of who you do business with.

THOR Industries

Founded in 1980
Headquarters: Elkhart, Indiana
$11.2 billion net sales
Approximately 24,900 employees
*Sustainability report based on fiscal year ending July 31, 2023

In 2023, THOR provided its first-ever disclosures in accordance with the task force on Climate-Related Financial Disclosures, the Sustainability Accounting Standards Board metrics, and the Global Reporting Initiative standards.

THOR also embarked on comprehensive screening of Scope 3 greenhouse gas emissions, and continues its goal to become carbon net-neutral by 2050 with a target of 50% reduction in Scope 1 and Scope 2 GHG (greenhouse gas) emissions by 2030.

In 2023, THOR’s sustainability reporting expanded to include Scope 3 emissions, and in October 2023, the company’s targets were approved by the Science Based Targets initiative.

THOR has aligned its sustainability priorities with United Nations Global Compact’s Sustainable Development Goals with a target of building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation.

Those goals include:

Social

• • To ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
  • To ensure healthy lives and promote well-being for all at all ages.
  • To achieve gender equality and empower all women and girls.

Environmental

• • To take urgent action to combat climate change and its impacts.
  • To ensure availability and sustainable management of water and sanitation for all.

Innovation example from THOR:

F.A. Porsche Concept Travel Trailer – the “garagable” travel trailer has an automatic suspension that allows the chassis height to be adjusted to reduce aerodynamic drag; ideal for internal combustion engine (ICE) tow vehicles and EV (electric vehicles).

Social responsibility examples include:

Family Bonding Program – an expanded paid parental leave and financial assistance program for birth or adoption.

Safety Gemba Walks – occurring monthly, the walks take place with the safety committee and an on-site industrial athletic trainer and focuses on work processes and ergonomics.

Carbon & Climate examples include:

Solar Power – solar panels encompass a total of 6.7 acres at U.S. operating companies. Also, several “operating companies generate enough solar power during the summer months to offset electricity usage in winter months.”

Biomass heating at European facilities – burning wood, plants and other organic matter results in generating process heat, building heat and hot water.

Cleer Vision Glass Recycling – scrap glass is sold to a third-party recycler; the operation achieves a 92% recycling rate.

THOR Industries has saved the equivalent of 42 kWh of electricity and prevented the release of 7.5 pounds of air pollutants. The company has a number of committees in place that support its sustainability goals, including:

Environmental, Social, Governance & Nomination Committee (ESGN) – four independent directors who provide direction and oversight of THOR’s sustainability efforts.

Sustainability Committee – senior management and VP of ESG “provides operational leadership among the THOR family of companies, helping our companies identify sustainability-related risks and opportunities, establishing consistent metrics to enable meaningful measurement and coordinating the collection of data to enable consistent reporting.”

Audit committee – four independent directors who focus on key business and operational risks and facilitate identification, measurement, mitigation and reporting of risks.

Compensation Committee – four directors who oversee and approve compensation and incentive plans for members of senior management.

THOR Industries Q&A

With Sandy Rynalski, THOR Industries Vice President Environmental, Social and Governance

RV PRO: Tell me about THOR’s work with the RV Industry Association’s new Sustainability Committee?

Rynalski: Sustainability is essential to the long-term enjoyment of the lifestyle that our industry makes possible. Our industry is full of companies that have embraced environmentally friendly practices well before sustainability became the focus for corporate America that it is today. Whether it’s Scope 1, Scope 2 or Scope 3 greenhouse gas emission reduction programs or even supplier partnering, there is so much that we can benefit from a common understanding of what the obligations, legally and socially, are that RVIA members must embrace. It’s important that the industry work together to meet this challenge.

RV PRO: What drives THOR each year to work on sustainability goals? How and when are those goals set each year?

Rynalski: It’s hard to imagine an industry where sustainability is more crucial than it is to the recreational vehicle industry. At THOR, we’ve not only accepted the challenge to drive to better sustainability practices but have embraced it as part of our strategy. Our strategies are set by our COO, our vice president of sustainability and our Sustainability Committee, which is composed of members from each of our operating companies.

RV PRO: THOR takes it a step further than some companies in the RV industry with its Carbon & Climate questionnaire – how does this help THOR with its goals?

Rynalski: Understanding where we are on our sustainability journey demands that we stay aware of the standards that exist in the area of sustainability. The questionnaire is just one of many steps that we take to constantly assess our position and our progress. Understanding this is essential to meaningful goal setting.

RV PRO: Why is it important for THOR to be named one of Newsweek’s “America’s Most Responsible Companies” and “America’s Most Trustworthy Companies”?

Rynalski: How you do business and the example you set is important to a company like THOR. Our team members, our communities and the environment are all impacted by how we operate as a company. Being mindful of this and driving strategies to positively impact all our constituents is an important element of our long-term success. It’s not only who we are as a company, but it’s also who we want to be, so we are all striving to be better.

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Patrick Industries

Founded in 1959
Headquarters: Elkhart, Indiana
$3.9 billion in revenue
Approximately 10,000 employees
*Sustainability report covers 2023

In 2020, Patrick established its ESG Committee, and now, in its 65th year in business, the company says it is focused on creating a sustainable future built on a skilled, healthy and empowered workforce. The company is prepared to do this with safety protocols, wellness programs, professional development, charitable giving and more, according to Patrick’s sustainability report.

Patrick Industries made headways in its digital journey in 2023, migrating to cloud-based solutions. The company said integrating new technologies has led to the ability to “emphasize collaboration, streamline processes and boost operational efficiency.”

In addition to bolstering teamwork, Patrick reports that the newly adapted technologies have also helped with:

• • Managing projects effectively
  • Providing data for decision-making
  • Engaging with workforce and customers

Creating and maintaining a proactive safety approach was a priority in Patrick’s sustainability reporting. This included:

• • Continuous risk mitigation
  • Regulatory adherence
  • Use of advanced data systems

Patrick listed a number of initiatives and achievements in 2023, including:

• • Expanded Occupational Safety & Health Administration (OSHA) 10-hour training
  • Completed machine guarding audits with 82% corrective actions resolved
  • Introduced safety calendar and OSHA inspection toolkit
  • 3M and Demarco Solutions to streamline respiratory protection compliance
  • 36% reduction in Total Recordable Incident Rate (TRIR) – Sept. ’23 YOY
  • Integrated Donesafe – Environmental, Health & Safety (EHS) data management system to centralize and streamline safety processes

In 2023, Patrick created a Change Management Team and Project Management Office to support employees during technological evolution with guidance, standardize practices and governance, smooth transition and empower employees.

Its 2023 TACTical Training curriculum held more training, involved more business units and offered remote sessions on relationship building and developing emotional intelligence and empathy. From July 2022 to June 2023, there were a total of 6,738 leadership and development training hours.

Well-Being Initiatives

Employee Assistance Plan – offers confidential counseling, work-life balance support, and other financial, health and wellness assistance.

Fitness reimbursement and tobacco-free wellness program

Philanthropy – involved in the Care Camps Foundation, which helps children and families at medically supervised oncology camps; funded 190 grants in 2023; built 10 homes in 2023 with Habitat for Humanity; and supported LoveWay and Wellfield Botanic Gardens, plus more.

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REV Group

Founded in 2006 (under a prior name)
Headquarters: Brookfield, Wisconsin
$2.64 billion in net sales
Approximately 6,700 + employees
*Sustainability report covers 2023

Part of REV Group’s sustainability report includes a Sustainability Materiality Assessment – a focus for the company’s reporting. Those assessments include:

• • Production & Value Creation
  • Employee & Talent Management
  • Local Communities
  • Data Security & Privacy
  • Environmental Footprint
  • Environmental Compliance
  • Occupational Health & Safety

REV states in its 2023 Sustainability Report that “During each step of our ESG journey, we evaluate how we are providing value to our customers and communities through our products, employees and business presence.”

One major focus of the 2023 report was the company’s EHS policies and Excellence Roadmap. REV carries out annual assessments, which are used to establish action plans that are overseen by an Executive EHS Committee.

The company’s EHS Philosophy is as follows:

1. 1. All workplace injuries are preventable, therefore unacceptable to our way of conducting business.
   2. REV Group has the obligation to design our facilities, processes and products to protect our employees, contractors, visitors to company property and other stakeholders.
   3. Every employee and contractor is responsible and accountable for workplace health and safety.
   4. Employees, contractors and visitors are expected to report, eliminate and/or safeguard against all acts and conditions detrimental to the health and safety of any individual and/or the environment.

REV Group Q&A

With Paul Antonneau, REV Group Senior Director – Environmental, Health and Safety

RV PRO: Why is a sustainability report important?

Antonneau: While climate change was the initial catalyst for the increase in Sustainability Reports, the importance of reporting on a company’s social and governance factors has increased dramatically for customers, investors and prospective employees in their decision-making. This nonfinancial monitoring of our performance year on year is an indicator of our long-term success. In addition, how a company treats their employees has greatly increased in value, from working conditions and employee morale to health initiatives and overall culture.

RV PRO: What are the touchpoints you make sure to cover each year?

Antonneau:

• • Metrics including water use, waste management, energy usage and air emissions
  • Product and safety innovations we’ve introduced over the past year
  • Workplace health and safety
  • Employee health and wellbeing
  • Community involvement
  • Training and education
  • Diversity, equity and inclusion
  • Government and ethics
  • Supply chain management
  • Information security

RV PRO: What specifically is of note in the 2023 Sustainability Report?

Antonneau: For REV Recreation Vehicles Segment, we have shared safety innovations in our 2023 report, including Fleetwood and Holiday Rambler’s Advanced Vehicle Safety (AVS) to provide superior protection for the driver and passengers, and Renegade’s driving safety include Lane Keep Assist/Lane Departure Warning, Collision Mitigation. Our Lance Camper facility in Lancaster, California, adopted solar technology in the 1980s and has “smart buildings” that utilize natural light, metered heating and air conditioning office by office and tied into the power grid to participate in power savings programs.

RV PRO: What is REV’s sustainability strategy going forward?

Antonneau: Our sustainability strategy is to improve our operations by adding value back to our business, customers and shareholders by hiring the best people, reducing impacts on the environment and engaging in the right business practices. The REV vision, “To improve the quality of life for our customers and communities,” is foundational to our ESG strategy, providing a principled approach to our measurements, transparency and improvement actions. During each step of our ESG journey, we evaluate how we are providing value to our customers and communities through our products, employees and business presence. We continue to live the REV values, which directly support our efforts in how we execute our ESG strategy and continue to drive our environmental, social and governance commitments.