Green Policy Statement

Green initiatives stem from an awareness that companies have obligations not just to their investors, but also to their stakeholders, society and the environment. Organizations driven to comply with increasing government regulations and pressure from shareholders are turning to the International Organization for Standardization (ISO) for guidance to implement green programs. Similar to the ISO 9000 standard for quality, the ISO 14000 standard for Environmental Management Systems (EMS) establishes best practices and benchmarks for green initiatives. Organizations concerned with environmental issues may adopt these standards or similar initiatives such as the Global Compact and ask their suppliers and vendors to follow suit.

Fastenal’s green initiatives are a logical evolution of our lean quality Initiatives, which are focused on eliminating waste and redundancy. Our green strategy is designed to continuously improve our green credentials, with smart resource use and optimized distribution routes representing two key areas of focus contributing to overall company efficiency and responsibility. Our green strategy is also aligned with our government contract compliance initiatives.

It is our mission to operate our business in the most environmentally-friendly way possible and help our customers do the same by offering green products and services to meet their needs. This mission comprises the following initiatives:

• Establish a green product offering from key suppliers for national distribution and clearly identify those products in our marketing materials, including our catalogs, brochures, promotions, and website
• Offer recycling programs for lamps, ballasts, mercury-containing devices and batteries ensuring safe disposal
• Partner with lighting specialists to assist in the planning, specification and implementation of retrofit projects
• Capture green consumption data on customer usage reports and cost savings documentation
• Reduce waste by recycling and reusing materials at every opportunity
• Reduce our energy consumption
• Design distribution routes to minimize fuel consumption
• Encourage car pooling and responsible business travel
• Repair rather than throw away whenever possible
• Receive electronic POs, invoices, and other business documents from suppliers and customers whenever possible
• Encourage our customers to sign up for Electronic Invoicing via fax, email, or the web to reduce paper usage

Fastenal Green Product	Green Seal	Design for the Environment	EcoLogo	Carpet and Rug Institute
Greenguard Environmental Institute	Forest Stewardship Council	Sustainable Forestry Initiative	USDA BioPreferred	EPA WaterSense

What We Are Doing Today

• We reuse or recycle most of our incoming packaging materials (cardboard, polystyrene, shredded paper, air bags, etc.), we use composite pallets and totes for shipping, and our corrugated boxes used for repackaging are made from postconsumer recycled content
• We minimize the use of paper Increased use of e-mail greatly reduces the amount of paper used, business records are digitized to minimize hard copy document storage, multifunctional devices (for faxing, printing and photocopying)reduce energy and paper usage.
• We only purchase paper that includes recycled content, and we recycle our office paper
• We encourage staff and visitors to recycle bottles, plastics and aluminum cans by placing recycling bins at strategic points throughout our stores, distribution centers, and offices
• Our consumption of fuel is closely monitored and we take measures to ensure that it is not wasted
• We utilize Global Information Systems to design truck routes that minimize miles traveled
• Our consumption of energy is also closely monitored and we take measures to ensure that it is not wasted
• Our distribution centers have been retrofitted with energy-efficient lighting systems
• Our headquarters have been retrofitted with LED lighting systems
• We recycle our old computers as part of our IT replacement strategy
• We recycle our spent fluorescent lamps, ballasts and batteries
• We have reduced the amount of our landfill waste by finding ways of recycling waste material, either in-house or in conjunction with others who are able to use the material constructively
• We have developed e-learning opportunities for employee training in conjunction with the Fastenal School of Business
• We have installed IP thermostats in many of our branches which regulate energy consumption and contribute to energy efficiency
• We have a HVAC Preventative Maintenance Program in which our HVAC systems are serviced semi-annually to increase the units’ performance and overall efficiency which reduces energy consumption
• Fastenal supports entities with a ban on single-use shopping bags by offering alternatives such as recycled paper bags and reusable bags
• We ensure that any new build/refurbishment plans adhere to current environmental standards and energy conservation requirements

What We Are Doing Moving Forward

• We intend to purchase our electricity from suppliers who re-invest in renewable energy
• Where possible, we will choose to source our materials from suppliers who operate in an environmentally friendly manner and who are geographically local, to reduce delivery miles
• We will choose our vehicles with fuel-efficiency in mind and their fuel consumption will be closely monitored
• Introducing Compressed Natural Gas (CNG) vehicles in select locations to lower fuel costs and emissions
• Fastenal will phase out the use of all single-use plastic shopping bags in our store locations. While offering recycled and reusable bag alternatives, we will work toward reusable shopping bags as the only option.
• We will deliver awareness-raising training programs focused on green issues at Fastenal customer and supplier trade shows as well as the FSB

Our goal is to inspire others to reduce their impact on the environment by our example, and encourage them to do so in innovative ways. The decisions we all make every day will shape the kind of world we live in and future generations inherit.

For more information, contact gogreen@fastenal.com.