The AZEK Company - Environmental, Social & Governance - Environmental, Social & Governance

Products. People. Planet.

At AZEK, one simple, core tenet serves as a touchstone for every aspect of how we conduct business: “Always Do the Right Thing.” First, foremost and unfailingly, we do what is right. Not what is cheapest, or fastest, or easiest, but what is right.

And it’s precisely why, as part of our commitment to Environmental, Social and Governance (ESG) stewardship, we created an incredibly ambitious sustainability endeavor we call “Full-Circle.” This high-reaching program’s objective? To use 1 billion pounds of recycled material, annually, in the manufacturing of our products by 2026. In other words, to create goods that do good.

Products. People. Planet. These are the three critical waypoints along the arc of the circle, as we seek to revolutionize outdoor living to create a more sustainable future.

We invite you to view our inaugural ESG Report and learn more about our ESG journey and Full-Circle ambitions.

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FULL-CIRCLE ESG Highlights

Recycling

~400mm pounds of waste and scrap diverted from landfills in 2020 through our recycle programs, an increase from ~290mm pounds in 2019
Aspire to use one billion pounds of recycled materials annually by the end of 2026
~99% of scrap generated at Wilmington, OH and Scranton, PA manufacturing facilities is re-used
~80% and ~50% of the content in our TimberTech capped composite and capped polymer decking products, respectively, is recycled material
~54% of extruded materials were from recycled products in 2020, an increase from 44% in 2019, and we expect this to increase in the future
AZEK Pavers are made from approximately 95% recycled material
Our Vycom business sells effectively 100% post-consumer recycled polymer sheet products used in the manufacturing of outdoor furniture

Environmental

TimberTech decking outperforms sustainably harvested treated pine decking on a 100-year total Global Warming Potential basis according to the results of the first ever peer-reviewed Life Cycle Assessment (LCA), which we commissioned in 2020
The majority of our products are recyclable at the end of their useful lives
Over 3 million trees saved in the last twenty years as customers chose our composite decking products over wood
Reducing carbon impact from deforestation of exotic woods
Chicago, IL Headquarters: LEED Certified 2019
Efficient water usage – our facilities in Wilmington, OH and Scranton, PA employ closed-looped water filtration systems that recycle ~97% of water used annually
Polyethylene recycling facility utilizes energy-efficient systems for power, water, heating, cooling and lighting
US Green Building Council – Gold Member

Governance

Board-level oversight of and commitment to sustainability, positive social impact & sound governance practices
33% gender / ethnic diversity on Board of Directors
Pledge Partner of The Board Challenge, committing to increase the diversity representation on our Board; fulfilled this commitment in November 2020 with the addition of Fumbi Chima, AZEK’s first black Board Member
Adoption of Compensation Recovery Policy in the event of a financial restatement
Separate Board Chair and Chief Executive Officer
ESG Steering Committee reports to Board of Directors
ESG is a component of individual performance under our 2021 management annual incentive plan
United Nations Global Compact Signatory

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Environmental, Social & Governance

Products. People. Planet.

FULL-CIRCLE ESG Highlights

Recycling

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