


I'm excited to share with you our inaugural Environmental, Social and Governance ("ESG") Report. In 2021, we established a cross-disciplinary ESG Task Force to lead our ESG efforts. The ESG Task Force not only gathers data about previous and ongoing ESG initiatives across our business, but also continues its work by charting ESG objectives for the Company moving forward. The creation of this Report and the initiatives included, reflect the universal commitment of the Global Industrial Board of Directors, executive team, and our associates, to our corporate mission of responsible stewardship.
We believe that the items contained in this Report underscore the importance we place on ESG principles, and communicate a message to all of our stakeholders, internal and external, that sustainability, diversity, and inclusion are among our highest priorities as we continue to advance our business objectives. We are proud of Global Industrial’s accomplishments in corporate stewardship to date, and are committed to advancing our ESG journey. We look forward to keeping you updated on our progress.
Sincerly,
Barry Litwin
Global Industrial has earned several awards from Comparably, a leading corporate awards platform for employers.
Global Industrial Company
Global Industrial Company
Global Industrial Company
Global Industrial Company
Global Industrial Company
Global Industrial Company (NYSE: GIC), through its operating subsidiaries, is a value-added industrial distributor of industrial and maintenance, repair, and operations (“MRO”) products in North America, going to market through a system of branded e-commerce websites and relationship marketers.
We started in 1949 as a small material handling company, and we have grown to be an industry leader with over one million products in 21 industrial and commercial categories. We market our products primarily to private and public sector customers, which include for-profit businesses, state, local, and private educational institutions and government entities, including federal, state, and local municipalities. For more information on Global Industrial, visit www.globalindustrial.com.
Our mission of Accelerating the Customer Experience (“ACE”) guides our actions across the business, and specifically in our customer end-to-end purchase, service, and delivery experience. Our ACE strategy at its core focuses on the building of customer loyalty and trust by addressing unique customer needs through a responsive and tailored sales, product, and service experience. We build customer loyalty and trust through personalized and high-touch customer interactions that often feature strong one-to-one relationships.
The Company’s omni-channel model drives customer acquisition and, with rigorous vetting, we are able to identify opportunities for product category expansion, particularly with Global Industrial Exclusive Brands™ products. Category expansion with our customers is designed to drive repeat orders and increases in customers’ annual spend. We aim to maximize customer satisfaction and loyalty by combining close customer relationships with product expertise, efficient and competitive fulfillment, delivery, and exceptional customer service.
As our name suggests, we at Global Industrial think of our corporate responsibility in global terms. As citizens of a global community, we embrace responsible ESG stewardship as an essential part of our mission to build a successful business, and to affirm and align with the expectations of our stakeholders, which include our associates, customers, suppliers, and stockholders. As stakeholder expectations change and evolve, including those around ESG matters, we are committed to changing and evolving with them. We have a strong foundation upon which to do so, which includes investing in infrastructure and innovation, trusting and empowering our associates, supporting local communities in which our associates work and live, embracing a conservative approach to our own resource use, and providing products and services to our customers designed specifically to reduce resource consumption throughout their supply chains.
In 2021, Global Industrial established a cross-disciplinary ESG Task Force to lead our ESG efforts. The ESG Task Force includes members from the Legal, Merchandising, Operations, and Human Resources departments. The ESG Task Force not only gathered data about previous and ongoing ESG initiatives within our various business units, but also continues its work by charting ESG objectives for the Company moving forward. The progress of the ESG Task Force is tracked on an ongoing basis and is subject to oversight by management and our Board.
In February 2022, the Nominating/Corporate Governance Committee, with unanimous Board support, committed to endeavoring to include, and requiring any search firm that it engages to endeavor to include, diverse candidates in initial pools of director nominees if and to the extent Board vacancies should arise.
We believe that these recent initiatives at the highest level of Global Industrial underscore the importance we place on ESG initiatives, and communicate a message to our various stakeholders, internal and external, that sustainability, diversity, and inclusion are among our highest priorities as we continue to advance our business objectives.
At Global Industrial, environmental responsibility is an important aspect of our business mission.
In addition to doing our fair share for the global environment, it is our hope that our demonstrated commitment to sustainability initiatives will serve as a positive model of corporate civic responsibility in the communities we serve.
Associates at all levels are required to follow Company procedures designed to comply with local, state, and federal environmental laws and regulations. We strive to minimize the environmental impact of our operations in the communities in which we operate, and to be mindful of conservation of natural resources. In addition, we continually work toward reducing our environmental footprint through various sustainability initiatives.
Global Industrial™ Smart Trash Cans powered by Nordsense include wireless technology that allows customers to monitor waste levels. Monitoring waste levels improves efficiencies in garbage truck dispatch, ultimately resulting in fewer garbage trucks on the road, lower emissions from the trucks, and thus, a decreased carbon footprint.
In 2019, Global Industrial completed the installation of electric vehicle charging stations at our corporate headquarters. By installing the electric vehicle charging stations, we are encouraging the use of renewable energy while decreasing dependence on fossil fuels.
Global Industrial has implemented workplace flexibility and telework policies and resources that provide associates the flexibility to balance business and personal needs, while reducing reliance on commuting, which reduces fuel consumption.
All of our distribution centers have a cardboard recycling process in place. Recycling cardboard significantly reduces the volume of waste Global Industrial sends to landfills.
Global Industrial is continually reducing our reliance on paper transactions and documentation by embracing efficient digital and electronic record-keeping and signing processes.
Global Industrial has begun to implement a “No Foam” initiative targeted at eliminating the use of foam packaging materials for Global Industrial Exclusive Brands™ products, absent unforeseen circumstances, by the end of 2025. Global Industrial Exclusive Brands™ include products from the Global Industrial®, Nexel®, and Interion® lines.
In our distribution centers, we use a software platform that optimizes and reduces the size of cardboard boxes when packaging our products. The platform endeavors to match product size to box size as closely as possible in an effort to improve space efficiency while reducing consumption of packaging materials.
In addition to using software designed to optimize box selection when packaging our products, Global Industrial also strives to ensure, where possible, that in-stock Global Industrial Exclusive Brands™ products are shipped to our customers, from the distribution center closest to the delivery address. Shipping from the nearest distribution center increases efficiency while decreasing shipping time and fuel emissions.
Most of our facilities use programmable thermostats with temperature setbacks to control energy consumption. These thermostats are designed to be eco-friendly in that they help to decrease the greenhouse gas emissions associated with energy consumption at our facilities.
One of Global Industrial’s product lines includes both indoor and outdoor bottle fillers with multiple options for dispensing refrigerated, filtered water. Three of the models in this product line include built-in sensors that measure the number of equivalent, single-use plastic bottles saved for every 20-ounces of water dispensed into a reusable bottle.
Global Industrial offers sustainable packaging options, such as its line of Global Industrial® corrugated boxes, which come in varying sizes and strengths. Further, Global Industrial is continuing its innovative efforts with plans to introduce additional sustainable options for our customers’ packaging needs all while keeping the environment at the forefront.
Global Industrial offers thousands of products with third-party environmental certifications, including: GREENGUARD, ECOLOGO, Green Seal, WaterSense, EnergyStar, Safer Choice, and USDA BioPreferred. By selling these products to our customers, Global Industrial not only helps our customers meet their sustainability goals, but also helps protect the environment as well.
Continuing a strategy that began several years ago, currently 60% of our U.S. distribution centers and our corporate headquarters have LED lighting (or are scheduled to have LED lighting installed by the end of 2022). LED lighting significantly reduces the energy required to light our facilities, while also decreasing attendant costs. Furthermore, when we convert a facility from fluorescent lighting to LED lighting, we recycle the fluorescent bulbs. Additionally, most of our lights are equipped with either motion sensors or timers to further control energy consumption in our facilities.
In designing our distribution centers and when upgrading our facilities, we look to use energy-efficient HVAC sources, including split-unit HVAC systems, and high-temperature and direct gas-fired air heaters. By preferentially using energy-saving HVAC systems, we have lowered the amount of greenhouse gases and carbon emitted from our facilities.
Our primary social goals as a Company are two-fold: developing associates and strengthening the Global Industrial culture. These overarching objectives are accomplished through listening and creating effective people solutions that will foster a workplace where associates can learn, participate, belong, and contribute to their fullest potential.
Global Industrial’s mission of social responsibility extends outward, as well, to include the communities we serve. We have introduced recent initiatives to support charitable organizations in our surrounding communities whose aims align with our corporate responsibility goals, and also promote our associates’ engagement in charitable initiatives.
Since Mr. Litwin’s appointment as CEO in January 2019, gender diversity on the Company’s senior leadership team has increased by over 20 percentage points.
Senior Leadership Team (excluding CEO) Gender Diversity (Year End 2018)
Senior Leadership Team (excluding CEO) Gender Diversity (Year End 2021)
At Global Industrial, we are all “associates,” a term which reinforces the affiliation of all of our employees in a common mission. We rely on each other to be as dedicated to Global Industrial as Global Industrial is dedicated to us.
Global Industrial is committed to acting as a responsible and ethical corporate world citizen. Our associates are expected to conduct Company business with the highest regard for our Company’s duties to its stakeholders.
We expect that our associates value safety, provide quality service, and keep our customers in mind every day.
At Global Industrial we view our relationship with our employees as a two-way conversation. We frequently solicit employee feedback on ways to improve the quality of their work experience, both through formal surveys and informal commentary. Feedback received from these surveys has led to the Company’s implementation of various wellness- and productivity-enhancing initiatives. Additionally, associates receive regular feedback and coaching to improve their performance.
In November 2021, the Distribution Center Golden Broom Award was created. The winning teams are chosen based on a monthly aisle walk by the respective distribution center managers and an independent reviewer from another department, both of whom rate the designated zones based on established criteria. The award-winning associates are selected for having demonstrated the core values of Global Industrial as they take pride in their work area, promote teamwork, focus on safety, and improve order accuracy, all of which are factors that contribute to increased customer satisfaction.
In May 2022, a custom car hood for our Global Industrial race car was unveiled with the names of all of our associates to honor them for the extraordinary work they do every day and to emphasize our collective journey to ever-increasing standards of excellence.
We believe in a holistic approach to wellness, which includes both the mind and body. We embrace multiple avenues to get and stay healthy and take wellness seriously. In furtherance of this approach, we have on-site gyms in most of our facilities in the United States. Additionally, the Company offers discounted subscriptions to a fitness platform, which offers access to gyms, fitness studios, and well-being apps. Through our many wellness initiatives, we promote proper nutrition, weight-loss strategies, meditation, yoga, smoking cessation, and much more.
We offer comprehensive medical, dental, life, and disability insurance benefits, which include telehealth medicine that gives associates the opportunity to consult with a board-certified doctor or a licensed therapist from a phone or secure video platform.
We also offer a confidential Employee Assistance Program to all U.S. and Canadian associates which provides, among other things, assistance with personal and professional management and, where appropriate, referrals to professionals in various fields.
Yearly, we offer flu shot clinics at all of our U.S. locations. When COVID-19 vaccines became available we also offered them to all of our associates free of charge.
The Company has implemented a number of financial wellness initiatives to support our associates’ financial wellbeing. For starters, associates are able to purchase products from our inventory or catalogs at a reduced cost every day. Also, Global Industrial offers a 401(k) matching plan and an Employee Stock Purchase Program, which offers associates the ability to purchase shares of our common stock at a discount to market prices on a predefined biannual basis
In 2022, we launched a quarterly development series called “Path to Professionalism,” available to all associates in a supervisory role. We also held ten workshops in various subject matters in the second quarter of 2022.
In 2021, we launched a formal half-day leadership workshop, led by an executive coach, to help managers hone in on their leadership skills and ensure they are managing their team in accordance with our Mission, Vision & Core Values.
In 2022, Global Industrial launched the Women’s Leadership Development Series, which is a robust 12-month program that promotes female leadership talent through workshops and small group coaching sessions.
Associates are able to enhance their skill sets by taking courses in a learning management system. Courses are available in business skills, computer software, finance, and safety compliance.
Additionally, Global Industrial has partnered with an Ivy League university to offer an online program with graduate-level courses that are available to Global Industrial associates in select business units. Upon successful completion of the two-to three-week courses, associates receive a certificate.
We also encourage associates to expand their personal and professional growth through formal education of their own choosing. Global Industrial offers tuition support in associate-selected areas of study. Full-time associates who have worked for the Company at least three months may submit for partial reimbursement of academic tuition in their chosen areas of study. We invest in our associates to provide them with an opportunity to further develop their skills and knowledge, with an aim to create a positive impact on their personal and professional growth.
One of our Commercial Account Managers used the tuition reimbursement program to receive his MBA. The MBA “helped me in pricing negotiations, to better understand project management, [and in] connecting the dots between all aspects of the business.” In addition, “there was something in every class that I was able to relate to my current role.”
One of our Strategic Account Managers is utilizing the tuition reimbursement program to pursue his MBA from Temple University in Summer 2023, and described his experience as follows: “Global Industrial’s Tuition Reimbursement Program is a testament to our Company’s dedication to supporting professional growth for each and every associate! Our Human Resources team has helped teach me the program guidelines and made the experience seamless. It is refreshing to be part of a Company that offers the development opportunities both within the organization and outside. I continue to leverage my new skills each day to give back to the Company who helped me get where I am. I have high hopes that my MBA degree will assist in my upward trajectory and continue to unlock new opportunities here at Global Industrial for years to come!”
Additionally, we give our interns the opportunity to have some fun while connecting with their peers through social events such as catered food-truck lunches, a trip to cheer on Global Industrial’s race car, an Escape Room event, cooking class, and a New York baseball game.
At the end of the program, interns present their research projects with recommendations to leadership.
In 2021, a group of our associates participated in a neighborhood clean-up event in West Philadelphia.
During our 2021 trade show in Nashville, our CEO led a group volunteer activity which sorted and packed medical supplies, stocked inventory, and loaded containers for Project C.U.R.E. Nashville, a charitable project that provides donated medical supplies, equipment, and services to doctors and nurses in more than 135 countries.
Also, in recognition of Autism Awareness Month, the Company hosted a toy and school supply drive, and has provided support for local businesses that employ autistic individuals.
We celebrated Earth Day with an EARTH DAY 5K CHARITY RACE at Eisenhower Park on Long Island, which raised money for the Never Stop Running Foundation.
During the end of the year holidays, each of our facilities sponsors a local holiday donation drive to enable associates to donate items to those in need in their local areas.
At Global Industrial, we believe that effective corporate governance is of critical importance to our stakeholders. Good governance is one of our core principles which guides our formulation of corporate policies, internal management, and relationships with our stakeholders
Responsible governance starts with a talented and diverse executive management team, which we have significantly expanded and enhanced over the past few years.
The business and affairs of Global Industrial are managed under the direction of our Board of Directors and its various committees. Our Board’s principal committees, Audit, Compensation, and Nominating/Corporate Governance, are composed entirely of independent directors.
In February 2022, the Nominating/Corporate Governance Committee, with unanimous Board support, committed to endeavoring to include, and requiring any search firm that it engages to endeavor to include, diverse candidates in initial pools of director nominees if, and to the extent, Board vacancies should arise.
The Board and each of its principal committees conduct annual evaluations to determine whether it and its committees are functioning effectively. As part of this annual self-evaluation, the Board evaluates whether the current leadership structure continues to be optimal for Global Industrial and our stockholders.
Our Lead Independent Director and the other independent directors of our Board are actively involved in corporate governance matters and, as with each of the Board’s principal committees, routinely meet in executive session without management several times during the year.
We have an independent Lead Director, who presides over the executive sessions of the independent directors and, as needed, acts as principal interlocutor between the independent and non-independent directors.
The Board is responsible for the oversight of the Company’s risk management process. Risk management is a recurring Board quarterly agenda item and is considered an essential part of business and operations planning.
Our CEO regularly hosts VOTE (Voice of the Employee) meetings with small groups and departments to hear from our associates in an effort to align associate goals and objectives with the Company’s larger mission. We continue to search for new methods of employee enfranchisement to improve our business, both through individual achievements and through advancement of our goals as an enterprise. We believe that inviting our associates to join us in self-reflective conversation will stimulate our success in both domains.
Our CEO hosts quarterly “CEO Livestreams” to update all associates on the accomplishments of the prior quarter, and key priorities for the quarter ahead. The CEO Livestreams also include recognition of certain associates who go above and beyond and set the tone for others to follow their leadership example.
In addition, our CEO and other members of the senior management team regularly post on our intranet news about exciting business initiatives, personal achievements, work anniversaries, birthdays, benefit reminders, HR announcements and everyone’s favorite: Global Industrial in the Wild (#giinthewild), a platform which identifies Global Industrial products spotted in the world at large. Associates post photos of Global Industrial products that they see all over the world while commuting, exploring, and working.
At each distribution center throughout the U.S. and Canada, Global Industrial management hosts quarterly town hall meetings. These meetings showcase individualized topics that are pertinent to the associates’ roles and to each geographical location.
Throughout its history, Global Industrial has been guided by a value system that emphasizes integrity and trust at all levels of the organization. Our Company maintains long-standing policies and practices to ensure that Global Industrial is managed in our stockholders’ best interests. We maintain this culture of ethics and compliance through a robust framework of policies, training, and reporting.
The Company’s Corporate Ethics Policy articulates the standards of business and professional ethics that we expect all of our directors, officers, associates, and other representatives of the Company to follow on a worldwide basis. It is the foundation upon which our related policies, trainings, and ethical decisions are established.
Our Company’s Corporate Ethics Policy is regularly reviewed by our Board of Directors and our current Corporate Ethics Policy can be viewed on our website at www.investors.globalindustrial.com. All new associates are provided an overview of each of our compliance policies, including our Corporate Ethics Policy and our Anti-Harassment Policy.
The Company is committed to providing education, training, and awareness to our associates around the world with respect to our ethical business practices and related compliance policies. Associates are required to complete initial and annual compliance training to ensure familiarity with the Company’s expectations of workplace conduct and compliance with the laws and regulations that govern our business.
Our compliance training program includes, among others, Understanding Fraud, Ethics & Workplace Behavior (including anti-harassment training), and Data Privacy & Information Security.
In order to eliminate and avoid discrimination against any employee or applicant for employment because of race, color, national origin, marital status, age, sex, sexual preference, citizenship, disability, veterans’ status, domestic violence victim status, or any other consideration protected by state or local laws, it shall continue to be Global Industrial’s policy to provide equal employment opportunities in personnel actions such as hiring, training, compensation, and promotions.
Global Industrial has made a commitment to provide a work environment free from all forms of harassment or intimidation, including sexual harassment and bullying behavior.
Global Industrial is committed to creating and maintaining a positive work environment. Management is responsive to the needs and concerns of all associates. Our associates should expect to be treated fairly and with respect.
Global Industrial expects that our associates will conduct themselves according to the Global Industrial values, and the policies and procedures of the Company.
Global Industrial values safety across all levels of the organization. We believe that every associate has the right and responsibility to continually seek to prevent injuries and build a safe environment for everyone. The prevention of occupationally-induced injuries and illnesses is of paramount importance to our organization.
Our distribution center management trains our distribution center associates to abide by federal, state, and local laws and regulations, but also to go above and beyond to protect each team member. Associates are trained to remind each other of our safety principles and to proactively identify and mitigate risks.
Global Industrial distributes weekly safety presentations to each member of distribution center management. These presentations contain a daily topic to be covered with distribution center associates before each shift starts in an effort to improve team communication and demonstrate the Company’s commitment to safety
We have implemented local safety committees at each facility to provide oversight, training, education, guidance, and support to enhance the Company’s positive safety culture.
- Identify risks
- Proactively promote health and safety
- Regularly review safety and health initiatives for the facility
- Promote compliance with federal, state, and local regulations
- Promote a positive safety culture through education, recognition, and a positive lessons-learned approach
We have a robust cybersecurity training and awareness program that requires all associates to complete mandatory cybersecurity awareness, information handling, and privacy training at the time of onboarding and on an annual basis. In addition, we regularly test our associates’ compliance with best practices using various techniques, such as simulated phishing campaigns, to validate the efficacy of our cybersecurity training.
We have implemented solutions, processes, and procedures to help mitigate the risk of cyber attacks, such as conducting annual vulnerability testing, and periodically engaging third-party experts to assist us with tasks such as implementing an incident response plan and conducting periodic tabletop exercises.
All remote associates use VPN/multifactor authentication to mitigate the risk against cyber attacks. We maintain and routinely test backup and disaster recovery systems, along with conducting external network security penetration testing by an independent third-party as part of our business continuity preparedness. We have a business continuity plan supported by active/passive disaster recovery. Our Company has offline backups to store our data in the event a firewall is breached.
We implement security practices appropriate to the nature of the information we collect, including technical, administrative, and operational procedures to prevent loss, misuse, or alteration of personal information. We also comply with payment card industry data security standards for the processing of credit and debit cards.
Global Industrial uses firewalls and email filtering solutions to block known malicious attachments and suspicious files. We also use web-filtering solutions that block malicious or suspicious downloads and web pages.
Global Industrial prioritizes the development of marketing and data practices that enhance data privacy and incorporate protections into our business strategy, culture, and ongoing operations.
This Report contains forward-looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission or otherwise. Any such statements that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on management’s estimates, assumptions and projections and are not guarantees of future performance. Forward-looking statements may include, but are not limited to statements regarding: i) projections or estimates of revenue, income or loss, exit costs, cash flow needs and capital expenditures; ii) fluctuations in general economic conditions, including effects of rising inflation; iii) future operations, such as risks regarding strategic business initiatives, plans relating to new distribution facilities, plans for utilizing alternative sources of supply in response to government tariffs and trade actions and/or due to supply chain disruptions arising from the COVID-19 pandemic, war, geopolitical conflicts and plans for new products or services; iv) plans for the acquisition or sale of businesses, including expansion or restructuring plans; v) financing needs, and compliance with financial covenants in loan agreements; vi) assessments of materiality; vii) predictions of future events and the effects of pending and possible litigation; and viii) assumptions relating to the foregoing. In addition, when used in this Report, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” and “plans” and variations thereof and similar expressions are intended to identify forward-looking statements.
Forward-looking statements in this Report are based on the Company’s beliefs and expectations as of the date of this Report and are subject to risks and uncertainties which may have a significant impact on the Company’s business, operating results or financial condition. Investors are cautioned that these forward-looking statements are inherently uncertain and undue reliance should not be placed on them. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected events.
2022 ESG Report