The leader in the industrial services industry
is undergoing an organizational review to determine targets
Cintas Corporation (Nasdaq: CTAS) has announced its ambition to
achieve Net Zero greenhouse gas (GHG) emissions by 2050.
The company is also in the midst of a comprehensive,
enterprise-wide review of its business model as it relates to
environmental, social and governance (ESG) opportunities,
improvements, and efficiencies. Cintas has been built on
sustainable business practices, and the continuous improvement of
its sustainability measures has been key to the company’s
operational success over the years.
As its business review continues for the next 12-18 months,
Cintas expects to better define its ESG journey, including
identifying strategies to reduce its Scope 1 and 2 GHG emissions
and potential avenues to reduce Scope 3 GHG emissions from its
supply chain. The review will also focus on opportunities to
further reduce its overall environmental impact through continued
reductions in energy, water, raw materials, and waste throughout
its business.
“Cintas was founded on a sustainable business model and has
grown to a $7-plus billion-dollar company by recycling, reducing,
and reusing our products and materials for our customers, and
helping them reduce their environmental impact. Our corporate
culture is based on doing what’s right and challenging ourselves to
be better, so we view announcing our ambition to reach Net Zero GHG
emissions by 2050 as a natural extension of our culture and how we
conduct our business,” said Todd Schneider, Cintas President and
CEO. “We believe that climate change is a real issue, and that as a
good corporate citizen, we must actively engage in activities and
initiatives that help reduce our impact on the environment. We
understand that reaching Net Zero GHG emissions by 2050 is
ambitious given our business and industry, but we are committed to
doing our part to innovate and explore new technologies that will
be necessary in this journey.
“We continually develop and implement new processes to reduce
our energy and water consumption while still maintaining our
industry-leading quality and service. Our Net Zero ambition will
challenge our entire company to think even more critically about
our business and create more sustainable means to help our
customers get Ready for the Workday. To successfully achieve our
ambition to reach Net Zero GHG emissions by 2050, we’ll need to
think differently about our own operational processes – including
the energy sources we use and our delivery fleet – and we’ll need
the support and buy-in of our supply chain,” Schneider said.
The company’s sustainable business practices date back to the
company’s origins in 1929 when Doc and Amelia Farmer gathered dirty
shop rags from local businesses that otherwise would’ve been thrown
away, brought them home to wash them and sold the clean rags back
to companies in the Cincinnati area. As the company grew, their
grandson, Richard “Dick” Farmer, created a burgeoning uniform
rental operation in 1959 that provided an easy, affordable, and
sustainable option for companies to outfit their employees.
Further business line expansions under CEOs Bob Kohlhepp
(1996-2004) and Scott Farmer (2004-2021) into facility services,
first aid and safety, and fire protection deepened the company’s
sustainable business model. These provided product offerings based
on reusing and recycling goods and reducing the use of natural
resources, as well as the development of products and services to
help customers keep their own facilities, employees, and facilities
cleaner, safer, and healthier.
>> More information
about Cintas’ history of sustainability is available at
cintas.com
Cintas’ ambition to achieve Net Zero GHG emissions by 2050
builds on the company’s history of demonstrating environmental
impact improvements year over year.
Between the fiscal years 2016 and 2020, Cintas improved its
water efficiency rate by 16% while increasing its sales by almost
48% in that same time frame. In the last three years, the company
has reduced its energy consumption by almost 13% as sales rose by
10%. Further, Cintas’ laundry process is the most efficient in the
industry, while traditional at-home laundry processes consume 55%
more water and 204% more energy than Cintas’ process.
Cintas’ organizational business review began in 2019 when the
company implemented processes to help it start publicly reporting
on its ESG priorities – including its environmental impacts – and
now continues with due diligence and the analysis of historic
data.
The results of Cintas’ ongoing business review will guide its
ESG journey, and the company has established the structure and
processes to take it into the future. In August 2021, Cintas
appointed Christy Nageleisen as its new Vice President of ESG and
Chief Compliance Officer, and re-organized several departments to
create a new Risk and Compliance Department. This new department
will work cross-functionally under Nageleisen as she develops and
leads the company’s ESG-related strategy, activities, monitoring
and compliance. This strategy is expected to include further
environmental impact improvements, as well as opportunities related
to diversity and inclusion, human capital, safety and health, and
governance objectives, among other areas.
In November 2021, Cintas expects to release its 2021 ESG Report,
which will further detail the company’s efforts in corporate
responsibility, environmental stewardship, social initiatives, and
its governance strategy.
About Cintas Corporation
Cintas Corporation helps more than one million businesses of all
types and sizes get Ready™ to open their doors with
confidence every day by providing products and services that help
keep their customers’ facilities and employees clean, safe, and
looking their best. With offerings including uniforms, mats, mops,
towels, restroom supplies, workplace water services, first aid and
safety products, eye-wash stations, safety training, fire
extinguishers, sprinkler systems and alarm service, Cintas helps
customers get Ready for the Workday®. The company is also
the creator of the Total Clean Program™ – a first-of-its-kind
service that includes scheduled delivery of essential cleaning
supplies, hygienically clean laundering, and sanitizing and
disinfecting products and services. Headquartered in Cincinnati,
Cintas is a publicly held Fortune 500 company traded over the
Nasdaq Global Select Market under the symbol CTAS and is a
component of both the Standard & Poor’s 500 Index and
Nasdaq-100 Index.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a
safe harbor from civil litigation for forward-looking statements.
Forward-looking statements may be identified by words such as
“estimates,” “anticipates,” “predicts,” “projects,” “plans,”
“expects,” “intends,” “target,” “forecast,” “believes,” “seeks,”
“ambition,” “could,” “should,” “may” and “will” or the negative
versions thereof and similar words, terms and expressions and by
the context in which they are used. Such statements are based upon
current expectations of Cintas and speak only as of the date made.
You should not place undue reliance on any forward-looking
statement. We cannot guarantee that any forward-looking statement
will be realized. These statements are subject to various risks,
uncertainties, potentially inaccurate assumptions and other factors
that could cause actual results to differ from those set forth in
or implied by this Press Release. Factors that might cause such a
difference include, but are not limited to, our ability to
successfully meet our Net Zero GHG goal within the expected
timeframe, as well as our ability to further reduce our overall
environmental impact through continued reductions in energy, water,
raw materials, and waste throughout our business. Cintas undertakes
no obligation to publicly release any revisions to any
forward-looking statements or to otherwise update any
forward-looking statements whether as a result of new information
or to reflect events, circumstances or any other unanticipated
developments arising after the date on which such statements are
made. A further list and description of risks, uncertainties and
other matters can be found in our Annual Report on Form 10-K for
the year ended May 31, 2021 and in our reports on Forms 10-Q and
8-K. The risks and uncertainties described herein are not the only
ones we may face. Additional risks and uncertainties presently not
known to us, or that we currently believe to be immaterial, may
also harm our business.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210909005186/en/
Investor Relations Contact: Paul Adler, Vice President
and Treasurer, adlerp@cintas.com, 513-972-4195
Media Contacts: Lizz Summers, Corporate Communications
Manager, summerse2@cintas.com, 513-972-2859 Michelle Goret, Vice
President of Corporate Affairs, goretm@cintas.com, 513-972-4155
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