Corporate Responsibility

We recognize that corporate social responsibility and sustainable business practices are critically important to the long-term interests of our stockholders and other stakeholders. To promote these interests, we are committed to responsible business practices and continual improvement of our operations and our relationships with our employees, our customers and the communities in which we operate. While we are still in the early stages, we are also committed to enhanced transparency, and best practices, in our corporate responsibility and sustainability policies and practices. Below are some of the ways in which we demonstrate our commitment to the environment, our employees and communities, and responsible governance.

Commitment to the Environment

Circular Economy
The Circular Economy is an ever-evolving and fast-growing system that centers on the idea of redesigning production and consumption, eliminating waste, and making continual use of resources. This system differs from more traditional economic models in which a product is created, used, and disposed of, or sent to a waste collection facility, when its useful life ostensibly concludes. Simply put, the Circular Economy centers on keeping products and materials in use, and extending their utility to maximize environmental and economic benefits of those products and materials. Circular Economy business strategies have continued to spread to virtually all product categories, including the automobile industry.

IAA’s Role
Automobiles play an important role in the economy and are consumed on a significant scale, resulting in the consumption of vast amounts of society’s raw materials. The ability to reuse and/or recycle the materials commonly found in vehicles can help to mitigate the significant impact the sourcing of new materials have on the environment. IAA processes over 2 million vehicles annually through the automotive Circular Economy to buyers and recyclers, via its automobile auction business model, giving them second lives and beyond, as well as a renewed purpose, instead of ending the cycle prematurely in a landfill. Through IAA’s business, those vehicles are able to reach their highest, best and multiple uses, minimizing negative environmental impact.

IAA believes that when a vehicle is at the end of its initial life for an owner, that vehicle should circulate to another owner, who can then begin the next phase of that vehicle’s life. In practical terms, that means getting the vehicle to a new owner who will: Refurbish, repair, or remanufacture the vehicle for future use; Reuse the vehicle and its components; or, Recycle whatever cannot be returned to service.

This process of putting vehicles to a second use also eliminates the need to extract new raw materials from the environment, which would otherwise be necessary to build a new vehicle. The same is true for automobile parts. Keeping a vehicle or its parts in use, or reusing those vehicles or parts, saves on energy, greenhouse gas (“GHG”) emissions, and water use, and thereby helps to mitigate climate change, by reducing the need to manufacture new vehicle parts. This reuse also reduces waste, and the impact from automobiles degrading and leaching potentially harmful substances into the environment.

Finally, IAA’s digitization of the auction process is another such environmentally responsible solution. IAA has rapidly converted nearly all auctions to virtual auctions with the goal of minimizing, and potentially eliminating, the need for any physical attendance at the auctions. Virtual auctions eliminate the need to transport the vehicle out of storage for display and eliminates the requirement that bidders physically drive to auction sites, both of which result in lowered GHG emissions and save on energy and water use. In addition, digitization of the auction process reduces the risk to buyers associated with traveling to auctions and interacting with other buyers, which is more important now than it has ever been, particularly in light of the risks presented by global health-crises, such as the COVID-19 pandemic.

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Commitment to Social Responsibility

We believe that socially responsible practices, including being a good employer to our employees, being good partners with our customers and being good neighbors within our communities, go hand in hand with generating value for our stockholders. To that end, IAA focuses on the following issues:

Human Capital Management: IAA is committed to promoting the health, wellness, and future of our employees.

  • Recruitment & Retention: IAA’s business depends on having capable people focused on excellence in their respective capacities, whether they service the internal needs of the company, or IAA’s clients;
  • Diversity & Inclusion: IAA participates in programs like Women in Tech, provides training to all employees on issues such as unconscious bias, and places a strong emphasis on diversity in all areas of the company, including those persons serving on its Board of Directors. See also “Board of Directors” and “Committee Composition” sections under the “Governance” heading on this page; and
  • Employment Practices: IAA is an employer of choice and pays highly competitive salaries, including for entry-level positions as well as executives and other leaders. IAA also provides excellent health and wellness benefits, including health insurance, sick and personal time off, and access to an employee assistance program.

Workplace Safety: IAA is proud of its exemplary record of workplace safety. IAA believes the safety of its employees is imperative to its long-term success. As such, IAA regularly trains its employees in the areas of safety and emergency preparedness. IAA complies with, and in many cases exceeds, all OSHA regulations, as well as all relevant governmental regulatory standards.

Data Security & Customer Privacy: IAA takes the security of its customers’ data seriously. For example, IAA collects and retains the minimum amount of information necessary, and then safeguards it with utmost care and state-of-the-art systems. IAA’s employees and customers are protected by IAA’s commitment to this data security.

Our Communities: We encourage everyone in our organization to volunteer their time and donate as they deem appropriate to local, and in some cases national, charitable causes. IAA employees generously give their time to help those charities, and the people those organizations serve. With the current pandemic, we have seen our people do their part in response to COVID-19, by turning old IAA uniforms into face masks to distribute in the community, and by making face shields and donating them to local hospitals to help protect the frontline nurses and doctors caring for impacted patients.

As a corporate organization, IAA has sponsored a number of national charities focused on the health and well-being of those in need. IAA also has a Donation Division focused on turning donated vehicles into cash that funds the operations and missions of hundreds of worthy causes. Lastly, IAA has a dedicated Catastrophe Response Team (the “CAT Team”), which works on behalf of our insurance customers to respond to the needs of communities around the countries as individuals impacted by catastrophes work to put their lives back together from the destruction that they faced. Our efforts aid the first responders and state and local governments by removing damaged vehicles from the recovery areas and storing them at our locations until they are sold.

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Commitment to Governance and Transparency

IAA is committed to adhering to a high level of corporate governance and transparency with respect to its environmental, sustainability and corporate social responsibility practices. The Risk Committee of our Board is responsible for overseeing and monitoring our environmental policies and practices, including our assessment of climate-related risks and opportunities associated with our business practices. The Compensation Committee of our Board is responsible for overseeing our human capital management initiatives, including employee retention and engagement, talent development and diversity and inclusion. These committees are expected to provide periodic reports to the Board on these matters. We also have an internal, cross-functional team, led by our Chief Legal Officer, that advises our management, and reports to the Board, on matters related to the Company’s environmental, sustainability and social responsibility initiatives and develops policies and procedures designed to promote the achievement of these initiatives.

IAA strives to meet investor expectations and enhance its reporting to stockholders regarding its corporate social responsibility and sustainability policies and practices. To further these efforts, IAA is committed to incorporating disclosures in a future published sustainability report that aligns with leading reporting frameworks, including relevant Sustainability Accounting Standards Board (SASB) standards. To remain transparent about its ongoing ESG efforts, IAA will be updating its website to include more information about IAA’s environmental, sustainability and corporate social responsibility policies and practices.

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