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bribe | Practices Act, UK Bribery Act and other
Plan. We reserve the right to terminate our similar anti-bribery legislation
Around
business relationship with any supplier that
200
does not take the corrective actions needed
to address any non‑compliances.
social compliance audits of
our suppliers were conducted
during FY ‘20
Learn more about our social responsibility efforts at CintasCares.com. 7Welcome Our Positive Impact in 2020 Energy and Emissions Water Safety and Health Sustainable Supply Chain Governance, Ethics and Integrity
WE’RE READY™ TO CONTINUE DOING
THE RIGHT THING EVERY DAY
Across our company, we are committed to corporate responsibility,
operating honestly and fairly, and doing what’s right.
The Cintas Code of Conduct
GOVERNANCE STRUCTURES VALUES, PRINCIPLE |
corruption | Anti-corruption risks related to corruption for risks related to corruption. to risks related to corruption. Anti-corruption training
b. Significant risks related to corruption identified for applicable employees is performed every year,
through the risk assessment. overseen by the Chief Compliance Officer. An audit is
performed every other fiscal year to ensure compliance
and identify any potential issues.
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 9GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
ECONOMIC continued
GRI 205: 205-2 Communication and a. Total number and percentage of governance body Anti-corruption policies are communicated to 100% of
Anti-corruption training about anti- members that the organization’s anti-corruption policies governance body m |
corruption | continued corruption policies and procedures have been communicated to, broken receive training on the subject. They are not specifically
and procedures down by region. communicated to other board members. Global
b. Total number and percentage of employees that the Sanctions Compliance ensures that the appropriate
organization’s anti-corruption policies and procedures vendors are aware of Cintas’ policies. As necessary,
have been communicated to, broken down by employee suppliers are compliant with Cintas’ policies or provide
category and region. an example of their robust policy.
c. Total number and percentage of business partners
that the organization’s anti-corruption policies and
procedures have been communicated to, broken down
by type of business partner |
corruption | organization’s anti-corruption policies and procedures
have been communicated to any other persons
or organizations.
d. Total number and percentage of governance body
members that have received training on anti-corruption,
broken down by region.
e. Total number and percentage of employees that have
received training on anti-corruption, broken down by
employee category and region.
205-3 Confirmed incidents a. Total number and nature of confirmed incidents No incidents have occurred, to date.
of corruption and of corruption.
actions taken b. Total number of confirmed incidents in which
employees were dismissed or disciplined
for corruption.
c. Total number of confirmed incidents when contracts
with business partners were terminated or not renewed
due to violations related |
corruption | to corruption.
d. Public legal cases regarding corruption brought
against the organization or its employees during the
reporting period and the outcomes of such cases.
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 10GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
ENVIRONMENTAL
GRI 301, 302: Energy 301-3 Reclaimed products and a. Percentage of reclaimed products and their packaging From the very start of our company’s origins, Cintas’
their packaging materials materials for each product category. business model has been based on sustainable
b. How the data for this disclosure have been collected. practices. Our journey started in 1929, during the
Great D |
corruption | Conduct, Anti-corruption, Confidentiality.
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 31GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 414: Supplier social assessment
GRI 103: Management 103-2 The management Aligns with GRI 414 Cintas Corporation and its subsidiaries seek to conduct
approach approach and its business in a lawful, ethical and moral manner in all
components countries in which we have the privilege to work. To
achieve this purpose, we expect our vendors to
subscribe to certain moral and ethical principles in
conducting business. While Cintas recognizes that there
are different legal and cultural environments throughout
the wo |
tax | 201-4 Financial assistance a. Total monetary value of financial assistance received Per our FY ‘20 tax calculations, we expect to claim a
received from government by the organization from any government during the federal Work Opportunity Tax Credit on our federal tax
reporting period, including: return of approximately $400,000. This credit has been
i. tax relief and tax credits; as high as $1.3 million in prior years. We may receive
ii. subsidies; additional federal credits from Federal Enterprise
iii. investment grants, research and development grants, Zones and Indian Employment Credits of another
and other relevant types of grant; $100,000. None of these credits are considered material
iv. awards; from a federal income tax standpoint.
v. royalty holidays;
vi. financial assistance from Export Credit Agencies (ECAs);
vii. financial incen |
governance | CINTAS 2020 ESG REPORTWelcome Our Positive Impact in 2020 Energy and Emissions Water Safety and Health Sustainable Supply Chain Governance, Ethics and Integrity
WELCOME
This report is for the fiscal year
Our company is dedicated
June 1, 2019 to May 31, 2020.
to operating to the highest
to our 2020 Environmental, Social and Governance (ESG) ethical and safety standards,
creating a diverse and
Report, in which we share our ESG performance with
inclusive workplace,
investors, employee-partners, customers, communities,
providing sustainable
suppliers and other interested parties.
products and services, and
caring for our communities.
ESG AT CINTAS • Energy and Emissions (p.4) ABOUT CINTAS We’re committed to doing
From the very start of our company’s Reducing our overall energy use, Headquartered in Cincinnati, Ohio, Cintas
the right thing and we’re
origins, the Cintas business mo |
governance | lasting commitment to the environment • Governance, Ethics and Integrity (p.8) $7.09 billion
and our communities is evident from our Doing business in an honest, professional
processes and innovation, which ensure our and ethical way.
revenues
rental facilities are operating efficiently.
Our positive discontent drives us to do WHAT’S NEXT? 7.2%
what is best for our employee‑partners, In 2021, we aim to expand our ESG
shareholders, communities and the reporting — including more clearly
compound annual growth rate
environment. defining our governance around ESG‑
(CAGR) over the last decade for
related risks and opportunities; continuing
• Our Positive Impact in 2020 (p.3) to be a leader in industry for water usage; revenue and 19.2% for earnings
Working to help make the world per share
explo |
governance | Learn more about our social responsibility efforts at CintasCares.com. 2Welcome Our Positive Impact in 2020 Energy and Emissions Water Safety and Health Sustainable Supply Chain Governance, Ethics and Integrity
WE’RE READY™ TO MAKE
American Diabetes Association:
Cintas visits ADA-sponsored summer
THE WORLD A BETTER PLACE camps as a part of our ongoing
collaboration with the organization
We strive to make a positive impact for our own people, as well
as supporting good causes and lending neighbors a helping hand.
RESPONDING TO COVID-19 DIVERSITY AND INCLUSION COMMUNITY ENGAGEMENT
Using our Preparedness Plan, we Supporting diversity and equality at Cintas We’re proud to partner with leading
implemented controls including physical means fostering a respectful, creative, not‑for‑profit community organizations
barriers, social distancing, appropriate productive environment where every to make a positive impact.
Personal Protectiv |
governance | Learn more about our social responsibility efforts at CintasCares.com. 3Welcome Our Positive Impact in 2020 Energy and Emissions Water Safety and Health Sustainable Supply Chain Governance, Ethics and Integrity
WE’RE ENGAGED IN ADDRESSING THE
CHALLENGE OF CLIMATE CHANGE
We are committed to reducing energy use and GHG emissions,
and helping to address the global impact of climate change.
REDUCING ENERGY USE In FY ‘20, we also upgraded our lighting 10%
The energy Cintas consumes in our rental technology to LED at nine locations, where
operations includes electricity, primarily we are achieving up to a 50% reduction in
annual reduction in energy
for lighting and process equipment, and lighting load. We are working to accelerate
use by Cintas rental
fuel — natural gas and propane — for dryers, implementation of LED lighting upgrades
operations through energy-
boilers, steam tunnels and building heating. at an additional 30 of ou |
governance | Learn more about our social responsibility efforts at CintasCares.com. on WSI (Washing Systems LLC) studies 4Welcome Our Positive Impact in 2020 Energy and Emissions Water Safety and Health Sustainable Supply Chain Governance, Ethics and Integrity
WE’RE COMMITTED TO
USING WATER RESPONSIBLY
Water is essential for our operations, but we know we must be a steward
of this shared resource by minimizing use and maximizing reuse.
88.4%
USING LESS WATER, REUSING MORE We carefully monitor and control our Our facilities discharge washing process
In FY ‘20, our North American rental laundering process to minimize water effluent to publicly owned treatment works
operations withdrew 3.16 million usage intensity; in FY ‘20, the amount of in compliance with local discharge
of water withdrawals were returned to
kilogallons (11.9 million m3) of freshwater water required to process a pound of standards and permits, which require
the environment
— 390,600 kgal less than in FY ‘19 |
governance | Learn more about our social responsibility efforts at CintasCares.com. on WSI (Washing Systems LLC) studies 5Welcome Our Positive Impact in 2020 Energy and Emissions Water Safety and Health Sustainable Supply Chain Governance, Ethics and Integrity
WE’RE INSPIRED TO CONTINUE
MEETING THE HIGHEST STANDARDS
Guided by our Safety Vision, we want every site to be injury-free, every employee-partner
to help improve safety and Cintas to be known as a global leader in safety and health.
MANAGING SAFETY AND HEALTH SAFETY AND HEALTH TRAINING Improvement course and each member HEALTH AND WELLNESS
To enforce internationally recognized Every year, our employee‑partners receive of our Senior Management team takes the Our long‑running Live Well program
standards, we have implemented an online, on‑the‑job and classroom training Management and Leadership Skills for supports employee‑partners on their
occupational health and safety management on 30 safety topics — and all maintena |
governance | Learn more about our social responsibility efforts at CintasCares.com. 6Welcome Our Positive Impact in 2020 Energy and Emissions Water Safety and Health Sustainable Supply Chain Governance, Ethics and Integrity
WE’RE DEDICATED TO MAINTAINING
AN ETHICAL SUPPLY CHAIN
We require our vendors and contractors to conduct business in
an ethical and moral manner, both domestically and internationally.
MANAGING HUMAN RIGHTS HUMAN RIGHTS TRAINING Using real‑life scenarios and referencing ASSESSING NEW SUPPLIERS
AND LABOR RIGHTS IMPACTS Cintas conducts training to ensure that current global regulations, the TRACE Our purchasing agreements require all
We have zero tolerance of all forms of employee‑partners and others with direct e‑learning course outlines the requirements suppliers and contractors to comply with
forced, trafficked, slave and child labor in responsibility for supply chain management of global trafficking‑related statutes |
governance | Learn more about our social responsibility efforts at CintasCares.com. 7Welcome Our Positive Impact in 2020 Energy and Emissions Water Safety and Health Sustainable Supply Chain Governance, Ethics and Integrity
WE’RE READY™ TO CONTINUE DOING
THE RIGHT THING EVERY DAY
Across our company, we are committed to corporate responsibility,
operating honestly and fairly, and doing what’s right.
The Cintas Code of Conduct
GOVERNANCE STRUCTURES VALUES, PRINCIPLES AND STANDARDS is an important part of our
The Cintas Board of Directors is the highest Our Corporate Culture spans our beliefs, values and reflects our
governing body in our organization. ethics and values, including honesty and company’s commitment to
Our Board is made up of eight members integrity, hard work, trust and respect, as ethical business practices
(six male and two female) and all senior well as defining a common language and and regulatory compliance
leaders repor |
governance | Nominating and Corporate Governance
behaviors, our CEO maintains ultimate
Committee, Audit Committee and
responsibility for them.
Compensation Committee — to address R EPORTING CONCERNS representative or the Compliance
key issues in greater detail. We are committed to complying with all Department, or call the Cintas Direct Line, a
applicable laws and regulations, and to dedicated, 24/7 toll‑free phone line operated
Our Corporate Culture spans our reporting situations or issues that are in by an independent third party.
violation of the law, company policy or our
beliefs, ethics and values, including
core principles. Employee‑partners have
honesty and integrity, hard work,
access to several mechanisms to report
trust and respect.
questions or concerns: they can speak with
th |
governance | and governance (ESG) topics, for the first time we are reporting publicly against a set of
consolidated indicators. This GRI Index accompanies our 2020 ESG Report and references
the Global Reporting Initiative (GRI) Standards as annotated throughout the document.
All standards are the 2016 versions, except where noted in the GRI standard column.
We report our progress in order to drive further improvements, recognizing there is more to do to make our operations more efficient, use
our planet’s natural resources more sustainably and drive our world-class safety program. In the coming year, we will expand our
ESG reporting and we will be defining our governance around the management of ESG issues.
The data in this report relates to the period from June 1, |
governance | Governance 102-18 Governance structure a. Governance structure of the organization, including Proxy Statement, pp. 6–8
committees of the highest governance body.
b. Committees responsible for decision-making on
economic, environmental, and social topics.
102-2 Activities, brands, a. A description of the organization’s activities. Form 10-K, pp. 3–4
products, and services b. Primary brands, products, and services, including Website
an explanation of any products or services that
are banned in certain markets.
102-20 Executive-level a. Whether the organization has appointed an Economic responsibility is held by the Chief Financial
responsibility for executive-level position or positions with responsibility Officer. Environmental responsibility is held by the
economic, environmental, for econom |
governance | governance body. Administrative Officer. All of these roles and all other
senior leaders report directly to the Chief Executive
Officer, who is also Chairman of the Board. Governance
is foundational to achieving long-term value, by
aligning and driving both financial and societal
performance, as well as by ensuring accountability and
building legitimacy with stakeholders. Achieving this
alignment requires governance to oversee the setting
of a company’s environmental, social, and economic
aspirations, to ensure that risks and opportunities
associated with these dimensions are respectively
navigated and embraced over time, and to ensure that
the interests of stakeholders, including shareholders,
are protected. The individuals and structures governing |
governance | on economic, and the highest governance body on economic, Cintas customer service line (800) 246-8271
environmental, environmental, and social topics. Cintas direct line for employee-partners (800) 292-9480
and social topics b. If consultation is delegated, describe to whom it is Code of Conduct and Business Ethics, p. 1
delegated and how the resulting feedback is provided
to the highest governance body.
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 3GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
General Disclosures continued
Governance 102-22 Composition of the a. Composition of the highest governance body and its Management and Directors
continued highest governance body committees by: Proxy Statement |
governance | iii. tenure on the governance body;
iv. number of each individual’s other significant positions
and commitments, and the nature of the commitments;
v. gender;
vi. membership of under-represented social groups;
vii. competencies relating to economic, environmental,
and social topics;
viii. stakeholder representation.
102-23 Chair of the highest a. Whether the chair of the highest governance body is Cintas’ CEO is also Chairman of the Board. Scott Farmer
governance body also an executive officer in the organization. is a fourth generation CEO who has been with the
b. If the chair is also an executive officer, describe his or company for 38 years, has served as CEO since 2003,
her function within the organization’s management and and as Chairman since 2016.
the reasons fo |
governance | the highest governance governance body and its committees.
body b. Criteria used for nominating and selecting highest
governance body members, including whether and how:
i. stakeholders (including shareholders) are involved;
ii. diversity is considered;
iii. independence is considered;
iv. expertise and experience relating to economic,
environmental, and social topics are considered.
102-25 Conflicts of interest The reporting organization shall report the following Proxy Statement, p. 34
information:
a. Processes for the highest governance body to ensure
conflicts of interest are avoided and managed.
b. Whether conflicts of interest are disclosed to
stakeholders, including, as a minimum:
i. Cross-board membership;
ii. Cross-shareholding with suppliers and other
stakeholder |
governance | Governance 102-26 Role of highest a. Highest governance body’s and senior executives’ Proxy Statement, p. 6
continued governance body in roles in the development, approval, and updating of the Website
setting purpose, values, organization’s purpose, value or mission statements, Cintas’ highest governing body upholds the
and strategy strategies, policies, and goals related to economic, Code of Conduct
environmental, and social topics.
102-3 Location of headquarters a. Location of the organization’s headquarters. 6800 Cintas Boulevard
P.O. Box 625737
Cincinnati, OH 45262-5737
102-31 Review of economic, a. Frequency of the highest governance body’s review Proxy Statement, p. 1
environmental, and of economic, environmental, and social topics and Cintas Audit Committee Charter
social topics their im |
governance | 102-35 Remuneration policies a. Remuneration policies for the highest governance Proxy Statement, pp. 11–30
body and senior executives for the following types
of remuneration:
i. Fixed pay and variable pay, including performance-
based pay, equity-based pay, bonuses, and deferred
or vested shares;
ii. Sign-on bonuses or recruitment incentive payments;
iii. Termination payments;
iv. Clawbacks;
v. Retirement benefits, including the difference
between benefit schemes and contribution rates for the
highest governance body, senior executives, and all
other employees.
b. How performance criteria in the remuneration policies
relate to the highest governance body’s and senior
executives’ objectives for economic, environmental,
and social topics.
For a detailed explanation of the indicators, visit the GRI website: globalreporti |
governance | Governance 102-36 Process for determining a. Process for determining remuneration. Proxy Statement, pp. 11–13
continued remuneration b. Whether remuneration consultants are involved in
determining remuneration and whether they are
independent of management.
c. Any other relationships that the remuneration
consultants have with the organization.
102-38 Annual total a. Ratio of the annual total compensation for the Proxy Statement, p. 28
compensation ratio organization’s highest-paid individual in each country
of significant operations to the median annual total
compensation for all employees (excluding the
highest-paid individual) in the same country.
102-39 Percentage increase a. Ratio of the percentage increase in annual total Proxy Statement, p. 28 |
governance | GRI 205: 205-2 Communication and a. Total number and percentage of governance body Anti-corruption policies are communicated to 100% of
Anti-corruption training about anti- members that the organization’s anti-corruption policies governance body members and employees, all of whom
continued corruption policies and procedures have been communicated to, broken receive training on the subject. They are not specifically
and procedures down by region. communicated to other board members. Global
b. Total number and percentage of employees that the Sanctions Compliance ensures that the appropriate
organization’s anti-corruption policies and procedures vendors are aware of Cintas’ policies. As necessary,
have been communicated to, broken down by employee suppliers are compliant with Cintas’ policies or provide
category and r |
governance | d. Total number and percentage of governance body
members that have received training on anti-corruption,
broken down by region.
e. Total number and percentage of employees that have
received training on anti-corruption, broken down by
employee category and region.
205-3 Confirmed incidents a. Total number and nature of confirmed incidents No incidents have occurred, to date.
of corruption and of corruption.
actions taken b. Total number of confirmed incidents in which
employees were dismissed or disciplined
for corruption.
c. Total number of confirmed incidents when contracts
with business partners were terminated or not renewed
due to violations related to corruption.
d. Public legal cases regarding corruption brought
against the organization or its employees during the
reporting p |
bribe | Minimum Standards (BMS), Immediate that have the potential to elicit bribery
COVID-19’s impact on travel restrictions They are reviewed using a qualification
Action (IA), and Corrective Action or corruption activities are identified
and health and safety necessitated some survey to determine if they may supply
(CA). The report outlines the corrective for additional anti-corruption training.
temporary adjustments to some elements us components, products, or goods
measures required for any finding, with This annual training is overseen by our
the potential for a follow-up audit to
of our audit process.
CCO and separate from other GSC
manufactured using conflict minerals.
Those identified are enrolled in our
document compliance. Once corrective As a result, we also conducted fewer training modules.
Conflict Mineral Tr |
bribe | ANTI-BRIBERY AND CORRUPTION partners directly involved in our business
(CEO, 2003-2021) activities who have the potential to
complete three different annual training Under the direction of our senior
elicit bribery or corruption activities.
courses focusing on ethics and integrity: management’s annual Enterprise Risk
We are committed to interacting with Code of Conduct and Business Ethics, Assessment, our Risk & Compliance Those employee-partners are required
our customers, employee-partners, Workplace Harassment Prevention, Department conducts annual reviews of to undergo additional anti-corruption
competitors, coworkers, shareholders, and Workplace Violence Prevention. our business operation for corruption training, and we perform audits on
vendors, |
bribe | 205-01 Operations assessed for risks related to corruption Governance > Ethics and Integrity > Anti-Bribery and Corruption
205-02 Communication and training about anti-corruption policies Governance > Ethics and Integrity > Anti-Bribery and Corruption
and procedures
Anti-competitive Behavior
206-01 Legal actions for anti-competitive behavior, anti-trust, and Governance > Ethics and Integrity
monopoly practices
Tax
207-01 Approach to tax Governance > Tax
207-02 Tax governance, control, and risk management Governance > Tax
207-03 Stakeholder engagement and management concerns related to tax Governance > Tax
About Cintas > Stakeholder Engagement
Materials
301-03 Reclaimed products and their packaging materials Environment > Waste and Materials Use > SPOTLIGHT: Materials Innovation
Energy
302-01 Energy consumption within the organization Environment |
corruption | anti-corruption requirements. the potential new supplier or facility and
Honduras, India, Kenya, Malaysia,
triggers a social compliance exam.
Mexico, Nicaragua, Pakistan, Philippines,
Portugal, and Vietnam.
49 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Before the assessment process Once a supplier is certified as a Global the risk of child labor, human trafficking, including Global Supply Chain Suppliers,
begins, some situations – including Supply Chain Supplier, they are subject and modern slavery, as well as issues can raise concerns during the annual on-
geographic location or types of goods to annual compliance audits – similar concerning conflict minerals. site compliance audit, or through their
being manufactured – may |
corruption | Through Cintas’ anti-corruption training
of Conduct through a CAP. certification for suppliers holding current
program, GSC employee-partners who
Global Supply Chain Suppliers to
third-party certifications or with the Cintas identify suppliers that may use conflict
These findings are categorized as Below are directly involved in business activities
Desktop Remote audit process. However, minerals in their production processes.
Minimum Standards (BMS), Immediate that have the potential to elicit bribery
COVID-19’s impact on travel restrictions They are reviewed using a qualification
Action (IA), and Corrective Action or corruption activities are identified
and health and safety necessitated some survey to determine if they may supply
(CA). The report outlines the correctiv |
corruption | e for additional anti-corruption training.
temporary adjustments to some elements us components, products, or goods
measures required for any finding, with This annual training is overseen by our
the potential for a follow-up audit to
of our audit process.
CCO and separate from other GSC
manufactured using conflict minerals.
Those identified are enrolled in our
document compliance. Once corrective As a result, we also conducted fewer training modules.
Conflict Mineral Training seminar so
actions are supported with proper audits of low- to medium-risk Global
Reporting Concerns they understand our Conflict Minerals
documentation, the supplier or facility is Supply Chain Suppliers, and waived audit
We provide several means for both Policy, and must also report their conflict |
corruption | our insistence on honesty Business Ethics on their first official day • Anti-Corruption Training – Employee- chain are aware of our policies and
partners who could potentially interact expectations, which are spelled out
of employment with us. They also receive
and integrity from every
a booklet containing the Code at their
with a foreign official or representative in our Vendor Code of Conduct. Our
• PCI Training – Employee-partners who vendors’ compliance is monitored
partner in the company.” orientation session and must sign an
acknowledgment that they have received
could have access to credit card data through annual third-party audits.
S cott Farmer,
and understand the training. Every year, we identify employee-
E xecutive Chairman
Additionally, employee-partners must
ANTI-BRIBERY AND CORRUPTION partners directly involve |
corruption | elicit bribery or corruption activities.
courses focusing on ethics and integrity: management’s annual Enterprise Risk
We are committed to interacting with Code of Conduct and Business Ethics, Assessment, our Risk & Compliance Those employee-partners are required
our customers, employee-partners, Workplace Harassment Prevention, Department conducts annual reviews of to undergo additional anti-corruption
competitors, coworkers, shareholders, and Workplace Violence Prevention. our business operation for corruption training, and we perform audits on
vendors, government and regulatory These are either completed through an risks. We have not identified any instances a regular basis to support ongoing
agencies, and the communities in online training-on-demand platform of co |
corruption | culture of compliance, and promote Further, management-track employee- known for corruption; using customs We believe in adhering to all laws
our stakeholders’ understanding of our partners also receive a copy of The Spirit brokers or carriers to import products and regulations, including those that
principles and values related to ethics Is The Difference. Written by our Founder from international suppliers; and potential promote free and fair competition in
and integrity. Richard “Dick” Farmer, the book further vendor or third-party relationships. the marketplace.
We provide confidential, retaliation- articulates our corporate culture and how Additionally, our expansive Business Our Code of Conduct and Business
free outlets for internal and external it functions within our Code of Conduct Ethics Corporate Position covers many E |
corruption | thics and our Anti-Corruption
stakeholders to report concerns or and Business Ethics. topics and concerns and outlines our Corporate Policy require all employee-
apparent issues. Additional position- or responsibility- expectations of our employee-partners partners to comply with all laws and
We believe we conduct our business the specific training is required annually for in those situations. This policy is regulations related to competition and
right way, perpetuating the highest levels various employee-partners, including: communicated to our governance body antitrust, including those that prohibit
and employee-partners, who receive collusion to manipulate a market. Topics
of ethics and integrity.
• AB1825 Training – Employee-partners
training on its contents. in th |
corruption | POLITICAL ACTION Guided by our Anti-Corruption The non-partisan group reviews potential Donations are not made to
Cintas regularly and proactively engages
Corporate Policy, we have established political contributions with six criteria: presidential candidates.
a formal process that dictates how
with a cross-section of policymakers at • Strategies important to Cintas During the 2020 election cycle, the
we may engage with policymakers
the federal and state levels, as well as • Cintas employment presence in their PAC made donations to 12 political
and any related organizations. In
regulatory bodies, about four issues district/state entities totaling $58,000. In this figure,
cooperation with approved third-party
central to our business: infrastructure, • A reasonably high level of approval |
corruption | Our Anti-Corruption Corporate Policy
are targeted at communicating Cintas’
outlines the manner in which we may
positions on existing and potential
engage with political candidates and
legislation and regulations; providing
representatives. As a company, Cintas
perspective on regulatory measures
Corporation does not contribute to
that affect our business; and providing
political candidates.
testimony under oath when necessary
to relay our experiences, positions, and The PAC supports political contributions
perspectives about topics important on behalf of our employee-partners and
to our business. We conduct this work is funded entirely by voluntary personal
through a variety of means, including donations from our employee-partners.
face-to-face meetings, memos |
corruption | Anti-Corruption
205-01 Operations assessed for risks related to corruption Governance > Ethics and Integrity > Anti-Bribery and Corruption
205-02 Communication and training about anti-corruption policies Governance > Ethics and Integrity > Anti-Bribery and Corruption
and procedures
Anti-competitive Behavior
206-01 Legal actions for anti-competitive behavior, anti-trust, and Governance > Ethics and Integrity
monopoly practices
Tax
207-01 Approach to tax Governance > Tax
207-02 Tax governance, control, and risk management Governance > Tax
207-03 Stakeholder engagement and management concerns related to tax Governance > Tax
About Cintas > Stakeholder Engagement
Materials
301-03 Reclaimed products and their packaging materials Environment > Waste and Material |
tax | 61 Tax Policy 64 Regulatory Compliance
62 Public Policy
65 APPENDIX
66 Definitions 71 GRI Index
67 Notes and Methodologies 78 SASB Index
68 Referenced Calculations
3 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR ESG-FOCUSED PRODUCT & SERVICE INITIATIVES
Our products and services are created with sustainability and a “Reduce, Reuse, Recycle” mentality. This approach is embedded throughout our business units:
UNIFORM RENTAL FACILITY SERVICES
• Significant water and energy efficiencies compared to traditional • Offer Green Seal-certified products
at-home laundry process • Provide “Designed for Environment” (DfE) chemicals
• Proprietary processes reduce wash chemical, water, and energy requirements • Package-free produ |
tax | • Periodic audits • Performance reviews and in-person) • Taxes
• Transparency and disclosure • Membership and participation • Climate and energy
• Materials and packaging in trade associations and policy- • Diversity and inclusion
• Innovation and idea sharing based organizations • Sustainability
• Environmental impacts • Meetings with federal- and • Trademarks
• Human rights and labor practices state-elected officials and other • Safety and health
• Supplier diversity policy influencers • Community engagement
• Supplier mentorship • Cintas Partners’ PAC
and development • Facility tours and virtual tours
15 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR CONTINUED COVID-19 RESPONSE
As the COVID-19 pandemic continued SUPPORTING OUR CUSTOMERS
throughout FY21, we expanded ou |
tax | 61 Tax Policy
62 Public Policy
63 Cybersecurity, Data, and Customer Privacy
64 Regulatory Compliance
57 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ESG GOVERNANCE
GOVERNANCE APPROACH while maintaining accountability for More information about our Board,
We believe establishing strong and
our actions and decisions. including independent board leadership
FY22 BOARD OF DIRECTORS
responsibilities and its good governance
ethical governance is foundational to As we consider our business decisions,
positions, is available in our Corporate
achieving our Principal Objective: to we leverage internal processes that More information about our Board
Governance Guidelines. Additional
exceed our customers’ expectations to include d |
tax | TAX POLICY
We are a transparent taxpayer. We are Our tax disclosures that appear in
open about the taxes we pay and our our audited financial statements are
projected effective tax rate guidance prepared in accordance with GAAP
on our financial reports and during ASC 740 and SEC reporting standards
our quarterly earnings calls, which are in all material respects. Ernst & Young,
available to the public. our independent auditing firm, examines
our tax-related disclosures as part of its
We review our tax strategy under a
low-risk methodology, and believe we
review of our SEC filings.
have a responsibility to pay our fair Cintas engages with federal and statutory
share of taxes. We are committed to tax authorities as audits arise, and we
complying |
tax | with all applicable tax laws work to maintain a transparent approach
and requirements in each jurisdiction in to all audits. If a difference in approach
which we conduct business. transpires during an audit, Cintas works
with the jurisdiction to determine a
To help ensure we identify, withhold,
report, and pay the correct tax
reasonable settlement position.
requirements and avoid potential Our tax implications and financial
compliance issues, the company benefits available from government
maintains a tax strategy created by the entities are regularly evaluated as part of
Vice President of Tax, overseen and normal business operations and decision-
approved by the Chief Financial Officer, making. In the last three fully reported
and presented to the Audit Committee |
tax | fiscal years, we received $6.7 million in tax
of the Board of Directors. Ongoing relief from the U.S. government through
risk assessments are conducted to multiple incentive programs, including
help identify and rectify any potential various employment credits. Further,
compliance issues. Pertinent changes in the last three fiscal years, we have
in regulatory policy or guidance received $20 million in tax deductions
are communicated to executive resulting from charitable donations,
management so they understand the including a total of $8 million in FY21.
business implications. We regularly utilize
We actively engage a third-party
third-party advisors to review our current
representative to assist our advocacy and
tax strategy and provide guidance.
education efforts on benefits of tax |
tax | most notably the 2017 Tax Cuts and Jobs
Act and current tax policy priorities.
61 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
PUBLIC POLICY
POLITICAL ACTION Guided by our Anti-Corruption The non-partisan group reviews potential Donations are not made to
Cintas regularly and proactively engages
Corporate Policy, we have established political contributions with six criteria: presidential candidates.
a formal process that dictates how
with a cross-section of policymakers at • Strategies important to Cintas During the 2020 election cycle, the
we may engage with policymakers
the federal and state levels, as well as • Cintas employment presence in their PAC made donations to 12 political
and any related organizations. In
regulatory bodies, a |
tax | labor, taxes, and trade. their district/state represented – including $46,000 to
of Corporate Affairs is responsible
• Supported legislation or voted in a candidates or election organizations
We also collaborate with corporate, for developing and maintaining the
manner that is favorable to Cintas’ representing Republicans and $12,000
industry, and trade organizations to pertinent relationships and procedures
determine positions on these issues to to confirm adherence to the company’s
continued economic growth to candidates or election organizations
• Maintained integrity and professional representing Democrats. This included
support continued growth. Given the advocacy process and coordinates all
size of some of these organizations and communications b |
tax | 201-04 Financial assistance received from government Governance > Tax
Market Presence
202-01 Ratios of standard entry level wage by gender compared to local By the start of our FY22, we expect the entry-level minimum wage paid to U.S.-based
minimum wage hourly employee-partners will be a minimum of $15.70 per hour. That figure can be
adjusted upward as necessary based on work experience, the geographic location of the
employee-partner’s work facility, and/or other overriding local or state minimum wage
requirements. This figure is higher than the current U.S. federal minimum wage for non-
tipped employees ($7.25 per hour), which went into effect in 2009.
73 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DISCLOSURE DESCRIPTION PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Indirect Econo |
tax | Tax
207-01 Approach to tax Governance > Tax
207-02 Tax governance, control, and risk management Governance > Tax
207-03 Stakeholder engagement and management concerns related to tax Governance > Tax
About Cintas > Stakeholder Engagement
Materials
301-03 Reclaimed products and their packaging materials Environment > Waste and Materials Use > SPOTLIGHT: Materials Innovation
Energy
302-01 Energy consumption within the organization Environment > Climate and Energy > Reducing Energy Use
302-03 Energy intensity Environment > Climate and Energy > Reducing Energy Use
302-04 Reduction of energy consumption Environment > Climate and Energy > Reducing Energy Use
302-05 Reductions in energy requirements of products and services There were no significant c |
governance | PREPARE FOR THE FUTUREABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
2021 HIGHLIGHTS
ENVIRONMENTAL HIGHLIGHTS SOCIAL HIGHLIGHTS AWARDS AND RECOGNITION
Lowered Spent $387.7 million with Ranked No. 410 on the
our water diverse suppliers, representing 2021 Fortune 500, our highest-
consumption 16.9% of our total supplier ever ranking
by 5.1% spend – both company records
Reduced our from FY20
Ranked No. 6
total energy on Selling Power’s
Donated $3.8 million
usage by worth of PPE and other Recognized as “50 Best
6.9% from safety products to local one of Forbes’ Companies
FY20 Lowered our communities to support “Best Employers to Sell
employee-partners’ COVID-19 programs for Diversity” For” list
Diverted 94.4% of Total Recordable
our waste from landfill Injury Rate (TRIR) to Named a “Best Place to Work
t |
governance | and Governance (ESG) Report contains forward- statements are subject to various risks, uncertainties, for recycled materials; the capital and operating cost we currently believe to be immaterial may also harm
looking statements. The Private Securities Litigation potentially inaccurate assumptions, and other factors of implementing recycling and waste management our business. Investors should not interpret the
Reform Act of 1995 provides a safe harbor from civil that could cause actual results to differ from those technologies; and the risks, uncertainties, and other disclosure of any risk factor to imply that the risk has
litigation for forward-looking statements. Forward- set forth in or implied by this ESG Report. Factors matters included in our Annual |
governance | 2 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
WELCOME
TABLE OF CONTENTS
Welcome to our 2021 Environmental, Social, and Governance (ESG) Report, the latest annual report
2 ABOUT CINTAS in which we share our ESG journey, including our performance, successes, and opportunities, with
2 2021 Highlights 10 About This Report our shareholders, customers, employee-partners, communities in which we do business, and other
2 Forward-Looking Statements 11 This Is Cintas interested parties.
3 Welcome 12 The Spirit Is The Difference
4 Our ESG-Focused Product & 14 Stakeholder Engagement As we committed to doing in 2020, we have As we progress on our ESG journey, we expect
Service Initiatives 16 Our Continued expanded our reporting this year to include to continue expanding our reporting, ins |
governance | 32 Our People 43 Labor Relations • Governance, Ethics, and Integrity Foundations
33 D iversity, Equity, and Inclusion 45 Human Rights
35 Talent Recruitment 46 Safety and Health
36 Talent Retention 49 G lobal Supply Chain and
37 Compensation Supplier Relations
38 P erformance and Advancement 51 Supplier Diversity
39 Training and Development 52 Local Communities
41 E mployee-Partner Engagement
57 GOVERNANCE
58 ESG Governance 63 C ybersecurity, Data, and
60 Ethics and Integrity Customer Privacy
61 Tax Policy 64 Regulatory Compliance
62 Public Policy
65 APPENDIX
66 Definitions 71 GRI Index
67 Notes and Methodologies 78 SASB Index
68 Referenced Calculations
3 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR ESG-FOCUSED PRODUCT & SERVICE INITIATIVES
Our products |
governance | 4 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ESG IS CENTRAL TO CINTAS
The concept of corporate social brought them home to wash, and sold of the garments, wash and dry them end-of-life products and reducing the
responsibility has evolved in recent the clean rags back to companies in more responsibly and sustainably than overall use of natural resources. They
decades. Where the concept once the Cincinnati area. Unknowingly, they employees could at home, and preserve also introduced products and services
explained a company’s commitment created a local circular economy and the natural resources in the process. His that help our customers keep their own
to philanthropy and responsible social resourceful spirit that Cintas is known for vision launched the company on its faciliti |
governance | environmental, social, and governance –
burgeoning work uniform rental Further expansions into facility services,
or ESG – strategy is a relatively recent
operation in 1959. This implemented the first aid and safety, and fire protection
and evolving concept.
same business model, and provided an under subsequent CEOs – Bob Kohlhepp
At Cintas, we view our entrance into formal easy, affordable, and sustainable option (1996-2003) and Dick’s son, Scott Farmer
ESG reporting and the development of for companies to outfit their employees. (2003-2021) – deepened the company’s
our company-wide ESG strategy as the By renting businesses their uniforms, model further. Cintas’ new offerings
Scott Farmer (CEO 2003-2021), Dick Farmer (CEO
latest steps in our progression. he realized we could |
governance | 5 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
WHO WE ARE AND WHAT WE DO We expect ethical interactions with all
stakeholders (see pg. 14). We also insist
Dick Farmer – who we credit as the
on being a good corporate citizen and
Founder of the modern-day Cintas –
steward by governing ourselves with the
documented and formalized our
core principles of accountability, fairness,
corporate culture in his book The
Spirit Is The Difference (see pg. 12). His
ethical behavior, and compliance.
philosophy still carries forward today and In short, we believe we conduct our
underpins our business. business the right way.
The Spirit Is The Difference is a handbook
describing how we run our business. Its TODAY’S CINTAS
central themes are collaboration and
Doc and Amelia’s ingenuity and
commo |
governance | 6 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
WHAT’S NEXT? In August, we created our new Vice developing ESG landscape. We expect Our company has been based in ESG-
President of ESG and Chief Compliance to identify further opportunities to related principles since the beginning.
The concepts of operating a sustainable
Officer (CCO) position and finished a reduce our environmental impact, Each new chief executive introduced
business and making environmentally
multiple-department reorganization and to make even greater operational initiatives that strengthened our
conscious decisions are not new to
to form a new Risk & Compliance reductions in energy, emissions, water, commitments to the environment, our
us. We have continually improved
our environmental management, our
Departm |
governance | activities, monitoring, and compliance. health, and our governance objectives,
for our future on the following pages.
this holistic measure of business has As our enterprise-wide assessment
among other areas.
evolved, we’ve been watching, listening, continues, we will continue to review
and learning. our processes in the context of the
Now we’re joining the conversation in
a more meaningful way: we’re defining,
measuring, and creating formal
strategies centered on ESG principles.
What we’ve accomplished so far is
only the beginning. We’ve already
been successful, but we’re still at the
start of our journey – one that will be
further rooted in ESG platforms and
concepts. One of our core company
values (see pg. 13) is positive discontent.
It pushes us to do more, be better,
and have a greater positive impac |
governance | 7 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
A MESSAGE FROM OUR CEO
The word “unprecedented” has become As a company, we believe this is a natural
“We believe this is an far too common in the last two years. next step for us since the business model
we have utilized for almost a century is
First, we have rallied against a global
excellent opportunity to based on sustainable business practices
pandemic that has challenged us to
talk about what we’ve focus on health and safety in new and
and a “Reduce, Reuse, Recycle” mindset.
innovative ways. Communities have come Given our business and industry, we
accomplished and the
together to withstand wave after wave of understand that achieving Net Zero is
a deadly virus as our global scientific and ambitious, but we are committed to |
governance | 8 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
The scientific and research communities Doc and Amelia Farmer’s story is central A FEW WORDS FROM OUR
are laser-focused on the same issues. We to our ESG story. Each of our leaders who “This will guide VICE PRESIDENT OF ESG AND CCO
believe Cintas can leverage their findings have followed has built on their ingenuity
us into the future ESG is a quickly evolving area with
and breakthroughs, combine them with and engrained sustainability and other
increasing attention from many different
our own innovations, and drive further ESG concepts deeper into our business.
and continue to stakeholders, and I’m honored to be
improvements on our environmental The innate connection between smart
tasked with leading Cintas’ activities
and societa |
governance | 9 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ABOUT THIS REPORT
The 2021 Cintas ESG Report is the Data included in this report is updated • Further, water data has been
company’s second such report to be through the close of FY21, unless otherwise converted to megaliters (ML) for our
FURTHER INFORMATION
published and includes information and noted. Cintas is not obligated to update 2021 reporting after being reported in
performance data from June 1, 2020, the 2021 report after its initial release on kilogallons (kgal) in our 2020 report. • FY21 Cintas Form 10-K
through May 31, 2021, unless otherwise November 16, 2021, but reserves the right • Finally, we have created a new intensity
• 2021 Proxy Statement
stated. We intend to produce this to make edits if necessary. metric th |
governance | Social and governance topics cover our has demonstrated continued
emissions calculations.
entire organization.
• Our reported energy and emissions
improvements from FY19 through FY21.
However, the COVID-19 pandemic’s effect
All financial references and data are data sets were expanded to include
on our performance and data cannot be
noted in U.S. dollars. We further define all U.S. Rental locations6 in operation
completely isolated from other efficiency
terms used and annotate additional during the reporting periods –
and process changes that contributed
references and reporting methodologies including branches. In 2020, we
to performance improvements. The
in the Appendix at the end of this report. reported environmental data only for
COVID-19 pandemic began in |
governance | 10 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
THIS IS CINTAS
Cintas Corporation helps more than Operating in North America, our
one million businesses of all types and customers range from small service
FY21 IN NUMBERS
sizes get Ready for the Workday® with and manufacturing companies to major 460
operational
confidence. Our products and services corporations employing thousands of
help keep our customers’ facilities and people. With such a diverse customer $ $7.11 billion in sales facilities
employees clean, safe, and looking base, no single customer accounts for Approximately
their best. more than 1% of our total revenue.
40,000
$ $1.11 billion net income
The origins of our family business We service our customers through four employee-
(see pg. 5) date back to 1929 and the |
governance | 11 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
THE SPIRIT IS THE DIFFERENCE
Our guiding principles are carefully partner describes the mutual trust and OUR PRINCIPAL OBJECTIVE This statement is woven throughout our
outlined in The Spirit Is The Difference, a respect we have for each other, and the entire company, gives our organization
Dick Farmer believed that organizations
book based on the personal insights of values and culture responsible for our direction, and clearly defines our
needed a guiding principle on which
our Founder Richard “Dick” Farmer. The accomplishments. Considering each expectations and standards for our
to base all decision-making and that
publication is referenced frequently by other as partners in our collective success management team. Decisions made |
governance | 12 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR CORPORATE CHARACTER • Full compliance with all governmental • Professional appearance: We have • Positive discontent: We’re never
laws and regulations: After first a dress code at all our facilities and satisfied with the status quo, or
We’ve carefully considered the
making sure that we understand the believe outward appearances of our content to leave things as they are.
characteristics and behaviors we want
governmental laws and regulations that people, facilities, and vehicles say a lot We’re always seeking improvements
and aspire to exhibit to each other, to
our customers, and to the communities
we face in business, and our options in about us and our company. to our processes, systems, products,
in which we do business. T |
governance | 13 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
STAKEHOLDER ENGAGEMENT
Our Principal Objective (see pg. 12) clearly identifies the three groups we consider our primary stakeholders: customers, employee-partners, and shareholders. At Cintas, each
is equal to one another. In addition, we have a diverse group of other stakeholders around the world that matter to us and our business. Their opinions and interactions with us
provide us with other viewpoints that inform our business decisions. These groups include the people who manufacture our products, the communities in which we do business, the
not-for-profit organizations we engage with, and the government officials who influence and set public policy. Below is an overview of our key stakeholder groups and our engagement
activiti |
governance | • Social media Corporate Characteristics, • Social media monitoring • Governance issues
• Engagement surveys and Policies and Procedures and engagement • Our management of COVID-19-
• Listening sessions • Our ongoing management • cintas.com and cintascares.com related business practices
• Direct Line/Hotline (confidential and of COVID-19-related issues • Marketing efforts, including
third-party monitored) national television, radio, and online
• Cintas Spirit Day and other holiday ad campaigns
and milestone celebrations
and acknowledgments
• Volunteerism
• Local committee participation
14 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SHAREHOLDERS PHILANTHROPIC AND COMMUNITY ORGANIZATIONS
HOW WE ENGAGE TOPICS RAISED HOW WE ENGAGE TOPICS RAISED
• Annual meeting of shareholders • Financial perf |
governance | • Quarterly earnings conference calls • Corporate governance and forums • Diverse and inclusive workforce
• Investor relations calls as requested • Executive compensation • Collaborations to advance and workplace
• Investor conferences and forums • ESG reporting shared priorities • Environmental impacts
• Dividends • Environmental impacts • Strategic relationships
• Media engagement • Diversity and inclusion • Philanthropic investments
• Facility tours and virtual tours • Human capital management • Community dialogues
• Proactive visits to shareholders • Human rights and labor practices
(in-person and virtually) • Supply chain management
• Data security and privacy
• Civic activity
• Community and philanthropic activities
• Our continuing response to COVID-19
GOVERNMENT OFFICIALS
SUPPLIERS AND PUBLI |
governance | 15 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR CONTINUED COVID-19 RESPONSE
As the COVID-19 pandemic continued SUPPORTING OUR CUSTOMERS
throughout FY21, we expanded our
To remain a reliable partner in our
commitment to supporting our employee-
partners, our customers, and the
customers’ ability to get Ready for
the Workday®, we:
communities in which we do business.
Through our wide range of essential • Continued delivering essential
services and products, we were committed products and crucial services to
to doing our part to support our nation’s front-line businesses throughout
response to the pandemic. the pandemic, including hospitals,
laboratories, food suppliers, grocery
stores, and utility services
PROTECTING OUR EMPLOYEE-PARTNERS
• Accelerated production and expanded |
governance | 16 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ENVIRONMENT
18 Environment
20 Climate and Energy
25 Water Stewardship
29 Waste and Materials Use
17 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ENVIRONMENT
Environmental consciousness is in our will identify strategies to reduce our vehicles that don’t consume carbon- effort to further lessen our overall water
roots, with our company origins in a Scope 1 and 2 GHG emissions and based fuel, and we’re rolling out “Smart withdrawal rates. Our “Zero Waste
business practice that reclaimed and explore opportunities to reduce Scope 3 Truck” technology to improve our route Program” (see pg. 29) is helping to divert
reused shop rags from local factories. GHG emissions from our supply chain. planning, which wil |
governance | 18 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
THE IMPACT OF COVID-19 ON The effect of these temporary conditions
INTENSITY MEASURES increased the number of rinse cycles
RECALCULATING INTENSITY VALUES
necessary – as well as the water
In FY21, our emissions, energy, and
temperature required – to achieve At Cintas, we have begun calculating environmental performance. This
water intensities all saw reductions of
the necessary level of cleaning. This our environmental intensity values will help us identify the impacts of
at least 5.6% over our FY20 values when
increased both our water and our energy for energy, emissions, and water in operational improvements while we
indexed by our new revenue metric.
usage in FY21. While our total poundage relation to million dollars in revenue. |
governance | 19 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
CLIMATE AND ENERGY
We recognize climate change is a global EMISSIONS DATA AND PERFORMANCE
issue and is something businesses have to
consider and address moving forward. The
U.S. RENTAL FACILITIES AND FLEET17 UNITS FY19 FY20 FY21
risks we face at Cintas are broad and can
have both financial and physical impacts, Scope 1 (gross direct) MTCO2e 428,551 403,030 377,772
on both ourselves and our customers. Scope 2 (indirect) MTCO2e 116,005 103,285 88,857
With an interest in protecting the future Total Scope 1+2 Emissions MTCO2e 544,555 506,315 466,628
of our environment, our communities,
Annual Scope 1+2 Emissions Reductions MTCO2e n/a 38,240 39,687
and our business, we have implemented
% Annual Change in Scope 1+2 Emissions % n/a -7.0% |
governance | 20 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SPOTLIGHT: SMART TRUCKTECHNOLOGY
With a service fleet as large as As Smart Truck technology was Our Smart Truck technology has
ours – which makes many stops along installed in our trucks and we began already demonstrated the potential
millions of miles – we explored how analyzing data, we observed reductions of efficiency gains from changing
small changes to routes and driver in idle times as our drivers were more behaviors. As we dig deeper into the
habits could have big impacts on our educated about the system. As the data from this technology, we expect to
outcomes. This work culminated in program becomes fully operational identify opportunities for even greater
our Smart Truck technology, launched across our Rental division an |
governance | 21 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SPOTLIGHT: TRANSFORMING OURFLEET
With one of the largest corporate fleets by the California Air Resources Board, conditions, rather than the start- By January 2022, we expect to deploy
in North America, we have more than which requires that various types of and-stop situations our route-based 13 electric vehicles from three different
14,000 vehicles on the road, consisting vehicles must meet specific exhaust model presents. producers into service. Six Rental and
of our familiar white service trucks and emissions standards.
Additionally, prior efforts to use hybrid
two First Aid & Safety locations in the
vans and our lease-back employee- Northeast and Upper Midwest, and on
Welcoming Electric Vehicles vehicles also faced hurdles bec |
governance | 22 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
REDUCING ENERGY USE ENERGY DATA AND PERFORMANCE
Energy is vital to our business, and
using it efficiently is critical to our long- U.S. RENTAL FACILITIES AND FLEET UNITS FY19 FY20 FY21
term success. It is also part of our role
Total Energy Consumption GJ 8,102,045 7,615,622 7,093,273
as responsible corporate citizens to
% Change YOY % n/a -6.0% -6.9%
seek reductions in our overall energy
consumption and adopt more efficient Electricity GJ 934,117 886,558 799,575
practices so our energy goes further.
Natural Gas GJ 4,122,243 3,862,060 3,587,198
Our ongoing commitment to the
Propane GJ 17,577 14,146 19,507
environment and the communities in
which we do business is evident from Gasoline GJ 1,801,652 1,836,400 1,843,892
our processes |
governance | 23 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SPOTLIGHT: MAKING THE SWITCH TO LEDLIGHTING
With almost 500 locations of all sizes With about 60% of the locations
across the United States and Canada, we participating in the current company-
have a lot of facility square footage that wide project already fully converted,
needs appropriate lighting. But that also the wide-scale LED lighting initiative
means we have significant energy use has reduced our GHG emissions by
from our lighting. almost 7,500 metric tons a year –
which represents a 5% reduction in
In FY19, we kicked off a company-wide
our electricity use and our Scope 2
project to lower our energy use at some
emissions. Our energy use should
of our most energy-intensive locations.
continue to decrease as the wide-scale
T |
governance | 24 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
WATER STEWARDSHIP
Water is a central resource to our Water Conservation vendor, WSI, to develop more efficient Wash chemistry developments like the
business, and a necessary input to We’re proud of our water-conservation wash formulas has been critical in helping Clearpath and, most recently, TRUpathTM
perform our services. Because of our efforts, and we know our commitment us lower our gallons-per-pound metric. formulations have helped us lower our
reliance on water, we recognize our has had a larger impact on the entire water usage even more. TRUpath™ alone
Early on in our journey, locations in
responsibility to minimize our water draw industry. Throughout the last few has helped us reduce our gallons-per-
water-stressed areas f |
governance | 25 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Operational Improvements Just as Doc and Amelia Farmer proved While we have reuse capabilities our business in an entirely closed-loop
and Efficiencies during the Great Depression, a little integrated in some of our locations, water system, but we believe we can
Technology has propelled us far ingenuity goes a long way in making a challenges exist that limit greater leverage reuse technology to achieve a
along our water journey, but our big impact. As we continue to identify adoption within our wash process. We greater capacity than we do now.
improvements in water usage have and implement Operational Excellence, will never be able to reuse 100% of our
We’ve made fantastic advances in our
also been supported by traditional we less |
governance | 26 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
REDUCING OUR WATER NEEDS WATER USE DATA AND PERFORMANCE
While our laundry process is on average
84% more water efficient than traditional U.S. RENTAL FACILITIES UNITS FY19 FY20 FY21
at-home laundry processes,20 we are
Total Water Withdrawal ML 10,355 9,591 8,861
constantly working to reduce our
Total Water Withdrawal – Stressed Regions ML 2,308 2,139 2,021
water footprint.
Annual Change in Water Withdrawal ML n/a -764 -730
In FY21, our U.S. Rental operations
withdrew 8,861 megaliters21 (ML) of % Change YOY % n/a -7.4% -7.6%
freshwater – 7.6% less than FY20 and % Change from Base Year (FY19) % n/a -7.4% -14.4%
14.4% less than FY19.
Total Water Discharge ML 9,142 8,471 7,798
The water used in our U.S. Rental Total Water Discharge – |
governance | 27 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
MANAGING WASTEWATER
In FY21, we returned 7,798 ML – or 88% – SPOTLIGHT: OPERATIONAL EXCELLENCE INACTION
of the freshwater we withdrew to local
water bodies.
While technology has played a key have considerably reduced our water The added information helps plant
Our laundering processes generate far
role in our water journey – and will still withdrawals and energy use. Being management identify potential
less wastewater than home laundering
be important as we continue honing precise in what we do and how we inefficiencies, holds capacity specialist
because we use less water to launder
conservation methods and innovating do it has had a major impact. We’ve employee-partners more accountable
the same amount of product. We use an
our r |
governance | 28 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
WASTE AND MATERIALS USE
Due to the nature of our business, Through our Design Collective business,
we work with a significant amount of we are developing new ways to reuse and
SPOTLIGHT: ZERO WASTEPROGRAM
material. Taking a responsible approach recycle material. Our goal is to develop
to the way we source, dispose of, circular – and even closed-loop –
and manage our inputs makes sound economies that reduce our reliance on
Our Zero Waste Program began in landfills. The Mason, Ohio, distribution
business sense. It is also key to our raw materials and meet growing interest
FY13 in an effort to decrease our center, which is attached to Cintas’
ongoing efforts to create a broader in sustainable garments (see pg. 30).
waste destined for |
governance | 29 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SPOTLIGHT: MATERIALSINNOVATION
Our Design Collective business • Sustainable textiles: We are • Recycling apparel: In partnership • Cintas-branded closed-loop
(recorded as Uniform Direct Sales expanding the use of recycled with Martex Fiber, we collect apparel: We can imagine a future
in our financial filings) creates and polyester and eco-friendly, customers’ end-of-life garments to that includes Cintas-branded
sells custom uniform programs, with sustainable textiles, which are be repurposed into new commercial product lines produced entirely in a
customers that include some of the currently available in more than products. This type of marled closed-loop process. Stakeholders
world’s largest companies and travel 100 of our unifor |
governance | 30 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SOCIAL
32 Our People
33 Diversity, Equity, and Inclusion
35 Talent Recruitment
36 Talent Retention
37 Compensation
38 P erformance and Advancement
39 Training and Development
41 E mployee-Partner Engagement
43 Labor Relations
45 Human Rights
46 Safety and Health
49 Global Supply Chain and Supplier Relations
51 Supplier Diversity
52 Local Communities
31 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR PEOPLE
At Cintas, our employee-partners are OUR CORPORATE CULTURE We believe our employee-partners and providing fulfilling professional
the heart of our company. Our policies AND CHARACTER are our best advocates and brand opportunities that create a path for
and procedures instruct and guide us
Our except |
governance | 32 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DIVERSITY, EQUITY, AND INCLUSION
We have five components to our overall WHY DIVERSITY IS IMPORTANT Almost our entire workforce – 99.3% – are transition service members to civilian
Diversity, Equity, and Inclusion strategy full-time employees and almost 36% are life, including accommodations from G.I.
We believe bringing employee-partners
at Cintas:
together with different perspectives, life
female. Our company demographics are Jobs (Top Military-Friendly Employers)
also representative of the communities and Military Spouse (Top Military Spouse
• Employee-Partner Engagement – experiences, and backgrounds benefits
Recruitment, retention, development, everyone. We’ve found that when you
in which we operate, as almost 43% of Friendly |
governance | • Governance – Inclusion policies that together, everyone benefits from the with disabilities have also garnered
provide equal opportunity for all sharing of perspectives and experiences, Our efforts on diversifying the racial recognition from the Disabled Equality
partners and applicants providing deeper insight, understanding, and ethnic make-up of our workforce Index as a “90 Score” company and the
• Corporate Citizenship – Grassroots empathy, and compassion. This leads to have been recognized with Cintas’ “Influencer Award” from Autism Speaks.
and corporate-sponsored improved ideas, solutions, and outcomes inclusion on Forbes’ “Best Employers for
Our Partner Business Resource Groups
philanthropy, volunteerism, and that better serve our customers, D |
governance | 33 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER DEMOGRAPHICS
WORKFORCE BREAKDOWNS BY GENDER TOTAL MALE FEMALE
Total Employee-Partners 40,099 25,723 14,376
Employment Type
Full-Time 39,814 25,565 14,249
Percentage of Workforce 99.3% 63.8% 35.5%
Part-Time and Other 285 158 127
Percentage of Workforce 0.7% 0.4% 0.3%
Employee-Partners by Age
Under 30 8,115 5,757 2,358
Percentage of Workforce 20.3% 14.4% 5.9%
30-50 22,051 15,138 6,913
Percentage of Workforce 55.0% 37.8% 17.2%
Over 50 9,933 4,828 5,105
Percentage of Workforce 24.7% 12.0% 12.7%
TOTAL WORKFORCE – BY EEO DEMOGRAPHICS PERCENTAGE
White 52.6%
Latinx/Hispanic 19.4%
Black/African American 13.3%
Asian 3.7%
Two or More Races 2.2%
Native American/Alaskan 0.4%
Native Hawaiian/Pacific Islander 0.3%
Not Specified |
governance | 34 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TALENT RECRUITMENT
ATTRACTING THE BEST ON-CAMPUS RECRUITING: TALENT RECRUITMENT DATA
To generate a diverse and qualified
IDENTIFYING OUR FUTURE TALENT
applicant pool, we post our positions We use a broad on-campus recruiting FY21 NEW EMPLOYEE-PARTNER HIRES TOTAL PERCENTAGE
both internally and externally. We use network for some of our positions,
Male 5,923 67.1%
various popular job boards including including our Management Trainee (MT)
Female 2,904 32.9%
LinkedIn, Indeed, Snagajob, WayUp, and and internship programs. We’ve fostered
DirectEmployers Association, as well as relationships with many colleges and Total New Hires 8,827 100%
position-specific industry sites. We also universities around the United States
use social media p |
governance | 35 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TALENT RETENTION
With approximately 40,000 employee- TALENT RETENTION DATA
partners company-wide, we have a FY21 Voluntary Turnover
dynamic and talented workforce with
skills and experience spanning hundreds
RATES VS. WORKFORCE TOTAL PERCENTAGE
of disciplines. Each person brings a
unique perspective and background to Male 4,515 11.3%
the job, and our goal is to keep talented Female 2,318 5.8%
employee-partners engaged and
Total Voluntary Turnover 6,883 17.1%
support their growth and development.
Our competitive salaries and
comprehensive benefits are attractive to BY AGE BRACKET TOTAL UNDER 30 30-50 OVER 50
prospective employees, but we stand out
Male 66.1% 23.9% 34.5% 7.7%
for our focus on professional development.
Female 33.9% 9 |
governance | 36 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
COMPENSATION
Cintas offers competitive compensation Cintas provides access to multiple THE PARTNERS PLAN AND Cintas also makes annual discretionary
packages to its employee-partners, medical insurance plans to all employee- RETIREMENT SUPPORT contributions to employee-partners’
including salaries and wages, a partners, along with dental and vision individual retirement accounts in the
The vast majority of our employee-
comprehensive benefits package, insurance coverage. Employee-partners form of profit sharing and its ESOP.
partners are eligible for our three-part
and a generous retirement program. can choose to participate in plans Contributions are approved by the
retirement program, known as the
Employee-partners are paid weekl |
governance | 37 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
PERFORMANCE AND ADVANCEMENT
Our business relies on the passion, ANNUAL PERFORMANCE REVIEWS individual development plans. Managers skill gaps that have developed within
expertise, and dedication of our have access to a wide selection of the last year. For employee-partners,
Each year, every employee-partner takes
people, and our commitment to their developmental tools and resources to annual reviews and succession planning
part in our annual performance review
career development is vital to our help employee-partners improve in many help identify skill and knowledge
process. For all salaried partners, the
company’s success.
review process includes both a self-
different areas of leadership and other opportunities. For the company, |
governance | 38 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TRAINING AND DEVELOPMENT
Ongoing training and development are at Cintas. Common required courses Management Trainee Program based, and that the mentee’s needs are
major components of a Cintas employee- include Corporate Culture and Engaging Many of our top leaders began their the focus. We feel strongly that when a
partner’s career path. Every position has Leadership; Diversity & Inclusion training; career in our MT program. In fact, our formal mentoring process is followed, the
a required curriculum of specific trainings Six Sigma training and certification; and Executive Chairman, Scott Farmer, was mentee receives the greatest benefits
and/or certifications, which Cintas Meticulous Hiring. in the very first class of MTs in 1982, |
governance | 39 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Partner Business Resource Groups to them. It’s a two-way dialogue that
Our employee-partner affinity groups we believe benefits everyone, including
are an important element in our overall our company.
human resources and human capital
Our PBRGs play a pivotal role in
strategy. We have four of these PBRGs.
developing employee-partners at various
These distinct groups align with our stages of their careers and connect
business objectives and help secure partners from similar backgrounds in
our continued competitiveness, while a supportive environment. While our
allowing the breadth of experience, skill mentor program is built on skill- and
sets, perspectives, and talents of our job-based criteria, our PBRGs are based
diverse employe |
governance | 40 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER ENGAGEMENT
We believe that our people reach their their specific worksites. The anonymous EMPLOYEE-PARTNER ENGAGEMENT SURVEY RESULTS
full potential in an inclusive environment, 50-question survey takes approximately
and that they do their best work when 20-30 minutes to complete, and also
METRIC 2015 2019
they are highly engaged with the provides opportunities to submit open-
company and their fellow employee- ended comments and feedback. Engagement Score 90% 90%
partners. As a service provider, we’ve Our employee-partner engagement Response Rate 82% 87%
seen the benefit of an engaged and
surveys have four key learning goals:
fulfilled workforce, and what it has meant
CINTAS INDEX VS. HIGH-PERFORMANCE NORMS
for ou |
governance | 41 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
WHAT WE’VE LEARNED After each survey was completed, Willis
Towers Watson analyzed the data and
Several individual themes emerged from
our management reviewed the results.
the responses.
Their evaluation was done with lenses
• Safety – We foster a safe workplace. on both the corporate and location
Our leaders address unsafe levels, with action plans developed to
conditions. Our employee-partners address opportunities identified by the
are comfortable raising concerns. survey results.
• Leadership – There is upward
Cintas’ index ranking against High
communication. They are interested
Performance Norms improved in eight
in our employee-partners’ well-being.
categories from the 2015 survey to the
They make decisions consistent with
ou |
governance | 42 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
LABOR RELATIONS
Cintas recognizes and respects the Our objection to this campaign was LOCATIONS IDENTIFIED AS RISKS MINIMUM NOTICE
principles of freedom of association not about blocking our employee-
Cintas has not identified any locations In cases where operational changes are
and our employee-partners’ right to partners’ efforts to unionize. It was
under our operation where our set to occur, we make every effort to
collective bargaining in accordance with that this particular campaign wanted
employee-partners’ right to freedom of provide as much notice as possible to our
applicable national laws. We strive to Cintas management to take away our
association and collective bargaining affected operations, given the scope of
adhere |
governance | 43 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
THE RIGHT TO SAY YES, AND keep us ahead of others in our industry, We promote world-class safety practices the growth and development of our
THE FREEDOM TO SAY NO and provide them with our company’s throughout our organization, and employee-partners, and our strong
In almost all instances, when our
competitive compensation (see pg. 37 we’ve been repeatedly recognized preference is to promote from within.
for more information). and honored for our processes
employee-partners have the opportunity We firmly believe that all of these
and commitment to a safe work
to cast their vote for association in In addition, every employee-partner reasons – and more – have provided a
environment – most notably with
a private, government-supervise |
governance | 44 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
HUMAN RIGHTS
Cintas is committed to upholding and Our requirements incorporate many key workers must be allowed a reasonable We participate in the American Apparel
promoting human rights and workplace International Labour Organization (ILO) amount of time off from their duties to & Footwear Association and Fair Labor
rights and safety, both in our own conventions, including: afford humane and productive working Association Commitment to Responsible
facilities and in those we do business conditions. We expect our Global Supply Recruitment, which requires that no
• Forced Labour Convention (No. 29)
with around the world.
• Freedom of Association and
Chain Suppliers to comply with all workers should pay for their jobs; workers
applic |
governance | 45 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SAFETY AND HEALTH
SPOTLIGHT: VPPACHIEVEMENT
We’re immensely proud of our reputation As a result, we have lowered our incident
for our world-class management of – rates dramatically, working hand in hand Our commitment to OSHA’s VPP TOP 10 VPP STAR
and innovation in – employee health with our employee-partners to create a Program has set a new standard for SITE CERTIFICATIONS
and safety. It’s a commitment that’s safer workplace. Involving our frontline U.S. companies. A total of 117 Cintas
embedded deep within our culture and workers in our safety journey has proven sites were recognized by OSHA as
VPP
is also enumerated in our ambitious to be vital to our success. VPP Star certified as of August 31,
RANK COMPANY SITES
safety visio |
governance | 46 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
The VPP certification process is rigorous. Field locations have a designated needs. Through our partnerships, we To ensure we continually focus on
To achieve certification, businesses Safety and Improvement Committee offer enhanced driver training, on-the- improving our safety journey, each of our
must demonstrate that management (SIC), which includes trained employee- road evaluations, and driver drills to business divisions holds regular safety
and employees work cooperatively – partners from across the location’s better coach and assess driving skills. and health meetings with our S&H Team.
and proactively – to prevent workplace departments, as well as the local To reinforce our safe driving policies,
accidents. They must displ |
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