Better Health for All

The company's core products, specialty vehicles, have no significant direct positive or negative health impact. In 2023, the company had 2 voluntary recalls affecting 2,896 units.

The company reduced its Total Recordable Incident Rate by 40% and its Lost Time Case Incident Rate by 75% in 2023, but these relate to employee safety, not user harm. The Shyft Group Foundation completed a $1 million decade-long pledge with a $125,000 donation to the Eaton Community Health Collaborative, and the Shyft For Good program committed to donating $100,000 to non-profit organizations focused on health, education, and the environment. The company reduced Scope 2 GHG emissions by 15% year-over-year and secured an order of 150 Blue Arc™ EV Trucks from FedEx, supporting zero-emission transportation. The company disclosed its first physical climate risk assessment and reports Scope 1 and Scope 2 greenhouse gas emissions. It also has a data security program and did not experience a material compromise to its data systems in 2023. The company has safety committees and an executive group that reviews and addresses work-related injury risks, and provides safety compliance training. It also offers specialized training courses on workplace inclusion.

Fair Money & Economic Opportunity

The Shyft Group, Inc. is a specialty vehicle manufacturer, not a financial institution.

The ethical value 'Fair Money & Economic Opportunity' is designed to assess companies that lend, insure, move, or store money, evaluating how they democratize access to fair financial services and help build intergenerational wealth. As the company's core business lies outside financial services, and the provided articles contain no evidence of it offering lending, deposit, or other financial products to consumers, all KPIs under this value are deemed not applicable. Therefore, no KPIs can be scored based on the provided evidence.

Fair Pay & Worker Respect

The company's CEO to median employee pay ratio was 65:1.

The Shyft Group has faced multiple substantiated workplace safety or health violations. In the past three years (2022-2024), there were four such violations: one in 2024 for $6,913, one in 2023 for $11,100, and two in 2022 for $10,360 and $8,136. Additionally, in 2020, The Shyft Group Duramag LLC received citations for 10 serious and 3 willful-serious OSHA violations, with proposed penalties totaling $393,992.00, which was later settled for $220,000. The company aims to provide a robust health and wellness package, including competitive medical, dental, and vision benefits, flexible spending and health savings accounts, short- and long-term disability insurance, a 401(k) retirement savings program with matching contributions, and an Employee Assistance Program.

Fair Trade & Ethical Sourcing

The company includes conflict minerals reporting requirements in its Global Supplier Standards Manual and Terms and Conditions, and maintains a formal Supplier Code of Conduct.

For 2022, 60% of material spend was covered by supplier Conflict Minerals Reporting Template (CMRT) responses. The company does not knowingly source products containing conflict minerals and has implemented the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. However, the company is unable to ascertain the country of origin of the 3TG (tantalum, tin, tungsten, and gold) used in its products.

Honest & Fair Business

The company has a formal whistleblower protection policy with a 24/7 Employee Ethics and Compliance Hotline, maintained by an external, independent company, which permits anonymous reporting and prohibits retaliation for good faith reports.

All matters reported are escalated to the Governance and Sustainability or Audit Committee for resolution, and hotline calls are monitored quarterly. The number of alleged incident reports received, investigated, and resolved increased from 22 in 2020 to 52 in 2023, with 79% of 2023 reports requiring remediation. The company has a zero-tolerance anti-bribery and corruption policy, requiring compliance with applicable laws and prior approval from the Legal Department for gifts to government representatives. It is a signatory to the United Nations Global Compact, aligning with anti-corruption principles. The Board of Directors is composed of a majority of independent directors, as defined by Nasdaq listing standards and corporate governance principles. However, a specific percentage of conflict-free board members is not provided. The company's 2023 Sustainability Report has not obtained external assurance, though its contents were subject to an internal quality review. While the company engages third parties for risk management and information security assessments, and uses the RMI's conflict minerals reporting template, there is no comprehensive independent verification of its ethical claims.

Kind to Animals

The provided articles, which are sustainability reports and summaries from The Shyft Group, Inc., explicitly state that no data related to Kind to Animals or animal welfare is present.

Therefore, there is no evidence to assess the company against any of the 'Kind to Animals' KPIs.

No War, No Weapons

The company became a signatory to the United Nations Global Compact on Human Rights in 2021 and states its respect for human rights aligns with the UN Guiding Principles on Business and Human Rights.

For conflict minerals, the company implemented the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and utilizes the Responsible Minerals Initiative (RMI) Conflict Minerals Reporting Template. For the reporting period of January 1 to December 31, 2024, 51% of material spend was represented by supplier responses to the Conflict Minerals Reporting Template. Of the 653 smelters/refiners identified by suppliers, 399 were validated as conflict-free by the RMI. The company was unable to ascertain the country of origin for the 3TG minerals.

Planet-Friendly Business

The company's total Scope 1 and 2 GHG emissions were 14,566 tCO₂e in 2023, an increase from 11,625 tCO₂e in 2022.

It publishes Scope 1 and 2 emissions but omits Scope 3. The company states it is setting sustainability targets that align with the 2˚C initiative, but there is no mention of SBTi-validated targets. The company reports 0% of its total energy consumed is renewable. Total water use was 10,567,082 gallons in 2023, a 19% year-over-year reduction. With 2023 sales of $872 million, this equates to approximately 45.6 m³ per $1M revenue. The waste diversion rate was 76.45% in 2023. The company has adopted TCFD reporting and includes disclosures on governance, strategy, risk management, and metrics/targets. It conducted its first physical climate risk assessment across 24 sites, focusing on the RCP 8.5 scenario, but does not currently incorporate scenario analysis into its sustainability program. The company reported zero environmental incidences through YTD June 30, 2024, but agreed to pay a $2 million civil penalty in 2024 for failing to comply with greenhouse gas certification requirements for 4,315 vehicles from model years 2017-2021. The company analyzed how climate change may affect 24 of its sites and operations. It donated $25,000 to the National Wildlife Federation in Q3.

Respect for Cultures & Communities

The company's total annual donations to non-profits are $100,000.

Based on 2022 revenue of $1,027 million, this represents approximately 0.0097% of revenue reinvested in local community development, which falls below the 1% threshold for the -50 tier and is closer to 0%. No cultural appropriation incidents have been reported. The company has an Ethics Hotline for reporting concerns, including those related to human rights, and states that all matters are promptly and thoroughly investigated, with 34 reports received, investigated, and resolved in 2022. However, the availability of these mechanisms is not specified as a percentage of operational sites, and the mechanisms are primarily for employees and suppliers, not explicitly for community stakeholders across all sites. There is no specific tracking of average resolution times for community complaints. The company states a commitment to interacting with indigenous communities respectfully within legal frameworks, but FPIC processes are not explicitly applicable to its operations. While the company actively engages with communities to address concerns, there is no specific community representation on governance bodies. The $100,000 in annual donations is not specifically allocated to cultural heritage organizations, making the percentage of revenue donated to cultural heritage organizations 0%. The company contributes $25,000 quarterly to non-profits, totaling $100,000 annually, which is less than 1% of its 2022 revenue, placing it in the 1-3% tier for non-core revenue distribution if we consider all revenue as core. The company ensures employees are aware of its Human Rights Statement through training and communication processes, and offers specialized training courses on workplace inclusion, but a specific percentage of employees completing cultural sensitivity training is not provided.

Safe & Smart Tech

The company reported no material compromise to any data systems in 2023 and previous years, and no expenses from information security breaches, penalties, or settlements.

While it experienced cybersecurity incidents in the past, it does not believe they had a material effect. The company received an EPA Notice of Violation on April 6, 2022, for failing to secure certain certifications on manufactured chassis and non-compliance with recordkeeping and reporting requirements related to supplier-provided chassis.

Zero Waste & Sustainable Products

In 2023, the company recycled 76.45% of its manufacturing waste.

For its products, 74% sold in 2023 were recyclable, and 59% included input materials from recycled or remanufactured content. The company implements several waste reduction initiatives, including engineering changes to reduce part weight, holding kaizen events, installing new cardboard recycling compactors, and facility upgrades. Hazardous waste management involves disposing of paint-related waste in compliance with regulations, and total hazardous waste was reduced by 37% year-over-year in 2023. Waste audits are conducted periodically at facilities to confirm adherence to environmental requirements. The company had no waste disposal violations in the past three years. Material efficiency is addressed through engineering changes to reduce part weight. The company has set minimum annual reduction targets of 3% for electricity, water, natural gas, and GHG emissions on a rolling three-year basis, normalized for production sales. Shyft partners with suppliers who share core values related to recycling and material recovery, with the ability to audit supply chain partners for compliance with sustainability objectives.