PENSKE AUTOMOTIVE / 2021 ESG REPORT 21 ELIMINATING POLLUTION AND WASTE We are committed to reducing the environmental impact of waste produced at our facilities. We deploy several strategies to ensure the efficient use of resources and responsible disposal of waste. In 2020, we recycled 98 percent of the 70,000+ worn-out tires from our U.S. retail automotive operations. Managing Hazardous Substances We strive to minimize the environmental impacts of hazardous substances. In the U.K., all of our hazardous waste is collected and processed by a fully licensed ISO-accredited waste management company. Approximately 96 percent of our hazardous waste, including engine oil, oil filters, antifreeze and lead acid batteries, are recycled. The other four percent is properly disposed of by the waste management company. In the U.S., we use a third party to manage, collect and process recycling for many of the materials that go through our service departments. These products include mercury bulbs, used oil, oil filters, brake and parts waste, used antifreeze, parts solvent and drain waste. Other strategies to reduce pollution and waste include: • All U.S. dealerships participate in a closed-loop recycling program, which helped us avoid the equivalent of 13,755 metric tons of GHG emissions in 2020. • We eliminate paper at dealerships and in internal communications by using digital tools. We estimate that these changes yield annual reductions of millions of pages of paper. • We utilize water reclamation systems at many of our dealership locations that typically recycle approximately 85 percent of the water used. • Our collision and repair centers use water-based paints and solvents that are better for the environment and healthier for our team members and customers than traditional paints, which contain toxins that linger in the atmosphere, impacting people and air quality. • Our Hardware E-Cycle Policy requires that electronic equipment be disposed of through a specific certified electronics recycler which maintains a zero landfill, zero export policy of unprocessed equipment to non-OECD Countries. Offering Electric Vehicles Our new car dealerships sell the full suite of vehicles offered by our manufacturer partners, including hybrid gas/electric vehicles and pure electric vehicles (EVs). These cars and trucks are essential for reducing the emissions that contribute to climate change and improving public health. In addition to the sale of EVs, we are installing charging stations across our network to facilitate a reliable infrastructure for EV use. To date, we’ve installed more than 580 EV charging stations across the U.S. and the U.K.