POLARIS TOGETHER IS GEARED FOR GOOD
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
INTRODUCTION For 65 years, Polaris has been driven by a desire to make a positive impact on every individual our business touches — from helping people enjoy the outdoors for work and play, to being a great place to build a career, to serving as an ethical and valued community member everywhere in the world we do business. Environmental stewardship is also important for preserving the riding lifestyle we all know and love. The Polaris Geared for Good framework signals our most focused effort yet to do all we can to elevate industries, communities and quality of life for everyone and everything within our corporate ecosystem. 3
INTRODUCTION A B C D Executive Leadership Team, left to right: James P. Williams Pamela L. Kermisch A. The Polaris Executive Leadership Team. Sr. Vice President and Chief Human Resources Officer Chief Customer Engagement and Growth Officer Steven D. Menneto B. Polaris GEM providing green transportation President of Motorcycles Scott W. Wine Christopher G. Wolf during the Super Bowl 52. Chairman and Chief Executive Officer President of Snowmobiles Michael D. Dougherty C. Building engines in our Osceola, WI plant. President of International Matthew J. Emmerich Michael F. Donoughe Vice President and Chief Information Officer Sr. Vice President and Chief Technical Officer D. 2018 Vets Ride to Sturgis with Indian Motorcycle. Lucy Clark Dougherty Sr. Vice President, General Counsel, Michael T. Speetzen Robert P. Mack Compliance Officer and Secretary Executive Vice President of Finance Sr. Vice President of Corporate Development and Chief Financial Officer and Strategy, and President of Boats/Global Todd A. Gross Adjacent Markets Vice President of Product Quality & Safety Christopher S. Musso President of Off-Road Vehicles Not Pictured: Craig A. Scanlon Kenneth J. Pucel Executive Vice President of Operations, Stephen L. Eastman President of Transamerican Auto Parts Engineering and Lean President of Aftermarket/Parts, Garments & Accessories Since our founding in 1954, Polaris has been Geared for Good. This good comes to life through our products, our practices, our partnerships, and our people. Through efforts big and small we support our values and shape Polaris, creating products, experiences, and a corporate culture we can be proud of. Under the Geared for Good framework, our corporate stewardship is encouraging employees to share ideas for improving processes, safety focused on an unwavering commitment to our employees, quality and and quality are cornerstones of Polaris culture. safety, environmental sustainability, and the communities in which we work, live, and ride. We stand behind our Employees in other ways as well. At Polaris we are proud to foster a welcoming, respectful, inclusive and engaging workplace We are passionate about creating products that enable riders to enjoy the while providing ample resources and opportunities for our employees to outdoors and build experiences they will never forget. Our connection to achieve their long-term career goals. the outdoors extends from the trails, lakes and mountains we ride on to the manufacturing facilities where our vehicles are produced, and this Across the globe, Polaris strives to be a good neighbor. From promoting linkage underlies our commitment to achieve the following Environmental safe and responsible riding to aiding veterans to various charitable Sustainability goals: donations, supporting our local Communities is a natural part of our culture. In addition to our corporate giving we support our employees 5% reduction in greenhouse gas generation by 2022 in their charitable efforts through designated volunteer time off and our Dollars for Doers programs. 5% improvement in overall energy efficiency by 2022 Our Geared for Good framework serves as a guide for us to create value 15% of energy portfolio driven by renewable energy by 2022 and best serve the interests and needs of our stakeholders. We look forward to the future – building upon our strong foundation and continuing Our Safety and Quality efforts encompass everything from designing to create impact. high quality products to delivering safe working environments for our employees. From educational resources on safe riding practices to Respectfully, Scott W. Wine Chairman and Chief Executive Officer 4
TABLE OF CONTENTS Table of Contents Introduction02 Governance and Ethics 08 Executing Environmental Responsibility 12 Reducing Our Impact 13 Innovative Products and Partnerships19 Fostering Safety and Quality 22 Employee Safety 23 Products and Features 26 Cultivating Company Culture 30 Strengthening Our Communities 38 Proudly Honoring and Supporting the U.S. Military 45 5
INTRODUCTION Polaris Industries At a Glance Established Portfolio 1954 Off-Road Vehicles / Snowmobiles 9% Motorcycles Adjacent Markets 7% 64% Employees 15% Aftermarket Approximately 5% 13,000 Boats Worldwide and more than 9,000 people in the United States, Products which includes nearly 6,000 manufacturing workers. Side-by-Side Vehicles (SxS) Moto-Roadsters Mid-Size and Heavyweight Motorcycles Ultra-Light Tactical Vehicles Snowmobiles Jeep and Truck Aftermarket Accessories Headquarters Boats Light-Duty Haulers Medina Minnesota, USA Parts, Garments and Accessories (PG&A) All-Terrain Vehicles (ATV) People Movers Personal Quadricycles Commercial Utility Vehicles (UTV) 2018 Sales NYSE Symbol U.S. Network $ 6.1 PII Support a national dealer network with 2,000+ dealers across all Billion 50 states and over 20,000 dealer employees. 6
INTRODUCTION Our ORV market share is bigger than our next three competitors combined Polaris was named Polaris employees are one of to the Fortune 500 our top five shareholders thanks list in 2018 to the company´s ESOP Polaris has connection in all 50 states Polaris Polaris was Suppliers recognized as one Dealers of America's best large employers by Forbes in 2018 Polaris holds over 1,000 Founded Roseau, MN Population - 2,800 patents worldwide in Roseau, MN, where 514 Off-Road we still 186 Other maintain our 166 Commercial, Government & Military largest U.S. 111 Snowmobiles operations to-date 111 Motorcycle 7
GOVERNANCE AND ETHICS A B C D E A. Putting on the finishing touches for Indian Motorcycle builds in Spirit Lake, IA. B. New Polaris Snowmobiles rolling down the line in Roseau, MN. C. Taking a sunset cruise on a Bennington Pontoon. D. All smiles while working on the line in Roseau, MN. E. Living the RZR Life on the trail. It’s not about winning at Polaris. It’s about winning the right way — guided by our longstanding core principle of Safety and Ethics Always. Every day, across all functions of the company, we live out this concept by staying committed to conducting our business in an ethical and legal manner. Corporate Responsibility Materiality Assessment Polaris Code of Conduct Committee BSR is a global nonprofit organization Our Code of Business Conduct We are driven by Innovation, that works with its network of more and Ethics summarizes the ethical Integrity and Accountability, and than 250 member companies and and legal standards that we we continually tune to be good other partners to build a just and expect from all Polaris employees, stewards for the industry, our sustainable world. business partners and board riders and the outdoors. This members. Polaris, through the CRC, has vision for Geared for Good guided become a BSR member. Beyond To help us meet our goals and us in establishing our Corporate the benefits of the membership, uphold our reputation as an Responsibility Committee (CRC). Polaris has also engaged BSR to ethical corporate citizen, every The Committee’s purpose is to lead us through a formal Materiality one of us must rely on the Code advise the company on matters Assessment in 2019. to drive our behavior, through of significance to the company celebratory and challenging times This assessment uses robust alike. We offer multiple reporting and its stakeholders concerning methodologies to identify key mechanisms in the rare event a corporate social responsibility priorities for the business and violation is witnessed including and sustainability, and to assist stakeholders, leadership opportuni- anonymous reporting through the the company’s Board of Directors ties and strategic implications. The Ethics Point Hotline, administered and Senior Management Team purpose of this effort is to inform by an independent third party and in addressing the impact of Polaris sustainability strategy and available to our global employee these matters on the company’s goals, while working to align them base 24 hours a day, 365 days a business, strategies, operations, to strategic, business objectives. year. performance and reputation. View Corporate Responsibility View Polaris Code of Conduct > Committee Charter > 9
GOVERNANCE AND ETHICS Corporate Governance Highlights Our commitment to good corporate governance stems from our belief that a strong governance framework creates long-term value for our shareholders, supports partnership with our dealers, offers opportunity for our employees, and builds trust in Polaris and its brands for consumers. Board Independence and Leadership Board Diversity 9/10 Directors Independent Lead 30% Female Diverse and Independent Director with Directors Relevant Skill Set Robust Authority Board Refreshment 4 Directors in the past 4 years 6 Years Average Tenure 57 Years Average Age We are not only Supplier Code of Conduct by demanding transparency and each supplier maintain a improving our own regarding the origins of all workplace free from harassment, As a vital and valued extension Supply Base and of Polaris, our suppliers are tantalum, tin, tungsten and gold discrimination, forced labor and expected to share our focus on used in our products, as outlined child labor, and safeguard against Manufacturing, but in our Conflict Minerals Policy. human trafficking anywhere within ethics, integrity and responsible We require all of our suppliers our operations and supply chain. more importantly, business operations. To safeguard to undertake reasonable due that suppliers conduct business diligence to identify any products The Human Rights Policy also we are making in this manner, all of Polaris´ outlines our expectation that we suppliers are expected to adhere supplied to us that contain conflict and our suppliers comply with all positive impacts minerals sourced from the DRC to this Supplier Code of Conduct applicable labor, wage and hour around the world. and nine contiguous countries. In and Polaris Human Rights Policy. laws, as well as all applicable such cases, all associated mines These policies standardize these and smelters must be certified health, safety and environmental Polaris is committed expectations and provide a valuable “conflict free” by an independent laws and regulations to provide a guide for driving responsible safe and healthy work environment. to continuous third party for Polaris to continue business practices throughout our sourcing from that supplier. Polaris is committed to respecting improvement and global supply chain. the privacy and rights of employees View Conflict Minerals Policy > and third parties, and we require our raising the bar for our View Supplier Code of Conduct > suppliers to do the same. Polaris is an equal opportunity/affirmative supplier standards and Human Rights Policy Conflict Minerals Policy action employer and requires expectations Polaris is committed to respecting suppliers of a certain size to develop Polaris supports the goal of and promoting human rights in an affirmative action plan. - Kristen Stromberg, Manager ending violence and human rights the workplace and across our Global Strategic Sourcing violations in the Democratic global supply chain. Our Human View Polaris Re p u b l i c o f C o n g o ( D RC ) Rights Policy requires that Polaris Human Rights Policy > 10
GOVERNANCE AND ETHICS 11
INTRODUCTION EXECUTING ENVIRONMENTAL RESPONSIBILIT Y Trail Snowmobile 12
EXECUTING ENVIRONMENTAL RESPONSIBILITY A B C D E A. Polaris Mexico Sales team enjoying nature and a RZR ride. B. Taking on the trails side by side with RZR. C. Hard at work in Roseau, MN. D. Moving a snowmobile build forward in Roseau, MN. E. Enjoying the fresh powder on a Polaris Snowmobile. Polaris is committed to reducing the potential impacts of our operations. We recognize that by integrating sound environmental, health and safety management practices into our manufacturing, we can offer innovative products while conserving resources. View Polaris Environment, Health and Safety Policy > Using Energy More Efficiently use energy more efficiently within able to drive 2,408,907 kWh of As we grow in size, complexity our operations. energy savings. and diversity, we recognize that Our manufacturing operations remaining focused on energy manage energy efficiency by Greenhouse Gas Management efficiency will be a key factor in i d e n t i f y i n g , eva l u a t i n g a n d our future success. In 2017, we set We are committed to managing implementing projects that will our greenhouse gas (GHG) an energy goal aimed at driving conserve energy. To date our a 5% improvement in energy emissions. We are addressing the manufacturing facilities have GHG emissions in our operations efficiency across our largest implemented energy efficiency energy-consuming operations. and integrating GHG emissions projects that have driven ~41,000 management into the execution of We achieve energy savings in big GJ of energy savings which is a our business activities. and small ways within Polaris. 3% improvement compared to our Employees and contractors make 2017 baseline. Further, we maintain and report energy efficiency a constant inventories of our emissions, One example of success in reducing undertake projects to manage priority through everyday acts such energy consumption is within our as maintaining our equipment so operating emissions and apply Huntsville, Alabama, manufacturing innovative technologies to improve that it runs smoothly, and through facility. Through a series of value improvement projects, such the energy efficiency of our projects such as LED lighting, operations. In 2018, our facilities as installation of high-efficiency air compressor management, injection molding equipment drove total GHG savings of 4,500 equipment automation and shut- metric tons of CO2-equivalent, a in our Roseau, Minnesota and it-down programs, the facility was Monterrey, Mexico facilities. Polaris 4% savings compared to our 2017 also continues to find new ways to baseline. 13
EXECUTING ENVIRONMENTAL RESPONSIBILITY Our manufacturing facilities have implemented energy efficiency projects that have driven ~41,000 Gigajoules of energy savings, a 3% improvement compared to our 2017 baseline In 2018 our facilities drove total GHG savings of 4,500 metric tons of CO2-equivalent, a 4% savings compared to our 2017 baseline Our environmental goals will be measured based on nine priority locations (listed on page 15 of this report) that make up 90% of emissions and energy consumption for our manufacturing and research & development facilities. 14
EXECUTING ENVIRONMENTAL RESPONSIBILITY Other Polaris Locations: Polaris GHG Emmissions Locations UNITED STATES Wyoming, Minnesota MÉXICO United States Research & Development Huntsville, Alabama Monterrey, México Banning, California Spearfish, South Dakota Manufacturing Manufacturing Chula Vista, California Manufacturing Sandpoint, Idaho Anaheim, California Cuyahoga Falls, Ohio Manufacturing Osceola, Wisconsin EUROPE Elkhart, Indiana Manufacturing Spirit Lake, Iowa Opole, Poland Syracuse, Indiana Manufacturing Manufacturing Monticello, Minnesota Roseau, Minnesota Europe Manufacturing Aix-les-Bains, France Bourran, France These locations will be the basis for measuring our environmental goals. Chanas, France Asia Shangai, China GHG emissions were quantified for Manufacturing and R&D facilities in North America and also include Manufacturing facilities in Monterrey, Mexico and Opole, Poland. The majority of greenhouse gas (GHG) emissions associated with transportation of company employees associated with these facilities are related to energy including company planes are not included. GHG use (natural gas and electricity). We report the energy emissions from refrigerant usage were quantified and consumed in gigajoules (GJ) for electricity, natural are included in this report. gas and other fuels. We use emission factors to estimate the direct (Scope 1) and indirect (Scope 2) Polaris reports emissions of GHG based on the GRI GHG emissions. Value chain or indirect emissions from G4 protocol including carbon dioxide (CO2), methane transportation, purchased materials, end-user vehicle (CH4), nitrous oxide (N2O) and refrigerant emissions as usage, etc. (Scope 3) are not included. GHG emissions noted above, all quantified as CO2 equivalent (CO2e). 15
EXECUTING ENVIRONMENTAL RESPONSIBILITY Recycled Materials (tons) 20,807 19,512 17,328 16,227 13,333 11,603 2013 2014 2015 2016 2017 2018 Waste Minimization Total Waste To minimize our environmental footprint within Polaris, we look for opportunities to avoid the use of hazardous materials, to Year 2017 2018 reuse or recycle materials, and to prevent the generation of waste. When prevention, Hazardous Waste (tons) 851 1,072 reuse and recycling are not practical, we Non-Hazardous Waste (tons) 2,450 3,086 apply controls and treatment technologies to minimize environmental impacts. Water Usage (Gal) 46,078,426 63,526,127 Approved facilities demonstrate that they have the systems, technologies and practices to manage our waste streams responsibly and in compliance with all applicable requirements. 16
EXECUTING ENVIRONMENTAL RESPONSIBILITY Energy Efficiency Partnership be implemented across multiple our 2022 goal of 15% of our Our Polaris Huntsville, Alabama industries to drive energy savings. energy portfolio being made up of team is an active member in the renewable energy resources. Our Tennessee Valley Authority’s team is actively pursuing on-site Renewable Energy and off-site renewable energy Strategic Management Energy Cohort. This cohort of businesses Polaris continues its commitment projects that we hope to bring works together to identify and to understanding and evaluating the online in the coming years. develop energy management economic viability of renewable- improvement processes that can energy sources and achieving Water Use and Management At Polaris we recognize the importance of water and our responsibility to local communities to manage our usage of freshwater resources in a responsible manner. As such, we focus our efforts on prudently managing the water we use by: (1) Complying with local and national standards regarding our wastewater discharges, as well as internal company requirements, (2) understanding and controlling our operational water footprint, and (3) encouraging our employees to be water stewards at work, at home and in their local communities. 17
EXECUTING ENVIRONMENTAL RESPONSIBILITY Goal 1: 5% Reduction In Greenhouse Gas Generation by 2022 Goal 2: 5% Improvement In Energy Efficiency by 2022 Goal 3: 15% Total Renewable Energy Portfolio by 2022 18
EXECUTING ENVIRONMENTAL RESPONSIBILITY Deploying products and partnerships to help achieve environmental efficiency. T.R.A.I.L.S T.R.A.I.L.S. Grants grant program has given 243 grants, accumulating to 2.2 over $2.2 million. In March 2018, the All-Terrain Vehicle $ Through our T.R.A.I.L.S. Grant program, the Polaris Foundation supports snowmobile and off-road Association of Minnesota (ATVAM) was awarded a vehicle (ORV) associations to help promote safe and $10,000 T.R.A.I.L.S. Grant. The grant supported the responsible riding and preserving trail access. The ATVAM Fall Ride and Rally, which gave legislators grants range from $1,500 to $10,000 to support the and club members a firsthand riding experience on Million in grants to date development, improvement and expansion of trails, local trails. The one-on-one event opened valuable along with enhancements in ATV and ORV educational discussions about powersports legislation and materials. Since its launch in 2006, the T.R.A.I.L.S. sustainable trail management. 19
EXECUTING ENVIRONMENTAL RESPONSIBILITY A B A. Minneapolis/St. Paul Police Force outfit for Super Bowl 52. B. Polaris Commercial and Government vehicles built to problem solve. Insert: Goupil keeping Torino Clean. Celebrating 20 Years of Electric GEM Launches Fleet Savings Transportation Calculator Global Electric Motorcars (GEM) This user-friendly online tool breaks celebrated 20 years of operation down how much money an admin- in 2018. Since 1998, the brand istration could save by switching has produced and sold more to a GEM fleet over three-, five-, than 50,000 low-speed, electric seven- and 10-year increments, vehicles to college campuses and helping to create savings plans universities, police departments, unique to each fleet. city governments, corporate campuses and drivers in the United States, Canada and Europe. A More Sustainable Public Safety Line Polaris Government and Defense streets of Torino City. Iren replaced Colleges and Universities added GEM vehicles to its Public 127 petrol tricycles with eco- Leverage GEM Safety Line, alongside its RANGER friendly Goupil vehicles in 2018. GEM vehicles have been instru- and GENERAL options. GEM e2 With the switch, the city saved mental to supporting pedestrian and e4 vehicles offer low-speed more than 163,000€ and reduced safety, reducing environmental maneuverability and travel in CO2 emissions by 252,374 kg. impacts and tackling budget narrow pathways. constraints on college campuses GEM vehicles are fully electric More Eco-Friendly Work Options and universities across the United States. GEM vehicles maximize and offered with an amber light The Aixam eTruck is the only pedestrian and passenger safety bar and custom graphic, making compact, license-free, all-electric by complying with Department of them an option for public safety utility vehicle in its class. The Transportation (DOT) regulations units looking for professional, professional utility vehicle is and Society of Automotive Engi- sustainable and affordable urban equipped with a durable, Euro neers (SAE). vehicles. 4-certified Kubota engine, offering an ecological, user-friendly and safe The zero-emissions, street-legal experience for a variety of jobs. electric vehicles produce 12,000 Goupil G4 Keeps Torino Clean fewer pounds of carbon than Iren, an eco-mobility operator the average internal combustion company based in Italy, is using vehicle, saving about 21 trees per all-electric Goupil G4 vehicles to vehicle. manage food waste and clean the 20
EXECUTING ENVIRONMENTAL RESPONSIBILITY 21
INTRODUCTION FOSTERING SAFET Y AND QUALIT Y: EMPLOYEE SAFET Y 22
FOSTERING SAFETY AND QUALITY A B C D E A. Snowmobile production in the birthplace of Polaris: Roseau, MN. B. Building Indian Motorcycle in Spirit Lake, IA. C. 2018 Summer Information Services Interns enjoying a fun and safe ride. D. Family days spent floating and fishing on a Godfrey Pontoon. E. Getting geared up for a great and safe run on fresh snow. Goal : ≤ 1.2 Achieve a Total Recordable A key measure of our success is work place safety. We are committed to maintaining safe and healthy workplaces for our team members, Incident Rate of at or less and believe every employee and contract worker should return home than 1.2 by 2023 safely each day. It takes time to apply our best-in- class TRIR philosophy to newly acquired facilities. Accordingly, with Polaris utilizes a proactive, preven- goals that are focused on driving ees and expanded operations the the acquisition of Boat Holdings and tion-based approach to workplace continuous improvement. In 2017, risk profile of our organization WSI Industries in 2018, our 2018 health and safety. we saw great progress toward has changed. Accounting for our TRIR was 1.64, above our goal of
FOSTERING SAFETY AND QUALITY LIFE SAVER Polaris’ enterprise EHS Manage- rescue training. The training helps The best way to create a safe work ment system and championing participants recognize avalanches, environment is in an environment a zero-harm culture across the and become more aware in where employees are accountable organization. dangerous snow conditions. More for their personal safety and the than 95 employees completed the safety of those around them. Avalanche Training Program during Avalanche Training Program the year. In addition to safety In 2018, we rolled out our LIFE SAVER In partnership with Zac’s Tracs, the training, we allow our employees to program and asked employees to program includes two full days of check out avalanche gear, helping to recommit to supporting safety, being in-class and hands-on avalanche remove cost as a barrier to safety. accountable for safety, valuing their coworkers safety, eliminating unsafe conditions and recognizing safe behaviors in the work place. Our ultimate aspiration is achieving zero employee injuries, and we recognize that in order to succeed we need all employees to stand up and be LIFE SAVERs. Senior leadership also plays an important role in instilling safety throughout Polaris. As part of our end-to-end approach to safety, our senior executives actively participate on an Environmental, Heath, & Safety (EHS) Governance committee that is tasked with governing 24
FOSTERING SAFETY AND QUALITY Rider Safety Policy Intern Ride Experience The Early Talent, EHS, and Way Out This year, we established a uniform Technical Training (WOTT) teams Summer 2018 saw the revamping partnered to provide a controlled Rider Safety Policy throughout of our Intern Ride Experience. Polaris to promote safety. The and safe experience for summer During a side-by-side clinic at our interns to explore the trails. policy explicitly states the required Wyoming, Minnesota facility, 80 training for every vehicle, and Polaris interns applied their ATV For several interns, it was the first By engaging reiterates how to show respect for and ROHVA training and operated time they had ever been on an others and the environment on and employees in online off the roads. different types of Polaris off-road ORV or ATV. vehicles (ORVs). and hands-on product safety training, we Four New ASI Safety Programs cultivate a more This year, we had ATV training at four new locations: Spirit Lake, robust employee riding Iowa; Battle Ground, Washington; Osceola, Wisconsin and additional culture built around trainers in the Minneapolis/Saint personal and product Paul metro area. Each new site has been responsible for training inex- safety. perienced employees on ATV usage and safety recommendations. Over - Mallory Apperson, EHS Manager the past few years, more than 1,000 employees have participated in our ASI training programs. 25
INTRODUCTION FOSTERING SAFET Y AND QUALIT Y: PRODUCTS AND FEATURES 26
FOSTERING SAFETY AND QUALITY A B C D E A. Polaris Government vehicles getting ready to help serve and protect. B. Building engines in our Osceola, WI manufacturing facility. C. Todd Gross, Vice President of Product Quality & Safety and Chairman and CEO, Scott Wine, presenting John Dansby with a Quality Star award. D. Participating in our Youth Safety training in partnership with the Boy Scouts of America. E. The Indian Motorcycle RIDE COMMAND system. From the very start, our focus on customer and product safety has been foundational to Polaris, and it remains of paramount importance today. Over the last several years, we have made additional investments in our teams, processes and tools to improve the safety of our vehicles even further and give our customers the best riding experience in the industry. Polaris engages in continuous plan routes ahead of time using a Ultimate Riders Guide to help improvement processes to desktop platform. Riders also use Polaris owners live “beyond the prevent safety and quality issues the app’s Group Ride functionality dirt,” presented as a terrain-based from manifesting themselves and to locate other riders in real time. digital video series. The series aimed proactively address them when to educate RZR owners on key they do. In doing so, we have accessories, vehicle maintenance enhanced post-sale surveillance New Government Equipment strategies and additional industry- processes. These now include the Lineup Supports Public Safety leading driver techniques while ongoing review of extensive and The Polaris Government and riding on different terrains. diverse data sets to quickly identify Defense team partnered with and address issues that may Midwest Suppliers Action Fleet While the first installment of the emerge with vehicles in the field. and RKO Enterprises to expand series focused on desert riding, public safety equipment offerings. additional trail and snow riding I n a d d i t i o n , we fo c u s o n installments are set to launch in maintaining a positive working S i n c e 19 9 8 , R A N G E R a n d 2019. relationship with the regulatory GENERAL side-by-side have agencies that govern our products. allowed local fire, law enforcement We continue to work closely with and rescue teams to travel safely ASI Safety Video Appears these agencies on any potential and more efficiently in restrictive on Facebook Live safety concerns while meeting all off-road environments. The new reporting obligations. offerings help to make government The Polaris Foundation partnered vehicles more visible and accessible with Boys’ Life Magazine, a publica- in critical situations. tion of the Boy Scouts of America, New RIDE COMMAND App to create an ASI Safety video on In 2018, Slingshot and Indian Facebook Live. The hands-on piece Motorcycle launched the RIDE Guide Instills Safe RZR featured an ASI-certified instructor COMMAND app to enhance the Riding Practices demonstrating how to safely ride a rider experience. The mobile app In 2018, the Polaris RZR and Part, Polaris ATV, frequently encouraging allows riders to remotely access Garments and Accessories (PG&A) viewers to comment on the live key vehicle data and conveniently teams co-launched the first-ever experience. 27
FOSTERING SAFETY AND QUALITY FTR 1200 Motorcycle Pairs rider-safety features, parents can programs define, track and execute Performance with Safety set riding boundaries, determine upon critical metrics such as cost Polaris Commercial Born from the champion-winning speed limits, require seat belts and gross profit. FTR750 race bike, the FTR 1200 to be worn and control who is is laser-focused on from Indian Motorcycle brings flat- operating the vehicle. PRO XD Optimizes Commercial driving increased track style and performance onto UTV Durability and Safety the open road. Employees Weigh in on Safety safety and productivity Since 2012, Polaris Commercial The street-legal bike has three ride with PDP 2.5 has been helping hardworking for commercial modes and lean-angle sensitive- More than 120 employees actively commercial customers increase traction capabilities, giving riders contributed to the evolution of our job-site productivity. markets. We listened, a maximum level of stability and Product Development Process control. (PDP) in 2018. With advancements We added the PRO XD diesel learned and leveraged UTV family to this industry-leading made from PDP 2.0 to PDP 2.5, we lineup in 2018. Extensive research our nearly 65 years in have created stronger checkpoints New Youth Vehicle Offers for driving key decisions and with rental, government and this business to deliver App-Enabled Parental Controls increased program accountability construction leaders confirmed The RANGER 150 EFI gives riders for both teams and leadership. that durability, serviceability and the absolute best new 10 years of age and older the safety were of utmost importance We a l s o s t a n d a r d i ze d o u r to the commercial consumer. UTV optimized for experience of driving their own processes to continually and vehicle while maximizing their With those specifications in mind, work. safety for a great ride. consistently evaluate our programs. Continuous improvements to the PRO XD was designed specifically to withstand tough duty cycles - John Olson, VP and GM It is the industry’s first youth PDP help our teams identify what in the most demanding work for Polaris Commercial, vehicle to incorporate this safety is important to the customer and environments. Government and Defense technology. Through the RIDE guarantee alignment on program COMMAND app and the vehicle’s goals, in addition to helping 28
FOSTERING SAFETY AND QUALITY Quality Star Awards Welder Andrew Landin (Roseau) vehicle safety, responsible riding was recognized for his initiative and respect for the environment. At Polaris, we continually challenge to improve the quality of our ourselves to elevate quality, which Almost 42,000 Scouts attended ATVs. stems directly from the decisions camps with a Polaris ATV Safety and actions we make every day. Engine assemblers Shane Program during the year, and 2,600 Committing to a culture of quality E ck a r d a n d K a t A r e l l a n o received their ATV Safety Institute helps to provide the best products, (Osceola) were recognized for Certification. We also partnered services and experiences for our their attention to detail in our with 4-H nationwide to provide customers. engine manufacturing. ATV Traveling Safety Classrooms. The classrooms travel to state Our annual Quality Star Awards fairs, county fairs and 4-H events. recognize employees who have Promoting Youth Safety Thus far, we have introduced more best exemplified this commitment. The Polaris Foundation partners than 1.1 million kids to our safety They also showcase the spirit of with the Boy Scouts of America message. teamwork, attention to detail and and 4-H to promote safe and customer focus that define our responsible riding practices. workplace culture. In 2018, 41 Boy Scout camps In 2018, Polaris gave out 113 h o s t e d Po l a r i s AT V s a fe t y Quality Star awards to employees programs. The first ATV High for going above and beyond on Adventure Trek was launched at the safety and quality. Among those Boy Scout High Adventure Camp in include: Summit Bechtel Reserve in West Assembler Samantha Johnson Virginia. Featuring the Polaris OHV (Huntsville) was recognized Center for Excellence, a safety for enhancing the quality in a training center and high-adventure supplied component for our trail system, this four-day, 60-mile+ RANGER product line. ATV journey promotes off-road 29
INTRODUCTION CULTIVATING COMPANY CULTURE 30
CULTIVATING COMPANY CULTURE A B C D E A. Members of Polaris Industrial Design cultivating creativity in our clay studio. B. Team trip to our Indian Motorcycle experience center in Spirit Lake, IA. C. Welcoming Boat Holdings to the Polaris Family. D. Proudly displayed product at our Global Headquarters in Medina, MN. E. Finishing touches being implemented on an Indian Motorcycle Roadmaster. At Polaris, we recognize that our success begins with our employees. In turn, it is our responsibility to support their development and help them achieve their full potential by creating rewarding career experiences. Doing so fulfills our vision of fueling the passion and enriching the lives of those who interact with Polaris, whether through the memories and adventures that we help create for riders, or the opportunities, experiences and support we offer our employees. Polaris offers a competitive salary and comprehensive benefits package including, medical and dental plan options, a company match for 401K, profit sharing, paid time off, wellness discounts, tuition reimbursement, product discounts and more. We also offer an employee stock ownership plan – our employees are among our largest shareholder groups. Geared Toward Development Our development offering is initiatives, which are designed to We continually invest in the customizable to each individual’s provide individual contributors, career goals, with subjects managers and directors with an educational and career pursuits of ranging from human resources, in-depth development experience. our employees at Polaris, helping engineering, operations and to bridge the gap between senior Th e s e p r o g r a m s h e l p o u r finance to sales and marketing, management and the front line. In and digit al and information employees gain business and fact, more than 70 percent of our systems. One good example is leadership experience through current team members at director our Succeeding as a Polaris Leader traditional classroom lessons, level and above have reached their (SAPL) and Polaris Leadership hands-on projects and engagement role through an internal promotion. Development Program (PLDP) with senior leaders. 31
CULTIVATING COMPANY CULTURE Public Recognition and employee surveys to identify produces one of North America’s Polaris winning advantages include h i g h - t ru s t , h i g h - p e r fo r m i n g most watched and longest-running an innovative culture and dedicated workplace cultures, evaluating snowmobile TV series. The award team, operational speed and company characteristics such as is evaluated across 18 categories flexibility, and passion to create workplace respect, creditability and is the only snowmobile award quality products and experiences. and impartiality in the business given after a full season of riding. We were recognized for this and environment. Seventy-five other México businesses were in the Supertrax Media praised the XCR more in 2018. running for the awards. for its “inimitable handling prowess and high-speed ditch-banging Named to Forbes 2018 demeanor.” The sled’s brake and College Planning & shock performance, along with its Best Large Employer List Management’s 2018 control and stability features, were This ranking was based on New Product Award. also called out as highlights. the anonymous, independent GEM vehicle application packages responses of more than 30,000 won the College Planning & full- and part-time U.S. employees. AWDA Best Digital Management 2018 New Product The questions focused on how and UX Design Award in the category of “Outdoor likely a respondent would be to Environment, Vehicles,” and cited Three Polaris websites – the Indian recommend an employer to a for their usability and distinctive Motorcycle homepage, Slingshot family member or friend. features. The award honors homepage and Polaris ORV model the top product development landing page – received this award Great Places to Work achievements of manufacturers among 1,500 entries during the Awards for Monterrey Plant and suppliers of products that 2018 American Web Design enhance the learning environment. Awards (AWDA). Polaris Monterrey was recognized as both the fourth Best Company Winners were chosen based to Work for in México and the Supertrax Media Real World on how each website attracted “Company with the Highest Sled of the Year a u d i e n c e s , g e n e r a t e d n ew Creditability” by Great Place to The Polaris 2018 800 Switchback engagements and enhanced Work (GPTW) in 2018. GPTW XCR won this award for 2018 users’ online communications uses research-backed technology from Supertrax Media, which experiences. 32
CULTIVATING COMPANY CULTURE The best part about WLP is getting the chance to interact with high-level Polaris leaders on a very personal level. We foster inclusion by talking freely about topics such as professional development, which members may not otherwise talk about with peers on their immediate teams. – Jenna Novotny, 2018 WLP President WLP Expands its Reach Since its creation, WLP has worked to engage and empower The group’s efforts focus Polaris supports equal opportunity, employees across Polaris. To on five primary areas: diversity and inclusion — from our celebrate the inclusion of our Bass recruiting through the experiences Professional and Creek office, WLP hosted a career and development opportunities personal development development discussion with available to our employees. Polaris Vice President of Parts, Promoting diversity One example of the latter is Garments & Accessories (PG&A) Women Leaders in Powersports Judy Kulsrud. Judy offered tips Networking (WLP), our thriving organization and tricks on navigating Polaris as Community outreach that continued to grow in 2018 as a professional woman and shared we welcomed new members from her professional experience as a Recruiting the Polaris Bass Creek office. high-level leader for the company. 33
CULTIVATING COMPANY CULTURE Employee Engagement Survey Polaris Celebrates Profit Sharing Engaging New Riders Experiencing the outdoors and Polaris recently launched an In recognition of our Best People, having adventures with family and employee engagement survey, Best Team guiding principle, each friends are relevant and appealing created in conjunction with year we celebrate employee to many beyond the traditional Mercer | Sirota. For the 2019 successes and contributions Powersports customer. As a survey, full-time office employees during our Polaris Profit Sharing global leader in the industry, we were asked to respond. Our goal Week. Polaris locations globally believe there is a great opportunity is to include hourly employees and host special employee events, to broaden our customer base those who work at Polaris factories during which employees receive and expand participation in our and distribution centers in future a portion of our annual profits. categories. surveys. In 2018, we paid more than $17 million in compensation to our Our research has shown emerging hourly employees alone. growth in engagement among diverse populations in our categories, and we are seeking to amplify that growth by making Powersports more inclusive and accessible through: Building customer insights to better understand attitudes and beliefs from people outside of Powersports Marketing activation to reach and engage new customers Offerings like Polaris Adventures that make Powersports more accessible to more people Employee participation and engagement to introduce more people to our brands 34
CULTIVATING COMPANY CULTURE 35
CULTIVATING COMPANY CULTURE As a Polaris intern, you have the ability to share your ideas Polaris Employees Brings In 2018, we welcomed 120 with Polaris CEO Scott Wine. and implement Their Kids to Work seasonal interns, 17 percent of To give back to the community whom were returning participants. where the event was held, interns projects that make At Polaris’ Research and Devel- opment facility in Wyoming, This group of interns produced donated more than 670 rolls of a long-lasting and Minnesota, the 2018 Bring Your projects in 25 areas of our toilet paper to the Plymouth Food Kid to Work Day event helped kids business during the year, including Shelf. meaningful impact on engage in engineering, marketing but not limited to sales and marketing, digital and information In an exit survey, 99 percent of the company. From the and manufacturing activities, while summer interns stated that their giving employees the opportunity systems, operations and electrical moments you start, you engineering. The interns also had experience with Polaris either met to impress their children by show- or exceeded expectations. casing the work they do. the opportunity to participate in a are welcomed into the design challenge and Q&A session Polaris "family" as a Hands-On Summer Intern Experiences valued member of the The Polaris Summer Internship team. My internship Program provides valuable oppor- tunities for young professionals to has truly been a develop their skills, seek career rare and special development opportunities and create lasting connections with opportunity as a young leaders in the Powersports indus- try. As a fully integrated member of professional. our team, the interns work along- side Polaris leadership to help solve - Sara Huettner, real business problems and create Corporate Communications Intern sustainable, long-term projects. 36
CULTIVATING COMPANY CULTURE Steady Growth in Support of Employee Total Polaris Tuition Reimbursements (in USD) Educational Pursuits Our tuition reimbursement program invests in our $860,986 employees’ educational $788,934 pursuits to assist them in achieving their personal $642,439 and professional goals. $585,796 In 2018, we disbursed more than $800,000 in tuition reimbursement. 2015 2016 2017 2018 When I started my career at Polaris, I jumped onto the Roseau paint team right out of high school. After 25 years with the company, I have been able to grow and gain valuable experience while attending classes through the Tuition Reimbursement Program. With the knowledge I have gained in my educational pursuit, I have been able to advance my career and take on various supervisory roles. The program is challenging but extremely rewarding. I could not be prouder of this company and all the benefits that they offer. - Erin Shegrud, Polaris Warehouse Supervisor 37
EMPLOYEE RESOURCES INTRODUCTION STRENGTHENING OUR COMMUNITIES 38
STRENGTHENING OUR COMMUNITIES A B C D E A. A pit stop on the Vets Ride to Sturgis. B. Team Polaris Adaptive Snowmobile athlete, Paul Thacker, leading a team of veterans on an outdoor therapy ride. C. Serving up chili during our annual United Way Chili Cook-off at our Plymouth, MN office. D. RANGER supporting healing through hunting with Heroes Hunt at the LEEK Hunting & Mountain Preserve. E. Enjoying a ride during a Youth Safety training done in partnership with the Boy Scouts of America. Actively improving the communities in which we work and live has been a foundational concept for Polaris since our beginning. This commitment includes partnering with employees, customers, community organizations and other Polaris family members around the world to support the efforts and initiatives important to our company. Committed to Volunteer Time Off The Polaris Foundation: $3M+ in Community Engagement New for 2018 was the Volunteer Community Financial Support We want to give our employees Time Off program, which allows In 2018, the Polaris Foundation the opportunity to partake in their Polaris employees to receive up to provided $3,000,000 in monetary passions. With programs like eight hours of paid volunteer time and product donations to our Dollars for Doers, TEAM Polaris each year at a 501c3 charitable stakeholder communities, with a and Volunteer Time Off, we are organization. strategic giving focus on: helping our employees make a During the year, 255 employees Safe Youth Riding difference and be a part of causes that they care about. participated in the program and Community Development spent a total of 2,040 hours volunteering. Environment and Land Access 2018 Dollars for Doers Totals Helping Employees $17,000 Maximize Giving $15,000 Through our Dollars for Doers program, the Polaris Foundation donates $100 for every 10 hours $9,310 a Polaris employee volunteers at a 501(c)3 organization, up to $500 per employee per year. 2016 2017 2018 39
STRENGTHENING OUR COMMUNITIES Polaris Matching Contributions 433 Employees $97,675 TEAM Polaris Matching Donations 453 Employees Polaris employees in teams of six $70,000 or more can help raise money and 306 Employees participate in 501(c)3 charitable events. For each race, run or other $51,000 event, the Polaris Foundation matches up to $1,000 raised. Participants also receive a free athletic shirt to wear during TEAM events. 2016 2017 2018 Polaris ALS TEAM The Polaris ALS Fundraising TEAM raised more than $110,000 for the ALS Association during 2018 Black Woods Blizzard Tour snowmobile ride. The team’s contributions helped the 2018 tour drive awareness for ALS and raise over $1 million dollars. Bike MS150 TEAM TEAM Polaris raised $30,000 for Pictured on left: the National Multiple Sclerosis Team Polaris after a rainy run for the Society (NMSS) during the 2018 United Way. Bike MS150 event. Inserts: Polaris adaptive snow racer Paul TEAM Polaris has participated Thacker taking veterans on the snowmobile trip of a lifetime. since 1993, raising more than $392,000 for NMSS to date. Team Polaris MS150 after a successful and long ride. 40
STRENGTHENING OUR COMMUNITIES 41
STRENGTHENING OUR COMMUNITIES The iconic Ride the Wilds system provides thousands of miles of trails where riders can create memories, discover adventures and spend time with friends and family. Polaris is honored to support this community’s collaborative effort to enhance off-road riding experiences. - Lucy Clark Dougherty, Polaris Foundation President Restoring Bridges with the NFF system of Ride the Wilds, while Supporting Boy Scouts The Polaris Foundation partnered nationally raising motorsport riding of America with the National Forest Foundation standards. The grant will go toward The Polaris Foundation partners (NFF) to restore several bridges in the creation and installation of with the Boy Scouts of America Utah’s Fishlake National Forest, 1,000 new ATV trail signs, which to promote youth off-road safety home to many trails and a favorite will provide directional guidance practices and encourage respect locale for OHV riders. and promote safe and responsible for the great outdoors. In 2018, riding practices throughout the nearly 1,850 Scouts participated in To maintain a properly functioning system. trail building and trail conservation trail system, and to help protect activities. Utah’s wetlands, Polaris funded a project to replace a 250-foot-long Celebrating 50th Years of NPF Since 2014, our partnership has defunct boardwalk bridge and The National Park Foundation (NPF) enabled more than 6,400 Scouts several additional smaller bridges. celebrated the 50th anniversary take part in conservation projects. of the National Trails System Act in 2018. The act preserves trails New Hampshire Trail System with outstanding natural, cultural Improvements and recreational value for the In 2018, The Polaris Foundation enjoyment of future generations. awarded a $100,000 grant to To honor this milestone, the Polaris improve the Ride the Wilds™ trail Foundation donated snowmobiles system in New Hampshire. The and a transport trailer to support Polaris Foundation partnered with the Katahdin Woods and Waters six local organizations to bring National Monument’s operational change to the North Country trail needs. 42
STRENGTHENING OUR COMMUNITIES Polaris Wyoming Hosts Tour for toward earning Polaris Master Youth Mechanics Service Dealer (MSD) Bronze & Polaris Wyoming, Minnesota Silver level certifications prior to employees partnered with the Tried graduation. These certifications and True Small Engines program add to students’ credentials when to give local youth mechanics seeking employment and are hands-on training and experience highly sought after by recruiting in the engineering and technical and hiring Polaris dealers. fields. Eleven participants toured Active high school and technical the Polaris Wyoming facility college participation increased and received valuable industry from 15 schools in 2017 to 26 More than 100 coats were donated information while shadowing schools in 2018, with 109 students from Polaris employees, along with Polaris engineers and technicians. earning MSD certifications during additional hats and mittens. the year. Enhancing Our Dealers’ United Way Cardboard Recruiting Base Medina-Minute Volunteering Boat Race Polaris continues to recognize Over one lunch hour in October, In support of the United Way of and address the skills gap in the Polaris Medina, Minnesota employ- Elkhart County, several Godfrey current and future labor market, Hurricane employees participated not only for our own operations, ees assembled care packages for in “The Great Cardboard Boat but for our more than 1,600 off- three local nonprofits. The pack- Race.” The race, now in its sixth and on-road vehicle dealers as ages benefitted underprivileged year, consisted of eight races of well. In 2018, the Polaris Service kids, rescue dogs and homeless six or seven boats each, followed Education Program, established youth. In total, employees packed by two championship rounds. in 2003, continued to evolve, and 100 snack packs, 100 adoption expand. The program provides bags and 100 emergency kits. The boats were made entirely of technical schools, high schools cardboard, specific types of paint and community colleges with free or polyurethane and duct tape. access to Polaris online technical Providing Coats for Kids In 2018, over 1,000 spectators training systems, training material Polaris Roseau, Minnesota employ- cheered on the competing teams and learning content. Students ees participated in the annual Coats raising more than $70,000 for the of participating schools can work for Kids drive during September. United Way of Elkhart County. 43
STRENGTHENING OUR COMMUNITIES Building is a great Next-Generation Mentoring College Athletes Getting Girls Involved in STEM Manufacturer Support avenue to meet people, Jordan Benning, Director of To h e l p e n c o u r a g e g i r l s’ We recognize that supporting Transamerican Auto Parts (TAP), involvement in science, technology, develop friendships a quality education must begin worked with the Women Invested engineering and math (STEM) with a significant investment. To in Leadership and Learning (WILL) programs, Women Leaders in and establish a support tomorrow’s manufacturing program to help prepare female Powersports (WLP) sponsored network. I’m glad I professionals, Polaris donated athletes for their transition from a science experiment event at $79,500 to Forest Lake Area High the collegiate to professional world. Forest Lake Elementary School in work in an industry School in Minnesota for a new Minnesota. Polaris Design and Engineering After years of mentoring at Polaris, where my profession Lab, complete with state-of- Benning was chosen by the WLP volunteers helped 35 the-art machinery and precision University of Minnesota (UMN) members of a local Brownie Girl and my passion to be a mentor for three athletes Scout troop build hoop gliders equipment. in 2018. With members from and spool racers, creating a fun intertwine. I encourage The lab is designed to help Forest high-ranking positions in various way to learn about aerodynamic everyone to get Lake students develop relevant industries, the WILL program sets engineering and energy creation. critical thinking and problem- up female athletes for success by involved. solving skills while working on having access to mentors who - Jake Jain, engineering and manufacturing can assist with resume building, Polaris Development Technician projects. networking, mock interviewing and more. 44
STRENGTHENING OUR COMMUNITIES PROUDLY HONORING AND SUPPORTING THE U.S. MILITARY Polaris has a long history of giving back to the military, veterans and military families. Through partnerships, sponsorships and volunteer efforts, we continue to raise money for various military and veteran organizations across the country. Bridging the Gap with other veterans, supporters and for military heroes and their families Slingshot riders and to participate in various dealing with service-related mental In 2018, Polaris donated a custom adjacent adventures. and physical injuries. For every test Slingshot roadster to the Miami ride completed, Indian Motorcycle Police Department. It's not donated $25, resulting in more than Celebrating Armed Forces Day $30,000 raised for the Infinite Hero intended to be used for patrols, in Germany Foundation. but instead the attention-grabbing Slingshot is a fun vehicle to For Armed Forces Day, Indian display at local community events Motorcycle partnered with freestyle motocross icon Carey Hart to Fundraising for FEW and serves as an “icebreaker” between police officers and kids in honor active U.S. soldiers serving I n d i a n M o t o r c yc l e , Po l a r i s the local community. overseas in Germany. Hart’s “Good Slingshot and Polaris Boats have Ride” gave approximately 50 active all partnered with the Foundation troops a ride through the German for Exceptional Warriors (FEW) in Indian Motorcycle Sponsors countryside with more than 100 recent years. Veterans Ride to Sturgis members and their families, gathering for a barbecue afterward. In 2018, Indian Motorcycle and For the fourth year in a row, Polaris Slingshot supported Indian Motorcycle was the Indian Motorcycle continued the Warrior Rally by providing primary sponsor of the 2018 to support Hart’s “Good Ride” demo rides and a Polaris Indian Veterans Charity Ride to Sturgis. program by offering a dealer-driven Motorcycle display. This therapeutic adventure test ride promotion to raise money provides participating veterans for the Infinite Hero Foundation, the Proceeds from the rally went to the an opportunity to work toward program’s largest beneficiary. FEW, a 501(c) 3 nonprofit dedicated overcoming post-traumatic stress to helping wounded veterans disorder (PTSD) while on the The Infinite Hero Foundation funds bond and share experiences open road. Veterans made several programs that drive innovation and through hunting and other nature stops along the way to meet with accessibility to effective treatments excursions. 45
You can also read