Doing our Part for the Environment

LKQ Corporation is committed to helping make a better environment for the entire planet. That’s why we lead the vehicle recycling industry in minimizing the impact of activities by committing to:

• Meet or exceed all environmental regulatory requirements that apply to LKQ’s activities
• Reduce and – where possible – eliminate waste by evaluating all operations and following the waste hierarchy of Reduce, Reuse and Recycle
• Minimize the release of harmful substances into the air, water, the earth or its inhabitants through the selection and use of appropriate production materials and equipment, and maintenance of our motor vehicle fleet
• Actively promote recycling both within LKQ and among our customers and suppliers
• Reduce greenhouse gas emissions and the environmental footprint of LKQ
• Promote a product range that minimizes the environmental impact of production and distribution
• Raise employee awareness of environmental issues and encourage their enthusiastic support of LKQ’s environmental initiatives
• Regularly evaluate the company’s overall corporate environmental performance

Not only does recycling and remanufacturing keep useful materials out of landfills, they use fewer natural and non-renewable resources, produce less greenhouse gas emissions, and use less energy. LKQ works hard to recycle or reuse as much as possible of any vehicle we receive, from wheels and bumpers to engines, doors, and headlamps.

Recycling Process

• Fluids such as gasoline, oil, and coolants are removed and used in our operations or sold to fluid recyclers.
• Batteries not fit for reuse are sent to a battery recycler
• Glass, such as windshields, is removed, inventoried and sold for reuse in repair shops and door glass is sold with doors for reuse
• Seats from late model vehicles may be removed and inventoried for resale to customers
• Metal parts that are too old or too damaged to be reused or remanufactured are collected and recycled.
  •  Plastic bumpers that are too damaged to be repaired are shredded and recycled by plastics recyclers. Recycled plastics require 67% less energy than the use of raw materials.
  • Aluminum wheels that are not to our standards for refurbishment are smelted and sold to secondary aluminum processors.

Tires
LKQ Tire and Recycling facilities represent one step further in the effort to recycle each part of the salvage vehicles we process.

Environmental Impact
In 2011, we were able to reduce Greenhouse Gas Emissions by over 1 million metric tons through our recycling and remanufacturing efforts – that’s equal to the annual GHG emissions of a city with over 92,000 people! Overall, we recycled or reused over 18 million pounds of automotive batteries, and were able to remanufacture over 1.2 million auto parts. We are also proud to have reused, recycled, or recovered for energy over 2.2 million tires.

As part of our commitment to a greener future, LKQ is continually researching new ways to reuse old materials. Currently, it is estimated that automotive recycling is able to successfully divert on average 82% of a used vehicle, by weight, from the landfill. To improve this percentage, LKQ engages in continual research with material suppliers, recycling companies, trade associations, and others.

Current projects include:

Seat Foam Recycling
The majority of automotive seat and interior foam is currently sent to landfills. LKQ is part of a pilot program to evaluate the foam’s recycling potential. Emerging technology suggests that the polyurethane foam may be used in manufacturing new products once it has been chemically treated and broken down.

Fluid Removal
In cooperation with the Automobile Recyclers Association (ARA), LKQ is participating in a study to collect information that can help improve vehicle design for enhanced fluid collection. Though every effort is made to evacuate all fluids from a vehicle (gasoline, oil, coolants, etc.), it is impossible to retrieve every last drop. To understand the design problems, LKQ collects data on the amount of fluid left behind in system reservoirs after vehicles are processed.

Nylon Airbag Recycling
Although un-deployed airbags may be taken from vehicles and safely used in automotive repairs, deployed nylon airbags cannot be used again. Several obstacles have slowed interest in this area, including a difficult removal process and potential contamination problems. In an attempt to prevent these materials from being sent to landfills, LKQ and a partner company are investigating economical ways to recycle the used nylon airbag material.

Hybrid Batteries and Composites
Hybrid vehicles and new composites are emerging trends that most car recyclers are not equipped to handle. Though hybrid batteries make up a small percentage of the total cars manufactured and the new composite materials are currently in limited use, both are expected to increase in the future. LKQ is collaborating with car manufacturers to create and improve methods of recycling hybrid batteries and composites, while developing the necessary infrastructure for collection, transport and processing of these materials.

LKQ works closely with the Automotive Recyclers Association (ARA), an international association of car recyclers, to improve the industry’s management of environmentally sensitive materials taken from used vehicles.

Best Management Practices
LKQ belongs to an ARA technical committee that develops environmental practices to be used in vehicle recycling companies, both inside and outside the ARA. These “Best Management Practices” (BMPs) include environmentally conscious standards for fluid collection, storage, and management; housekeeping practices; parts storage; hazardous material storage and management; storm water management; and spill prevention. BMPs help to control many of the most common pollution sources and help create a clean, safe business environment.

Environmental Promotions
Through “Green” themed promotions, LKQ encourages customers to participate in environmentally friendly projects. Since 2010, we have partnered with our customers and the Arbor Day Foundation to plant more than 20,000 trees. LKQ plans to follow the project’s success with many more green promotions in the future.

With the goal of reducing energy consumption and greenhouse gas emissions, LKQ has evaluated its facility operations for energy efficiency. We strive to use energy efficient means of lighting, heating and cooling, and we seek to improve the energy management of our processes and manufacturing equipment.

New facilities are built incorporating used materials and the latest energy-saving technologies. From installing two different light settings in offices to incorporating skylights and T5HO (high efficiency) lighting in new warehouses, LKQ is making it a priority to save energy.

The Certified Automotive Recycler (CAR) Program
Sponsored by the Automotive Recyclers Association (ARA), the CAR program certifies that participating recycling facilities meet specified business, environmental, licensing, and regulatory standards. CAR members distinguish themselves as professional recyclers who are committed to meeting the highest performance standards set by the industry. A licensed environmental professional audits the facility every other year to ensure that it continues to meet CAR standards.

State Certification for Salvage Yards
Numerous states provide certifications for salvage yards that go above and beyond the required environmental regulations. LKQ has obtained many of these certifications, and each day we strive to add more. States in which we have obtained recognition include Florida, California, Michigan, Iowa, Illinois, Indiana, Wisconsin, Minnesota, and Ontario, Canada.