Overview
PetVet Care Centers ("PetVet") is a national network of community-based veterinary care centers providing general practice, specialty, emergency, and equine care. PetVet operates a multi-site healthcare services model with decentralized brands. As of December 28, 2025, PetVet’s footprint includes over 400 care centers across 41 U.S. states, supported by a central support center in Westport, CT. This report describes how PetVet oversees, assesses, and manages climate related risks and opportunities across its operations.
Purpose & Framework Alignment
The following report has been prepared in accordance with the recommended framework and disclosures contained in the Final Report of Recommendations of the TCFD (June 2017) published by the Task Force on Climate-related Financial Disclosures (“the TCFD Framework”) for purposes of meeting statutory obligations arising under California Health and Safety Code § 38533 (“Section 38533”). This document covers all recommended elements of disclosure under the TCFD Framework, except for Scope 1, 2, and 3 greenhouse gas emissions under the Metrics and Targets pillar, in accordance with guidance issued by the California Air Resources Board (“CARB”) as noted below.
Unless otherwise stated, the metrics and disclosures included within this report have not been subject to external assurance.
Reporting Period & Scope
Information presented in this report reflects conditions and data from periods on or prior to December 28, 2025. Unless otherwise noted, disclosures reflect all centers and entities within PetVet’s operations, including PetVet’s Westport, CT support center. Governance, strategy, and risk management disclosures cover enterprise wide practices and apply to all in scope operations. Metrics and targets reflect most recently available data.
This report applies a financial materiality lens consistent with the TCFD recommendations. Disclosures focus on climate related information that could reasonably be expected to affect PetVet’s enterprise value, including prospects, cash flows, access to capital, or cost of capital, over relevant time horizons.
To support clarity and meet emerging regulatory expectations, PetVet may also include climate related information for context and transparency that is not material to enterprise value. Unless expressly stated otherwise, inclusion of such information should not be construed as a determination of materiality.
Important Information
This report contains forward-looking statements, including statements regarding future climate related risks, opportunities, strategy, initiatives, targets, and projected outcomes. Forward-looking statements are based on current assumptions and information available as of the date of this report and are subject to risks and uncertainties that could cause actual results to differ materially. PetVet undertakes no obligation to update any forward-looking statements, except as required by law.
Analysis relating to climate-related risk involves estimates and projections and may be based on estimated information and assumptions which may prove to be inaccurate, or standards (including our internal standards and policies) that continue to develop. The analysis involved in determining whether and how our business may be impacted by climate risk, and the opportunities that might become available to us, inherently dependent on a number of factors and subjective determinations. There can be no assurance that reasonable parties will agree on the analysis of climate-related risks and opportunities presented herein. Further, there can be no assurance that policies and procedures described in this report will continue; such policies and procedures could change, even materially. We are permitted to determine in our discretion that it is not feasible or practical to implement or complete certain of our initiatives, policies, and procedures based on cost, timing, or other considerations. Additionally, this report may refer to internal systems and/or processes which are under development, evolution and review, and we can give no guarantee that these systems and processes with be implemented as described herein.
TCFD Index
TCFD Pillar | Recommended Disclosure | Reference |
|---|---|---|
Governance | Board’s oversight of climate-related risks and opportunities. | Section 1.1 |
Governance | Management’s role in assessing and managing climate-related risks and opportunities. | Section 1.2 |
Strategy | Climate-related risks and opportunities identified over the short, medium, and long term. | Section 1.3 |
Strategy | Impact of climate on the organization’s businesses, strategy, and financial planning. | Section 1.3 |
Strategy | Resilience of the strategy, taking into consideration different climate-related scenarios. | Section 1.4 |
Risk Management | Processes for identifying and assessing climate-related risks. | Section 1.5.1 |
Risk Management | Processes for managing climate-related risks. | Section 1.5.2 |
Risk Management | How such processes are integrated into overall risk management. | Section 1.5.3 |
Metrics & Targets | Metrics and targets used by the organization to assess and manage climate-related risks and opportunities |
Governance
1.1 Board Oversight
PetVet’s Board retains overall responsibility for enterprise risks, including climate-related risks and opportunities, and has delegated primary oversight to the Executive Leadership Team, with periodic updates to the Board. The Executive Leadership Team meets at least biennially and reviews climate-related risk assessment results and the climate risk register, monitors progress on action plans, reviews climate-related disclosures, and considers climate-related factors in strategy reviews, capital allocation, insurance coverage, and major facilities decisions. Management provides periodic updates to the Executive Leadership Team, including a biennial review of climate-related risk trends, assumptions, and progress against actions, if any.
1.2 Management Responsibilities
Day-to-day responsibilities for assessing climate-related issues rest with management, through PetVet’s enterprise risk management (ERM) process. The Chief Financial Officer (executive sponsor) and General Counsel (co-sponsor) oversee a cross-functional Climate Working Group that includes members from Finance, Legal, Corporate Audit, Facilities/Real Estate, Field Operations, IT/Security, Human Resources, Marketing and External Reporting.
The group meets biennially to identify and assess risks, develop the Company’s Climate Risk Register, prioritize risks based on notions of likelihood and impact, and integrate learnings alongside PetVet’s enterprise risk management practices. Members of the Climate Working Group are also responsible for implementing any Board and Executive Management directives on climate-related issues, and ensuring that climate-related strategies, where relevant and material, are implemented across the organization.
During the year, the Climate Risk Working Group held multiple meetings to conduct PetVet’s inaugural climate risk assessment, evaluate significance of climate-related risks, and consider the effectiveness of existing mitigation practices. Group members maintained regular contact through email and phone discussions, enabling continuous oversight and collaboration on climate-related matters throughout the year. Resulting risks were reviewed with Executive Leadership, including the Chief Financial Officer and General Counsel, to ensure appropriate levels of oversight and integration into PetVet’s overall enterprise risk management process.
Strategy
1.3 Risks, Opportunities, and Strategy Overview
PetVet’s business strategy is to deliver accessible, high quality veterinary care through a multi-site, community-based network. Climate related risks and opportunities are relevant to this model because they can affect facility operations, team safety and availability, supply continuity, insurance and financing, and ultimately enterprise value. For this first enterprise wide climate risk assessment, PetVet applied a qualitative, business as usual (BAU) orientation and the Company’s ERM definitions of likelihood, impact, and time horizons.
The Company defines climate-related risks as material where they may significantly impact PetVet’s enterprise value, including prospects, cash flows, access to capital, or cost of capital.
In this initial cycle, the Company considered both physical and transition risks across short-, medium-, and long-term horizons. For purposes of our analysis, we consider the short term to mean [0-1] years, the medium term to mean [2-5] years, and long term to mean more than [5] years, which aligns with the timelines used in the company’s risk assessment processes more generally, and takes into consideration PetVet’s industry, business, operations, and geographical footprint. Physical risks included acute hazards such as hurricanes, flooding, and wildfire/smoke, and chronic trends such as rising temperatures and climate-driven changes in animal disease. Transition risks included regulatory developments, investor expectations, insurance market disruption and pass-through costs resulting from impacts on our supply chain.
Not all risks assessed were deemed material for PetVet. Below we highlight the risks most relevant today and which may shape our strategy over time. Taken together, these themes inform near term emphasis on continuity and disclosure readiness, medium term choices around leases, maintenance, and insurance in exposed markets, and longer term attention to portfolio resilience as regional hazard profiles evolve.
Transition Risks
Risk Description | Horizon |
|---|---|
New climate disclosure regulations may increase operating and reporting costs across our centers. Regulatory disclosure requirements are expected to increase administrative effort and costs as State-mandated rules such as California SB 261 and SB 253 take effect. This could lead to near-term impacts such as higher administrative costs to enable compliance, investments in data systems and reporting tools, and, if requirements are not met, the possibility of penalties and reputational impacts. These pressures could influence operating margins and how resources are allocated across our center network. We may face growing pressure from investors to demonstrate credible climate action. As a private equity–backed platform, this could affect our access to and cost of capital, diligence requirements at refinancing or exit, and, ultimately, valuation. | Short to Medium |
Because PetVet’s emissions are primarily from natural gas and purchased electricity, if regulatory or investor expectations intensify, such expectations may focus on energy management governance, data controls, and evidence of disciplined decision-making at lease renewal and equipment replacement. The Company is responding to these growing pressures by maturing its governance, controls, and disclosures at a pace proportionate to business needs.
Physical Risks
Risk Description | Horizon |
|---|---|
Centers in hurricane- and flood-prone regions may face growing risks of closures, damage, service disruptions, and employee health and safety-related impacts. Storm and flood disruptions already manifest in many of the geographies in which we operate, especially parts of the Southeast and Northeast. Acute weather can cause temporary closures, property damage, and supply delays, while also impacting the health and safety of our staff. To address this risk, Management seeks to maintain a steady emphasis on practical continuity planning at the center level, make informed maintenance choices, and ensure location specific preparedness where exposure is higher. | Short- to Medium-Term |
Centers operating in wildfire-prone regions may face wildfire-related shutdowns and poor air quality that impact operations and staff health. Wildfire and smoke exposure raises seasonal risks of evacuation, degraded air quality, and power shutoffs that interrupt operations. | Medium- to Long-Term |
More frequent extreme heat could increase energy use and strain HVAC systems needed for safe animal care and staff working conditions. Rising temperatures may increase cooling demands. Increased demand on Heating, Ventilation, and Air Conditioning (HVAC) systems may result in increased operating costs and require more frequent updates to critical HVAC equipment. | Medium- to Long-Term |
These conditions shape how PetVet thinks about site preparedness, staff safety protocols, business continuity and disaster preparedness programs, and the reliability of utilities in priority markets. Over time, these risks may influence equipment replacement cycles and maintenance planning, particularly in hotter regions.
Opportunities Aligned to our Business Model
While opportunities were not formally evaluated in this cycle, there are several areas of opportunity that align to PetVet’s operating context: practical efficiency improvements in HVAC and building systems and incremental resilience measures that can reduce downtime risk.
In addition to practical efficiency and resilience improvements, measured capability-building may support PetVet’s competitive positioning relative to peers. As animal health and disease trends evolve as a result of climate-related impacts, demand for certain preventive and reactive clinical services could change, and clinical protocols may evolve. By strengthening horizon scanning (e.g., public health alerts and academic guidance), clinician training, and periodic protocol updates, PetVet can respond quickly as patterns change.
The Company intends to revisit potential opportunities in future cycles as governance, data, and methods mature.
1.4 Scenario Analysis & Resilience
PetVet has leveraged a qualitative, BAU orientation to explore how climate related conditions could evolve and what this could mean for the business. The BAU view assumes limited global climate action and increasing physical hazards over time. This exploratory analysis provides an initial qualitative baseline for understanding how physical and transition risks may evolve and where additional analysis may be valuable in the future.
“Resilience” in this context refers to the capacity of PetVet’s strategy to absorb shocks and adapt to changing conditions without compromising its ability to deliver care and create long term value. In the near term, resilience is oriented around practical continuity at the center level and the ability to resume services quickly after localized events. Over the medium term, observed patterns in hazard exposure and insurance conditions may inform maintenance planning, lease renewals, and preparedness expectations in more exposed markets. Over the long term, shifting hazard profiles, insurance availability and pricing, and infrastructure reliability may be considered in portfolio and siting choices.
Over time, the Company will consider ways to refine its approach, which may include use of a small set of reference scenarios for both physical and transition risk, enhancing geographic granularity where most relevant to operations, and strengthening links to financial planning.
Governance improvements, integration with ERM, and a biennial review cycle are intended to help PetVet reassess assumptions, adjust priorities, and improve decision useful analysis over time.
Risk Management
1.5 Risk Management Process
PetVet identifies, assesses, and manages climate-related risks through a Climate Risk Management process, which was designed to align to the Company’s broader ERM framework.
As part of the process, internal stakeholders from Finance, Corporate Audit, Legal, Field Operations, Facilities/Real Estate, External Reporting, Human Resources, Marketing, and IT/Security participated in multiple workshops and follow-up discussions to develop a company-specific risk universe, agree on risk statements, and assign likelihood and impact ratings using PetVet’s ERM criteria and time horizons.
The ERM criteria consider likelihood and impact to support an assessment of inherent risk.
Likelihood is defined as the possibility that a given event will occur, on a scale of 1 (rare) to 5 (almost certain).
Impact is an estimate of the harm that could be caused by an event, whether financial or non-financial, rated on a scale of 1 (minimal) to 5 (critical).
1.5.1 Risk Identification and Assessment
The climate risk identification process followed PetVet’s Climate Risk Management Framework and leveraged ERM scales to ensure comparability. The risk assessment process began with a horizon scan to establish a broad universe of potential climate-related issues that may apply to the Company based on our industry, business, operations, and geographical footprint.
The Climate Working Group first developed a broad universe of potential climate related risks using multiple sources: internal materials (facilities listings, internal risk assessments, financials), peer and competitor reporting, industry research, internal discussions, and commonly cited risks in global frameworks such as TCFD. Candidate risks were mapped to standardized TCFD consistent descriptors.
Upon refinement, the group further evaluated 14 physical (acute and chronic) and transition (regulatory, market, technology, and reputation) risks via internal stakeholder engagement. A qualitative BAU orientation was used to frame how hazards and transition dynamics could evolve over time, drawing on IPCC SSP5 8.5 and SSP5 4.5 references for context. This resulted in a climate risk register that prioritizes the most relevant risks for further management attention.
Stakeholder Engagement A core group of stakeholders spanning Finance, Corporate Audit, Legal, Field Operations, Facilities/Real Estate, External Reporting, Human Resources, Marketing, and IT/Security participated in multiple facilitated workshops to align on the risk universe and provide individual likelihood and impact rankings. Targeted follow-ups were conducted where clarifications were needed.
Workshop inputs were consolidated into a climate risk register and heatmap. Risks were ranked by inherent risk (likelihood × impact) to determine a Top 5 set for management focus. Upon aggregation and prioritization of risks, members from Senior and Executive Leadership Teams reviewed and challenged the results.
1.5.2 Integration into Overall Risk Management
Integration with overall risk management occurs by applying ERM definitions and cadence to climate topics so they are evaluated on a comparable basis with other enterprise risks. Ratings, narratives, and time horizons align to ERM scales, with material climate-related topics planned for inclusion in routine ERM reporting to executive management and the Executive Leadership Team charged with oversight.
1.5.3 Risk Mitigation & Management Process
For each priority risk, the Climate Working Group considers the presence of strategies, initiatives, and controls; whether they are generally in place and operating; and any immediate gaps. Risk management responses reflect proportionality and focus on decision-useful steps. For acute physical risks, center-level continuity and safety planning, incident communication, and post-event reviews are primary tools for managing risk. For chronic risks such as rising temperatures, maintenance planning and equipment replacement cycles may be considered. For transition risks, the emphasis is on compliance with State-mandated reporting obligations, readiness for Greenhouse Gas (GHG) emissions data needs, and governance and disclosure practices consistent with investor expectations.
Preparedness reflects whether strategies, initiatives, and controls are designed and operating to manage the risk at an acceptable level within the defined time horizon. Based on assigned preparedness ratings, management may determine that no adjustments are needed (a rating of 1), that targeted enhancements should be planned and executed (2–3), or that structured remediation with time bound milestones and escalation to the Executive Leadership Team is required (4–5).
Metrics & Targets
PetVet collects metrics relating to its Scope 1 and 2 GHG emissions. These metrics are not included as PetVet is working on validating the underlying data and methodologies. The Company does not currently have any climate-related targets in place, and is focusing on enhancing its internal risk assessment processes, emissions data, and building internal capabilities to support informed decision-making in future cycles. PetVet continues to assess potential climate impacts and develop strategies, including the possible future role of climate-related targets, accordingly.