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COMPLETE 2019 Trex ESG REPORT
Our 2019 ESG Report is available in dynamic PDF format, enhanced with quick links throughout the report for easy navigation and access to supporting materials.
In our inaugural 2018 Environmental, Social and Governance Report, we highlighted the strengths of Trex's culture and the strong interaction between our employees, leadership and our local communities. Our cultural strengths are on full display in 2020 as we responded to the COVID-19 pandemic to safeguard the health and wellness of our employees and to ensure uninterrupted operations. We also looked for opportunities to “give back” to the communities in which we operate. We fabricated face shields, contributed proceeds from decking sample sales to Feeding America, and supported the COVID-19 Relief Fund of our local United Way, supplementing our annual fund-raising campaign. Built over decades, our "do the right thing" culture is the bedrock of our response and actions during this challenging time.
With a well-established leadership team and a dedicated workforce aligned to the Company's values, we delivered strong performance across financial, environmental, social and governance dimensions. Our consolidated net sales in 2019 were $745 million, an increase of 9% compared to 2018, and net income was $145 million, or $2.47 per diluted share. We were also recognized for being the “greenest” decking by Green Builder Media Readers' Choice Awards and maintained strong employee engagement scores. These results reaffirm that our long-standing commitment to our employees, to innovation and to our heritage of converting waste into high-performance, eco-friendly outdoor living products is good business.
In this 2019 Environmental, Social and Governance Report, I am pleased to share the details and highlights of our many accomplishments. Environmental stewardship is embedded in the Trex DNA, and we continually seek ways to strengthen that legacy. In 2019, we launched NexTrex™, a groundbreaking collection program that expanded the reach of our recycling initiatives and increased our base of participating retailers and consumers. Trex used more than 850 million pounds of polyethylene film and reclaimed wood fibers in our products. Additionally, Trex invested in closed-loop water recirculation systems at our manufacturing facilities in Virginia and Nevada that recycled approximately 99% of the water used in 2019.
One of Trex's greatest competitive advantages is our employees and their dedication to innovation and continuous improvement. As President and CEO, one of my principle goals is to further develop and reinforce the benefits of our highly engaged workforce by expanding direct contact between leadership and employees. Our employee engagement surveys are positive and signal a widespread commitment to the Company's mission and values. Diversity, inclusion, training and development continue to be priorities across the organization. Trex team members received more than 1,600 hours of leadership development training in 2019 and two-thirds of leadership positions were filled from within the Company. In 2019, we also welcomed Kristine Juster to our Board of Directors, and increased the number of women in leadership roles within the Company to 22% in 2019.
As proud as I am about our outstanding accomplishments in 2019, I am even more excited about our strategic initiative to accelerate the conversion from wood decking to sustainable Trex composite decking. This initiative will result in more plastic being diverted from landfills and allow us to employ more people, which will in turn benefit the communities in which we operate. To do so, in 2019 we announced a multi-year capital plan that will increase capacity by 70% across our Virginia and Nevada facilities. Our disciplined and conservative approach to manage our balance sheet underpins both this initiative and our ongoing success.
In closing, I commend and thank our employees and leadership team for seamlessly deploying our business continuity and emergency response plans during this pandemic and for continuing to enthusiastically embrace the challenges of operating during this challenging time. The Trex team remains fully committed and energized to execute on our strategies, and I believe we have great opportunities ahead of us. We appreciate your interest in our Company and are proud to share the positive impact of our environmental, social and governance business practices and initiatives.
Sincerely,
Bryan Fairbanks, President and CEO