Improving Lighting and Shipping

Improving Lighting and Shipping Transporting and selling our products more sustainably

Our stores could not function without lights – and the electricity used to power this lighting accounts for a significant amount of our energy consumption and GHG emissions. Reducing this energy usage brings multiple benefits, helping us decrease both our emissions and costs.

Improving lighting and shipping

Reducing energy usage brings multiple benefits, helping decrease both our emissions and costs.

We installed LED lights, which use 80 percent less energy and last 5-10 times longer, at more than 30 percent of our U.S. stores.

We have installed LED lights, which use 80 percent less energy than conventional lights, at more than 30 percent of our U.S. stores. These lights also last 5-10 times longer, are much brighter than the lights they replace, and pay for themselves in just two to three years. Our teams in Japan and the U.K. have converted all of their stores to LED lighting, and our stores in China have been using energy-efficient lighting from the start.

Like lighting, shipping is something we rely on every day to run our business, presenting both a challenge and an opportunity. In 2011, we joined a voluntary government and industry collaboration – known as the SmartWay Shipper Program – that brings together carriers, freight shippers and logistics companies to improve fuel efficiency. In addition to being a certified U.S. Environmental Protection Agency (EPA) SmartWay shipping partner, we became a Canadian SmartWay partner in 2013.3

Each year, we have committed to increasing the amount of freight we ship by SmartWay carriers by 5 percent. We also have committed to using cleaner modes of transportation and encouraging the use of fuel-saving strategies and technologies. Recognition of our efforts has told us that we are on the right track, as we have been named a SmartWay Excellence semi-finalist for three years, from 2012-2014.

Moving forward, we are working to integrate more of our business operations into the SmartWay program and improve our data collection to better measure results. We are also beginning to address our logistics and distribution activities globally as our international business continues to expand. To work toward our new 2020 emissions reduction goal, we are using the EPA EnergyStar platform to analyze differences in store performance and prioritize regions, brands and initiatives with the greatest opportunities for energy improvements. And we continue to test new ideas. For example, this year we have been piloting a new energy efficiency program at 100 stores across North America that aims to provide real-time monitoring and management of our energy use.

3http://www.epa.gov/smartway/index.htm

Improving store lighting

Results

We continued to reduce the energy used to power our owned and operated facilities in the U.S. and developed a baseline for global energy consumption at our owned and operated facilities in 2014.

Energy Consumption for Owned & Operated Facilities

 
U.S.
2011 2012 2013 2014
Global
2014
Total energy consumption 1,014 966 952 928 1,168
Change vs. prior year   -4.7% -1.4% -2.5% N/A
Headquarters 53 50 62 58 67
Distribution centers 126 126 123 113 121
Stores 835 790 767 757 980
* Units = millions of Kilowatt hours (KWh)