2010 Sustainability Report

Transcription

1 2010 Sustainability Report

2 Dear Stakeholders: As a leader in the retail industry and a member of the community, Kohl s has a responsibility to be an active steward of the environment. It is a responsibility we take seriously and consider intrinsic to our business philosophy. From our corporate culture to our community initiatives, we have taken big steps to ensure we leave a smaller footprint. As of 2010, we have marked many milestones. We have 100 stores with solar power systems, 590 ENERGY STAR stores and 73 LEED -certified locations. In addition, our Associates actively participate in environmental initiatives at work and in their communities. During the month of April last year alone, Associates volunteered more than 35,000 hours of their time to environmental efforts. I am pleased to present this sustainability report, which outlines our environmental goals, sustainability strategies and the many achievements we have made in our mission to advance environmental solutions. We are proud of our accomplishments, but more important, we hope that the information contained in this report will generate more ideas, more innovative thinking and more involvement in a mission that has the power to change the world. Sincerely, Kevin Mansell Chairman, President and CEO

3 Table of Contents Mission Statement 2 Sustainability Strategies Energy Efficiency 3-4 Building Design 5-6 Emission Reduction 7 Recycling / Minimizing Waste 8 Stakeholder Engagement 9-10 Looking to the Future 10 Our Mission: Advancing Environmental Solutions At Kohl s, we are committed to protecting and conserving the environment by seeking innovative solutions that encourage long-term sustainability. From large-scale initiatives like constructing environmentally friendly buildings to everyday practices like recycling hangers, we re taking big steps to ensure we leave a smaller footprint. Kohl s works to advance environmental solutions through five key sustainability strategies, which are outlined and explained in detail on the following pages. These strategies are designed to reduce our impact on the environment and engage partners, Associates and customers in our mission. Green Stores Across the Country Below you will find a visual representation of our environmental accomplishments and green stores across the country, including LEED -certified buildings, ENERGY STAR -labeled locations and solar-powered stores. 73 LEED-certified Locations 100 Solar-powered Locations Over 500 ENERGY STAR -labeled Locations 2

4 Energy Efficiency 2010 Goal To achieve 500 ENERGY STAR -labeled stores and operate via 100% renewable energy Status 590 stores were ENERGY STAR -labeled, 100 solar arrays were activated and green power was purchased to offset 100% of Kohl s energy use. Program Description As a retail company, Kohl s knows that energy use makes the biggest impact on the environment. Managing energy use is a key strategy for driving savings and conserving resources. Kohl s managed three key energy programs in 2010: Solar Kohl s entered into a power purchase agreement with SunEdison for a 20-year term in 2007, and as of December 2010, Kohl s had 100 solar power systems activated in California, Oregon, Colorado, Wisconsin, Connecticut, New Jersey and Maryland. Generating 25 megawatts of electricity in California alone, Kohl s is the largest single retail host of solar electricity in North America. This is greater than the electricity generation of the five largest photovoltaic systems in the U.S. combined and is equivalent to the electricity used by 3,087 California homes. In addition, this initiative offset more than 28 million pounds of carbon dioxide in the first year the equivalent of taking 2,500 cars off the road and it also provided about 40% of each store s power. An average solar power system on a California store has 1,650 solar panels that nearly cover the roof of the typical 88,000-square-foot building. Kohl s largest system, the distribution center in San Bernardino, Calif., boasts 6,208 panels that generate 1 megawatt of power enough to supply 400 homes on an annual basis. Solar Deployment History by Year Kohl s has solar power arrays generating clean, silent, renewable energy on over 100 store rooftops. 3

5 ENERGY STAR As a member of the U.S. Environmental Protection Agency (EPA) ENERGY STAR Program, Kohl s measures the energy performance of our stores, scoring them on a scale of 1 to 100. Stores that achieve a score of 75 or higher are eligible for the ENERGY STAR label, placing them among the top 25% of retail stores in the country for energy performance. Commercial buildings that have earned the ENERGY STAR label use, on average, 35% less energy than similar buildings and generate one-third less carbon dioxide. ENERGY STAR Program Growth As of December 2010, 590 Kohl s stores have earned the ENERGY STAR distinction. In addition, we use the ENERGY STAR portfolio manager to measure energy performance as we strive for ways to be more efficient. Kohl s was named 2010 ENERGY STAR Partner of the Year for Energy Management by the EPA and U.S. Department of Energy (DOE). This distinction recognizes Kohl s commitment to energy management and reductions in greenhouse gas emissions. Renewable Energy In 2006, Kohl s joined the EPA Green Power Partnership to support the use and development of renewable energy. In 2009, we purchased more than 1,367,376,000-kilowatt hours of renewable energy credits for use in 2010, and this purchase greens 100% of Kohl s 2010 total energy use. According to the EPA s Greenhouse Gas Equivalencies Calculator, this purchase is equivalent to removing the annual emissions from 178,853 cars. Renewable Energy Credit Purchase History Kohl s has been recognized four times by the EPA with a Green Power Leadership award for our commitment to renewable energy. 4

6 Building Design 2010 Goal To submit and achieve LEED certification for all stores that have been newly constructed since fall Status 72 Stores and one office building achieved LEED certification. Program Description Kohl s is committed to achieving long-term sustainability through improved building design and LEED certification for our stores. To be LEED certified, a building must meet a set of criteria produced by the U.S. Green Building Council (USGBC), which guides best practices for the design, construction and operation of high-performance green buildings. In achieving LEED certification for all newly constructed stores, Kohl s begins with site and building design: Sustainable Building Materials An estimated 20 percent of the total building materials (by cost) used by Kohl s are regionally manufactured and harvested from within 500 miles of new store sites, and building materials such as concrete, steel, carpeting, ceiling tiles, drywall and insulation are selected to contain the maximum amounts of post- and pre-consumer recycled content. Heat Island Effect Kohl s stores use a reflective ENERGY STAR -rated roofing material that mitigates the heat island impact which is caused by asphalt and other hard-surface infrastructure. Waste Reduction All waste generated by the construction of new Kohl s stores is carefully managed to ensure the least possible amount of debris is sent to landfills and incinerators, reducing landfill waste by an estimated 50 to 75 percent. Water Efficiency Using native and adoptive vegetation and a smart irrigation controller, new Kohl s stores have reduced water usage for landscaping irrigation by more than 50 percent. We have also reduced water consumption 20-30% by using water-reducing plumbing fixtures in new Kohl s stores. 5

7 LEED-Certified Locations 6

8 Emission Reduction 2010 Goal To achieve net zero emissions for 3 years beginning Status Net zero emissions achieved in Program Description Kohl s recognizes that human activities are changing the composition of the Earth s atmosphere. As a retailer, our biggest impact on the environment comes from our energy use. With this in mind, we are seeking ways to lessen our environmental impact. Carbon Emissions Management Kohl s annually measures its total consumption of all energy sources. These measurements are used to calculate an annual carbon footprint associated with operating Kohl s stores. In addition, measurement of emissions related to our business in terms of business travel and transportation of merchandise to our stores is also calculated. These emissions calculations are reported annually to the Carbon Disclosure Project. Beginning in 2009, Kohl s has also contracted with a third-party emissions verifier to assure accuracy of the footprint. Kohl s Carbon Footprint Square Foot Scope 1 Scope 2 Scope 3 Building Space Number of Direct InDirect Travel Transportation 1000 Sq. Feet Stores Operating Normalized Emissions Per 1000 Sq. Feet Emission Verified Reductions Emission Renewable Energy Credits Reductions/ Carbon offsets , ,643 5, ,425 94, , , ,358 5, , , , , ,834 5, , , , , ,519 6, , , ,064,131 33,000 In 2010 Kohl's decreased its normalized emissions by 1.6% while opening an additional 30 stores and an Ecommerce Fulfillment Center. Emissions Reductions Emissions Generated Direct Emissions 28,003 27,062 Indirect Emissions 833, ,519 Travel Emissions 5,026 6,369 Total Emissions 866, ,950 Emission Reductions Renewable Energy Credits , ,064,131 Carbon Offsets - 33,000 Total Offsets 664,931 1,097,131 Net Carbon Emissions 201,932 (231,181) Transportation Program In 2010, Kohl s executed 17,456 backhaul trips to our distribution centers from our vendors on return trips to stores. This eliminated 4,151,549 empty miles. These once-empty trailers now carry merchandise from our vendors, ultimately reducing the number of inbound transportation trips. Kohl s also uses rail transportation for 54% of all inbound transportation since rail uses less fuel and causes fewer emissions than truck services. Kohl s joined the EPA SmartWay Shipper program in 2007 and was recognized in 2008 and 2009 with the SmartWay Shipper Excellence Award for achievements in efficient shipping of merchandise. In 2010, nine of our top 10 carriers had the highest rating of 1.25 in the EPA SmartWay program, a program that stresses fuel efficiency and carbon-reduction strategies. In total, Kohl s achieved a 1.19 out of 1.25 rating for miles traveled in 2010 on EPA SmartWay-rated carriers. 7

9 Recycling/Minimizing Waste 2010 Goal To recycle 85% of all waste material generated by Kohl s operations Status Kohl s recycled 77% of all waste generated, a 4% increase over Program Description Kohl s has been a strong advocate of recycling and waste reduction since In 2010, we received the EPA WasteWise Gold Achievement Award for Green Purchasing and Organic Material Reduction in recognition of our efforts to reduce organic food waste through local composting. Plastics 7% Bottles/Cans 0.40% Metal 1% Electronics 0.05% Wood 2% 2010 Material Recycled by % Construction Debris 11% Cardboard / Paper Construction Debris Plastics Wood Metal Bottles / Cans Electronics Cardboard / Paper 79% Kohl s Recycling Four Year Trend 136, , , , Year Recycled content used: Gift Boxes: 100% Recycled Content; Restroom Papers: 100% Recycled Content; Merchandise Bags: 20-35% Recycled Content; E-Commerce Shipping Cartons: 34% Recycled Content; Office Supplies: 9.9% Recycled Content 8

10 Stakeholder Engagement Associates Kohl s Associates actively participate in environmental efforts in their communities and consider the environment in their everyday practices and decisions. Some of our best ideas to support our environmental mission come from our Associates. To that end, we have created an suggestion box: green@kohls.com. Corporate Gardens In 2009, Kohl s installed its first group of corporate vegetable gardens. Two of the gardens are located adjacent to the on-site daycare facilities and are used to teach children of Kohl s Associates about gardening and healthy eating. A third location is on an island in Kohl s corporate parking lot, where all the food grown is donated to the Milwaukee Hunger Task Force. Tended by Kohl s Associate volunteers, more than 600 pounds of healthy vegetables were donated the first year, followed by more than 700 pounds of vegetables in Associates in Action Go Green Event For the first time in 2010, Kohl s celebrated National Volunteer Week and the 40th anniversary of Earth Day by encouraging Associates to volunteer in their communities. Associates from the distribution centers, corporate offices and individual stores participated, supporting local nonprofit organizations that help both children and the environment. The large variety of groups that benefited from the event included nature centers, schools, parks, urban farms, river clean-ups, zoos and more. During the month of April, Kohl s Associates volunteered more than 35,000 hours, resulting in more than $2 million in philanthropic grants being donated to youth-serving nonprofits nationwide. The success for the first year has inspired Kohl s to make this an annual event. Merchandise Vendor Supply Chain At Kohl s we work hard to keep our operations sustainable, but we know it doesn t stop with our stores and offices. In May of 2009, we began a program to measure the sustainability of our company and 322 of our top merchandise vendors through a formal sustainability survey process. We distribute the survey quarterly, asking our vendor partners to answer a 38-question self-assessment. 9

11 Sustainability Chain To achieve supply chain sustainability, we determined that vendor partners must first embrace a sustainability policy and assign sustainability management to a specific functional area or individual for long-term accountability. This determination is evidenced in the survey score weighting to the right. The survey is broken into the following major categories with associated possible points: Sustainability Survey Scoring Area Possible Points Management/Policy 30 Energy Management 15 Waste Management 15 Packaging 15 Emissions/Upstream 15 Sustainability Partnerships 10 Total Sustainability Survey Results Sustainable Supply Chain At the end of 2010, the top 322 merchandise vendors scored an average of 51 points on the sustainability survey. Any vendor scoring less than 30 points fell into an unacceptable sustainability rating and has been challenged to improve its commitment to resource conservation. The table to the right illustrates the range of 2010 survey scores. Scoring Range in Total Points Number of Vendors in Range Sustainability Category 0 43 Unacceptable 1 to 10 0 Needs Improvement 55 Vendors or 17% 11 to Needs Improvement 21 to Business As Usual 31 to Business As Usual 41 to Business As Usual 167 Vendors or 52% 51 to Business As Usual 61 to Business As Usual 71 to Good 81 to Better 100 Vendors or 31% 91 to Best Total Vendors 322 Sustainable Categories Vendor scores were banded into categories to assess overall supply chain sustainability and to provide a basis for future collaboration with Kohl s. The categories are shown above. While we believe that sustainability is both cost-saving and good for the environment, we also believe that collaboration is crucial. To foster dialogue on the subject of sustainability in 2010, Kohl s held five Sustainability Vendor Roundtable discussions attended by over 150 vendor representatives. The roundtables served as both an educational and conversational platform on the topic of retail sustainability and the importance of resource conservation as a business process. Looking to the Future We are pleased by our progress and the contributions of our Associates in reaching our goals this past year. We will continue to seek new ways to advance environmental solutions and remain steadfast in our commitment to our goals, our communities, and our promise to expect great things. 10

12 Partnerships EPA ENERGY STAR ; EPA Green Power Partnership; EPA SmartWay Shipper; Business for Social Responsibility; EPA WasteWise; U.S. Green Building Council Member; Sustainable Apparel Coalition This booklet was printed on paper made with chlorine- and lignin-free fiber that is FSC and SFI Fiber Sourcing certified, manufactured under acid-free conditions and printed using 100% non-toxic toner.