Sustainability at Sears

November 17th, 2009 Climate Change will define the 21 st century

Sustainability at Sears November 17th, 2009 Priority 1: Make it easy for our customers to be green Priority 2: Become carbon neutral Priority 3: Nurture a culture of sustainability Sears Sustainability Roadmap – Priorities

Sustainability at Sears November 17th, 2009 Making Better Choices Renewable resources products are made from materials that are better choices for the environment, e.g., Organic cotton Bamboo Soy Recycled PET Fair Trade certified

Sustainability at Sears November 17th, 2009 Making Better Choices Healthy Home is all about improving and maintaining healthy indoor air quality and clean drinking water. This includes: Low VOC materials such as paint, carpets, and finishes on furniture, floors, blinds, etc. Air + water filters

Sustainability at Sears November 17th, 2009 Making Better Choices Uses Less Power takes energy efficiency to the next level. These products and services contribute to: help customers reduce their energy bills. less power usage, increased energy efficiency

Sustainability at Sears November 17th, 2009 Eco products with positive payback

Sustainability at Sears November 17th, 2009 Products that promote energy efficiency

Sustainability at Sears November 17th, 2009 Becoming Carbon Neutral Sears is committed to reducing the environmental impact of its operations through strategies related to:  Reducing the quantity of paper sourced  Increasing the efficiency of lighting and HVAC systems  Improving the effectiveness of waste diversion procedures

Sustainability at Sears November 17th, 2009 Sears Canada Carbon Footprint Total Emissions: 256, 255 Tones

Sustainability at Sears November 17th, 2009 Sustainable Transportation Key actions to promote sustainable transportation in 2009:  HQ relocation:  Loss of 200+ free parking spots  Gain direct access to subway  Retain indoor bicycle parking + change room  RideShare service launched  SLH begins trailer side-skirts roll-out, complements anti-idling, speed delimiters, aerodynamic fairings, etc.

Sustainability at Sears November 17th, 2009 Nurture a Culture of Sustainability “Internal locus of control” is key to sustainability culture change, with feedback and incentives in place for associates and customers Key actions in 2009:  Green Champions active in large HQ business units  Green teams established in majority of stores/ facilities  Monthly waste + energy data  Monthly activities and feedback  Green Bag lunch series at HQ  Collecting success stories, empower the grassroots

Sustainability at Sears November 17th, 2009 What contributes most to the magazine’s carbon footprint:  Travel to research story  Head office operations  Paper manufacturing  Printing  Distribution National Geographic Magazine 1.27 lbs CO2 /magazine 70% Paper type Fuel source at mill Carbon footprint: 1.82 lbs CO 2 /magazine

Sustainability at Sears November 17th, 2009 Carbon in Atmosphere Raw Material Extraction Design & Production Packaging & Distribution Use & Maintenance Disposal 2-4%2-5%0.5%90-95%0.5% 240kg (est.) Data courtesy of : BSH Example: Refrigerator Our carbon footprint is more than our internal operations

Sustainability at Sears November 17th, 2009 Marks & Spencer’s carbon footprint (2008) Total M&S Direct 514,000 t CO 2 / year 10% M & S Internal Total M&S Upstream 4,933,000 t CO 2 / year 90% Upstream: (Suppliers) - building energy use (~250t) - travel (~50t) - food (~2,700t) - clothing (~2,000t)

Sustainability at Sears November 17th, 2009 Total M&S Direct 514,000 t CO 2 / year Marks & Spencer’s carbon footprint Direct: M&S Downstream: (Customers) Total M&S Downstream 2,142,000 t CO 2 / year - building energy use (~250t) - travel (~50t) - clothing care (~1,000t) - customer travel (~1,000t) - food (~100t)

Sustainability at Sears November 17th, 2009 Sustainability at Sears Please directs questions, comments and inquiries to James Gray-Donald, AVP, Sustainability Leader,