MAXIMIZING ON-SITE RENEWABLE ENERGY This pillar involves factoring renewable-energy production, such as on-site solar power, into the construction of all of our new sites, and retrofitting renewable-energy production into existing ones. As an example, we have already installed solar panels at manufacturing and distribution sites in France and the U.K., and are currently planning more in the U.S.A. and Asia. PURCHASING GREEN TARIFFS The purchase of green tariffs is an interim measure while we look for opportunities for direct investment in new renewable-energy projects. In each region, procurement and facilities managers will purchase green tariffs wherever available on the local market. Our Green Power Policy & Implementation Guidelines set our standards and criteria for buying green-tariffs, and specify our preference for solar, geothermal, wind, hydroelectric (small scale, low impact), and wave/tidal as the underlying energy source. Currently, all the electricity we use in our direct operations in France and the United Kingdom is covered by a green-tariff contract. These two countries represent approximately 35 percent of CHANEL’s overall global electricity use. INVESTING IN COMMUNITY RENEWABLE-ENERGY PROJECTS Over time, we will try to gradually phase out green tariffs in favor of providing direct financial support for new renewable-energy projects at a community level in key regions. 100 PERCENT SOLAR POWER AT PISCATAWAY In the United States, New Jersey has some of the country’s most ambitious rooftop-solar-power deployment goals. To meet these goals, businesses and residents across the state must commit their rooftops and parking lots to solar energy. CHANEL is proud to join this growing movement, and we have recently signed a 20-year power purchase agreement in support of a new 3,200 MWh/year solar deployment at our distribution facility in Piscataway. The generation capacity is equivalent to the site’s total annual electricity use. Working closely with a local solar developer, we were able to maximize capacity for on-site solar by installing solar-panel canopies over the parking lot, as well as a rooftop solar array. CHANEL’S CLIMATE STRATEGY