CEO’S MESSAGE OUR ESG STRATEGY DASHBOARD PEOPLE SUPPLY CHAIN ENVIRONMENT TRANSPARENCY REFERENCE TABLES Energy Efficiency Renewable and Low Carbon We have regional energy management teams that are responsible for Energy Procurement managing our energy consumption and costs, analyzing, and improving current operational performance, and testing, prioritizing, and implementing energy We are also delivering on our environmental sustainability strategy by actively efficient technologies and products. We continuously look for opportunities increasing our use of renewable energy through new regional green power and technologies to lower our global operational energy use from lighting, contracts. As of FY21, we now have operations in nine countries across Europe heating, ventilation, and air conditioning systems across both our owned and sourcing 100% renewable energy, representing 700 sites and 85% of our total leased premises. electricity use (in MWh). Further, green power comprises 23% of our power sourced in APAC (34 sites) and 6% of our power sourced in North America In FY21, we completed LED lighting replacements across 100 front- or (137 sites). back-of-house of stores which will result in estimated energy reductions of 748,467 kWh/year. Further, from proactive HVAC retrofitting efforts in the U.S., Building from our contracting in FY20 for nuclear energy to supply the electricity We turned our environmental we saved approximately 641,351 kWh. We continue to enhance this program. of our retail stores in Ohio, in FY21, we began participating in a Natural Gas Balance Program with DTE Energy in Detroit. This program offsets 100% of our insights into action, charting Under an EU energy efficiency directive, all non-SMEs are required, at least every natural gas usage, with carbon offsets generated from methane from landfills, four years, to audit high quality and cost-effective energy. Currently, the following the proceeds of which are used to procure additional RNG into DTE’s supply a path to a Net Zero future countries require on-site store visits from certified auditors: Spain, Netherlands, mix which helps to significantly reduce the GHG impact of methane. Our FY21 for our Company. the United Kingdom, Germany, Italy, and France. In Hungary, registration with participation in the program helped to negate 24 metric tons of natural gas- the appropriate energy and utilities regulator is required. The first round of energy related CO e emission (from both offsets and acquisition of RNG) for the HVAC audits was completed by certified third parties in FY15, and a second round 2 used in our 14 stores in Detroit. was completed in FY19-20. Typical information that may be evaluated during these audits includes energy consumption invoices, store drawings, and leased In FY21, we decommissioned our aging Milwaukee data center and replaced company car fuel consumption. the capacity with two new energy-efficient hosted facilities in Illinois and Texas. The new generation of our server systems is 29% more energy-efficient than the In France, our stores will also be required in FY22 to begin to implement a series previous generation, allowing us to use fewer servers to accomplish the same of national energy reduction targets (40% by 2030, 50% by 2040, and 60% workload. They consume 14% less electricity for the same amount of storage by 2050). We expect to primarily undertake LED lighting retrofits and installation space with 10x the performance. of smart meters to help monitor and reduce our consumption. The new facilities are also designed with many energy- and cost-saving features, such as high-efficiency Uninterruptible Power Supplies, Power Distribution Units, and variable-speed fan drives. Building management systems, sensors, and flexible infrastructure allow precise delivery of the right cooling at the right time to the right space. This cooling process is also water-free, while minimal amounts of water are used for humidification and facility maintenance. These new third-party facilities also utilize features of the local environment to further decrease their carbon footprint; the Texas facility utilizes 100% renewable energy from solar power, while the Illinois facility utilizes outside air for cooling during the winter. In total, the decommissioning of the Milwaukee site has reduced our data center power usage by 54 kWh/month, or 48% overall. 4848