Kohl's works hard to keep its operations sustainable, but knows it doesn't stop with our stores and offices. In 2009, we began a program to work with our business partners to consider sustainability as part of the way to do business. It is our belief that sustainability is both cost saving and good for the environment.

There are two areas of focus in the supply chain area:

Merchandise Vendors and Carriers

Merchandise vendors and carriers receive a sustainability score to measure overall performance in this area. These scores are used to foster discussion and collaboration with Kohl's and its business partners. Kohl's initially asks its partners to embrace three areas that will help them with environmental stewardship. They are:

1. Adopt a sustainability mission or policy for the organization.
2. Assign management to a specific functional area/associate.
3. Develop metrics and gather data to measure progress within the vendor's industry/sector.

Nonmerchandise Vendors

Kohl's has implemented a sustainable purchasing policy within its procurement areas. All non-merchandise vendors are required to answer a series of questions on environmental management/content as part of the procurement process.

U.S. Environmental Protection Agency (EPA) ENERGY STAR

Kohl's has been a member of the ENERGY STAR program since 1998. All facilities Kohl's operates are entered into the ENERGY STAR Portfolio Manager to measure energy efficiency. Each location is given a score and this valuable tool helps Kohl's target buildings to improve energy efficiency. Kohl's has more than 500 store locations which have earned the ENERGY STAR label for superior energy efficiency in the retail section.

EPA Green Power Partnership

Kohl's has been a member of the EPA Green Power Partnership since 2006. Kohl's achieved membership in the leadership circle for using at least 30% green power in 2009. Currently, Kohl's uses 100% green power in its operations through use of renewable energy credits and on-site solar generation.

Kohl's use of Green Power in kilowatt-our (kwh)

Year	kWh Green Power	%
2007	201,376,000	20%
2008	236,017,000	20%
2009	851,478,000	71%
2010	1,367,376,000	100%

EPA WasteWise

Kohl's joined the WasteWise program in 2006 to formally measure and report its long-standing commitment to waste reduction and recycling. Currently, Kohl's recycles more than 130,000 tons of waste each year.

EPA SmartWay Shipper

In 2007, Kohl's joined the SmartWay program to measure the efficiency of the miles it uses to move merchandise to its stores. Currently, Kohl's annually reports its domestic transportation including rail miles to move merchandise and fixtures to store locations. Besides reporting its own miles, Kohl's requires its carriers to be members of the EPA SmartWay program which promotes overall fuel efficiency and innovation for US carriers.

EPA Climate Leaders

Kohl's became part of the Climate Leaders program in 2007. This program works with companies in the US to measure, report and reduce greenhouse gas emissions. The guidance for calculation of these emissions is based on the World Resource Institute protocols for emissions measurement. Kohl's measured its carbon footprint for the first time in 2007 and updates this annually to the Climate Leaders program.

Awards
EPA Green Power Leadership Award: 2007
EPA Green Power Leadership Award—Site-Generation: 2008
EPA SmartWay Shipper Excellence Award: 2008, 2009
EPA Green Power Partner of the Year: 2009
EPA WasteWise Green Purchasing Award: 2009
EPA ENERGY STAR Partner of the Year: 2010

Associates at Kohl's care about the environment and consider it in their everyday decisions at Kohl's. They also come up with the best ideas to improve Kohl's as a green operation. Associates and the public can send their ideas to an e-mail box at: 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. All three gardens are tended by Kohl's associate volunteers. In the first year, more than 600 pounds of healthy vegetables were donated.

Growing Power

Growing Power is a nonprofit urban agriculture farm in the inner city of Milwaukee, located about five miles east of Kohl's Corporate Campus. Associates at Kohl's engage with Growing Power in a variety of ways to support its mission. Here are a few ways Kohl's partners with Growing Power.

• Corporate Garden—use of Growing Power plants and compost
• Cafeteria Waste Composting—24,000 pounds of preconsumer organic waste are sent to Growing Power to help them "grow" soil
• Weekly Farmer's Market
• Weekly Market Basket Program of Healthy Fruits and Vegetables at an affordable price
• Monthly Associate in Action volunteer events

Every person can lend the environment a helping hand by focusing on green initiatives whether at work, traveling or at home. Here are ways that you can make a difference in your daily life.

• Bring your plastic bags to any Kohl's store to be recycled.
• Carpool to work and other events to save costs on fuel and car maintenance and reduce carbon emissions.
• Purchase renewable energy credits as part of your utility usage and receive a portion of your electricity from wind, solar or other renewable forms.
• Purchase a hybrid car and make home improvements which qualify for energy tax credits.
• Wrap your water heater (if it's more than five years old) in an insulating jacket to reduce 1000 pounds of carbon emissions per year.
• Keep your water heater thermostat no higher than 120 degrees Fahrenheit and you can reduce carbon dioxide emissions by 550 pounds per year.
• Use efficient lighting. Replace incandescent bulbs with compact fluorescents. A 75-watt incandescent bulb can be replaced with a 18w compact fluorescent bulb. At a minimum, replace the bulbs in all lamps that are used 30 minutes a day or more. Replace regular incandescent lightbulbs with compact fluorescent CFL bulbs -- they are far more efficient, lasting up to ten times longer.
• Bring your own cloth or fabric bags when shopping. Purchase a Kohl's Reusable Shopping Bag with your next online order.
• Consider buying organic fruits and vegetables that are grown using earth-friendly farming and processing methods.
• Water your lawn and plants in the early morning when temperatures are cooler to minimize evaporation.
• Drive a car that's tuned up and has its tires properly inflated to save on fuel costs as well as reduce carbon dioxide emissions. A tune-up could boost your miles per gallon anywhere from four percent to 40%; a new air filter could get you 10% more miles per gallon. Take your roof rack off your car when you aren't using it for more savings.
• Recycle aluminum cans, glass bottles, plastic, cardboard and newspapers that can reduce your home's carbon emissions by 850 pounds per year.