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SHOP PETSMART.COM STORE LOCATOR CONTACT US ABOUT RECYCLING ENERGY WATER PEOPLE Work toward “Zero Waste” (90% diversion) across our corporate and field operations Reduce average energy consumption across all PetSmart stores Reduce average water consumption across all PetSmart stores Engage and inspire our associates and community to Think Twice Develop partnerships and participate in industry discussions to advance environmentally sustainable initiatives A MESSAGE FROM OUR CEO METHODOLOGY REPORTS IN THE NEWS ©1999-2014 PetSmart Store Support Group, Inc. All Rights Reserved. By using this Website, you agree to our Conditions of Use , Legal Notices , and Privacy Policy .

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Page 1: ABOUT RECYCLING ENERGY WATER PEOPLE - …corporate.petsmart.com/sustainability/ES-reports/2014... · ABOUT RECYCLING ENERGY WATER PEOPLE ... more energy per square foot than most

SHOP PETSMART.COM

STORE LOCATOR

CONTACT US

ABOUT RECYCLING ENERGY WATER PEOPLE

Work toward “Zero Waste” (90%diversion) across our corporate and fieldoperations

Reduce average energy consumptionacross all PetSmart stores

Reduce average water consumption acrossall PetSmart stores

Engage and inspire our associates andcommunity to Think Twice

Develop partnerships and participate inindustry discussions to advanceenvironmentally sustainable initiatives

A MESSAGE FROM OUR CEO

METHODOLOGY

REPORTS

IN THE NEWS

©1999-2014 PetSmart Store Support Group, Inc. All Rights Reserved.By using this Website, you agree to our Conditions of Use, Legal Notices, and Privacy Policy.

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SHOP PETSMART.COM

STORE LOCATOR

CONTACT US

ABOUT RECYCLING ENERGY WATER PEOPLE

Our vision for sustainability at PetSmart is to ensureevery action we take supports the long-termeconomic, social, and environmental health of thecommunities and world around us.

Think Twice™ was created to illuminate, inspire andinvolve associates in the environmental component ofthis vision. It's a down-to-earth concept thatchallenges our business and associates to Think Twiceabout the environmental impact of the choices wemake. It can be as simple as recycling a water bottle,choosing to refill one, or not purchasing one at all.Building on simple behavioral changes, we can createa culture that Thinks Twice about the long termsustainability of everything we do.

Being a company that cares matters - to ourcustomers, our associates and the communities wetouch. We know that our customers want to beaffiliated with companies that recognize their purpose goes beyond dollars and cents. Through our effortswith Think Twice, we will continue doing more because it’s the right thing to do and because our customerscare.

©1999-2014 PetSmart Store Support Group, Inc. All Rights Reserved.By using this Website, you agree to our Conditions of Use, Legal Notices, and Privacy Policy.

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SHOP PETSMART.COM

STORE LOCATOR

CONTACT US

ABOUT RECYCLING ENERGY WATER PEOPLE

In order to focus our efforts most effectively, we’ve identified 5 areas of our business with high potential toreduce our environmental footprint and increase our overall efficiency. These opportunities—and the uniquechallenges that come with them—are outlined below.

PetSmart has unique energy needs. Not only do we have pets in our care 24/7, butthe operation of veterinary hospitals, salons and hotels leads us to use about 40%more energy per square foot than most other retailers. As we consider ways toreduce our energy dependence, we must do so without compromising the quality ofour services or the comfort and safety of our pets.

PetSmart uses almost a billion gallons of water each year. Millions of dogs arebathed in our grooming salons, and we operate high-quality fish systems in everyone of our stores. In addition, we care for pets around the clock in our 200+PetsHotels, ensuring they have adequate water to drink and a clean environment.While we are committed to reducing our water use, we will also maintain thehighest standard of care for our pets.

Approximately 230 million pounds of waste are generated each year from ourstores, distribution centers and corporate office. As we seek to create less wasteand recycle more, we must find solutions for some unique and unusual items,including 30+ gallons of pet hair from each grooming salon every day. Whilechallenging, we believe finding or creating those solutions will benefit our worldand business in the long run.

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With more than 53,000 employees across our stores, distribution centers andcorporate headquarters (known as the Store Support Group), engaging everyindividual in PetSmart’s environmental efforts is challenging. But as we aim tocreate a culture that simply Thinks Twice one action at a time, the resulting habitsof 53,000+ associates can have a tremendous positive impact on our business andthe world we live in.

At PetSmart, we recognize the power of working with others to support asustainable future for people and pets. We continually seek out opportunities topartner with like-minded businesses and organizations, participate in discussions,and brainstorm new ideas. When we work collectively within the industry, we canachieve a greater positive impact on the world that we could on our own.

©1999-2014 PetSmart Store Support Group, Inc. All Rights Reserved.By using this Website, you agree to our Conditions of Use, Legal Notices, and Privacy Policy.

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SHOP PETSMART.COM

STORE LOCATOR

CONTACT US

ABOUT RECYCLING ENERGY WATER PEOPLE

Work toward “Zero Waste” (90%diversion) across our corporate andfield operations

2011:Re-evaluated the recycling needs in each store and selected the appropriate size canister so that we could moreefficiently recycle corrugated cardboard

We began testing an in-store donation program with Good360, providing hardgoods (toys and supplies) to localanimal welfare partners

Single Stream Recycling was introduced at our headquarters (known as the Store Support Group), expanding thecapability and convenience of our recycling program

2012:PetSmart tested a system to return cardboard and stretch film from stores back to our Distribution Centers, hopingto raise our diversion rate. While this did not prove to be a viable option for PetSmart, we continue to work with ourwaste vendor to identify more efficient alternatives.

We donated more than 1 million discontinued hardgoods items to our animal welfare partners

2013

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We implemented Single Stream Recycling in about 8% of our chain and laid the groundwork to expand our overallrecycling capabilities

During our store uniform update, 80,000 pounds of associate shirts were recycled

Our hardgoods donation program provided 2,161,471 items to homeless pets

2014 & BeyondStores will begin stocking plastic bags made with a minimum of 25% recycled content

PetSmart plans to promote diversion across our chain both with increased recycling capabilities in our stores and are-designed associate engagement program to encourage behavior change

We will continue to pursue innovative recycling solutions for pet hair and pet food as well as materials from all storeremodels and new construction projects

©1999-2014 PetSmart Store Support Group, Inc. All Rights Reserved.By using this Website, you agree to our Conditions of Use, Legal Notices, and Privacy Policy.

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SHOP PETSMART.COM

STORE LOCATOR

CONTACT US

ABOUT RECYCLING ENERGY WATER PEOPLE

Reduce average energy consumptionacross all PetSmart stores

2011:PetSmart completed its first LEED Silver Certified Distribution Center in Reno, NV with an overall ENERGY STARrating of 85

2012:By upgrading and recycling 153 store HVAC units, we prevented approximately 801 metric tons of CO2 emissions

2013:We replaced old HVAC units with new, more efficient technology

In CA, we participated in a demand response program that reduced use of the grid during peak times

We continued to reduce the amount of IS Servers we operate and take advantage of the latest technologies

PetSmart tested LED lighting in areas of our corporate campus, known as the Store Support Group

2014 & Beyond:

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PetSmart will look at ways to better utilize the capabilities of the Energy Management System at our stores andupgrade the EMS at our Store Support Group campus

We will continue to explore efficient lighting and equipment options across the business

By pursuing an energy efficient store prototype, we can identify projects with the highest energy-saving potentialfor implementation across our chain

We plan to evaluate climate controlled habitats that would allow us to better focus the energy use within our stores

An enhanced engagement program will better communicate energy-saving opportunities to our associates

©1999-2014 PetSmart Store Support Group, Inc. All Rights Reserved.By using this Website, you agree to our Conditions of Use, Legal Notices, and Privacy Policy.

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SHOP PETSMART.COM

STORE LOCATOR

CONTACT US

ABOUT RECYCLING ENERGY WATER PEOPLE

Reduce average water consumptionacross all PetSmart stores

2011:The fish system in our Reno, NV LEED Silver Certified Distribution Center uses a 10,000 gallon repository to re-circulate water through the system, reducing total water usage by 90%

Flow meter adjustments optimized the water use and performance of our fish systems in stores

2012:PetSmart began reducing store fish system sizes across the enterprise

2013:We continued reducing the size of our fish systems and partnered with Arizona State University students to explorethe possibility of water reclamation in our stores

Our Salon Strategy team conducted a store-wide survey to generate water conservation ideas from associates andidentify viable opportunities for equipment and process changes

2014 & Beyond:

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Using what we learned from our Reno DC, the newest DC in Bethel, PA, features a 20,000 gallon reclamation tank,low-flow toilets, and other water-saving capabilities

PetSmart will soon implement a process change in our PetsHotels to reduce water consumption

By pursuing an energy efficient store prototype, we can identify projects with the highest energy-saving potentialfor implementation across our chain

We will increase awareness of water-saving behaviors among associates through an enhanced store engagementprogram

©1999-2014 PetSmart Store Support Group, Inc. All Rights Reserved.By using this Website, you agree to our Conditions of Use, Legal Notices, and Privacy Policy.

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SHOP PETSMART.COM

STORE LOCATOR

CONTACT US

ABOUT RECYCLING ENERGY WATER PEOPLE

Engage and inspire our associatesand community to Think Twice

PetSmart’s first Drive-Thru Recycling Event – 2011

Associates:

2011:Fresh Air Forums at our Store Support Group (HQ) campus were introduced to educate associates and solicitfeedback on sustainable practices

PetSmart hosted a paper and toner reduction contest at the SSG campus, enabling associates to see theirpaper/toner use in comparison to peers

We hosted our first bi-annual “Drive-Thru Recycling” event to promote the donation/recycling of various useditems

Single Stream Recycling was introduced at our SSG campus, accompanied by educational signage to promote useof the new program

2012:We introduced a “Green Associate of the Year” award recognizing an outstanding contribution to environmentalsustainability at PetSmart

2013:Our Salon Strategy team conducted a survey to generate water conservation ideas from store associates andencourage awareness of water-saving behaviors

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We held a raffle open to all store associates who submitted an idea to save energy in our stores

Additional signage and canisters were added to our SSG campus to increase awareness and convenience ofrecycling

2014 & Beyond:A newly-designed Store Associate Engagement Plan will educate associates about environmental sustainability,provide a platform for exchanging ideas, and recognize associates who Think Twice

We will explore new opportunities to promote sustainable practices at SSG as well as our Distribution Centers

Pet Parents:

2011:We began selling and promoting reusable canvas bags in our stores, and a portion of sales benefitted PetSmartCharities

2012:Our first external Environmental Sustainability Report was published, providing Pet Parents and the generalpublic with transparent information about our environmental footprint

2014 & Beyond:PetSmart will encourage Pet Parents to recycle dog andcat food cans through channel signage in our storesand sections of our website, directly combating the lowrate of pet food can recycling

Pet Parents will receive recycled content plastic bagswith Think Twice messaging at our registers as a moreenvironmentally friendly alternative to regular plasticbags

We will continue to provide Pet Parents with transparentinformation about our values and environmental impactthrough our Sustainability Reports

©1999-2014 PetSmart Store Support Group, Inc. All Rights Reserved.By using this Website, you agree to our Conditions of Use, Legal Notices, and Privacy Policy.

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SHOP PETSMART.COM

STORE LOCATOR

CONTACT US

ABOUT RECYCLING ENERGY WATER PEOPLE

Develop partnerships and participate in industry discussions to advanceenvironmentally sustainable initiatives

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2011:PetSmart began an ongoing partnership with Good360 to facilitate the donation of hardgoods from our stores tolocal adoption partners

PetSmart became an active member in the Retail Industry Leaders Association (RILA) Sustainability Committee,which serves to drive innovation and collaboration around sustainability in retail

2012:PetSmart partnered with PetSmart Charities to create Everyday Adoption Centers that utilize extra space in ourstores while saving the lives of homeless pets

We sponsored Arizona State University students to investigate process improvements in our salon operations, aswell as design a lamp that converts dog waste into energy at a local park

2013:PetSmart partnered with Arizona State University’s Engineering students to investigate store water reclamationopportunities

We became a member of the Pet Industry Sustainability Coalition (PISC) and began collaborating with other leadersto drive advancements in sustainability across the pet industry

Our procurement team worked with Staples to develop a store-supply product assortment that reduced GHGemissions by 126,500 pounds, saving 580,668 gallons of water and 968 trees

Our partners at Banfield Pet Hospital diverted 227,280 pounds of medical waste and used materials from landfillsand recycled over 56 tons of paper, saving the equivalent of 953 trees

PetSmart closed out the year by opening the first “Pop-Up Park” (PUP), a fully-functional and portable dog park,alongside Keep Phoenix Beautiful, that will maximize the use of vacant land and encourage enjoyment of theoutdoors

2014 & Beyond:We plan to partner with Phoenix-based SEED SPOT to find innovative, entrepreneurial solutions that will support oursustainability goals and values

Through the collaboration of internal partners, recycled content bags displaying the Think Twice logo will replaceexisting plastic bags in our stores

In addition to enhancing existing partnerships, we continually seek new opportunities to learn from others and worktogether to promote a healthy environment for people and pets

©1999-2014 PetSmart Store Support Group, Inc. All Rights Reserved.By using this Website, you agree to our Conditions of Use, Legal Notices, and Privacy Policy.