Kristin rock best practices energy and the bottom line

Pets & Power – Energy Efficiency at PETCO

About PETCO

Specialty retailer providing products, services and advice for pet parents

National footprint – more than 1000 locations in 50 states

Adding 50+ locations each year

Average store size – 15,000 sq ft

Primary drivers of energy consumption – lights and HVAC

Secondary drivers of energy consumption – aquarium pumps/lights, small animal habitat ventilation, grooming (dryers, clippers, etc)

Energy Efficiency Strategy Despite growth, our goal is to minimize any

increases in energy usage and carbon emissions

Why is energy efficiency a priority? Reduce operational costs Reduce impact on the environment Provide positive message of environmental

stewardship

Where are the best opportunities for PETCO? Behavioral changes (low cost/no cost) Capital investment programs – ROI under 4 years

How will this impact our stakeholders? Customer experience Associate safety/satisfaction Animal welfare

The First Wave of Energy Efficiency

Energy Management Systems (EMS) Began installing EMS in 2007 More than 95% of stores have EMS to

remotely control lighting/HVAC and load shedding

Reducing energy usage by nearly 40,000,000 kWh/year

Efficient Lighting T-8 lamps and efficient ballasts in all new

stores Lighting curtailments and dimmable

ballasts Elimination of HIDs and T-12s through

lighting retrofits Using LEDs in specific applications

(signage, spot lighting)

The First Wave of Energy Efficiency

Sustainable Building Practices Adopt similar requirements for new construction

and existing space Highly efficient HVAC systems Occupancy sensors to control lights in stock

rooms, restrooms, break rooms, offices Highly reflective white roof membranes and R-30

insulation Installation of ENERGY STAR rated appliances Smaller building footprint Use of low-VOC (volatile organic compounds) in

sealants, paints, adhesives Installation of low-flow plumbing fixtures

Despite adding 114 stores, total energy usage DECREASED from 2007 – 2009

Total energy consumption per square foot has improved by more than 15%

These efficiencies are realized year after year

The First Wave of Energy Efficiency

What Have You Done for Me Lately?

“Low hanging fruit” has been harvested but the expectation is to continuously improve efficiency and keep costs/emissions flat

So what’s next? Incremental reductions may be smaller, but when

applied across a large portfolio still have impact Behavioral, store-level changes are key Exploring new technologies and alternative

generation – increase ROI requirements Revisit current standards, specs and protocols to

wring out additional reductions Set goals and strategy with long-term sustainability

in mind – think beyond cost reductions

What Have You Done for Me Lately?

Internal awareness campaign – Healthy Planet, Healthy Pets

Quarterly Conservation Challenges Prizes awarded to winning stores First challenge resulted in >3,000,000 kwh reduction Messaging tied to sustainability

Energy Star Partnership All sites in Energy Star Portfolio Manager Pursuing Energy Star Certification Use scores to identify “energy outliers” and

encourage friendly competition

What Have You Done for Me Lately?

Demand response – testing programs in 3 states, representing 20% of our store locations

Partnering with landlords to test solar, green roofs

Deploying daylight harvesting in select markets and store footprints

LEED certification