ENVIRONMENTAL SUSTAINABILITY AT MEIJER - ERIK PETROVSKIS, PHD, PE OCTOBER 4, 2019 - PURE OAKLAND WATER

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ENVIRONMENTAL SUSTAINABILITY AT MEIJER - ERIK PETROVSKIS, PHD, PE OCTOBER 4, 2019 - PURE OAKLAND WATER
Environmental Sustainability at Meijer
         Erik Petrovskis, PhD, PE
             October 4, 2019

             © Copyright 1996
                           -2019 Meijer, Inc. Confidential and proprietary
ENVIRONMENTAL SUSTAINABILITY AT MEIJER - ERIK PETROVSKIS, PHD, PE OCTOBER 4, 2019 - PURE OAKLAND WATER
Agenda
1. Our Team
2. Meijer Environmental Commitment
   1. Environmental Compliance
   2. Local and Sustainable Products
   3. Carbon Footprint Reduction
   4. Waste Reduction
   5. Responsible Growth
3. Materiality Assessment
4. Q&A

                                       1
ENVIRONMENTAL SUSTAINABILITY AT MEIJER - ERIK PETROVSKIS, PHD, PE OCTOBER 4, 2019 - PURE OAKLAND WATER
Purpose
To grow as a “best-in-class” retail environmental management team to fulfill Meijer’s
Environmental Commitment.

                                               • Align with Meijer purpose and values
                                               • Deliver high quality work products
                                               • Meet our customers’ schedules
                                               • Build stakeholder relationships

                                                                                        2
ENVIRONMENTAL SUSTAINABILITY AT MEIJER - ERIK PETROVSKIS, PHD, PE OCTOBER 4, 2019 - PURE OAKLAND WATER
Environmental Work Flow

         Due Diligence &
          Remediation

          Compliance

          Sustainability

                           3
ENVIRONMENTAL SUSTAINABILITY AT MEIJER - ERIK PETROVSKIS, PHD, PE OCTOBER 4, 2019 - PURE OAKLAND WATER
Purpose-Based Sustainability
Enrichingthe lives of the people in the communities we serve

                                                               4
ENVIRONMENTAL SUSTAINABILITY AT MEIJER - ERIK PETROVSKIS, PHD, PE OCTOBER 4, 2019 - PURE OAKLAND WATER
Meijer Heritage and Environmental Commitment
                                   Environmental compliance

                                   Local & sustainable products

                                   Carbon footprint reduction

 "I want to leave the world in a
 little better shape than when I
                                   Waste reduction
          entered it.“

                    Fred Meijer    Responsible growth
                                                                  5
                                                                      5
ENVIRONMENTAL SUSTAINABILITY AT MEIJER - ERIK PETROVSKIS, PHD, PE OCTOBER 4, 2019 - PURE OAKLAND WATER
Sustainability Council
                          Sustainability
                              Plan

            Meijer
         Sustainability       Communication
           Council

                          Environmental
                            Footprint

                                              6
ENVIRONMENTAL SUSTAINABILITY AT MEIJER - ERIK PETROVSKIS, PHD, PE OCTOBER 4, 2019 - PURE OAKLAND WATER
Sustainability Plan 2021

                  Sustainability Council

                     Merchandising

                    Retail Operations                        Aligned with Meijer
 Meijer 2021                                 Meijer 2021
Sustainability       Supply Chain &         Sustainability   Business Areas
                     Manufacturing           Objectives
    Plan
                 Properties & Real Estate

                    Communications

                                                                              7
ENVIRONMENTAL SUSTAINABILITY AT MEIJER - ERIK PETROVSKIS, PHD, PE OCTOBER 4, 2019 - PURE OAKLAND WATER
Environmental Compliance
ENVIRONMENTAL SUSTAINABILITY AT MEIJER - ERIK PETROVSKIS, PHD, PE OCTOBER 4, 2019 - PURE OAKLAND WATER
Compliance Management System

                               9
Compliance Programs

                      10
Better Products
Local and Organic
1,000s of Local Products

                           12
Meijer Packaging Goals

1. Meijer Own Brand
                  packaging will 100%
                                 be recyclable,
                          2025
   reusable, or compostable by
2. How2Recyle
          labeling on
                    True Goodness
                              products by
   2022
3. Meijer Own Brand
                 packaging to be composed
                                       20%of
   recycled
          material by
                    2025

                                                  13
Energy Efficiency
FY2018 Carbon Footprint
      CO2e by Activity Type
                                               CARBON INTENSITY (MT
                                                                 2 E/1000
                                                                     CO   FT
                                                                           2)

                         Electricity
      12%                                23
   11%                   Transportatio        22.0
                         n               22
   4%                                                 21.0
                         Natural Gas
                                         21
            73%
                         Refrigerants    20
                                                             19.0
                                         19                           18.6
                                                                                18.1
                                         18

                                         17

                                         16
                                              2014   2015    2016    2017       2018

                                                                                       15
Air Emissions and Energy

Fleet
  • Meijer fleet 20% more efficient than national average

Refrigeration
  • Industry average leak rate: 25%
  • GreenChill partner leak rate: 12.9%
  • Meijer leak rate: 8.6%

                                                            16
Store Electricity Use Improvements
29% reduction since 2005

                                      Retail Electric Use Per Square Foot
             33

             31
  kWh/SQFT

             29

             27

             25

             23
                  05   06   07   08      09    10     11          12   13   14   15   16   17   18
                                                           Year

                                                                                                     17
Energy Efficiency Projects

• Upgrade refrigeration, HVAC and coolers
• Optimized refrigeration and HVAC performance
• Improved lighting efficiency
     • 2018 new stores and beyond have all-LED
       lighting
     • Full all-LED retrofit by 2021

                                                 18
Renewable Energy

                          Renewable Energy
                             Strategy

           Onsite solar     Power Purchase   Renewable Energy
            projects         Agreements         Credits

                                                                19
Waste Reduction
FY2018 Waste Footprint
Divert 70% of waste by 2025
      Total Company: 323,075 tons
                2%
                                                      % of Company Total
                                              4% 6%
                              Recycling
                                                            Distribution
          11%
                              Landfill
                                                            Retail
                     47%      Organics
                              Recycling       90%           Manufacturing
        40%
                              Food donation

                                                                           21
Waste Reduction

 2018 Meijer
Waste Diversion     60%

                   + Retail Food
                  Waste Recycling        70%

                               + Optimization of
                               Plastic Film and
                                 Cardboard         72%+
                                  Recycling
                                                          22
Food Donations

                    In 2018, Meijer stores donated the following to local food banks (in lbs)

 2,305,800    4,383,200   2,515,700    453,400       1,010,400
dry and frozen bakery       meat      deli and dairy produce         10.7 million in            8.5 million
   goods                                                                 total                    meals

                                                                                                       23
Retail – Compost and Animal Feed

                                   24
Manufacturing Food Waste – Current Practice
     Middlebury Central Kitchen
                                       Holland and Tipp City Dairies

        Lansing Fresh Assembly

                                  97% landfill
                                           -free

                                                                       25
Green Buildings
Design and Construction
LEED and Brownfields
• 14 USGBC certifications to date
   • Allen Park was first LEED certified
     store in 2007 (silver)
   • Norton Shores was first major
     supercenter remodel LEED
     certified. 95% of construction
     waste was recycled
   • Detroit was our first supercenter in
     the City (silver)
   • Wauwatosa was our first LEED
     certified store in Wisconsin

                                            27
Stormwater
Green Infrastructure – 279 Manistee

• First test site for porous
  pavement
• Additional LID/GI practices
• Cost competitive
• Comparable maintenance

                                      28
Stormwater
Green Infrastructure – Site Suitability

                                          29
Stormwater
Green Infrastructure – Site Suitability

                                          30
Stormwater
Green Infrastructure – 306 Warren

                                    31
Stormwater
GI Parking Lot Retrofit – 212 ReynoldsburgOH

                                               32
Materiality Assessment
Materiality Assessment Process

                                      Meijerengagedwith:
                                       3,000+Customers
                          VALIDATE     14 External Stakeholder
 IDENTIFY    PRIORITIZE   AND APPLY     Groups
                          OUTCOMES     25+ Meijer Team
                                        Members (including 18
                                        interviews)

                                                        34
Customer Survey

              …
How many customers

  areat least moderately familiar
                            with          80%
  environmental issues?

  think that environmental issues
                               at least
                                   are
  moderately important
                    ?                     84%

  will pay a premium for sustainable products
                                      at
  least sometimes?                       90%

                                                35
Results
                                                                                                    Safety &

             Most important
                                                                                                transparency of
                                                Fuel efficiency of          Food waste             products
                                Increase              fleet
                              recycling and
                                  reuse
                                                                       Product
                              Customer recycling and                 traceability             Reducing GHG
     MATERIALITY

                               reuse opportunities                                              emissions

                                  Inbound logistics efficiency                      Local sourcing
                                       (fuel, packaging)

                                  Water use                           Renewable energy
                                  reduction
                                                                                     Supplier environmental
                                                                                        risk management
                                                                                                     Most important
                                                           BUSINESS VALUE
                                                                                                                      36
37
Plastics waste reduction

                      Plastic packaging

                           Plastic bags

                      Beach cleanup
                                          38
Facilitating Sustainability – Take Aways
http://meijercommunity.com/sustainability

• Lead with purpose
• Leverage existing business strategies
• Engage employees with interest in sustainability
• Utilize a cross-functional team
• Dispel myths with metrics
• Set achievable goals and stretch targets

                                                     39
Academic Collaborations

                          40
Questions?
erik.petrovskis@meijer.com
     616-735-7101
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