Limited Brands Three Limited Parkway Columbus, OH 43230 Phone: (614) 415-7000 Green Program Contact www.LimitedBrands.com Company Green Practices What types of green programs has your company implemented? Managing the natural resources entrusted to our care is an integral component of our commitment to stewardship. We believe effective management begins with the thoughtful procurement of supplies, equipment and merchandise; carries on through to our daily business operations and reaches all the way to our customer. Interwoven throughout every step is our commitment to: • • • • • • Minimize waste generation and maximize recycling Conserve energy and preserve natural resources Promote the increased use of recycled content paper Select and partner with environmentally responsible suppliers Forge relationships with environmental agencies and nongovernmental organizations Hold ourselves accountable for our environmental stewardship efforts We’re also dedicated to long-term environmental stewardship, believing that by focusing on the future now, we’ll ensure that the global resources we all enjoy are here for generations to come. Going forward, our commitment is to move forward, consistently improving upon and expanding our environmental stewardship efforts, while continuing to collaborate with other advocates who share our values. Personal care products that are returned from our stores to our distribution center for recycling are packaged and shipped in five-gallon plastic pails. We then empty the containers and return them to the stores for reuse. In 2004 we reused 27,400 plastic pails, equaling 55,000 pounds of plastic. In 2005 we reused 38,000 pounds of plastic pails. Additionally, in 2005 we changed the absorbent used in our recycling containers from vermiculite, a mined substance, to 95 percent recycled-content fiber pads. This change helps promote the market for the recycled content pads, and eliminates the need for 30,000 pounds (15 tons) of vermiculite each year. 324 CAREER LIBRARY © 2008 Vault.com, Inc. Vault Guide to Green Programs Limited Brands Who is accountable for helping your company and its green programs meet its goals? “Limited Brands has long been recognized as a values-based organization. We are committed to building a culture that fosters mutual respect, open communication and sharing. As an enterprise, we have chosen to live our professional lives by this philosophy … we consistently try to do what’s right. This behavior manifests itself in how we treat each other, how we treat customers and how we support the communities in which we live and work. That’s what makes me so proud of the women and men who represent Limited Brands.” - Les Wexner, Chairman & CEO How do your products/services reflect your green philosophy? By reusing items, we’re eliminating the need to purchase new supplies made from virgin materials. When our suppliers send merchandise to us, it comes in specially designed, reusable cartons that we helped to develop. Working with our apparel suppliers and a packaging materials expert, we designed unique cartons that are manufactured using less raw material than previous containers, designed to hold more merchandise, stack more efficiently and require less space on transportation vehicles. After we receive the cartons, we reuse them by filling them with the merchandise destined for our stores, thus reducing the number of new cartons we have to purchase. In 2003 Limited Brands completed the migration away from polyvinyl chloride (PVC) containers for our Bath & Body Works and Victoria’s Secret personal care products, resulting in a reduction of PVC usage of 4.3 million pounds per year. Those products are now contained in polyethylene terephthalate (PET) which is the most widely used plastic in consumer packaging. It’s readily recycled in most communities and is manufactured according to a process that is considered to be more environmentally friendly than PVC manufacture. How does your business model promote green? Like most industries, the retail industry uses natural resources daily, such as energy, water and forest products. At Limited Brands, we believe it’s how you manage resources entrusted to your care that matters. That’s why, as an enterprise, we’re dedicated to the responsible use and conservation of natural resources. Merchandise that is received from vendors is often shipped on wood pallets. We reuse the pallets to handle merchandise in our distribution centers. Pallets that are damaged are sent for reconditioning and redistributed for further use. Those pallets that are unusable are ground into fine, wood shavings, and ultimately are used as mulch for landscaping purposes. Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to www.vault.com/diversity CAREER LIBRARY 325 Vault Guide to Green Programs Limited Brands Have your company’s facilities been certified as eco-friendly work environments? Lighting consumes a great deal of energy. We’re focused on reducing energy consumption in our 3,500+ stores and facilities by increasing the energy efficiency of our lighting. Since 2002, we’ve been outfitting our stores with more energy-efficient light fixtures. While new stores have been built with more efficient lighting technology, we have also been able to reduce energy consumption by more than 25 percent in over 800 of our older stores through an extensive lighting retrofit project. Other lighting projects in 2005 and 2006 led to more than half of our stores being outfitted with even more energy-efficient bulbs. Does your company intentionally do business with suppliers or third-party vendors that have green practices in place or use any preferences or requirements that suppliers or vendors meet key environmental benchmarks? Given this commitment to environmental stewardship, we are proud of our new partnership with ForestEthics to raise environmental standards in the catalog industry. As detailed below, we are taking measures to ensure that the pulp used in the paper we procure for catalogs is not sourced from endangered forests. We are working to continuously improve the environmental attributes of the paper we use, including the levels of recycled and Forest Stewardship Council (FSC) certified content. This initiative resulted from extensive and thoughtful discussions with ForestEthics. In December 2007, we were honored to receive the Boreal Stewardship Award from the Canada’s Boreal Leadership Council. During the last three years, we have learned more and more about the Canadian Boreal Forest. The more we have learned, the more committed we have become to Boreal Forest conservation, to help ensure survival of caribou and advocating for First Nations communities. Can you share with us measurable results detailing the effectiveness of your green initiatives? Limited Brands understands the vital role forests play in our global ecosystem. We believe, working together, we can ensure the environmental integrity of our forests, while responsibly utilizing one of the greatest renewable resources we have. That’s why we’re committed to seeking out and working with suppliers and manufacturers who adhere to responsible forest management practices. Working with our paper products suppliers, we have successfully been able to reduce the demands on our forests by steadily increasing our use of post-consumer waste (PCW) paper. For example, both our 2004 and 2005 annual report and proxy 326 CAREER LIBRARY © 2008 Vault.com, Inc. Vault Guide to Green Programs Limited Brands statement were printed on PCW paper. Additionally, we’ve increased the use of paper certified to FSC standards. We have built on our successes, and in 2007: • • • • • • Will continue to print all of our 24 million Victoria’s Secret Clearance Catalogues on FSC-certified paper. Will further improve our efforts to carefully review our catalog mailing list. In an effort to reduce the amount of unwanted catalogs mailed, we go to great lengths to ensure that our catalog mailing lists are accurate and up to date. Additionally, we have provided a toll-free number for clients to call if they want to reduce or unsubscribe from catalog mailings. Providing a toll-free number (1-800-411-5116) for clients to call if they want to reduce or unsubscribe from catalog mailings. Printing our 2007 annual report and proxy statement on FSC-certified paper that is a combination of 100 percent PCW and 30 percent PCW paper stock. (The financial section of our annual report is printed on 100 percent PCW paper stock while the cover and editorial section are printed on 30 percent PCW paper stock.) Changing the office and copier paper we use to 30 percent PCW. Utilizing PCW or FSC-certified paper for over 90 percent of the other paper we purchased. Through these efforts we hope to play a constructive role in promoting more environment friendly paper policies in the catalog industry. Visual merchandising items that once were disposed of after use are now donated to the Keep Franklin County Beautiful Waste-Not Center. The Waste-Not Center provides useful materials for teachers, artists and nonprofit organizations in central Ohio, thus providing a reuse for these high-quality materials and saving these individuals and organizations significant money. As an alternative to disposal, we go to great lengths to recycle materials, thus reducing the burden on landfill space and providing materials for the recycling industry and recycled-content products. We are continuously expanding our recycling efforts and reducing the amount of waste disposed of via landfill and other means. Across the company, we have successfully developed processes to recycle many materials. In 2005, Limited Brands recycled: • • 8,200 tons of corrugate and office paper 280,000 pounds of alcohol-containing products, rather than dispose of the material as hazardous waste Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to www.vault.com/diversity CAREER LIBRARY 327 Vault Guide to Green Programs Limited Brands • • • • • 54,000 pounds of metal 478,000 pounds of plastic 3,350 tons of wood from pallets 54,000 pounds of computers and other electronics 178,000 pounds of glass Internal Employee Green Initiatives What initiatives has the company encouraged its employees to participate in that help to limit carbon emissions on an operating basis? Along with our efforts to promote sustainably managed natural resources, we are also effectively managing our waste to reduce the amount that is landfilled and increase the amount that is recycled. In fact, recycling has become a significant part of our daily operations. • • • In 2005, we significantly increased our recycling efforts and reduced the amount of waste disposed of via landfill and other means. In 2005, we recycled nearly 8,200 tons of paper and cardboard. In our distribution centers, we recycle close to 75 percent of all materials identified for disposal. Recycling is just one element of a three-pronged approach that we’ve adopted known as the three R’s—Reduce, Reuse and Recycle. Finding ways to further reduce our environmental footprint is a responsibility we take seriously. We’re committed to working with our suppliers and vendors on finding creative ways to further reduce the amount of paper, packaging materials and other natural resources used in our business operations. The movement of freight around the world requires the use of fossil fuels. The use of ocean-going vessels is a more fuel efficient means of transporting merchandise. We work with our brands and freight carriers to maximize the use of ocean-going vessels, and minimize the use of air shipment. To complement this effort, we optimize cargo space by fully loading cargo containers bound for the United States. For freight bound to our distribution centers we are increasing our utilization of rail service. Rail service utilizes less fuel, creates less highway congestion, and produces less air emissions than truck service. In our distribution centers, we utilize highly efficient trailer stacking techniques to optimize the use of trailer space and reduce the number of trucks and amount of energy required to transport our merchandise. 328 CAREER LIBRARY © 2008 Vault.com, Inc. Vault Guide to Green Programs Limited Brands Do you have numbers or percentages of how many of your employees are involved in eco-focused programs? Limited Brands is currently a member of the following organizations: • • • • • • U.S. EPA—WasteWise Program U.S. EPA Smartway Program Keep Franklin County Beautiful Waste-Not Center Ohio Association of Recyclers National Recycling Coalition Sustainability Roundtable of Central Ohio Environmental Development Do you encourage employees and managers to attend/participate in green and/or environmental, programs, courses or workshops outside of your company? At Limited Brands, we are characterized by a deep commitment to each other, and to our communities. With our body of giving programs growing, and more of our associates participating every day, we will continue to give back—as individuals and as an enterprise—and continue to make a difference! Are there time-sensitive goals in place to ensure measurable progress? In addition, we are committed to the following measures going forward: • We will partner with our primary paper supplier to eliminate all pulp supplied from endangered forests, particularly the Alberta Rocky Mountain Foothills and British Columbia Inland Temperate Rainforest. • We will shift our catalogs to either 10 percent PCW or FSC mixed-source content over the years 2007 and 2008. • We will have a preference for FSC certification, and have partnered with one of our principal suppliers to shift four of its mills to FSC by 2008. • We are committed to continual improvement of the environmental attributes of our catalog paper and paper use and will have an independent third party audit our progress and make public the results. • We are committed to phase out paper procured from endangered forests. • We will commit $1 million to research and advocacy to protect endangered forests. Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to www.vault.com/diversity CAREER LIBRARY 329 Vault Guide to Green Programs Limited Brands Through these measures and other efforts we hope to play a constructive role in promoting more environmental friendly paper policies in the broader catalog industry. Green Career Opportunities Are there any specific units that are focused on green initiatives in the business practice? By reusing items, we eliminate the need to purchase new supplies made from virgin materials. That’s why we provide sturdy cartons to our apparel suppliers, which they then use to ship our merchandise to us. We then reuse those same cartons to ship merchandise to our stores. By reusing the specially designed cartons, we eliminate the need for additional packaging. In 2005, we reused 363 tons of cartons. Associations—Limited Brands is currently a member of the following environmentally focused organizations: • • • • Association of Ohio Recyclers National Recycling Coalition Central Ohio Sustainability Alliance—Waste Not Center Central Ohio Sustainability Roundtable Partnerships—Limited Brands is currently involved in partnerships with the following organizations: • • • • US EPA WasteWise US EPA SmartWay Central Ohio Sustainability Alliance—Waste Not Center ForestEthics Recognition Please list any awards or recognitions your environmental program(s) have received. EPA recognizes Limited Bands In October 2006, Limited Brands received honorable mention under the Very Large Business category for our noteworthy accomplishments in waste reduction at the 330 CAREER LIBRARY © 2008 Vault.com, Inc. Vault Guide to Green Programs Limited Brands 2006 WasteWise and National Partnership for Environmental Priorities Annual Conference: Partnering for Success in Sustainability held in Arlington, Virginia. In October of 2005, we received special recognition from the EPA, garnering two prestigious Gold Achievement awards ... one for a unique packaging reduction program that has resulted in a significant reduction in the amount of waste generated during our daily operations, and another for our membership in the EPA’s WasteWise program. In a news release—issued by the U.S. EPA—the EPA states “it is proud to honor Limited Brands for these extraordinary achievements,” adding that “Limited Brands has its priorities straight with a clear commitment to reducing waste.” Limited Brands has received the following awards and recognition for our environmental efforts: • • • • • • Boreal Award from the Canadian Boreal Initiative, December 2007 Excellence Award from the EPA Smartway Transportation Partnership, November 2007 Partner of the Year—Very Large Business from the EPA Waste Wise Program, October 2007 Honorable Mention in the Very Large Business category from the EPA WasteWise program, October 2006 Emerald Award for “Best Practices” from the Solid Waste Authority of Central Ohio, April 2006 Two Gold Achievement awards from the EPA WasteWise program, October 2005 The Firm Says What is the company’s environmental mission statement? As a values-led organization, Limited Brands is integrating the protection and preservation of global resources into our everyday business practices. It’s part of doing what is right, and means we’re committed to sustainable, responsible and thoughtful environmental behavior. We strive to manage the natural resources entrusted to us through: • • thoughtful procurement of supplies, equipment and merchandise; and our daily business operations. Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to www.vault.com/diversity CAREER LIBRARY 331 Vault Guide to Green Programs Limited Brands Interwoven through every step is our commitment to: • • • • • • • minimize waste generation and maximize recycling; partner with not-for-profit organizations to promote reuse; conserve energy and preserve natural resources; promote the increased use of recycled content paper; partner with environmentally responsible suppliers; build relationships with environmental agencies and nongovernmental organizations; and hold ourselves accountable for our environmental stewardship efforts. Additional Information Energy and Climate Lighting and air conditioning consume a great deal of energy. In an effort to reduce our energy consumption, Limited Brands has been rolling out numerous energyefficient projects that have significant energy savings and pollution reduction associated with them. Our efforts include: • building new stores with more efficient lighting technology, including highly efficient Ceramic Metal Halide (CMH) bulbs. • modifying approximately 900 stores with more efficient lighting bulbs and fixtures. • replacing older, less efficient lamps in over 700 stores with new, more efficient compact fluorescent lamps. • these lighting projects alone reduce our store electricity consumption by 50,000,000 kwh annually and reduce carbon dioxide emissions by more than 35,000 metric tons. • proactively replacing aging HVAC units in our stores with newer, more efficient units. The first phase of this project has resulted in the replacement of approximately 125 HVAC units over the past two years, reducing electricity consumption by more than 1,500,000 kwh while cutting carbon dioxide emissions by more than 1000 metric tons. • replacing the existing roofs on three of our seven Ohio distribution centers with newly designed roofing systems creating a 15 percent reduction in energy consumption and costs. Following the success of the first three installations, we 332 CAREER LIBRARY © 2008 Vault.com, Inc. Vault Guide to Green Programs Limited Brands plan to install the same energy-efficient roofing on the rest of our distribution centers. • over the next several years, replacing all of our current fluorescent lighting fixtures in our home offices, distribution centers and call centers with more efficient, compact fluorescent lighting fixtures. Replacing the lighting in these buildings will reduce energy consumption in these buildings by an estimated 15,000,000 kwh and reduce emissions by 8,640 metric tons of carbon dioxide. Fossil Fuels The movement of freight around the world requires the use of fossil fuels. The use of ocean vessels is the most fuel-efficient means of transporting merchandise from overseas. We work with freight carriers to maximize the use of ocean vessels and minimize the use of air shipment. To complement this effort, we optimize cargo space by fully loading cargo containers bound for the United States. Limited Brands is committed to: • • increasing the utilization of our rail service. Rail service utilizes less fuel and produces less air emissions than truck service. utilizing highly efficient trailer stacking techniques to optimize the use of trailer space and reduce the number of trucks and amount of energy required to transport our merchandise in our distribution centers. In 2006, Limited Brands became a partner in the EPA’s SmartWay Transport Partnership program. This program works with shippers, freight carriers and logistics companies to reduce the greenhouse gas emissions and air pollution caused by the transportation of goods. Limited Brands is working with the SmartWay program on several projects that will result in a reduction of our greenhouse gas (GHG) emissions. In 2005, Limited Brands began a program to convert much of our inbound freight from truck to rail in order to reduce diesel fuel consumption and emissions. During 2007, this much-expanded project resulted in: • • • a 100 percent increase in the number of containers shipped via rail instead of truck over 2006; a savings of 122,500 gallons of diesel fuel; and reduced emissions of carbon dioxide by nearly 1,300 metric tons. We will continue to work with SmartWay to identify opportunities to optimize this program in the future. Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to www.vault.com/diversity CAREER LIBRARY 333 Vault Guide to Green Programs Limited Brands In October 2007, Limited Brands was honored to receive an Environmental Excellence Award from the U.S. Environmental Protection Agency SmartWay Transport Partnership for its leadership in conserving energy and lowering greenhouse gas emissions from its transportation and freight activities. In 2007 Limited Brands participated for the first time in the Carbon Disclosure Project by completing and submitting CDP5, the format in which participants document the carbon generated by their activities and operations. Waste Reduction and Recycling We’re committed to working with our suppliers and vendors to find creative ways to further reduce the amount of paper, packaging materials and other natural resources used in our business operations. Since 2005, Limited Brands has been a partner in the EPA WasteWise program, which works with companies to increase waste management efforts to ultimately reduce greenhouse gas emissions and their impact on climate change. Our recycling efforts have been centered on: • • • • • • Efficient packaging Elimination of PVC containers Store recycling efforts Pallet recycling Product reuse (donations/sample sale) Other recycling Below is a list of some of the items Limited Brands recycled in 2007: • • • • • • • • • • 334 9,691 tons of corrugate and office paper 217 tons of alcohol-containing products, rather than dispose of the material as hazardous waste 274 tons of metal 546 tons of plastic Eight tons of textiles 4,333 tons of wood from pallets Six tons of toner cartridges 82 tons of computers and other electronics 15 tons of batteries 125 tons of glass CAREER LIBRARY © 2008 Vault.com, Inc. Vault Guide to Green Programs Limited Brands In total, during 2007, Limited Brands kept nearly 18,000 tons of material from going to landfill through reuse and recycling! Efficient Packaging Our merchandise is stored and shipped in specially designed cartons that Limited Brands helped to develop along with our apparel suppliers and a packaging material expert. These unique cartons are manufactured using fewer raw materials than our previous cartons and are designed to hold more merchandise, stack more efficiently and require less space on transportation vehicles. The containers are manufactured with approximately 46 percent post-consumer waste recycled recycled content. Elimination of PVC Containers In 2003, Limited Brands stopped using polyvinyl chloride (PVC) containers for our Bath & Body Works and Victoria’s Secret personal care products, which reduced our PVC usage by 4.3 million pounds per year (insert fun fact). Those personal care products are now stored in polyethylene terephthalate (PET) containers, which is the most widely used plastic in consumer packaging. It’s readily recycled in most communities and its manufacture is considered to be more environmentally friendly than PVC. Store Recycling Containers Recyclable personal care products returned from our stores to our distribution center are packaged and shipped in five-gallon plastic pails. When they arrive at our distribution centers, we empty the containers, clean them and return them to the stores for reuse. In 2007, 33,588 pails were reused, weighing approximately 35.6 tons. Additionally, in 2005, we changed the absorbent used in our recycling containers from vermiculite, a mined substance, to 95 percent recycled-content fiber pads. This change helps promote the market for the recycled-content pads and eliminated the need for nearly 17 tons of vermiculite in 2007. Pallets Merchandise that is received from vendors is often shipped on wood pallets. We reuse the pallets to handle merchandise in our distribution centers. Pallets that are damaged are sent to a third party for repair and are redistributed for further use. Pallets unable to be reused are ground into fine wood shavings and are ultimately used for purposes such as mulch for landscaping. During 2007, we sent more than 4,000 tons of wood pallets for recycling. Visit the Vault Diversity Channel for diversity program profiles of 100s of top employers, insider advice from executives about workplace diversity and more. Go to www.vault.com/diversity CAREER LIBRARY 335 Vault Guide to Green Programs Limited Brands Product Reuse • Donations—In an effort to find beneficial ways in which surplus products and supplies can be reused, Limited Brands has partnered with various charitable organizations, such as the Central Ohio Sustainability Alliance—Waste Not Center. The Waste Not Center accepts donations of items that are in good condition and makes them available to teachers, artists and others for use in various types of projects. In 2007, Limited Brands donated to various charities approximately 20,000 pounds of discontinued product and other items that would otherwise have been thrown away into a landfill. • Associate Sale—The associate sale is an event in which merchandise and products that can no longer be sold in our retail stores are made available for our associates to purchase at a reduced cost. Sales from the 2007 associate sale resulted in the reuse of more than 57 tons of products/merchandise that would otherwise have been thrown away. Additionally, all money raised through the sale is donated to United Way of Central Ohio. Other Recycling As an alternative to disposal, Limited Brands goes to great lengths to recycle miscellaneous materials. In 2007, approximately 83 percent of all material processed through our distribution centers for disposal was instead recycled or reused. 336 CAREER LIBRARY © 2008 Vault.com, Inc.