Retail Merchandiser

Retail Merchandiser posed questions to companies involved with RILA’s Environmental Sustainability and Compliance Conference to find out what can and is being done to “green” up the retail world. Jim Thomas, vice president and director of corporate social responsibility for JCPenny Company, tackled the issue from a retailer’s perspective.

In business for more than a century, JCPenney has built a reputation for operating in an ethically and socially responsible manner. The company has been involved in various elements of sustainability for many years, including recycling, responsible sourcing, and community involvement.

I arrived at JCPenney in January 2007 as the vice president for corporate social responsibility, and that year we launched a new initiative to bring sharper focus to our corporate social responsibility (CSR) efforts. A CSR steering committee was formed, made up of representatives from business areas across the company, and we developed our corporate CSR vision, strategy, actions, and goals.

In 2008, we published JCPenney’s first CSR Report, which was updated in a second edition published this year.

What is your company’s core corporate philosophy on sustainability?

Each year we carry out a companywide survey to measure our associates’ engagement. This year’s survey achieved a 93% response rate. One question on the survey asks, “In my work group, associates have the opportunity to participate in programs to improve the environment.” In this year’s survey, 73% of associates agreed with the statement—an increase of 8% points from last year. We are making progress in getting our associates involved in our sustainability efforts.

How does it relate to the specific retail field in which you reside? Looking at sustainability specifically related to the environmental aspects, we are primarily focused on a few key areas.

Energy: We have a number of initiatives for energy conservation in our stores and other facilities (what we like to call “negawatts”). The Energy Star program has recognized JCPenney three years in a row for our energy management efforts. We are the only retailer to receive Energy Star Partner of the Year recognition for energy management.

Recycling: We have one of the leading recycling programs in retail, recycling approximately 75% of our wastes in stores and 80% in logistics centers. (One of our logistics facilities is at 93%.)

Sustainable products: We offer products that meet certain criteria for reducing environmental impact (our Simply Green products), and we have broad initiatives that strive to reduce the environmental impacts of our products in all categories, such as our product stewardship efforts and packaging initiatives.

What is your company doing to promote environmental awareness and sustainability?

We have published two CSR reports to share information on our activities, and we’re the only US department store to publish a CSR report.

We have partnered with Danny Seo, America’s leading lifestyle authority on modern, eco-friendly living, to communicate to the public about various ways people can incorporate sustainability into their everyday lives. Information is at www.simplygreen.com.

What is the overall positive financial impact your efforts have had on your company?

Efforts to reduce energy consumption, reduce emissions, and operate more efficiently tend to bring business benefits through lower operating costs. Even projects that require an initial investment in equipment or technology can bring a return on that investment in a short period by reducing costs.

Our initiative to use truck backhaul routes, for example, saved the company $2.5 million in 2008 and reduced net carbon emissions by 4.1 million pounds. We also opened 35 new stores last year but managed to keep energy usage essentially flat to the prior year by achieving greater efficiencies.

Our recycling efforts not only reduce impact on landfills and natural resources, but also deliver savings to the bottom line.

How are you getting consumers involved? Has this helped with consumer loyalty?

In addition to the Simply Green designation for environmentally friendly products, we joined with Chaser Merchandising and the World Wildlife Fund (WWF) to offer a line of WWF T-shirts and hoodies for young women. These shirts are made from a blend of organic cotton grown without pesticides and recycled polyester made from plastic bottles that might otherwise have gone into landfills.

Chaser Merchandising donates $1 to WWF for every T-shirt sold. Since its introduction, the program has raised more than $1 million for WWF’s efforts to preserve nature.