Kohl’s Department Stores: GHG Inventory Management Plan Partner Information: Kohl’s Department Stores N56 W17000 Ridgewood Drive Menomonee Falls, WI 53051 Inventory Contact: June Fischer Rojahn Senior Manager Environmental Strategies Office: 262-703-1673 E-mail: firstname.lastname@example.org Boundary Conditions Organizational Inclusion of partially owned or controlled assets: Kohl’s will utilize the “control” approach to account for GHG emission from its offices, stores, and distribution centers. A portion of Kohl’s store locations are “leased” properties, however, Kohl’s is responsible for energy use and energy efficiency improvement regardless of owners. As a result, Kohl’s will include all store locations in the inventory regardless of ownership. Facilities List All facilities are located in the United States and are included in the inventory. Kohl’s locations are cataloged in a tool called “Strategic Lease Information Management (SLIM) version 4.8. A summary of the total locations included in this inventory are as follows: 2007 Store Locations 929 Offices 9 Distribution Centers 10 Total Locations 947 Operational GHG List CO2, CH4 and N2O are included in Kohl’s GHG Inventory. HFC and PFC emissions from use of cooling equipment at all locations are also included in this inventory. All measured gases will be converted to a CO2 equivalent to measure Kohl’s total CO2. Emissions Source Identification Procedure The Kohl’s corporate facilities team compiled the list of HVAC equipment from records available through the store planning team, DC Maintenance Mangers and Corporate Facilities HVAC Coordinator. This information was verified for reasonableness with the Kohl’s Director of Architecture. Indirect and direct emissions sources of electricity use, natural gas, propane, fuel oil and steam where identified from utility bills as compiled by Kohl’s utility bill payment provider- Advantage IQ. Kohl’s Senior Manager of Energy reviewed the utility data for reasonableness. Mobile emissions data was provided by the corporate manager of procurement. Fuel Oil data related to the corporate office Generator was compiled from actual bills as provided by the Facilities Energy team Direct Sources Four direct sources of emissions that will be measured as part of this inventory- HVAC, natural gas, propane, fuel oil and mobile combustions. The HFC and PFC emissions related to the cooling of Kohl’s stores and other facilities will be quantified using the Climate Leaders guidance- Direct HFC and PFC Emissions from use of Refrigeration and Air Conditioning Equipment. Emissions associated with Kohl’s use of natural gas and fuel oil will also be measured using the EPA guidance- Direct Emissions from use of Stationary Combustion. Finally, Kohl’s will also measure its emissions related to all mobile sources using the Direct Emissions from Mobile Combustion Sources guidance. All source guidance documents are dated May 2008 Indirect Sources Emissions related to Kohl’s purchase of electricity, and steam will be measured as part of this inventory using the EPA GHG Inventory Protocol outlined in section 2. The formula used by Kohl’s is equation #1. Emissions factors for CO2 by Egrid region will be used as provided by Advantage IQ. Emissions rates for N20 and CH4 as provided from the EPA guidance documents for Indirect Emissions from Purchases/Sales of Steam and Electricity. Optional Sources Kohl’s is reporting optional sources of emission from its inbound/outbound transportation. These voluntary emissions fall under the scope 3 emissions as defined by the WRI. These were calculated using the EPA SmartWay Shipper Logistics Inventory-Carbon Emissions. Emissions Quantification Quantification Method See appendix 2 for emission factor calculations. The calculations were performed according to the to the guidances listed under “direct emissions” above and the EPA Indirect Emissions from Purchases/Sales of Electricity and Steam-dated October 2004. Emission Factors and Other Constants Emissions factors related to Kohl’s use of purchased electricity came from the EPA Egrid factors provided by Advantage IQ based on our location zip codes. A separate factor by region was used to calculate the CO2, CH4 and N20 emissions. The calculations were performed according to the to the guidances as follows: EPA Indirect Emissions from Purchases/Sales of Electricity and Steam- dated October 2004, EPA Direct Emissions from Mobile Combustion Guidance, Direct Emissions from Stationary Combustion Guidance and Direct HFC and PFC Emissions from Use of Refrigeration and Air Conditioning Equipment Guidance Data Management Activity Data Electricity, Natural Gas, Steam, Propane and Fuel Oil Purchase data is collected from the actual utility invoices as processed by Advantage IQ on behalf of Kohl’s. Locations where payments are made to Landlord entities data is gathered from Kohl’s internal Energen system. (Note the Landlord Utility locations represent a maximum of 5 locations in this inventory)This data process is managed by the Kohl’s Energy Team and audited periodically for accuracy. Mobile activity data was provided by the Kohl’s Corporate Procurement team. The Kohl’s corporate facilities team provided the activity data for the HVAC equipment from records available through the store planning team, DC Maintenance Mangers and Corporate Facilities HVAC Coordinator. Data Management Utility invoice data is entered monthly into the Advantage IQ database and is available in the form of a web-based database for reporting and analysis. The Kohl’s Energy Management team based in the Facilities operations group is responsible for the data integrity of this service provider. Normalization Factor As a growth retailer the normalization factor selected will be CO2 per square foot of all buildings owned and operated by Kohl’s Data Collection Process-Normalization Factor Monthly energy usage as determined by Advantage IQ data will be compared to operating square footages of all Kohl’s facilities in this inventory. The monthly calculations will be used to generate the annual calculation. Data Collection Process-Quality Assurance Monthly energy usage is entered into the Advantage IQ tool from the various utility invoices for energy purchased and used by Kohl’s. All utility data is has a sample set of bills reviewed daily and issues are reported to Advantage IQ. Kohl’s facilities financial analyst monitors and project use by month and identifies and investigates variations using benchmarks, month to month history and weather conditions. Square footage data by Kohl’s controlled locations are loaded into the Advantage IQ tool for measurement of kWh by square foot as well as CO2 per square foot. This data is provided by Kohl’s “Strategic Lease Information Management (SLIM) system version 4.8. Currently there are no current processes for data QA and QC on the mobile and HVAC data provided within this inventory. Frequency Energy (electricity, natural gas, fuel oil, steam and propane) use is reported monthly to Advantage IQ. Mobile and HVAC sources are updated annually from procurement and store planning. Base Year Adjustment-Structural Changes No adjustments will be made to the baseline year, unless a facility is obtained/closed that was operating in the baseline year. In that case, the baseline would be adjusted up or down depending on the situation. Kohl’s opens stores annually; no adjustments will be made to the baseline for organic annual growth. Adjustment-Methodology Changes Any necessary adjustments to the inventory, when necessary, will be documented with the following: Description of Adjustment Reason for Adjustment Calculation Methodology Person Making Change Person Approving Change This documentation will be kept in the shared electronic repository for the Inventory files. Changes in GHG calculations will be updated from baseline and subsequent years reporting. Changes needed as a result of updated emissions factors will result in recalculations to the baseline as well as subsequent years inventories. These would occur when notified by either Climate Leaders or Advantage IQ. These changes will be documented and filed electronically. Changes as a result of an error will be made and documented when discovered. Management Tools Roles and Responsibilities Inventory Information Providers: Energy-Kohl’s Energy Team, Advantage IQ Transportation-Kohl’s Inbound, Outbound and Advertising Logistics Teams These teams will provide the data needed to complete the inventory for their respective areas. Inventory Manager-Senior Manager of Environmental Strategies, coordinates collection of all data for the inventory, maintains the inventory annually, acts as the Kohl’s point person for the Climate Leaders program and other outside organizations. The manager will also, make any needed adjustments or corrections as needed to the inventory. Senior Management-The EVP and Vice President of Environmental Strategies are responsible for final review and sign off of the IMP and the GHG Inventory at the end of each annual reporting period. They will be responsible for routing the inventory to Kohl’s Public Relations , Legal and Financial reporting heads. Training The inventory providers and manager have read and review the Climate Leaders Protocols that are available at the time of the inventory. This group will meet at least once to assure understanding and have a clarification session. The Inventory manager has also consulted the WRI protocol as well as the questions asked by the Carbon Disclosure Project. The Inventory Providers, Inventory Manager and the Senior Management Group will all be provided a PDF copy of the IMP to further define expectations of the GHG Inventory process. An annual review of new guidelines and the IMP will be held to re-visit expectations. Any new employee in any of the Inventory Information Provider areas will be given an orientation the Climate Leaders program and the current IMP. Document Retention and Control Policy Climate Leaders documents will be retained indefinitely in an electronic form. Hardcopy versions of the climate leaders documents will be retained until the goal year reporting is complete. The documents will reside on the G:SHARE/FACILITIES/CLIMATE LEADERS/REPORTING YEAR/File Name repository. The goal year folder will designate the latest version as well as having the date in the final file name. Auditing and Verification Internal Auditing The IMP and GHG inventory report will be audited by the Facilities Management team for compliance with the current protocols and guidance annually, before the report is submitted to Climate Leaders. The facilities management team will meet prior to updating the annual inventory to identify any new sources of emissions to be included in the inventory. External Validation and/or verification At this time, Kohl’s has no plans for an external audit the IMP or the GHG management plan. Management Review Senior Management will review the Inventory IMP and GHG Inventory for consistency with Kohl’s Environmental Strategies and to maintain an understanding of the direction the company is proceeding in regard to greenhouse gas emissions. Corrective Action Actions to correct items noted during an internal or external review will be documented and placed in a shared electronic repository in the Climate Leaders Documentation folder for that reporting year. In the documentation an explanation of the change, the change requestor and the management approver will be noted. The latest version of the report will be noted in the file name by date.