V.A.L.U.E. Facts

Emissions Reductions

In the U.S., TJX is a member of the U.S. Environmental Protection Agency’s (EPA) SmartWay Transport Partnership. This program is a collaborative effort between shippers, truckers and the EPA to find innovative ways to reduce both fuel consumption and greenhouse gas emissions. As a SmartWay shipper, TJX is committed to tracking our fuel usage, as well as sending at least 50 percent of our goods using SmartWay Transport Carriers. TJX Canada is also a SmartWay shipper, and at TJX Europe, our agreement with our carrier for our store delivery trucks has a “Green” clause that commits both the Company and our carrier to achieving key environmental and social responsibility goals.

Initiatives to Reduce Fuel Consumption
TJX continues to investigate ways to reduce fuel consumption and increase fuel efficiencies. For example, at our distribution centers in North America, we change the frequency of store deliveries to see that full trucks are sent to our stores and optimize store delivery runs via sophisticated logistics software, which helps ensure the most efficient runs possible. The Company also utilizes various co-loading schemes to ensure fully loaded trucks as well as alternative methods to load and unload trucks. We now have a variety of delivery techniques including live “traditional” deliveries, floor loaded trailers, pallet drops and trailer drops.

Another way in which we are reducing fuel costs and our carbon footprint is through expanded use of rail intermodal, which is more fuel efficient and produces lower emissions compared to trucking. In the U.S., the use of inbound intermodal to distribution centers increased from 30% of miles travelled in fiscal year 2008 to 61% of miles travelled in fiscal year 2011. As rail service in the U.S. continues to improve, we anticipate further increases in our use of this greener transportation alternative.

For our shipments via ocean carrier, we attempt to schedule our shipments at times most likely to avoid congestion at ports and to direct shipments to ports as close as possible to the final destination, thereby reducing fuel consumption.

Innovative Design
In Europe, we’re proud to own a fleet of Europe’s largest zero emissions trucks that are both electrically-powered and aerodynamically-designed. In addition, we helped develop a special air deflector for the front of our double-decker trailer trucks. This aerodynamically-shaped device reduces wind resistance, which helps cut fuel consumption and lower carbon emissions. Our latest generation of tractor and trailer kits has demonstrated efficiencies of 6-7% in independent trials. TJX Europe was among the first retailers in Europe to get these innovative and technologically-advanced devices on the road.

Collaborative Solutions
Further, to help manage delivery routes more efficiently, we offer driver education and invest in technologies like vehicle tracking. TJX Europe has also partnered with other retailers in the U.K. and Ireland to share capacity on some of our delivery routes. This collaborative approach eliminates the need for multiple, parallel trips to the same location, helping us create even more carbon savings.

Constantly Striving to Increase Efficiencies
Whether it’s purchasing modeling software to improve the efficiency of our store delivery network or better utilizing trailer space, we are constantly striving for increased fuel efficiencies. For example, in 2008, we introduced a Drop Trailer Program in Canada. We continue to ask our carriers to wait for a bigger load before transporting goods and to turn their engines off while they wait. This program is another way in which we conserve fuel costs and travel time and decrease the number of trucks on the road.

We are also evaluating the carbon efficiency of our leased car fleet. In the U.K., we have improved our automobile efficiency, resulting in reduced carbon emissions. In the U.S., we introduced hybrid vehicles to our fleet program in 2007. At the end of 2010, our U.S. fleet of Company-leased vehicles that are hybrids had risen to 49%. Going forward, we anticipate migrating to a 100% U.S. hybrid fleet as car leases are renewed over the next two years. In addition, during this same time period, we converted corporate office security vehicles to hybrids.

Lastly, at many of our corporate office locations, we have car pooling programs for Associates, about which we communicate regularly via intranet sites and other internal communications.