Energy Efficiency


Reducing Electricity Use in Stores is a top priority



Electricity and fuels used to operate our stores generate the majority of the greenhouse gas (GHG) emissions we can control directly. For this reason, we have a long history of focusing on increasing energy efficiency and finding ways to reduce energy consumption and waste in our stores.

As our business continues to grow and expand, we believe that it is important to continue to improve the efficiency of the lighting and heating, ventilating and air conditioning (HVAC) technologies within our stores, home offices and distribution centers.

A team of global energy subject matter experts meets periodically throughout the year to collaborate and share best practices for reducing energy consumption and waste across our stores, home offices and distribution centers. This group supports the energy data collection efforts for our over 3,600 sites as part of our global corporate GHG inventory. They also review progress against TJX’s corporate GHG target and identify key topics to be considered by our global Executive Environmental Steering Committee.

Additionally, we have regional Energy Management groups. These were initially established more than 25 years ago in the U.S. As our operations have expanded geographically, we also have groups across our global operations that are responsible for managing our energy consumption and costs. These groups are tasked with analyzing and improving current operational performance, and testing, prioritizing and implementing energy efficiency technologies and products.

Some of our energy efficiency programs include:

  1. Retrofitting lighting
  2. Implementing and monitoring energy management/building automation systems
  3. Conducting preventative maintenance on HVAC systems
  4. Providing stores with energy awareness training materials

Members of our Energy Management groups also work with our store design teams to increase the energy efficiency of our new and re-modeled stores. These energy reduction initiatives and programs driven by the geographies are key contributors to reaching our global emissions reduction goal.


Renewable Energy


Renewable energy is an increasingly important part of TJX’s environmental sustainability strategy. Internally, we have convened subject matter experts from across our operations to further explore our approaches to renewable energy and to review the opportunities that are currently available in their local marketplaces. As part of our exploration of renewable energy, we intend to benchmark against other companies’ goals and activities, as well as research global initiatives and guidance. We continue to actively evaluate alternative energy solutions and purchasing opportunities that are appropriate for our facilities, taking into account the economic and operational feasibility. For TJX, onsite renewable electricity generation opportunities are limited as typically, we do not build or own our store locations. For this reason, we are generally pursuing offsite renewable energy alternatives opportunistically.

In the U.S., in some regions, we enter into Purchase Power Agreements (PPA) with renewable energy providers. We do not typically purchase the unbundled energy certificates. We have solar panels on the roofs of select stores in New Jersey and California and on our Connecticut distribution center. We also ensure that roofs on our newly constructed distribution centers are designed to accommodate solar panels should we choose to install them in the future.

In Canada in 2015, we applied for Leadership in Energy and Environmental Design (LEED) certification of our new Canadian home office building. As part of this process, we purchased Green-e certified renewable energy credits equal to 100% of the electricity usage of the building for one year. In Europe, we contracted for renewable energy (Guarantees of Origin Certificates) for a significant portion of the electricity used in our stores, processing centers and offices in Germany. Our processing centers in Germany and Poland have incorporated both solar and geothermal technologies. We are also considering options relating to energy generated from renewable sources in our U.K. operations.


Energy Efficiency Highlights by Geography U.S.


In 2015, our U.S. Energy Management group worked to reduce energy and emissions in these key ways:

  1. Increasing the efficiency of lighting systems in our newly constructed stores:
    We continued to work closely with our vendors and internal Store Design groups to develop and implement new solutions for light-emitting diode (LED) technologies that meet our evolving criteria for lighting in our stores. As a result of these collaborations, the majority of newly constructed T.J. Maxx, Marshalls and HomeGoods stores now include LED light fixtures in most areas, such as jewelry cases, fitting rooms and most recently, the sales floor. In fact, our sales floor LED solutions in new store designs for HomeGoods have continuously improved and now include next-generation versions that are even more efficient.
  2. Retrofitting existing lighting and HVAC systems:
    In Stores: We continue to focus on projects to make our existing stores more efficient, and, in 2015, our U.S. Energy Management group completed lighting retrofit projects in 244 stores, resulting in estimated savings of over 16.5 million kilowatt hours (kWh) each year. Additionally, they completed 590 HVAC retrofits, which we expect will save about 1.6 million kWh annually. Combined, these efforts saved more than 9,700 metric tons of CO2e in 2015.In Distribution Centers: Our distribution and processing centers also install energy efficient technologies. Distribution Services in the U.S. has invested in lighting and HVAC upgrades in many buildings. In some locations, we have partnered with third-party energy experts to audit the efficiency of our buildings, and we are currently evaluating the feasibility of many new initiatives, including installing LED fixtures. For example, in 2015, we installed LED lighting fixtures in three of our U.S. distribution centers with applications in both the interior and exterior of the buildings. Also, our distribution centers are looking for solutions to increase the energy efficiency of our material handling and maintenance operations equipment. For example, our engineering maintenance staff is in the process of improving our storage rack system designs and layouts, and eliminating aging and inefficient pneumatically powered equipment.
  3. Optimizing lighting controls:
    Through a process called retro-commissioning, we seek to identify operational improvements in our building that will increase occupant comfort and save energy. For example, our Energy Management group identifies incorrect or inoperable lighting controls and works to repair or restore the control system so that it is operating to the specifications to which it was designed. In some instances, we may engage with our field Associates to refresh training around proper use of set points and controls.


Canada


In Canada, we have an Energy Optimization group, which is comprised of representatives from Store Design and Construction, Maintenance, Finance and Environmental Sustainability. The team takes a similar approach as its U.S. counterpart, capturing and analyzing electric and gas usage to identify ways to conserve energy in our stores. The team focuses on:

  1. Identifying opportunities to conserve energy in our stores (primarily through energy efficient lighting upgrades)
  2. Evaluating technologies such as demand-control ventilation for HVAC and LED lighting
  3. Leveraging incentives provided by provincial utility programs to reduce project costs
  4. Exploring energy purchasing opportunities

In 2015, our Canadian team tested variable frequency drive HVAC retrofits in 11 stores. The test is on track to yield an annual savings of more than 605,000 kWh – the equivalent of powering over 50 homes for 1 year!


Europe


In Europe, our focus on energy efficiency and conservation is deeply embedded into our business processes. Our Energy and Environment Committee is comprised of senior individuals from across the business, including Store Operations, Property, Distribution, Facilities, Finance, Store Design, Procurement and Corporate Responsibility as well as external expert consultants. The Committee is responsible for environmental sustainability goals. At the operations level, we also have an Energy Management Committee, comprised of internal Associates and an energy management specialist company, which has helped us to continue to improve our energy performance.

Recent key TJX Europe initiatives include:

  1. Piloting LED lighting in a select number of U.K. store and processing centers
  2. Implementing new building monitoring systems to further reduce our energy consumption
  3. Working to increase the amount of data coming in from the stores, enabling swifter resolution of maintenance or other issues
  4. Implementing a temperature policy to communicate recommended temperature settings for stores in the U.K. and other parts of Europe
  5. Upgrading some European systems to allow for faster and better quality of information on issues
  6. Testing new energy saving products on older escalators