2014 Corporate Responsibility Report
(Including disclosures under the California Transparency in Supply Chains Act of 2010)
Table of Contents
- Economic Responsibility
- Social Responsibility
- Environmental Responsibility
- Awards and Recognition
I. Introductionback to top
The following report has been issued in May 2015 by Bed Bath & Beyond Inc., 650 Liberty Avenue, Union, New Jersey 07083, the parent company that, together with a group of subsidiaries, is an Omni channel retailer selling a wide assortment of domestics merchandise and home furnishings under the names of Bed Bath & Beyond, World Market, Cost Plus World Market, Cost Plus, Christmas Tree Shops, Christmas Tree Shops andThat! or andThat!, Harmon, Harmon Face Values and buybuy BABY. The Company operates websites at bedbathandbeyond.com, bedbathandbeyond.ca, christmastreeshops.com, harmondiscount.com, buybuybaby.com and worldmarket.com. The Company operates stores in the United States, Puerto Rico and Canada. The Company is also a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond. Additionally, the Company includes Linen Holdings, a business-to-business distributor of a variety of textile products, amenities and other goods to customers in the hospitality, cruise line, food service, healthcare, and other industries.
References contained within this report to "Bed Bath & Beyond Inc. " or "the Company " refer to the enterprise as a whole or, depending on context, to the parent entity in its corporate capacity, while references to an individual brand (Bed Bath & Beyond, Christmas Tree Shops, Christmas Tree Shops andThat!, andThat!, World Market, Cost Plus World Market, Cost Plus, Harmon, Harmon Face Values, buybuy BABY) discuss topics specific to that individual brand. Because domestic Bed Bath & Beyond stores constitute the vast majority of the Company's locations and activity, in the absence of a specific designation indicating otherwise, these materials should be read as applying to the U.S. operations of Bed Bath & Beyond stores and bedbathandbeyond.com.
The Company has reviewed various methodologies for sustainability reporting in the collection of information and development of this corporate responsibility report, though no single set of protocols has been exclusively adopted.
Prior years' corporate responsibility reports are available for review on the Company's website, on the Corporate Responsibility landing page.
We have informed our shareholders and customers of our commitment in prior years' annual reports, proxy statements and corporate responsibility reports, in various places on our website. While we are proud of our accomplishments to date, as with everything we do, we are never satisfied. We will continue to strive for improvement.
Since our inception in 1971, Bed Bath & Beyond has been dedicated to being a responsible corporate entity in the markets we serve by offering attractive merchandise at competitive prices, supported by superior customer service. In addition to these core principles, the Company has often indicated its commitment to being a positive economic force, a responsible citizen in the communities we serve, and a mindful steward of the resources we consume. We have informed our shareholders and customers of our commitment in prior years' annual reports and proxy statements, in various places on our website and in prior years' corporate responsibility reports. While we are proud of our accomplishments to date, as with everything we do, we are never satisfied. We will continue to strive for improvement.
This report may contain forward-looking statements. Many of these forward-looking statements can be identified by use of words such as may, will, expect, anticipate, approximate, estimate, assume, continue, model, project, plan, and similar words and phrases. The Company's actual results and future financial condition may differ materially from those expressed in any such forward-looking statements as a result of many factors. Such factors include, without limitation: general economic conditions including the housing market, a challenging overall macroeconomic environment and related changes in the retailing environment, consumer preferences and spending habits; demographics and other macroeconomic factors that may impact the level of spending for the types of merchandise sold by the Company; civil disturbances and terrorist acts; unusual weather patterns and natural disasters; competition from existing and potential competitors; competition from other channels of distribution; pricing pressures; liquidity; the ability to attract and retain qualified employees in all areas of the organization; the cost of labor, merchandise and other costs and expenses; the ability to find suitable locations at acceptable occupancy costs and other terms to support the Company’s expansion program; the ability to assess and implement technologies in support of the Company’s development of its Omni channel capabilities; uncertainty in financial markets; disruptions to the Company's information technology systems including but not limited to security breaches of the Company’s systems protecting consumer and employee information; reputational risk arising from challenges to the Company’s or a third party supplier’s compliance with various laws, regulations or standards, including those related to labor, health, safety, privacy or the environment; changes to statutory, regulatory and legal requirements; new, or developments in existing, litigation, claims or assessments; changes to, or new, tax laws or interpretation of existing tax laws; changes to, or new, accounting standards including, without limitation, changes to lease accounting standards; foreign currency exchange rate fluctuations; and the integration of acquired businesses. The Company does not undertake any obligation to update its forward-looking statements.
If you have any comments or suggestions relative to this report, please feel free to contact us at email@example.com, where they will be considered, acted upon if appropriate, and in all cases appreciated.
II. Governanceback to top
Bed Bath & Beyond Inc. was founded in 1971 and went public in 1992. Shares of Bed Bath & Beyond Inc. are traded on the NASDAQ National Market under the symbol "BBBY " and are included in the Standard & Poor’s 500 Index and the NASDAQ-100 Index. The Company is counted among the Fortune 500 and the Forbes Global 2000.
The Company’s objective is to be a customer’s first choice for products and services in the categories offered, in the markets in which the Company operates. The Company’s strategy is to achieve this objective through excellent customer service, an extensive breadth and depth of assortment, everyday low prices, and introduction of new merchandising offerings, supported by the continuous development and improvement of our infrastructure.
A. Governance Structure of the Organization
The Company lists its Directors and Executive Officers in the Investor Relations section of its website at www.bedbathandbeyond.com. The Board of Directors is made up of three executive and seven independent members.
The Board of Directors, upon the advice of the Nominating and Corporate Governance Committee, has determined that each of Ms. Morrison, Ms. Elliott and Messrs. Adler, Barshay, Eppler, Gaston and Heller are "independent directors" under the independence standards set forth in the NASDAQ Listing Rule 5605(a)(2). This determination was based on the fact that each of these directors is not an executive officer or employee of the Company or has any other relationship which, in the opinion of the Board of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.
More information is available in the Company’s most recent Proxy Statement, in the Director Independence section (pg. 45).
The Company’s executive officers are elected by the Board of Directors for one-year terms and serve at the discretion of the Board of Directors. No family relationships exist between any of the executive officers or directors of the Company.
Co-Chairmen Warren Eisenberg and Leonard Feinstein, founders of Bed Bath & Beyond Inc., and Chief Executive Officer Steven Temares, are executive officers in addition to being members of the Board of Directors.
Committees and Governance Documents, including Committee charters, are listed on the Company’s investor relations site, including the following documents:
- Audit Committee
- Compensation Committee
- Nominating and Corporance Governance Committee
- Incentive Compensation Committee for Non-Senior Persons
- Policy of Ethical Standards for Business Conduct
- Corporate Governance Guidelines
- Policies Regarding Director Nominations, Shareholder Communications and Annual Meeting Attendance
- Compensation Committee Equity Grant Procedures
- Procedures for the Grant of Equity Awards to Non-Senior Persons
Information about Committees of the Board
All members of the Audit, Compensation and Nominating and Corporate Governance Committees are considered independent pursuant to applicable Securities and Exchange Commission ("SEC") and NASDAQ rules. None of the members of the Compensation Committee was (i) during fiscal 2014, an officer or employee of the Company or any of its subsidiaries or (ii) formerly an officer of the Company or any of its subsidiaries. None of our executive officers currently serves, or in fiscal 2014 has served, as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving on our Board of Directors or Compensation Committee.
Messrs. Eisenberg, Feinstein and Temares function together as the senior leaders of the Company. Since Messrs. Eisenberg, Feinstein and Temares are not "independent directors" within the meaning of the NASDAQ Listing Rule 5605(a)(2), the Board of Directors appointed an independent director to serve as the outside Lead Director. Mr. Eppler has served as the outside Lead Director since 2002. The general authority and responsibilities of the outside Lead Director are established by the Board of Directors. In that capacity, Mr. Eppler presides at all executive sessions of the independent directors, has the authority to call meetings of the independent directors, acts as a liaison between the members of the Board and management, functions as Secretary of the Board (including with respect to the proposal and maintenance of Board agendas and schedules for meetings), arranges for Board committee functions and acts as Secretary of all Board committees, and receives communications from the Company’s shareholders.
B. Policies, Guidelines and Practices
Corporate Governance Guidelines
This document includes the Company’s policies on Board composition, responsibilities of the Board of Directors, Board meetings and materials, Board committees and shareholder communications with the Board.
The Board’s general policy, based on experience, is that the positions of Chairman of the Board and Chief Executive Officer should be held by separate persons. The Board may, at its discretion, appoint Co-Chairmen, each of whom may exercise the full powers and authorities of the office of Chairman.
Members of the Board of Directors shall act at all times in accordance with the requirements of the Company’s Policy of Ethical Standards for Business Conduct, which is applicable to each director in connection with his or her activities relating to the Company. This obligation shall at all times include, without limitation, adherence to the Company’s policies with respect to conflicts of interest, confidentiality, protection of the Company’s assets, ethical conduct in business dealings and respect for and compliance with applicable law. Any waiver of the requirements of the Policy of Ethical Standards for Business Conduct with respect to any individual director shall be reported to, and be subject to the approval of, the Board of Directors.
Processes for Evaluating the Board of Directors
Board Membership Criteria
The Board has adopted a policy regarding specific, minimum qualifications for potential directors. These factors, and others as considered useful by the Board and the Nominating and Corporate Governance Committee, are reviewed in the context of an assessment of the perceived needs of the Board at a particular point in time. Board members are expected to prepare for, attend, and participate in all Board and applicable Committee meetings. Each Board member is expected to ensure that other existing and planned future commitments do not materially interfere with the member’s service as a director. These other commitments will be considered by the Nominating and Corporate Governance Committee and the Board when reviewing Board candidates.
Selection of New Director Candidates
Through the Board’s adopted policy regarding the process for identifying and evaluating director nominees, the Nominating and Corporate Governance Committee identifies individuals qualified to become Board members and considers, evaluates and recommends for the Board’s selection nominees to fill positions on the Board. The Board shall give due consideration to the Committee’s recommendation in selecting the slate of directors to stand for election by the Company’s shareholders.
Compensation Philosophy and Objectives
The Compensation Committee’s principal objective is to develop and implement compensation policies that align the compensation of our executives with the Company’s performance and enhancements to shareholder value, while at the same time retaining an executive team that drives the success of the Company. The Company believes that a key factor in the Company’s performance has been the stability of its executive team. To that end, the Company’s policy is to seek whenever possible, at all levels, to promote from within and to compensate executives in a manner designed to promote the long-term success of the organization. This policy has enabled the Company to develop an executive team with deep institutional knowledge of the Company and the retail industry, an average tenure with the Company of over 30 years, and correspondingly productive and collaborative working relationships with their fellow executives. The Company believes that its compensation policies, plans and programs have no material adverse effect on the Company’s enterprise risk.
Additional information is available in the ‘Executive Compensation’ section in the Company’s most recent Proxy Statement. (pg. 50 and following). This discussion includes significant detail regarding changes in the Executive Compensation program put into place for fiscal 2014, following significant engagement with shareholders.
Management regularly reports to the Board of Directors with respect to compliance and risk management matters through a formal risk management process and committee. The committee, which consists of a number of key executives, meets with executives of each principal business function to identify and assess the significant risks in each such business function’s areas of responsibility, then analyzes what risk mitigation efforts are or should be in place to eliminate or minimize such risks to acceptable levels.
Code of Conduct
It is the policy of Bed Bath & Beyond Inc. to conduct all business transactions in accordance with the highest ethical standards. The Company’s Policy of Ethical Standards for Business Conduct sets forth the ethical standards all associates (including all officers) and members of the board of directors are expected to abide by when acting on behalf of the Company.
This policy includes our policies on business ethics and conduct, conflicts of interest, associate honesty standards, use of company property, privacy, and confidential information.
Commitments to External Initiatives
Bed Bath & Beyond Inc. is a member of the National Retail Federation and the Retail Council of Canada. These associations are valuable resources allowing the organization to remain informed about developments impacting the retail industry across a number of functional areas.
Critical Accounting Policies
The preparation of consolidated financial statements in conformity with GAAP requires the Company to establish accounting policies and to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company outlines these policies in its most recent Annual Report under Critical Accounting Policies. (pg. 11 and following).
C. Stakeholder Engagement
Policy Regarding Shareholder Communications with the Board
The Board welcomes communications from the Company’s shareholders. Shareholders may communicate directly to the Board of Directors, or to any particular director, by mailing a letter to the Lead Director with an address provided in the Policies for Shareholder Communication. Comments and questions made by shareholders are regularly reviewed and taken into consideration for decisions in regards to corporate policies or process.
The Company’s Investor Relations group also regularly communicates with shareholders.
The Company communicates with its associates regularly through a series of internal communication formats, generally including daily store meetings, as well as intranet postings. Topics communicated include Company news, training, merchandising, and human resources and customer service policies and procedures. All associates are trained on the Company philosophy of intellectual honesty, taking ownership of decisions, reporting any unethical behavior, and admitting mistakes or problems, and they are encouraged to communicate freely under an open door policy. Associates also use an anonymous hotline to report questionable conduct or theft concerns. Comments and questions from associates are encouraged and considered in our continuing effort to refine and improve store and corporate policies and/or processes.
The Company seeks to continually improve and expand communications with our customers. Customers may communicate with the Company by direct contact with store associates, using the toll-free customer service number and by use of email available on www.bedbathandbeyond.com, www.buybuybaby.com, www.facevalues.com, www.christmastreeshops.com, and www.worldmarket.com. The Bed Bath & Beyond, buybuy BABY, and World Market, Cost Plus World Market and Cost Plus sites also accept customer reviews of specific products. In addition, Bed Bath & Beyond, buybuy BABY, Christmas Tree Shops, andThat!, and World Market, Cost Plus World Market, Cost Plus maintain Facebook pages, and Bed Bath & Beyond, buybuy BABY and World Market, Cost Plus World Market, Cost Plus maintain Twitter accounts. Customers engage through these channels on all matters, including merchandise and order issues, or questions or comments on corporate philosophy. Comments and questions from customers are reviewed daily by senior management and considered when making decisions with respect to store and corporate policies or processes.
III. Economic Responsibilityback to top
Since it has been in business, Bed Bath & Beyond Inc. has achieved substantial growth in net earnings, as detailed in its most recent Annual Report as detailed in the Consolidated Selected Financial data summary.
Since December 2004, in order to return value to its shareholders, the Company has undertaken a share repurchase program, the aggregate amount of which has totaled approximately $8.6 billion dollars through February 27, 2015.
The Company’s consolidated working capital, total assets and shareholders’ equity have each grown over time.
As of December 31, 2014, the Company employed more than 61,000 associates in full-time and part-time positions, most of whom work in stores, with the balance working in our offices and distribution centers. Our associates are the principal connection between our Company and our customers. Their creativity and innovation have been among the principal reasons for the success of the programs designed to sustain our corporate responsibility mission. Our associates remain our most valuable asset.
IV. Social Responsibilityback to top
Bed Bath & Beyond Inc. is committed to being a good neighbor by ensuring that we give back to the communities we serve. In our decentralized culture, local managers are empowered to support local events and do so on a frequent basis. In addition, the Company has a number of relationships through which we can engage with and serve our customers and others in the areas in which we do business.
In 2001, Bed Bath & Beyond formed a partnership with Good360 (formerly known as Gifts In Kind International), a non-profit organization based in Alexandria, Virginia, that has enabled us to provide product donations to those most in need.
For the past thirteen years, we have worked with Good360 to match each of our retail stores with a local 501(c)(3) charity. Merchandise is donated on a weekly basis from our stores to hundreds of local charities across the United States, Canada and Puerto Rico. Merchandise donations provide relief and assistance to many people in difficult situations, such as victims of natural disasters, transitional housing needs for families in crisis, youth in low income situations, and support for mentally and physically disabled individuals.
In 2008, one of our subsidiary companies, buybuy BABY, joined the partnership.
The amount of merchandise we have donated locally has increased each year since we formed our partnership. For fiscal year 2013, we estimate the fair value of our product donations to have been more than $156 million. To date, we estimate we have provided more than $896 million in product donations to our local communities.
The Company has been recognized by Good360 as a Light of Hope Award winner. This award recognizes corporations for outstanding corporate citizenship and effective product philanthropy.
In an effort to promote a healthy lifestyle for women and their families, Bed Bath & Beyond Inc. has partnered with HealthyWomen.org (formerly the National Women’s Health Resource Center) since 2004. HealthyWomen.org has become the nation’s leading independent health information source for women providing unbiased and accurate health information for more than 20 years. Utilizing the various online channels available at Bed Bath & Beyond and buybuy BABY, we are happy to provide our customers access to a broad assortment of valuable and reliable health information for themselves and their families supplied by HealthyWomen.org while promoting a healthy lifestyle. Content from HealthyWomen.org is also available on the Company’s www.harmonfacevalues.com website.
Head Injury Association
The Company is a supporting partner of The Head Injury Association (“HIA”), an independent, non-profit agency widely recognized for its innovative programming for survivors of head injury and their families, based in Hauppauge, New York. The HIA offers support services to traumatic brain injury survivors and their families through clinical treatment as well as vocational, educational, cultural, and recreational experiences that help survivors adapt to the daily challenges of life. In addition, the HIA provides the necessary residential programs to help traumatic brain injury survivors achieve four valued outcomes: Individualization, Independence, Integration, and Productivity. The Company assists the HIA in its annual fundraising activities.
National Fish & Wildlife Foundation
In 2008, Bed Bath & Beyond established a relationship with the National Fish & Wildlife Foundation in connection with our sale of reusable shopping bags. Through the support of our customers in purchasing the bags, we have been able to assist a variety of local projects to preserve coastal and marine habitats and the life within them. More detail on this shopping bag program appears below in Section V, subsection A.
Armed Forces & Military Appreciation Offer
Bed Bath & Beyond Inc. honored the service of our U.S. Armed Forces, Active Duty, Retired, Veterans and their families by offering a 20% off entire purchase offer on Veteran’s Day in 2013. This event was just one, small way to express our gratitude.
Corporate Campus RubberWay® Walkway
In support of our continued commitment to healthy lifestyles, Bed Bath & Beyond installed a 10,500 square foot RubberWay ® rubberized walkway and 21,500 square feet of porous rubber pavement installed to create an associate walkway. The use of these recycled materials provided an immediate environmental benefit.
The installation of the RubberWay paving systems has diverted 198,000 pounds of passenger tire rubber which equates to the diverting of 16,500 passenger tires from local landfills. Bed Bath & Beyond had the vision to make an environmental impact in the community while providing an excellent walkway surface for staff recreation.
B. Product and Vendors
As a Company, we realize the need to provide our customers with an assortment of products made from sustainable materials or having other sustainable characteristics. Customers who are interested in purchasing these types of products will be happy to find the following in our various concepts:
Bed Bath & Beyond
Currently Bed Bath & Beyond offers alternative products deemed sustainable and materials with energy saving properties in a number of product categories such as cleaning, utility, bedding, bath, and window.
Examples of textile offerings made from sustainable materials are 100% organic towels and eucalyptus sheets. In the Bath area, approximately 80% of all our non-fabric shower curtains are made of PEVA or EVA instead of vinyl, and we have shifted over 65% of our non-fabric shower liner assortment from PVC to EVA. Bamboo is used in a collection of bath furniture, bath accessories, placemats, cutting boards, serveware, and snack tables.
We have shifted over 65% of our non-fabric shower liner assortment from PVC to EVA and now approximately 80% of our non-fabric shower curtains are made of PEVA or EVA.
Products made from repurposed materials are also offered in our assortment, including placemats made of repurposed saris and doormats made of repurposed flip flops. A line of headphones and speakers made of recycled materials is also available.
We also offer a growing assortment of organic teas, coffees, juices, pastas, and snack foods.
Energy saving products have become increasingly important choices for our customers. Included in our offerings are window treatments with insulating properties under the Insola brand and a range of down comforters providing natural warmth. These products are identified with the E²symbol, our designation for products that could create energy savings for our customers. Shower heads that reduce water consumption are included in our product assortment, accounting for approximately 10% of the assortment.
buybuy BABY offer a variety of organic products. The assortment includes layette and bedding made of organic cotton, organic plush toys, as well as organic cotton towels and washcloths. buybuy BABY offers an organic mattress option, as well as a mattress that uses soy foam. Customers can also choose from an assortment of organic baby food options and natural cleaning products. We also sell a number of GREENGUARD certified mattresses and cribs. Products bearing the GREENGUARD mark are certified by an independent third-party organization as having low emissions of volatile organic compounds.
Christmas Tree Shops, Christmas Tree Shops andThat!, andThat!
Within the constantly changing merchandise selection at Christmas Tree Shops, Christmas Tree Shops andThat!, and andThat! stores, customers have been presented with energy saving items such as insulated window treatments, door and window insulation kits, weather stripping, and compact fluorescent bulbs. In season, the selection has also included items such as outdoor solar lighting and solar driveway markers. The stores regularly offer a selection of bamboo cutting boards and other housewares, as well as a wide selection of natural woven products, such as baskets made of sea grass, bamboo and straw.
Harmon, Harmon Face Values
Harmon and Harmon Face Value carry lines of natural and organic products. These types of products are available in a variety of product categories including household cleaning products, baby personal care products for the skin (including diaper rash creams and lotions), shampoo, as well as an abundance of adult personal care products.
Consistent with our customer focused mission, we continue to explore additional opportunities to satisfy customer needs in these broad categories by offering items that are made from sustainable, recycled, organic, and repurposed materials or that provide energy savings.
World Market, Cost Plus World Market, Cost Plus
World Market, Cost Plus World Market and Cost Plus offer customers a broad selection of unique, authentic and affordable products sourced from over 50 countries in Europe, Asia, North and South America, Africa and Australia. Certain products are handcrafted by local artisans using recycled materials. Current examples of such include Chindi Rugs from India that are hand woven from reclaimed silk and chiffon Sari fabric, as well as, hand tufted or woven dhurrie PET Rugs from India that are made from recycled plastic bottles spun into yarn and then dyed. Additionally, World Market, Cost Plus World Market and Cost Plus offer collectible bowls, candleholders, jewelry boxes, and animal and shape decorative pieces that are hand carved out of Kisii Soapstone found in Western Kenya.
Product - Quality & Safety
At Bed Bath & Beyond, we choose our vendor partners carefully, knowing the importance of responsibly managed factories, production and output. Acting responsibly when it comes to vendor selection and sourcing is in our control, and we take this task seriously. Making appropriate materials choices is also a consideration. We follow guidance provided by the industry and comply with all industry safety standards.
Product Regulatory Compliance & Quality Standards
Bed Bath & Beyond Inc. is committed to providing its customers with safe, high quality products. In order to achieve this goal, through our partnerships with accredited, world-wide, independent testing laboratories, Bed Bath & Beyond maintains a Quality Assurance Testing Program (“Testing Program”). Although the amount of product that we sell in our stores that is imported directly by us is a small portion of our business, we require that our direct import products be tested in order to ensure delivery of safe, high quality merchandise to our customers. In addition, we have expanded our Testing Program to include testing of private label products, whether imported or domestically sourced. We have established extensive test protocols to ensure that product is thoroughly scrutinized and tested for compliance with applicable regulations, industry safety standards, and our company standards. We continually review, refine, and update our Testing Program. The Testing Program is employed by Bed Bath & Beyond, buybuy BABY, Christmas Tree Shops, Christmas Tree Shops andThat! and Harmon, Harmon Face Values with some variation.
We also require our vendors to review and acknowledge conformance with the requirements set forth in our Quality Assurance Manual and Vendor Compliance Guides (Import and Domestic). All products made for our stores must comply with all applicable U.S. and international laws, rules, guidelines and regulations, and meet industry safety standards and company standards.
Regulatory and Industry Monitoring
We monitor U.S. and global legal and industry proposals, discussions and developments relating to the consumer products we sell. We share our knowledge with our vendors.
Proactive Company Standards
We are diligent in our monitoring of industry and regulatory developments and trends, which allows us to be proactive in establishing company product standards. In a number of cases Bed Bath & Beyond Inc. requires its vendors to implement product standards ahead of regulatory requirements. Bed Bath & Beyond Inc. has also established company standards for certain product categories above and beyond regulatory requirements. Examples include:
- Policy established to mitigate the risk of furniture tipping by requiring a tip resistant kit and warnings to be included with any furniture item over 30 inches tall, as feasible.
- Policy requiring that expanding materials in toys meet the requirements of EN 71-1:2011. Expanding material is defined as a material that increases in volume when exposed to water.
- Policy prohibiting the use of synthetic plastic microbeads measured less than 5 millimeters in size in personal care products effective January 1, 2016 and in over-the-counter medications effective January 1, 2017. This policy is being adopted ahead of regulatory requirements. The microbead policy does not extend to Cost Plus, World Market, or Cost Plus World Market at this time.
- Policy prohibiting the use of triclosan in cleaning products used for sanitizing or hand and body cleansing effective January 1, 2016. The policy does not apply to individual products for which specific FDA approval for consumer use has been secured. This policy is being adopted ahead of regulatory requirements.
buybuy BABY is also a leader in promoting safe sleep environments for babies, via various efforts such as showing bare cribs in its print marketing pieces, displaying educational signage in stores, distributing safe sleep educational materials to baby registrants and customers both in-store and online, as well as providing thorough training to buybuy BABY associates.
Proactive Company Standards – Chemicals
Bed Bath & Beyond Inc. recognizes our customers’ interest regarding chemicals of potential concern in consumer products. In addition to diligent monitoring of regulatory and industry developments in this arena, as part of our above and beyond requirements we have established the following:
- Policy aimed at reducing the use of lead and cadmium by requiring a more stringent chemical content level for private label products than required by current regulation.
- Policy to achieve phthalate reduction in plastics by extending the scope of regulatory phthalate limits for childcare articles to all private label products where phthalates may be present.
- Policy prohibiting use of certain flame retardants in polyurethane foam, fabric in upholstered products, and sleepwear treated with flame retardants. This prohibition is applied nationally.
- Policy prohibiting use of Polyvinyl Chloride ("BPA") in baby bibs.
- Policy prohibiting use of Polyvinyl Chloride ("BPA") in baby bibs.
- The Company maintains a Restricted Substances List ("RSL") identifying substances that are of potential concern to human health and the environment, although they may not be the subject of current North American legislation. It is recommended that vendors exercise efforts to reduce or eliminate these substances of potential concern in their products. Vendors are encouraged to explore alternatives to the substances on the RSL and reminded to avoid substituting one substance on the RSL for another. The RSL is reviewed and updated at least annually.
- buybuy BABY makes available to customers information regarding the chemical flame retardant content of the mattresses it offers for sale on its website.
- The above policies regarding lead, cadmium, and phthalates apply to private label items sold by Bed Bath & Beyond and buybuy BABY whether imported or domestic and all private label imports sold by Harmon and Harmon Face Values. The above policies regarding PVC and triclosan apply to Bed Bath & Beyond, buybuy BABY, Harmon, Harmon Face Values, Christmas Tree Shops, Christmas Tree Shops andThat!, and andThat!.
- We recognize the need for safe handling, transport and disposal of chemical containing products. Bed Bath & Beyond has partnered with The WERCS, a leader in the industry. The WERCS will work with our vendors to understand the chemical ingredients contained in relevant products, and will then provide us with the data necessary to comply with a variety of regulations relating to the proper handling, storage, transport, and disposal of the product.
Products Containing Chemicals
C. Marketing Communications
The Company is committed to protecting the privacy of our customers and therefore does not sell or rent our customers’ personal information to any third party. Further, we do not share personal information with any third parties for their direct marketing purposes without first providing our customers the opportunity to opt-in or opt-out of such sharing. Our concepts that have a direct mail program (Bed Bath & Beyond and buybuy BABY) subscribe to the DMA’s "Do Not Mail Requestor Program" and apply all requests in a timely manner to our direct marketing program. The DMA is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. Similarly, the Company complies with the guidelines of the Mobile Marketing Association in connection with its marketing activities in the mobile space.
Sustainable Paper Procurement Policy
At Bed Bath & Beyond Inc., we recognize our role in the lifecycle of our print advertising material, and we embrace the responsibility for making that lifecycle as environmentally sustainable as we can. From our founding in 1971, word-of-mouth has defined our approach to communicating with our customers, allowing the quality and selection of our merchandise to speak for themselves. Consequently, we believe we have traditionally relied less on paper to deliver our message than comparable enterprises.
Print ads remain essential marketing tools. Our goal is to increase the sustainability and reduce the environmental footprint of these tools to the greatest extent practicable through our paper selection and use. We encourage the continuing environmental performance improvement of our paper suppliers.
Sustainable Paper Defined
There is general agreement about the definition of sustainability (see the Brundtland Commission report); however, there is as yet no universally accepted definition of sustainable paper. Bed Bath & Beyond Inc. adheres to the more broadly accepted understanding of sustainability in paper procurement, which advocates using only paper products that are sourced and manufactured in ways that minimize the use of natural resources and any burden on the environment throughout their lifecycle.
Our Approach to Sustainable Paper Procurement
Although there is no universally accepted definition of sustainable paper, Bed Bath & Beyond Inc. achieves its sustainable paper procurement goal by meeting specific commitments in five key areas:
- Fiber from Non-Endangered, Sustainable Forests
- Certified Fiber
- Environmentally Superior Manufacturing
- Energy and Greenhouse Gas Reduction
- Minimum Use of Paper
To meet these commitments we use an internal action plan, minimum supplier requirements, supplier preferences, and wherever possible, quantifiable targets. Rather than drafting and redefining new forestry, manufacturing or other sustainability standards and imposing them on ourselves and our suppliers, we have chosen from existing, widely-accepted and respected national and international standards wherever possible. For our forestry requirements, our suppliers will have the option of complying with the relevant provisions of one or more of the following forest certification standards:
- Forest Stewardship Council ("FSC")
- Sustainable Forestry Initiative ("SFI")
- Programme for the Endorsement of Forest Certification Schemes ("PEFC")
Fiber from Non-Endangered, Sustainable Forests
Minimum supplier requirement: Suppliers must demonstrate that none of the fiber in the paper they supply the Company originates in forests that are illegally harvested or endangered, as defined by the FSC, SFI, or PEFC standards. Suppliers also must demonstrate compliance with the Lacey Act, the U.S. law enacted to prevent the importation of illegal wildlife, fish and plants. In 2008, the Act was amended to include illegally harvested wood and wood products, including pulp and paper.
Supplier preference: The Company prefers suppliers who document that all of the fiber in the paper they supply is at least "controlled wood" as defined by the FSC standard or the SFI Fiber Sourcing standard.
Company target: 100 percent of the fiber in our print advertising material is documented as at least controlled.
Minimum supplier requirement: All paper sold to the Company must be certified to either a chain-of-custody or sustainable fiber procurement standard. In addition to the forest certification standards listed above, we will accept certification to other credible standards, including the American Tree Farm System ("ATFS") and Master Logger.
Although the focus of our policy is sustainability, we strive to use paper with recycled content when it is available at price parity with virgin fiber paper, as long as it meets our rigorous print quality standards.
Supplier preference: The Company prefers suppliers who can document the highest percentage of the fiber in their paper back to forests certified to the FSC standard.
Company target: 100 percent of the paper used in our circulars is FSC, SFI and PEFC certified. Much of the fiber in all our other print advertising material is also certified and will work with our suppliers to continue increasing our certified paper purchasing, with the ultimate goal of certifying 100 percent of that fiber.
We expect that all paper merchants keep their certifications (FSC, PEFC and SFI) current to maintain chain of custody.
Environmentally Superior Manufacturing
Minimum supplier requirement: All suppliers must demonstrate to the Company that they operate in an environmentally responsible manner, encourage pollution prevention and seek continuous environmental performance improvement.
Supplier preference: The Company prefers suppliers who:
- Report their environmental and sustainability performance using Metafore’s Environmental Paper Assessment Tool® (“EPAT”)
- Have adopted, implemented and maintain an Environmental Management System (“EMS”) with elements the same as or comparable to the ISO 14001:2004, EMAS. including equivalent company programs; or
- Qualify for eco-labels like Blue Angel and Nordic Swan
Company Target: 100 percent of the Company paper suppliers publish a publicly available Sustainability or Environmental Report.
Energy and Greenhouse Gas Reduction
Minimum supplier requirement: The lack of binding state, federal and international standards for greenhouse gas emissions combined with differing supplier operational considerations makes it difficult to set a specific greenhouse gas reduction requirement for all suppliers. Until clear standards are established, we ask our suppliers to demonstrate a commitment to continuous performance improvement in both overall energy efficiency and greenhouse gas reductions.
Supplier preference: The Company prefers suppliers who demonstrate continuous energy-related performance improvement, including increased overall energy efficiency, in the amount process waste, finding beneficial uses for their process waste, decreased fossil fuel use, reductions in the amount of process water used per ton of product produced, reduction, increased use of renewable energy and decreased greenhouse gas emissions per ton of production (intensity).
Company target: The Company seeks to reduce the carbon footprint of our catalogs, inserts and circulars by moving toward lighter-weight paper grades where practical. Lightweight papers require less energy to manufacture and ship, thereby reducing greenhouse gas emissions that contribute to climate change.
Minimum Use of Paper
Responsibly managed forests where trees are grown, harvested and re-grown in harmony with nature provide a perpetual resource for papermaking. Even so, the Company believes we have a responsibility to use this valuable resource as efficiently as possible. To minimize our use of paper we:
- Conduct regular mailing list maintenance to assure lists are accurate and up to date
- Maintain in-house do-not-market lists for customers and prospects who do not wish to receive circulars from us
- Participate in the DMAChoice program of the Direct Marketing Association (“DMA”), which allows consumers to opt-out of unwanted catalog mailings via the internet
- Design catalogs, inserts and circulars for maximum economy of space
- Work with our printers to eliminate overprinting and reduce waste
- Encourage recycling through our participation in programs like the DMA’s Please Recycle campaign
- Benchmark and implement best environmental practices through our participation in the DMA Green 15 program
Meeting Our Sustainability Goal
We continue to adopt an internal action plan to implement this policy, periodically measure the results toward our targets and adjust our practices to meet these commitments, and we will work with our suppliers to set workable timetables to meet our goal.
D. Human Resources
The expansion of our store count and our merchandise offerings has required similar expansion of our staff, which we have accomplished, in part, by promotions from within the Company, as well as by hiring the most qualified candidates. A number of former stock associates, sales associates and management trainees are today the Store Managers, District Managers, Regional Managers and Vice Presidents of the Company. And, as we continue to grow, our "promote from within" philosophy will continue to offer the opportunity for advancement to qualified associates. We offer numerous opportunities for people who wish to move ahead in the retail field and demonstrate commitment, motivation and ability. We welcome new associates, hoping they will enjoy being a part of our Company’s growth.
The Company celebrates diversity and believes that our diverse workforce contributes to the strong bond our associates have with our customers. We also believe that our commitment to diversity and the outstanding opportunities for professional and personal growth we offer to all associates, regardless of background, contribute to the extraordinarily high associate retention rate that we have long enjoyed.
For more information see our Complete Commitment to Equal Opportunity and Diversity Statement.
The Company has zero tolerance for any form of harassment or unlawful discrimination. Our policies relating to workplace issues revolve around a philosophy of mutual respect.
Since its founding in 1971, the Company has been committed to working directly with our associates with respect to any issues that may arise. Our actions over the years demonstrate our desire to have our managers available for our associates. Our associates share a common mutual interest to do what is right for our customers and our business. We are proud of the environment we provide our associates. We have a commitment to communicating with our associates, ensuring they work in a safe environment, providing recognition and feedback, training and developing our associates, treating them consistently, and having our leadership team strive to act with integrity and to lead by example in all instances.
We have developed a culture that believes in empowering our people with a decentralized management structure. We give them the autonomy to run the business and be an entrepreneur. With this empowerment and decentralized decision-making process comes many responsibilities, including intellectual honesty.
We remind our associates that they are representatives of the Company and, as such, it is expected that their behavior and conduct are appropriate and beyond reproach in all professional and personal dealings and interactions with all levels of associates, vendors, customers, or others.
The Company is also committed to maintaining a working environment completely free from harassment, unlawful discrimination or intimidation of any kind. We have policies and procedures in place to discourage such conduct and enable associates to report such conduct (even anonymously) so that it can be promptly and fairly addressed. Appropriate disciplinary action will be taken against any associate who harasses or unlawfully discriminates in violation of this policy.
Safe Work Environment
It is the policy of Bed Bath & Beyond Inc. to provide a safe and accident free environment for our associates and customers.
The success of Bed Bath & Beyond in preventing accidents from occurring is dependent upon three critical elements:
- Established safety standards
- An awareness and training program
- Safe work practices consistently enforced
The Company has an established safety program and encourages safe work practices. We provide awareness and training programs for all associates. The specific awareness and/or training program consists of: Regulated Waste Program, Lifting and Ladder Certification, Fire Safety Training, Material Safety Data Sheets ("MSDS"), Safety Knife, Tritium Exit Sign, Workplace Violence training, and Code Adam alerts.
The safety of our customers and associates requires that we address violations of safe work practices. Safety guidelines provide a fair and consistent approach to counseling when unsafe practices are observed.
Employment at any of our locations is based solely on job-related qualifications: we recruit, hire, train, promote and compensate our associates and provide all other conditions of employment including company sponsored events without regard to race, color, creed, religion, national origin, age, sex, gender identity, genetic information, marital status, lawful alien status, sexual orientation, physical or mental disability, citizenship status, veteran status, employment status, or any other basis prohibited by applicable law. Employment actions are based upon our operating needs and individual associate or applicant merit, including but not limited to: qualifications, experience, ability, availability, cooperation, and job performance.
Our Associate Referral Bonus Plan is designed to provide incentive to associates to encourage and recommend friends, acquaintances, former work associates, or people met while shopping who provided excellent customer service, for possible employment with us.
In addition our recruiting efforts are widespread via such means as the Internet, college campus visits, job fairs, and venues designed to increase our access to qualified minority candidates.
Bed Bath & Beyond Inc. provides its eligible associates with a variety of benefits, including:
- Medical & Dental Benefits
- Personal Life Insurance
- Dependent Care Flexible Spending Account
- Health Care Flexible Spending Account
- Paid Sick Days
- Paid Vacation
- Paid Personal Days
- 401(k) Savings Plan
- Associate Purchase Discounts
Training and Education
Bed Bath & Beyond Inc. is a unique company with a unique culture and, as such, we have a unique approach to training. Our strong, service-oriented culture is based on a philosophy of promoting from within. Our many training programs, such as Associate Development Training, Management Development Training, Leadership Development Training, and Product University Training, are designed to give our associates the skills that will enable them to grow as far as their ability will take them in our Company.
We are now hiring and training the managers who will become our store managers and district managers in the near future. Successful candidates with retail management experience will be given the opportunity for advancement via our "promote from within" approach. Just as we offer our customers the widest range of quality housewares and home furnishings, we offer energetic and ambitious individuals a wide range of outstanding opportunities, an incredible sense of loyalty and the ability to grow with a proven industry leader.
Associates are considered for advancement based on their performance in their present position and the skills they demonstrate. There are many career opportunities available to qualified associates. Our Company’s continued growth is constantly generating new job openings, which can create opportunities for advancement for qualified associates. Associates are encouraged to let their supervisors know exactly what their interests are, to learn as much as possible about the various careers within the Company and to be certain that their performance is at its best.
Bed Bath & Beyond Inc. provides reasonable accommodations to ensure that qualified individuals with disabilities enjoy equal employment opportunities. Bed Bath & Beyond Inc. provides, at a minimum, all legally required reasonable accommodations. Where circumstances permit, Bed Bath & Beyond Inc. may provide accommodations which go beyond that which is legally required.
In general, a reasonable accommodation is any change in the workplace or the way things are customarily done that provides an equal employment opportunity to an individual with a disability. While there are some things that are not considered reasonable accommodations (for example, removal of an essential job function or personal use items such as a hearing aid or eye glasses that someone already has and is using on and off the job), reasonable accommodations can cover most things that enable an individual to apply for a job, perform a job, or have equal access to the workplace and associate benefits. Common types of accommodations include: modifying work schedules, granting breaks, providing leaves of absences (including extending the duration of leaves of absences outlined under our leave policies), removing and/or substituting a marginal job function, making changes in workplace policies and/or providing a reassignment to another vacant job for which an individual is qualified to perform.
Bed Bath & Beyond Inc. will review accommodation(s) on an individual basis and, as necessary, attempt to engage associates in an interactive dialogue about potential reasonable accommodations. This commitment extends to associates on authorized medical leaves of absence. To be reinstated from medical leaves, associates need not be free from all work restrictions but must be able to safely and successfully perform all essential job functions, with or without reasonable accommodations that do not pose an undue hardship. If associates are not qualified to return to work at the expiration of authorized medical leaves, Bed Bath & Beyond Inc. also will consider providing additional job-protected leave as a reasonable accommodation.
When necessary to facilitate an interactive dialogue about potential reasonable accommodations, Bed Bath & Beyond Inc. may request that associates provide medical documentation explaining the medical need for the accommodations and/or input on the precise, job-related limitations caused by the disability. Bed Bath & Beyond Inc. will consider a number of factors when evaluating requested accommodations including, but not limited to, the essential function(s) of the position, the specific restriction(s), the staffing levels, the duration of the restriction, and the hardship that might be placed on other associates and the business. Bed Bath & Beyond Inc. will process any requests for reasonable accommodations in a prompt and efficient manner.
E. Social Compliance (including disclosures under the California Transparency in Supply Chains Act of 2010)
Bed Bath & Beyond Inc. is committed to sourcing quality merchandise while developing meaningful, long-term relationships with vendors who share common principles of social responsibility.
In connection with this effort, we encourage our vendors to adopt a comprehensive program of responsible practices and to prepare a corporate responsibility (or “sustainability”) report if they do not already do so.
In addition, all vendors and their factories must adhere to our "Code of Conduct", which details our policies in regard to child labor, involuntary labor, human trafficking, disciplinary practices, non-discrimination, health and safety, environmental protection, wages and benefits, working hours, employee relations, and other items. Vendor compliance with the Code of Conduct is verified in part through our Social Compliance Audit Program detailed below. The Social Compliance Audit Program includes third-party audits of certain vendors and vendor corrective action plans.
The Quality Assurance team meets with Company executives annually to review the Social Compliance Audit Program. The Quality Assurance team, as well as other associates with roles related to the supply chain, participates in meetings and webinars provided by third-party providers to stay current on the subjects of human trafficking and slavery and to further develop the Company’s Social Compliance Audit Program. The Code of Conduct and specifically issues of slavery and human trafficking are addressed in the Company’s training of new associates in buying and product development. The training is repeated periodically for those associates. Company associates are expected to adhere to the Code of Conduct and Company Ethical Policies and report any violations accordingly.
Vendors must also follow our Conflict Minerals Policy included below. The Conflict Minerals Policy and the Code of Conduct are made available to vendors in our Quality Assurance Manuals.
Certain additional information regarding social compliance activities of Cost Plus, Inc. is available on its website at: http://www.worldmarketcorp.com/about-us/social-compliance.
Code of Conduct
The Bed Bath & Beyond Inc. Code of Conduct summarizes the basic requirements concerning working conditions that must be satisfied by each vendor for every location. Bed Bath & Beyond Inc. reserves the right to change and supplement the Code of Conduct at any time.
Vendors shall familiarize workers with the Code of Conduct and display it, translated in the local language, at each of their facilities in a location readily accessible to workers. Vendors shall ensure that their contractors and suppliers adhere to the Code of Conduct.
Vendors shall not use child labor. For purposes of this Code, "Child" means being of the age for compulsory schooling and, in any case, shall not be less than 15 years. If any country or locality of production or export has a more restrictive definition of child labor, then that more restrictive definition applies. Vendors must verify the age of their workers and maintain copies of their workers’ proof of age. Vendors must follow all applicable laws and regulations regarding working hours and conditions for minors.
Vendors shall not use involuntary labor. "Involuntary Labor" is defined as work or service which is extracted from any person under threat or penalty for its non-performance and for which the worker does not offer himself or herself voluntarily, and includes all manner of prison, bonded, indentured and forced labor.
Vendors and all direct suppliers to such vendors shall comply with the laws addressing human trafficking and slavery of the country or countries where the vendors do business. In addition, vendors and all direct suppliers to such vendors shall not engage in the recruitment, transportation, transfer, harbouring or receipt of persons, by means of the threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of exploitation. Exploitation shall include, at a minimum, the exploitation or the prostitution of others or other forms of sexual exploitation, forced labor or services, slavery or practices similar to slavery, or servitude. Workers must be allowed to maintain control over their identity documents.
Vendors must implement procedures to manage all aspects of the supply chain to ensure they comply with the foregoing prohibitions on slavery and human trafficking.
Hiring, Employment and Disciplinary Practices
Vendors must implement hiring practices that accurately verify workers’ age and legal right to work in the country prior to employment. Work permits, as applicable, and copies of government issued identification documents must be maintained in the personnel files of all workers.
Vendors shall employ workers solely on the basis of their ability to do the job and shall not discriminate on the basis of age, gender, racial characteristics, maternity or marital status, nationality or cultural, religious or personal beliefs in relation to hiring, wages, benefits, or termination.
Vendors shall treat all workers with dignity and respect. Factories shall not use corporal punishment or any other form of physical or psychological coercion or intimidation against workers.
Health and Safety
Vendors shall provide workers with a clean, safe, and healthy workplace in compliance with all applicable laws and regulations.
The work environment must be safe and sanitary to ensure there are no unreasonable risks to the health and safety of all workers. Factories must implement procedures and safeguards to prevent accidents and injuries to workers; procedures and safeguards include, but are not limited to, inspection of buildings, machinery, and fire extinguishers. Regular and recorded health and safety training shall be provided for all new or reassigned workers and management.
Vendors shall ensure that workers have access to clean drinking water, sanitary washing facilities, and an adequate number of toilets.
Aisles, exits, and stairwells must be kept unblocked at all times. The workplaces must provide adequate lighting and ventilation.
Vendors must maintain appropriate chemical safety ensuring proper chemical storage, eye wash stations, and Personal Protective Equipment for workers, as applicable.
Vendors should ensure that every manufacturing facility complies with environmental laws, including all laws related to waste disposal, air emissions, discharges, toxic substances, and hazardous waste disposal, as well as procedures for notifying local authorities in the event of an environmental accident resulting from the vendor’s operations.
Factories must take steps to ensure that all input materials and components were obtained from permissible sources consistent with international treaties and local laws and regulations. Appropriate and adequate environmental training should be provided to all workers and management.
Wages and Benefits
Vendors shall provide wages and benefits that comply with all applicable laws and regulations, or the prevailing local manufacturing or industry rates, whichever is higher. Overtime pay shall be calculated at the legally required rate. Factories must compensate all workers in accordance with the law and where applicable with contractual agreements. Workers must be provided with written and understandable details regarding their employment and compensation.
Vendors shall not require workers to work, including overtime, more than 60 hours per week or more than any maximum number of hours per week established by applicable laws and regulations, whichever is less. Unless extraordinary circumstances exist, vendors shall guarantee that workers receive at least one day off during each seven day period.
Vendors shall respect the right of workers to take advantage of any applicable laws allowing employees to freely associate.
Dormitories and Canteen
Factories that provide residential and dining facilities for their workers must provide safe, healthy, and sanitary facilities. All areas of the dormitory facilities shall be kept secure, clean and have safety provisions (such as fire extinguishers, first aid kits, unobstructed emergency exits, emergency lighting, etc.). Emergency evacuation drills shall be conducted at least once a year. Additionally, factories shall provide appropriate washroom facilities, including adequate toilets and showers segregated by gender. The facility should also have security measures to protect employees and their property. Dormitories must be in compliance with all housing laws and regulations, occupancy requirements, and health and safety laws.
Vendors shall comply with all legal requirements applicable to the conduct of their businesses, including those set out above.
Social Compliance Audits
As an additional measure toward attaining our goal of responsible sourcing of our merchandise, the Company has an ongoing social compliance audit program. The audit program applies to all vendors of our direct import merchandise. Although the amount of our direct imports is a small portion of our business, the purpose of these audits is to ensure these imports are produced in compliance with our Code of Conduct. The audit program varies by concept and consists of vendor self-validation, review of existing 3rd party audits, and/or onsite factory audits. The requirements of the program are communicated to vendors through the Company’s Quality Assurance Manuals.
Onsite factory audits initiated by the Company are conducted on a semi-unannounced basis. All vendors must allow the Company’s agents or 3rd party audit partner to conduct both scheduled and unscheduled inspections of their facilities. During audits, the Company maintains the right to, among other things, review all employee related books and records maintained by the vendor and to interview workers outside the presence of factory management. The audit also includes protocols to assess risks of human trafficking and slavery. Any deficiencies identified in a Social Compliance Audit must be remedied within a reasonable timeframe.
Conflict Minerals Policy
Rule 13p-1 under the Securities Exchange Act requires U.S. publicly traded companies that manufacture or contract to manufacture products to report to the Securities and Exchange Commission ("SEC") annually on whether those products contain tin, tungsten, tantalum, and/or gold necessary to the functionality or production of the products and whether those minerals were derived from Covered Countries. Gold and columbite-tantalite, cassiterite and wolframite – which are refined into tantalum, tin and tungsten – are considered to be "Conflict Minerals". The "Covered Countries" include: the Democratic Republic of the Congo; Angola; Burundi; Rwanda; South Sudan; Tanzania; Central African Republic; Uganda; Republic of the Congo; and Zambia.
Additional information can be found at: http://www.sec.gov/news/press/2012/2012-163.htm.
Bed Bath & Beyond Inc. takes its obligations under SEC regulations and other regulations seriously. Bed Bath & Beyond Inc. has adopted the supplier requirements contained herein as part of our Conflict Minerals Program. Suppliers are expected to review the Conflict Free Sourcing Initiative's Conflict Free Smelter list and strive to only accept Conflict Minerals that derive from Conflict Free Smelters.
In furtherance of the foregoing, Bed Bath & Beyond Inc. also specifically expects all suppliers of Bed Bath & Beyond Inc. imported and domestically sourced private label products to:
- Adopt and comply with a conflict free sourcing policy that is consistent with these requirements and Bed Bath & Beyond Inc.'s publicly posted Code of Conduct, and to require its direct and indirect suppliers to do the same;
- Determine which of the products incorporate Conflict Minerals, regardless of country of origin;
- Map its supply chains associated with those products, including by engaging its suppliers to identify the smelters and refiners used in its supply chain to process the Conflict Minerals and determining whether the Conflict Minerals are recycled, scrap or original extraction;
- Obtain and prepare documentation supporting the origin determination for any Conflict Minerals incorporated into the products; and
- Otherwise put in place policies, procedures and frameworks that are consistent with the Organization for Economic Co-operation and Development's Due Diligence Guidance for Responsible Supply Chains of Minerals From Conflict-Affected and High-Risk Areas.
Bed Bath & Beyond Inc. will annually require sourcing and related information from certain suppliers in the form of a survey that must be completed for imported and domestically sourced private label products supplied to Bed Bath & Beyond Inc. Bed Bath & Beyond Inc. reserves the right to request this information on a more frequent basis and to request additional or supplemental information. If any information concerning the usage or source of Conflict Minerals furnished to Bed Bath & Beyond Inc. is later determined by the supplier to have been inaccurate, the supplier shall promptly (and in any event within 72 hours) notify Bed Bath & Beyond Inc.
Bed Bath & Beyond Inc. also reserves the right to periodically request documentation evidencing a supplier's sourcing policies and practices and the efforts the supplier has taken to identify the source of the Conflict Minerals used in Bed Bath & Beyond Inc. imported and domestically sourced private label products.
Bed Bath & Beyond Inc. believes in establishing and maintaining long-term relationships with suppliers whenever possible. If Bed Bath & Beyond Inc. determines that a supplier may be violating any of the foregoing expectations, Bed Bath & Beyond Inc. may require the supplier to commit to and implement a corrective action plan within a reasonable timeframe. Continued failure to adhere to these expectations and refusal to address issues of concern may lead to termination of Bed Bath & Beyond Inc.'s business relationship with the supplier. Nothing contained herein shall be interpreted to preclude Bed Bath & Beyond Inc. from terminating any supplier relationship at any time for any reason. Violations of the Conflict Minerals Policy can be reported to Bed Bath & Beyond Inc.’s Legal Department (Attention: General Counsel) at 908-688-0888 so that the matter may be fully investigated and, if necessary, appropriate remedial action taken.
V. Environmental Responsibilityback to top
The words of our Co-Chairmen and Chief Executive Officer in their letter to shareholders in advance of our Company’s 2006 Annual Meeting continue to guide our thinking regarding our Company’s environmental responsibility. They wrote, "The broader concerns over energy costs, our nation’s dependence on foreign oil, the rate of consumption and environmental impacts of fossil fuels, deforestation, and global warming, must be our concerns as well. Our response to these broad concerns is local…" Our Company continues its efforts to decrease its own energy consumption, as discussed more fully below, acting locally to address the areas we can feasibly address. We must also continue to pay attention to our waste stream and that of our products. As with all things we do, we know we can do better and we continue to find ways to improve, in a manner consistent with our obligations to all our constituencies.
A. In Our Facilities
Reusable Shopping Bags
The introduction of the Bed Bath & Beyond reusable shopping bag has been a success for both our customers looking for a shopping bag alternative, as well as the charities to which we have donated proceeds based on the sales of such bags. Our goals with this program have been the reduction of the distribution of single-use plastic bags, and support of programs benefitting coastal and other waterway habitats.
The special logo bags were originally piloted in approximately 80 stores in the fall of 2007. Once the initial bag test was proven a success, the program was rolled out to all stores during the spring of 2008.
Our current partner is the National Fish and Wildlife Foundation ("NFWF"), which receives one dollar from the purchase price of every logo bag sold through the program. Through February 28, 2015, the program has provided more than $760,000 to help support NFWF activities.
The contributions made by Bed Bath & Beyond and our customers will allow the groups supported by the NFWF to continue improving the environmental surroundings we all inhabit and enjoy.
We continue to evaluate other means of addressing issues related to single-use plastic bags, including the introduction of additional alternatives, testing certain messaging around the provision of bags to customers, and, in some areas, recycling. We believe plastic bag use is an area in which we have an ongoing opportunity to improve, and one in which we will continue to work with our customers to explore mutually beneficial ways to reduce their potential environmental impact.
Stretch Wrap Recycling
A component of waste frequently generated by our Company is stretch wrap. Stretch wrap is generally used during shipping to secure cartons of goods to pallets.
In late 2006, Bed Bath & Beyond began the first recycling program for stretch wrap. As of August 1, 2014, there are 738 Bed Bath & Beyond locations, 76 buybuy BABY locations, 54 Christmas Tree Shops, Christmas Tree Shop andThat! andThat! locations, 43 World Market, Cost Plus World Market, Cost Plus locations, and 8 Harmon, Harmon Face Values locations involved in the stretch wrap recycling program.
For the 12 month period August 1, 2013- July 31, 2014 we recycled 529 tons of stretch wrap. This is an increase of 20% in the amount of recycled stretch film from the previous year (August 1, 2012-July 31, 2013) total of 440 tons.
According to www.about.com, one ton of plastic saves 7.4 cubic yards of landfill space. By recycling stretch wrap in the programs noted above we saved 3,914 cubic yards of landfill space between August 1, 2013 and July 31, 2014.
The Company continues to look for additional opportunities to expand the stretch wrap recycling program.
Bed Bath & Beyond, Harmon and Harmon Face Values are purchasing used boxes to meet some of our internal shipping and storage needs. Harmon and Harmon Face Values began purchasing used boxes in 1995 and Bed Bath & Beyond followed thereafter. For the twelve month period August 1, 2013 – July 31, 2014, we have purchased 161,200 used boxes or 120 tons of used corrugated.
Using the Environmental Paper Network Paper Calculator (www.papercalculator.org), this is an annual reduction of 606,620 lbs. of CO2 emissions, which equates to removing 55 cars from the road each year. It is a reduction of 385 tons of wood, which equates to 2,490 trees saved. It also equates to 173,550 lbs., or 6 garbage trucks, of solid waste not generated.
We continue to look for opportunities to reuse corrugated boxes rather than purchase newly manufactured boxes.
As a Company, the single largest waste component we generate through operation of our stores is cardboard. Cardboard accounts for roughly 75% of all the waste the Company generates at store level. Ninety percent of our stores recycle their cardboard, with the remainder representing an opportunity for improvement. Our cardboard is sent to various recyclers and processors for eventual use in the production of new cardboard products.
Since 2001, we have chosen to recycle cardboard wherever we can. From August 1, 2013 – July 31, 2014, we recycled 58,435 tons of cardboard. This is an increase of 5% in the amount of recycled cardboard from the previous year (August 1, 2012 – July 31, 2013) total of 55,532 tons.
According to www.cardboardrecycling.org, for every ton of cardboard that is recycled, nine cubic yards of landfill space is saved. Further, according to the 100% Recycled Paperboard Alliance, fourteen trees are saved for every ton of recycled cardboard boxes used in the manufacturing of new cardboard boxes. Based on this information, we saved 818,090 trees and 525,915 cubic yards of landfill space from August 1, 2013 – July 31, 2014.
Since 2007, it has been a Company requirement that all beverage vending machines be Energy Star compliant or have an external Vending Miser installed. The external Vending Miser reduces energy consumption so that the machine’s energy use is comparable to an Energy Star compliant machine.
As of December 1, 2014, the Company has 466 Energy Star compliant machines and 673 machines with the Vending Miser installed. The Company works with a vending management company to assure this requirement is met for all new locations, as well as maintained for existing locations.
Using the energy savings calculator found on www.energystar.gov, the Company estimates that we are saving 1,901,200 kwh per year. This equates to an annual reduction of of 2,909,985 lbs of CO2 emissions. The website www.energystar.gov also equates this to removing 258 cars from the road and saving 281 acres of forest each year. These calculations are based on the number of machines listed above.
On May 10, 2010, the Company energized its first solar power system at its corporate headquarters located at 650 Liberty Avenue in Union, New Jersey, totaling approximately 1.2 megawatts. The system provides a way to defend against rising electricity rates for its over twenty-five years of expected service. Since then, and as of December 1, 2014, the Company has energized solar power systems in its other corporate headquarters located at 700 Liberty Avenue in Union, New Jersey, in six distribution centers located in Stockton, California, Middleboro, Massachusetts and Florence, Port Reading, Totowa, and Secaucus, New Jersey, and in twelve stores located throughout New Jersey, New York Massachusetts and California.
These solar power systems have helped avoid emissions in an aggregate total of 15.44 Megawatts or 21,095,475 Kilowatt hours. The figures of avoided emissions equivalency data were obtained from www.epa.gov using the EPA’s Green Power Equivalency Calculator. The following data demonstrate the expected positive impact of the aggregate of the solar power systems installed in the facilities described above, over a one year period:
Energy Savings from solar power systems installed by the Company (as of December 1, 2014)
- New Jersey - Total of 10.91 mwh
- Massachusetts - Total of 1.38 mwh
- New York - Total of 0.71 mwh
- California – Total of 2.44 mwh
Aggregate total of 15.44 mwh, which equates to 21,095,475 kwh.
Currently Installed Generation Will Avoid Greenhouse and Noxious Gas Emissions through the Reduction in Electrical Production (Greenhouse Gas Emissions based on EPA's Green Power Equivalency Calculator)
- 14,546 Tons Carbon Dioxide
- These Avoided Emissions are equivalent to;
- Annually removing 3,062 cars from the road; or
- Saving 1,636,819 gallons of gas each year; or
- Saving 33,829 barrels of oil each year; or
- Powering 2,001 homes each year.
For 2015, the Company anticipates solar system installations in eight additional stores located throughout New Jersey. The solar power systems in these new stores will help avoid additional emissions in an aggregate total of 2.07 Megawatts or 2,632,021 Kilowatt hours.
The Company continues to explore the feasibility of energizing more solar power systems in additional states throughout the United States. The Company's implementation of solar technology is one more step in our continuing efforts to improve energy efficiency, while at the same time providing very real environmental benefits.
The Company has taken significant measures to modify lighting throughout its stores, warehouses and offices in order to reduce energy usage. These measures have resulted in a classic "win-win" scenario: Good for our Company and great for the earth.
The Company’s facilities department teamed up with our lighting vendors to develop fixtures currently being installed in our stores that use High Efficiency Lumen Output ("HELO"). This technology provides the same or increased lighting levels in the stores and has a longer life and warranty period that results in fewer re-lamps and reduces lighting energy costs by approximately 34%. As of December 1, 2014, there are over 1,403 HELO lighting systems installed throughout the Company, which is comprised of installations in 187 new, and 834 retrofitted, Bed Bath & Beyond stores; 38 new, and 40 retrofitted, Christmas Tree Shops, Christmas Tree Shops andThat!, andThat! stores; 84 new, and 9 retrofitted, buybuy BABY stores; 13 new, and 34 retrofitted, Harmon and Harmon Face Values stores; and 11 new, and 153 retrofitted World Market, Cost Plus World Market, and Cost Plus stores. Please note the foregoing electric expense reduction numbers assume a constant rate per kilowatt hour for comparison purposes.
The table below demonstrates the accumulated reductions in Greenhouse Emissions that our Company has achieved as a result of the HELO retrofitted locations only, measured from the date of each individual installation through December 1, 2014, as compared to the twelve month period of use prior to each specific HELO installation (avoided emissions equivalency data obtained from both www.epa.gov and www.abraxasenergy.com and is based on New Jersey Efficiency Levels):
|Positive Environmental Impact of Bed Bath & Beyond Inc.’s Sustainability Installations|
|-||1,856,947,089 Kilowatt Hours|
|Greenhouse and Noxious Gas Emissions Avoided Yearly|
|-||1,437,320,840 lbs Carbon Dioxide|
|-||3,714,008 lbs Sulfur Dioxide|
|-||2,228,404 lbs Nitrogen Oxides|
|-||185,701 lbs Carbon Monoxide|
|-||185,701 lbs Particular Matter|
|-||17,084,434 lbs Mercury Compounds|
|-||50,881,901 lbs Lead Compounds|
|These Avoided Emissionsare are Equivalent to Any One of the following:|
|-||Annual greenhouse gas emissions from 124,616 passenger vehicles|
|-||CO2 emissions from 73,336,422 gallons of gasoline consumed|
|-||CO2 emissions from 1,516,374 barrels of oil consumed|
|-||Carbon sequestered annually by 138,701 acres of pine forest|
|-||Greenhouse gas emissions avoided by recycling 219,192 tons of waste instead of sending it to the landfill|
While the HELO lighting project has been extremely successful, the Company has not stopped there in implementing measures to reduce energy consumption. It has instituted many other lighting modifications throughout its stores that include reducing the number of lamps used in stockrooms, displays and corridors; dimming lighting fixtures; converting exterior lights from high energy to low energy usage by using new long life technology; implementing advanced control programming from the Novar energy management system (discussed in more detail below); testing light sensors that monitor the level of natural light available and dim the lights when sufficient daylight is available; significant reductions of lighting exterior building signs throughout the night; delaying the time customer lights are turned on throughout our stores; and requiring LED lighting that has a longer life span, produces less heat and uses significantly less energy than typical neon signs. Monitoring light levels in the stores has reduced energy consumption and the amount of energy required to cool the building, as lights give off heat. As of December 1, 2014, there are 9,852 specialty lighting fixture LED lamps installed by the Company, resulting in an annual reduction of 610,824 kwh. In addition, 3,233 conventional exterior security light fixtures have been converted to HELO lighting technology by the Company, resulting in an annual reduction of 908,473 kwh.
In late 2013 the Company started retrofitting parking lot lights. As of December 1, 2014, 532 conventional parking lot light fixtures have been converted to HELO lighting technology by the Company, resulting in an annual reduction of 149,492 kwh.
Over 88% of all our Bed Bath & Beyond locations and most new Christmas Tree Shops, Christmas Tree Shops andThat!, buybuy BABY, Harmon and Harmon Face Values locations are serviced by the most energy efficient Heating, Ventilating, Air Conditioning ("HVAC") equipment available for commercial buildings. Older stores receive the newer energy efficient equipment when their old HVAC equipment is replaced. In 2005, we became one of the first retailers to adopt the use of environment friendly HVAC equipment, which uses non-CFC refrigerant R410A.
As of December 1, 2014, 8,955 Lennox L series HVAC units are in operation out of the 10,638 total units in service for all concepts. In late 2012 the Company started installing Variable Frequency Drives ("VDF"). The VDF units reduce the speed of the fan in the HVAC units, while still providing comfort. As of December 1, 2014, VDF units have been installed in 758 stores across all concepts, resulting in a reduction of 19,304,655 kwh.
Energy Management Systems
Nearly every Bed Bath & Beyond, Christmas Tree Shops, Christmas Tree Shops andThat!, andThat!, buybuy BABY, World Market, Cost Plus World Market, Cost Plus and many Harmon and Harmon Face Values locations use the Novar energy management system to monitor and control energy use, lighting, heating, cooling, signs and even the amount of electricity that the stores use. As of December 1, 2014, the Company utilizes 1,396 energy management systems. Retrofitted stores experienced an average reduction of fifteen percent in their electrical consumption.
The new lighting and HVAC reduction and monitoring projects have provided, and will continue to provide, immense benefits for the environment. The following figures were provided by the State of New Jersey in recognizing the expected positive impact of the lighting and HVAC changes in a single Bed Bath & Beyond store, over one year:
Energy Savings in both lighting energy and HVAC reduction(less cooling required):
- 115,845.1 Kilowatt Hours
The Following Greenhouse and Noxious Gas Emissions Avoided Due to theReduction in Electrical Production(Greenhouse Gas Emissions based on New Jersey Efficiency Levels):
- 44.8 Tons Carbon Dioxide
- 243 lbs Sulfur Oxide
- 139 lbs Nitrogen Oxides
- 12 lbs Carbon Monoxide
- 12 lbs Particulate Matter
- 1,056 lbs Mercury Compounds
- 1.6 Tons Lead Compounds
These Avoided Emissions are equivalent to:
- Planting 19 trees every week; or
- Planting 12 acres of forest per year; or
- Saving 4,982 gallons of gas each year; or
- Annually removing 9 cars from the road; or
- Driving 310 fewer miles each day
While the operation of the Company does not result in substantial water usage, Bed Bath & Beyond Inc. is committed to water conservation where feasible. As a result, metered faucets are now used to save on water. In addition, the new .5 gallon/ flush urinals being used in most stores in the Company use half the amount of water of a regular urinal, which reduces water consumption. Total water savings of these combined efforts is 9,000 gallons a year.
White “Cool” Roof
Many stores have a white roof which reflects the sunlight, prevents the absorption of heat into a building and allows a savings in energy cost per year (estimated at $0.03 / sf) by reducing heat gain inside. Conventional black roofs absorb heat resulting in increased air conditioning costs. A single 30,000 square foot store saves $900 a year. As of December 1, 2014, the Company has 427 Johns Manville cool roofs.
Other Green Building Measures
The Company continuously looks for new ways to improve operations within the store and its impact on the environment, whether such measures have a significant impact like the HELO lighting project or only a minor impact. No measure is considered too insignificant if it makes sense for our Company to implement it. As a result, other measures that have been taken in our stores throughout the Company include use of sensor operated hand dryers, in lieu of paper towels that are more hygienic and conserve paper; vinyl flooring adhesive that gives off zero toxins to provide a healthier indoor environment for customers and associates; and reduction in the use of metal. Further, commencing as of March 2011, all wall bumpers installed by the Company in new stores are one hundred percent vinyl free and made of polycarbonate which is one hundred percent recyclable.
Bed Bath & Beyond relies on outside vendors for the majority of our product. We encourage our vendors to consider sustainable options in their shipping choices. There is mutual benefit when our vendors reduce waste in packaging and increase their usage of sustainable packaging materials.
Included in our Routing and Shipping guidelines is the following:
Bed Bath & Beyond is working to identify safe, more sustainable and cost-effective alternatives for our packaging. We need our vendors to consider using sustainable packaging as an option when presenting packaging concepts to our organization. Vendors should consider using paper that is FSC Certified or Recycled as a step towards helping the environment. In addition, vendors should look into using soy or vegetable based non-solvent inks for printing packaging. In connection with these efforts, we are working to reduce the use of PVC in packaging when applicable. We encourage our vendors to label their product and bags constructed with PVC-free material, such as PEVA or EVA when appropriate.
Balancing the amount of packaging needed for safe shipping of product with space efficiencies is key in waste reduction. If goods are damaged in transit, product waste is incurred. If overprotected, packaging is wasted. Maintaining the balance is our goal at Bed Bath & Beyond. One initiative to attain this goal is to optimize the number of units in each carton shipped to our stores. Ongoing efforts are in place to ship the most efficient number of units per carton, saving corrugated packaging. The related weight reduction translates into a reduction in fuel consumption as well. This ongoing "Freight Think/Case Pack Optimization" program expects to continue to find opportunities that will result in more "right-sized" packaging, resulting in more efficient use of corrugated packaging and, therefore, transportation.
Right Size the Packaging
Our goal is to place our product in a package that reduces the amount of air space in each package. Bed Bath & Beyond strives to be as efficient as possible in packaging, including reducing package cube size where possible and, in those cases, using less material, optimizing shipping containers, and reducing fuel costs.
Private Label Packaging
Packaging decisions are more directly under our control on our private label merchandise. Here we have ongoing efforts in place to reduce printed surfaces, to use less ink and to increase our use of PEVA bags, the preferred option versus vinyl.
Progress continues on increasing our use of alternative packaging materials in our textiles, or softside, categories. Some examples are:
- Simply Organic and Eucalyptus Origins private label textile products are packaged in PEVA bags
- All EVA shower liners are packaged in EVA packaging
- Bamboo bath furniture products (another private label brand) are packaged in craft-style boxes, using less printing, in turn reducing our ink usage
We continue to seek and identify ways we can increase our use of PEVA bags and other sustainable materials.
Hard Goods Packaging
As in our textiles areas, we continue to look for ways to improve the types of materials used in packaging our hardside goods. We use brown corrugate boxes with printed labels instead of printing on all surfaces on certain products. This reduces the use of ink, and we continue to look for opportunities to reduce our use of printed surfaces in other areas.
B. In Our Offices
Paper Best Practices
In 2008, Bed Bath & Beyond Inc. established and published a “Best Practice” document for reducing copy paper consumption. Some of the practices that were implemented include elimination of fax confirmation pages, a commitment to duplex printing, and an annual review of regularly generated documents.
These published practices not only impact the amount of paper used, but the amount of toner as well. Some other practices include limiting the use of shading, use of print preview to better format documents, and electronic review and filing of documents. Since 2008, all printers purchased for our corporate office and warehouse locations have duplex capability and are defaulted to duplex printing. As of 2010, all printers purchased for the stores throughout the Company are also duplex capable and default to duplex printing.
At present, the Company is still exploring ways to measure the actual amount of paper reduction achieved. The difficulties faced by the Company include the continuous increase in the number of stores, flux in the number of corporate associates, adjustments made due to economic conditions, and constantly changing work requirements.
Electronic Data Interchange ("EDI") is defined as the process of using computers to exchange business documents between companies. EDI is a more environmentally friendly process that minimizes paper use and storage requirements.
The Company implemented EDI as a preferred method of purchase order and invoice transmission for corporate purchasing expenditures beginning in November 2008. Prior to EDI, the Company printed hard copies and utilized fax machines to issue purchase orders to these suppliers. There are approximately fifty corporate purchasing suppliers participating in EDI. The Company has reduced fax transmissions by approximately 85,000 pages (17,000 purchase orders x average of 5 pages / order).
In addition, the Company uses a similar approach to receiving supplier invoices. Invoices are also transmitted via EDI reducing inbound standard mail by approximately 85,000 pages.
Since the implementation of EDI, the Company has discontinued the filing and storage of paper purchase orders and invoices for suppliers. Using the Environmental Paper Network Paper Calculator (www.papercalculator.org), eliminating 170,000 pages represents an annual reduction of 4,700 lbs of CO2 emissions.
Bed Bath & Beyond Inc. has been using remanufactured printer toner cartridges rather than newly produced cartridges for more than five years. For the twelve month period August 1, 2013—July 31, 2014, 85% or 16,935 cartridges used, were remanufactured. In addition to purchasing remanufactured cartridges, it is our policy to return used cartridges to our provider so that the material can be used again.
As a further attempt to reduce toner waste, the Company encourages its associates to reduce printer toner by changing the density setting from high to medium. This will reduce the consumption of toner in all stores and offices.
We continue to look for more opportunities to use remanufactured cartridges rather than purchase newly manufactured cartridges and look for other ways to reduce toner throughout the company.
Copier / Fax Machines
The U.S. Environmental Protection Agency and the U.S. Department of Energy have established the Energy Star program which is designed to prevent greenhouse gas emissions by having products that meet strict energy efficiency guidelines.
The company has been purchasing fax machines and copiers that are Energy Star rated since 2003. As of December 1, 2014, we have 725 Energy Star qualified copiers and 59 Energy Star qualified fax machines.
Using the energy savings calculator found on www.energystar.gov, Company estimates that we are saving 310,075 kwh per year. This equates to an annual reduction of 475,960 lbs of CO2 emissions. The above energy savings calculator also equates this to removing 61 cars from the road and saving 88 acres of forest each year. These calculations are based on the number of machines listed above.
The Company continuously looks for opportunities to reduce energy within its corporate offices. Some of the measures that continue to be taken are to enable the energy saver function on all monitors and PC's so they will power down after fifteen minutes of non-use, deploy flat panel displays that require less power in replacement of broken CRT's, purchase smaller form factor PC's that use less energy, utilize servers that require less power to run, acquire new green printers that require less power, place printers into sleep mode so they shut down after a period of time, and install multi-function printers in areas that had a copy, fax and printer previously, thus reducing power consumption. The Company is piloting many of these solutions for our stores as well.
C. In Our Community/Beyond Our Walls
Since May 2006, hybrid vehicles have been used by Bed Bath & Beyond. Currently, the Company fleet includes the Honda Civic Hybrid and the Ford Fusion Hybrid. As of December 1, 2014, we have 88 hybrid vehicles in our fleet, of which 54 are being used by Bed Bath & Beyond associates, 22 by Christmas Tree Shops, Christmas Tree Shops andThat! associates, 7 buybuy BABY associates, and 5 by Harmon and Harmon Face Values associates.
The 2014 Honda Civic Hybrid achieves 45 mpg. The 2014 Ford Fusion Hybrid achieves 42 mpg. By using the Civic Hybrid rather than the standard Civic, we are reducing our carbon emissions by 27%. By using the Fusion Hybrid rather than the standard Fusion, we are reducing our carbon emissions by 38%. Both calculations come from the Carbon Footprint Calculator on www.terrapass.com.
The EPA rates vehicles in two categories: smog and greenhouse gas. The results are scored on a scale of 1 (worst) to 10 (best). Both vehicles received a smog rating of 7.0. The Honda Civic Hybrid received a greenhouse gas rating of 10.0. The Ford Fusion Hybrid received a greenhouse gas rating of 9.0. Both vehicles earned the SmartWay recognition from the EPA. This goes to those vehicles that have a smog rating of 5 or higher and a greenhouse gas rating of 7 or higher.
The movement of goods is a prime example of an area of our enterprise where the benefits of seeking greater efficiency extend beyond the strict limits of the Company’s business. The Company has had success in finding ways to reduce expense and emissions in its supply chain, and this remains an area where opportunities for improvement still exist. This section will discuss some of those achievements and areas of further potential. The activities described below pertain both to Bed Bath & Beyond and buybuy BABY product supply chains, except for the SmartWay Partnership discussion, which information reflects all concepts. The terms "the Company" and "Bed Bath & Beyond" are used for convenience.
Pool and Consolidation
In 2004, the Company began a program called Pool and Consolidation. This program takes Less than Load and Parcel purchase order quantities shipping to individual retail points and groups them together by region to make fewer larger shipments to stores. By shipping through this new mode, Bed Bath & Beyond has reduced the number of individual carriers handling its products and delivering to its stores. As a result we have reduced the overall miles a package travels, as well as decreased the number of trucks handling our package volume. Overall Collect Managed Freight for inbound Bed Bath & Beyond merchandise volume has remained at 75% of these packages moving through this consolidation network. By the end of fiscal 2014, we expect to have a similar percentage of Bed Bath & Beyond merchandise flowing through pool points.
Since 2007, and each subsequent year thereafter the Company has moved an increasing percentage of its domestic transportation on intermodal transportation rather than traditional "Over the Road" trucking. In fiscal 2013, we moved 89% of our Truckload miles via intermodal service on the four main railroads. In this fiscal year, we are on pace to move an equivalent percentage of Truckload volume via rail. We estimate that will equate to 500 million lbs. taken off the interstate highways. We also estimate that we will reduce 64% of Carbon Footprint by using an intermodal rail solution instead of "Over the Road" trucking by reducing 2,346 million metric of CO2 equivalent emissions.
Partnering with railroads and intermodal service providers to move our domestic freight has enabled us to reduce transportation related emissions, reduce highway congestion and improve our visibility to Bed Bath & Beyond freight in transit.
SmartWay® was launched by the U.S. Environmental Protection Agency ("EPA") in 2004. It is a brand that identifies products and services that reduce transportation-related emissions. SmartWay symbolizes environmentally cleaner, more fuel efficient transportation options.
The Company became a SmartWay Partner in August 2009. This collaboration challenges us to improve the environmental performance of our freight operations and helps us to know what environmental impact we are having through the carriers we select and modes we transport goods to our stores. Based on the tonnage we ship today, over 73% is transported and handled by carriers who are SmartWay Carrier Partners. The use of the SmartWay Partner label requires that the carrier report certain base line equipment, emissions and fuel consumption data to set a baseline and then they must report an action plan and demonstrate progress to maintain a certain score levels. Our objective in this area is to continue to increase the percentage of Company freight moving with SmartWay Partners and to utilize this information as a factor in our decision-making when awarding contracts to service providers in transportation and warehousing. As a SmartWay Partner, we have committed to improving energy efficiency, reduce greenhouse gas emissions, and improve air quality.
Since 2004, SmartWay Partners have reported reducing CO2 emissions by 16.5 million metric tons (the equivalent of taking over 3 million cars off the road) and reducing oxides of nitrogen emissions by up to 235,000 tons. SmartWay Partners also report to have saved an equivalent of up to 50 million barrels of oil ($6.1 billion dollars in fuel costs saved) and eliminating 9,000 tons of particulate matter. (The emissions data is from the EPA SmartWay website, www.epa.gov/smartway).
Rules/Standards for Carriers
Carriers that choose to become SmartWay Partners commit to improving freight carrying operations. They agree to set and strive for attainment of environmental and fuel efficiency goals that improve the environment. SmartWay recommends simple actions to make ground freight more efficient and cleaner for the environment. Some of the strategies include: Idle Reduction, Improved Aerodynamics, Automatic Tire Inflation Systems, Wide-Base Tires, Driver Training, Low-Viscosity Lubricants, Weight Reduction, Intermodal Shipping, and Hybrid Powertrain Technology.
Benefits of SmartWay Partnership
Benefits of the SmartWay Partnership include:
- Access to information on how to reduce fuel consumption and emissions
- Assistance developing a quantifiable program to improve our environmental impact
- List of partner carriers
- Recognition for improving our environment
Most Bed Bath & Beyond carriers are SmartWay Partners and have joined the initiative to improve on their own fuel efficiency and other green initiatives. Bed Bath & Beyond will continue to improve its supply chain to target efficient modes of transportation and packaging to reduce the negative environmental impact its supply partners have.
Bed Bath & Beyond was one of the first businesses to partner with RecycleBank. RecycleBank partners with cities and municipalities to provide an incentive to those residents to take everyday green actions including recycling, by providing them with rewards.
Bed Bath & Beyond became a partner in 2005 and buybuy BABY in 2008. RecycleBank currently provides service to more than 4 million members in the United States and the United Kingdom. We continue to expand our participation in the program as they grow to new markets. We are proud of our partnership with RecycleBank and are excited to be a popular choice of the participants who are doing their part to recycle.
To receive a Bed Bath & Beyond or buybuy BABY reward, RecycleBank members earn points by recycling and taking green actions. They then use these points to order Bed Bath & Beyond coupons for approximately 100 points or buybuy BABY coupons for approximately 50 points. The result is a highly engaged customer who is helping the environment.
For more information on RecycleBank:www.recyclebank.com/about-us
VI. Awards and Recognition in 2014back to top
- Forbes Global 2000—The Company was ranked #827 of the top 2000 public companies in the world by Forbes magazine.
- Fortune 500—The Company was ranked #258 of the largest 500 US companies by Fortune Magazine.
- NRF Top 100 Retailers—The Company was ranked #36 of the top 100 retailers by NRF’s Store Magazine.
- Solar Energy Industries Association—The Company was ranked 11th in the top 20 list of commercial companies with total solar capacity installed.