Sustainability Target Corporation

Matt Shaver, Iris Cao, Adam Pemberton, Yearin Lee, Alex Allen

Agenda

● Overview of Target Sustainability

● Personal Care/Beauty Category ● Areas of Improvement

o Signing/Promotion o Reduce Waste

o Reduce Water Usage

● Questions

Consumers and Sustainability

What percent of consumers…?● 72% : want to learn more about corporate sustainability initiatives

● 75% : would be more likely to buy a product/service if the company is

making an effort to be sustainable

● 93% : have done something to conserve energy in the last two years

● 43% : feel misinformed about sustainability issues

source: SolarCity

Target Sustainability (Current)

● In-store Recycling Program o Recycling kiosks meant to separate different products

● Sustainable Apparel Coalition o Higg Index: measure environmental and social performance of apparel

products

● How2Recycle Program o Labeling system: give consumers a clear understanding of how to recycle

products

● Quality Assessments with vendors at various stages of production

Agenda

● Overview of Target Sustainability

● Personal Care/Beauty Category ● Areas of Improvement

o Signing/Promotion o Reduce Waste

o Reduce Water Usage

● Questions

Personal Care/Beauty Category

Personal Care● Body wash & soap● Deodorant● Eye Care● Feminine Products● Men’s Grooming● Oral Care● Foot Care

Beauty● Bath & Body● Fragrances● Hair Care● Makeup● Skin Care● Spa & Massage

Personal Care/Beauty Category

★ Made to Matter - Handpicked by Target○ 16 natural, organic, sustainable brands○ Method, SheaMoisture, Yes To○ Accessible new products

★ The Honest Company products○ non-toxic, eco-friendly products ○ broad range of products

from diapers to organic skin care

Agenda

● Overview of Target Sustainability

● Personal Care/Beauty Category ● Areas of Improvement

o Signing/Promotion o Reduce Waste

o Reduce Water Usage

● Questions

Signing

● Digital Signage (Restaurants, Education, Retailers)o Reduce printing costo Less set up

● Engages and informs customers● Provide hybrid shopping experience ● Direct customers to environmentally

friendly products

Promotion

● Provide goals on digital signingo Partner in advertising o Promote your Plan (Mark & Spencer)

● Informing customers and staffo Builds brand awareness o Spotlight “Green product of the day”

● Under speciality tab online include “Green Products tab”● Walmart digital signage case study

o Sales increasedo Health Department 28%, Over the Counter 23%

Reduce Waste

Current Effort:● U.S. Target Waste Allocation:

o Recycle: 58.6%o Landfill: 31%o Reuse: 10.4%

● 2015 Goal: o Reduce operating waste sent to landfills by 15 percent

Reduce WasteAreas of Improvement

Consumers: Education & Action

Reduce WasteIntroducing the “Sustainability” Feature

Education:● Importance

o why choose sustainable products● Promotions

o Target has those productso what products are sustainable

Incentives of Recycling:● #RE2Save: recycle → points → store credits → more business

o financial rewards (49%)

● Regional Competitiono personal influences (1 in 4 consumers)

Reduce Water Usage

Goal: Reduce water usage by 10% per square foot by 2015

Current Tactics● 3.4B gallons used in 2013● Increased landscaping = increased irrigation● Smart irrigation controllers based on the weather● Optimize current irrigation systems● Retrofit store water systems with efficient components

o Reduce water by 31M gallons/year● Results in cost savings

Reduce Water Usage

Goal: Reduce water usage by 10% per square foot by 2015

Future Tactics● Low-flow sinks● Waterless urinals● Recycle backwash water (filters)● Rain and condensation harvesting● Data systems to identify leaks● Use natural landscape at stores

Reduce Water Usage

Goal: Reduce water usage by 10% per square foot by 2015

Future Tactics - Personal Care / Beauty● Worst: Shampoo/soap, lotion, anti-perspirants● Minimize plastic usage

o Drilling for plastic oil requires substantial watero Recycle scrap plastic to make packaging

● Reduce water content in hair productso Decreases quality, formulate low-water mixes

● Cosmetic product recycling programs and campaignso All-natural, mineral-based products

Thank You!

Questions?