Stewards of Life Out Here: Creating a Sustainable Planet 2021 Sustainability Report

Creating a Sustainable Planet

Tractor Supply believes a sustainable planet begins with a healthy environment, properly managed resources and vibrant communities. Our journey began with a focus on understanding our impact on one of the most pressing issues of our lifetime—climate change. In recognizing climate change as an imperative, we announced aggressive greenhouse gas emission reduction goals that will challenge us well into the future as we pledge to become carbon neutral by 2040. Launching our next phase in this journey means taking a holistic view of sustainability, embedding it throughout the company as we seek ways to reduce our impact to the environment and involving the communities we serve in all decision-making. As an additional step in this journey, in 2021 we adopted an Environmental, Safety & Sustainability Policy that provides clarity and direction towards our path ahead.

TCFD Report

In 2021, we released our second Task Force on Climate-related Financial Disclosures (TCFD) report which discusses our approach to evaluating and managing climate change risks and opportunities and provides additional details on how we plan to achieve our new net zero emissions goals.

Environmental Management Program

Under the Environmental Management Program (EMP), Tractor Supply operations are evaluated for applicability to federal, state and local environmental laws every three years. If new or amended regulations are enacted or changes in operations occur, we perform a regulatory gap analysis to assess compliance program needs.

The EMP, which is based on the tenets of our Environmental, Safety & Sustainability Policy, is designed to reduce risk of non-compliance with environmental laws and regulation through the systematic review of regulatory requirements. Environmental risk is further reduced by implementing documented program procedures, training, inspections and periodic assessments for compliance. Environmental compliance requirements and identified risks are communicated to leadership at the distribution centers and to the Vice President of Compliance, who reports to the General Counsel of Tractor Supply.

Energy and Greenhouse Gas Emissions

Goals Achieved

In 2018, we set a goal to reduce greenhouse gas emissions by 25% by 2025 on a per square foot basis. This goal was relevant for our stores, distribution centers, and office buildings (Scope 1 and 2 emissions) using 2015 as our baseline year.

A year later, in 2019, Tractor set a renewable energy goal to purchase 80,000,000 kWh of renewable energy by 2022. This was achieved by purchasing either Renewable Energy Credits or Green Tariffs, where available. We achieved both goals ahead of schedule with a 35% Scope 1 and 2 emissions reduction achieved in 2021 compared to our 2015 base year.

New Net Zero Emissions Goals

In 2021 we announced new, more ambitious, 2040 net zero emissions targets and interim 2025 and 2030 targets to demonstrate our commitment to helping address climate change.

Achieve Net Zero Emissions across all operations by 2040

In this next phase of our sustainability journey, we will increase efforts to procure renewable energy and continue investments in energy efficiency and cleaner technologies. To avoid future emissions, we will incorporate better design in both stores and distribution centers. We will also enhance our Scope 3 focus with greater transparency and reduction efforts. This includes new vendor engagement that will allow us to replace modeled Scope 3 data with actual supplier energy intensity data while identifying interventions to drive down value chain emissions. This precursory work is foundational for us to design and submit a science-based target for review in 2022.

Renewable Energy

We prepared a carbon reduction roadmap in 2021 to support our greenhouse gas emission goals that include strategically pursuing multiple opportunities for renewable energy and energy efficient technologies. Our roadmap identifies the quantifiable benefit of emissions reduction by discrete projects across our building portfolio. This plan includes opportunities in daylight harvesting through skylights, improved energy consumption through efficient HVAC systems and the use of renewable energy through the use of photovoltaic solar panels.

Tractor Supply has joined the Clean Energy Buyers Alliance (CEBA). We believe the benefits provided by this partnership will strengthen our commitment to renewable energy and the transition to a more sustainable energy future. Additionally in 2021, Tractor Supply became an EPA Green Power Partner to show our continued commitment to using green power.

Sustainable Operations and Buildings

In 2021 we reviewed daylight harvesting skylights, coupled with dimmable lights and solar arrays, for potential changes to building plans. Daylight harvesting uses outside lighting to reduce the amount of electric lighting required to maintain a specific amount of light in a space. The number of light fixtures does not change, but when the sun is shining the light fixture uses a series of controls to dim, using less electricity.

Refrigerators and Coolers

Tractor Supply has replaced all legacy beverage coolers throughout stores with new energy-efficient coolers that use a refrigerant with a much lower Global Warming Potential (GWP1). New beverage coolers use R290, a refrigerant grade propane with a GWP of 3.3 versus R134, a HFC refrigerant with a GWP of 1,430. In addition, the entire cabinet structure is foamed-in-place using ecomate, a high density, polyurethane insulation that has zero ozone depletion potential (ODP) and zero global warming potential (GWP).

Tractor Supply has constructed three major facilities that were awarded LEED® Silver Certification. These energy-efficient facilities include our Store Support Center in Brentwood, Tenn. (260,000 square feet), and our distribution centers in Casa Grande, Ariz. (650,000 square feet) and Frankfort, N.Y. (approximately 930,000 square feet). Our distribution center under construction in Navarre, Ohio, is planned as a LEED® Gold certified facility and is expected to begin operation in 2022.

U.S. Green Building Council

Tractor Supply has constructed three major facilities that were awarded LEED® Silver Certification. These energy-efficient facilities include our Store Support Center in Brentwood, Tenn. (260,000 square feet), and our distribution centers in Casa Grande, Ariz. (650,000 square feet) and Frankfort, N.Y. (approximately 930,000 square feet). Our distribution center under construction in Navarre, Ohio, is planned as a LEED® Gold certified facility and is expected to begin operation in 2022

A Smarter Way to Ship

By prioritizing product supply close to Tractor Supply Distribution Centers and stores and maximizing every truckload, we have eliminated over six million shipping miles from the road over the last 24 months.

Since 2013, Tractor Supply has been a SmartWay Transport partner. SmartWay Transport is a public-private initiative between the U.S. Environmental Protection Agency, large and small trucking companies, rail carriers, logistics companies, commercial manufacturers, retailers and other federal and state agencies. Its purpose: to improve fuel efficiency and the environmental performance – reduction of both greenhouse gas emissions and air pollution – of supply chains.

During negotiations with carriers, the SmartWay relationship is discussed in depth and is a crucial factor when considering onboarding a carrier. We are proud to say that in reporting year 2021, 100% of Tractor Supply’s carriers were SmartWay carriers, compared to an average of 97% among our peers. Effective in 2022, it is a requirement that new carriers for Tractor Supply become SmartWay certified.

As a SmartWay partner, we have a direct link to other organizations and can manage our business by using those carriers. We also integrated the use of intermodal, or rail transportation, when appropriate, which has taken trucks off the road and reduced fuel use. Since 2018, Tractor Supply has been recognized as a SmartWay High Performer, based on the sustainable performance of our shipping and freight operations.

Improving transportation efficiency is an ongoing focus for Tractor Supply. While our partnerships and systems have significantly reduced diesel fuel consumption and pollution, we will continue to implement new practices to reduce our environmental impact as we serve customers across the country.

View the full 2021 Sustainability Report here.

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