Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Established baseline data for greenhouse gas emissions in 2021.
• Deployed energy management systems in nearly 1400 facilities, resulting in $1 million/month in savings.
• Installed a 240-kW solar array in California and utilized wind energy in Texas.

Social Achievements

• Donated $2.5 million and raised an additional $1.4 million for the National Veterans Memorial and Museum.
• Introduced a year-round 10% discount for active military and veterans.
• Partnered with Nationwide Children's Hospital, raising over $26 million for pediatric behavioral health.
• Launched a Working Parents Network to support working parents.
• Donated $100,000 to the NAACP Legal Defense and Educational Fund.
• Provided resources and support for associates to engage in conversations around racial inequality.
• Offered 16 hours of paid volunteer time off per year to corporate, field, and distribution center leadership.

Governance Achievements

• Maintained a 90 score on the Human Rights Campaign for Corporate Equality Index.
• Actively recruiting a director from an underrepresented minority to the Board of Directors.
• Implemented a Code of Business Conduct and Ethics.
• Established a COVID-19 task force and sought guidance from an expert medical consultant to develop store safety protocols.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic requiring rapid business pivots to ensure customer service and associate safety.
• Racial injustice requiring a public stance and internal initiatives.
• Supply chain disruptions (implied).

Mitigation Strategies

• Established a COVID-19 task force, implemented safety protocols, expanded online grocery options, and offered curbside pickup and same-day delivery.
• Launched DEI initiatives, including guided conversations about race, inclusive leadership training, and allowing associates to wear Black Lives Matter attire.
• Conducted third-party audits on suppliers to enforce standards.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Third-party audits
• Sourcing 100% cage-free eggs by 2025
• OEKO-TEX® certified facilities

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Diversity, Equity, and Inclusion
• Community Investment
• Environmental, Social, and Governance (ESG)

Environmental Achievements

• Published inaugural corporate social responsibility report, "BIG Cares"

Social Achievements

• Established Diversity, Equity, and Inclusion Council (DEI Council)
• Implemented a five-part conscious inclusion program for associates
• Achieved an 82% favorable associate engagement rate
• Community investment through Big Lots Foundation and Nationwide Children’s Hospital partnership

Governance Achievements

• Ten of eleven current directors are independent
• Six of ten independent director nominees are women
• Annual election of all directors and Majority Voting Standard
• Annual board and committee self-evaluations
• Proxy access for shareholders
• Non-executive chair

Climate Goals & Targets

Environmental Challenges

• Ongoing COVID-19 pandemic and its impact on business
• Unprecedented global and domestic supply chain issues
• High inflation impacting costs and consumer spending
• Highly competitive domestic labor market leading to increased payroll expenses
• Shrinkage in stores

Mitigation Strategies

• Operation North Star transformative restructuring strategy
• Increased wages and implemented attendance and retention programs to improve distribution center productivity
• Opened two small-format forward distribution centers to improve supply chain efficiency
• Expanded shrink reduction programs, including cart locking systems and apparel tagging

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Diversity, Equity, and Inclusion
• Philanthropy
• Sustainability

Environmental Achievements

• Published second corporate social responsibility report, "BIG Cares"

Social Achievements

• Integrated conscious inclusion program into onboarding for all associates
• Big Lots Foundation donated approximately $25 million

Governance Achievements

• Eight of nine director nominees are independent
• Five of eight independent director nominees are women
• Annual election of all directors and Majority Voting Standard

Climate Goals & Targets

Environmental Challenges

• Extremely challenging consumer and macroeconomic environment
• High inflation impacting consumer spending
• Shortage of Broyhill® branded product in first half of 2023
• Increased competition in discount retail industry
• Competition in omnichannel retail marketplace

Mitigation Strategies

• Operation North Star: Five Points Forward strategy
• Project Springboard cost reduction and productivity initiative
• Increased Bargain penetration
• Improved marketing efforts
• Enhanced e-commerce shopping experience
• Restored Broyhill® supply chain

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Government regulations to limit greenhouse gas emissions