Climate Change Data

National Vision Holdings, Inc.

Climate Impact & Sustainability Data (2020, 2021-01-02 to 2022-01-01, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:39,200 tCO2e/year
Scope 1 Emissions:4,000 tCO2e/year
Scope 2 Emissions:35,200 tCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:78,700 MWh/year
Carbon Intensity:0.023 MT C02e/billion USD

ESG Focus Areas

  • Social
  • Employees
  • Environment
  • Governance

Environmental Achievements

  • Completed first GHG Inventory
  • Received “Leadership in Greener Purchasing” award from Office Depot
  • Updated environmental standards for retail facilities

Social Achievements

  • Donated > $2.3 million to strategic nonprofit partners to alleviate the global vision crisis
  • Provided > 1,900 vouchers to people in need of free eye care or eyewear through National Vision Cares program
  • Launched new DEI strategy and goals
  • Increased amount of paid parental leave for associates
  • Provided personal finance management resource to assist all associates with budgeting and short and long term savings goals

Governance Achievements

  • Established “SEE + G” framework and focus areas
  • Added oversight responsibility for environmental sustainability, social justice, and corporate responsibility included in the charter for the Nominating and Corporate Governance Committee
  • Stockholder approval of management proposals to declassify board and removal of supermajority voting provisions

Climate Goals & Targets

Short-term Goals:
  • Help 500,000 vulnerable people see better by 2023 (through partnership with Americares and RestoringVision)
  • Double philanthropic contributions and reach in two years

Environmental Challenges

  • COVID-19 pandemic impacted operations and associate well-being
  • Supply chain disruptions (implied)
Mitigation Strategies
  • Temporarily closed retail locations, shifted to remote work, implemented safety protocols, provided additional leave and financial support to associates and doctors
  • Developed safety manuals, provided PPE, implemented physical distancing, cleaning protocols etc.
  • Reduced compensation across the organization (temporarily)
  • Implemented temporary furloughs for some of the workforce

Supply Chain Management

Supplier Audits: Annual social compliance audits of key merchandising suppliers

Responsible Procurement
  • Supplier Code of Conduct
  • Social Compliance Audit Program
  • Conflict Minerals policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

UN Sustainable Development Goals

  • Goal 3
  • Goal 5
  • Goal 8

Initiatives contribute to improved health, gender equality, and economic growth.

Awards & Recognition

  • Leadership in Greener Purchasing award from Office Depot
  • Forbes’ Best Employers for Diversity
  • Forbes’ Best Employers for Women
  • Award from 50/50 Women on Boards

Reporting Period: 2021-01-02 to 2022-01-01

Environmental Metrics

Total Carbon Emissions:22,252 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:9,093 tCO2e/year
Scope 2 Emissions:22,252 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:0%
Total Energy Consumption:58,296,376 kWh/year (purchased electricity) + 938,086 GJ/year (fuels)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:4,373 metric tons CO2e per billion USD revenue

ESG Focus Areas

  • Product affordability and accessibility
  • Employee wellness, benefits and development
  • Employee diversity, equity and inclusion
  • Governance, ethics and compliance
  • Product impact and innovation
  • Product quality and safety
  • Data privacy and cybersecurity
  • Philanthropy and community giving
  • Socially responsible supply chain
  • Transparency and disclosure
  • GHG emissions and energy use
  • Resource use and waste

Environmental Achievements

  • Completed second greenhouse gas emissions inventory
  • Launched LED energy efficiency upgrade program
  • Reduced paper waste through electronic health records
  • Recycled more than 100,000 pounds of plastics from landfills (St. Cloud lab)

Social Achievements

  • Launched remote medicine program
  • Launched register donation program
  • National Vision Cares reached 10x more people than in 2020 (over 21,000 people)
  • 76% associate engagement score
  • Established values-based competency framework
  • CEO Reade Fahs signed CEO Action for Diversity & Inclusion Pledge™
  • Approved proposal to declassify board structure
  • Recognized by 50/50 Women on Boards

Governance Achievements

  • Enhanced disclosure on how ESG approach links to stakeholder impact and business success
  • Introduced a consistent structure for SEE+G sections of the report
  • Added new sections to Code of Conduct (Diversity, Equity and Inclusion; Information Privacy and Security)
  • Phased out classified Board structure

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Help 5 million people to see in the next 5 years through our philanthropic programs
  • Deliver inclusive leader training to 1,500 leaders by end of 2023
Short-term Goals:
  • Help 500,000 of the country’s most vulnerable to see better by 2023
  • Provide 30,000 vouchers per year for a free exam and glasses through National Vision Cares by the end of 2022
  • Double 20/20 Quest philanthropic giving and reach in terms of lives impacted by the end of 2022
  • Remote medicine enabled in up to 300 stores by end of 2022
  • >150 targeted store lighting upgrades in 2022

Environmental Challenges

  • Securing quality data from locations and partners across the country for GHG inventory
  • Managing waste from lens manufacturing (swarf)
  • Maintaining affordability of products and services while managing rising costs
  • Ensuring data security and privacy
Mitigation Strategies
  • Added an additional level of internal controls when compiling GHG inventory
  • Experimenting with swarf recycling and using briquetters
  • Implementing cost-saving measures such as energy-efficient lighting and HVAC systems
  • Providing additional data security training to associates and implementing robust security controls

Supply Chain Management

Supplier Audits: 14 third-party social compliance audits completed in 2021

Responsible Procurement
  • Supplier Code of Conduct
  • Security assessments
  • Privacy program requirements
  • On-site visits with potential suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Policy and legal risks, technology risks, market risks, reputational risks
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB, GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 8

Initiatives contribute to these goals through improved access to healthcare, gender equality, and sustainable economic growth

Sustainable Products & Innovation

  • Net plastic neutral contact lenses

Awards & Recognition

  • 50/50 Women on Boards
  • America’s Best Employers for Diversity (Forbes)
  • America’s Best Employers for Women (Forbes)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:23,156 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:8,566 tCO2e/year
Scope 2 Emissions:23,156 tCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:59,711,188 kWh/year
Carbon Intensity:15,818 metric tons CO2e per billion USD revenue

ESG Focus Areas

  • Societal Impact
  • Employees
  • Environment
  • Governance

Environmental Achievements

  • Completed 153 energy-efficient lighting upgrades in stores.
  • Completed third GHG emissions inventory.

Social Achievements

  • Provided more than 37,000 vouchers for free eye care or eyewear through National Vision Cares.
  • Associate engagement score of 74%.

Governance Achievements

  • Completed first TCFD-aligned review of business activities.
  • Six directors stood for re-election as part of Board declassification.
  • Updated Code of Conduct and Board governance documents.

Climate Goals & Targets

Medium-term Goals:
  • Help 5 million people to see by the end of 2025 through philanthropic programs
Short-term Goals:
  • Help 500,000 of the country’s most vulnerable to see better by 2023
  • Complete energy efficient lighting upgrade program in 2023
  • Enable remote care in 300 stores by end of 2022 (achieved)

Environmental Challenges

  • Challenging macroeconomic environment impacting budget-conscious customers.
  • Persistent pandemic-related supply chain disruptions leading to cost inflation and a challenging labor market.
Mitigation Strategies
  • Rollout of remote care and electronic health record capabilities to over 300 locations.
  • Opening of 80 new stores in 2022.
  • Investment in various digitalization efforts to improve customer offerings and create cost efficiencies.

Supply Chain Management

Supplier Audits: 14 supplier sites audited in 2022

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Policy and market shifts to a lower-carbon economy
Opportunities
  • Improving resource efficiency

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

UN Sustainable Development Goals

  • 3
  • 5
  • 8

See SDG Index on page 71

Sustainable Products & Innovation

  • Green Love frames (Eastman Acetate Renew)
  • Net plastic neutral contact lenses

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:29,428 tCO2e/year
Scope 1 Emissions:5,146 tCO2e/year
Scope 2 Emissions:24,052 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:0%
Total Energy Consumption:52,538,754 kWh/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:14,303 metric tons CO2e per billion USD revenue

ESG Focus Areas

  • Societal Impact
  • Employees
  • Environment
  • Governance

Environmental Achievements

  • Completed energy efficient lighting program in 389 locations
  • Installed automated systems at warehouse and lab facilities
  • Enabled electronic health records (EHR) at 232 locations

Social Achievements

  • Served over 8.5 million patients and customers
  • Helped over 1.4 million people see better through philanthropic initiatives
  • Provided more than 40,000 vouchers for free eye care or eyewear through National Vision Cares
  • Promoted over 1,900 associates
  • Donated over $4.1 million to strategic nonprofit partners

Governance Achievements

  • Reviewed and updated Board committee composition
  • Completed phase out of classified Board structure
  • Continued robust off-season stockholder engagement program
  • Mature enterprise risk management program

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Help 5 million people see by the end of 2025 through philanthropic programs

Environmental Challenges

  • Supply chain disruptions (implied)
  • Waste management in labs (44% diversion rate)
Mitigation Strategies
  • Improved data quality procedures for GHG emissions inventory
  • Waste audit at Lawrenceville lab to identify opportunities for improvement
  • Implementing improvements in waste handling processes to increase recycling rate
  • Implementing cost-saving measures throughout operations after Walmart partnership termination

Supply Chain Management

Supplier Audits: 14 third-party social compliance audits/year

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Improving resource efficiency

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 8

Initiatives contributing to health, gender equality, and economic growth

Sustainable Products & Innovation

  • SeeGreen Eco Lens Care Kits
  • Green Love frames collection
  • Net plastic neutral contact lenses

Awards & Recognition

  • Salus University Presidential Medal of Honor (Walt Fleming)
  • National Optometric Association’s 2023 Founder’s Award