Climate Change Data

Environmental Metrics

ESG Focus Areas

• Pet Welfare & Humane Treatment
• Pet Health, Nutrition, & Wellbeing
• Employee Health, Safety, & Wellbeing
• Diversity, Equity, & Inclusion
• Sustainable Product Offering
• Responsible Packaging
• Climate Impact
• Responsible Sourcing & Supply Chain Practices
• Ethical Business Practices
• Strong Governance Structures

Environmental Achievements

• Reduced emissions intensity per dollar of sales for the fourth consecutive year.
• Eliminated approximately 66,000 pounds of plastic waste and nearly 8 million pounds of cardboard waste.
• Eliminated 6.5 million single-use plastic bags within our Owned Brand supply chain.
• Decreased energy intensity per dollar of sales for the fourth consecutive year.

Social Achievements

• Increased average hourly wage rates by double-digit percentages for partners with us since the beginning of the pandemic.
• Paid out bonuses over 200% in 2021.
• Invested nearly $12 million in benefits premiums and enhancements since the pandemic.
• More than 50% of director and above new hires and promotions were filled by women and people of color.
• Provided nearly $372,000 of funding to support 322 partners in 2021 through the Petco Partner Assistance Fund.
• 93% of DEI training participants felt they could apply the learnings.

Governance Achievements

• Updated Code of Business Conduct in January 2021.
• Formalized Human Rights Policy in 2021.
• Expanded data security measures.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions from Purchased Goods & Services and Upstream Transportation & Distribution are significant areas of impact.
• Need to further reduce injuries and incidents in Distribution Centers.
• Need to further reduce waste and the use of virgin materials throughout operations.

Mitigation Strategies

• Developing science-based targets for Scope 1, 2, and 3 emissions.
• Developing detailed plans to enable a Net-Zero commitment in 2023.
• Implementing a more comprehensive ESG data platform.
• Implementing Project C.A.R.E. to reduce bias in hiring.
• Implementing a data minimization program.

Supply Chain Management

Supplier Audits: Annual audits normally required; in 2021, prioritized higher-risk vendors for in-person audits and used self-assessments for lower-risk vendors due to COVID-19.

Responsible Procurement

• Vendor Code of Conduct
• Petco Vendor Certification and Standards of Excellence Program
• Sustainable product attribute requirements in vendor intake forms

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, GRI

Certifications: American Humane Certified Seal of Approval

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Reddy, Youly, So Phresh, Canidae Sustain, Hill’s, Jiminy’s

Awards & Recognition

• Pet Sustainability Coalition Earth Hero Award

Environmental Metrics

ESG Focus Areas

• Pet Welfare
• People
• Planet

Environmental Achievements

• Decreased energy intensity per unit of revenue by 4.3% in fiscal 2022 compared to fiscal 2021, and by 28.7% compared to fiscal 2018
• Eliminated more than 6 million single-use plastic polybags within our owned brand supply chain
• Produced approximately 780 MWh of electricity annually through solar panels for our national support center in San Diego
• Removed nearly 1,300 pounds of trash from entering our waterways through company-wide community cleanup events
• Printed 95% of our signage in Pet Care Centers on more sustainable materials

Social Achievements

• Increased representation of people of color among new hires to 42% and maintained a strong representation of women new hires at nearly 65%
• Increased every non-trainee employee’s base wage to at least $15 an hour
• Kept healthcare benefit premiums flat since 2020 and announced new investments in fertility care, adoption, medical travel, and mental health benefits
• Expanded our employee resource groups in partnership with our DEI team
• Maintained the Petco Partner Assistance Fund, which has provided over $2 million in financial support to nearly 2,000 Petco employees who suffered a hardship

Governance Achievements

• Became the first and only pet retailer in the world to be awarded the American Humane Certified™ Seal of Approval for our industry leading standards in animal welfare
• Updated all internal and external privacy policies and program documents to comply with new U.S. privacy laws
• Conduct annual online privacy training for all our employees

Climate Goals & Targets

Environmental Challenges

• Concerns about sustainability and climate issues might impact consumer preferences
• The unpredictability of long-term climate impacts through physical and transitional disruption to our business
• The potential costs of complying with new legislations and regulations

Mitigation Strategies

• Implementing the right framework and resource plan to ensure that targets we set ourselves and commitments we make are robust and achievable
• Transport and logistics efficiencies, including more efficient routing, opening a new distribution center, and making fewer e-commerce shipments
• Energy Management System to drive energy efficiencies at our Pet Care Centers

Supply Chain Management

Supplier Audits: 88% of audits were conducted in person in 2022

Responsible Procurement

• Vendor Code of Conduct
• Petco Vendor Certification and Standards of Excellence Program

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather
• rising temperatures
• heavy rainfall

Transition Risks

• regulatory changes
• market shifts

Reporting Standards

Frameworks Used: SASB, GRI

Certifications: American Humane Certified™

Sustainable Products & Innovation

• So Phresh brand using recycled, biobased, and durable materials and refillable packaging

Awards & Recognition

• Newsweek’s “America’s Most Responsible Companies 2023” (ranked 11th among retailers)
• S&P Global Corporate Sustainability Assessment (top 12% of North America retailers)