Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Investment
• Employee Well-being
• Diversity and Inclusion

Environmental Achievements

• Not disclosed

Social Achievements

• Established a Disabled Veterans Leave policy providing 5% of estimated work hours within a 12-month period for veterans with a qualifying service-connected disability rating of 30% or more.
• White Glove Team resolved 1,713 customer issues.
• Opened 13 new Micro Markets, totaling 41 across the enterprise.
• Opened the enterprise’s first vending pet wash at NEX Guam.
• Partnered with Pearle Vision to bring national optical retail centers to three NEX locations.
• Expanded Natural & Organic dry grocery merchandise to 75 NEX locations (sales up 300% year-over-year).
• Launched retail brand partnership with Chico’s FAS.
• Implemented a new shoe divider program at multiple NEX locations.
• Renovated multiple NEX stores (Norfolk, North Island, Newport, Patuxent River, Key West).
• Signed a marketing contract with the Naval Academy Athletic Association.
• Increased email marketing engagement (14% increase in emails sent, 41% increase in opens, 20% increase in clicks).
• Celebrated the first anniversary of the NEX Birthday Card program.
• Created and launched a new e-gift card email for in-store redemption.
• Implemented heat-mapping tools on myNavyExchange.com to track customer behavior.
• Navy Lodge Program achieved a record high occupancy rate of 86.7%.
• Navy Lodges provided humanitarian support during weather events.
• Navy Lodge Program saved DoD and DoN travelers over $50 million.
• Completed resets on 550 guest rooms at multiple Navy Lodges.
• Created family suites at Navy Lodge Fort Worth.
• Redesigned Navy Lodge website.
• Launched NEXConnect brand for telecommunications.
• Launched Sapphire International mobile hotspot.
• Installed 16 new Mobile Center kiosks.
• Launched a new khaki and white uniform for female Chief Petty Officers and officers.
• Integrated Navy Uniforms on myNavyExchange.com.
• Supported NROTC/NJROTC programs with $8 million in sales.
• Supported ROTC New Student Indoctrination program with $1.5 million in uniform sales.
• Supported Sailor of the Year events.
• Provided support to over 5,400 Chief Petty Officer selectees.
• Re-established the Navy Protective Clothing Board.
• Developed a ‘Sales Limitation for Navy Uniform Items’ matrix.
• Rolled out Berry Amendment compliant athletic footwear.
• NEXCOM achieved an overall shrink rate of 0.24% (national average 1.38%).
• Pay Away the Layaway, Inc. paid off $27,277 worth of layaway balances for 154 military families.
• Established the Western Pacific District.
• Participated in New York City Fleet Week.
• Implemented a new process at NEX Great Lakes Distribution Center to better support Navy recruits.
• Installed automated lines in distribution centers.
• Revamped the NEX A-OK Student Reward Program (NEXTgen Scholars Program).
• Held Welcome Aboard Weekends at multiple locations.
• Held Customer Appreciation Weekends at NEX Pearl Harbor and NEX Guam.

Governance Achievements

• Established a Joint Buying Alliance with other military resale organizations.
• Hosted a private brand meeting with AAFES, MCCS, and CGX.
• Shared tools and insights with DeCA regarding the Foresee Customer Insights program.
• Submitted the final Supply Request Package to DLA regarding two new civilian medals.
• Developed a unique leather jacket for Surface Warfare Officers (SWO).

Climate Goals & Targets

Environmental Challenges

• Challenging sales performance in a competitive retail environment (overall sales decreased by 4.7%).
• Lower retail sales (-4.8%), lower gas sales (-5.7%), and a significant retirement expense ($34 million) impacted net income.
• Government-issued military uniform sales decreased by 19.5% due to the completion of the rollout of the Navy Working Uniform Type III.

Mitigation Strategies

• Strong expense controls mitigated reduced margin dollars, resulting in an operating profit of $13.4 million.
• Established a Joint Buying Alliance to provide greater savings for authorized patrons.
• Ongoing consolidation initiative related to NEX and a privatization initiative with Navy Lodge Programs (privatization efforts later rescinded).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Joint Buying Alliance with AAFES, MCCS, CGX, and DeCA

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Named one of the top 50 companies that provide the best career opportunities for Latinas in the U.S. by LATINA Style Magazine (since 2012)