Rei Sustainability Case

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To: Council of Executive Vice Presidents Date: 1th of November, 2012 From: Anders Fædder
Subject: Evaluation of REI’s sustainability goals
I am writing in response to your inquiry regarding the plausibility of maintaining the continuous growth of the company as well as satisfying its sustainability goals. The following sections will address the three issues, mentioned by top management, by first describing them, then interpreting them and lastly they will be evaluated. Conclusion and recommendations will be based on this. REI focus greatly on the impact that their business has on the environment. They continuously work on finding new and innovative solution that will help reduce these negative effects. Their corporate mission emphasises this commitment: “At REI, we inspire, educate and outfit for a lifetime of outdoor adventure and stewardship” REI’s stewardship priorities:

* Encourage the active conservation of nature
* Inspire the responsible use and enjoyment of the outdoors * Enhance the natural world and our communities through responsible business practices * Foster opportunities to increase participation in human-powered outdoor recreation * Maintain REI as an employer of choice, where employees are highly engaged in the vision of the company and are representative of our communities The CEO, Kevin Hagen, also stated that these financial and environmental goals and aspiration must be met without sacrificing either. Hagen advocated shifting to a framework of “no tradeoffs” thus making a paradigm shift; Innovation over compromise. Issue 1

First issue is whether the company’s stated sustainability goals and aspirations are consistent with its corporate mission and its stated stewardship objectives that are listed above. REI sustainability goals focus on three areas; energy consumption, greenhouse gas emission (carbon footprint) and reduction of waster to landfills. The company plans to add water, toxics, land use and social impact to this list in near future. Each of these areas has an aspiration for 2020, a goal for 2015 and a budget for the current year. Energy consumption

REI has taken different initiatives to increase their energy efficiency by switching to new renewable power sources wherever possible. They mission is to keep their energy consumption at a fixed level despite opening new stores. One the ways they do this is by investing in self-generation options such as solar technology. Their ways of managing their energy use and increasing efficiency include: * Solar technology in many of our stores

* Lighting:
* Elimination of all incandescent bulbs from our retail stores * Installation of highly energy-efficient bulbs and fixtures * Greater reliance on skylights and natural lighting
* Heating & cooling (HVAC):
* Aggressive retrofitting and replacement of outdated HVAC equipment with sophisticated new models * Centralized monitoring
* Energy-saving techniques such as on-demand ventilation and airflow * Measurement of our stores' energy efficiency against similar buildings nationwide with the ENERGY STAR benchmarking tool Greenhouse gas emission (GHG)

The aspiration for 2020 concerning GHG was to be climate neutral. Their goal for 2015 was to cut GHG by 50 percent compared to 2010 emissions. The budget for each year was a specific target in tons of CO2 that was defined by the 2015 goal. REI looked at many aspects of their business in order to reach this goal. These were not limited by their own specific action within REI. They look beyond themselves and try to change the way their employees and suppliers act to. The list include: employee commuting and travel, travel by customers participating in REI Adventures programs from their homes to the site of program, transportation of products from vendors to the company and shipments to customers. However, they have not included customer transportation to and from the stores....
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