Energy Use at REI

Overview & Strategy

Energy use is one of the largest contributors to REI's climate impact. By actively managing our energy consumption and expenses, we gain insight into fundamental risks and opportunities, and minimize our exposure to financial and business continuity risks.

We're committed to increasing our energy efficiency and switching to new renewable power sources wherever possible. We also invest in self-generation options such as solar technology.

Managing Our Energy Use

Here are a few of the ways we're managing our energy use and increasing our efficiency:

Solar Technology

By the end of this year, we will have 26 REI locations equipped with solar technology. We first installed solar panels on 11 REI stores in 2008 and increased our investment to 12 additional stores and our distribution center in Bedford, Penn. in 2011. With solar rooftop panels in place, a store can generate 10-100% of its own electricity. This investment makes great sense for REI because it reduces greenhouse gas emissions, reduces operating costs and mitigates our exposure to the volatile energy markets.

Lighting

We have eliminated incandescent bulbs from our retail stores and replaced them with more efficient and longer-lasting lights. Most of our stores are built with skylights that offer natural illumination. Occupancy sensors and a centralized energy management system also help minimize the amount of time each day that our lights are in use.

Heating & Cooling (HVAC)

We're in the process of retrofitting the HVAC system in our stores and are on track to eliminate units that use Freon (R22), a substance harmful to the ozone, by 2020. We are replacing outdated units with safer, more efficient equipment. The new HVAC units are all connected to a sophisticated energy management system that optimizes their use.

These energy-smart HVAC investments offer another advantage: They improve the comfort and indoor air quality of our stores.

Green Power

We continue our commitment to green power by purchasing energy generated from renewable resources such as wind and solar wherever possible.

There are two conditions that govern our choice of green power sources:

1. The source must be new renewable energy generation qualifying under the most recent Green-e certification requirements.
2. The product must offer a financial hedge against future energy price escalation, particularly risks associated with fossil fuel costs.