Canadian Tire Releases Business Sustainability Results for First Quarter of 2012
- Large scale road-to-rail conversion helps drive another record setting quarter
- Program with utility providers helps customers save $500,000 on annual utility bills
TORONTO, May 10, 2012 /CNW/ - Canadian Tire Corporation, Limited (CTC, CTC.a) today released the results of its business sustainability strategy for the first quarter of 2012. Most notable in Q1 is that forecasted greenhouse gas (GHG) emission avoidance is up ten-fold primarily due to the large-scale road-to-rail conversion that the Company undertook in connection with transportation. Additionally, Canadian Tire's business sustainability strategy began reporting incremental new business, as in-store events designed with utility groups across the country drove $2 million in retail sales of energy-saving products.
"We're pleased with the early results from 2012 and will continue to integrate sustainability into our plans and processes," said Tyler Elm, Vice President, Corporate Strategy and Business Sustainability, Canadian Tire Corporation. "We're seeing positive financial results because of our efforts to avoid operational costs, increase transportation efficiency and incent customers to walk into our stores to purchase energy-saving products."
The Canadian Tire transportation team completed its road-to-rail conversion work for deliveries into Eastern Canada, leveraging and better utilizing its relationship with Canadian National Railway (CN). More efficient from both an operational and environmental perspective, the result is a change to the mix of Eastern Canada shipments from 75% road and 25% rail, to 20% road and 80% rail. These efforts are forecasted to annually avoid significant costs, more than 6,600 tonnes of GHG emissions, and are the equivalent to taking over 1,500 cars off the road.
A key part of Canadian Tire's business sustainability strategy involves working with external stakeholder groups and both the Company and its customers are seeing the benefits of these strong relationships with partners.
For the first time, in addition to cost avoidance, Canadian Tire is reporting sales from a business sustainability initiative developed in partnership with BC Hydro, SaskPower, Ontario Power Authority, and Nova Scotia Power. This initiative, completed in 2011, generated more than $2 million in incremental retail sales from in-store events at 288 Canadian Tire locations. Through the use of targeted couponing, the in-store events encouraged consumers to use energy-efficient products such as ceiling fans, thermostats, dimmer switches, timers and light bulbs. The increased use of energy-saving products sold at these events are forecasted to help customers annually avoid more than half a million dollars on their utility bills and more than 1,000 tonnes of GHG emissions.
Constantly innovating to ensure enhanced customer and environmental outcomes, the Company saw a more than 60% increase in the number of sustainability initiatives completed in Q1 and an over 30% increase in cost avoidance over the same period last year.
The ongoing integration of sustainable practices into its business operations resulted in the completion of 132 initiatives in the first quarter. These initiatives are forecasted to annually avoid over $715,000 in costs, 390 tonnes of waste, and 8,600 tonnes of GHG emissions. The results are the equivalent to the energy use and GHG emissions created from powering more than 1,100 Canadian homes.
An integral part of Canadian Tire's corporate innovation strategy, the Company's business sustainability efforts centre around three key areas - products and packaging, the transportation of products to distribution centres and stores, and buildings and operations. Some additional key initiatives completed this quarter and recognition highlights are listed below.
- This quarter, Canadian Tire contributed over $3.8 million to community blue box and industry product stewardship and recycling programs.
- Heating, ventilation and air-conditioning (HVAC) upgrades were made to the shipping docks at Canadian Tire's A.J. Billes distribution centre in Brampton, Ontario. The three new HVAC units are forecasted to use 70% less energy, annually avoid more than 560 tonnes of GHG emissions, and $105,000 in operating costs.
- Considered to be the most high-profile national awards series of its kind, Canadian Tire's business sustainability strategy and performance were recognized with the GLOBE Award for Best Green Retailing Practices. The Green Retailing Practices Award is presented to a company that has demonstrated excellence in executing end-to-end sustainable practices and has made measurable environmental performance improvements to its retail operations.
- Canadian Tire's Bowmanville, Ontario, store was awarded the 2012 Sustainability Design Award for "Outstanding Merit" from the Association of Retail Environments. The store is 75% more energy-efficient than the prior prototypical store design and is probably the most energy-efficient retail store in North America.
Initiatives completed this quarter are forecasted to annually provide the following benefits. Please refer to Management's Discussion and Analysis online for further details and information on the chart below.
|(A)||Cost avoidance ($)||417,600||46,700||251,300||715,600|
|(B)||Energy use avoidance (gigajoules)||18,300||98,600||9,000||125,900|
|(C)||GHG emissions avoidance (tonnes CO2e)||1,300||6,800||600||8,700|
|Equivalent number of Canadian homes
|(D)||Waste avoidance (tonnes)||390||N/A||3||393|
|Equivalent household waste from this
many Canadian homes (annually)
For further details, refer to http://corp.canadiantire.ca/EN/MAD/BusinessSustainability/Pages/OurProgressReports.aspx
About Canadian Tire
Canadian Tire Corporation, Limited (TSX: CTC, CTC.a) is one of Canada's most-shopped general retailers and the country's largest sporting goods retailer, with more than 1,700 retail and gasoline outlets from coast-to-coast. Our primary retail business categories - Automotive, Living, Fixing, Playing, Sports and Apparel - are supported and strengthened by our Financial Services division, which offers such products and services as Canadian Tire Home Services, credit cards, retail deposits, in-store financing, product warranties, and insurance. Nearly 68,000 people are employed across the Canadian Tire enterprise, which was founded in 1922 and remains one of Canada's most recognized and trusted brands.
Sarah Van Lange