7-Eleven, Inc.

Reducing Environmental Impact

7-Eleven, Inc. (SEI) is committed to doing its part to reduce the company’s impact on the environment. We recognize the importance of strategically investing in energy initiatives and sustainability programs that increase efficiency and reduce resource consumption and waste. In FY2020, the company continued to make progress by implementing sustainability measures that focus on energy conservation and efficiency and setting a new CO2 goal.

【Environmental Goal】

Reduce CO2 emissions from stores by 50% by 2030 (FY2013 baseline)

7 AFFORDABLE AND CLEAN ENERGY
13 CLIMATE ACTION

Collaboration with External Organizations

To enhance SEI’s role as positive stewards of the environment, the company is a member of the Retail Industry Leaders Association’s (RILA) Retail Sustainability Committee. The RILA Sustainability Committee is an industry-wide educational forum for the largest U.S. retailers. It brings its members together to share leading practices, identify future trends, benchmark with peers, and collaborate on common industry sustainability challenges.

Promoting Energy Conservation and Reducing CO2e Emissions

SEI is committed to reducing energy consumption and improving efficiency and set a goal to reduce CO2e emissions from stores by 50% by 2030, compared with FY2013 levels. In FY2020, through its energy efficient measures, SEI reduced its CO2e emissions by 60,088 MTCO2e year over year from FY2019 and by 240,647 MTCO2e from FY2013. SEI reduced CO2e emissions by 24 % from FY2013 to FY2020. This is equivalent to greenhouse gas emissions from approximately 52,336 passenger vehicles for one year.

Use of Low Global Warming Potential Refrigerant

SEI has adopted Honeywell Solstice N40 (R-448A) refrigerant as SEI’s standard for remote condensers supporting their refrigeration cases installed across the U.S. and Canada. Solstice N40 is the most widely accepted, lowest global warming potential (GWP), nonflammable replacement for R-404A in stores globally. Based on hydrofluoroolefin (HFO) technology, Solstice N40 offers GWP that is approximately 60% lower than legacy HFC refrigerants like R-404A. In addition, Solstice N40 also consumes less energy. In the U.S. and European supermarket trials, in comparison to R-404A, Solstice N40 demonstrated an average of 5% lower energy consumption in low-temperature applications.

LED Lighting

SEI's LED lighting program is part of the company’s energy-efficient store design standard and is a significant contributor to the company’s CO2 reduction goal. In FY2020, the company installed LED lighting in 463 stores. As of December 31, 2020, 7,465 stores feature LED lighting in the U.S. and Canada. Stores that changed from fluorescent to LED lighting can achieve an estimated annual energy saving effect of 38,756 kWh per store. In addition to their energy-efficient benefits, LED lights eliminate the use of hazardous materials, comply with local regulations to reduce light pollution, support store safety measures and enhance the customer shopping experience.

Heating Ventilation and Air Conditioning(HVAC)

Heating and cooling efficiency is another effective measure SEI implements to decrease its overall energy consumption. In FY2020, SEI installed 352 energy-efficient HVAC units contributing to its store energy saving efforts. Between FY2008 and FY2020, 10,352 HVAC units have been installed, enabling stores to achieve an estimated energy savings effect of 7,000 kWh per unit, per year.

Energy Management Systems(EMS)

SEI stores’ energy management systems (EMS) enable remote control of heating, ventilation and air conditioning (HVAC) and refrigerant equipment, which yield significant energy consumption. The systems monitor, control and optimize the performance of energy-consuming equipment, and generate real-time data to perform diagnostics and optimization routines to reduce energy consumption and manage costs. In FY2020, the company installed EMS in 307 stores. Currently, 6,831 stores have EMS installed, enabling stores to achieve an estimated energy savings effect of 16,323 kWh per store, per year.

Expanding Renewable Energy

While maintaining the company's commitment to energy conservation projects, SEI is also focused on expanding its renewable energy initiative. 14% of electricity consumed by SEI is from renewable sources.

SEI has an agreement with TXU Energy to purchase 100 percent Texas wind energy for all its Texas stores located in competitive energy markets. With more than 10,000 wind turbines in the state, Texas ranks first in the United States for both installed and under-construction wind capacity and is home to four of the top 10 largest wind farms in the nation. In FY2020, SEI purchased 291,531 MWh renewable energy from TXU Energy and provided it to more than 860 stores in Texas. This wind energy program reduced SEI’s carbon footprint by an estimated 14% while providing significant operating expense savings.

In FY2020 SEI also subscribed to a program to procure renewable energy for its Florida stores by utilizing large-sized solar power generation facilities developed, or currently under development, by two utility companies. (Florida Power and Light and Duke Energy) In SEI's plan, the amount of procured renewable energy can cover 90% of the total electric power needed in 652 stores once all solar sites are developed. Beginning in 2021, SEI will be able to procure about 88 GWh of renewable energy generated by solar panels, increasing to 175 GWh by 2024.

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Wind turbines in Texas
SolarPanelsFlorida.pngLarge-sized solar power generation facility in Florida

What is Community Solar?

Utility sponsored community solar is different from on-site solar where solar panels are installed directly on houses/buildings to generate power. It refers to local solar facilities developed and owned by the utility which are shared by multiple community subscribers who receive credit on their electricity bills for their share of the power produced.

Procuring Renewable Energy from a Pumped Hydro Storage Facility

In FY2020, SEI began procuring renewable energy from a pumped hydro storage facility for its stores in Virginia. The amount purchased was 23,836 MWh and powered the load for more than 140 stores.

Electric Vehicle Charging Stations

Electric vehicle fast chargers provide added convenience for electric-vehicle drivers and cleaner air for the surrounding community. In FY2020, SEI expanded its electric-vehicle (EV) charging station footprint in the United States that it owns and operates under the 7-Eleven brand by installing 13 fast-charging ports at four 7-Eleven California stores in Davis, Fresno, Tracy and West Sacramento. The ports can deliver up to an 80% charge in about 30 minutes.

SEI partnered with Pacific Gas & Electric (PG&E) and ChargePoint for the installations. Through its EV Fast Charge program, PG&E covers installation costs for the EV charging infrastructure, while the participant owns, operates and maintains the charging stations. The 7-Eleven site is a part of ChargePoint’s network of more than 40,000 EV charging locations in the United States and will be featured on the ChargePoint app, which enables EV drivers to locate their nearest station, get directions to the site and start the charging process from their smartphone.

7-Eleven began its EV program in FY2011. Between FY2011 and FY2020, SEI has installed a total of 27 EV chargers at 16 locations in California, Illinois, New York and Oregon.

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Electric-vehicle (EV) charging stations

Conserving a Natural Resource

SEI understands that efficient use of water helps reduce the demands on our water supply and preserve an essential natural resource. To reduce water consumption, SEI utilizes low-flow aerator faucets as part of our standard energy-efficient design plan for all new stores.

Environmental Data Associated with Store Operations
  FY2018 FY2019 FY2020
Number of stores within scope*1 9,389 9,149 9,387
GHG emissions*2 (market-based) (1,000 t-CO2e) 961 819 759
CO2 emissions*2,3(market-based) (1,000 t-CO2) 959 817 755
Electricity consumption*2(GWh) 2,383 2,306 2,306
Water usage*2(1,000 m3) 11,365 10,892 10,637
  1. *1Number of stores covered within scope of CO2 verification (excluding stores operated by domestic licensees of 7-Eleven, Inc.)
  2. *2Calculations are based on estimated electricity consumption for stores where data was not available.
  3. *3Verified by a third party

Eco-friendly Packaging

Packaging protects the quality and safety of products, provides information about ingredients, and adds convenience. 7-Eleven is working to reduce the environmental impact of proprietary packaging by using eco-friendly materials and reducing packaging materials.

12 RESPONSIBLE CONSUMPTION AND PRODUCTION
13 CLIMATE ACTION
14 LIFE BELOW WOTER
15 LIFE ON LAND
【Packaging Goal】

Shift to eco-friendly packaging for 50% of Private Brand products by 2030

Through its proprietary products, SEI seeks to offer premium products at a value while switching to environmentally-friendly packaging. SEI’s eco-friendly packaging solutions include using materials that are made from renewable or recycled content or are compostable or recyclable. Materials include post-consumer or post-industrial recycled or plant-based content. Whenever possible, the company reduces packaging without compromising product quality or safety.

FY2020 Key Initiatives

Using Plant-based Materials for Straws

To reduce plastic use and appeal to eco-conscious consumers, in FY2020 SEI continued use of its plant-based plastic, eco-friendly fountain straw for cold dispensed beverages.

SEI’s poly-lactic acid (PLA) straws are environmentally friendly, 100% compostable, and are the sustainable alternative to polypropylene plastic straws. The PLA material used to make the straws is made from corn and other related source materials and is certified compostable by the Biodegradable Products Institute (BPI). The straws are individually wrapped in paper, so the entire product is compostable and biodegradable. These fountain and Slurpee® drink straws meet state requirements for the replacement of plastic-polypropylene straws.

SEI is one of the largest and earliest retailers to transition completely PLA straws in the United States. In addition to providing an eco-friendly solution to plastic, PLA straws offer a better customer experience and a lower cost over paper straws. By switching to the PLA straw, SEI reduced 1 million lbs. of plastic straws per year. SEI is also assessing plant-based options to replace plastic stir sticks and utensils.

Poly-lactic acid (PLA) straws

Using Recycled Materials in Plastic Bags

After a successful test period in 2019, SEI’s new eco-friendly plastic bag made from 40% post-consumer recycled plastic was approved for national rollout in 2020. Using 40% recycled plastic content helps reduce the company’s environmental footprint by reducing the consumption of raw materials, energy consumption and carbon emissions in processing, and the amount of consumer waste and plastic going into landfills. By switching to the 40% recycled plastic bag, SEI eliminated 573 tons of virgin plastic in 2020.

A plastic bag using 40% recycled plastic

Increasing Post-Consumer Recycled Content

Furthering its efforts to use recycled material, in FY2020 SEI redesigned its fruit and salad containers to increase the use of Post-Consumer Recycled (PCR) plastic. Both packages now contain 15% PCR. Using PCR packaging materials reduces waste and carbon emissions as compared to using virgin plastics. SEI will continue to evaluate additional opportunities to increase PCR in packaging.

Eliminating Plastic

Seeking continuous improvements in packaging led to additional progress in eliminating or reducing plastic. SEI replaced its fresh food platter base with a lightweight paper corrugate alternative. In addition, the plastic lid for the platter was reduced in size.

Reducing Packaging Materials

In FY2020 SEI switched its hot dog box from kraft paperboard to thermo-mechanical pulp (TMP) board to reduce the volume of paper used. TMP-based paper can be produced using only 50% of the wood content of traditional kraft pulp paper.

TMP-based paper package

Removing Harmful Materials

Perfluoroalkyl and polyfluoroalkyl substances (PFAS) are fluorine coatings applied to packaging surfaces to prevent moisture or grease from leaking through and are now considered harmful to the environment. SEI proactively began replacing affected packaging with alternatives like molded fiber clamshells.

Sustainably-sourced Coffee

To provide high quality, environmentally-friendly products, in 2020 SEI continued to expand its sustainably-sourced coffee program by adding a new Rainforest Alliance™-Certified variety — Seven Reserve® Kenya. More than half of coffee beens are Rainforest alliance certified.

  • *The Rainforest Alliance is an international nonprofit organization that seeks to conserve biodiversity and ensure sustainable livelihoods. Carrying the Rainforest Alliance Certified seal with the little green frog means the 100% Arabica beans are sourced from coffee-growers whose farms must meet strict standards designed to protect the environment, conserve wildlife and promote the well-being of local communities.

Seven Reserve™ Kenya

Seven Reserve™ Kenya is a single-origin coffee cultivated on six independent family farms that have operated for generations in the foothills of Mount Kenya north of Nairobi. It is SEI’s eighth brew to carry the Rainforest Alliance Certified™ seal. 7 Eleven continues to grow its portfolio of sustainable coffees, which now account for as much as half of its green coffee purchases. Since 2016, 7 Eleven has introduced Rainforest Alliance Certified™ coffees from El Salvador, Nicaragua, Mexico, Peru, Sumatra, Colombia, as well as an African blend from Ethiopia and Rwanda, all responsibly grown. Single-origin 100 percent Colombian Rainforest Alliance Certified™ coffee is now a permanent offering and top-seller on the hot beverage bar.

Seven Reserve™ Kenya

Supporting Local Communities (U.S. & Canada)

As the premier leader in convenience, 7 Eleven is uniquely positioned to make a meaningful difference in the communities it serves. In 2020, SEI continued its mission to strengthen communities through signature outreach programs and by stepping up support during the COVID-19 pandemic with vital supplies and aid. From COVID-19 relief and disaster assistance to ongoing grassroots outreach, Team 7-Eleven and Franchisees worked with a variety of national and community organizations to provide support where it’s needed most, while also ensuring that 7-Eleven® stores continue to provide customers what they need when they need it.

4 QUALITY EDUCATION
11 SUSTAINABLE CITIES AND COMMUNITIES

Providing Vital Support, Supplies and Aid During COVID-19

During an unprecedented pandemic, 7-Eleven Donated more than 1 million masks to FEMA and donated 1.25 million masks and nearly 50,000 bottles of hand sanitizer to schools across Canada. In addition, to support frontline healthcare workers and patient families during the COVID-19 pandemic, 7‑Eleven opened its first-ever hospital pop-up store at Children’s Medical Center Dallas, the flagship hospital of Children’s Health℠. The store provided access to food and essential items for health care workers and patient families during the COVID-19 health crisis. The pop-up store features grocery and personal care products such as take-home dairy, paper towels, toilet paper, laundry detergent, and phone chargers as well as an assortment of fresh food options including salads, heat-and-eat entrees and take-and-heat pizza and wings. SEI also assisted 7-Eleven® stores near two other hospitals in the Children’s Health system, Children’s Medical Center Plano and Our Children’s House in Dallas, to have the products needed to serve health care workers at each of these locations.

Fighting Hunger

With the average number of food bank visitors up an estimated 60 percent in 2020 due to the COVID-19 pandemic, 7-Eleven doubled down on its commitment to hunger relief through a variety of grants, product donations and fundraising programs in partnership with Feeding America® and Food Banks of Canada®. Highlights include:

• Donated $100,000 to Feeding America in honor of 7-Eleven’s 93rd birthday on July 11*

• Contributed $1.2 million in 7-Select Go!Smart™ Organic Cold-Pressed Juices distributed to 21 food banks in 13 states

• Franchisees and store associates, 7-Eleven contributed an additional $1 million to Feeding America through a number of in-store campaigns in 2020. This donation will help provide at least 10 million meals for families in need across the country.*

• Distributed 500,000+ bags of 7-Select Loco Roller snacks valued at nearly $425,000 to member food banks.

• 7-Eleven Canada and its customers donated more than 350,000 meals in 2020 to Food Banks Canada.

*$1 helps provide at least 10 meals secured by Feeding America on behalf of local member food banks

Supporting Communities During Disaster Relief

Each year, the Red Cross responds to more than 60,000 disasters — including home fires, hurricanes, floods, earthquakes, tornadoes and wildfires. In 2020, SEI continued its support of the American Red Cross by renewing its annual membership in the American Red Cross Disaster Responder Program. SEI contributed $250,000 to help the Red Cross provide food, emergency shelter, relief supplies and comfort to people affected by disasters like hurricanes, tornadoes, wildfires and countless other crises. As a Disaster Responder Program member, SEI ’s year-round commitment in advance of disasters helped prepare communities for disasters big and small and ensure the Red Cross could mobilize and respond immediately following disasters throughout the year.

Developing Youth Through Education

The Project A-Game program is a community outreach program created to provide meaningful youth development opportunities through education and play, so children establish a strong foundation that supports their future success.

Franchisees and corporate store leaders contribute to youth development in their communities by applying for grants to support local schools, youth sports organizations, law enforcement agencies and community organizations. Grants, which are jointly funded by local franchisees and SEI, help provide critical funding for academic, fitness, safety or hunger relief programs for youth.

In FY2020, SEI and its franchisees gave more than $170,000 in grants to community organizations through Project A-Game, impacting 72,500 youth. Since its inception, SEI and its franchisees have awarded more than 4,850 grants, a community investment of $3.1 million. Grants have been used to underwrite initiatives including math and science projects, tutoring, school supplies and sporting equipment to ensure children have the resources and inspiration they need to stay in school.

Encouraging Positive Behavior

For a quarter-century, Operation Chill®, 7 Eleven, Inc.’s longest-running community service program, gives local law enforcement an opportunity to make a positive connection with kids through free Slurpee® drink coupons. Each year, SEI donates thousands of free Slurpee drink coupons to local law enforcement departments across the United States and Canada to reward children for observing safety rules, participating in positive activities, performing good deeds or acts of kindness. In addition to encouraging positive behaviors, Operation Chill provides opportunities for officers to establish a connection with kids in a neighborhood.

Each Operation Chill® coupon is good for a free small Slurpee® drink redeemable at 7-Eleven stores. During 2020, SEI issued over 1.5 million Slurpee drink coupons to more than 1,150 law enforcement agencies. Coupons were distributed during the summer months and back-to-school season. Since the program’s inception in 1995, Operation Chill has grown to include more than 1,100 local law enforcement agencies in the United States and Canada. Over 23 million coupons have been distributed to officers on the beat in cities and towns where SEI operates stores.

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Our Commitment to a Diversity and Inclusion

7-Eleven is an integral part of the diverse neighborhoods we serve. Our business model is based on the empowerment and success of small business entrepreneurs regardless of race, gender or background. To ensure an inclusive customer experience and workplace, we encourage Franchisees and team members to bring their unique perspectives, talents and contributions to work every day. We strive for equality and are committed to doing even more — because we know it’s the only way we can continue to grow and innovate, both as a brand and as a society. In 2020, we created our Equality & Diversity Task Force and Roundtable. This dedicated team of leaders representing different areas within 7-Eleven is actively engaged in identifying ways to promote fairness across the organization so we can make an even greater impact in the communities we serve.

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Initiatives of SEVEN-ELEVEN HAWAII, INC.