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Green at AutoZone
  Where We’ve Been and
   Where We’re Going
WHERE WE’VE BEEN…


AutoZone produced our first Environmental
 Responsibility report in December 2008

   • Our Stores

   • Our Distribution Centers and Truck
     Maintenance Facilities

   • Our Transportation Fleet

   • Our Commercial Business Vehicles

                                            2
OUR STORES…
STORES SERVICED BY SAFETY-KLEEN IN 2010




                            Locations - SK Service Area
                            Locations – AutoZone Stores




                                                          3
SAFETY-KLEEN’S EAST CHICAGO, IN RE-REFINERY




                         Safety-Kleen Re-Refinery
                               East Chicago, IN




                                                    4
PROVIDING GREEN BENEFITS TO AUTOZONE

 By the end of 2010, Safety-     Equivalent to:
  Kleen will have collected        7,433,477 gallons of gasoline
  approximately 8.5 million         consumed
  gallons of used oil from         2,699,012 propane cylinders
  AutoZone                          used for home BBQs
                                   1,712,953 tree seedlings grown
 Total impact of Safety-Kleen      for 10 years
  closed-loop recycling of used    152,876 barrels of oil consumed
  oil for AutoZone
                                   12,644 passenger vehicles
    Prevention of 66,096          833 tanker trucks worth of
     metric tons of greenhouse      gasoline
     gas emissions



                                                                      5
OUR STORES…

   In 2010, AutoZone will have recycled
  approximately 8 million used lead-acid
       batteries through our 8 DCs.




                                           6
OUR STORES…




              13,000 tons
               of scrap
                 metal



                            7
OUR STORES & DCs…




                    8
In 2010, recycled approximately 22,000
           tons of cardboard.
   (Enough to SAVE 300,000 trees)




                                         9
OUR DCs…




           780 tons
           of stretch
              wrap

           885,000
            wood
            pallets




                        10
Our Transportation Fleet
AutoZone utilizes an Auxiliary Power Unit (APU)
  which provides heat, air and voltage inside the
  truck leading to an 80% reduction in idle-time
  gallons of fuel and related emissions




                                                    11
Utilize tractor and trailer air fairings resulting in a
  one-tenth and three-tenth mpg increase




                                                          12
Testing Super Single Tires on tractors – 4 vs. 8
  – resulting in a four-tenth mpg increase or 15%
  improvement




                                                    13
• Our fleet employs advanced mobile technology that
  enables real-time visibility and enhanced performance
  management of driver behavior
• Our fleet is managed via an advanced freight logistics
  tool designed to reduce operating miles and equipment




                                                           14
Packaging Initiative
• Collaborate with vendors in a focused area
• Main areas of review:
  – Excess packaging materials/printing
  – Box cutter-free designs
  – Pallet configurations
• Ultimate goal is to reach entire vendor base
• Participation and proposals from all vendors
  welcome…no need to wait for a workshop!
                                                 15
Packaging Initiative: Inner Pack
   Material / Wall Thickness




                                   16
Packaging Initiative
Perforation / Outer Carton Design
• Eliminate use of cutter blades
• More efficient put-away for DC AutoZoners
• Eliminate risk of damaging product with cutter blades




Best practice – perforated box. Product is easy to access


                                                            17
Packaging Initiative – Progress

• Over 40 vendors have participated in an
  AutoZone workshop
• Have implemented changes for cutter-free and
  reduced packaging materials with
  approximately 30% of those vendors
• Total annualized savings in
  paper/cardboard/plastic is 74,000 lbs to date


                                                  18
Additional Opportunities



 Is the label in the right location?
 Should there be two labels?            Outer-case graphics:
                                        consider for elimination

 Waste created from non-value-added packaging material




                                                                   19
CALIFORNIA TRANSPARENCY in
        SUPPLY CHAINS ACT of 2010
•   Beginning January 1, 2012, every retailer and manufacturer doing
    business in California and having more than $100MM in annual gross
    receipts must:
     – disclose its efforts to eradicate slavery and human trafficking from its
       supply chain
•   The disclosure must include the extent to which the company:
     – uses third party verification to evaluate and address human trafficking
       and slavery risks in its product supply chain
     – conducts independent unannounced audits of its suppliers
     – provides company employees and management training on mitigating
       risks of slavery and trafficking in supply chains
     – maintains internal accountability for employees and contractors failing to
       meet company standards on slavery and trafficking, and
The exclusive remedy for non-compliance is an injunction from the
                              CA AG
                                                                                    20
AUTOZONE ENVIRONMENTAL
RESPONSIBILTY REPORT December 2010




                                     21
NEXT STEPS
Working with AAIA to Tell the Aftermarket’s “Green” Story

• Increase awareness of the aftermarket’s green
  contributions among key audiences, i.e., state and
  federal legislators and government agencies, Wall Street
  and main street
• Utilize AutoZone template for total industry lobbying
  effort
• Examples based on AAIA member survey:
   – 95% (primarily repair shops and parts stores) recycle used oil
   – 98% recycle batteries
   – 58% of companies surveyed manufacture, distribute, use or sell
     re-manufactured parts
                                                                      22

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AutoZone Green - Environmental Responsibility

  • 1. Green at AutoZone Where We’ve Been and Where We’re Going
  • 2. WHERE WE’VE BEEN… AutoZone produced our first Environmental Responsibility report in December 2008 • Our Stores • Our Distribution Centers and Truck Maintenance Facilities • Our Transportation Fleet • Our Commercial Business Vehicles 2
  • 3. OUR STORES… STORES SERVICED BY SAFETY-KLEEN IN 2010 Locations - SK Service Area Locations – AutoZone Stores 3
  • 4. SAFETY-KLEEN’S EAST CHICAGO, IN RE-REFINERY Safety-Kleen Re-Refinery East Chicago, IN 4
  • 5. PROVIDING GREEN BENEFITS TO AUTOZONE  By the end of 2010, Safety- Equivalent to: Kleen will have collected  7,433,477 gallons of gasoline approximately 8.5 million consumed gallons of used oil from  2,699,012 propane cylinders AutoZone used for home BBQs  1,712,953 tree seedlings grown  Total impact of Safety-Kleen for 10 years closed-loop recycling of used  152,876 barrels of oil consumed oil for AutoZone  12,644 passenger vehicles  Prevention of 66,096  833 tanker trucks worth of metric tons of greenhouse gasoline gas emissions 5
  • 6. OUR STORES… In 2010, AutoZone will have recycled approximately 8 million used lead-acid batteries through our 8 DCs. 6
  • 7. OUR STORES… 13,000 tons of scrap metal 7
  • 8. OUR STORES & DCs… 8
  • 9. In 2010, recycled approximately 22,000 tons of cardboard. (Enough to SAVE 300,000 trees) 9
  • 10. OUR DCs… 780 tons of stretch wrap 885,000 wood pallets 10
  • 11. Our Transportation Fleet AutoZone utilizes an Auxiliary Power Unit (APU) which provides heat, air and voltage inside the truck leading to an 80% reduction in idle-time gallons of fuel and related emissions 11
  • 12. Utilize tractor and trailer air fairings resulting in a one-tenth and three-tenth mpg increase 12
  • 13. Testing Super Single Tires on tractors – 4 vs. 8 – resulting in a four-tenth mpg increase or 15% improvement 13
  • 14. • Our fleet employs advanced mobile technology that enables real-time visibility and enhanced performance management of driver behavior • Our fleet is managed via an advanced freight logistics tool designed to reduce operating miles and equipment 14
  • 15. Packaging Initiative • Collaborate with vendors in a focused area • Main areas of review: – Excess packaging materials/printing – Box cutter-free designs – Pallet configurations • Ultimate goal is to reach entire vendor base • Participation and proposals from all vendors welcome…no need to wait for a workshop! 15
  • 16. Packaging Initiative: Inner Pack Material / Wall Thickness 16
  • 17. Packaging Initiative Perforation / Outer Carton Design • Eliminate use of cutter blades • More efficient put-away for DC AutoZoners • Eliminate risk of damaging product with cutter blades Best practice – perforated box. Product is easy to access 17
  • 18. Packaging Initiative – Progress • Over 40 vendors have participated in an AutoZone workshop • Have implemented changes for cutter-free and reduced packaging materials with approximately 30% of those vendors • Total annualized savings in paper/cardboard/plastic is 74,000 lbs to date 18
  • 19. Additional Opportunities Is the label in the right location? Should there be two labels? Outer-case graphics: consider for elimination Waste created from non-value-added packaging material 19
  • 20. CALIFORNIA TRANSPARENCY in SUPPLY CHAINS ACT of 2010 • Beginning January 1, 2012, every retailer and manufacturer doing business in California and having more than $100MM in annual gross receipts must: – disclose its efforts to eradicate slavery and human trafficking from its supply chain • The disclosure must include the extent to which the company: – uses third party verification to evaluate and address human trafficking and slavery risks in its product supply chain – conducts independent unannounced audits of its suppliers – provides company employees and management training on mitigating risks of slavery and trafficking in supply chains – maintains internal accountability for employees and contractors failing to meet company standards on slavery and trafficking, and The exclusive remedy for non-compliance is an injunction from the CA AG 20
  • 22. NEXT STEPS Working with AAIA to Tell the Aftermarket’s “Green” Story • Increase awareness of the aftermarket’s green contributions among key audiences, i.e., state and federal legislators and government agencies, Wall Street and main street • Utilize AutoZone template for total industry lobbying effort • Examples based on AAIA member survey: – 95% (primarily repair shops and parts stores) recycle used oil – 98% recycle batteries – 58% of companies surveyed manufacture, distribute, use or sell re-manufactured parts 22