Transportation & Facilities

LogoSmartWay

Transportation

For the fourth year, Tractor Supply has been recognized as a SmartWay High Performer, based on the sustainable performance of our shipping and freight operations. This program is focused on reducing our carbon footprint, improving freight efficiency in ways that reduce cost while benefiting the environment and strengthening our nation’s economic and energy security. Effective in 2022, it is a requirement that new carriers for Tractor Supply become SmartWay-certified. We are proud to say that in reporting year 2022, 100% of Tractor Supply’s carriers were SmartWay-certified. We also integrated the use of intermodal, or rail transportation, when appropriate, which has taken trucks off the road and reduced fuel use. Improving transportation efficiency is an ongoing focus for Tractor Supply. That’s why with the addition of the Navarre distribution center, we took advantage of the opportunity to realign delivery service to stores throughout the network. The realignment will improve service to stores, reduce stem miles and over-theroad emissions as well as save transportation costs. While our partnerships and systems have significantly reduced diesel fuel consumption and pollution, we will continue to implement new practices to reduce our environmental impact as we serve customers across the country

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facilities

Facilities

Over the last decade, Tractor Supply has implemented multiple projects that have transformed every TSC store into a sustainable outpost, making a significant impact on the environment and our company’s bottom line. Projects leading our energy innovation are:

  • Electric Forklifts in Tractor Supply stores. We started testing electric forklifts in Tractor Supply stores in 2021 to understand performance, operational efficiencies and potential limitations. The test began at one store in Tennessee, and the positive results led us to expand the test to ten additional Tractor Supply store locations. The additional stores selected are in states with weather extremes (heat and cold). We purposely chose those locations to evaluate how weather impacts performance.
  • Refrigerators and Coolers. Tractor Supply has replaced all legacy beverage coolers throughout stores with new energy-efficient coolers that use a refrigerant with a much lower Global Warming Potential (GWP1). New beverage coolers use R290, a refrigerant grade propane with a GWP of 3.3 versus R134, a HFC refrigerant with a GWP of 1,430. In addition, the entire cabinet structure is foamed-in-place using ecomate, a high density, polyurethane insulation that has zero ozone depletion potential (ODP) and zero global warming potential (GWP).
  • Renewable Energy. We prepared a carbon reduction roadmap in 2021 to support our greenhouse gas emission goals that include strategically pursuing multiple opportunities for renewable energy and energy efficient technologies. Our roadmap identifies the quantifiable benefit of emissions reduction by discrete projects across our building portfolio. This plan includes opportunities in daylight harvesting through skylights, improved energy consumption through efficient HVAC systems and the use of renewable energy through the use of photovoltaic solar panels. Tractor Supply has joined the Clean Energy Buyers Alliance (CEBA). We believe the benefits provided by this partnership will strengthen our commitment to renewable energy and the transition to a more sustainable energy future. Additionally in 2021, Tractor Supply became an EPA Green Power Partner to show our continued commitment to using green power.
  • Sustainable Operations and Buildings. Tractor Supply has constructed three major facilities that were awarded LEED® Silver Certification. These energy-efficient facilities include our Store Support Center in Brentwood, Tenn. (260,000 square feet), and our distribution centers in Casa Grande, Ariz. (650,000 square feet) and Frankfort, N.Y. (approximately 930,000 square feet). Our distribution center under construction in Navarre, Ohio, is planned as a LEED® Gold certified facility and is expected to begin operation in 2022. In addition, in 2021 we reviewed daylight harvesting skylights, coupled with dimmable lights and solar arrays, for potential changes to building plans. Daylight harvesting uses outside lighting to reduce the amount of electric lighting required to maintain a specific amount of light in a space. The number of light fixtures does not change, but when the sun is shining the light fixture uses a series of controls to dim, using less electricity.
  • In 2016, Tractor Supply launched the LED lighting retrofit project to convert all interior and exterior lights to LED. By 2018, over 1,440 Tractor Supply stores had converted to LED lighting, with all new stores being similarly outfitted. The LED program has been a win-win for the Company because it accomplishes our goal of positively impacting the environment while improving our bottom line.
  • In-store HVAC units have been converted to newer, more efficient models that have high SEER (seasonal energy efficiency ratio), reducing costs and electricity and gas consumption, as well as the need for repairs. Because of the Company’s plans to replace a large number of units, we implemented a phased roll-out, replacing the oldest and least efficient units first.
  • That win-win philosophy of benefitting both the environment and company’s bottom line also drives our energy purchasing program, which now includes a considerable amount of renewable energy in its portfolio. For years, purchasing renewable energy, such as solar, wind or biomass, didn’t make financial sense. But advances in technology have shifted that opportunity, allowing Tractor Supply to contract with suppliers in deregulated markets to ensure a certain percentage of renewable energy exists within the annual volume purchased by the Company.
  • Energy Management Systems (EMS) have been added to over 1,740 stores to control lighting, heating and cooling remotely to optimize energy usage and comfort.
Our Comprehensive Vendor Agreement

All prospective Tractor Supply vendors must review and sign a Vendor Agreement that requires them to follow specific laws and regulations. Our vendors can raise concerns anonymously through a confidential phone number or secured website.

Sourcing Responsibly in the Supply Chain

We recognize that we have a responsibility to ensure products we sell come from a supply chain that respects and adheres to principles aimed at promoting, protecting and supporting all internationally recognized human rights. Tractor Supply Company contracts with vendors to obtain private label products from a variety of countries across the globe. Factories from which we procure products and where we are the importer of record are subject to social and security audits that are conducted by an independent third-party on behalf of Tractor Supply. When needed, corrective actions are developed to address identified issues. While our primary approach to resolving corrective action issues is to improve conditions by working with vendors and others, we will exit a vendor relationship that repeatedly fails to meet our standards. These audits are based on global guidance for workplace conditions and are conducted using an approach in line with the reference tools developed by the Global Social Compliance Program. Auditors are professionally certified and undergo regular training to stay current with the latest standards and regulatory requirements.

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