Kohl’s Corp. is surpassing several of its goals on climate action, sustainable sourcing, recycling and reducing waste, according to the retailer’s latest ESG report issued Thursday, ahead of Earth Day on Friday.
Kohl’s said it has reduced greenhouse gas emissions by 50 percent from a 2014 baseline and reduced energy consumption by 39 percent since 2008, four years ahead of schedule.
The retailer also said it has diverted 86.5 percent of its waste from landfills, surpassing its 2025 goal of 85 percent; reduced energy consumption by 29 percent since 2008, just shy of the 2025 goal of 30 percent, and has added 45 electric vehicle charging locations in 2021, bringing its total to 146, and nearly tripling its charging sessions from 36,000 in 2020 to more than 105,000 in 2021.
“Kohl’s has a long-standing commitment to being a responsible corporate citizen, and I am proud of the progress Kohl’s has made this past year. As a purpose-led organization, ESG stewardship is an integral piece of Kohl’s culture and an important component of the company’s vision and long-term strategy,” Michelle Gass, Kohl’s chief executive officer, said in a statement. “I am appreciative and impressed with how our associates and our company have continued to manage our business through this ongoing pandemic to support our customers, our business and one another.”
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Kohl’s also outlined efforts to create a more inclusive work environment, citing last year’s appointment of Michelle A. Banks as chief diversity and inclusion officer; increasing the pipeline for recruiting diverse talent; rolling out inclusive leadership training; growing the eight Business Resource Groups, which help drive the business by championing D&I, to more than 9,500 members, and offering more “culturally relevant products, designs and storytelling,” including expanding adaptive assortments in kids and toys, extending size ranges and introducing new D&I product categories.
Kohl’s said it launched 15 diverse or women-owned brands as part of its “limited-time curated assortment” including women’s, men’s and baby apparel and beauty and grooming products. It has decided to triple its spending on diverse suppliers by 2025, from the previous objective of doubling the spending; established a Supplier Diversity Mentorship Program to expand capacity building for diverse suppliers, and pledged to commit more than $20 million to support diverse communities by 2025.
The $19.4 billion Menomonee Falls, Wisconsin-based retailer also reported on its growing range of physical and mental health services and philanthropic activities.
Kohl’s, which operates more than 1,100 stores in 49 states, Kohls.com and the Kohl’s app, is reviewing several takeover bids, said to be from the Hudson’s Bay Co., Sycamore Partners, Leonard Green & Partners, Starboard Value’s Acacia Research Corp. and the Franchise Group.
Kohl’s will hold its annual shareholder meeting on May 11. The company has been urging shareholders to reject activist stakeholder Macellum Advisors’ proposal for taking over the Kohl’s board — and to stick with the current board of 13 directors.
Kohl’s did get a significant thumbs-up when T. Rowe Price Associates Inc., an investment management firm and long-term holder of Kohl’s stock, disclosed Wednesday that it has will vote in favor of the board slate proposed by Kohl’s, and not Macellum’s 10 board nominees. T Rowe owns about 5 percent of Kohl’s stock, and periodically engages with Kohl’s management and board to get insights on the company.
“We engage with members of the Kohl’s board and its management periodically as part of our regular, ongoing investment dialogue with companies in our clients’ portfolios and proprietary funds,” T. Rowe indicated on its website. “These conversations gave us a solid understanding of the board’s guiding philosophy on capital allocation, and their perspectives on the strategic direction of the company. We find strong evidence that the incumbent board is committed to choosing the path it believes has the highest likelihood of shareholder value creation. Furthermore, we are confident the board is employing an independent and rigorous process to determine the appropriate path for the company.”
Macellum has been vociferous in its criticisms of Kohl’s management and board, contending that the company has been unable to create sufficient value for shareholders and it is underperforming its peers. Macellum has been pushing Kohl’s to sell the business or possibly reengineer it by splitting the dot-com and store operations into separate companies.
But Kohl’s has argued back that it has the right board filled with experienced and qualified individuals, and that the right strategies are in place to increase shareholder value.