Environmental Responsibility

Rite Aid believes energy efficiency is a fiscally sound corporate investment and is a conscientious business, social, community and global decision.

At Rite Aid we are committed to conserving energy and avoiding unnecessary generation of waste.

Accomplishments

Over the past five years Rite Aid has made significant investments in energy efficiency initiatives and awareness programs that promote the efficient use of our resources and reduce waste. By implementing high performance lighting retrofit programs, high efficiency HVAC unit replacement programs and installing energy management systems Rite Aid has reduced overall annual electricity consumption by 96,000,000 KWh, which is an equivalent annual reduction of 65,000 Tons of CO2 emissions. Programs such as these led us to receive a Gold Award in the 2008 Connecticut Summer Savers Award for reducing electricity consumption and demand by over 25% at Rite Aid in Waterbury, CT.

We recognize the importance of diverting waste from land fills by avoiding unnecessary waste and recycling packaging and products. Last year alone through our waste management programs, we recycled 61,000 tons of cardboard and 910,000 fluorescent lamps.

Rite Aid has ceased using Ozone depleting refrigerants in all new HVAC units.

Energy Efficiency and Sustainability Goals

As part of our ongoing efforts to improve energy efficiency, Rite Aid has committed to reducing overall electricity consumption by an additional 15% by the year 2015. This is compared with operating facilities as of December 31, 2007 and is an estimated annual reduction of 237,000,000 KWh which is equivalent to 162,000 Tons of CO2 emissions.

Partnerships and Affiliations

Energy Star Partner
Edison Electric Institute
The Association of Energy Engineers
Professional Retail Store Maintenance (PRSM)
Store Planning, Equipment and Construction Conference (SPEC's)

New Store Design

Rite Aid energy efficient store design specifications, construction and operation practices are an integral part of our commitment to be caring neighbors in our store communities, as well as a significant part of our fiscal responsibility to our investors.

Rite Aid utilizes best in class architectural and engineering design firms with US Green Building Council LEED™ accredited staff whom benchmark the latest technologies in energy conservation to ensure new stores and remodels meet and exceed national building code standards for energy efficiency. The Rite Aid store design successfully balances the many variables that impact energy consumption.

Architecture

Rite Aid architecture and engineering teams coordinate and assimilate architectural, building and site development elements throughout the entire design process to create buildings that reflect its core values and goals.

Architecturally designed energy efficient factors available in Rite Aid stores include:

• Vestibules that create an airlock and minimize heat transfer into and out of the store every time a customer enters and exits.
• Light colored single ply roofing reduces heat gain in the summer resulting in reduced demand for air conditioning.
• Building insulation levels exceed building code requirements.
• Suspended acoustical tile ceilings reduce the amount of conditioned store space thereby decreasing energy consumption.
• Thermal performance of insulated glazing and special films reduce solar heat gain and demand for air conditioning.
• Storefront framing window systems are engineered to resist heat transfer by thermally separating the interior from the exterior window frame.
• Strategically placed windows introduce more natural light into the building.

Mechanical, Electrical & Plumbing Engineering (MEP)

Rite Aid MEP systems are safe, reliable, accurate, and environmentally and fiscally sound selections.

Some of the MEP engineered energy efficient factors utilized in Rite Aid stores include:

• High efficiency heating and cooling mechanical units to conserve energy and provide effective ventilation through outside air exchange.
• All interior light fixtures utilize fluorescent or compact fluorescent lamps as opposed to incandescent or halogen lamps. In addition to their extended life, fluorescent fixtures utilize on average 75% less energy than incandescent lamps with comparable light output.
• New store design features a digitally controlled building energy management system with remote monitoring and alarming capabilities. Lighting is controlled via communication to a programmable breaker panel with security alarm interface for occupancy status and ambient light level sensor for exterior lighting control. All stores feature a manual switch to enable shut down of approximately 50% interior lighting during store hours.
• HVAC is controlled via networked thermostats that can be monitored and adjusted remotely. Standard temperature set points are put in place and maintained through routine audits and automated processes performed by third party 24/7 monitoring and asset optimization services.
• Early alarms from these systems alert respective company departments to proactively repair equipment prior to catastrophic failures and maintain optimum occupant comfort and safety
• Low flow plumbing fixtures use less water per flush and reduce potable water use and wastewater treatment.

Maintenance and Operations

In Rite Aid's retail, corporate and distribution environments we have a variety of energy consuming equipment that is necessary to perform the service we provide to our customers and still provide desirable indoor air quality, occupant comfort, adequate lighting, security and product integrity.

In order to maintain this equipment at peak efficiency, Rite Aid partners with supplier partners who help us deliver valuable maintenance and planned capital replacement energy efficiency initiatives that contribute to a better environmental operation at our stores.

Additionally, Rite Aid continually seeks ways to make its stores even more energy efficient by researching and introducing various new methods to enhance energy efficiency and studying other alternative options such as LED lighting.

The following energy efficient technologies have been implemented since 2002:

Lighting:

• Conversion of old inefficient T12 linear fluorescent lighting and magnetic ballasts to high efficiency electronic ballasts and low wattage lamps.
• Conversion of metal halide and high pressure sodium high bay warehouse fixtures to T5 linear fluorescent fixtures with occupancy sensors.
• Changed new store construction and re-lamp program 4' T8 linear fluorescent lamp specification from the standard 32 watt lamp to 28 watt lamp.

In addition to the reduced energy consumption and associated environmental benefits, the new lighting requires significantly less repair and maintenance.

These upgrades have been completed in over 2500 stores, 5 distribution centers and 5 corporate office buildings resulting in reduced annual electricity consumption of 63,000,000 KWh.

HVAC/R:

Replacement of old, less efficient packaged roof top units with new high efficiency units. To date, packaged units with a total combined cooling capacity of 32,000 tons have been replaced at retail facilities representing a reduction in annual energy consumption of 14,000,000 KWh.

Lighting & HVAC Controls:

Lighting and HVAC controls have been installed or upgraded at approximately 1300 retail facilities. These include:

• Addition of lighting contactor panels to lighting circuits for zoned control via direct digital controls (DDC)
• Replacement of traditional time clocks with advanced DDC controls allowing elimination of time of day based scheduling
• Replacement of manually operated thermostats with programmable networked thermostats that allow remote adjustment, monitoring and diagnostics in order to maintain standard temperature set points and night set backs
• Installation of variable frequency drives for centrifugal motors in air handler units
• Currently 70% of all stores are equipped with Energy Management Systems

Through tighter control of primary energy consuming electrical and mechanical equipment at retail stores, we have reduced electrical consumption by 19,000,000 KWh annually.

Building Envelope:

Over 1.3 million square feet of white, 'cool roof' has been installed replacing traditional black bituminous roof coverings significantly reducing solar heat gain and demand for air conditioning.

Measurement & Compliance

We actively monitor, measure, benchmark and evaluate all facilities energy consumption through a combination of utility bill payment software, 24/7 central energy management system monitoring service and utility supply and demand auditing consultants.

We maintain an 'Energy Policy' and a '20 Point Energy Savers Checklist' that are located in every store managers repair and maintenance manual. These documents promote the efficient use of our resources and encourage our store associates to proactively identify potential sources of waste for our resolution.