Dillard’s believes that climate change mitigation is an appropriate issue for all corporations, including retailers, to consider in conducting operations. Dillard’s has installed energy management systems (“EMS”) in all Company owned buildings. The EMS systems allow Dillard’s to monitor and control energy use in Company facilities remotely. Buildings are operated in the most efficient manner possible with respect to starting, running and stopping the HVAC and lighting systems. The HVAC and lighting systems within Dillard’s stores are maintained at minimal energy usage by turning them off when the buildings are not occupied. In combination with the EMS, Dillard’s has partnered with ControlIQ to assist us in analyzing the data generated from our EMS systems. The partnership will allow us to evaluate all store energy data to better control the facilities at the lowest possible cost. In particular, Dillard’s monitors its buildings for operation outside of normal ranges. This system allows Dillard’s to determine the need for repair or replacement of HVAC units that are not operating within design specifications. Dillard’s builds its new stores to U.S. Green Building Council’s LEED standards where appropriate. Dillard’s installs 12.5 Energy Efficient Ratio (EER) and variable speed drive HVAC systems, highly reflective white roofs, 4.0 factor insulation (30 for roofs), fully automated energy systems and LED lighting. Dillard’s replaces incandescent and fluorescent systems with LED lighting where appropriate for existing stores. All new store designs and remodeled stores lighting is specified as LED. Dillard’s replaces existing HVAC systems where appropriate with new highly efficient variable speed drive units. Dillard’s replaces existing roofs where appropriate with highly reflective efficient roofs. Dillard’s consistently evaluates new technologies that may fit its needs. Dillard’s works closely with its HVAC and lighting vendors to develop specific products to reduce its energy usage. Dillard’s facilities are included in the EPA’s Energy Star Program. Although Dillard’s does not rank its buildings, Dillard’s compares its Energy Use Index to other like facilities. Approximately 70% of the Companies buildings operate more efficiently in comparison to its peers. Dillard’s makes efforts to reduce its use of Paper through paperless payroll, 401k, credit card statements, record storage and other efforts to reduce the output of and storage costs associated with paper. Dillard’s has and continues to analyze opportunities to incorporate renewable energy in its facilities. A portion of Dillard’s electric purchases is designated for the supplier’s research and development of renewable energy sources.