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.