Green at AutoZone

Where We’ve Been and

Where We’re Going

AutoZone produced our first Environmental

Responsibility report in December 2008

• Our Stores

• Our Distribution Centers and Truck

Maintenance Facilities

• Our Transportation Fleet

• Our Commercial Business Vehicles

WHERE WE’VE BEEN…

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STORES SERVICED BY SAFETY-KLEEN IN 2010

Locations – AutoZone Stores

Locations - SK Service Area

OUR STORES…

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Safety-Kleen Re-Refinery

East Chicago, IN

SAFETY-KLEEN’S EAST CHICAGO, IN RE-REFINERY

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PROVIDING GREEN BENEFITS TO AUTOZONE

By the end of 2010, Safety-

Kleen will have collected

approximately 8.5 million

gallons of used oil from

AutoZone

Total impact of Safety-Kleen

closed-loop recycling of used

oil for AutoZone

Prevention of 66,096

metric tons of greenhouse

gas emissions

Equivalent to:

7,433,477 gallons of gasoline

consumed

2,699,012 propane cylinders

used for home BBQs

1,712,953 tree seedlings grown

for 10 years

152,876 barrels of oil consumed

12,644 passenger vehicles

833 tanker trucks worth of

gasoline

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In 2010, AutoZone will have recycled

approximately 8 million used lead-acid

batteries through our 8 DCs.

OUR STORES…

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13,000 tons

of scrap

metal

OUR STORES…

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OUR STORES & DCs…

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In 2010, recycled approximately 22,000

tons of cardboard.

(Enough to SAVE 300,000 trees)

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780 tons

of stretch

wrap

885,000

wood

pallets

OUR DCs…

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Our Transportation Fleet

AutoZone utilizes an Auxiliary Power Unit (APU) which provides heat, air and voltage inside the truck leading to an 80% reduction in idle-time gallons of fuel and related emissions

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Utilize tractor and trailer air fairings resulting in a

one-tenth and three-tenth mpg increase

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Testing Super Single Tires on tractors – 4 vs. 8

– resulting in a four-tenth mpg increase or 15%

improvement

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• Our fleet employs advanced mobile technology that

enables real-time visibility and enhanced performance

management of driver behavior

• Our fleet is managed via an advanced freight logistics

tool designed to reduce operating miles and equipment

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Packaging Initiative

• Collaborate with vendors in a focused area

• Main areas of review:

– Excess packaging materials/printing

– Box cutter-free designs

– Pallet configurations

• Ultimate goal is to reach entire vendor base

• Participation and proposals from all vendors

welcome…no need to wait for a workshop!

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Packaging Initiative: Inner Pack

Material / Wall Thickness

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Packaging InitiativePerforation / Outer Carton Design

• Eliminate use of cutter blades

• More efficient put-away for DC AutoZoners

• Eliminate risk of damaging product with cutter blades

Best practice – perforated box. Product is easy to access

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Packaging Initiative – Progress

• Over 40 vendors have participated in an

AutoZone workshop

• Have implemented changes for cutter-free and

reduced packaging materials with

approximately 30% of those vendors

• Total annualized savings in

paper/cardboard/plastic is 74,000 lbs to date

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Additional Opportunities

Is the label in the right location?

Should there be two labels? Outer-case graphics:

consider for elimination

Waste created from non-value-added packaging material

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CALIFORNIA TRANSPARENCY in SUPPLY CHAINS ACT of 2010

• Beginning January 1, 2012, every retailer and manufacturer doing

business in California and having more than $100MM in annual gross

receipts must:

– disclose its efforts to eradicate slavery and human trafficking from its

supply chain

• The disclosure must include the extent to which the company:

– uses third party verification to evaluate and address human trafficking

and slavery risks in its product supply chain

– conducts independent unannounced audits of its suppliers

– provides company employees and management training on mitigating

risks of slavery and trafficking in supply chains

– maintains internal accountability for employees and contractors failing to

meet company standards on slavery and trafficking, and

The exclusive remedy for non-compliance is an injunction from the

CA AG20

AUTOZONE ENVIRONMENTAL

RESPONSIBILTY REPORT December 2010

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NEXT STEPS

Working with AAIA to Tell the Aftermarket’s “Green” Story

• Increase awareness of the aftermarket’s green

contributions among key audiences, i.e., state and

federal legislators and government agencies, Wall Street

and main street

• Utilize AutoZone template for total industry lobbying

effort

• Examples based on AAIA member survey:

– 95% (primarily repair shops and parts stores) recycle used oil

– 98% recycle batteries

– 58% of companies surveyed manufacture, distribute, use or sell

re-manufactured parts22