Environmental Sustainability WE AIM TO SAVE ENERGY, SAVE MONEY, AND SAVE THE PLANET.

Reducing Carbon Footprint

Our management team and our Board are taking steps that are intended over time to fight climate change and reduce our carbon footprint by implementing practices that curb greenhouse gases, increase energy and supply chain efficiency, and reduce our waste production. These environmental efforts are also cost-effective.

We have long been committed to pursuing initiatives that are smart for our business and good for the environment. We operate a large, complex international business. We continually work to increase the energy efficiency of our operations by maximizing technologies that lower store and distribution center energy use from lighting, heating, ventilation, and air conditioning systems. We also proactively address the way we handle the waste generated by our business operations and are working to send less waste to landfills across our global business footprint.

Greenhouses Gases

We are doing our part in reducing greenhouse gases by operating our facilities and supply chain more efficiently and delivering real results for the environment. Our efforts to reduce our carbon footprint are focused around these key initiatives: energy conservation, supply chain efficiency, waste reduction, and associate engagement.

Electricity and fuels used to operate our stores generate the majority of the greenhouse gas emissions that we can control directly. Our global approach to reducing our impact and increasing our efficiency includes a balanced and opportunistic portfolio of emissions reduction activities highlighting energy efficiency and renewable energy. As we have said for several years, our environmental sustainability efforts truly benefit both our business and the environment. We are currently focused on:

• Retrofitting lighting
• Implementing and monitoring energy management / building automation systems
• Conducting preventative maintenance on heating, ventilation, and air conditioning (“HVAC”) systems
• Buy online, pick up in store model

We have regional energy management teams across our global operations that are responsible for managing our energy consumption and costs, analyzing and improving current operational performance, and testing, prioritizing, and implementing energy efficiency technologies and products. To facilitate the sharing of best practices across our global regions, our Energy Management teams share information throughout the year and collaborate on regional approaches.

Climate Change

We recognize climate change and our shared responsibility to work toward a lower carbon future. Our planet affords us opportunities to compete and grow and in turn, we need to respect it and work together to keep it clean and safe for future generations. We are doing our part by working to minimize our environmental footprint and create more sustainable operations, with a focus on energy conservation, supply chain efficiency, waste reduction, recycling, and water consumption reduction, all in an effort to reduce our carbon footprint.

Every government, company, and shareholder must confront climate change. Disclosure should be a means to achieving a more sustainable and inclusive capitalism. We are deliberate and committed to embracing purpose and serving all stakeholders – our shareholders, customers, employees, and the communities where we operate. In doing so, we will enjoy greater long-term prosperity, as will investors, workers, and society as a whole.

Green Building

When we move into new properties, as part of the renovation process, our design teams typically consider ways to improve energy efficiency.

Energy Conservation

In 2009, we committed to pursuing energy reduction initiatives that are smart for our business and good for the environment. We continually work to increase the energy efficiency of our operations by updating technologies that lower energy use from lighting and HVAC systems. We work with manufacturers worldwide to find the best energy saving technologies to use or have them made for us specifically.

We are in the process of a multi-year rollout to replace all of our inefficient fixtures with LED lights—which consume 80% less energy than conventional lights—in our stores, warehouses, distribution centers, and offices. Not only are these changes good for the environment, but they could reduce our annual energy costs over time and they last five to 10 times longer.

This energy reduction equates to 1,069 passenger vehicles, or 581 homes, operating for one year.

We have also begun installing “lightstat” thermostats in many of our stores. These “smart” thermostats utilize a photocell to determine whether a space is occupied and resets the heating or cooling of the HVAC system accordingly. Over the past three years, we have installed upgraded lightstats in 70% of our fleet (849 stores) where we control the temperature in the stores. The new lightstat model reduces energy usage as the HVAC units are constantly monitored and run efficiently at all times.

We are also exploring other options that achieve significant energy reductions while balancing business needs. Our corporate headquarters in New York has partnered with our landlord to set corporate goals to reduce our energy consumption in our headquarters by 35%, aligning with the NYC Mayor’s commitment of reducing 80% of carbon emissions by 2050.

Renewable Energy

Renewable energy is an increasingly important part of our environmental sustainability strategy and our approach to reducing GHG emissions from electricity consumption. For Foot Locker, onsite renewable electricity generation opportunities are limited as we typically do not build or own our stores. Additionally, as a global company, we operate in many different energy and renewables markets, so opportunities for using renewable energy vary greatly from country to country and even within regions. For these reasons, we have regional strategies to support our efforts, and subject matter experts review opportunities, deal structures, and procurement strategies that are currently available in their local marketplaces. They continue to evaluate alternative energy solutions and purchasing opportunities for our facilities, considering the economic and operational feasibility of projects.

Recycling

Recycling is one of the most effective ways to divert waste from landfills, so we have been working hard over the past few years to increase recycling programs in our stores and distribution centers.

Runners Point has partnered with Soles4Souls regarding a recycling initiative. During the course of this three-week promotional period, customers could drop off their old running shoes and receive a discount on a new pair. The old shoes where recycled by various recycling providers. Soles4Souls donates the shoes which are still wearable to people in need. In 2019, we collected 3.5 tons of shoes as part of this promotion.

We are also proud to sell products made using recycled materials, including adidas x Parley footwear. Adidas x Parley has pioneered the introduction of footwear made using Ocean Plastic®, a premium material for the sports, fashion, and luxury industries made from intercepted and upcycled marine plastic debris. Fusing marine plastic debris (usually seen as a worthless material) with new technology, the shoes offer another design avenue for transforming threat into thread into products.

Waste Reduction

Tons of Cardboard recycled annually across the US and EU is

Foot Locker recycles to minimize the impact to the environment and reduce landfills

Our biggest waste stream is from packaging, namely boxes used to transport and protect our merchandise as it moves from our distribution centers to stores. We curtail this waste, however, by reusing boxes within our supply chain system and for products returned to the vendors. We do not utilize hangers or tote bags for shipping. We primarily utilize corrugated and recycled boxes and sell back several thousand tons of corrugated boxes for recycling each year. We also continue to search for additional solutions, including through partnerships with our brands, suppliers, and the greater footwear and apparel industry, to reduce packaging weight and change packaging materials to decrease overall waste volume and allow for greater recycling. For example, the Retail Industry Leaders Association, of which we are a member, convenes retailers under its Sustainability and Zero Waste Committees to explore ways to reduce, reuse, collect, and recycle for both of these major waste streams and more challenging materials.

Though we are proud of our accomplishments this year and over time, we recognize that corporate responsibility is a journey. We remain passionate about continuously improving our programs and working to make a positive, sustainable impact on the world.

Supply Chain Efficiency

To support our large, international business, our global supply chain team seeks strategies and technology solutions that can help us increase the efficiency of our transportation operations. Whether we are using modeling software for purposes of improving the efficiency of our store delivery network, or better utilizing trailer space, we are constantly striving to improve the ways that we move merchandise from suppliers around the world to our stores.

We have implemented measures to reduce our greenhouse gas emissions. We have committed to increasing the amount of freight we ship within each carrier and only shipping trucks or containers once full. We have committed to using cleaner modes of transportation and encouraging the use of fuel-saving strategies and technologies. We are also enhancing our data collection capabilities to better measure results. We are working with our vendor partners and adding mini-distribution centers into our supply chain network to accept and distribute product. This decreases shipping runs and accelerates speed of product to the customer. Our trucks frequently run overnight to reduce idling time and pollution. We also make efforts to ship intermodal when available.

Reducing Water Consumption

We believe it is a fundamental human right to have water. Although our business operations are not water intensive, we believe reducing water usage is consistent with our commitment to environmental sustainability. To that end, we are continuing our efforts to monitor our water usage and identify opportunities to improve water efficiency in our operations. Additionally, our GSG encourage our vendors to conserve and protect resources, such as the environment.

Cotton

Cotton is essential to our apparel production. We give our manufacturers the ability to work with fabric mills that meet our social and environmental standards. In some cases, our manufacturers are vertically set-up and invest in the growing of cotton. A significant portion of our cotton apparel is produced by manufacturers who have control of the cotton production. We are currently exploring the use of more sustainable cotton, such as organic, recycled and the Better Cotton Initiative.

Associate Engagement

We know that corporate responsibility, including environmental sustainability, is increasingly important to both current and prospective employees, and we believe that the more we collaborate across the organization, the better our program will be. At Foot Locker, our employees are encouraged to consider how to make operational decisions that minimize environmental impacts.

Measurement and Reporting

Our global teams work together to measure the performance of our CSR initiatives. In 2019, we participated in the CDP Climate Change Information Request, CDP Forests Information Request, and CDP Water Security Information Request. More information regarding CDP can be found on their website at www.cdp.net.