Bed Bath & Beyond (BBBY)

Since last year, what additional steps has the Company taken with respect to its own emissions?

As noted in last year’s response to the energy efficiency report proposal, the Company spent tens of millions of dollars over the last several years on equipment and systems dedicated to controlling and reducing energy consumption in its stores, including retrofitting nearly all Bed Bath & Beyond stores opened prior to 2001 with state-of-the-art conservation systems.  As noted in last year’s shareholder letter, by way of example, efforts also involved the use of new, “cooler” roofing materials and more efficient outdoor and store sign illumination.

Since then, the Company has continued its activities in this area.  The Company opened a pilot store that is testing the use of skylights and automatic dimmers to reduce energy consumption.  That same store features solar faucets that utilize ambient light to automatically turn the water on and off, thereby saving energy and water.  The Company did not make any public announcements with respect to this project, but rather is and remains focused on learning as much as possible from the test and rolling out what proves to be most beneficial.

In addition, the Company started purchasing hybrid cars during the last year for certain district personnel whose jobs require car travel.  Further, over 80% of Bed Bath & Beyond stores, and all new Christmas Tree Shops and Harmon locations, are serviced by the most energy efficient HVAC equipment available for commercial buildings, with older stores receiving this equipment when old equipment is replaced.  It is worth noting that, in 2005, the Company became one of the first retailers to adopt the use of environmentally friendly HVAC equipment, which uses non-CFC refrigerant R-410A instead of commonly-used R-22 that has been cited as a cause of depletion of the earth’s ozone layer.  Again, we just did these things without fanfare because they seemed to be the right thing.

The same can be said for the Company’s current plans for solar arrays on four New Jersey facilities.  When completed, these facilities will make Bed Bath & Beyond one of the largest solar energy producers in the State of New Jersey.  The combined solar arrays, over a 30 year period, should conserve 109,500 barrels of oil and reduce CO2 by 38 million pounds, the equivalent of removing 3,800 cars from the road or powering 1700 homes for 30 years.

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The Company is focused on climate change and the prudent goal to be as efficient as we responsibly can be.  The primary issue in the proposal appears to be one of making public the Company’s efforts in this area.  The appropriate level and manner of disclosure going forward is something that is under consideration.