Hanesbrands became a U.S. Environmental Protection Agency Energy Star Partner in 2007, and was named an Energy Star Partner of the Year in 2010. We strive to earn the Energy Star label for all eligible offices, stores, and distribution centers in our portfolio, a designation that represents higher energy efficiency than at least 75 percent of similar structures. (Currently, there is no Energy Star labeling available for our manufacturing facilities.)

The Partner of the Year award cited our commitment to smart energy management, ability to track and measure progress, and efforts to communicate the importance of energy efficiency to a wide audience, all of which distinguish us as an industry leader. The U.S. EPA noted that our accomplishments demonstrate that improved energy performance can protect the environment and benefit the bottom line at the same time.

We created our current energy management policy in 2008, following Energy Star guidelines. This policy is the foundation for energy management at all of our facilities globally, including manufacturing, distribution, and retail stores, and was endorsed by our Chairman and CEO Richard A. Noll and his direct reports. The policy established a corporate director of energy and a company energy tactical team, which is a cross-functional team of executives who meet quarterly to oversee the energy management process. We have already set corporate-wide performance metrics for energy intensity, renewable energy, greenhouse gas emissions, and water usage.

We rolled out our new energy management process through full-day regional workshops that covered Energy Star’s energy program assessment matrix and facility energy assessment matrix, among other measures. Through these efforts, Hanesbrands has achieved the following reductions from 2007 to 2009 across the company’s facilities globally:

• 11 percent reduction in energy intensity (energy used per product made).
• 1.3 percent reduction in manufacturing-related CO₂ emissions intensity. 41 percent reduction in transportation CO₂ emissions.
• Nearly 18 percent reduction in water usage intensity (water is often heated in manufacturing facilities, meaning that reduction of water use leads to energy savings).
• 9 percentage-point increase in renewable energy (as share of total energy usage) from 21 percent in early 2007 to 30 percent in late 2009.