GreenChill Partnership's 2014 Data Benchmarks and Emissions Trends

GreenChill Partnership's 2014 Data Benchmarks, Results, and Trends June 30, 2015 1

Overview General statistics Emissions rates Transition to HFCs Average store performance Systems manufacturer data 2

Part 1 - General Statistics Number of stores reporting Emissions reduced in each year versus baseline year and the cumulative emissions reduced Pounds of refrigerant Metric tons of ODP (ozone-depleting potential) Metric tons of CO2e (CO2 equivalent) 3

Number of Stores Reporting* 12,000 10,786 Number of Stores for which Data was Reported 9,000 8,035 8,037 7,075 5,926 6,000 5,297 4,780 4,508 3,000 0 2007* 2008* 2009 2010 2011 2012 2013 2014 * Partners did not report their store numbers in 2007 and 2008. Estimates for these years are extrapolated based on numbers reported by Partners in 2009. **Estimates of total industry size are from Food Marketing Institute annual industry overview. 4

Emissions Reduced in Each Year Versus Baseline Year and Cumulative Emissions Reduced Pounds of Refrigerant (Commercial Systems) 500,000 388,590 400,000 Reduction in Pounds of Refrigerant Emitted 294,330 281,951 300,000 240,898 207,032 185,005 200,000 147,693 117,759 100,000 67,246 67,246 22,027 33,866 0 -12,379 -100,000 -94,260 -200,000 2008 2009 2010 2011 2012 2013 2014 Emissions Reduced Versus Baseline Year Cumulative Emissions Reduced 5

Emissions Reduced in Each Year Versus Baseline Year and Cumulative Emissions Reduced Metric Tons of ODP (Commercial Systems) 60.0 Reduction in Metric Tons of Ozone Depletion Potential 52.0 50.0 39.7 40.0 (ODP) Emitted 30.5 30.0 18.7 20.0 12.3 11.9 11.0 9.2 10.0 7.7 6.4 4.6 4.1 2.3 2.3 0.0 2008 2009 2010 2011 2012 2013 2014 Emissions Reduced Versus Baseline Year Cumulative Emissions Reduced 6

Emissions Reduced in Each Year Versus Baseline Year and Cumulative Emissions Reduced Metric Tons of CO2e (Commercial Systems) Reduction in Metric Tons of Carbon Dioxide Equivalent 400,000 176,807 200,000 156,851 106,128 91,839 74,678 70,678 70,678 (CO2e) Emitted 17,161 0 -19,955 -82,173 -200,000 -174,041 -202,386 -265,881 -400,000 -376,428 -600,000 2008 2009 2010 2011 2012 2013 2014 Emissions Reduced Versus Baseline Year Cumulative Emissions Reduced 7

Part 2 - Emissions Rates Partnership average emissions rate (all sources) Partnership average emissions rate (commercial systems) Emissions rates by refrigerant Refrigerant emissions replacement costs in 2014 Average GWP per pound emitted 8

Partnership Average Emissions Rate (All Sources) 30% 25% Industry Baseline = 25% Emissions Rate 20% 15% 13.13% 13.12% 12.77% 12.45% 12.44% 12.40% 12.32% 11.74% 10% 5% 0% 2007 2008 2009 2010 2011 2012 2013 2014 9

Partnership Average Emissions Rate (All Sources) 15% Emissions Rate 13.13% 13.12% 12.77% 12.45% 12.44% 12.40% 12.32% 11.74% 10% 2007 2008 2009 2010 2011 2012 2013 2014 10

Partnership Average Emissions Rate (Commercial Systems) 30% 25% Industry Baseline = 25% Emissions Rate 20% 15% 13.84% 13.79% 13.65% 13.54% 13.20% 13.16% 13.10% 12.59% 10% 5% 0% 2007 2008 2009 2010 2011 2012 2013 2014 11

Partnership Average Emissions Rate (Commercial Systems) 15% 13.84% 13.79% 13.65% Emissions Rate 13.54% 13.20% 13.16% 13.10% 12.59% 10% 2007 2008 2009 2010 2011 2012 2013 2014 12

Partner Emissions Rates (Commercial Systems) 10 out of 23 (43%) partners achieved lower emissions rates in 2014 compared to 2013 4 partners achieved their goals (+2 stretch goal achievement) 4 partners have lowered their emissions rates in 3 or more consecutive years 13

Partner Emissions Rates (Commercial Systems) Of 23 partners with multiple years of data: 19 reduced their emissions rate since joining the partnership 13 of these 19 partners have reduced their emissions rate by more than 10% 14

Emissions Rates by Refrigerant (Commercial Systems) 16% 14.8% 14.4% 14.3% 14.8% 15.1% 14.3% 14% 13.6% 13.4% 13.3% 13.3% 14.3% 13.9% Emissions Rate 12.8% 13.2% 12.3% 12.7% 12% 12.3% 12.2% 12.1% 11.6% 11.5% 10.9% 10.7% 10% 9.9% 8% 2007 2008 2009 2010 2011 2012 2013 2014 R-404A R-22 (ODS) R-407A Note: Chart shows emissions rates for the three most commonly emitted refrigerants in 2014. 15

Refrigerant Emissions Replacement Costs in 2014 (Commercial Systems) Price per Pound of Refrigerant* % of Total Cost to Replace Emitted Refrigerant Pounds Emitted in 2014 Cost to Replace Emitted Refrigerant Refrigerant R-22 (ODS) $10.77 1,023,828 $11,023,215 52.5% R-404A $2.85 1,462,323 $4,167,621 19.9% R-407A $5.00 365,348 $1,826,740 8.7% R-402A (ODS) $16.75 67,908 $1,137,459 5.4% R-408A (ODS) $16.88 56,563 $954,501 4.5% 9.0% Other 284,861 $1,885,190 GreenChill Partnership 3,260,831 $20,994,725 100.0% *Prices as of April 2015. For the most part, the prices above are based on the assumption that the refrigerant is purchased in the largest bulk quantity available (e.g., a pallet of cylinders). The price per pound of refrigerant is lower for larger bulk purchases. In addition, prices are not available for some refrigerants; the costs of replacing these refrigerants is not incorporated. As a result, the costs in this table are likely underestimated. 16

Climate and Ozone Layer Impact from Emissions (Commercial Systems) Quantity of Refrigerant Emitted Metric Tons of Carbon Dioxide Equivalent Metric Tons of Ozone Depletion Potential Year 2007 1,778,513 2,019,708 30.0 2008 1,856,192 2,147,744 28.8 2009 2,009,638 2,330,624 30.2 2010 2,317,436 2,658,709 32.4 2011 2,543,721 3,053,421 30.6 2012 2,429,894 2,882,151 26.5 2013 2,118,341 2,679,186 21.8 2014 3,260,831 4,341,655 27.7 17

Climate Impact from Emissions (Commercial Systems) The carbon dioxide equivalent of refrigerant emitted by GreenChill partners in 2014 is equivalent to annual GHG emissions from: 900,000 passenger vehicles 1.5 million tons of waste sent to landfills 400,000 homes energy use in 1 year 18

Part 3 - Transition to HFCs Partnership installed refrigerants in 2014 Partnership installed refrigerants in 2014 versus 2007 Partnership installed refrigerants from 2007 to 2014 Average global warming potential per pound of installed refrigerant 19

Partnership Installed Refrigerants in 2014 (Commercial Systems) 2014 2.1% 5.8% 1.1% 5.3% 10.5% 44.8% 30.5% R-404A R-22 (ODS) R-407A R-507A R-422D Other (ODS) Other (Non-ODS) 20

Partnership Installed Refrigerants (Commercial Systems) 2014 2007 5.8% 0.0%6.5% 2.1% 0.7% 1.1% 19.5% 9.4% 5.3% 0.1% 10.5% 44.8% 30.5% 63.8% 21

Partnership Installed Refrigerants (Commercial Systems) 70% 63.8% 60% 57.9% 56.0% 50% 51.3% 44.8% 40.3% 40.6% 44.6% 40% 35.1% 38.3% 36.5% Percentage 28.9% 30% 25.4% 24.9% 30.5% 19.5% 20% 10.9% 10.5% 10.8% 9.8% 10.0% 9.4% 8.3% 7.9% 10% 6.5% 6.0% 6.1% 5.5% 5.8% 7.2% 4.0% 4.4% 4.6% 5.3% 2.1% 3.6% 3.1% 2.3% 2.2% 0.1% 0.0% 2007 1.0% 0% 1.1% 1.1% 2011 1.3% 2012 1.1% 0.2% 2008 1.6% 2013 0.7% 2.4% 0.6% 1.6% 1.1% 0.4% 2009 0.5% 0.5% 2010 2014 R-404A R-22 (ODS) R-407A R-507A R-422D Other (ODS) Other (Non-ODS) 22

Average Global Warming Potential per Pound of Installed Refrigerants (Commercial Systems) 3,000 Global Warming Potential (GWP) per Pound of 2,946 2,900 2,927 2,852 2,849 Installed Refrigerants 2,800 2,700 2,724 2,645 2,600 2,615 2,500 2,488 2,400 2007 2008 2009 2010 2011 2012 2013 2014 Note: For each year, the amount of each refrigerant emitted is multiplied by the corresponding GWP for that refrigerant. These amounts are then totaled and divided by the total number of pounds of all refrigerants emitted. 23

Part 4 - Average Store Performance Average installed refrigerants and emissions per store Average ozone layer impact per store Average climate impact per store 24

Average Installed Refrigerants and Emissions Per Store (Commercial Systems) 4,000 400 395 391 388 379 Pounds of Installed Refrigerant per Store Pounds of Refrigerant Emitted per Store 350 3,500 317 300 302 302 299 3,000 2,943 250 2,883 2,866 2,862 2,500 200 2,416 2,401 2,211 2,184 2,000 150 2007* 2008* 2009 2010 2011 2012 2013 2014 GreenChill Partnership (Installed Refrigerants) GreenChill Partnership (Emissions) *Partners did not report their store numbers in 2007 and 2008. Estimates for these years are extrapolated based on numbers reported by Partners in 2009. 25

Average Ozone Layer Impact per Store (Commercial Systems) 120 24 Ozone Depletion Potential (ODP) Pounds in Installed Ozone Depletion Potential (ODP) Pounds Emitted per 110.6 101.8 90 18 94.9 Refrigerants per Store 87.1 14.7 13.3 60 12 Store 63.7 12.6 12.1 57.1 47.1 42.3 8.4 7.3 30 6 6.8 5.7 0 0 2007* 2008* 2009 2010 2011 2012 2013 2014 GreenChill Partnership (Installed Refrigerants) GreenChill Partnership (Emissions) *Partners did not report their store numbers in 2007 and 2008. Estimates for these years are extrapolated based on numbers reported by Partners in 2009. 26

Average Climate Impact of Refrigeration System per Store (Commercial Systems) Metric Tons of Carbon Dioxide Equivalent in Installed 4000 1000 Metric Tons of Carbon Dioxide Equivalent in 3,437 3,365 3,349 3,205 3000 750 Emissions per Store 2,915 2,912 Refrigerants per Store 2,898 2,859 2000 500 449 449 448 440 403 380 379 359 1000 250 0 0 2007* 2008* 2009 2010 2011 2012 2013 2014 GreenChill Partnership (Installed Refrigerants) GreenChill Partnership (Emissions) * Partners did not report their store numbers in 2007 and 2008. Estimates for these years are extrapolated based on numbers reported by Partners in 2009. Note: Only accounts for climate impact due to refrigerants. 27

Part 5 - Systems Manufacturer Data Advanced and centralized DX racks sold Advanced and centralized DX racks sold as a percentage of all racks sold Systems sales in 2014 28

Advanced and Centralized DX Racks Sold 4,500 4,248 4,220 4,250 3,962 3,803 3,797 3,658 -10% -6% -4% -4% 3,320 28% -13% -1% Number of Racks 2,026 1,994 2,220 3,000 1,717 2,236 1,819 2,171 1,606 -15% -3% 12% 38% -16% -6% -10% 1,500 2,226 2,222 2,086 2,030 1,839 1,726 1,714 1,626 -22% -6% -6% 10% 13% -18% 18% 0 2007 2008 Centralized DX 2009 2010 2011 2012 2013 2014 Total Advanced Note: Advanced systems are defined as refrigeration systems that have significantly reduced charge sizes and lower leak rates compared to centralized DX systems. 29

Advanced and Centralized DX Racks Sold 60% 57.2% 56.4% Percentage of All Racks Sold 56% 54.9% 52.7% 52.3% 52.2% 51.6% 52% 50.3% 49.7% 48% 48.4% 47.8% 47.7% 47.3% 45.1% 44% 43.6% 42.8% 40% 2007 2008 2009 2010 2011 2012 2013 2014 Centralized DX Total Advanced Note: Advanced systems are defined as refrigeration systems that have significantly reduced charge sizes and lower leak rates compared to centralized DX systems. 30

Systems Sales in 2014 37.6% 49.7% 50.3% Centralized DX Other 8.3% 2.2% 0.3% 1.3% Centralized DX Distributed DX Glycol Secondary Loop CO2 Secondary Loop CO2 Transcritical Other 31

Discussion 32

Questions and Feedback on Reports Questions? Feedback How do you use these reports? What aspects of the reports are most/least useful? What else would you like to see? 33

Possible Future Changes: Stocks and Emissions Reports Companies currently do not report any measure that permits standardizing across all size of stores (only the number of stores) Considering including the linear feet of refrigerated cases as a data point in the forms Better standardization across companies/stores Thoughts? Is this information easily available for you? Would linear ft. of case metrics be useful? Is there a way to account for walk-ins? 34

Possible Future Changes: Refrigerant Management Plans Refrigerant Management Plan currently has no required format Considering developing a standard template for partners to follow Might be easier for partners to fill in a template than develop a plan from scratch It would help GreenChill analyze activities & issues across the Partnership Thoughts? 35