Searsit’s your store

Sears Canada is proud to be awarded the 2010 Energy Star Retailer of the Year Award

The Perfect Pair when cost efficiency met sustainability

it was love at first sight

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“we wanted to buy environmentally friendly appliances for our new home but didn’t think we could afford them — Sears made it possible for us to have cost efficiency and sustainability”

Alexander Mason, Prince George, BC

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SearS Canada iS a multi-Channel retailer that is well known for offering products and services that help our customers improve their lives. In 2010, Sears had sales of more than $600 MM in Energy Star product and we continue to add more new energy efficient products to our assortment. For example, Sears now offers tankless hot water heaters, which can even be rented to help lower the initial cost and make an in-novative product more accessible to Canadian house-holds. Please see: www.sears.ca/eco for a wide assort-ment of our eco products.

As Sears continues to set ambitious goals on environ-mental issues, we are pleased to offer better choices of energy efficient, green products. Building on Natu-ral Resources Canada awarding us the ecoENERGY 2009 Building Award and the 2010 ENERGY STAR ® retailer of the year, we aim to recycle 90% of our waste and further reduce our energy use by 20% within 5 years. These are part of our larger com-mitments to making it easy for the customers to be green, and creating a culture of sustainability with our associates, customers and broader communities.

Sears offers a profit-neutral reusable bag program in its stores, with 10 cents from the sale of each bag go-ing to the WWF. 2011 will see a 10% reduction in the paper required for our catalogues as well, our trucking company, SLH, is a SmartWay partner and is a leader in piloting and then adopting best available technolo-gies and behaviours to reduce the carbon footprint

of the fleet. Sears Canada reported its carbon foot-print to the Carbon Disclosure Project in 2010 and will do so again in 2011. We are using a new carbon management software platform from Equilibrium, that will help accurately track and mitigate our emissions across our operations.

Sears Canada is a multi-channel retailer with a net-work of 198 corporate stores, 190 dealer stores, 43 home improvement showrooms, over 1,850 cata-logue merchandise pick-up locations, 106 Sears Travel offices and a nationwide home maintenance, repair, and installation network. The Company also publishes Canada’s most extensive general merchandise cata-logue and offers shopping online at www.sears.ca.

Dene Rogers President and Chief Executive OfficerSears Canada

A LETTER FROM THE CEO

1996 1997 1998

1 million

500,000

250,000

125,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

APPLIANCE Annual Savings ***

High Efficiency, Variable Speed Furnace*

$ 450

Tankless Water Heater, Condensing** $ 215

Washing Machine $ 170

Dishwasher $ 90

ENERGY STAR Central Air Conditioner*

$ 77

Refrigerator $ 50

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The Perfect Partnership

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*Based on 2,000 sq. ft. home. **Based on 4 people in the household. ***Based on appliances purchased between 1990 and 1995. Legal Disclaimer: This table is intended to provide an estimate of potential savings. It is not intended to provide a detailed analysis of expected costs. Estimated savings are based on averages and will vary based upon the size of the existing and new products selected.

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If you have old appliances at home you could upgrade to ENERGY STAR

qualified ones and save:

Number of ENERGY STAR Appliances Sold at Sears 1996 - 2010

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Understanding your Needs

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Choosing the Right Product

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Satisfaction Guaranteed

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HVAC

48%

10%

20%

32%

Water Heating

Major Appliances *

Other

* Refrigerator 5.95% Freezer 1.89% Dishwasher 0.38% Clothes Washer 0.47% Clothes Dryer 4.02% Cooking 2.69%

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Follow Your Heart

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Percentage of Energy Usage in Average Canadian Home

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Commitment to Quality

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Looking Towards the Future

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“Sears has made it easy for us to make

environmentally friendly choices in our home

— their friendly and knowdgeable staff made

sure every last detail was taken care of”

Marjorie Edwards, Toronto, ON

Sears Canada Sustainability Report 2010 Designed by Natalie Pagnucco

“thanks Sears — with your excellent products and professional service

our new house really feels like a home”

Kate Williams, Calgary, AB