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We’re Listening sessions give leaders the forum to engage their team in conversation about relevant and meaningful topics.

This program empowers associates to share their open and honest feedback.

Suggested topics and themes help associates understand how their work ties to Kohl’s initiatives.

These We’re Listening sessions served as a great resource in the summer of 2017 when Kohl’s Chairman, Chief Executive Officer (CEO), and President Kevin Mansell challenged every associate to focus on two company priorities – driving traffic and operational excellence.

Throughout July and August, associates submitted ideas during We’re Listening sessions and through conversation groups on the company-wide intranet, myKohls.

In total, more than 3,000 associates joined each of the myKohls groups.

Associates contributed more than 3,200 ideas through the groups and We’re Listening sessions, showcasing Kohl’s associate engagement and commitment to the company’s priorities.

Launched in 2015, our four Business Resource Groups (BRGs) recognize and celebrate diverse perspectives and foster an inclusive environment for our associates.

More than 1,900 associates across the organization are engaged in BRGs.

The Millennial, Hispanic Professionals, Veterans and #PrideatKohls groups are focused on activating in four distinct areas – Career, Community, Culture and Commerce – supporting our associates and our business.

We are excited to launch a Women of Kohl’s BRG in early 2018.

Hispanic Professionals BRG Paves Path for Career Growth The Hispanic Professionals BRG was a proud host and sponsor of the 2017 Greater Milwaukee Hispanic Leadership Summit (GMHLS) titled “Empowered Leadership: Critical Skills to Lead Your Career.” The event provided a forum for Hispanic leaders from across southeastern Wisconsin to foster professional growth, leadership development and share best practices.

The full day event featured inspirational sessions with employee leaders from prominent Milwaukee-area corporations and Hispanic organizations.

The Summit culminated in a keynote theatrical performance chronicling one man’s journey from immigrant to successful entrepreneur.

Veterans BRG Launches Military Hero Parking Spot Pilot In 2017, the Veterans BRG identified an opportunity to support and thank our veteran and active military shoppers by dedicating a parking space for veterans located near the front entrance of store locations.

In collaboration with our marketing and store experience team, the BRG piloted Hero Parking Spots at 27 store locations across the country.

These locations were selected based on a large military presence in their areas, then the parking spot signage was installed in October 2017.

The initial feedback from the store locations selected for the pilot, as well as store locations looking to do more for their veteran and active military shoppers, has been overwhelmingly positive.

#PrideatKohls BRG Drives Awareness During Pride Month The #PrideatKohls BRG planned events in June to engage, inform and celebrate Pride with associates.

Members of the BRG participated in parades and shared personal coming out stories with the company.

Additionally, the group partnered with internal marketing to create an Instagram story celebrating Pride that was shared with associates and customers.

Because of these efforts, membership in the #PrideatKohls BRG doubled that month.

Millennial BRG Supports Innovation - One New Idea at a Time For the second year in a row, the Millennial BRG hosted Innovation Tank, a large-scale forum for associates to share ideas with the Kohl’s leadership team.

The 2017 event supported our broader organizational focus of driving traffic.

The BRG received submissions from across the organization, and five associates were selected to present their idea to a panel of judges comprised of senior level leaders.

The winners’ ideas continue to be discussed and vetted across the organization for potential testing or implementation.

At all levels of the company, we encourage associates to recognize and celebrate the greatness of their teams and colleagues.

In doing so, we aim to create a culture of appreciation in which teams and individuals are valued, and supported.

We celebrate successes both big and small, from everyday contributions to major achievements, and take the time to acknowledge important personal life events.

The Recognizing Greatness system is just one of the ways associates are recognized for a job well done.

More than 1 million recognitions have been sent since its launch.

Appreciation runs through all levels of our organization and is championed by our Chairman, CEO and President with the annual Chairman’s Award.

The Chairman’s Award allows senior leaders the opportunity to reflect on great wins and collectively celebrate those successes.

This prestigious honor is designed to recognize a store or project team that has gone above and beyond by living our values.

Additionally, we believe in the importance of taking time to celebrate our successes as a team.

Each year, the organization takes part in our annual Summer of Greatness and Associate Appreciation Week, where we take the time to celebrate each of our accomplishments and show our appreciation for one another.

Design a Life You Love describes our focus on total well-being including health, financial, community, career and social goals.

It gives associates the flexibil- ity to participate in a wide range of activities and use tools and resources that help them on their continued journey towards well-being.

Kohl’s also offers programs to support and empower associates to achieve a fulfilled and balanced family life.

Wellness Centers Kohl’s added four more wellness center locations, expanding our delivery of healthcare to associates to a total of 17 locations.

In an effort to improve access to and the use of quality, evidence-based healthcare, Kohl’s has added wellness centers to all distribution centers, e-commerce fulfillment centers and credit centers located across the country.

Our wellness centers are designed to support total well-being and offer Kohl’s associates (and in select locations, their families) treatment for routine illnesses, preventive exams, lab services, physical therapy, health coaching, flu vaccines and more.

Our wellness centers are staffed by a range of medical professionals from physicians and nurse practitioners to physical therapists and registered nurses who are dedicated to providing compassionate, individualized care tailored to the associate’s specific needs.

More than 30,000 visits were made to these locations in 2017.

Employee Assistance Program Designed to help associates address all of the goals and challenges that may come their way, our comprehensive Employee Assistance Program (EAP) goes beyond traditional models.

Not only do we offer all associates access to confidential in-person, phone or online counseling, we also provide a variety of work-life resources such as access to certified financial planners, help locating care providers, guidance in navigating the college search process, financial assistance for ongoing education, and 24-hour access to legal guidance for personal matters.

Critical Incident Support Our Critical Incident Support program provides associates with the support they need in case of unexpected events such as a death in the family or a natural disaster.

This program serves to provide expert guidance, up-to-date information on community resources, and in-person or group counseling to help associates effectively deal with crises they may face and to help give them the support they need to return to normal life as quickly as possible.

For more detail about our disaster relief efforts, please refer to the Community section of this report.

Life Solutions Resources At our distribution centers, e-commerce fulfillment centers and credit services operation centers, our on-site Life Solutions program offers an even more personalized approach to support our associates.

As part of our program, associates have in-person access to a dedicated professional who can provide support for a wide variety of personal concerns and work-life issues, and help connect our associates with local community resources to find solutions that work for them.

In 2017, our associates had more than 11,000 interactions with an on-site provider.

learning and laughter for children and Kohl’s families.

470 children in 38 classrooms.

Healthy Rewards Healthy Rewards is a program that provides a financial incentive for associates and their spouses who are enrolled in a Kohl’s medical plan to “know their numbers” and take greater ownership of their personal health.

Individuals who complete a well-being assessment and health screening are eligible for a medical premium credit, which reduces their costs for Kohl’s medical coverage.

The program is free and confidential for all associates, not only those enrolled in our health plan.

New Human Capital Management System A new Human Capital Management system launched July 2017, connecting all of Kohl’s people management tools and systems to create an easier, more streamlined experience.

The self-service model allows associates to view their paycheck, time off balance (non-exempt only) and access HR resources, systems and benefit information, all in one easy to navigate location.

The system also supports leaders by providing access to information, enhancing transparency and offering tools to encourage leaders to think differently and act quickly.

Commitment to Safety We strive to offer an environment that is safe for our customers and associates.

Through proactive loss control programs and strong operational integration, safety is a cornerstone of our business operations and is seen as fundamental to a positive customer and associate experience.

Kohl’s associates are expected to adhere to our key safety principles including cleanliness, awareness, responsibility and leading by example.

Strong safety programs and best practices, supported by clear communications, ongoing coaching, and recognition of achievements have helped reduce accident frequency and promote safety across our company.

To ensure safety, we continue to integrate messaging and best practices into business operations.

This continued communication helps keep safety in the forefront of our leadership direction and associate decision-making.

Your community is our community.

That’s why you’ll see us out there in the neighborhood with our sleeves rolled up, working to ensure families are safer, happier and healthier.

Kohl’s is dedicated to giving back to organizations both in our hometown, as well as the communities where our customers and associates live and work.

In 2017, when some of the strongest natural disasters in our country’s history impacted thousands of families and their homes, Kohl’s provided support to affected associates, customers and communities.

Watch this video to see how Kohl’s helped provide relief to those in need.

MERCHANDISE PROGRAM Our Kohl’s Cares cause merchandise provides families with a simple, easy way to support charitable initiatives.

When customers purchase this merchandise, 100 percent of the net profit is donated to charitable organizations nationwide, including hospitals in each state where we do business.

The merchandise is available year round, in all stores and online at Kohls.com/Cares.

In 2017, the net profit generated from merchandise totaled nearly $20 million.

To date, Kohl’s has raised nearly $340 million through this program.

HOSPITAL PARTNERSHIPS Kohl’s Cares cause merchandise primarily supports children’s hospitals local to where we do business.

Historically, Kohl’s donated to more than 150 hospitals supporting programs focused mainly on injury prevention and healthy eating.

We re-evaluated the program to ensure the contributions we make are improving specific health objectives of underserved communities, contributing to a greater impact.

In 2018 and 2019, we will be supporting more than 70 hospitals across the country, focusing on particular needs identified by local communities.

Topic areas include healthy development, safety, wellness and chronic disease management.

Kohl’s Cares committed more than $23 million over two years to support these programs in 2017.

For more information on our hospital partners and these new programs, visit Kohls.com/Cares.

This site provides an interactive map that demonstrates the impact our hospital partners are making across the country.

Viewers can select their state to learn more about the specific hospital partner program impacting their local community.

The Kohl’s Cares cause merchandise program operates under Kohl’s Cares, LLC, a wholly-owned subsidiary of Kohl’s Department Stores, Inc.

The Kohl’s Cares Fundraising Gift Card program makes fundraising for schools or nonprofits easy and practical.

The premise is simple – fundraising groups purchase Kohl’s gift cards at a discount, and sell them at face value to generate profit for their organization.

More than 460 organizations participated in the Fund- raising Gift Card program in 2017, raising more than $1.6 million for their missions.

We believe strongly in encouraging our associates to actively participate with causes and organizations that matter to them and our customers.

Through Kohl’s volunteer program, we encourage giving in all our locations and encourage associates to contribute their time and talent to local eligible nonprofit organizations.

When Kohl’s associates form teams of five or more, and volunteer for at least three consecutive hours with eligible 501(c)(3) nonprofits, the company provides a $500 grant directly to the qualifying nonprofit organization.

In 2017, 37 percent of our associates volunteered nearly 500,000 hours with nearly 8,500 eligible 501(c)(3) organizations that matter most to them.

Since the program’s inception in 2001, Kohl’s, through the volunteer program, has donated more than $155 million in corporate grants to nonprofit organizations across the country.

• New Volunteer Tracking Portal – The new portal, featuring single sign-on and mobile accessibility, will give associates a more user- friendly experience when creating and finding volunteer events along with tracking volunteer hours, making it easier for associates to give back to their communities.

• Greater Impact – Associates may now volunteer with other Kohl’s associates from any location.

Previously, associates could only volunteer with colleagues from the store or corporate location they worked from.

In addition, the benefitting nonprofits will receive a $500 volunteer reward for every five associates who volunteer for three consecutive hours at each event.

• More Ways to Give – Through the new portal, associates will also have the option to make personal cash contributions to any eligible 501(c)(3) nonprofit.

As the needs of Kohl’s customers, communities and associates evolve, Kohl’s Cares has embraced innovation and transitioned the focus of our annual company-wide initiative to active and wellness.