Managing Waste and Recycling

We use various measures to reduce waste, repurpose materials and recycle at different points in our operations and supply chain.

A Commitment to Recycling

In 2010, we continued our company-wide recycling initiatives in our distribution centers, stores and corporate offices, focusing our efforts on the following:

• Recycling cardboard packaging, corrugated plastic and pallets at every distribution center
• Using multiple bailers in each distribution center to compress corrugate
• Putting recycling bins in workspaces and conference rooms
• Ensuring paper and plastic materials are collected and recycled in our onsite cafeterias
• Recycling stretch wrap film at various facilities

Results in 2010 included the recycling of 45,000 tons of cardboard and 178 tons of plastic stretch film from our stores and distribution centers. In 2011 we will be exploring other alternatives, including single-source recycling, that will enable us to reduce waste and increase recycling.

Managing Hazardous Materials and Disposing of Hazardous Waste

A comprehensive process for handling hazardous materials and disposing of hazardous waste is important to us. Because we handle, store, transport and utilize a variety of products, materials and chemicals in our business, we are continually seeking ways to improve our systems. Examples of our improvement initiatives include:

• Segregating products containing certain substances of concern into protected areas within our distribution centers
• Keeping our transportation department informed of regulations and requirements that govern the safe transport and shipping of sensitive products
• Reporting incidents involving hazardous materials, should they occur in our facilities
• Training our employees on the appropriate process for handling and disposal of hazardous waste

Streamlining Product Packaging

We continue to identify and implement opportunities to reduce materials used in product packaging with our vendors, working directly with them on solutions that meet our mutual needs.

Each year, we host “Packaging and Sustainability” vendor summits and make presentations to share best practices on ways to reduce packaging. We also convey our expectations for sustainable packaging. For example, we prefer no inner packaging when suppliers deliver products to us because reducing inner packaging reduces waste. We encourage suppliers to use recycled materials in their packaging whenever possible. We show examples of preferred inner packaging styles that increase sustainability results and reduce their supply chain costs as well. With the help of our vendors and suppliers, we collaborated to reduce inner packaging on 208 products in 2010.