Debunking the Myths About Green Purchasing How Going

Debunking the Myths About Green Purchasing How Going Green can be Simpler & Less Expensive than you Think

TOPICS Why go green? § What is green? § What are the myths? § Debunking the myths How buy green? § Selecting your priorities § 10 Cost-Saving Ideas § How to implement Example Policies & Solutions

WHAT IS “GREEN”? A purchase or practice is “greener” if it Reduces waste or pressure on resources And/Or… Reduces fuel, energy and greenhouse gases And/Or… Reduces exposure to harsh chemicals Reduce pressure on Forest Resources Reduce fuel, energy and greenhouse gases Reduce waste to landfill and reduce pressure on resources Reduce technology waste; reduce pressure on resources and avoid harsh chemical exposure Reduce pressure on water resources & avoid harsh chemical exposure Reduce harsh chemical exposure CONFIDENTIAL

BUY GREEN CHECKLIST: REDUCE WASTE & RESOURCES Products that reduce waste & resources Recycled: 10% or more post-consumer and/or 20% total recycled content Recycling solutions: bins, bags and boxes to encourage recycling Responsible forestry: wood/pulp fiber from “certified well-managed” forests Remanufactured: made of quality components of previously used products Refills for Refillables/Reusables: items that replace one-time-use disposables Rechargeable: batteries and chargers that replace one-time use batteries

BUY GREEN CHECKLIST: REDUCE ENERGY / GREENHOUSE GASES Reduced energy & greenhouse gases Reduced energy in use: energy efficient office technology & lighting Renewable power in use: solar powered / manually cranked items Reduce harsh chemicals Reduced chemicals in use: results in less human exposure to potentially harsh chemicals Process chlorine free bleaching: paper products bleached with no chlorine or chlorine compounds Biodegradable / Bio-based: liquid or solid items that quickly/safely break down in nature and/or are made with agricultural by-products

WHICH OF THESE BOXES IS “GREEN” A B

WHICH OF THESE BOXES IS GREEN? C D E F G

DIFFERENT GREEN PURCHASING POLICIES REQUIRE PURCHASE AT DIFFERING “SHADES OF GREEN” Third Party Recycled Content Standard Recycled Content % Cut-Off in Standard Example Paper Choice U. S. Green Building Council LEED for Existing Buildings – 10% or post consumer recycled content OR 20% or more total recycled content US EPA CPG Minimum 30% PCR for Copy Paper. Different recycled content % cut-offs for different paper and non-paper categories. Green Top 35%PCR 940650 Association for Advancement of Sustainability in Higher Education: Sustainability Tracking, Assessment & Rating System (STARS) 100% Post Consumer Recycled, Process Chlorine Free OR FSC-Certified Virgin OR Combo 100% Post/FSC Dark Green Top 100%PCR 521980 Red Top 10%PCR 348037

CERTIFIED PRODUCTS ARE VERIFIED TO BE AT A “GREEN ENOUGH SHADE OF GREEN”, BUT A PRODUCT MAY BE LIGHT GREEN OR DARK GREEN, WITHOUT THESE CERTIFICATIONS

What are the Myths?

WHAT ARE THE MYTHS? 1. BUYING AND BEING GREEN ALWAYS COSTS MORE MONEY 2. BUYING AND BEING GREEN ALWAYS COMES WITH LOSS IN QUALITY 3. YOU NEED TO BE PERFECT 4. YOU NEED TO BE A “GREEN EXPERT” TO BUY GREEN 5. GREEN ISSUES ARE “TOO BIG” FOR ONE PERSON OR ORGANIZATION TO HAVE A POSITIVE IMPACT 6. YOU NEED TO DO “ALL OR NOTHING”

DEBUNKING MYTH #1 THAT BUYING AND BEING GREEN ALWAYS COSTS MORE MONEY FACT: THERE IS A CONTINUUM OF COST IMPACTS WHEN GREENING Lower Operating Cost Higher Initial Cost Lower Repurchase Cost Price Parity Higher Purchase Cost Example: Examples: Reman. Ink & Toner Examples: T 5/CFL lights Efficient Fleet Refills! Green Cleaning Many Recycled Products RECS Some Recycled Products

DEBUNKING MYTH #2 THAT BUYING AND BEING GREEN ALWAYS COMES WITH LOSS IN QUALITY FACT: GREEN BUILDINGS AND GREEN PRODUCTS CAN NOW BE AS GOOD OR BETTER QUALITY THAN NON-GREEN ALTERNATIVES

DEBUNKING MYTH #3: YOU NEED TO BE PERFECT FACT: YOU DON’T NEED TO BE PERFECT – INCREMENTAL CHANGES THAT CAN BE SCALED MAY BE MORE FEASIBLE AND BETTER FOR THE ENVIRONMENT THAN PURSUIT OF THE PERFECT GREEN ALTERNATIVE Not Hybrids or Alt. fuel vehicles, but 40% more fuel efficient = 9. 4% drop in CO 2 emissions and 40% lower fuel costs!

DEBUNKING MYTH #4: YOU NEED TO BE A GREEN EXPERT TO BUY GREEN AND BE GREEN FACT: EXPERTISE CAN BE SOUGHT & FUNCTIONS SHOULD OWN GREEN Establish Green Policies & Goals Define Responsibility for Policy Implementation Implement Environmental Management Systems Be Green Sell Green Tell Green Reduce waste and recycle materials Construction, Facilities & Supply Chain Deliver innovative green solutions for contract customers BSD Sales & Marketing Engage External Stakeholders in Environmental Programs Reduce energy and greenhouse gases facilities Construction, Facilities* & Supply Chain Deliver innovative green solutions for web customers BSD Online & Ecommerce Engage & Train Associates in Environmental Programs Print Production Why Green Buy greener office products for internal use Internal Proc & Office Admins Reduce fuel and greenhouse gases from delivery of goods Transportation Deliver innovative green solutions at retail Store Op/Retail Merchants Annually Report on Environmental Programs Buy Green Source green office products for resale Merchandising Buy marketing papers from certified “well managed” forests

DEBUNKING MYTH #5: GREEN ISSUES ARE “TOO BIG” FOR ONE INDIVIDUAL OR ORGANIZATION TO HAVE A POSITIVE IMPACT FACT: SMALL STEPS ADD UP – IT IS ONLY THROUGH COLLECTIVE ACTION THAT ENVIRONMENTAL ISSUES WILL TRULY BE RESOLVED [JUST LIKE DEMOCRACY] All sector’s small steps My organization’s small steps My small steps

DEBUNKING MYTH #6: “YOU NEED TO DO ALL OR NOTHING” FACT: SOME ENVIRONMENTAL ISSUES ARE MORE “MATERIAL” TO YOUR ORGANIZATION – YOU CAN SELECT FEW METRICS THAT MATTER MOST

How buy green?

Do you already have an Environmental Policy or Green Commitment? YES What is it? NO How will you prioritize your green purchasing practices Environment First / Economics First Or Both

US EPA CPG Comprehensive Procurement Guidelines California SABRC State Agency Buy Recycled Program 1. Understand CPG guidelines 2. Find CPG Compliant Items & create CPG shopping lists 3. Train staff to buy CPG compliant products 1. Understand SABRC guidelines 2. Find SABRC Compliant items & create SABRC shopping lists 3. Train Staff to Buy Them Florida Climate Friendly Products List 1. Understand State guidelines 2. Find State Compliant items & create SKU lists 3. Train Staff to Buy Them Climate Commitment 1. Which Climate commitment 2. Which energy efficient products can help? 3. What energy/fuel efficient practices can help ? Mayors / University Presidents / Cool Counties AASHE STARS PROGRAM For Higher Education US Green Building Council LEED Leadership in Energy & Environmental Design Your Own / Other public Green Purchasing Policy 1. Understand STARS guidelines 2. Find STARS Compliant Items & create CPG shopping lists 3. Train staff to buy STARS compliant products 1. Which LEED Standard/s and which buildings? 2. Find how green purchasing can help you get LEED “credits” 3. Find LEED compliant products & create LEED shopping lists 4. Train staff to buy LEED compliant products 1. Understand the guidelines 2. Find Compliant Items & create SKU lists 3. Train Staff to Buy Them

Focus on Environmental Benefits Focus on Both Environmental and Economic Benefits Focus on Economic Benefits Adapted from Michael Porter 1. Where are our main environmental impacts? 2. What do we care most about: q Reducing waste & pressure on resources q Reducing energy or fuel & greenhouse gases q Reducing harsh chemicals 3. How Green do we want to be? • Which Ideas deliver environmental benefits and economic benefits in our preferred timeline? • Are we willing to make investments to save money over the long term? • Are we willing to spend in some areas and save in others? 1. Where are we spending most? 2. How can we lower short-term costs by going green? 3. How can we reduce long-term costs by going green?

SELECTING YOUR ENVIRONMENTAL PRIORITIES Help save forests Help reduce Global Warming Buy paper products with high recycled content or from certified “well managed forests” Reduce electricity and fuel. Buy products to reduce energy: energyefficient technology and lighting, solar powered items, recycled products Ensure Clean Plentiful Water Implement water efficiency efforts, Buy non -toxic biodegradable products and packaging. Use PCF or unbleached paper products Reduce Chemicals in Products Buy non-toxic products and “indoor air quality certified” furniture Reduce Waste to Landfill Recycle more! Buy recycled, remanufactured, refillable, rechargeable products Reduce Technology Waste Buy smaller technology items (e. g. laptops) and use Technology Recycling Services for obsolete tech CONFIDENTIAL

SELECTING YOUR ECONOMIC PRIORITIES – ENERGY COSTS Mc. Kinsey 2007, Reducing US Greenhouse Gas Emissions: How much at what cost

10 Cost Saving Ideas

GREEN IDEA #1: SPECIFY ONLY ENERGY EFFICIENT GREEN RESIDENTIAL AND COMMERCIAL ELECTRONICS

HOW MUCH CAN YOU SAVE? $16, 000 over the life of 100 Energy Star Desk Tops Source: http: //www. energystar. gov/ia/business/bulk_purchasing/bpsavings_calc/Calc_computers. xls

GREEN IDEA #2: SWITCH TO COMPACT FLUORESCENT LIGHTS AND ENCOURAGE EMPLOYEES AND RESIDENTS TO DO THE SAME NACo – Office Depot Energy Star Change the World Campaign

HOW MUCH CAN YOU SAVE? Over $7, 000 over the life of just 100 Compact Fluorescent Lights! Source: http: //www. energystar. gov/ia/business/bulk_purchasing/bpsavings_calc/Calculator. CFLs. xls

GREEN IDEA #3: INSTALL T 5 LIGHTS IN ALL APPLICABLE BUILDINGS Office Depot avoided over $6. 2 million in utility costs in 2006, mainly due to a T 5 lighting retrofit 2. 5 year payback

GREEN IDEA #4: FUEL EFFICIENT LIGHT TRUCKS Approx 207, 000 gallons diesel avoided from transition to Sprinter Vans

GREEN IDEA #5: INSTALL SKYLIGHTS & WHITE ROOFS FOR BUILDING SHELL IMPROVEMENTS LEED Store Prediction: 25% - 30% more energy efficient than our other, already efficient stores

GREEN IDEA #6: REMANUFACTURED CARTRIDGES Assuming $75 price for OEM toner cartridges vs. remanufactured at 10% average cost savings*: § ~ cost savings for one reman. toner cartridge: $7. 50 § ~ cost savings for 1000 reman. toner cartridges: $7, 500 § ~ cost savings for 10, 000 reman. toner cartridges: $75, 000 *Directional cost savings only – actual results will vary.

GREEN IDEA #7: SAVE 50% ON PAPER COSTS BY SETTING PRINTERS TO DEFAULT DOUBLE-SIDED, USE THIS TO FINANCE THE HIGHER COST FOR HIGH RECYCLED CONTENT PAPERS

GREEN IDEA #8: BUY REUSABLE CUPS OR BOTTLES ONCE, AVOID BUYING STYROFOAM & PAPER DRINKWARE REPEATEDLY

GREEN IDEA #9: SWITCH TO PRIVATE BRAND GREEN

GREEN IDEA #10: CREATE YOUR GREENER OFFICE Recycled Letterhead HIGHER / LOWER Rechargeable Batteries: LOWER TOTAL COST Rewritable CDs LOWER TOTAL COST Reusable Mugs: LOWER TOTAL COST Recycled Chairs LOWER COST THAN MANY Reduced Energy Lights: LOWER TOTAL COST Recycled Desk-set PRICE PARITY Recycling Solutions: HIGHER / LOWER GREENGUARD FURNITURE: PAY FOR DESIGN Remanufactured Cartridges: LOWER INITIAL COST Recycled Content Paper: HIGHER / LOWER COSTS

How to Implement

HOW TO IMPLEMENT: 12 STEP PROGRAM TO SELL GREEN 1. Involve decision makers/influencers 2. Involve nay-sayers 3. Identify public commitments 4. Define what you want to be able to say 5. Identify economic priorities 6. Develop the economic case 7. Identify environmental priorities 8. Develop the environmental case 9. Establish policies 10. Define responsibility for implementation 11. Communicate and train on policies 12. Implement

OFFICE DEPOT ENVIRONMENTAL STRATEGY • Office Depot has a global environmental strategy to increasingly buy green, be green & sell green. To implement this strategy, the following environmental policy principles should be considered as business decisions are made: • To buy green across the globe, Office Depot Associates should increasingly work to: – Source green office products for resale – Buy marketing papers from certified well-managed forests – Buy greener office products for internal use [Next page] • To be green across the globe, Office Depot Associates should increasingly work to: – Reduce waste and recycle materials – Reduce energy and greenhouse gases from facilities – Reduce fuel and greenhouse gases from transportation • To sell green across the globe, Office Depot Associates should increasingly work to: – Deliver innovative green solutions for contract customers – Deliver innovative green solutions for web customers – Deliver innovative green solutions for retail customers • We will also “tell green” by engaging stakeholders and reporting environmental progress annually

Example Office Depot Solutions

NUMEROUS TOOLS FOR A GREENER OFFICE www. officedepot. com/buygreen www. officedepot. com/greenbook

[Recycled Spend Analysis] December 14, 2007