How Going Green can be Simpler & Less Expensive than you Think

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

2. 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

3. 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 waste to landfill and reduce pressure on resources Reduce pressure on Forest Resources Reduce fuel, energy and greenhouse gases 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

4. BUY GREEN CHECKLIST: 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 Products that reduce waste & resources

5. 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 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 Reduce harsh chemicals

6. WHICH OF THESE BOXES IS “GREEN” B A

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

8. DIFFERENT GREEN PURCHASING POLICIES REQUIRE PURCHASE AT DIFFERING “SHADES OF GREEN” Red Top 10%PCR 348037 Green Top 35%PCR 940650 Dark Green Top 100%PCR 521980

9. 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

10. What are the Myths?

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

12. DEBUNKING MYTH #1 THAT BUYING AND BEING GREEN ALWAYS COSTS MORE MONEY FACT: THERE IS A CONTINUUM OF COST IMPACTS WHEN GREENING Higher Initial Cost Higher Initial Cost Higher Purchase Cost Lower Operating Cost Lower Re-purchase Cost Price Parity Lower Initial Cost Example: Reman. Ink & Toner Examples: T5/CFL lights Efficient Fleet Examples: Refills! Green Cleaning Examples: RECS Some Recycled Products Examples: Many Recycled Products

13. 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

14. 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 CO2 emissions and 40% lower fuel costs!

15. 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 Be Green Sell Green Tell Green Why Green Buy Green Establish Green Policies & Goals 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 Source green office products for resale Merchandising Engage & Train Associates in Environmental Programs Deliver innovative green solutions for web customers BSD Online & Ecommerce Buy marketing papers from certified “well managed” forests Print Production Define Responsibility for Policy Implementation Reduce energy and greenhouse gases - facilities Construction, Facilities* & Supply Chain 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 Implement Environmental Management Systems Annually Report on Environmental Programs

16. All sector’s small steps My sector’s small steps My organization’s small steps My small steps 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]

17. 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

18. How buy green?

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

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

21. Focus on Environmental Benefits Focus on Both Environmental and Economic Benefits Focus on Economic Benefits Adapted from Michael Porter • Where are our main environmental impacts? • What do we care most about: • Reducing waste & pressure on resources • Reducing energy or fuel & greenhouse gases • 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? • Where are we spending most? • How can we lower short-term costs by going green? • How can we reduce long-term costs by going green?

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

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

25. 10 Cost Saving Ideas

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

27. 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

28. 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

29. 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/CalculatorCFLs.xls

30. GREEN IDEA #3: INSTALL T5 LIGHTS IN ALL APPLICABLE BUILDINGS Office Depot avoided over $6.2 million in utility costs in 2006, mainly due to a T5 lighting retrofit 2.5 year payback

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

32. 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

33. 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.

34. 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

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

36. GREEN IDEA #9: SWITCH TO PRIVATE BRAND GREEN

37. 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 Reduced EnergyLights: LOWER TOTAL COST Recycled Chairs LOWER COST THAN MANY Recycling Solutions: HIGHER / LOWER Recycled Desk-set PRICE PARITY GREENGUARD FURNITURE: PAY FOR DESIGN Remanufactured Cartridges: LOWER INITIAL COST Recycled Content Paper: HIGHER / LOWER COSTS

38. How to Implement

39. HOW TO IMPLEMENT: 12 STEP PROGRAM TO SELL GREEN • Involve decision makers/influencers • Involve nay-sayers • Identify public commitments • Define what you want to be able to say • Identify economic priorities • Develop the economic case • Identify environmental priorities • Develop the environmental case • Establish policies • Define responsibility for implementation • Communicate and train on policies • Implement

40. Office Depot has a global environmental strategy to increasinglybuy 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 OFFICE DEPOT ENVIRONMENTAL STRATEGY

42. Example Office Depot Solutions

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

44. [Recycled Spend Analysis]December 14, 2007