Office Depot Releases Independently Audited Environmental Report

When Office Depot announced its new Environmental Paper Procurement Policy & Vision Statement on Earth Day 2003, the company set out to create a new level of responsibility, transparency, and accountability related to the environment. These efforts have culminated in the 2004 Environmental Stewardship Report, the industry's first-ever independently audited environmental report. The report focuses on the key policy and infrastructure initiatives undertaken by Office Depot during the past year and details the resulting environmental benefits.

Office Depot's Environmental Stewardship Report highlights the company's 2003 environmental initiatives and performance relating to the Environmental Paper Procurement Policy & Vision Statement, including the use and sale of environmentally preferable paper, off-site recycling, participation in environmental conferences and work groups, implementation of environmental policies, and other programs to promote and advance environmental stewardship.

To verify Office Depot's performance in the above areas, the company underwent an independent audit by a multi-disciplinary team of sustainability specialists from PricewaterhouseCoopers' Global Forest & Paper and Environmental Management Systems practices. PricewaterhouseCoopers verified that the information in Office Depot's Report was supported appropriately with underlying evidence and "is fairly stated in all material respects."

"Our environmental strategy is values-based and market-driven," said Neil Austrian, chairman and CEO of Office Depot. "It is clearly the 'right thing to do' and resonates with our employees and business partners as well as our customers and the investment community -- who share this philosophy and want to do business with a company that derives economic value from improved environmental outcomes. The independent audit of our environmental performance by PricewaterhouseCoopers supports this strategy by contributing to our stakeholders' confidence in Office Depot and our commitment to environmental stewardship."

The report presents both corporate environmental performance and customer environmental performance resulting from purchasing activity.

Approximately 52% of the office paper used by Office Depot's corporate offices contained recycled content, achieving an average annual total post-consumer waste (PCW) recycled content of 17.5% .

Approximately 14% of the office paper purchased by Office Depot customers contained recycled content, achieving an average annual total PCW recycled content of 4.5% .

The combined, aggregate PCW recycled content of all office, marketing and shipping paper products used and sold during 2003 was 5.74%.

Nearly 700,000 trees were conserved as a result of the use or sale of environmentally preferable paper and recycling initiatives.

More than 3.5 million ink and toner cartridges were recycled -- a 168% increase over 2002 - and more than 1 million laser cartridges were recycled -- a 68% increase over 2002.

The company eliminated more than 30,000 tons (or approximately 60,000,000 pounds) of hazardous gases in 2003, related to environmentally conscious procurement and recycling practices.
The report also outlines Office Depot's "roadmap to success," setting forth specific, measurable environmental goals for the coming year, another first for the office supply industry. Future initiatives will continue to focus on project partnerships with the company's stakeholders, addressing responsible forest management, the conservation of forests and the biodiversity they contain.

PricewaterhouseCoopers' audit approach was completed in accordance with the International Standard on Assurance Engagements (ISAE) 3000, developed by the International Federation of Accountants. PricewaterhouseCoopers has marked the report with green check marks, which indicate where the report is supported by underlying evidence and verified by the auditors. The reported results reflect Office Depot's performance against the company's Environmental Paper Procurement Policy & Vision Statement in Canada and the U.S. With North American business operations contributing 78% of gross revenue during 2003, this geographic scope coincides with the company's largest business unit and captures the majority of Office Depot's environmental efforts during 2003.

"Our audit confirms Office Depot's commitment to third-party assurance of their progress toward their stated environmental goals," said Bruce McIntyre, a partner in PricewaterhouseCoopers' Global Forest & Paper Practice. "Independent assurance of corporate responsibility reports is part of a trend towards increasing transparency in the environmental, social and economic elements of business."