We are working to support this commitment by:

• Seeking collaborative partnerships with our vendors and non-government and organizations
• Recycling materials throughout our operations.
• Making it possible for our customers to recycle in our stores.
• Using highly efficient energy systems in our retail stores and distribution centers.
• Educating our customers and associates on how they can help reduce their impact on the environment.

Staples® overall commitment to the environment drives many company-wide initiatives. The following are some highlights under each of the four areas:

• In November 2002 we issued the Environmental Paper Procurement Policy, which marked a milestone in Staples' environmental commitment.
• We worked closely with shareholders, consultants, suppliers and environmental advocacy groups on the development of the policy.

By working collaboratively with several groups, we believe we produced a policy that supports the best interest of the environment, our customers and our shareholders. The policy outlines and reaffirms our commitment to:

(a) continue to transition toward paper products with post-consumer recycled content

(b) protect endangered forest resources

(c) support well-managed forests, including the monitoring of certification systems to support this goal.

• We now offer for sale more than 2,100 products with post-consumer recycled content, from 100%-recycled copy paper and recycled Post-it® Notes to remanufactured ink cartridges. We will continue to expand our selection of 30%+ recycled content products across all office supply categories, including:

Staples® brand 30% copy paper, 30% file folders, Staples® brand 40% envelopes, Staples® brand 30% laser paper, and Xerox 100% copy paper.

• We launched a promotion offering a free ream of 30% recycled copy paper to customers who recycle inkjet cartridges.
• We created a program that donates 10% of all Staples® brand recycled copy paper sales to the Boys & Girls Clubs of America (up to $500,000).
• We converted the paper used in our internal operations to a minimum of 30% post-consumer content. This includes letterhead, copy paper, business cards, envelopes and direct mailings.
• We increased the recycled content in our catalog and circular production, from 14% to 21%.

• In-store recycling program for cell phones, PDAs and pagers – a portion of proceeds from recycled mobile electronics donated to the Sierra Club for environmental and conservation programs. To provide this recycling program, Staples is working with CollectiveGood, a mobile electronics recycling company.
• In-store recycling program for rechargeable batteries. To provide this recycling program, Staples is working with the Rechargeable Battery Recycling Corporation (RBRC), a non-profit organization dedicated to rechargeable battery recycling.
• In-store recycling program for inkjet and toner cartridges. Staples recycled 534,000 cartridges in 2002. The Staples Recycle for Education program, launched in 2003, makes it easy to raise millions of dollars for educators by recycling used inkjet and laser toner cartridges. Staples donates $1.00 for every eligible cartridge recycled in its stores – with a goal of raising $5 million for public education.
• Home Office and Store corrugated cardboard and mixed paper recycling program, resulting in 27,000 tons of recycled paper in 2002.
• Store, Distribution Center, and Fulfillment Center recycling program (more than 300,000 fluorescent lamps in 2002, reducing mercury contamination).

• We are a member of the World Resources Institute's Green Power Market Development Group to help develop markets for power from renewable sources.
• We are a member of federal energy conservation and renewable power programs:
  • US EPA Green Power Partner
  • US EPA Climate Leaders Partner

• We support national days of awareness, such as Earth Day (April 22) and America Recycles Day (November 15).
• At our Home Office we participate in and celebrate associate-awareness events like America Recycles Day and Earth Day.
• We share monthly updates with all associates about internal recycling and energy conservation programs, including pointers about how each associate can contribute.