Natural Environment
Transportation
As a company whose U.S. Operations logged over 18 million miles in 2007, OfficeMax has ample opportunity to reduce our carbon footprint, overall environmental impact, and energy costs through better transportation and fuel management. To date, we have accomplished this by revamping our approach to delivery scheduling and logistics, and by increasing the amount of bio-diesel fuels we purchase for our Contract business segment fleet.
In 2007, we continued working with our fleet vendor partners to achieve the following:
• Operate diesel engines in compliance with USEPA standards mandated in 2007 to reduce emissions of particulate matter by 90 percent.
• Operate our fleet on diesel fuel with ultra low sulfur content.
• Comply with idling laws to further cut emissions and fuel consumption.
• Equip vehicles with engine governors to cap speeds at 65 miles per hour to reduce fuel consumption.
• Conduct environmental audits.
• Utilize double-walled fuel tanks to prevent corrosion and leaks.
• Employ lubricant and oil recycling in vehicle maintenance facilities.
• Employ fleet maintenance procedures that comply with USEPA standards for air emissions, wastewater, waste stream management, fuel storage, spill prevention, reporting, and hazmat management processes.
In 2008, our goal is to reduce overall fuel consumption by 15 percent and increase bio-diesel usage by 15 percent.
Scheduling and Logistics Changes Contribute to Reduction in CO2 Emissions
Our U.S. Operations transportation system underwent significant changes and refinements in 2006 that substantially reduced the number of miles traveled by our fleet in 2007. For example, miles traveled by our Contract business segment fleet dropped 32 percent, from approximately 15.5 million miles in 2006 to 10.6 million miles in 2007. This reduction, as well as improved facility energy management and other factors, contributed to a reduction of nearly 9 percent in the amount of CO2 emitted by our U.S. Operations in 2007.
Some of the 2006 changes included the following: Remapping/time-shifting delivery routes and taking a geographic approach to the way in which our stores are replenished from our warehouse and distribution facilities, rather than one based on business segment (i.e., Contract and Retail).
Our U.S. Operations and our Canadian subsidiary, Grand & Toy, continue to communicate to our customers ways in which they can indirectly reduce their own carbon footprint by helping us reduce our fuel consumption. For example, we encourage them to consolidate multiple small orders into larger single orders to cut back on the number of deliveries required to service their needs.
CORRECTION: In our 2006 Corporate Social Responsibility Report (covering 2006 performance), we reported that our U.S. Operations fleet traveled a total of 1.5 million miles. The correct mileage was 15.5 million miles, and the error was due to a misplaced decimal point. The corrected 2006 figure does not include mileage from our ImPress light-vehicle delivery fleet, which we began tracking in 2007. As the error was one of reporting and not measurement, this correction has no bearing on our performance.
Alternative Fuels
At OfficeMax, we are sensitive to the fact that decisions made to advance one aspect of societal good may sometimes have unintended trade-offs. The recent surge by industry in the consumption of bio-diesel fuel, to reduce harmful emissions and preserve non-renewable resources, has been linked by some to higher crop prices and, by extension, higher food costs. Bio-diesel is a non-petroleum-based diesel fuel made from vegetable oils.
Taking into consideration the many environmental and human health benefits of bio-diesel fuel, OfficeMax has made it a priority for our transportation strategy. In 2007, our use of bio-diesel increased 72 percent over 2006 levels and increased over 10 fold from 2005 levels.
The benefits of bio-diesel fuel over petroleum-based diesel include, but are not limited to, the following:
• Lower CO2 emissions across the lifecycle of the fuel from production to consumption.
• Lower smog-forming potential.
• Virtual elimination of sulfur emissions, which contribute to acid rain.
• Lower carbon monoxide emissions, which is a poisonous gas.
• Lower particulate matter emissions, which has been shown to be a human breathing hazard.
Headquarters Shuttle Service
In late 2007, OfficeMax hired a shuttle service to transport associates based at our corporate headquarters to and from the Naperville, IL commuter train station. The goal is to encourage the use of public transportation and reduce the number of our associates driving to work. The associates help to cover the cost of this expenditure.