Pursuing other environmentally responsible strategies

• On this page:
• Recycling
• Plastic bags

We believe that working to reduce waste is a significant aspect of environmentally-responsible behavior. We are also aware of the indirect impact of our operations on the climate. In addition, recycling often benefits our businesses. Reducing waste creates cost savings and recycling can provide additional income. Some of the money generated by our recycling programs is donated to charitable causes.

We are applying consumer insight to develop incentives for using reusable bags, information campaigns and attractive and affordable alternatives to traditional plastic bags.

Recycling

We take a proactive approach to recycling and have a broad range of programs in place throughout our operating companies. We use recyclable packaging whenever possible.

We recycle cardboard and plastic and are increasingly recycling paper products. Giant-Carlisle, Stop & Stop/Giant-Landover and Albert Heijn have highly successful recycling programs and continue to explore new opportunities for recycling additional types of waste. For example, Giant-Carlisle has been able to generate extra income by recycling plastic corners that are used in the shipping of crates of bananas. Giant-Carlisle is also reducing paper through an internal print reduction program that promotes on-line viewing of reports and other documents.

A number of our businesses audit their stores and distribution centers to verify that recyclable waste is not included in the waste stream when recycling facilities are available. For example, Albert/ Hypernova carries out central processing of waste in order to better regulate its waste system.

Recycling organic waste is more complicated as it requires a special infrastructure and hauling. Developing effective programs to deal with organic waste is particularly significant in some areas where it may be banned from the waste stream in coming years. Massachusetts is a case in point: Stop & Shop, which operates in this market, is helping state officials to establish the necessary infrastructure and set standards for organic recycling. In 2005, as a result of its efforts, Stop & Shop/ Giant-Landover received the WasteWise Very Large Business award for recycling from the Environmental Protection Agency.

Our European companies work with suppliers to reduce packaging waste in line with the EU Packaging Directive.

Plastic bags

The use of plastic bags by supermarkets has become an increasingly relevant topic in all of our markets, particularly in the United States where they are being banned in some communities. The issue has slightly less resonance in Europe where supermarket consumers are more accustomed to reusable bags or paying for plastic shopping bags, particularly at Albert Heijn.

All of our supermarket companies offer reusable shopping bags and numerous opportunities to recycle plastic bags. In the United States, all of our stores have collection points for customers to return used bags to be recycled. For example, bags collected at Giant-Carlisle stores are recycled into material to build decks and railings, by Trex, the leading manufacturer of alternative decking lumber in North America.

For the last 10 years, many of those plastic bags have been turned into park benches, which are donated by Giant-Carlisle to help beautify local communities.

Although recycling plastic shopping bags helps reduce the negative impact on the environment, our goal is to encourage the widespread use of reusable bags. This will require changing current consumer perceptions about the impact shopping bags have on the environment.

As part of the introduction of low-cost reusable bags in its stores in 2007, Giant-Carlisle conducted significant research into customer attitudes on recycling and reusability. This research showed that large numbers of consumers place a low priority on the plastic bag issue, for reasons that included reduced convenience, uncertainty about alternatives and extra costs. To overcome such barriers, our operating companies are applying consumer insight to develop information campaigns, incentives for using reusable bags, and attractive and affordable alternatives to traditional plastic bags.