Albertsons remains committed to operate its business in full compliance with all applicable environmental regulations. A dedicated Environmental Affairs Department continually incorporates pollution prevention and resource conservation initiatives into daily operations, assisting our stores and distribution centers with operating strategies which minimize negative environmental impacts on communities we serve.

Albertsons continues to receive accolades for its resource conservation and sustainability efforts.

• The company announced that it had been awarded the New England grocery industry’s first Leadership in Energy and Environmental Design (LEED) certification for a new “green” Shaw’s supermarket in Worcester, Massachusetts.
  
  Click here to get the "inside" scoop on the new LEED-certified Shaw’s store
  
  LEED stands for Leadership in Energy and Environmental Design. It’s a certification system based on points established by the U.S. Green Building Council. Point are awarded based upon 1) sustainable sites, 2) energy and atmosphere, 3) water efficiency, 4) indoor environmental quality, 5) materials and resources, and 6) innovation in design.
  
  
• In November 2005, Albertson’s received an America’s Marketplace Recycles! Award from the International Council of Shopping Centers (ICSC) in partnership with the Environmental Protection Agency (EPA). The award, which recognizes the company for its outstanding recycling efforts in its stores and distribution centers nationwide, was presented to Albertsons at a ceremony in Washington DC on October 24th and
  
  
• California Integrated Waste Management Board WRAP 2005 Award for all California stores and Distribution centers (seven years running).
  
  
• EPA Waste Wise Honorable Mention Award for the Very Large Business Category
  
  

Each year, Albertsons purchases or leases hundreds of properties for new stores and fuel centers. Prior to acquisition, the Company's environmental team completes thorough property due diligence reviews to avoid unnecessary liability. In some cases, the Company purchases and redevelops and remediates idle industrial or "brownfield" properties to put these impacted properties back into productive use. Albertsons is committed to maintaining compliance with all applicable federal, state and local environmental regulations for all of our retail and distribution center facilities. Many regulations - ranging from water resource management, air quality emissions and hazardous materials management - apply to our facilities and the environmental team offers an important resource to help ensure that the Company achieves its compliance objectives.

In 2003, the Company continued its efforts to reduce electricity consumption through the incorporation of energy control technologies in existing facilities and the identification and application of energy conserving technologies in both new and existing facilities. Some examples include:

• Energy Reduction Initiatives
  • Lighting Retrofits - Installation of high efficiency lighting systems
  • Energy Management Controls - Installation of computer control hardware and software to help maximize efficiency of refrigeration, air conditioning, and electrical systems
  • Vending Machine and Heater Controls - Utilizing motion sensors to allow vending machines and food "wrapper" heaters to operate only when necessary
  
  
• New Store Criteria Improvements
  • Skylights in stores with lighting controls to minimize operation of sales floor lights
  • ENVIROGAURD refrigeration systems to minimize refrigeration system energy use while operating at a lower refrigerant charge
  • Use of environmentally-preferable refrigerants (HFCs) in new stores and remodels
  • Use of high efficiency display cases that keep product temperatures constant while reducing energy usage

In an effort to reduce the amount of waste generated at store level, Albertsons continued to work with vendors and packaging companies to support the development and use of recyclable containers. Additionally, the company continued its policy of providing convenient plastic bag recycling centers in its grocery stores to encourage customers to recycle. These resources are used again in the manufacturing of plastic lumber, parking stops and curbing, and other useful products. To promote community recycling, Albertsons stores are listed on the Earth's 911 website (www.earths911.org) as a collection center for plastic bags.

Our stores and distribution centers continue to recycle corrugated cardboard, plastics, wooden pallets, cooking oil, meat and bone scraps, single-use cameras and scrap metal.

Albertsons continues to support innovations that reduce costs, improve recycling and increase efficiencies. Our new bakery and donut boxes, unveiled in 2003, are composed of 100% recycled paperboard and are 100% recyclable, including the special plastic window film. Efforts to shift away from wax-coated containers continued throughout the year and Albertsons anticipates many future sustainable packaging improvements.

Albertsons continues to manage electronic and computer equipment, including batteries, as assets. Obsolete equipment and parts are inventoried, palletized and shipped to recyclers which adhere to "zero landfill" policies. If the equipment cannot be sold for reuse, it is scavenged for recyclable parts, a policy which promotes resource conservation while minimizing potential future liability.

Albertsons perceives climate change, as it relates to global warming, to be a very real potential risk to the environment, which ultimately could affect our Company, our customers and our store neighborhoods. We see a great opportunity in targeting and achieving emission reductions that are practically attainable and fully compliant with all applicable environmental regulations. As an added benefit to our energy reduction measures, Albertsons began a program during 2003 to quantify, claim and trade Greenhouse Gas Emission Reduction Credits (ERCs). This initiative combines environmental stewardship with sound business practices.