San Diego, CASeptember 16, 2010

Rick Crandall: Director of Sustainability for Albertsons

Do not be afraid to start greening your company - NOW

Looking for the right green projects that will reduce your expenses or enhance your revenues while going green

Changing the culture of management to meet the needs of your growing environmentally conscience associates

Reducing your Carbon Footprint and capturing the best ROI on energy saving projects

Delivering to your customers green products and your company green initiatives while increasing sales and profits

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Actions, lifestyles and products that meet current needs without sacrificing the ability of future generations to meet theirs.

Business strategies and practices that promote the long-term well being of the environment, society and the bottom line

FMI Sustainability Task Force Definition

A HEALTHY balance = People, Planet and Profits

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As a world-class retailer and distributor,

SUPERVALU should be recognized as a

leader in environmental stewardship by

being innovative; with engaged associates

and customers; through aggressive goal

setting and results.-Work Based Learning Project: Environmental Stewardship

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1. Reduce our Carbon Footprint.

2. Reduce our landfill waste by 50% in 5 years.

3. Build a “green” culture with SUPERVALU associates through education, communication and engagement.

4. Provide “green” products and services to our customers, that support them in meeting their personal environmental goals.

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Average cost of energy = $.12/kWh Utilities cost is the third largest expense

behind labor and workers comp. What would reducing your consumption

by 10% do for any business… Add significant dollars back to the bottom line Reduce the Carbon Footprint of your business Albertsons it’s comparable in terms of global

warming to removing 5,695 SUVs removed from the road

Great for the environment and the bottom line

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FO28 Lighting Upgrades 219 stores 1.3 year simple payback (before maintenance discount) 8,562,000 kWh / yr savings

ECM Motors 54 stores 2.3 year simple payback 1,567,000 kWh / yr savings

VFDs 24 stores 2.1 year simple payback (1.7 w/ incentives) 1,582,000 kWh / yr savings

Case Covers 42 stores $500K (before incentives) SDG&E utility incentives

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Demand Controlled Ventilation (DCV) 5 stores reducing over 300,000 kWh Estimate occupancy by measuring CO2 levels Limit outside air intake based on current occupanc

LED Lighting 17 stores reduction of 1,404,330 kWh Reach-in freezer doors Potential utility incentives

Solar Panel at 3 stores by year end Stores 6704 – 6720 – 6733 15% of their power from the panels

Fuel cells looking into the future for FY 2011 Stores 6355 and new store 6781

Skylights 12 stores a ROI of 3.5 years

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Close all freezer and cooler doors

Turn off all equipment when not in use

Place new energy signing on all equipment

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Never prop open any back room door as temperatures are different in all areas

Close the receiving door whenever possible to keep the conditioned air inside your business

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Visual aids that remind associates New energy signing for all depts.

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•The past was about the process and time management

•Today we look at that process to understand the waste and the impact to the Environment. Then add in the needed process requirements to have a balance between the Environment , cost reductions and efficiencies.

Where to start in reducing your waste stream Understand what is in your waste stream (conduct

audits) Design programs to eliminate the largest contributors to

the waste stream Constantly revaluate where you are and what your waste

stream consist of Communicate to those that can make a difference Reduced compactor pulls Reduce tonnage to landfills Reduced days of service

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Have completed 65 audits to date Helps us understand the waste stream in it’s current state Gives clarity to other issues: Shrink, theft and poor

training Helps you evaluate compliance on your core programs

and processes

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OCC (old corrugated cardboard) 103,490,190 lbs

Waxed cardboard (WOCC) 2,187,567 lbs

All other fiber (paper) 952,785 lbs

Soft plastic (LDPE) 3,040,972 lbs

Rigid plastic (#1, #2, #3, #4, #5, #6 resins) 930,150 lbs

Total pounds recycled in last 12 months 110,601,664 lbs

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Other fiber OCCRigid Plastic

Soft Plastic

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• When it is recycled and not throw away • Based on this picture below if each one of my 261 stores threw

this away and did not recycle it ,we are throwing away over 4285 tons of cardboard boxes each year. (this is a two day sample)

• Based on $149 a ton for revenue and $85 a ton for hauling it away

• Revenue lost $599,900 and expense incurred is $364,225

When is a cardboard box worth $964,125?

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The returns warehouse runs 24 hours a day and 7 days a week

70 to 80 truck loads each day

In 2009 Albertsons donated over 30,000,000

lbs to our Fresh Rescue partners 261 stores partner with over 93 local

food banks, pantries and shelters to distribute food that longer meets our selling standards

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Employee Name Tags

Communicating what we do right

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• Website

•Changing 261 stores from an EPS take out container to a New Earth Friendly unit

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Participating in Community Events

Customer recycling units with Green products

Explaining what can be recycled

In 2009 we recycled over 256,000,000 bottles and cans at our stores

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Sept 2010 24Make sure all doors have reusable bag signing

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