More on Stunning Home Depot Success Story

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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

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Forest Networking a Project of Ecological Enterprises

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8/26/99

OVERVIEW & COMMENTARY by EE

"Home Depot Inc. will stop selling goods made from wood cut in ancient

forests in a sweeping policy change aimed at protecting redwoods, the

rain forest and other ecologically sensitive tracts," its chief

executive said on Thursday. Home Depot sells less than 10 percent of

the lumber in the world, but is nonetheless the largest single

retailer of lumber in the world. This announcement will almost

certainly add greatly to the market demand for certified timber

products, and perhaps to some forest conservation progress in some

critically threatened areas. Congratulations to Home Depot for doing

the right thing, and Rainforest Action Network and others for holding

their feet to the fire to get them to do so! Now its time for the

rest of the timber industry to fall into line, and make industrial

logging of ancient forests a barbaric thing of the past.

g.b.

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ITEM #1

Title: The Home Depot Launches Environmental Wood Purchasing Policy

Source: PRNewswire

Date: August 26, 1999

ATLANTA, Aug. 26 /PRNewswire/ -- The Home Depot (NYSE: HD), the

world's largest home improvement retailer, took the occasion of its

20th anniversary celebration this week to announce a significant

policy change regarding wood sourcing. President and CEO Arthur M.

Blank used his keynote speech to Home Depot associates today to

highlight the next phase in the company's environmental commitment.

"Our pledge to our customers, associates and stockholders is that Home

Depot will stop selling wood products from environmentally sensitive

areas," Blank said. "Home Depot embraces its responsibility as a

global leader to help protect endangered forests. By the end of 2002,

we will eliminate from our stores wood from endangered areas --

including certain lauan, redwood and cedar products -- and give

preference to 'certified' wood."

To carry the "certified" label, a supplier's wood must be tracked from

the forest, through manufacturing and distribution, to the customer

and must ensure a balance of social, economic and environmental

factors.

"This is indeed a bold step in advancing the cause of independent

certification and responsible wood use throughout the industry," said

David Ford, president of the Certified Forest Products Council, whose

organization helps connect buyers and sellers of products coming from

certified well-managed forests. "We're pleased that Home Depot is

taking decisive action to protect endangered forested ecosystems

around the world." The company's commitment is a huge challenge for

Home Depot as well as for suppliers, noted Blank.

"Our company sells less than 10 percent of the lumber in the world,

but is still the largest single retailer of lumber in the world,"

Blank said. "Today the world supply of certified wood is extremely

limited."

"Home Depot will use the power of its purchasing dollars to vote for

products that do the most to preserve environmentally sensitive

areas," he said. "We are asking our vendors to help us by dramatically

increasing the supply of certified forest products."

Blank said Home Depot is encouraging other home improvement retailers

to follow its lead.

"I hope our competitors join us in this effort to save environmentally

sensitive areas around the world and to promote alternative wood

products," said.

"Our policy is rooted in environmental responsibility, and it makes

good business sense, because we believe people will see the value in

what we're doing," he said. "We're also working to ensure that the

transition is completely transparent to customers, and will not

appreciably affect pricing or product availability."

By taking this step, Home Depot is ensuring that there will be forest

for generations to come, Blank added.

Founded in 1978, The Home Depot is the world's largest home

improvement retailer with 856 stores in the United States, Canada,

Puerto Rico and Chile.

For the past six years, the company has been ranked by Fortune

Magazine as America's most admired specialty retailer.

The Home Depot Environmental Responsibility Fact Sheet

* The Home Depot offers many alternative products that provide

environmental choices for consumers. A few examples include:

-- Finger-jointed moldings, casing trim and door framing that use

smaller wood pieces leading to increased wood efficiency

-- Paneling backed with chipboard, that uses waste and falloff from

manufacturing processes

-- Royal Mahogany doors that come partially from an FSC certified

forest

-- Plastic and composite decking materials

-- Insulation made from recycled glass or recycled newspapers

-- Garden hoses made from recycled tires

-- Flooring underlayment made from recycled newspapers

-- Garden planters made from recycled shrink-wrap

-- Energy efficient compact fluorescent bulbs

-- Biodegradable, enzyme-based drain cleaners

* The Home Depot will award more than $750,000 in grants to nearly 60

environmental non-profit organizations during 1999, to aid in the

study of a variety of environmental issues. The company's focus areas

include forestry and ecology, sustainable and green building

practices, clean-up and recycling, lead poisoning prevention and

consumer education. Past grant recipients include the World Wildlife

Fund, World Resources Institute, Keep America Beautiful, Conservation

International and Reforest the Tropics.

* The Home Depot has received numerous awards for environmental

excellence, including the President's Council for Sustainable

Development Award (1996), Vision for America award from Keep

America Beautiful (1997), an "A" rating for environmental programs for

the Council on Economic Priorities' Corporate Report Card (1998).

* The Home Depot's environmental policies are formulated by the

company's Environmental Council, consisting of senior-level managers

representing every department in the company.

SOURCE The Home Depot, Inc.

ITEM #2

Title: Home Depot says it aims to save ancient forests

Source: Reuters

Date: August 26, 1999

Byline: June Preston

ATLANTA, Aug 26

(Reuters) - Home Depot Inc. will stop selling goods made from wood cut

in ancient forests in a sweeping policy change aimed at protecting

redwoods, the rain forest and other ecologically sensitive tracts, its

chief executive said on Thursday.

Home Depot, the world's largest home improvement retailer, urged other

retailers to join the effort to save endangered forests and pledged to

hold the line on prices as vendors and customers switch to products

made from alternative materials.

It said it had already informed vendors of the policy change, which

would be completed by the end of 2002 when it would no longer sell

lauan, redwood or cedar from old-growth forests in which trees are

often thousands of years old.

Chief executive Arthur Blank said the company, which had long been the

target of protests by environmental groups, decided to act now because

its dominant position gave it enough clout to effectively change

attitudes that have endangered the world's oldest forests.

``Frankly, given the size of the company today, we have the

opportunity to move the needle,'' he said.

``We have the ability...to make a change in the world. For many years,

when we were smaller, we didn't have that opportunity.''

Home Depot stock closed at 63, down $2.69, on 2,797,300-share volume.

But analysts said the drop was likely not related to the announcement.

``It's more the fact that the stock has had a significant run,''

J.C. Bradford analyst Daniele Donahoe said.

``Home Depot has always been very environmentally conscious. You will

find that their clientele and their investors will respect that.''

Rainforest Action Network has been vociferous in its protests against

Home Depot's sale of old-growth wood products. Mark Westlund, a

spokesman for the environmental group, welcomed the policy change and

said he hoped he would never again need to picket the retailer's

stores.

``Home Depot is taking a leadership role in the U.S. do-it- yourself

industry and we expect that other retailers will follow suit by

phasing out old-growth wood products,'' he said.

A group of shareholders had asked the company at its annual meeting in

May to consider the feasibility of phasing out old- growth timber.

``We certainly think it is a big step in the right direction,''

Conrad MacKerron, a spokesman for the shareholders' group, told

Reuters. ``We're thrilled that they are moving in this direction.''

Blank said eventually Home Depot would like to adopt a policy of

selling only products made from ``certified lumber,'' which the

company defined as material tracked from the forest, through

manufacturing and distribution, to the customer to assure that

harvesting the wood takes into account a balance of social, economic

and environmental factors.

Currently only one percent of lumber sold worldwide is certified, but

Blank said he believes Home Depot can convince vendors they must use

certified lumber.

``Today the world's supply of certified wood is extremely limited,''

Blank said. ``We are asking our vendors to help us by dramatically

increasing the supply of certified forest products.''

He said vendors may initially find it is more expensive to procure

certified lumber and alternative materials -- synthetic woods, for

instance -- could add to production costs. He said Home Depot would

absorb price increases to offset the impact.

``It will not -- will not -- appreciably affect pricing or product

availability,'' Blank said.

He said he did not know what percentage of Home Depot's business would

be involved by the decision, but ``the dollars involved will not be

significant.''

``We will work with our suppliers. We will work with our customers. I

think we will be able to make this work over the next 2 1/2 years,''

he said.

((Atlanta newsroom - 404-327-5787))

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