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2010 ONLINE CSR REPORT

HOME > BE BETTER > OVERVIEW

Be BetterOverview

At Grand & Toy, Corporate Social Responsibility (CSR) is a process of continuous improvement. Each day, we striveto find ways to be better for our environment, our communities and our business. In doing so, we also help othersbe better along the way.

As one of Canada’s leading providers of office solutions, Grand & Toy has an opportunity and a responsibility to lead the way on thesustainability journey. We can make an even bigger impact by inspiring others to make responsible business choices and celebrating thesuccess that comes from demonstrating our commitment to sustainability.

Although we are still in the early stages of our public reporting on CSR activities, our sustainability journey began 128 years ago. We’ve learneda few things since then – most importantly, that there is always room to be better. Our first CSR report, printed in 2008, laid out Grand & Toy’sPillars of Sustainability and identified some of the ways that we would work towards being better in 2009 and beyond.

Our parent company, OfficeMax, is a U.S. publicly traded company. As such, OfficeMax provides its investors and other stakeholders with anextensive annual CSR report. This report is available at http://about.officemax.com/html/officemax_commitments.shtml.

OfficeMax supports Grand & Toy’s CSR initiatives and reporting commitments, and provides valuable input through the sharing of globalbest practices, research methodology and dedicated expertise.

We made significant progress on our 2009 goals and initiatives. Many of them will carry over into this year and beyond. Sustainability is acontinuous journey and ongoing improvement in our key areas of focus will be fundamental to our annual objective-setting process. In termsof our 2009 progress on our sustainability goals, details are included in the table below.


HOME > BE BETTER > OVERVIEW

Be BetterOverview

2009 Goals, Initiatives and Performance


HOME > BE BETTER > LETTER FROM THE COO

Be BetterLetter from the COO

On behalf of all Grand & Toy Associates across Canada and OfficeMax, I am proud to share with you our secondannual Corporate Social Responsibility (CSR) Report. We developed this report to inform our many stakeholdersof our commitment to CSR and the steps we took in 2009 to support our vision of powering the potential ofCanadian businesses to lead the journey towards sustainability.

The theme of this year’s report is Be Better. To Grand & Toy, this means continuously improving our internal processes and practicesto reduce our environmental footprint and strengthen our communities. Just as important as our own internal efforts to be better,we work to continuously bring better solutions to our customers as they address the challenges of operating more responsible andsustainable businesses.

Grand & Toy’s sustainability strategy is driven by our connection to so many Canadian businesses, suppliers, partners and Associates.Their input, ideas and feedback help us to move forward on our collective journey. Internally, our valued Associates have embraced oursustainability vision and responsibility. Eco-Committees help promote sustainability education and awareness across the organization.Fifteen Grand & Toy corporate champions guide actions and initiatives to achieve our objectives. A Steering Committee composed ofthe Grand & Toy Senior Leadership Team provides oversight, approval, resources and accountability for our sustainability results.

Thank you to everyone who has taken a step along our journey over the past year. We have worked together to Be Better and I hope thatour collaboration continues as we aspire to be even better in 2010 and beyond. We have developed clear sustainability goals and objectivesto maintain our positive momentum into the future. These include the expansion of our 48-hour delivery option and our dedicated small-business solutions, the implementation of an internal energy reduction strategy and the development of a Green supply chain strategy.

We look forward to sharing the success stories of Grand & Toy and our customers with you in the coming year. Together we will continueto power the potential of Canadian businesses to lead the journey towards sustainability.

Gary D’AndreaChief Operating Officer


HOME > BE BETTER > BEING BETTER STARTS WITH LISTENING

Be BetterBeing Better Starts with Listening

Achieving our vision of sustainability leadership starts with understanding what our stakeholders expect from usand what other companies are doing to meet the needs of the present without compromising their ability to meetfuture needs.

We engage our sustainability stakeholders in multiple ways, including speaking directly to them. We also survey our Associates from coast tocoast to identify their key questions and areas of concern when it comes to sustainability. Many of our executives participate in industrycommittees and organizations that foster collaboration to address key issues of common interest.


HOME > BE BETTER > ABOUT THIS REPORT

Be BetterAbout This Report

In Grand & Toy’s print and online reporting, the term “Corporate Social Responsibility”, its related acronym “CSR”and the word “sustainability” are used interchangeably to describe initiatives, commitments and behaviours thatare intended to have a positive social, environmental or business impact on future generations.

Grand & Toy’s CSR reporting follows the G3 Guidelines of the Global Reporting Initiative (GRI). The GRI pioneered the development ofthe world’s most widely used sustainability reporting framework for three globally recognized areas of CSR: economic, environmentaland social performance.

Where possible, we provide references to the GRI indicators that relate to specific metrics used to track our performance. The datacollected for this report covers the period from January 1 to December 31, 2009. We have also provided comparative data for 2008,wherever such data is available.

Grand & Toy is committed to reducing our consumption of paper and ink, but we recognize that printed information is sometimes a business necessity. If you require a hard copy of our 2010 Corporate Social Responsibility Report, you can print pages of this site by clicking on the print icon, and our summary report is available for download.


HOME > FOR THE ENVIRONMENT > OVERVIEW

For the EnvironmentOverview

Three of Grand & Toy’s Pillars of Sustainability relate directly to projects and initiatives that will help us ensure thatour natural environment is able to sustain our population.

Progress on some of our 2009 environmental indicators can be found in the table below.

In 2009, global economic factors and our continuedefforts to become a leaner, more efficient andresponsible organization, contributed in part tolower Greenhouse Gas (GHG) emissions and lesswaste during the year, as compared to 2008.Additional initiatives specifically designed toreduce Grand & Toy’s environmental footprintmade up the balance of the Company’s wasteand emissions reductions.


HOME > FOR THE ENVIRONMENT > A BETTER WAY FOR WASTE

For the EnvironmentA Better Way for Waste

Diverting waste from landfill is a key priority in our efforts to reduce Grand & Toy’s environmental footprint.

Since 2009, 100% of our printed marketing materials have used third-party forestry-certified papers. As we continue to enhance our onlineordering services for customers, we have reduced the quantity of printed ordering guides by 50,000 this year.

A simple solution from our IT team delivered a big impact for our waste diversion goals in 2009. By suppressing the auto-print list on a seriesof internal reports and creating an electronic alternative, the team saved the Company from printing an estimated 516,000 pages annually.

We continue to reduce the packaging materials associated with our shipments to customers by utilizing intelligent warehouse managementsoftware that helps to ensure that the proper size carton is used for every shipment, maximizing space and minimizing waste. We also lookto our packaging suppliers to help us find innovative solutions for eliminating waste.

With regards to packaging for our national brand products, Grand & Toy is just beginning to make inroads by partnering with our suppliersto share best practices and reduce our collective use of paper and plastic. One of our Senior Associates is the Co-Chair of the Canadianworking group of the Consumer Goods Forum Global Packaging Project. Using a holistic approach to packaging, this working group wasdesigned to define the overall role of packaging in sustainability.


HOME > FOR THE ENVIRONMENT > BETTER AIR

For the EnvironmentBetter Air

GHG emissions are significant sources of air pollution around the world and one of the biggest contributors toGrand & Toy’s environmental footprint, as a result of our transportation and delivery activities.

48-Hour Delivery Option: Encouraging customers to plan and consolidate theiroffice supply orders to take advantage of a new 48-hour delivery option is oneway that Grand & Toy can help lower the air pollution associated with ourtransportation activities.

Within one month of the 48-hour delivery program launch, nearly 45% of customerschose the new option. This, coupled with a new minimum order charge that discouragessmall-order deliveries, resulted in more streamlined shipping practices and improvedtransportation efficiencies.

In cases where immediate deliveries were required, we balanced the associated emissions with the purchase of 1,899.75 tonnes of CO2

emission offsets from the Carbon Reduction Fund in 2009. While not a long-term sustainable solution, carbon offsets complement Grand & Toy’s actions to reduce our environmental footprint.

A Better Chair for Better Air: In 2009, we partnered with a key supplier to redesign 800 Seriesoffice chairs. A new soy-based foam replaced petroleum-based materials. The chairs are nowfree of chlorofluorocarbons (CFCs) and are GREENGUARD certified to improve indoor air quality.The new foam consumes less energy and emits a lower volume of GHGs during manufacturing.


HOME > FOR THE ENVIRONMENT > A BETTER, GREENER OFFICE

For the EnvironmentA Better, Greener Office

Product innovation and stewardship means a continuous focus on offering environmentally preferable alternativesto the most popular office products.

In 2008, we began a lifecycle analysis project to provide a clear and consistent set of criteria for our GREENOFFICE product identification,to aid customers in their product-purchasing decisions. We increased the availability of environmentally preferable products in our orderingguide from 22% in 2008 to 23% in 2009. We also made important progress in the development of a Partner Code of Conduct designed toencourage our North American suppliers to publicly state their commitment to being more ethical and responsible corporate citizens.


HOME > FOR OUR COMMUNITIES > OVERVIEW

For Our CommunitiesOverview

At the heart of our vision of sustainability leadership are the people who we impact along the journey. Our Pillarsof Sustainability address those people.

We strive to be better for our Grand & Toy Associates and their communities. This means investing in our Associates, motivating themthrough training and feedback, ensuring that our employment practices and policies protect them in the workplace, providing them withfair compensation for the work they do, and listening to their ideas of what we can do to be better employers.


HOME > FOR OUR COMMUNITIES > OVERVIEW

For Our CommunitiesOverview

Progress on some of our 2009 social indicators can be found in the table below.

When our Associates have rewarding careers, they are more likely to become involved in their communities. We encourage communityinvolvement and giving back to those in need. In 2009, Grand & Toy locations across Canada pitched in to help their communities through anannual spring clean-up. Donning gloves, hats and Grand & Toy T-shirts, Associates picked up trash and worked together to make their localenvironment cleaner.

Grand & Toy continues to support KidsFest as ourprimary corporate charity. Activities and support aretargeted to underprivileged children in Canada,providing them with backpacks and school supplies.In 2009, our Associates helped prepare more than3,500 backpacks of supplies, and hand-delivered themto schools across Canada.


HOME > FOR OUR COMMUNITIES > A DAY MADE BETTER

For Our CommunitiesA Day Made Better

Teachers play an important role in every community. They shape future generations by providing theencouragement and motivation that young people need to be their best. In 2009, we launched a program thatrecognizes the contributions and sacrifices made by teachers. Originally introduced by our parent companyOfficeMax, A Day Made Better is a program developed in response to research showing that today’s teachersspend a significant amount of their personal money on supplies for their classrooms.

Grand & Toy invites nominations from students, parents and colleagues for exceptional teachers who have made the lives of theirstudents better through their contributions in the classroom. Grand & Toy Associates surprise winners with the delivery of a new chairand office supplies valued at $1,500.


HOME > FOR OUR COMMUNITIES > YOUTH EMPLOYMENT INITIATIVE

For Our CommunitiesYouth Employment Initiative

At our Ottawa retail location, community members facing barriers to employment are given a chance to betterthemselves through the Youth Retail Employment Program. Funded in part by the federal government, participantsreceive 21 weeks of paid employment at Grand & Toy’s retail store, where they are fully trained in all the aspects of a retail business and also participate in training workshops on other life skills.

The hands-on, real-life work experience provided by Grand & Toy can be the difference in a participant’s ability to secure permanent andmeaningful work. Grand & Toy is proud to support members of the Ottawa community through this program and to hire some of thesuccessful participants as regular Associates.


HOME > FOR BUSINESS > OVERVIEW

For BusinessOverview

A sustainable future depends on sustainable, profitable businesses – those that provide employment to membersof their communities, that contribute to the greater economy, and that operate in responsible ways that protectour natural resources.

Our Pillars of Sustainability include commitments that support the success of our business and that of our customers.

Even during the recent economic downturn, Grand & Toy invested in being better. We worked with our customers to help them streamlinetheir operations and improve business efficiencies with innovative solutions such as e-invoicing, web-based ordering systems and supplierconsolidation. We also followed our own advice. By using the same streamlining approaches that we recommend to our customers, wesucceeded in reducing Grand & Toy’s spending on office supplies by 19%.

A wholly owned subsidiary of a publicly traded corporation, Grand & Toy does not release independent financial statements. For moreinformation on OfficeMax Investor Relations go to http://investor.officemax.com/phoenix.zhtml?c=85171&p=irol-IRHome.


HOME > FOR BUSINESS > NEW SERVICES – BETTER SERVICE

For BusinessNew Services – Better Service

Recognizing that we could take our customer service even further by bringing our expertise to the facility suppliescategory, we launched a new facility supplies unit with four product lines: Cleaning & Maintenance; Food Service &Breakroom; Health, Safety & Security; and Mail, Pack & Ship. These products easily integrate with Grand & Toy’soverall value proposition, providing customers with a streamlined and integrated solution for business products.

In Vancouver, Grand & Toy launched three new Business Centres dedicated to serving the needs of small-business owners. These business-to-business retail outlets are specifically designed to cater to all facets of business, from interiors and technology to traditional office, facilityand imaging solutions, as well as business services and networking events – all with a uniquely small-business approach and service.


HOME > FOR BUSINESS > BE BETTER PARTNERS

For BusinessBe Better Partners

As a strategic partner to hundreds of thousands of companies across Canada, Grand & Toy recognizes that we havea role to play in providing information, education and training that will empower our customers to be leaders ontheir sustainability journeys.

Last year, Grand & Toy hosted 42 “Lunch and Learn” sessions for customers highlighting environmentallypreferable products.

Today, all information and education offered by Grand & Toy is subject to the Company’s Guide to Avoiding Greenwashing. This is apublished guide for marketers and third-party contractors and is intended to help them ensure that representatives of Grand & Toy avoidmaking any unjustified environmental claims and clearly understand the facts, attributes, verification and certification processes forenvironmentally preferable products.

Our position as one of Canada’s leading providers of office solutions also gives us an opportunity to help our customers learn from eachother by sharing best practices in corporate sustainability. Customer partnership case studies demonstrate the advantages of workingtogether to achieve sustainability goals in the workplace.

University of Alberta

Stantec

Kingston Police Headquarters

From assisting companies to pursue Leadership in Energy and Environmental Design (LEED®) certification, to helping some of Canada’s leadingfinancial, educational and public institutions to improve their supply chain practices, our Business Solutions Advisors (BSAs) take a holisticapproach to the procurement of office solutions. Working with our customers, our BSAs look at what our customers order, how they orderand how they receive their orders, to help them make the right choices to meet their environmental, social and business needs.


HOME > BE EVEN BETTER

Be Even BetterGrand & Toy has taken bold and ambitious steps on the journey towards sustainability leadership. Being bettermeans pushing forward on that journey and finding new ways to advance sustainability practices for the benefit ofour environment, our communities and our business.

GRI INDICATOR FOCUS AREA KPI DETAILS 2008 DATA 2009 DATAMATERIALS

EN1 Corrugate lbs of corrugate purchased for shipment of customer orders 2,065,622 1,734,867

EN2 % of post-consumer recycled waste in corrugate boxes 85% 80–85%

EN1 Shrink Wrap lbs of shrink wrap used for customer orders NT 27,665.23

EN1 Air Pillows lbs of air pillows used for customer orders NT 17,888

EN1 Shipping Envelopes lbs of courier envelopes ordered during the year NT 11,217

EN1 Paper reams of paper consumed for internal purposes 19,683 14,467

lbs of paper consumed for external purposes excluding printed ordering guide NT 140,843

EN1 Ink and Toner # of ink and toner cartridges consumed for internal purposes 1,785 1,952 NOTE 1

WASTE AND RECYCLINGEN27 Corrugate lbs of corrugate recycled 1,456,026 1,926,034

EN27 Shrink Wrap lbs of shrink wrap recycled 19,030 86,196

EN27 Mixed Recycling lbs of mixed recycling recycled 166,865.6 146,168

EN27 Scrapwood lbs of scrapwood recycled 17,050 22,902

EN27 Skids lbs of wooden skids recycled NT 958,530

EN27 Paper lbs of paper recycled 176,264 122,430

EN22 Waste Diversion Grand & Toy's national waste diversion rate 69.02% 77.30%

ENERGY AND INFRASTRUCTUREEN11 Land # of retail locations nationwide 45 36 NOTE 2

square footage of G&T property (owned and leased) 1,158,365 1,126,308

# of sales offices and distribution centres nationwide 29 29

EN4 Energy kWh consumed by retail locations 1,754,731.88 1,194,934 NOTE 2

EN3 m3 natural gas consumed by retail locations 43,061.77 39,078 NOTE 2

EN4 kWh consumed by all other locations 11,446,388.11 10,517,137 NOTE 2

EN3 m3 natural gas consumed by all other locations 1,214,894.58 1,127,706 NOTE 2

TRANSPORTEN3/EN29 Air Travel # of one-way flights for business NT 1,621

# of km travelled by airplane NT 2,175,277.90

EN3/EN29 Owned Fleet # of owned trucks 134 127

L of diesel fuel consumed for customer deliveries 363,962.20 387,507.07

L of gasoline fuel consumed for customer deliveries 585,097 491,922.45

EN3/EN29 Dedicated Fleet # of dedicated trucks reserved for G&T deliveries 94 81

L of diesel fuel consumed for customer deliveries 156,554 153,630

L of gasoline fuel consumed for customer deliveries 591,883 453,090

EN3/EN29 Line Hauls # of line haul shipments NT 315,981

# of km travelled NT 13,928,775.11

weight of all shipments in lbs NT 80,660,834

GHG EMISSIONSEN16 Emissions Scope 1 emissions (in tonnes of CO2) 4,177.70 3,705.97 NOTE 3

Scope 2 emissions (in tonnes of CO2) 4,809.11 4,362.53 NOTE 3

Scope 3 emissions (in tonnes of CO2) NT 222.17 NOTE 4

EN18 reductions in Scope 1 GHG emissions over previous year (in tonnes of CO2) NT 471.74 NOTE 4

EN30/EN13 carbon offsets purchased (in tonnes of CO2) 0 1,899.75 NOTE 5

EN17/EN20/EN19 Other Relevant Emissions GHG emissions from rail transport of products (in tonnes of CO2) NT 6,822.43

INTERNAL STREAMLINING– Internal Supplies # of internal supply orders placed nationwide 4,714 3,331 NOTE 6

EN14 % of products on internal procurement list that are identified as environmentally preferable NT 28.5%

environmentally preferable product purchases as % of total purchases nationwide NT 19.9% NOTE 7

% of printed marketing materials that are third-party forestry certified papers NT 100%

EN14 Ordering Guide weight of customer ordering guide in lbs 830,000 667,976

CUSTOMER PROGRAMS– 48 Hour # of orders delivered with 48-hour delivery option NA 313,612

EN26 e-invoicing % of new accounts that selected e-invoicing as default 38.7% 40.4%

e-invoicing adoption rate per year 5.2% 6.4%

internal paper savings as a result of e-invoicing program (in pages) 147,494 157,927

SO1 GREENOFFICE Lunch and Learns # of GREENOFFICE Lunch and Learns conducted 35 42

# of participants reached NT 345

SO1 Customer Events (Large) # of customer sustainability events conducted nationwide 0 1

# of attendees for all events NT 200

SO1 Customer Events (Small) # of customer sustainability events conducted nationwide NT 23

# of attendees for all events NT 460

EN26/EN27 THINK Program # of ink and toner cartridges recycled for customers 276,393 433,242

EN26/EN27 Customer Case Studies # of sustainability-related case studies published for customers 0 3

PR1 Products # of products in ordering guide identified as environmentally preferable 1,503 1,554

– # of products in ordering guide 6,721 6,791

PR3 environmentally preferable products in ordering guide as % of all products in ordering guide 22% 23%

EN2 Paper % of copy paper sales that bear internationally recognized forest and manufacturing environmental certifications 98% 99%

– % of total copy paper sales that contained 30% post-consumer recycled waste content 14.9% 20.7%

EMPLOYMENTLA1/LA13 Total Workforce total workforce by employment type, contract and region (excluding contractors) 2,011 1,721 NOTE 8

LA3/EC3 Benefits benefits provided to full-time Associates that are not provided to temporary or part-time Associates (by major operation) Pension Plan, Group Benefit Plan, Pension Plan, Group Benefit Plan,Exceptions and Employee Exceptions and Employee Assistance Program Assistance Program

LA4 Collective Bargaining % of Associates covered by collective bargaining agreements 21.5% 21%

– Five-Year Associates % of Associates with five or more years of tenure 50.8% 55%

– Ten-Year Associates % of Associates with 10 or more years of tenure 34.3% 41%

LA5 Minimum Notice for minimum notice period regarding operational changes, including whether it is specified in collective agreements No change No changeOperational Changes

LA6 Formal Joint Management-Worker % of workforce represented in formal joint management-worker health and safety committees that help monitor and advise on 6.4% 6.6%Health and Safety Committees occupational health and safety programs

LA7 Rates of Injury # of Associate medical aid incidents 2 4

# of Associate restricted work incidents 25 25

# of Associate lost-time incidents 33 40

# of Associate fatalities 0 0

# of Associate recordable injuries 60 69

LA10/LA8 Training # of hours of training undertaken by all Associates 2,124 1,056 NOTE 9

– average # of hours of sales training per sales Associate 5.93 3.44 NOTE 9

– Continuing Education # of Associates who participated in Continuing Education program 18 18

LA11 Tuition Reimbursement programs for skills management and life-long learning that support the continued employability of Associates and assist them in Tuition Reimbursement Program Tuition Reimbursement Programmanaging career endings

LA12 Performance Reviews % of Associates receiving regular performance and career development reviews 70.2% 72%

ETHICAL BUSINESS PRACTICESSO2 Business Risk Audits % of business units analyzed for risks related to corruption (Retail/DC) 33%/57% 31%/43%

SO3 Tipline # of Associate-identified incidents through the G&T Tipline program 8 4

SO4 Incidents of Corruption # of incidents of corruption 14 10

HR1 Supplier Screening % of significant investment agreements that include human rights clauses or have undergone human rights screening 100% 100%

REGULATORY AFFAIRSSO6 Political Contributions monetary value of financial and in-kind contributions to political parties, politicians and related institutions by country (in Canadian $) 0 0

SO7 Legal Actions # of legal actions for anti-competitive behaviour, anti-trust and monopoly practices and their outcomes 0 0

SO8 Non-Compliance Fines monetary value of significant fines and # of non-monetary sanctions for non-compliance with laws and regulations (in Canadian $) 0 0

SOCIAL OUTREACH SO1 Charitable Organizations # of organizations supported nationwide through charitable donations or sponsorships 51 152

– monetary value of donations given for ad hoc donations (in Canadian $) $229,739.46 $170,923.69

EC8 Bryan Bridges Scholarship # of Associates or children of Associates who received the Bryan Bridges Scholarship 3+2 renewals 3+2 renewals

EC8 KidsFest Backpack Day # of backpacks packed by G&T Associates 2,400 3,500

# of backpacks donated to children across Canada 4,650 5,000

monetary value of donated Associate time for the Backpack Day (in Canadian $) $30,937.00 $33,472.50

EC8 A Day Made Better # of applications received NA 7

# of teachers surprised 1 3

LEGENDNT Not TrackedNA Not Available– No Relevant GRI Indicator

The data in this charthighlights Grand & Toy’sCorporate SocialResponsibility performancemetrics. Where possible,we have providedreference to the GlobalReporting Initiative (GRI)indicators that relate tospecific data, in additionto our internal metrics.Comparative data for 2008has also been provided.

For more information visitour website at:WWW.GRANDANDTOY.COM/CSR2010

NOTE 1Increase due to expanded business needs.

NOTE 2Decrease due to implementation of newbusiness strategy.

NOTE 3Reduction in GHG emissions from facilitieswas due to implementation of a new businessstrategy. Calculations provided for 2008 arere-stated from the previous year’s reportwith improved accuracy due to new data.

NOTE 4GHG emissions were calculated using GHGProtocol Initiative Methodology and Tools.

NOTE 5Purchased through Summerhill Carbon tooffset next-day deliveries.

NOTE 6Decrease due to internal streamlining initiativeand other initiatives intended to moreefficiently manage G&T’s key office spend.

NOTE 7Environmentally preferable products aredefined as products that contain a minimumof 30% post-consumer waste, are certifiedby a recognized environmental or socialthird-party organization, or encourage moreresponsible behaviours than theirtraditional alternatives.

NOTE 8Efforts to increase efficiency and productivity,combined with the use of technology thatsupports continuous improvement resulted ina reduction in the total number of Associates.

NOTE 9In 2008, we reported an incorrect numberof training hours per Associate. This numberhas been updated for accurate comparison.The decrease in training hours for 2009 isattributed to G&T’s efforts to minimizethe effects of the economic recession onour operations.

Documents

Be Bettergrandandtoy.com/sites/corp/5337_web/downloads/2010... · Our parent company, OfficeMax , is a U.S. publicly traded company. As such, OfficeMax provides its investors and