Redesign Whole Foods Annual Report

A

GREEN MISSION Whole Foods 2012 Green mission report.

We are passionate about food, good health and the future.

B

Our first-ever green mission report provides an overview of the many areas we focus upon as a company to help lessen our impact on the environment, as well as how we give back to our local and global communities.

For most of green programs and initiatives, we have goals and metrics in place.

Letter

Introduction

>>

Whole Foods Market’s Green Mission

Organic and Natural Foods

DEAR FELLOW STAKEHOLDERS: This was the best year in our company’s

— John Mackey Co- CEO

— Walter Robb Co- CEO

trends and improved credit metrics resulted

32-year history. We delivered our strongest

in two corporate rating upgrades from

financial performance, breaking records on

Standard & Poor’s, and we are rated invest-

many levels. Our sales approached $12 bil-

ment grade once again.

lion, translating to sales per gross square

With confidence that we are well posi-

foot of $932. We opened 25 new stores,

tioned to maintain a healthy cash reserve

expanding into eight new markets, and

and internally fund our accelerated new store

increased our ending square footage 8%

growth, subsequent to the fiscal year end,

to 12.7 million. We reported our eleventh

our Board of Directors increased our quar-

consecutive quarter of comparable store

terly dividend by 43% to $0.20 per share,

sales growth of 7.8% or better, improved

granted an additional $300 million in stock

operating margin 94 basis points to 6.4%,

repurchase authority, and declared a special

generated over $1 billion in EBITDA, and

dividend of $2 per share.

grew diluted earnings per share by 31%

Our pace of store openings is accelerat-

to $2.52. Our stellar results substantially

ing, and we are very pleased with how well

exceeded our own expectations, as well as

our newer stores are performing. We opened

Wall Street’s, driving our stock price to a

a record number of new stores in 2012 and

new all-time high of $101.86 and resulting

expect this to continue into 2013 and 2014

in a 31% increase for the calendar year ver-

as well. For the last six quarters, on aver-

sus the 13% increase for the S&P 500 Index.

age our new store class consisted of 22

Our solid execution, capital discipline,

stores open for approximately six months.

and increasing stock price generated

At 38,000 square feet in size, they pro-

$1.3 billion of cash during the fiscal year

duced average weekly sales of $564,000

through a combination of $920 million in

translating to sales per square foot of

cash flow from operations and $370 mil-

$777, and generated a contribution margin

lion in proceeds from team member stock

of approximately 6%. These outstanding

option exercises. We invested $456 million in

results, combined with lower average cap-

new and existing stores, returned $95 million

ital investment and reopening expenses per

in quarterly dividends to our shareholders,

store, are driving solid returns. By year end,

and repurchased $29 million of common

our return on invested capital for compara-

stock. Our total cash and investments nearly

ble stores less than two years old was 16%,

doubled over the prior year, increasing $745

our highest result since 2004.

million to $1.5 billion. Our strong operating

02 Our Products

Our Green Mission

We walk our talk when it comes to our core values Our 73,000 team members are the heart and soul of our company, and our “notso-secret ” sauce. Last January, we were extremely pleased to be ranked #32 on Fortune’s list of the “100 Best Companies to Work for in America.” To be one of only 13 companies ranked consecutively for 15 years validates our commitment to our Core Value of ‘Supporting Team Member Happiness and Excellence.’ We created over 8,500 new jobs this past year, and team member morale is very high.

In addition, our foundations and Local Producer Loan Program continued to expand their good works. Whole Planet Foundation, whose mission is to empower the poor through micro-credit in communities that supply our stores with product, has partnered with various micro finance institutions to facilitate over $32 million in company, team member, supplier and

Looking Ahead—Together

than 1,500 salad bars have been provided to schools around the country through the partnership between Whole Foods Market, Whole Kids Foundation, and Let ’s Move Salad Bars to Schools. And, since making the first loan through our Local Producer Loan Program in February 2007, we now have loaned more than $7 million to 121 local producers across the country.

When the first Whole Foods Market opened in September 1980, we had no idea that we would become the 8th largest public food and drug retailer in the U.S., ranking No,264 on the Fortune 500, with over 340 stores in the U.S, Canada, and the U.K. We are more passionate than ever about our future and the positive impact we can make in the world by helping the natural and organic foods industry grow and succeed, educating our customers about

O u r s ta ke holde r ph i lo s ophy

healthier lifestyles, and We see tremen-

O u r “ b ot tom l i ne” u lt i ma te ly

dous opportunity ahead and look forward

de p e nd s on ou r a bi l it y to s a t i s f y a l l

to continuing on the journey with you.

of ou r s ta ke holde r s . O u r go a l i s to

customer-funded grants to micro-lend-

b a la nce t he nee d s a nd de s i re s of

ing projects in 53 countries. Whole Kids

ou r c u s tome r s, te a m me m b e r s,

FoundationTM , dedicated to improving

sha re holde r s, s uppl ie r s, com mu n i-

children’s nutrition by supporting schools

t ie s a nd t he e nv i ron me nt wh i le

and inspiring families, celebrated its first

c re a t i ng va lue f or a l l . B y g ro w i ng

anniversary. Through the generosity of

t he col le c t ive pie, we c re a te la r ge r

customers, team members, suppliers and

s l ice s f or a l l of ou r s ta ke holde r s .

community donors, nearly 1,000 schools

O u r core va lue s re f le c t, t h i s s e n s e

in the U.S. and Canada received school

of col le c t ive f a te a nd a re t he s ou l of

garden grants in 2012, and to date, more

ou r comp a ny.

03

01

Introduction /07

About company / 08

02

Whole Foods Market’s Green Mission /15

Highlights from 2010—2011 / 19

03

Organic and Natural Foods /20

We’re a Certified Organic Retailer /24

Our Quality Standards / 26

04

Our Products /28

Produce / 33

5-Step Animal Welfare Rating System / 36

05

Our Green Mission /45

Waste Reduction / 46

Responsible Packaging and Supplies / 49

Renewable and Alternative Energy /50

Green Building and Design / 52

LEED, Green Globes and GreenChill / 54

Community partnering / 58

Feeding the homeless / 59

06

Looking Ahead—Together /60

01

>> INTRODUCTION >> About company / 08

Letter

>>

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

ABOUT OUR COMPANY Whole Foods Market is the world’s lead-

Our commitment to the environment is embraced as one of our Core Values, yet this dedication to a thriving, healthy planet is not confined to a few key topical areas.

our food and the health of our bodies are

ing retailer of natural and organic foods

directly related to the purity and health

and America’s first national “Certified

of our environment, our core mission is

Organic” grocer. Unless otherwise speci-

devoted to the promotion of organically

fied, references to “Whole Foods Market,”

grown foods, healthy eating, and the sus-

“Company,” or “we” in this Report include

tainability of our entire ecosystem. Through

the Company and its consolidated subsid-

our growth, we have had a significant and

iaries. The Company was formed in 1980

positive impact on the natural and organic

and is based in Austin, Texas. We com-

foods movement throughout the United

pleted our initial public offering in January

States, helping lead the industry to nation-

1992, and our common stock trades on the

wide acceptance over the last 32 years.

NASDAQ Global Select Market under the

symbol “ WFM .”

We have one operating segment, natural and organic foods supermarkets. We are

Our Company mission is to promote the

the largest retailer of natural and organic

vitality and well-being of all individuals by

foods in the U.S. and the 11 th largest food

supplying the highest quality, most whole-

retailer overall based on 2011 sales rankings

some foods available. Since the purity of

from Progressive Grocer. As of September

08 Our Products

Our Green Mission

Looking Ahead—Together

30, 2012, we operated 335 stores in the

products. We estimate our stores carr y

United States, Canada, and the United

on average approximately 21 ,0 0 0 SKUs ,

Kingdom . Our stores average 3 8 ,0 0 0

and we estimate over 30% of our food

square feet in size and 10 years in age, and

s a l e s were organic in fiscal year 2012

are supported by our Austin headquar-

(excluding seafood which does not have

ters, regional offices, distribution centers,

organic standards) 1 .

bakehouse facilities, commissary kitch-

Whole Foods Market defines natural

ens, seafood-processing facilities, meat

foods as foods that are minimally pro-

and produce procurement centers, and a

cessed, largely or completely free of

specialty coffee and tea procurement and

artificial ingredients, preservatives and

roasting operation1 .

other non-naturally occurring chemicals

According to Nielsen’s TDLinx and Progressive Grocer, the U.S. grocery industry, which includes conventional supermarkets, supercenters, limited-assortment and natural/ gourmet-positioned supermarkets, had approximately $584 billion in sales in 2011, a 3.8% increase over the prior year. Within this broader category, natural product sales through retail channels were approximately $73 billion, a 10% increase over the prior year, according to Natural Foods Merchandiser, a leading trade publication for the natural foods industry. We believe the growth in sales of natural and organic foods is being driven by numerous factors.

Di f ferent iated Product Of fer i ng We offer a broad and differentiated selection of high-quality natural and organic p ro d u c t s with a s tro n g e m p h a sis o n perishable foods. Our product selection includes, but is not limited to: produce, grocery, meat and poultry, seafood, bakery, prepared foods and catering, specialty (beer, wine and cheese), coffee and tea, nutritional supplements, vitamins, body care, educational products such as books, floral items, pet product s and household

1. Charts on page 10

09

and as near to their whole, natural state as possible. Organic foods are foods grown through methods that emphasize the use of renewable resources and the conservation of soil and water to enhance environmental quality. All products labeled as organic and sold within a retail store or used within the production of foods labeled as organic must be verified by an accredited certif ying agency. Organic equivalency arrangements in the U.S., Canada, and the European Union help protect organic standards, enhance cooperation, and facilitate

The grow th in sales of natural and organic f o o d s i nc lude: He ighte ne d a w a re ne s s of t he role t ha t he a lt hy e a t i ng pla y s i n long- te r m we l l ne s s A b e t te r- e duca te d a nd we a lt h ie r Populace whose median age is increasing e a c h ye a r

trade in organic products. Furthermore, all

I nc re a s i ng con s u me r conce r n ove r t he pu r it y a nd s a f e t y of f o o d

retailers that handle, store and sell organic

E nv i ron me nta l conce r n s

products must implement measures to protect organic integrity.

O r ga n ic f o o d pro duc t s a re pro duce d u s i ng : Livestock management practices that promote healthy, humanely treated an imals by

Ou r Qua l it y Sta nda rds

providi ng organically grow n feed, f resh air

We aspire to become an international

a n d o u t d o o r acce s s wh i le u s i ng no a nt i biot-

brand synonymous with not just natural and organic foods, but also with being the highest quality food retailer in every community in which we are located. We believe

ic s or g ro w t h hor mone s Agr icultural management practices that prom o t e he a lt hy e co s y s te m s a nd proh i bit t h e u s e of genetically modif ied seeds or crops, sewage s ludge, long-la s t i ng p e s t ic ide s, he r-

our strict quality standards differentiate

b i c i d e s o r f u ng ic ide s

our stores from other supermarkets and

Fo o d-pro ce s s i ng pr ac t ice s t ha t prote c t t he

enable us to attract and maintain a broad

integr it y of t he or ga n ic pro duc t a nd d i s a l l o w

base of loyal customers.

i r r ad ia t ion ,ge ne t ica l ly mo d if ie d or ga n i s m s (“GMO s”) or s y nt he t ic pre s e r va t ive s

Letter

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

Ou r core va lues Promoting the health of our stakeholders Lo n

through healthy eating education

g -liv ed a

Selling the highest quality natural and

-p

er

is

ha

33 bl

.5

les ab ish er rp

S u p p o r tin g te a m m e m b e r h a p pin e s s

he

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Satisfying and delighting our customers

Ot

t

N

47 .7 %

s , ne

4.1% C A N+U K

s set

organic products available

%

es pe rce

95.9% U.S.

by pro

a n d excellence

duc t

Creating wealth through profits and growth

18.8%

Caring about our communities and our

Prepared foods and bakery

e nviro n m e nt

an n pe ual s a l rc e n es tag

e

2010

n

ales tage s

O

th

er

pe

ris

t uc od

%

ha

bl

Pe

.0

es 96

% .8 .S. U

Sum mer y of our an nual percentage asles and net long-lived assets by geograph ic area and sum mar y

2012

4.1% CAN+U K

Lo

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d

a

e ss

ts

,n

et K

48

rc

en

ta

ge

uc t

3.

C 2% A N +U

ro d

33.2 % Non -perishables

tag

yp

.9% U. S.

ce n

sb

96

per

le e sa

sa

le

s

4.1% C A N+U K

pr

2011

by

C 18.8% Prepared foods and bakery

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ab

ed

s,

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N 3 .1 % +U K

liv

et

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s as

ish

%% .9 95 S .

U.

97.0 % U. S.

rc a n en nu ta a sa ge l le s

with our suppliers et

Non-perishables

pe

Creating ongoing win-win partnerships

48 .

Ot 2% he rp er

% 3 .0 +U K

N CA

of an nual percentage sales by product categor y

18 d % . 8 a re ep Pr fo

9 5 .2 % U.S .

pe

al nu ge an ta les n e sa rc

od sa nd ba ke ry

10 Our Products

Our Green Mission

11

Looking Ahead—Together

Store Bra nds

W hole T rade® Gua ra ntee

Our nationally driven store brands cur-

Products with the Whole Trade Guarantee

Program, we have established a budget of

rently feature approximately 2,700 SKUs

label are sourced from developing coun-

up to $10 million to promote local food production, and as of September 30, 2012, we

led by our primary brand, 365 Everyday

tries and meet our high quality standards,

Value®, along with a grouping of “exclu-

provide more money to producers, ensure

had disbursed more than $7.3 million in

sive” and “control brand” products. While

better wages and working conditions for

loans to 121 local producers company-wide.

some of our store brands yield greater mar-

workers, and utilize sound environmental

gins than their national brand alternative,

practices. Approximately 250 products

their primary purpose is to help differenti-

carry our Whole Trade Guarantee seal, and

ate our product selection and provide more

demand for these products continues to

value offerings to our customers. In addi-

grow. Whole Foods Market donates 1% of

tion to our nationally driven programs, we

sales of these products to Whole Planet

have a number of store-made and region-

Foundation® to help alleviate world poverty.

ally made fresh items sold under the Whole Foods Market label, and we offer specialty

Loca l ly Grow n

A n i ma l Wel f a re Whole Foods Market is dedicated to promoting animal welfare on farms and ranches. We encourage innovative animal production practices that improve the lives of animals raised for meat and poultry in our stores. We also have strong standards for food safety at processing. Work on our “animal compassionate” standards started

and organic coffee, tea and drinking choc-

We are committed to buying from local

olates through our Allegro Coffee Company

producers whose products meet our high

in 2003, and development of an additional

subsidiary. Store-branded products across

quality standards, particularly those who

tiered standards program transitioned to

all categories accounted for approximately

are dedicated to environmentally friendly,

the Global Animal Partnership founda-

11% of our retail sales for both fiscal years

sustainable agriculture. For some stores,

tion in 2008. Global Animal Partnership’s

“local” is defined as within a certain mile

5-StepTM Animal Welfare Rating system

radius, and for others, it means within

standards have been developed for cattle,

2012 and 2011.

Hea lt h Sta r ts Here®

the metro area, state, or tristate area.

pigs, chickens, and turkeys and are under-

We are offering an increasing selection of

Buying local allows us to offer our shop-

way for other species as well. As of 2011, our

products in our stores meeting the Health

pers the freshest, most flavorful pick of

meat departments in all U.S. stores reflect

Star ts Here nutritional and ingredient

seasonal products; it bolsters local econ-

these certifications.

standards. Health Starts Here is a mind-

omies by keeping money in the pockets

ful approach to healthy eating rooted in

of community growers, and it contributes

four simple ways to build better meals –

to responsible land development and the

Whole Food, Plant-StrongTM , Healthy Fats,

preservation of viable green spaces. Whole

and Nutrient Dense. Products such as fro-

Foods Market currently purchases pro-

zen items, breads and prepared foods that

duce from more than 2,000 different farms

meet these guidelines carry our “Health

through various suppliers, and in fiscal year

Starts Here” logo. In addition, all of our

2012, approximately 26% of the produce

stores feature signage on the Aggregate

sold in our stores came from local farms.

Nutrient Density Index (“ANDI® ”), a pro-

In addition, under our Local Producer Loan

prietary scoring system that ranks foods based on nutrient density per calorie.

Letter

Introduction

Whole Foods Market’s Green Mission

Sea food Susta i na bi l it y

Organic and Natural Foods

Customers

We continue to collaborate with the Marine

even higher with our Premium Body CareTM

Unlike shoppers at conventional grocery

Stewardship Council (“MSC”) to offer as

standards and logo. This additional tier

stores, we believe many of our customers

much MSC-certified seafood as possible,

of premium standards meets our strictest

connect with us on a deeper level because

and in September 2010, we expanded our

guidelines for quality sourcing, environ-

of our shared values and, for this reason,

seafood sustainability work by launching a

mental impact, results and safety and was

continue to shop with us even in uncertain

color-coded seafood sustainability ratings

designed to evolve as new science-based

economic times. Based on our research, we

program developed by partnering organi-

studies and research come to light. In

believe our customers can be segmented

zations, Blue Ocean Institute and Monterey

addition, as of June 2011, all health and

into four broad categories. Conscionable embody the Core Values of Whole Foods

Bay Aquarium. Ratings are based on key

beauty products sold in our stores that

criteria for sustainable fisheries using sci-

make organic claims are certified to one

Market; they suppor t social and envi-

ence-based, transparent ranking methods.

of two standards: the USDA’s National

ronmental initiatives and are frequent

Deepening our commitment to fully sus-

Organic Program or NSF International’s

shoppers who spend the with our vendors

tainable seafood departments, in April

305 Standard for Personal Care Products

and producers to ensure both mutual suc-

2012 we phased out all wild-caught sea-

Containing Organic Ingredients.

cess and an abundance of customer choices;

food from “red-rated” fisheries. Farmed seafood at Whole Foods Market carries

Eco - Sca le T M

how we help customers and Team Members adopt healthier approach to eating and life-

the “Responsibly Farmed” logo to indicate

In April 2011, we introduced our exclusive

that farms have passed an annual third-

Eco-ScaleTM rating system and became the

initiatives and prepared foods; and how we

party audit to ensure they meet our quality

first national retailer to launch its own com-

partner with our communities on a local,

standards, which remain the highest in the

prehensive set of green cleaning standards

national and global level. Yet we haven’t told

industry. With these ratings and standards,

to help shoppers make informed choices for

all of these stories through the focused lens

customers have the information they need

their homes and the planet. Under our Eco-

of our green mission and our role as a corpo-

to make informed decisions about their

Scale rating system, all household cleaning

rate citizen in a complex world.

seafood purchases.

products in our stores are required to list

Largest proportion of their monthly

all ingredients on their packaging, a label-

W hole Body T M Sta nda rds

grocery bill with us. Organics buy organi-

ing practice not currently required by the

cally grown food as a way to maintain their

We believe the quality of the items and

U.S. government. This color-coded rating

personal health and for food safety rea-

ingredients people apply to their bod-

system allows shoppers to easily identify a

sons. Foodies equate food with love and

styles with our Health Starts Here education

ies topically is as important as the food

product’s environmental impact and safety

are frequent shoppers who shop our stores

they put into their bodies. While our basic

based on a red-orange-yellow-green color

for selection, value and convenience, and

standards for supplements and body care

scale. We are committed to working with

Experientials are driven to Whole Foods

products already set us apart, ensuring

our vendors to evaluate and independently

Market for unique products and special

high quality and organic integrity in non-

audit every product in our cleaning cate-

occasion items.

food products, we have raised the bar

gory, and all national brands in our stores meet our baseline orange standard.

12 Our Products

Our Green Mission

Looking Ahead—Together

Seasona l it y The Company’s average weekly sales and gross profit are typically highest in the sec74 4

ond and third fiscal quarters and lowest in the fourth fiscal quarter. Average weekly sales and gross profit are typically lower in

11.7

the first fiscal quarter due to the product mix of holiday sales, and in the fourth fiscal quarter due to the seasonally slower sales

548

10.1

438

9.0 8 .0

8 .0

during the summer months.

236

284

Grow t h St rateg y We are a Fortune 500 company, ranking number 264 on the 2012 list. Our sales have

Net Sales (in Billions)

Operating Income (in Millions)

grown rapidly due to historically strong Free Cash Flow* (in Millions)

identical store sales growth, acquisitions

Earnings per Diluted Share

and new store openings from approxi-

2 . 52

mately $92. 5 million in fiscal year 1991,

463

excluding the effect of pooling-of-interests transactions completed since 1991,

390

1. 93

32 8

to approximately $11.70 billion in fiscal

1.4 3

year 2012, a 21- year compounded annual growth rate of approximately 26%.

27 3

0. 8 2

19 4

Identica l store sa les g row th F isca l yea r 2012 was a 53-week yea r. *T he Compa ny def i nes F ree Cash F low as net cash prov ided by operati ng activ ities less capita l ex pend itu res.

2008 2009 2010 2011 2012

0. 8 5

13

02

>> Whole Foods Market’s Green Mission >> Highlights from 2010—2011 / 19

Letter

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

WE HELP CREATE AND SUSTAIN A HEALTHIER FOOD SYSTEM BY FEATURING A WIDE ARRAY OF ORGANIC AND NATURAL PRODUCTS

The people who work in W hole

We have long employed a stakeholder

rigorous Quality Standards; how we partner

approach to managing our business, one

with our vendors and producers to ensure

that places the business within a system

both mutual success and an abundance of

of exchanges , with myriad interde -

customer choices; how we help custom-

p e n d e n cies. Just as we employ a systems

ers and Team Members adopta healthier

approach system and as citizens of the

approach to eating and lifestyles with our

world, hope to leave it a better place than

Health Starts Here education initiatives and

the one we inherited.

prepared foods; and how we partner with our

This is our first Green Mission report. We

communities on a local, national and global

Food s a re passiona te a bout

think we tell many stories well, for example,

level. Yet we haven’t told all of these stories

food, good health and the

how we help create and sustain a health-

through the focused lens of our green mis-

f uture of this little blue dot

ier food system by featuring a wide array of

sion and our role as a corporate citizen in a

that we all call home.

organic and natural products vetted by our

complex world.

16 Our Products

Our Green Mission

17

Looking Ahead—Together

Whole Foods Market operates with

such as recycling and re- sponsible energy

a decentralized business structure. Why

use; most stores have a “Green Mission” team,

We are making great progress in capturing benchmark metrics, and look forward to

mention this in a report on sustainability ini-

and several of our regions devote part-time

reporting accurate electricity and refriger-

tiatives? Partly to help explain differences

or full-time positions for Green Mission

ants usage in 2013.

between us and other Fortune 500 compa-

Specialists to educate Team Members and

As with any debut effort, we are aware

nies. One of the guiding principles of Whole

promote the company’s Green Mission goals.

that opportunities for improvement on our

Foods Market is empowerment. We leave a

Self-managed Green Mission task forces

reporting will present themselves over time,

lot of decisions up to our Team Members, our

work on sustainability initiatives includ-

both with the report itself, and the business

stores and our regions.

ing packaging, energy reduction and waste

processes and thinking behind it. In this

Our internal store departments, or teams,

diversion campaigns. A team of key leaders

report we’ve done our best to highlight

stores and regions innovate and compete

in several functional areas across the com-

green mission pro- grams or information

within and amongst themselves while main-

pany coordinate and advocate the company’s

that each of our stakeholders will find mean-

taining a great deal of autonomy, and we find

main Green Mission goals. These individuals

ingful. With your constructive feedback, we

that this helps create a company culture with

include the Global Vice Presidents of Store

can better tailor the information you wish

an almost built-in innovation and idea replen-

Development and Construction, Purchasing,

to see from us in the future. As a learning

ishment system.

Transportation and Logistics,

organization, we very much look forward to

This creativity allows the entire business

as well as the Global Leader of Sustain-

to address the continually changing compet-

able Engineering, Maintenance & Energy

ers about the information that follows and

itive environment.

Management. Two of our Regional Presidents

our retail efforts in general.

We strive to maintain our decentralized

and several regional Green Mission Specialists

structure even as we’ve grown, even when

round out the Green Mission Leadership

we’ve realized that centralizing many of our

Team. This nonstandard approach has been

common functions might streamline core

ef fective in driving progress throughout

business processes and increase efficien-

the company in a voluntary or opt-in manner.

cies. In summary, we balance the innovation

And, to be perfectly transparent, because of

and dexterity required in today’s market-

this approach we also end up with gaps that

place against possible cost-savings and an

we intend to address going forward.

increasingly hierarchical and rules-bound business structure.

Our decentralized company struc-

This initial report will contain more qualitative than quantitative sustainability measures. Because of our decentralized

ture, in part, explains our initial approach

business structure, data capture and regular

to reporting on our sustainability initia-

reporting on some sustainabilties.

tives. We approach these efforts differently,

it measures has yet to roll out in each of

too. Instead of a Director of Sustainability

our 12 regions. Also, we’ve grown mainly by

or an Environmental Committee within the

buying other companies and developing new

Board of Directors, environmental stew-

stores that are unique to their setting and

ardship is built into individual jobs, teams,

neighborhood, and not cookie cutter big

stores, and operating regions. Every Team

boxes. This has made some of our meter syn-

Member has environmental responsibilities

chronization and reporting more challenging.

continuing a dialogue with our stake- hold-

Letter

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

18 Our Products

>>

Our Green Mission

19

Looking Ahead—Together

HIGHLIGHTS FROM

2010—2011 2011

2010 In 2010, we partnered with Blue Ocean

In 2011 , we rolled out Global Animal

In 2010, we announced the com- pany’s

Institute and Monterey Bay Aquarium’s

Par tner-ship’s 5 -Step Animal Welfare

goal to reduce our energy usage by 25 percent per square foot by 2015, and we are

Seafood Watch to provide seafood sustain-

RatingTM program in each of our stores.

ability labeling for all wild-caught seafood

We’re the first retail grocer to debut this

making significant strides in reaching this

not certified by the Marine Stew- ardship

program, which provides customers with

goal. We reduced our electricity consump-

Council (MSC) to help our customers make

much greater transparency about the con-

tion by 6% per sq foot in 2011 from our

more informed choices when they are pur-

ditions under which food animals are raised

baseline year of 2008, on our way to the

chasing fish and shellfish.

and brought to market.

25% per foot reduction goal by 2015.

In 2010, when Haiti was grappling with

As of June 2011, all health and beauty

We opened or retrofitted several stores

the after effects of the January earthquake,

products sold in our stores that make organic

or facilities in 2010 and 2011 that feature

we increased our purchase of Whole Trade

claims must be certified by one of two

alternative energy system components

Haitian mangos by 40 percent; we expand-

sources: either the Agriculture Department’s

like solar panels, thermal massing and fuel

ed our efforts again in 2011.

National Organic Program (NOP), which sets

cells. Many of these stores achieved LEED or

standards for food; or NSF International.

Green Globes ratings. In addition, many have

Launched in 2011, our Eco-Scale rating

achieved GreenChill ratings.

system for cleaning products provides cus-

We launched our Whole Kids Foundation

tomers with additional information to make

in July 2011 and have received more than

informed choices.

$2,000,000 in customer donations for our

Our sales of Whole TradeTM products con-

School Garden grants program; Whole

tinue to grow and in 2011 resulted in more

Foods Market donated $500,000 to the

than $740,000 in donations (up to 1% of

program in 2011.

sales) to Whole Planet FoundationTM.

As of December 2011, Whole Planet

In 2011, for the fifth year, Whole Foods

FoundationTM has extended its reach into

Market purchased enough wind energy RECs

50 countries; we’ve partnered with estab-

(renewable energy credits) to offset the

lished micro- credit lending organizations in

entire company’s energy usage. We’ve also

each nation to help lift people out of poverty.

purchased wind energy RECs for 2012.

>> ORGANIC AND NATURAL FOODS >> We’re a Certified Organic Retailer /24 >> Our Quality Standards / 26

21

03

Letter

Introduction

Whole Foods Market’s Green Mission

>>

Organic and Natural Foods

ORANGE AND NATURAL FOODS

Supporting organic agriculture is among

the early pioneers who took the success-

the most environmentally-friendly activi-

ful supermarket concept and populated our

ties we undertake as a company. At its best,

shelves with foods and product we felt to

organic farming is a hopeful and mindful

be a better choice for shoppers than those

enterprise, practiced with compassion and

found in the conventional food stores of

empathy for the land and the creatures

the 1980s. We faced two big challenges

upon it.

Organics is at the root of everything

in the early days: insufficient supply and lack of national standards for organics. We

we do. We carry natural and organic prod-

played a big part in solving both of those

ucts because we believe that food in its

challenges over the last few decades.

purest state—unadulterated by artificial

In the early 1980s, most of the certi-

additives, sweeteners, colorings, and pre-

fied organic produce came from the west

servatives is the best tasting and most

coast since California and Oregon had state

nutritious food available. We were among

organic standards. The organic network

22 Our Products

Our Green Mission

was young and fairly disorganized, mak-

In 2009, Whole Foods Market Team

ing it very difficult to stock much organic

M ember J oe Dickson was tapped to

produce. In response, we set up our own

serve on the NOSB . Joe also sits on the

produce distribution company in California.

Texas Department of Agriculture Organic

We developed relationships with organic

Industry Advisory Board. Whole Foods

farmers in California and educated each

Market is also a supporter of the Non-GMO

other about the variety of organic produce

Project, where Joe sits on the Board of

we could feasibly make available.

Directors. This nonprofit has established

Looking Ahead—Together

As time went on, we developed packag-

industry standards for the verification,

ing, storage and shipping procedures that

testing and labeling of non-GMO (geneti-

ensured the quality of our organic products

cally modified organ- ism) products and to

at every stop from the farms to our stores.

ensure the ongoing availability of non-GMO

These foundational steps with our vendor

food in the US.

partners benefitted the entire industry over

We have advocated for strong organic

time, bringing more organic products to

aquaculture standards, as the USDA works

market in good condition.

to develop these new standards. We have

As recently as the 1980s, when our

also worked with Canadian regulators and

company consisted of a handful of stores

Organic Trade Association Canada to help

in Texas, the Lone Star State didn’t have

shape and under- stand Canada’s new

organic standards. Although a handful

National Organic Standards. As the world

of agricultural heavyweight states like

population grows, we are going to need

California and Oregon had state standards

creative solutions for our supply chains.

as early as the 1970s, the US didn’t have national organic standards until 2002. We

We are starting to work with emerging organic suppliers all over the world.

were the first food retailer at the table

The steps we are taking now will assure

when it came time to help develop national

the long-term quality of our supply as we

standards. Margaret Wittenberg, our Global

look beyond the United States for organic

Vice President of Quality Standards, served

food solutions.

two successive terms on the National Organic Standards Board (NOSB) starting in 1992, helping to shape the original organic standards.

IN SIMPLE TER MS, ORGA NIC A G R I C U LT U R E : Bu i lds healthy soi l r ich w ith m icro organ isms and nutr ients so it holds moisture, resists erosion and absorbs CO 2 to mitigate global w a r m i n g .

P r o m o t e s b i o d i v e r s i t y, r e d u c i n g t h e danger of large-scale crop fai lu re and plant disease.

Relies on natural methods of pest or disease prevention.

Preser ves the integr it y of meat and dair y products by proh ibiting the use of antibiotics and ar tif icial growth hormones.

Honors the role that domesticated food an imals pla y in the cycle of life.

Protects the safet y of food and the integr it y of soil and crops by proh ibiting the use of genetically modif ied o r g a n i s m s (G M O s).

Safeg uards water q ualit y by elim inating harmf ul r unof f f rom a r t if icia l fertilizers and other tox ic chemicals.

Sa ves energ y th rough reduced reliance on fossil f uels, such as those used in the manufacture, distr ibution, and application of pesticides.

23

Letter

>>

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

WE’RE A CERTIFIED ORGANIC RETAILER

Whole Foods Market has been certified

1973 and act as both a certifying agent and

organic since 2003. Under the national

a non-profit advocacy group for organ-

organic standards, the whole supply chain

ics, and they truly share our view that the

for organic products must be certified, with

organic label should be meaningful and

the curious (to us) exceptions of retailers

used with integrity.

and restaurants.

Although not required, we voluntarily participated in the process, which initially

How does a store get certified?

Ma i n ly by eva lua t i ng pract ices tha t

Cou r t ne y Mudge i s t he O r ga n ic

involved certification of a representative

i nvolve u npackaged orga n ic products,

C e r t if i c a t i o n M a n a g e r f o r W h o le

sample of our stores along with our overall

such as those i n ou r produce, bu lk,

Foods Market. She’s a 5th genera-

company policies and systems for monitor-

mea t, bakeries, cheese departments and

t ion Te xa n who g re w up on a

ing compliance.

even on some salad bars.

r a nc h in the Hill Country. When she’s not co ac h i ng ou r s tore s on

In 20 09, the requirements became

or ga n ic i nteg r it y, she’s b e i ng

much more stringent. Rather than walk

Few other retailers go to the effort to

c r a f t y a nd s e a rc h i ng f or t he p e r-

away from certification altogether, we

become certified. Our stores are certi-

f e c t taco.

opted to go down the more difficult road

fied organic to help give our customers

of getting each of our stores individually

more trust in the organic label. For us,

certified. We signed up all of our stores for

it’s important for customers to know that

inspection because we believe the integrity

everyone who handles their organic food

it brings the “organic” label is so important.

As our partner in the certifying process, we work with California Certified Organic Farmers (CCOF). They have been certif ying organic farms and producers since

has been certified–instead of everyone but the retailer.

24 Our Products

Our Green Mission

Looking Ahead—Together

“

We are an active voice in the organic industry.

”

25

Letter

Introduction

Whole Foods Market’s Green Mission

>>

Organic and Natural Foods

OUR QUALITY STANDARDS Many food additives and preservatives found in conventional produced food items are among those we choose not to allow.

We share these standards with prospective vendors and our customers as one facet of our efforts toward creating more transparency in our product offerings. These standards are one of the reasons we enjoy a strong trust-based relationship with customers; likewise, we have a lot to lose if we slip up on our vigilance.

Our Quality Standards for food items have been in place for more than two decades—and they have not been static.

When new research comes to light, we modify our list of acceptable ingredients.

In 2010, we introduced our Quality Standards for personal care items, and rolled out our standards for home cleaning products in the spring of 2011. Working in tandem with our vendors and suppliers in creating food and product formulations

Whole Foods Market first developed standards for the products sold in our stores in the 1980s.

that are healthier for humans and for the environment is another way we’re continuing to change the face of retailing.

26 Our Products

01

Our Green Mission

W hole Food s M a rket ’s Q u a l it y Sta nda rd s for Food

02

27

Looking Ahead—Together

O u r W hole T rade® Gu a ra ntee

We sell the highest quality foods we can

At Whole Foods Market we believe that

Our Whole Trade Guarantee exempli-

find at the most competitive prices pos-

we have a responsibility toward all entities

fies our commitment to ethical trade, the

sible. We evaluate quality in terms of

involved in our business: our customers,

environment and quality products. We’re

nutrition, freshness, appearance, and taste.

shareholders, Team Members, suppliers,

able to offer this program by utilizing third-

Our search for quality is a never-ending

the environment and our community.

party certifiers such as Fair Trade USA ,

process involving careful judgment of buy-

To us, community transcends the bound-

Rainforest Alliance and the Institute for

aries of our North American cities to the

Marketecology. You’ll have an opportunity

places from which we source our products,

to find out more about some of our Whole

We carefully evaluate each and every

many of which are in developing countries.

Trade products and producers in the fol-

product we sell.

As a result, we have created the Whole

lowing pages.

ers throughout the company.

We feature foods that are free of artificial preservatives, colors, f lavors, sweeteners, and hydrogenated fats.

Trade Guarantee, an extension of our values that lets you rest assured that you are buying the best for you, for your community, and your world.

We a re passiona te about g rea t tasti ng food a nd the pleasu re of sha r i ng it with others.

We are committed to foods that are fresh, wholesome and safe to eat.

We seek out and promote organically

W hole T rade Gua ra ntee products a re req u i red to: Meet ou r st r ict product Qua lit y Sta nda rds.

Prov ide more money to producers.

grown foods.

Ensu re bet ter wages a nd work i ng conWe provide food and nutritional prod-

d it ions for workers.

ucts that support health and well-being.

Ca re for the env i ron ment.

Dona te up to 1% of sa les to W hole Pla net Fou nda t ion®.

>> OUR PRODUCTS >> Produce / 33 >> 5-Step Animal Welfare Rating System / 36

04

Letter

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

30 Our Products

>>

Our Green Mission

31

Looking Ahead—Together

OUR PRODUCTS

By operating successful and trusted retail stores featuring thousands of natural and organic products over the last three decades, we’ve been a big player in the growth of the entire natural and organic foods industry.

families. We continually work with manufacturers to supply our stores with foods that meet our strict quality standards and environmentally friendly packaging requirements.

While we educate customers about the benefits of natural and organic foods, we also highlight the importance of food safety measures and techniques, including

Along with offering organic produce, gro-

our concerns about food irradiation, food

cery and body care items, we are advocates

borne illnesses, food handling, and mate-

and supporters of naturally raised and

rial safety.

organic meat, dairy and poultry. And, in

We think that one of the largest impacts

addition to telling consumers our concerns

we can have for our stakeholders now is

about added hormones and antibiotics,

to work with our producers and vendors

we work with ranchers and producers to

on improving the quality and production

develop alternatives for our customers to

methods of their food, personal care and

buy. We now carry a variety of free-range

non-food products we carry, extending our

and grass-fed products in each of our

requests even to the product packaging.

stores, and we address our efforts toward

What is different about Whole Foods

supporting animal welfare standards for

Market is that we support our vendors with

key food animal species later in this report.

a road map and expert advice on how to

We advocate for fewer and safer pesti-

move through the requested changes. In

cides in non-organic foods, and we work to

th e fo ll owin g p a g e s we wo ul d like to

provide information to our customers about

share a few of the ways our product cat-

the value of foods produced without harm-

egories and international programs are

ful or questionable food additives so that

making a difference.

they can make the best choices for their

Letter

Introduction

Whole Foods Market’s Green Mission

20% I n 2 0 11 , o r g a n i c s accounted for more than 20 percent of the produce we sold in our stores.

Organic and Natural Foods

32 Our Products

>>

Our Green Mission

33

Looking Ahead—Together

PRODUCE

Our produce is a sight to behold. It’s the first thing you see when you come into one of our stores, a visual feast of color, variety and sparkling freshness piled high for your pleasure and convenience.

Locally grown produce has fewer food miles on them and may be many days fresher than produce brought in from a distance. During summer and fall, primarily, many of our stores have abundant selections of locally grown vegetables and fruits. In addition, many of our stores provide space for farmers markets on their property or serve as a pick up point for local CSA businesses. As of February 2011, all of the stores in our Florida region are available as drop-off/pick-up points for CSAs in their vicinity.

In 2010, we established ourselves as a

During the last three years, we’ve made

serve as resources for customers wanting

important headway on the prices of our

to transition to incorporating more fresh

o rga nic p ro d u ce , so m etim es of fe ring

pro duce into their diets.

organic items for the same price as, and

By its nature as a live food, most pro-

occasionally less than, their conventionally

duce is seasonal. In some parts of the

grown counterparts. As organic produc-

country, for example parts of Texas and

tion becomes more wide-spread, and as

Florida, a sub-tropical climate means that

we are able to source new organic prod-

local produce may be available for nine

uc ts in other countries with excellent

or ten months of the year. In Minnesota,

organic agricultural practices, we antici-

Canada and Maine, it may be for three to

pate that availability will continue to rise

four months. Every store has a great deal

while some prices, especially for in-season

of autonomy in working with local farmers

items, fall more in line with conventionally

and producers and we offer as much as

grown produce.

possible of the season- ally available local

Fresh produce is a delicious and critical component of a healthy diet. Our Health

produce that meets our quality standards and is available in sufficient quantity.

Starts Here in-store educators and the

Purchasing local produce suppor ts

culinary classes we have at many stores

farmers and growers within the community.

leading supporter of Fair Trade Certified TM produce and floral products in the United States. We inaugurated new supply chains and reinvested in existing sourcing partners. We’re excited about a few specific Whole Trade products we carr y in our produce departments. See the following discussion of our Haitian Francique magos and Earth bananas.

Letter

Introduction

01 W hole T rade Ha it ia n Ma ngos

Coming from a network of hundreds of

Whole Foods Market’s Green Mission

02

Ea r th Un iversit y Ba na nas

03 F lora l

Whole Foods Market has been buying

very small farmers, many of whom have

Earth bananas for more than six years, and

just one or two mango trees, you won’t find

this is the fourth year that we will buy all

our large, delicious Whole Trade Francique

of their top quality production. We pay an

mangos anywhere else but Whole Foods

above market, fixed price and buy directly

Market. For some of these farmers, the

from the Earth University farm in Costa

annual mango harvest represents a large

Rica; we ship and import the bananas our-

portion of their cash income for the year.

selves. This direct trading model requires

Over the past sev- eral years, our partners

significant daily at- tention from a team at

at Perry Exports have helped these farm-

our national produce office but it allows

ers organize into groups through which the

us to pay EARTH more and lets us main-

farmers can sell their fruit more directly.

tain a true direct connection to this farm.

Through these groups, we are able to

Organic and Natural Foods

EARTH’s profits from its sales to Whole

make fixed price and minimum volume

Foods Market support a scholarship fund

commitments before the season starts,

and university operations.

so farmers know they’ll have a market for their fruit. Our upfront offer gives farmers the confidence to reject the below

Among the notable accomplish- ments in

market prices from local informal traders

our perishable product mix over the last

that are an unfortunate reality for most

few years is the development of our Whole

Haitian mango farmers.

Trade floral program.

In 2010, we increased our Fair Trade-

We now offer Whole Trade roses and

certi- fied mango purchases from Haiti

Gerbera daisies, along with other single

40% over the previous year at a time when

bloom bunch and bouquet mixes.

the Haitian economy and infrastructure was especially challenged. We also trav-

Plan et Foundation f und additional microcredit loans.

eled to Haiti to meet with our mango

Whole Foods Market now offers addi-

growers post-earthquake to find ways to

tional products to match a rising trend

grow our partnership.

in environment-friendly urban and home

34 Our Products

Our Green Mission

Looking Ahead—Together

gardening. While we’ve long offered items such as heirloom and/or open- pollinated seeds, organic vegetable starts, fruit trees and canes, herbs and ornamental perennial and annual flowers, in some locations we are offering a larger selection for a longer time period and stocking new items like rain barrels. In some locations, we sell our own Green Mission-branded compost or Farmer D’s, both of which feature materials culled from Whole Foods Market stores.

I n a d d i t i o n s o m e s to r e s o f f e r n a tural pest control alternatives and p etro l e u m - free fer tilizers and soil a m e n d m e nt s . A ll of th e se p ro d u c t s a n d o p t i o n s a l l o w u s to b e t te r s e r ve o u r “g row yo u r own ” cu s to m e r s .

Finally, our seasonal delights include the local flowers offered in various stores.

Local vendors can sometimes offer more delicate and ephemeral flowers than those grown in commercial quantities , of ten producing bouquets of wildflowers or heirloom species once found in rural gardens of yesteryear.

F lor a l E a r t h Un ive r s it y B a na na s W hole T r ade Ha it ia n Ma ngo s

35

Letter

>>

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

5-STEP ANIMAL WELFARE RATING SYSTEM We work with the Global Animal Partnership to certify our producers' animal welfare practices. We've rolled out their 5-Step™ Animal Welfare Rating Standards in every Whole Foods Market store in the United States and Canada.

Global A nimal Partnership is a non-profit organization dedicated to continually improving the lives of farm animals. They have developed the 5-Step A nimal Welfare Rating Standards that rate how pigs, chickens, turkeys, and cattle are raised for meat. Standards for other species (lambs and others) are in development, so stay tuned and be sure to look for the ratings the next time you stop by our meat department.

Whole Foods Market is near the comple-

A challenge we’ve encountered thufar

tion of conducting a pilot program for the

is sourcing and providing adequate sup-

Global Animal Partnership (GAP) to test

plies of our rated meat to keep up with

the 5-Step Animal Welfare Rating system

high customer demand. Securing organic

before GAP extends the program to other

p o rk h a s b e e n e s p e cia lly ch a ll e n g in g .

retailers. This tiered rating system ranks

We’ve also needed to focus on educat-

welfare practices and conditions within

ing customers and investors about the

farm animal production systems.

The intention is that this rating system will ser ve as both a f ramework to suppor t continual improvement of animal welfare on farms and ranches and of fer a clear way for consumers to make informed purchasing decisions based on animal welfare considerations. Af ter pilot testing in a few regions, we rolled out the 5 -Step Animal Welfare Rating system in all of our US stores in early 2011 .

benefits of the 5 -Step program for food animal welfare.

36 Our Products

Our Green Mission

37

Looking Ahead—Together

No crates;No cages;No crowding Animals live their lives with space to move around and stretch their legs.

STE

P1

Enriched environment Animals are provided with enrichments

P

2

that encourage behavior that ’s natural

ST

E

to them like a bale of straw for chickens to peck at, a bowling ball for pigs to shove around, or a sturdy object for cattle to rub against.

P3

Enhanced outdoor access

STE

Pigs, chickens and turkeys might live in buildings but they all—yes, each and every one of them—have access to out-

5-Step Animal Welfare Rating Standards 4

door areas.

STE P

Pasture centered When living outdoors, chickens and turkeys get to forage, pigs get to wallow and

cont i nua l ly i mprov i ng t he l ives of fa r m a n i m a l s . T h e y h a v e d e v e lo p e d t h e 5-Step A nimal Welfare Rating S t a n d a r d s t h a t r a t e h o w p i g s , c h i c k e n s , t u rkeys,

Animal centered; all physical alterations prohibited At Step 5 the well-being of the animals is the primary focus; efficiency and economy are secondary.

and cattle are raised for meat. Sta nda rds f o r o t h e r s p e c i e s ( l a m b s a n d o t h e r s) a r e i n d e v e lo p m e nt , s o s t a y t u n e d a n d be sure to look for the ratings the next t i me you stop by ou r mea t depa r t ment.

Animal centered; entire life on same farm Animals raised to Step 5+ standards must be born and live their entire lives on one farm.

P 5+

p r o f it o r g a n i z a t i o n d e d i c a te d t o

STE

Globa l A n i ma l Pa r t nersh ip i s a non-

S

TE

P

5

cattle get to roam.

Letter

Introduction

04

Whole Foods Market’s Green Mission

Organic and Natural Foods

Sea food

Wh ole Fo o ds M a rket c a rries th e high est quality seafood and the best selection of responsibly farmed and wild-caught seafoo d of a ny retail groce r y ch ain in th e US .

P ige o n Co v e (Glouce s te r, M A) O u r on ly f ac i l it y lo ca te d r ight on t he w a te r f e a t u r i ng Nor t h At la nt ic f i sh , haddo c k a nd f lou nde r.

S ele c t F i s h (S eat t le, WA) O u r pr i ma r y pu r ve yor of w i ld- ca ught A laskan salmon; our own port buyer is lo ca te d i n A la s ka s ou rc i ng t he b e s t f i s h i n s e a s o n , w h i c h i s d e l i v e r e d d i re c t ly to ou r s tore s .

S out h S ea f o o d (At l a nt a, GA)

Through our purchasing standards, label-

customers more and more MSC-certified

ing and education initiatives, we promote

seafood options. Over a decade later the

responsible fishing practices and the

MSC is still the world’s leading certifica-

overall health of the oceans and coastal

tion program for sustainable wild-caught

environments. And to boot, we own and

seafood and our partnership with them

operate four of our own seafood facilities

remains strong.

that serve as bases for monitoring and distributing our seafood.

Within the last few years, we’ve rolled out t wo major initiatives in our sea food depart- ment: our industry leading standards for farmed seafood and a color-coded rating program that provides shoppers with additional sustain- ability status information for fisheries that are not certified by the Marine Steward- ship Council (MSC).

In 1 9 9 9 Whole Foods M arket was

O u r g u lf a nd s out he r n At la nt ic s p e c ie s

the first U. S . retailer to of fer Marine

e x p e r t s, who a re s ou rc i ng t he b e s t ma h i

Stewardship Council (MSC)- certified sea-

ma h i, g roup e r a nd s na pp e r.

food and each year we continue to offer our

We support the MSC because of their world leading standards developed through a multi-stakeholder, international process.

With their market-based approach, the MSC provides incentives for fisheries to address key issues such as overfishing and by catch.

And their requirement for third-par ty, including chain of custody certification ensures that the fish in our stores actually came from an MSC-certified fishery.

The MSC is continually improving its processes and for a long time, Whole Foods Market has been involved in their efforts.

M a rg a ret Wat te n b e rg , W h o l e Fo o d s Market’s Global Vice President for Quality

38 Our Products

Our Green Mission

39

Looking Ahead—Together

Standards and Public Affairs, serves on

status information for all wild-caught sea-

With this commitment, we are one step

the MSC Stakeholder Council and for many

food not certified by the MSC. We’re proud

closer to our goal of moving our product

years prior was a member of the Board

to be the first national retailer to have such

offerings and the seafood industry as a

of Trustees.

an extensive sustainability-rating program

whole—toward healthier oceans.

When MSC-certified options are not

in all of our stores, which expands the

Finally, Whole Foods Market’s farmed

available, we give customers transparent

opportunity for our shoppers to make fully

seafood (aquaculture) standards remain

information about the status of the wild-

informed choices about their seafood.

the highest in the industry. The standards

caught seafood we sell, letting them vote

Our commitment to having sustainable

with their dollars, and commit to further-

seafood departments is so strong, as of

hormones, added preservatives like sul-

ing positive change.

Earth Day 2011 we eliminated all sword- fish

fite and phosphates, genetically- modified seafood, and land animal by-products in

prohibit use of antibiotics, added growth

In addition to offering MSC-certified

and tuna from red-rated fisheries. All other

sustainable seafood, for years Whole Foods

seafood from red-rated fisheries will be

feed. Our standards require that producers

Market has been committed to sourcing

discontinued in our fresh seafood case by

protect water quality, wildlife, and ecosys-

responsibly. For example, years ago we

Earth Day 2012. Meanwhile, Whole Foods

tems. And we require third-party audits

stopped selling especially vulnerable spe-

Market is working hard to find sources of

and traceability from farm to Whole Foods

cies such as non-MSC-certified Chilean sea

these species from responsible fisher-

Market store.

bass, orange roughly and sharks.

ies and we hope that this rating program

Look for the “Responsibly Farmed” logo,

In partnership with Blue Ocean Institute

will continue to be an incentive for change,

indicating that the farmed seafood meets

and Monterey Bay Aquarium, we’ve imple-

encouraging lower-rated fisheries to imple-

these high standards.

mented a color-coded rating system that

ment more effective management and fish

provides shoppers with sustainabilit y

more sustainable so that their rating can improve over time.

Letter

05

Introduction

Ma ld iv ia n T u na

Whole Foods Market’s Green Mission

06

Organic and Natural Foods

Ha r poon- Caught Sword f i sh

One new source of tuna comes from the

Swordfish are a highly migrator y spe-

sale in our stores almost daily when in sea-

Maldives in the Indian Ocean, where fish-

cies inhabiting tropical, temperate and

son. Following rigorous review and auditing,

ermen catch tuna in a traditional manner

even cold waters worldwide. In the sum-

the Nova Scotia harpoon fishery was the

using a low- impact pole and line method.

mer months, North Atlantic swordfish are

first swordfish fishery ever to be certified

Elsewhere, most tuna is caught with nets or

found in the deep waters off the coast

sustainable by the Marine Stewardship

longlines, which can capture not only the

of Nova Scotia. Skillful harpooners sight

Council (MSC).

targeted catch, but also juvenile tuna and

large, mature swordfish as they bask near

large amounts of bycatch, including threat-

the surface during the day, and target indi-

ened or endangered species such as sea

vidual fish— one-by-one— with a harpoon

turtles, sharks and seabirds.

attached to a line.

Because fishermen actually see the swordfish they’re after, there is virtually no chance of catching small immature swordfish or other marine life accidentally (known as “bycatch”).  The slow, one-by-one approach also helps prevent fishermen from catching too many fish and exceeding their legal quotas. It’s an age- old fishing technique with very low impact on ocean habitat. Most of the boats are captain-owned and operate as day boats—returning to harbor each day to unload their catch fresh rather than processing and freezing it on board. The fish we purchase is flown out and available for

40 Our Products

07

Our Green Mission

41

Looking Ahead—Together

08

Spec ia lt y Foods: A lleg ro Cof fee

A lleg ro Spec ia l Reser ve Projects

Whole Foods Market is fortunate to own

Alle gro also pa r tn e rs with cof fe e

In Ecuador, Guatemala and Nicaragua,

Allegro Coffee, a partnership of shared pri-

growers who share their values for environ-

Allegro’s Special Reserve program donates

orities and ideals.

mentally friendly practices. These farmers

$10,000 to selected organic farms to sup-

In 2011, Allegro sourced coffee from

utilize traditional and sustainable grow-

port community-based education, health

22 countries in the Americas, East Africa,

ing, harvesting and processing practices,

care and agricultural projects.

and Asian Pacific Rim Islands. Allegro pur-

including the use of shade trees, manual

In Rwanda , Allegro sources cof fee

chases its beans from approximately 80

weeding (forgoing the use of pesticides),

from the Koakaka cooperative, and in 2011

farms and cooperatives. They continue

water conservation and other organic farm-

donated $10,000 for technical support and

to maintain relationships with producers

ing practices. Allegro gives back to various

raw materials for an income- and food-gen-

from whom they’ve bought for years and

cooperative communities as part of its

e rating sp e cialt y m ush room growing

at the same time search out new farms that

Special Reserve program.

program for the cooperative.

can meet Allegro’s quality requirements.

Allegro insists on transparency through

In Tanzania, Allegro worked directly

Allegro has paid particular attention to new

out the coffee supply chain and chooses

with their chosen co-ops’ cuppers in the

sources in El Salvador and Burundi.

to partner with suppliers who share their

Kigoma Region to select the beans for a

While the commercial market price for

values of equitable and traceable sourcing.

Special Reserve coffee program. Allegro’s lot was the first that the co-op exported

coffee has climbed over the last year or so,

And most importantly, Allegro will continue

Allegro hopes that this m eans life will

to buy coffee of exceptional quality that

independently, which allowed the members

become a little better for farmers around

represents the best of its particular grow-

to garner more of the profits and began

the world who have for years produced

ing region.

the move towards self-sufficiency. To honor

a crop that has been hugely under val-

In addition to its socially aware sour-

ued. Allegro pays a premium over the

ing efforts, Allegro has made impressive

to Grounds for Health, a non-profit orga-

market p rice fo r, a m o n g oth e r th in g s ,

strides in its other sustainability measures

nization which creates effective cancer

quality se le c tion , re lationship b uilding ,

in the past few years.

screening programs on coffee-producing

and cer tifications like O rganic and R a i n f o r e s t ’s A l l i a n c e .

this relationship, Allegro donated $10,000

regions . Cer vic al c ancer is the leading cause of cancer deaths for women in low-resource countries like Tanzania, which

The fair pr ice provides cof fee grow-

has one of the highest rates in the world

ers the means to reinvest in their

due to a lack of screening and prevention

f a r m s , h i r e a n d r e t a i n t h e b e s t w o r k-

services. Grounds for Health programs

ers, and stay in business over the

deliver a simple and affordable solution to

long ter m.

this problem

Letter

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

At W hole Food s M a rket ® we bel ieve it ’s i mpor ta nt t h at con su mers a re a ble to m a ke i n for med dec i sion s a bout t he products t hey buy. We a lso bel ieve i n doi ng ou r pa r t to encou rage a more eco -f r iend ly hou sehold products i ndu st r y.

“Red” t ier sta nda rd s Not carried at Whole Foods Market.

“Ora nge” t ier sta nda rd s Full tra n sp a re n c y, disclosu re of in g re die nt s o n p a cka gin g Re m ova l of in g re die nt s with sig n if ic a nt e nviro n - m e nt a l o r s afet y co n ce rn s

ECO -SCALE R ATING SYSTEM

N o p h osp h ate s , ch lo rin e , o r synth etic co lo r s N o a n im a l te s tin g I n d e p e n d e nt 3 rd p a r t y ve rif ie d co m p lia n ce to s t a n d a rd s

“ Yel low ” t ier sta nda rd s Re m ova l of in g re die nt s with m o d e rate e nviro n m e nt a l o r s afet y co n ce rn s 1 0 0 % n atu ra l f ra g ra n ce s

“Green” t ier sta nda rd s N o p etro l e u m - d e rive d in g re die nt s O n ly 1 0 0 % n atu ra l in g re die nt s

42 Our Products

09

Our Green Mission

Looking Ahead—Together

Pineland Farms Natural Meats

Grown in the Ecuadorian Andes by a group of Fair Trade certified farms, these Whole Trade roses, or “blooms with benefits” as we sometimes call them, help to cultivate better working conditions and equitable wages for their workers.

For each case of Whole Trade roses purchased by Whole Foods Market, an additional percentage is paid directly to organized worker groups at each farm. The groups collectively decide how to use the money for the benefit of the community.

Some development projects have included education, training programs, health care and even housing. To participate in Fair Trade — or our Whole Trade —programs , many aspects of flower production that may have deleterious effects on worker health or the health of the environment, such as pesticide use, are not allowed.

G r a d e s r e f l e c t t h e d e g r e e t o w h i c h t h e m e a t i s m a rbled and the matur it y of the animal, and are meant to give an idea of how tender the beef is.

43

05

>> OUR GREEN MISSION >> Waste Reduction / 46 >> Responsible Packaging and Supplies / 49 >> Renewable and Alternative Energy /50 >> Green Building and Design / 52 >> LEED, Green Globes and GreenChill / 54 >> Community partnering / 58 >> Feeding the homeless / 59vv

Letter

>>

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

WASTE REDUCTION

Whole Foods Market is committed to diverting materials from community landfills.

Much of Whole Foods Market ’s environmental stewardship occurs at the store or facility level. Nearly every store has a green mission team, and some of our regions have Green Mission Specialists who help coordinate larger programs.

46 Our Products

Our Green Mission

47

Looking Ahead—Together

compost and organics 39%

trash (landfill) 35%

compost, shrink wrap, and other recyclasoft plastics 1%

bles to a central location with better access to recycling and composting programs.

hard plastics >1%

commingled recycling

In the Northeast Region, for example, 3%

cardboard and paper 22%

all 23 stores have full recycling programs that accommodate film and rigid plastics (#1 through 7), glass, metal, paper, bulk

2 010 Ave r age Wa s te D ive r s ion W hole Fo o d s Ma rke t S tore s

fixtures, and electronics (including lamps and batteries).

Our transportation fleet and regional distribution centers are key players in

While most of our customer- facing efforts

The good news is that many of our

such as recycling centers, sales of reusable

stores have achieved a waste stream diver-

backhauling cardboard, pallets, plastic

grocery bags, and educational outreach are

sion rate of more than 80% , with some

wrap, and in some areas without commu-

widely known, some of our back-of-the-

a p p ro a c h i n g a n d eve n exc e e d i n g th e

nity recycling opportunities, compost and

house efforts with waste reduction, energy

9 0 % level, which the EPA defines as the

even glass.

conservation, renewable energy, and green

level at which they consider zero waste has

building are pretty impressive, too.

been achieved.

our recycling efforts, with delivery trucks

With that said, 20 of the 23 stores average about 80 to 90 percent diversion, with

The majority of the stores in our oper-

We are in the early days of the effort to

ating regions have experienced significant

aggregate and normalize the data on waste

The three stores without access to a

volumes of waste reduction through recy-

diversion, and we have a commitment to

commercial compost solution are at the 30

cling and composting programs.

grow the number.

the majority at the 80% level.

to 40% diversion rate. Given the high per-

Most of our stores offer compostable

We achieve this level of diversion

deli containers in prepared food areas, fur-

at stores with several factors in place

featured in our stores, ready access to com-

ther reducing burdens on area land- fills

including a trained, committed staff and

mercial composting facilities is absolutely

once our customers leave the store. We’re

leadership, accurate initial benchmark-

critical for limiting our contributions to

doing a lot on multiple fronts, yet because

ing of the store or facility’s waste stream,

community landfills.

our communities vary widely in the waste

a community infrastructure that supports

services offered we are a few years away

comprehensive recycling and commercial

from providing an aggregated waste diver-

composting and/or access to a regional dis-

sion rate with fully transparent accuracy.

tribution center fleet capable of bachauling

centage of perishables and prepared foods

>>

RESPONSIBLE PACK AGING A ND SUPPLIES

Whole Foods checked in with a few sustainable packaging experts to talk about what’s coming down the pike that could affect the natural products industry.

One of the big environmental benefits

If the claims do pan out, the product may

that Whole Foods Market can co-create is

not meet our quality standards. The very

working with our vendor partners to ensure

real probability of GMO-tainting exists if

more responsible packaging for the prod-

the product contains soy or corn. Sourcing

ucts coming into our stores.

Happily, many of our vendors voluntarily participate in our evolving standards for packaging. For example, in 2009, we

truly recyclable or compostable flatware and straws that will stand up to customer use continues to be a challenge for us.

Sometimes our choices are between

contacted all vendors who use Styrofoam

an unacceptable option and a “less bad”

packing materials, giving them a deadline

option. Packaging is an area where we

of November 30 to migrate to alternative

know we have quite a bit of work ahead of

materials—and almost everyone complied.

us and where we’re keeping a close eye on

We’ve had heartening successes in recent

the packaging marketplace for truly bet-

months with our Whole Body product ven-

ter solutions. The up side is that many of

dors, which were discussed in the section

our vendors are willing to partner with us

on Whole Body.

to come up with better solutions. A few of

Understandably, we have the most con-

our vendors are very serious about taking

trol over our own store branded items,

responsibility for the entire life cycle of

such as our 365 Everyday Value® products,

the packaging they use for their products.

and the packaging we use in our prepared

Understandably, we support their inten-

foods venues and our perishable depart-

tions and successes.

ments, such as meat and seafood. Over the

Whole Foods Market has had some

last four years we replaced many of our tra-

impressive packaging wins in the last few

ditional plastic and paper prepared food

years, even if on a small scale.

A ccord i ng to P i ke Re s e a rc h , s u s -

containers and utensils with all-natural fiber

One of the most visible is our deploy-

ta i na ble p ac kag i ng w i l l compr i s e

packaging that is environmentally friendly

ment of a 16" pizza box made from 100%

ne a rly a t h i rd of t he p ac kag i ng

and often tree-free. Made from renewable

post-consumer fiber that can easily be

ma rke t by 2 014 , wh ic h e q ua te s to

resources—such as bulrushes, sugar cane

converted to four plates or a half box for

a b out a $170 -bi l l ion i ndu s t r y .

pulp, corn starch, and bamboo—the con-

storage of lef tovers in the refrigerator.

T h i s g ro w t h i s s ig n if ica nt, con s id-

tainers and wrappers are compost-able and,

Introduced in our Rocky Mountain region

e r i ng t ha t s u s ta i na ble p ac kag i ng

because they are unbleached, are free from

in 2010, the box is available in our other

had ju s t a 21% ma rke t sha re i n

chlorine and dioxins.

regions now as well.

But even in those areas where we think

Another packaging win with a 5-year

w ith regard to mater ials w ill be

we might have a lot of control over pack-

track record is the food bar container you’ll

pla s t ic s, t he s u b s ta nce s t ha t s up -

aging, we have found that it isn’t always

find in many of our stores. Made from annu-

ple me nt ma ke r s re ly on to hou s e

a straightforward path. Many packaging

ally renewable bulrush and a blend of other plant fibers, the container is harvested

20 09. The fastest grow ing area

their products. Plastics, along w it h

product vendors have entered the “green

paper, wh ich is also thorough ly

marketing” space with solutions promising

from the wild, tree-free, compostable in 90

embraced in the natural products

many environmental benefits. Upon fur-

days and Cradle-to- Cradle Silver certified.

i n d u s t r y, w i l l h a v e t h e l a r g e s t

ther investigation, these claims may not

market share in the packaging arena.

always match up to reality, such as biodegradability in a reasonable amount of time.

Letter

>>

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

RENEWA BLE A ND A LTERNATIVE ENERGY

In 2006, Whole Foods Market made a land-

Whole Foods Market hosts or owns solar

For example, our Atlanta-area distribu-

mark purchase of renewable energy credits

energy systems at 16 retail store locations

tion center, which uses the South Region’s

(RECs) from wind farms to offset 100% of

and one distribution center and has con-

spent cooking oil to supply fuel for its

the electricity used in all of our stores,

tracted for up to 20 more. In 2002, the

trucks, eliminates more than 250,0 0 0

facilities, and offices in the US and Canada.

Berkeley store became the nation’s first

pounds of emissions per year.

It was the largest wind energy credit

major food retailer to introduce solar

purchase by a public company to that date.

energy as its primary lighting power source.

We continue to offset up to 100% of our

For more recent examples, the Brentwood,

electricity use with RECs. So far we’ve

California store uses solar energy for 24%

purchased more than 4 billion kWh of wind-

of its power needs, and the Edgewater,

based renewable energy credits, which has

New Jersey store (pictured above) hosts

helped grow the wind energy industry in

an impressive array of 14,000 square feet

the United States over the last seven years.

of solar panels.

This ensures that for every kilowatt hour

Our Dedham store also hosts solar pan-

of electricity used by Whole Foods Market

els on its roof, therefore meeting most of

in 2012, another kilowatt hour of electricity

its yearly power needs off the grid. In addi-

funded by Whole Foods Market will be gen-

tion, Whole Foods Market became the first

erated by US wind farms and delivered to

company in the US to generate its electric-

the power grid. The 2012 purchase is equiv-

ity needs on-site using recycled cooking oil

alent to the annual electricity production of

at its Everett, Massachusetts-based com-

more than 125 wind turbines (1.5 megawatt

missary kitchen. We’re gaining a wealth of

capacity), or the annual electricity produc-

experience using alternative energy sys-

tion of more than 1,500 photovoltaic solar

tems in retail environments.

panels (230 watt capacity).

We are proud to have been named an

Our transportation fleet uses Biodiesel in nearly one third of our company ’s

EPA Green Power Partner of the year in

trucks, reducing our dependence on fos-

2006, 2007, 2010, and 2011.

sil fuels and reducing CO2 emissions into the atmosphere.

50 Our Products

>>

Our Green Mission

51

Looking Ahead—Together

ENERGY CONSERVATION

One of the smartest ways to save utility costs and reduce GHG emissions is not to use the energy in the first place.

Whole Foods M arket implemented energy efficiency upgrades in many existing retail stores during the last three years that have saved more than 20 mil- lion kWh of energy. This is the equivalent of NOT burning more than 1.5 million gallons of gasoline! While these up-grades represent considerable capital investment—more than $10 million in the last 18 months—

i ndu s t r y i n ge ne r a l ha s a lw a y s sho w n it s e lf s o ac t ive i n t he de s t r uc t ion of f ore s t s t ha t e ve r y t h i ng t ha t ha s b ee n done f or t he i r con s e r va t ion a nd pro duc t ion i s comple te ly i n s ign if ica nt i n comp a r i s on .

dair y cases —T r iple -p a ne gla s s w it h a n a nt i-f og co a t i ng on ref r ige ra tor doors, e l i mi n a t i ng t he need f or door hea te rs f or icing or fogging —Night curtains on ref rigerators to conser ve energ y while keeping product at the appropriate temperature when stores are closed —LED lighting in all chilled cases

we’ve found that the payback time in terms

We’ve also incorporated many minimum

of energy costs avoided averages less than

energy-efficiency standards into new store

two years among our various projects.

designs, and many stores exceed the mini-

Among the easiest of our long-term

T he de ve lopme nt of c iv i l i za t ion a nd

—Energ y ef f icient doors on f reezer and

mum by leaps and bounds.

investments is installing energy efficient

For example, our South Glenn, Colorado

L E D f ix tu re s , wh ic h we ’ ve u n d e r t a ke n

store (approximately 15 percent smaller in

at dozens of stores to date. Can you imag-

square footage) uses roughly 35 per- cent

ine not having to change the bulb for 10

less energy than two older stores nearby,

years or more? Refrigeration represents

and our newest Santa Barbara store in

one of the largest draws on power in a gro-

California uses 45 percent less energy than

cery store.

a nearby store of comparable size.

To cut down on refrigeration energy use, we’ve focused on specific enhancements and upgrades in our older stores including the installation of:

Letter

>>

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

GREEN BUILDING A ND DESIGN

What is green building benefits for you?

01 Site planning Lower site development costs Lower site maintenance costs

02 Indoor environmental quality Healthier environment Reduction in sick days, absenteeism Higher productivity

03 Material use Healthier environment

04 Water management Reduction in use and costs

05 Energy 30%-50% reduction in use Lower maintenance costs

52 Our Products

Our Green Mission

53

Looking Ahead—Together

Whole Foods Market received the first

minimizing the amount of toxic resins and

medium to saving bird habitat! For example

“Green Building” award in Austin, Texas in

volatile organic compounds (VOCs) off-

as you can see on the following page, our Jacksonville, Florida store (which opened

1998 for the expansion and renovation of

gassed by traditional building materials

our corporate headquarters, which was

such as laminates, paint, and carpeting. Our

in 2010) included the following intentions,

completed in 1995.

newest generation of green buildings also

materials, and design features.

S u s t a i n a b l e m ate r i a l s p e c if i c ati o n s

saves significant energy costs over the life

We chose real wood veneer laminates

co m bin e d with co nscie ntio us co nstru c-

of the buildings and its various retail sup-

that are sustainability harvested from plan-

t i o n m e t h o d s r e s u l t e d i n a h e a l t h y,

port systems. For example, our SouthGlenn

tations subjected to third-party oversight

durable facilit y.

store in Colorado (opened in 2009) oper-

and treated using water-based dyes and stains free of heavy metals.

Because of the 42% waste reduction

ates with 35% less energy use (though only

during the construction process, we were

15% smaller in square footage) than the

profiled by the EPA as a construction

nearby, older Tamarac and Belmar stores.

waste reduction and recycling record- set-

Our current new store construction

ter. We’ve grown considerably since that

includes innovative green materials such

time, as has the green building industry,

as MDF (medium density fiberboard), made

and in 2005, moved into a new headquar-

from 100% recovered and recycled wood

ters building, also an award winner for its

fiber; Marmoleum, a natural linoleum prod-

energy conservation features.

uct; and FSC (Forest Stewardship Council)

Whole Foods Market typically builds

Certified Wood. We’re also proud that

its new stores, or retrofits existing struc-

we’re in a continual learning process with

tures, in mixed-use shopping centers. Our

our green building efforts. We find out

stores are designed to fit in with their par-

what works well in one store and replicate

ticular neighborhoods and designs typically

that material—or improve upon it—for other

incorporate locally available building mate-

stores in our development queue.

rials—including re-purposed or recycled

Nearly every one of our newer stores

materials—which can save on transporta-

has a long list of environmentally friendly

tion of materials.

The green building techniques we use

materials, building systems, and design elements. We pay attention to every- thing,

also conserve natural resources by reduc-

from saving energy to supporting local

ing the use of virgin raw materials and

artists who use recycled materials as their

Letter

>>

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

LEED, GREEN GLOBES AND GREENCHILL

Numerous environmental certifications for our stores reflect our company’s commitment to energy efficient designs and equipment as well as using recycled and sustainable building materials where possible.

In 2005, our store in Sarasota, Florida received LEED (Leadership in Energy and

N o r th A m e ric a 44,998

Environmental Design) Silver Certification by the US Green Building Council, the first-

611.6 G S M

ever environmentally friendly supermarket designed in accordance with the LEED Green Building Rating System®. As of late 2011, we had nearly 40 stores that are either LEED or Green Globes certified, registered,

or in development.

Green Globes is an alternative green building standard with energy criteria more applicable to the food retail sector. Whole L atin A m e ric a a n d C a rib b e a n 1 ,70 4

Foods Market is the first supermarket to be certified through the Green Globes pro-

39. 5 G S M

gram. Our Dedham, Massachusetts store earned 3 Green Globes (similar to LEED Gold), thanks in part to a fuel cell and solar panels that generate on site at least

Number of LEED project

90% of the store’s power needs. Our Lake

Registered and certif ied in top regions by GSM

Grove, New York store earned both 3 Green

*Gro s s s q ua re me te r s (G S M)

Globes and LEED Gold certification.

a re re p or te d i n m i l l ion s .

54 Our Products

Our Green Mission

Looking Ahead—Together

E a s t A sia 1,995

Eu ro p e 1 ,70 6

107. 3 G S M

74, 5 G S M

M id dl e E a s t a n d N o r th Af ric a 1 , 2 97

69. 2 G S M

S o uth A sia

8 . 2 GSM Af ric a

8 GSM

S o uth Pa cif ic

6 GSM

55

Letter

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

G re e n G l o b e s Ce r tif ic atio n s fo r

GreenChill Awards (Renewed Yearly)

W h o l e Fo o d s M a rket Sto re s

for Whole Foods Market Stores

N o. of e quivale nce

Whole Foods M arket Store

Whole Foods M arket Store

N o. of e quivale nce

Dedham, Massachusetts

2009

3 (Eq. to LEED Gold)

Southglenn, Colorado

2009

Certified

Southglenn, Colorado

2009

1 (Eq. to LEED Certified)

Lake Grove, New York

2010

Gold

Lake Grove, New York

2010

3 (Eq. to LEED Gold)

Fairfield, Connecticut

2011

Gold

Wellesley, Massachusetts

2011

3 (Eq. to LEED Gold)

Wellesley, Massachusetts

2011

Gold

Salt Lake City, Utah

2011

2 (Eq. to LEED Silver)

Dedham, Massachusetts

2011

Silver

Brooklyn, New York

2011

Registered

Marietta, Georgia

2011

Gold

Lakewood, Texas

2011

Silver

Park Lane, Texas

2011

Silver

Fairview, Texas

2011

Silver

Foggy Bottom, Virginia

2011

Gold

Charlottesville, Virginia

2011

Silver

Coddington, California

2011

Gold

Blossom Hill, California

2011

Silver

Stanyan, California

2011

Gold

Lafayette, California

2011

Gold

Folsom, California

2011

Gold

Shaumberg, Illinois

2011

Silver

56 Our Products

Our Green Mission

Looking Ahead—Together

LE E D Ce r tif ic atio n s fo r W h o l e Fo o d s M a rket Sto re s

Whole Foods M arket Store

Ce r tif ic ation Level

Whole Foods M arket Store

Ce r tif ic ation Level

Sarasota, Florida

2005

Silver

57th Street, New York

2011

Registered

Lamar, Texas

2006

Certified

Danbury, Connecticut

—

Registered

El Segundo, California

2008

Certified

Brooklyn, New York

—

Registered

South Loop, Illinois

2009

Gold

Marlboro, New Jersey

—

Registered

Glastonbury, Connecticu

2009

Certified

Closter, New York

—

Registered

Arroyo, California

2009

Certified

Yonkers, New York

—

Registered

Jamboree, California

2009

Certified

Chandler, Arizona

—

Registered

West Side, New York

2010

Gold

Kahala Mall, Hawaii

—

Registered

Milford, Connecticut

2010

Gold

Las Vegas, Nevada

—

Registered

Lake Grove, New York

2010

Gold

Maui Mall, Hawaii

—

Registered

Lincoln Park, Illinois

2011

Certified

Scottsdale, Arizona

—

Registered

Venice, California

2011

Certified

Yonkers, New York

—

Registered

Darien, Connecticut

2011

Gold

Tempe, Arizona

—

Registered

N. Raleigh, N. Carolina

2011

Gold

Kailua, Hawaii

—

Registered

Fairfield, Connecticut

—

Registered

Santa Barbara, California

—

Registered

Yonkers, New York

—

Registered

Belmar, California

—

Registered

57

Letter

>>

Introduction

Whole Foods Market’s Green Mission

Organic and Natural Foods

FEEDING THE HOMELESS

Street feeding is one of the worst things you can do, because it keeps people in homeless status. There is a lot that happens around the world we cannot control.

We cannot stop earthquakes, we cannot prevent droughts, and we cannot prevent all conflict, but when we know where the hungry, the homeless and the sick exist, then we can help.

Our Devon, Pennsylvania store partners with two area homeless shelters to take the “Health Starts Here” message to them and to feed the patrons high quality, chef- prepared meals. They obtain most of the food from the store’s culling programs in Produce and Bakery, as well as using the food from dented cans in the Grocery department. The store’s partners are Safe Harbor, a shelter that houses fifty men and women located in the heart of downtown West Chester, Pennsylvania, and Center for Homeless Outreach, a fifty-bed facility located on the grounds of Norristown State Hospital.

Five people on each “Feed the Homeless” team are responsible for culling the food needed to make healthy versions of lasagna, fruit salad, green salad, vegetable soup, and dessert. Culled flowers are used for each table’s centerpiece. They wear chef coats when serving to demonstrate that the residents are important and that they are proud to be there with them.

Based on their collections, between the feeding the homeless and donating culled food to two different food cupboards, Team Member volunteers are culling about 1,500 pounds of usable food each month from the small Devon store.

58 Our Products

>>

Our Green Mission

59

Looking Ahead—Together

COMMUNITY PARTNERING As a company, Whole Foods Market donates

Finally, the number of ways we partner

at least five percent of profits to charitable

with community organizations off-site or

organizations in a variety of ways, including

on-site to help community gardens, provide

our 5% days, donation of product and ser-

space for art exhibits from fine painting to

vices, and Team Member volunteer projects.

guerrilla art, teach nutrition to school chil-

On designated days throughout the year,

dren or feed the homeless is limited only by

a total of 5% of the day’s net sales in our

the imaginations of our Team Members and

stores are donated to a designated local

community partners. For example, every

non-profit organization.

store in our Mid-Atlantic region helps with a

Customers help support these prese-

community garden project. Team Members

lected organizations just by shopping on

at our Braselton Distribution center grow

these 5% Days.

Occasionally all of the stores in a

vegetables and fruit on the facilit y ’s grounds and donate the produce to local

metropolitan area agree to sponsor an

food pantries. Our Ann Arbor, Michigan,

organization on a chosen day, which ups

store converted its empty mezzanine space

the amount of the donation considerably.

into an art gallery offering four different

Recipient organizations get to share their

exhibits each year, with free space for local

cause with the public by maintaining a

artists, as well as a performance venue for

booth at the store with a representative

local musicians. We’re an active part of our

from the organization for the entire day.

communities everywhere there’s a Whole

This is a great way for an organization to

Foods Market.

increase funds and gain exposure.

Whole Foods Market also partners with community organizations via product or A s a comp a ny, W hole Fo o d s

services donations. We may donate cases

Ma rke t dona te s a t le a s t f ive

of water and frozen fruit bars for a sum-

p e rce nt of prof it s to c ha r ita-

mer fun run, pastries for a concert held to

ble organizations in a va r ie t y

raise funds for charity, the use of a cooking

of wa ys, i ncludi ng our 5%

school for a cooking demonstration during

da ys, donation of product

a food-related conference, or even larger

a n d s e r v i c e s , a n d Te a m

donations during local emergencies, such

Me m b e r volu ntee r proje c t s .

as floods or hurricanes.

06

>> LOOKING AHEAD TOGETHER

Letter

>>

Introduction

Whole Foods Market’s Green Mission

LOOK ING A HEA D TOGETHER

Organic and Natural Foods

62 Our Products

Our Green Mission

63

Looking Ahead—Together

We’ve been trying to make green choices since we opened our first store. We understand that companies can have a large impact on our environment.

Yet we’re doing so much more, from work-

Are we doing ever y thing right? Of

ing upstream through our supply chain to

course not. As we state in the Whole Foods

read about our citizenship efforts and we’d love to hear from you. What would you like

ensure higher product quality and respon-

Market Declaration of Interdependence.

to know more about? What do you think we

sible packaging, to volunteering in our

Our Team Members are continually

communities on projects ranging from

striving to create that better tomorrow.

feeding the homeless to teaching nutri-

While that effort is an ongoing process,

Let us know at

tion in local elementary schools. We’re a

this Green Mission Report gives us a chance

greenmissionreport@wholefoods.com

pioneer in the use of, and experimentation

to showcase what we’ve achieved and our

with, alternative energy sources for retail

goals for the future.

stores. And every new store we open fea-

We’re always open to learning about

tures new and improved green building

new ways we can help make this a health-

systems, techniques, and materials.

ier planet. Thank you for taking the time to

might pay attention to next? What inspires you about what we’re doing?

65

Whole Foods Market, Inc .

550 B owie Street, Austin , Texas 78703 5 12 . 47 7. 4 455 , ex t. 20 8 01 Š2013 Whole Foods M arket . All right s rese r ve d . Printe d on recycle d pape r using vegetable inks .