Our approach to the future of responsible products starts with our current efforts to develop and encourage current best practices for how products are made—particularly for factory standards, restricted substances and packaging.

Factory standards:Ensuring that products are manufactured in factorieswith acceptable safety and labor practices is a critical first step. We apply these standards to REI-brand products and are taking additional steps to encourage that high standards are maintained in factories producing all other brand products we sell.

Restricted substances:We are collaborating with a new group of companies called the Apparel and Footwear International RSL Management Working Group (AFIRM) on the implementation of a next generation restricted substances list (RSL). The RSL is a step beyond compliance with U.S. law and requires that materials defined by the group not be present in REI brand gear and apparel products and that their use is minimized or eliminated from the production process.

In 2007, we will work to increase awareness about the need for a common RSL process among our peers who manufacture non-REI branded product. With a shared commitment to the RSL, we hope to advance efforts aimed at eliminating specific chemicals, additives, dyes and fixers from the manufacturing process—a move that will help to improve conditions for the individuals who make gear and apparel, reduce negative impacts on the environment, and eliminate potential risks to the consumer.

Packaging:REI is working on strategies to redesign and minimize our product packaging, while providing important product information and protection during shipping. Our progress to date includes developing creative packaging techniques, such as "self-packaging" for duffel bags, backpacks and tents, and incorporating environmentally friendly paper stock into some of our packaging and signage.

We joined the Sustainable Packaging Coalitionand we will use our industry experience to help generate new ideas and technologies.

Going forward, we want to further align product packaging with our other sustainability objectives, such as using sustainable forest products, minimizing waste and maximizing recycling.