REI uses a life cycle assessment approach when considering the environmental impacts of products. This process has led us to make materials choices that have lower impacts from origin to end-of-useful life. For example, the use of organic cotton and other natural fibers such as hemp or bamboo and the use of recycled synthetic fibers. In 2006 we launched a line of socks made with fibers spun from renewable, biodegradable and recyclable corn-based plastic.

While these efforts have undoubtedly reduced negative impacts, it is difficult for product developers to measure environmental effects and compare material choices in a way that enables them to make informed trade-off decisions in selecting materials and new production processes.

It can also be challenging for consumers to evaluate the environmental attributes of a particular material or compare one product to another. Without some recognized means to identify products that show improved performance, consumers can't factor this issue into their purchase decision.

We know through our experience in introducing innovations such as lightweight equipment, women's-specific gear and apparel, and waterproof and breathable outerwear, that consumer demand plays an important role in driving innovation in the industry.

In 2007 and as a first step, we will develop a consistent approach for assessing and communicating environmental attributes. We will introduce an icon in our product labeling to help consumers identify products that have lower impacts supported by a list of materials that we believe meet generally accepted hurdles for improved environmental performance. Our goal is to have a technically credible yet easily identifiable way for customers to be informed of the environmental characteristics of products.

To further educate our customers, information will be added to REI.com that provides transparency on how REI's product developers decided on materials, including the pros and cons of incorporating the materials into finished products.

In order to make future progress, REI will engage with industry peers, outside experts and other stakeholders to develop a common approach to assessing the environmental performance of products. As industry standard language and definitions emerge from that process, we will update our work as necessary and keep customers informed of progress.