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Letter from Steve Burd
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Dear Safeway Stakeholder,

Last year, we introduced Safeway's first consolidated corporate social responsibility (CSR) report highlighting our progress on a range of sustainability and social responsibility fronts. We understand CSR is a process that mirrors our ongoing efforts to balance the needs of our business with being responsible stewards of the planet and communities we serve.

We recently formed a cross-functional CSR Taskforce of senior leaders across the company to build on and, in some cases, accelerate our efforts in sustainable business practices and corporate citizenship. We are also the first U.S. based grocery retailer to join The Sustainability Consortium to support the collaborative development of a sustainable global supply chain.

In fact, Safeway has a history of leadership and innovation in CSR. For example, we were the first and only retail grocer to join the Chicago Climate Exchange. We were one of the first members of Feeding America and have been assisting people with disabilities through Easter Seals and other community-based organizations for nearly 25 years. Since 2001, we have raised more than $132 million for breast and prostate cancer research, and as one of the largest corporate sponsors of the Muscular Dystrophy Association (MDA), we have raised more than $42 million in an effort to defeat neuromuscular diseases that affect more than 1 million Americans.

In 2009, we opened our first store built to Leadership in Energy and Environmental Design (LEED) Gold Standards in Santa Cruz, California, and have plans to register additional stores for LEED certification in 2010. We continue to look for innovative ways to reduce our carbon footprint. For our efforts, we were named to the Dow Jones Sustainability Index North America, and were also recognized by Newsweek as one of the "Greenest Big Companies in America."

As we look ahead, we see opportunity to build on our already strong reputation as a CSR leader in the grocery retail sector. We will remain alert to developments in environmental, socially responsible and ethical business practices – and eager to adapt our business appropriately. Thank you for taking the time to read this report.

Sincerely,


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