Whereas:

Sustainability - Report (Generic)

2005 – Best Buy Co., Inc.

Whereas:

Investors increasingly seek disclosure of companies' social and environmental practices in the belief that they impact shareholder value. Many investors believe companies that are good employers, environmental stewards, and corporate citizens are more likely to be accepted in their communities and to prosper over the long term. According to Innovest, an environmental investment research consultant, major investment firms including ABN-AMRO, Neuberger Berman, Schroders, T. Rowe Price, and Zurich Scudder subscribe to information on companies' social and environmental practices.

A growing number of companies are issuing sustainability reports on their non-financial performance. According to the Dow Jones Sustainability Group, sustainability includes: "Encouraging long lasting social well being in communities where they operate, interacting with different stakeholders (e.g. clients, suppliers, employees, government, local communities, and non-governmental organizations) and responding to their specific and evolving needs, thereby securing a long-term 'license to operate,' superior customer and employee loyalty, and ultimately superior financial returns."

Companies increasingly recognize that transparency and dialogue on sustainability issues are key to business success. For example, Ford Motor Company states, "sustainability issues are neither incidental nor avoidable-they are at the heart of our business." Baxter International sees sustainability reporting as "a balanced way of thinking, acting and driving accountability across Baxter each and every day." American Electric Power has stated that "management and the Board have a fiduciary duty to carefully assess and disclose to shareholders appropriate information on the company's environmental risk exposure."

Moreover, many important global organizations support corporate sustainability reporting. The European Union Framework for Corporate Social Responsibility recommends corporate sustainability reporting, and the national governments of Australia, Japan and the United Kingdom have developed voluntary sustainability reporting guidelines. In addition, companies listed on the Johannesburg and the Paris Stock Exchanges must now report on certain environmental and social matters.

RESOLVED: Shareholders request that the company issue a report to shareholders dealing with the social and environmental issues related to sustainability by September 1,2005.

Supporting Statement: The report should include the company's definition of sustainability, as well as a review of company policies, practices, and performance related to social and environmental sustainability.

We recommend that the company consider using the Global Reporting Initiative's Sustainability Reporting Guidelines (GRI guidelines) to prepare the report. The Global Reporting Initiative (www.globalreporting.org) is an international standard-setting organization with representatives from the business, environmental, human rights and labor communities. The GRI Guidelines provide companies with guidance for report content, including performance in six categories (direct economic impacts, environmental, labor practices and decent work conditions, human rights, society, and product responsibility). The Guidelines provide a flexible reporting system that allows a company to omit some content requested by the Guidelines while still basing their reports on the GRI framework. More than 500 companies, including Agilent Technologies, Baxter International, BASF, British Telecom, Bristol-Myers Squibb, Danone, Electrolux, Ford, General Motors, Interface, KLM, NEC, Nike, Nokia, and Volkswagen, currently use the Guidelines for sustainability reporting. Others consult the Guidelines informally while preparing their reports.