Packaging action plan

Transcription

1 ACTION PLAN DEVELOPMENT Packaging action plan Wesfarmers Limited November 2016 November 2018

2 From its origins in 1914 as a Western Australian farmers cooperative, Wesfarmers Limited has grown into one of Australia s largest listed companies. Our diverse business operations across Australia, New Zealand, United Kingdom and Ireland include supermarkets; department stores; home improvement; office supplies; coal production and export; chemicals, energy and fertilisers; and industrial and safety products. With headquarters in Perth, Western Australia, we are one of Australia s largest employers, with approximately 220,000 employees and approximately 530,000 shareholders. 1

3 Coles 1. Design - optimise to achieve resource efficiency and reduce environmental impact KPI 1: Implement the Sustainable Packaging Guidelines (SPG) for design or procurement of In 2016 Coles has developed a new Sustainable Packaging Policy and associated materials analysis tool based on the SPGs. A Coles Brand Sustainable Packaging Project plan has been developed to implement the SPGs. 1. Establish working group for Sustainable Packaging. 2. Recycling industry validation of recyclable materials. 3. Finalise materials analysis tool. 4. Embed policy and materials selection into products approval process. 5. Embed materials data and policy alignment into product specifications on Coles Fusion (supplier management system). 6. Develop new potential primary labelling formats. 7. Roll out new labelling formats (approval dependent). 8. Promote film plastics recycling service through REDCycle at Coles supermarkets. 9. Expand film plastics recycling service (approval and funding dependent). Coles Brand and Responsible Sourcing teams Sustainable Packaging Policy developed and finalised. Sustainable Packaging Project working group established and plan drafted. 100% Coles brand in line with Sustainable Packaging Policy by 1 Jan Complete 2. Nov Dec Feb March Dec Dec 17* 8. Ongoing 9. Dec 2018* *Subject to approval and funding 2

4 2. Recycling - the efficient collection and recycling of KPI 3 On-site Recovery Customers 1. Maintain film plastics recycling services through REDCycle for at least 500 metropolitan stores. 2. Expand service to additional stores where possible. 3. Promote the film plastics recycling service to customers through product labelling and instore signage. Coles Store Operations in partnership with RedCycle 525 Coles stores diverted 299 tonnes of consumer plastic waste and plastic bags in FY16. Increase in film service scope and tonnes recycled. 1. Ongoing 2. Dec Annual increase KPI 3 On-site Recovery Coles Operations All Coles stores have recycling systems established for cardboard, and clear plastic shrink wrap. Over 600 stores also have food waste diversion through Coles relationships with SecondBite. Further, we donate surplus fresh and ambient food to both SecondBite and Foodbank from our distribution centres enters nationally. All our DCs have cardboard and plastic recycling with daily collection. KPI 4 Buy recycled The Coles Brand Sustainable Packaging Policy includes an objective of increasing the recycled content. 1. Maintain commercial recycling services at all stores and DCs. 2. Investigate reverse logistic options for additional recyclable material consolidation at DCs. 3. Increase and maintain education of team members to increase the diversion of recyclable materials and decrease contamination. 4. Continue education for DC team members. 5. Continue education for store team members. 1. Track recycled content of primary through Coles Fusion product specifications. 2. Report recycled content in Coles Brand Primary. Operations and Supply Chain Learning and Development Responsible Sourcing Systems in place Policy developed. Specification template established. Increased recycling recovery rate for all materials >5% products contain recycled material All - Ongoing 1. Reporting established 2. March

5 3. Product Stewardship - demonstrated commitment to product stewardship KPI 6 Supply chain product stewardship Coles has established a produce crate cycling program which significantly reduces transport in our fresh produce supply chain. 1. Increase the use of returnable produce crates (RPCs) for deliveries of product to stores. 2. Explore expansion of system as appropriate to meat supply chain, based on Life Cycle Assessment. Operations and Supply Chain System established Expanded system to additional produce segments, and meat as 1. Dec Dec 18 KPI 7 Demonstrate other product stewardship outcomes. Coles has the following product stewardship programs developed for implementation over the Action Plan period: 1. Shopping bag reduction plan. 2. Sustainable Timber Pulp and Paper Policy and processes to move to sustainable certified (FSC or PEFC) products. 3. Ethically Certified Tea, Coffee and Cocoa - UTZ/Fairtrade/Rainforest Alliance 1. Establish working group. 2. Review and refresh shopping bag reduction plan. 3. Implement shopping bag reduction plan. Responsible Sourcing; Store Operations; Non-food Merchandise category team. Working Group established appropriate Significant reduction in free plastic bag consumption. 1. Dec Jan-Jun Dec 16 onwards 4

6 3. Product Stewardship - demonstrated commitment to product stewardship KPI 8 Reduction in the number of items in the litter stream Conduct initiatives to reduce the number of items found in the environment (outside of waste and recycling streams). 1. Establish working groups for Bag Reduction and Sustainable Packaging. 2. Review and refresh shopping bag reduction plan. 3. Develop new potential primary labelling formats. 4. Roll out new labelling formats (approval dependent). 5. Promote film plastics recycling service at Coles supermarkets. 6. Expand film plastics recycling service (approval and funding dependent). Coles Brand and Responsible Sourcing teams Sustainable Packaging Project plan drafted. Working groups established. Significant reduction in free plastic bag consumption. Increase in film tonnes recycled. 1. Complete. 2. Dec Dec Dec Ongoing 6. Dec 18 5

7 Kmart 1. Design optimise to achieve resource efficiency and reduce environmental impact KPI 1: Implement the Sustainable Packaging Guidelines (SPG) for design or procurement of Action 1 Integrate SPG principles into guidelines for suppliers, designers and sourcing teams for new and existing team and Quality team (TBC) N/A SPG principles integrated into all relevant guidelines November 2017 Indicate how the SPG will be used for the design and/or procurement of new, and review 100% of existing. Signatories should have documented policies and/or procedures for evaluating and procuring using the SPG or equivalent. 2. Recycling - the efficient collection and recycling of KPI 3 On-site Recovery systems for recycling used Action 1 Review options for reducing polystyrene in general waste November 2017 (action complete) Indicate whether there is a recovery system in place. team and Store Operations and Supply Chain (TBC) Currently polystyrene accounts for approx. 40% of Kmart waste-tolandfill Reduce waste-tolandfill as a percentage of units sold by 30% by

8 If so, commit to maintaining, recording volumes, reviewing and/or improving this system. If not, outline how a recovery system will be established for used and other waste materials. KPI 4 Buy recycled To have a documented policy to buy or products made from recycled content, such as a Buy Recycled policy. Action 2 Maintain all onsite recycling systems for recycling used Action 1 Review commercial feasibility of recycled content in and shopping bags Store operations ,000 tonnes of waste disposed team and Supply Chain team (TBC) and Store Operations N/A Reduce waste-tolandfill as a percentage of units sold by 30% by 2020 Review complete and options agreed November 2017 (action complete) November Product Stewardship - demonstrated commitment to product stewardship KPI 6 Supply chain product stewardship To have formal processes/policies in place for working with others along the supply chain to improve the design and recycling of. Action 1 Integrate SPG into supplier guides Action 2 Reduce cardboard through carton optimisation team and Supply Chain N/A SPG principles integrated into all relevant supplier guides Cardboard reduced by 30% as a percentage of units sold by 2020 November 2018 (actions completed) 7

9 KPI 7 Demonstrate other product stewardship outcomes. Target 1 Develop a sustainable materials and sustainable factories strategy team N/A Strategy, targets and roadmap agreed January 2017 Broader programs or initiatives that contribute to environmental sustainability 3. Product Stewardship - demonstrated commitment to product stewardship KPI 8 Reduction in the number of items in the litter stream Target 1 Develop a reduce, reuse, recycle strategy for plastic shopping bags team and Store Operations N/A Nov 2017 Conduct initiatives to reduce the number of items found in the environment (outside of waste and recycling streams). Increase percentage of reusable and recyclable bags used by customers 8

10 Target 1. Design - optimise to achieve resource efficiency and reduce environmental impact KPI 1: Implement the Sustainable Packaging Guidelines (SPG) for design or procurement of Target 1 - Working Group will be re-formed to coordinate the implementation of the SPG and develop strategies to adhere to the APC goals for key product categories. team TBC Indicate how the SPG will be used for the design and/or procurement of new, and review 100% of existing. Signatories should have documented policies and/or procedures for evaluating and procuring using the SPG or equivalent. Target 2 Process reviewed to ensure the of all new products are reviewed and all style guides/guidelines include current references to the SPG Packaging, sourcing and quality, supply chain FY16 Factory to Customer meetings disbanded following internal restructure References to the SPG are currently in SRP guidelines (International Transit Packaging Standards) and Footwear Quality Manual Buying Teams and suppliers will gain an understanding of our APC commitments and how they apply to our specific needs through frequent review of standards. Ongoing reviews completed for own brand products. Ongoing SPG reference in style guides in Jan 2017 Target 3 Re-develop excessive register that highlights instances of inefficient and convey information to relevant buyers in order to take up the necessary action with suppliers team, sourcing and quality, buying team Relook at register used prior to 2015 Zero excess Ongoing 9

11 2. Recycling - the efficient collection and recycling of KPI 3 On-site Recovery systems for recycling used Target 1 Review inclusion of more materials and stores in upcoming recycling waste tenders. Store development Commence tender in January 2017 Indicate whether there is a recovery system in place. If so, commit to maintaining, recording volumes, reviewing and/or improving this system. If not, outline how a recovery system will be established for used and other waste materials. KPI 4 Buy recycled To have a documented policy to buy or products made from recycled content, such as a Buy Recycled policy. Target 2 Review economics of comingled collections in upcoming recycling and waste tenders Target 1 Packaging working group to discuss the development of a sustainable purchasing policy/procedure Store development team, supply chain 269 stores have cardboard and plastic (select polymers) collections in place Nil comingled services exist due to financial restraints No current policy in place. Air pouches made from preconsumer recycled material currently used for online orders. Transit cartons re-used for replenishment lines Increase recycling of used and other materials where solutions exist and economically feasible Increase the number of stores where commingled collection services exist included in guidelines/style guides Commence tender in January 2017 TBC 10

12 3. Product Stewardship - demonstrated commitment to product stewardship KPI 6 Supply chain product stewardship To have formal processes/policies in place for working with others along the supply chain to improve the design and recycling of. Target 1 - Target will build on its existing sustainable standards and develop a workgroup to implement closed loop program team, supply chain, sourcing and quality, Factory to Customer Working group disbanded following internal restructures Integrate sustainability into contracts, tenders. TBC Jan 2017 References to the SPG in guidelines Update references to the SPG in guidelines and expand to style guides KPI 7 Demonstrate other product stewardship outcomes. Target 2 Integrate sustainability criteria into contracts and tenders Target 1 -Target is a liable party under the National Television and Computer Recycling Scheme, which is a co-regulatory scheme. Procurement, store development, sustainability team team Nil Scheme established in 2011 Develop and approve criteria - use criteria with all GNFS suppliers Set by scheme Develop criteria by June 2017 Criteria used in all tenders starting July 2017 Ongoing 11

13 Broader programs or initiatives that contribute to environmental sustainability 3. Product Stewardship - demonstrated commitment to product stewardship KPI 8 Reduction in the number of items in the litter stream Target 1 - Further investigate types and quantities of materials currently being disposed of to landfill and which could be diverted to recycling. Store development Waste audits conducted in 2014 Reduce waste across our operations Start Jan 2017 Conduct initiatives to reduce the number of items found in the environment (outside of waste and recycling streams). Target 2 Refresh Target/Alannah & Madeline reusable shopping bag offer and promotion program Accessories Buyer, community relations, store operations Current offer: A&M Bag for Life (Jute) $4, 3 x red A&M reusable bags Sell through current stocks and introduce a $2 option Start Feb 2017 Bag profits donated to the Alannah & Madeline foundation 12

14 Officeworks 1. Design - optimise to achieve resource efficiency and reduce environmental impact KPI 1: Implement the Sustainable Packaging Guidelines (SPG) for design or procurement of Training on SPG guidelines (or equivalent) provided to key team members responsible for the sourcing of private label products. Incorporate the requirements of the SPG to the training. Team Ongoing training for global sourcing team Ongoing training Indicate how the SPG will be used for the design and/or procurement of new, and review 100% of existing. Signatories should have documented policies and/or procedures for evaluating and procuring using the SPG or equivalent. Ongoing training covering new and existing private label product 2. Recycling - the efficient collection and recycling of KPI 3 On-site Recovery systems for recycling used Maintain on-site recovery systems to recycle key materials, including soft plastics, cardboard and paper. Operations Team Recycled 4054 tonnes of paper cardboard and plastic and Increase by 10% by 2018 Increase by 5% by FY17 13

15 Indicate whether there is a recovery system in place. If so, commit to maintaining, recording volumes, reviewing and/or improving this system. If not, outline how a recovery system will be established for used and other waste materials. KPI 4 Buy recycled To have a documented policy to buy or products made from recycled content, such as a Buy Recycled policy. Maintain existing policy, Responsible Forest Products Purchasing Policy that favours 100% recycled content or FSC certified products. Maintain internal targets for purchase of private label products made from recycled materials. Merchandise Team commingling in FY16 4% sales from recycled 6% sales from recycled by 2018 Increase by 10% by FY18 5% sales from recycled by % sales from recycled by Product Stewardship - demonstrated commitment to product stewardship KPI 6 Supply chain product stewardship To have formal processes/policies in place for working with others along the supply chain to improve the Maintain working group consisting of team members from different departments, with the purpose of identifying ways to integrate requirements within the business. Team Bi-annual meetings Quarterly meetings Quarterly meetings 14

16 design and recycling of. Work with waste contractors to improve collection and recycling of within Stores. Ongoing Ongoing Ongoing Work with other users of the Australian Recycling Label. Ongoing Ongoing Ongoing KPI 7 Demonstrate other product stewardship outcomes. Broader programs or initiatives that contribute to environmental sustainability Review current product stewardship programs. Add programs for products being sold in store, and which cannot be recycled through existing kerbside collections. Continue to liaise with Government on the development of product stewardship programs. Team Recycled in FY16: 947,349 printer cartridges 390,651 kilograms of computers and accessories Increase the customer recycling of these items Annual increase Equivalent of 41,364 mobile phones and batteries 3. Product Stewardship - demonstrated commitment to product stewardship KPI 8 Reduction in the number of items in the litter stream Implementation of the Australian Recycling label on private label to make it easier for consumers to recycled or dispose of. Team 500 plus All new private label products to include label All new private label products to include label Ongoing participation in Clean Up Australian Day. 15

17 Conduct initiatives to reduce the number of items found in the environment (outside of waste and recycling streams). 16

18 Bunnings 1. Design - optimise to achieve resource efficiency and reduce environmental impact KPI 1: Implement the Sustainable Packaging Guidelines (SPG) for design or procurement of Bunnings will continue to identify and implement shipping efficiencies at Distribution centres to optimise product / pallet intensity and reduce the number of pallets used/shipped. Logistics and Improvement 2016 total DC pallets shipped 10% reduction in pallets shipped Q2 result Dec 2016 Indicate how the SPG will be used for the design and/or procurement of new, and review 100% of existing. Bunnings will continue to engage with the business and broader team to identify efficiencies using the team ideas merchandise campaign. Key initiatives will be tracked for progress of implementation and result achieved. Business improvement and merchandising Number of ideas submitted Recording and evaluation of all initiatives June summary of key initiatives for sustainability report Signatories should have documented policies and/or procedures for evaluating and procuring using the SPG or equivalent. The existing Buyers guide will be incorporated into supplier trading terms to communicate requirements throughout the supply chain. Bunnings will survey selected major packaged goods suppliers annually to evaluate improvement implemented. Risk/, Merchandise Compliance and Global Sourcing Risk/sustainability team 2016 Supplier trading terms 2016 survey Number of supplier responses/ initiatives Fully incorporated in Supplier trading terms Increase on previous year 2017 trading terms review June summary for sustainability report 17

19 2. Recycling - the efficient collection and recycling of KPI 2 National recycling rate for Not applicable to retail signatories N/A KPI 3 On-site Recovery systems for recycling used Indicate whether there is a recovery system in place. If so, commit to maintaining, recording volumes, reviewing and/or improving this system. If not, outline how a recovery system will be established for used and other waste materials. Bunnings will continue to optimise existing store level recycling of cardboard and plastics with an aim to further reduce landfill waste levels. Conduct further industry outreach to test viability and build capacity to support wider range of plastic recycling at stores (EPS, PP) Store Operations and Non-Core Procurement Risk/, Non-Core Procurement and Store Operations Landfill waste and recycling data FY 2016 Existing PP and EPS recycling services in place at stores 10% reduction in landfill waste reported 2017 Extend EPS and/or PP recycling to further sites if viable June summary for sustainability report Determine industry capacity with waste service provider March 2017 KPI 4 Buy recycled To have a documented policy to buy or products made from recycled content, such as a Buy Recycled policy. The Bunnings guide stipulates a preference, where feasible, for recycled content in. Bunnings preference for use of recycled material where feasible, will be communicated via the Packaging Guide incorporated in suppliers trading terms. EXISTING Risk/, Merchandise Compliance and Global Sourcing 2016 Supplier trading terms Fully incorporated in Supplier trading terms 2017 trading terms review Bunnings will evaluate the current level of recycled content used in selected direct sourced Risk/, Merchandise Identify further opportunities to June summary for 18

20 products to confirm the baseline and optimum levels of use. Compliance and Global Sourcing 2015 global sourcing estimations increase recycled content use sustainability report KPI 5 Additional tonnes of material reprocessed in primary and secondary markets as a result of Covenant-funded projects Bunnings will evaluate, with view to increasing where feasible, the recycled content in the range of cardboard storage cartons, and floor protection product sold. Not applicable to retail signatories Risk/ and Merchandising N/A Unknown Current Baseline and opportunities assessed June summary for sustainability report 3. Product Stewardship - demonstrated commitment to product stewardship KPI 6 Supply chain product stewardship To have formal processes/policies in place for working with others along the supply chain to improve the design and recycling of. In its trading terms, Bunnings expects suppliers of pre-packed products, to develop action plans in accordance with APC standards, to ensure product design is optimised to minimise both environmental impact and the use of non-recyclable materials. EXISTING Bunnings will continue to evaluate key supplier s uptake in membership to the APC and progress with action plans. Risk/ and Merchandising Compliance Number of supplier signatories FY 2016 Number of signatories maintained or increased in FY 2017 June summary for sustainability report 19

21 Bunnings will investigate baseline data and opportunities to reduce or substitute the use of nonrecyclable Expanded Poly Styrene (EPS) in product. Risk/ and Merchandising Unknown Current Baseline and opportunities assessed. Outdoor furniture and BBQ range assessed by December 2017 KPI 7 Demonstrate other product stewardship outcomes. Broader programs or initiatives that contribute to environmental sustainability KPI 8 Reduction in the number of items in the litter stream Conduct initiatives to reduce the number of items found in the environment (outside of waste and recycling streams). Continue to investigate opportunities with manufactures and or National and State government bodies to support product stewardship programs, including Paintback and Batteryback. Bunnings will liaise with Government stakeholders to evaluate the opportunities to support reverse vending machines as part of state level Container Deposit Scheme pilot programs. Bunnings ceased the use of plastic shopping bags in 2008 as a response to the litter risk. Strong housekeeping protocols around its sites and product types tend not to be unwrapped and dumped in public areas. Also see action listed in KPI 7 Community Involvement/Sustai nability Community Involvement/Sustai nability and Store Operations EXISTING EXISTING Current activities supported Currently no activity Increase in actives supported Increased level of engagement and opportunity assessment June summary for sustainability report June summary for sustainability report. Update Post 2018 adoption of CDL in WA and NSW 20

22 Wesfarmers Industrial and Safety Note: WIS is working on a significant sustainable plan with targets and subsequently baseline data and milestones to be in early Design - optimise to achieve resource efficiency and reduce environmental impact KPI 1: Implement the Sustainable Packaging Guidelines (SPG) for design or procurement of WIS has implemented the sustainable product and guidelines that were distributed to National Category Managers and Brand Managers, and are aligned with the Sustainable Packaging Guidelines. WIS Lead Indicate how the SPG will be used for the design and/or procurement of new, and review 100% of existing. WIS has conducted a supplier survey to identify further opportunities to improve design. We want to review the supplier survey and see where we can take it. Signatories should have documented policies and/or procedures for evaluating and procuring using the SPG or equivalent. 2. Recycling - the efficient collection and recycling of 21

23 KPI 3 On-site Recovery systems for recycling used All WIS sites are supported by recycling services for cardboard and plastic. Reporting, WIS Lead Indicate whether there is a recovery system in place. If so, commit to maintaining, recording volumes, reviewing and/or improving this system. If not, outline how a recovery system will be established for used and other waste materials. KPI 4 Buy recycled To have a documented policy to buy or products made from recycled content, such as a Buy Recycled policy. All WIS sites undergo a waste audit at least once per year with its waste service producer to help further improve its stores behaviours around recycling. WIS Lead 3. Product Stewardship - demonstrated commitment to product stewardship KPI 6 Supply chain product stewardship To have formal processes/policies in place for working with others along the A review template is used to assess Global Sourcing suppliers and some domestic suppliers. WIS Lead 22

24 supply chain to improve the design and recycling of. KPI 7 Demonstrate other product stewardship outcomes. Broader programs or initiatives that contribute to environmental sustainability We currently have a focus on renewable energy in the form of solar photovoltaic systems and improving waste management practices. Our progress is reported annually in the Wesfarmers sustainability report. WIS Lead n/a n/a n/a 3. Product Stewardship - demonstrated commitment to product stewardship KPI 8 Reduction in the number of items in the litter stream Our products are sold to commercial and industrial customers and rarely enters the litter stream. WIS Lead Conduct initiatives to reduce the number of items found in the environment (outside of waste and recycling streams). 23