action plan development packaging action...

Packaging action plan Wesfarmers Limited November 2016 – November 2018

ACTION PLAN DEVELOPMENT

ACTION PLAN TEMPLATE 2016 1

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.


Coles Performance goals and KPIs Actions Responsibility Baseline data Targets Milestones

1. Design - optimise packaging to achieve resource efficiency and reduce environmental impact

KPI 1: Implement the Sustainable Packaging Guidelines (SPG) for design or procurement of packaging In 2016 Coles has developed a new Sustainable Packaging Policy and associated packaging 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 packaging materials analysis tool. 4. Embed policy and materials selection into

products approval process. 5. Embed packaging materials data and policy

alignment into product specifications on Coles Fusion (supplier management system).

6. Develop new potential primary packaging 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 packaging in line with Sustainable Packaging Policy by 1 Jan 2020

1. Complete 2. Nov 16 3. Dec 16 4. Feb 17 5. March 17 6. Dec 16 7. Dec 17* 8. Ongoing 9. Dec 2018* *Subject to approval and funding


Performance goals and KPIs Actions Responsibility Baseline data Targets Milestones

2. Recycling - the efficient collection and recycling of packaging

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 in-store signage.

Coles Store Operations in partnership with RedCycle

525 Coles stores diverted 299 tonnes of consumer plastic packaging waste and plastic bags in FY16.

Increase in film packaging service scope and tonnes recycled.

1. Ongoing 2. Dec 17 3. 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.

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.

Operations and Supply Chain Learning and Development

Systems in place Increased recycling recovery rate for all materials

All - Ongoing

KPI 4 – Buy recycled The Coles Brand Sustainable Packaging Policy includes an objective of increasing the recycled content.

1. Track recycled content of primary packaging through Coles Fusion product specifications.

2. Report recycled content in Coles Brand Primary packaging.

Responsible Sourcing

Policy developed. Specification template established.

>5% products contain recycled packaging material

1. Reporting established

2. March 2017



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 packaging 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 appropriate

1. Dec 17 2. 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

Significant reduction in free plastic bag consumption.

1. Dec 16 2. Jan-Jun 17 3. Dec 16

onwards




KPI 8 –Reduction in the number of packaging items in the litter stream Conduct initiatives to reduce the number of packaging 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 packaging 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 packaging tonnes recycled.

1. Complete. 2. Dec 16 3. Dec 16 4. Dec 17 5. Ongoing 6. Dec 18


Kmart


1. Design – optimise packaging to achieve resource efficiency and reduce environmental impact

KPI 1: Implement the Sustainable Packaging Guidelines (SPG) for design or procurement of packaging Indicate how the SPG will be used for the design and/or procurement of new packaging, and review 100% of existing packaging. Signatories should have documented policies and/or procedures for evaluating and procuring packaging using the SPG or equivalent.

Action 1 – Integrate SPG principles into guidelines for suppliers, designers and sourcing teams for new and existing packaging

Sustainability team and Quality team (TBC)

N/A

SPG principles integrated into all relevant guidelines

November 2017



KPI 3 – On-site Recovery systems for recycling used packaging Indicate whether there is a recovery system in place.

Action 1 – Review options for reducing polystyrene in general waste

Sustainability team and Store Operations and Supply Chain (TBC)

Currently polystyrene accounts for approx. 40% of Kmart waste-to-landfill

Reduce waste-to-landfill as a percentage of units sold by 30% by 2020

November 2017 (action complete)


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 packaging and other waste materials.

Action 2 – Maintain all onsite recycling systems for recycling used packaging

Store operations 2016 – 13,000 tonnes of waste disposed

Reduce waste-to-landfill as a percentage of units sold by 30% by 2020

November 2017 (action complete)

KPI 4 – Buy recycled To have a documented policy to buy packaging or products made from recycled content, such as a ‘Buy Recycled’ policy.

Action 1 – Review commercial feasibility of recycled content in packaging and shopping bags

Sustainability team and Supply Chain team (TBC) and Store Operations

N/A Review complete and options agreed

November 2018



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 packaging.

Action 1 – Integrate SPG into supplier packaging guides Action 2 – Reduce cardboard packaging through carton optimisation

Sustainability team and Supply Chain

N/A SPG principles integrated into all relevant supplier guides Cardboard packaging reduced by 30% as a percentage of units sold by 2020

November 2018 (actions completed)


KPI 7 – Demonstrate other product stewardship outcomes. Broader programs or initiatives that contribute to environmental sustainability

Target 1 – Develop a sustainable materials and sustainable factories strategy

Sustainability team

N/A Strategy, targets and roadmap agreed

January 2017




Target 1 – Develop a reduce, reuse, recycle strategy for plastic shopping bags

Sustainability team and Store Operations

N/A

Increase percentage of reusable and recyclable bags used by customers

Nov 2017


Target




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. Target 2 – Process reviewed to ensure the packaging of all new products are reviewed and all packaging style guides/guidelines include current references to the SPG Target 3 – Re-develop ‘excessive packaging register’ that highlights instances of inefficient packaging and convey information to relevant buyers in order to take up the necessary action with suppliers

Sustainability team Packaging, sourcing and quality, supply chain Sustainability team, sourcing and quality, buying team

‘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 Relook at register used prior to 2015

Buying Teams and suppliers will gain an understanding of our APC commitments and how they apply to our specific packaging needs through frequent review of standards. Ongoing reviews completed for own brand products. Zero excess packaging

TBC Ongoing – SPG reference in style guides in Jan 2017 Ongoing




KPI 3 – On-site Recovery systems for recycling used packaging 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 packaging and other waste materials.

Target 1 – Review inclusion of more materials and stores in upcoming recycling waste tenders. Target 2 – Review economics of comingled collections in upcoming recycling and waste tenders

Store development Store development

269 stores have cardboard and plastic (select polymers) collections in place Nil comingled services exist due to financial restraints

Increase recycling of used packaging and other materials where solutions exist and economically feasible Increase the number of stores where commingled collection services exist

Commence tender in January 2017 Commence tender in January 2017


Target 1 – Packaging working group to discuss the development of a sustainable purchasing policy/procedure

Sustainability team, supply chain

No current policy in place. Air pouches made from pre-consumer recycled material currently used for online orders. Transit cartons re-used for replenishment lines

To be included in packaging guidelines/style guides

TBC





Target 1 - Target will build on its existing sustainable packaging standards and develop a workgroup to implement ‘closed loop’ program Target 2 – Integrate packaging sustainability criteria into contracts and tenders

Sustainability team, supply chain, sourcing and quality, packaging Procurement, store development, sustainability team

‘Factory to Customer” Working group disbanded following internal restructures References to the SPG in packaging guidelines Nil

Integrate packaging sustainability into contracts, tenders. Update references to the SPG in packaging guidelines and expand to packaging style guides Develop and approve criteria - use criteria with all GNFS suppliers

TBC Jan 2017 Develop criteria by June 2017 – Criteria used in all tenders starting July 2017

KPI 7 – Demonstrate other product stewardship outcomes.

Target 1 -Target is a liable party under the National Television and Computer Recycling Scheme, which is a co-regulatory scheme.

Sustainability team

Scheme established in 2011

Set by scheme Ongoing


Broader programs or initiatives that contribute to environmental sustainability




Target 1 - Further investigate types and quantities of materials currently being disposed of to landfill and which could be diverted to recycling. Target 2 – Refresh Target/Alannah & Madeline re-usable shopping bag offer and promotion program

Store development Accessories Buyer, community relations, store operations

Waste audits conducted in 2014 Current offer: A&M ‘Bag for Life’ (Jute) $4, 3 x red A&M re-usable bags Bag profits donated to the Alannah & Madeline foundation

Reduce waste across our operations Sell through current stocks and introduce a $2 option

Start Jan 2017 Start Feb 2017


Officeworks




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.

Sustainability Team

Ongoing training for global sourcing team

Ongoing training covering new and existing private label product packaging

Ongoing training



KPI 3 – On-site Recovery systems for recycling used packaging

Maintain on-site recovery systems to recycle key packaging 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


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 packaging and other waste materials.

commingling in FY16

Increase by 10% by FY18


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

4% sales from recycled

6% sales from recycled by 2018

5% sales from recycled by 2017 6% sales from recycled by 2018



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 packaging working group consisting of team members from different departments, with the purpose of identifying ways to integrate packaging requirements within the business.

Sustainability Team

Bi-annual meetings

Quarterly meetings

Quarterly meetings


design and recycling of packaging.

Work with waste contractors to improve collection and recycling of packaging within Stores. Work with other users of the Australian Recycling Label.

Ongoing Ongoing

Ongoing Ongoing

Ongoing Ongoing


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.

Sustainability Team

Recycled in FY16: 947,349 printer cartridges 390,651 kilograms of computers and accessories Equivalent of 41,364 mobile phones and batteries

Increase the customer recycling of these items

Annual increase



KPI 8 –Reduction in the number of packaging items in the litter stream

Implementation of the Australian Recycling label on private label packaging to make it easier for consumers to recycled or dispose of packaging. Ongoing participation in Clean Up Australian Day.

Sustainability Team

500 plus All new private label products to include label

All new private label products to include label


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


Bunnings




Bunnings will continue to identify and implement shipping packaging efficiencies at Distribution centres to optimise product / pallet intensity and reduce the number of pallets used/shipped. Bunnings will continue to engage with the business and broader team to identify packaging efficiencies using the “team ideas” merchandise campaign. Key initiatives will be tracked for progress of implementation and result achieved. The existing “Buyers packaging 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 packaging improvement implemented.

Logistics and Improvement Business improvement and merchandising Risk/Sustainability, Merchandise Compliance and Global Sourcing Risk/sustainability team

2016 total DC pallets shipped Number of packaging ideas submitted 2016 Supplier trading terms 2016 survey Number of supplier responses/ initiatives

10% reduction in pallets shipped Recording and evaluation of all initiatives Fully incorporated in Supplier trading terms Increase on previous year

Q2 result Dec 2016 June 30 2017 summary of key initiatives for sustainability report 2017 trading terms review June 30 2017 summary for sustainability report




KPI 2 – National recycling rate for packaging

Not applicable to retail signatories N/A


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 packaging recycling at stores (EPS, PP)

Store Operations and Non-Core Procurement Risk/Sustainability, 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 30 2017 summary for sustainability report Determine industry capacity with waste service provider March 2017


The Bunnings packaging guide stipulates a preference, where feasible, for recycled content in packaging. Bunnings preference for use of recycled packaging material where feasible, will be communicated via the Packaging Guide incorporated in suppliers trading terms. Bunnings will evaluate the current level of recycled content packaging used in selected direct sourced

EXISTING Risk/Sustainability, Merchandise Compliance and Global Sourcing Risk/Sustainability, Merchandise

2016 Supplier trading terms

Fully incorporated in Supplier trading terms Identify further opportunities to

2017 trading terms review June 30 2017 summary for


products to confirm the baseline and optimum levels of use. Bunnings will evaluate, with view to increasing where feasible, the recycled content in the range of cardboard storage cartons, and floor protection product sold.

Compliance and Global Sourcing Risk/Sustainability and Merchandising

2015 global sourcing estimations Unknown

increase recycled content use Current Baseline and opportunities assessed

sustainability report June 30 2017 summary for sustainability report

KPI 5 – Additional tonnes of material reprocessed in primary and secondary markets as a result of Covenant-funded projects

Not applicable to retail signatories N/A




In its trading terms, Bunnings expects suppliers of pre-packed products, to develop action plans in accordance with APC standards, to ensure product packaging design is optimised to minimise both environmental impact and the use of non-recyclable materials. Bunnings will continue to evaluate key supplier’s uptake in membership to the APC and progress with action plans.

EXISTING Risk/Sustainability and Merchandising Compliance

Number of supplier signatories FY 2016

Number of signatories maintained or increased in FY 2017

June 30 2017 summary for sustainability report


Bunnings will investigate baseline data and opportunities to reduce or substitute the use of non-recyclable Expanded Poly Styrene (EPS) in product packaging.

Risk/Sustainability and Merchandising

Unknown Current Baseline and opportunities assessed.

Outdoor furniture and BBQ range assessed by December 2017


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.

Community Involvement/Sustainability Community Involvement/Sustainability and Store Operations

Current activities supported Currently no activity

Increase in actives supported Increased level of engagement and opportunity assessment

June 30 2017 summary for sustainability report June 30 2017 summary for sustainability report. Update Post 2018 adoption of CDL in WA and NSW


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

EXISTING EXISTING


Wesfarmers Industrial and Safety

Note: WIS is working on a significant sustainable packaging plan with targets and subsequently baseline data and milestones to be determined in early 2017.




WIS has implemented the sustainable product and packaging guidelines that were distributed to National Category Managers and Brand Managers, and are aligned with the Sustainable Packaging Guidelines. WIS has conducted a supplier survey to identify further opportunities to improve packaging design. We want to review the supplier survey and see where we can take it.

WIS Sustainability Lead

To be determined

To be determined

To be determined





All WIS sites are supported by recycling services for cardboard and plastic.

Reporting, WIS Sustainability Lead

To be determined

To be determined

To be determined


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.


To be determined

To be determined

To be determined



KPI 6 – Supply chain product stewardship To have formal processes/policies in place for working with others along the

A packaging review template is used to assess Global Sourcing suppliers and some domestic suppliers.


To be determined

To be determined

To be determined


supply chain to improve the design and recycling of packaging.


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.


n/a n/a n/a




Our products are sold to commercial and industrial customers and rarely enters the litter stream.


To be determined

To be determined

To be determined

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