WOOLWORTHS LIMITED WOOLWORTHS LIMITED A B N

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WOOLWORTHS LIMITED WOOLWORTHS LIMITED A B N Powered By Docstoc
					 WOOLWORTHS LIMITED
         A.B.N 88 000 014 675




NATIONAL PACKAGING COVENANT

        ACTION PLAN

         2007 – 2010




             Page 1 of 12
Table of Content



1. Executive Summary ................................................................................................ 3

2. Woolworths Commitment ........................................................................................ 4

3. Purpose of This Action Plan.................................................................................... 4

4. Period and Scope of the Action Plan ...................................................................... 4

5. Covenant Contact Officer........................................................................................ 4

6. Company Profile...................................................................................................... 5

7. Position in the Packaging Supply Chain ................................................................. 6

8. Summary of Related Initiatives to Date................................................................... 6

9. Action Plan for July 2007 – July 2010 ..................................................................... 9




                                                   Page 2 of 12
1. Executive Summary
Woolworths Limited is a signatory to the National Packaging Covenant and commited
to achieving the Covenant objectives.

Woolworths Limited is an Australian public corporation with annual sales of over 38
billion, over 300,000 shareholders and 175,000 employees. The company is
recognised as one of the top five retailers in the world.

Woolworths Limited major brands in Australia are: Woolworths and Safeway
supermarkets, Woolworths and Safeway Liquor, Caltex/Woolworths Petrol, Dick
Smith Electronics, PowerHouse, Tandy, BWS, Dan Murphy's and BIG W.

This Action Plan has been prepared for Woolworths Limited as required by the
revised National Packaging Covenant (2005-2010). The Plan is prepared for the 3-
year period of July 2007 – June 2010 with a focus on our Supermarket business
which comprises 80% of Group’s total sales.

This Action Plan presents a summary of initiatives implemented to date and outlines
future actions for reducing packaging and waste.




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2. Woolworths Commitment
Woolworths Limited is committed to improving its environmental footprint.
Woolworths Limited is preparing a comprehensive Sustainability Strategy addressing
the most significant environmental issues facing its many business operations.
These issues include energy use, greenhouse gas emissions, water use, waste and
packaging materials. Our commitment to the National Packaging Covenant is a key
component of our Sustainability Strategy.

Retailers play a key role in the packaging supply chain and have the ability to make
considerable improvements. We are committed to finding cost effective and
pragmatic solutions to reduce our packaging waste while delivering quality to our
customers at everyday low prices.

3. Purpose of This Action Plan
This Action Plan has been prepared for Woolworths Limited as required by the
revised National Packaging Covenant (2005-2010). This Action Plan presents a
summary of initiatives implemented to date and outlines future actions for reducing
packaging and waste.

4. Period and Scope of the Action Plan
This Action Plan is prepared for the 3-year period of July 2007 – June 2010 and it
covers support offices, stores and distribution centres. However, Woolworths
Supermarkets division accounts for more than 80% of the Group’s total sales and it is
the key focus of this Action Plan.

5. Covenant Contact
For further information on matters relating to the National Packaging Covenant and
this Action Plan please contact:

Ms Armineh Mardirossian
Group Sustainability Manager

Woolworths Limited
1 Woolworths Way
Bella Vista NSW 2153
PO Box 8000
Baulkham Hills NSW 2153


Telephone: 02 8885 3060
Mobile: 0448 271 979
Email: amardirossian@woolworths.com.au




                                    Page 4 of 12
6. Company Profile
6.1 Company History
Woolworths opened its first store, the Woolworths Stupendous Bargain Basement in
the old Imperial Arcade in Pitt Street, Sydney on December 5, 1924. Our nominal
capital was just 25,000 pounds (approximately 70,000 Australian dollars today) and
the initial share offer attracted 34 people, including our 5 founders - Percy Christmas,
Stanley Edward Chatterton, Cecil Scott Waine, George William Percival Creed and
Ernest Robert Williams.

6.1 Scale and Nature
Woolworths Limited is an Australian public corporation with annual sales of over 38
billion, over 300,000 shareholders and 175,000 employees.

Woolworths Limited also owns the Australian Lesuire and Hospitality (ALH) and
Taverner hotel chains as well as the internet businesses of Homeshop and
greengrocer.com.au.

6.2 Main Brands
Woolworths Limited major brands in Australia are: Woolworths and Safeway
supermarkets, Woolworths and Safeway Liquor, Caltex/Woolworths Petrol, Dick
Smith Electronics, PowerHouse, Tandy, BWS, Dan Murphy's and BIG W.

6.3 Store Locations (as at January 2007)

 Division                                              Number of Stores        Location
 Supermarkets                                               753                All states
 Big W                                                      138                All states
 Liquor                                                    1023                All states
 (Woolworths and Safeway Liquor, BWS and Dan
 Murphy’s)
 Consumer Electronics (Dick Smith and Tandy)                   380             All states
 Woolworths and Safeway Petrol and Caltex                      495             All states
 alliance sites
 Hotels (ALH)                                                  260             All states

6.4 Distribution Centres and Support Offices

Woolworths Limited operates 17 distribution centres across Australia.

Woolworths Limited Corporate Support Office is located in Bella Vista, Baulkham
Hills NSW. This purpose built state-of-the-art facility accommodates more than 3,500
employees and incorporates in its design energy and water efficiency as well as
stormwater harvesting for reuse. Woolworths also operates a number of smaller
support offices across State capitals.




                                     Page 5 of 12
7. Position in the Packaging Supply Chain
In the context of the National Packaging Covenant, Woolworths Limited is both a
retailer and a brand owner. Woolworths supermarket business retails the following
products:

    1. branded packaged products supplied by a number of brand owners,
    2. private label packaged products where Woolworths is the brand owner (eg.
       Select and Home Brand), and
    3. fresh food products which in most cases are not packaged (eg. Fresh
       vegetables and fruit).


8. Summary of Related Initiatives to Date
8.1 Reduction in Packaging and Recycling in Supermarkets

•   Small checkout bags have been removed from general use in most
    supermarkets, leaving one bag design with a greater capacity for products.

•   Woolworths has reduced the number of high density polyethylene (HDPE)
    plastic bags issued through its stores, notwithstanding significant growth in
    sales and customer numbers. Woolworths achieved the first targeted 25%
    reduction more than six months in advance of the target date (December
    2004) and has subsequently contributed further to an industry reported
    figure of 45% by December, 2005.

•   Reusable bag range, including green enviro bag, blue chiller bag, calico
    bag and strawberry bag, have been introduced and expensively marketed
    to customers. Woolworths continues to investigate and introduce new bag
    options for customers.

•   All primary plastic bags issued by Woolworths' supermarkets and Big W
    have up to 30% and 15% recycled content respectively.

•   Recycling bins for checkout plastic bags are provided in the front of 752 stores
    nationally. They are highly visible in these high traffic areas of our supermarkets
    to encourage customers to deposit their used plastic checkout bags. Appropriate
    store staff are trained to build and monitor awareness and support for recycling.
    Marketing materials are provided for educational purposes to encourage the use
    of the recycling bins.

•   Plastic wrap protecting pallets of goods is being progressively removed from the
    transport of goods to stores by introduction of mobile wheel roll cage technology.
    These roll cages are stackable carriages filled with cartons of stock in
    warehouses, transported on trucks, wheeled onto store floors providing stock to
    fill the shelves. The use of these roll cages has significantly reduced the need for
    wooden pallets and the associated plastic shrink wrap. The roll cage project has
    been implemented in 330 stores and further implementation is being investigated.




                                     Page 6 of 12
•   Disposal, research and market development continue on the recycling of plastic
    bags and the creation of effective bio-degradable / decomposable bags for those
    which extend to landfill.

•   Woolworths is a member of the Federal Government’s Biodegradable Bag
    Working Group and has actively participated in the discussion for
    establishing appropriate standards for biodegradable plastic bags within
    the retail environment. A proposed Australian Standard is currently under
    review but to date a Standard has not been approved or adopted.

•   Woolworths has introduced Shelf-Ready Trays (SRTs) enabling the products to
    be placed directly onto the store shelf in the carton provided, removing the need
    for additional non-reusable transport packaging. In 2007 Woolworths has
    produced for industry adoption a check-list based standard for Shelf-Ready Tray
    [SRT] design and production to promote efficiency and maximise packaging
    reduction opportunities. Store training packages have been delivered to all
    Woolworths’ stores to ensure effective handling to minimise waste production in
    SRT utilisation.

•   With regard to bulk fresh foods Woolworths has introduced a system of
    returnable plastic crates that eliminates the requirement for non-returnable waxed
    cardboard cartons, string nets, or especially Styrofoam plastic boxes.

8.2 Staff Training and Consumer Education

•   A ‘Fill the Bag, Not the Environment’ training program for more than 30,000
    Service Cashiers is in operation. Further measures have been implemented to
    improve control over employees actions and to raise employee awareness of
    plastic bag stock levels and of recycling initiatives within stores, including internal
    communications through both print and television media which have been
    extensively employed.

•   Measures have also been used to raise customer awareness of plastic bag
    usage and recycling, including in-store radio messages and in-store signage at
    the front of store and in high traffic areas, and the provision of direct staff advice
    at point of purchase. Recycling bins in accessible stations at stores are used to
    encourage customers to return used plastic bags which are then recycled.

•   Customers who buy three items or fewer are no longer automatically offered a
    plastic bag by Service Cashiers. Plastic bags are also removed from checkouts
    when not in use to avoid ‘self-service’ by customers.

•   A Woolworths’ Heritage Poster with environmental information for primary
    schools has been produced to help raise awareness of recycling and
    environmental issues. Heritage Posters are displayed in supermarkets and
    distributed free to all Primary schools in Australia.

8.2 Influencing our Packaging Supply Chain

•   Woolworths actively encourages suppliers of branded goods to reduce
    unnecessary product packaging and increase recycled content of their packaging
    in line with the Environmental Code of Practice for Packaging and the Australian
    and New Zealand Grocery Industry Guidelines.



                                      Page 7 of 12
•   Woolworths Packaging Specifications manual was published on the Vendor
    Guide section of Woolworths’ website: www.woolworths.com.au in 2005. This is
    an educational tool and a guide for suppliers and buyers. Merchandise buyers
    advise vendors during the purchasing process that compliance with relevant
    sections of the manual is compulsory. New product review committees exist
    across all divisions to review all new submissions. Packaging is a major
    consideration, subject to executive management acceptance in the review
    process.

•   Design production and labelling on private label goods are controlled by
    Woolworths. It is expected that private label goods will increase in number and
    sales volumes. Woolworths is able to direct suppliers of its private label goods to
    comply with the Code and Guidelines, [at least to the degree that current
    manufacturing capability allows], or to seek a commitment by which time
    compliance will be achieved. In respect of Private Label brands, the
    independently audited Woolworths Quality Assurance (WQA) standards also
    ensure prospective tenderers for supply give consideration to ways of recycling,
    reducing and reusing process inputs to reduce any impact on the outside
    environment.

8.3 Other Waste Reduction and Recycling Initiatives

•   BIG W supports the reuse and recycling of apparel coat hangers. 27 million
    hangers are currently recycled annually.

•   Woolworths Dick Smith stores participate in Toner Cartridge, Battery and Smoke
    Detector recycling, and Mobile Phones through the Mobile Muster program.

•   Woolworths Limited Support Offices recycle toner cartridges and paper.




                                     Page 8 of 12
9. Action Plan for July 2007 – July 2010
Actions                                                                Performance Measure and Targets                 Covenant KPI    Timeline
                                                                                                                       Reference       Action Year
Design
1. Complete rolling out the use of single checkout bag design with a   •   Implemented in all stores                   3               2007-2008
   greater volume capacity to all supermarkets.
2. Audit packaging design of Woolworths private label products to      •   Complete the audit for majority of the      1, 3 and 6      2007-2008
   identify and eliminate any over-packaging (see Action 24).              private label products.

Disposal
3. Investigate increasing the number of supermarket stores             •   Increase number of stores from 50 to        28 and 29       2007-2008
   participating in the Earthpower organic waste to energy program.        100 in Sydney.
4. Investigate Green Waste recycling opportunities in other states     •   Call for expressions of interest in         28 and 29       2008-2009
   and territories.                                                        other capital cities from similar service
                                                                           providers.
5. Increase rate of clothes hanger recycling in Big W stores.          •   Increase by 15%                             16 and 21       2007-2008
6. Implement a waste audit program for stores to ensure adherence      •   Establish Waste Audit Program and           28              2007-2008
   to waste minimisation objectives.                                       protocols.
                                                                       •   Audit 10 stores per annum.                                  Annually
7. Investigate implementation of e-waste recycling program in Dick     •   Expression of interest for service          16              2007-2008
   Smith, Powerhouse and Tandy stores.                                     providers.
                                                                       •   Cost feasibility analysis completed                         2007-2008
                                                                       •   Implement if feasible                                       2008-2010
8. Investigate implementation of cork collection facilities in Dan     •   Expression of interest for service          16              2007-2008
   Murphy’s, BWS and Woolworths/Safeway liquor stores.                     providers.
                                                                       •   Cost feasibility analysis completed                         2007-2008
                                                                       •   Implement if feasible                                       2008-2010
9. Reduce recyclable material as a percentage of total waste.          •   Set target                                  21, 28 and 29   2007-2008
                                                                       •   Report progress in achieving target                         Annually
Market Development




                                       Page 9 of 12
Actions                                                                   Performance Measure and Targets               Covenant KPI   Timeline
                                                                                                                        Reference      Action Year
10. Increase the penetration of reusable bags by 5% per annum.            Increase by 5% per annum                      3              2007-2010
11. Ensure recycled content in checkout plastic bags.                     • 30% in supermarket plastic bags             3              2007-2010
                                                                          • 15% in Big W plastic bags
12. Continue to replace waxed cardboard and foam boxes with               • Increase to 60%                             3              2007-2008
    reusable plastic crates for remaining product lines where             • Achieve 100%                                               2012-2013
    practicable. 40% of product is currently shipped in reusable
    plastic crates.
13. Establish a biodegradable bag trial program within 2 months of a      •   Trial program underway within 2           3              NA
    Standard being approved to assess practicality and commercial             months of a Standard being
    viability.                                                                approved.
                                                                          •   Trial results reported publicly.
Education
14. Continue staff training with regard to plastic bag reduction          •   Incorporate into existing training        28 and 29      Ongoing
    initiatives.                                                              programs and the Eco-Ambassador
                                                                              program.
15. Review new staff induction program and incorporate plastic bag        •   Incorporate waste minimisation            28 and 29      2007-2008
    and other waste minimisation initiatives.                                 information in induction program.
16. Promote waste minimisation initiatives through Woolworths             •   Publish case studies and articles.        28 and 29      Ongoing
    internal media (Bulletins, in-store television, Woolies News,
    Xpress Magazine, etc.)
17. Introduce in-store radio messages encourage use of reusable           •   Establish appropriate message and         28 and 29      2007-2008
    shopping bags and recycling plastic bags.                                 frequency.                                               and ongoing
Labelling
18. Conduct an audit of Woolworths private label products for             •   Audit results will be reported to NPC.    22             2007-2008
    compliance with the Environmental Code of Practice for
    Packaging. The audit will include labelling compliance (see action
    24).
Wholesaling and Retailing
19. Complete implementation of roll cages for transporting products       •   Implemented in all distribution centres   3              2008-2009
    from distribution centres directly to store shelves eliminating the
    need for protective packaging such as wooden pallets and




                                      Page 10 of 12
Actions                                                                  Performance Measure and Targets                 Covenant KPI      Timeline
                                                                                                                         Reference         Action Year
    associated shrink wrap.
20. Increase the range and quantity of products supplied with reusable   •   Increase from 2500 (10%) currently to       3                 2009-2010
    shelf-ready trays.                                                       5000 (20%).
21. Increase the use of “Retail Ready” fixtures for produce lounges in   •   All new and refurbished stores from         3                 2007-2010
    supermarkets. Currently 250 stores have this facility.                   2007 to be converted to incorporate
                                                                             this facility.
Supply Chain
22. Woolworths will require its vendors who are in the top 60 largest    •   60 of largest suppliers of packaged         22                2007-2008
    suppliers to comply with the Environmental Code of Practice for          googs to comply with the Code.
    Packaging. These suppliers represent over 65% of Woolworths          •   Compliance will be audited
    total purchases of packaged goods.                                       independently and reported to NPC.
23. Develop a Buy Recycled Purchasing Policy and review existing         •   Policy developed and endorsed.                                2007-2008
    vendor compliance protocols and specifications.
General Product Stewardship Actions
24. Conduct an independent audit of Woolworths private label             •   Complete the audit for majority of the      1, 6, 21 and 27   2007-2008
    products for:                                                            private label products.
    • Compliance with the Environmental Code of Practice for             •   Establish realistic targets for reduction
        Packaging.                                                           in packaging.
    • Establishing base line data for type of packaging (recyclable
        versus non-recyclable).
    • Evaluating any over-packaging.
    • Researching alternative packaging design and materials with
        reduced environmental impacts.
25. Incorporate appropriate packaging and waste minimisation targets     •   Complete Woolworths Sustainability          28 and 29         2007-2008
    in Woolworths Sustainability Strategy and establish an internal          Strategy.
    working group to oversee implementation of related initiatives and
    achievement of targets.
26. Report annually both to the National Packaging Covenant and in       •   Submit annual report to NPC                 28 and 29         Annually from
    Woolworths' sustainability reports.                                  •   Publish annual Sustainability report                          2007-2008
                                                                             for Woolworths Limited.




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