Greening Retail

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FEATURED RETAILER: WOOLWORTHS IN AUSTRALIA

The history of Woolworths in Australia began with a visit to the United States by its founder, who recognized the appeal of the retail concept and established a firm of the same name. Since the opening of the first Sydney store in 1924, the company has become one of the largest companies in Australia and New Zealand.

The commitment to sustainable development began perceptibly with the appointment of Michael Luscombe, Managing Director and Chief Executive Officer in 2006. He brought to Woolworths a conviction that financial success must not come at the expense of the society, of the economy nor of the environment.

CORPORATE CULTURE, STRUCTURE AND GOVERNANCE

A Group Sustainability Manager operates under the Corporate and Public Affairs Department, whose director is part of the Senior Management Group.
Woolworths has created a Sustainability Advisory Group, which consists of leaders in the fields of environment, sustainability and corporate social responsibility.
To meet the challenges of spreading information throughout a large company, Woolworths has established its Eco Ambassador Program. About 600 employees with decision-making authority have been selected to increase environmental awareness, knowledge and expertise.

ENERGY CONSERVATION

Recent drought and severe weather events have impacted prices and the availability of staple food items in Australia. As a result, Woolworths believes that a strong business case can be made to address the challenge of global warming by minimizing the company's carbon footprint.

Woolworths has developed sustainable design guidelines to minimize the impact of new supermarkets. These practices have been implemented in Woolworths' first Green Store at Rouse Hill, which was opened in 2007 and at a second at Victoria Harbour in Victoria, Melbourne.

WATER

The corporate support office incorporates technologies to save water and to harvest stormwater. A one million-litre-capacity rainwater tank has been installed to supply water for landscaping, toilet flushing, and for car and outdoor washing.
Woolworths has entered into an agreement with Sydney Water to participate in the Every Drop Counts Program. Based on a self-diagnostic process, Sydney Water provides tools, guidance and technical assistance that enables the company to evaluate water consumption practices and to identify opportunities for improvement.

SOLID WASTE REDUCTION

Woolworths has commissioned the Sustainable Packaging Alliance to conduct a study of private-label products that will provide a basis for a comprehensive packaging strategy.

Efficiencies in the waste stream will be achieved by a replacement of 26 million single-use waxed boxes with 3.4 million reusable crates, the removal of all food waste from the general waste steam by 2015 and savings of no less than 200 million litres of water per year by 2010.

SUPPLY CHAIN

Palm oil has been removed from Select brand food products and will be eliminated from Homebrand products. This decision reflects the belief that palm oil production contributes to habitat destruction and the loss of biodiversity.

Along with the Australian Food and Grocery Council, Woolworths has committed to fund a study that will research the feasibility of a carbon footprinting scheme for consumer products. Major suppliers, government and environmental groups will be invited to participate in this joint investigation that will examine overseas trends on carbon footprinting and the implications for Australian companies.^{^[1]}

[1] Better Trading: Bi Monthly Newsletter from Consumer Protection Western Australia. March 2008.www.docep.wa.gov.au/ConsumerProtection/PDF/Publications/DOCEP_Better_Trading5.pdf

Woolworths participated in a research study which examined the practices of 15 leading retailers. To read Woolworth's detailed case study, and others, click here.

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