sustainability report

environment


waste


packaging waste

Woolworths is committed to finding ways to minimise if not eliminate packaging waste. Three possible solutions exist:

avoid packaging.

This is difficult for Woolworths given our reliance on the packaging to protect the product from damage and contamination in transit and on the sales floor.

design packaging that is easy to recycle.

Customers are familiar with paper, glass and metal packaging and are aware that it is possible to recycle these materials. Plastics are more complicated and most of our packaging is made from plastic. We have embarked on a programme to put polymer identification marks on all rigid plastic packaging – bottles, tubs and trays although the number of items found to be marked correctly on our shelves this year only improved by 1% to 59% (2005: 58%). This was mainly due to a misunderstanding with our new meat packaging supplier, which is now being rectified.

As the market for recycled plastics grows (and it is doing so with plastic prices reaching R12 000 a ton), more and more opportunities for recycling plastic are arising and Woolworths is working with a number of packaging suppliers to incorporate post consumer waste plastic into its packaging without having a detrimental effect on function or appearance.

create packaging out of renewable materials which can be composted.

Woolworths is closely monitoring International developments. Cost is a major consideration but we would like to put a number of products in compostable packaging on our counters in the near future.

In addition to the above, Woolworths continues to:

  • use reusable plastic crates for the distribution of over 70% of our fresh foods, thereby saving many thousands of tons of cardboard boxes;
  • collect cardboard and paper for recycling at our stores and at head office; and
  • encourage customers to use recyclable bags for food purchases but despite this, food bag purchases have increased by 35% on last year but they are still 52% lower than before the ban.

recycling

  • Woolworths has two ranges of recyclable shopping bags:
    • locally-made re-usable fabric shopping bags in bright colours – 1.7m bags produced in 2006 (2005: 2.5m);
    • Woolworths reusable plastic art bag;.
  • Woolworths continues to recycle hangers through Hangerman (a company cofounded by Woolworths) who collect all unwanted plastic hangers from stores, sort and clean them (using a workforce that includes many disabled workers) and sells them back to the clothing suppliers at a discount;
  • depending on the quality and availability of recycled material, we incorporate as much as 50% recycled material in many of our plastic clothes hangers;
  • many of Woolworths supermarket baskets and trolleys are now made from recycled plastic;
  • where possible, sleeves on ready-made meals, dips and other food products are made from board which has 80% recycled paper content; and
  • head office has converted, where possible, to recycled paper usage in all printers and photocopiers and, again where possible, recycled paper is used for communication for example,Woolworths in-house publications – ShopTalk, Small Talk, our annual financial statements and sustainability report are printed on 100% recycled paper; and
  • redundant IT hardware is currently recycled on an ad hoc basis – a formal policy and procedure will be in place in 2007 regarding the disposal of our IT waste.

2007 focus

Woolworths has identified consumer waste management as a key corporate sustainability initiative for the year ahead, helping and educating consumers in the identification and responsible disposal of consumer waste. A pilot project will be initiated in the Western Cape by July 2007.

energy


electricity usage

Over the past two years, Woolworths has recorded an 11% improvement in electricity consumption in corporate stores on a like-forlike basis. Corporate stores recorded 452kWh/m2 trading space/year, down from the benchmark of 502kWh/m2 recorded in 2004.

The continuing improvement in electricity consumption can be attributed to:

  • increased and extended use of programmable logic controllers, which manage lighting, air-conditioning and refrigeration systems in stores;
  • better disciplines as a result of ongoing awareness programmes, campaigns and presentations at stores;
  • greater use of the existing direct-on-line monitoring system whereby head office can monitor electrical consumption in stores on a daily basis and give regular feedback on performance; and
  • the conversion of all lighting in the Western and Eastern Cape stores to the use of energy efficient electronic control gear as part of the Eskom DSM programme.

2007 focus

Woolworths signed the national Energy Efficiency Accord in August 2006 and is committed to working with key stakeholders to update, and where necessary establish, energy management guidelines for the retail sector based on best international practice.

fuel


Woolworths policy is to operate the delivery fleet in as an efficient and environmentally responsible manner as possible:

  • fuel usage increased by 9.8% as a result of servicing additional stores and a 15.7% growth by volume in distributable units*;
  • distribution efficiencies improved:
    • more distributable units distributed per kilometre;
    • less fuel used per distributed unit - 8.1 units/litre in 2006, 7.7 units/litre in 2005;
    • emission rate relative to volume reduced; and
  • no suitable production facilities currently available for biodiesel – Woolworths continues to monitor developments.

*A distribution unit is defined as a handling unit which could be a case or crate of merchandise for example, 12 litres of milk, 20 kg potatoes, 24 men’s shirts.

2007 focus

A continued commitment to reducing the diesel usage per distributable unit and, respectively, the emission rate.

water


Woolworths local fabric mills and dye houses are required to adhere to the internationally benchmarked Dyeing and Finishing Environmental Code of Practice which seeks to ensure that no materials, dyes or chemicals used in the production of Woolworths garments or textiles presents an unacceptable risk to health or to the environment during their manufacture or disposal. Suppliers are audited against this code.

2007 focus

As a result of the work done by the University of Cape Town in 2005 and the development of the Woolworths Sustainability Index, it has been decided that water usage and management will be a key sustainable focus for the business in the year ahead. A water management project is being commissioned to identify practical ways of assisting suppliers address South Africa’s critical water shortage.

biodiversity


Woolworths is committed to supplying products whose production is not harmful to natural eco-systems and has taken the following steps:

  • GMO ingredients are eliminated wherever possible, those remaining that may contain genetically modified ingredients are clearly labelled, enabling customers to make informed choices when shopping;
  • any wood we use comes from certified sustainably managed forests and if this is not possible, we insist that it comes from a plantation that is responsibly managed;
  • hake is only bought from Marine Stewardship Council (MSC) approved suppliers, ensuring that the fish comes from a well-managed fishery and has not contributed to the environmental problem of over-fishing;
  • honey is sourced only from farmers that harvest honey without harm to the honey badgers;
  • introducing non-lethal methods of capturing charismatic predators (for example, leopard) on farms rearing animals destined for Woolworths stores; and
  • Woolworths is a strong supporter of organic food and clothing (see innovation report).

animal welfare


Woolworths has always had clear guidelines on animal welfare including:

  • an NSPCA-approved Animal Welfare Code of Practice;
  • nsistence that all animals destined for stores must be reared humanely and treated fairly in accordance with our code – abattoirs are regularly audited by a Woolworths technologist;
  • implementation of new protocols requiring our Ayrshire farmers to rear bull calves born to dairy cows properly in pens, as female calves are, and then to sell them to reputable sources; and
  • not permitting:
    • animal testing - we have never asked or commissioned our health and beauty suppliers to conduct testing on animals. Our animal welfare policy required that suppliers did not use any raw materials tested on animals after 1 January 1998 – we have had to review that date to January 2001 as certain key ingredients in beauty preparations were tested during this period;
    • products made from real fur;
    • selling of eggs from caged birds; and ensuring that
    • our health and beauty suppliers to use ingredients that are by-products of the food industry; and
    • the use of duck feather and down that is not a by-product of the food industry.

noise management


Woolworths has always been conscious of noise pollution and considers the following issues in managing noise levels:

  • location of new stores’ delivery points in relation to residential housing;
  • management of delivery schedules to produce as little interference as possible to local residents; and
  • ongoing review of refrigerated delivery vehicle systems to try and reduce ambient noise.

refrigeration and air quality control


The following steps have been taken to eliminate, as far as possible, ozone depleting gases:

  • all stores use HCFC’s (Hydrochlorofluorocarbons) for refrigeration
  • blends of HCFC’s and HFC’s (Hydrofluorocarbons) are used in air conditioning and freezers. (Only one air conditioning system left within Woolworths that still uses CFC’s (Chlorofluorocarbons) and it will be upgraded in the next 12 months.
  • any Woolworths contractor must use gas reclaiming equipment when carrying out repairs; and
  • refrigeration in Woolworths new distribution centre in Gauteng will run on an ammonia glycol mix which has zero global warming potential.

building design and location


Woolworths has developed a sustainable building strategy which includes a list of principles and examples of how they could be practically applied. All professional teams involved in our building developments are required to use these guidelines in building design and development.

The sustainable building strategy has been incorporated into the planning of Woolworths new distribution centre in Midrand, which opens in 2007. Beyond the mandatory but comprehensive environmental impact study, every aspect of the design and construction of this facility has been subject to scrutiny from a social and environmental perspective, ensuring that we minimise the impact on the surrounding environment and communities.

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