climate change - what's already been done

Woolworths recognises climate change as an issue requiring urgent and extensive action on the part of governments, business and citizens if the risk of serious damage to global prosperity and security is to be avoided. Climate change poses both risks and opportunities to all parts of the business sector and Woolworths believes in playing its part in increasing energy efficiency and reducing carbon emissions to the atmosphere.

Woolworths is committed to reducing the relative amount of carbon produced directly by the business by 30% (benchmark of 273 010 tons in April 2007). This reduction will also lead to significant operational savings which the business will reinvest in exploring additional sustainable business alternatives. We will also work closely with our suppliers and customers, mobilising them to reduce their carbon footprint.

Woolworths actions and progress in addressing climate change and energy targets – a brief timeline:

case study

Safe CFL bulb disposal

Woolworths has encouraged customers to save energy, becoming one of the first retailers worldwide to ONLY sell energy-saving lightbulbs – customers are no longer able to buy traditional light bulbs in Woolworths stores.

Woolworths, in association with Nova Lighting, has concluded an agreement whereby Nova will offer an in-store collection facility for the safe disposal of redundant CFL (energy saving) light bulbs.

This facility was launched in June 2008, in 46 flagship stores across South Africa and will be rolled out to all 200+ Woolworths stores as quickly as possible. The collection bin has been specially designed to ensure that there is no danger of CFL lamp breakage. Woolworths already makes use of Nova’s safe disposal, sending all the used fluorescent lighting from stores to Nova for disposal in accordance with South African legislation.

climate change – what we’re doing

energy usage

Total energy usage for all corporate stores, head office buildings and distribution centres – 330 703 464 kwh (2007: 258 623 190 kwh). These figures are not comparable due to the increase in number of stores year on year and the inclusion of our Midrand distribution centre for a full year in the 2007/8 figures, hence a relative measure of kwh per square metre per day is monitored.

Relative energy usage 268.9 kwh/m²/day for 2008 (2007: 276.27 kwh/m²/day). This is a 10% decrease from the 2004 benchmark.

carbon emissions

Carbon footprint calculation conducted on head office buildings, distribution centres and corporate stores

Methodology: Greenhouse Gas Protocol – Corporate Accounting and Reporting Standard

Total square meterage of trading space: 374 005 m² (based on the benchmark as at 2004).

*The increase in carbon emissions due to an increase in absolute energy usage is largely due to the opening of 28 new stores, especially food stand-alone stores which have a far higher kwh/m² of trading space than an average full-line store. Extended trading hours, more stores trading on public holidays and the move toward 24 hour operations (where deliveries to stores occur at night), have all impacted on energy usage.

Some of the energy and carbon efficiency initiatives undertaken include:

• Trial online metering in 26 stores;
  
• CFLs and electronic ballasts retrofitted in Western and Eastern Cape stores;
  
• recycling of used cooking oil to generate a 5% bio-diesel mix in our Cape and Gauteng fleet resulting in a saving of 1500 tons of CO² per annum;
  
• a pilot programme utilising new refrigerant technology in food stores has led to a 35% decrease in electricity usage in these stores, and savings in electricity bills. This technology is being rolled out to all new stores going forward;
  
• energy-efficient distribution centre which is also producing savings of 9 370 kms of delivery-related travel per week; and
  
• increase in distributable units distributed per litre of diesel used and per kilometre travelled. (See table below.)
  

where we’re going

• Roll out online metering to 100 stores during 2009;
  
• investigate carbon offsetting opportunities (including tree planting);
  
• roll out recycled cooking oil mix to KZN fleet and working with engine manufacturers to ensure ability to move to 20% mix;
  
• complete “green” store during 2009 and plan in place to make all facilities more energy-efficient;
  
• work with suppliers on delivering “green” factories;
  
• launch labelling of imported by air products as part of the “fresh & wild” product range; and
  
• improve distribution efficiencies to meet 2012 targets of 9.7 DU/litre and 4.44 DU/km.
  

case study

Woolworths Midrand distribution centre

Woolworths award-winning Midrand distribution centre

An illustration of Woolworths commitment to sustainability at every level of the business is the Woolworths Midrand distribution centre, one of the largest single structures in the southern hemisphere. Every aspect of the design and construction of the 78 000 m² facility has been subject to scrutiny from a social and environmental perspective, ensuring that Woolworths minimises the impact on the surrounding environment and communities.

To find the best site, a “centre of gravity” study was carried out that calculated a location of ‘best fit’ so that both our trucks and suppliers’ vehicles would travel the shortest possible distances.

In an effort to reduce the use of electricity at the DC, some of the measures utilised are:

• The use of natural light in the building;
• intelligent light fittings in offices capable of dimming to adjust to ambient natural light and switching off when people leave the space;
  
• the use of recycled heat – heat recovered from refrigeration plant is used in the underfloor heating system;
• solar thermal hot water production for ablution facilities;
  
• because of the vast area of the building, there was a danger of creating an “urban heat island” – i.e. the building would reflect heat rather than absorb it as agricultural land would. To remedy this fact, grass is being planted on the roof of selected areas. This increases the bio-diversity of the site and adds to the roof insulation for areas such as the main offices, gatehouses and ablution blocks;
  
• the use of elevated flood lights results in a significant reduction in the number of luminaries required; and
• the use of evaporative cooling technologies for the refrigeration plants results in the greatest energy saving.