environment

Woolworths identified the environment as a key focus for the business when announcing the Good business journey. The targets represent significant up-weighting of the ongoing focus in key areas and concentrating on organic and free-range products, healthy eating choices, protection of biodiversity, animal welfare, water management, waste management and the reduction of packaging.

We promote environmentally-sound farming methods, thereby ensuring that our conventional produce farmers migrate to environmentally-sensitive farming methods and organic production.

organic and free range

what’s already been done

Having begun its organic journey almost a decade ago, Woolworths offers South African consumers the widest range of certified organic products, from pasta and peanut butter to t-shirts and towels.

Woolworths began its organic cotton journey in 2004 and has steadily increased its use of organically grown cotton over the past four years. Woolworths offers a comprehensive collection of organic cotton products in kids’, men’s and women’s outerwear and sleepwear, baby clothing, towels and bedding.

what we’re doing

In February 2008 we launched over 100 new organic grocery lines which cater for both basic grocery needs and the more specialised tastes of the contemporary cook. The range includes jams, pastas and pasta sauces, rice, condiments, oils, beans, breakfast cereals, biscuits, teas, coffees, juices, nuts, chocolates and more.

This has further entrenched our position as the country’s leading retailer of organics and made it easier than ever for shoppers to lead a comprehensive organic lifestyle.

In 2008 our organic sales exceeded target by 9.81% with free-range sales below target by 18.9%.

Overall, combined organic and free-range sales were below target by 12.46%

Organic clothing sales were however 47% above our 2008 target.

where we’re going

We will continue to accelerate Woolworths organic and free-range journey, delivering the following by 2012:

• Increase the sales of organic and free-range food to over R1 billion per annum;
  
• sell in excess of R1bn of organic-content clothing;
  
• continue to encourage customers to support free-range farming with free-range chicken, beef and lamb; and
  
• increase the range of organic clothing and the use of natural fibres. Items made from other sustainable fibres, including hemp, soya and organic linen, will be added to the green label range.
  

sustainable fibres

what we’re doing

Driving innovation in clothing continued to be a strong focus. The use of organic cotton in clothing increased and garments with both 100% organic cotton and clothing with a percentage of organic cotton were a popular choice among customers. A range of bamboo products, a natural and sustainable fibre, was introduced in women’s outerwear in 2008. Woolworths also developed a fleece jacket made from 100% recycled plastic bottles, to close the recycling loop.

Woolworths is the first South African retailer to offer organic wool and has introduced men’s formal trousers made from organic wool.

Our ‘green label’ helps customers identify textile items, from babywear to homeware, made with fibres from sustainable sources. It is featured on a wide range of clothing, from 100% organic t-shirts, jeans, shirts and underwear, bamboo shirts and socks, to garments made with 5% organic cotton, in virtually every clothing department including menswear, womenswear and kidswear.

healthy eating and lifestyle programmes

what’s already been done

• Woolworths pioneered the practice of “sell by” and ‘‘best before” dates in South Africa, giving customers an indication of when the perishables or semi-perishables would be at their best. All consumables carry the dates on their labels;
  
• the company was one of the first in South Africa to remove as many artificial additives and preservatives as possible from foods. Tartrazine and added MSG have also been removed from our entire food market; and
  
• Woolworths does not sell eggs from caged hens and our exclusive range of Ayrshire dairy products is guaranteed free of added rBST growth hormones.
  

what we’re doing

Woolworths Good food journey is a multi-faceted, long-term commitment to addressing issues such as care for the environment, animal welfare and consumer food issues –meeting the increasing demand for food that is safe, healthy and produced with minimal damage to either the environment or other species. In 2007/8:

• 35,2 tons of salt removed from recipes;
  
• 79 tons of sugar removed from our fresh juice range per annum;
  
• 168 kg of sugar saved in the cereal range reformulation;
  
• introduced unbleached teabags;
  
• continued to sell only free-range eggs;
  
• included only natural ingredients and colours in foods;
  
• 100 plus new organic grocery lines introduced;
  
• supplied a wider range of free-range meat; and
  
• no longer use hydrogenated or partially hydrogenated fats and oils in any ready meals as of January 2008.
  

Woolworths completely reformulated its entire yoghurt range and has become the first in South Africa to offer yoghurts made with only natural flavours and colours and containing no added preservatives and no artificial sweeteners. In addition, all Woolworths yoghurts are made with rBST hormone-free milk and, on average, there is 15% less sugar across the range (72 tons per annum).

As well as extending the range to include yoghurts with prebiotic insulin fibre and a yoghurt with added omega 3 to promote heart health, Woolworths yoghurts contain exclusive HOWARU™ probiotic cultures to help stimulate the immune system and assist in lactose digestion.

In keeping with its Good business journey, all Woolworths 150g and 1kg yoghurts are also now sold in tubs made from recyclable materials.

where we’re going

The programme is being accelerated to:

• Offer our customers even more healthy food options;
  
• phase out, as far as possible, the use of hydrogenated vegetable oils, and hence trans fatty acids;
  
• assist customers to make more informed food choices by providing full nutritional information;
  
• continue to improve the health benefits of our core food range;
  
• develop foods with specific health benefits, for example immune boosters; and
  
• expand our nutritional educational programme through the MySchool and parent talks.

water

South Africa is a dry country with an average rainfall of less than 500 mm. Woolworths is one of the country’s largest retailers of fresh produce, currently supplying about a third of the fresh produce consumed through South African retailers.

The agricultural sector is the country’s largest consumer of water with just over 50% of the country’s water supply used for irrigation.

what’s already been done

Woolworths is committed to reducing water usage and managing waste water and water effluent.

All suppliers who make fabric for our clothes adhere to very strict standards. No materials, dyes or chemicals used in the production of Woolworths clothing or textiles pose an unacceptable risk to health – or to the environment – during their manufacture or disposal. We continue to entrench our strict code of conduct regarding dyes (including the removal of Azodyes), chemicals and water management in our supply chain.

what we’re doing

Woolworths’ programme includes the following measures:

• Woolworths fresh produce farmers have adhered to Eurepgap farming practices for nearly a decade. Eurepgap (now known as Globalgap) is an internationally recognised standard for safe and sustainable agriculture, setting guidelines for environmental and labour standards as well as product safety;
  
• Woolworths is the country’s leading retailer in certified organic fresh produce, which are grown without the use of artificial chemicals such as herbicides and pesticides and do not release potentially harmful chemicals into water supplies;
  
• Woolworths is also working with our conventional farmers to help them incorporate more responsible farming practices into the way they farm in order to establish a thriving and sustainable microbial population in the soil. This essentially uses compost and organic fertilisers while improving the natural fertility of the soil; and
  
• We completed a water trial with 40 food suppliers. Trial results indicate 30 of the 40 suppliers are compliant with the Department of Water Affairs & Forestry (DWAF) requirements. The trial highlighted issues with run-off water (into rivers and aquafers) from irrigation practices, and waste water from farm processing.
  

Corporate facilities

When evaluating new real estate opportunities, Woolworths considers if the design of the property enables the efficient use of water and water waste. This includes:

• Storage and use of recycled and grey water systems, retaining as much water on site as possible for re-use;
  
• use of indigenous shrubs and ground covers, minimising irrigation needs; and
  
• storm water management – allowing rain water to be stored and used.
  

Such measures have already been implemented at Woolworths distribution centre in Midrand. Municipal water at the distribution centre is used only for drinking purposes.

Head office facilities have shown a 13% decrease in water usage to 62 238 kl (2007: 71 614 kl). We have also set a benchmark for reduction in water usage in stores of 122 kl/m² and achieved just under a 5% reduction in relative usage in stores.

where we’re going

• Reduce Woolworths relative water consumption by 30%;
  
• work with suppliers to reduce water used and improve waste water management; and
  
• work with the Global Compact and GTZ (The German Development Agency) to analyse water usage in agriculture and develop methods for reduction.
  

CEO Simon Susman at the Mail and Guardian
Greening the Future awards

South Africa has the third-highest level of biodiversity in the world. The Cape floral kingdom alone is home to 20% of Africa’s flora while only accounting for 0.5% of the continent’s area.

biodiversity

what’s already been done

We are dedicated to selling products that do not cause harm to the natural world around us in the way they are made.

what we’re doing

• Only sourcing wood which is recycled or independently certified as coming from approved sustainable sources e.g.
  Forest Stewardship Council (FSC);
  
• introducing wide ranges of hemp, bamboo and soya fabrics;
  
• reducing the impact of production on the natural biodiversity;
  
• working with experts to resolve wildlife/human conflicts (predators which attack lambs thus distressing sheep farmers);
  
• selling no product or by-product of threatened species;
  
• working on a sustainable solution for potato farmers in the
  Sandveld;
  
• taking genetically-modified (GM) ingredients out of our food wherever possible. Any GM ingredients remaining are clearly labelled – which means customers can make informed choices while shopping;
  
• encouraging Woolworths wine farmers in the Cape floral kingdom to be members of the IPW programme and the Biodiversity and Wine (BWI) initiative; and
  
• shifting conventional farmers to adopt environmentally-sensitive farming practices – reducing their impact on the environment, in particular by using 25% less water, pesticides and chemical fertiliser.
  

where we’re going

• Sell only fish certified as coming from sustainable sources, e.g. Marine Stewardship Council (MSC) approved sources, by Quarter 4 2008;
  
• become one of the first major retailers to partner with the South African Sustainable Seafood Initiative and use their red/amber/green colour coding system to indicate threatened species; and
  
• by 2012 all locally grown fresh produce (other than organically certified produce) will be grown using environmentally-sensitive farming practices.
  

animal welfare

what’s already been done

Woolworths has always had clear guidelines on animal welfare. These include:

• An NSPCA-approved Animal Welfare Code of Practice; and
  
• insistence 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.
  

Woolworths was also heavily involved in the development and launch of badger-friendly honey.

We do not permit:

• Animal testing – we have never asked or commissioned our health and beauty suppliers to conduct testing on animals. Our animal welfare policy requires that suppliers did not use any raw materials tested on animals after
  1 January 2001;
  
• Woolworths entire private label range of toiletries and cosmetics has been approved by Beauty Without Cruelty.
  
• products made from real fur;
  
• selling of eggs from caged birds;
  
• 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 byproduct of the food industry in homeware.
  

what we’re doing

Woolworths is committed to addressing the issue of mulesing of wool-producing merino sheep. Mulesing is the surgical removal of strips of wool-bearing wrinkle skin from around the breech of a sheep. Mulesing is common practice in Australia as a way to reduce the incidence of flystrike on Merino sheep in regions where flystrike is common.

The wool industry’s largest exporter, Australia, is phasing out the practice of mulesing, as part of regulatory change. Woolworths welcomes this development if it is ultimately considered to be more humane to the sheep, but is clear that alternative appropriate and humane methodologies must be in place to protect sheep from the effects of blow fly infestation.

Some wool in the Woolworths supply chain may come from sheep that have been mulesed, due to the way that wool is purchased en masse at auctions, with little or no traceability back to a specific farm.

Although mulesing is not practiced in South Africa, Woolworths will continue to monitor local South African suppliers to ensure that they conform to the position statement mandated by Cape Wools SA.

where we’re going

• Focus on animal welfare as a mainstay of the Good business journey and remain committed to a clear animal welfare policy;
  
• designate only traceable routes for the sourcing of our wool products; and
  
• develop a spent layer solution for the humane disposal of hens who have finished laying eggs for Woolworths.
  

Woolworths is committed to reducing packaging to the minimum necessary to protect, inform and promote the product This reduction will be supported by an intensive customer education programme. The packaging shift starts with reduction where possible, and includes a focus on recycling and reuse.

packaging

what we’re doing

reduce

Too much of the world’s packaging ends up in landfill, where it could pollute the air, soil and water. Woolworths is committed to finding ways to minimise, if not eliminate, the business’ packaging waste. We have set targets to reduce packaging to little more than the essential requirements of product protection and information, specifically:

• Reduce clothing packaging by more than a third;
  
• reduce food packaging by 20%;
  
• eliminate excess packaging and offer more bulk packs;
  
• decrease food plastic bag usage by encouraging
  customers to use reusable bags; and
  
• reduce clothing plastic bag usage where possible.
  

This year the focus has been on setting benchmarks and related targets for reducing packaging volumes across the business and, where possible, reducing packaging as ranges are re-engineered and re-launched. For example, in food we plan to use 5% less packaging by June 2009 and have set these targets by analysing the packaging in 1400 lines of food, specifically by weighing over 200 000 tons of food.

recycle and reuse

We have set clear targets for recycling and re-use. These include:

• Including recycled material in product packaging;
• restricting packaging materials to those that can be recycled locally and rationalise types of plastic;
  
• putting symbols on plastic packaging to help customers and recyclers easily identify packaging for sorting;
  
• involving and influencing the packaging industry to develop more sustainable materials; and
  
• recycling all store equipment including food trays and hangers.
  

17% of the product lines in food currently contain recycled packaging materials with a target of 25% having been set for 2012. Where possible, the sleeves on ready-made meals, dips and other food products are made from cardboard which has 80% recycled paper content.

Woolworths continues to seek raw material that is independently certified as coming from approved sustainable sources (eg. material certified by the Forest Stewardship Council - FSC) and certain organic wines will shortly be sealed with FSC approved corks.

We are also committed to contributing to the investigation of compostable packaging solutions.The window on our new sandwich package is made from cornstarch and 96% of Woolworths gift card is made using a by-product of corn kernels - a renewable and compostable resource.

Almost 70% of our food lines have symbols on the plastic packaging to help customers and recyclers easily identify packaging for resorting.

Woolworths committed to introducing a nation-wide programme supporting the recycling of our customers’ waste. Although we are working with our local recycling industry to develop the demand for recycled product and ensure a market for recycling in South Africa, we have encountered a number of obstacles in meeting our target. These include customer demand for recycling, challenges around collection points and separation of waste and education required for both employees and customers around waste management and recycling.

As a result, the Woolworths customer programme currently includes a Western Cape pilot of in-store communication around the nearest municipal recycling facility to each Woolworths store and a pilot programme to collect CFL light bulbs from customers and recycle these.

Customers are also encouraged to use reusable shopping bags, thereby reducing the number of new shopping bags that need to be made. Woolworths has a range of recyclable shopping bags including locally made reusable fabric shopping bags and reusable plastic art bags. Plastic shopping bag sales have decreased slightly year-on-year and a 10% reduction target has been set by 2012.

Woolworths recycles all hangers through Hangerman who collect all unwanted plastic hangers from stores, sort and clean them (using a workforce that includes many disabled workers) and sell them back to clothing suppliers at a discount. We have been able to incorporate as much as 50% recycled material in many of our plastic clothes hangers and we make some of our new plastic hangers out of old damaged ones. We have noted with concern the decrease in hangers collected and will be addressing with a new staff awareness drive.

Our entire fleet of trolleys and all in-store shopping baskets will be made from recycled material - 68% of this fleet is currently made from recycled material, from post-industrial sources.

We are moving towards a target of zero waste-to-landfill from distribution operations – although Woolworths operations produce relatively little waste for landfill due to the use of re-usable lugs for the movement of over 90% of food products and the predominant use of recyclable cardboard packaging in clothing. Where operations do produce waste such as pallet wrap waste on longlife and frozen goods and plastic dust covers for clothing, Woolworths is reviewing alternative packaging to further reduce packaging waste.

In 2006 Woolworths began using recyclable board for store signage and displays. Currently, over 30% of our in store signage is made from recycled material – board made from recycled fibre and virgin pulp – a viable, ecological alternative to the standard plastic commonly used in signage, both fully recyclable and repulpable. In addition the chemicals used in production are all water based.

Woolworths corporate offices are also committed to recycling. Shared recycling bins replaced conventional desk bins in all corporate buildings in December 2007.

Our head office has converted as far as we can to recycled paper in all printers and photocopiers, all our internal communication publications and documents and our annual reports.

The safe disposal of old computer items - a large part of what we know as e-waste – is a challenge. In the past, much e-waste has ended up in landfill sites even though it contains toxic materials. For instance, the average computer monitor contains over 2kg of lead.

Woolworths is working hard to ensure that computers, printers and printer cartridges are properly disposed of. Working equipment is donated to needy organisations and schools. Equipment that is not fully operational is sent to The Salesian Institute, who use computers in their maintenance training courses aimed at giving disadvantaged young people skills. Hardware that can no longer be used, is safely recycled. 137 PC’s were distributed in 2008 to Salesians for re-use. A Western Cape e-waste facility is now up and running and the latest batch of equipment has been sent through this facility

where we’re going

We will continue to work towards our stated 2012 targets including:

• Reduce clothing packaging by more than a third and food packaging by 20%;
  
• eliminate excess packaging and offer more bulk packs;
  
• decrease food plastic bag usage by encouraging customers to use reusable bags and reduce clothing plastic bag usage where possible;
  
• increase the amount of recycled plastic in clothing and home bags to 100% and in food bags to 50%;
  
• use symbols on all plastic packaging to help customers and recyclers easily identify packaging for sorting; and
  
• continue to work closely with partners in the recycling and retail sectors, as well as our suppliers, to heighten awareness and reduce the customer waste-to-landfill. This commitment includes:
  • Additional educational material for inclusion in the MySchool curriculum and improved education and awareness through the MySchool programme; and
    
  • facilities for the recycling of customer waste in design specifications for all new buildings (stores and corporate buildings).