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 continue to 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

With the word “organic” easily conjuring up images of fresh produce pulled from earth, some consumers are surprised to find out that there are certified organic options for many processed grocery food items. Certified organic processed foods include ingredients that are grown without the use of synthetic chemicals such as herbicides and pesticides, according to strict organic standards. Furthermore, the products are manufactured in audited, certified organic production facilities. Free-range production in South Africa is regulated by the Agricultural Product Standards Act and requires animals to have access to ample food and water, sunshine and shade, the outdoors and protective shelter.

The Woolworths product development team works closely with its manufacturers to ensure maximum product safety and the minimum use of preservatives within the well-established framework of globally accepted organic manufacturing standards.

Woolworths offers South African consumers the widest range of certified organic products, from pasta and peanut butter to t-shirts and towels. 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 made it easier than ever for shoppers to lead a more comprehensive organic lifestyle.

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

sustainable fibres

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 remain a popular choice among customers. A range of bamboo products, a natural and sustainable fibre, was introduced in women’s outerwear in 2008. Woolworths is the first South African retailer to offer organic wool and has introduced men’s formal trousers made from organic wool. A range of bamboo towels and wooden products from sustainably managed forests are available in homeware. A successful partnership with House & Leisure magazine is further promoting ‘green’ design.

biodiversity

With South Africa having the third-highest level of biodiversity in the world, Woolworths and its suppliers are dedicated to selling products that do not cause harm to the natural world in the way they are made.

Woolworths has focused on:

• only sourcing wood which is recycled or independently certified as coming from approved sustainable sources, e.g. Forest Stewardship Council (FSC);
• selling no product or by-product of threatened species;
• working on a sustainable solution for potato farmers in the Sandveld;
• requiring Woolworths wine farmers in the Cape Floral Kingdom to be members of the Integrated Production of Wine (IPW) programme and the Biodiversity and Wine Initiative (BWI), over time;
• shifting conventional farmers to adopt environmentally sensitive farming practices – reducing their impact on the environment, through the farming for the future programme (see below);
• Woolworths supports predator-friendly farming. We are against indiscriminate forms of predator management that cause pain, distress or death to predators. We are working closely with our supply base, universities, the Department of Agriculture’s research farms and a number of other experts in this field, including the Landmark Foundation, to implement guidelines which set out ethical predator control measures.

farming for the future

For years Woolworths agricultural experts have been looking for ways to farm food crops more sustainably while still achieving high yields. ‘Farming for the future’ is a holistic approach that manages the entire farming process systematically to maximise production while minimising negative impact on the environment. In addition, food grown this way costs no more than conventionally farmed produce.

Like organic farming, farming for the future starts with caring for the soil and ensuring soil fertility by adding compost. Unlike organic farming, it allows farmers to use conventional chemicals (but only when necessary) to correct levels of plant nutrients or control insects or disease. It also encourages biodiversity and helps conserve water resources.

In our trials we’ve already seen significant savings in the use of water, pesticides and chemical fertilisers. As our farmers become more proficient in managing minerals, microbes, pests and plant health, we expect to see even more benefits. We’re pleased to say that all the farmers who grow produce for us are joining us on this journey, and by 2012 all our locally grown fresh produce (other than organically certified produce) will be grown this way.

fishing for the future

As awareness of the need to preserve and protect the world’s seafood resources grows, Woolworths is doing everything possible to help customers ensure they’re buying the most sustainable seafood. Having introduced our Sustainable Seafood Policy and signed the landmark WWF South African Sustainable Seafood Initiative’s (SASSI) Retail Charter in 2008, we’re now the first major South African retailer to begin labelling seafood in accordance with SASSI’s green, orange, red system.

The SASSI classification system focuses on locally caught seafood. Green indicates species that are the best choices as they can handle current fishing pressures; orange, that there is concern over the sustainability of a species; and red (which will never be found at Woolies) species that are protected and/or illegal to sell. Seafood that falls outside of SASSI’s classifications – such as farmed or certain imported seafood – will carry a blue label at Woolworths.

We want to assure customers that seafood at Woolworths is traceable and sourced from legal and well-managed fisheries. For example, our kingklip is sourced from well-managed hake trawl fisheries where it is caught as par t of the monitored bycatch. Kingklip will not be targeted and catches will not exceed the precautionary limits set by Marine and Coastal Management.

water

In its most recent report, the Intergovernmental Panel on Climate Change (IPCC) concludes that water and its availability and quality will be the main pressures on, and issues for, societies and the environment under climate change. These impacts will be exacerbated in dry and developing countries, with South Africa falling into both categories.

At least 60% of the country’s water resource is used in farming irrigation, and Woolworths, as a major supplier of fresh produce has to play a role in water conservation. We are deeply committed to being part of the solution and have a long history of working with our suppliers to influence change. 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.

Woolworths plans to reduce relative water consumption by 30% by 2012. We work with suppliers to reduce water used and improve waste water management. We also research and understand the water footprint of selected priority products.

water neutrality

Woolworths is the first retailer to join the World Wide Fund for Nature’s (WWF) Water Neutral Scheme. The scheme, launched in association with the government’s Working for Water programme, seeks to encourage corporates to become water neutral. The programme has multiple objectives of reducing the impact of invasive alien plants on our water supplies, improving the productive potential of land, restoring biodiversity and ecosystems function as well as creating jobs and economic empowerment. Woolworths is becoming water neutral by eliminating invasive water-thirsty alien plants on supplier farms and in protected areas, such as the Tankwa Karoo National Park. The project will release enough water into South Africa’s water system to offset the water used by Woolworths operations each year, ultimately making the company water neutral.

real estate

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 the distribution centre in Midrand. Municipal water at the distribution centre is used only for drinking purposes. Head office facilities have shown a 46 % decrease in water usage to 10 365 kl (2008: 19 306 kl), and we have also achieved just under a 12% reduction in relative usage in stores (2008 benchmark: 122 kl/m2). This is significant, not only for conservation, but also as clear proof that sustainability can deliver cost savings.

Animal welfare

• 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, predator-friendly farming and sustainable fishing practices.

We do not permit:

• animal testing – we have never asked or commissioned our private label 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;
• products made from real fur ;
• selling of whole eggs from caged birds;
• our health and beauty suppliers of our private label 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 in homeware.

free-range eggs
Woolworths is proud to have been the first major local retailer to stop selling whole eggs from hens kept in cages in 2004 – only whole free-range eggs are sold in Woolworths stores. We remain the only major local retailer to have achieved this.

Free-range egg production in South Africa is regulated by the Agricultural Product Standards Act. Woolworths free-range egg supplier farmers are fully compliant with the regulatory requirements and the requirements for free-range production as stipulated by the South African Poultry Association.

Our free-range farmers are audited regularly to ensure adherence to our strict standards. Our free-range hens enjoy access to ample food and water, sunshine and shade, the outdoors and protective shelters. They are fed a grain-based diet that contains no animal by-products.

Using free-range eggs as an ingredient in all recipes is, regrettably, not cost effective. We expect the costs will come down as the industry grows. Our aim is to use free-range eggs in all products and we will keep driving this.

packaging

Woolworths is committed to reducing packaging to the minimum necessary to protect, inform and promote the product. This reduction is supported by an intensive customer education programme and working with our partners to promote recycling facilities.

Too much of the world’s packaging ends up in landfill, where it could pollute the air, soil and water. 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%;
• decrease food plastic bag usage by encouraging customers to use reusable bags; and
• reduce clothing plastic bag usage where possible. In food we have saved over 320 tons of packaging against the targets set last year by analysing the packaging in 1 400 lines of food, specifically by weighing over 200 000 tons of food.

We have set clear targets for recycling and reuse. 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.

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 Western Cape in-store communication around the nearest municipal recycling facility to each Woolworths store and a programme in selected stores to collect CFL light bulbs from customers and recycle these. We launched a new programme for customer recycling at selected Engen service stations in the Western Cape, in partnership with Engen and Nampak.

Woolworths plastic bag usage and reusable bags

Woolworths is committed to reducing plastic bag usage as a way of reducing its impact on the environment, saving costs and assisting customers to save costs as well.

Woolworths customers are particularly 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.

Woolworths ‘green carriers’ food bags are made from 55% recycled plastic, harvested from post-industrial waste, requiring fewer non-renewable resources than would be used to produce bags made entirely from virgin material. The shopping bags used for clothing and general merchandise also contain 35% recycled material which is also harvested from post industrial waste, with a target of 100% recycled bags by 2012.

Hangers

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.

Our entire fleet of trolleys and all instore shopping baskets will be made from recycled material – 86% of this fleet is currently made from recycled material, from post-industrial sources.

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.

Head office and store recycling

Woolworths corporate offices are also committed to recycling. New shared recycling bins were introduced in all corporate buildings during the year. 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. At a store level we’re trying to decrease some of the administration processes in stores to free more time to spend on our customers and making sure their needs are met. By streamlining administration processes we’ve also saved paper. In full line stores we will save about 200 pages a week and in food stand-alone stores we will save about 80 pages. In the past, much electronic waste (e-waste) has ended up in landfill sites even though it contains toxic materials. 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.

We will continue to work towards our stated 2012 targets to reduce clothing packaging by 33% and food packaging by 20% recycling pilot in the Western Cape.