Overview

The main challenge facing our business on an ongoing basis is the continued safe operations of our stores, manufacturing sites, distribution and support centres in a sustainable way that lessens our impact on the environment by means that are measurable.

In dealing with this challenge, the main environmental areas on which we focused our attention during the year were reducing our environmental impact, providing our customers with information on sustainable living choices and improving sustainability within our supply chains.

As part of our 2007 Water Saving and Climate Change strategy we have commenced a two-year $8 million investment programme in new projects designed to further reduce our environmental impact as detailed below.

• $6 million allocated for rainwater harvesting systems being installed in existing warehouse stores in mainland Australia (excluding the tropics).
• $450,000 allocated for a research project that we have begun in partnership with Murdoch University in Western Australia to explore energy efficiency opportunities and micro-generation of renewable and/or hybrid energy sources for our warehouses.
• $1.55 million to fund the development of carbon offset projects.

Upgrades to our website are helping to provide accessible and current information to our customers on low cost options to save energy and water in their homes. The sustainability message also features widely in our Adult DIY Workshops, ‘How To’ brochures and in-store communications available at our stores.

Through increased endeavours within our supply chain in the last 12 months the amount of whole wood product sourced from plantation and other known low risk sources now exceeds 90 per cent of timber products purchased. Approximately 10 per cent of these purchases are independently certified by the Forest Stewardship Council  (FSC) and other recognised schemes.

A major achievement has been the exclusive purchase of FSC-certified and labelled outdoor leisure timber products as part of our Australian Spring 2007 range and our acceptance as a member to the WWF Australia Forest & Trade Network (AFTN) recognising the continuation of our work to improve the credentials of the timber products we stock.

The two main safety areas on which we focused our attention during the year were continued implementation of our ‘all injuries’ safety focus with stronger emphasis on behaviour in high-risk areas and completing the rollout of the updated BSAFE manual. The manual was implemented across all Australian store operational sites and we have also established new training and awareness material and electronic safety incident data recording to support the focus on identified high-risk areas.

Additional resources have been provided for dedicated state safety advisors and injury management teams supporting stores in the field to aid them in implementing BSAFE strategies and directing safety improvement teams.

Environmental expenditure

In the past year a significant investment has been made in research projects and store upgrades relating to sustainability and environmental outcomes. Energy and water efficiency research projects and store upgrades aimed at increasing energy, water efficiency and controlling dust were introduced during this period. 

Capital expenditure for store upgrades focused on improving sustainability and environmental outcomes totalled $5,322,672, with an additional $341,763 spent on developing our sustainability strategy and for water and energy research projects.