In May we announced a further $8 million investment in new environmental projects and commitments.
We are committed to becoming carbon neutral by 2015 or earlier. We have explored energy efficiency projects over the past few years, but more work is needed to accelerate progress towards the carbon neutral goal. Two new major projects have been announced:
- A new research partnership with Murdoch University, to investigate commercially feasible ways to reduce our reliance on current grid-sourced energy. This will include energy efficiency work and exploring micro-generation of renewable and/or hybrid energy sources for our warehouses. We will invest $450,000 in this project over the next two years.
- We have publicly invited submissions for grants for carbon offsetting projects that can be conducted over the next two years with $1.55 million to fund projects that will create carbon offsets to address our carbon emissions in the short term whilst we explore ways to further reduce these emissions. Applications for these grants closed on 31 July 2007 and details of the successful projects can be found on our website.
Over the next two years all of our warehouses in mainland Australia (excluding the tropics) will be installed with a minimum of 30,000 litre rainwater tanks and supporting infrastructure to allow the irrigation of outdoor nurseries with the collected water.
This $6 million investment will mean a reduction of mains water usage by up to 80 per cent in some stores. Nationally,
through this project alone we estimate a saving of 250,000 kilolitres per year, based on average rainfalls.
In addition, we are aiming for even higher water self-sufficiency in our new warehouses, using purpose-built stormwater capture and recycling systems that have been successfully trailed in a number of new stores over the past two years. Further to this, we will continue to pursue other water saving initiatives across the business.
Historic data from previous air quality assessments conducted around our stores indicate low levels of volatile organic compounds, dust and particulates and carbon monoxide emissions that are substantially below NOHSC workplace exposure standards. The mechanical ventilation systems in warehouse stores are designed to provide adequate airflow for storage areas. No further testing has been conducted in stores during this reporting period.
Dust
Wood dust is produced at most stores as a result of sawing for customers who utilise the cut-to-length timber service. Power saws are fitted with dust extractors and team members are supplied with protective equipment which they are required to wear during operation of the saws.
Safe operating procedures to address the infrequent cutting of medium density fibreboard products have been developed and are in place at all relevant sites as part of the BSAFE programme.
Odour
Odorous products such as pelletised manures, garden mixes and chemicals are sold in small consumer-sized sealed packages. Odour from these storage areas is managed through the ventilation systems and close attention to housekeeping by removing or fixing broken or damaged packaging.
Greenhouse gas emissions
The increase in our total greenhouse gas emissions as reported below is largely as a result of 13 new warehouse store openings and increased use of after hours stock filling activities.
Our total greenhouse gas emissions were estimated to be 182,802 tonnes of carbon dioxide equivalent, up eight per cent on last year, and this equates to 3.7 tonnes of carbon dioxide equivalent per hundred thousand dollars of revenue, down six per cent on last year.
The greenhouse gas emissions were largely due to electricity consumption at our stores, distribution centres and support centres (approximately 82 per cent) and waste disposed off-site (approximately 13 per cent).
Noise
Environmental impact studies are submitted to local authorities as required when a warehouse store development is undertaken. Previous assessments that have been carried out do not rate noise issues as a significant environmental aspect.
Our complex managers liaise directly with neighbouring residents to adjust noise levels relating to traffic management and the volume of our public address system whenever this becomes a local issue.
Solid waste
During the year we consolidated the number of waste service contractors in Australia into two major providers. Due to difficulties in obtaining data from previous providers, our landfill estimate is based on extrapolating data from a 75 per cent sample of sites. This may affect the accuracy of data for comparison purposes to last year’s report. Improved accuracy and site level reporting will be achievable as we implement national waste service contracts with SITA and VISY.
Solid waste during the year consisted primarily of cardboard and plastic shrink-wrap material that is collected on-site for recycling.
Our total solid waste to landfill stream during the year was estimated to be 323,122 cubic metres, up four per cent on last year. Total solid waste to landfill per hundred thousand dollars of revenue was estimated to be 6.6 cubic metres, down 10 per cent on last year.
The solid waste volumes are calculated using revised weight-to-volume conversion factors obtained from a leading waste management contractor and a waste survey commissioned by the Department of Environment and Conservation in New South Wales.
Liquid waste
Due to the nature of our operations we do not produce significant amounts of liquid waste other than normal sewerage systems discharge. Our waste disposal guidelines do not permit any liquid waste to be discharged to stormwater in accordance with local requirements.
Clean up and disposal of leaking packages of chemical products is handled in accordance with our hazardous waste disposal procedures where it is contained for removal to an approved disposal facility.
Recycling initiatives
Our waste management goal is to further reduce landfill waste by improving the way we reduce, reuse and recycle throughout our own operations as well as supporting product stewardship initiatives with our suppliers for the products that we sell. All major sites have cardboard recycling systems. We estimate that 173,098 cubic metres of cardboard were recycled.
A comprehensive review of recycling and waste within our Australian operations was completed in September 2006 resulting in the appointment of the two major providers referred to previously.
This will enable us to ensure consistent services and volume reporting for all sites and to effectively manage our general waste and recycling requirements to reduce our impact on the environment. Both providers will also supply detailed reporting for compliance with our sustainability requirements.
We are unable to accurately measure the volumes of plastic recycled at our stores due to insufficient data from outgoing service providers.
Product stewardship
We continue to undertake product stewardship initiatives and engage our supply chains with the overall aim of lessening the life cycle impacts of products within our sphere of influence.
We continued our support of the 2007 Banksia award-winning Sustainability Victoria PaintbackTM paint recycling programme. The programme involved specially-designed containers set up inside our Vermont South warehouse store so customers could drop off unwanted paint and paint cans during normal opening hours. The waste paint was recovered and reprocessed by Dulux into a quality recycled fence finish product available through our stores, with the steel cans also being recycled. From its first weekend trial in 2003 to the recent 15 month stint at Vermont South, Paintback successfully collected over 200 tonnes of paint and associated packaging, and created an estimated 28,000 litres of fence paint. The pilot is now finished and a review of the outcomes is being undertaken by Sustainability Victoria. Significantly, the Australian Paint Manufacturers’ Federation considers Paintback a key influence leading to the development of its own soon-to-be-announced national product stewardship scheme.
We continue our commitment to diverting all end-of-life computer equipment from landfill Australia-wide. A major recovery project is running from September 2007 to consolidate end-of-life computer equipment for reuse and recycling at our Centralised Return Centre in Melbourne.
We have renewed our signatory status for the National Packaging Covenant in Australia and continue to progress with our action plan to reduce the impact of our specific product range and transport packaging waste.
We have continued with our industry-leading initiative to reduce single-use plastic shopping bags in Australia and in April 2007 launched the programme in our New Zealand stores.
Including New Zealand’s results, since the inception of our 10 cents plastic bag levy in September 2003, over $177,000 has been donated to the Keep Australia Beautiful Council and the Keep New Zealand Beautiful Council. During this period, more than one million reusable bags have also been sold.
We continue to actively investigate the feasibility of other product stewardship opportunities in the areas such as plastic plant pots and rechargeable batteries.
In partnership with one of our major waste service providers (SITA) an in-store trial of plastic plant pot recycling is underway at our Rockingham store in Western Australia to gauge the level of support from customers and the viability of the service.
To date we have not been able to identify a commercially feasible model for offering a rechargeable battery recycling service to our customers. We are continuing dialogue with our major suppliers and Sustainability Victoria in an effort to gain wider industry support for a pilot programme. A workshop with our major suppliers on this issue was held in July 2007.
We are also investigating the opportunity with Sustainability Victoria to pilot a ‘Detox Your Home’ event where customers can drop off household chemicals, fluorescent globes, batteries and other potentially hazardous wastes at specially designed and supervised collection stations in the car parks of selected stores.
Timber procurement
We have continued to work closely with our suppliers of timber and wood products towards the goal of ensuring all future products supplied to us originate from legal and sustainable forest operations. As a result of our revised risk-focused approach to our supply chains announced in October 2006, we now aim to achieve legal verification of tropical timber whole wood products by December 2008. Suppliers in this category are required to provide details of their progress towards this goal as part of our benchmark survey for calendar year 2007.
Our risk-focused approach to our supply chains seeks a higher level of assurance on product that originates from tropical areas, in particular South East Asia. We have adopted an interim measure for these supply chains to achieve independent verification of legality of origin as a step towards full certification. Through an association with an independent certification body, the first phase of a Timber Legality and Traceability Verification audit was completed in Indonesia with three suppliers of Merbau decking products.
The results of the pilot audit have indicated where the greatest potential exists for the supply chains to achieve third party verified legal certification and phase two forest level audits of this process have commenced. Through the increased endeavours within our supply chain in the last 12 months we have been able to increase the amount of independently verified whole wood products to 10 per cent of total purchases.
Inclusive of products from independently verified sources, now over 90 percent of timber products are sourced from plantation and other known low risk sources.
A major achievement has been the exclusive purchase of Forest Stewardship Council (FSC) certified and labelled outdoor leisure timber products for our Australian Spring 2007 range.
In recognition of our work to ensure our timber products are sourced from legal and sustainable forests, WWF-Australia welcomed us as a member of the Australia Forest & Trade Network. This is a continuation of our work in mapping supply chains and improving the credentials of the timber products we stock.
Our New Zealand operation also remains an active member of the Imported Tropical Timber Group, an industry association working collaboratively with the government and environmental organisations to encourage sustainable timber procurement.
We are grateful for the assistance provided by both Greenpeace and WWF Australia in developing and implementing this policy.
Flora and fauna
We support community land rehabilitation projects throughout Australia and New Zealand. Building materials and plants have been donated and team members volunteer their time to help restore and beautify local environments. Such projects include taking part in national tree planting day activities and replanting trees and shrubs in local wildlife corridors near stores.
Contamination
We are not aware of any potential contamination during the year, except as set out below. No contamination issues eventuated from the store fire reported last year.
Asbestos
Currently 13 sites are known to contain asbestos cement material. External risk assessments and asbestos management plans are in place as appropriate.
Energy
Energy use during the year related primarily to electricity consumption at our stores and vehicle fuel use.
Total energy consumption was estimated to be 641,882 gigajoules, up 12 per cent on last year.
Our total energy consumption per one hundred thousand dollars of revenues was estimated to be 13.1 gigajoules, down three per cent on last year.
Energy sources are detailed below.
Fuel
Petrol, diesel and LPG accounted for 16 per cent of our total energy consumption by gigajoule. Our petrol, diesel and LPG consumption was estimated to be 991 kilolitres, 607 kilolitres and 1,748 kilolitres, respectively.
Electricity
Electricity accounted for 81 per cent of our total energy consumption by gigajoule. Our electricity consumption was estimated to be 517,508 gigajoules.
Natural gas
Natural gas accounted for three per cent of our total energy consumption by gigajoule. Our natural gas consumption was estimated to be 22,128 gigajoules.
Energy Efficiency Opportunities
Through our parent company Wesfarmers Limited, we are a participant in the Commonwealth Government’s Energy Efficiency Opportunities programme.
Consumption
Water use during the year related primarily to nursery irrigation systems, evaporative air-conditioning and kitchen/toilet facilities. Total water consumption was estimated to be 857.5 megalitres, up 10 per cent on last year. Consumption per one hundred thousand dollars of revenue was estimated to be 17.5 kilolitres, down four per cent on last year.
The increase in total megalitres of water consumed is attributed to 13 new warehouse store openings and greater use of nursery irrigation systems to compensate for extended dry weather conditions throughout Australia. Nursery irrigation represents 50 to 70 percent of the total water consumption at our warehouse stores. Our water source is primarily scheme water. We are unable to measure the quantity of ground water used by a small number of sites to reticulate landscape garden areas or the volume of water recycled onto landscape gardens.
Scheme water irrigation systems for the plant nursery areas are controlled through an automated pre-set timer system. Where specific restrictions apply to nurseries, we have implemented additional procedures to ensure we minimise water use and comply with regulations. A nursery irrigation working group is well advanced in their investigation into designing a more efficient irrigation model for our stores. Once the design is determined, this will be fitted into all existing stores as a standard and incorporated in the new store construction brief.
Reuse and recycling
Our Stafford warehouse in Queensland was one of the first purpose-built sites to employ many of the water saving systems previously trailed. This includes reuse and recycling techniques such as rainwater harvesting, multiple water circuits, nursery run-off recycling and water efficient fixtures and fittings. The sustainable urban design principles also include car park bio filter systems that improve the quality of stormwater run-off entering the drains.
As mentioned previously in this report, water use is a major part of our climate change strategy and major advances in this area will be made in coming years.
Other materials
We have a number of programmes designed to generate ideas from our teams on how to grow our business and improve efficiencies. Ideas are also put forward that have an environmental benefit and a number of eco efficiencies have been identified and put into action. We continue with our arrangements to purchase FSC-certified A4 plain copy paper for use company-wide as reported last year.
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