Woolies gets a major green makeover

Woolworths started its “GOOD business journey” towards ­sustainable growth on 19 April. Simon Susman, Woolworths’ CEO, said this strategy is the result of a review of the way the retailer addresses the issues of sustainable growth within the context of SA’s changing social and environmental needs.
Issue date 11 May 2007

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Woolworths started its “GOOD business journey” towards ­sustainable growth on 19 April. Simon Susman, Woolworths’ CEO, said this strategy is the result of a review of the way the retailer addresses the issues of sustainable growth within the context of SA’s changing social and environmental needs.
A five-year plan has been ­identified, which will change the way in which ­Woolworths does business by ­incorporating a series of ­challenging targets and commitments, centred around four key components – accelerated transformation, social development, enhanced environmental focus and the addressing of climate change.
“Reaching these will require significant behavioural and cultural change,” Susman said. However, he added that as a business with more than 17 000 employees, 300-plus stores, six million customers and a network of 1 000 suppliers, Woolworths can have a substantial influence.
Woolworths’s existing Supplier Code of Business Principles, against which all suppliers are regularly audited, will be amended to include goals and standards that align themselves with the “good business journey”.
Woolworths will take a serious look at its carbon footprint and the ­reduction thereof. The company has a planned reduction of 30%, which will be achieved by energy efficiencies and ­reinvesting some of the savings in exploring more sustainable energy sources and more efficient forms of transport.
Woolworths will also work closely with suppliers and customers, mobilising them to understand their own carbon footprints and making it simpler for them to reduce their footprints. “We will be one of the first retailers worldwide to only sell energy-saving lightbulbs – our customers will no longer be able to buy traditional light bulbs in our stores.”
Environmental impact is one of the key areas, especially the issue of diminishing biodiversity. Organic production, conservation and a new approach to packaging are the key areas of focus, Susman said.
“We have to be more aware of our impact on the biodiversity and water supplies of SA. As a fast-growing business in the food and clothing sector we have to ensure that we support the protection of these scarce and unique natural resources – be it water conservation, predator-friendly lamb, fynbos-friendly potatoes, not selling any endangered species, encouraging the right farming practices or ensuring that key raw materials only come from the most sustainable sources. We will make a difference.”
Woolworths will make their packaging more environmentally friendly. “Packaging will be reduced to the essential requirements of product protection, promotion and information. Our targets include a one-third reduction of packaging in clothing and a 20% reduction in food packaging.”
Woolworths is also planning on accelerating transformation, with the focus on enhanced BEE, skills development and equity ownership plans, ensuring a collaborative approach with suppliers, government and franchisees and ­driving the company’s policy of “South Africa first”, Susman said. Extensive BEE employment share ownership schemes will be started in 2007. Woolworths has set up teams to work with emerging suppliers.
Susman said skills development and training will continue to be a focus in order to establish a pipeline of talent that can rise to senior levels of the business. – Staff reporter