Spotlight Retail Group Australian Packaging Covenant Action Plan July 2010‐ June 2015 Spotlight Retail Group Australian Packaging Covenant Action Plan July 2010‐ June 2015 Table of Contents Page Executive Summary 1
Introduction............................................................................................................... 1
2
Corporate Profile ........................................................................................................ 1
2.1
Spotlight............................................................................................................. 1
2.1.2
Spotlight Consumer Products ........................................................................ 2
2.1.3
Recent Packaging Case Study......................................................................... 3
2.1.4
Packaging Groups......................................................................................... 3
2.1.5
Packaging Waste Management...................................................................... 4
2.2
Anaconda ........................................................................................................... 4
2.2.1
Social responsibility ...................................................................................... 5
2.2.2
Anaconda Consumer Products ....................................................................... 5
3
Proposed Actions........................................................................................................ 6
4
Key Contact Person..................................................................................................... 6
5
Covenant Resources ................................................................................................... 6
Attachment 1: Action Plan Summary Table Spotlight Retail Group Action Plan 10-15
Spotlight Retail Group Australian Packaging Covenant Action Plan July 2010‐ June 2015 Executive Summary This the first Action Plan that has been prepared by the Spotlight Retail Group for the new Australian Packaging Covenant, which came into effect on 1 July 2010. The Spotlight Retail Group (SRG) first became a signatory to the Covenant in May 2007 but up until now only the Spotlight business has been covered by the Action Plans and Annual Reports. This Action Plan now also includes the company’s Anaconda retail business. The plan includes the development of a Packaging Evaluation Procedure in accordance with the Sustainable Packaging Guidelines. This procedure will be integrated into the existing business processes so that the Spotlight and Anaconda teams are equipped to make more informed choices of packaging on the basis of their recyclability, reusability and the optimum use of resources. The plan also proposes the development of a buy recycled policy and the investigation of improved packaging designs to address the potential litter impact caused by Anaconda’s outdoor products range. The Action Plan includes a case study presenting an example of the changes that have recently been made to Spotlight products, which has resulted in substantial resource reductions, positive environmental impacts and a reduction in waste and carbon footprint. The actions proposed in the plan will help SRG to gain a better understanding of the current environmental impacts of the packaging and the potential improvements that can be made. Education is a key component of the Action Plan, including the education of team members and the supply chain partners as well as the customers through improvements in the labelling of the packaging to explain what can be recycled. Spotlight Retail Group Action Plan 10-15
Spotlight Retail Group Australian Packaging Covenant Action Plan July 2010‐ June 2015 1
INTRODUCTION Spotlight Retail Group (SRG) has prepared this Action Plan to meet its obligations as a signatory to the Australian Packaging Covenant. The business is committed to implementing this plan and integrating the strategies contained in the Sustainable Packaging Guidelines into the business processes. SRG will report on the progress that is being made as part of the Annual Reports, which will be submitted to the Australian Packaging Covenant Council before the end of October each year. The first Annual Report will be submitted in 2011. 2
CORPORATE PROFILE The SRG is a private company, which currently employs over 6,000 people. The company’s Support Group (Head office) is located in South Melbourne, Victoria. There are a number of businesses operating under the Group but only two are applicable to the Australian Packaging Covenant including: •
•
Spotlight Anaconda Previously, the National Packaging Covenant Action Plans and Annual Reports have focused solely on the Spotlight brand. This Action Plan has been expanded to now include the Anaconda retail brand. 2.1
Spotlight Spotlight is the largest fabric, craft and home decorator company in Australasia with stores in every State and Territory as well as operations in New Zealand, and through Asia. Spotlight is a privately owned and operated Australian company and proudly remains an incredibly creative organisation, seen by customers to be the best in providing the broadest range of quality products at great prices. Today the Spotlight business operates over 100 stores – and this number will continue to grow through 2010. Employing more than 6,000 people, with stores occupying more than 3,000,000m2 of retail space Spotlight began operations 36 years ago in the markets of Melbourne, opening their first store in 1973. The main departments, Home Interiors, Dress Fabrics and Craft & Party are supported by professional buying, operations, supply chain, marketing, financial and information technology and quality and sustainability teams in Melbourne. Spotlight Retail Group Action Group Plan 10-15
Page 1
Spotlight is synonymous with expertise in fabrics, home interiors and all other products required by the 'Do‐It‐Yourself' customer. All team members undergo extensive training to bring our customers valuable product knowledge and advice. This knowledge also strengthens the company's ability to source its own products throughout Australia and the rest of the world. The result is the delivery of the exact products customers require, at the right price and within the right time frame. Spotlight’s knowledge and experience is constantly expanding, along with its operations. The business is continuing to improve in the areas of sales growth, gross margin growth, stock management and expense control, quality control and corporate social responsibility. Spotlight is also exploring opportunities for new product categories, direct sourcing opportunities, services and markets to grow beyond its current format. Spotlight's rapidly expanding store network is now being complemented by its Shop‐At‐Home Service. A comprehensive product range is available for customers who wish to shop from home via phone, fax or on‐line utilising a Customer Care Centre. Together with their stores, Shop‐At‐Home service and an extensive catalogue and advertising program, Spotlight provides convenience with exceptional value for money to satisfy a dynamic consumer demand for style and fashion and all things for the home. 2.1.1 Social Responsibility Spotlight is a socially responsible business and proactively invests back into the communities it operates as well as many international locations through charity partnerships and community programs including its very successful Stitch In Time program assisting and supporting thousands of women and young people around the world and here in Australia. Spotlight are committed to supporting many organisations and programs, including the Australian Red Cross, The Salvation Army, World Vision, Royal Childrens Hospital, SIDS For Kids, CANTEEN, Murdoch Children’s Research Institute, and the Cancer Council of Australia. Spotlight also has an in‐house Quality Assurance and testing team and uses independent quality inspection teams in many of the countries it sources and manufactures. For Spotlight and all the retail businesses in the Spotlight Retail Group ‐ quality is about ensuring the products exceed customers' expectations; are manufactured to stringent Australian and international standards and in line with international labour standards and conventions. 2.1.2 Spotlight Consumer Products The Spotlight stores stock a wide range of products for the 'Do‐It‐Yourself' customers. These products are available from the following departments: •
Sew and Dress •
Craft and Spartys (party supplies) •
Manchester and Home Decor •
Readymade furnishings (Curtains and blinds) •
Custom Made Curtains & Blinds Spotlight Retail Group Action Plan 10-15
Page 2
2.1.3 Recent Packaging Case Study In the past 12 months, Spotlight has re‐launched a number of products with significantly improved packaging designs. An example of this initiative is presented in the following case study, which shows that whilst the company is yet to develop formalised procedures in line with the Sustainable Packaging Guidelines, initiatives to reduce resource usage and environmental impacts are underway. Case Study – Spotlight’s Everyday Pillow (vacuum packed) This innovative new packaging design allows the pillow to be vacuum packed after manufacture. This design lessens the movement of air in freight deliveries, which results in 75% more cartons being stacked into a standard 40 ft container, compared to a standard pillow. Additionally, the new packaging achieves a 40% reduction in packaging weight compared to the original design. The packaging includes an integrated handle to reduce requirement of a carry bag after purchase, thus reducing packaging and litter / landfill waste. 2.1.4 Packaging Groups A preliminary review of the Spotlight range has been completed to group products together that have similar packaging. This is the first step in planning the packaging reviews that will be conducted in accordance with the Sustainable Packaging Guidelines. The groups nominated for assessment include: 1. Products that are packaged in plastic film (primarily LDPE) including: •
Bed linen •
Blankets •
Ready made curtains •
Quilts •
Table cloths. Spotlight Retail Group Action Plan 10-15
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2. Other Products •
This group includes a miscellaneous range of products that include a variety of packaging designs including polystyrene boxes, paper sleeves, plastic film and cardboard boxes. 3. No primary packaging •
The third group includes the products that have no primary packaging including furnishing fabrics, curtain and dress fabrics and rugs. The review of this group will focus on the secondary and tertiary packaging. 2.1.5 Packaging Waste Management Waste management quantities have been provided to Spotlight by Visy Recycling and Veolia, the two national suppliers of waste management services. In addition, estimates have been made of the proportion of packaging in each individual waste stream. Based on this information, an estimate has been made of the amount of packaging recycled and disposed to landfill from the Spotlight stores. Table 1 presents these estimates, which are associated with meet the requirement of Key Performance Indicators 2 & 3 of the new Covenant. 2.2
Table 1 Packaging Waste Management Total packaging waste disposed to landfill (tonnes) 616 % of packaging waste disposed 27% Total packaging waste recycled (tonnes) 1,653 % packaging waste recycled 73% Anaconda Anaconda is Australia’s largest camping and outdoor adventure retail business. Their mission is to inspire, equip and enable people to get outdoors, helping people enjoy the benefits of outdoor‐oriented recreation and encouraging happier and healthier lifestyles. Anaconda offers high‐quality gear and excellent value to all Australians on a wide range of products that are sourced locally and internationally to meet the needs of all outdoor types. Their business targets serious adventurers through to families on holidays and the whole spectrum of people in between. Since the opening of their first store in 2004 at Bayswater in Victoria, the business has grown rapidly and currently has 23 stores across Australia. Employing over 1000 team members at stores and support group Their mission is to create the ultimate experience for customers when they visit a store, and excite them with the latest and greatest product at the best prices. Spotlight Retail Group Action Plan 10-15
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Anaconda recognise the importance of the ‘try before you buy’ philosophy and offer a rental service on kayaks, bikes, camping gear or the mobile rock climbing pinnacle. A pinnacle is also built into all stores for customers to climb, and kayak pools are available in select locations allowing the full experiential experience for customers. Anaconda believes in giving back to the communities in which we live. The conservation of our national parks and the traditional homelands of the Aboriginal people is central to who we are. We promote only responsible outdoor pursuits and always take responsibility for our actions because the environment is our business. 2.2.1 Social responsibility At Anaconda, quality is about more than making sure their products meet or exceed customers’ expectations. It also means that they take care about how they are manufactured and ensure that the conditions under which they are produced, satisfies the customers as well as the business. Anaconda takes responsibility for how its operations may affect people and the environment; it is also an essential prerequisite for their continued profitability and growth. With over twenty stores throughout Australia, their stores and team members are often at the heart of many local communities. The Partnerships and Community program and Charity partnership program aims to support and assist community initiatives in these areas. As a growing business we have a responsibility to societies around the world and the communities where we operate. This means integrating social and environmental concerns into all our business operations to reduce negative impacts and maximise positive ones. 2.2.2 Anaconda Consumer Products Anaconda’s products are sold under the following ranges: •
Camp & Hike •
Water Activities •
Bikes & Accessories •
Technical Apparel & Footwear Similarly to the Spotlight product range, a preliminary review of the Anaconda range will be completed in the first year, which will result in the exclusively branded products being grouped ready for assessment in the second year. Spotlight Retail Group Action Plan 10-15
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3
PROPOSED ACTIONS Attachment 1 includes a table of the proposed actions for the period from July 2010 to June 2015. The actions have been developed to address the three performance goals of the Covenant: 1. Design – Packaging Optimised to achieve resource efficiency and reduced environmental impact without compromising product quality and safety. 2. Recycling – The efficient collection and recycling of packaging 3. Product Stewardship – a demonstrated commitment to product stewardship by the supply chain and other signatories There are 9 key performance indicators (KPIs) under the new Covenant. Whilst not all of these KPIs are directly applicable to SRG, actions will be implemented to support the targets that have been set. Updates will be made to the list of actions as part of the Annual Reports to show the progress that has been made and any variations that are needed based on the findings in the previous year. 4
KEY CONTACT PERSON The following person has been nominated as the key contact for the Australian Packaging Covenant Council and anyone else who may have a question about the SRG Action Plan. Steven Carey Head of Group Corporate Affairs T: 03) 9675 4640 F: 03 9675 4575 M: 0413 988 640 E: evad@spotlight.com.au
5
COVENANT RESOURCES It is proposed that an APC Committee be formed to take responsibility for the implementation of this Action Plan. The committee will include personnel from the following areas: •
Public affairs and legal •
Quality assurance and merchandise management •
Spotlight Brand management •
Anaconda Brand Management •
Marketing •
Warehouse and logistics Spotlight Retail Group Action Plan 10-15
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This committee will be formed by the start of the 2011/2012 year and will ensure that the targets nominated in the Action Plan Summary Table will be met and the Annual Report is submitted each year by the due date. * * * * * Spotlight acknowledges the support provided by GreenChip in the preparation of this Action Plan. Attachment 1. Action Plan Summary Table Spotlight Retail Group Action Plan 10-15
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Spotlight Retail Group
2010-2015 Action Plan
ACTION PLAN SUMMARY TABLE 2010-2015
APC Goals
KPI
Spotlight Retail
Group (SRG) 2010
Baseline
1. Design –
optimise
packaging to
achieve
resource
efficiency and
reduce
environmental
impact without
compromising
product quality
and safety
KPI 1 Proportion
of signatories in
the supply chain
implementing
the SPG for
design or
procurement of
packaging
Documented
policies and
procedures have
not yet been
developed.
2. Recycling
– the efficient
collection and
recycling of
packaging
No assessments
have been
completed
SRG 2011 Target
Q4.Develop
Spotlight
Packaging
Evaluation
Procedure (PEP) in
line with the SPG.
SRG 2012 Target
SRG 2013 Target
SRG 2014 Target
Q2.Finalise PEP
and integrate into
business
processes.
Q4.Conduct
internal audit of
PEP
implementation
Q4.Conduct
internal audit of
PEP
implementation
Q3.Conduct pilot
trial of PEP with
two new Spotlight
products.
Q1.Conduct pilot
trial of PEP with
two new Anaconda
products.
Q1.Use PEP on
100% of new
Anaconda
products.
SRG 2015 Target
Q4.Conduct
internal audit of
PEP
implementation
Q1.Use PEP on
100% of new
Spotlight products.
KPI 2
National
recycling rate
for packaging
No assessments
have been
completed
Q4.Complete
review of all
packaging groups
in Spotlight range.
Q1.Complete
review of 5
packaging groups
in Anaconda range.
Q4.Complete
review of remaining
packaging groups
in Anaconda range.
Spotlight is
currently recycling
73% of the
packaging waste
that is generated at
the stores.
Q4.Maintain or
improve 2011
diversion rate at
Spotlight stores.
Q4.Maintain or
improve 2012
diversion rate.
Q4.Maintain or
improve 2013
diversion rate.
Q1.Include Mobius
Loop on all new
Spotlight products
that include
recyclable
packaging.
Q4.Maintain or
improve 2014
diversion rate.
Spotlight Retail Group
2010-2015 Action Plan
ACTION PLAN SUMMARY TABLE 2010-2015
APC Goals
KPI
Spotlight Retail
Group (SRG) 2010
Baseline
2. Recycling
– the efficient
collection and
recycling of
packaging
KPI 2
National
recycling rate
for packaging
Anaconda has a
waste diversion
program but is not
currently capturing
recycling data for
waste generated at
stores.
KPI 3 Proportion
of signatories
with on-site
recovery
systems for
recycling used
packaging
Spotlight recovers
these materials at
stores for recycling:
• Cardboard
• Paper
• Plastic film
• Steel
SRG 2011 Target
SRG 2012 Target
SRG 2013 Target
Q2.Establish
baseline diversion
rate at Anaconda
stores.
Q4.Maintain or
improve 2012
diversion rate.
Q4.Maintain or
improve systems
Q4.Maintain or
improve systems
Q4.Consult
stakeholders to
determine the
feasibility of
including recycled
materials in
packaging
Q3.Draft a buy
recycled policy and
implement on a
pilot project to
increase the
recycled content on
one product.
SRG 2014 Target
SRG 2015 Target
Q4.Maintain or
improve 2013
diversion rate
Q4.Maintain or
improve 2014
diversion rate
Q4.Maintain or
improve systems
Q4.Maintain or
improve systems
Q4.Maintain or
improve systems
Q1.Finalise buy
recycled policy and
allocate personal
responsibilities to
buying teams and
procurement
managers to
implement policy.
Q2.Conduct
internal audit of buy
recycled
implementation
Q4.Conduct
internal audit of buy
recycled
implementation
Q1.Include Mobius
Loop on all new
Anaconda products
that include
recyclable
packaging.
Anaconda recovers
these materials at
stores for recycling:
• Cardboard
• Paper
• Plastic film
• Polypropylene
strapping
KPI 4 Proportion
of signatories
with a policy to
buy products
made from
recycled
packaging
Spotlight and
Anaconda do not
currently have
policies for buying
recycled.
Spotlight Retail Group
2010-2015 Action Plan
ACTION PLAN SUMMARY TABLE 2010-2015
APC Goals
KPI
Spotlight Retail
Group (SRG) 2010
Baseline
SRG 2011 Target
SRG 2012 Target
3. Product
stewardship
–a
demonstrated
commitment
to product
stewardship
by the supply
chain and
other
signatories
KPI 6 Proportion
of signatories
that have formal
processes for
working with
others to
improve design
and recycling of
packaging
Spotlight has
established national
contracts with
Veolia and Visy
Recycling. This is
one of the reasons
for achieving the
73% diversion for
packaging waste.
Q4.Consult key
suppliers during
development of the
PEP.
Q3.Once finalised,
provide copy of
PEP to all suppliers
and advise that the
PEP will be
conducted on all
new products from
1/7/2013.
KPI 7 Proportion
of signatories
demonstrating
other product
stewardship
outcomes
Spotlight has
phased out the use
of single use retail
shopping bags and
now makes
available reusable
bags for purchase.
Removed 17million
plastic bags from
marketplace.
Q4. Program
underway
SRG 2013 Target
SRG 2014 Target
Q1.Review
program and report
on further
improvements that
can be made.
Q1.Review
program and report
on further
improvements that
can be made.
Spotlight has
moved to the use of
recycled PVC
reusable pallets.
Reducing timber
pallet use by 57,000
units PA.
Spotlight - Carbon
Zero Reusable
Bags program
Q2. Introduction of
Reusable Carbon
Zero certified calico
bags. Ensuring
supplier is also
Carbon Zero
certified.
SRG 2015 Target
Q1.Review
program and report
on improvements
that can be made.
Spotlight Retail Group
2010-2015 Action Plan
ACTION PLAN SUMMARY TABLE 2010-2015
APC Goals
KPI
Spotlight Retail
Group (SRG) 2010
Baseline
SRG 2011 Target
SRG 2012 Target
3. Product
stewardship
–a
demonstrated
commitment
to product
stewardship
by the supply
chain and
other
signatories
KPI 7 Continued
Fabric Packaging
reduction program Spotlight is loose
loading rolls of
fabric into
containers from
overseas vendors.
This program
reduces
cardboard/bailing
material/plastic
wrap at DC and
stores.
Pack Optimisation –
Product pack size
optimising program
to reduce waste
generated when
picking/packing.
Also improves
product flow to
store and freight
efficiencies.
Reusable Material
Handling Units –
Introduce MHU to
reduce recycling
and landfill volume.
Q4. Complete pilot
trial of program
Q2. Implement
program across
furnishings and
dress fabrics
ranges for all
regions
Q4. Testing with
select vendors
across house
products
Roll out will be
dependent on pilot
program
Q3. Evaluation of
test program
completed
Q2. Implement
regional MHU
program
SRG 2013 Target
SRG 2014 Target
SRG 2015 Target
Q1.Review
program and report
on improvements
that can be made.
Q1. Expand MHU
program to full
Spotlight and
Anaconda store
network
Q1. Review
program and report
on improvements
that can be made.
Spotlight Retail Group
2010-2015 Action Plan
ACTION PLAN SUMMARY TABLE 2010-2015
APC Goals
KPI
Spotlight Retail
Group (SRG) 2010
Baseline
SRG 2011 Target
SRG 2012 Target
SRG 2013 Target
SRG 2014 Target
SRG 2015 Target
3. Product
stewardship
–a
demonstrated
commitment
to product
stewardship
by the supply
chain and
other
signatories
KPI 8 Reduction
in the number of
packaging items
in the litter
stream
Litter is not a
significant issue for
the Spotlight
products.
NA
NA
NA
NA
NA
Q1.Consider litter
during trial of the
PEP on the new
Anaconda products
selected for the
trial.
Q1.Include antilitter messages on
all Anaconda
packaging artwork
where there is
considered to be a
litter risk.
This APC Goal and
KPI will be
considered as part
of the review of the
Anaconda range of
outdoor products.
Q2.Investigate
alternatives to nondegradable
packaging items
that may be a litter
risk.
Q1.Introduce
changes to nondegradable
packaging items on
new designs.