SUSTAINABILITY REPORT - 2018 OFFICEMAX NEW ZEALAND
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We’re putting About OfficeMax a stake in the New Zealand ground OfficeMax New Zealand Ltd. is owned by Platinum Equity, a US based firm with This is our second sustainability a global portfolio of companies across report, which seeks to diverse industries. communicate the economic, social and environmental impacts of its We trace our roots back to 1871 with the operations to stakeholders. establishment of Coulls Somerville Wilkie, a printing and publishing company. Through This report covers the operations various changes of ownership, mergers and of OfficeMax New Zealand, for acquisitions, the company honed its office the period January 1, 2018 to and school supplies focus, and grew its December 31, 2018. national network. This report uses the Global In New Zealand, OfficeMax operates from Reporting Initiative (GRI) Standards more than 19 locations offering distribution, as a reference. Where applicable, retail, sales and shared service activities. the relevant standards are noted. OfficeMax is a progressive provider of office supplies, solutions and services, as well as workplace products and furniture; its product range extends to more than 100,000 products. Our dedicated account managers and product specialists support businesses of all sizes, plus schools and families throughout the country. Orders are taken online, by phone or email, or through a store visit. OfficeMax’s account team and courier partners provide highly reliable, extensive rural and urban delivery, too.
Contents About OfficeMax New Zealand 2 Message from our MD 4 MATERIAL ISSUES What’s important to us 5 How we’ve made a difference in 2018 6 We couldn’t do it without our people 8 Caring for our community 12 Putting our customers first 14 Keeping our supply chain ethical 19 Managing freight efficiently 22 Waging a war on waste 24 OUR SUSTAINABILITY TIMELINE Moving forward every year 27 3 officemax.co.nz
Message from our MD Kia ora and welcome Our ownership change to Platinum Equity, has further enabled our progress as we continue to improve our systems and Our headway with sustainability processes driven by our Kiwi values and long is one of the things I am most history of serving New Zealanders. proud of this year – after more In terms of economic sustainability, our than a decade of hard work strategy to offer a broader range of we are building tangible categories such as safety, cleaning, hygiene momentum with customers, and technology has led to strong sales growth and a more complete product range suppliers and, of course, our own to our customers. dedicated team of eco-warriors. Purchasing Waiwhetu Distributors, a It’s making a real difference to Wellington-based supplier to cleaning the way we approach every companies, has further allowed us to business decision. extend our product range. Everything from highly efficient vacuum cleaners and floor scrubbers, to automated dispensers that help customers reduce chemical use. Along the way, we have also been able to improve the health, safety, and efficiency of Waiwhetu’s own operations. As a nationwide provider of business consumables, we have our finger on the pulse of New Zealand when it comes to sustainability and this year customers have been especially focussed on reducing plastics.
In response to this and to make this goal When CEO of Barnardos, Jeff Sanders, So, I’m extremely proud of OfficeMax and MATERIAL ISSUES achievable, our retail stores have done away visited OfficeMax this year, he talked about our ongoing commitment to Kiwi kids. with single-use plastic bags, we’ve reduced the difference we’re making to individual With ongoing progress in our sustainability What’s the packaging required for some products and we’re exploring opportunities for further children through our ongoing sponsorship of Max e-Grants and the 0800 What’s Up journey, we are frequently being asked important to share our experiences and our improvements in 2019. helpline. His presentation struck a chord expertise. Both existing and potential to us with me as I grew up in a family that was not To help our customers recycle e-waste such customers include sustainability in their materially wealthy, so I know how it feels to The six topics outlined in this as computers and printers, we’ve introduced tender documents and we’ve seen an go without. My Dad was an immigrant to 2018 report are those that the TechCollect recycling service. Unwanted, increase in interest from customers New Zealand on an assisted scheme to be stakeholders identified in 2017 end-of-life items can simply be dropped at and suppliers who want to learn how to a farm labourer. as being most relevant and one of our OfficeMax retail stores and for create, implement, and manage their own important to the sustainability corporate organisations, we collect larger sustainability programmes. of the OfficeMax business. volumes directly, across the country. Our people remain the most vital and Without realising it the ‘Reduce, This year our first four electric vehicles (EV’s) valued part of OfficeMax. I am constantly 1 W e couldn’t do it without took to Auckland roads and we are now Re-use, Recycle’ ethos was built impressed by their determination to find the our people exploring other opportunities for EV use. into our daily lives. best solutions to drive improved customer We also added a new GPS tool to assist experience and satisfaction. 2 C aring for our community driver safety and manage fuel consumption The local supermarket brought bruised fruit They care about sustainability. They are 3 Putting our customers first through better driver behaviour. and veges as well as out of date bread and creative and passionate. I am very grateful cakes to the farm for the pigs. We would Community involvement right across the for their ongoing support. 4 Keeping our supply sort through it, cutting out the bad bits and country is a core value for us. In 2018, we chain ethical using the rest. Mum bottled the things she Regards gave back more than $817,000 through our could, making chutney’s and sauces and School Rewards programme (totalling more Kevin Obern 5 M anaging freight efficiently pretty much everything else came from our than $4.8 million over the past 12 years). own vege garden. Clothes were patched 6 W aging a war on waste This funding has been used by schools and darned to make them last longer and to give young Kiwis access to technology, toys were handed down amongst family furniture, sporting equipment and other and friends. This was my first lesson in teaching resources vital to their education. sustainability – it has never left me! 5 officemax.co.nz
How we’ve made a difference in 2018 We’re chasing that > Introduced TechCollect, New Zealand’s > R eported a steady increase and sustained first free dedicated e-waste recycling increase in employee engagement and magical 1%. service, hosted at OfficeMax retail participation rates. With TechCollect and stores across the country. TechCollect > D eveloped a mental health programme Croxley Recycling, less gives households and small businesses as part of our broader wellness initiative. a recycling option for out-of-date and than 1% of your old > Julie Roberts, our Health, Safety and unused office technology products such printer is ending up as computers, tablets, mice, keyboards Sustainability Manager, played a in landfill. and more. pivotal role in winning major contracts as sustainability continues to gain in EMPLOYEE > Invested more than $872,000 in importance for our customers. Max e-Grants as of December 2018, helping more than 14,000 kiwi kids > P urchased Waiwhetu Distributors, a (working in partnership with 11 preferred Wellington-based business that supplies suppliers). Max e-Grants provides grants cleaning products and machinery. of up to $5,000 per child for basics such The acquisition expands our range of as uniforms, stationery and school trips. cleaning machinery and has contributed to a 30% increase in sales in this category. > G ave back more than $817,000 through our School Rewards programme, bringing > F or our own-brand OfficeMax our total School Rewards giving to more products, we updated our stringent than $4.8 million. sustainability audits to be more focussed on sustainability and product life > Introduced four electric cars to the cycle considerations. fleet and a new GPS system to better understand driver behaviour. Both initiatives will contribute to a lower emissions profile for OfficeMax.
We couldn’t do it without our people They’re at the heart of OfficeMax. In research for this report, customers, Our employees have stood beside us The people who are Our 700+ employees serve customers suppliers and employees reiterated the through the change of ownership of the involved in our contract from Northland to Southland, ensuring importance of OfficeMax’s people to our OfficeMax business, remaining resolute and customers receive a friendly and business and praised our supportive and engaged. In fact, many ideas for sustainability really want it to succeed. efficient service. respectful working culture. improvements implemented across our They will do anything to business have come from them. make it work. CUSTOMER Staying engaged Engaged employees are committed to OfficeMax and its goals, and care deeply I think they’re a fantastic about its reputation and performance. We conduct an employee engagement 72% people organisation. survey annually to measure how The commitment and hard work of our They have had similar employees are feeling about OfficeMax Human Resources team is demonstrated leadership for a long time. as a place of work. through an increase in employee The staff are engaged participation in the survey. and you can feel that when you walk into 2015 2016 2017 2018 An engagement score of 72% their premises. compares very favourably to 76% Participation 78% Participation 80% Participation 83% Participation international benchmarks. SUPPLIER Rate Rate Rate Rate 65% Engagement 66% Engagement 70% Engagement 72% Engagement Rate Rate Rate Rate
“I work with good people in my department, who are “Leaders in our organisation practically now my family.” allow opportunities for “A fantastic culture of hard learning and development. working and driven people Team members create a all striving for the same goal. “I am treated with warm working environment. OfficeMax also has a respect and there is a There is a desire to be fabulous family feel and this friendly atmosphere.” “OfficeMax is an the best we can for our inclusive, diverse, caring comes from the Executive customers.” organisation with a pleasant Leadership Team and is culture and friendly endorsed by the managers.” collaborative people.” 9 officemax.co.nz
The year’s Wellness for all highlights: Our Tracksuit-Inc® wellness initiative grew from 327 employee participation in > Flu vaccines or vouchers were 2017 to 491 in 2018. provided to 354 employees in 2018, up from 332 in 2017. Tracksuit-Inc® gives our employees personalised access to holistic health > Employees were able to resources, activities and goals, including participate in and self-fund fitness, diet, sleep, social connections evening yoga classes on site. and/or team competitions. > All employees have Death in Service Benefit Insurance. > H ealth and Safety Representatives hold monthly meetings to evaluate progress on various initiatives. The Keeping our and Highly Commended awards for outstanding leadership in health, safety Partnering with St John New Zealand, we supported 120 managers as meetings ensure OfficeMax meets its legal obligations people safe and sustainability. they initiated conversations around and embeds a culture of mental health with their team. We also > Highly Commended HSS Representative safety, focusing on all aspects OfficeMax has a fully integrated provided advice so that managers – Corey Murphy from our Highbrook of health and wellbeing. Health and Safety management would know what to do if an employee Distribution Centre. system, working towards an needed help. > S ponsored participation > H SS Representative of the Year – accident-free, hazards-controlled, in Rotary Walk/Run for During our annual Health, Safety and physically and emotionally Jill de Lacey from our Hickory Place 28 entrants. Sustainability Week, we held lunchbox safe environment. Christchurch office. talks with experts from 0800 What’s Each site (19 in total) has a nominated In 2018, the HSS team focused on Up, the Barnardos helpline for young Health, Safety & Sustainability (HSS) reducing waste, and improving safety and people that OfficeMax sponsors, to Representative who leads OfficeMax’s staff wellness. help our employees talk with children safety and sustainability work about mental health issues. As part of its wellness initiative, the team programme. During our annual HSS developed a mental health programme, with Representative conference, we award the aim of creating a culture of acceptance our HSS Representative of the Year and helpfulness.
Managing risk better Legislation Registers OfficeMax has a fully integrated system – Compliance We’ve reduced to proactively identify hazards and risks in the number the workplace. OfficeMax has an active register for Environmental Legislation, Council Bylaws, of workplace Marilyn Vickery We conduct annual health monitoring, to Standards and Relationships with Other Acts Retail Manager monitor employees for exposure to health Register (Register of Legislation and Other incidents OfficeMax, Christchurch hazards. Employees can raise hazards Requirements Plus Compliance Procedures). through our ‘Find It Fix It’ form or when an The Health, Safety and Sustainability My job is to make every customer These are reviewed during each internal accident or incident has occurred. We also team made a concerted effort in 2018 happy who walks in our door. audit and annually to ensure compliance. conduct regular reviews and monitor critical to make trainings for employee’s fun, When it comes to sustainability, engaging and creative. As a result, hazards and environmental issues in our Health and Safety Hazards & Risk Register. Audits and there was a decline in reported we move forward really quickly. We continue to look at ways we Compliance workplace incidents in 2018. can improve. Site HSS We participate in external audits and We recorded two Lost Time Injuries Mine’s been a great experience – in 2018, resulting in 14 days of Internal audits have gained certifications for our systems employee absence. During 2018, everybody here is open and willing to discuss issues. We continue to to comply with legislative requirements. there were 23 accepted ACC claims All of our sites participate in an annual give good feedback internally and and five customer H&S incidents onsite Health, Safety and Sustainability OfficeMax is independently audited by the reduce our waste. involving products. audit conducted by the HSS Manager following organisations: The big thing for us in terms of & Coordinator. There were four formal complaints > A S/NZS 4801 Health and Safety sustainability is: what will that about driver behaviour involving The audit includes a gap analysis around product do to the environment? > M inistry for Primary Industry, to maintain company cars; this is a 50% reduction strengths, weaknesses, opportunities and Anything we can direct away from compliance with food safety requirements from 2017, showing that the new GPS areas of improvement. We also request waste to landfill is good. We are safety monitoring system is making a employee feedback. Sites must achieve 80 > E nvironmental Protection Authority positive difference. focused on these areas because percent to pass the requirement. (EPA), to maintain requirements under we have goals and targets, and we the Hazardous Substances and New In addition, employees complete an online or want to hit those targets. We have Organism Act. All distribution centres in-person training programme to review H&S moved away from plastic bags and are certificated for the management policies and legislation; the programmes are This section of OfficeMax’s Sustainability report that’s exciting. As a business we of dangerous goods, test location reviewed at least bi-annually. references GRI 401, GRI 401-2, GRI 403-1 and GRI 403-2. want to hit the targets that show certificates and stationery certificates we are doing our bit to improve > ISO14001 for its Environmental the environment. 11 Management System officemax.co.nz
Caring for our community The year 2018 saw growing national sentiment focused on child wellbeing. 0800 What’s Up It’s an issue we know well: for more than We are an official sponsor of 0800 What’s a decade, OfficeMax has played a part Up, a free phone counselling helpline and in improving the lives of young New web-chat service for kids to talk confidentially We really value our Zealanders who are ‘doing it tough’. to trained counsellors. relationship with In the last decade, OfficeMax’s support of Facilitated by Barnardos, 0800 What’s Up OfficeMax. Max e-Grants, in partnership with Barnardos, takes approximately 30,000 calls per year They make such a has improved the lives of thousands of large contribution via children who are going without the basics. from children as young as 5-years-old. The service has been helping young people Max e-Grants supporting Max e-Grants Barnardos is also the facilitator of the 0800 across New Zealand for the past 13 years. Max e-Grants provides grants of up to What’s Up helpline, which we fund. This $5,000 per child for basics such as and 0800 What’s Up that 0800 What’s Up is available 7 days a week, service gives kids a person to talk to when 365 days a year, from 12pm to 11pm (and uniforms, stationery and school trips. the lives of many children they have nowhere else to turn. 3pm to 10pm for the online chat service). The extra help also prevents boys and in need are changed girls from feeling isolated or left out Our School Rewards programme provides In 2016, OfficeMax developed a for the better every much needed funds for schools all over due to economic disadvantage. colour-me-in bag to raise awareness of single day. New Zealand and aligns directly to the In the year to December 2018, we 0800 What’s Up, with $5 of each sale being education channel of our business. It’s also donated to Barnardos to help run 0800 supported another 1209 Kiwi kids. JAN BROOME, BARNARDOS another way we can help Kiwi kids – and What’s Up. In total over eight years, we have their teachers – thrive. provided much needed support To date, OfficeMax sold more than 4,000 to more than 14,000 children and bags and raised more than $20,000. their families. OfficeMax has invested more than $872,000 in Max e-Grants as of December 2018, in partnership with 11 preferred suppliers.
Education Sponsorship & Business Partnerships School Rewards Since the programme began 12 years ago, OfficeMax has given $4.8 million OfficeMax also supports businesses and organisations that contribute to the education School Rewards enables parents who to schools. In 2018, more than $817,000 community, including the following: shop online or in-store for student supplies was donated and used by schools for > Association of Integrated Schools (Platinum Sponsor) to nominate a school to receive rewards. resources or improving facilities. Schools report that the rewards are often > Catholic Primary Principals Association and Catholic 65% of all parents surveyed* said that used for technology and new furniture, Education Office School Rewards was important when as well as sporting equipment and other choosing a retailer for their back to > Early Childhood Council (Business Partner) teaching resources. school purchases. > Independent Schools of NZ (Silver Sponsor) *OfficeMax Survey conducted February 2018 > N ational Association of Secondary Deputy This section of OfficeMax’s Sustainability report references GRI 201-1 and GRI 203-2. & Assistant Principals > NZ Area Schools > NZ Kindergarten Association > NZ Principals Federation (Bronze Business Partner) > N Z School Executive Officers Association (Gold Sponsor) > Rural and Teaching Principals > Secondary Principals Association of New Zealand > R egional Principals Associations (from Northland to Southland) > New Zealand Kindergarten Inc. > New Zealand Playcentre Federation > Te Rito Maioha / Early Childhood New Zealand 13 officemax.co.nz
Putting our customers first Our customers represent all facets Our business strategy reflects the changing This year, customer feedback identified of New Zealand society. From the needs of our customers. As office product packaging as a major focus area for us – education products we provide to volumes such as paper, envelopes and and one we are taking action to address. families and teachers, to café, packaging, traditional items decline in use, other Our customer-first culture is deeply I think having a sustainable technology, furniture and cleaning categories such as health and safety and embedded in what we do and how we supply chain is critical solutions for large businesses and cleaning are growing. We are concentrating provide our services. for OfficeMax because government departments, we support on expanding these growing categories New Zealanders with our products from and providing products and services that we know increasingly early childhood through education, work provide solutions for our customers as consumers are interested and even in aged care. their needs evolve. in these issues and will pry into things to find out information. CUSTOMER Our customers The increasing interest in sustainability is also an indication of public sentiment: Julie’s presentations and expertise were critical in OfficeMax winning a love sustainability our customers are responding to their number of major contracts in 2018 audiences, who are increasingly interested and we anticipate that sustainability While service and price continue in the life cycle of products and services will continue to play a role in future They look to see where to be important priorities for our they purchase. As proof of the change in RFP responses. customers, in 2018, OfficeMax sentiment across New Zealand, OfficeMax changes in society was increasingly asked during sold more paper bags in 2018 than previous are happening and presentations and RFP responses years as our customers moved away from adapt their business to describe its sustainability plastic in response to public sentiment. to take advantage of strategy and values. It is a welcome This trend also gives our sustainability trend that allows us to detail our those changes. manager, Julie Roberts, a platform to lead the sustainability credentials. discussion on how customers may improve SUPPLIER their own sustainability initiatives. Julie Roberts – OfficeMax Health, Safety and Sustainability Manager
Introducing our very Products and Building up STEAM own Customer offerings are on Schools are mandated to have a digital technologies Satisfaction Police the up and up! curriculum by 2020 and to assist schools to achieve this target, OfficeMax has launched a range of products Service and delivery is important to us. OfficeMax boosted its product lines to support teachers. We have partnered with leading OfficeMax has 17 stores from Whangarei educators and a digital learning specialist to work with by 6% in 2018, with the acquisition to Invercargill and offers free, next-day customers to develop workshops and products with a of Waiwhetu adding to our cleaning business delivery for orders over $50 excl. focus on STEAM (science, technology, engineering, arts category offer; in this category, GST to most of New Zealand. Our sales team and maths) learning for children. our sales are up by more than 30% – the largest business-to-business team in compared to 2017. To support this exciting new initiative, OfficeMax’s our industry, in New Zealand – is available Specialised Helpdesk is a phone, email and online We saw a decline in the number of orders to customers by phone or in person. service that enables customers to give feedback and to as customers consolidated their purchases In 2018, OfficeMax created a new team request advice on products. into fewer deliveries. that is focused on identifying reasons why customers may be dissatisfied Our education category continues to grow and innovate. As schools adopt new Recycling made easy with our service or products. The team will identify gaps in our processes and, teaching methods such as digital learning, for customers classroom needs change and we adapt through continuous improvement, will to teachers’ needs. OfficeMax provides OfficeMax partners with Croxley Recycling, who operate take action to improve outcomes for furniture and education products to a nationwide collection service through its Recycling our customers. support open learning environments; this Collection Box. When customers have filled the box with In 2018, we introduced a customer category has grown 10% on the prior year. empty toner and inkjet cartridges, Croxley Recycling self-service element to our online ordering will collect the box free-of-charge. OfficeMax also hosts system to enable easy and convenient TechCollect, featured earlier in this report. processing of products for return to us; previously returns were processed by phone through our Customer Contact Centre or in person; this option is already proving popular with customers. 15 officemax.co.nz
Great Customer Feedback OfficeMax uses the Net Promoter Score to continual improvement and place interest to our customers: in Quarter Three methodology to gain customer insight importance on all customer feedback of 2018, in response to the question ‘what is Our EcoMax to enable us to continually improve our we receive. the single biggest thing we should improve range sets the customer experience. NPS scores also help us identify trends upon,’ 11% of customers answered “eco packaging” – an increase from 5% in Quarter bar high Our NPS score in 2018 was 51 – this is considered to be a very high score for a around customer attitudes and sentiment. NPS feedback in 2018 shows us that Two. For government customers, the figure was 15% in Quarter Three. business in our sector. We are committed increasingly, packaging and plastics are of OfficeMax EcoMax products must have a minimum of 30% recycled content, and/or are made from recyclable plastics, and feature Understanding Carbon Emissions is just the start one or more environmental In 2015, OfficeMax introduced a Using the tool, customers can accurately accreditations. These products carboNZero Compatible Freight Carbon predict carbon monoxide emissions are highlighted in green in the Emissions Calculator for customers to associated with each order. OfficeMax catalogues. There were use to track freight carbon emissions 1728 products available in the from orders. EcoMax range in 2018. To ensure customers are well informed concerning products’ environmental and social footprints, OfficeMax investigates accreditations during the Managing carbon procurement phase and assigns labels, such as ‘Fair Trade’ or emissions just got easier ‘Totally Chlorine Free’ where Climate change is arguably the the greenhouse gases we generate. a product meets a standard. biggest issue of our time. Catalogues contain information In 2016, with the assistance of carbon on more than 13 social and As a large company, OfficeMax has a specialists Catalyst® Ltd, we embarked on environmental accreditations. role to play in limiting our contribution a journey of measuring, monitoring and to global warming through minimising mitigating the carbon we emit.
To reduce our carbon footprint, 2018 GHG Emissions we’re putting on smaller shoes BY SCOPE: 1,703 TONNES CO2e SCOPE 1 48% In 2018, our organisation’s carbon by one employee on a full-time basis; this Below we summarise the boundary of SCOPE 2 25% footprint was 1,703 tonnes CO2e. latter figure is referred to as our intensity this measurement, the emission sources carbon footprint. (i.e. the activities that contribute to the SCOPE 3 27% This equates to 2.29 tonnes CO2e Per Full footprint) and the hotspots. Time Equivalent (FTE), the hours worked BY SOURCE PETROL 33% SCOPE 1: LPG 12% DIRECT 48% REFRIGERANTS ELECTRICITY 3% 25% EMISSIONS SOURCES of OfficeMax’s Fuel combusted Natural LPG used by Refrigerant gas Footprint in 2018 by fleet vehicles Gas use forklifts losses to the AIR TRAVEL 12% (petrol & diesel) atmosphere WASTE 15% SCOPE 2: 27% INDIRECT of OfficeMax’s EMISSIONS SOURCES Emissions When we set our 2026 Lighting Copiers Machinery target, we aimed high As part of OfficeMax’s carbon SCOPE 3: 27% management plan, we have set ourselves a 2026 target of a 20% INDIRECT of OfficeMax’s reduction in GHG emissions per EMISSIONS SOURCES Carbon Footprint Air Travel Waste disposal at landfill FTE (against 2016 levels). OUR 2026 TARGET The head office and sales offices accounted for 52% of all carbon emissions. Retail stores accounted for 30% and distribution centres 18%. At time of publication, OfficeMax’s carbon footprint has not been formally verified. Plans are in place to have our carbon emissions independently audited in 2019. 20% reduction 17 officemax.co.nz
We’re using technology How we’re going So, how are we increased by 14.5%. The increase in absolute emissions is in part driven by the acquisition to reduce travel to get there: tracking after of Waiwhetu Distributors. for meetings. 1 Diverting organic waste 2 years? Against our baseline, after two years we EMPLOYEE have actually increased our intensity from landfill by recycling Good, but not good enough. To achieve emissions by 1.3% as the graph below all cardboard packaging a 20% reduction in intensity emissions by demonstrates. We understand that our and paper, composting 2026 (against 2016 base levels) an average long-term reduction strategy cannot be kitchen waste and reusing or annual reduction of 2% is needed. expected to achieve immediate, consistent, repurposing unwanted linear reductions all the time, but we will wooden pallet bases In 2017 we achieved a 2.7% reduction carefully monitor and review the direction in intensity emissions and a reduction in 2 Reducing travel for meetings our 2019 footprint to ensure we achieve our absolute emissions of 4.1%. where practical 10-year target. In 2018, however, intensity emissions 3 Staged and systematic This section of OfficeMax’s Sustainability report grew by 4.1%, and absolute emissions conversion of company cars references GRI 404-2. to electric vehicles 4 Improving energy efficiency in 2.40 stores, offices and distribution centres through a LED light 2.30 Tonnes CO2e per FTT replacement policy and the 2.7% 4.1% Overall increase 1.3% possible installation of solar 2.29 2.20 panels to selected distribution 2.26 centres and/or office buildings. 2.20 2.10 Our journey to lowering emissions is already underway, with waste and 2.00 energy audits in place at all of our 2016 2017 2018 sites (as described in this report). We are converting to virtual meetings whenever possible and will scope Percentage of Emissions our electric fleet conversion strategy Overall increase of 1.3% in 2019.
Keeping our supply chain ethical Ethical sourcing is core to who we are and what we do. In 2018, we continued We stand behind Our sourcing process leaves no stone unturned: to hold ourselves and our suppliers our OfficeMax 1 Our sourcing team starts with thorough accountable to maintain high standards in this important area. own-brand products research to determine if the supplier has a good reputation. In doing so, we I think they are a good OfficeMax’s range of 18,000 stocked More than 1,200 of our 18,000 products check existing accreditations such as corporate citizen – from products falls into 47 categories. are OfficeMax own-brand products. ISO 9001:2015 on quality, Business Social Compliance Initiative (BSCI), or a corporate citizen When a consumer picks up an OfficeMax For our own-brand OfficeMax products, pen or file folder, they can be assured the Forest Stewardship Council (FSC) perspective they want to we conduct stringent sustainability audits which were revised this year to be even these products have been through an certification. We also investigate whether be doing the right thing. extensive vetting process. the supplier already works with large, more focused on sustainability and product SUPPLIER recognised international brands who are lifecycle considerations. Each manufacturer is audited, assessed known to have high ethical standards. and scored on health and safety, housing, For other brands, we carefully choose to working hours, ethics, freedom of 2 Next, we initiate a factory audit carried only work with reputable organisations, association, environmental compliance out by our specialist auditors – usually who share our values both in New Zealand We give them the data and remuneration. SGS or UL, two of the world’s leading and internationally. inspection, factory audit, verification, around the content of our In 2018, OfficeMax updated its Request for testing and certification companies. products and they use Keeping our Proposal (RFP) terms for OfficeMax-branded Our suppliers are located all over the that information in their products. We now gather information on suppliers honest a potential product’s packaging, safety, world, so our auditors will visit factories OfficeMax catalogues. from cities in China to small towns in recyclability, disposal and end-of-life OfficeMax has in place formal contracts Brazil to assure compliance. SUPPLIER prospects, as well as its social impact which ensure our suppliers adhere before we make a decision on its suitability. 3 The auditors will ask between 25 and to stringent rules related to working We also request a copy of the supplier’s 50 employees of the factory up to conditions, employee rights, pay and environmental policy and evidence of 100 questions each about working environmental outputs. its commitments. conditions, health and safety, general HR, environmental practices and more. 19 officemax.co.nz
4 If the factory passes, and the auditors and OfficeMax in New Zealand are > Of those audited, two had Zero Tolerance-level violations and were Legal compliance satisfied with the report, we set removed from the supply chain (they matters, too the supplier up in our system and no longer produce or supply goods start trading. to OfficeMax). OfficeMax has an active directory of Environmental Legislation, Council Bylaws, 5 O ur auditors will return to the factory every year to ensure If it’s not our brand, Standards and Relationships with Other Acts Register (Register of Legislation and Other ongoing compliance. we make it our Requirements plus Compliance Procedures) Our OfficeMax procurement managers business to know that lists all the legalisation, bylaws, product also meet suppliers in person to ensure compliance (standards) that the business mutual commitment to ethical practices, needs to meet. More than 80% of OfficeMax products and work with factory management are supplied through third-party sourcing This is audited annually and reviewed for teams to correct any violations, large and distributing companies, rather than compliance of procedures. or small. being manufactured specifically for This section of OfficeMax’s Sustainability report Any Zero Tolerance violations, such as OfficeMax. OfficeMax chooses to work with references GRI 308-1 and GRI 308-2. employment of child labour, withholding manufacturers and global brands, such as passports, lack of fire escapes or attempted 3M, that are already known to have high bribery, leads to supply being cancelled ethical and environmental standards. immediately. Non-critical violations must be New Zealand-owned suppliers are required fixed within a prescribed time period. to complete a Global Self-Assessment Survey Manufacturers that are unable to meet (GSAS) and provide evidence to back up their our requirements, or show proof of claims. The GSAS is diligently reviewed prior improvement, will no longer be able to to being accepted by OfficeMax. supply to OfficeMax. > In the year 2018, OfficeMax affiliates conducted audits on 67 suppliers and 102 factories.
When it comes to > P rogramme for the Endorsement of Forest Certification (PEFC): PEFC sustainable paper, best practice standards promote we leave no sheet environmentally sound, socially just, and economically viable management unturned of forests globally. Our paper suppliers range from small mills As the largest importer and seller of cut- in developing countries to large operations sheet paper in New Zealand, we know how owned and run by European and/or vital it is that we play a lead role in ensuring local entities. our products are sustainably sourced. Our most trusted suppliers have impressed Every single sheet of our paper is us with their on-site educational facilities; environmentally certified; we simply clean water management practices; and only sell paper that meets stringent dedication to sustainable tree farming, environmental standards. including educating local populations on This means, no matter where in the world the value of native forests. our paper is supplied from, our customers OfficeMax branded paper – our biggest can be confident in buying from us. seller – is carbon neutral. Audited by the We accept two major certifications: Carbon Reduction Institute, we pay per-unit carbon emissions, and invest those charges > F orest Stewardship Council ® (FSC ®): in clean wind power generation. FSC ® certification guarantees that the product has been grown in a sustainably managed forest and that the supply chain is managed responsibly. 21 officemax.co.nz
Managing freight efficiently Our nationwide reach is one of our great strengths. Customers know that Reducing fuel LogbookMe is also used to monitor driver behaviour and safety: measured indicators OfficeMax account managers understand consumption include hard acceleration, hard braking, their regions and can get products to speeding and sudden deceleration. them quickly. OfficeMax aimed for a 3% reduction in We had GPS in the cars fuel consumption in 2016 and achieved Driving safely also reduces fuel consumption. This year saw the introduction of two If speed limits are exceeded, the driver and for the first four years. a 4.5% saving. Our goal for 2018 was a exciting initiatives: we introduced our first safety officer at OfficeMax are alerted by We changed the system further 1% reduction, which we achieved. four electric cars to the OfficeMax fleet, and email. The system also measures drivers’ and it gives better metrics we introduced a new GPS system to better Mobile sales staff and managers are hours to determine if they have driven for to ensure our drivers are understand and improve driver behaviour. educated to reduce idling, which consumes too long. The parameters are four hours an average of two litres of fuel an hour; driving safely. Both initiatives will contribute to a lower maximum trip time for a single journey; emissions profile for OfficeMax. reduce speed; and, improve transitions the minimum break after that period is EMPLOYEE between accelerating and braking. 15 minutes. Our customers have also indicated that they would like to see more sustainable void fill Our new GPS tool, LogbookMe, is now Since being implemented in June, the new and packaging solutions. We currently use installed in all of our fleet vehicles, allowing system has shown that while only a small plastic air pillows as void fill; while these us to improve health and safety. In percentage of drivers regularly exceed are made from recycled plastic and are emergencies or natural disasters, we are speed limits, that percentage has diminished recyclable, new technology is enabling us to now able to alert our fleet drivers directly over time. Driver behaviour can be improved plan to replace air pillows with even more and know where people are and ensure they and where appropriate, OfficeMax considers environmentally-preferable options in the are safe. The system has already proven driver improvement options such as a Driver near future. its worth during heavy snowstorms and Development programme for its employees. flooding incidents.
Sustainable Filling the void Going electric procurement Void fill is the packaging material that keeps In 2018, OfficeMax introduced four electric guidelines products safe from physical damage during vehicles that are engaged for short runs transportation and delivery. within the Auckland region. OfficeMax adheres to the SBC Freight The return of damaged stock and The Hyundai Ioniq cars charge Efficiency Guidelines, which seek to shift replacement/re-delivery of products freight choices from a lowest transportation at our Highbrook site each to customers produces additional cost model to mutually beneficial outcomes carbon emissions, uses more fuel and evening and are a popular choice linked to improved health and safety, with drivers and our broader EV packaging. As such, suitable void fill is driver wellbeing, better economic and an important element in OfficeMax’s stakeholder community. environmental performance, reduced environmental planning. emissions, and a more resilient sector. These four electric vehicles have been In 2016, OfficeMax changed its void fill used by OfficeMax as proof of concept. In 2018, during the renewal of a freight solution from recycled paper to AirPlus We are now looking into other options for contract, we worked with the transport Air Pillows, which are recyclable and electrification, including for warehouse providers to ensure their compliance with reduce the volume of waste produced. heavy machinery. the SBC Freight Efficiency Guidelines. We have noticed an increasing desire from Many of our vehicles are driven over long These guidelines enable us to lead our customers and employees to find a ranges unsuitable for electrification; where conversations and include sustainability new void fill solution that avoids any type of possible, we replaced and upgraded our as a core objective. plastic material. In 2019, we will be exploring petrol-powered vehicles to more fuel- options for void fill that makes use of the efficient models. latest technology in packaging solutions. This section of OfficeMax’s Sustainability report references GRI 302-1 and GRI 302-4. 23 officemax.co.nz
Waging a war on waste OfficeMax aims to be as waste efficient we’re proud to be the initiator of TechCollect, the world. At OfficeMax, we do not use as possible, while helping our customers New Zealand’s first free dedicated e-waste single-use plastic bags in our retail stores achieve the same goal. recycling service. This new service has and we are working towards packaging already proven popular with communities, solutions that will see a significant reduction New Zealanders produce an estimated 20kg our employees and with our customers. in our plastic packaging materials in 2019. We have goals and of tech waste per person each year, and much of that is being recycled incorrectly, Plastics are of increasing concern to targets when it comes to or not at all. Launched in November 2018, New Zealanders and to people around reducing waste, and we want to hit those targets. As a business we want to show that we are doing our bit to improve the TechCollect Our goal is to work with New Zealanders to divert thousands of kilograms of e-waste from landfill. TechCollect accepts and recycles the following items: environment. TechCollect offers drop-off recycling points for technology products at EMPLOYEE OfficeMax’s retail locations across New Zealand and is funded by technology brands including Dell, Epson, Canon, Microsoft, Toshiba and HP. Computer Monitors (CRT & Flat Screen) Already proving popular with Copiers Computers & Laptops communities, our employees and our customers, we will extend our e-waste recycling offer in 2019 with a broader commercial service offer, designed Scanners Printers to attract larger companies to utilise the service. Peripherals Cameras & Video Cameras Tablets
Toner and Inkjet We’re consuming Cartridges Recycling less energy Services OfficeMax’s energy consumption strategy guides employees to make easy changes CASE STUDY At OfficeMax, we are committed to playing our part in building a circular economy; that save energy. Brian Cossey our recycling partners will ensure at least In 2017, we set a target of a 15% reduction Health, Safety & Sustainability Rep 90% of commodities recovered are used on baseline against 2016 energy usage; OfficeMax Whangarei Retail Store as raw materials in the manufacture of new by the close of the year, consumption was products. Collected, chipped plastic is sent down by 12%. I am a retail sales assistant in Whangarei and an to local manufacturers to be used in items In 2018, we set a target of a 7% reduction OfficeMax Health, Safety & Sustainability Rep. such as electric fence insulators. and achieved this goal. I’m very proud of the fact that we as a company take This year, a number of energy-saving sustainability seriously. We put a lot of effort into Getting rid of initiatives were put in place at our head choosing what we sell, from sourcing to the disposing office in Highbrook, our biggest site. We of goods. plastic bags introduced sensors to automatically I’m proud that, in one month in 2018, we didn’t have turn off lights when rooms are empty, any waste to landfill – only recycling. We are doing Along with other large corporates, we we also installed data loggers to identify everything we can to reduce waste with the tools made a decision to remove single-use opportunities for savings. available to us. plastic bags from our retail stores. All OfficeMax sites receive a monthly report Over the counter, we get a lot of feedback around In 2018, we completed a full review of on energy efficiency progress. Each site plastic bags and moving to paper bags – which we have the plastic we use internally, i.e. in our team reviews this data and identifies ways to done. There has been some feedback both ways, but distribution and bagging processes. reduce energy consumption. most people are in support. In 2019, we anticipate further reduction of our plastic use through new packaging In Northland, we have no recycling for polystyrene – processes and technologies. but now through our internal programme I can now send back polystyrene to be made into useful goods, and it’s not filling up our landfill. 25 officemax.co.nz
Warehouse We have increased our cardboard recycling from more than 269 tonnes in 2017 to 301 tonnes in 2018. We use compactors and Waste Management high-density balers for efficient recycling of cardboard and plastic. In 2018, we trialled a waste compactor in our Blenheim Road Retail We’re proud of our waste reduction store to maximise recycling opportunities. accomplishments, which are driven by our enthusiastic and diligent employees. We provide regular training to ensure OfficeMax composts food waste from its Highbrook cafeteria, staff understand the recycling options which serves up to 200 people per day. In 2018 we diverted over available to them. 18 tonnes from landfill. Internally, OfficeMax conducts regular waste audits and works with Waste Management to measure waste generation. Our rubbish bins are only collected when they are During site clear-ups, we changed our process to ensure furniture, full, which reduces fuel consumption and metal and old promotional materials follow a recyclable pathway carbon emissions. rather than being sent to a landfill. In 2017, we exceeded our own targets and managed an 8.9% reduction in waste going to landfill. Unfortunately, our efforts were Our warehouse staff recycle bubble wrap, air pillows and plastics, not reflected in meeting our overall target including strapping. Both Distribution Centres are now using a of a 3% reduction in diversion to landfill recyclable shrink-wrap for delicate goods that is engineered to use in 2018. Whilst disappointed, we continue less wrap with the same stability and strength. to make improvements in other areas of waste reduction. When we have physically damaged stock that is still safe to For 2019, OfficeMax locations have a waste consume such as tea, coffee, and Milo, we send it to Ronald reduction target of an additional 1.5% MacDonald House and Mercy Hospice. We have supported these diversion to landfill. charities for more than seven years and are exploring other categories where they may benefit. This section of OfficeMax’s Sustainability report references GRI 306-2 and GRI 203-2.
OUR SUSTAINABILITY TIMELINE 2010 Moving forward We initiated a fleet car replacement every year programme and promoted video conferencing between NZ and Australia offices as well as locally to 2011 2018 We gained ISO 14001 accreditation, Introduced TechCollect, minimise fuel emissions; we reduced New Zealand’s first free e-waste which we still hold. 2001 trans-Tasman flights by two-thirds. recycling service for households and Our Power Savers programme small businesses. reduced energy consumption by 5% We formalised our Health, Safety & Environment work programme and landfill programmes reduced 2012 2017 landfill waste by 10%. and assigned representatives to OfficeMax was named one of the encourage these initiatives. World’s Most Ethical Companies 2009 by the Ethisphere Institute and our In the seven years to December 2017, Director of Merchandise, Richard 13,094 disadvantaged New Zealand 2004 Our Promise Tree Project was launched amongst three South Meares, was nominated into the executive committee of the children and their families have had their lives changed for the better. Thanks to OfficeMax’s Max e-Grants, We joined the Packaging Council Packaging Council of New Zealand Auckland schools, teaching Year 5 as a representative of Distribution & which provides a grant of up to of New Zealand, which promotes a students’ ways to cultivate a clean Sales for Wholesale. $5,000 per child for basics such as whole-of-life approach to balancing and green future. uniforms, stationery and school trips. environmental, health and safety impacts/outcomes and economics throughout a product’s lifecycle. 2009 2013 2016 OfficeMax joined the Sustainable 2005 Health, Safety & Sustainability Business Council (SBC), which is a OfficeMax introduced AirPlus Air Manager, Julie Roberts, won group of CEO-led companies that Pillows and a wider variety of cartons Employee of the Year in the have a leading role in creating a to increase packaging efficiency and We introduced our EcoMax Range Sustainability category at the sustainable future for business, effectiveness, and reduce waste. of nearly 800 products with annual Packaging Council Awards. society and the environment. We environmental credentials, including OfficeMax was presented the were named one of the World’s Most descriptions agreed upon by the 2015 Manukau Business Excellence Award Ethical Companies by the Ethisphere Ministry for the Environment. in both the Sustainability category Institute for the second year in a row. and the Health & Safety category. OfficeMax introduced a carboNZero 2007 Compatible Freight Carbon 2014 Emissions Calculator for customers We received an Enviro-Mark® NZ Gold certification for our three main 2008 Packaging Buyer, Bruce Campbell, to use to track freight carbon emissions from orders. operations. This was upgraded to We expanded our range of Fair was nominated into the executive Enviro-Mark® NZ Diamond across Trade products and launched Paper committee of the Packaging Council our entire organisation in 2009. Pig reusable cardboard recycling of New Zealand as a representative trays. For every tray purchased, we of Distribution & Sales for Wholesale. donate a percentage of the sales to 27 CCS Disability Action. officemax.co.nz
Let’s get it done 2018 Sustainability Report officemax.co.nz
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