Signatory Name: Adairs Retail Group Pty Ltd
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Signatory Name: Adairs Retail Group Pty Ltd The question numbers in this report refer to the numbers in the report template. Not all questions are displayed in this report. Status: Completed The content in this APC Annual Report is hereby endorsed by the Chief Executive Officer, or equivalent officer of the organisation. Yes 5. Industry sector (please select 1 only): Brand Owner / Wholesaler / Retailer Packaging Manufacturer Waste Management Other - Commercial Organisation Community Group Industry Association Government Raw Material Supplier Other: 6. Industry type (please select 1 only): Food & Beverage Pharmaceutical / Personal Care / Medical Hardware Homewares Communications / Electronics Clothing / Footwear / Fashion Chemicals / Agriculture Fuel Large Retailer Tobacco Shipping Company Airline Other: 7. Please indicate your organisation's reporting period: Financial Year: 1 July 2012 – 30 June 2013 Calendar Year: 1 January 2013 – 31 December 2013
Goal 1: Design KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent. 8. Does your company have documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent? Yes No Provide details of policies and procedures Policy Number: QESG 003/02 - Adairs Environmental Policy - Outlines Adairs commitment to minimising our actions impact on the environment, including our business partners, suppliers and team by reduce our packaging waste footpint and by encouraging all to reduce, recycle and reuse packaging. Policy Number: QESG 002/01 - Adairs Environmental, Social, Ethical and Quality Management Systems Governance - Policy regarding our strategy to implement environmental, social and ethical standards for selection suppliers and business partners. It also outlines our commitment to the APC and desired outcomes as well as reporting timelines to the Board of Directors. Policy Number: QESG 004/01 - Adairs Suppliers’ Social, Ethical and Quality Management Systems Governance - Outlines the level of accreditation that Adairs required of its suppliers. 9. Of the types of packaging existing at the beginning of the reporting period, what percentage had been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting period? 47 % 10. Have any new types of packaging been introduced during the reporting period? Yes No 11. If yes, of the new types of packaging introduced during the reporting period, what percentage have been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting 100 % 12. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 1 Target: According to your Action Plan, what did you set Actual: What did you achieve? out to do? 1. Policy and procedures have been further updated. 1. Reporting at the corporate Board level is ongoing - a Board reports has assisted in team gaining further traction step higher than the required CEO level reporting. to adopt SPG and implement further changes to the Reporting to the board on APC initiatives is incorporated companies handling of packaging, documents and into the board half-yearly. hazardous materials. 2. Adairs have sourced new carton sizes for its online store. These cartons are used to send online orders to customers. This better fit of carton to product decreases the amount of waste in the customer’s waste stream. This also decreases the space the orders take up within transport trucks, making for more efficient use of transport space. 3. Ipads and smart phones have now been rolled out to Area and Regional managers and key team members. This ability to see reports in a wider format has led to more reports being viewed online instead of being printed 4. All our incoming containers are monitored now and we make sure that we do not have any plastic strapping over the cartons as per the policy implimented in last reporting season.
2. Communication to store team. Via a newsletter and an intranet system store team are notified and updated on any changes to recycling processes and policies and education/reminder communication can also be conducted. We are therefore able to get our message out to more team and increase awareness of the companies waste management requirements. 3. SPG review of Bedlinen and Cushions has been 1. Bedlinen packaging as been refined with one new class undertaken. of product now added that only has material packaging instead of thick PVC. Reducing the overall average units of waste by 0.2%. 2. Cushion review resulted in all loose fashion cushions now being packed in twos inside a carton with no plastic packaging used at all instead of each being individually wrapped in plastic 13. Describe any constraints or opportunities that affected performance under this KPI Limited constraints. Major changes have been made in previous reporting periods. Our ongoing focus on SPG means that more product has been packaged into fabric hence decreasing PVC waste. Communicating to store team in a broadcast format policy updates also means our message is reaching a wider audience. Goal 2: Recycling KPI 3: % signatories applying on-site recovery systems for used packaging. 14. Do you have on-site recovery systems for recycling used packaging? Yes at all facilities/ sites Yes at some, but not all facilities/ sites No 15. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 3 Target: According to your Action Plan, what did you set Actual: What did you achieve? out to do? 1. Maintain and improve recycle initiatives including 1 Allowing ongoing recycling program at warehouse and (i) Collection of glass and recyclable plastics office. (ii) Awareness program including posters (iii) Paper/cardboard recycling bins at each workstation 2. Maintaining awareness of the items that we can recycle (iv) Cardboard recycling at the end of each racking isle in within the warehouse and office by ongoing DC communication with team via newsletters and posters 3. Ensuring store team are using, where available, recycling facilities on site - either at stand alone stores or within shopping centres.
2. Reducing printing and by product waste of printing. 1. Monitored printer usage at stores and office resulting in focus being placed on users who are consuming more paper than average usage expectations. Technology team notify Managers where usage is above average and work with the Manager to identify probable cause and possible solutions. 2. Scan/swipe to print in head-office – has been maintained and has reduced the number of printed pages left behind on printers to zero. It is now no longer second nature to print every document and has become part of the Adairs culture. Double-sided printing is also now the norm within the office, and colour or single sided printing usage is questioned when seen. 3. Recycling of cartridges now occurs organised, taking the cartridge out of the waste stream and allowing it to be reused by the manufacturer. In the last 12 months it is estimated 120 larger cartridges have been sent back to the manufacturer for recycling from the office. 4. Where possible documents are no longer printed but sent to store in electronic format via the Intranet. 3. Reuse acceptable products samples and returned items. Adairs has expanded its previous policy of sending samples and returned items to the Salvation Army to include samples being able to be used by office team where not appropriate to send to Salvation Army - i.e. breakable homewares and decorative furniture items, instead of going to landfill can now be taken by office team. 16. Describe any constraints or opportunities that affected performance under this KPI Limited constrainsts. It is difficult in store where pace is limied to further expand our onsite recovery systems. Adairs is currently working with the shopping centre landlords to determine if cardboard recovery could be improved.
KPI 4: Signatories implement formal policy of buying packaging made from recycled products. 17. Does your company have a formal policy of buying packaging made from recycled packaging? Yes No Please explain why not Adairs acknowledges that it is important to move towards suppliers demonstrating use of recycled packaging. Adairs will continue to work with our suppliers over the next 12 months to recognise opportunities in this space over the next 12 months. Meanwhile Adairs continues to focus on reducing the use of packaging materials to try for a greater overall win than using recylced packaging. 18. Is this policy actively used? Yes No 19. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 4 Target: According to your Action Plan, what did you set Actual: What did you achieve? out to do? 1. Policy has been focused on overall reducing packaging 1. Adairs has investigated and taken the opportunity to materials. upgrade computers within stores. Old computers will be recycled by Lenovo instead of going to waste. It is estimated that this will save 80-100 CPUs from ending up as hard rubbish. 2. As well as Ipads being used by Regional and Area Manager, large format smart phones have also been rolled out replacing smaller screened phones, allowing team to read reports on devices instead of printing them. 20. Describe any constraints or opportunities that affected performance under this KPI Adairs recognises that there are many opportunities to reduce the packaging materials used in certain product categories by eliminating the need of using certain packaging; which is a bigger win than using recyclable materials. For year 2012 and 2013 we are focussing on reducing those packaging materials; as well as encouraging our suppliers to have good environment practices in manufacturing; and then in 2015 we will put in place policy to buy recyclable packaging, where possible, on the remaining packaging materials. This is included in our Business Action Plans.
Goal 3: Product Stewardship KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling. 21. Does your company have formal processes in place for collaborating with other companies or organisations on improved packaging designs and/or recycling which aims to reduce or eliminate waste? Yes No Provide details of policies and procedures (including names of policies/ procedures) Policy Number: QESG 003/02 - Adairs Environmental Policy - Outlines Adairs commitment to minimising our actions impact on the environment, including our business partners, suppliers and team by reduce our packaging waste footpint and by encouraging all to reduce, recycle and reuse packaging. 22. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 6 Target: According to your Action Plan, what did you set Actual: What did you achieve? out to do? 1. Work with suppliers’ and other business partners to 1.Adairs was able to eliminate the plastic packaging used improve packaging design and recyclability. in transporting the majority of fashion cushion ranges. Fashion cushions are now transported in recyclable cardboard boxes in units greater than one. Fashion cushions made up 5% of total units sold in 2013 making this line a significant contributor to the Adairs waste stream in store, where the majority of the packaging would of ended up. 2. Adairs has introduced a new class of product for teens, that is packaged in fabric material reusable drawstring bags, instead of thick PVC with metal studs. Reducing the number of PVC packaging in the general waste stream by 11,000+ units in 2013. 3. The use of bags instead of large cardboard boxes is still being rolled out within the business from our major partner South Australia Wool. Usage of reusagble bags to dispatch online orders will reduce the volume of waste customers need to dispose of. 4. Adairs top 15 suppliers are now OekoTex complient, there are a further 5 suppliers being worked with to reach this goal of being confirming as reaching international standards of reducing thier enviromental foot print. 23. Describe any constraints or opportunities that affected performance under this KPI There have been some fantastic opportunities here as packaging is being reviewed to reduce the packaging needed to transport the goods to the shop floor. With one new range now only coming in reusable drawstring bags instead of PVC/metal packaging and another having removed the need for plastic wrap we have had some significant wins.
KPI 7: % signatories showing other Product Stewardship outcomes. 24. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 7 Target: According to your Action Plan, what did you set Actual: What did you achieve? out to do? 1. Reduce Plastic bags used in Cushion packaging Adairs were further able to build on the solid result of the year prior to reduce plastic use in cushion transport to include imported cushions, where the cover is imported in bulk to a local third party and then filled, reducing transport volume and plastic use even further that before to cover nearly 200,000 units sold across the business over the reporting period. 2. Refine packaging to reduce plastic bag required by We were able to alter the packaging on pillows to include customer on pillow range. handles; reducing customer’s requirement for a plastic carry bag for the range. 3. Introduction of LED lighting into new stores and retro 1. All new Adairs stores are being fitted with LED energy fitting LEDs into some existing stores. saving lighting. Our larger homemaker stores stand to save 50,000Kwh annually and smaller stores 25,000Kwh. 2. Some stores will be retro fitted with LED lighting as they come up for refits or where the opportunity exists to retro fit the lighting. 4. Direct to Customer delivery service Customer orders can now be delivered directly to customers, reducing transport emissions generated from transporting goods between stores and from customer pick up. This removes one whole transport loop out of the process of fulfilling a customer order. No longer does the customer have to come to store and then back home, as goods are delivered direct from our Warehouse to them. 5. Review of carton sizes for online orders Adairs has undertaken a review of packaging used in the online area and has managed to better match product/orders to carton size, removeing in the process one type of carton altogether. This reduces the waste stream for customers and also allows for more efficient transport of orders, as less ‘air’ is being transported more orders can be packed into the same area. 6. Hazardous materials removed A full audit of stores cleaning products and chemicals has been conducted and a new purchasing policy has been put in place by our OH&S department to ensure that no hazardous chemicals come on site to any store. 7. Reuse of marketing posters Marketing posters are now more generic in their message and stores are required to keep these posters; they are re-used for other similar campaigns. This has enable Adairs to reduce the number of posters printed in the last reporting period by approximately 2,000 units.
25. Since the beginning of the reporting period, has your company had any other outcomes related to product stewardship? Yes No If yes, please give examples of other product stewardship outcomes Further to a whole class of product now being packaged in reusable drawstring bags another 14 other distinct product ranges have also had packaging designed to be drawstring style. 26. Describe any constraints or opportunities that affected performance under this KPI Expanding on last year’s comments on the submitted APC report regarding 'Additional opportunities may also be available from a scan of more lateral stakeholders -logistics, customers...' the creation of a delivery option to customers of their orders placed in store presented a further opportunity to reduce transport emissions. Further opportunity exists to develop a non-plastic alternative for customers to use for their purchases. KPI 8: Reductions in packaging items in the litter stream. 27. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 8 Target: According to your Action Plan, what did you set Actual: What did you achieve? out to do? 1. Visual review undertaken of Adairs warehouse and office 1. Whilst large bay and container doors are open it was site noted that smaller pieces of paper and light plastic were being blown outside.Warehouse now undertake a floor clean up once a week to remove this litter. 2. Overflow of ashtray at rear door of warehouse identified and larger ashtray installed. 2. Laundry detergent changed Adairs has changed to using its own brand of laundry wash in its onsite washing machine. The Adairs range of detergent is phosphate free. 28. Describe any constraints or opportunities that affected performance under this KPI Some major changes had occurred in the previous reporting period in relation how we communicate marketing events with our customers, resulting in some fantastic wins for reducing items likely to end up in the general litter stream. Opportunity exists for the participation in the recognised Business clean up day.
Your Experiences This section lets you share with us any achievements, good news stories and areas of difficulties in making progress against your plan and the Covenant goals and KPIs. 29. Key achievements or good news stories Moving all cushions to be not be packaged in any plastic once filled has greatly reduced the nubmer of plastic bags being used withing the business. The introduction of delivery of a customer’s special order direct to customers has removed a whole loop of transport from the process. Packaging review of cartons for the online fulfilment business resulted in better designed packaging for the product being dispatched. It also means less air being transported and overall less transport emissions should result. Also one whole carton size was removed. Reusing a number of marketing posters across more than the one campaign, reducing posters printed by approximately 2,000 units over the last 12 months. The top 15 suppliers are now OekoTex complient, there are a further 5 suppliers being worked with to reach this goal of being confirming as reaching international standards of reducing thier enviromental foot print. Moving to large format smart phones has increase teams ability to view reports online instead of printing them. 30. Areas of difficulties in making progress against your plan, Covenant goals or KPIs Changing roles of team members across departments and team members leaving has made it harder for us to get some traction on specific product changes. As team are not as familiar with the new product they are dealing with it takes them more time to understand and identify opportunities for change.
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