Supplying, Servicing, Supporting, Sustaining - OFFICEMAX NEW ZEALAND - SUSTAINABILITY REPORT 2019
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
OFFICEMAX NEW ZEALAND Supplying, Servicing, Supporting, Sustaining. SUSTAINABILITY REPORT 2019
Contents
About this report3
About OfficeMax New Zealand3
Letter from our MD4
OfficeMax’s Value Chain6
Material issues7
How we’ve made a difference
in 20198
Addressing climate change9
Keeping our supply
chain ethical18
Putting our customers first23
We couldn’t do it without
our people28
Caring for our community34
Our sustainability timeline36
GRI content index37
2
officemax.co.nz
About this report About OfficeMax New Zealand
Welcome to OfficeMax New Zealand’s OfficeMax New Zealand Ltd. is owned by Platinum Equity, a US based private equity
third sustainability report, which seeks to firm with a global portfolio of companies across diverse industries.
communicate the economic, social and
OfficeMax New Zealand traces its roots back to 1871 with the establishment of Coulls
environmental impacts of its operations to
Somerville Wilkie, a printing and publishing company. Through various changes of ownership,
stakeholders.
mergers and acquisitions, the company honed its office and school supplies focus, and grew
This report covers the operations of its national network.
OfficeMax New Zealand Ltd., for the period
In New Zealand, OfficeMax operates from more than 16 locations offering distribution in
January 1, 2019 to December 31, 2019.
Auckland and Christchurch, retail from Whangarei to Invercargill, sales across the country
In terms of scope, the report focuses on the and shared service activities in Auckland and Christchurch. OfficeMax is a progressive
sales and distribution of imported products provider of office supplies, solutions and services, as well as workplace products and
to New Zealand but does not extend to the furniture; its product range extends to more than 24,000 products.
supply chain of that imported product. This
OfficeMax’s dedicated account managers and product specialists support businesses of all
is recognised as something that could and
sizes, plus schools and families throughout the country. Orders are taken online, by phone or
should be examined in the next 12 months.
email, or through a store visit. OfficeMax’s account team and courier partners provide highly
The organisational boundaries include the reliable, extensive rural and urban delivery.
importation of product to OfficeMax’s head
office in Highbrook.
This report has been prepared in
accordance with the GRI Standards: Core
option. A table of performance indicators
can be found on page 37.
3
officemax.co.nz
Letter from our MD
Kia ora and welcome This year I can report we’ve started working
toward completion of a warehouse
Mindful consumers have also told us the
number one wasteful packaging they’d like
extension in Auckland to provide us to see changed is the plastic pillows which
Last time we caught up, I
with significant capacity and storage we use to protect products from getting
was pleased to report we improvement as well as solar panels on damaged during delivery. In response,
had introduced TechCollect the roof which should provide 22.5% of the we’re innovating to deliver a new packaging
e-waste recycling, reduced fuel energy needs for our largest Distribution system which will remove plastic pillows
Centre in the country along with our and instead crimp boxes closed around
consumption by using GPS,
national office. the shape of the product inside, ensuring
gave back $817,000 through the content of each parcel doesn’t move
Another development I can announce is
School Rewards and eliminated around. In turn this will enable us to fit more
that customers have continued to let us
single-use plastic bags in our know they want the best in sustainability
parcels into each delivery van which will
retail stores. I promised we’d increase efficiency and reduce our carbon
certification for the paper we sell, and
footprint – this change will take place in
continue to pursue sustainable they’re interested in Forest Stewardship
2021. Meanwhile we’ll continue to recycle all
improvements in 2019, and I’m Council® (FSC®) and PEFC certification.
soft plastic pallet wrap and strapping.
At the time of reporting we had recently
proud to announce updates on
launched New Zealand’s first copy paper Our business continues to be focused on
those improvements here. range which has 100% recyclable wrappers the consolidation of demand as we extend
Sustainability, to us, isn’t where previously the coating applied to the range of products on offer to cover
just recycling, nor is it a This time last year, I wrote about how the wrappers, to protect the contents from the key items used in every business. This
one-off token gesture. It’s impressed I was that our staff are committed moisture ingress, had a plastic film applied enables us to consolidate deliveries for
to sustainability as management and which meant that the wrappers could not our customers so that there are reduced
a gradual and dedicated
consumers are. We’re off to a great start in be recycled (our research suggests that at separate delivery streams, reduced
ethos of improvement to our sustainability story, but there is always current sales levels this should divert over 4 administrative burden and more efficient
people, packaging and room for improvement as people remind us million ream wrappers a year from landfill 1
freight movements with an associated
performance. how we can stay fresh and innovative. across the country). reduction in carbon footprint.
1 Assumes copy paper wrap is recycled 100% of the time
4
officemax.co.nz
In terms of corporate social responsibility, To stay true to our sustainability stance, in Sustainability, to us, isn’t just recycling, nor is During the year our long-term health and
we continue our ninth year of working with 2019 we continued to use OfficeMax audits it a one-off token gesture. It’s a gradual and safety / sustainability manager left the
Barnardos, funding students through Max based on UL LLC’s Responsible Sourcing dedicated ethos of improvement to people, business after 19 years of service and we
e-Grants to enable them to have the basics Workplace Assessment (RSWA) to monitor packaging and performance. As Fred Rogers are taking the opportunity to assess our
they need and feel more complete in their and measure the compliance of our so simply and eloquently put it, “Often when current position and have employed an
school lives. Since 2011, we’ve donated over overseas suppliers, especially factories in you think you’re at the end of something, external sustainability consultant to help us
$924,000 via these grants, helping over China. UL visits the sites and runs through you’re at the beginning of something else.” plan strategically into the future. This will
14,000 Kiwi kids enjoy funding for school an extensive checklist. Ever vigilant, UL enable us to set meaningful targets for the
books, stationery, uniforms, equipment, identified some non-compliant health and material impacts of the business so that is
special tuition, excursions and camps. safety practices at one particular factory, something we look forward to sharing with
which was then asked to correct its fire you in next year’s report.
Meanwhile, we’ve recently chosen to work
doors or fail the audit. Another factory
with Altus Enterprises. Altus employs people For now, please enjoy a brand-new
was asked to improve the way employees’
with mental disabilities and aims to help sustainability report full of excellent
personal documentation was stored. We
them towards financial independence. Altus progress and some interesting new
cease buying our products from sources
provides contract manufacturing services initiatives.
who are non-compliant and if the issue
to business clients, providing – amongst
is not remedied quickly we permanently Regards
other things – eco-cleaning products with
delete the supplier from our providers.
packaging made from 100% recycled New
Zealand milk bottles. Altus’ Return to Sender
recycling programme provides a zero waste
solution, and their Will&Able range is the
only eco range of cleaning products in NZ Kevin Obern
using 100% recycled NZ milk bottles filled Managing Director
and packed by people with disabilities. The OfficeMax New Zealand
profit made from their sales goes directly
to creating more jobs for people with
disabilities.
5
officemax.co.nz
OfficeMax’s Value Chain
What we depend on What we do Value we create
1. Customer insights
Our people Direct relationships with over 30,000 Our customers
customers enable us to fully understand
Over 650 talented people give their skills and 8. Customer use We provide flexible product and service solutions,
their broad needs and develop
time in OfficeMax offices and warehouses across More than 160,000 customers use our enabling diverse workplaces across New Zealand.
comprehensive industry specific insights
New Zealand – increasingly working in more products to enable their workplace – at
and unique customer profiles.
flexible ways. home, at school or in the office. Our people
We focus on an inclusive, fair workplace and
Our suppliers Our sustainable product lines and provide our people with opportunities, enabling
Over 150 suppliers in 18 countries source over packaging recovery services enable our them to develop and grow their individual
24,000 products and provide critical services to customers’ own sustainability journey. capabilities through OfficeMax.
workplaces. 2. Innovative customer
solutions Our community
Our partners We’re helping thousands of Kiwi families and kids
We use these insights to think outside
Our relationships with the New Zealand the square, anticipate needs and develop who are ‘doing it tough’, through our community
government, customers, NGOs and community innovative product and service solutions 7. Distribution partnerships, grants and rewards programmes.
partners help us to continue to evolve and to so that our customers can focus on what Our products are freighted to our 52,000
increase our impact beyond our own doorstep. is most important to them.
Our environment
commercial customers, 2,300 schools and
110,000 consumers. From sourcing to end-of-life, we take action to
Our products provide environmental solutions through our
The products we source use large volumes of We optimise our freight planning to value chain, proactively addressing systemic issues
raw and recycled materials in their production, enable efficiency for our customers, our such as packaging, plastic, waste and climate
packaging and shipment to New Zealand. 95%* of business and the environment. change.
our product purchases are from suppliers based 3. Sourcing
in New Zealand. We source 13.6% of our product from Our economy
over 52 suppliers across 17 countries. Our We aim to contribute to growing New Zealand’s
Our financial resources sustainable supply chain practices support economy responsibly, by growing talent within our
Capital from our owner enables us to invest for the integration of environmental, social business, evolving with our customers, improving
6. Sales
the future. and governance practices. environmental outcomes, and delivering strong
We sell over 24,000 products directly financial performance.
Our tangible assets through our dedicated Account Managers
and online platforms.
We occupy 2 modern, semi-automated
Distribution Centre’s, with office accommodation
at multiple sites.
4. Logistics
Our intangible assets Products are shipped to our warehouses
in Auckland and Christchurch, where they
The strength of our culture, brand and reputation, 5. Marketing
are packed according to our customer
as a company that New Zealanders have entrusted Our products and services are
needs.
to enable their workplaces for over 150 years. marketed through officemax.co.nz and
We consider packaging type, weight myschool.co.nz.
* Calculated on NZ dollar value of 2019 OfficeMax
purchases from NZ based suppliers. and volume to enable more sustainable
freighting and disposal options for
packaging.
6
officemax.co.nz
Material issues
The business is set to undertake a identified in 2017 as being most relevant Based on this testing, we have expanded the topics
fulsome materiality process in 2020, to and important to the sustainability of the covered within each of the material issues:
shape its future sustainability strategy. OfficeMax business.
1 Waging a war on waste and Managing freight
Our key stakeholders are our customers, The process for developing the content for efficiently has been bundled into “Addressing climate
our people, our suppliers, our shareholders the 2019 Sustainability Report has involved change”
and the communities we operate in. We testing the existing materiality topics set • Understanding the impact of climate change
also interact with NGOs that administer against global and peer trends. • Operational efficiencies
sustainability programmes or movements
The purpose of this approach is to focus Keeping our supply chain ethical
2
that we choose to align with.
the tone and content of the six material • Sustainability certifications
The six topics outlined in this 2019 report areas of focus for OfficeMax, as opposed to • Progressing a sustainable supply chain
- Waging a war on waste; Managing freight changing or introducing new subject areas.
Putting our customers first
3
efficiently; Keeping our supply chain ethical;
Reference documents included: the • Data privacy and security
Putting our customers first; We couldn’t do
2019/20 World Economic Forum Global • Reputation and trust
it without our people; and Caring for our
Risks Report, GRI Materiality topics and peer
community - are those that stakeholders We couldn’t do this without our people
4
reviews of office products industry reports.
• We have explored new topics within this section
including diversity and inclusion, conduct and culture,
future of work and building capability
Caring for our community
5
• Focused on the alignment of community investments
to the core business purpose
Emerging topics identified as potentially being material will
be explored further as part of OfficeMax’s 2020 materiality
assessment which will involve stakeholder engagement.
7
officemax.co.nz
How we’ve made a
difference in 2019
> Developed a business case for the > Consolidation of elements of Croxley’s > Donated over $120,000 through Max
introduction of automated packaging business into OfficeMax – significant e-Grants in 2019, helping over 800 kiwi
machines to reduce the need for plastic reductions in the number of internal kids (working in partnership with 11
pillows in our freighted deliveries. freight transfers required. preferred suppliers).
> Started work on our major warehouse > Gave back more than $929,000 through
extension at Highbrook which will provide our School Rewards programme for the
an additional 7,350 sqm, taking the total 2019 back to school season, bringing our
Distribution Centre to 26,250 sqm. It total School Rewards giving to more than
Sustainability is meeting
will feature a solar array on the roof $5.8 million in the last thirteen years.
estimated to generate in the order of 374 the needs of the present
> Off the back of investment in our EV fleet,
MWh per annum which will reduce the without compromising
we have introduced EV re-charging for
environmental impact of our operations. the future staff at our Highbrook head office.
We expect annual electricity savings to
be close to $35,000 for the first year. The > Maintained a mental health programme
solar array will offset power usage at the as part of our broader wellness initiative.
> Maintained TechCollect, New Zealand’s
Highbrook site, predominately offsetting > For our own OfficeMax branded
first free dedicated e-waste recycling
consumption from lights, air conditioning products, we conducted social
service, hosted at OfficeMax locations
and mechanical equipment operating in compliance audits on our factories
across the country. TechCollect gives
the DC. overseas to ensure they meet our
households and small businesses a
recycling option for out-of-date and stringent ethical standards.
unused office technology products such
as computers, tablets, mice, keyboards
and more.
8
officemax.co.nz
Addressing climate change
Listening to our customers’ sustainability We take the public’s feedback seriously, Despite businesses - including OfficeMax -
concerns is important. Here’s why. so we listened closely as they told us the eradicating plastic shopping bags, 69% said
following: they are still highly concerned about the
In a November 2019 publicly available
build-up of plastic in the environment.
perception survey ‘In Good Company’1 “I don’t like the amount of plastic used in
shared at a Sustainable Business Council online orders.” The report found a broader awakening on
event, participants say they care about waste, with household shoppers becoming
“Most products are over packaged. Not
sustainability. The conclusions were that more astute, and consumers caring about
enough environmentally better options
sustainability is the second most important waste, pollution, recycling and plastic
are available.”
factor (behind quality) for New Zealanders build-up.
Sometimes there’s to consider when choosing a large retailer This corresponds with attitudes found in
Almost half, 48%, said they had deliberately
Colmar Brunton’s ‘Better Futures Report’2
packaging overkill to shop at. It also found that 78% of New
switched to some brands because those
Zealanders do active research to assess released February 2020, which surveyed
when it’s only a tiny 13-17-year olds for the first time. Climate
brands were more sustainable.
the sustainability of a large retailer prior to
item and it’s put into a purchasing. Furthermore, large retailers change, sustainability and waste were Also - good news for OfficeMax, which is
big box. were perceived by survey respondents as key concerns for New Zealanders. New a Sustainable Business Council member
doing less than retailers in other industries Zealanders (76%) felt businesses don’t - the report found companies that have
CUSTOMER to become more sustainable. do enough to reduce their environmental sustainability embedded in their strategy
impact, with a quarter saying businesses are starting to see their bottom line
should lead the way on climate change. improve.
1 https://www.perceptive.co.nz/hubfs/Resources_and_Articles/News_Resources/Reports/In%20Good%20Company%20Research%20Report.pdf
2 http://www.colmarbrunton.co.nz/latest-thinking/better-futures/
9
officemax.co.nz
We’re listening and innovating next year with
a solution to reduce plastic packaging
Plastics are of increasing concern to New Choosing suitable void fill is important to
Zealanders and to people around the world. us for OfficeMax’s Environmental Planning,
Reduce waste. I At OfficeMax, we do not use single-use so we can avoid damaged stock returning
plastic bags in our retail stores and we are to us. Until now, our boxed deliveries have
would like to see
working towards packaging solutions that come with too much ‘baggage’ in the form
packaging i.e. paper will see a significant reduction in our plastic of ‘void filler’ plastic pillows. These were
that has been re-used packaging materials. recyclable plastic and were the best we
/ re-purposed. We During the year we received more and more
could do at the time. However, these simply
are all responsible for make packages larger, and larger packages
criticism about plastic pillow void fillers.
necessitate more vehicle trips. Customers
reducing waste. “Packaging. You use too much, and it’s a lot have told us they don’t like plastic pillows, so
of plastic to dump.” we’re responding to that.
CUSTOMER
“Stop using plastic as a filler in the OfficeMax is currently preparing for a new
packages…” initiative that will be launched next year, to
“Amount of packaging – sometimes only one further reduce our use of plastic packaging.
small item and is packaged in a much larger We are moving away from hard plastic (e.g.
box with a lot of protective plastic…” glue stick holders), which are now being
diverted from landfill and recycled.
10
officemax.co.nzUnderstanding Managing carbon emissions just got easier
the impact of Climate change is arguably the biggest issue 3
Improving energy efficiency in offices,
climate change of our time. As a large company, OfficeMax distribution centres and stores
has a role to play in limiting our contribution through an LED light replacement
through operational to global warming through minimising the policy and the possible installation of
emissions greenhouse gases we generate. In 2016,
with the assistance of carbon specialists
solar panels for selected distribution
centres and/or office buildings. Our
As a business we are seeking to develop Catalyst Ltd, we embarked on a journey of journey to lowering emissions is
clarity on the physical and transitional risks measuring, monitoring and mitigating the already underway, with waste and
that climate change poses to OfficeMax carbon we emit. energy audits in place at all of our
and our value chain over the short, mid and sites (as described in this report).
How we’re going to get to our carbon
long term. emissions reduction target (20% 4
Reducing vehicle carbon emissions.
We are aware of the importance of reduction in GHG emissions per FTE by We’ll achieve this by converting to
climate risk and are committed to further 2026 against 2016 levels): virtual meetings whenever possible,
understanding the impact in due course. converting to a fleet of electric cars
1
Diverting organic waste from landfill (began in 2018, continued in 2019),
by recycling all cardboard packaging enabling staff to use an EV charging
Our 2026 Target and paper, composting kitchen waste station, and converting our gas
20%
and reusing or repurposing unwanted operated forklifts to electric engines.
wooden pallet bases.
REDUCTION 2
Reducing travel for meetings where
practical.
in GHG emissions
per FTE against
2016 levels
11
officemax.co.nzTechCollect 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:
Launched in November 2018,
we’re proud to be the initiator of
TechCollect, New Zealand’s first
free dedicated e-waste recycling
Personal and laptop Tablets, notebooks Mobiles Computer monitors and parts Batteries
service. This new service has computers and all cables and palmtops (e.g. internal hard drives and CD drives)
already proven popular with
communities, our employees
40,000
and with our customers.
TechCollect offers drop-off 35,000
Computer peripherals Cameras and video cameras Printers, faxes, scanners
recycling points for technology and accessories 30,000
and multi-functional devices
products at OfficeMax’s retail
25,000
locations across New Zealand.
TechCollect is funded by 20,000
technology brands including
Total kg for 2019
15,000
Dell, Epson, Canon, Microsoft, kg per month
Toshiba and HP. 10,000
5000 5000
3000
1000
0 0
Jan ‘19 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
In 2019 we extended TechCollect with a broader commercial service offer, designed to
attract larger companies to utilise the service.
In its first full year of operation we collected 2,439 kilograms of electronic waste at our retail
stores nationwide. This year OfficeMax diverted more than 37,174 kilograms nationwide.
12
officemax.co.nzWarehouse Waste At OfficeMax, we are committed to playing our part in building a circular
Management
economy; our recycling partners will ensure at least 90% of commodities
recovered are used as raw materials in the manufacture of new products.
We’re proud of our waste reduction
accomplishments, which are driven by our
enthusiastic and diligent employees. We In 2019, we achieved our target of 5% reduction in power, dropping our
provide regular training to ensure staff usage by 11%.
understand the recycling options available
to them.
Internally, OfficeMax conducts regular waste In 2019, we exceeded our targets by 19% and managed a 33.4 tonne
audits and works with Waste Management reduction in waste going to landfill. OfficeMax recycled 338 tonnes
to measure waste generation. Our rubbish of cardboard, 121 tonnes of paper, 30 tonnes of soft plastic and 208
bins are collected only when they are tonnes of recyclable items including; plastics, timber, metal, food waste,
full, which reduces fuel consumption and and polystyrene.
carbon emissions.
In 2019 OfficeMax, liaised with All Heart NZ to divert written off stock
from landfill, All Heart NZ provides these goods to families in need,
charities and low decile schools. In 2019 OfficeMax donated over 30
tonnes of goods.
OfficeMax composts food waste from its Highbrook cafeteria and Wiri
cafeteria, which serves up to 200 people per day. In 2019 we diverted
over 12 tonnes from landfill.
13
officemax.co.nzEnergy Consumption
During 2019 we prepared a business case
that was subsequently approved to install
a solar array on the roof of the warehouse
extension at our Highbrook site. This system
will generate in the order of 374 MWh of
electricity per annum which will power
lights, air conditioning and mechanical
equipment operating in the distribution
centre, all while shaving approximately
$35,000 off our electricity bill in year one.
OfficeMax’s energy consumption strategy
guides employees to make easy changes
that save energy.
This year, a number of energy-saving
initiatives were put in place at our head
Energy Savings
office in Highbrook, our biggest site. We
introduced sensors to automatically
turn off lights when rooms are empty,
we also installed data loggers to identify
$35K
opportunities for savings.
All OfficeMax sites receive a monthly report
on energy efficiency progress. Each site
team reviews this data and identifies ways
to reduce energy consumption.
14
officemax.co.nzManaging Freight Efficiently
We want to lead in office products supply Understanding and managing our
efficiency. This means the wider our product carbon emissions
When we set our 2026
offering, the more a customer can buy
As a large company, OfficeMax has a
from one place, meaning one delivery, one target, we aimed high
role to play in limiting our contribution to
courier, one invoice. It’s more cost effective As part of OfficeMax’s carbon
global warming through minimising the
and more sustainable. Still, we can’t forget management plan, we have set
greenhouse gases we generate.
that currently a lot of the product we sell ourselves a 2026 target of a 20%
comes from other places in the world and In 2016, with the assistance of carbon
reduction in GHG emissions per
has travelled a long way even before we specialists Catalyst® Ltd, we embarked on
FTE (against 2016 levels).
put it in a courier van. So, the impact we’re a journey of measuring, monitoring and
having from consolidation of demand on mitigating the carbon we emit. OUR 2026 TARGET
20%
the supply chain is just a start. Measured We had our emissions independently
locally, it’s a great start, though. audited in 2019 and will do so again
Carbon Emissions in 2020.
reduction
In 2015, OfficeMax introduced a
carboNZero Compatible Freight Carbon
Emissions Calculator for customers to
use to track freight carbon emissions
from orders. Using the tool, customers
can accurately predict carbon monoxide
emissions associated with each order.
15
officemax.co.nzOur 2026 target
So, how are we tracking? 2019 GHG Emissions
Against our baseline, after three years we BY SCOPE: 1,298 TONNES CO2e BY SOURCE
have decreased our intensity emissions by SCOPE 1:
PETROL 42%
20% meaning we have already hit our 2026
DIRECT 58% LPG 11%
target. Given this early success, we will be EMISSIONS SOURCES of OfficeMax’s
Fuel combusted Natural LPG used by Refrigerant gas
Footprint in 2019
by fleet vehicles Gas use forklifts losses to the NATURAL GAS 1%
reviewing our carbon management plan (petrol & diesel) atmosphere
REFRIGERANTS 4%
and reduction target this year to see how
24%
SCOPE 2: 24%
we can build on this great outcome. ELECTRICITY
INDIRECT of OfficeMax’s AIR TRAVEL 6%
In 2019, our organisation’s carbon footprint EMISSIONS SOURCES Emissions Lighting Copiers Machinery
was 1,298 tonnes CO2e. WASTE 12%
18%
SCOPE 3:
> This equates to 1.80 tonnes CO2e Per
INDIRECT The head office and sales offices
Full Time Equivalent (FTE), the hours of OfficeMax’s
EMISSIONS SOURCES Carbon Footprint Air Travel Waste disposal at landfill accounted for 42% of all carbon
worked by one employee on a full-time
emissions.
basis; this latter figure is referred to as
> The dramatic reduction can be attributed • The closure of retail stores in Auckland Retail stores accounted for 33%
our intensity carbon footprint.
to a mix of things: (Glenfield), Palmerston North and and distribution centres 25%.
In 2017 we achieved a 2.7% reduction Christchurch (Tuam Street)
• More accurate waste data (actual
in intensity emissions and a reduction in
weight provided by the service • The closure of Waiwhetu Christchurch
absolute emissions of 4.1%.
provider for the first time) (an acquisition).
In 2018, however, intensity emissions grew
• Company policy to eliminate all non- Direct emissions sources:
by 4.1% and absolute emissions increased
critical air travel
by 14.5%. 58% of OfficeMax’s Footprint in 2019 were
• A reduction in the emission scope 1 direct emissions such as fuel
In 2019 we saw a large reduction in both factor for electricity (as a result combustion on site, air conditioning leaks,
absolute emissions and intensity emissions. of more renewable energy in the fleet vehicles, 24% were scope 2 from
Intensity emissions were down 21% and electricity mix) purchased electricity and 18% were scope 3
absolute emissions were 24% lower.
such as business travel, waste and water.
16
officemax.co.nzIn 2018, OfficeMax introduced four electric Fleet and driver behaviour the minimum break after that period is 15
vehicles that are engaged for short trips minutes.
With almost 140 vehicles on the road at any
within the Auckland region. The Hyundai
given time we have a duty of care to ensure The GPS system has shown that only a
Ioniq cars charge at our Highbrook site
our employees are safe and use their small percentage of drivers ever exceed
each evening and are a popular choice
vehicles in an environmentally responsible speed limits and that percentage has
with drivers and our broader stakeholder
manner. diminished over time. Driver behaviour
community. This year the charging stations
can be improved and where appropriate,
were made available for all staff commuting Mobile sales staff and managers are
OfficeMax considers driver improvement
in an EV to work. educated to reduce idling, which consumes
options such as a Driver Development
an average of two litres of fuel an hour;
The electric vehicles have been used by programme for its employees.
reduce speed; and, improve transitions
OfficeMax as proof of concept. We are now
between accelerating and braking. Sustainable procurement guidelines
looking into other options for electrification.
EV
In the warehouse we have transitioned 10 Our GPS tool, LogbookMe, is now installed OfficeMax adheres to the Sustainable
forklifts from gas to electric. in all our fleet vehicles, allowing us to Business Council Freight Efficiency
improve health and safety. In emergencies Guidelines, which seek to shift freight
Indirect emissions sources from the
or natural disasters, we are now able to choices from a lowest transportation cost
generation of purchased electricity:
alert our fleet drivers directly and know model to mutually beneficial outcomes
24% of OfficeMax emissions in 2019 was where people are and ensure they are safe. linked to improved health and safety,
down to electricity used for lighting, copiers, driver wellbeing, better economic and
LogbookMe is also used to monitor driver
machinery and air conditioning. environmental performance, reduced
behaviour and safety: measured indicators
emissions, and a more resilient sector.
18% of OfficeMax’s Carbon Footprint in include hard acceleration, hard braking,
2019 was from air travel and waste disposal speeding and sudden deceleration. Driving These guidelines enable us to lead
at landfill. safely also reduces fuel consumption. If conversations and include sustainability as a
speed limits are exceeded, the driver and core objective with our transport providers.
> The head office and sales offices
safety officer at OfficeMax are alerted by
accounted for 42% of all carbon
email. The system also measures drivers’
emissions.
hours to determine if they have driven for
> Retail stores accounted for 33% and too long. The parameters are four hours
distribution centres 25%. maximum trip time for a single journey;
17
officemax.co.nzKeeping our supply chain ethical
Ethical sourcing is core to who we are our search data, we find that people > Government customers are tracking
and what we do. In 2019, we continued are looking to hold an environmental metrics, and looking for guidance, to
to hold ourselves and our suppliers position by choosing more sustainable, support them to make tangible changes
accountable to maintain high standards social and ethical products. We’re in the way government spending can
in this important area. responding by adding better information be used to source fit-for-purpose
to existing products, widening our business consumables as well as broader
Ethical sourcing was maintained throughout
EcoMax range of products, and adding outcomes that will benefit New Zealand.
the integration of Croxley during the first
new ranges (such as Will&Able). These ‘Broader Outcomes’ include the
half of the year. We transitioned 100%
reduction of waste, supporting jobs,
of Croxley suppliers and 100% of the > There is a growing trend towards
and helping grow the local economy.
global exports’ customers to OfficeMax sustainable procurement of stationery
OfficeMax is a ‘tier 1’ All-Of-Government
without compromising on our ethical supplies. This is evidenced by a
supply partner with more than 16% of
supply expectations. range of environmental and societal
our sales revenue related to central
topics featuring in tenders, RFPs,
We know our and in discussions we’re having with
and local government agencies, and
schools. Currently OfficeMax continues
customers want procurement professionals.
to work through multiple initiatives,
environmental directly with MBIE, to support the
New Zealand Government to deliver on
choices these ambitions.
We know many of our customers are
beginning to prioritise sustainable
procurement initiatives. More and more
customers are placing an emphasis on
sustainability and ethical sourcing.
> We’ve seen in customer searches
an increasing desire to make wiser
environmental/sustainable choices in
what they buy. When we interrogate
18
officemax.co.nzSustainability audits
to ensure we’re
ethically sourcing
OfficeMax’s range of 24,000 stocked
products fall into 140 categories.
For our own OfficeMax branded products,
we conduct annual social compliance audits
on our factories overseas to ensure they
meet our stringent ethical standards.
For other brands, we carefully choose to
only work with reputable organisations, who
share our values both in New Zealand and
internationally.
Supplier contracts Social compliance case study:
OfficeMax has in place formal contracts During a routine annual social compliance audit in October 2019 of a supplier’s factory, UL identified three
which ensure our suppliers adhere unsubstantiated claims during an employee’s interview. We found that an employee’s pay was withheld for over
to stringent rules related to working two months, which was in violation of OfficeMax Supplier Guiding Principles. The findings were shared with the
conditions, employee rights, pay and management of the supplier in Australia and South East Asia. The supplier conducted an internal investigation and
environmental outputs. made changes to their internal processes to address the issue within 7 weeks. The investigation and evidence of the
process changes were reviewed and accepted by UL and OfficeMax.
Our Business Partner Standards are publicly
available at officemax.co.nz/business- OfficeMax and our suppliers do not support unethical and unfair employment policy. Collaborating together, we
partner-standards and include Supplier rectified the issue and further identified a process gap in our supply chain. This has resulted in a fairer and more
Guiding Principles covering our standards ethical treatment to all employees producing our brands.
around conditions for the people employed
by our suppliers.
19
officemax.co.nzOfficeMax own-brand products
More than 1,200 of our 24,000 products
are OfficeMax own-brand products.
When a consumer picks up an OfficeMax
Our sourcing process:
pen or file folder, they can be assured
these products have been through an 1
Our sourcing team starts with thorough research to determine if
extensive vetting process. the supplier has a good reputation. In doing so, we check existing
accreditations such as ISO 9001:2015 on quality, Business Social
Each manufacturer is audited, assessed
Compliance Initiative (BSCI), or the Forest Stewardship Council®
and scored on health and safety, housing,
(FSC®) certification. We also investigate whether the supplier already
working hours, ethics, freedom of
works with large, recognised international brands who are known to
association, environmental compliance and
have high ethical standards.
remuneration.
2
Next, we initiate a factory audit carried out by our specialist auditors -
OfficeMax gathers information on a
usually SGS or UL, two of the world's leading inspection, factory audit,
potential product’s packaging, safety,
verification, testing and certification companies. Our suppliers are
recyclability, disposal and end-of-life
located all over the world, so our auditors will visit factories from cities
prospects, as well as its social impact before
in China to small towns in Brazil to assure compliance.
we decide on its suitability. We also request
a copy of the supplier’s environmental policy 3
The auditors will ask between 25 and 50 employees of the factory up
and evidence of its commitments. to 100 questions each about working conditions, health and safety,
general HR, environmental practices and more.
Our OfficeMax procurement managers also
meet suppliers in person to ensure mutual 4
If the factory passes, and the auditors and OfficeMax in New Zealand
commitment to ethical practices, and work are satisfied with the report, we set the supplier
with factory management teams to correct up in our system and start trading.
any violations, large or small. 5
Our auditors will return to the factory every year to ensure ongoing
compliance.
20
officemax.co.nzAny Zero Tolerance violations, such as Non-OfficeMax brands
employment of child labour, withholding
More than 95% of OfficeMax products
passports, lack of fire escapes or attempted
are supplied through local New Zealand
bribery, leads to supply being cancelled
businesses and distributors, rather than
immediately. Non-critical violations must be
being manufactured specifically for
fixed within a prescribed time period.
OfficeMax. OfficeMax chooses to work with
Manufacturers that are unable to meet manufacturers and global brands that are
our requirements, or show proof of already known to have high ethical and
improvement, will no longer be able to environmental standards.
supply to OfficeMax.
For OfficeMax branded products only a
> In the year 2019, OfficeMax affiliates Global Self-Assessment Survey (GSAS) is
conducted audits on 56 suppliers and mandated for supply chain partners with
95 factories. evidence required to back up their claims.
The GSAS is diligently reviewed prior to
> Of those audited, two had Zero
being accepted by OfficeMax.
Tolerance-level violations and were
removed from the supply chain (they Legal compliance
no longer produce or supply goods
OfficeMax has an active directory of
to OfficeMax).
Environmental Legislation, Council Bylaws,
Standards and Relationships with Other
Acts Register (Register of Legislation and
Other Requirements plus Compliance
Procedures) that lists all the legalisation,
bylaws, product compliance (standards) that
the business needs to meet. This is audited
annually and reviewed for compliance
of procedures.
21
officemax.co.nzOur paper, all sustainable
As a significant importer and seller environmentally sound, socially just, and
of cut-sheet paper in New Zealand, economically viable management of
we know how vital it is that we play a forests globally.
lead role in ensuring our products are
Our paper suppliers range from small mills
sustainably sourced.
in developing countries to large operations
Every single sheet of our paper is owned and run by European and/or local
environmentally certified; we simply only sell entities. Our most trusted suppliers have
paper that meets stringent environmental impressed us with their on-site educational
standards. facilities; clean water management
practices; and dedication to sustainable
This means, no matter where in the world
tree farming, including educating local
our paper is supplied from, our customers
populations on the value of native forests.
can be confident in buying from us.
OfficeMax branded paper - our biggest
We accept two major certifications:
seller - is carbon neutral. Audited by the
> Forest Stewardship Council® (FSC®): Carbon Reduction Institute, we pay per-unit
FSC® certification guarantees that the carbon emissions, and invest those charges
product has been grown in a sustainably in clean wind power generation.
managed forest and that the supply
We’re also introducing a fully recyclable
chain is managed responsibly. OfficeMax
wrap for each ream of paper and working
NZ Limited holds a Chain of Custody
through how we transition existing
(Certificate Code: SCS-COC-006720)
government agencies and other volume
and FSC® license (License Code:
users from the paper they were buying to
FSC-C147711).
this new paper, managing issues around
> Programme for the Endorsement the pricing of the paper. Ensuring there’s a
of Forest Certification (PEFC): PEFC strong take-up is a focus.
best practice standards promote
22
officemax.co.nzPutting our customers first
OfficeMax has 14 stores from Whangarei to NPS feedback in 2019 also told us packaging > 782,000 customers ordered through the
Invercargill and offers free, next-day delivery and plastics continue to be of interest to our website
for orders over $50 excl. GST to most of customers, especially our large commercial
> The percentage of total OfficeMax sales
New Zealand. Our sales team - the largest and government customers. In Quarter
for 2019 was almost 70% through the
business-to-business team in our industry, Four of 2019 feedback about sustainability
website, including email and fax.
in New Zealand - is available to customers had a -1 impact on the NPS score of large
by phone or in person. commercial and government customers, Added retail availability to the site
with 1% of respondents in that segment We systematically improve online ordering
While service and price continue to be
The criteria for keeping providing feedback on this topic. and frequently come up with ways to give
important priorities for our customers,
customers happy can OfficeMax is increasingly expected to have a Our customers are becoming increasingly the customer the best user experience (UX).
be surprisingly simple: sustainability strategy and value credentials interested in the lifecycle of products and Improved promotional ribbons help let the
a happy customer ready to explain to our customers. services they purchase. An example of the customer know what’s available, and which
By making sure our operating model change in sentiment: OfficeMax sold more retail stores might offer what the customer
is one whose order
aligns with customer needs, we’ll have a paper bags across NZ in 2019 than previous needs. Working on improved UX helps to
turns up in full on time, keep functionality and speed optimised so
competitive advantage moving forward. years as our customers moved away from
well-packaged and plastic in response to the ban of single-use our customers can order what they need
Customer Feedback
competitively priced, plastic shopping bags. quickly, efficiently and digitally.
OfficeMax uses the Net Promoter Score
with help and support Website sales - serving our customers on We’re also bolstering the Help function on
methodology to gain customer insight
available around the the net the website, creating the most relevant
to enable us to continually improve our
videos about key product and technical
purchase. customer experience. Our NPS scores in In 2019, we were focused on creating the
issues customers may encounter. The top
2019 was 51 - this is considered to be a most effective digital marketing experience
issues identified so far causing problems
very high score for a business in our sector, for customers. This paid off, with an 8% year
for online customers include things like
with 30 being the benchmark for a well- on year increase through website sales,
forgetting passwords. With better help on
performing business. Clearly, the care we and small business and casual sales up
offer, we’ve seen the top three reasons to
give customers creates mutual reward. around 17%.
call the helpline reduce by 39%.
23
officemax.co.nzOptimising the experience for our customer is one whose order turns up in full
largest customers on time, well-packaged and competitively
priced, with help and support available
Asking our largest customers for feedback
around the purchase.
at the right time and in the right context
gives us useful information. Research groups We work towards identifying pain points
have been undertaken with our largest and streamlining solutions for both internal
customers to understand what functionality OfficeMax staff and customers, especially
is most useful for them in the way they around product returns and credits,
want to manage their business relationship. handling of dangerous goods, and tracking
OfficeMax has consequently developed a deliveries.
suite of recommended improvements.
We don’t forget about detractors - in fact,
Learning from our most impressed and we have a dedicated team in OfficeMax’s
least satisfied customers contact centre to review detractor
customers and put in place proactive activity
Being a sustainable, progressive business
with that customer. This involves getting
means we grow from both negative and
in touch, following up with the account
positive feedback.
manager and doing everything possible to
Our sales team measure customers’ make sure the issue is successfully resolved.
satisfaction through their feedback and
Creating customer centricity
work out how to use the information to
make improvements. We report monthly In 2019 OfficeMax introduced a new
around the performance on the net account management structure which was
promoter score and at a high level around more customer-focused, better organised
the key issues influencing detractors, and and had vertically aligned portfolios enabling
the key factors around our most happy the sales team to better understand the
customers too. We set KPIs accordingly. needs of the industry their customers
are in. This account restructure helped to
The criteria for keeping customers happy
effectively retain customers, with postive
can be surprisingly simple: a happy
feedback recorded in customer surveys.
24
officemax.co.nzProducts and Offerings – Taking care of the
Expanding our Services incoming digital
While our largest product category remains office products, generation of
the biggest sales in terms of sales value in 2019 was actually in
customers
kitchen, not stationery. This was a first for OfficeMax, in a climate
in which we’re selling a million litres of milk alongside paper. Making Science and Tech
Over the years, customers of various sizes have asked us to provide products accessible
them with things we haven’t done before, and we always listen to It's estimated that 65% of children entering
demand. Consequently, we have had a significant increase in demand primary school today will ultimately end
for fruit and milk delivery services and cleaning. If we’re not the expert up working in completely new jobs that
in these fields, we outsource to other organisations and then send our > Our officemax.co.nz/steam website
don't exist yet1. To support this, STEAM is
customers a single bill. additionally offers videos with insights
an educational approach which integrates
and tips for how to understand, adopt
The value proposition to these customers is why don’t we consolidate learning across the disciplines of Science,
and build confidence with STEAM.
all your business management and supply needs for you? Technology, Engineering, Arts and
Mathematics via 'interdependent' learning The education category of our products
EcoMax range
units based on real world applications. continues to grow and we’re pleased to
OfficeMax EcoMax products must have a minimum of 30% recycled see strong take up of STEAM products.
> OfficeMax continues to enable STEAM
content, and/or are made from recyclable plastics, and feature one or We’ve been working towards supplying
learning for children by offering a
more environmental accreditations. These products are highlighted teacher resources (not just stationery) and
complete catalogue of products to
in green in the OfficeMax catalogues. There were 1937 products strengthening school business partnerships.
connect school children with digital
available in the EcoMax range in 2019.
technologies, offering products under We are delivering workshops with teachers
To ensure customers are well informed about a product’s electronics, robotics, coding, construction showcasing key elements of our extensive
environmental and social footprint, OfficeMax will investigate any and game making range and lesson plans.
accreditations during the procurement phase. They will then assign
labels, such as Fair Trade or Chlorine Free, to ensure a product meets
the accreditation standard. 1 Source: McLeod, Scott and Karl Fisch, “Shift
Happens”
25
officemax.co.nzCustomer data and privacy
With the increasing sophistication of Being open and honest about what Our sites use Google Analytics, a web first-party and third-party cookies together
hackers, computer viruses, and proliferation we use personally identifiable analytics service provided by Google, Inc. to inform, optimise, and serve advertising
of data mining, it is even more important information for (“Google”). Google uses cookies to help the based on visits to our websites. Customers
than ever that organisations can give their website analyse how users utilise the site. can prevent their data from being used
We utilise information from online
customers assurance that their data is safe The information generated by the cookie by Google Analytics by using the Opt-out
customers for the following purposes:
and secure. will be transmitted to and stored by Google Browser Add-on.
1
To verify a customer’s identity if the on servers. Google will use this information
OfficeMax takes customers’ data protection Some of our websites also utilise the
customer needs help with a forgotten for the purpose of evaluating a customer’s
seriously. It’s part of building trust and Custom Audience and Conversion
password or is having login problems use of the website, compiling reports on
loyalty with our customers to ensure our Tracking Pixel services of Facebook, Inc.
with one of our site services. website activity and internet usage. Google
customer base is sustainable into the (“Facebook”). This allows Facebook to collect
may also transfer this information to third
future. OfficeMax maintains a privacy 2
To process any transactions the or receive information from our websites
parties where required to do so by Law.
policy, letting customers know how their customer might make on our site. to provide measurement services and
information is received over the internet A number of Google Analytics Advertising target advertisements. The collected data
3
To help provide any other services
and stored. Personally identifiable Features, such as Remarketing and Interest- will remain anonymous; however, it may be
that the customer has requested.
information (“PII”) or aggregated information based Advertising, may also be used from used by Facebook for their own advertising
is collected in line with the guidelines of the 4
To offer the most relevant information time to time on our websites. OfficeMax and purposes in accordance with Facebook’s
NZ Privacy Act 1993 and The Office of the suitable to the customer’s interests. third-party vendors, including Google, use Data Use Policy.
Privacy Commissioner (privacy.org.nz).
5
For any marketing, promotional,
We honour customers’ right to access and publicity, direct marketing or market
correct information held about them under research that we might undertake.
the New Zealand Privacy Act of 1993 and we
6
For any other purposes for which the
encourage our customers to email us to let
customer has given permission.
us know their needs.
26
officemax.co.nzEthical reputation and trustworthiness Ethical business, social and environmental Our business strategy reflects the changing
practices are as important to OfficeMax needs of our customers. As office product
A trustworthy reputation is earned over
as our bottom line. Every year we assess volumes such as paper, envelopes and
time. It is the organisation’s social licence to
our current and potential impact on the traditional items decline in use, other
operate. We strive to grow our reputation
environment and concentrate on reducing categories such as health, safety and
by carefully evaluating what we promise and
that impact. We also aim to work with cleaning are growing. We are concentrating
then working hard to honour each promise,
our suppliers, employees and customers on expanding these growing categories
no matter how challenging.
to be partners in sustainability - and and providing products and services that
OfficeMax has had acknowledgement of customers tell us that they value us taking provide solutions for our customers as their
its ethical outlook, particularly in 2012 this seriously. needs evolve.
and 2013 when our US-based parent was
Our transparent business practices don't Again, customer feedback identified
named one of the World's Most Ethical
just look good on paper, they reduce risk, packaging as a major focus area for us -
Companies by the Ethisphere Institute
decrease overall environmental impact and one we are taking action to enhance.
in 2012. Locally, we have ISO 14001
and operational costs, create good public Our customer-first culture is deeply
certification.
relations and boost employee health, embedded in what we do and how we
Being a member of the Sustainable morale and productivity. provide our services.
Business Council allows OfficeMax to sit
Our customers represent all facets of We focus on particular segments and
alongside organisations who like us, have
New Zealand society. From the education spend a lot of time on our high value
fought hard to achieve a strong reputation.
products we provide to families and customers. We’re going to invest our time
The Sustainable Business Council requires teachers, to café, packaging, technology, in organisations where we believe that we
members to commit to the balanced pursuit safety, hygiene, furniture and cleaning can deliver value through all the things we
of economic growth, ecological integrity and solutions for large businesses and just talked about. Still, at the end of the
social progress within a business context. government departments, we support New day, our objective - to a reasonable extent
Zealanders with our products from early - is to communicate that we are open to
childhood through education, work and all people.
even in aged care.
27
officemax.co.nzYou can also read
