SUSTAINABILITY COMMITTEE - National Retail Association - MEETING MINUTES May 28 2019
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National Retail Association
SUSTAINABILITY
COMMITTEE
MEETING MINUTES
May 28 2019MINUTES
MEETING DETAILS
Date of meeting Tuesday 28 May 2019
Time 9:30am for 10am start. Concluding at 1pm.
Location Rest Superannuation
Level 31, 140 William Street, Melbourne VIC 3000
For questions please contact:
David Stout, National Retail Association 0409 926 066 d.stout@nra.net.au
ATTENDEES
• Paul Stephenson MYER
• Aude Berniere MYER
• Minette Anthonisz Noni B Group
• Rosita Van Vuuren Best and Less
• Ian Turner Best and Less
• Maria Hoertrich Kaufland
• Lok-Man Shu David Jones & Country Road Group
• Daniel Baker ALDI
• Stephanie Farrugia ALDI
• Aife O’Loughlin Salvos Stores
• Emma Mackenzie Bunnings Group
• Bridget Spiteri Bunnings Group
• Laura Westhorpe Scentre Group (Westfield)
• Sylvie Garner Dept of Environment & Science (QLD)
• Tess O’Brien Dept of Environment, Land, Water & Planning (VIC)
• Daniel Rojas Dept of Environment, Land, Water & Planning (VIC)
• Justin McFarlane ReThink Sustainability
• Rob Gell ReThink Sustainability
• David Lynch ReThink Sustainability
• Ken Gibson ReThink Sustainability
• David Stout National Retail Association
• Ebony Johnson National Retail Association
• Emma Jennings National Retail Association
National Retail Association
Sustainability Committee Meeting | 28 May 2019 Page 2 of 13APOLOGIES
• Kathryn Franklin Coles
• Paul Crossley Woolworths Group
• Chris Foley Wesfarmers
• Jeff Maguire Coca Cola Amatil
• Bal Thandi Reject Shop
• Brooke Summers Cotton Australia
• Joanne O’Connor DWER (WA)
MINUTES
Welcome David Stout
• Host Introduction – REST
• Role & Scope of Committee
• About members we want to represent your issues
• LinkedIn portal open for all committee members to join, anonymous questions can be asked
via David Stout
• A competitively neutral forum
• Outcomes will be based on agreement from the entire association/committee members
• Past meeting focused on direction
• A need to move forward on policy
• Other areas balance needed
Trend Update Rob Gell
Contemporary trend update – ReThink Sustainability
See presentation attachment 1
• Two parallel existential threats:
1. Recent Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services
(IPBES), report 1 million species on the brink of extinction
• No mention of this in the recent election
• What’s the role of retailers in this?
• Australia’s environmental record is one the worst on the planet
2. Carbon dioxide levels are at an 800,000 year high. Now at 415 ppm – levels never seen
before:
• “The last time humans experienced levels this high was ... never. Humans didn't exist.”
• ‘The Australian’ reports a new geological epoch has been agreed to by world scientists: The
Anthropocene – The Age of Man
• Humans now move more rocks etc. on the planets than natural phenomena
• Amazon – 7000 workers pushing Amazon to address climate change within the industry.
National Retail Association
Sustainability Committee Meeting | 28 May 2019 Page 3 of 13MINUTES
Walmart / Microsoft etc. have also been facing employee pushback. This movement is one of
the largest attempted efforts to tackle climate change inside a corporation. ISS and Glass
Lewis, two of the largest proxy advisers to institutional investors, came out in support of a
‘yes’ vote on the resolution.
• Victoria banning e-waste from landfill in July 2019 - stopping this waste from going on to
pollute ground water and using components which are deemed scarce.
• Mining of cobalt, lithium, vanadium etc. for the transformation to renewable energy offers
four times more mining jobs then coal mining; mining of metallurgical coal for the steel
needed to facilitate wind farms and large scale solar construction is ten times the value of
thermal coal.
• We need to do more and the opportunities are there
DELWP (Dept of Environment, Land, Water & Planning VIC)
• 120 e-waste grants given to councils to update transfer stations
• E-waste ban comes in July 2019
• Dedicated website will be set up to show the closest location for consumers
https://www.sustainability.vic.gov.au/Campaigns/eWaste
• Australia Post now offering recycling posts for used electronics
• Committee member comments:
• Are there awareness campaigns for consumers/tv campaigns/websites or info sent to
councils and including businesses? (Action Item)
• Scandinavia has been dismantling and reusing components of white good since the
1990’s. Has Victoria talked with the other state governments?
Topic focus – Sustainability in Textiles
• Intro - Australasian Circular Textile Association Camille Reed
Textiles & the circular economy – recycling / sustainable sourcing
The issue:
• Australia is the 2nd largest consumer of textiles per capita (second to USA) - stats from
Textile Beat 2017
• 30% of all online purchases are returned, a further 30% of that cannot be sold and end up in
landfill
• Uniforms with embroidered / branded logos cannot be re-used because of IP and miss-use
issues, therefore must be shredded and sent to landfill
Some examples of Aussies working on solutions:
• A pilot program in South Australia looking at cotton recycling, alternative options to re-spin
recycled fibres with virgin fibres
• Deakin Uni have trialed and tested separating cotton fibres to develop alternative products
and uses. For example a new prosthetic knee (published online last week).
• Truefit – Forever New. Better fit to size, reducing inventory (this is correct) √
• UAE planning new textile recycling facility - assisted by Japanese tech. Associated costs
between. $US 30-40 million to setup – this is privately funded
National Retail Association
Sustainability Committee Meeting | 28 May 2019 Page 4 of 13MINUTES
• A large majority of polyester garments do end up in landfill, whereas they could be used in
other streams and up-cycled
• Organic fibres such as linen, wool, hemp and cotton are biodegradable
Opportunities:
• We're planning to set up a national textile take-back scheme for brands and retailers, in
order to treat what's currently viewed as waste at a higher value and scale recyclability.
To find out more about the Australasian Circular Textile Association:
Camille Reed: camille@acta.global
Topic focus – Sustainability in Textiles Adrian Jones
• Textile recycling – BlockTexx
See presentation attachment 2
• BlockTexx mission is to divert textiles and clothing away from landfill and accelerate the
global textile recycling industry towards a sustainable future.
• Have developed process to separate polyester and cotton and other regenerated cellulose
mixes
• 75-80% of garments in the world contain polyester and cotton blends
• Our S.O.F.T ™ process unlocks the polyester from the cotton to produce pure polyester and
cellulose
• Polyester can be reused for garments as well as industrial molding, whilst cellulose can be
used in glues/paints all the way to being reused as a viscose fabric. No real limitation on what
the end product can be used for. Can be re-spun back into fibers or used in injection molding
and used within civil engineering.
• A world first process that is patent pending, and should be approved in the next month
• Funded privately via venture capitalists to date with a successful seed round now closed
• Possible sites for the plant are South East Queensland or New South Wales
• Company deals with all textile waste producers including commercial players such as
laundries, uniform suppliers and increasingly retailers and charities etc.
• We only charge the same as the gate fee for landfill, we do not ‘gouge’ pricing for disposal as
we make money on the recycled product.
• Quality of end product is high and both end products are tradable on the open market either
with Australia or to be exported
• There is a strong demand for cellulose - is being used in pharma and medical industry, also as
food thickener. There is a growing market in China for cellulose.
• The only waste product left from the process is water and 95% of that water is recycled.
• Estimate that 40,000 tonnes will be processed in the first year in the first facility
• We want to be engaging with more retailers as your consumers want to see this happening.
To find out more about BlockTexx: https://www.blocktexx.com/
Adrian Jones: adrian@blocktexx.com Mobile: 0423 825 485
National Retail Association
Sustainability Committee Meeting | 28 May 2019 Page 5 of 13MINUTES
Topic focus – Sustainability in Textiles Aife O’Loughlin
• Moving the Needle - Salvation Army
See presentation attachment 3
• Salvos Stores busy behind the scenes with textile waste with Moving the Needle program
• Goal of program is to increase textile diversion from landfill 20% by 2022.
• Council’s biggest contaminator is textiles
• Roll out to the public in Sept. where retailers encourage their customers to donate rather
than put textiles in landfill
• Building website with location maps for consumers
• Want to partner with brands, Government, shopping centres and other charity partners
• #Wearnext campaign out of New York - partnered with ASOS, Zara etc. but when they visited
in-store, staff knowledge of project was low.
• Need to take the customer on a journey with garments
• Re-use should be the first point of call with textiles
• Some UK retailers are offering $5-10 cashback for a return to purchase point with garments
• The charity sector currently export but we are all mindful of the role that we play within the
circular economy and would like to look to ways we can play an active role within the wider
network as technology comes to scale
• Collection systems:
• Moving the Needle provides design for in-store collection boxes.
• Assumption is that the best point of return is the retailer at which the product was
purchased, as this brings customer back in-store. However this can be problematic with
decentralized drop-off points, also online shopping.
• Traditional charity bins are problematic – hazards / maintenance etc. Salvos does not
use these anymore.
• Industry needs rework regarding convenience of donation as 80% of left goods are
decent goods
• Looking at innovations like a returns satchel for consumers
• Need to make donations as easy as possible.
• Export impact? No research done into this as all contracts are different. Salvos want to get
out of export.
To find out more about Moving the Needle or Salvos Stores:
Aife O’Loughlin (pronounced E-fa): Aife.O'loughlin@aus.salvationarmy.org
Edwina Morgan: Edwina.Morgan@aus.salvationarmy.org
National Retail Association
Sustainability Committee Meeting | 28 May 2019 Page 6 of 13Sustainability Tools
• ReThink Sustainability Index, U Capture David Lynch & Justin
McFarlane
See presentation attachment 4 and 5
UCapture
• UCapture is a fun, easy and free way for both consumers and businesses to combat climate
change
• It works by capturing affiliate marketing income earned through online e-commerce
purchases, and donating a portion of that to carbon offsets
• Set up via a Chrome or Firefox browser extension
• UCapture currently works on over 7500 ecommerce sites and growing
• The consumer registers for UCapture and the browser extension automatically donates to
approved carbon offset projects in the background
• UCapture also working on with a coupon injector
• Any company/retailer can join UCapture with support of ReThink Sustainability to help
reduce an organisation’s carbon footprint, irrespective of whether they support affiliate
marketing
• The platform is gamified with avatars and a leaderboard
• Does not track data and uses only an email address
• Money donated to certified carbon reduction projects that (eg via South Pole)
• UCapture works like a loyalty program, but is based on carbon donations
To find out more about UCapture:
Contact: David Lynch (david@rethinksustainability.com.au)
ReThink Sustainability Index
• The ReThink Sustainability Index is a powerful new way to measure sustainability mindset,
behaviours and performance, with the United Nations Sustainable Development Goals at the
very core
• How do you measure sustainability? How sustainable is your organisation?
• A recent survey suggested 68% of millennials bought sustainable products in the last 12
months
• For retailers there is also current war talent and there is a high correlation between
sustainable/ethical policies and practices with acquisition and retention of talent –
companies like Google, Unilever etc. are doing great things in the areas of sustainability.
• In Australia we have the likes of Visy (targeting to be the most sustainable packaging
company in the world) and Qantas ( targetingv75% reduction in landfill by 2021)
• Sustainable “Native” companies are emerging, companies that exist only to operate and
conduct their activities sustainably, not as an afterthought
• 40% of the worlds’ largest companies are already reporting in some capability against the UN
SDGs
• The ReThink Sustainability Index:
• In a nutshell, measures the sustainability of an organization and adoption of the UN
National Retail Association
Sustainability Committee Meeting | 28 May 2019 Page 7 of 13SDGs, with both quantitative and qualitative insights
• This program can help drive customer loyalty and increase employee engagement
• Gives companies an overall score at the end.
• Captures verbatim feedback from employees
• Can measure up to 17 areas of criteria or can be modified to suit focused goals
• In a 28 day assessment, you can obtain as baseline, then you can opt to go monthly /
quarterly etc. to measure the improvement
• Secure platform, can be setup to use only email address
• Takes minimal time to input data – approx. 1 minute / day whilst collecting data
• Can be setup to give insights as Organisation, Team and Individual/Employee level
• Schools model also under development
To find out more about the ReThink Sustainability Index:
Contact: David Lynch (david@rethinksustainability.com.au)
Topic focus – Shopping bags David Stout
• Sustainable Shopping Bags Code of Practice – NRA
Did not have time to discuss during meeting.
Post-meeting notes from David Stout:
The NRA is currently working with state governments, led by DES (QLD), to develop a National
Voluntary Code of Practice for Sustainable Shopping Bags. The aim of this Code is to provide a
nationally-consistent best practice guide, rather than limited prescription, to assist and incentivise
businesses to move towards more sustainable options over the next 3 years.
The NRA will be contacting key retailers over coming weeks. We would value retailers’ input and
involvement: please contact David Stout at d.stout@nra.net.au.
Roundtable – policy agenda
• Member discussion on pressing policy positions which affect your ability to deliver
commercially viable sustainability outcomes
On what issues/challenges Committee Members are facing re sustainability
DELWP • Government budget allocations/political appetite proving limiting factor
• The appetite is still there and shared by the Minister but short term
projects have been delayed
• Currently rolling out lightweight plastic shopping bag ban and thinking of
extending this to other items but at this stage it will take longer.
• In the short term looking to collaborate with community groups on single
use plastics with a soft phase out
National Retail Association
Sustainability Committee Meeting | 28 May 2019 Page 8 of 13• Motivation was initially waste recovery but now it is more of a consumer
behavior/circular economy motivation
• Need to influence behavior in regard to recycling
• Need most value add for materials collected
• A lot of plastics are ‘unnecessary’ and looking at where they are being used
Bunnings • Holistic infrastructure is the big issue, national consistency
• There is nothing in place with councils
• National Waste policy needed
• More info on biodegradable/compostable options
Salvation Army • Moving the Needle trying to tackle textile waste – need partners
• E-waste could be a challenge how will Victoria deal with it if the company is
a national chain?
Myer • Consistency across state policies needed.
• A list of what is recycling in Australia and value add items
• Labelling consistency
• Need infrastructure to bring recycled material back into market. Need to
make recycled materials cheaper than virgin otherwise behaviour won’t
change.
Aldi • Infrastructure is a longer term issue for Aldi. Australian customers want to
recycle but its finding a way to get that material back into the economy in a
cost effective way and also the fact that recycled materials are often more
expensive than virgin materials, creates a tipping point.
David Jones • Circular is a key word
• Policy / research needed into the benefits and this info needs to be shared
beyond government so retailers and consumers know the reasons and
outcomes.
• Need to see the impact to business to make informed decisions
• Government needs to better educate both the consumer and business
• There is misinformation out there
• Need to see government acting on people spreading misinformation/
greenwashing/ doing the wrong this.
ReThink • Keen to see how tools can get the message out such as the sustainability
Sustainability index
Best & Less • Need clear information on best practice solutions eg. packaging options.
• Plastic bag alternatives and terminologies are confusing and misinformation
eg. Compostable/ biodegradable etc.
• Transparency of the chain
• Circular economy is important
Noni B Group • Need to look at the effectiveness of measures – what are the tangible
outcomes of all these efforts.
National Retail Association
Sustainability Committee Meeting | 28 May 2019 Page 9 of 13• Changes to supply chains not significant
• Disconnect between environmental/ethical/sustainability
DES • Matrix needed looking at definitions around “compostability”
• Need to address the issue of how recycled products are held to a higher
standard than virgin products – discourages use.
• Soft plastics & microplastics & single-use plastics focus
• Wants momentum for change which won’t come until we disconnect
punishment and litter, with reward
Scentre Group • Waste separation attempts but has issues.
• Currently reviewing internal strategies
• Will have more content to update the group in future meetings
On the topic of Refunds & Returns
Aldi • Aldi says they are a significant part of their business. They urge suppliers to
return/resell etc. using reverse logistics.
• If the supplier can’t take the item back they have another company they
use.
• There is a need for infrastructure in Australia. At the moment some items
can be recycled in Australia and some is sent overseas and it becomes an
expensive exercise.
DES • Need more assembly locally if you built in all the costs of sending these
items overseas you’d probably be looking at the same/similar costs.
David Jones • Government need to offer incentives/reimbursements to deal with these
issues (returns etc.) on shore
Action Items ALL
• Charter and statements of intent
Not discussed. NRA to develop draft charter & distribute for feedback before next meeting
General Business
• Recent organisational successes and challenges
• Next meeting
Location and date of next meeting to be confirmed shortly – planned for October in Sydney.
National Retail Association
Sustainability Committee Meeting | 28 May 2019 Page 10 of 13ACTION LIST
TOPIC ACTION/S STATUS
VIC e-waste ban DELWP raised e-waste ban coming See below.
into effect in VIC on 1 July. DELWP to NRA following up for more
provide more information on information re retailer
legislation, communication considerations and
campaign, retailer solutions. engagement with DELWP/
Sustainability Victoria.
Recycling guidelines – Members to suggest sources, NRA to
Members raised confusion investigate.
over recycling guidelines eg.
what goes where and a
central hub of information
for retailers/consumers.
Code of practice for The NRA will be contacting key
Sustainable Shopping Bags retailers over coming weeks. We
would value retailers’ input and
involvement: please contact David
Stout at d.stout@nra.net.au.
Charter & statements of NRA to develop draft charter &
intent distribute for feedback before next
meeting.
Feedback Members wishing to share feedback
about the Committee and the most
recent meeting, please see
ONGOING FEEDBACK FORM HERE
Communication from DELWP re VIC e-waste ban:
• Gazetted information:
http://www.gazette.vic.gov.au/gazette/Gazettes2018/GG2018G026.pdf#page=41
• SV is responsible for informing retailers of the e-waste legislation. See campaign website here:
https://www.sustainability.vic.gov.au/Campaigns/eWaste
• Illegal dumping laws for businesses apply to e-waste dumping. Here you can find information
specific to businesses. And more general info here.
The NRA is currently working with DELWP to gain more clarity from Sustainability Victoria on the
consumer awareness campaign, and in particular, advice for businesses given the impact particularly
on small businesses which may not have the awareness, capacity or room to separate e-waste.
--- END OF MINUTES ---
National Retail Association
Sustainability Committee Meeting | 28 May 2019 Page 11 of 13ABOUT THE NRA
The National Retail Association (NRA) is Australia's most diverse and representative retail industry
organisation, servicing some 24,000 stores and outlets nationwide. We are a not-for-profit
organisation built on strong relationships with our members and non-members.
Being part of a strong and diverse industry association provides a range of benefits
for retailers and adds value to your existing public advocacy channels. The National Retail Association
works with members to develop industry-wide policy platforms or public positions on issues of
importance to the sector. This arm’s-length approach allows key retailers to have very significant
influence over public messaging, while maintaining some distance from the content. Having a third-
party association present a united stance on behalf of the industry allows our members to remain
one-step removed from public debates where their individual interests would be attacked or
compromised.
We exist to help retail and service sector businesses succeed and grow within an ever-changing
regulatory environment. Our services are delivered by highly trained and well-qualified in-house
experts with industry specific knowledge and experience.
The NRA has a track record of providing a bridge between our members and politicians or bureaucrats
– facilitating meetings and the exchange of ideas and information in an environment that would pose
difficulties if it involved an individual business. Again, in this way, we are able to add value to the work
done by your in-house experts.
ROLE / SCOPE OF THE COMMITTEE
Sustainability is a broad and vastly different proposition for the various channels of retail, however all
have a commitment to the community and social responsibility.
The National Retail Association (NRA) Sustainability Committee seeks minimise impact on the
environment, whilst maintaining reputation and meeting the current and future expectations of
customers.
The intention of NRA’s Sustainability Committee is to:
• bring together experts from across the retail industry, government and associated
stakeholders to continue the momentum of positive sustainability regulations;
• consider the impact of retail activities upon sustainability, the community and environment;
• consider the effectiveness of sustainability initiatives, such as policy and industry mechanisms;
• contribute expertise to ensure sustainability policy is commercially viable and delivers
sustainable outcomes; and
• provide a non-competitive forum for key industry and government stakeholders to network
and share insight.
National Retail Association
Sustainability Committee Meeting | 28 May 2019 Page 12 of 13COMPETITION This Committee is competitively neutral, and no advantage is sought by the information provided. The NRA seeks to obtain beneficial outcomes for participants, therefore it is important that you put forward current issues, so we can move strategy collectively. We ask that the material supplied is either publicly available or considered not of a confidential or sensitive nature. It is understood that the views of the committee participants may not form a true indication of strategy, only provide a platform for speakers to openly discuss their views. All members are reminded that sharing sensitive or competitive information regarding suppliers or providers, particularly how a member should deal or not deal with suppliers or providers or the terms on which they should enter such arrangements are very high risk and may be a breach of the Consumer and Competition Act. Members must ensure that information and communication is based on facts and there should be no advice or direction on how other members should act in respect of suppliers or providers. Members are advised to seek their own legal counsel when proposing to discuss pricing, bids/tenders, market share and supply of products/services. CHATHAM HOUSE RULES When a meeting, or part thereof, is held under the Chatham House Rule, participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed. FREQUENCY The Committee will meet three times a year and at such additional times as the Committee Chair deems it relevant. Where possible, Committee meetings will be convened at different sites and states. COMPOSITION The Committee will comprise a minimum of three members to assist with facilitation and advice on content. National Retail Association Sustainability Committee Meeting | 28 May 2019 Page 13 of 13
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