Australian Packaging Covenant Pacific Brands – Homewares, Flooring, Footwear and Outerwear Action Plan Period 2013-2017

Pacific Brands – Homewards, Outerwear and Footwear Action Plan 2013-2017

Australian Packaging Covenant Pacific Brands – Homewares, Flooring, Footwear and Outerwear Action plan Period 2013-2017

Final version submitted to the APC in March 2013

Table of contents

Executive summary ...... 3 Pacific Brands ...... 4 Sheridan ...... 4 Tontine ...... 4 Dunlop Flooring ...... 4 Footwear and Outerwear ...... 5 Action plan ...... 8 Key contacts ...... 19 Commitment ...... 19

Executive summary

Pacific Brands is an importer and marketer of many Australian icon ‘Everyday Essential’ brands. A publicly listed company, Pacific Brands employs approximately 5,000 people globally and has more than 200 sites within Australia operating through three major operating groups. Approximately 85% of the product is sourced offshore and 15% is manufactured locally. Pacific Brands total sales for FY12 amounted to more than $1.3 Billion.

Pacific Brands has an Environment Policy that includes four guiding principles: reduce, reuse, recycle and replace. The environment management system forms part of Pacific Brands integrated management system (IMS), which is certified to ISO14001.

In accordance with the definition as per the Australian Packaging Covenant (APC), Pacific Brands is a ‘Brands Owner’. Pacific Brands supports the NPC and its commitment to managing the environmental impact of consumer packaging in Australia through product stewardship.

For product safety, integrity, hygiene, marketing as well as satisfying customer requirements, a variety of packaging materials are used on Pacific Brands products. The main types of packaging material that are used across all products are ‘cardboard’ and ‘plastics’. Pacific Brands has implemented programs to ensure packaging material used within businesses are either reused or recycled, as directed by policy guidelines. Recycling opportunities are being explored across Pacific Brands businesses on an ongoing basis.

This document includes a brief description about Pacific Brands and its three major operating groups. Importantly, it outlines the APC key performance indicators (KPI’s) that are relevant to Pacific Brands as a Brand Owner and includes a table with specific actions that meets the APC requirements.

Pacific Brands

At Pacific Brands we touch the lives of everyday people. We are accessible. We are iconic. We are everyday!

Pacific Brands has come a long way from manufacturing Dunlop bicycle tyres in 1893. Today, Pacific Brands is famous for marketing iconic everyday brands our consumers love including Berlei, Bonds, Clarks, Dunlop, Everlast, Grosby, Hard Yakka, Holeproof, Hush Puppies, KingGee, Mooks, Mossimo, Razzamatazz, Sheridan, Slazenger, Tontine, and Volley.

With our headquarters in Melbourne, Pacific Brands has operations throughout Australia, New Zealand, United Kingdom, China and Indonesia. The passion of our 5,000 employees is the driving force behind our success.

Our participation in an extensive range of product categories, coupled with our strong and diversified customer network, underpin our position as a market leading supplier of everyday brands to the Australasian retail marketplace. We make in excess of 300,000 different products and sell over 200 million units per year. We leverage the benefits of our scale to increase efficiencies and generate innovation across the entire company. Ultimately, we seek to improve our speed to market and deliver quality products to our customers.

Pacific Brands is committed to creating products that meet the changing needs of consumers. We will innovate. We will excite. We will make more of the everyday.

Sheridan

At Sheridan we’re devoted to the bedroom, the home, to great design, quality and innovation that enhances experiences in this special place. Quality and craftsmanship are at the heart of everything we do. The tiniest detail, the fabric we use, the testing we complete, ensures that Sheridan products never disappoint, nothing is left to chance. Creating products that people will love is brought to life by the passion the Sheridan team have for crafting beautiful home-wares.

Today, in store and online, we have an amazing range of products. All customers will be guaranteed to find something that inspires and suits any style. Updated with the seasons, every six months, for Spring/Summer and Autumn/Winter, Sheridan brings to market its Easy Living, Mode Living and Deluxe Living designs to capture the latest in fashion and textile trends, complementing the variety of sheeting options we have available. Tontine

The Tontine Group is Australia's leading manufacturer and wholesaler of bedding accessories. With its manufacturing and national distribution centre located in Campbellfield, Victoria, it’s factory it one of the world’s most automated facilities for pillows and quilts. Tontine has a rich history of over 140 years and comprises of three iconic ‘everyday essential’ brands – Tontine and Dunlopillo in Australia, and Fairydown in New Zealand. Tontine has been making pillows since 1956, with the first synthetic filled pillow launched in 1963. In 2010, Tontine introduced a freshness date stamp on all Tontine synthetic pillows to encourage a fresh sleeping environment.

Dunlop Flooring

At Dunlop Flooring, we make your comfort our business. As Australia’s largest provider of quality foam underlay, we have over 40 years’ experience improving flooring performance. A Dunlop underlay adds luxury and longevity to carpets and timber floors. It absorbs the impact on your floor, which actually extends carpet life. In addition, it provides outstanding sound and heat insulation with the unique, added benefit of long-term allergy control thanks to the anti-microbial Ultra-Fresh.

Footwear

We are dedicated to making the men, women and children of Australia feel amazing from the feet up. With a diverse portfolio of brands including Clarks, Hush Puppies, Volley, Julius Marlow, Sachi and Grosby we have a shoe for every foot in Australia. With unrivalled expertise in crafting superior quality footwear, our experienced team ensure we make shoes that people love. Inspired by the catwalks of the world, we unite global fashion trends with the needs of our local consumers delivering an exciting collection of shoes each season for each brand.

In 2013 we’re focusing on working with our important wholesale customers and growing our network of retail and online stores so that we can best service the needs of our marketplace.

Outerwear

Brand Collective is one of Australia’s leading apparel design, distribution and retail businesses. With Mossimo, Superdry, Freshjive and Everlast, we hold an unrivalled portfolio of iconic street wear fashion brands.

Our consumers look to our brands for authentic casual fashion. They expect to experience and shop our brands across all channels particularly via eCommerce, while seeking greater value and quality from our products. Our task is to continuously innovate, not just with our products but in the way we interact with and excite our consumers.

From design to delivery our creations are brought to life by a team of vibrant, motivated and passionate people. At Brand Collective we understand the important connection between our people, our brands, our retail channels and our consumers.

Pacific Brands commitment to the environment

Environment policy Pacific Brands values the natural environment and acknowledges the benefits responsible environmental management delivers our employees, customers, suppliers, shareholders and the broader community. Across all locations and businesses, in the sourcing, manufacturing, packaging, handling and disposal of our products, we strive for continuous environmental improvement by application of our four guiding principles: reduce, reuse, recycle and replace.

Environment management systems Pacific Brands businesses in Australia have implemented an environment management system which is accredited to ISO14001. This accreditation provides for a foundation upon which Pacific Brands strives to continually improve its environmental performance and demonstrates our commitment to do so.

Training programs are developed and provided to employees on a regular basis. Key environment data related to energy and waste are measured and monitored. Consultation committees are established in Pacific brands businesses to discuss environment related issues and improvements.

Environment sustainability committee We have a national environment sustainability committee who meet at least six times a year (every eight weeks). This committee is tasked with:

. annual review of the environmental policy . reviewing environmental initiatives presented at a corporate level . providing site based updates regarding environmental initiatives . reviewing legislative requirements . waste management reviews

APC committee Our HFO group have an internal APC committee who meet at least four times a year. This committee is tasked with:

. data review/collation (for the APC annual report) by 31 March every year . reviewing purchasing and environmental policies . reviewing sustainable packaging and sustainable design strategies . contributing/developing our APC action plan . design (packaging optimisation) . reviewing recycling opportunities . demonstrating commitment to product stewardship (by operating group)

Waste management/recycling Pacific Brands has a waste minimisation and recycling partnership with SITA. Pacific Brands aims to achieve broader range of recycling opportunities, and provides better support for all Pacific brands employees in the form of training and promotional material with regard to recycling through this partnership. Pacific Brands businesses have always implemented recycling program, however this new partnership aims to improve on our recycling practices consistently across all our businesses.

Green Label Accreditation Dunlop Flooring’s range of carpet cushion was accredited by the Carpet and Rug Institute (CRI) in the USA under its green label program for indoor air quality. This was a fantastic achievement as the demand for environmentally sound products is growing and compliance with the program is a benchmark set by the Green Building Council of Australia.

Adherence to EU Packaging & Packaging Waste Directive 94/62/EC Where applicable Pacific Brands businesses export into Europe, we adhere to the European Union Directive 94/62/EC. This Directive aims to harmonise national measures in order to prevent or reduce the impact of packaging and packaging waste on the environment. It contains provisions on the prevention of packaging waste, on the re-use of packaging and on the recovery and recycling of packaging waste.

Accessing the Pacific Brands action plan and annual reports Our documentation is available to third parties via the Pacific Brands Internet page: www.pacificbrands.com.au.

Complaints handling and resolution At Pacific Brands we have a national Quality team that looks after product quality and our quality system. In addition, we have a complaints handling process that deals with customer complaints (this includes the option to capture packaging complaints).

Our commitment to the Australian Packaging Covenant As a business we are committed to reducing the environmental impacts of consumer packaging. We will achieve this by working with our three key operating groups to: . design packaging that is more resource efficient and more recyclable . increase the recovery and recycling of used packaging . take action to reduce the incidences and impact of litter/rubbish

Our action plan covers the following performance goals: . design (optimising packaging to use resources efficiently and reduce environmental impact without compromising product quality and safety) . recycling (efficiently collect and recycle packaging) . product stewardship (demonstrate commitment by all signatories)

Sustainable Packaging Guidelines (SPG) We aim to reduce packaging waste at the design stage by: . minimising materials used . optimising recyclability; and . reducing the potential for litter/rubbish

As a business we will:

. apply the SPG to all new packaging . commit to review all existing consumer packaging within a reasonable timeframe in accordance with the guidelines.

Action plan

1. Design - optimise packaging to achieve resource efficiency and reduce environmental impact

Tontine If Tontine expands to International markets they must be compliant to REACH Prior to any REACH requirements for existing KPI 1 – compliance expansion products and future initiatives prior to Implementing the SPGs for expansion design or to procurement Internationa of the l markets packaging. Review material used for swing tickets . Design Outerwear Work with supplier to move raw 100% of Dec 2013 & header cards using the SPG manager material used to Bio-degradable new . Production material packaging manager created needs to go through this process PB on line APC training rolled out to . Quality All HFO All APC stake holders have completed 100% On-going for Key stakeholders Manager businesses the online training module. New complete new . Marketing employees will be prompted to employees Manger complete the module as a part of the . Operations HR on boarding process

KPIs Actions Responsibility Business area Baseline data(base line data should Target(Targ Milestones(Mi this is contain current status) et should lestones will applicable to confirm be the actual how we will date we will achieve action this) this) Review Retail packaging per state . Retail Sheridan SA/ACT currently compliant to bio- 100% 2013-2014 Manager Outerwear degradable legislation. Pacific Brands (SA/ACT) . Marketing Footwear HFO operating group intend to roll out Manager this initiative in other AUS states and . Operations Tontine NT All Tontine Review Tontine to review retail packaging.. product to before Dec comply with 2013 bio degradable legislation Review business plan and . Head of All HFO Procedures to be updated to include All June 2013 documented policies and procedures design, businesses SPG requirements procedures (Sheridan) for evaluating and procuring Marketing, to be Dec 2013 ( packaging using the SPG. Operations revised All other . QA HFO Businesses) Distribution centres to implement the . Quality All HFO Packaging manual has been revised Sheridan June 2013 SPG for design or procurement of Manager businesses for Sheridan to include Sustainable manual local packaging. . Distribution Packaging Guidelines. finalized Manager Other HFO businesses already include and SPG published Ensure Micropac labels replace Silica . All brands Footwear All new and existing brands have 100% June 30th in gel sachets in all footwear boxes changed to Micropac labels to ensure complete 2011 and will safety compliance continue

review and report annually

2. Recycling – the efficient collection and recycling of packaging

KPIs Actions Responsibility Business area Baseline data Target Milestones this is applicable to Reduce the amount of packaging from . Retail Outerwear All Outerwear Concept, DFO & Flock 50% Reviewed supply of stock going to our retail operations hart stores will reduce unnecessary reduction in and reported stores to reduce landfill . Supply Chain packaging (eg. remove tissue & limited tissue annually (by plastic bags) paper and 30th June bags each year) On-site recovery systems for recycling . Site All HFO We have a national agreement with Reviewed used packaging. Managers, businesses SITA for the collection and recycling of Existing and reported . Store used packaging (packaging which systems annually. All Managers cannot be reused). maintained SITA reports . DC Managers and published . National reviewed monthly on procurement periodically PB intranet team Introduce a policy to buy packaging . Sheridan Sheridan PB corporate policy already exists Review and Dec 30th made from recycled materials Boutiques Tontine which covers reduce, reuse, recycle analysis 2013 offices and replace which will reflect in our with Supply KPI 3 – On- . Distribution design and approval process. National Chain site recovery centre HFO businesses to work with Supply Report data . Outerwear Chain re-buying packaging from to be systems for Outerwear concept recycled materials. retained recycling stores used packaging Return of packaging Develop a policy which encourages

consumers to return retail branded 2013-2014 store bags in order to reuse/ recycle Review existing in-house recycling . Site All HFO As of the 1st of January 2013, this Increase by Visibility on programs and identify opportunities for Managers businesses needs to be determined. Dec 2015. baseline data improvement by July 2013. Understand how effective our existing Increase in-house recycling program is and how recycling by we can improve it. Inventory of Dec 2015. recycling bins placed in each site.

KPIs Actions Responsibility Business area Baseline data Target Milestones this is applicable to . Distribution All HFO Review July 30th Investigate the cost of solar ,rainwater Manager businesses As of the 1st of January 2013, this and 2015 and wind catchment in order to . Quality needs to be determined. analysis maximise water and energy efficiency Manager with Supply Chain Report data to be retained

KPI 4 – Increase the proportion of packaging . Marketing Sheridan Identify /audit what proportion of July 2013 Visibility on Establish a made of recycled materials for our . Communicati Tontine packaging can be made with recycled baseline data formal products encouraging Product ons Manager materials. by July 2013. documented Managers and designers to consider . Product Reach the policy to buy recycled materials for new packaging. managers Develop a formal procedure which Dec 2013 15% target packaging . National encourages Product Managers/ by December made from procurement Purchasing to consider recycled 2017. recycled team materials. (Include in Current business materials. plan procedure)

3. Product Stewardship – demonstrated commitment to product stewardship

KPIs Actions Responsibility Business area Baseline data Target Milestones this is applicable to KPI 6 – Review the compliance program to . Quality Sheridan Not implemented yet All new December th Formal include SPG including recycling Manager Tontine suppliers to 30 2013 processes for processes when selecting a new . Operations comply with working with supplier. Team SPG others to improve Outerwear This has been implemented in both design and Footwear Outerwear and Footwear recycling of packaging.

KPIs Actions Responsibility Business area Baseline data Target Milestones this is applicable to Roll out online internal training to all . APC All HFO Not started yet all internal December stakeholders who make decisions representativ businesses stakeholder 2013 when creating and purchasing e s trained Then packaging - Marketing, Design, ongoing. Quality, Sourcing, Merchandisers in Asia and Retail staff KPI 7 – Via Fortnightly and monthly meetings . General All HFO Not started yet July 2013 Demonstrate continue efforts to grow employee Manager businesses Add APC to other product awareness and encourage positive each stewardship behaviours agenda in outcomes. order to discuss progress Continue to consolidate nonsalable . Quality All HFO Distribution centre extensively recycles Ongoing items in order to donate to non-profit Manager businesses towels / bedding to non-profit All non- from 2012 organisation within the community organisations, vet clinics and shelters saleable Reviewed items to be and reported donated annually

Identify SPI resin code and add symbol . Quality All HFO Not started yet Start by to all PVC bags used with PB Manager businesses Consult December SITA to 2013 advise symbol. Supply chain to notify suppliers in order to add the PVC bags

KPIs Actions Responsibility Business area Baseline data Target Milestones this is applicable to KPI 7 Establish PVC collection at Retail . Retail Sheridan 100% of Sheridan Boutiques to All 30th Demonstrate shops in order to reduce landfill Operations implement a recycling returns program Sheridan June2014 other product Boutiques stewardship Sheridan to work with department to have a outcomes. stores to optimise a recycling returns recycling process receptacle in store-.

Educate the consumer to recycle . Marketing Tontine 100% of LDPE pillow polybags are Future Reviewed packaging. Communication visible on already recyclable. packaging and reported pack. will annually continue to educate consumers

KPIs Actions Responsibility Business area Baseline data Target Milestones this is applicable to Educate the consumer of re-usability of . Marketing Tontine 10% of Packaging has been updated. 100% of all Dec 2014 PVC packaging for personal storage Slowly filtering through stores. Tontine use. Communication visible on pack. Remaining packaging to include product to information on personal storage. This comply with action must consider transitioning of PVC obsolete packaging packaging

and also include communica tion re personal storage

KPI 8 Participate in Business Clean-Up Day . Site All sites Currently not participating Participate Annually in Demonstrate Managers in Business March other product Clean-up stewardship Day and outcomes. report annually with an aim to increase the number of participants on an annual basis Review staff amenity areas onsite, . Site Sheridan Review Monthly workplace inspections Review Annually identify potential litter mitigation Managers Tontine to identify opportunities to reduce litter undertaken opportunities and address as . Shop mitigation at all appropriate Managers appropriate sites and opportunitie s addressed

Action plan – Dunlop Flooring

1. Design - optimise packaging to achieve resource efficiency and reduce environmental impact

KPIs Actions Responsibility Business Baseline data Target Milestones area this is applicable to Regularly review suitability of . Product Dunlop Dunlop Flooring – 100% 100% –ongoing for packaging to ensure underlay stays Development Flooring Currently all product follows the new dry and protected. Committee supplier manual. New suppliers will suppliers follow supply manual which stipulates KPI 1 – the correct thickness for plastic film. Implementin g the SPGs for design or PB on line APC training rolled out to . Product Dunlop All APC stake holders have completed 100% ongoing for procurement Key stake holders Development Flooring the online training module. New new of the Committee employees will be prompted to employees packaging. complete the module as a part of the HR on boarding process Review business plan and . Product Dunlop Procedures to be updated to include All Dec 2013 documented policies and procedures Development Flooring SPG requirements procedures for evaluating and procuring Committee to be packaging using the SPG. revised

2. Recycling – the efficient collection and recycling of packaging

KPIs Actions Responsibility Business Baseline data Target Milestones area this is applicable to Install bailers and bag systems at . Site Dunlop 10% our customers using bailers. 25% 50% Ongoing for locations around the country to enable Managers, Flooring using bags which are reusable hessian Supply new user friendly recycling . DC Managers bags. chain to customers review cost of providing

Bailer and Bag systems in all stores for cost. Maintain onsite recovery systems for . Site Manager Dunlop WE have a national agreement with Existing Reviewed recycling used packaging. Flooring SITA for the collection and recycling of systems and reported used packaging, packaging that cannot maintained annually. All and review SITA report KPI 3 – On- be reused. publicised site periodically recovery monthly on systems for PB intranet recycling Review existing in-house recycling . Site Dunlop Recycle by Dunlop tracks recycling 100 of ongoing for used programs and identify opportunities for Managers Flooring customers and volumes received customers new packaging improvement . Marketing reported on customers monthly who sign up to the program KPI 4 – Increase the proportion of packaging . Marketing Dunlop Identify /audit what proportion of July 2013 Visibility on Establish a made of recycled materials for our . Communicati Flooring packaging can be made with recycled baseline data formal products encouraging Product ons Manager materials. by July 2013. documented Managers and designers to consider . Product Reach the policy to recycled materials for new packaging. managers Develop a formal procedure which Dec 2013 15% target buy . National encourages Product Managers/ by December packaging procurement Purchasing to consider recycled 2017. made from team materials. recycled . materials.

3. Product Stewardship – demonstrated commitment to product stewardship

KPIs Actions Responsibility Business Baseline data Target Milestones area this is applicable to KPI 6– Review the compliance program to . Product Dunlop This has been implemented in Flooring All new Ongoing. Demonstrate include SPG including recycling Development Flooring suppliers to other product processes when selecting a new Committee comply with stewardship supplier. SPG outcomes.

KPI 7 Develop the Re-fibre Pad to be a . Marketing Dunlop Re-fibre Pad changed over to new Change July 2013 Demonstrate more environmental friendly product Flooring recycled textile product suppliers other product Via regular monthly meetings to . General Dunlop Not started yet. Add APC to July 2013 stewardship continue efforts to grow employee Manager Flooring each outcomes. awareness and encourage positive agenda to behaviours discuss process.

Improve customer awareness about . Marketing Dunlop Recycling program in place 50% of 75% Jan 2015 sustainability and waste management Flooring customers signed up and using To educate program retailers via Dunlop Flooring Sales Staff to engage and educate

Educate retailer/carpet installer on the . Marketing Dunlop 100% ongoing for reusability of the packaging. Flooring 65% of recycling customers currently new reuse packaging as bags for the customers underlay they have just pulled up. Dunlop Flooring then recycle the bags

. Distribution Dunlop Review and July 30th Investigate the cost of solar ,rainwater Manager As of the 1st of January 2013, this analysis with 2015 and wind catchment in order to . Quality needs to be determined. Supply Chain maximise water and energy efficiency Manager Report data to be retained

KPI 8 Participate in Business Clean-Up Day . DC Manager Dunlop Currently not participating Participate in Annually in Demonstrate Business March other product Clean-up stewardship Day and outcomes. report annually with an aim to increase the number of participants on an annual basis Review staff amenity areas onsite, . DC Manager Dunlop Review Monthly workplace Review Annually identify potential litter mitigation inspections to identify opportunities undertaken opportunities and address as to reduce litter mitigation at all appropriate appropriate sites and opportunities addressed

Key contacts

For further information regarding this APC Action Plan contact:

Sheridan Tontine Flooring Footwear and Outwear

Name Yvonne Carbone Voula Stamos Yvette Fitzpatrick Renae Franklin

Title Global Quality Manager Graphic Design Manager Snr Marketing Executive Sourcing and supply chain operations manager

Contact 18 Baker street Port Adelaide 144-168 National Boulevard, 86 Berkshire Road, Sunshine, 1096 Toorak road Hartwell Vic address SA 5012 Campbellfield VIC 3061 Vic 3132

Email [email protected] [email protected] [email protected] [email protected] address

Contact 0407200105 03 8359 4521 038311 6544 0398355275 number

Commitment

This action plan is signed on behalf of Pacific Brands by:

John Pollaers Chief Executive Officer Pacific Brands

Document description HFO APC Annual Plan 2013-2017

Document owner HFO APC Committee

Document approved by HFO APC Committee

Version number 1.0

Summary of changes New document submitted to external APC in February 2013

Revision date February 2013