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Super Retail Group Signatory Name: Super Retail Group The question numbers in this report refer to the numbers in the report template. Not all questions are displayed in this report. Status: Complete The content in this APC Annual Report is hereby endorsed by the Chief Executive Officer, or equivalent officer of the organisation. Yes 5. Industry sector (please select 1 only): Brand Owner / Wholesaler / Retailer Packaging Manufacturer Waste Management Other - Commercial Organisation Community Group Industry Association Government Raw Material Supplier Other: 6. Industry type (please select 1 only): Food & Beverage Pharmaceutical / Personal Care / Medical Hardware Homewares Communications / Electronics Clothing / Footwear / Fashion Chemicals / Agriculture Fuel Large Retailer Tobacco Shipping Company Airline Other: 7. Please indicate your organisation's reporting period: Financial Year: 1 July 2014 – 30 June 2015 Calendar Year: 1 January 2015 – 31 December 2015 Goal 1: Design KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent. 9. Does your company have documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent? Yes No Provide details of policies and procedures We have embedded the Sustainable Packaging Guidelines into all relevant Procurement, Sourcing, Product Development and Environmental business activities and developed the following policies and procedures to date: 1. Policies - We currently have three policies in place: Ethical Sourcing Policy, Sustainable Procurement Policy and Environmental Policy. Our Ethical Sourcing Policy was developed in 2009, as most of our house branded products are sourced from overseas suppliers. The policy outlines the Group's environmental requirements, including the use of recycled materials and compliance with the APC. The Group's Sustainable Procurement Policy was developed in 2011 and applies to all team members, trade partners and contractors responsible for purchases on behalf of the Group. The purpose of this policy is to ensure that products and services purchased or contracted by our Group are ethically produced and environmental impact is minimised. Our Environmental Policy reinforces our commitment to minimize our impact on the environment. Those policies are reviewed yearly and updated as required. 2. Procedures - Packaging compliance is part of our new line process. Merchandising teams are required to comply with packaging specifications, which are signed off by our Packaging teams. Our International Operations team in China is required to review new trade partners capabilities to design the packaging and comply with the Group's packaging requirements. Quality and packaging compliance reviews are performed overseas, before shipment to Australia and at our Distribution Centres, before they are sent to stores. Packaging issues are addressed with our trade partners on a regular basis by our Packaging and Merchandising teams in China and Australia. 10. Of the types of packaging existing at the beginning of the reporting period, what percentage had been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting period? 96 % 11. Have any new types of packaging been introduced during the reporting period? Yes No 12. If yes, of the new types of packaging introduced during the reporting period, what percentage have been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting 99 % 13. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 1 Target: According to your Action Plan, what did you set Actual: What did you achieve? out to do? 1. Review our internal policies to ensure compliance Completed. with the SPG. Our Ethical Sourcing Policy and Environmental Policy have been reviewed during FY15, as part of our Environmental Management System (EMS) review. No changes were required. 2. Review our internal procedures to ensure compliance Completed. with the SPG – new and existing packaging. We have embedded the SPG in our business practices and developed internal processes and procedures to ensure compliance with APC requirements, including: • Communication of compliance requirements and expectations to team members through internal media and annual Sustainability Training. • A General Business Agreement which requires all trade partners to comply with our Ethical Sourcing Policy and allow access to trade partners’ facilities for auditing purposes. Audits are regularly performed by independent third party Auditors and our internal auditing team in China. • Development of information materials to trade partners (available in our corporate website). • NL sign off process - New packaging is assessed against the SPG as part of our new line process (including sample check, when products are sourced overseas). • Pre-shipment inspections before the goods are sent to Australia (products supplied by local Trade Partners are checked in our Distribution Centres). • Addressing non-conformances with Trade Partners for correction in the next shipment/order (local and overseas Trade Partners). • Packaging reviews are also conducted in stores to identify improvements opportunities, with all recommendations addressed with our Packaging and Merchandising teams and trade partners. 3. Continue to promote the SPG and sustainable Ongoing. packaging to our trade partners. We continue to promote the SPG and the use of sustainable packaging materials in our house branded products in a number of ways, including written communications to trade partners, face to face meetings during factory visits and specification materials (SRG Logistics, Packaging, Labelling and Barcoding Specifications, Trade Partner Information Guide and Recycling Logo Guidelines). A copy of the Sustainable Packaging Guidelines is available in our corporate website, in both English and Mandarim versions. Our International Operations team also promotes the use of sustainable packaging to our trade partners by awarding their performance via our Trade Partner Recognition Program. For more details, please refer to section 14 below. 4. Continue to work closely with trade partners to Ongoing. communicate requirements for changes to packaging All non-conformances and opportunities for (new and existing packaging). improvement identified in our DCs (as part of the packaging compliance process) and in stores (during packaging audits) have been referred to our trade partners during the reporting period. 5. Assess current Trading Terms and documents Completed. available to Trade Partners to ensure that APC Current Trading Terms and guidance documents requirements are clearly communicated. available to trade partners in our website have been assessed and considered appropriate. A new version of our Logistics, Packaging, Labelling and Barcoding Specifications is due to be released by our Logistics team in FY16. 6. Review existing packaging in stores and evaluate Completed. compliance with the SPG (all Australian brands). Six products have been identified as a result of the review and addressed with our trade partners. 7. Review guides and education materials available to Completed. Team Members in Merchandising and All guides and materials available in our intranet International Operations. (Basil) have been reviewed during FY15. The APC "Principles and strategies for sustainable packaging" document has also been added to our intranet (Sustainability section), which is available to all team members. 8. Require all team members in Merchandising and Work in progress. Packaging teams (all brands and International Our team worked closely with the APC during FY15 to Operations) to complete the Sustainable include the Sustainable Packaging toolkit into our Packaging toolkit available at the APC website. training platform (Campus) however the release of the training was delayed to FY16 due to system capabilities. Information sessions were held with the teams as an interim solution. 9. Integrate the Sustainable Packaging toolkit as an Work in progress induction requirement for all team members in Our Learning and Development team will have this Merchandising (all brands), International Operations action completed in FY16, once the Sustainable and Packaging departments. Packaging toolkit has been included into our training platform (Campus). 10. Continue to document and report changes to Completed - All changes made by our International packaging as part of our packaging compliance Operations (IOP) team in FY15 recorded and review. submitted to Group Sustainability: • 27 product lines have been reviewed and had the packaging improved, with an average packaging reduction of 28%. The highest packaging reduction recorded was 72% (SCA loading ramp alloy pair 400kg). • Our IOP team started a plastics reduction program which aims to reduce the amount of plastics used to package our products. We estimate that a total of 12,763.3 kg of plastic material will be saved per year based on the products reviewed since the program started in May 2015. 11. Continue to investigate any customer and team No investigations were required as a result of member feedback in relation to items of packaging customer feedback and team member feedback that appear to be contrary to the SPG. during FY15. 14. Describe any constraints or opportunities that affected performance under this KPI Constraints - Establishing an accurate percentage of existing packaging assessed against the SPG continues
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