Bunnings is the leading retailer of home improvement and outdoor living products in Australia and New Zealand and a major supplier to project builders, commercial tradespeople and the housing industry.
Sales revenue during the year was $8.5 billion. At year-end Bunnings employed more than 36,000 team members and operated a network of 223 large warehouse stores, 64 smaller format stores, 33 trade centres and three frame and truss centres.
We continue to focus on and improve our performance in four key areas across our business:
- Ensuring that we maintain good support internally and within the wider community to grow our community involvement in a sincere, localised and meaningful manner.
- Maintaining strong processes to ensure product sourcing continues to meet or exceed the requirements of local and global standards.
- Maintaining and where feasible increasing our current levels of water conservation, waste reduction and recycling (on a like-for-like site basis) and finding new ways to reduce our reliance on grid-sourced energy, with a view to achieving further cost-effective reductions in our overall carbon footprint.
- Maintaining a positive safety performance trend as we continue to grow our business, increase our store network and employ more team members.
We continued to increase our community involvement in a localised, sincere and meaningful manner, with our teams supporting over 54,000 local activities throughout the year. Actions included, support for national and local community organisations through a wide variety of activities including fundraising sausage sizzles, hands on DIY projects, local fundraising activities, community workshops and product contributions. More than 2,500 sustainability related activities were conducted, including more than 1,600 school visits and projects across Australia and New Zealand.
To read more about Bunnings' support of women’s refuges click here.
Our efforts to work collaboratively with a wide range of stakeholders on a number of sustainability and community awareness initiatives included working with Sustainability Victoria, the NSW Office of Environment and Heritage, and various local councils to provide free in-store information and advice for customers on sustainable living. This also included Bunnings Cockburn in Western Australia taking part in the TravelSmart Workplace Program which is a program supporting workplaces to enable and encourage their employees and clients to use travel alternatives.
In New Zealand, as part of the activities run to support the health and wellbeing of families, stores ran grow your own garden evenings for customers. The evenings focused on sustainable and healthy living, giving customers the skills to grow herbs and vegetables at home in simple and low cost ways.
Silverdale Warehouse in New Zealand engaged a local iwi group as part of the store development process. The team donated timber from trees that were removed from the site to assist with traditional carving training. We also engaged with a local iwi group as part of the New Lynn Warehouse development, commissioning art work that will be on display when the store opens in 2015.
We also worked with key authorities in a number of regions to help communities with emergency preparation and disaster response measures, as well as helping to provide asbestos awareness education in selected areas.
Our direct sourcing practices were further strengthened through an increased volume of third party factory audits as well as higher numbers of suppliers becoming members of the Supplier Ethical Data Exchange (SEDEX) program. This ongoing work helped to improve transparency in our supply chains in key areas of sensitivity.
We also sought independent advice from third party experts on our supply chain processes. Banarra reviewed current practices, facilitated buyer training and updated factory assessment tools. The Forest Trust completed a desktop-based tropical timber supply chain review of our Merbau supply sources and legality/due-diligence system.
Ongoing work on responsible timber procurement included active engagement with World Wild Fund for Nature (WWF) and Greenpeace, as well as continued liaison with the federal Department of Agriculture, Forestry and Fisheries regarding the implementation of the Illegal Logging Prohibition Act 2012.
We are confident that more than 99 per cent of Australian and New Zealand timber products are confirmed as originating from low risk sources including plantation, verified legal, or certified responsibly sourced forests. Within that, over 83 per cent of our total timber products are sourced from independently certified forests or sourced with demonstrated progress towards achieving independent certification, such as that provided by the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC).
In June 2014, we undertook a forest concession field trip with WWF to a supplier of Merbau timber in West Papua, Indonesia. The supplier is progressing towards achieving independent FSC certification, and if achieved will produce the first certified responsibly sourced Merbau timber in West Papua.
To read about Bunnings' ethical sourcing in West Papua, click here.
Waste reduction and packaging
With a continued focus on recycling we have maintained our waste to landfill intensity rate at 2.9 tonnes of landfill per $1 million dollars of revenue, compared to 2.8 tonnes in the previous year.
As part of our ongoing actions to reduce waste, we also communicated best practice examples of packaging efficiency to more than two dozen major suppliers to identify new areas of improvement for packaged products. In many instances, this work also included identifying transport efficiencies linked to improved packaging.
Our wider focus on waste reduction included a national recycling competition to drive in-store results, increased intranet resources for team members on how to identify waste diversion opportunities, and a timber pallet reuse program.
We remain committed to reducing our carbon footprint via a number of energy efficiency actions. The majority of our energy use is associated with lighting and for over a decade we have pursued a raft of lighting related energy efficiency measures. The latest of these measures is the opening of Sunbury Warehouse in June 2014, which is the first Bunnings Warehouse store to be fully-lit with innovative purpose-developed LED lighting.
During the year, we also engaged ClimateWorks to undertake a gap analysis of our carbon mitigation and consumer education practices, with a view to identifying potential new opportunities in these areas.
We continue to actively seek commercially viable micro-generation projects and will be rolling out a series of solar installations in the coming financial year.
Greenhouse gas emissions
274Tonnes CO2e: '000
This year there was a three per cent reduction in the number of injuries recorded and a 10 per cent reduction in the Total Recordable Injury Frequency Rate, which was a pleasing result given the continued growth of our business.
Our continuing focus on safety included targeted in-store awareness campaigns, the rollout of a new mental health booklet for leaders and a safety climate survey. To read more about our reduction in TRIFR, click here.