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 $9.5 billion. At year-end Bunnings employed more than 38,000 team members and operated a network of 236 large warehouse stores, 65 smaller format stores, 33 trade centres and three frame and truss manufacturing 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; and
- Maintaining a positive safety performance trend as we continue to grow our business, increase our store network and employ more team members.
We are committed to supporting the communities in which we operate by contributing to local, regional and national causes, charities and organisations throughout Australia and New Zealand.
During the year our stores helped raise and contribute more than $35 million through over 62,000 community activities. A wide variety of national and local community organisations were supported through a number of activities including fundraising sausage sizzles, hands-on projects, local fundraising initiatives and product contributions.
More than 2,800 sustainability related activities were conducted, including more than 1,900 school visits and projects across Australia and New Zealand as part of our Schools Sustainability Program.
We continue to work closely with many major not-for-profit groups including the Australian Red Cross, RSL, The Salvation Army, Keep New Zealand Beautiful, Rotary, Lions Australia and Scouts Australia as well as emergency services and local charities and causes.
Our support of the Australian Red Cross and New Zealand Red Cross Centenary celebrations with local communities was a key highlight.
62,000 community activities
Throughout the year, team members worked collaboratively with a wide range of stakeholders on a number of local awareness initiatives. This included working closely with local authorities to assist communities in high risk areas with emergency preparation and disaster response measures.
Our stores in NSW supported the NSW Rural Fire Service’s (RFS) Get Fire Ready Weekend, assisting RFS volunteers to engage with residents on bushfire preparedness leading into bushfire season. Victorian stores also supported the Victorian Government’s Powerline Bushfire Safety Program, while
stores in Queensland supported the Queensland Government’s Get Ready Campaign to educate residents on disaster preparation.
South Australian and Tasmanian stores supported asbestos awareness education campaigns throughout the year by providing information to customers on safe asbestos removal. In addition to this, the Asbestos Diseases Research Institute’s ‘Betty the Asbestos Education House’ was hosted at several regional stores in Victoria and New South Wales during the official Asbestos Awareness Month in November 2014.
During the year we continued to work closely with our suppliers to strengthen sourcing practices. A further 152 eligible suppliers became members of the Supplier Ethical Data Exchange (SEDEX) program, taking participation in the program to more than 74 per cent.
Our focus on responsible timber procurement included independent assessments of our timber imports due diligence processes by the Federal Department of Agriculture, Fisheries and Forestry (DAFF) and the World Wide Fund for Nature Australia (WWF).
We also continued a high level of engagement with respect to illegal logging and deforestation risk and worked
collaboratively with DAFF and environmental groups such as Greenpeace and WWF to inform our policy and maintain an industry-leading position.
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, more than 82 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).
Waste reduction and packaging
With a continued focus on recycling we have maintained our waste to landfill intensity rate at 3.0 tonnes of landfill per $1 million dollars of revenue, compared to 2.9 tonnes in the previous year.
During the financial year we continued our national program to reuse and recycle plain timber pallets, utilising the backload capacity of vehicles. The 162 participating stores reused over 77,000 timber pallets, diverting more than 1,800 tonnes from landfill.
More specific highlights during the year included Queensland stores commencing a trial to backhaul plastic strapping to the Distribution Centre in Lytton. South Australian stores diverted on average over 95 per cent of waste from landfill, and waste diversion doubled at the majority of Bunnings’ Gold Coast & Northern New South Wales stores.
Our Alexandria Warehouse (NSW) also ran an e-waste recycling event with the City of Sydney in June 2015, which resulted in more than 12 tonnes of e-waste being collected over two days. We will actively seek similar recycling initiatives in the coming financial year.
77,000 timber pallets reused
We have been pursuing sustainability within our operations for over two decades, and we remain committed to reducing our carbon footprint.
During this time, we have continued to actively explore ways to reduce our energy consumption from store lighting through ongoing trials of latest technology lighting applicable to the built environment. To read more about this initiative click here.
We now deploy commercial LED lighting technology as standard in the new store design brief as well as pursuing retrofit options for our existing store network. In April 2015, we commenced trials at our Cranbourne and Bayswater Warehouses in Victoria to test LED fittings in a non-standard retrofit setting.
Following the 2009 trials of solar PV and wind turbine micro-generation at various locations, a new generation solar PV system was installed at our Alice Springs Warehouse in the Northern Territory in October 2014. The store now generates between 16 and 20 per cent of its daily energy needs.
We will be rolling out a further four solar PV systems during the next financial year and continue to actively pursue commercially viable micro-generation initiatives.
This year there was a 9.4 per cent reduction in the number of injuries recorded and a 14.7 per cent reduction in the Total Recordable Injury Frequency Rate, which was a pleasing result given the continued growth of our business.
Taking a ten year view, the Total Recordable Injury Frequency Rate has been reduced by more than 50 per cent.
Our continuing focus on safety included a grading and performance monitoring system rolled out to over 3,500 forklift operators, a hazard spotter app developed for the in-store iPods, and the extension of our successful safety superhero competition which was run across all stores.
While we continue to have a strong focus on safety leadership and incident prevention, our new simplified injury management process has helped to achieve a 10.3 per cent reduction in our average time lost rate.
14.7 per cent reduction in TRIFR
24.8total recordable injury frequency rate
- Drive further energy reduction measures to reduce our long-term carbon footprint.
- Provide more information and education and drive more product development to help customers make sustainable living choices.
- Continue to increase our efforts to reduce supply chain resource waste and achieve greater packaging and transport efficiencies.
- Continue to work closely with suppliers to maintain ethical supply chains.
- Maintain positive safety performance improvement momentum.
GRI Reference: G4-12, G4-EN33, G4-DMA (Supplier Environmental Assessments)