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Target

Target is an iconic department store with a presence throughout metropolitan and regional Australia. The business sells a wide range of products for the whole family, including apparel, homewares and general merchandise.

Target Australia operates a national network of more than 300 stores and a growing online channel, generating sales of more than $3.4 billion. We employ more than 19,000 team members across our stores, support offices and direct sourcing operations in Asia.

Material issues

  • Ethical sourcing
  • Environmental impact
  • Safety
  • Product safety
  • Community support
  • Diversity

Ethical sourcing

Target continues to focus on an ethical and transparent supply chain. This year, we started publishing details of our supplier factories in Bangladesh, Vietnam, Cambodia, India and Sri Lanka. We intend to publish details of our remaining factories, including those located in OECD countries, by April 2016.

This year, Baptist World Aid gave Target a 'B-' rating in its Australian Fashion Report. The improvement on last year’s 'C-' rating reflects our continued engagement with factories and vendors through our audit program, supplier workshops and communication channels. We continued our support of Impactt’s Benefits for Business and Workers Program which works with factories in developing countries to make business improvements that lead to better training, pay and conditions for workers. Fourteen of Target Bangladeshi supplier factories have signed on to participate in the program.

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We remain committed to ensuring the safety and wellbeing of our workers. This is demonstrated through our commitment as a signatory to the Accord on Fire and Building Safety in Bangladesh. We are also partnering with CARE Australia’s ‘Bangladesh Safe Motherhood Program’ as part of our commitment to have a positive impact in the communities in which we operate.

 

 

 

Reducing our environmental impact

Following the establishment of an energy management program in early 2014, Target has reduced energy usage by 10 per cent in its first full financial year.

Central to the program has been an Energy Centre to collect, monitor and manage energy data and building performance across all properties.

Other features include energy audits and basic remedial works at 130 stores considered ‘energy hogs’, automation of lights and air conditioning to reduce unnecessary use outside of trade, installation of smart meters so we can monitor use and new air conditioning management strategies.

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Energy Use

0.8

petajoules
2015   0.8
2014   0.9
2013   0.8
2012   0.8
2011   0.8

Safety of our teams and customers

Team member safety continues to be a strong focus for Target with lost time injuries (LTIs) having decreased by 23 per cent on last year and total recordable injuries reduced by 25 per cent for the same period. The reduction in LTIs resulted in a 18 per cent decline in our lost time injury frequency rate to 4.7, continuing an all-time low trend.

Target uses an online activity planning tool known as the Site Operational Plan. The plan details safety actions to be undertaken each month and allows real-time reporting on the completion of actions. It also retains evidence such as inspections, team talk records and checklist, which previously had been retained in hard-copy format. The Site Operational Plan has been in use for two years and has been invaluable in improving the overall safety performance of stores and sites across Target.                                                                   

This year, Target also introduced the InjuryCARE 1300 early intervention voluntary program allowing team members to self-manage their injury within the workplace where appropriate. The program provides team members quick access to a range of medical services through a centralised call centre, reducing the need to leave the workplace.

Safety Performance

30.2

total recordable injury frequency rate
2015   30.2
2014   38.01
2013   43.7
2012   54.6
2011   57.4
1Last year's TRIFR has been restated due to maturation of data

Ensuring the quality and safety of our products

We continually strive to improve our quality and safety standards to ensure our customers can be confident in the products they buy at Target.

Throughout this year we have adopted best practice principles to comply with both International and Australian standards. For instance, there are currently minimal specific legislative requirements in Australia governing the restrictive use of chemicals in the production of apparel or home textiles. Target has made the decision to adopt a number of apparel/textile aspects from the European Community Regulation.

 

 

Safety manuals have been reformatted and made available to our supply base outlining Target’s ongoing commitment to providing safer products. A safety-focused culture is being promoted throughout product development with a particular emphasis on early identification and mitigation of risk.

This year, we also improved coin and button cell battery safety. Warning messages now appear on Target branded products and packaging, battery compartments are more child-proof and replacement coin and button cell batteries are being sold in child-proof packaging.

 

Supporting and engaging with communities in which we operate

Target established a new national community gift card donation program this year which has helped our stores make a positive difference to the local communities they serve. The program has already supported more than 700 charities and causes across Australia with $42,677 worth of gift cards donated from our stores to local causes including schools, Indigenous groups, local sports clubs, mothers' groups, charities and many more.

We also established a relationship with CARE Australia in November 2014. Target is proudly supporting the Safe Motherhood Program in Bangladesh. The program supports women and their families in Gazipur by delivering vital pre and post-natal education programs and by connecting them to lifesaving healthcare services.

We also continued our support for the Kids Teaching Kids program, The Alannah and Madeline Foundation, SIDS and Kids Red Nose Day and the Target and UnitingCare Christmas Giving Box Appeal.

Community contributions

3.6

$m
Direct
2015   1.4
2014   1.5
2013   0.9
2012   1.4
2011   1.1
Indirect
2015   2.2
2014   1.0
2013   0.9
2012   2.1
2011   2.0

Ensuring our team’s diversity reflects the communities in which we operate

This year Target launched its Aboriginal and Torres Strait Islander plan to ensure we are a welcoming place for Indigenous customers, team members, visitors and suppliers. The plan focuses on increasing economic participation for Indigenous people through respectful partnerships, employment and supply by Indigenous businesses.

The strategy includes developing our teams’ understanding of Indigenous people and culture, community partnerships that support employment and building relationships with the Indigenous fashion industry.

Highlights included increasing Indigenous representation in our workforce by 50 per cent, launching the 'Desert Designs for Target' collection, partnering with AIME to supply apparel for National Hoodie Day and increasing the presence and profile of Indigenous models in our catalogues and on our runways. Click here to see a video about our work in this area this year.

2015-16 priorities

As a business, we are making fashion, style and quality affordable for the whole family every day. In order to achieve this, we are constantly looking at ways to become more sustainable.

Our key priorities in the coming year are:

  • Continue to reduce the environmental impact of our network
  • Maintain our robust safety record
  • Increase Indigenous representation in our workforce
  • Continue to increase the transparency of our supply chain

GRI Reference: G4-DMA (Product and Service Labelling), G4-12, G4-EN33, G4-PR3