More Related Content Similar to Kathmandu Pty Ltd_AR_2016 Similar to Kathmandu Pty Ltd_AR_2016 (20) 2. Goal 1: Design
KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the
SPGs or equivalent.
Does your company have documented policies and procedures for evaluating and procuring packaging using the
SPGs or equivalent?
Yes No
Have any new types of packaging been introduced during the reporting period?
Yes No
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?
95 %
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
100 %
9.
10.
11.
12.
Provide details of policies and procedures
The Kathmandu Sustainability Plan for FY 2016 - 2018 (updated)
The Kathmandu Packaging Specification Guidelines
The Kathmandu Waste Management Strategy
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
out to do?
Actual: What did you achieve?
13.
> The Packaging Committee continues to meet and
discuss packaging sustainability initiatives,
innovations, risks and opportunities.
> The Packaging Committee has been formed as a
cross-functional sub-committee of Kathmandu's wider
Sustainability governance team called the Dream
Team. The team comprises of members from across
each department of the business championing and
driving sustainability in their field and executing the
goals and objectives outlined in the Sustainability
Plan. Team members represent departments from
packaging/design, supply chain management, fabric
research/development, quality assurance, brand,
sustainability, community, social media, internal
communications, finance, in-bound supply chain and
HR.
> The Dream Team meets quarterly and reports to the
Board to outline progress against goals and
objectives.
The new Sustainability Coordinator for Kathmandu
will continue the facilitation of the Packaging
Committee to implement the APC Action Plan,
goals and objectives. (achieved)
1.
3. > Recently completing a sustainability materiality
assessment across the business, this was an ideal
project to review our packaging guidelines, initiatives
and opportunities for the next three years.
> Our packaging designers were interviewed by our
strategic sustainability consultants from the Australian
Centre for Corporate Social Responsibility (ACCSR).
The consultancy also interviewed 20 external
stakeholders including Waste Management
Transpacific, the Outdoor Industry Organisation (OIA),
packaging companies and other suppliers that were
involved in the one hour interview. Interviewees
answered and discussed certain various elements of
packaging and waste management.
> We have assessed great progress on our finished
product packaging thanks to the framework of APC
reporting. There will be a strong focus into waste
management and end of use material.
> The APC were interviewed as part of the project.
Kathmandu will deliver a materiality assessment to
identify our environmental impacts (achieved)
2.
> We are currently finalising our updated Kathmandu
Sustainability Plan for FY2016 - 2018. The plan is
being developed and structured to outline how to
achieve the opportunities and risks recorded during
materiality interviews and industry research. The plan
will be a key outline for dates, budgeting and
accountability's to achieve our APC Action Plan goals.
> Goals and objectives confirmed in the plan are a
result through interviews from the materiality
assessment.
New Sustainability Plan: FY2016 - 2018 (in progress
- due mid-April 2016)
3.
> Kathmandu is continuing the strategy to remove all
metallic inks from the entire product
range swingtag inserts. We have identified the
metallic ink we currently use contains barium, copper
and zinc pigments that has potential to cause
environmental and health hazards as metals are
extracted a processed into the paint. Using this type
of ink can potentially release Volatile Organic
Compounds (VOC). These ink colours require
additional steps in the press cleaning process, which
may also be hazardous.
> For the 2015 calendar year, indications showed we
used approximately 3,262,000 swing tags. There has
been an overall drop in the use of swingtags to save
costs and remove unnecessary packaging.
Kathmandu has identified a more sustainable
alternative of using card with soy based inks and is a
key sustainability goal as part of our Sustainability
Plan and APC Action Plan.
> Kathmandu will be running approximately 765,000
swingtag inserts made up from 40% black ink rather
than using metallic ink. Kathmandu will report on the
use of this ink in our next APC submission. As we
generally have a product life-cycle in our range of
three years, we are looking to replace all of our
swingtag inserts containing metallic inks.
Kathmandu are committed to removing metallic ink
from product swing-tags (part achieved and still in
progress)
4.
> We adopted our Retail Ready Packaging for the
one remaining new large furniture product. All of our
furniture products now use this method.
> Our Retail Ready Packaging products use only one
carton straight to display in store, rather than a
common industry initiative to package the product
twice, ie one shipping carton and one display carton.
Continue the adoption of 'Retail Ready Packaging'
across large package based products (achieved)
5.
5. Goal 2: Recycling
KPI 3: % signatories applying on-site recovery systems for used packaging.
Yes at all facilities/ sites
Yes at some, but not all facilities/ sites
No
Do you have on-site recovery systems for recycling used packaging?15.
Please indicate your progress this year towards achieving your annual targets and milestones for KPI 3
Target: According to your Action Plan, what did you set
out to do?
Actual: What did you achieve?
16.
> Waste audit for 13 stores found waste
compositions to be very congruent across all stores.
By weight (kg), approximately 60% cardboard 35%
low density polyethylene (LDPE #4) soft plastic and
5% co-mingled/general waste was recorded and
averaged. Stores also outlined on occasions,
marketing collateral and promotional material would
be either recycled (paper/cardboard) or disposed of
in the general waste (plastic based material). The
Sustainability Coordinator has incorporated finding
more sustainable materials as part of our SPGs.
> As part of our waste management strategy, a waste
audit was delivered at our Melbourne Distribution
Centre to assess recycling and waste percentages.
The audit found per month approximately 65% of
waste was being recycled consisting of
predominantly cardboard, paper and co-mingled
recycling. The findings have been incorporated into
our Waste Management Strategy.
> Kathmandu has been working closely with waste
management services. Waste Management
Transpacific audited our Christchurch (NZ) office
before our move to a new five star Green Star rated
building. Key initiatives were to convert to using hand
dryers in bathrooms, clear signage for bins, continual
communications to team to raise awareness of
becoming a zero-waste office and remove general
waste bins under each persons desk. Our Melbourne
office already uses waste stations to maximise
recycling and composting rates.
Kathmandu will deliver waste audits and surveys
for our stores, distribution centres and support
offices. (achieved)
1.
Waste Survey
> Kathmandu sent a waste survey and conducted
phone conversations to all 160 stores across
Australia and New Zealand for our Store Managers to
complete. The purpose of the survey was to achieve
an understanding of waste management systems in
our stores. We based the survey questions following
the findings from the waste audits.
The response was a great success with 148/160
responses in the first week. The survey asked:
1. Do you recycle paper/cardboard?
2. Do you recycle soft plastics (LDPE #4)?
3. Do you recycle co-mingled material, e.g. tins,
glass, plastics etc...
4. How do you recycle visual display merchandising
material
5. How does your store recycle material like shelving,
cases, pallets etc...
6. Does the store have any further suggestions or
Kathmandu will develop a waste management
strategy for stores. (achieved)
2.
6. recommendations for improvement.
Results
> 159/160 (99.3%) of stores recycle cardboard and/or
paper. The remaining one store was 'unsure' whether
the cardboard gets recycled as it was disposed of in a
skip. Questions were raised whether paper and
cardboard can be recycled in the same bin. The SC
has followed up in the report to ensure Store
Manager's ring their cardboard and waste provider to
confirm.
> 95/160 (59.4%) of stores recycle LDPE#4 soft
plastics: 59/111 (53.2%) Australian stores and 36/49
(73.5%) for New Zealand stores.
> 39/160 of stores (24%) recycle co-mingled waste
for staff lunches etc... Two stores were unsure
whether the material was actually getting recycled.
> All marketing, visual merchandising and promotional
material is recycled in cardboard bins.
> Various responses to recycle material like shelving,
pallets etc... came down to the initiative of the store
team to donate, upcycle or reuse. A lot of this material
is non-recyclable through standard waste services.
> Suggestions for improvement: various responses
were provided how to minimise our waste and use of
packaging. For example, store teams were quite clear
to say printed materials, booklets and brochures do
not get used. Everything can be dealt with via
computers and emails.
How do we improve?
> Kathmandu has already implemented soft plastics
#4LDPE recycling in two stores (Dunedin and
Melbourne CBD stores). One large 660L and 240L
bin for the stores now get picked up multiple times per
week.
> Kathmandu has designed a one page Waste
Management Guide for stores. The Sustainability
Coordinator is waiting for the feedback from the APC
before circulating if it has
recommendations/amendments from reviewing this
report.
> The Sustainability Coordinator identified Kathmandu
has a consolidated waste contract with Waste
Management in New Zealand. This is very effective as
we have one key accounts manager to implement
correct bins. This is also an economic efficiency as
the service provides discounts for servicing multiple
stores. All of our Australian stores have contracts with
seperate services paying the full waste fee. The
Sustainability Coordinator is working with the finance
and accounts team to work with a waste research
analyst or business analyst to consolidate waste
contracts to decrease waste costs. During this
consolidation, providing bins for cardboard, #4LDPE
and co-mingled will be part of the tender proposal.
This is a key goal as we will help support the
remaining 65 stores who currently do not recycle
polybags recycle the material during the consolidation
of our waste contracts with the finance, accounts and
store development team.
> The Sustainability Coordinator will also send the
waste report and strategy to store teams, office and
DC teams. The SC is waiting for feedback from the
APC should anything else be included. This info will
be included in our sustainability report, CDP report,
Higg Index.. Information will also be communicated
via our marketing/comms streams. The SC is awaiting
feedback from the APC before sharing.
> We are overall very happy to gain a detailed and
8. Describe any constraints or opportunities that affected performance under this KPI
> A limited number of regions provide recycling services for soft plastics (LDPE #4) meaning we cannot progress
with recycling the waste in certain stores. For example, we worked with Waste Management to identify LDPE soft
plastics cannot be recycled in Invercargill or Queenstown (NZ) as there is currently no economic viability for the
waste service to pick up the waste. We are currently researching a partnership with the REDcycle programme
and Terracycle to provide solutions for these stores.
> Certain stores are located in shopping centres which means waste management systems are reliant on
complex waste systems. A numbers of centres only provide cardboard and paper recycling and not provide soft
plastics recycling meaning the Sustainability Coordinator will have to negotiate with the shopping complex to
install appropriate bins.
17.
KPI 4: Signatories implement formal policy of buying products made from recycled packaging.
Is this policy actively used?
Yes No
Yes No
19.
Does your company have a formal policy of buying products made from recycled packaging?18.
The Kathmandu Sustainability Plan
Sustainable Packaging Guidelines
Provide details of policies and procedures (including names of policies/ procedures)
Please indicate your progress this year towards achieving your annual targets and milestones for KPI 4
Target: According to your Action Plan, what did you set
out to do?
Actual: What did you achieve?
20.
> Our most significant policy that drives the use of
recycled material is the use of Repreve fabrics for our
apparel and equipment range. Repreve fabric
recycles post-consumer plastic bottles reclaimed from
landfill using mechanical grinding (non-chemical) to
spin into the yarn. We use the fabric across our
range. Using recycled material eliminates the need for
new crude oil and production of virgin plastic which is
well known to be environmentally hazardous
depending on how it is disposed. For FY2015, we
used 840,000 plastic bottles, for FY2016, we have
already recorded the use of over 1 million plastic
bottles and for FY2017 on track to use 2.5 million.
This fabric is a key part to our product, promotion and
strategy. Every product that uses Repreve comes
with a tag on information to outline the importance of
using recycled material.
> Our 2015 Spring campaign front page was based
on Repreve and messaging 'Spend Responsibly'.
> We have adopted the use of recycled cotton for our
cotton t-shirts for our FY2016 Summer 2 range.
Increase the use of recycled fabrics and materials
across our apparel and equipment range (achieved)
1.
> Across our stores, distribution centres and offices,
we have an unwritten policy that all stationary and
equipment is either recycled and/or sustainably
sourced.
> We understand it will be more effective to have a
written policy with preferred suppliers. Kathmandu will
work with the receptionists to produce a formalised
written policy upon purchasing office supplies.
Policy to purchase recycled materials for office
supplies (an ongoing process - produce a
formalised policy document).
2.
> Our tender plans include the use FSC/recycled
paper and cardboard for our marketing collateral
including flyers, brochures and catalogues.
Catalogues and brochures (an ongoing process -
produce a formalised policy document).
3.
11. KPI 7: % signatories showing other Product Stewardship outcomes.
Please indicate your progress this year towards achieving your annual targets and milestones for KPI 7
Target: According to your Action Plan, what did you set
out to do?
Actual: What did you achieve?
25.
Sustainability is core to Kathmandu's business
strategy. To help summarise our environmental
activities, the following targets and achievements
outline our priorities and reporting activities.
1. Our supply chain - human rights
2. Product stewardship
3. Minimising environmental footprint - restoring
4. Community and charitable partnerships
5. Team development and transparency
> Please find attached a link to our 2015
Sustainability Report. This report provides information
for all of our sustainability initiatives delivered for the
2015 financial year:
http://www.kathmandu.co.nz/media/wysiwyg/Sustaina
bility/Material/Kathmandu_Sustainability_Report_2015
_-_UPDATED.pdf?
Our top five material issues1.
> We are currently in the process of achieving Fair
Labor Association (FLA) accreditation. The FLA
provides us with a pathway, positive impact
recommendations and procedures to implement social
and environmental support for our supply chain
workers.
> We have a voluntary Code of Conduct that we
provide all of our suppliers. The conduct outlines our
environmental, social and economic sustainability
expectations when we form a contract with a supplier.
More info here: www.kathmandu.co.nz/get-to-know-
us/corporate-responsibility
> Factory auditing: We audit a number of factories
each year to ensure social compliance standards
have been met. When we identify non-compliance, a
corrective action plan (CAP) is issued for
improvement. When no improvement is met, contracts
have potential to be terminated.
1. Supply Chain - Human Rights2.
13. > Goal: Reducing carbon emissions by 20% by 2020 -
Kathmandu accounts for scope 2 (direct energy use)
emissions and very recently has included scope 3
emissions. Scope 3 is a complex field to account for
as it assesses the carbon footprint of transport
through our supply chain. We will disclose our
findings in our annual CDP and Sustainability Report.
We are in agreement with CarboNZero to offset our
business air travel emissions.
> Goal: Zero waste to landfill by 2018 - more info here
in KPI 3
> Green Building design programme - we have
partnered with the Green Building Council of Australia
(GBCA) to develop Australia's first five star Green
Star rated retail store. Some key features include
recycled and FSC certified timber, energy efficient
systems, 94% of waste was recycled during
construction and a store committed to zero
operational waste. Kathmandu is also developing an
industry first multiple store accreditation programme.
This programme can be used by other retailers like
us. We are also building a five star Green Star rated
distribution centre in Melbourne.
> We have also joined the New Zealand Green
Building Council (NZGBC) as we will move into a five
star Green Star rated office in Christchurch on
08/03/2016. The office uses recycled materials and
ample signage to drive zero-waste to landfill.
3. Minimising our Environmental Footprint4.
> Kathmandu continued its relationship with our six
longstanding community partners ; Red Cross NZ,
Red Cross AUS, Department of Conservation (DOC),
the Australian Himalayan Foundation (AHF),
Australian Wildlife Conservancy (AWC) and Outward
Bound. Initiatives include a large financial donation
including ongoing apparel and equipment donations.
> The main story for the last calendar year was our
response to the devastating Nepal earthquake where
we mobilised over NZ$240,000 in financial donations,
clothing and equipment for victims of the natural
disaster (delivered in May - 2015).
4. Community and charitable partnerships5.
> Training for 3000+ of our team across stores, DC'
s and support offices is a key opportunity. We have
released our first online training module which is
updated annually after the sustainability report has
been designed. We cover waste management and
sustainable packaging design as well as our
membership with the APC.
> For this calendar year, we will launch our
Sustaianbility Champions programme where a
champion is appointed for each store. They will
deliver sustainability duties/initiatives for their store
and develop a profound knowledge of our
sustainability programme. They will be able to win
trips to our international suppliers, community
partners etc...
5. Developing the Kathmandu team for
sustainability
6.
14. > We produced our fourth annual public sustainability
report this year which we use to highlight and outline
key achievements in our sustainability programme.
This also extensively covered waste management and
sustainable packaging design. (viewed here:
?http://www.kathmandu.co.nz/media/wysiwyg/Sustain
ability/Material/Kathmandu_Sustainability_Report_
2015_-_UPDATED.pdf)
> We adopted the report's design and
infographics into our various comms streams
including campaigns, social media, Summit Club
emails and PR.
> We submitted the content of our report to enter the
Lard Business Award for the Banksia Foundation - we
were a finalist for this award.
Annual Sustainability Report7.
> We completed the Higg Index achieving a score of
18/100. We joined a number of leading international
outdoor brands in sustainability to complete the
Higg Index. > The Higg Index is an environmental
self-assessment tool for apparel and footwear
assessing our enviromental impact by manufacturing,
transport use, packaging, end of use,materials and
care/repair.
Annual Higg Index self assessment tool8.
> We report annually to the Carbon Disclosure
Project where we account for our scope 2 emissions.
This year we increased our score to a (B) as our
scope 2 emissions dropped by 2.6%. We were a
finalist for the CDP Best Year on Year category.
> We are currently accounting for our scope 3
emissions which we will be reporting on this year and
for the sustainability report.
> We are also in the agreement process with
CarboNZero to offset all of our business air travel
emissions by purchasing carbon credits at a project
80km from our Christchurch office.
Annual CDP Report9.
Since the beginning of the reporting period, has your company had any other outcomes related to product
stewardship?
26.
NoYes
If yes, please give examples of other product stewardship outcomes
Yes - please read above
Describe any constraints or opportunities that affected performance under this KPI
Sustainability is a key driver behind our business strategy. There are so many other sustainability projects to
deliver, following from a great first half FY2016 sales, we are very keen to dedicate more staff and resources
behind our programme.
27.
15. KPI 8: Reductions in packaging items in the litter stream.
Please indicate your progress this year towards achieving your annual targets and milestones for KPI 8
Target: According to your Action Plan, what did you set
out to do?
Actual: What did you achieve?
28.
> Kathmandu's Community Coordinator manages our
charity and conservation projects. This year we
partnered with Conservation Volunteers and offered
our over 1 million Summit Club members club via
email, marketing, social media and the website
offering a day of conservation work in seven different
sites between Australia and New Zealand. 52,390
people opened the email to read the content and 66
members turned up to help plant seedlings, manage
conservation sites, pick up litter and learn about the
importance of this.
Litter pick ups and educating our Summit Club
members through our Conservation Volunteers
partnership and other conservation projects
(achieved)
1.
> The Kathmandu team visited Mt. Rinjani in
Lombok for our annual photoshoot for the new
product launch. The Sustainability Manager was part
of the trip and identified the very poor management of
waste and litter from locals and tourists climbing the
mountain. As there were was no waste management
system, the Kathmandu team worked with the local
tour guides to identify the negative impacts of littering.
The team video recorded the state of some of the
paths to highlight these issues. We then edited the
footage into videos for our website, marketing and
social media streams educating viewers of the
problems. World Expeditions were highly impressed
so they adopted this philosophy as part of their Mt.
Rinjani guide itinerary. ?
https://vimeo.com/139668524
World Expeditions (achieved)2.
> We recently launched our first #
tradefornew campaign where we installed a large bin
for each of our stores so rather than customers
throwing away old or unwanted clothing, items would
be thrown into the bins then donated to the Red
Cross Australia or Red Cross New Zealand. In the
first 3 months we collected 314kg of clothing that was
donated. This initiative is now a permanent
installment across all of our stores.
Trade for New (achieved)3.
> Kathmandu's waste management strategy will
significantly decrease the amount of waste in the litter
stream. All stores will receive a Store Waste
Management Guide that will ensure all waste is
recycled correctly to avoid litter.
> ?Please see more of this in KPI 3 of this report.
Kathmandu Store Waste Management Strategy
(achieved)
4.
> Kathmandu's products team spends one day per
year working with the Department of Conservation
helping out with local conservation projects and site
clean ups. As sustainability is a core part to our
business, we really encourage these initiatives.
> The Sustainability Coordinator has been invited by
Waste Management to visit the recycling transfer
station. This invite has been opened to the Dream
Team to educate us around waste and recycling
processing.
Training staff (achieved)5.
