Red Sheds reveal Green and Community credentials

Media release
December 21, 2011

Red Sheds reveal Green and Community credentials

Leading retailer The Warehouse has released its 11th annual Community and Environment Report which tracks its performance with respect to community and environmental measures.

Highlights of the report include Quality Assurance and in store service improvements for customers, continued reductions in the use of non-essential plastic bags, advances in its Ethical Sourcing systems, and a special feature chronicling the company’s response to the Canterbury Earthquakes.

The company’s carbon footprint decreased six per cent for the year, despite expanded operations, mainly due to good climatic conditions for hydro generation and renewable electricity.

A trial programme with low-energy lighting demonstrated a 25% reduction in consumption, and the company will consider how it can further reduce energy consumption, says Sustainability Manager Trevor Johnston.

A breakdown of ‘The Warehouse dollar’, a measure of how every sales dollar spent at The Warehouse is distributed shows around 60 cents of every dollar remains in New Zealand:
• 35 cents is spent on New Zealand goods and services
• 11 cents on wages for the company’s 8,000 employees
• 10.7 cents goes to the government in tax; and
• 3.2 cents goes to shareholders, 96% of whom are New Zealanders
• 39.4 cents goes to overseas manufacturers and suppliers

In terms of the origin of goods sold in The Warehouse stores, while China remains the major product source (61.92%), New Zealand made goods are second on 11.27%, followed by goods from Australia, USA, UK and Thailand.

The Warehouse remains the only New Zealand retailer with a publicly communicated ethical sourcing programme, a point noted in a commendation the company received for its 2010 Community and Environment Report in the ACCA’s Sustainability Awards announced last month. This programme includes factory audits of its suppliers in China.

The company’s fundraising and community support contribution from suppliers, customers and the company itself for the year was $3.2 million, including significant donations to the New Zealand Red Cross 2011 Earthquake Appeal and the Pike River Miners Relief Fund.

In addition, the company’s cornerstone shareholder The Tindall Foundation gave $13 million during the year to causes throughout New Zealand, bringing to more than $100 million its contribution to New Zealand community and environmental causes since its inception in 1994.

Mr Johnston said the company still had opportunities to improve its waste and energy management and further refine its ethical sourcing programme. However, 2011 had seen a solid performance across a number of areas in its community and environment reporting, alongside its financial results.

The Warehouse retains its FTS4Good constituent listing reflecting its adherence to globally recognised corporate responsibility standards.

ENDS

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