Australian Packaging Covenant Action Plan May 2012 July 2015
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1 Australian Packaging Covenant Action Plan May 2012 July 2015
2 Table of Contents Executive Summary 3 Company Overview 3 Brands.4 Locations...5 Position in Supply Chain.5 Packaging Formats...5 Company Values....6 Just Group Action Plan. 7 Packaging Groups and Review Schedule...10 Action Plan Contact
3 Executive Summary The Just Group is a leading specialty fashion retailer with seven well known brands: Just Jeans, Jay Jays, Jacqui E, Peter Alexander, Portmans, Dotti and Smiggle. Just Group reported sales of $875 million in the 2011 financial year. Just Group signed the Australian Packaging Covenant (APC) in February 2012 and accordingly has now drafted a 3 year Action Plan for the period May 2012 to July 2015 outlining the initiatives we will employ to help improve life cycle management of our packaging materials. The first year of our Action Plan will focus on formalising review processes and on developing methodologies to quantify the baseline from which we can monitor measurable improvements. Mark McInnes CEO Just Group Company Overview Just Group is a leading speciality fashion retailer in Australia and New Zealand, and operates in South Africa through a joint venture. The Just Group expanded its Smiggle brand into Singapore with the opening of 8 stores during the 2011 financial year. It has a portfolio of well-recognised retail brands, offering latest fashion at value price points. There are currently seven unique brands trading from more than 1,000 stores throughout 4 countries. The emphasis is on a range of brands that provide diversification through breadth of target demographic and sufficiently broad appeal to enable a national footprint. There is a continuing investment in these brands to ensure they remain relevant to changing customer tastes and remain at the forefront of their respective target markets. Just Group is a wholly owned subsidiary of Premier Investments Limited, a publicly traded company listed on the Australian Stock Exchange (PMV). 3
4 Brands Just Jeans has been part of the retail landscape for more than 40 years and is a household name synonymous with style, quality and comfort. Just Jeans has enjoyed an enviable history as one of Australia s most creative and trusted denim providers. Just Jeans has an acute understanding of the denim and casual-wear market and is dedicated to meeting the needs of its customers. Jay Jays is one of our most colourful and energetic brands, and with over 300 stores across Australia, New Zealand and South Africa, the Jay Jays story continues to evolve. Jay Jays is famous for fast fashion at easy on the pocket prices. Targeting year old girls and guys, this youth brand offers an extensive product range including: street wear, surf styles, casual basics and accessories. Jay Jays strives to be a fun, honest, energetic, individual and above all, a great value clothing brand. Dotti is pure fashion. For girls who live and breathe fashion, Dotti gives them the fix they need straight from the catwalk to the rack. The Dotti girl is creative, fun and loves to share good times with her friends. In 2010 Dotti launched Dotti Nation a digital space where Dotti girls meet to share their best looks, review each other s ideas and win prizes. This online world is an engaging place for the Dotti girl to play. Portmans is about new looks and on trend fashion; it is glamorous, polished, playful and pretty. The Portmans girl is a metropolitan fashionista who lives, works and plays inner city. She is inspired by her surrounds and finds beauty and inspiration in the urban jungle that is her home. Portmans aims to be the number one destination for girls going places. Jacqui E has a long and proud history of providing women with stylish, beautiful clothing and has been part of the Just Group since Taking inspiration from global fashion trends, Jacqui E s collection is a cohesive edit of the season s most wearable looks. Jacqui E focuses on creating versatile investment pieces with a contemporary edge, which takes the modern woman from work to weekend. Peter Alexander the brand was acquired over 10 years ago by Just Group from Peter Alexander (now the Creative Director of the business). The Peter Alexander experience offers designer sleepwear, loungewear, daywear, footwear, home and giftware in boutique styled retail stores, on-line and catalogue. It has grown from a pure catalogue based business to a multi-channel business with more than 40 retail stores within Australia and New Zealand and is one of the largest on-line businesses for apparel in Australia. Smiggle was born and bred in Australia, and is becoming one of the world s hottest stationery brands. Dedicated to fuelling the creative spirit by delivering original, fun and affordable stationery, Smiggle products are all about great design and innovation, bold colour, quirky graphics, good value and most of all giving Smiggle fans the tools they need to have fun! Where a smile meets a giggle, it s the world s greatest place. 4
5 Locations Just Group operates over 1,000 stores in shopping centres and strips centres across Australia, New Zealand, Singapore, and South Africa. Just Group operates four distribution centres in Australia and New Zealand and the head office is based in Richmond, Victoria. Stores Other Number of Locations As of 1H2012 Country Jay Jays Australia, New Zealand, South Africa Dotti 115 Australia, New Zealand Portmans 110 Australia, New Zealand Just Jeans 250 Australia, New Zealand Smiggle 119 Australia, New Zealand, Singapore Peter Alexander 46 Australia, New Zealand Jacqui E 108 Australia, New Zealand Distribution Centres 4 Australia, New Zealand Head Office 1 Australia 1 Excludes over 60 Jay Jays South Africa stores which are operated as a JV Position in Supply Chain The Just Group is a brand owner and retailer of branded apparel, stationery and accessories. Over 90% of the product range is designed and sold under its own brands. Manufacturing is provided by third parties off-shore and in Australia. A small portion of the business is retail of third party branded product. Third party products for which Just Group maintains control over packaging decisions will be included in the scope of this Action Plan, mostly in denim. Packaging Formats Given Just Group s primary business of retailing soft goods, the majority of packaging is cardboard and plastic related to transportation of goods. Below is a table detailing the different types of primary and secondary packaging by product type. Product Type Primary Packaging Material Secondary Packaging Material Apparel Swing tags, tissue paper, plastic bags Cardboard boxes, plastic bags Footwear Paper stuffing, hangers Cardboard box Accessories Hang tags, swing tags, paper stuffing Cardboard box, plastic bags Stationery Plastic (PVC, PP), cardboard Cardboard box, fillers, inners Gifts Plastic, paper, cardboard Cardboard box On-line Return envelope, gift wrap, paper Plastic bag, cardboard boxes, protective wrapping for gifts Other non-product related packaging nominated for review under this Action Plan are carry bags (plastic and paper), plastic garment hangers and receipt rolls. 5
6 Company Values The Just Group believes that the 'what' and the 'how' are both important when it comes to operating. While we want great results, how we go about achieving them is also significant. The Company acknowledges the importance of respecting our stakeholders, including employees, shareholders, customers and suppliers. We also know that by respecting and working with the communities in which we operate we can make an impact. Ethical Supply The Just Group has an extensive and flexible supply chain that allows the Company to source products internationally and domestically. Approximately 70% of the products are sourced from off-shore through sourcing agents and the balance is produced locally through contract manufacturers in Australia. With such an extensive supply network, the Group is concerned with the social and environmental implications of operating directly or through suppliers in local and international communities. It will only deal with suppliers who comply with the laws of the country or region in which they operate. We will take appropriate action should a supplier be found to have breached such laws. The Just Group is a signatory of the National Retailers/TCFUA Ethical Clothing Code of Practice which guides our arrangements with Australian suppliers. For overseas suppliers, our agents have in place similar terms of trade and audit processes. 6
7 Just Group Action Plan The Action Plan deliverable timelines are based on Just Group Fiscal Years and Half Years ending July and Jan respectively 1. Design optimise packaging to achieve resource efficiency and reduce environmental impact KPIs Actions Owner Baseline data Target Evidence Timeline Form a cross functional working group to perform packaging review of new and existing packaging Business Improvement List of members and dates of meetings Jul 2012 KPI 1 SPG implemented for the design or procurement of packaging Nominate a packaging type and run a pilot packaging review Packaging Team, Business Improvement Currently informal team in place and reviews conducted within the following areas of business Distribution Merchandising Sourcing Non-merchandising Procurement No formal reviews have been conducted to date Packaging team in place to help formalise process and ensure compliance from rest of business Develop a set of guidelines to help assist future packaging evaluations SPG checklist listing the key questions for review Minutes from the pilot review Jan 2013 Review current packaging against the Sustainable Packaging Guidelines (SPG) Review new packaging against the SPG Packaging Team Packaging Team Packaging efficiency and environmental awareness are generally considered in packaging decisions, however formal SPG review process not in place No process in place Review at least 50% by 2015 Review 100% of new packaging Documentation of review and the list of Documentation of review Review according to timeline in Table 1 Seasonally as new products arise 7
8 2. Recycling - the efficient collection and recycling of packaging KPIs Actions Responsibility Baseline data Target Evidence Timeline Assess baseline for recycling in the Distribution Centres and Head Office Distribution, Facilities Baseline data produced Jul 2013 KPI 3 Onsite recovery systems for recycling used packaging KPI 4 A policy to buy products made from recycled packaging Assess baseline for recycling in stores Explore strategies to improve recycling practices across the business Determine baseline data for recycled content in current packaging and identify opportunities for incremental improvement in recycled content of packaging Facilities, Procurement Business Improvement Business Improvement, Procurement Recovery process in place for cardboard, plastic, plastic straps in DC and paper, bottles, cans, cardboard in head office, but quantity/weight information not captured Stores in shopping centres utilise onsite recycling facilities provided by landlords Onsite waste collection is organised for strip stores where council does not pickup Recycling systems in place, but opportunity to explore improvement General practice is to consider recycled material use where possible, however no formal policy in place Develop process to collect data on recycling and reuse of packaging materials Develop process to collect data on recycling of packaging materials if possible Investigate opportunity to expand on-site recovery facilities for stores where feasible Develop timeline for ongoing recycling rate improvement and review of other recycling opportunities where feasible Baseline data established Identify packaging that can explore increasing recycled content List of stores requiring on-site recovery systems and a list of suppliers that can potentially service these stores Jul 2013 Notes from recycling reviews Jul 2014 List of products and % recycled content List of products for review and cost/benefit analysis for increasing recycled content for these products Jul 2013 Jul
9 3. Product Stewardship - demonstrated commitment to product stewardship KPIs Actions Responsibility Baseline data Target Evidence Timeline Develop a policy for reviewing packaging against the SPG with suppliers Procurement, Merchandising Reference SPG review in Just Group operations manuals for suppliers Jul 2014 KPI 6 Formal processes for working with others to improve packaging design and recycling KPI 7 Product stewardship outcomes for packaging KPI 8 Reduction in the number of packaging items in litter Review waste management contracts and require sorting and recycling of packaging where possible Review garment hangers to minimise environmental impact Explore reuse/reduce cardboard boxes in DC Optimise layout and content of receipts to reduce paper use Assess energy consumption in stores Review carry bags to minimise environmental impact Review disposal instructions on consumer packaging (including store branded bags) to minimise the chance that these items end up in the litter stream Facilities Procurement Distribution IT Facilities Procurement Packaging Team Merchandising and procurement generally work with suppliers to maximise efficiencies in packaging and distribution, however no formal packaging review in place regarding SPG requirements Waste removal contracts for head office and DCs specify recycling. Contracts for stores vary depending on location Explore opportunities to reduce/reuse/recycle Portion of boxes received into DC currently unpacked and then re-used Content of receipt dictated by brands and by refund policy information requirements Scope to optimise layout and content of receipt Majority of store windows operate timers to minimise energy use. Opportunity to form further energy savings strategies Added epi to plastic bags for increased degradability (oxo-biodegradation) Smiggle uses bamboo, a renewable resource Peter Alexander shopping bags have instructions inside for customers to remove handles before recycling Some Smiggle packaging labelled with resin code to assist with recycling Review opportunities to include suppliers in discussions of packaging optimisation and recycled content Conduct review of waste management suppliers that can provide recycling services for stores Review of hanger design and ability to reduce the number of new hangers Establish baseline of % reused and a timeline for improving rate of reuse or increase in recycling Reduce the amount of thermal paper usage Develop process to track energy consumption and explore strategies for energy savings in lighting such as converting to LED lights in select stores Review design of bags to reduce materials required Identify opportunities and potential actions Contract in place Jul 2014 Notes from hanger design review and hangers used data Data on % reused, and volume of boxes purchased Trend data of number of thermal rolls used Comparison of energy consumption in nominated stores New bag designs where applicable Disposal guidelines provided on nominated consumer packaging Jan 2013 Jul 2014 Jan 2013 Jan 2014 Jan 2013 Jul
10 Packaging Groups and Review Schedule for Existing Packaging: Table 1 Product Type Primary Packaging Material Secondary Packaging Material Timeline Consumables Receipt rolls Paper, Hangers - Plastic, Carry Bags Plastic and Paper Cardboard boxes Jan 2013 Apparel Swing tags, tissue paper, plastic bags Cardboard boxes, plastic bags Jul 2013 Footwear Paper stuffing, hangers Cardboard box Jan 2014 On-line Return envelope, gift wrap, paper Plastic bag, cardboard boxes, protective wrapping for gifts Jan 2014 Accessories Hang tags, swing tags, paper stuffing Cardboard box, plastic bags Jul 2014 Stationery Plastic (PVC, PP), cardboard Cardboard box, fillers, inners Jan 2015 Gifts Plastic, paper, cardboard Cardboard box Jul 2015 NOTE: Deliverable timelines based on Just Group Fiscal Year and Half Year ending July and Jan respectively Action Plan Contact Jinah Johnston Business Improvement The Just Group 658 Church Street Richmond VIC jinah.johnston@jjh.com.au 10
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