The Packaging Council of Australia has estimated that Australians used 199 kg of packaging per person and recycled 111 kg of packaging per person in 2006–07, which is a 56% recycling rate. The New Zealand Packaging Accord estimated that New Zealanders each used 160 kg of packaging and recycled 80 kg, resulting in a 57% recycling rate (Source: report released by Packaging Council of Australia, The Status of Packaging Sustainability in Australia).

Retailers play a key role in the packaging supply chain and have the ability to drive positive and measurable change in this area. In our Sustainability Strategy 2007–15, we made a commitment – both as a retailer and as a brand owner – to finding cost effective ways to reduce packaging and minimise waste from Private Label products, while continuing to deliver quality products to customers at low prices.

Performance status

Woolworths Limited is a signatory to the National Packaging Covenant and we have committed to working with the Covenant in achieving the Covenant objectives. Our 2007–10 National Packaging Covenant Action Plan, which can be viewed on the National Packaging Covenant’s website at www.packagingcovenant.org.au, outlines the actions that we have already carried out to minimise packaging waste and sets goals for the next three years.

We have introduced reusable plastic crates that carry fresh produce from the supplier to the supermarket shelf and eliminate the requirement for waxed cardboard cartons, string nets, and especially styrofoam plastic boxes. There are currently 1.7 million crates in the pool, with around half a million issued through our produce Distribution Centres each week in Victoria, New South Wales, Queensland and Western Australia, with South Australia and Tasmania coming on line in late 2008. Currently, the reusable crates eliminate the need for 26 million cardboard cartons each year. We have committed to doubling our current pool of reusable crates to 3.4 million. The rollout of new crates was planned for September 2008 but we have experienced delays in manufacturing and plan to commence the rollout in February 2009.

The Sustainable Packaging Alliance (SPA) undertook a packaging review of 43 of our high volume Private Label products in 2007 to help us better understand the status of consumer packaging for our Private Label products and to assist us to work towards adopting more sustainable packaging practices. This is work in progress, as we have over 2,000 Private Label products.
The findings of the review included:

• The ratio of packaging weight to product weight for the sampled products was estimated to be 0.14.
• Approximately 70% of the packaging materials used for these 43 products is considered recyclable and 30% non-recyclable. Non-recyclable materials currently include waxed cardboard, some plastic containers coded 6 and 7 and all plastic films (excluding supermarket shopping bags).
• Review highlighted the challenges around availability of reliable and accurate data in assessing and benchmarking packaging and the need for clear guidelines and streamlined data collection processes for our suppliers.

Challenges in implementation

Plastic bags
Recent years have seen growing public awareness of the environmental impacts of plastic bags. Communities are concerned about issues such as littering, recycling, the length of time it takes bags to break down, and the consequences of the bags getting into waterways where they can cause problems to marine life.

Actions by major retailers in collaboration with government and environmental groups such as Clean Up Australia and Keep Australia Beautiful have led to a 34% reduction in overall plastic bag use and a 45% reduction in plastic bags issued by large supermarkets since 2002. Plastic bags make up only 0.8% of litter and just 3.8% of plastic litter (Source: McGregor Tan Research, 2006). Similarly Nolan-ITU estimated plastic bags accounted for 2% of the litter stream (2002, quoted in Productivity Commission, Waste Management, 2006, p 206).

We have achieved this reduction in plastic bag usage by implementing a policy not to automatically offer customers a plastic bag for purchases of three items or less and offering a range of reusable bags to our customers, including our green bags and blue chiller bags. We sold almost 5.7 million reusable bags in the reporting period, compared with 3.4 million the previous year.

All our supermarkets have plastic bag recycling bins to allow customers to recycle their plastic bags as part of the shopping trip.

While the initiatives outlined above have contributed to the effort to reduce plastic bag use, shifting consumer attitudes to break old habits remains an ongoing challenge for retailers and government.

Biodegradable and compostable plastics
Customers and other stakeholders often ask why we don’t replace HDPE plastic bags and other plastic packaging with biodegradable alternatives. Typically, biodegradable or compostable plastics are made from starch such as corn or potato, which means that increased demand for these bags will put more pressure on global food production and food supply security.

The different types of degradable plastics on the market can also be confusing to customers who may have difficulty distinguishing between degradable, biodegradable and compostable packaging and how these products break down in different situations.

For example, “oxodegradable” bags are degradable under specific conditions that are typical of commercial composting facilities. These bags are not intended for use in home composting. They break down into smaller pieces and cause more litter and can be just as environmentally damaging as non-degradable bags if not properly disposed of.

Woolworths will continue to follow research and development in this area closely, but we think it is more effective to focus our efforts on driving behaviour change and encouraging people to remember to bring their reusable bags each time they shop.

Regulatory landscape
At the 16th meeting of the Environment Protection and Heritage Council (EPHC) in Melbourne on 17 April 2008, Australian environment ministers and their counterparts from New Zealand and Papua New Guinea discussed key environmental challenges relating to climate change, water and waste management, including plastic bags. After reviewing research outcomes and costs and considering a range of options, the ministers decided not to seek to universally ban or place a charge on plastic bags at this time.

The EPHC agreed that the most valuable course of action would be to convene a high-level government-industry working group to identify additional ways for retailers to increase the voluntary uptake of “green” reusable bags and reduce the use of plastic bags. The working group is due to report back in November 2008.

Following the EPHC meeting, the South Australian Government announced it would ban HDPE single use plastic bags from January 2009 and the Victorian Government announced its intention to trial a plastic bag levy.

Woolworths prefers the introduction of a plastic bag levy to drive consumer behaviour change rather than an outright ban. Together with other major retailers, the Australian National Retailers Association (ANRA) and the Victorian Government, we have formed a working group to trial the effectiveness of a plastic bag charge in Victoria. The outcome of this trial will help inform EHPC in its future discussions about the best approach for reducing plastic bag use.

The Victorian trial, ran from 18 August to 14 September 2008, saw a 10 cent government and industry charge on plastic checkout bags from Coles, Safeway and IGA in the Fountain Gate area, and in Warrnambool and Wangaratta. Sixteen supermarkets across the three locations participated in the trial.

Any profits raised from the trial levy will be donated to environmental projects agreed on by the Victorian Government and ANRA.

Designate Reporting © 2008