Retailers Perspective on Carbon Tax
Holly Angell
Head of Energy & Sustainability
Agenda
•Quick background on Coles
•Commercial Sustainability
•Carbon Landscape
•Energy Efficiency investments
•What’s next?
•Recycling & Packaging Focus
•Questions
Some facts about Coles
• Over 2,200 stores
• 102,000 team members
• 18 million customers each week
• Coles Supermarkets
– 744 stores across Australia
• Coles Liquor
– 794 Liquorland, 1st Choice &
Vintage Cellars stores
– 94 hotels (76 in Queensland)
• Coles Express
– 625 convenience stores
Coles was going backwards in 2008
• Not price competitive
Value
Fresh
Range
Efficiency
Service
Culture
• Poor quality fresh offer
• Not focused on customer needs
• Bureaucratic culture
• Years of under investment
• Not a good corporate citizen
Store
Formats
Capability
Infrastructure
Our Circle for Success
Better Value
Coles Brand Positioning
Fit for purpose
As good as leading
brand
Finest – As good as
specialist brands
Working Smarter Stores
• Coles carbon emissions in decline since 2009
despite 11 % sales growth
• FY11 Greenhouse Gas emissions – 2,523,808
Tonnes CO2e ( Source: 2011 Wesfarmers
Sustainability Report)
Coles Energy Consumption
Where Supermarkets use Energy
BOH 1%
Prep areas & Ovens 8%
Fridge and Coldrooms 60%
Lighting 15%
POS/Checkouts 1%
HVAC
15%
Serious about our Energy Costs and Efficiency
• Coles has looked at the energy efficiency of refrigeration and
lighting systems for over 15 years
• Increasing energy costs (mainly driven by Network cost
increases) have ramped up our energy efficiency CAPEX
expenditure in the last few years
• The impending Carbon tax has further ramped up our energy
efficiency program
• Energy Efficiency is a business decision competing for CAPEX
and OPEX along with all other parts of the business.
Coles Energy Efficiency Initiatives
Refrigeration and Air-conditioning
• Refrigeration re-commissioning
• Manual Nightblinds
• Anti-condensate controls for glass
door freezers
• HVAC re-commissioning & VSD’s on
supply air fans.
Coles Energy Efficiency Initiatives
Lighting
• Lighting controls linked to time schedules for non-trading levels
and linked to security alarm on store closure
• LED light fittings to upright freezer cases and refrigeration
cases
• Review of lighting effectiveness – Are we being deliberate
enough with our light?
Coles Energy Efficiency Initiatives
Coles Energy Efficiency Initiatives
Energy Efficiency in New Store Design
• First Australian supermarket retailer to develop a Greenstar
rating tool with Green Building Australia
• New energy reporting tools:
“If you can’t measure it you can’t manage it!”
Coles Energy Efficiency Initiatives
Voltage Optimisation (or Voltage Power Optimisation)
• First major user of the technology on scale in Australia
• Used extensively in UK, Europe and Japan
• Trialled two major suppliers of the technology before deciding
on one for roll-out
• Advantage; one technology that affects the main meter
supply/whole bill rather than components of the supermarket
energy use
• Site voltage logging essential to ensure your site and
equipment is suitable to get the payback from VO
• Be aware as not all VO units the same
Energy Efficiency Next Steps
• Further investment in the Energy Efficiency for FY13
• Team member engagement at store level
• Continue to leverage the partnership with CITY FM to drive
energy savings
• Using reporting systems for internal reporting requirements;
Zone Finance Managers, Store managers, Regional and Zone
Managers
• Looking at renewable energy; but remember for the
foreseeable future:
“Energy Efficiency is the name of the game”
Recycling Plastic Bags
• Supermarket partner with Landcare
to donate 5 cents per green bag sold
to more than 1,300 school gardens
• First Australian retailer to trial
recycling of plastic packaging in
Victoria and donate recycled material
as furniture to schools
Reducing Packaging Waste
• Coles Spring Water now up to 40 per cent
lighter across three product sizes - will
save 187,000 kgs of plastic over a year
due to new bottling process
– Bronze award winner in the Sustainability Category
of the 2010 Australian Packaging Awards
• Coles brand products now being assessed
against Sustainable Packaging Guidelines
• A new database will help our product
technologists address poor packaging
and launch new products that meet the
packaging guidelines
Stopping Food Waste
• Foodbank & SecondBite are our key
food donation partners
• First supermarket to donate more
than 1 million kilos of packaged food
products in a year to Foodbank
• 2.5 million kgs of fresh food to be
rescued and donated to SecondBite
over next two years, providing 5
million meals
Thank you