WESFARMERS SUSTAINABILITY REPORT 2018

Ethical sourcing and product safety

Bunnings continued to work closely with its suppliers to strengthen sourcing practices throughout the year.

While Bunnings' direct supplier base increased by 4.3 per cent, 100 per cent were screened through their Ethical Sourcing Program.

During the year, Bunnings enhanced its Code of Conduct by expanding from product suppliers to service providers. The business also conducted a review into green life supplier labour contract hire, cleaning services, and commenced work on raw materials such as stone.

The business began to map out its quarried supply chain as well as conduct a trial on contracted cleaning businesses across the network. Opportunities were discovered to strengthen cleaning contracts and enhance visibility of the raw material supply chain. These initiatives will continue in the next financial year. 

All direct sourcing suppliers to Bunnings are screened by our Ethical Sourcing program utilising a country risk matrix.  Manufacturers from low risk origins are required to complete a risk based self-assessment while medium and high risk manufacturers are required to register on Sedex and complete an ethical audit. 

During the year, Bunnings became a supporting signatory to the Australian Professional Social Compliance Auditors (APSCA) scheme, a proactive initiative which provides a standardised certification, training and professional standards for social compliance auditors globally.

Bunnings also continued to work with the European DIY Retailers Association (EDRA) and Global Home Improvement Network (GHIN) DIY platform. The main focus was on mutually recognised supplier audits and coming together with opportunities to share best practice and tackle emerging supply chain issues.

Bunnings is confident that more than 99 per cent of timber products are confirmed as originating from low risk sources including plantation, verified legal, or certified responsibly sourced forests. Within that, more than 79 per cent of its total timber products are sourced from independently certified forests or sourced with demonstrated progress towards achieving independent certification, such as that provided by the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC).  Bunnings continued to collaborate with environmental non-government organisations on raising awareness of responsibly sourced timber and was the partner for FSC forums in Melbourne and Auckland.

Bunnings also continued to proactively engage with suppliers to ensure adherence to product safety standards. As part of this, Bunnings conducts regular product audits to ensure conformance with relevant mandatory standards, and undertakes independent safety tests on selected products to confirm compliance to safety standards and customer expectations.

Bunnings remains focused on continuing to work with our supply chains to, improve manufacturing quality assurance processes,  monitor product compliance in accordance with changing regulatory requirements and strengthening risk controls around storage of hazardous chemicals.