WESFARMERS SUSTAINABILITY REPORT 2017

GRI Content Index

This report has been prepared in accordance with the GRI Standards: Core option.

GRI StandardDisclosureURL(s)/Direct answerOmission
Part OmittedReasonExplanation
GRI 101: Foundation 2016
General Disclosures
GRI 102: General Disclosures 2016 Organizational profile
  102-1 Name of the organization  About Wesfarmers      
  102-2 Activities, brands, products, and services  About Wesfarmers      
  102-3 Location of headquarters  About Wesfarmers      
  102-4 Location of operations  About Wesfarmers      
  102-5 Ownership and legal form  About Wesfarmers      
  102-6 Markets served  About Wesfarmers      
  102-7 Scale of the organization  About Wesfarmers      
  102-8 Information on employees and other workers

 About Wesfarmers

Our data

     
  102-9 Supply chain

 Suppliers

Coles

Bunnings Australia and New Zealand

Bunnings United Kingdom and Ireland

Kmart

Target

Officeworks

Wesfarmers Chemical, Energy and Fertilisers

Wesfarmers Industrial and Safety

Wesfarmers Resources

     
  102-10 Significant changes to the organization and its supply chain  

Suppliers

Coles

Bunnings Australia and New Zealand

Bunnings United Kingdom and Ireland

Kmart

Target

Officeworks

Wesfarmers Chemical, Energy and Fertilisers

Wesfarmers Industrial and Safety

Wesfarmers Resources

     
  102-11 Precautionary Principle or approach While we do not specifically refer to the precautionary principle, we have a well-established risk management approach and cover this in relation to climate change resilience.      
  102-12 External initiatives

 UN Global Compact

Sustainable Development Goals

The UN Guiding Principles on Business and Human Rights Framework

     
  102-13 Membership of associations

UN Global Compact

Non-government organisations

     
  Strategy
  102-14 Statement from senior decision-maker Managing Director's Welcome       
  102-15 Key impacts, risks and opportunities

Managing Director's Welcome 

Ethical sourcing and human rights

     
  Ethics and integrity        
  102-16 Values, principles, standards, and norms of behavior

 Managing Director's Welcome 

Ethical sourcing and human rights

Governance

     
  Governance
  102-18 Governance structure Governance      
  102-20 Executive-level responsibility for economic, environmental, and social topics Our sustainability reporting      
  102-21 Consulting stakeholders on economic, environmental, and social topics Stakeholder engagement      
  102-22 Composition of the highest governance body and its committees Governance      
  102-23 Chair of the highest governance body Governance      
  102-24 Nominating and selecting the highest governance body Governance       
  102-25 Conflicts of interest Governance       
  102-29 Identifying and managing economic, environmental, and social impacts About this report      
  102-31 Review of economic, environmental, and social topics About this report      
  102-32 Highest governance body's role in sustainability reporting About this report      
  102-33 Communicating critical concerns Stakeholder engagement      
  Stakeholder engagement
  102-40 List of stakeholder groups Stakeholder engagement      
  102-41 Collective bargaining agreements Workplace relations      
  102-42 Identifying and selecting stakeholders Stakeholder engagement       
  102-43 Approach to stakeholder engagement Stakeholder engagement       
  102-44 Key topics and concerns raised Stakeholder engagement       
  Reporting practice
  102-45 Entities included in the consolidated financial statements About Wesfarmers      
  102-46 Defining report content and topic Boundaries Materiality process      
  102-47 List of material topics Our material issues      
  102-48 Restatements of information Our data      
  102-49 Changes in reporting About this report      
  102-50 Reporting period About this report      
  102-51 Date of most recent report About this report      
  102-52 Reporting cycle About this report      
  102-53 Contact point for questions regarding the report Feedback      
  102-54 Claims of reporting in accordance with the GRI Standards GRI Standards      
  102-55 GRI content index GRI Standards      
  102-56 External assurance

Independent assurance statement 

Governance

     
GRI StandardDisclosureURL(s)/Direct answerOmission
Part OmittedReasonExplanation
Material Topics
200 Series (economic topics)
Economic Performance
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Our material issues      
  103-2 The management approach and its components About this report      
  103-3 Evaluation of the management approach About this report      
GRI 201: Economic Performance 2016 201-1 Direct economic value generated and distributed Community contribution      
Anti-competitive Behavior
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Suppliers      
  103-2 The management approach and its components Suppliers      
  103-3 Evaluation of the management approach Suppliers       
GRI 206: Anti-competitive Behavior 2016 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices Suppliers     Not applicable There were no material legal actions for anti-competitive behaviour, anti-trust, and monopoly practices during the year.
300 series (Environmental Standards)
Energy
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Climate change resilience      
  103-2 The management approach and its components Climate change resilience      
  103-3 Evaluation of the management approach Climate change resilience       
GRI 302: Energy 2016 302-1 Energy consumption within the organization Climate change resilience       
  302-3 Energy intensity Climate change resilience       
Water
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Waste and water      
  103-2 The management approach and its components Waste and water      
  103-3 Evaluation of the management approach Waste and water       
GRI 303: Water 2016 303-1 Water withdrawal by source Waste and water       
  303-3 Water recycled and reused Waste and water       
Emissions
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary

Climate change resilience 

Reporting carbon emissions

     
  103-2 The management approach and its components

Climate change resilience  

Reporting carbon emissions

     
  103-3 Evaluation of the management approach

Climate change resilience  

Reporting carbon emissions

     
GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions

Climate change resilience  

Reporting carbon emissions

     
  305-2 Energy indirect (Scope 2) GHG emissions

Climate change resilience  

Reporting carbon emissions

     
  305-3 Other indirect (Scope 3) GHG emissions

Climate change resilience  

Reporting carbon emissions

     
  305-4 GHG emissions intensity

Climate change resilience  

Reporting carbon emissions

     
  305-5 Reduction of GHG emissions

Climate change resilience  

Reporting carbon emissions

We have not disclosed the amount or percentage of GHG emission reductions brought about directly through any reduction initiatives at a group or divisional level. Information unavailable We will look to report this information in future years.
Effluents and Waste
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Waste and water       
  103-2 The management approach and its components Waste and water       
  103-3 Evaluation of the management approach Waste and water       
GRI 306: Effluents and Waste 2016 306-1 Water discharge by quality and destination Waste and water  Water discharge by quality and destination has not been outlined  Not applicable This is not material 
  306-2 Waste by type and disposal method

Waste and water 

WesCEF recorded 418 tonnes of hazardous waste during the year. 

     
Environmental Compliance
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Climate change resilience        
  103-2 The management approach and its components Climate change resilience       
  103-3 Evaluation of the management approach Climate change resilience        
GRI 307: Environmental Compliance 2016 307-1 Non-compliance with environmental laws and regulations

Climate change resilience  

WesCEF potential non-conformance notice

Coles

There were 31 formal regulator contacts relating to environmental matters (including noise). Formal contacts are those where formal correspondence has been issued alleging a breach. Below are the matters of note.

  • During a risk assessment at the Erskine Park Retail Ready facility in July 2016, the EPA identified that Retail Ready did not have a pollution incident response management plan in place that complied the Protection of the Environment Operations Act 1997. The EPA invited Retail Ready to show cause why it should not take further action. A response was submitted, providing a compliant plan and reasons why further action should not be taken. The EPA subsequently issued a formal warning that should non-compliance re-occur then it will consider further enforcement action.
  • In May 2017, a formal warning was issued by to NSW Environmental Protection Agency to Coles Express, relating to the failure to install Vapour Recovery 2 (VR2) at 13 remaining sites in designated zones in NSW by the deadline required under the Regulations. Under the Alliance, Viva as controller of the UPSS is responsible to install VR2 systems as required. Viva confirmed that due to industry wide contractor availability, the remaining 13 installs will be complete by December 2017. Express have requested an exemption until Dec 2017 for completion of works. As at 20/7/17, response has not been received.

Wesfarmers Resources

  • One EHP fine of $12,190 (Retention Dam 9 overflow - contravention of EA Condition C2).

     
400 series (Social Standards)
Employment
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary People development      
  103-2 The management approach and its components People development       
  103-3 Evaluation of the management approach People development       
GRI 401: Employment 2016 401-1 New employee hires and employee turnover People development  Employee turnover has not been broken down by age group and region  Not applicable Due to the breadth and diversity of our businesses, this data is not gathered across the Group. We disclose employee turnover by gender. 
Labor/Management Relations

GRI 103: Management

Approach 2016

103-1 Explanation of the material topic and its Boundary People development       
  103-2 The management approach and its components People development       
  103-3 Evaluation of the management approach People development       
GRI 402: Labor/Management Relations 2016 402-1 Minimum notice periods regarding operational changes

People development 

More than 83 per cent of our workforce is covered by collective agreements which stipulate minimum number of weeks' notice provided. This varies depending on individual circumstances for employees not covered by collective agreements.

     
Occupational Health and Safety
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Safety      
  103-2 The management approach and its components Safety       
  103-3 Evaluation of the management approach Safety       
GRI 403: Occupational Health and Safety 2016 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities Safety   

Breakdown of LTIFR, TRIFR and workers compensation claims by gender. The region is considered Australia and New Zealand unless otherwise stated.

Occupational diseases rate and absentee rate.

Safety data for fixed term contractors in the supply chain where the majority of the team members employed are contractors (e.g. distribution centres where we hire team members through employee hire programs), however we do not include contractors who are engaged in maintenance and consultancy work.

 Not applicable Due to the breadth and diversity of our businesses, this data is not gathered across the Group. We have no reason to believe that safety data varies by gender.
Training and Education
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary People development      
  103-2 The management approach and its components People development       
  103-3 Evaluation of the management approach People development       
GRI 404: Training and Education 2016 404-2 Programs for upgrading employee skills and transition assistance programs People development       
Diversity and Equal Opportunity
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Diversity      
  103-2 The management approach and its components Diversity       
  103-3 Evaluation of the management approach Diversity       
GRI 405: Diversity and Equal Opportunity 2016 405-1 Diversity of governance bodies and employees Diversity Governance      
Non-discrimination
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Diversity      
  103-2 The management approach and its components Diversity       
  103-3 Evaluation of the management approach Diversity       
GRI 406: Non-discrimination 2016 406-1 Incidents of discrimination and corrective actions taken Diversity  Incidents of discrimination and corrective actions taken  Not applicable Due to the breadth and diversity of our businesses, this data is not gathered across the Group.
Freedom of association and collective BARGAINING     
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Workplace relations      
  103-2 The management approach and its components Workplace relations       
  103-3 Evaluation of the management approach Workplace relations       
GRI 407: Freedom of Association and Collective Bargaining 2016 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

Workplace relations 

Ethical sourcing

     
Child Labor
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Ethical sourcing       
  103-2 The management approach and its components Ethical sourcing       
  103-3 Evaluation of the management approach Ethical sourcing       
GRI 408: Child Labor 2016 408-1 Operations and suppliers at significant risk for incidents of child labor Ethical sourcing       
Forced or Compulsory Labor
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Ethical sourcing       
  103-2 The management approach and its components Ethical sourcing       
  103-3 Evaluation of the management approach Ethical sourcing       
GRI 409: Forced or Compulsory Labor 2016 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Ethical sourcing       
Human Rights Assessment
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Ethical sourcing       
  103-2 The management approach and its components Ethical sourcing       
  103-3 Evaluation of the management approach Ethical sourcing       
GRI 412: Human Rights Assessment 2016 412-2 Employee training on human rights policies or procedures Ethical sourcing  Percentage of employees trained  Not applicable Given the breadth of our businesses, human rights training is not relevant to all our employees so a percentage is not meaningful.
Local Communities
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Community contribution      
  103-2 The management approach and its components Community contribution       
  103-3 Evaluation of the management approach Community contribution       
GRI 413: Local Communities 2016 413-2 Operations with significant actual and potential negative impacts on local communities

 

Potential non-conformances  

     
Supplier Social Assessment
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Ethical sourcing       
  103-2 The management approach and its components Ethical sourcing       
  103-3 Evaluation of the management approach Ethical sourcing       
GRI 414: Supplier Social Assessment 2016 414-2 Negative social impacts in the supply chain and actions taken Ethical sourcing       
Public Policy
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Stakeholder engagement       
  103-2 The management approach and its components Stakeholder engagement       
  103-3 Evaluation of the management approach Stakeholder engagement       
GRI 415: Public Policy 2016 415-1 Political contributions Governance       
Customer Health and Safety
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Safety       
  103-2 The management approach and its components Safety        
  103-3 Evaluation of the management approach Safety        
GRI 416: Customer Health and Safety 2016 416-1 Assessment of the health and safety impacts of product and service categories

Safety  

Target

Button batteries - Target has lead in implementing industry initiatives related to battery safety including providing the ACCC Battery Controlled Fact Sheet inside the Target branded coin cell/button cell battery pack, working to develop a common Wesfarmers QA perspective, presenting at an Australasian College of Emergency Medicine forum and participating in the ACCC facilitated industry working group tasked with developing an Industry Code for Button Battery Safety.

Furniture and Television Tip Over prevention – The ACCC has introduced a National Toppling Furniture and Television Safety Strategy. In August 2016 a 3 year old Victorian boy died as a rest of an unsecured bookcase, as well as numerous serious injuries resulting in hospital admissions estimated in total approximately 300 per year.

Target is committed to fully complying with the Best Practice Guide for Furniture and Television Tip-Over Prevention prepared by the National Retailers Association. The guide will include:

1. Wall anchors to be included for all risk products.
2. Consumer advice both at point of sale and on risk products to fully inform them of the dangers of Furniture and TV tip-overs. 
3. Risk products will require warnings, anchor instructions and consumer advice.
Target product Safety & Quality manuals will be updated to reflect the new Industry Strategy and Target expects to be fully compliant in early 2018.

Coles

• Quality Attribute Sheet Quality Checks performed on 4,377 products at Store Support Centre.
• Arrival checks conducted nationally across distribution centres for Produce 158,545 checks
• Arrival checks conducted nationally across distribution centres for chilled products –34,415 checks

Coles Surveillance testing program:
• Allergens – 221 checks
• Chemistry – 66 checks
• Imported foods – 2,425 checks
• Microbiology – 3,931 checks
• Residue testing – 38,127 checks
• Organic products (residue testing) – 2,418 checks
• Nutrition Information Panel (NIP) – 233 checks
• Non-food – 29 checks
• Speciation – 40 checks

We are working towards setting targets for the reduction of sodium and sugar across the Coles Brand range. We aim to remove over 100 tonnes of sugar from the Australian food supply in 2018 through a specific reduction strategy in our nutritional snacks range.

We are also working hard to remove sodium from our sausage ranges, reformulating our products while preserving quality and taste for our customers. Sugar and sodium reduction initiatives will continue to improve the nutritional profile of our products across the Coles Brand range.
Coles is also driving initiatives to remove additives from our products. Responding to customer feedback on the use of colours, Coles Brand has removed 28 artificial colours from its products and continues to remove other additives where possible to provide products for our customers which are as natural as possible.

Percentage of product categories Not applicable - a percentage of product categories across the group is not considered a meaningful measure for our business

Health and safety impacts are considered by divisions where relevant but are not measured as a percentage of product categories across the Group.

Marketing and Labeling
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Product safety       
  103-2 The management approach and its components Product safety        
  103-3 Evaluation of the management approach Product safety        
GRI 417: Marketing and Labeling 2016 417-1 Requirements for product and service information and labeling

Product safety  

Country of origin labeling 

Over 100 supply partners have been trained in the Coles Food Manufacturing Supplier Requirements, with 45 supplier sites achieving the highest rates of compliance over the year. All Coles brand suppliers use a web-based product and supplier database which ensures product traceability and strict adherence to quality compliance standards such as declarable allergens, certifications and nutritional information.

Coles continues to actively participate in the Healthy Food Partnership, a Federal Government initiative aiming to encourage Australians to make healthy food choices. Coles provides transparent and clear labelling on Coles Brand products to enable customers to make informed choices.
To support the launch of the Federal Government’s new country of origin labelling scheme, over 300 Coles Brand products now bear the new label to better support transparency of product origin.

We launched SEDEX (Supplier Ethical Data Exchange) to streamline ethical compliance and monitoring, and provide efficiencies to our suppliers. SEDEX facilitates risk assessment and information sharing of social compliance audits to maintaining visibility and drive consistency across our supply chain.

  Not applicable - a percentage of product categories across the group is not considered a meaningful measure for our business

Product labeling is addressed by divisions where relevant but is not measured as a percentage of product categories across the Group. 

Customer Privacy
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary Our businesses      
  103-2 The management approach and its components Our businesses       
  103-3 Evaluation of the management approach Our businesses       
GRI 418: Customer Privacy 2016 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data Our businesses       

GRI 102-54, GRI 102-55