Policy and Planning for Sustainable Development - Woolworths Case Study

This document discusses Woolworths' sustainability strategy and policy for sustainable development. It covers their actions, metrics to determine success, and stakeholder interests. The document also includes a discussion on the need for sustainability strategy in the retail sector and the process to develop a sustainability strategy. The case study is relevant to the subject of policy and planning for sustainable development.

Running head: POLICY AND PLANNING FOR SUSTAINABLE DEVELOPMENT
POLICY AND PLANNING FOR SUSTAINABLE DEVELOPMENT
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POLICY AND PLANNING FOR SUSTAINABLE DEVELOPMENT
Table of Contents
Introduction......................................................................................................................................2
Woolworths’ Business Operations..............................................................................................2
Discussion........................................................................................................................................3
Woolworths Australia’s need for sustainability strategy.............................................................3
Process to develop the sustainability strategy of Woolworths....................................................4
Woolworths Stakeholders’ Interest in Improved Sustainability Program...................................6
Draft of Woolworths’ Sustainability policy................................................................................6
Actions Woolworths needs to undertake in order to implement the sustainability strategy.......9
Metrics to determine success of Woolworths’ sustainable strategy..........................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
Woolworths’ Business Operations
The primary functions of Woolworths begin by establishing a proficient retail team that is
responsive to its clientele, team associates, suppliers and other stakeholders. In the course of
Woolworths’ “Voice of the Customer programme” across its products, the organization’s store
teams as well as Support Office receive constant response and feedback from its clientele
(Woolworthsgroup.au 2019). This implies that the team efficiently focuses on improving its
strategies and shopping experience for customers. Operating as one of Australia’s supermarket
giants and creating significant difference in protecting setting for upcoming generations,
Woolworths has implemented inclusive action in reducing ecological impact and develop into a
sustainable retailer (Woolworthsgroup.au 2019). On the other hand, the company is aimed to
reduce over 25% in carbon emissions per carton distributed by Woolworths-owned trucks by
2020. Reports of Cheng, Green and Ko (2014) have revealed that Woolworths has been highly
committed to eliminate advertising plastic straws and eliminate plastic packaging in fruit and
vegetables. The company has further introduced latest reusable shopping bag, amongst the
grocery’s list of sustainability projects in Australia. Furthermore, Woolworths has established
new Packaging Coalition Roundtable collaborating with government, administration, NGOs as
well as decisive industry partners such as Australian Packaging Covenant , Nestlé, Unilever,
Simplot and VISY to seek strategies for achieving a circular economy in Australia.

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Discussion
Woolworths Australia’s need for sustainability strategy
In retail sector, a small division of natural resource use along with successive impacts on humans
and the environment tends to takes place in direct operations. As a result, sustainability strategy
initiatives of renowned retailers vary extensively, specifically from a focus on energy efficiency
in direct operations, to providing awareness of consumer choices as well as focusing on global
issues in the supply chain related to deforestation (Morioka, Evans and de Carvalho 2016).
It is imperative for leading retailers like Woolworths to consider sustainability as doing
justifiable things as well as sincerely implementing strategies to build good sense of business.
According to Methner, Hamann and Nilsson (2015), it is important for Woolworths to execute
their superior efforts and apply right methods and approaches intended for sustainable strategy
by involving sustainability process in all its stores across the Australian region. Furthermore,
underlying factors to which Woolworths needs to implement a strategy for environmental
sustainability relies on the environmental concern between the communities and increased level
of awareness and knowledge of consumers regarding environment behavioural approach of an
organization (Woolworthsgroup.au 2019). Moreover, Woolworths has aimed to improve its
customer satisfaction by offering them with convenient and competent services. Naidoo and
Gasparatos (2018) have noted that as the expectations on corporate responsibility amplifying,
transparency has been gaining utmost prominence. Thus, major companies like Woolworths
must identify the need to act on sustainability.

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Process to develop the sustainability strategy of Woolworths
An effective initiative begins with sustainability goals. Any sustainability strategy must
be organized as business goals aligned to organizational key strategy and informed by
stakeholders. Høgevold et al. (2015) have stated that sustainability goals must harmonize with
the company and stimulate commitment and dedication from leaders and senior executives.
Retail Sustainability Strategy
Source: Cheng, Green and Ko (2014)
Team Building

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Effective sustainability leadership must engage people from all levels, all units, as well as
all geographic sites. At this juncture, communications and HR departments are identified as
decisive entities for involving employees. Other retailers have emphasized on such an
engagement to communicate sustainability goals and performance, set up digital platforms for
employees to propose ideas and strategies and further to establish teams that proficiently offer
on-the-ground advice to the corporate sustainability function (Evans and Forth 2015).
Furthermore, Woolworths being a supermarket giant in Australia must involve all its external
stakeholders and notify sustainability priorities, and must focus on point-of-purchase consumer
culture and knowledge along with marketing campaigns.
Understand the Baseline
Epstein (2018) has noted that retailers across the world like Walmart and Aldi have
developed sustainability strategy initiatives to understand the baseline for modifying or
developing any approaches. According to authors, organizations at this stage must be aware of
technologies required to evaluate and measure operations.
Establish Vision, Mission and Goals
Following to the understanding of baseline, these retailers have understood the need to
efficiently summarize corporate sustainability visualization and explain sustainability
undertaking and further establish monthly milestone objectives pursuant to the outlined
visualization as well as undertaking.
Decide on Sustainability Strategies

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Once vision, undertaking, and goals are approved and arranged, it is vital to consider
inventiveness in order to achieve your goals. At this stage, organizations have taken into
consideration the goal of reducing energy use. Golding et al. (2017) have noted that at this stage
must evaluate a range of technology solutions, assessing equipment retrofitting alternatives as
well as taking into account the costs related to regulatory maintenance schedules.
Woolworths Stakeholders’ Interest in Improved Sustainability Program
Woolworths with its energy efficiency programs is dedicated in reducing its use of plastic
packaging. Such a strategy will aid its wide range of customers and suppliers to provide
knowledge regarding on sustainable consumption and lifestyles along with substantial
information through standards as well as labels and involving in sustainable public procurement,
among others. Meanwhile, Epstein (2018) has noted that Woolworths purposed sustainable
sourcing would aid with prospects opportunities for suppliers to implement sustainable farming
methods along with superior working conditions that will help to safeguard the environment.
Moreover, the company has been committed to efficiently source 100% of paper, squash as well
as timber products from certified or recycled sources by 2020. Furthermore, individuals in recent
times show high inclination to be associated with the constructive specifically younger
generations who are nurtured on healthy diet of environmental protection knowledge. Laszlo and
Zhexembayeva (2017) have noted that as consumers or employees avoid being associated with
companies implicated in ecological disasters and social welfare disgrace, engaging to improved
sustainability programs can aid them attain reputation, competence and importance of
responsibility towards the society and environment.

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Draft of Woolworths’ Sustainability policy
Commitments
We, at Woolworths have major commitment and sustainable targets are to reduce over
50% carbon release on probable growth levels by 2019 by upholding 2007 levels. Furthermore,
we are committed towards zero food waste in the all-purpose waste stream by 2019 in places
where composting facilities are obtainable in addition to 200 million litres of water to be saved
every year.
With this commitment in consideration we will:
 Strive to continually enhance its environmental performance by regularly assessing its
activities as well as policy and further establishing new sustainability targets to reduce
any critical environmental impacts.
 We have efficiently aimed for introducing environmental friendly stores or green stores.
Green Stores
 Furthermore, air conditioning and lighting tends to contribute to our greenhouse emission
strategy. We have been incessantly seeking for pioneering and commercially realistic
solutions in order to reduce its environmental footprint.
 We have invested in an array of new technologies that reduce energy usage and
connected greenhouse gas emissions, water usage as well as waste (Carey et al. 2016).
Australian retail supermarket giant has established a target for its new stores; where all
new stores are formed with sustainable designs and anticipate have minimum 25%
reduction in carbon emissions per square metre of the store.

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Waste and Recycling
 We operating as leading seller of fresh food as well as grocery items have the
competence to handle waste starting from the packaging of food items or time of delivery
it used by date or cannot are sold intended for other vital reasons.
 We have been dedicated in eradicating food ravage that is provided to landfill by 2015.
 We Woolworths have initiated a range of sustainable programs to reduce food waste.
Reports of Sullivan and Gouldson (2017) have revealed that with the introduction of the
Fresh Food Rescue Program, Woolworth’s stores aim to collaborate with restricted
charities as well as Food bank to give out edible groceries which cannot be sold because
of damaged packaging.
 We at Woolworths through this initiative aim to donate an adequate amount of food to
produce over 2 million meals for public in need. In addition to this, recycling is identified
as another significant factor of Woolworths’ waste reduction strategy. As per reports of
Cheng, Green and Ko (2014), in 2017, Woolworths has recycled over 187,500 tonnes of
cardboard along with more than 8,500 tonnes of plastic wrap.
 Our company is highly dedicated in encourage its customers to recycle their eco-friendly
bags while shopping instead of focusing on plastic bags.
 Furthermore, our sustainability strategy states that customers who tend to prefer plastic
bags, the company will offer them a synthetic recycling bin at the front of the
departmental stores.
Employee Participation

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 All the supermarket stores owned comprises of an Eco Ambassador. According to Evans
and Forth (2015), Eco Ambassadors collaborates with all Woolworths’ employees in
order to support sustainability practices at employment as well as at home. However, a
number of these practices are utilizing a lesser amount of energy, saving water and
wasting less and committed to recycling further (Naidoo and Gasparatos 2018).
 The workforce of Woolworths realize that by making a small effort every day such as
conserving power by switching off lights and using recycling process appropriately can
result to a significant difference to the environment.
Actions Woolworths needs to undertake in order to implement the sustainability
strategy
Suitable Point of Policy Implementation
Establishing the Suitable Point of Policy Implementation signifies that Woolworths would
require sourcing its business in the idea of sustainability. Thus, the company must be competent
to create value and assessment for employees, customers and clients. Morioka, Evans and de
Carvalho (2016) have noted that every organization requires recognizing its business goals,
values and objectives aligning them with the preeminent sustainable strategies. Drawing
relevance to these actions, it will be possible to create an operating plan on sustainable
development. The rationale for planning such sustainable development has been grounded in
following principles related to observation of the legislation in relation to the theme, to avoid any
violation of the rules which regulate Woolworths along with increase the development and
growth of the business.
Measure Opportunities and risks

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POLICY AND PLANNING FOR SUSTAINABLE DEVELOPMENT
The following step must be focusing on analysis. At this juncture, Woolworths can perform a
thorough analysis on market avenues and opportunities in addition to risks for a business linked
to any social development. According to Cheng, Green and Ko (2014), it is highly imperative to
know the way an organization can move toward the concept of sustainability, which are
recognized as the social as well as environmental developments in addition to the ways in which
these could turn into a possible risk for the business values.
Create your sustainable retail strategy (for 4-5 years)
With a purpose of long term sustainability strategy, Woolworths must set up a general strategic
framework in order to formulate value for the business, consumers as well as clients. Thus,
Woolworths must set up a particular specific goal and taken into consideration the entire process
to properly accomplish it. At this juncture, it is important for the company to make it transversal
to Woolworths’ organizational structure (Hörisch, Freeman and Schaltegger 2014). Furthermore,
for long term sustainable strategy of 4-5 years, Woolworths must make its team get adapted with
company’s new strategy. In addition to this, Woolworths must consider and create additional
strategic options as well as exploration lines for auxiliary analysis to sustain its growth and
innovation.
Metrics to determine success of Woolworths’ sustainable strategy
Energy Use- Source Energy Use is identified as one of the primary holistic measurements to
measure the success of sustainable strategy. An SEU measurement involves an extensive
evaluation that marks energy consumption at each of the physical sites, energy diffusion, and
release in addition to production losses (Laszlo and Zhexembayeva 2017). Once, Woolworths

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POLICY AND PLANNING FOR SUSTAINABLE DEVELOPMENT
gains the awareness of its rates of energy usages it can start evaluating with its competitors like
Coles and Aldi.
Supply Chain Waste- Supply chain waste is considered as an issue in retail sectors. Woolworths
tend to deal with waste starting from expired products, spoiled supplies to customer
consumption. As a result, the primary action in measuring the company’s supply chain waste is
to give an immediate look at what each stage of production appears to be for its facility ( Akbar
and Ahsan 2014). Woolworths can initiate this step by starting at the sourcing phase, then
gradually progressing towards the assembly line, examine the business period between the
purchaser and store and finally at the customer’s final experience.
Conclusion
Sustainability has been identified as a critical challenge for retailers. However,
reassuringly renowned organizations such as Woolworths have been developing progressive
sustainability policies to maintain its growth and act environmentally responsible. Thus, it is
evident to note that sustainability has developed as a megatrend and is going to sustain for ages
to come.

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References
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retail firms. International Journal of Managerial and Financial Accounting, 6(4), pp.375-396.
Carey, R., Caraher, M., Lawrence, M. and Friel, S., 2016. Opportunities and challenges in
developing a whole-of-government national food and nutrition policy: lessons from Australia’s
National Food Plan. Public health nutrition, 19(1), pp.3-14.
Cheng, M.M., Green, W.J. and Ko, J.C.W., 2014. The impact of strategic relevance and
assurance of sustainability indicators on investors' decisions. Auditing: A Journal of Practice &
Theory, 34(1), pp.131-162.
Cheng, M.M., Green, W.J. and Ko, J.C.W., 2014. The impact of strategic relevance and
assurance of sustainability indicators on investors' decisions. Auditing: A Journal of Practice &
Theory, 34(1), pp.131-162.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
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Høgevold, N.M., Svensson, G., Klopper, H.B., Wagner, B., Valera, J.C.S., Padin, C., Ferro, C.
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