The first step was to measure. Greenhouse gas emissions are grouped under the names Scope 1, Scope 2 and Scope 3.
- Scope 1 are the emissions that come directly from the business. We don’t own a vehicle fleet and lease our stores so our Scope 1 emissions are limited.
- Scope 2 covers indirect energy emissions like the electricity we purchase from power companies for our store network, distribution centres and offices .
- Scope 3 are emissions that occur in our supply chain beyond our organisational boundary including logistics like employee travel and transport of stock.
In terms of our organisational footprint, the biggest impact comes from transporting our products, so we track the emissions of all our shipments from port to port. Tracking this data will help us to streamline our operations, reduce our carbon footprint, and reduce our costs.
Our organisational carbon footprint in Australia is much higher than in New Zealand. This is a reflection of our larger Australian operational footprint and Australia’s predominantly coal-based energy supply compared to New Zealand, where approximately 80% is renewable.
In addition to its targeted offsetting strategy, we have been tracking its carbon emissions for close to a decade and even through periods of strong global growth, we have managed to reduce our emissions total by 9%, and 34% per store on 2012 levels through installing solar power, Green Star buildings and energy efficiency projects.