Corporate Responsibility » Sustainability » Environmental Impact

(Information as in Annual Report 2009)

Property development
Respect for the physical environment constitutes one of the pillars of the Group’s business philosophy. Its ability to pressurise developers of centres in which it rents space, is limited, although it insists that, once operational, such a centre be run in an environmentally sensitive manner. Where it undertakes its own developments, it is done in a manner that infringes least on its surroundings. The Group will, as a matter of principle, not buy or develop an environmentally sensitive site nor will it undertake a development that is detrimental to the bio-physical or built surroundings. When it does develop, the full prescribed environmental impact assessment is undertaken under the guidance of an independent environmental assessment practitioner. It consults with the surrounding community throughout the approval process and, where possible, incorporates the reasonable needs and desires of that community in the final design. This same approach applies wherever the Group develops outside the borders of the country even if requirements are far less stringent than in South Africa.

Packaging and Waste Management
Packaging, particularly for fruit and vegetables as well as most other perishables, remains a major cost item as all such material is made from oil derivatives. An ongoing programme is in operation to reduce the use of transit packaging material. Freshmark, the fruit and vegetables procurement division, has for several years now been using recyclable plastic crates instead of wooden ones and cardboard cartons for packing and transporting the bulk of its produce. The division has more than 600 000 plastic crates in constant circulation and will be increasing this number to about 800 000 in the next few years. More and more groceries are now also being sent to stores from the distribution centres in reusable plastic rates. The potential saving in the use of cardboard containers is massive. To manage waste that is generated in stores the individual supermarkets employ the services of waste management companies who remove mostly dry waste and dispose of it according to their own recycling programmes. In most divisions the wet waste is processed in compactors at stores to the point where it meets all municipal requirements for release into the sewer system. Care is taken to ensure no harmful substances find their way into areas surrounding outlets. These actions are supplemented by special waste programmes to dispose of, for instance, cooking oil used for in-store food preparation, which is collected by contractors for the manufacture of soap and candles.

Distribution Strategy
The Group’s actions are increasingly guided by its sustainability policy which is particularly relevant to its centralised distribution strategy. This encompasses various significant environmental and economic benefits such as lower transport emissions, reduced waste production and an enhanced ability to recycle waste effectively. Other elements are a smaller store land-use footprint, reduced retail store energy use and water consumption, and highly effective and efficient distribution centres. The latter is particularly well illustrated in the Centurion distribution centre of which the size is being virtually doubled to a massive volume of approximately 150 000 square m. A facility this size consumes enormous amounts of water and electricity and produces tons of waste. The architects were therefore urged to go beyond standard design norms and create a centre which is not only environmentally sustainable but which would also reduce ongoing operational and maintenance costs. As water is expected to become a more critical issue in future than the present energy shortage, much attention was paid in the design to factors such as the capturing and recycling of rain water and grey water for irrigation and flush toilets; and the installation of low-flow taps and waterless urinals. Energy consumption (and therefore CO2 emissions) is being reduced through design initiatives such as the maximum but controlled use and distribution of natural light; roof monitors incorporating automated louvres with temperature sensors and controls to regulate natural ventilation; energy-efficient air-conditioning and refrigeration systems employing the latest technology, and energy-efficient waste processing and recycling programmes.
Permeable paving allowing direct rain water infiltration and thus the replenishment of ground water will form an integral part of the storm-water design that includes a membrane under the paving to capture and break down pollutants such as oil from trucks and so reduce the risk of water pollution from the site.

Worm-farming/vermiculture
Freshmark, the Group’s fresh fruit and vegetable procuring and distribution arm, recently installed a Vermi (Earthworm) Compositing system, which is a clean, easy and environmentally friendly way to recycle waste into organic compost and vermi tea. The vermi tea (liquid fertilizer) and vermi compost produced by the system are amongst the best fertilisers available and improve soil conditions and the health of the soil and plants. Vermi tea is rich in nutrients and effective micro-organisms, making it a powerful plant tonic that encourages healthy growth and suppresses pathogenic organisms in the soil. Freshmark’s positive step towards helping the environment and meeting the requirements of legislation, institutional obligations and social responsibility.

Energy management
Energy is a managed resource within the Group as it has a direct impact on profitability and environmental sustainability. The Group continues the responsible approach to energy management set out in previous years. Concerns regarding the cost and availability of energy reinforce this approach and the Group is determined to minimise any negative effects it might have on its consumers and shareholders. It remains company policy to select energy efficient equipment and to implement energyefficient systems where practical and viable. The Group endeavours to stay abreast of technological advances and works alongside
suppliers in achieving its goals. In the year under review, more than 30 energy-efficient technologies were initiated and are in various stages of assessment. These technologies focus predominantly on improving the energy efficiency of refrigeration, lighting, heating, ventilation and air-conditioning systems.
Energy efficiency is also an important consideration in the Group’s building and shop fitting specifications. Over the last three years energy efficiency improved by 5.8% as a result of the Group’s energy management programme and brought about a saving of R31 million. The energy saved is enough to power 15 average-sized supermarkets for 12 months. Energy consumption of the Group’s supermarkets is monitored in realtime by an advance energy management system, allowing for rapid identification and resolution of electricity related issues. To ensure customer satisfaction and reduce the risk of wastage in the event of a power failure, all the Group’s supermarkets were equipped with generator sets at a cost of R53 million.

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