Sustainability

Environment

Massmart acknowledges that the climate is changing and part of this change can be attributed to human activities. We recognise that our operations and the products we sell have the potential to contribute to climate change and that we have a responsibility to minimize our own impacts, to adapt to the risks of climate change upon our business and to provide consumers with responsible merchandise choices that limit their impacts.

We survey the environmental practices of key suppliers and gauge the environmental attitudes of our customers.
We engage suppliers about the environmental commitments they can make and we are talking to our marine and timber products suppliers about their capacity to achieve Marine Stewardship and Forest Stewardship Council or similar certification.
We explore partnerships with environmentally progressive suppliers to tackle key environmental concerns – such as an e-waste take back programme with Fujitsu Siemens to reduce electronic waste.
We promote environmentally responsible product choices by running environmentally focused customer promotions on merchandise, with themes such as:
- Recycling
- Energy Efficiency
We recognize that advocacy to suppliers and customers offers significant opportunity to limit the harmful effects of consumerism on the environment. We therefore continue to focus on intensifying environmental advocacy efforts with these stakeholders. This includes surveying the environmental practices of suppliers and increasing the number of Eco-wise merchandise promotions to customers. We are also exploring a number of opportunities, such as partnering with environmental advocacy groups, to build on our existing advocacy efforts.

Environment Scorecard 2012

For a year-on-year comparison click here

Scope 1 and 2 emissions figures are calculated externally by Global Carbon Exchange consultants. Scope 1 emissions relate to direct emissions resulting from Company owned vehicle, generator use and refrigerant gas emissions. Massmart trend data is not available for Scope 1 2008/2009 emissions since this information has historically been reported by calendar rather than financial year.

Scope 2 figures are based on divisional electricity consumption figures. Energy consumption data is annualised and normalised (outlying data is excluded). Consequently, the margin for error on reported data is considered to be between 10%-15%. Gross Lettable Area (GLA) is used to calculate per m² intensity figures. GLA covers the total functional uses area for commercial purposes such as retail shop, office, etc. inside the building excluding all common areas, car parking and service areas. Electricity consumption and Scope 2 emissions figures relate to South African operations only.

Electricity consumption figures from the Group’s Africa Operations are excluded due to data inaccuracy and difficulties associated with determining what percentage of the electricity supply comes from renewable sources. The total Group sales are used to calculate Scope 1 and 2 emissions’ intensity per Rand million (Rm). Water usage has been derived with reference to the cost of water consumed. Water consumption is based on Rand Water Tariff 2010/2011 of 858,89 c/kl.

Procuring greener goods

In regards supply chain environmental advocacy, we’ve have published a self-help book The Green Book of Answers to help our buyers advocate responsible environmental practice by suppliers. The book provides our buyers with a tool to navigate their way through environmental facts and understand the negative impacts relevant to particular product categories.

We believe better informed buyers make better environmental advocates, so the book focuses on five big environmental questions:

Can suppliers provide evidence of traceability to source for the raw materials used in their products?
Have suppliers implemented an environmental management system to minimise the negative environmental impacts of their operations?
Have suppliers considered the environmental impact of their product design?
Have suppliers considered the environmental impact of their product packaging?
Have suppliers made an effort to disclose relevant environmental information about their products to consumers?

Participating in the Carbon Disclosure Project

True advocacy requires us to demonstrate our own willingness to change and so we look for ways to improve our own performance. As a precursor to participating in the 2009 Carbon Disclosure Project, an environmental specialist, Lynton Burger from Sustbrands, was contracted to calculate our carbon emissions. The information submitted to the CDP was based on our Carbon Footprint Assessment Report as compiled by Sustbrands for the period January – December 2009.

Global Carbon Exchange was engaged to conduct a peer review on our emissions inventory calculations for the January – December 2009 year as it pertained to our May 2010 CDP response.

To view Massmart's assessment prepared by Incite Sustainability click here

Energy Efficiency Initiatives

Massmart has developed energy intensity benchmarks for all Group formats that distinguish between legacy and new store energy efficiency opportunities. These benchmarks recognise that our different retail formats have different energy requirements and that more can be achieved by designing new energy efficient stores versus retrofitting legacy stores. Energy intensity savings have been achieved through a number of interventions, including improved in-store consumption tracking, conversion to energy efficient lighting and refrigeration systems and the installation of lighting strips and skylights to reduce in-store lighting requirements. Makro, which has historically operated energy efficient stores, has taken the next step by designing and building stores that optimise natural lighting and reclaim heat from refrigeration systems to heat the store. These and other innovations have led to a 25.0% reduction in energy consumption (based on an annualised comparison between the new Makro Vaal store and a similar-sized legacy store).

Engaging with Stakeholders

We recognize that advocacy to suppliers and customers offers significant opportunity to limit the harmful effects of consumerism on the environment. We therefore continue to focus on intensifying environmental advocacy efforts with these stakeholders. This includes surveying the environmental practices of our suppliers.