Implementing Sustainable Development Goal 12 At Woolworths: Towards Responsible Consumption And Production

Woolworths & SDG 12: Promoting Responsible Consumption and Production

Introduction

Woolworths has been focusing on producing renewable energy in order to enhance the achievement of sustainable goals in the business market territory. The objective of Woodsworth Company is to ensure that all operations in Australia and New Zealand will be running on 100% renewable electricity by the year 2025.

The operations emissions footprint is shaped dominantly by electricity consumption, so the changes that the company makes here will significantly format corresponding to overall carbon footprints. Therefore, the organization's initial focus on investing into the new renewable electricity generation is aimed at increasing the supply of green power to businesses and communities; providing growth in jobs around an industry that should expand heavily due to the ever-increasing need for clean energy.

On May 2015, we entered into an agreement with Iberdrola Australia to power all our energy in South Australia from July 20. In the Port Augusta Renewable Energy Park, wind turbines and solar panels cooperate to produce energy around the clock.

At the end of F23, the company had signed renewable energy contracts in WA (50%) and a pathway was secured for NSW at 100%. The company also deployed 231 solar power generation systems in Australia and New Zealand, with a cumulative capacity of 48 MW.

However, the Company will continue the efforts to decrease electricity consumption in all self-stores as initiatives with energy efficiency keep reducing a store’s power input year after year. Such programs include the installation of refrigeration upgrades, more efficient equipment, LED lighting and store retrofits involving fridge doors.

Research Aim and Objectives

Aim

The research aims to identify the reaching of the implementation of Sustainable Development Goal 12 at Woolworths: Towards Responsible Consumption and Production.

Objectives

• To investigate the opportunities for the enhancements of the sustainability goal of Woolworth's supply chain.
• To identify the role of technology advancement in advancing sustainable business approaches within Woolworth Group Limited.
• To examine the role of the association of the stakeholder's engagements to achieving sustainable goals.

Literature Review

Sustainability concerns in the retail industry

SCP came into focus after the 1994 Oslo Symposium, which considered sustainable consumption and production that would provide services or products satisfying fundamental needs improving people’s quality of life without generating wastes harmful to human health (Glavič, 2021). This method is meant to preserve the interests of future generations. SCP highlights two key points: First of all, sustainable production has to be environmentally and socially beneficial while still being commercially viable; secondly, the realization of sustainable consumption involves collective responsibility both within consumers’ actions as well as organizations partaking in implementation.

SCP advocates for energy and resource efficiency, green infrastructure development, and enabling access to basic services (Glavič 2021). It seeks to provide green and good jobs that can enhance the standards of living. The 2030 Agenda for Sustainable Development reflects this call to change consumption and production practices (Glavič, 2021). It involves a promise to change societies’ behaviour patterns and has an SDG (SDG12) related specifically to achieving SCP. This also proves that the principles of SCP are shared in other SDGs, showing its relevance to all three aspects – environmental; social and economic. This integration highlights the role of SCP as a multidimensional goal that is central in attaining a greener future.

Sustainable consumption is considered by many as an important and difficult part of the sustainable development plan (Fonseca, Domingues and Dima, 2020). This concept stresses the importance of a radical change in our goods and services production, and consumption to reduce that ecological footprint. In line with the UN’s themes related to sustainable consumption and production practices, especially underscored under Goal 12 of SDG targets, there is a great need for immediate changes in how we produce and consume (Fonseca et al., 2020).

On this front, the SDG Compass serves as a guide for companies with regard to shared value creation. It emphasizes the need for energy efficiency and waste reduction strategies, although it may not specify measurable goals of reducing corporate or private ecological footprints (Fonseca et al., 2020).

Acquisition of the SDG 12 in the business market territory

The relevance of SDG 12, which refers to responsible production and consumption is increasing in the Australian business market (Franco and Newey, 2019). This goal is one of the 17 SGDs that were accepted by UN Member States including Australia in 2015 to solve global problems such as poverty, climate change and poor environment (Halkos and Gkampoura, 2021).

The improvement of Australia in SDG 12 is medium (Halkos and Gkampoura, 2021). A report from last year indicated that the country has not done well in a number of SDGs one being SDG12 (Halkos and Gkampoura, 2021). However, there are ways and means to handle such challenges. For instance, lifecycle ecolabel standards such as GECA provisions align with the goals of SDG 12 Targets and encourage sustainable business cultures (Bucea-Manea-Țoniș et al., 2020). Some of them include sustainable natural resources management, environmentally acceptable chemical and waste management as well as minimisation in the amount of output that is produced where sustainability information gets being integrated into the business reporting cycle (Bucea-Manea-Țoniș et al., 2020). There are several targets under SDG 12 concerning sustainable consumption and production patterns, resource efficiency, waste prevention through recycling as well recovery processes at the beginning (Bucea-Manea-Țoniș et al., 2020).

Furthermore, Australian companies that set measurable goals and track their performance have been found to reap the best rewards from SDGs (de Villiers, Kuruppu and Dissanayake, 2020). Efficient organizations are the ones that don’t cease with choosing proper SDGs – they include them in their operational plans as specific, measurable targets (de Villiers, Kuruppu and Dissanayake, 2020). This approach has been shown to lead to real change and embodies a greater sustainability mission. In addition to the use of materiality assessments, businesses should conduct detailed assessments and must identify SDGs that are most relevant for them. The circular economy principle is also adopted in Australia (de Villiers, Kuruppu and Dissanayake, 2020). This practice accentuates the continual use of resources avoiding throwing things away and, therefore, other ecological costs almost being in synchrony with SDG 12 (de Villiers, Kuruppu and Dissanayake, 2020). Australia has significant issues related to sustainable consumption and production which is plastic waste, water efficiency as well as sustainability agriculture. Several sectors are incorporating the principles of circular economy in their businesses, owing to policy reforms by governments and a burgeoning eco-concerned population (de Villiers, Kuruppu and Dissanayake, 2020).

The association of the stakeholder's engagements to achieving sustainable goals

There is a clear role of stakeholder engagement in realizing sustainable objectives (Bahadorestani, Naderpajouh and Sadiq, 2020). Involvement with stakeholders such as customers, employees’ suppliers, the community and investors makes for a more diverse kind of sustainability (Bahadorestani, Naderpajouh and Sadiq, 2020). It creates room for a variety of opinions and competencies, which leads to better-quality solutions that are more efficient and integrated (Bahadorestani, Naderpajouh and Sadiq, 2020).

Sustainability goals often receive increased commitment and support from stakeholders that are actively participating in these initiatives (Qian et al., 2020). For instance, interacting with suppliers could result in more environmentally friendly supply chains and collaborating with employees would create a culture of sustainability within the organization (Qian et al., 2020). Secondly, customers can also contribute greatly by demanding more sustainable products and practices that appeal to companies, so they will innovate further in their sustainability endeavours (Lim, 2022). In addition, in many cases stakeholder engagement is an essential part of CSR strategies. In order to understand and fully address such critical social and environmental issues related to their business as well as communities that will be affected by the firm, companies need not only listen but also consult with stakeholders (Lim, 2022). This involvement does not only assist in certain sustainability goals but also supports the wider aims of sustainable development (Lim, 2022).

Methodology

Data collection

By using a complex methodology that incorporated academic sources, industry reports and Woolworths’ company-specific report, among other resources of information the topic in question was investigated to gain insight regarding our subject. In addition, with the help of Google Scholar we were able to identify many scholarly articles and research papers in different fields which gave our work a general theoretical basis. Besides this scholastic approach, we used materials presented by some well-known research companies that provided the necessary information about industries and market tendencies with statistics. Further, company reports were analyzed especially Woolworth’s own sustainability and corporate responsibility to provide deep insight about what was going on with regard their goals objectives challenges and achievements during the process of implementing sustainable development. The tripartite approach, which incorporated the academic as well as industry and specialized sources enabled us to have a richer scope because it allowed for an integrative appraisal analysis’ meaning at greater depth.

Data analysis

Thematic analysis is a qualitative research approach that allows an exploration and understanding of underlying patterns, themes as well meanings in the dataset. It is a rigorous process consisting of data coding, sorting codes in theme categories and refining the themes to reflect completely all their components (Finlay, 2021). Using this approach, researchers understand the implicit assumptions and perspectives in a dataset that provide sufficient answers to research questions while seeking richness within participants’ experiences. Thematic analysis has been found to have an advantage of usage and a wide range of applications in its usefulness for researchers interested on obtaining meaningful narratives from qualitative data (Finlay, 2021).

Findings

Technology Integration for Sustainable Supply Chain useful for Woolworths

In the contemporary days, organizations are conscious that sustainability and CRS characteristics are an essential aspects of their operations (Adamik and Sikora-Fernandez, 2021). More significantly, corporations have become more effective in making their suppliers better-run companies by jacking up the worth they realize from changing product development costs. As a result, organizations are forcing their suppliers to make greener practices and reduce the environmental load in product design and distribution. This knowledge has emphasised the need for effective stakeholder relationship management as a cornerstone towards supplier acceptance of these sustainability objectives (Adamik and Sikora-Fernandez, 2021). Thus, the focus is changed because of supply chain relationship management with respect to stakeholder relationships between Woolworths and its suppliers (Adamik and Sikora-Fernandez, 2021).

Figure 1: Sustainable supply chian integration

(Source: Munir et al., 2022)

It can be said that a suite of strategic initiatives was developed by Woolworths Group to showcase its sustainability and decrease carbon footprint (Webster, 2020). They have indeed adopted proactive low-carbon technologies and sustainable practices by transforming their store network using refrigeration systems with lower GWP (Webster, 2020). Moreover, their efforts are also evident in the transportation sector where they experiment with zero-emission alternatives via refrigerated trucks for home delivery and charging infrastructure. The company also has high emission reduction goals that were endorsed by the SBTi, hence showing compliance of activities to global objectives like fighting climate change. Although emissions only slightly increased in compared to last year, mainly due to refrigerant problems (Webster, 2020). The company’s sustainability initiatives as well as transparency and effort of scientific benchmarks indicate his willingness to contribute into a better world (Munir et al., 2022).

The modern retailers adopt advanced technologies, such as blockchain, RFID and AI tools to improve sustainability towards supply chain networks (Varriale et al., 2021). Such technological improvements are essential in the close tracking of products through their life cycle, thus minimizing wastage and enhancing overall efficiency (Varriale et al., 2021). Step-by-step tracking from manufacturing to delivery makes it possible for the retailers to reduce their carbon footprint significantly by minimizing waste production (Varriale et al., 2021). The implementation of the green measures could be seen in such form as the production and processing of machine-made r–-pet bags from recycled PET bottles (Dutta et al., 2020). Also, retailers implement blockchain to verify the products and identify those ethical sources which can be used as a way of minimizing environmental risks. Technology also plays a significant role in retail waste reduction initiatives with smart bins and implementation of the waste management software guaranteeing smooth disposal elimination of landfill dumping (Dutta et al., 2020). For instance, Walmart has rolled out a waste management program targeting compost recycling and waste management solutions that support sustainability initiatives in the sector of retail (Dutta et al., 2020).

Stakeholder Engagement and Sustainable Business Practices of Woolsworth

Woolworths’ stakeholder engagement serves as a standard for its sustainable business practices (Vandchali, Cahoon and Chen, 2021). The company knows that to achieve its sustainability goals and secure the future success of this business, a positive relationship with different stakeholders is not an option (Vandchali, Cahoon and Chen, 2021).

In addition, Woolworths actively engages suppliers and integrates their own sustainability values into the whole supply chain (Vandchali, Cahoon and Chen, 2021). By using this platform, Woolworths promotes eco-friendly activities from its suppliers and reduces the ecological footprints along with ethical sourcing (Vandchali, Cahoon and Chen, 2021). This symbiotic partnership assists in maintaining strict sustainability standards – from materials procurement all the way through to delivery (Vandchali, Cahoon and Chen, 2021).

Figure 2: Stakeholder engagement process for sustainability process

(Source: Imd.org., 2022)

Woolworths also seeks to involve its customers in creating awareness and promoting viable alternatives. Woolworths applies a series of marketing campaigns that do well to promote change and through programs such as ‘Green Fridays’, the supermarket chain is striving towards changing consumers while also receiving reward from consumer activity in making eco-friendly choices.

Secondly, Woolworths perceives its employees as key relevant stakeholders in the sustainability initiative. Staff is also an investment such as sustainability training, workshops and good internal communication (Ali et al., 2021). This gives rise to a culture of sustainability in the organisation and employees turn into active contributors by putting forth their ideas as well as contributing efforts toward mitigation of environmental impacts or promotion for sustainable practices (Ali et al., 2021).

Woolworths commits to sustainability pledges by regularly interfacing with regulatory bodies through changing regulations and standards (Colin, 2022). By engaging in such debates and refining its actions to environmental (ethical) cues, the firm emphasizes that it works according to sustainable philosophy (Colin, 2022). It is also worth noting that Woolworths interacts with the local communities an NGOs in order to meet emergent needs within environmental issues, which are socially uncatered for. All these collaborations have led to various initiatives such as neighbourhood cleanliness, food distribution or philanthropy (Colin, 2022). The programs demonstrated how Woolworths endeavoured to stay an ethical company and ensure that the needs of people were captured.

In the first place, Woolworths ensures that its shareholders and investors know about their sustainability initiatives through transparent communication (Cooper et al., 2023). This transparency includes regular reports regarding the organization’s environmental performance, ethical sourcing practices and progress towards sustainability targets (Cooper et al., 2023). Thus, this open dialogue with shareholders ensures that business objectives and persistent commitments of the organization to sustainability milestones are in alignment (Cooper et al., 2023).

Sustainable business operations by Woolworths are linked to the recognition of stakeholder identification as a major achievement in achieving sustainability (Mukonza and Swarts, 2019). An active partnership Woolworths enters with suppliers, customers, employees regulators and shareholders proves its dedication to the sustainability of responsible eco-friendly operations; besides the culture of responsibility is undergone throughout all organization as well as by the environment outside it (Mukonza and Swarts, 2019).

Sustainability Opportunities and Challenges for woolsworths

As a leading retailer, Woolworths is at the centre of major opportunities and threats in SDG 12 responsible production and consumption (Modak, 2021). It is well-positioned to capitalize on the increasing wave of consumer interest in sustainable products, as more people become cognizant of both ecological and ethical facets around their decisions (Modak, 2021). Wasting food should not be a chance to achieve SDG 12, but also an opportunity to make the bottom line much easier (Modak, 2021). Cooperation with suppliers on greening the value chain, leading to a push for circular economy practices and being a leader in recycling efforts are possible roads that Woolworths might traverse as it goes along its path towards sustainability (Modak, 2021).

Figure 3: Sustainability and its challenges

(Source: Thomas et al., 2023)

However, the company meets some significant obstacles. The sheer size of the sprawling and heterogeneous supply chain with many participants creates logistical complexities in terms of compliance (Thomas et al., 2023). They are sustainable practices and profitability continues to be a persisting problem, especially because sustainability is almost always linked with investment. Woolworths should as well go on with its efforts in consumer education regarding responsible consumption and the environmental consequences associated with buying decisions (Thomas et al., 2023). The evolving regulatory environment related to sustainability and responsible manufacturing requires alertness and agility. Additionally, waste reduction especially due to perishable goods and one-time plastics demands considerable ingenuity (Thomas et al., 2023).

Woolworths Group has aligned its ambitious sustainability targets to climate science and the issue of environmental responsibility (Sullivan and Gouldson, 2020). By the year 2030, one of its main goals is to reduce on-operating emissions by more than two thirds from a benchmark set in 215. Woolworth does not limit this commitment to the direct activities as it also aims at reducing scope 3 emissions by 19% compared with a baseline of the same year-2015 (Sullivan and Gouldson, 2020). In addition, the company is firmly committed to achieving net positive emissions for its operations with an ambitious goal of reaching this milestone by 2050 at the latest, which suggests a long-term environmental responsibility (Sullivan and Gouldson, 2020).

Simultaneously with the emissions reduction targets, Woolworths concentrates its efforts on sustainable property. All of the future property developments are meant to achieve a 4 Green Star design and as-built rating, aiming at raising this minimum benchmark not lower than five stars by 2025 (Sullivan and Gouldson, 2020). This points out to the organization’s activities relating to improving sustainability in property development and promoting conservation (Sullivan and Gouldson, 2020).

Discussion

Woolworths Group’s sustainability commitments represent a significant move towards smarter and greener future (Bell, 2020). Displaying 63% commitment to reduce emissions from its operations since year2015, the company seems tough for climate change. One of the noteworthy plans is its scope 3 emission reduction target-19, which highlights the need to mitigate these emissions across their supply chain (Bell, 2020). Woolworths’ target of becoming net-zero in terms its emissions for the operations well ahead of 2050 is a worthy long-term objective that dictates what an organisation deems appropriate towards environmental responsibility. Besides, the company’s focus on environmentally conscious development of property is evident in eco-conscious facilities achieving higher Green Star levels. Lastly, the decision of Woolworths to electrify its last-mile delivery fleet in Australia and New Zealand by year 2030 is a significant step towards curtailing transportation emissions (Bell, 2020).

It not only fits the climate science but also indicates Woolworths Group as a trendsetter to sustainable business. It will be only achievable through planned coordinated initiatives, creative solutions and cooperative partnerships that reveal extraordinary determination towards the prosperity of a sustainable society.

Conclusion

It can be concluded that Woolworths Group’s commitments to sustainability suggest an active and aggressive attitude towards solving the problems which have become crucial issues of the modern age. The company also demonstrates its commitment to the mitigation of climate change and minimal environmental effect by setting emissions reduction targets, science-based goals and scope 3 reductions. The focus on achieving net positive emissions also strengthens the longer-term perspective of environmental care as one intention without mitigation and towards carbon removal and sequestration.

The transition to a 100% lead-electric vehicle last mile delivery fleet and the sustainability in property development by Woolworths are also commendable steps towards sustainable consumption and production. These programs show how the firm has understood that its sustainability does not revolve around main operations but also infrastructure and transport networks.

Strategic recommendations

Strategic Recommendations	Rationale
1. Supply Chain Transformation	Overhaul the supply chain to ensure responsible sourcing, reduce transportation emissions, and minimize waste generation, aligning with SDG 12 goals.
2. Consumer Engagement and Education	Launch consumer-focused educational campaigns, transparent labeling, and incentives to drive demand for sustainable products and promote responsible consumption.
3. Investment in Renewable Energy and Technology	Invest in renewable energy sources and cutting-edge technology to reduce emissions, enhance operational efficiency, and support sustainability objectives.