‘RESET provided us with insights into how a discount retailer can improve its supply chain without compromising the price competitiveness of its products. This has helped us set concrete targets, which we will use to measure and communicate our performance into the future.’
–Rick Lambell, Sustainability Advisor, Kmart Australia
Kmart Australia has over 200 stores and 28 000 staff across its store network and is recognized as one of the most profitable discount department retailers in Australia and New Zealand. Kmart’s model of direct sourcing provides a strong basis for working with its supply chain to reduce its environmental footprint.
RESET’s work for Kmart involved two parts:
Firstly, we focused on mapping the opportunities for increased sourcing of sustainable raw materials, which included:
- Reviewing Kmart’s extensive product range to identify priority raw materials
- Conducting a social and environmental risk assessment of these materials
- Developing strategy and long-term roadmap for high risk materials.
As a direct result of the project, Kmart has set targets to achieve 100% sustainable cocoa and 100% sustainable cotton for its own-brand products.
Secondly, RESET helped Kmart to better understand the environmental performance of suppliers’ factories, which supplements Kmart’s existing social and labour policies. We helped Kmart to:
- Identify and prioritise environmental risks and opportunities
- Leverage the SAC Higg Index as a benchmarking tool
- Identify priority supplier groups for environmental target setting.
As a direct result Kmart has tightened supplier environmental compliance policies and is now reviewing options and tools for strengthened management of hazardous substances and overall environmental performance.