Supermarkets and other retail outlets are playing an increasingly important role in our lives. Retail stores and the expanding number of malls in which they are found change the function and appearance of the urban environment by providing a natural focus for the community. That is why retailers need to objectively and comprehensively assess their influence on community behaviour. They need to face the challenges arising from their responsibility to improve social and environmental conduct.
The World Summit for Sustainable Development that was held in 2002 identified the three interrelated elements of sustainable development as people, planet and prosperity. Likewise, enterprises in the retail sector must take into account their own businesses, the communities in which they operate and the environment at large.
For nearly four decades, the Pick ’n Pay Group has been one of South Africa’s leading retailers of food, clothing and general merchandise. The company has from the very beginning extended its responsibilities into the spheres of social investment and environmental protection through a wide variety of initiatives. This reflects its objective of triple-bottomline: reporting to stakeholders on financial, social and environmental achievements.
The retail sector cannot sustain itself without being accountable. Not only does the industry need to allocate resources to environmental management, but it must also take responsibility for the ultimate success and enduring impact of these projects. The concept of triple bottom-line reporting thus plays a vital role in sustainable development.
Beyond the fundamental need of accountability, there are a number of specific areas of concern for the South African retail industry. The following points demonstrate what can and ought to be done to contribute to sustainable development and environmental management:
Primary packaging of goods
Consumer culture impacts the environment through the use of energy and raw materials and by creating waste. These problems may be ameliorated by retailers adopting packaging that is more environmentally friendly and by educating consumers on the benefits of products with less environmental impact and the practice of recycling. Recycling is one of the basic principles of sustainability. Most Pick ’n Pay Hypermarkets have Recycling Centres for a variety of materials.
Carrier bags
The plastic bag is one of the most prevalent symbols of waste in South Africa. They’re not only aesthetically displeasing but have a well-documented harmful effect on our flora and fauna. Current legislation requires carrier bags with a minimum thickness of 30 microns to ensure easier recycling and repeated use. That is why Pick ’n Pay offers the Green Bag as an alternative. Made in South Africa by a BEE company out of an environmentally friendly, non-woven polypropylene fabric, the Green Bag is ergonomically designed, washable and long-lasting.
What’s more, 20% of the price is donated to Kids in the Parks, an environmental education initiative supported by Pick ’n Pay in association with South African National Parks (SANParks) and the departments of Education and of Environmental Affairs and Tourism. Through this project, the company has helped more than 2 500 learners and 100 educators from 50 schools to visit various national parks where they learn more about the environment, including how to manage and conserve it. Ultimately, the solution to the plastic bag problem lies in educating consumers to encourage the habit of reuse. Much more work still needs to be done. Pick ’n Pay also offers a more durable Bag For Life to encourage more environmentally friendly shopping habits.
Refrigeration
The use of CFCs has been an environmental concern for a very long time. At one stage, these gases were widely used in the coolants of freezers and refrigerators, which are vital in the provision of freshness by food retailers, and in air conditioners. The Montreal Protocol stipulated a deadline for the complete phase out of coolants containing CFCs. Retailers need to ensure that they are in compliance. For Pick ’n Pay, this has entailed the conversion of our refrigeration and air-conditioning coolants to non-CFC substitutes such as HFC-22. The company has converted its equipment or purchased new equipment in order to adhere to the Protocol. The current use of HCFCs will also be completely phased out within five years, although the Montreal Protocol’s mandate has called for the elimination of their use by 2040.
Electricity
Bright lights and refrigeration are essential to the retail trade, leading to high levels of energy consumption. Pick ’n Pay and Eskom Demand Side Management are at the vanguard of converting large stores to energy efficiency. By significantly reducing harmful emissions and power wastage, the project will have a salutary effect on the environment while eventually saving Pick ’n Pay an estimated R1.5 million plus per year. The project involves the installation of cutting-edge technology electronic control gear, which results in less power used to start up and run fluorescent tubes. All of the new stores have already had this lighting installed and the company is currently converting a further 97 stores.
Ultimately, more than 46 000 of these new devices will be operative in Pick ’n Pay stores throughout southern Africa. Besides saving energy, these devices develop minimal heat, which helps to save on air conditioning and promote longer lamp life.
Environmental impact of new stores
Pick ’n Pay is aware that the construction of new stores and malls brings with it additional environmental risks to an area. Thus when planning new stores, the company works with developers to compile environmental management reports in order to minimise the impact. Along with the architects and builders, Pick ’n Pay employs environmental consultants to prescribe the necessary steps needed to avoid or minimise damage to the environment.
Distribution
Distribution of product is a primary process within the retail sector. This is especially true of the food sector on account of the regular deliveries that need to take place. Pick ’n Pay’s fleets are scheduled to make maximum use of non-peak-hour traffic, which is fuel-efficient and the company continually works towards more and better low-pollution methods.
Waste
Owing to the huge volume of foodstuffs in retail stores and the amount of secondary packaging that is removed prior to products being packed on the shelves, retailers generate a considerable amount of waste. Pick ’n Pay’s aim is twofold: first to reduce the volume of waste and – working with recycling agents – to ensure nothing is dumped. Since the company considers this a key point for improvement, it is currently researching various methods for implementing a uniform strategy. At present, certain stores have agreements with recycling organisations to pick up waste. Most stores have environmental groups consisting of staff members involved in environmental campaigns and events.
Recycling
Hypermarkets have established Recycling Centres for a variety of materials. Customers are encouraged to deposit plastic, glass, cardboard and paper at the centres. The Centres are supported by local communities and by the recycling companies responsible for removing the items collected. Klerksdorp Hypermarket’s anti-litter campaign drew the public’s attention to the need for recycling when three-metre-high statues of animals made from rubbish were erected in the car park. Local schools participated, with the winning team earning a cash prize of R5 000.
Consumer awareness
Bad habits and practices, usually due to lack of education, are perhaps one of the most fundamental problems. Pick ’n Pay endeavours to create awareness of environmental issues through effective communication and education amongits employees, customers and local communities. Their Enviro Fact Sheets are printed on recycled paper and distributed free of charge in all stores. More than 6 million copies have been distributed to schools, universities, universities of technology and NGOs.
Conclusion
At the end of the day, if one considers that accountability is such a fundamental principle of sustainable development, companies need to be totally committed to doing the right thing for their industry, whether the cost entails direct investment – as in the case of the refrigeration in food retail – or the contribution of funds and resources to specific projects. Commitment must come from the top and be entrenched in the company’s vision and mission. This is the only way it will have real impact. The responsibility Pick ’n Pay has assumed in positioning itself as an environmentally responsible company is laid out in a policy based on principles held by the International Chamber of Commerce and the Business Charter for Sustainable Development and is rooted in the fibre of the retailer that was born 38 years ago. Considering the risk that retailers pose to the environment, they have a great responsibility to nurture it. This responsibility must be entrenched in the philosophy of the business, as Pick ’n Pay has done with its Environmental Code of Practice. Such a defined code, coupled with a formal reporting procedure, can lead to better and more sustainable environmental activity.
