WoolWorths holdings limited 2013 good BUsiness JoUrneY report

CASE STUDY: WOOLWORTHS AND WWF-SA’S TARGETED SUSTAINABILITY PARTNERSHIP
In a first for African retail, the World
Wide Fund for Nature South Africa
(WWF-SA) and Woolworths announced
a broad-based, multifaceted
partnership in November 2012, to
drive greater sustainability through
selected Woolworths products and
operations.
The collaboration is timely,
reflecting a trend that recognises
that the private sector and the
non-governmental sector can work
together on common interests.
The three year partnership aims
to achieve conservation outcomes
by helping Woolworths suppliers to
produce more sustainable products
and creating awareness about
these products among Woolworths
customers. The partnership recognises
the growing congruence between
WWF-SA and Woolworths interests
in, among others:
• The conservation of energy;
• Freshwater ecosystems;
• The promotion of sustainable
agricultural practices; and
• The protection of fish stocks
This partnership brings together
significant technical expertise,
research capabilities, industry
insights and networks.
Woolworths will work with its
suppliers on targets in its dairy, beef,
seafood and textiles operations as well
as furthering its carbon and water
efficiency strategies.
WWF-SA will be addressing its
priorities of meeting the challenge
of transforming the food and
fibre production system to ensure
sustainable production as well as
exploring broader opportunities for
low footprint business operations.
WWF-SA has already been a key
adviser to our seafood and fresh
produce departments and we believe
that this partnership will help us
deliver greater sustainability, to
benefit both the environment and
the people we support through our
business.
Woolworths and wwf-sa's Partnership – the first eight months
At the end of 2012 the World Wide
Fund for Nature South Africa
(WWF-SA) and Woolworths
established a full transformative
retail partnership, with an initial
time period of three years. The
purpose of the partnership is to
formalise collaboration on various
technical projects, some of which
had been running since 2007, and
ensure clearer benefits for both
parties while setting more ambitious
transformational targets.
Woolworths was identified by WWF-SA
as a key retailer and important player
in the supply of priority commodities
not because of volumes traded, but
rather in view of its potential to
catalyse change in the sector. The
influence of Woolworths’ adoption of
sustainability as its seventh value is
evident in its business strategy and
has had a demonstrable effect on
the retail climate in South Africa.
Moreover, it has the ability to
implement effective change through
direct supplier relationships and short
supply chains, making it influential
in fresh produce, seafood, dairy
and beef, despite its smaller market
share in some areas comparative
to competitors. Woolworths has
also demonstrated a willingness to
embrace sustainability innovations in
its retail operations and products.
It is also worth noting that
the Woolworths consumer, a
predominantly affluent demographic,
has a significant footprint and positive
behaviour change in this group has
the power to make a measurable
conservation contribution. Recent
research found that the typical
Woolworths consumer requires on
average 21 planets (City of Cape Town
research, 2011) compared with the
Bottom of the Pyramid (BOP) urban
consumers’ 1.4 planets. So although
this target audience is comparatively
small its impact is significant and
there is a viable trend within this
group to adopt ethical change.
A WWF Transformational Partnership
means WWF working with businesses
to influence their value chain,
industry and own organisation to
make direct and indirect impact
on the places, species and issues
WWF cares about. This is a true
transformational partnership –
multifaceted challenge components
– influencing core operations,
influencing the supply chain and
changing behaviour both internal
and external.