WoolWorths holdings limited 2013 good BUsiness JoUrneY report

Environment
PALM OIL
Palm oil is an important and versatile
raw material for both food and nonfood
industries, which contributes to the
economic development of the producing
countries and to the diets of millions of
people around the world. Although
palm oil is entirely GMO-free and has
the highest yield per hectare than any
oil or oilseed crop, it is recognised that
there are environmental pressures on
its rapid expansion to eco-sensitive
areas, particularly as palm oil can only
be cultivated in tropical areas of Asia,
Africa and South America. It is vital that
production and use of palm oil is done
in a sustainable manner.
Using some 600 tons of palm oil each
year in our products, Woolworths is not a
major user of palm oil and it is our policy
to avoid the use of palm oil wherever
possible. As a result of the change in
national food legislation (South Africa’s
new R146 Food Labelling Regulations) in
April 2013, we are now declaring the type
of oil used in the ingredients panel on
packaging of products concerned.
Woolworths was the first South African
company to become a member of
the global Roundtable on Sustainable
Palm Oil (RSPO), a global organisation
dedicated to the sustainable production
of palm oil. The RSPO has developed
a set of standards called the Principles
and Criteria that define the practices for
sustainable palm oil production. These
standards address the legal, economic,
environmental and social requirements
of producing sustainable palm oil.
Woolworths has joined the RSPO in order
to promote and raise awareness of the
need for sustainable palm oil production
and has further committed to only using
RSPO certified sustainable palm oil in our
products by end 2015.
Sourcing RSPO certified sustainable
palm oil is currently a challenge as only
15 % of the global supply is certified as
sustainable and most of this is sold to
the EU. Woolworths participates in the
GreenPalm trading system and purchases
certificates for the tons of palm oil used in
Woolworths’ food and beauty products,
contributing to RSPO’s efforts to incentivise
Indonesian and Malaysian palm oil
producers to become certified sustainable
producers. Woolworths is also actively
engaging with local oil refineries and
encouraging them to commit to importing
certified sustainable palm oil and to
become chain of custody certified.
FAIRTRADE CERTIFIED COFFEE
Woolworths serves only 100%-certified
Fairtrade coffee in our Cafés. The coffee
mostly comes from small-scale farms
in Tanzania and Ethiopia who rely on
traditional, sustainable farming methods
that work in harmony with nature. We
have recently introduced a South-
American roast to our Cafes which is also
Fairtrade certified.
Fairtrade is the world’s leading
certification system for sustainability and
development through trade. We believe
in supporting Africa’s farmers and that
Woolworths’ partnership with Fairtrade
will provide a better deal for small-scale
farmers, and create opportunities for
farmers and workers to improve their
lives, their communities and protect the
environment.
Woolworths has extended this
commitment to a new range of certified
Fairtrade coffees sold in stores. In 2012,
Woolworths accounted for just over half
of the Fairtrade coffee sold in South Africa.
Woolworth is also a Fairtrade at Work
partner, which means we have committed
to using Fairtrade and organic beans in
our vending machines at our Head Office.
In 2012, Woolworths accounted for
just over half of the Fairtrade
coffee sold in South Africa.
WHL 70 / 2013 GOOD BUSINESS JOURNEY