We aim to provide our customers with a range of sustainable products and are committed to the ethical sourcing of our products. We require all our suppliers to meet requirements on ethical sourcing, as well as requirements on product claims and labelling, the health and safety of products and all other Australian laws. Monthly training sessions are held for our merchandising team on topics such as green marketing, ethical sourcing and packaging.

In recognition of our commitment to product safety, we have been working to reduce the number of products we sell which are classified in the Dangerous Goods Classifications for Toxic and Corrosive Substances. Our work in this area has focused not only on ensuring that our processes are in line with the Storage and Handling of Dangerous Goods (Regulation 2005) and ADGv7 (Dangerous Goods Transport Legislation) regulations but on making sure we have the correct procedures in place. We have delivered training to our warehouse staff on responding to classified spills. We have also provided our drivers with vehicle spill kits and our warehouses have undergone hazardous substance and dangerous goods third party audits. Customers are able to access documentation on any dangerous goods purchased electronically.

EarthSaver

EarthSaver is our internal classification program to quickly identify our environmentally preferable products whether they are manufactured by us or by another supplier.

Our EarthSaver range includes products such as paper, pads and envelopes, writing instruments and general stationery, toner cartridges, canteen products, cleaning products and facility supplies, furniture and IT solutions.

For a product to be classified as EarthSaver, the supplier must meet[1] our ethical sourcing requirements and meet one or more of the following criteria[2]:

• Recycled content – Products that contain at least 20 per cent recycled materials.
• End of Life Management – Products that are at least 70 per cent recyclable, biodegradable, compostable or degradable.
• Low Ecological Footprint – Products that are certified as organic and/or biodynamic by the Australian or New Zealand Organic and Biodynamic Certification body.
• Sustainable Source – Products that come from a sustainable source and are certified under Forest Stewardship Council (FSC), Program for the Endorsement of Forest Certification (PEFC), Australian Forestry Standard (AFS), Fairtrade, Rainforest Alliance and UTZ certification schemes.
• Energy Conservation/Greenhouse Benefit - Products that use less energy to achieve the same results as standard comparable products; products that are able to demonstrate clear and significant energy savings in the manufacturing process or products that are rechargeable, use renewable energy or are offset.

Our easy-to-identify EarthSaver icons are featured in the Go Green Guide

[1] The EarthSaver program is based on the claims made by the suppliers and Corporate Express does not audit these claims.

[2] Our New Zealand operations use the same EarthSaver classification criteria but have a different product range.

Growing our EarthSaver Range

Over the past few years we have deepened our commitment to finding, sourcing and selling environmentally preferable products. The number of products in our EarthSaver range in Australia has grown from 2,600 in January 2010 to more than 3,600 products as at October 2010. This increase is primarily due to more products with environmental characteristics being available in the marketplace, as well as new product categories, such as IT products, which we introduced in 2010. We are also working with suppliers to identify products that meet EarthSaver criteria.

In the 2010 financial year our sales of EarthSaver products represented 17.5 per cent of total catalogue sales.

In January 2011 we introduced a new range of EarthSaver-classified products called Sustainable Earth by Staples™. The range includes remanufactured toner cartridges and sugarcane-based easel pads which are made from 80 per cent sugarcane waste. We also introduced notebooks and pads made from 80 per cent sugarcane waste.

Online Ordering

Our electronic ordering platforms accounted for 83 per cent of all lines ordered in Australia in the reporting period. This is up from 80 per cent in 2009. Our electronic ordering platforms include our web-based ordering platform NetXpress, our vendor-managed service Xpress Office and integrated electronic orders from customers’ procurement platforms (B2B orders).

The reasons for the increase are due to a number of initiatives. We have:

• Integrated with new customers on our B2B platform with the number of these orders increasing by 17 per cent from 2009
• Increased information and images of products which are displayed online
• Launched online catalogues.

During the year, we also improved the display of EarthSaver criteria on NetXpress to enable our customers to identify these products more easily.

In 2011 we will implement initiatives to improve the customer experience and to further improve the efficiency of online ordering.

Sustainable Paper-Based Products

We source and sell millions of tonnes of paper products each year. It is important to us and our customers that these products not only perform well, but are sourced and manufactured in a sustainable manner.

Almost half of the office paper used in Australia each year is imported from Indonesia, China and Thailand. The majority of this imported paper is made from wood which is not third party certified for sustainable forest management.

Our partnership with Australian Paper™ provides customers with an alternative to this. It gives them the opportunity to buy a range of Australian made white office papers, including recycled content paper, from fibre sourced from waste streams, plantations and forestry operations which are managed in a sustainable way. Every sheet of Australian made recycled office paper helps to cut down on landfill in this country. Australian Paper diverts approximately 60,000 tonnes of waste paper from local landfill each year through its recycled papers.

Australian Paper is third party certified under both the Australian Forestry Standard (globally recognised by the Program for the Endorsement of Forest Certification) and the Forestry Stewardship Council® and is the only local manufacturer of office paper. More than half of Australian Paper’s total fibre needs are met from plantation wood, recycled pulp and wastepaper from kerbside collections. The remainder is sourced through VicForests which is a Victorian Government enterprise responsible for the sustainable harvest and commercial sale of wood from state forests. Australian Paper does not use any wood, or sawmill waste, from old growth forests.

Our own-brand paper (EXP800, EXP801 and EXP50R) is manufactured at Australian Paper’s Maryvale Mill in Gippsland, Victoria, which is one of Australia’s largest integrated pulp and paper making operations. For more information click to read more about Australian Paper's Responsible Fibre Sourcing and AFS Sustainable Source Fact Sheet.

Use	Product	Sustainability Credentials
Everyday
- Quality paper perfect for everyday office use - Economical value	EXP Green 50R	- Made using 50 per cent post-consumer recycled fibre diverted from Australian landfill - PEFC Certified
	EXP800	FSC Certified
	EXP801	FSC Certified
	Reflex Ultra White	FSC Certified
	Australian 10% Recycled	- Contains 10% post-consumer recycled de-inked pulp - Saves Australian landfill - FSC Certified
	Nallawilli Office Wares	- PEFC Certified - AIMSC Certified - Supports Indigenous economic development - Counts as supplier diversity spend
Premium
High quality recycled paper suitable for presentations and professional documents	Reflex Carbon Neutral Ultra White	- Certified carbon neutral - all emissions associated with the product lifecycle have been offset - FSC Certified
	Reflex Pure White Recycled	- Made from an even blend of 50% post-consumer waste paper and new fibre - Saves Australian landfill - FSC Certified
	Australian 80% Recycled	Contains 80 per cent post-consumer recycled de-inked pulp
Special Purpose
Fully recycled paper for those looking for a complete sustainable option	Reflex 100% Recycled	- Made using 100 per cent post-consumer Australian waste paper, the highest of any Australian made office paper - Saves Australian landfill

For more information on sustainably sourced office paper please click here

What is FSC^® Certification?

The Forest Stewardship Council (FSC) is a global standard-setting and certification not-for-profit organisation whose mission is to promote environmentally appropriate, socially beneficial and economically viable management of the world's forests. Its chain-of-custody processes track certified material throughout the production process, from the certified, responsibly managed forest or recycling location to the consumer, including all successive stages of processing, transformation, manufacturing and distribution. FSC certified products are recognised globally as meeting the most stringent requirements for promoting the responsible management of the world's forests.

What is PEFC™ Certification?

The PEFC Council (Programme for the Endorsement of Forest Certification schemes) is an independent, not-for-profit, non-governmental organisation, which promotes sustainably managed forests through independent third party certification. PEFC works throughout the entire forest supply chain to promote good practice in the forest and to ensure that timber and non-timber forest products are produced with respect for the highest ecological, social and ethical standards. With about 30 endorsed national certification systems and more than 220 million hectares of certified forests, PEFC is the world's largest forest certification system.

In 2010 we implemented a range of programs to engage our customers on sustainability including the Go Green Guide, GreenBizCheck and the Simple Steps Program.

Go Green Guide

We launched our Go Green Guide in 2010. The Go Green Guide contains product information for over 1,500 EarthSaver classified products making it easier for our customers to identify environmentally preferable products for their business. It also includes:

• Facts and figures demonstrating the effect businesses can have on the environment by using environmentally preferable products.
• Certification labels throughout to help businesses identify certified products.
• An action plan which provides Australian businesses with simple steps on how they can create a greener workspace.

The Go Green Guide is a market-leading initiative.

GreenBizCheck

We are partnering with the environmental certification program GreenBizCheck to offer our customers a free assessment of their sustainability performance. The check guides businesses on the tangible steps they can implement to make their business more sustainable. The assessment provides internationally recognised certification for businesses who reach Bronze, Silver or Gold certification. The self-assessment includes performance on energy, water, waste reduction and recycling, transportation, supply chain and IT.

Simple Steps Program

We introduced the Simple Steps Program, a monthly opt-in electronic newsletter that looks at different ways to be sustainable in the workplace, in September 2010. The topics covered range from sustainable canteen choices, sustainable printing and sustainable organising and filing. The program also includes information that account managers can provide to customers on sustainable product choices, the certifications that apply to them and easy steps that they can take to improve sustainability.

Links to Simple Steps monthly programs: http://www.ce.com.au/whats_new/simplesteps.aspx

Customer CSR Breakfasts

Another way we engage our customers on sustainability is by holding Corporate Social Responsibility Breakfasts for our customers. In September 2010 we held these breakfasts for customers in Sydney, Canberra, Melbourne, Hobart, Adelaide, Perth and Brisbane. Each breakfast featured guest speakers who shared their experiences on what CSR means for their respective businesses. We also provided an update on what we are doing to help our customers meet their sustainability goals including news about the launch of the Go Green Guide and other sustainability initiatives.

Recycling Services for Customers

Cart Collect

We encourage our customers to recycle their toner cartridges and help protect the environment. In June 2010 we launched a new Cartridge Recycling Program called Cart Collect. Cart Collect is a collection service for toner cartridges and it also redirects the waste back into the remanufacturing stream for reuse, or if it cannot be reused then back into the recycling chain. Customers can order their toner recycling box from us for free. Once the box is full customers can go to www.cartcollect.com.au to request a collection. For every box of cartons collected, $2 is donated to not-for-profit organisation, Landcare Australia. All donations to Landcare Australia from Cart Collect go towards funding local environmental projects.

For more information on Cart Collect please click here or to view information on sustainable toner cartridge options please click here

Electronic Waste Recycling

PCs and monitors can be a threat to health and to the environment when they are broken apart. The toxic chemicals inside don’t pose a danger when the PC is in normal use, but at the end of its life the PC becomes hazardous waste. E-waste contains concentrations of lead, mercury and other harmful chemicals that have the potential to leak into the soil and groundwater if not handled correctly. This is one of the reasons why the disposal of old IT equipment via landfill can cause long-term damage to the environment. Consigning these materials to landfill also wastes non-renewable resources such as metal, plastic, glass, and precious metals.

Our e-waste disposal solution ensures that surplus IT equipment is processed in a way that maximises the recycling of commodities while avoiding as much consignment to landfill as possible. As part of our Total Lifecycle Management (TLM)™ process, when we supply and install new IT assets for our customers, we can decommission the old ones in a secure and environmentally responsible way. Our program guarantees minimal landfill and involves detailed disassembly of each item of equipment, with various components then sold to specialist recyclers in Australia and around the world.

Environmental Management System

We have developed an Environmental Management System (EMS) which provides a framework for addressing the impacts that our activities, products and services have on the environment. It incorporates environmental considerations into our day-to-day operations and culture.
In January 2011, our EMS was certified against the international standard ISO 14001.

Our EMS focuses on managing our environmental impacts in the procurement of products, in our warehouse and office operations and in the delivery of products to customers. To assist in the implementation of our EMS, we have:

• Developed new roles and responsibilities for environmental management: The National Environment Manager has overall responsibility for the development, implementation and maintenance of the EMS. There are also national and local representatives who support the implementation of the EMS.
• Ensured that relevant environmental training is provided: The Green Skills Program is an associate training program focusing on environmental professional development. The goal of the program is to inform and encourage associates to commit to making meaningful changes to their daily habits. In January 2011 we introduced an e-learning module on environmental awareness (please see below).
• Implemented environmentally-focused operating procedures: These include the development of procedures for ethical disposal and classified spill response.

Measuring and monitoring our environmental performance is an integral part of our EMS. This is done through tracking environmental performance indicators such as carbon emissions, site green targets and consumption and recycling rates.

In 2011 we will implement our EMS in New Zealand and in 2012, we will implement it in our subsidiaries Raeco and Educational Experience.

Our Environmental Policy

Our Environmental Policy outlines our environmental philosophy and commitment and is the foundation on which our EMS is developed. The policy details our commitments to:

• Systems Management
  To provide the framework for effective integration of environmental objectives and targets into our day-to-day operations and management culture, focusing on continual improvement and compliance with all relevant legal and voluntarily obligations.
• Impact Management
  To minimise impacts on the environment which result from our activities, products and services by reducing and preventing consumption, emissions and polluting incidents.
• Engagement
  To promote a strong environmental ethic as part of our corporate culture by encouraging and empowering employee, customer, supplier and shareholder engagement.

Environmental Targets

Our national environmental objectives and targets are established annually and are based on the commitments outlined in our Environment Policy. They allow us to drive results and effectively communicate our successes both internally and externally to customers and key stakeholders.

Some of our key targets for 2010 and how we performed against them are outlined in the table below.

2010 Target	How we performed
Achieve globally recognised EMS certification through ISO 14001 by July 2010.	ISO14001 certification of our EMS was achieved in January 2011 after a four month certification process.
Conduct quarterly site process and performance assessments against established Site Green Targets.	Site Green Targets were established covering our significant areas of environmental impact: waste, stormwater and hazardous substances and dangerous goods management, water, resources and power consumption. Reviews of Site Green Targets were collated for the periods from May to July 2010 and August to October 2010 periods resulting in a Corporate Green Scorecard by site, region and area of impact.
Develop Sustainable Transport Strategy to minimise impacts associated with various operational transport.	Our Sustainable Transport Strategy was approved in July 2010. The strategy is applicable to all operational transportation which includes the delivery of stock to customers and the transfer of stock between Corporate Express locations. It is not applicable to the transportation of stock from suppliers to Corporate Express. However, where possible, measures will be taken to further develop the sustainability of our supply chain by assisting suppliers to operate sustainably i.e. bulk deliveries.
Track kilometres travelled per delivery vehicle to determine average carbon emissions associated with the delivery of customer orders.	A Transport Data Collection pilot program was successfully conducted in QLD and VIC in 2010. Data captured allowed for a more robust average carbon emissions per delivery to be calculated. This program will be rolled out nationally in 2011.
Develop and implement the @desk Waste Education and Management Program to manage office-based waste.	The @desk Waste Education and Management Program was implemented at all sites. The program saw the provision of appropriate individual waste management options for “at point of disposal” desk-based recycling which was accompanied with educational material.
Implement national pallet management program.	Our Pallet Management Program was implemented at all relevant sites. The program has seen a 99 per cent reduction in pallets being disposed of.
Spill containment and management procedures developed and appropriate staff training undertaken.	All applicable warehouse associates have been trained in the Spill Response procedure. Mock spills have been conducted at the majority of sites.
Identify staff with specific environmental responsibilities and incorporate key performance indicators (KPIs) into performance reviews.	Associates with specific environmental responsibilities have been identified in the Responsibility Tracking Matrix and various EMS procedures. Environmental KPIs have been integrated into all supply chain senior management performance objectives.
Carbon Disclosure Project Reporting.	Total CO2 emissions associated with our energy consumption, waste production and delivery fleet were reported in May 2010 for the 2009 CDP submission.
Communicate environmentally preferable products through production of educational product materials.	Our Go Green Guide contained educational product materials for each product category. We launched the Simple Steps Program, a monthly email campaign to customers highlighting sustainability options in different areas of the workplace.
Develop sustainable product catalogue.	Our Go Green Guide was launched in August 2010 (printed and online).
Develop audit program with established criteria.	Audit program defined and implementation commenced with an audit conducted on a key offshore supplier in January 2010. Follow -up audits have been undertaken on the same supplier throughout the reporting period. With the purchase of Corporate Express by Staples we will transition this program (on suppliers of own-brand products) to the Staples audit program.

Our targets for 2011 include:

• Obtain certification to ISO 14001 for our New Zealand operations.
• Conduct detailed audits and analysis of energy consumption and waste production at priority sites.
• Maintain and expand, where appropriate, existing environmental management initiatives (such as the Sustainable Transport Strategy and the Green IT Strategy)
• Communicate environmentally preferable products through educational product materials. Include green education and promotion material within all category marketing plans.

Greenhouse Gas Management

While we are not involved in a carbon-intensive industry, we depend on fossil fuels and fossil fuel-based electricity to run our business. Looking to the future, we know there will be impacts on our business due to any potential future regulations on greenhouse gas emissions.

In response to the growing concern about climate change, we have developed a Greenhouse Gas Inventory Management Plan to account for and report our corporate greenhouse gas emissions. The purpose of this plan is to ensure the quality and consistency of our data and enable us to track our greenhouse gas emissions reductions over time. The plan also ensures our greenhouse gas accounting is in line with internationally-accepted standards.

To manage our greenhouse gas emissions and in turn our overall environmental footprint, we continue to:

• Maximise energy efficiency in all our facilities
• Minimise the amount of waste being sent to landfill by ensuring maximum resource recovery
• Limit the extent of business-related air travel as much as possible
• Implement our Sustainable Transport Strategy to reduce our fuel consumption and track our kilometres travelled
• Implement our Green IT Strategy to prioritise and reduce our IT-related energy consumption
• Offset a portion of our delivery fleet using Greenfleet
• Subscribe to a large portion of GreenPower at key locations.

We publicly disclosed our carbon footprint in May 2010 with our second submission to the Carbon Disclosure Project, the international carbon database. The previous year’s submission put us on the Carbon Disclosure Leadership Index, an index of companies with the highest disclosure scores. For more information see www.cdproject.net

Our Greenhouse Gas Emissions

Scope	Quantity	Units	Emissions Tonnes CO2
Scope 1
Owned vehicles fuel consumption	88.65	KL	225.85
Scope 2
Purchased electricity	10986365.86	kWh	9424.03
Scope 3
Waste to landfill	1673.93	tonnes	1835.69
Transmission and distribution losses associated with purchased electricity	10986365.86	kWh	1425.40
Contract delivery fleet fuel consumption	851.04	KL	2273.23
Staff car allowance fuel consumption	808.97	KL	1845.36
Leased vehicle fuel consumption	153.98	KL	405.03
Business flights	6126125.64	KM	1589.15
Gross Total			19023.74
Offset
Greenfleet	n/a	n/a	1247.00
Co-generated power abatement	n/a	n/a	251.13
Greenpower	n/a	n/a	192.25
Net Total			17333.36
Intensity Measure	2343	Per Employee	7.4

Our total net greenhouse gas emissions for 2010 were 17,333 tonnes of CO₂, a substantial change from 21,005 tonnes of CO₂ in 2009. There were a number of reasons why our greenhouse gas emissions changed so substantially from 2009 to 2010:

• Property portfolio rationalisations led to a decrease in the number of sites we have in operation.
• More robust data collection processes for fuel consumption reduced the need for assumption.
• More robust data collection processes for waste and energy reduced the need for extrapolation.
• A review of waste billing highlighted that several sites’ waste was being double counted.
• Sustainability initiatives implemented throughout the year (e.g. waste management) made a positive impact on our overall emissions.

These activities resulted in:

• 17% decrease in total net emissions from 2009
• 13% decrease in emissions associated with electricity from 2009
• 29% decrease in emissions associated with transport from 2009
• 15% decrease in emissions associated with waste to landfill from 2009
• 25% increase in emissions associated with flights from 2009
• 97% increase in tonnes of plastic/cans/glass recycled from 2009
• 50% increase in tonnes of paper/cardboard recycled from 2009.

Emissions Calculation Methodology

• Emissions were calculated using the operational control approach. The reporting period is for 1 February 2010 to 31 January 2011.
• Fuel Consumption, Transport - Conversion from km travel to kl completed using the Australian Greenhouse Office (AGO) factors and methods workbook December 2006 Table 4. Associated calculation of carbon emissions completed using the National Greenhouse Accounts (NGA) factors July 2010 Table 4. In calculating consumption data the following was undertaken:
• Staff car allowances were based on six weeks log book data and extrapolated for the year period.
• Contract delivery driver and owned/leased vehicle consumption was based on representative data from Queensland and Victorian directly contracted driver km travelled information and extrapolated for the year period.
• Km travelled for leased and owned general corporate vehicles was taken from contract delivery driver average and halved.
• Emissions associated with our line-haul (road and rail) activities were not calculated in the 2010 fuel consumption data.
• Fuel Consumption, Flights – Corporate Express’ km travel and carbon emission data was provided by third party supplier FCM travel. Emissions associated with our New Zealand operations and our subsidiaries, Raeco and Educational Experience, were not included in the total flight data for 2010.
• Purchased Electricity - Emissions for our Australian operations were calculated using the NGA July 2010 Table 40 for Scope 2 and Scope 3. New Zealand emissions calculated using the Guidance for Voluntary Corporate Greenhouse Gas Reporting Data and Method for 2008 calendar year Table 4 (Scope 2) and Table 5 (Scope 3). Where consumption detail was unavailable an average daily consumption was calculated.
• Waste – New Zealand emissions were calculated using the Guidance for Voluntary Corporate Greenhouse Gas Reporting Data and Method for 2008 calendar year Table 9. Emissions for our Australian operations were calculated using the NGA July 2010 Table 43. In calculating emissions during the January 2011 period the majority of data was extrapolated due to billing cycles. Data from Geelong, Shepparton, Coffs Harbour, Newcastle, Tamworth and Lismore is estimated based on bin size and pick up frequencies due to exact data not being available. Data from Mascot is based on waste audit outcomes from 2009. Data from Gateshead is based on 2009 data. Data from Kalgoorlie and Cairns Stationary is not included in the total waste emissions due to no data being available.
• Offsets – Kewdale, WA offsets 25 per cent of their total electricity consumption with GreenPower. Erskine Park uses gas co-generation to offset a portion of their electricity consumption. Directly contracted delivery driver emissions offsets are calculated on a per vehicle basis by the third party provider, Greenfleet.

Green IT Initiatives

Information Technology (IT) is a significant consumer of electricity. The Green IT agenda is not only about material and energy efficiency, it is about reducing costs across the operational footprint of IT and the business.

Green IT is about controlling and managing the material environmental issues of IT, over which we have varying degrees of influence and control. The key issues include energy consumption, e-waste, resource consumption, material efficiency and the environmental performance of the supply chain.

We have been implementing green IT initiatives over the past six years. In 2010 our key initiatives included:

• Increasing the virtualisation of our servers from 88 per cent in 2009 to 96 per cent in 2010. This initiative included removing 30 servers. Our virtualisation programs resulted in 667 tonnes of CO₂ emissions being saved annually (1,534,752 kWh/year).
• Implementing a hibernation trial for our PC fleet where at 11pm on weekdays all PCs that are still on receive a 15-minute warning that they will automatically go into hibernation. This has resulted in 835 tonnes of CO₂ emissions being saved annually (798,863 kWh/year), which equates to a saving of 0.34 tonnes of CO₂ emissions saved per employee.
• An audit of our CRT monitors was completed and a replacement plan established. Two of our sites (Northern Territory and New Zealand) are now CRT free.
• Increasing the temperature of our Data Centre by one degree. We will look into ways to further increase the temperature as well as focus on developing methods to manage the efficiency levels in maintaining optimum levels of humidity within the Data Centre.
• All of our IT assets are now gold-rated by the green electronics registry EPEAT.
• Continuing our Green IT Champion program. The designated associates meet once a month and look for further ways we can reduce our environmental impact.

In recognition of our Green IT initiatives, we were awarded with the “Best Green Architecture” award at the ICMG Architecture Excellence Awards in 2010. The award highlighted our achievement in virtualising 88 per cent of our computer environment and consolidating 90 per cent of our infrastructure back to our core data centre.

Disposing of our IT equipment responsibly is important to us. We have a national service agreement with not-for-profit organisation WorkVentures to collect and recycle or refurbish all obsolete IT equipment. WorkVentures works with people at risk of social and economic exclusion and offers the refurbished equipment to disadvantaged communities. In 2010, we gave over 200 IT items to WorkVentures.

Our targets for the next 18 months include:

• Increasing virtualisation to 100 per cent.
• Increasing electronic-based correspondence including digital forms, e-billing, e-invoicing, e-payables, internet-based invoices and quotes.
• Continue to focus on initiatives outside of the data centre to improve the overall environmental impact of IT.

Green IT initiatives have become fundamental to the way we look at and manage our IT systems. As such, going forward, we will move away from having a separate standalone Green IT strategy to environmental and sustainability considerations being assessed as part of our standard operating procedures.

Our environmental programs and initiatives to reduce packaging are well embedded in our everyday business activities. By minimising the packaging used for products and shipments and making packaging materials more sustainable, we are reducing environmental impacts and saving money on materials and distribution costs.

One of the ways we seek to minimise waste is by selecting the correct-sized carton for each order and using the most environmentally economical form of packaging, including 100 per cent recycled content cartons manufactured in Australia from Australian waste.

We are a signatory to the Australian Packaging Covenant (formerly called the National Packaging Covenant) and are committed to minimising and optimising the packaging we produce for our private label packaging as well as the packaging used for our deliveries. To view our 2010 NPC Annual Report click here.
To view our APC Action Plan for 2012-2016, click here.

Our main actions on packaging in 2010 were to:

• Analyse the materials and quantities used for a variety of packaging mediums including carton, air pillows, satchels, tapes and labels. A sustainable packaging solution is being developed based on the outcomes of the analysis.
• Partner with packaging solutions company, Amcor, to standardise our carton sizes and material (100 per cent recycled content).
• Launch our Packaging Take Back Program (please see below).

Race to the Top Sustainability Strategy

Our focus on sustainable packaging will continue in 2011 and we will be transitioning to align more closely with the “Race to the Top” sustainability strategy launched in October 2010 by our global company, Staples, Inc. which focuses on working with suppliers on sustainable packaging. In the “Race to The Top” sustainability strategy, Staples calls on suppliers to compete not only in terms of product quality, cost and features, but in finding innovative solutions for product manufacturing, packaging, and distribution which reduce impacts on the planet. The strategy aims to increase environmental, economic and social sustainability and remove waste and inefficiency of all types. It includes collaboratively developing sustainability scorecards for products and packaging. The scorecards will track design innovations and environmental attributes, driving more accountability throughout the supply chain.

Packaging Take Back Program

We have developed a Packaging Take Back Program to support our environmental commitments, meet our obligations to the Australian Packaging Covenant, and help our customers be sustainable. We encourage our customers to recycle all the packaging that they receive with their orders. However, we realise that it can be difficult for some our customers, particularly when it comes to satchels and air-filled pillows as these are made out of type 4 plastic which are not readily recycled in Australia.

Rather than these materials ending up in landfill, our Packaging Take Back Program allows customers to return them to us for recycling via our delivery drivers.

Sustainable Transport

Our core business relies on transport to deliver products to our customers. By its very nature, transportation impacts the environment and as such, we are actively seeking to balance the commercial needs of our business with our responsibility to protect the environment.

To help us to do this, we developed a Sustainable Transport Strategy in 2010 to:

• Comprehensively understand the impacts associated with our operational transportation
• Minimise the impacts of operational transportation while still allowing for full service provision
• Support our contracted delivery drivers to be environmentally responsible in their business operations
• Continue to maintain and develop partnerships with external stakeholders which promote good environmental practices
• Establish a process for reviewing our operational transportation model and activities to ensure our service delivery is aligned to our Environment Policy.

Our Transport Profile

Our transport infrastructure includes over 300 directly contracted dedicated drivers who deliver approximately 14 million boxes a year[3]. We have a National Distribution Centre at Erskine Park, Sydney in New South Wales. This helps us to group deliveries in a central location to maximise capacity and take advantage of consolidated dispatches. From here products get sent to customers via a number of transportation modes including road, rail (Sydney to Perth), sea (Sydney to Tasmania) and air (as required). We aim to use rail instead of road transport wherever possible.

[3] This figure does not include New Zealand.

Minimising our Impacts

Our approach to sustainable transport involves avoiding the need to travel where possible, reducing the distance travelled and encouraging sustainable practices. A major way we can encourage sustainable practices, for example, is by using our influence with our transport partners. We are doing this by introducing environmental requirements in the tender process for our transport partners.

While our emphasis is on reducing our carbon emissions, we offset any greenhouse gas emissions that cannot be eliminated or reduced. We subscribed a portion of all our directly contracted delivery vehicles to Greenfleet’s carbon abatement program. Greenfleet is a not-for-profit environmental organisation that specialises in reducing the environmental impacts of transport by planting native trees to offset carbon dioxide emissions. In 2010 4,653 trees were planted offsetting 1,247 tonnes of carbon emissions. Greenfleet commits that these trees will never be harvested, remaining as a permanent investment for rural Australia.

We are working to reduce our greenhouse gas emissions associated with transport by:

• Introducing specialist packaging scanners to ensure we select the optimal-sized box for each order to lower packaging and maximise box fill
• Consolidating virtualised warehouses from various lines of business into one to minimise delivery requirements
• Working with independent contracted drivers and our transport providers to encourage sustainable practices
• Measuring the kilometres travelled by our contracted delivery drivers to gain a better understanding of the carbon emissions associated with our customer deliveries.

Supporting Contracted Delivery Drivers

We operate using an independent contractor model which means that most of our branded drivers operate their own business, own their vans and pay for their fuel. They are accountable for their own productivity and the majority are given financial incentives to minimise kilometres travelled. It is in their best interests to operate sustainably. For example, drivers switch off their engines when dropping off packages and plan their deliveries to optimise routes and minimise fuel consumption.

Driver behaviour is a key area where we are making a difference. We have established a driver culture which focuses on not only delivering in a friendly and timely manner, but where environmentally-responsible actions are common practice. Drivers have also undertaken advanced driver environmental education training and have been issued with spill kits and guidance on their use.

We also work with the drivers to ensure that they regularly service and maintain their vehicles to help minimise emissions.

Performance Measurement

We will measure the performance of our Sustainable Transport Strategy by examining the reduction in transport carbon intensity over time, reviewing our operational transportation model on an annual basis and implementing improved processes as required.

Partnering with Sustainable Transport Providers

In New Zealand, all of our courier parcels are delivered by Freightways, a leading services provider in the express package, business mail and information management markets. It is important that our transport partners are aligned with our sustainability values. Freightways demonstrates this through its statement of intent which describes how the company is striving to minimise the environmental impact of its business operations. The company is undertaking a range of environmental initiatives including:

• Measuring its carbon emissions and its progress towards reducing and minimising emissions associated with the provision of its services
• The company’s vehicle fleet is not leased for a period over four years to ensure that it is renewed regularly with current lower emission technology. Freightways is also trialling hybrid vehicles.
• Freightways’ hub and spoke network is segmented and reviewed on a continuous basis to ensure the minimisation of kilometres driven and flown.
• Extending its range of recyclable courier satchels.

Working with partners, such as Freightways, means we can contribute to minimising environmental impacts in our supply chain.

We encourage our customers to reduce their environmental impacts and to recycle their waste. We also look to reduce, reuse and recycle in our operations. We have specific procedures in place for our facilities that require associates to recycle cardboard and paper, plastics and other items.

The table below details our total waste for the reporting period and the amount and percentage which went to landfill and which was recycled.

LANDFILL tonnes		RECOVERED tonnes
General	General Council	Plastic/Glass/Cans	Cardboard and paper	Other
1,631.69	42.60	230.35	1,938.12	5.00
Total Waste (t)	Total Waste to Landfill (t)	% Waste to Landfill	Total Waste Recovered (t)	% Waste Recovered
3847.76	1,674.29	43.51	2,173.47	56.49

Ethical Disposal Procedure

As with most companies, some of our waste is either unsafe or unethical to dispose of in the general waste stream. We therefore have developed Ethical Disposal Procedure guidelines which provide practical guidance on the disposal of waste in a safe and ethical manner. This includes guidance on the disposal of batteries, electrical items, fluorescent tubes and products classified as hazardous materials and/or dangerous goods. These items are disposed via an authorised hazardous waste contractor.

@desk Waste Education and Management Program

To manage our office-based waste, we introduced our @desk Waste Education and Management Program to all our sites in 2010. We provided waste management options across our sites for “at point of disposal” recycling along with educational and awareness materials. In our priority sites we replaced conventional under desk waste bins with bins which make it easier to recover paper-based products.

“Say No to Bottled Water”

Building on our “Say No to Bottled Water” campaign implemented in 2009 to reduce the amount of waste from bottled water consumption, in 2010 we began replacing bottled water at some of our locations with filtered water cabinets which use town water. We introduced 24 of these cabinets in New South Wales, Queensland, Tasmania and the Northern Territory which not only helped us to reduce the environmental impact of using plastic water bottles but has saved us $40,000.

Waste Assessment

We engaged a third party to examine our recycling and waste management systems and to identify opportunities for improvement. The assessments were carried out in our Richlands site in Queensland and Erskine Park in New South Wales. Recommendations from the assessment, which we have now implemented, included introducing signage on the bins to indicate the waste stream of the bin and introducing consistent colour bins for each waste stream to lessen the likelihood of waste being disposed of in the wrong bin.

An office waste management pilot is in place at Mascot in New South Wales which will incorporate a trial of organic waste collection in 2011.

Our GreenXpress program is our internal staff program which encourages associates to be environmentally-responsible. The program, which covers issues such as waste, energy and water, is managed by the GreenXpress Committee, which is made up of volunteers from different parts of the business. In 2010, we focused on developing the Committee’s knowledge and understanding of sustainability issues by conducting information sessions with environmental expert guest speakers.

We launched our GreenSkills Program in 2010 to meet the training requirements of our Environmental Management System. The goal of the program is to achieve an enduring culture of environmental improvement through the provision of training and awareness raising that is demonstrated by positive environmental performance. The core objectives of the GreenSkills Program are:

• To provide job specific skills and competence training for associates whose work may have a significant impact on the environment as a result of their job performance
• To provide general EMS awareness training for associates throughout the organisation.

To drive environmental improvements we have introduced environmental performance indicators into the targets of our supply chain management team and the company’s direct environmental representatives.

We will be implementing our Associate Environmental Initiative Recognition Program in 2011, which rewards associates for coming up with innovative, cost-effective and practical environmental initiatives that make a difference to the workplace.