climate change 2016 information request super retail...

27/06/2016 Climate Change 2016 Information Request Super Retail Group

https://www.cdp.net/sites/2016/50/44950/Climate%20Change%202016/Pages/DisclosureView.aspx 1/23

Climate Change 2016 Information RequestSuper Retail Group

Module: Introduction

Page: Introduction

CC0.1IntroductionPlease give a general description and introduction to your organization.

Super Retail Group is one of Australasia’s leading specialty retailers and is listed in the Australian Stock Exchange. With more than 640 stores,over 12,000 team members and annualised turnover in excess of $2 billion, the Group's portfolio includes Amart Sports, BCF Boating CampingFishing, Goldcross Cycles, Oceania Bicycles, Ray’s Outdoors, Rebel, Supercheap Auto, Workout World, Infinite Retail and Super RetailCommercial. The Group has operations in Australia, New Zealand and China.

Our ability to deliver great value, choices, products and service to our customers, in whichever manner they prefer to experience our brands, isachieved through our continued focus on new product introduction, sourcing and supply chain initiatives, and the further development of ourintegrated multichannel customer offer.

CC0.2Reporting YearPlease state the start and end date of the year for which you are reporting data.The current reporting year is the latest/most recent 12month period for which data is reported. Enter the dates of this year first.We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to thecurrent reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (Thisdoes not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years ofdata, please give the dates of those reporting periods here. Work backwards from the most recent reporting year.Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosedTue 01 Jul 2014 Tue 30 Jun 2015

CC0.3Country list configuration Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carriedforward to assist you in completing your response.

Select countryAustralia

CC0.4Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in thiscurrency.

AUD ($)

CC0.6ModulesAs part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in theautomobile or auto component manufacture subindustries, companies in the oil and gas subindustries, companies in the information technology andtelecommunications sectors and companies in the food, beverage and tobacco industry group should complete supplementary questions in addition tothe main questionnaire.If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appearbelow but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please [email protected] you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the modulebelow. If you wish to view the questions first, please see https://www.cdp.net/enUS/Programmes/Pages/Morequestionnaires.aspx.

Further Information

Further information about our Group can be found at our corporate website: http://www.superretailgroup.com/

Module: Management

Page: CC1. Governance

CC1.1Where is the highest level of direct responsibility for climate change within your organization?

Board or individual/subset of the Board or other committee appointed by the Board

CC1.1aPlease identify the position of the individual or name of the committee with this responsibility

mailto:[email protected]

https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx



The highest level of responsibility for climate change is the Company's Managing Director, who is an executive member of the Board of Directorsand also serves as the Company’s CEO.

The Chief Property & Legal Officer (CP&LO), supported by the Group Sustainability Manager, is responsible for driving the sustainabilitystrategy, which includes actions to address climate change. The CP&LO reports to the Company's Managing Director, the Board Member who isultimately responsible for Sustainability for the Group.

The Group has an Environmental Management System (EMS) Committee, which includes representatives of various departments of thebusiness including: Property, Supply Chain, Retail, Finance, Human Resources, Information Systems and Merchandising to assist with theimplementation of the sustainability strategy.

CC1.2Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2aPlease provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefitfrom these incentives?

The type ofincentives

Incentivizedperformance indicator Comment

Environment/Sustainabilitymanagers

Monetaryreward

Energy reduction projectEnergy reduction targetEfficiency projectEfficiency targetBehaviour changerelated indicatorOther: Waste andPackaging Reductionprograms

The Group Sustainability Manager chairs the Group's EMS Committeemeetings and is responsible for driving a range of environmentalinitiatives across the Group, including energy, waste and packagingreduction programs, as part of the overall environmental strategy forthe Group. EMS meetings are conducted in a quarterly basis. TheGroup Sustainability Manager is also part of the our current BusinessAgility Electricity Efficiencies program. The program aims to improveGroup processes, supported by strategic relationships, to reduceenergy consumption and cost.

Facility managersRecognition(nonmonetary)


The Facility Manager is a member of the EMS Committee and is theProject Lead of our current Business Agility Electricity Efficienciesprogram.

Other: Company Secretaryand Chief Legal &Property Officer

Monetaryreward


The Company Secretary and Chief Legal & Property Officer is part ofthe Group Leadership Team and is the Project Sponsor of our currentBusiness Agility Electricity Efficiencies program. He is also amember of the EMS Committee.

All employeesRecognition(nonmonetary)


All team members are responsible for managing resource usage andcontributing to the achievement of targets set up by the Group.

Buyers/purchasersRecognition(nonmonetary)

Environmental criteriaincluded in purchasesSupply chainengagementOther: Packagingimprovements/reductionsand containeroptimisation

Our International Operations Packaging (IOP) team in China worksclosely with our trade partners to ensure that the packaging is inaccordance to our environmental specifications, which includes thefollowing core objectives: 1. Design – packaging optimised to achieveresource efficiency and reduced environmental impact withoutcompromising product quality and safety. 2. Recycling – the efficientcollection and recycling of packaging. 3. Product Stewardship – ademonstrated commitment to product stewardship by the supplychain. As part of the sourcing process, our team liaises with factorieson a regular basis and performs packaging assessments for all newproducts.

Other: Transport ManagerMonetaryreward

Other: Reduction of kmsdriven

The Transport Manager is responsible for the management of theGroup's freight transport, including reduction of kms driven, whichleads to emissions and cost reductions.

Other: Area Managers Monetaryreward

Energy reduction projectEnergy reduction targetEfficiency projectEfficiency targetBehaviour changerelated indicator

SCA Area Managers are responsible for managing power usage andcontributing to the achievement of targets set up by the Group.

Other: Store Managers Monetaryreward

Energy reduction projectEnergy reduction targetEfficiency projectEfficiency targetBehaviour changerelated indicator

SCA Store Managers are responsible for managing power usage andcontributing to the achievement of targets set up by the Group.



Further Information

Page: CC2. Strategy

CC2.1Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multidisciplinary company wide risk management processes

CC2.1aPlease provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequencyof

monitoring

To whom areresults

reported?

Geographicalareas

considered

How far intothe futureare risks

considered?

Comment

Sixmonthly ormorefrequently

Board orindividual/subset of theBoard orcommitteeappointed bythe Board

Australia,New Zealandand China

1 to 3 years

The Group Sustainability Manager conducts risk assessments through theyear as part of the Group's Environmental Management System (EMS).Climate change related risks and opportunities are discussed with committeemembers during quarterly EMS meetings and presented to the Board andGroup Leadership Team (GLT) monthly through Board reports. Risks andopportunities are also taken into consideration for the purposes of preparingthe sustainability strategy and expense budgets for the proceeding 12 months.In addition, a number of other risks that meet the Company’s materiallythresholds are noted on the corporate risk profile and mitigation plan, which isreviewed by the Risk Manager and submitted to the Board on a annual basisfor consideration and approval.

CC2.1bPlease describe how your risk and opportunity identification processes are applied at both company and asset level

At a company level, climate change risks and opportunities are identified through the following sources: Media reports and announcements in relation to climate change policy; Legal updates and professional analysis from legal and consultancy firms; Market analysis from reputable companies such as Reputex; Climate change reports commissioned by Government; Bulletins and updates from the Clean Energy Regulator; Briefing sessions conducted by government departments, Regulators and the Australian Packaging Covenant, of which our Group is asignatory since 2008; Industry advice from trade partners, associations and external consultants; Store visits, review of current practices and consultation with team members and management.

Once the risks have been identified, they are assessed and escalated to management for action.

The process for identifying risks and opportunities at an asset level is inline with the process outlined above. To ensure accurate planning andbudgeting, the financial impact that climate change has on resource usage costs (such as energy and waste) is calculated for each businessunit/department and incorporated into the budgeting process.

CC2.1cHow do you prioritize the risks and opportunities identified?

Risks are prioritised based on the likelihood of an event occurring and severity of impact if the event does occur. Risks are classified and rankedin terms of sales and profit impact, reputational risks, service impacts or regulatory obligations. Climate related risks associated with ouroperations include: Regulatory changes in the legislation in relation to carbon, waste and product stewardship; Variable temperatures affecting season and sales; Extreme weather events affecting communities and physical assets.

Opportunities to reduce operational costs related to waste, packaging and electricity consumption and creating sustainable value to the grouphave been identified through this process.

CC2.2Is climate change integrated into your business strategy?

Yes

CC2.2aPlease describe the process of how climate change is integrated into your business strategy and any outcomes of this process

The Group’s strategy addresses climate change risks with longer term goals for reduction of environmental footprint and improvement of supplychain management.

Our Ethical Sourcing Policy, Environmental Policy and Sustainable Procurement Policy support our commitment to achieve those goals.

As part of our EMS, climate change risks are identified and referred to responsible departments/ divisions for action, which includes compliancewith regulations (i.e. NGER scheme and Illegal Logging Prohibition). Our main focus areas are related to waste, packaging and energyconsumption.



Action Plans addressing climate change risks and environmental initiatives are in place and reviewed on a regular basis. We currently have thefollowing plans: Australian Packaging Covenant (APC) Action Plan; Waste Management Plan; and

Electricity Sustainability Plan.

The key factors that have influenced our strategy to address climate change include Australia’s commitment to reducing greenhouse emissionsunder the Kyoto Protocol and the Paris Agreement, regulatory changes in the carbon legislation; variable temperatures affecting season andsales, more extreme weather events affecting communities and physical assets and opportunities to reduce operational costs related to waste,packaging and electricity consumption and creating sustainable value to the Group.

To ensure accurate planning and budgeting, the financial impact that climate change has on resource usage costs (such as energy and waste)is calculated for each business unit/department and incorporated into the budgeting process. For example, our Procurement team undertakesregular analysis of all electricity tariff increases with our trade partner to project consumption, emissions and rates and determine forwardestimates for energy costs.

Some outcomes during FY15 include: Product recycling (customer focus):35,929 batteries collected in SCA stores in Australia and NZ.233,200L of used oil collected in 144 SCA stores in Australia. Packaging: 25.4% pallet utilization improvement (+7.4% compared to FY 2014) and 8.8% container utilization improvement (+1.6% comparedto FY 2014). Our team reviewed the packaging of over 300 overseas suppliers, with 90% of these being amended to improve packagingutilization, reducing a significant amount of air space and packaging waste. Transport During FY 2015 the Group has completed the construction of our new distribution centre network. This involved the construction ofmodern new facilities in Sydney and Brisbane, incorporating such features as water tanks to conserve water consumption and modern designsto improve the efficiency of lighting. The Group was able to close two older, less energy efficient facilities in Brisbane as part of the redesignednetwork. The new distribution centres have been set up as multiuser facilities, with a number of the Group’s retail brands being housed in asingle facility. From a transport perspective the new distribution centre network has resulted in significant reductions in both truck trips and totalkilometres travelled. This is because our distribution centres are located closer to the store network, and we have been able to consolidate loadsacross multiple retail brands. As a result, we achieved a reduction of more than 2.5 million kilometres in truck travel, as well as reducing thenumber of truck trips by over 1,500 during FY 2015. Electricity Whilst our overall electricity consumption increased, like for like comparison to the previous reporting period (average per sitebasis), revealed that our electricity consumption per site was reduced by 1%.

CC2.2c Does your company use an internal price of carbon?

No, but we anticipate doing so in the next 2 years

CC2.3Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all thatapply)

Direct engagement with policy makersTrade associationsOther

CC2.3aOn what issues have you been engaging directly with policy makers?

Focus oflegislation

CorporatePosition Details of engagement Proposed legislative solution

Other:Packagingproductstewardship

Support

Attendance to Australian Packaging Covenant Councilmeeting on behalf of the Retail Council (formerAustralian National Retailers Association) to contributewith the discussion on packaging stewardship policy.

The Group supports the continuation of the AustralianPackaging Covenant as the most effective approach toincrease packaging resource recovery and recyclingand decrease packaging litter.

Other: Oilrecycling

Supportwith minorexceptions

Feedback on Product Stewardship for Oil Program.

Increasing recycling and providing more options to thecommunity by encouraging more businesses to collectused oil. We believe that this can be achieved byproviding oil collectors with product stewardshipbenefits.

CC2.3bAre you on the Board of any trade associations or provide funding beyond membership?

Yes

CC2.3cPlease enter the details of those trade associations that are likely to take a position on climate change legislation

Tradeassociation

Is yourpositionon climatechange

consistentwith

theirs?

Please explain the trade association's positionHow have you, or are youattempting to, influence the

position?

LargeFormatRetailAssociation(LFRA)

Consistent

The LFRA is regarded as the national peak body representing the interestsof large format retailers, investors, owners, developers and servicesuppliers in Australia. The LFRA's position is to ensure futuredevelopments of large format retail space are viable in the longterm for allinvolved, while creating retail facilities that add value to the community inkeeping with environmental and other planning considerations.

Our Company Secretary and ChiefLegal & Property Officer is amember of the LFRA's Board ofDirectors and has been proactivelyinvolved in a number of energyefficiencies programs across theGroup.Our CEO, Peter Birtles, is the



RetailCouncil Unknown The Retail Council is a new body so new policy positions are being

developed and Sustainability will be on the agenda.

Chairman of the Retail Council(former Australian NationalRetailers Association ANRA) andwill be able to influence thedevelopment of policy in this area.

CC2.3ePlease provide details of the other engagement activities that you undertake

The Group is proactively involved with the National Retailers Association (NRA) and the APC. Some engagement activities include: Meeting with policy makers through industry associations to discuss packaging product stewardship policy and the future of the APC. Meeting with trade partners, industry and Environmental and Energy consultants to better understand the potential changes to climate changepolicy settings, as those proposed changes were/are announced. The Group is a signatory to the APC, a sustainable packaging initiative which aims to change the culture of business to design moresustainable packaging, increase recycling rates and reduce packaging litter. As part of our commitments as a signatory, we are required todevelop action plans and report our progress against our targets annually. During FY 2015 the Group was part of a case study funded by the APC to explore the business case for packaging sustainability. The studyexamined successful projects from eleven signatory companies. Our effective engagement with trade partners to optimise and recyclepackaging was highlighted in the study, which is available in the APC website:http://www.packagingcovenant.org.au/data/Resources/PackagingSustainability/Super_retail_group.pdf

In December 2014 we were invited to the APC High Performers Strategic Engagement Workshop held in Sydney to present the case study andshare our sustainability strategy and journey with other high performer signatories. The event was a good opportunity to engage with othersignatories and share their knowledge and experiences.

CC2.3fWhat processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climatechange strategy?

Our Sustainability Manager engages with policy makers through industry associations’ forums and meetings. Updates are provided to thebusiness through EMS meetings and Board reports to assist with overall strategy. Activities undertaken with the National Retailers Association,Australian National Retailers Association and the Australian Packaging Covenant are consistent with the major focus areas identified in thestrategy to reduce our environmental impact.

Further Information

Attachments

https://www.cdp.net/sites/2016/50/44950/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC2.Strategy/SRG casestudy.pdf

Page: CC3. Targets and Initiatives

CC3.1Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in thereporting year?

No

CC3.1fPlease explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years

Emissions reduction targets have not established due to challenges around effective energy reporting for all of our sites.The Group reached an agreement with a third party energy management provider to address this issue and developed a longterm EnergyManagement Strategy, identifying actions and setting targets for completion during FY15.As the Group continues to expand its operations and the number of stores, our forecast is that our emissions are likely to increase over the nextfive years. In FY15 the Group increased the number of sites by around 1.5%. It is estimated that store growth may continue at a similar rate inFY16, which will likely lead to a general increase in emissions.A number of energy efficiency programs are already in place to assist with a reduction in emissions per site, including: Implementation of organisational culture initiatives educating team members on how to reduce power usage; Team member engagement – seeking feedback from team members on how to further improve energy efficiency; Structural initiatives – changing building specifications, such as lighting upgrades and heat reflective roof paint; Installation of energy saving devices and control equipment, such as ‘smart’ thermostats and light sensors; and Procedural initiatives – optimising the hours of operation of equipment, e.g. air conditioning, lighting and illuminated signage through timers &PE cells.Our plan is to continue with our current initiatives as well as continually reviewing new technology to ensure our projects remain current andeffective. The Group is also looking into setting sciencebased targets for emissions reduction.

CC3.2Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions?

Yes

CC3.2aPlease provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions

Level of

Are youreportinglow carbon

Taxonomy,project or

methodologyused toclassify

%revenuefrom lowcarbon

% R&D inlow

carbon

https://www.cdp.net/sites/2016/50/44950/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC2.Strategy/SRG%20case%20study.pdf



aggregation Description of product/Group of products product/sor avoidedemissions?

product/s aslow carbon

or tocalculateavoidedemissions

product/sin the

reportingyear

product/sin the

reportingyear

Comment

Companywide

Our brands range a number of products thatare designed to avoid energy consumptionfrom nonrenewable sources. For example,BCF, Rays and Super Cheap Auto haveincluded a range of solar powered products intheir range, including solar battery chargers,panels, camping showers and lights. Amartand Rebel also started ranging a selfpowergenerated bike during FY 2015.

Avoidedemissions

Other:Science

Less thanor equalto 10%

Electricity which isgenerated usingrenewable energydoes not produce(additional) CO2. The% revenue fromthose products in thereporting year wasless than 1%,however salesfigures are positive.For example: SCAreported a 30%increase in sales ofsolar products(charging, kits andaccessories) in FY15.

CC3.3Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementationphases)

Yes

CC3.3aPlease identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development Number ofprojects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked*)

Under investigation 23To be implemented* 47 1519Implementationcommenced* 4 103

Implemented* 19 672Not to be implemented 1

CC3.3bFor those initiatives implemented in the reporting year, please provide details in the table below

Activitytype

Description ofactivity

EstimatedannualCO2esavings(metrictonnesCO2e)

Scope Voluntary/Mandatory

Annualmonetarysavings(unit

currency as

specifiedin CC0.4)

Investmentrequired(unit

currency as

specifiedin CC0.4)

Paybackperiod

Estimatedlifetime of

theinitiative

Comment

Energyefficiency:Buildingservices

A total of 17 storeswere part of theprogram whichinvolved replacinghigh bay lighting andperforming T5 Fluroconversions inselected stores.

672Scope 2(locationbased)

Voluntary 52275 167877 13years 610 years

Voluntaryreduction inScope 2emissions.*Estimatedlifetime ofthis initiativeis based onaveragelease term.

Behavioralchange

The Groupimplemented anumber oforganisational cultureinitiatives to educateour team members onhow to reduce powerusage, including: Team memberengagement; Seekingfeedback from teammembers on how tofurther improve energyefficiency; and Procedural initiatives –optimising the hours ofoperation ofequipment, e.g. airconditioning, lightingand illuminatedsignage throughtimers & PE cells.

Those measures will

830Scope 2(locationbased)

Voluntary 215849 0 <1 year Ongoing

Voluntaryreduction inScope 2emissions



Those measures willlead to a reduction inScope 2 emissions,contributingsignificantly to overallemissions reductiongoals.


Our new leasedDistribution Centre inBrendale have beendesigned to ourspecifications usingsmart designtechnologies to makethem more efficientand includedtemperature andpower saving design,such as: Pneumaticcontrolled Louvers onSouth and West wallsregulates the heatload and minimiseexposure from the sun;Roller doors haveperforated panels toallow natural air flow; Cladding and roofinsulation to reduceheat; Industrial fansto reduce therequirement formultiple fans in allareas; Nightlyventing of DC to expelhot air and improvecomfort levels; Lighting controloverrides/ turns offlighting if inadvertentlyleft on; DC Lighting isTristage controllighting to reduceconsumption whennatural light levelsufficient; and Allwarehouse forkliftequipment useCentury “Smartcharging”, whichreduces charging timeand extends life of theforklift battery.

Scope 2(locationbased)

Voluntary 1115years

Voluntaryreduction inScope 2emissions.*Estimatedlifetime ofthis initiativeis based onlease term.**TotalestimatedannualCO2esavings notincluded insectionCC.3.3.a(data fromcontractorsunavailable)


Our new leasedSupport Office inBrendale have beendesigned to ourspecifications usingsmart designtechnologies to makethem more efficientand includedtemperature andpower saving design,such as: Tintedwindows to reduceheat; Vertical louversinstalled to reducedirect sunlight; AirConditioningtemperature controlsystem to ensure thatefficient temperaturesettings aremaintained; Energyefficient T5 fluorescentlighting installed in allareas.


Voluntary 1115years

Voluntaryreduction inScope 2emissions.*Estimatedlifetime ofthis initiativeis based onlease term.**TotalestimatedannualCO2esavings notincluded insectionCC.3.3.a(data fromcontractorsunavailable)

Wasterecovery

The Group hasrecycled 9444 tonnesof waste in Australia(mainly paper andcardboard) duringFY15.

3519 Scope 3 Voluntary 1374308 27610 <1 year Ongoing

Voluntaryreduction inScope 3emissions

CC3.3cWhat methods do you use to drive investment in emissions reduction activities?

Method Comment



Dedicated budget forenergy efficiency Investment in energy efficiency upgrades concurrent to store works activity such as refurbishments and new stores.

Financial optimizationcalculations

Identification of initiatives with financial benefits and long term cost savings through analysis of financial data fromcompleted projects.

Dedicated budget forother emissionsreduction activities

Projects to mitigate emissions related to energy, waste, packaging and transport are assessed for feasibility uponpresentation of business case and/or cost/benefit analysis. Examples include: inclusion of cardboard compactorsystems in our Distribution Centres, introducing a tool for electricity reporting, use of paper crates for weights andexercise equipment at Sports division and oil recycling initiative in selected SCA stores.

Compliance withregulatoryrequirements/standards

Online Sustainability Training is provided to all team members. The training includes topics around waste,packaging and energy reduction and outlines regulatory compliance obligations. All new team members arerequired to complete the training. Existing team members are required to complete it annually.

Employee engagement We promote energy, packaging and waste reduction to our team members through our internal media, whichincludes website and email communications.

Further Information

For more information, please refer to the Sustainability section of our Corporate Review (pages 6471).

Attachments

https://www.cdp.net/sites/2016/50/44950/Climate Change 2016/SharedDocuments/Attachments/ClimateChange2016/CC3.TargetsandInitiatives/2015 Corporate Review.pdf

Page: CC4. Communication

CC4.1Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year inplaces other than in your CDP response? If so, please attach the publication(s)

Publication StatusPage/Sectionreference

Attach the document Comment

In voluntary communications Complete

Sustainabilityat SuperRetail Grouppages 6471

https://www.cdp.net/sites/2016/50/44950/Climate Change2016/SharedDocuments/Attachments/CC4.1/SRG_CorporateRevie.pdf

In other regulatory filings Complete Wholedocument

https://www.cdp.net/sites/2016/50/44950/Climate Change2016/Shared Documents/Attachments/CC4.1/APC ReportFY15 Final.pdf

We submit annualreports to theAustralianPackagingCovenant as partof ourcommitments.

In other regulatory filings Complete Wholedocument

https://www.cdp.net/sites/2016/50/44950/Climate Change2016/Shared Documents/Attachments/CC4.1/FINALNGER Report FY15.pdf

We are requiredto submit annualreports to theClean EnergyRegulator inAustralia, underthe NGERscheme.

In mainstream reports(including an integrated report)but have not used the CDSBFramework

CompleteSustainabilitysection (page3)

https://www.cdp.net/sites/2016/50/44950/Climate Change2016/Shared Documents/Attachments/CC4.1/2015Annual Report.pdf

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue orexpenditure? Tick all that apply

Risks driven by changes in regulationRisks driven by changes in physical climate parametersRisks driven by changes in other climaterelated developments

CC5.1aPlease describe your inherent risks that are driven by changes in regulation

Risk driver DescriptionPotentialimpact

Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

The estimatedcost ofmanaging

https://www.cdp.net/sites/2016/50/44950/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC3.TargetsandInitiatives/2015%20Corporate%20Review.pdf



Emissionreportingobligations

Super RetailGroup isrequired tomeasure andreportcarbonemissionsunder theNationalGreenhouseand EnergyReporting(NGER) Act.Failure tocomply withthe Act canlead to finesand impacton theGroup'sreputation.

Increasedoperationalcost

1 to 3years Direct

Morelikely thannot

Low

Failure tocomply withthe NGER Actrequirementscould result infines of up toAUD340,000and potentialloss of salesdue toadverseimpact on theGroup'sreputation.

The Group metthe thresholdfor NGERreporting in FY11. Systemsandprocedures forcollecting,verifying andvalidatingenergy dataweredeveloped atthe time toaddress thecompliancerequirementsunder theNGER Act andare reviewedfor continuousimprovementon a regularbasis.

electricity data,preparing andcompilingsupportingdocumentsand preparingthe reportinternally inFY15 wasaroundAUD$15,000.This figure isbased on anestimated 15%of the totalworkload fortheSustainabilitydepartment, inaddition to thecost of crossfunctionalresources andmanagementteam allocatedto provide therequired dataand review thereport beforesubmission tothe CleanEnergyRegulator.

Carbontaxes

Theintroductionof a carbonpricingmechanismin Australiain July 2012hasincreasedouroperationalcosts, inparticularenergy,water andwaste costs(flowoneffect).


1 to 3years

Indirect(Supplychain)

Very likely Low

The carbonpricingscheme wasestimated tohaveincreased theGroup'soperationalcosts by atleast 5% inthe first 12months of thescheme.

The Group hasintroduced acouple ofusagereductioninitiatives tomitigate therising costsassociated withregulatorychanges,including Implementationoforganisationalcultureinitiatives educating teammembers onhow to reduceresourceusage; Structuralinitiatives –changingbuildingspecifications,such aslightingupgrades andheat reflectiveroof paint; Installation ofenergy savingdevices andcontrolequipment,such as ‘smart’thermostats,light sensors;and Proceduralinitiatives –optimising thehours ofoperation ofequipment(e.g. airconditioning)and reviewingwastepractices.

The Groupspent aroundAUD$200K inFY15 to fundenergyefficiencybuildingupgrades tohelp mitigatethe impact ofregulatorychanges andrising costsassociatedwith energycosts. Anumber ofinitiatives arealso in placeto continuedrivingbehaviouralchange, at nocost.

The Grouphasoperations inNZ, whichcurrently has



Cap andtradeschemes

an emissionstradingscheme inplace underthe ClimateChangeResponseAct 2002.The mainimpact of anemissionstradingscheme isincreasedtransportfuel,electricityand wastedisposalcosts (flowon effect).


1 to 3years


Likely Low

The costs varyaccording tofluctuations incarbon priceunder a capand tradescheme. Forexample, it isestimated thatelectricityprices in NZhaveincreased byaround 4% inFY15.

Refer to carbontaxes above

Refer tocarbon taxesabove

Internationalagreements

The Grouphasoperations inAustralia, NZand Chinaand source alarge amountof productsfromoverseassuppliers.Therefore, itcan beimpacted bybothmandatoryandvoluntaryinternationalagreements,such as theKyotoProtocol. Forexample,productscontainingsyntheticgreenhousegases arelisted underthe KyotoProtocol andsince July2012 havestrictimportationrequirementsto theAustralianmarket.


3 to 6years Direct Likely Low

Noncompliancewith OzoneProtectionand SyntheticGreenhouseGasManagementAct 1989 canattractpenalties ofup toAUD$275,000andimprisonmentof up to twoyears. Thereis also apotential lossof sales dueto adverseimpact on theGroup'sreputation.

The Group hasa robustcomplianceprogram inplace to ensurethat ourproduct rangecomply withlegalrequirements.

The costs ofperformingproduct rangereviews isresourcerelated andhave beenembedded inthe baseresourcingcost for theMerchandisingandSustainabilityfunctions.

Voluntaryagreements

The Group isa signatoryof theAustralianPackagingCovenant(APC) andhascomplianceobligations,includingpayment ofannual feesto theCovenantFund.


>6 years Direct Likely Low

Failure tocomply withsignatoryobligationscan lead tocancellationofmembershipand referral tothe relevantgovernmentjurisdiction forfailing to meettheseobligations.There is alsoa potentialloss of salesdue toadverseimpact on theGroup'sreputation.

The Group hasa dedicatedresource toensure thatAPCobligations aremet andunderstood byall teammembers.

The costs ofperformingproduct rangereviews isresourcerelated andhave beenembedded inthe baseresourcingcost for theSustainabilityfunction. APCMembershipcost in FY15wasAUD$8,140.

CC5.1bPlease describe your inherent risks that are driven by changes in physical climate parameters

Estimated



Risk driver Description Potentialimpact

Timeframe Direct/Indirect

Likelihood

Magnitudeof impact

financialimplications

Managementmethod

Cost ofmanagement

Change intemperatureextremes

Expert reportsin Australia(such as theGarnautClimateChangeReview andreports fromthe InsuranceCouncil ofAustralia)have predictedmore extremedays duringincreasinglywarmerssummers,which mayaffectcustomerspending. Forexample, saleof outdoorequipmentmay declineas a result ofextremewarmer days.

Reduceddemand forgoods/services

1 to 3years Direct

Morelikely thannot

Low

The financialimpactwoulddepend onthe durationof theextremeweatherevent.

The Groupdiversifies itsproduct offerrange acrossall brands inorder tomanage salesdecline inparticularproductcategories.

Managementof productrange is partof the Brands'businessstrategy andhas no addedcost to theGroup.

Change inmean(average)temperature

Increasedtemperaturesmay impact onresourceusage. i.e.higher airconditioningconsumption.


1 to 3years


Morelikely thannot

Low

According tomediareports, it isestimatedthatAustralianbusinesseshaveexperiencedan almost80%increase inprices since2009. It isalsoestimatedthat thereare morerises on theway.

A couple ofelectricityusagereductioninitiativeshave been putin place toreduce therising costs ofelectricity,includingstructural andbehaviouralchanges.

The Groupspent aroundAUD$200K inFY15 to fundenergyefficiencybuildingupgrades tohelp mitigatethe impact ofregulatorychanges andrising costsassociatedwith energyconsumption.Behaviourchangeinitiatives arealso in placeat no cost tothe Group.

Change inprecipitationextremesanddroughts

Extendedperiods ofdrought andrainfalldeficiency mayimpact onresourceusage. i.e.waterconsumption


>6 yearsIndirect(Supplychain)

About aslikely asnot

Low

The financialimpactwoulddepend onthe drought/rainfalldeficiency.Extendedperiods ofdrought andrainfalldeficiencyare likely toincreasewaterconsumptioncosts,increasingthe Group'soperationalcosts.

Whilst waterconsumptionis not asignificantenvironmentalaspect to theGroup, acouple ofinitiativeshave been putin place toreduce thecosts of waterconsumption,includingstructural andbehaviouralchanges(waterconsumptionreduction iscovered in ouronlineSustainabilitytraining).

The Groupincurredcosts ofbetweenAUD1520,000 toinstall watertanks in 3 ofits sites.Behaviourchangeinitiatives arealso in placeat no cost tothe Group.

Increase inextremetropicalcyclones maylead to greaterrisk of damageto storeslocated in

The financialimpact of

The Grouptakes intoaccount arange ofinformationavailable froma range ofsources,including theAustralianBureau ofMeteorologyto prepare to The



Tropicalcyclones(hurricanesandtyphoons)

located inareas withsignificantweatherevents activitysuch astropicalcyclones andseverethunderstorms.This may leadto disruption ofbusinessactivities,supply chainand anincrease ininsurancecosts.


1 to 3years Direct

Morelikely thannot

Low

impact of

extremetropicalcycloneswoulddepend on 2factors:duration ofbusinessinterruptionand buildingdamage.

to prepare to

the tropicalcycloneseason inorder tominimisedamage toour stores andensure thesafety of ourteammembers.Appropriateinsurancecoverage isalso in placeto minimisethe Group'scostsassociatedwith this typeof weatherevent.

Themanagementof mitigationstrategies(such asinsurancereview) ispart of ourrisk strategyand has noadded cost tothe Group.

Otherphysicalclimatedrivers

Expert reportsin Australia(such as theGarnautClimateChangeReview) havepredictedmore frequent,more extremebushfires andheat waves.This may leadto disruption ofbusinessactivities andan increase ininsurancecosts.


3 to 6years Direct

Morelikely thannot

Low

The financialimpact ofbushfiresand heatwaveswoulddepend on 2factors:duration ofbusinessinterruptionand buildingdamage.

The Grouptakes intoaccount arange ofinformationavailable froma range ofsources,including theAustralianBureau ofMeteorologyto prepare tothe bushfireseason inorder tominimisedamage toour stores andensure thesafety of ourteammembers. Oursites meetappropriatebuildingstandards (i.e.fitted withsmokealarms) andhaveappropriateinsurancecoverage tominimise theGroup's costsassociatedwith this typeof weatherevent.

Themanagementof mitigationstrategies(such as sitebuildingdesignrequirementsandinsurancereview) ispart of ourrisk strategyand has noadded cost tothe Group.

CC5.1cPlease describe your inherent risks that are driven by changes in other climaterelated developments

Riskdriver Description

Potentialimpact

Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Sustainabilityis part of thebusinessstrategy andfully supportedby our CEOand ManagingDirector. TheGroup has adedicatedSustainabilityManager whois responsiblefor developingstrategies toreduce thegroup'senvironmentalimpact,



Reputation

Failure toaddressclimatechange risksmay lead toloss ofshareholderconfidence bygiving theimpressionthat the Group(and itsbrands) is notmeeting itsCSRobligationsandenvironmentalcommitments.

Reduceddemand forgoods/services

1 to 3years Direct Very

unlikely Low

Damage tothe Group'sand itsbrandsreputationcould leadto loss ofcustomerconfidenceresulting inreduction insalesrevenue andshare value.

meetingmandatoryreporting andvoluntarydisclosuresobligations.The Group alsohas anEnvironmentalManagementSystem (EMS)in place tobetter manageitsenvironmentalimpacts anddriveenvironmentalinitiatives,including thereduction ofwaste,packaging andenergyconsumption.Our EMSCommittee hasrepresentativesof variousdepartmentsacross theGroup andmeets in aquarterly basisto discussways toimprove ourenvironmentalpractices andmonitor ourprogressagainst ourgoals.

Managementof the Group'ssustainabilityplan is astandardcomponent ofour businessstrategy.Costs arepredominatelyresourcerelated andhave beenembedded inthe baseresourcingcost for theSustainabilitylfunction.

Further Information

Page: CC6. Climate Change Opportunities

CC6.1Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations,revenue or expenditure? Tick all that apply

Opportunities driven by changes in regulationOpportunities driven by changes in physical climate parametersOpportunities driven by changes in other climaterelated developments

CC6.1aPlease describe your inherent opportunities that are driven by changes in regulation

Opportunitydriver Description Potential

impact Timeframe Direct/Indirect Likelihood Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Carbontaxes

Theintroductionof the carbonpricingscheme inAustralia inJuly 2012havepresentedopportunitiesto review ourresourceusage (inparticularenergy andwaste) andimplementinitiatives toreduce ourcarbonemissionsandoperationalcosts.

Reducedoperationalcosts


Thefinancialimplicationwill dependon theresourceusage andthe initiative.Please referto sectionCC5.1a

The Groupcontinues todriveinitiatives toreduceresourceconsumptionsuch asproceduralandbehaviourinitiatives.

The costs ofmanagingtheseinitiatives areresourcerelated andhave beenembedded inthe baseresourcingcost for theSustainabilityfunction.



Cap andtradeschemes

Theintroductionof theemissionstradingscheme inNew Zealandunder theClimateChangeResponse(EmissionsTrading)AmendmentAct 2008presentedopportunitiesto review ourresourceusage (inparticularenergy andwaste) andimplementinitiatives toreduce ourcarbonemissionsandoperationalcosts.



Thefinancialimplicationwill dependon theresourceusage andthe initiative.Please referto sectionCC5.1a

The Groupcontinues todriveinitiatives toreduceresourceconsumptionsuch asproceduralandbehaviourinitiatives.

The cost ofmanagingtheseinitiatives isresourcerelated andhave beenembedded inthe baseresourcingcost for theSustainabilityfunction.

Emissionreportingobligations

Reportingobligationsunder theNationalGreenhouseand EnergyReporting(NGER)Schemeprovided theGroup theopportunity todevelopbetterprocesses togather andverify energydata, which isa corecompetencerequired forimplementinga soundenergyreductionstrategy.



Reduction ofthe Group'selectricityusage coulddeliversignificantsavings inelectricitybills

The Grouphadelectricityaccountmanagementin placeduring FY15.This serviceprovider hasbeencontracted toassist us withelectricityprocurement,billingvalidationandelectricityreporting.

Theapproximatecost ofmanagingelectricityaccounts inAustralia &NZ in FY15was around$218,813.00.

CC6.1bPlease describe the inherent opportunities that are driven by changes in physical climate parameters

Opportunitydriver

Description Potential impact Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Otherphysicalclimateopportunities

Whilstnaturaldisasterscan impactourbusinessoperationsin someregions, itcan alsoprovide anopportunityto increasesales ofsomeproductcategories,such asgenerators,watercontainers,torches, etc.

Increaseddemand forexistingproducts/services


Higherdemand islikely toincrease thenumber ofsales andcustomers instores.

OurMerchandisingteams conductregularproduct rangereviews, whichtakes intoconsiderationchanges incustomerbehaviour andclimate.

The cost ofperformingproduct rangereviews isresourcerelated andhave beenembedded inthe baseresourcingcost for theMerchandisingfunctions forall divisions.

Increase ofthe numberand intensity Our

The cost ofperforming



Change intemperatureextremes

ofheatwavesand very hotdays canprovide anopportunityto driveinnovationin ourproductdesign andprocurementprocess.

Newproducts/businessservices


Developmentof uniqueproducts withhigh demandcan increasesales andbuildcustomerloyalty.

Merchandisingteams conductregularproduct rangereviews, whichtakes intoconsiderationchanges incustomerbehaviour andclimate.

product rangereviews isresourcerelated andhave beenembedded inthe baseresourcingcost for theMerchandisingfunctions forall divisions.

Change inprecipitationextremesanddroughts

Theincreasingfrequency ofdrought andreducedrainfallposeschallengesto watersupply,which canincrease thedemand ofsomeproductcategories,such aswater tanks,watercontainersand portableshowers tocustomersandemergencyservices.

Increaseddemand forexistingproducts/services


Higherdemand islikely toincrease thenumber ofsales andcustomers instores.

OurMerchandisingteams conductregularproduct rangereviews, whichtakes intoconsiderationchanges incustomerbehaviour andclimate. OurCommercialdivisioncontinue towork withsuppliers todeliversolutions tocorporatecustomers andemergencyservicesduringemergencyand disastersituations.

The cost ofperformingproduct rangereviews isresourcerelated andhave beenembedded inthe baseresourcingcost for theMerchandisingfunctions forall divisions.

CC6.1cPlease describe the inherent opportunities that are driven by changes in other climaterelated developments

Opportunitydriver

Description Potential

impactTimeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Reputation

The Grouphasmandatoryobligationsunder theNGERscheme andhas madevoluntarycommitmentsto reduce itsenvironmentalimpacts.Thoseobligationsandcommitmentsare seen asan opportunityto addressclimatechange andexplore newopportunitiesto reducecosts,differentiateproducts, andwork with ourtrade partnersandcustomers.

Increasedstockprice(marketvaluation)


medium

Increase inthe Group'sand its brandsreputation canincreasesales andshare value,leading tofurtherbusinessgrowth.

The Grouphas adedicatedSustainabilityManager thatisresponsiblefor drivingsustainabilityinitiatives,meetingmandatoryreportingobligationsandpreparingvoluntarydisclosures.In FY 15 theGroup wasrecognizedby theAustralianPackagingCovenant asa highperformingsignatory.

The cost ofmanaging theGroup'sSustainabilityStrategy isresourcerelated andhave beenembedded inthe baseresourcingcost for theSustainabilityfunction.

The Groupcontinues todevelopstrategies andproducts toencourageour customersto do actionsto saveenergy, avoid

Encouragingpeople to doactions tosave energy,

The Group'sbrandsreview



Changingconsumerbehaviour

waste andrecycle. Forexample:SCA, BCF &Rays offer arange of solarpoweredcampingproducts. SCAstores collectused carbatteries andautomotive oilfromcustomers forrecycling. Ourproducts arepackagedwith minimummaterials toassist wastereduction. Ourpackagingalso includethe recyclingsymbol(whereapplicable) toencouragecorrectdisposal.

Widersocialbenefits

Up to 1year Direct Very likely Low

medium

avoid wasteor recycle allhave positiveenvironmentaland financialoutcomes tothecommunity.For example:Less wastemeans lessdisposal costsand lesswaste tolandfills. Lessenergy meanslowerelectricity billsand lowerresourceusage leadingto lowercarbonemissions.

continue toreview theirbusinessstrategies toensure thatour productsand servicesencouragepositivecustomerbehaviour.The Group isalso asignatory oftheAustralianPackagingCovenant(APC) andhave madecommitmentsto reduce itsimpact in theenvironment.

The cost ofmanaging theGroup'sbrandsstrategies isresourcerelated andhave beenembedded inthe baseresourcingcost for theMerchandisingfunctions forall divisions.

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1Please provide your base year and base year emissions (Scopes 1 and 2)

Scope Base year Base year emissions (metric tonnes CO2e)Scope 1 Thu 01 Jul 2010 Thu 30 Jun 2011 648Scope 2 (locationbased) Thu 01 Jul 2010 Thu 30 Jun 2011 55930Scope 2 (marketbased)

CC7.2Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you useAustralia National Greenhouse and Energy Reporting ActNew Zealand Guidance for Voluntary, Corporate Greenhouse Gas Reporting

CC7.2aIf you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data andcalculate Scope 1 and Scope 2 emissions

CC7.3Please give the source for the global warming potentials you have used

Gas ReferenceCO2 Other: National Greenhouse Accounts (NGA) FactorsCH4 Other: National Greenhouse Accounts (NGA) FactorsN2O Other: National Greenhouse Accounts (NGA) Factors

CC7.4Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom ofthis page

Fuel/Material/Energy EmissionFactor Unit Reference

Electricity 0.165 Other: kg CO2 perkWh New Zealand Guidance for Voluntary, Corporate Greenhouse Gas Reporting

Electricity 0.86 Other: kg CO2 perkWh

Australia (NSW & ACT) National Greenhouse and Energy Reporting(Measurement) Determination


Australia (VIC) National Greenhouse and Energy Reporting (Measurement)Determination


Australia (TAS) National Greenhouse and Energy Reporting (Measurement)Determination

Electricity 0.81 Other: kg CO2 per Australia (QLD) National Greenhouse and Energy Reporting (Measurement)



kWh Determination


Australia (WA) National Greenhouse and Energy Reporting (Measurement)Determination


Australia (NT) National Greenhouse and Energy Reporting (Measurement)Determination


Australia (SA) National Greenhouse and Energy Reporting (Measurement)Determination

Further Information

Page: CC8. Emissions Data (1 Jul 2014 30 Jun 2015)

CC8.1Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Operational control

CC8.2Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

894

CC8.3Does your company have any operations in markets providing product or supplier specific data in the form of contractual instruments?

No

CC8.3aPlease provide your gross global Scope 2 emissions figures in metric tonnes CO2e

Scope 2, locationbased Scope 2, marketbased (if applicable) Comment83004

CC8.4Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selectedreporting boundary which are not included in your disclosure?

No

CC8.5Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources ofuncertainty in your data gathering, handling and calculations

Scope Uncertaintyrange

Mainsources ofuncertainty

Please expand on the uncertainty in your data

Scope 1 Less than orequal to 2%

Metering/MeasurementConstraints

Note:Amendments to regulations 4.08 and 4.17A of the NGER Regulations introduced a newthreshold for uncertainty (25 kt CO2e or more in a reporting year). Our scope 1 emissions duringthe reporting period was below the threshold (0.89 kt CO2e).


Less than orequal to 2%

AssumptionsMetering/MeasurementConstraints

Scope 2 emissions calculations are based on electricity invoices for each site/facility. Where datawas not available (i.e. bill hasn’t been received) assumptions were calculated as follows:Assumption 1 – Average (6 or + months data) Assumption 2 – Average + 5% (less than 6 months)Assumption 3 – Based on similar site size & climate zone

Scope 2(marketbased)

N/A

CC8.6Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

No third party verification or assurance

CC8.7Please indicate the verification/assurance status that applies to at least one of your reported Scope 2 emissions figures


CC8.8Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissionsfigures reported in CC8.6, CC8.7 and CC14.2

Additional data points verified CommentNo additional data verified

CC8.9Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?



No

Further Information

The Group engaged a third party to verify its data in FYs 11 & 12 and since then developed its own verification process (inhouse) based on thelessons learned from the previous auditing process. Our Sustainability Manager liaises with a third party Environment, Energy and CarbonServices Consultant on a regular basis to ensure that our verification process is still appropriate an in line with NGER requirements.

Page: CC9. Scope 1 Emissions Breakdown (1 Jul 2014 30 Jun 2015)

CC9.1Do you have Scope 1 emissions sources in more than one country?

Yes

CC9.1aPlease break down your total gross global Scope 1 emissions by country/region

Country/Region Scope 1 metric tonnes CO2e

Australia 894

CC9.2Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By GHG type

CC9.2cPlease break down your total gross global Scope 1 emissions by GHG type

GHG type Scope 1 emissions (metric tonnes CO2e)CO2 889CH4 0N2O 5

Further Information

Scope 1 emissions data for NZ not available, however it relates to 11 fully maintained cars.

Page: CC10. Scope 2 Emissions Breakdown (1 Jul 2014 30 Jun 2015)

CC10.1Do you have Scope 2 emissions sources in more than one country?

Yes

CC10.1aPlease break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/RegionScope 2, locationbased (metrictonnes CO2e)

Scope 2, marketbased (metrictonnes CO2e)

Purchased and consumedelectricity, heat, steam or

cooling (MWh)

Purchased and consumed low carbonelectricity, heat, steam or cooling accounted in

marketbased approach (MWh)Australia 83004 94594 0New Zealand 635 3846 0China

CC10.2Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By business divisionBy facility

CC10.2aPlease break down your total gross global Scope 2 emissions by business division

Businessdivision

Scope 2 emissions, location based (metric tonnesCO2e) Scope 2 emissions, marketbased (metric tonnes CO2e)

CC10.2bPlease break down your total gross global Scope 2 emissions by facility

Facility Scope 2 emissions, location based (metric tonnes CO2e) Scope 2 emissions, marketbased (metric tonnes CO2e)

Further Information

Purchased electricity consumed by the Group in China is minor (2 small offices/ 96 team members). For a break down of our Scope 2 emissionsby business division and facility, please refer to the attached report.

Attachments



https://www.cdp.net/sites/2016/50/44950/Climate Change 2016/SharedDocuments/Attachments/ClimateChange2016/CC10.Scope2EmissionsBreakdown(1Jul201430Jun2015)/FINAL NGER Report FY15.pdf

Page: CC11. Energy

CC11.1What percentage of your total operational spend in the reporting year was on energy?

More than 0% but less than or equal to 5%

CC11.2Please state how much heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type Energy purchased and consumed (MWh)Heat 0.5Steam 0Cooling 0

CC11.3Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year

353653

CC11.3aPlease complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels MWhDiesel/Gas oil 2077Motor gasoline 1549Other: Ethanol 17Natural gas 0.5

CC11.4Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the marketbasedScope 2 figure reported in CC8.3a

Basis for applying a low carbon emission factor MWh consumed associated with low carbonelectricity, heat, steam or cooling Comment

No purchases or generation of low carbon electricity, heat, steam or coolingaccounted with a low carbon emissions factor

CC11.5Please report how much electricity you produce in MWh, and how much electricity you consume in MWh

Total electricityconsumed(MWh)

Consumed electricitythat is purchased

(MWh)

Total electricityproduced(MWh)

Total renewableelectricity produced

(MWh)

Consumed renewable electricitythat is produced by company

(MWh) Comment

94594 0 0 0 0

Further Information

Page: CC12. Emissions Performance

CC12.1How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Increased

CC12.1aPlease identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissionscompare to the previous year

ReasonEmissions

value(percentage)

Directionof

changePlease explain and include calculation

Emissionsreductionactivities

5 Decrease

Due to emission reduction activities (behaviour and structural) implemented during the year,mainly for our electricity consumption. Despite an increase of 1% in the number of sites,emissions have not grown as high as could be expected. Last year 4191 tCO2 were reduced byour emissions reduction activities, and our total Scope 1 and Scope 2 emissions in the previousyear was 82053 tCO2, therefore we arrived at 5% through (4191/ 82053)*100= 5%.

DivestmentAcquisitionsMergersChange inoutputChange inmethodology

https://www.cdp.net/sites/2016/50/44950/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC10.Scope2EmissionsBreakdown(1Jul2014-30Jun2015)/FINAL%20NGER%20Report%20FY15.pdf



Change inboundary

1 Increase Increase in Scope 2 arising from organic growth. The Group increased the number of stores from604 to 613 during the year (1.5% increase).

Change inphysicaloperatingconditionsUnidentifiedOther

CC12.1bIs your emissions performance calculations in CC12.1 and CC12.1a based on a locationbased Scope 2 emissions figure or a marketbased Scope 2emissions figure?

Locationbased

CC12.2Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensityfigure =

Metric numerator (Grossglobal combined Scope 1

and 2 emissions)

Metricdenominator:Unit totalrevenue

Scope 2figureused

% changefrom

previousyear

Direction ofchange frompreviousyear

Reason for change

26.68 metric tonnes CO2e 2238700000 Locationbased 3.7 Increase

The Group continued to grow the numberof sites (by 1.5%) and sales revenue (by6%) during the reporting year.

CC12.3Please provide any additional intensity (normalized) metrics that are appropriate to your business operations

Intensityfigure =

Metricnumerator (Grossglobal combinedScope 1 and 2emissions)

Metricdenominator

Metricdenominator:Unit total

Scope 2figureused

%changefrom

previousyear

Directionof

changefrom

previousyear

Reason for change

136.86 metric tonnesCO2e

Other:Number ofsites

613 Locationbased 1.5 Increase

Two reasons: 1. Increase of floor spaceat some sites. For example: new supportoffice in Sydney and new DC inLawnton. 2. Some of the sites weretrading for a shorter period of time inFY14 than in FY15. For example: Sydney DC had 8 months consumptionrecorded in FY14 vs 12 months recordedin FY15. Like for like (LFL) comparisonshows 5% reduction in averageconsumption per site. Workout Worldhad 7 months data for most stores inFY14 vs full data in FY15. LFLcomparison shows 11% reduction inaverage consumption per store. LFLcomparison shows a Group reduction of1% in average consumption per site.

Further Information

Page: CC13. Emissions Trading

CC13.1Do you participate in any emissions trading schemes?

No, and we do not currently anticipate doing so in the next 2 years

CC13.2Has your organization originated any projectbased carbon credits or purchased any within the reporting period?

No

Further Information

Page: CC14. Scope 3 Emissions

CC14.1Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of metric

Percentageof

emissionscalculatedusing data



Scope 3emissions

Evaluationstatus

tonnesCO2e

Emissions calculation methodology obtainedfrom

suppliersor valuechain

partners

Explanation

Purchasedgoods andservices

Notrelevant,explanationprovided

0 N/A 0.00%

The Group is a retailerbusiness and has noproduction/ manufacturingprocesses.

Capitalgoods


0 N/A 0.00%

Emissions related to theGroup's capital goods (suchas fully maintained cars, ISequipment and forklifts) arealready accounted for in ourScope 1 and 2 emissions.

Fuelandenergyrelatedactivities (notincluded inScope 1 or 2)


0 N/A 0.00%

Emissions related to vehiclefuels, purchased and used bythe Group's team members inthe reporting period arealready accounted for in ourScope 1 and 2 emissions.

Upstreamtransportationanddistribution

Relevant,not yetcalculated

0 0.00%

Wastegenerated inoperations

Relevant,calculated 6086

Australia: Method 1, Emissions of methane releasedfrom landfills (National Greenhouse and EnergyReporting (Measurement) Determination 2008). Notes: Default climate conditions have been selected foreach State / Territory. Greenhouse gas emissions areattributable only to landfill activities. New Zealand:Methodology used is the default methodologycontained in "A guide to landfill methane in the NewZealand Emissions Trading Scheme, Ministry of theEnvironment". Greenhouse gas emissions areattributable only to landfill activities.

100.00%

Emissions related to wastegenerated in our supportoffices, Distribution Centresand stores in Australia andNZ based on informationsupplied by our wasteprovider.

Businesstravel

Relevant,calculated 5364 National Greenhouse and Energy Reporting

(Measurement) Determination 2008 (Australia). 100.00%

Emissions related to roadand air travel emissionsbased on informationsupplied by our travelmanagement provider.

Employeecommuting


0 0.00%

Upstreamleased assets


0 0.00%

Emissions related to leasedassets, such as stores,Distribution Centres andoffices are already accountedfor in our Scope 1 and 2emissions.

Downstreamtransportationanddistribution


0 0.00%

Processing ofsold products


0 0.00%

Use of soldproducts


0 0.00%

End of lifetreatment ofsold products


0 0.00%

We currently offer automotiveoil and battery recycling atSCA stores in Australia andNZ. The number of usedbatteries and volume of usedoil disposed by customersare recorded by our tradepartners and reports areprovided to the Groupmonthly. Emissions have notbeen calculated as yet due tothe complexity to calculatethose emissions.

Downstreamleased assets


0 0.00% The Group does not havedownstream leased assets.

Franchises


0 0.00% The Group does not operateunder franchise agreements.

Investments Notevaluated 0 0.00%

The Group has investmentsin two online businesses(You camp and Fixed Price).Scope 3 emissions for thoseinvestments has not been



evaluated investments has not beenevaluated as yet but weanticipate that they areminimal.

Other(upstream)Other(downstream)

CC14.2Please indicate the verification/assurance status that applies to your reported Scope 3 emissions


CC14.3Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

Yes

CC14.3aPlease identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources ofScope 3emissions

Reason forchange

Emissionsvalue

(percentage)

Directionof

changeComment

Wastegenerated inoperations

Change inboundary 20.78 Increase

There was a yearonyear increase in generation of waste due to organic growthand stores, DCs & support office activities such as refurbishments, relocations,openings and closures.

Businesstravel

Emissionsreductionactivities

5.71 Decrease The reduction of emissions from this source is due to the optimization of travel andthe use of alternative technologies such as web conferences.

CC14.4Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our suppliersYes, our customersYes, other partners in the value chain

CC14.4aPlease give details of methods of engagement, your strategy for prioritizing engagement and measures of success

The Group engage with its suppliers and customers in a number of ways, including:Suppliers:1. Policy & communication of environmental requirements:Our Ethical Sourcing Policy was developed in 2009, as most of our housebranded products are sourced from overseas suppliers. The policyoutlines the Group's environmental requirements, including the use of recycled materials and compliance with regulatory requirements. Thispolicy is reviewed and updated on an annual basis. Our General Business Agreement requires compliance with our Ethical Sourcing Policy.2. Collaboration:Our team in China works closely with our suppliers to ensure that they meet our environmental requirements. For example: As part of thesourcing process, our Packaging team liaises with the factories on a regular basis and performs packaging assessments for new products. Anaudit program is also in place to monitor compliance with our requirements.Customers:We engage with our customers via annual reports; providing sustainability information on our website; satisfaction surveys; media releases,customer service centre and social media. We also provide oil & battery recycling options to our customers in selected SCA stores.

CC14.4bTo give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spendthat they represent

Number ofsuppliers

% of total spend (direct andindirect) Comment

215 100% Number of Overseas suppliers *Please see note 1 in the further informationsection.

CC14.4cIf you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data

How youmake useof thedata

Please give details

We do nothave anydata

Our business agreements with trade partners supplying merchandising to the Group's brands require compliance withenvironmental standards and regulations, but does not require the provision of GHG data to the Group. Previous attempts tocollect packaging data from suppliers were unsuccessful due to the complexity of our supply chain.

Further Information

Notes: 1. Engagement with other suppliers in the supply chain includes formal and informal regular meetings.

Module: Sign Off



Page: CC15. Sign Off

CC15.1Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name Job title Corresponding job categoryPeter Birtles Group Managing Director Board/Executive board

Further Information

CDP: [D][,][D2]