1 00:00:06,080 --> 00:00:08,320 Speaker 1: Welcome to Fearing Breed Q and A, where we ask 2 00:00:08,360 --> 00:00:12,200 Speaker 1: and answer questions about business, investing, economics, politics and more. 3 00:00:12,240 --> 00:00:14,960 Speaker 1: I'm suan Alma. Coles is doing pretty well in the 4 00:00:15,000 --> 00:00:17,560 Speaker 1: battle of the grocery giants right now. When it reported 5 00:00:17,600 --> 00:00:19,880 Speaker 1: its full year results in August, sales were up, profit 6 00:00:19,960 --> 00:00:22,520 Speaker 1: was up, and agained to write greater slice of the 7 00:00:22,800 --> 00:00:26,239 Speaker 1: very competitive market. But that doesn't tell the whole story. 8 00:00:26,640 --> 00:00:29,000 Speaker 1: Behind the scenes, there's an enormous amount of work being 9 00:00:29,040 --> 00:00:32,320 Speaker 1: done on sustainability and at the heart of that strategy 10 00:00:32,680 --> 00:00:36,280 Speaker 1: is commitment to driving Australia's circular economy. That's why Coles 11 00:00:36,360 --> 00:00:38,800 Speaker 1: was his sponsor of the Innovation Zone at this year's 12 00:00:38,840 --> 00:00:43,280 Speaker 1: Region Australia's Circular Resources Expo REGEN was held in July 13 00:00:43,640 --> 00:00:47,479 Speaker 1: at the International Convention Center in Sydney, where more than 14 00:00:47,520 --> 00:00:50,239 Speaker 1: two and a half thousand attendees came together with industry, 15 00:00:50,280 --> 00:00:54,080 Speaker 1: government and innovators to fast track Australia's transition to a 16 00:00:54,120 --> 00:00:57,920 Speaker 1: circular economy. And it's happening again next year too. Today, though, 17 00:00:58,000 --> 00:01:00,600 Speaker 1: I wanted to focus on Cole's and exactly how a 18 00:01:00,640 --> 00:01:05,360 Speaker 1: supermarket giant balances the need for sustainability with smart business Decisions. 19 00:01:05,640 --> 00:01:09,720 Speaker 1: Brook Dunnley is the general Manager Sustainability for Cole's Group. Brook. 20 00:01:09,840 --> 00:01:10,920 Speaker 1: Welcome to Fear and Greed. 21 00:01:11,280 --> 00:01:13,319 Speaker 2: Hi, Sean, thank you very much for having me along. 22 00:01:14,040 --> 00:01:16,920 Speaker 1: Can we start with a big picture. A place like 23 00:01:17,040 --> 00:01:21,039 Speaker 1: Coal's must have a very big role in building the 24 00:01:21,080 --> 00:01:27,120 Speaker 1: circular economy for Australia because the amount of products it retails. 25 00:01:26,800 --> 00:01:28,480 Speaker 2: It does, it does. I mean, it's one of the 26 00:01:28,480 --> 00:01:31,600 Speaker 2: great things about my job here at Coles is you know, 27 00:01:32,120 --> 00:01:34,240 Speaker 2: you can move this boat and into and it's like 28 00:01:34,360 --> 00:01:36,960 Speaker 2: moving in a mile with some other pieces of work 29 00:01:37,000 --> 00:01:40,800 Speaker 2: you do. But in that is also a fairly significant 30 00:01:41,400 --> 00:01:44,760 Speaker 2: responsibility to make sure that what we're doing is actually 31 00:01:45,120 --> 00:01:48,639 Speaker 2: managing the or minimizing if you like, the environmental impact 32 00:01:48,680 --> 00:01:50,560 Speaker 2: of the work that we do. And circularity is a 33 00:01:50,560 --> 00:01:54,320 Speaker 2: big focus for us, and we actually have a new 34 00:01:54,680 --> 00:01:58,760 Speaker 2: sustainability strategy out to twenty thirty now and we've got 35 00:01:58,760 --> 00:02:02,360 Speaker 2: three key pillars in that area, climate, nature and circularity. 36 00:02:02,800 --> 00:02:06,760 Speaker 2: And circularity is one of those three strategic pillars and 37 00:02:07,000 --> 00:02:10,080 Speaker 2: our ambition in that area is really to transition towards 38 00:02:10,080 --> 00:02:14,120 Speaker 2: the circular economy by materially reducing waste and we do 39 00:02:14,160 --> 00:02:18,200 Speaker 2: that through recycling reuse and product stewardship. We are really 40 00:02:18,240 --> 00:02:22,720 Speaker 2: focused on reducing waste across our value chain, especially doing 41 00:02:22,760 --> 00:02:26,720 Speaker 2: that in collaboration with our industry partners, our suppliers, producers 42 00:02:26,760 --> 00:02:30,800 Speaker 2: and our customers, and that all over kind of system 43 00:02:30,919 --> 00:02:34,080 Speaker 2: change and ecosystem that we're working with in really helps 44 00:02:34,080 --> 00:02:36,919 Speaker 2: to support the transition to a more circular economy. 45 00:02:37,520 --> 00:02:40,240 Speaker 1: Okay, can you perhaps break that down a little bit 46 00:02:40,240 --> 00:02:42,840 Speaker 1: and give us an example of one of the big 47 00:02:42,880 --> 00:02:46,200 Speaker 1: sustainability initiatives you've probably got going at the moment under 48 00:02:46,200 --> 00:02:47,760 Speaker 1: that circularity pillar. 49 00:02:48,400 --> 00:02:50,560 Speaker 2: Yeah. I think one of the ones that's always interesting 50 00:02:50,600 --> 00:02:54,920 Speaker 2: for people is packaging, and I think if we focus 51 00:02:54,960 --> 00:03:00,160 Speaker 2: even more strongly into the area around plastic packaging. We 52 00:03:00,240 --> 00:03:03,240 Speaker 2: have been working for some time now with our competitors 53 00:03:03,400 --> 00:03:07,560 Speaker 2: will Worsen, Audi and also a range of brand manufacturers, 54 00:03:07,600 --> 00:03:11,400 Speaker 2: so the likes of Mars and Nesley and mccormicks, et cetera. 55 00:03:11,960 --> 00:03:15,520 Speaker 2: And we have been working towards re establishing a soft 56 00:03:15,520 --> 00:03:20,320 Speaker 2: plastics program recycling program for Australia and so part of 57 00:03:20,360 --> 00:03:22,959 Speaker 2: that has been the creation of a not for profit 58 00:03:23,080 --> 00:03:28,359 Speaker 2: organization called Soft Plastic Stewardship Australia and that actual organization 59 00:03:28,919 --> 00:03:32,280 Speaker 2: is we're working with them to deliver a new program 60 00:03:32,360 --> 00:03:35,960 Speaker 2: not only for the retailers, but across the supply chain. 61 00:03:36,320 --> 00:03:39,400 Speaker 2: We have a lot of a lot of seft plastics 62 00:03:39,440 --> 00:03:42,480 Speaker 2: in out in the marketplace, but that's also know online 63 00:03:42,520 --> 00:03:45,960 Speaker 2: retailers furniture plastics. Is a whole lot of different places 64 00:03:45,960 --> 00:03:49,360 Speaker 2: where seft plastics come from, and so the actual stream 65 00:03:49,400 --> 00:03:52,200 Speaker 2: that makes up for retailers is only about twenty or 66 00:03:52,200 --> 00:03:55,840 Speaker 2: thirty percent. Seventy to eighty percent of the soft plastics 67 00:03:56,160 --> 00:03:58,680 Speaker 2: come from other sources across the stream. So it's really 68 00:03:58,680 --> 00:04:02,080 Speaker 2: important that we operate in the context of a product 69 00:04:02,080 --> 00:04:04,880 Speaker 2: stewardship organization and we have a central body that can 70 00:04:04,960 --> 00:04:07,640 Speaker 2: manage that for all the businesses in Australia that need 71 00:04:07,680 --> 00:04:10,640 Speaker 2: to contribute. So we've been working on that for quite 72 00:04:10,640 --> 00:04:11,280 Speaker 2: some time now. 73 00:04:11,480 --> 00:04:13,720 Speaker 1: Okay, I'm going to share my title ignorance now because 74 00:04:13,720 --> 00:04:16,200 Speaker 1: I would only ever use paper packs on the go 75 00:04:16,279 --> 00:04:19,480 Speaker 1: to coals. A soft plastic? Is it a soft plastic? 76 00:04:19,520 --> 00:04:20,080 Speaker 1: That's okay. 77 00:04:20,720 --> 00:04:24,000 Speaker 2: So soft plastics are actually a really important material. They're 78 00:04:24,120 --> 00:04:27,800 Speaker 2: used a lot for keeping food fresh and so there's 79 00:04:27,839 --> 00:04:31,040 Speaker 2: a functionality to soft plastic that's really important in terms 80 00:04:31,040 --> 00:04:35,920 Speaker 2: of how we actually package food and keeping food safe 81 00:04:35,920 --> 00:04:37,960 Speaker 2: and keeping it fresh for a longer period of time. 82 00:04:38,520 --> 00:04:41,359 Speaker 2: Plastic packaging is an issue in terms of how we 83 00:04:41,440 --> 00:04:43,279 Speaker 2: manage it at end of life and making sure that 84 00:04:43,279 --> 00:04:47,480 Speaker 2: we're actually reusing it and recycling wherever we can. But equally, 85 00:04:47,520 --> 00:04:50,640 Speaker 2: we have an even more significant problem with food waste 86 00:04:50,640 --> 00:04:52,840 Speaker 2: and making sure that we don't waste food. And so 87 00:04:52,880 --> 00:04:55,880 Speaker 2: the challenge for us is finding the balance between ensuring 88 00:04:55,960 --> 00:05:00,799 Speaker 2: that we're using packaging that maximizes the long etier food 89 00:05:01,080 --> 00:05:04,720 Speaker 2: but also has an end life purpose such as recycling 90 00:05:04,800 --> 00:05:06,440 Speaker 2: or reuse or refill, et cetera. 91 00:05:06,960 --> 00:05:11,600 Speaker 1: So often I wonder about food waste and how you 92 00:05:11,720 --> 00:05:16,200 Speaker 1: manage your supply chain to minimize food waste. Is a 93 00:05:16,200 --> 00:05:19,600 Speaker 1: lot of food wasted or not food is wasted. 94 00:05:19,839 --> 00:05:22,200 Speaker 2: There is a significant volume of food that is wasted 95 00:05:22,200 --> 00:05:25,960 Speaker 2: across the supply chain. It's approximately thirty percent of all 96 00:05:26,040 --> 00:05:29,839 Speaker 2: food that is created today will be wasted. That's a 97 00:05:29,880 --> 00:05:34,320 Speaker 2: global figure, and that really the major parts where that 98 00:05:34,360 --> 00:05:38,600 Speaker 2: really happens is back on farm and then also at 99 00:05:38,640 --> 00:05:41,880 Speaker 2: home with consumers. So in the middle of the chain, 100 00:05:41,880 --> 00:05:44,920 Speaker 2: in the manufacturing, in the retailers. We've actually got very 101 00:05:44,960 --> 00:05:48,919 Speaker 2: good over the over time at actually minimizing our waste, 102 00:05:48,960 --> 00:05:52,159 Speaker 2: and that's something that we actually have a hierarchy within 103 00:05:52,360 --> 00:05:54,359 Speaker 2: Coals of what we do with our food waste. So 104 00:05:54,760 --> 00:06:00,400 Speaker 2: we are one of Australia's largest contributors to food rescue organizeds. 105 00:06:00,440 --> 00:06:03,400 Speaker 2: We work with organizations. Our primary partner is Second Bite. 106 00:06:03,480 --> 00:06:07,240 Speaker 2: We also work with Food Bank and we do a 107 00:06:07,320 --> 00:06:10,640 Speaker 2: lot of food rescue, but we also then have a 108 00:06:10,680 --> 00:06:13,200 Speaker 2: series of other programs. So we have our Farmers program 109 00:06:13,279 --> 00:06:16,560 Speaker 2: where we work with farmers farmers to denote things like 110 00:06:16,720 --> 00:06:19,839 Speaker 2: bread and other products that can actually be reused for 111 00:06:20,000 --> 00:06:24,560 Speaker 2: animal feed. We also have a program a composting program 112 00:06:24,600 --> 00:06:28,000 Speaker 2: with our Soldier Flies where we can actually create composts 113 00:06:28,040 --> 00:06:30,240 Speaker 2: out of the materials that we make. So we have 114 00:06:30,320 --> 00:06:34,320 Speaker 2: a series of different levels of interventions that we take 115 00:06:34,640 --> 00:06:36,880 Speaker 2: to make sure that our food waste doesn't actually go 116 00:06:36,880 --> 00:06:39,800 Speaker 2: to land full and it's actually reused where we possibly can. 117 00:06:40,680 --> 00:06:43,560 Speaker 1: How, given coals as size, and there's probably only a 118 00:06:43,640 --> 00:06:47,280 Speaker 1: handful of people in the country organizations in the country 119 00:06:47,480 --> 00:06:51,920 Speaker 1: that has the power or the influence of Coals, how 120 00:06:51,960 --> 00:06:55,720 Speaker 1: can you use that to change supply behavior. When you've 121 00:06:55,720 --> 00:06:59,080 Speaker 1: talked about industry standards on soft plastics, is that a 122 00:06:59,160 --> 00:07:03,000 Speaker 1: big part of coal role, not just worrying about yourself, 123 00:07:03,040 --> 00:07:06,560 Speaker 1: but worrying about the economy generally, and you do have 124 00:07:06,640 --> 00:07:08,359 Speaker 1: ability to influence supplies. 125 00:07:09,000 --> 00:07:11,440 Speaker 2: Yeah, I think it's a really important element. I mean, 126 00:07:11,760 --> 00:07:14,160 Speaker 2: I think it's important to understand one what we can 127 00:07:14,280 --> 00:07:17,240 Speaker 2: legally do, and so you know, there's some very there's 128 00:07:17,280 --> 00:07:19,280 Speaker 2: a growthery code, and we have to operate within the 129 00:07:19,280 --> 00:07:22,120 Speaker 2: confines of that, which means, you know, we can't make 130 00:07:22,240 --> 00:07:25,640 Speaker 2: people do things, but we can certainly set the right tone, 131 00:07:25,680 --> 00:07:30,120 Speaker 2: the right approach, and work with our suppliers and others 132 00:07:30,160 --> 00:07:33,720 Speaker 2: to actually achieve really great sustainability outcomes. And I think 133 00:07:33,760 --> 00:07:37,280 Speaker 2: that that's the real opportunity. The opportunity is to lead 134 00:07:37,280 --> 00:07:39,280 Speaker 2: from the front, if you like, in terms of setting 135 00:07:39,280 --> 00:07:42,800 Speaker 2: the right direction, and part of that is being open 136 00:07:42,880 --> 00:07:46,840 Speaker 2: to working collaboratively like we have done on self plastics 137 00:07:47,640 --> 00:07:51,440 Speaker 2: to actually achieve a system change, because you're right, there 138 00:07:51,480 --> 00:07:54,920 Speaker 2: is coals can make a significant contribution, but coals on 139 00:07:54,960 --> 00:07:57,600 Speaker 2: their own cannot you know, fix the problem. And if 140 00:07:57,600 --> 00:07:59,640 Speaker 2: you look at self plastics as an example, if we're 141 00:07:59,640 --> 00:08:02,880 Speaker 2: twenty to thirty percent of the volume on market, then 142 00:08:02,920 --> 00:08:05,559 Speaker 2: that is a significant volume, but that still means seventy 143 00:08:05,640 --> 00:08:07,880 Speaker 2: to eighty percent of it is not being dealt with. 144 00:08:07,960 --> 00:08:10,200 Speaker 2: So it's not about just bringing one or two big 145 00:08:10,240 --> 00:08:12,480 Speaker 2: players on. You actually have to bring a really big 146 00:08:12,520 --> 00:08:16,600 Speaker 2: group of people across a lot of different sectors to 147 00:08:16,720 --> 00:08:18,480 Speaker 2: effectively deal with the issues. 148 00:08:19,440 --> 00:08:21,880 Speaker 1: I mean, the irony in that sense is that you 149 00:08:22,000 --> 00:08:26,160 Speaker 1: have some incredibly competitive a very competitive marketplace. Obviously they're 150 00:08:26,200 --> 00:08:29,640 Speaker 1: a very large competitor or a few large competitors. Yet 151 00:08:30,400 --> 00:08:32,920 Speaker 1: and the actual C has actually authorized this. You are 152 00:08:32,960 --> 00:08:36,199 Speaker 1: allowed to work together in some areas, soft plastics being 153 00:08:36,240 --> 00:08:38,920 Speaker 1: an example. It's kind of an irony how much you 154 00:08:38,960 --> 00:08:39,640 Speaker 1: do work together. 155 00:08:40,200 --> 00:08:42,439 Speaker 2: Yeah, and it's actually it's not something that hasn't come 156 00:08:42,480 --> 00:08:46,640 Speaker 2: with its own challenges in terms of establishing those relationships 157 00:08:46,679 --> 00:08:51,080 Speaker 2: and those working opportunities. And we've actually had to work 158 00:08:51,080 --> 00:08:55,400 Speaker 2: with the A Triple C to either authorize those unique opportunities. 159 00:08:55,720 --> 00:08:58,480 Speaker 2: But then we were very pleased to see about twelve 160 00:08:58,559 --> 00:09:01,360 Speaker 2: eighteen months ago now the A Triple C board out 161 00:09:01,720 --> 00:09:06,160 Speaker 2: a series of guidelines about sustainable collaborations, which actually enables 162 00:09:06,240 --> 00:09:08,680 Speaker 2: us to have the important initial conversations we need to 163 00:09:08,720 --> 00:09:12,920 Speaker 2: have to be able to progress these joined up and 164 00:09:12,960 --> 00:09:15,600 Speaker 2: scaled up solutions for sustainability in Australia. 165 00:09:16,280 --> 00:09:18,959 Speaker 1: Okay, what's the long term ambition for Coles five ten 166 00:09:19,080 --> 00:09:23,040 Speaker 1: years time? Most sustainable supermarket? I'm guessing, But what does 167 00:09:23,040 --> 00:09:23,600 Speaker 1: that look like? 168 00:09:24,520 --> 00:09:26,360 Speaker 2: Oh? Look, I don't think it's about being the most 169 00:09:26,400 --> 00:09:32,880 Speaker 2: sustainable supermarket. I think truly success in the sustainability field 170 00:09:33,040 --> 00:09:35,880 Speaker 2: is about working really well with each other. So I think, 171 00:09:36,000 --> 00:09:39,080 Speaker 2: you know, if we're all kind of reaching our climate 172 00:09:39,120 --> 00:09:43,080 Speaker 2: goals and our nature goals and our circularity goals together, 173 00:09:43,400 --> 00:09:47,000 Speaker 2: as you know austrained companies in an industry as a 174 00:09:47,040 --> 00:09:50,880 Speaker 2: sector rather than an organization, to me, that equal success. 175 00:09:51,559 --> 00:09:53,480 Speaker 2: When we think about things like a climate or a 176 00:09:53,480 --> 00:09:57,480 Speaker 2: circularity transition or a nature transition, it requires everybody to 177 00:09:57,480 --> 00:10:00,240 Speaker 2: step forward together at the same time and go down 178 00:10:00,280 --> 00:10:02,840 Speaker 2: the same pathway. And so I think true success is 179 00:10:02,880 --> 00:10:05,600 Speaker 2: about how you work well with others and that you 180 00:10:05,640 --> 00:10:10,560 Speaker 2: can collaboratively move towards those ambitious targets around sustainability. 181 00:10:10,720 --> 00:10:12,400 Speaker 1: Brook, thank you for talking to Fear and Greed. 182 00:10:12,679 --> 00:10:13,120 Speaker 2: Thank you. 183 00:10:13,640 --> 00:10:16,680 Speaker 1: That was Brook Dunley, general manager Sustainability for Cole's Group, 184 00:10:16,920 --> 00:10:20,320 Speaker 1: which sponsored the Innovation Zone at this year's Regen Expo. 185 00:10:20,480 --> 00:10:24,080 Speaker 1: Regen spans the full circular resource economy from design, reuse 186 00:10:24,080 --> 00:10:27,720 Speaker 1: and repair through your recovery and remanufacturing. It's happening again 187 00:10:27,800 --> 00:10:30,160 Speaker 1: next year, and if you'd like to be involved, head 188 00:10:30,200 --> 00:10:33,280 Speaker 1: to Regenexpo dot com dot au to get in touch 189 00:10:33,360 --> 00:10:35,680 Speaker 1: up to Lincoln, the show notes, I'm Sean Almer and 190 00:10:35,760 --> 00:10:37,400 Speaker 1: this is Fear and Greed Q and A