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matrix is shown in figure 1 below. In this matrix, the size of the bubbles on the KPI represents the performance of the Woolworths Group in regards to different environmental and social initiatives.
WOOLWORTHS GROUP SUSTAINABILITY12Figure 1: Woolworths Materiality Matrix (Sustainability Report 2018)4.1.Environmental Initiatives 4.1.1.Food WasteAccording to figure 1, the KPI representing waste and packaging is somehow bigger, which indicates that Woolworths Group performance in terms of reduction of food waste has been very good. According to the 2018 sustainability report, Countdown has continued to focus its attentionon reduction of food waste across Woolworths’ business and is objectified at helping the company reduce the 13,000 tons of waste that find its way on Australian landfills mainly due to loss of stock initiative (Sustainability Report 2018). Effective farmers’ diversion programs and effective food rescue programs are used to help prevent food waste and disposal on landfills. TheAustralian Institute of Health and Welfare (2012) has also commended Woolworths Group programs to reduce food waste and prevent food from being disposed on landfills. Woolworth's significant performance regarding this initiative helps the company improve its reputation, as well as how government and environmental agencies view its business practices. 4.1.2.Efficient Energy Woolworths Group’s performance regarding the use of efficient energy through the installation ofsolar panels and other renewable energy sources is not represented in figure 1. However, considering the company has only installed solar panels in one of its stores clearly shows that thecompany is still at its infant stage as far as efficient energy is concerned. Woolworths’ performance regarding the use of efficient energy can also be explained through climate risk KPI. The bubble for climate risk, which can be found in figure 1 at the fur end is significantly big, which indicates that Woolworths’ performance regarding efficient energy use is highly commended. This shows that, while Woolworths group continue to rely on sources of energy thatare produced using fossil fuel materials, the company is taking significant steps towards the use
WOOLWORTHS GROUP SUSTAINABILITY13of renewable energy sources, which are friendly to the climate. Similar to food waste, Woolworths’ performance in this initiative helps the company improve create a good relationshipwith government and environmental agencies, which are likely to affect the company’s position in the market. 4.1.3.Sustainable Sourcing of SeafoodSustainable sourcing is well represented in figure 1 by two KPIs: responsible gaming and responsible sourcing and human rights bubbles. Responsible gaming bubble is significantly small, which is an indicator that Woolworths Group has not been performing well in terms of preventing the sourcing of illegal seafood. While 70% of Australians continue to depend on fish and seafood products, Woolworths Group partnership with organizations that protect the marine environment, attendance to annual Marine Stewardship Council’s Sustainable Seafood Week