News

Full Disclosure

BY Connie Robbins Gentry

As the spotlight continues to focus on companies that are reducing their carbon footprints, the value of taking a corporate stance on sustainability is being widely acknowledged by retail executives and shareholders alike. Currently, 85% of U.S. consumer business companies have active sustainability initiatives, according to a study by Deloitte Consulting, with recycling and energy-conservation programs most common. Nearly 2,000 companies, including many retailers, release sustainability reports that disclose information about their environmental, social and governance performance.

At the same time, pressure is growing on those companies that do not disclose information. Dillard’s reported in its September SEC filing that nearly half of its shareholders had endorsed a resolution urging the company to issue a sustainability report.

A total of 42 climate-related shareholder resolutions were filed with U.S. companies as part of the 2007 proxy season, the highest number of resolutions ever, according to Ceres, Boston, a national network of investors, environmental organizations and other public interest groups working with companies and investors to address sustainability. This past spring, in response to shareholder requests, Costco Wholesale Corp. agreed to significantly expand reporting and disclosure on energy efficiency and climate change-related topics.

Similarly, retailers that have achieved success with sustainable initiatives are eager to make their accomplishments known. Office Depot, Delray Beach, Fla., recently touted that it had lowered its carbon-dioxide emissions 10.1% in 2006, while simultaneously adding 1.7 million sq. ft. to its North American portfolio (see story on page 45).

CCA Global Partners, with annual sales topping $10.2 billion, and dual headquarters in Manchester, N.H., and St. Louis, embraced environmental stew-ardship in its recently released 2006 annual report. In the coming year, CCA Global, which operates some 3,600 flooring stores, pledged “a passionate commitment to bettering our environment by our own actions and through our relationships with our member community, suppliers and employees.”

Greenspeak: Carbon Footprint, Carbon Offset

Carbon footprint is a measure of the impact human activities have on the environment in terms of the amount of greenhouse gases produced. The quantity is usually measured in units of carbon dioxide (per year). Carbon offset is the process of balancing a unit of carbon-dioxide emissions with a product that saves or stores an equivalent amount of CO2.

Not to be outdone, the world’s largest retailer has become one of the largest retail advocates for sustainable practices. (See related stories on pages 28 and 110.)

This month, Wal-Mart Canada (Mississauga, Ontario) will introduce a Supply Chain Sustainability Scorecard to “footprint” (assess) its logistics service providers on the basis of environmental impacts, efforts and improvements.

“Retailers need to take responsibility for their entire global carbon footprint, including their suppliers’ impacts,” agreed Mark Armitage, president of The Carbon Neutral Co.-United States (CNC). The CNC, based in London, has been helping corporations and global brands understand and take action on their carbon footprints for 10 years. In August, the company opened offices in New York City and San Francisco.

The factors that drive a corporation to adopt a carbon-neutral strategy can vary from one company to the next.

“If this is a cost-driven exercise, then the CFO is typically champion of the issue,” explained Armitage. “If it is brand-driven or a response to customer perception, then the chief marketing officer may be the leader. However, if it is an issue with investors or shareholders, then likely it is the CEO who takes up the mantle.”

Regardless of who leads the charge, everyone is eager to translate the benefits into dollars. When it announced its Sustainability Scorecard, Wal-Mart Canada also shared the results of a sustainability pilot it had initiated in July 2006.

The company changed the mode of transportation for 10 stores from road to rail, which resulted in a reduction in carbon emissions of 2,600 tons. Additionally, 20 truck generators were converted to electric power, saving 40,000 liters of fuel. Wal-Mart Canada predicted the combined impact of these two initiatives would result in annual savings of more than $2 million.

Wal-Mart Canada also converted some of its shipping crates from cardboard to plastic, which saved $4.5 million and yielded an expected waste reduction of more than 1,400 tons as well as related carbon-emissions reductions of 10,000 tons due to the elimination of cardboard production.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
News

Winn-Dixie team honored for turnaround

BY CSA STAFF

JACKSONVILLE, Fla. The team that lead Winn-Dixie Stores’ successful turnaround initiative is being honored by the Turnaround Management Association for the best ‘Mega Company Turnaround’ for 2007. Comprised of financial experts from The Blackstone Group, Skadden, Arps, Slate, Meagher & Flom and Smith Hulsey & Busey, the team helped Winn-Dixie regain the market share and profits it started to lose in the mid 1990s and early 2000s to competitors Publix and Wal-Mart.

Winn-Dixie filed for Chapter 11 bankruptcy in early 2005 after reporting  year-to-date losses of $552.8 million or $3.93 per share of common stock and a decline of 4.9% in identical-store sales in its second fiscal quarter over the same period in 2004.

 

Despite the difficulty of achieving a succesful turnaround, Winn-Dixie began its reorganization effort, while still continuing to operate its core business and preserving jobs. According to the Turnaround Management Association, it created new common stock for five classes of unsecured creditors, with recoveries ranging from about 96% to 53%. The company emerged from bankruptcy on Nov. 21, 2006.

For its fiscal year ended June 27, Winn-Dixie reported adjusted EBITDA of  $85.9 million compared to a loss of $27.8 million last year and an identical-store sales increase of 1.6% 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
News

Sears ends deal with maternity retailer

BY CSA STAFF

PHILADELPHIA Sears and Mothers Work, the world’s leading maternity apparel retailer, will not be renewing their agreement, Mothers Work announced today. Under their current agreement, Mothers Works operates the maternity apparel department in 502 Sears stores through the sale of its Two Hearts Maternity branded merchandise.

Mothers Work said it expects its partnership with Sears to end on June 20, 2008, when it current deal with the company is expected to expire.

Rebecca Matthias, president and ceo of Mothers Work, noted, “While we are disappointed about the end of our relationship with Sears, we feel the decision not to proceed with a renewal is in the best interest of our stockholders since we were unable to reach terms on a renewal which would be favorable for Mothers Work and our stockholders. “

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...