Kmart Group - Environment
Kmart Group is committed to achieving net zero Scope 1 and Scope 2 emissions by 2030 and 100 per cent renewable electricity by the end of calendar year 2025. During the year, Kmart Group’s Scope 1 and Scope 2 (market-based) emissions decreased by 15.4 per cent to 184.6 kilo tonnes CO2e due primarily to the commencement of a power purchase agreement in Queensland and a decrease in electricity emission factors, reflecting the increased contribution of renewable energy to grid electricity. While electricity use remained consistent in 2024, Kmart Group continued to take steps to improve energy efficiency by trialling more efficient lighting design and energy efficient options in stores, ahead of a wider roll-out of these measures in 2025.
This year, six rooftop solar systems were approved for installation, totalling 1,434 kW of generation capacity, bringing Kmart Group’s total rooftop solar generation to 2,451 kW. Kmart Group also executed contracts to secure 100 per cent renewable electricity across all New Zealand sites, commencing in 2025.
To improve its Scope 3 emissions inventory, Kmart Group collected supplier data for more than half of its suppliers (by units sold) in Category 1 over the last year, and plans to use this to understand emissions and energy sources in its supply chain. Building on this progress Kmart Group plans to develop a Scope 3 emissions reduction roadmap in 2025.
This year, Scope 3 emissions decreased by 1.0 per cent to 11,202,831 kilo tonnes CO2e, due to minor changes in the calculation of energy consumption of sold products and improved data around supply chain transport and employee commuting.
Waste diversion from Kmart Group stores and distribution centres was 82.1 per cent in 2024. Kmart has renegotiated its national waste contracts in 2024 and will roll out additional recycling services across the store network in 2025.
During the year, Kmart Group launched a new internal Sustainability Framework, identifying opportunities around sustainable materials and design. The division continues to support industry preferred materials across all apparel products, such as using organic, Australian or Better Cotton initiative certified cotton and recycled polyester. Kmart Group has committed that 50 per cent of the polyester used in its own-branded clothing and bedding ranges will be from recycled content in 2025. Kmart Group has transitioned approximately 25 per cent of the polyester used in these ranges to recycled materials and has a roadmap in place to take it to the completion of its commitment in 2025.
