“Circular business models have already demonstrated tremendous potential for increasing efficiency and profitability while reducing the environmental costs to the planet… our community has a responsibility to not only embrace this change but to champion it.”
– ARA CEO Paul Zahra in his opening remarks at the annual ARA Sustainability Breakfast on Wednesday, 7 August.
The sold-out event brought together a diverse group of experts and industry leaders to discuss innovative solutions and strategies for addressing some of the retail sector’s most pressing challenges.
Circular economy pioneer Yas Grigaliunas, Founder and Director of Circonomy, inspired the audience by sharing her professional journey from her beginnings at World’s Biggest Garage Sale, to today’s multi-million-dollar national circular business, which has grown exponentially over the last ten years.
“When your why is big enough, you figure out your how,” said Yas, encouraging retailers to act quickly as “we don’t have the time to waste”.
Sustainability in retail is increasingly at the forefront of industry transformation, driven by growing consumer awareness and a heightened focus on environmental impact. Led by Yas, Circonomy aims to transform the supply chain into a “surprise chain” by focusing on repairing and reworking pre-loved materials and products to reduce waste and make sure their lifecycle is extended. This circular economy business model focuses on how unlocking dormant goods can be used for good is supported by sustainable procurement, product renewal, waste reduction and community engagement.
Yas concluded her keynote with a simple yet powerful message: “don’t let perfect get in the way of progress on your circular journey”.
Hosted by Fleur Brown, ARA’s Chief Industry Affairs Officer, our expert panel then shared their insights and practical examples of impactful Circular Economy collaboration, value alignment, data utilisation, transparency and the perspective of waste as a resource from a retailer and partner perspective.
Key theme 1: Customer focus
Unlike the conventional “take-make-dispose” approach, the circular economy emphasises reusing, recycling, and regenerating resources to extend the lifecycle of products and minimise waste.
Natalie Uren, Sustainability Manager at Myer highlighted many initiatives the business has underway, including embedding redesign, reuse, recycle principles in their materials and products, and emphasised that, “involving customers will no doubt help improve sustainability outcomes.”
Renea Robson, Sustainability Manager at IKEA Australia, highlighted the company’s purpose is to create a better everyday life for the many. In the context of the current cost of living crisis, there is a focus on keeping prices low but also offering solutions for customers to buy sustainable products and love their product longer. She said, “it’s not just about the products, it’s the way we care about people and the planet.”
Key theme 2: Data, compliance and collaboration
Compliance in retail sustainability involves adhering to a range of regulations and standards designed to promote environmentally and socially responsible practices underscored by the need for and use of better data.
We heard from Loreto Gutierrez, Principal Solution Engineer at Salesforce, who shed light on the way retailers must be thinking about how their operations align with legal requirements regarding corporate impact tracking as we head toward a net-zero economy, reminding the audience that, “Australia is about to mandate climate reporting, and how they embed sustainability in the business.”
Leveraging technology and data analytics can streamline compliance processes, reduce manual workload, and identify areas for improvement. Building partnerships with suppliers and stakeholders can also enhance sustainability efforts, while also allowing transparent and enhanced educational engagement with consumers.
Collaboration emerged as a key theme across our panellists:
“Educate where you can, but collaborate… we cannot do it alone, lean in on your membership. Use the resources that are available to you and don’t think you have to be the expert on everything.”
– Renea Robson, Sustainability Manager, IKEA Australia.
“Look for value alignment, and look up and down the supply chain, and where can you do something, make a start and it will grow.”
– Richard Pittard, Chief Sustainability Officer, Australia Post.
“Lean into your team and leaders, and technology partnerships to help you get there.”
– Loreto Gutierrez, Principal Solution Engineer, Salesforce.
“Cross sector collaboration to get better outcomes.”
– Natalie Uren, Sustainability Manager, Myer.
Key theme 3: Visibility and storytelling
Increasing the visibility of sustainable products plays a crucial role in promoting the circular economy by guiding consumer behaviour and driving market demand.
Richard Pittard, Chief Sustainability Officer at Australia Post, highlighted that “when sustainable products are prominently featured and easily identifiable, they not only educate consumers about the environmental benefits but also create a clear pathway for adopting circular practices.”
—
In his closing remarks, ARA CEO Paul Zahra recapped the key themes presented by our expert speakers during breakfast but finished with a pivotal message for the sector, “we need to view waste as a resource and recognise it as a significant opportunity for growth and innovation.”
