Waste, packaging & plastics

A material part of this impact is its treatment of waste, packaging and plastics. This commitment is guided by its obligations as an Australian Packaging Covenant Organisation (APCO) signatory.

The Wesfarmers Health Environment Policy reflects the division’s desire to minimise its impact on the environment and it does so by applying circular economy strategies including sustainable packaging and improving its waste performance.

During the 2025 financial year, the business developed an APCO compliance roadmap designed to uplift its waste, packaging and plastics performance. The roadmap is operationalised through curated playbooks for two of Wesfarmers Health’s most significant business units.

• Wholesale business – The Wholesale playbook focuses on the elimination of problematic materials and improved waste management (more scrutiny of reported cardboard waste volumes at fulfilment centres), while also improving cost performance. One such initiative during the 2025 financial year was the market tender of waste management services at distribution centres which resulted in the appointment of new waste providers as the existing waste management contracts expire.
• Consumer business – The Consumer playbook focuses on the operationalisation of the Wesfarmers Health Sustainable Packaging Policy and Sustainable Packaging Guidelines. This playbook prioritises the application of the Australasian Recycling Label (ARL) in a greater range of private label products and the transition from non-recyclable packaging to more sustainable packaging alternatives.

Cost savings and improved waste, packaging and plastics performance are also expected from more proactive waste management. The following two outcomes are a direct result of the Wholesale and Retail business operational playbooks:

• Wholesale business – The Wholesale business collaborated with the Sustainability and Procurement teams to recontract waste management services. This is expected to deliver cost savings and waste diversion rates are also expected to improve, in part due to initiatives such as the use of reusable corflute totes as opposed to single use cardboard alternatives.
• Consumer business – Following the introduction of the ARL to its private label products in the 2024 financial year, the 2025 financial year saw more ARLs applied to products to better assist consumers to make better recycling decisions.

Health’s APCO Annual Report and Action Plan performance level improved from ‘Getting Started’ to ‘Good Progress’ compared to the previous year. Click here to view Wesfarmers Health’s latest APCO Annual Report and Action Plan.

Regulatory changes

In 2024, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) commenced a consultation process outlining reforms to packaging regulation.

The reforms are aimed at improving national performance against the 2025 National Packaging Targets. In a meeting with the federal and state environment ministers, the ministers agreed that industry led actions to date were insufficient and that urgent reform was needed to address packaging waste.

DCCEEW signalled the potential introduction of an extended producer responsibility packaging fee on brand owners, with further context provided in consultation sessions run by APCO. The magnitude of the packaging fee will be determined by a combination of the sustainability characteristics of the packaging that businesses use in their products and the volume of packaging placed on market by brand owners.

In June 2025, APCO advised that as result of the consultation, that an extended producer responsibility packaging fee model would not be introduced in the 2027 financial year with more time needed to further refine the model in collaboration with APCO members and in alignment with emerging regulatory settings.

While Health’s actions above demonstrate clear progress in transitioning to more sustainable packaging, continued improvement will be required to limit exposure to any eventual extended producer responsibility packaging fees introduced by APCO after the 2027 financial year.

This financial year, the division reported operating waste volumes of 2.6 (0.5 disposed to landfill and 2.1 recovered) kilotonnes which represents a 11.6 per cent increase compared to last year’s volumes of 2.4 (0.5 disposed to landfill and 1.9 recovered) kilotonnes and 2.3 (0.6 disposed to landfill and 1.7 recovered) kilotonnes in the 2023 financial year.

The primary reason for this increase in operating waste volumes compared to last year was due to more robust scrutiny of reported cardboard waste volumes at fulfilment centres. Cardboard is a waste stream that has well established and mainstream waste diversion and recycling potential. As a result, operational waste recycling rates have also improved to 81 per cent compared to 80 per cent last year.