Maximising energy efficiency
In the past year, Kmart committed to establishing a dedicated function to monitor and manage energy use and costs across the business. The Kmart Energy Centre commenced operations in January and provides a range of services including: continuous monitoring of energy use and demand; energy event and demand response; benchmarking of sites to identify best practice and poor performance; tariff management and optimisation; and business case development to support further investment in energy efficiency initiatives.
By working closely with functions including facilities management, finance, property and procurement, the Energy Centre has been able to establish energy baselines for all sites, reduce unnecessary overnight energy use which was previously invisible, and move stores onto more cost-effective tariffs.
Replacement of old fluorescent tubes with LED lighting was temporarily put on hold during the year due to safety concerns, including two near misses linked to light fittings falling from ceilings. Although no individuals were hurt, the reasons for the incidents were investigated and rectified. Kmart has also implemented a review process and stronger safety checks to prevent further occurrences, and replaced one installation contractor that failed to meet expected safety standards. The program has now resumed.
As at 30 June, LED lighting has been installed at 66 stores with an average energy reduction of 27.1 per cent. The remaining 48 eligible stores will be completed by the end of the 2017 calendar year.