Assignment
Aussie Tea Brand T2 Exceeds its own Sustainability Targets Written by Ella Harris, B&T Australia
Australian tea retailer, T2, has today released its 2021 T2 Impact Report, cementing and growing the company's deep commitment to its long-term sustainability strategy to use growth as a means to a greater good for people and planet.
The 2021 Impact Report highlights the company's significant achievements across ongoing environmental actions, targets, and goals, such as the move to plant-based teabags, ethically and sustainably sourced tea, reducing carbon footprint from farm to store, and zero waste targets.
Over the past year, T2 has reached a major goal of having 100 per cent of its tea and tea ingredients sustainably sourced, and has reduced carbon emissions by 15 per cent between 2020 and 2021, while continuing to invest in carbon-reducing projects.
Commenting on the release of its 2021 Impact Report, T2 global managing director, Derek Muirhead said, "This report provides proof of T2's deep commitment across the supply chain to do good for people and planet, demonstrating our ongoing dedication to ethical and responsible business practices.
"Underpinned by B Corp, our 2021 Impact Report is part of our purpose to be transparent and to establish leadership in the tea category as a 'good business' that supports diversity, inclusion, equity and best sustainable practice for the planet."
T2, which employs 800 people globally with over 60 stores across Australia, UK, US, Singapore, and New Zealand, achieved B Corp certification in 2020 following an intense 18-month assessment process, meeting rigorous standards across the entire supply chain, and on social and environmental performance, accountability, and transparency.
Sustainable Supply Chain
T2 works closely with suppliers who prioritise social and environmental standards. Since 2021, all new tea and tea ingredients are sustainably sourced under third-party standards, tied to an accreditation confirming sustainable origins. In particular, the brand's English breakfast tea is Fairtrade and Organic teas are Certified Organic.
"A prime example is our Certified lemongrass project, which has brought great benefit to T2 and our supplier in Thailand, helping to protect biodiversity in cultivation areas, improving soil health and reducing emissions. This is a key partnership that we plan to continue with further discussions planned later this year," says Muirhead.
Reducing Carbon
The 2021 Impact Report outlines how T2 is working to further reduce its carbon footprint, from farm to store, as well as increasing its sustainable packaging and zero waste targets.
For example, T2 is forging ahead with its Zero Waste Goal to increase waste diversion away from landfill to more than 90 per cent by the end of 2022. In addition, the company continues to source green energy providers and is building on its partnership with the Qantas Future Planet Program, which offset 18,298 tonnes of carbon through the renewable energy Winds of Change project in farms in India, creating 52 new jobs in 2021 and increasing land values by 300 per cent.
T2 continues to commit to reducing its energy use across operations, from opening its first Green Star store to implementing energy reduction processes at its Melbourne head office. The company prioritises onsite renewable electricity generation and consumption, which after the installation of solar panels in 2020, saved more than 20,000 kg of CO2 emissions. Furthermore, in 2020, T2 offset 342.5 tonnes of energy associated with its buildings and retail locations.
"Where possible we choose green energy providers at our retail locations. Approximately 45 per cent of our stores have made the switch, and we continue to work with our vendors to ensure we increase this number in 2022," adds Muirhead.
Sustainable Packaging
T2 continues to focus on several key areas in sustainable packaging, which from 2022 includes use of compostable plant-based polybags, compostable shopping bags that can be recycled, and recyclable gift wrapping. In addition, T2 aims to use recycled content to help support the circular economy and source materials from responsibly managed forests.
T2's goals for sustainability are in accordance with the United Nation's Sustainable Development Goals, which include positive action to improve not only the health of the planet, but also to improve equality, equity and wellbeing for people.
Diversity & Inclusion
The 2022 Impact Report outlines the continuation of the company's already well-established Diversity and Inclusion (D&I) program, which is a core part of its business model.
The company has expanded on its D&I initiatives with internal staff programs, including its 2022 Reconciliation Action Plan, ethical supply chain practices and work with the Ajiri Foundation in Kenya.
"T2 places a strong focus on Reconciliation, with our country about to vote on a key change for constitutional recognition of our First Nations people," said Muirhead.
"We continue to focus on our internal programs that are dedicated specifically to embracing Aboriginal and Torres Strait Islander safer cultural protocols, including The Difference between Acknowledgment of Country v Welcome to Country and Reconciliation, building lasting relationships with community entrepreneurs and businesses, and building a truly inclusive and safe working environment."
"Our goal is to maintain a culture where we uplift, celebrate and welcome people exactly as they are, to embrace difference."
As the company approaches re-certification for B Corp status later in 2022, Muirhead concludes, "over the past two years, T2 has revolutionised the way we do business to ensure that we continue to play an important role in creating a future that puts people and planet first for an inclusive and sustainable economy that truly makes an impact."
Task
A. The case mentions how T2 is responding to the Marketing Environment. Explain how the company is responding specifically to two relevant macro-environment trends discussed in the article.
B. Market research is important for all organisations, how will it be important for T2? What data should they collect, and how would you recommend they collect that data?
C. How does this article relate to the key concepts of Mental and Physical Availability?