The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is outperforming the broad index on Tuesday.
Whereas the S&P/ASX 200 Index (ASX: XJO) is up 0.25% on the day, Bendigo Bank shares have climbed around 1.5% in the green.
Bendigo shares are on the move as "Australia's better big bank" revealed a new program aimed at reducing textiles waste from its old staff uniforms.
Let's peel back the layers on this one to get a better understanding of what Bendigo is up to.
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'Sustainability First' uniforms
Bendigo Bank has partnered with award-winning recycling company Uparrel in a program to re-use and re-purpose its old work uniforms to soft filling.
Uparrel is a textiles recycling company that "eradicates textile waste". It has a number of partnerships already in place. As such, Uparrel is gaining traction in the recycling business.
The "uniform recycling program", as Bendigo puts it, mirrors the company's focus on "supporting long-term strategies" of sustainability.
For context, Bendigo arrived at a dilemma when it introduced "new mix and match" uniforms for its staff from August 2021.
This led to a potential textiles waste problem with an "estimated 32-plus tonnes" of old uniforms no longer being worn. Hence, the Uparrel partnership seemed a natural fit to solve Bendigo's problem.
As a result, the bank has achieved "carbon neutrality" this calendar year. Moreover, it is committed to "purchasing 100% renewable energy by 2025".
Furthermore, Bendigo and Uparrel will meet again at the end of the project to discuss the total amount of greenhouse gases that were offset.
For instance, Bendigo stated that "every kilogram of clothing" that is recycled "will prevent 3-4 kg of greenhouse gases from entering our atmosphere".
The duo will focus on producing a children's flip-up sofa, made by Uparrel. One unit will purportedly use 3kg of recycled textiles.
In addition, Bendigo has extended its reach by allowing staff to send in their own old uniforms. In addition, it is offering discounts on solar panels and batteries for employees' homes.
What did management say?
Bendigo's executive of consumer banking Richard Fennell said:
We are proud to announce that Upparel has been chosen as our partner to assist with the upcycling of the old uniform range as we introduce a more contemporary 'mix and match' corporate wardrobe that really allows the personality of our Bendigo Bank team to shine through.
Bendigo Bank share price snapshot
The Bendigo Bank share price has had a choppy year to date, posting a gain of only about 6% since January 1. As such, it has lagged the broad index this year.
In addition, over the last month, Bendigo shares are about 3.5% in the red.
Despite this, the Bendigo share price has gained 56% over the last 12 months. This return has outpaced the broad index's return of about 25% over the past year.
