woolworths limited environment, social and governance briefing
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Doing the right thing by our business– reducing risk, protecting our reputation, looking after our people, our
customers, our shareholders and the resources that our business depends on.
Our aim is to have a responsible and sustainable business today and long into the future. A business that is:– profitable– looks after its people– provides service, quality, value for money and choice to our customers– deals fairly and with integrity with suppliers– invests in the community– protects the environment and natural resources that sustain
our business
what does sustainability mean to woolworths?
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2010 Sales Revenue was
$51.7b419,304shareholders
2010 EBIT was
$3,082.1m$36.3m invested in local communities
about woolworths
Ranked 26th globally, and 3rd in Asia Pacific, in the 2010 Deloitte Touche Tohmatsu Global Powers of Retailing report (based on annual sales revenue)
Retail brands in Australia and New Zealand
3,199 stores in Australia and New Zealand
188,065 employees
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woolworths limited brands
ALH Group
– We report our ESG performance annually in accordance with Global Reporting Initiative (GRI) guidelines and our reports are independently verified
– Our 2009 and 2010 reports have achieved GRI A+ rating for completeness of disclosure
– Association of Chartered Certified Accountants (ACCA) awarded our CR reports as best report in the retail sector for the past two years
– Signatory of the United Nations Global Compact (UNGC)
commitment to transparency
Woolworths is a signatory of the United Nations Global Compact and a member of the Global Compact Network Australia.
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– Competition in the retail sector and issues relating to cost of living – delivering value for money to our customers
– Food security, sustainable food production, food waste– Sustainable consumption vs business growth – is it possible to have
prosperity without growth?– Supply chain efficiencies to manage cost of doing business and deliver
value to our customers – electricity/carbon, water, waste and packaging costs– Responding to the expectations of the “ethical/green” consumer
– turning the potential in this segment to real sales– New store developments and community opposition in some cases– Responsible retailing of alcohol, going beyond regulatory compliance– Responsible service of gaming and revenue from poker machines
what is material to our business?
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– Staff/talent retention – Over 188,000 employees, with turnover requiring the recruitment
of 38,000 employees – Continued commitment to promoting from within – 46% of Executives have been with the company more than 10 years
– Gender balance in senior levels of management – 54% of employees are women and 27% of our leadership positions
are held by women – Committed to have 33% representation of women
as Non-executive Directors on the board
what is material to our business?
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Integration in mainstream business frameworks– Board Charter and responsibility– Risk Management framework– Strategic Planning framework
Implementation Oversight and Performance Review– Senior management has overall responsibility to ensure implementation of our
key initiatives and targets, appropriate resourcing and performance monitoring– Special Committees of senior management monitor implementation progress
on Health and Safety and Sustainability objectives: – Safety and Health Executive Committee – Sustainability Executive Committee
integration and implementation
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– With the introduction of the Modern Award, Supermarkets are paying between 2–6% above the standard entry level minimum wage
– Invested over $63 million in learning and development initiatives
2010 performance employee retention 113 graduates
have been recruited since 2005, with a retention rate of 93%
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2010 performance gender balance
54% of our workforce are women and we continue to focus on the progress of gender diversity, particularly in leadership roles
Gender Ratio by Employment Level – Female
2010 %
Senior Executives 27
Senior Managers 25
Managers 43
Office/Support Employees 50
Store Employees 59
Distribution Employees 13
Tradespeople and Apprentices 9
Plant Employees 0
Note: 2010 Data does not include DSE NZ.
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2010 performance safety
– Achieved a 34% reduction in Lost Time Injury Frequency Rate (LTIFR), down to 10.34 (target for FY10 was 10)
– LTIFR target for FY11 is 8
Woolworths Limited LTIFR Results 2008–2010
10 1009090808
10.34
2.073.14
15.71
3.77
18.86
LTIFR (million hours worked)
LTIFR (200,000 hours worked)
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sustainability strategy 2007–2015
zero food wasteto landfill by 2015
200m litres Reduce water usage by at least 200m litres a year by 2010
Implement ethical and sustainable sourcing policies
25% reduction in carbon emissions per carton delivered by Woolworths-owned trucks by 2012
40% reduction in carbon emissions on projected growth levels by 2015, bringing emissions back to 2006 levels
Up to
30% reduction in carbon emissions from our company fleet by 2010(from 2006 fleet emissions)
Targets and commitments
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– Total carbon emissions of 4.09 Mt, up from 4.05 Mt from last year– Carbon emissions from electricity use and refrigerant loss from facilities
is 500,000 tonnes (13%) lower than projected business-as-usual emissions– 51 green supermarkets have been constructed, reducing carbon emissions
per square metre by more than 25%– Logistics carbon emissions per carton delivered reduced by 9.4% since 2007– Carbon emissions from company car fleet reduced by 11.1% or equivalent
of taking 602 cars off the road
2010 performance energy use and carbon emissions
Total Emissions from Facilities 2006–2010 (Million Tonnes of CO2-e)
Actual emissions (Mt)
Business as usual
2015 Target
5.0
4.5
4.0
3.5
Mill
ions
tonn
es C
O2-e
3.0
2.5
2.0
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Resource Intensity
Per $M Sales Per $M EBIT
2009 2010 2009 2010
Energy Intensity (GJ/$M) 213.0 208.4 3,751.7 3,496.0
Carbon Intensity (T CO2-e/$M) 55.7 56.1 981.0 940.7
Water Intensity (kL/$M) 38.2 34.9 673.0 585.9
Waste Intensity (T/$M) 3.6 2.9 63.2 48.2
Recycling Intensity (T/$M) 4.1 4.0 71.4 67.3
2010 performance energy use and carbon emissions
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2010 performance energy use and carbon emissions
Energy use per square metre of trading area Carbon emissions per square metre of trading area
09 1008
3459
3484
3421
06 0705
3786
3930
3590
03 0402
4188
4283
4108
0.000000
611.857143
1223.714286
1835.571429
2447.428571
3059.285714
3671.142857
4283.000000
20% Reduction FY02 to FY10
09 1008
1.201.21
1.19
06 0705
1.301.33
1.24
03 0402
1.401.43
1.38
0.000000
0.204286
0.408571
0.612857
0.817143
1.021428
1.225714
1.430000
17% Reduction FY02 to FY10
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– Water Wise Project, flow restrictors and water efficient fittings, has delivered an estimated saving of 302 million litres of water in 2010
– Surpassed our 200 million litre target– Two large scale rainwater harvesting projects, operating at Distribution
Centres in Minchinbury and Wyong, captured 16.45 million litres of rainwater
2010 performance water
Annual water saving
09 1008
172
44
302
Annual water saving (ML)
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– Total volume of material recycled or diverted from landfill increased by 2.8% to 207,527.9 tonnes– Almost 60% of our waste material is diverted from landfill through recycling and beneficial reuse– Recycled an estimated 28.7 million clothes hangers at BIG W– Recycled mobile phones and accessories, printer consumables and batteries through
Dick Smith stores
2010 performance waste and recycling
Recycling volumes
09 1008
200,94
1
200,56
7
207,52
8
Material Recycled (T)
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Responding to consumer concerns regarding: – child labour and working conditions in developing countries– animal welfare– depleting natural resources– deforestation and impact on animal habitat
ethical and sustainable sourcing
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Labour conditions and social compliance– Our policy is based on ILO conventions – All suppliers are expected to comply with the policy– We have a third party auditing program for suppliers of our own brands– The most common area of non-conformance is working hours and living wages
Ethical Audit Program
ethical and sustainable sourcing
Audit Results – Factory Classification in 2010
Approved 6%
Conditionally Approved 72%
At Risk 22%
Audit Results – Number of Corrective Actions Raised in 2010
Critical 2%
High 78%
Low 20%
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ethical and sustainable sourcing
Sales Growth for Free Range Products
Percentage Percentage Percentage increase increase of total in sales in sales category in 2009* in 2010* sales in 2010 Product % % %
Free range chicken (Macro meat) 33.6 30.1 16.4
Free range chicken (Macro deli) n/a 263.8 2.3
Free range eggs 32.0 15 35.8
Barn laid eggs 20.7 11 11.3
Organic Macro meat 25.8 10.0 0.8
* Percentage increase based on increased sales from previous financial year.
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ethical and sustainable sourcing
– Select eggs are free range or barn laid – Discontinued caged eggs in Select at the end of 2009– Clear signage and shelf layout in stores to differentiate
free range, barn laid and caged eggs– Caged eggs still represent 49.8% of our total
egg sales by value– 36% of all fresh pork that is supplied to Woolworths is
produced from pigs born to sows that have been reared in a sow stall free environment. By the end of 2011 this will have increased to 42%
In 2010, we sold free range pork in 272 stores in Australia
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Palm Oil – Not using palm oil where there are healthier alternatives– 95% of our Select brand products do not contain palm oil– Membership to Roundtable on Sustainable Palm Oil (RSPO)– Clear labelling of palm oil– Moving to certified sustainable palm oil for all our own brands by 2015
Timber, pulp and paper– We aim to source certified sustainable timber, pulp and paper– Select brand tissues, toilet paper and kitchen towels are all PEFC certified– Our catalogues are PEFC certified– The copy paper we use in our offices is FSC certified– We are working on a timber sourcing policy for our home
improvement businessFSC – Forest Stewardship Council PEFC – Program for Endorsement of Forest Certification
ethical and sustainable sourcing
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Fish sourcing– Review of our range is underway– Delisting of three overfished species from our fresh range – tuna – swordfish – orange roughy– More Marine Stewardship Council certified products
will also be ranged in the new year
ethical and sustainable sourcing
By-catch, catching methods and other risk issues are being considered in the review process
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key challenges
What are the main future challenges?
questions
?