Sustainability 2.0. Asda s Environmental Sustainability Targets Our Public Commitments

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1 Sustainability 2.0 Asda s Environmental Sustainability s Our Public Commitments

2 Overview of strategy Since 2005 we ve made great strides in reducing our own operational carbon impacts and in fact have reduced our carbon footprint by 7% between The Sustainability 2.0 strategy is intended to continue the transformational plan to reduce our operational impacts but crucially start the transition into supply chain Sustainability 2.0 will kick-start this focus on supply chain and products through Sustainable Agriculture, the Sustainable Products Index & the 20m tonnes GHG Reduction Plan The key mantra is to reinvest savings or re-engineer products to be more environmentally preferable while making sustainability affordable for all Corporate Be the customer champion offering affordable and sustainable products. Champion a common sense approach to carbon reduction whilst helping our customers to reduce their costs and carbon emissions. Continue reducing our carbon footprint in absolute* terms YOY 3% incremental reduction. 7% reduction 10% reduction Stores, depots and supply chain to be resilient to adverse weather patterns from climate change Every building has a mitigation plan by 2016 and 5 product categories by 2012 Every building has a mitigation plan by 2016 and 5 product categories by 2012 Asda is the customer voice on healthy, affordable and sustainable products From 2011 measured as rise in perception from key stakeholders and customer panels From 2011 measured as rise in perception from key stakeholders and customer panels

3 Products end 2010 Stewardship of Natural Resources Reduce the water in our products to mitigate costs and resource restrictions Set absolute* target in 2011 Set absolute* target in 2011 Stewardship of Natural Resources Support WMT project to eliminate 20 million metric tonnes of embedded carbon Global target Global target Sustainable Agriculture Goal 1: Support farmers & their communities 1.1 Increase products sourced from local suppliers by 1.1 Increase products sourced from local suppliers by 1.2 Expand existing initiatives inc Farm Links & education schemes by 1.2 Expand existing initiatives inc Farm Links & education schemes by 1.3 Improve health & livelihood of women in ag communities by end Improve health & livelihood of women in ag communities by end 2015 Goal 2: Produce more food with less waste & fewer resources 2.1 Reduce fresh food waste & utilise unavoidable waste using sustainable methods by 10% farm to fork by 2.1 Reduce fresh food waste & utilise unavoidable waste using sustainable methods by 10% farmtofork by 2.2 Invest 99m in perishable supply chain by 2.2 Invest 99m in perishable supply chain by 2.3 Deliver programme disseminating R&D for beef, pork, lamb, dairy, produce, poultry by 2.3 Deliver programme disseminating R&D for beef, pork, lamb, dairy, produce, poultry by end 2015 Goal 3: Sustainably source key agricultural products 3.1 Sustainable palm oil in Asda brand products (oil by end 2014; kernel by 3.1 Sustainable palm oil in Asda brand products (oil by end 2014; kernel by 3.2 Develop sustainable beef programme with clear targets by 3.2 Develop sustainable beef programme with clear targets by assessed by the Sustainable Fish Partnership by % responsibly sourced as assessed by the Sustainable Fish Partnership by All of our tuna will come from pole & line or FAD-free sources (Fish Aggregating Devices) by the end of All of our tuna will come from pole & line or FAD-free sources (Fish Aggregating Devices) by the end of 2014

4 Products Stewardship of Natural Resources - Products Goal 1: Demonstrate use of legal timber and wood pulp in products, packaging and GNFR 100% evidenced legal timber by % evidenced legal timber by 2013 Goal 2: Have a positive impact on soil structures supporting our agriculture production Goal 3: Support R8 group on ecosystems-based fisheries management Support WRAP to deliver sectoral target to reduce carbon impact of packaging (Courtauld 2, 1) & continue to develop innovative packaging solutions for Asda products 10% reduction by 2013 (sectoral & absolute*) Sustainable Packaging Analysis & Modelling Tool rolled out in % weight reduced (absolute target) 10% reduction by 2013 (sectoral & absolute) Sustainable Packaging Analysis & Modelling Tool rolled out in 2011 Manage product environmental performance through Sustainable Products Index 20 suppliers with intermediate Index by 2011 & 100% on full Index by suppliers with intermediate Index by 2011 & 100% on full Index by 2016 Factories making Asda brand domestic goods have energy, waste and water reduction plans Domestic factories 100% by 2013; imports 100% by 2016 (Index) Domestic factories 100% by 2013; imports 100% by 2016 (Index)

5 Property & Energy Minimise carbon emissions from our buildings to reduce costs, mitigate future oil price rises, reduce impact from carbon pricing and help to win planning consents. Reduce carbon emissions from existing stores, depots & offices 15% (absolute*) 21.4% 35% New store model to be more carbon efficient 20% 42% 60% New depot model to be more carbon efficient 20% 10% 30% Reduce the negative environmental impact from our refrigeration 13% leakage reduced to 8% leakage rate 20% reduced to 11% leakage rate 8% leakage rate Reduce water usage in our buildings 25% 5% 30% Reduce water usage on construction sites Set target in 2011 Set target in 2011 Transport Minimise carbon emissions from our buildings to reduce costs, mitigate future oil price rises, reduce impact from carbon pricing and help to win planning consents. Reduce emissions from transport operations 20% (intensity target vs cases delivered) 42% (intensity target vs cases delivered) 60% (intensity target vs cases delivered) *absolute reductions, which means that even though we re growing as a business, the total amount of carbon we produce has gone down since 2005

6 Waste All operational waste diverted from landfill Remaining 9% (absolute*) 91% 100% diversion All construction waste (defined under site waste management plans) diverted from landfill Remaining 5% 95% 100% Support WRAP to deliver sectoral target to reduce UK household food and drink wastes (Courtauld 2, target 2) 4% by 2013 (sectoral) 4% by 2013 (sectoral) Support WRAP to deliver sectoral target to reduce grocery product and packaging waste in supply chain (Courtauld 2, target 3) 5% by 2013 (sectoral) 5% by 2013 (sectoral) Support the WMT global goal to reduce carrier bag usage by 33% by 2013 WMT global target WMT global target WMT global target