Sustainability 2.0. Asda s Environmental Sustainability Targets Our Public Commitments

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1 Sustainability 2.0 Asda s Environmental Sustainability Targets 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 11.9% between The Sustainability 2.0 strategy is intended to continue the transformational plan to reduce our operational impacts but crucially accelerate progress reducing the impacts of our 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 emissionsand so costs. Return on investment decisions include cost of carbon consideration In effect from Jan 2011 In place. Shadow cost to be kept under review. Continue reducing our carbon footprint in absolute terms YOY Maintain 10% reduction (absolute) Significant project underway with PwC covering all fresh food supply chain. Stores, depots and supply chain to be resilient to adverse weather patterns from climate change Every building has a mitigation plan by end 2015 and 5 product categories by end % absolute reduction. Asda is the customer voice on healthy, affordable and sustainable products From 2011 measured as rise in perception from key stakeholders and customer panels Consulted our Everyday Experts. Working with the BRC, WWF and BNF.

3 Products Stewardship of Natural Resources - Water Reduce the water in our products to mitigate resource restrictions and costs Set absolute target in 2011 Working with Walmart to develop a global reduction target. Stewardship of Natural Resources - Carbon Support WMT project to eliminate 20 million metric tonnes of embedded carbon Global target (absolute) Active member of Walmart project team, particularly on deforestation and livestock. Stewardship of Natural Resources - Products Goal 1: Demonstrate use of legal timber and wood pulp in products, packaging and GNFR Goal 2: Have a positive impact on soil structures supporting our agriculture production Goal 3: Support R8 group on ecosystems based fisheries management 100% evidenced legal timber by 2013 (absolute) Deliver practical support to our farmers To be confirmed Adopted new Corporate Timber Procurement policy and briefed to suppliers. Published Simply Sustainable Soils guide in partnership with LEAF. 1. Exp nd exi ting initiatives inc F rm Li ks & e uc tion s hemes by Reviewing e d 2 15 best way to deliver objective with target to be set after review Support WRAP to deliver sectoral target to reduce carbon impact of packaging (Courtauld 2, Target 1) & continue to develop innovative packaging solutions for Asda products 10% reduction by 2013 (sectoral & absolute) On target; numbers reported through WRAP. Continue to reduce the environmental impact of our packagingts Sustainable Packaging Analysis & Modelling Tool rolled out in 2011 Decision taken not to roll out and plans aligned to WRAP. Manage product environmental performance through Sustainable Products Index 20 suppliers with intermediate Index by 2011 & 100% on full Index by 2016 Decision taken not to roll out as projects with The Sustainability Consortium and Product Research Forum have overtaken it. Factories making Asda brand domestic goods have energy, waste and water reduction plans Domestic factories 100% by 2013; imports 100% by 2016 Sustain and Save pilot launched with 2 degrees at start of *absolute *absolute reductions, reductions, which which means means that that even even though though we re we re growing growing as as a business, business, the the total total amount amount of of carbon carbon we we produce produce has has gone gone down down since since

4 Products Sustainable Agriculture Goal 1: Support farmers & their communities 1.1 Increase products sourced from local suppliers 1.2 Expand existing initiatives inc Farm Links & education schemes 1.3 Improve health & livelihood of women in agricultural communities 6000 products, from 600 suppliers Dairy Bus visited 165 schools and 25,000 children. Major sponsor for Open Farm Sunday, 10,000 people have visited farms as a result. Baselines for African sourced products are being established for women s contribution and financial benefit. Asda has financially supported two female agricultural PhDs. 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 2.2 Invest 99m in perishable supply chain (absolute) 2.3 Deliver program disseminating R&D for beef, pork, lamb, dairy, produce, poultry Depot to customer numbers reported through WRAP under Courtauld 2. Work underway to establish farm to depot workplan. Invested 21.6million in 2011 BeefLink, LambLink, DairyLink and PorkLink all launched with leading famers. Trialling new schemes and learnings being fed back into with the rest of the supply base Goal 3: Sustainably source key agricultural products 3.1 Only use sustainable palm oil in products (oil by end 2014; kernel by end 2015 (absolute) 3.2 Develop sustainable beef programme with clear targets 3.3 Sell only sustainable fish (absolute) 3.4 All of our tuna will come from pole & line or FAD-free sources (Fish Aggregating Devices) by the end of 2014 All of the 16,000 tonnes of palm oil and palm kernel oil used in Asda supports the RSPO scheme. 20% is segregated, 80% Green Palm. Active partner in Walmart Amazon beef project in Project ongoing in 2012 alongside Asda s own plans in the UK. Formally engaged with Sustainable Fish Partnership to review fish stocks at the point they re landed, and to develop fisheries improvement projects as required. New target. Worked with Greenpeace and our supplier to develop plans to deliver

5 Property & Energy Reduce carbon emissions from existing stores, depots and offices 35% absolute 28.7% (absolute) New store model to be more carbon efficient 60% (absolute) 42% (absolute) New depot model to be more carbon efficient 30% (absolute) 11.7% Reduce the negative environmental impact from our refrigeration 8% leakage rate (absolute) 7.1% leakage rate Reduce water usage in our buildings 30% (absolute) 5% Reduce water usage on construction sites Set absolute target in 2011 Target not yet set due to difficulty in assessing baseline Transport Reduce emissions from transport operations 60% (intensity target vs cases delivered) 42% (intensity vs cases delivered)

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