woolworths limited environment, social and governance briefing

Transcription

1 woolworths limited environment, social and governance briefing

2 what does sustainability mean to woolworths? 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 1

3 about woolworths Retail brands in Australia and New Zealand Ranked 26th globally, and 3rd in Asia Pacific, in the 2010 Deloitte Touche Tohmatsu Global Powers of Retailing report 3,199 stores in Australia and New Zealand 188,065 employees (based on annual sales revenue) 419,304 shareholders 2010 Sales Revenue was $51.7b 2010 EBIT was $3,082.1m $36.3m invested in local communities 2

4 woolworths limited brands ALH Group 3

5 commitment to transparency 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) Woolworths is a signatory of the United Nations Global Compact and a member of the Global Compact Network Australia. 4

6 what is material to our business? 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 5

7 what is material to our business? 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 6

8 integration and implementation 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 7

9 2010 performance employee retention 113 graduates have been recruited since 2005, with a retention rate of 93% 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 8

10 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. 9

11 2010 performance safety Achieved a 34% reduction in Lost Time Injury Frequency Rate (LTIFR), down to (target for FY10 was 10) LTIFR target for FY11 is 8 Woolworths Limited LTIFR Results LTIFR (million hours worked) LTIFR (200,000 hours worked) 10

12 sustainability strategy Targets and commitments 40% reduction in carbon emissions on projected growth levels by 2015, bringing emissions back to 2006 levels 25% reduction in carbon emissions per carton delivered by Woolworths-owned trucks by 2012 Up to 30% reduction in carbon emissions from our company fleet by 2010 (from 2006 fleet emissions) 200m litres Reduce water usage by at least 200m litres a year by 2010 zero food waste to landfill by 2015 Implement ethical and sustainable sourcing policies 11

13 2010 performance energy use and carbon emissions 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 Total Emissions from Facilities (Million Tonnes of CO 2 -e) Millions tonnes CO 2 -e Actual emissions (Mt) Business as usual 2015 Target 12

14 2010 performance energy use and carbon emissions Resource Intensity Per $M Sales Per $M EBIT Energy Intensity (GJ/$M) , ,496.0 Carbon Intensity (T CO 2 -e/$m) Water Intensity (kl/$m) Waste Intensity (T/$M) Recycling Intensity (T/$M)

15 2010 performance energy use and carbon emissions Energy use per square metre of trading area 20% Reduction FY02 to FY10 Carbon emissions per square metre of trading area 17% Reduction FY02 to FY

16 2010 performance water 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 million litres of rainwater Annual water saving Annual water saving (ML) 15

17 2010 performance waste and recycling 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 Recycling volumes , , , Material Recycled (T) 16

18 ethical and sustainable sourcing Responding to consumer concerns regarding: child labour and working conditions in developing countries animal welfare depleting natural resources deforestation and impact on animal habitat 17

19 ethical and sustainable sourcing 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 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% 18

20 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) Free range chicken (Macro deli) n/a Free range eggs Barn laid eggs Organic Macro meat * Percentage increase based on increased sales from previous financial year. 19

21 ethical and sustainable sourcing In 2010, we sold free range pork in 272 stores in Australia 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% 20

22 ethical and sustainable sourcing 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 business FSC Forest Stewardship Council PEFC Program for Endorsement of Forest Certification 21

23 ethical and sustainable sourcing By-catch, catching methods and other risk issues are being considered in the review process 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 22

24 key challenges What are the main future challenges? 23

25 questions?