Steps to Responsible Growth Kingfisher Social Responsibility Programme

Transcription

1 Steps to Responsible Growth Kingfisher Social Responsibility Programme SOCIAL RESPONSIBILITY Kingfisher has a 21% stake in, and strategic alliance with, Hornbach, Germany s leading DIY warehouse retailer. AUGUST 2006

2 Steps to Responsible Growth Contacts Ray Baker, Director of Social Responsibility, Kingfisher plc Caroline McCarthy-Stout, Public Affairs Manager, Kingfisher plc Kingfisher plc 3 Sheldon Square, Paddington London W2 6PX Tel: +44 (0) First published in June 2005 Kingfisher plc 2006

3 Steps to Responsible Growth Kingfisher Social Responsibility Policy

4 41 Kingfisher Social Responsibility Policy Social Responsibility and Kingfisher Kingfisher aims to be the world s best international home improvement retailer, selling new and exciting products at great prices. Our strategy is to develop a world-wide chain of stores sourcing products from factories around the world. As a global retailer we recognise that we have a local and world-wide impact on the environment and society.we need to develop and maintain a thriving business, but we believe that being the best also means ensuring that the long-term development of our business is environmentally and socially sustainable. Ensuring that our commercial success and growth is not achieved at the expense of the communities and environments in which we operate, presents complex and difficult challenges.we don t have all of the answers, but as a global business with a wide range of experience across many different markets and cultures, we are well-placed to take a lead in developing and implementing solutions to the issues which arise. Our vision is to improve the quality of life of everyone our business touches, not just for our customers and shareholders but equally our employees, the people making the products we sell and the wider community. Our policy sets out our aims and commitments and provides the framework for our actions to improve our social and environmental performance in the areas of: Environmental Product stewardship Energy management Sustainable operation Social Respect for the diversity of people Factory working conditions Store neighbourhoods These commitments are organised around 12 key areas where our research shows that we can have the greatest impacts. This policy has been adopted by the board of Kingfisher, who will ensure that the commitments it contains are progressively implemented through its individual operating companies defined action plans to agreed timescales. Progress will be measured, reported and independently verified using appropriate performance indicators. This policy and our action plans and performance indicators are reviewed at least annually.

5 1 Steps to Responsible Growth Kingfisher Social Responsibility Policy August 2006 Supplier environmental performance 2 2 Our aim: To build active partnerships with our suppliers in order to develop more sustainable supply chains for all the products we sell. The growth of our business requires robust, sustainable supply chains for the products we sell. Our customers do not want to buy products that have caused excessive pollution during manufacture and they expect us to ensure that our suppliers strive to achieve the same environmental standards as we do ourselves. We will work with our suppliers to help them reduce their impact on the environment and manage the challenges of sustainable business growth. It is Kingfisher s policy to: know which supplier is making every product we sell and where these products are being made set standards for the environmental performance of our product suppliers Product environmental and social impact Social and Environmental Our aim: To give our customers confidence that the environmental and social issues associated with the products they buy from us are properly managed. Each home improvement product has its own life-story, encompassing the raw materials it was made from, how it was manufactured and transported, the people and communities who are involved, how it is used and how it is likely to be disposed of at the end of its useful life. Each step, in each product s lifestory may be associated with some particular environmental or social concern. As a global retailer we must ensure that the production, use and end-of-life treatment of the products we sell result in as little environmental damage as possible and that there are social benefits to everyone in the supply chain. It is Kingfisher s policy to: actively research the environmental and social issues associated with the production, use and disposal of all of the different types of product we sell identify types of products that have particularly critical environmental or social problems associated with them work with suppliers to find solutions to the environmental and social issues associated with critical product types and set standards for these

6 3 Steps to Responsible Growth Kingfisher Social Responsibility Policy August Timber Social and Environmental Our aim: To ensure that our wood and paper products come either from proven, wellmanaged forests or recycled material. Kingfisher stores sell a lot of timber and products made from or containing wood.we are committed to ensuring that the timber extraction associated with the products we sell does not harm forest conservation or the lives of people who live and work in the forests.we are committed to sourcing timber only from proven, well-managed forests and will use our buying power to promote good forest management. It is Kingfisher s policy to: work with our suppliers of timber and timber-containing products to establish the origin of the wood used identify any timber products that originate from illegal or controversial sources and have action plans to manage those risks ensure that all the timber, timber-containing and paper products we sell come from forests independently certified as well-managed, according to the Kingfisher criteria, or from recycled materials. Currently the Forest Stewardship Council (FSC) is the umbrella scheme that is closest to meeting fully the Kingfisher criteria and FSC is therefore the preferred certification scheme.where certified hardwood is not currently available, we will source timber in partnership with organisations committed to improving forest management as outlined in Kingfisher's 'Steps to Responsible Growth' 4 Chemicals Our aim: To ensure that the products we sell do not adversely affect the health of our customers, or staff, or that of their environment. Global society relies increasingly on an extensive range of chemicals both natural and man-made to produce the products used in every-day life. But as our understanding of human health and environmental science improves, new ways in which these chemicals may affect the natural world are being discovered.there is increasing concern about some chemicals potential to accumulate and persist in the environment with possible adverse health effects on people, animals and plants. As a result, regulatory controls on the use of chemicals are being strengthened and more restrictions on the use of some chemicals in consumer products are anticipated.the use of animal testing to assess the risks of chemicals is coming under increasing scrutiny. We have an obligation to our stakeholders to be aware of the concerns associated with the use of chemicals in products, and to take appropriate action to reduce exposure. Our aim is to understand and manage the chemical issues associated with our products by substituting or eliminating chemicals of concern wherever we can. It is Kingfisher s policy to: identify chemicals used in our products that are currently, or have the potential to be, the focus of concern or controversy with customers, media or other interested groups work with suppliers to substitute chemical ingredients where there are recognised environmental or health and safety issues, with lower risk alternatives discontinue products, in those circumstances where our research indicates that the chemicals they contain pose significant risks to customers, staff and the environment

7 5 Climate change Steps to Responsible Growth Kingfisher Social Responsibility Policy August Our aim: To reduce our contribution to climate change by reducing the energy we use to run our premises and transport fleet, and by promoting and selling products that are energy efficient both in their manufacture and use. Climate change, triggered by greenhouse gases from burning fossil fuels, is arguably the greatest threat to the world s environment. Kingfisher contributes to greenhouse gas emissions through the energy consumption of its stores for heating and lighting and through transport-related exhaust emissions. We also contribute indirectly to climate change by selling appliances and other products that need energy to manufacture and to operate. We are committed to reducing our impact through improving the energy efficiency of our stores and vehicles and by encouraging our customers to undertake energy conservation measures in their own homes. It is Kingfisher s policy to: monitor and review the energy consumption of all of our properties improve the energy efficiency of our properties, in relation to the size of our business work with suppliers to develop more energy efficient products and promote these to our customers to enable them to improve the energy efficiency of their homes Social and Environmental 6 Packaging Our aim: To minimise the amount of packaging associated with our products and, where packaging is unavoidable, to reduce the impact of its use. Packaging is a component of most consumer products which utilises significant quantities of material resources and also represents a major financial cost.waste packaging is a highly visible component of global waste streams. Kingfisher is committed to working with suppliers to reduce packaging and increase packaging recycling. It is Kingfisher s policy to: work with product suppliers to minimise the amount of packaging, to that required to be fit for purpose design packaging so that it can be easily recycled wherever possible specify the use of recycled materials in packaging

8 5 Steps to Responsible Growth Kingfisher Social Responsibility Policy August Product disposal Social and Environmental 8 Our aim: To increase the amount of Kingfisher products that are re-used or recycled. The amount of waste material produced by households around the world continues to increase.the disposal of this waste by conventional means, such as landfill or incineration, represents an unsustainable loss of raw material resources and poses a major problem to governments around the world as they struggle to keep pace with the need for new waste disposal facilities. In-line with Kingfisher s goal of being welcomed in the communities served by our stores, we take our share of the responsibility for what eventually happens to the products we sell after they reach the end of their useful life. It is Kingfisher s policy to: work with suppliers to design products that can be recycled at end of life work with suppliers to develop products that use recycled materials in their manufacture participate in schemes to take-back, recover, re-use and recycle end-of-life products Transport Our aim: To reduce the transport impacts of our store operations and other activities. The volume of road traffic is growing rapidly around the world with widespread concerns about traffic congestion in and around urban centres.traffic makes a major contribution to air pollution and climate change through exhaust emissions, and causes noise and nuisance at local level. But Kingfisher, like most retailers, depends heavily on road transport for distributing products to stores and many of our customers find it convenient to visit our stores in their cars, especially as many home improvement products are heavy or bulky. We are committed to reducing our impact by making our own vehicles more efficient, developing alternatives to road distribution. It is Kingfisher s policy to: reduce emissions and energy consumption, in relation to the quantity of goods handled, through efficient logistics programmes and by using alternatives to road transport provide access to our products through the use of various shopping channels and transport systems, to provide our customers with a choice of shopping routes as alternatives to the private car, where appropriate develop programmes to reduce the impacts of staff travel to work, where appropriate

9 9 Store waste Steps to Responsible Growth Kingfisher Social Responsibility Policy August Our aim: To reduce the amount of waste generated by our stores and other activities. Kingfisher contributes to the global waste mountain by generating waste from its stores and other premises. Not only is this bad for the environment, it costs the business money.we are committed to reducing the amount of material we throw away, by recycling or re-using as much as possible.where disposal is inevitable, we will do this in a responsible manner. It is Kingfisher s policy to: maximise the proportion of waste from our stores and other operations that is re-used and recycled ensure that any hazardous wastes generated in stores and other premises are segregated from other waste and stored and disposed of appropriately Factory working conditions Social and Environmental Our aim: To ensure that everyone involved in our supply chains benefits from trading with us. Our business has a direct impact on the lives of people all over the world and we are committed to doing business in a way which ensures that everyone in our supply chains benefits from trading with us. We believe that high workplace standards, good health and safety and fair pay and employment conditions are all elements of a successful, professionally run business and contribute to its efficiency and productivity. Kingfisher s approach is one of engagement with suppliers and workers and recognises and respects cultural diversity within supply chains. Our customers want new and exciting products at great prices, but not at the expense of the people who make them.we are committed to sourcing products responsibly. It is Kingfisher s policy to: know which supplier is making every product we sell and where these products are being made set and assess workplace standards for our suppliers factories, including minimum standards which must be met as a condition of supply and higher standards which suppliers are required to meet within agreed timescales work in partnership with our suppliers, governments and non-governmental organisations to address challenging issues within our supply chains provide help and guidance to those factories making our products in order to help them achieve the required standards

10 7 Steps to Responsible Growth Kingfisher Social Responsibility Policy August Respect for the diversity of people Social and Environmental Our aim: To treat both employees and customers with dignity and respect, and to value the differences people bring to our business. Our capacity to serve, employ and buy products from people across the world will increasingly depend on our ability to understand and work in harmony with diverse stakeholder groups. Customers and employees rightly demand that everyone who works or shops with us is treated with dignity and respect, and has equality of opportunity in accessing our stores, products and services and in employment. We will create an environment that respects, welcomes and enables our employees to reach their full potential for the benefit of the company and themselves. It is Kingfisher s policy to: ensure that there is no discrimination in employment on grounds of race, gender, age, disability, marital status, sexual orientation or religious belief implement measures in stores to ensure a level of customer service for disabled people equivalent to that offered to non-disabled people maintain a mechanism which customers and employees can use to give feedback on our performance and ensure that all customer comments are analysed, responded to and acted upon 12 Store neighbours Our aim: To make every Kingfisher store a good neighbour in the community it serves. Kingfisher has a significant commercial impact on every community where it has a store, through the employment provided and through opportunities to contribute to community projects. Our stores also have the potential to cause disturbance to local residents, especially through traffic movements, vehicle noise, light pollution and litter. Kingfisher wants all of its stores to help in creating lasting improvements and benefits in the communities they serve. It is Kingfisher s policy to: ensure that stores understand how they can most effectively exceed the expectations of their local communities and implement initiatives contribute skills and funding to selected community projects

11 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy

12 12 9 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy Purpose The Kingfisher Board has approved a Social Responsibility Policy, which sets out the public commitments the Group has made and provides the framework for all Operating Company actions to improve social and environmental performance. The policy is organised around 12 key issues where our research shows that we can have the greatest impacts.these are: 1 Supplier environmental performance 2 Product environmental and social impacts 3 Timber 4 Chemicals 5 Climate change 6 Packaging Assessment of compliance 7 Product disposal 8 Transport 9 Store waste 10 Factory working conditions 11 Respect for the diversity of people 12 Store neighbours A number of key actions which Operating Companies will take to demonstrate compliance with the policy commitments have been specified for each policy issue.these key actions are set out in this document, together with the evidence required to demonstrate that each action has been completed. Three levels of policy compliance have been defined for each issue: Minimum Action: Policy Target: Leadership Position: indicating that the Operating Company has made a meaningful start, is committed to meeting the policy commitments for this issue and has action plans in place to make further progress. the Operating Company meets the basic requirements of the policy for this issue. the Operating Company is recognised as being a leader both in its actions and in the debate on this issue. Steps to Responsible Growth LEADERSH POSITION POLICY TARGET MINIMUM ACTION

13 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August SOCIAL RESPONSIBILITY Guidance on using this document 1 To determine what level your Operating Company has achieved for each policy issue, work through the tables in each section and decide whether or not you can provide the evidence required to show that you have completed each key action outlined on each row. Tick Yes for a row if you have completed an action. Tick if you are in progress and are working towards completing an action. Tick No if you have not started. 2 To demonstrate that you have reached the Minimum Action level you must have a Yes against each action in the Minimum Action table. 3 To demonstrate that you have reached the Policy Target level you must have a Yes against each action in the Minimum Action table, plus, each action in the Policy Target table. 4 To demonstrate that you have reached the Leadership Position level you must have a Yes against each action in the Minimum Action table, plus, each action in the Policy Target table, plus, each action in the Leadership Position table. 5 This document should be complete in electronic format, details will be ed to you shortly.the electronic format will have on-screen instructions. 6 Where you have answered Yes or for an action, in the second column of each table, list the titles of the supporting procedures and other information that you have available to demonstrate that you have completed this action or have made some progress. Supporting information may be in the form of names or short descriptions of action plans, documents, procedures, data sets, etc.you do not need to provide lengthy explanations or descriptions. 7 Please note that at this time it is not necessary to submit copies of documentation, or data, when you return the document. However, for verification purposes, please complete the final column of each table, showing where each piece of documentary supporting evidence is located and who is responsible for keeping this e.g. electronic or hard copy and location. Please also note that data relating to Kingfisher KPIs will be required during the year details to follow shortly. 8 If you have completed any actions which are not specified in the table, but which you believe contribute to achieving the policy commitments, please outline these (including supporting evidence) in the Additional information box at the end of the document. We are always interested in any case studies etc which could be used in our internal and external communications please give a brief description with dates. 9 Where you have answered No or to an action, use these action points as the basis for your social responsibility action plan for the coming 12 months. 10 To help with the implementation of your programme, guidance notes on a range of issues will be made available on KingNet shortly.

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15 Steps to Responsible Growth 1 Supplier environmental performance

16 Supplier environmental performance Steps to Responsible Growth Our aim: To build active partnerships with our suppliers in order to develop more sustainable supply chains for all the products we sell. The growth of our business requires robust, sustainable supply chains for the products we sell. Our customers do not want to buy products that have caused excessive pollution during manufacture and they expect us to ensure that our suppliers strive to achieve the same environmental standards as we do ourselves. We will work with our suppliers to help them reduce their impact on the environment and manage the challenges of sustainable business growth. It is Kingfisher s policy to: know which supplier is making every product we sell and where these products are being made set standards for the environmental performance of our product suppliers Business drivers Supply chain development Brand perception

17 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Supplier environmental performance MINIMUM ACTION 1 Prepare a current list, or other record, of all products and the *vendor of each product. * The vendor is either the Overseas Sourcing Office (OSO) or the importer of the product, not the factory or production unit. 2 Provide an action plan detailing how your OpCo will work with the vendor to identify the factory(s) where the product is made (or provide a list or other record showing the factory making each product, see points 5 and 11). 3 Provide an action plan of how you will produce a documented **summary of the main environmental issues that are relevant to each vendor and product type, or provide the summaries. ** The Kingfisher Vendor Assessment Process will provide these summaries expected Please see Additional information TE 1 for details. 4 Provide an action plan detailing how your OpCo will assess all new vendors using the Kingfisher Vendor Assessment Process (when available in 2006). This should ensure that vendors: have an Environmental Policy have plans for implementing the policy, e.g. a management system and relevant objectives and targets are in compliance with environmental legislation Or provide evidence that your OpCo s current process delivers this see point 6. POLICY TARGET 5 Provide evidence for a systematic process of obtaining factory details from vendors as part of vendor assessment and new product introduction processes. LIST SUPPORTING EVIDENCE e.g. titles of procedures, action plans, data sets etc. FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible?

18 15 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Supplier environmental performance POLICY TARGET 6 Provide a list or other record showing the vendor and factory(s) of each of the vendor s products covering at least 75% of vendors. 7 Provide evidence that environmental criteria are incorporated into new vendor selection and evaluation processes e.g. the Kingfisher Vendor Assessment Process (when available). Environmental criteria should ensure that vendors: have an Environmental Policy have plans for implementing the policy, e.g. a management system and relevant objectives and targets are in compliance with environmental legislation 8 Provide evidence of a documented and systematic vendor audit programme, e.g. the Kingfisher Vendor Assessment Process (when available) to ensure compliance with environmental selection criteria, covering key vendor and product issues. 9 Provide the results of vendor audits to ensure compliance with environmental selection criteria, and follow-up actions covering at least 50% of vendors. 10 Provide evidence of training or communication for commercial teams on the environmental issues affecting supply chains for key vendor and product types. LEADERSH POSITION 11 Provide a list or other record showing the vendor and factory(s) of each of the vendor s products covering at least 90% of vendors. LIST SUPPORTING EVIDENCE e.g. titles of procedures, action plans, data sets etc. FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible?

19 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Supplier environmental performance LEADERSH POSITION LIST SUPPORTING EVIDENCE e.g. titles of procedures, action plans, data sets etc. FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible? 12 Provide the results of vendor audits to ensure compliance with environmental selection criteria, and follow-up actions covering at least 90% of vendors. 13 Provide evidence of a documented factory inspection programme. 14 Provide evidence of systematic product labelling audits, to ensure that environmental claims made about vendors are valid. 15 Provide evidence to show that your OpCo is actively engaged in the environmental debate, for example: membership of relevant organisations copies of position papers/articles written by your OpCo copies of conference speeches given by OpCo staff third party recognition for efforts to manage environmental issues in supply chains e.g. awards ADDITIONAL INFORMATION TE 1: The Kingfisher Vendor Assessment Process is a quality and environmental assessment process which is being developed by the QA Global Workstream Management Vendor Development team, as an outcome of the QA Global Workshop held in the UK on February The objective of the project is to establish a global QA and SR approach to the assessment and development of vendors and manufacturing facilities.

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21 Steps to Responsible Growth 2 Product environmental and social impact

22 Product environmental and social impact Steps to Responsible Growth Our aim: To give our customers confidence that the environmental and social issues associated with the products they buy from us are properly managed. Each home improvement product has its own life-story, encompassing the raw materials it was made from, how it was manufactured and transported, the people and communities who are involved, how it is used and how it is likely to be disposed of at the end of its useful life. Each step, in each product s life-story may be associated with some particular environmental or social concern. As a global retailer we must ensure that the production, use and end-of-life treatment of the products we sell result in as little environmental damage as possible and that there are social benefits to everyone in the supply chain. It is Kingfisher s policy to: actively research the environmental and social issues associated with the production, use and disposal of all of the different types of product we sell identify types of products that have particularly critical environmental or social problems associated with them work with suppliers to find solutions to the environmental and social issues associated with critical product types and set standards for these Business drivers Drive like-for-like growth Brand perception

23 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Product environmental and social impact MINIMUM ACTION 1 Provide an action plan detailing how your OpCo will establish an on-going programme to research and identify the environmental and social issues associated with the different types of product sold, or confirm that your OpCo will utilise the * Register of Environmental and Social Impacts when available. * The Register of Environmental and Social Impacts will be updated during 2005 it is expected to be ready end of 2005 and will be made available to all OpCos. POLICY TARGET 2. Provide evidence that there is a systematic process in place to regularly review the key environmental and social impacts in product lifecycles, or confirm that your OpCo uses the * Register of Environmental and Social Impacts. * See point 1 note 3 Provide documentation identifying key environmental and social impacts in products and evidence that your OpCo is working with vendors to reduce those impacts. 4 Provide documented buying standards for the most critical product types identified under point 3 (e.g. timber, chemicals etc). 5 Provide evidence of training or communication for commercial teams on the environmental and social issues affecting the most critical product types. LIST SUPPORTING EVIDENCE e.g. titles of procedures, action plans, data sets etc. FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible?

24 21 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Product environmental and social impact LEADERSH POSITION 6 Provide evidence that all major product types have been researched to investigate their potential environmental and social impacts. 7 Provide evidence that all new product types are subject to an environmental and social assessment process. 8 Provide evidence that well-defined environmentally responsible design principles are applied to selected product types. 9 Show that your OpCo is actively engaged in open communication with interested parties on issues associated with critical product types, for example: membership of relevant organisations copies of position papers/articles written by your OpCo copies of conference speeches given by OpCo staff third party recognition for efforts to address the environmental and social issues associated with critical products ADDITIONAL INFORMATION LIST SUPPORTING EVIDENCE e.g. titles of procedures, action plans, data sets etc. FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible?

25 Steps to Responsible Growth 3 Timber

26 Timber Steps to Responsible Growth Our aim: To ensure that our wood and paper products come either from proven, well-managed forests or recycled material. Kingfisher stores sell a lot of timber and products made from or containing wood. We are committed to ensuring that the timber extraction associated with the products we sell does not harm forest conservation or the lives of people who live and work in the forests. We are committed to sourcing timber only from proven, well-managed forests and will use our buying power to promote good forest management. It is Kingfisher s policy to: work with our suppliers of timber and timber-containing products to establish the origin of the wood used identify any timber products that originate from illegal or controversial sources and have action plans to manage those risks ensure that all the timber, timber-containing and paper products we sell come from forests independently certified as well-managed, according to the Kingfisher criteria, or from recycled materials. Currently the Forest Stewardship Council (FSC) is the umbrella scheme that is closest to meeting fully the Kingfisher criteria and FSC is therefore the preferred certification scheme.where certified hardwood is not currently available, we will source timber in partnership with organisations committed to improving forest management as outlined in Kingfisher's 'Steps to Responsible Growth' Business drivers Supply chain development Brand perception

27 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Timber MINIMUM ACTION 1 Provide an action plan specifying how your OpCo will obtain a list, or other record, of all products containing wood and the vendor of each product. 2 Provide an action plan specifying how your OpCo will work with your vendors of products containing wood, to identify the: country of origin tree species certification scheme (where applicable) * FMU chain of custody certificates for each stage of the supply chain (where applicable) of the wood used in each product volume of timber and number of SKUs (line level data) by each of the three Kingfisher Tiers (please see Additional information TES 1 and 2) Where there is concern that a source may be illegal or controversial (see points 3 and 4 below), details of the forest of origin should be obtained as a priority. (If you have already produced a list, see points 6 and 13). * FMU = Forest Management Unit 3 Provide an action plan to identify any products which may be sourced from forests where the extraction of timber is illegal, and therefore unacceptable to Kingfisher. (If you have already produced a list, see points 6 and 13). 4 Provide an action plan to identify any products which are associated with controversial forest sources. These may be forests where there is significant debate and stakeholder concern regarding social and environmental issues (please see Additional information TE 1 for details). (If you have already produced a list, see points 6 and 13). LIST SUPPORTING EVIDENCE e.g. titles of procedures, action plans, data sets etc. FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible?

28 25 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Timber POLICY TARGET 5 Maintain a current list, or other record, of all products containing wood and the vendor of each product. 6 Provide a list, or other record, of products containing wood, identifying the: country of origin tree species certification scheme (where applicable) FMU chain of custody certificates for each stage of the supply chain (where applicable) of the wood used in each product volume of timber and number of SKUs (line level data) by each of the three Kingfisher Tiers (please see Additional information TES 1 and 2) Where there is concern that a source may be illegal or controversial details of the forest of origin should be obtained as a priority. At least 75% of all SKUs containing wood must be covered ensuring that tropical timber sources are included in this data. Action plans to obtain data on remaining 25% SKUs should be in place. 7 Provide a list, or other record, of any products containing wood which may be sourced from forests where the extraction of timber is illegal, and therefore unacceptable to Kingfisher, and have exit plans based on agreed timescales. The list should be based on data covering at least 75% of all SKUs containing wood ensuring that tropical timber sources are included in this data. Action plans to obtain data on remaining 25% SKUs should be in place. 8 Provide a list, or other record, of any products containing wood which are associated with controversial forest sources (with reasons). These may be forests where there is significant debate and stakeholder concern regarding social and environmental issues (please see Additional information TE 3 for details). The list should be based on data covering at least 75% of all SKUs containing wood ensuring that tropical timber sources are included in this data. Action plans to obtain data on remaining 25% SKUs should be in place. 9 Provide a documented action plan outlining an exit plan for identified controversial forest sources (i.e. those identified in point 8). LIST SUPPORTING EVIDENCE e.g. titles of procedures, action plans, data sets etc. FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible?

29 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Timber POLICY TARGET 10 Demonstrate that your OpCo has action plans in place to obtain at least 50% of SKUs containing wood from Tier One sources in an agreed timescale, and that at least 75% of identified wood containing SKUs are sourced from Kingfisher approved certification schemes, (see TE 1 and 3). The OpCo should demonstrate an increase in the percentage of SKUs in higher Tiers over time, and that no SKU moves down a Tier. 11 Demonstrate that your OpCo has worked with vendors to ensure that relevant products carry FSC or other Kingfisher approved certification scheme (please see Additional information TE 1 for details), approved scheme labels. 12 Demonstrate that your OpCo has an audit process for all new vendors of products containing wood, to ensure visibility of source, e.g. details of the audit process and records of audit findings. 13 Provide evidence of training or communication with commercial teams on the environmental and social issues affecting supply chains for products containing wood. LEADERSH POSITION 14 Provide a list, or other record, of products containing wood, identifying the: country of origin tree species certification scheme (where applicable) FMU chain of custody certificates for each stage of the supply chain (where applicable) of the wood used in each product volume of timber and number of SKUs (line level data) by each of the three Kingfisher Tiers (please see Additional information TES 1 and 2) At least 90% of all SKUs containing wood must be covered ensuring that tropical timber sources are included in this data. Action plans to obtain data on remaining 10% SKUs should be in place. LIST SUPPORTING EVIDENCE e.g. titles of procedures, action plans, data sets etc. FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible?

30 27 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Timber LEADERSH POSITION 15 Provide a list or other record, of any products containing wood which are associated with controversial forest sources (with reasons). These may be forest where there is significant debate and stakeholder concern regarding social and environmental issues. At least 90% of all SKUs containing wood must be covered ensuring that tropical timber sources are included in this data. Action plans to obtain data on remaining 10% SKUs should be in place. 16 Demonstrate that identified controversial forest sources have been exited or there are exit plans in place based on an agreed timescale. 17 Demonstrate that your OpCo has obtained at least 50% of SKUs containing wood from Tier One sources and there are action plans in place to achieve Tier One certification for the remaining 50% in agreed timescales. 18 Demonstrate that your OpCo has worked with vendors to ensure that all relevant products carry FSC or other Kingfisher approved certification scheme, approved scheme labels (please see Additional information TE 1 for details). 19 Provide evidence to show that your OpCo is actively engaged in the debate about sourcing products containing wood, for example: membership of relevant organisations copies of position papers/articles written by your OpCo copies of conference speeches given by OpCo staff third party recognition for efforts to manage environmental and social issues in timber supply chains LIST SUPPORTING DOCUMENTS AND OTHER INFORMATION (e.g. action plans, procedures, data sets) FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible?

31 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Timber ADDITIONAL INFORMATION TE 1: Certification schemes approved by Kingfisher must meet the following criteria: require sustainable forest management standards have the participation of representative environmental and social pressure groups have transparency in grievance procedures require independent and full chain of custody set minimum standards required for auditing require regular and relevant auditing at forest level be capable of being applied globally or endorsed by a global umbrella scheme As a result of applying the above criteria for certification schemes, Kingfisher recognises three tiers of certification, in the following order of preference: Tier One: Sustainable forestry schemes Currently, FSC is the umbrella scheme that is the closest to meeting fully Kingfisher s criteria and FSC is therefore the preferred certification scheme Kingfisher operating companies will work towards a scenario where only Tier One products are stocked Kingfisher will recognise as Tier One schemes that are independently recognised as equivalent to FSC; and therefore meet the Kingfisher criteria. Tier Two: Schemes in progress towards meeting Tier One requirements Schemes that have made a public commitment that endorsed forests will achieve Tier One standards within a maximum of three years. Alternatively Tier Two includes sources that are part of a verification scheme to demonstrate formal progress towards FSC certification, including members of the Tropical Forest Trust scheme. TE 2: Key Performance Indicators (KPIs) Information outlining the required Kingfisher timber KPIs will be issued shortly. TE 3: Timber Buying Standards Tier Three: Other third party certification schemes Forest certification schemes that meet some but not all of the Kingfisher criteria, and introduce some level of control in the supply chain. Products certified under these schemes are seen as being able to provide a better level of reassurance than no certification. Kingfisher s goal is to ensure that all timber falls within the three tiers of certification and operating companies are required to source timber accordingly, and progressively increase the proportion of timber in Tier One. This will be achieved through action plans implemented to agreed timescales

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33 Steps to Responsible Growth 4 Chemicals

34 Chemicals Steps to Responsible Growth Our aim: To ensure that the products we sell do not adversely affect the health of our customers, or staff, or that of their environment. Global society relies increasingly on an extensive range of chemicals both natural and manmade to produce the products used in every-day life. But as our understanding of human health and environmental science improves, new ways in which these chemicals may affect the natural world are being discovered.there is increasing concern about some chemicals potential to accumulate and persist in the environment with possible adverse health effects on people, animals and plants. As a result, regulatory controls on the use of chemicals are being strengthened and more restrictions on the use of some chemicals in consumer products are anticipated.the use of animal testing to assess the risks of chemicals is coming under increasing scrutiny. We have an obligation to our stakeholders to be aware of the concerns associated with the use of chemicals in products, and to take appropriate action to reduce exposure. Our aim is to understand and manage the chemical issues associated with our products by substituting or eliminating chemicals of concern wherever we can. It is Kingfisher s policy to: identify chemicals used in our products that are currently, or have the potential to be, the focus of concern or controversy with customers, media or other interested groups work with suppliers to substitute chemical ingredients where there are recognised environmental or health and safety issues, with lower risk alternatives discontinue products, in those circumstances where our research indicates that the chemicals they contain pose significant risks to customers, staff and the environment Business drivers Supply chain development Remove constraints to growth

35 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Chemicals MINIMUM ACTION 1 Maintain a record of all legislation relating to chemical use in products that affects the business. This should include a summary of the requirements and implications of the legislation for your OpCo. 2 Provide an action plan showing how your OpCo will identify products containing those chemicals listed in Kingfisher s Chemical Action list. 3 Provide an action plan showing how your OpCo will work with its vendors to discuss the issues associated with the use of chemicals in products listed in the Kingfisher s Chemical Action list, and investigate opportunities for removal or substitution. (Or demonstrate that a programme to engage with vendors over the use of high risk chemicals in products exists see point 5). POLICY TARGET 4 Demonstrate that your OpCo is systematically addressing the use of chemicals in products as specified by the Kingfisher s Chemical Action list (please see Additional information TE 1 for details). 5 Demonstrate that your OpCo has an on-going programme to engage with vendors over the use of chemicals in Kingfisher s Chemical Action list. LIST SUPPORTING EVIDENCE e.g. titles of procedures, action plans, data sets etc. FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible?

36 33 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Chemicals POLICY TARGET LIST SUPPORTING EVIDENCE e.g. titles of procedures, action plans, data sets etc. FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible? 6 Provide evidence of training or communication for commercial teams on the environmental and health and safety issues surrounding chemicals in products. LEADERSH POSITION 7 Provide evidence of working with other organisations to develop learning about chemicals and products. 8 Examples of partnership programmes with vendors to develop alternative products that do not contain specified chemicals. 9 Show that your OpCo is actively engaged in the debate on the use of chemicals in products and is recognised to be an opinion former, for example: membership of relevant organisations copies of position papers/articles written by your OpCo copies of conference speeches given by OpCo staff third party recognition for efforts to address the environmental and social issues associated with critical products ADDITIONAL INFORMATION TE 1: Kingfisher s Chemical Action list identifies a group of chemical substances which, on the basis of our research, have been targeted for removal from products sold by Kingfisher. The List identifies the typical product groups which are associated with each substance.

37 Steps to Responsible Growth 5 Climate Change

38 Climate change Steps to Responsible Growth Our aim: To reduce our contribution to climate change by reducing the energy we use to run our premises and transport fleet, and by promoting and selling products that are energy efficient both in their manufacture and use. Climate change, triggered by greenhouse gases from burning fossil fuels, is arguably the greatest threat to the world s environment. Kingfisher contributes to greenhouse gas emissions through the energy consumption of its stores for heating and lighting and through transport-related exhaust emissions. We also contribute indirectly to climate change by selling appliances and other products that need energy to manufacture and to operate. We are committed to reducing our impact through improving the energy efficiency of our stores and vehicles and by encouraging our customers to undertake energy conservation measures in their own homes. It is Kingfisher s policy to: monitor and review the energy consumption of all of our properties improve the energy efficiency of our properties, in relation to the size of our business work with suppliers to develop more energy efficient products and promote these to our customers to enable them to improve the energy efficiency of their homes Business drivers Manage cost base and improve business efficiency Drive like-for-like growth Increase Kingfisher reach

39 Steps to Responsible Growth Compliance with Kingfisher s Social Responsibility Policy August Climate change MINIMUM ACTION 1 Provide annual consumption data for all sources of energy use in all buildings (electricity, gas, fuel oil, other) including stores, warehouses and offices. 2 Provide data on CO2 emissions associated with annual buildings energy consumption (calculated from the energy consumption information provided in point 1 above using appropriate conversion factors (please see Additional information TE 1 for details). 3 Provide an action plan to identify opportunities for energy savings in company buildings (or provide energy saving targets to which you have committed, see point 6). 4 Provide evidence that there is a process in place to ensure that all relevant domestic appliances carry accurate energy labels, so that customers have good information about the energy consumption of each product, where required by law. 5 Provide evidence that your range includes some energy efficient products. POLICY TARGET 6 Provide evidence of energy saving targets for stores and other properties, where possible, in relation to the size of your business, or provide evidence that all possible energy efficiency measures have been taken. LIST SUPPORTING EVIDENCE e.g. titles of procedures, action plans, data sets etc. FOR VERIFICATION PURPOSES: Where is the information held? Who is responsible?