Our Everyday Heroes Sustainability Report 2020 CONTENTS

Introduction from Natalie Davis...... Page 2 Commentary from Kiri Hannifin...... Page 3 Countdown’s 2020 Commitments...... Page 4

2020 Sustainability Report snapshot People...... Page 12 – Working towards gender equity – Creating an inclusive culture – Growing careers and supporting team – Putting safety first Planet...... Page 30 – Sending less to landfill – Giving food an important second life – Action on plastic and packaging – Sourcing sustainably – Responding to climate change Prosperity...... Page44 – Supporting our suppliers – Responsible Sourcing – Supporting our communities – Making Kiwis’ lives a little bit better everyday

ABOUT THIS REPORT: Corporate Responsibility Strategy 2020. Group Sustainability Report has been The purpose of this report is to set subject to limited assurance from an This is Countdown’s sixth Sustainability out our achievements and challenges independent third party; other data Report. Data is for the year ended for our New Zealand customers and and statements have been internally 30 June 2020, unless otherwise stakeholders. Assurance has not been reviewed. For the full 2020 Woolworths specified. Countdown has had a strong obtained for this report, however Sustainability Report please visit: sustainability plan in place since 2007, data included in the Woolworths www.woolworthsgroup.com.au and in 2017 we launched our new PERFORMANCE 2 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 3

Kia ora koutou. Our When we set our commitments in 2017, As we head into FY21, our work won’t stop, Tēnā koutou, tēnā However, we’re under no illusions about In recent months, the needs of our our intention was clear. We wanted to use but our focuses are shifting. Our world has who helps us make all of this possible. communities have changed and we purpose is to make them as a way to drive ourselves to improve changed significantly as a result of events in koutou, tēnā koutou Our team of 20,000 Kiwis. are already seeing higher levels of and to deliver better outcomes for our the second half of FY20. The impacts of the unemployment and food poverty. Kiwis’ lives a little better katoa. If the last few Earlier this year, we called them our team, our suppliers and customers, and the COVID-19 pandemic on our economy and Of course, our efforts to protect our heroes. And heroes they are. They are every day, and as part planet. These commitments have played an our communities will be felt for months and months of FY20 have environment won’t change, but our deeply passionate, unfailingly hard- invaluable role in driving our successes: our possibly years ahead - we need to respond focus in the immediate future needs to of this, we want to be taught us anything, working, and relentlessly positive in times emissions have reduced by 34per cent from to that. be on building sustainable communities. when it would seem almost impossible. New Zealand’s most our FY17 figures; we’ve reduced our food it is that our planet is Communities where all New Zealanders Soon, we will launch our new 2025 It is our responsibility to protect them waste, and we’ve continued to support our have the chance to thrive. sustainable supermarket. Sustainability Commitments. They are unpredictable and and keep them safe, and it has been a communities and Kiwi families through a aspirational and powerful, and it will take personal mission of mine to make sure We will continue to engage with our wide range of programmes and partnerships. ever-changing. With 183 stores throughout New Zealand the work of our entire team of 20,000 that has happened. Government to drive for better outcomes and more than 20,000 team members, we Our commitments have also forced us to Kiwis to meet them, working closely with Sustainability is more than just looking after for our communities, we will continue to know that these things go hand in hand. We Responding to COVID-19 has been a acknowledge that there are areas where our suppliers, community partners and of our environment. It’s about our people too work with our food rescue partners to feed can’t sit on the sidelines and wait for changes challenge for our business, but I am change is harder to achieve. While the course our customers. However, as our work - how we live, how we look after each other, those in need and we will continue to invest to happen - we have to make them ourselves. immensely proud of everything we have number of women on our executive team over the last few years has shown us, with and how we work together to help our in, and protect, our team. done and will continue to do to keep our sits at 50 per cent, the number of women in a clear plan and unrelenting focus on doing communities thrive for the benefit of future This report details the progress we have team and our customers safe. Whether that Mauri ora leadership positions outside of that remains better by our people, the planet and our generations. This report demonstrates our made over the last year and since announcing was the safety measures we put in place below 40 per cent. We still have many communities, we can rise to the challenge. clear and ongoing commitment to both. our 2020 Corporate Social Responsibility in our stores, or making it easier for our Commitments back in 2017. It also details packaging challenges to overcome, and we When we first launched our 2020 vulnerable team to stay home when they the challenges we continue to face in an want to do even more to reduce the amount Commitments in 2017, we announced our needed to - we rose to the challenge. increasingly environmentally-conscious and of food going to waste. Kiri Hannifin plans to phase out single-use plastic bags General Manager Corporate Affairs, Safety COVID-19 impacted world. Natalie Davis - the start of a continuing conversation and Sustainability Managing Director around plastic and an issue that we remain deeply committed to tackling. We also laid out our emissions targets to be 10 per cent below our 2015 levels by the end of FY20 and we’ve not only met this target, we have far exceeded it. 4 COUNTDOWN SUSTAINABILITY REPORT 2020

PEOPLE: Encouraging PLANET: For a healthy PROSPERITY: Founded diversity Aotearoa New Zealand on trusted relationships Countdown’s Ensuring gender equity Moving to a Working with our

At least 40 per cent of executive and circular economy business partners senior manager positions to be held by women. Towards zero food waste We will engage fairly and equitably with our going to landfill. suppliers, making fact-based decisions and 1 seeking regular feedback directly and through No salary wage gap between male and female independent supplier surveys. employees of equivalent positions on a per- 9 15 hour rate at all levels of the company, with a Improve the recyclability of our own 2020 step-change improvement in closing any gaps brand packaging and contribute to the We will focus on a best practice by the end of FY17. circular economy. compliance system according to the Commitments 2 Global Compliance Programme. We will 10 16 collaborate with peak organisations to improve workers’ lives. Embracing our diversity In 2017 we launched our Corporate Source environmentally 100 per cent of those responsible for hiring sustainable commodities Responsibility Strategy 2020, which new team members to have completed Giving back to the unconscious bias training. Source key raw materials and commodities communities in which brings focus, resources and energy to to an independent standard by 2020. 3 We will raise awareness of sustainably we operate Continue the focus on driving cultural Countdown’s sustainability agenda. sourced products. diversity, with a commitment that by 2020 We will invest the equivalent of one per We have assigned targets under the the Countdown team will truly reflect the 11 cent of a three year rolling average of total communities we serve. Achieve net zero supply chain deforestation Countdown Earnings Before Interest and pillars of People, Planet and Prosperity. for ‘high impact’ commodities in our own 4 Tax (EBIT) into community partnerships brand products, such as palm oil, timber, These provide a framework for 17 and programmes. pulp and paper, and packaging. our engagement with customers, A focus on growing our team 12 We will publicly report social impact communities, suppliers and our team. We will develop the careers of the Countdown to quantify the positive change we are team with a focus on youth. Action on emissions creating with a focus on health, economic They also set out our commitment to development and emergency relief. minimise the environmental impact of 5 Reduce Countdown’s carbon emissions to 18 our operations. We will continue to develop 10 per cent below 2015 levels. employment policies appropriate to our New Zealand team to provide a supportive 13 Creating shared value work environment. Innovate with natural refrigerants and with our customers 6 reduce refrigerant leakage in our stores by 15 per cent of CO2 equivalent below We will achieve leading customer 2015 levels. Creating opportunities for all satisfaction scores. 14 STATUS We are committed to maintaining a workplace that safeguards the health and wellbeing of 19 our people, customers and visitors. We will support and inform our Achieved...... customers to help them to make 7 healthier choices. Achieve Rainbow Tick certification in New Materially progressed ...... Zealand, demonstrating our commitment to 20 LGBTI inclusion. Progressed...... 8 6 COUNTDOWN SUSTAINABILITY REPORT 2020

The United Nations sustainable development goals...

End poverty in all its End hunger, achieve Ensure healthy lives Ensure inclusive and Ensure access to Promote inclusive Reduce inequality Ensure sustainable Take urgent action to Sustainably Revitalize the forms everywhere food security and and promote well-being quality education affordable, reliable, and sustainable within and among consumption and combat climate change manage forests, global partnership improved nutrition and for all at all ages for all and promote sustainable and economic growth, countries production patterns and its impacts combat desertification, for sustainable promote sustainable lifelong learning modern energy for all employment and halt and reverse land development agriculture decent work for all degradation, halt biodiversity loss

16We will focus on a best 9Towards zero food waste 20We will support and 1At least 40 per cent of 13Reduce Countdown’s 3100 per cent of those 4Continue the focus on 5We will develop the 9Towards zero food waste 13Reduce Countdown’s 12Achieve net zero supply 17We will invest the equivalent practice compliance system going to landfill. inform our customers executive and senior carbon emissions to responsible for hiring new driving cultural diversity, careers of the going to landfill. carbon emissions to chain deforestation for of one per cent of a three according to the Global to help them to make manager positions to be 10 per cent below team members to have with a commitment that Countdown team with 10 per cent below ‘high impact’ commodities year rolling average of total Compliance Programme. healthier choices. held by women. 2015 levels. completed unconscious by 2020 the Countdown a focus on youth. 2015 levels. in our own brand Countdown Earnings Before We will collaborate with bias training. team will truly reflect the products, such as palm oil, Interest and Tax (EBIT) into peak organisations to communities we serve. timber, pulp and paper, community partnerships improve workers lives. and packaging. and programmes.

7We are committed to 8Achieve Rainbow Tick 2No salary wage gap between 14Innovate with natural 6We will continue to 10 Improve the recyclability 14Innovate with natural 18We will publicly report male and female employees refrigerants and reduce maintaining a workplace certification in New develop employment of our own brand refrigerants and reduce social impact to quantify of equivalent positions on a refrigerant leakage in that safeguards the Zealand, demonstrating policies appropriate to our packaging and contribute refrigerant leakage in our the positive change we per-hour rate at all levels of the our stores by 15 per cent health and wellbeing of our commitment to New Zealand team to the circular economy. stores by 15 per cent of are creating with a focus company, with a step-change of CO2 equivalent below our people, customers LGBTI inclusion. to provide a supportive CO2 equivalent below on health, economic 2015 levels. improvement in closing any and visitors. work environment. 2015 levels. development and ...and our 2020 gaps by the end of FY17. emergency relief. commitments to 15We will achieve a top 16We will focus on a best 11Source key raw materials quartile favourability practice compliance system and commodities ranking with our according to the Global sustainably to an suppliers as measured Compliance Programme. independent standard people, planet by independent We will collaborate with by 2020. We will raise supplier surveys. peak organisations to awareness of sustainably and prosperity. improve workers lives. sourced products.

Countdown’s corporate responsibility 19 strategy is aligned to the United Nations 2030 We will achieve leading customer sustainable development goals. These goals call satisfaction scores. for global action among governments, business and communities to end poverty and create a life of dignity and opportunity for all. PERFORMANCE 8 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 9

Responding to a global pandemic - a snapshot

The latter half of FY20 was dominated by our response to the COVID-19 pandemic as we worked together to keep New Zealanders safe and fed. Our stores and distribution centres experienced more demand and pressure than ever before and we faced our biggest health and safety challenge yet - keeping 20,000 team and 3 million customers safe and well each week as Aotearoa responded to this health crisis.

13.49M 110,000 Customers served safely during Priority assistance customers NZ’s four week lockdown 72,000 2,419 Calls to Customer Care New team members 300 639,000 New online team members COVID-19 hub page views “My team, they just 118,000 kept showing up 67,000 COVID-19 FAQ views Customer emails answers every day, without fail... They are M $1M 7 Donated to food welfare my heroes.” Service emails sent to and food rescue charities our customer base Alice Davidson, Store Manager

As news of New Zealand’s imminent The small Waikato town of Matamata minds at ease, and to make sure we queued outside and explaining to them “We got used to chats through glass. That “There were days where it was tough to COVID-19 lockdown spread, for Alice was at the centre of a COVID-19 outbreak were doing everything possible to stay why and how we were operating to keep was one of the hardest parts of it all. Not stay positive and face it – the situation was Davidson, who was at the time relieving cluster. Local customers were scared and protected,” Alice says. everyone safe, and how they needed to play being able to hug them was so tough – overwhelming and all consuming. But my the Te Rapa Store Manager role in nearby the store team were worried too. their part. And it worked.” especially at a time when a hug would have team. They just kept showing up every day, Hamilton, it meant two things. First that “Immediately, we set about laying out the meant so much.” without fail. Their trust in each other and she needed to return to Countdown “When I returned to the Matamata store, store so that people could make their way Alice also made the call early on that she’d me meant that I felt I had to continue to do Matamata to support her team and our customers were anxious and afraid. around while staying safe and far enough keep her two kids safe by not being in their The leadership, courage and sacrifice Alice my best for them. They are my heroes.” second, that she wouldn’t be able to The brave Matamata team showed up to away from other shoppers and the team – bubble and keeping in-person contact to demonstrated throughout the lockdown hug her kids for at least as long as the work with proactive attitudes and trusted not an easy task in a very small store! Then a minimum with them and maintaining her has earned her the respect of thousands of Alice is just one of the many great examples lockdown lasted. me to lead them through something that we worked to allay fears and diffuse any distance when she could see them. our team across the Countdown business, of the everyday heroes working right across we never saw coming. I knew I needed anger before people even got in the door, but she is quick to say she didn’t do it alone. our business each and everyday. to do everything I could to put people’s dancing and playing music while people PERFORMANCE 10 COUNTDOWN SUSTAINABILITY REPORT 2019 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 11

Our Journey PEOPLE: Encouraging PLANET: For a healthy PROSPERITY: Founded diversity Aotearoa New Zealand on trusted relationships

FY17 Introduced Family Violence Policy Products with Began own brand product microbeads removed reformulation removing salts, Introduced Transgender sugars and other fats Transitioning Policy Joined Soft Plastics Recycling Scheme Achieved: 1per cent of EBIT Launched the SEEDs programme donated to community causes

Achieved White Ribbon Signed NZ Introduced the Responsible FY18 Accreditation Packaging Declaration Sourcing Policy Launched our Unconscious Bias Removed single-use cups Celebrated two years of Training for team from Cafeteria Free Fruit For Kids

Achieved: Rainbow Tick Phased out single-use plastic Permanently reduced price FY19 accreditation carrier bags and plastic straws of period products to address period poverty Launched New Zealand’s first Achieved: reduced emissions to Be Accessible supermarket 10per cent below 2015 levels Launched Growing for Good Grants

Launched the Proud and Carried out Unwrapped test Established the Food For Good FY20 Diversity and Inclusion groups removing all plastic in produce Foundation, donated $1m to food rescue partners Rolled out Quiet Hour nationally Began developing Emissions Reduction Plan Stopped selling fireworks Rolled out BYO container initiative nationwide PERFORMANCE 12 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 13

People - Encouraging diversity and achieving gender equity

Employing more than 20,000 Kiwis, our team is a reflection of Aotearoa. We believe that our diversity - whether that’s age, gender, religion, race or sexual orientation - should be nurtured, grown and celebrated. As one of the country’s biggest employers, we can play an important role in addressing gender inequity.

Team Re-accredited with members the Rainbow Tick for a second time 20,000

Reduction in Total Launched Proud and Recordable Injuries Diversity & Inclusion Groups 13.7% PERFORMANCE 14 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 15

Working towards “I want to earn the right to be a leader worth following. gender equity I want to show our team COMMITMENT 1 that if you’re too afraid to Achieving gender equity across our team is not only At least 40 per cent of executive fail, you won’t truly have the right thing to do, it’s also hugely beneficial to our and senior manager positions to be held by women. given anything a good go.” business and the decisions we make each day. STATUS: Anita Smith, Head of Supply Chain Operations MATERIALLY PROGRESSED Throughout New Zealand, the inequities Over the last year, the number of executive between men and women when it comes and senior positions held by women has to pay, and opportunities for career increased slightly from 34 per cent to COMMITMENT 2 progression are well-established, with the 37 per cent. While we are disappointed No salary wage gap between male and female employees impacts being most keenly felt by Māori to have not met this commitment, this of equivalent positions on a and Pacific women. number has increased by 6 per cent overall per-hour rate at all levels of the company, with a step-change since FY17. At the executive level of our business, improvement in closing any gaps by the end of FY17. we are proud to have 50 per cent female Our work to ensure we are supporting representation, but we know that to make a all women to progress their careers at STATUS: truly transformational change, we need to Countdown is continuing. Closing our ACHIEVED have gender equity at all levels right across gender pay gap at all levels and our business. encouraging greater ethnic diversity at senior levels will continue in our 2025 Sustainability Commitments.

Supporting female Closing the gap Achieving pay parity not only helps to Driving Distribution Since then, the ANDC has seen a reduction When asked about her achievements to leaders ensure our team is paid fairly, it also helps Centre success in absenteeism, improvements in Voice date and what inspires her to be a great We’re committed to ensuring our team to motivate, retain and attract great of Team survey results, and an uplift leader, her responses are firmly centred people. We remain committed to ensuring in engagement with health, safety and around people. Women make up more than half of the members are paid fairly for their work After working for the NZ Post Group from we maintain our momentum in this space wellbeing initiatives. Countdown team and work in a wide variety and believe that team members who have the age of 16, Anita Smith was looking for a “These awesome roles are customer and and continue to review our wages on a of roles across the business. To attract the same skills and role shouldn’t be paid new challenge when she took on the role of “When I took on the role, I knew the DC team centric, and require leading people regular basis to ensure our team are being and retain great female talent at all levels, differently because of their gender. National Third Party Logistics Manager for needed a bit of TTLC - Tender, Tough Love with purpose, fairness and passion. I paid fairly. we need clear pathways that will support Our Pay Parity Review methodology and Countdown, looking after six outsourced and Care. The work the leadership team has particularly enjoy coaching future leaders women into leadership roles and help to ongoing review processes compare salaries temperature controlled distribution put in to hold the mirror up to issues, build helping them to understand accountability, deliver long and fulfilling careers of like-for-like roles of our team members centres. But her willingness to rise to a a plan and then execute has seen ANDC go authenticity and driving for success with the with Countdown. across our business, at all levels. This challenge really came six months later from strength to strength and it’s through different facets of a leadership role and the when she became Countdown’s Auckland action we lead,” says Anita. responsibilities that come with it. In mid FY20 the wider Woolworths Group continuing analytical work helps identify National Distribution Centre (ANDC) established a Gender Equity Group which gender pay gaps between our team by “We have worked extremely well as a team “I want to help grow our individual Supply Chain Manager, leading a team of will be a driving force in ensuring our grouping our positions and career streams, to ensure ANDC is made even safer for team through personal and professional over 250 and overseeing the distribution of business is carrying out key initiatives that while accounting for team member our people. We’ve focused on promoting development and open doors for non-perishable food and groceries to 183 will have the most effective outcomes for movements that may result in fluctuations. prevention-first behaviours - showing those who are willing to pursue greater Countdown Stores and 70 FreshChoice and gender equity. Countdown’s Managing Our target is to remain below a statistically care and identifying hazards before they opportunities. I’m very proud of the ANDC SuperValue supermarkets around Director Natalie Davis is the executive insignificant 1 per cent gap. happen to prevent injuries or damage. team but we’re just getting started!” the country. Through good engagement and active sponsor of this group. Anita has recently been promoted to Head communication, our team have not only of Supply Chain Operations, providing been taking responsibility for their own strategic leadership across our four safety, but also the safety of others.” Ambient Distribution Centres.

PERFORMANCE 16 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 17

affecting around one in 100 New Zealanders, according to the Ministry of Health, our Creating an stores have been really happy to make a few small changes for an hour each week knowing that it can make a big difference for inclusive culture people in their local communities. With more than 20,000 Kiwis working in our COMMITMENT 3 “The simple act of turning business, our team reflects the vast range of 100 per cent of those responsible for hiring new team members to off music and lights for ethnicities, abilities, cultures and backgrounds that have completed unconscious bias training. an hour a week made make up New Zealand’s population. STATUS: those Kiwis’ lives a little

The diversity of both Aotearoa and support customers and their families who MATERIALLY PROGRESSED better every day because our business can be a huge asset, if it’s may be affected by sensory issues; hold it demonstrates to those supported with a culture of inclusivity te reo classes; and celebrate and engage COMMITMENT 4 families that the Countdown where the thoughts, opinions and ideas more actively with the cultures, languages Continue the focus on driving in their community cares. of every person are respected and and beliefs of the people that make up cultural diversity, with a valued. Creating an inclusive culture at our team. commitment that by 2020 the As a parent to a young Countdown team will truly reflect Countdown means people can bring their While we did not meet our target of the communities we serve. man that faces significant whole selves to work and ensures we’re 100per cent of those responsible for STATUS: challenges in his day to day creating better experiences for our team, hiring team members having completed our customers and our communities MATERIALLY PROGRESSED living, to have a moment and unconscious bias training, we were very every day. time to be just like everybody pleased to reach 87per cent. Our diversity and inclusion commitments COMMITMENT 8 else, is without price.” We know there is still plenty of work to be have seen us achieve and maintain our Achieve Rainbow Tick certification done, and our business is determined to Theo Fisher, Online Supervisor, Rainbow Tick Accreditation and further in New Zealand, demonstrating our maintain the momentum we have gained commitment to LGBTI inclusion. Countdown Whanganui. support our rainbow communities; roll with the support of our Proud and our out Quiet Hours across our stores to STATUS: Diversity and Inclusion groups. ACHIEVED Celebrating te reo

Our team is very proud to celebrate the use of te reo Māori across our business. Our use of bilingual signs in stores is one of the Creating an inclusive also about understanding each other - National Quiet Hour ways we bring te reo to life every day. We who we are, how we identify ourselves, also incorporate te reo into our internal and environment what makes each of us unique, and what roll out external communications wherever we can. we can all do to ensure everyone feels If we are to truly embrace our diversity, When our Marton store launched To mark Te Wiki o Te Reo Māori in early safe and welcome at work. we need to be an inclusive workplace. Countdown’s very first Quiet Hour in FY20, we wanted to engage our team and This will help us to make better business In mid-FY20, our Diversity and Inclusion April 2018, a number of other stores customers with the language by encouraging decisions through fresh thinking, ideas Group was established to help guide began to follow their lead, launching their our team to introduce themselves in te reo and opportunities. It will also make our and support Countdown’s work. The own low sensory hours to help create a and giving our customers some key phrases stores a great place for all our customers group is chaired by four representatives more welcoming shopping experience they could use in our stores. We also made to shop. from across the business and includes for customers with Autism Spectrum changes to our online shopping site and members from our stores, support Disorder (ASD) and other sensory needs. customer emails, introducing more Māori “If we’re committed to being part of our communities We’ve continued to celebrate a variety offices and distribution centres. One of words and greetings, and launched our very and part of New Zealand’s culture and heritage; then of cultural days of importance in our In early FY20, with the support and the Group’s key priorities is to ensure first television commercials in te reo which stores including Te Reo o Te Wiki Māori, guidance of Autism New Zealand, we were we should also be committed to being serious about all our policies are inclusive and support played throughout Te Wiki o Te Reo Māori. Matariki, Samoan Language Week, the able to roll out Quiet Hour nationwide. our diversity, and to carry out a diversity the correct pronunciation and understanding of te reo. end of Ramadan, Diwali and Chinese The Hour gives customers a time to shop We have also continued to hold te reo and inclusion survey of our 20,000 team The opportunity to learn at work has been a real New Year, giving our teams and our in our stores that is easy on the eyes classes for our support office, with 49 of our so we can better understand where team taking part in the sessions in mid-FY20. customers an opportunity to share more and ears by reducing lighting, turning privilege and one that has enabled me to use te reo not Countdown is doing a good job, but also Five members of our executive team are about themselves, their traditions and off the in-store radio, lowering checkout where improvement is needed when it taking part in the sessions this year, only correctly but meaningfully in my role, which often their culture. volumes, minimising trolley collection comes to inclusion. The results of the and shelf-stocking, and pausing any PA showing the importance our business sees involves public speaking.” However, creating an inclusive culture is survey will be used to develop a Diversity in helping to protect this precious taonga - announcements except in emergencies. Brett Ashley, General Manager Store Operations & Supply Chain more than celebrating each other; it’s and Inclusion strategy and plan of action. the Māori language. The response from our customers has been incredibly positive. With ASD PERFORMANCE 18 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 19

“We were so thrilled that Countdown decided to support RainbowYOUTH this year - we can see that there’s a real passion and commitment to our communities in the Countdown team. Countdown’s fundraising has been an incredible help for us; over the lockdown period we’ve seen more support requests from LGBTI+ youth across Aotearoa, and we wouldn’t be able to provide our support services without the support of amazing organisations like Countdown. We’re so grateful for your help!” Frances Arms, Executive Director RainbowYOUTH

Supporting our the Rainbow Tick for the first time in and evaluations to ensure we’re meeting positive results for our business with a We also supported a range of Auckland FY19, we were pleased to maintain our our obligations. more focused approach to how we deliver Pride and Wellington Pride events Rainbow community accreditation in FY20. The accreditation events, update our policies and support including the Big Gay Out, Auckland Pride, To help further support our Rainbow recognises organisations that accept external organisations. the Wellington Pride Parade and the Creating an environment where our team and guide our support of New and value people in the workplace, and Ponsonby Pride Parade. team and our customers feel safe and Zealand’s wider Rainbow community, we For Pride Month this year, Countdown embrace their diversity of sexual and comfortable to be who they are, is established our Proud Group in mid-FY20. stores helped to fundraise more than gender identities. The Rainbow Tick team important to our business. After achieving Setting up the group has already delivered $13,000 for RainbowYOUTH. provides our team with ongoing support PERFORMANCE 20 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 21

“I spoke to plenty of companies, but the team from Countdown were extremely Growing careers passionate about the work they were doing and were happy to talk about the work culture as well. It didn’t feel like a sales pitch. and supporting Instead it felt like I would be joining a team.” says Goku. COMMITMENT 5 Since joining the business through our team We will develop the careers of the the Graduate Programme in 2019, the Countdown team with a focus on youth. opportunities he’s had have helped him not For many young New Zealanders, Countdown STATUS: only appreciate how essential Countdown is for our customers’ daily lives, but also provides a great first job opportunity whether ACHIEVED it’s working at the checkouts after school and helped him realise his own potential. on weekends, working hours that fill university COMMITMENT 6 “I was never strong with statistics and numbers and thought that data analyst holidays or joining our business through the We will continue to develop employment policies appropriate jobs were only reserved for the super Graduate Programme. to our New Zealand team to smart. However I did a rotation with my provide a supportive work current manager, Hayden Sanders, and he environment. introduced me to the world of data analytics Our objective is to create a working wherever possible, but also to ensure STATUS: of customer behaviour. It was an eye- environment, supported by strong our team and their families can continue ACHIEVED opening experience and Hayden gave me the policies, that encourages young people to thrive. confidence to not only be able to do data and our wider team to continue on in our Our team is the heart and soul of analysis but also taught me how to embrace business with fulfilling, challenging and our business and they are immensely failure as a learning opportunity instead.” exciting careers. passionate about their work and looking Now a Performance Analytics Analyst As New Zealand feels the flow-on out for each other. We remain committed at CountdownX working on a variety of economic impacts of COVID-19, we to delivering policies and programmes “I’ve never felt like a cog in projects, Goku says the most important have a responsibility to not only provide that will continue to make Countdown a the wheel while working for part of his work is trying to understand what meaningful, ongoing employment great place to work. online customers want and using his skills to Countdown, but have instead help give them the best experience possible always felt like I was a valued when they visit our website. member of the team.” “I want to help ensure the projects we work on aren’t purely business driven. I want to Goku Ganeshan, Countdown X Analytics Analyst understand how our customers shop online and use our website so our services are focused on them.” Young people Developing Skills), apprenticeships and gained their NZ Certificate in Meat Retail graduate programmes. Butchery, 14 meat plant team members at Countdown have completed and gained their NZ SEEDs has continued to be a great success Certificate in Trade Butchery Carcass and for Countdown, with 450 students gaining Countdown provides a great start to the Boning, and 11 store team members have Helping deliver great work experience across 58 of our stores careers of many young New Zealanders completed and gained their NZ Certificate and graduating from the programme customer experiences and we’re proud to play an important in Baking. in 2019. SEEDs is invaluable for gaining part in the development of our almost For Gokulan (Goku) Ganeshan, Countdown first-hand experience working in various Our Graduate programme saw 12 young 7,000 team members who are 25 years wasn’t an immediately obvious place to areas of the store, and for our store people move into permanent roles and old and younger. start his career. Having only thought about teams who can scope out potential future nine new university graduates joined Countdown as a place to shop for groceries, Although people spend plenty of time in employees. Over the next year, we’ll work Countdown in early 2020. Since 2017, 38 he wasn’t sure where his Bachelor of supermarkets, very few understand the to encourage even more students into young people have graduated from the Commerce majoring in information systems careers and opportunities our business SEEDs and more stores to take part in this programme, which allows them to gain would fit. A chance encounter with the provides, from getting products into mutually beneficial programme. hands-on experience in their chosen field Countdown team at a university career fair our stores, helping our online service and across our business. grow, and helping to develop our stores Countdown also provides the opportunity helped change that perception. of the future. for our team to upskill through apprenticeships. Currently 78 of our team One of the ways we help develop our are undertaking either butchery or bakery younger team is through SEEDs programme apprenticeships, and since 2017, 14 of our (Students Entering Employment store team members have completed and PERFORMANCE 22 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 23

Supporting and team provided New Zealanders during the a range of roles and responsibilities and lockdown, but also the weeks preceding this helping ensure our customers had access recognising our team when we experienced incredibly high levels to the food and essentials they needed. of demand. Over half of the team we employed in this Paying people a fair wage for their work is period were hired in permanent roles, and important to our business, and we regularly Providing jobs when they we’ve been working hard to convert many review pay alongside the unions that represent of the remaining team on causal and fixed- some of our team. were needed most term contracts into permanent roles. In mid-FY20, we announced that from The impacts of COVID-19 have already been The new team members have come from a September 2020, all Countdown team members far-reaching with many Kiwis facing job range of industries, including the tourism with 12 months or more service will earn a losses and increased financial insecurity. industry, which has been particularly minimum of $21.15 an hour, reflecting our Record unemployment numbers are affected by the closure of borders genuine desire to provide more income for predicted in the months ahead. throughout the world due to COVID-19. our team and balancing the realities of keeping With their support, Countdown was able For Countdown, the initial impact of and creating jobs, and keeping food prices to serve the millions of customers who COVID-19 saw our stores and our online affordable for New Zealanders. needed our services at such an uncertain service busier than ever before. All our waged supermarket and distribution time for the country. team members were also paid a 10 per cent To help provide jobs for Kiwis and to bonus for hours they worked for the initial support our business as it dealt with the four week COVID-19 Alert Level 4 lockdown increased demand from customers, 2,418 which started on 27 March 2020. This bonus people joined our team just before and “Our frontline team members recognised not only the essential service our during the lockdown period, taking on are the face, heart and centre of our business. As we look forward and work as a team together to help build a better tomorrow for our country, we want to recognise our team’s role in that, and give them ownership of the huge part they play in creating it.” Natalie Davis, Managing Director

Team of 13,010 local The shares not only recognise the way our Financial wellbeing business pulled together during New Zealand’s shareholders lockdown to provide food for millions of Kiwis programme across the country, but also acknowledges the In late FY20, we awarded $10 million in role Countdown’s team members will play as In mid FY20, we also launched our Woolworths Group shares to all eligible full- we support the country’s recovery from the financial wellbeing programme, which time team members, and on a pro rata basis impact of COVID-19. aims to support team who may have for our part-time eligible team members, incurred unexpected expenses and costs providing 13,010 Kiwis across our 183 stores and need financial assistance and advice. and distribution centres with an ownership 36 people in our team have been referred stake in the company. for debt coaching to help them get back on track, and 22 loans have been issued to date. PERFORMANCE 24 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 25

“Operating through a global Putting safety first pandemic with high levels of uncertainty was extremely Whether it’s our team working in stores, distribution centres, challenging. Our focus on meat and seafood plants or support offices; our customers or the safety of our team, our other visitors, we have a responsibility to keep them all safe. COMMITMENT 7 We are committed to maintaining customers and the communities a workplace that safeguards the The health and safety challenges of a continue to provide Kiwis with food and health and wellbeing of our people, in which we operate never customers and visitors. business like ours are incredibly varied with essentials. Whether it was the protective waivered, our teams responded many of our sites busy with large machinery screens installed at checkouts, the hand- STATUS: and thousands of products that need to be santiser we provided, the extra cleaning MATERIALLY PROGRESSED with courage and commitment lifted and shifted. in our stores, or physical distancing while to continue to provide access to shopping, millions of customers shopped However in early 2020, responding to the food and groceries for all Kiwis, safely with us during lockdown. threat of COVID-19 became the biggest often in difficult circumstances.” health and safety challenge Countdown has The impacts of COVID-19 will have ever faced. As one of the only businesses long-term effects on many New Zealand Ben Sheidow, Head of Health, Safety and Wellbeing in the country to remain open throughout businesses and the Kiwis who work for lockdown, and in a very public facing way, them. Moving forward, we’ll continue we had a huge responsibility to keep both to regularly check-in with our team and our customers and our team safe. make sure that we’re doing everything we can to keep our team physically and Our team across the country worked mentally happy, healthy and safe. incredibly hard to make sure our stores were safe to shop in and that we could

Responding to a global (MBIE) COVID-19 response. This review very public campaign around being kind to ensured that despite the pandemic, our supermarket workers. This message was health crisis supply chain and stores were fighting fit. led by the Prime Minister, along with other senior government figures. We also had During what was a hugely uncertain time The unprecedented pressure that fantastic support from the New Zealand for many New Zealanders, we made sure COVID-19 put on our business was not just Police over alert level four in particular. people felt safe in our stores. We also kept from a supply and demand perspective, but They both proactively visited our stores, the most important part of business - our a safety, health and wellbeing one too. but also attended nearly all events involving people - healthy and safe while they were poor customer behaviour. This support Caring for our team is our priority. In the at work. lead up to and throughout the lockdown, was immensely reassuring for our store our Safety, Health and Wellbeing team Any of our team who were considered teams. high risk or vulnerable (including our team worked to develop the plans and processes We are now putting in place a number of over 70 years old) to COVID-19 by the needed to keep our team and customers wellbeing initiatives to continue to support Government were able to stay home and safe. We were able to install and initiate our people. In addition to encouraging our self-isolate. We also worked directly with a wide range of safety measures and teams to talk with each other, providing those in our team who were unable to work procedures at pace, including limiting the onsite professionals to support team and to during the lockdown period for any reason, number of people in a store at any time, join our I am Here Ambassador programme, such as caring for dependents, to make sure putting in place strict physical distancing during the lockdown we launched a new they were supported with paid leave. protocols, increasing store cleaning, closing online yoga and mindfulness resource every second checkout, providing PPE, We know however that the biggest impact for all team and their whanau, and more installing perspex screens - to name a few on our team has been to their mental recently launched the UnMind app for team. examples. health. Working in an incredibly busy and UnMind provides tips and tricks on how to Our comprehensive COVID-19 and physical stressful environment, as well as dealing look after their mental health effectively. distancing plan for stores and distribution with customers who were unsettled, often We have a firm and ongoing focus on centres was reviewed by the New Zealand frustrated, and sometimes abusive, has helping our team stay well and healthy over Defence Force’s Environmental Health been difficult for our team. the coming year. team, which forms part of the Ministry for In response we worked with the Police Business, Employment and Innovation’s and other government agencies to run a PERFORMANCE 26 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 27

A focus on safety manual handling. Throughout the week jacks in our stores to move stock that can teams across our stores and distribution weigh up to 800kg, automated external Over the last two years, we’ve tackled centres work through a range of videos, defibrillators at all Countdown locations, briefings and tasks, which help ensure and park brake alarms in our online health and safety with renewed focus and “Quite simply, having an AED a clear aim of making Countdown an even health and safety remains a top-of-mind vehicles and in secondary carrier vehicles safer place for our team to work and our issue for our team. to reduce the risk of rollaway incidents. machine was the difference customers to shop. In FY20, we had almost 130,000 safety These programmes and investments, as between life and death for an There are two main areas of safety that conversations (iLEADs) amongst our well as our increased engagement with we’ve addressed. First, we have changed team. These are specific conversations team, have played an instrumental role elderly customer who had collapsed our approach from one focussed on held with team or leaders on safety; in helping us reduce our total recordable and stopped breathing in the compliance, to one based in, and driven by, they can be positive and recognise good injuries by almost 14 per cent. behaviour or they can be constructive and trolley bay. I’ve done plenty of care. And secondly we have changed the Over the next year, we will further provide coaching in situations where things way we engage with our team. integrate mental health and wellbeing first aid courses, but having to give could be improved. We know that engagement is fundamental with our approach to physical safety and CPR was a big fear of mine. But in to improve our team’s understanding of We also launched improvement wellbeing, increasing our focus on the why their safety and wellbeing is such a programmes for electrical safety, traffic mental health of our team. To do this, we that moment, your training just priority. To help, we have held quarterly management, how we manage conflict will continue to provide them the tools, switches into action and the AED safety weeks. Each day of these weeks in our stores, and road safety, and have resources and support to help them focuses on a new topic, centered around continued to invest in making sure our through challenges they may face in their Machine tells you exactly what you critical and high frequency risks such as team has the right equipment for the personal and working lives. need to do. It was a life-saver.” traffic management, conflict, electrical and right job. This has included electric pallet Selwyn Sainty, Store Manager Countdown Birkenhead

Total Recordable Injuries (TRIs)

*reporting metrics changed in FY18 are not comparable

150

140

130

120

110

100

90

80

70 60 Defibrillators rolled the reality is that these types of medical events can, and do, happen in 50 out nationally and near our stores. To make sure our 40 team can provide help when it’s needed According to the New Zealand Red Cross most, we installed AEDs throughout all 30 an estimated 1,600 New Zealanders have of our stores, distribution centres and cardiac arrests annually and for every 20 support offices. minute without CPR (cardio-pulmonary 10 resuscitation) or treatment from an We have also partnered with Automated External Defibrillators New Zealand Red Cross to make sure 0 (AED’s) to restart the heart, a person’s our team are trained and this has already chances of surviving a cardiac arrest been put to good use with the AED FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 decreases by 10 per cent. machines being used in three seperate medical incidents since they were Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 With more than three million Kiwis installed in December 2019. shopping with Countdown every week, PERFORMANCE 28 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 29

Planet – for a healthy Aotearoa

Our precious environment is under threat, with climate change affecting our weather, oceans, wildlife and way of life. For the sake of our future generations, we’re more committed than ever before to reducing our emissions, using more sustainable products and materials, recycling more and wasting less.

Emissions reductions Refrigerant leakage in FY20 reduction in FY20 8.7% 30% Tonnes of food diversion Certification for paper, from landdfill pulp and timber

6,279T 100 % PERFORMANCE 30 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 31

Sending less to landfill As a company that moves food and other essentials up and down the country, we have a focus on COMMITMENT 9 reducing waste throughout the supply chain. Towards zero food waste going to landfill. Kiwis are passionate about protecting in keeping our fresh food safe, fresh, and STATUS: Aotearoa’s precious environment. transportable. Without it, our plastic MATERIALLY PROGRESSED Colmar Brunton’s 2020 Better Futures waste problem would become a food report placed the ‘build up of plastic in the waste problem. And, while we already environment’ as the second top concern divert a lot of our food waste from landfill COMMITMENT 10 for both old and young New Zealanders. through our food rescue programme, we Improve the recyclability want to reduce how much we’re creating of our Own Brand packaging and contribute to the We’re actively working on tackling plastic in the first place. circular economy. waste and in the past three years, we’re taken some significant steps. We’ve Meeting our target towards zero food STATUS: phased out single-use plastic bags and waste to landfill needs a holistic approach. MATERIALLY PROGRESSED packs of plastic straws, we’re the only It’s about changing what we can, diverting large supermarket to continue to support any safe and edible food away from landfill the soft plastics recycling scheme, and and into the helping hands of our food where we can, we’re moving to use more rescue partners, and continuing to work recycled and recyclable materials. with independent experts, central and local government to make sure our waste But removing plastic is not a penicillin for systems are fit for purpose. New Zealand’s waste problem. In fact, Food diverted from landfill plastic often performs an important role

Giving food an important Right across New Zealand we work with Government support at a local and national more than 20 food rescue charity partners level is urgently needed to establish or second life to save food that is still safe to eat, but incentivise the facilities that can process can’t be sold. That food is sorted by our food waste that isn’t safe for humans or Kiwis throw away an estimated $1.17 billion stores, picked up by our partners and then animals to eat. worth of food each year, according to Love distributed to people most in need. We also Countdown provided submissions on a Food Hate Waste. work with a number of farmers to donate number of key consultations over the This is a major issue not only because of the food that can’t be eaten by humans, but is last year, including the Waste Disposal harmful methane gas food waste produces safe for animal consumption, to feed their Levy Consultation, outlining the need to as it breaks down, but also because of the livestock. In the last financial year, we’ve better support New Zealand’s food rescue 5,800 5,885 6,970 6,279 thousands of New Zealanders going without diverted 6,279 tonnes of food from landfill organisations who provide an invaluable food each and every day. and since 2017, we’ve diverted 24,934 service, and also provide support to tonnes of food. tonnes tonnes tonnes tonnes At Countdown we work hard to estimate grow other diversion facilities such as demand and try to stock only what we know We are working towards zero food waste anaerobic digesters and commercial will sell - but the nature of our business to landfill, but achieving this will require the composting facilities. means that some food waste is inevitable. efforts of more than our business and those FY17 FY18 FY19 FY20 Our responsibility is to make sure that any of our food rescue partners. waste that is generated, can be thoughtfully *Due to missing data, several of the FY19 data points were estimates based on previous diverted from landfill. results. FY20 is slightly lower due to this and a drop in diversion during Lockdown Level 4. PERFORMANCE 32 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 33

Recyclability of packaging Key packaging types as a Action on plastic Since 2017, percentage of non recyclable and packaging we have: Since establishing our 2020 Commitments back in 2017, + Phased out single-use the demand for more action on plastic has continued to plastic carrier bags, 40% grow and Countdown has taken some big steps towards removing 350 million 69% addressing that demand. bags from the waste stream annually We’re proud of what we have already industry, the Government, ourselves and achieved, but our work is ongoing. We are our customers. We’ve been pleased to Phased out packs 58% determined to find more ways to reduce see a renewed focus in the past two years + our plastic packaging either by not using on making sure our waste system is fit of single-use plastic straws, removing it at all, finding better alternatives, or by for purpose and that there is an agreed 6% using packaging that is made from recycled plan of action regarding plastics. The 11.6m from the waste materials. We also want to make sure that Prime Minister’s Chief Science Advisor’s stream annually any alternatives we consider will truly deliver Rethinking Plastics report gives a clear better outcomes for the environment and direction for the future and Countdown don’t just shift the problem. will continue to be a willing and active + Removed more Soft plastic 69% participant in this work. than 150 tonnes of Recyclable...... 40% Black plastic 6% Action on plastic and packaging will take plastic from our Non-Recyclable...... 58% the combined efforts of many including our produce section PVC 3% suppliers, the packaging industry, the waste Unavailable at time of audit...... 2% Other 22% + Introduced BYO *Items had to be able to be recycled across 80per cent of New containers for our Zealand to be considered recyclable. deli, meat and seafood counters

Introduced more + Packaging at Countdown Supporting Soft The growth in the scheme has meant that rPET packaging, around 60 per cent of New Zealanders now reducing the need Early in 2019, we carried out a packaging Plastics recycling have a soft plastics collection point within audit that looked at the recyclability of our 20 km of their home or work. for virgin plastic Countdown currently has 46 stores own brand packaging. The total number throughout the Northland, Auckland, Countdown is the only major New Zealand of products looked at was 1,378 and the Phased out Waikato, Bay of Plenty and Wellington supermarket that has continued to support + number of packaging components within takeaway coffee regions involved in the Soft Plastics the Soft Plastics Scheme, recognising the those products totalled 2,036. soft plastic generated by the products cups at our Recycling scheme, giving customers the The audit has enabled us to develop a opportunity to recycle their soft plastics we make and sell, and the extremely support office clear plan of action when it comes to that would have otherwise gone to landfill. important role it plays in closing the loop making changes to our packaging in on soft plastic. Since it began in 2016, After the scheme was briefly closed down Signed the the short, medium and long term. The the scheme has seen 212 million plastic + due to the overwhelming amount of report recommendations include regular packages recycled. New Zealand material that was collected, it returned monitoring of our packaging, phasing out Packaging Declaration in late FY19 and is working to rebuild its We will continue to work alongside PVC and black plastics, supporting the capacity, with a focus on processing based the scheme to ensure even more New expansion of the soft plastics recycling in New Zealand. Future Post in Waiuku, Zealanders have access to Soft Plastics + Tested ‘Unwrapped’ scheme, and developing sustainable Auckland, processes material collected Recycling in FY21. produce concept packaging guidelines alongside our from the top of the North Island into suppliers. These will help us as we work for 10 weeks at fence posts, and Second Life Plastics in towards meeting the Packaging Declaration Orewa, Manukau and Levin processes material collected from commitment to have 100% reusable, the Wellington region into garden edging, Ponsonby stores. recyclable or compostable packaging cable covers and other products. by 2025. PERFORMANCE 34 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 35

Produce goes Unwrapped

In early 2020 we ‘unwrapped’ produce in our Orewa, Ponsonby and Manukau stores. The 10-week test saw 65 products ‘unwrapped’ from their usual plastic wrap or pack, and plastic produce bags removed, with customers encouraged to use reusable bags for their produce instead. Working with our produce suppliers, we developed and introduced a number of alternative packaging options to take more than a tonne of plastic out of the supply chain entirely - from the moment the produce was picked, all the way through to arriving on our shelves.

Unwrapped gave us an opportunity to test Throughout the test, we talked to our While Unwrapped was cut short due to whether the types of changes we want to customers and team to understand the impacts of COVID-19, the early results make could work long-term, and deliver opinions on the changes and measured and the feedback we received when it was better outcomes for the environment. a range of factors. While the customer running will have a long-lasting impact A large part of the test was making sure response to the changes was largely on how all New Zealanders shop in the any changes wouldn’t cause bigger issues positive, some customers did still prefer future. Our produce team is currently down the track, which is why things like using free, single-use plastic bags. We were considering what changes can be made to food waste and customer reaction were able to use the feedback we had received the packaging of certain lines and rolled closely monitored. to tweak packaging during the test and out to all our stores. provide customer incentives to use the reusable bags.

Action on wet wipes We support a New Zealand flushability the initiative was rolled out to all stores in standard to provide consistent guidance early FY20. In mid-FY20, Countdown met with around flushable wipes. Water New Zealand is helping to develop this. We representatives from a range of local Recycled plastic trolleys councils, Water NZ, Watercare, the NZ are committed to making sure that any Food and Grocery Council, and a number products we sell in the future meet the on a roll of our global and local suppliers to talk local flushability standard once this has through the challenges that wipes create been developed. Where possible, we’re keen to incorporate for wastewater systems in New Zealand. recycled materials into not only our own brand packaging but into other useful items BEFORE AFTER Local councils have been incurring huge BYO Containers for our stores - including the humble trolley. costs due to the blockages wet wipes cause and with Kiwis using these types of wipes Moving away from single-use plastic is Our Takapuna and Waiheke stores are a lot more during the COVID-19 pandemic, important to many of our customers and currently trialling recycled plastic trolleys. they were also causing potential health where possible, we’re trying to meet that Introduced in mid FY20, the green trolleys risks for workers at wastewater plants. To demand and help reduce our customers are made from recycled milk bottles. help address the problem, we rolled out reliance on these types of plastics. Currently, these aren’t made in New Zealand signage across all of our stores to remind from locally sourced recycled materials but During Plastic Free July, we trialled a Bring customers not to flush their wipes down we are hopeful that in time, items like these Your Own (BYO) container initiative, the toilet. This was supported by Water will become more available as the country’s where customers could use clean, reusable NZ, Local Government New Zealand and waste processing and manufacturing containers in our in-store meat, deli and the Ministry for the Environment. facilities grow and develop their capacity to seafood counters. Following the successful create more innovative products. trial and a few tweaks to the cleaning processes following customer feedback, PERFORMANCE 36 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 37

Sourcing Certified Sustainable sustainably We know that our role in ensuring products are sustainable doesn’t begin when they arrive in our distribution centres - it begins from the moment COMMITMENT 11 we first engage with a supplier. Source key raw materials and commodities sustainably to an independent standard by Sustainable sourcing is about 2020. We will raise awareness of We’re continuing to work with high impact sustainability sourced products. understanding the entire supply chain commodities and key raw materials like and knowing that the products we sell are palm oil, paper, sugar, coffee and chocolate STATUS: grown, produced and transported in a to ensure they are sourced from sustainable MATERIALLY PROGRESSED sustainable way. It’s also about ensuring we and independently verified supply chains, take all reasonable steps to source ethically and we’re taking the opportunity to talk COMMITMENT 12 and not create harm. to our customers and team about these Achieve net zero supply chain products wherever we can. deforestation for ‘high impact’ commodities in our Own Brand products, such as palm oil, timber, pulp and paper, and packaging. STATUS: PROGRESSED

Coffee Tea Sugar Chocolate Overall

FY17 25% 0% 0% 21% 19% FY18 43% 0% 100% 53% 56% FY19 82% 100% 100% 100% 92% Palm oil oil from the finished product back to the In FY20, we changed how we track and mill or plantation. Volumes of Palm Oil report our progress to make it clearer. We FY20 98% 100% 100% 100% 98% For many of our customers, the impact of sold in products without complete want our customers to make informed palm oil production on the environment is Supply Chain certification are covered choices about palm oil when they shop an ongoing concern and it’s one that our through the purchase of RSPO Credits. with us, which is why where palm oil is used business shares. We expect that by mid-FY21, all end- as an ingredient in any of our own brand product manufacturers will hold the products, we clearly label it as ‘palm oil’ on We are aiming to ensure that both our food RSPO Supply Chain Certification. the packaging. and non-food products use palm oil that is 100 per cent of our sugar is Bonsucro certified by the Roundtable on Sustainable For formulated non-food such as our Tea, coffee, certified. 100 per cent of our chocolate Palm Oil (RSPO) - previously our focus was cleaning or personal care products, in chocolate and sugar and tea, and 98 per cent of our coffee is predominantly food products. the second half of FY20 we began our independently certified by organisations journey toward using sustainable palm oil. We want to give our customers the 100 per cent of our own brand food including Fairtrade, Rainforest Alliance and Currently, 98 per cent of our non-food confidence that even the smallest of products support the production of UTZ. Production will begin in early FY21 on products in New Zealand are sourced essentials they buy in our stores are sustainable palm oil. 67 per cent of those a new certified coffee line, which will bring together with Woolworths Group and sustainably sourced, and we have products are supplied by an end-product our coffee, and overall, certification figure we will continue to work closely together continued to work on independently manufacturer that holds RSPO Supply up to 100 per cent. to achieve sustainable palm oil in this certifying key pantry staples like tea, Chain Certification, which completes the product group. coffee, chocolate and sugar. ‘chain of custody’ tracing sustainable palm PERFORMANCE 38 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 39

Animal welfare cent. Continued demand for cage-free pressure that the drought has put on eggs will make achieving our targets more many farmers. challenging, but we continue to work with Animal welfare continues to be a key Our next round of 2025 Commitments key industry partners to forecast and consideration for Countdown and our will include an increased focus on animal Progress on meet demand. customers; Kiwis want to know that when welfare, including the development and they are purchasing animal products, they In a time when it’s especially important to reporting of Welfare Outcome Measures paper, pulp can be assured it was sourced from suppliers support local producers, we are proud that to monitor performance against global with robust animal welfare standards. all of our fresh pork is free-farmed right best practice animal welfare benchmarks. and timber In FY20 we have continued our path here in New Zealand. towards achieving cage-free eggs on shelf Our strong preference is also to source certification across all stores by 2025. During COVID-19 100per cent grass-fed New Zealand we saw demand for eggs – alongside produced fresh beef and lamb and this other pantry staples – skyrocketed 33 per year we also achieved this, despite the 100%

– 90%

– 80% For Non Food

– 70%

Overall – 60%

– 50% For General Merchandise

– 40%

2017 2018 2019 2020

Paper, Pulp and Timber Certification (PEFC) and the Forestry Stewardship Council (FSC) systems. New Zealand produces a significant The number of Countdown own brand number of paper, pulp and timber products containing certified timber, products, which was a welcome relief when pulp or paper has been steadily increasing COVID-19-related panic buying significantly over the last few years and we are pleased impacted our toilet paper supply. to report that we have reached 100 To ensure that our own brand products per cent certification in FY20. This is a and raw materials are independently significant increase from our 2017 result certified and sustainable, we work with the of 63 per cent. Programme for the Endorsement of Forest PERFORMANCE 40 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 41

Responding to Total Emissions (Tonnes of Carbon tCO2e) Climate Change 170,000 160,000 The impact of carbon emissions on our planet is undeniable. Extreme droughts throughout New 150,000 Zealand and widespread wildfires in Australia are COMMITMENT 13 only some of the nearby examples of significant Reduce Countdown’s carbon emissions to 10 per cent below 140,000 global weather events that threaten the future of 2015 levels. 2020 CO2 Target (138,857) our environment and economy. STATUS: 130,000 ACHIEVED

Climate change remains an issue of great economy are likely, with more people COMMITMENT 14 120,000 concern for New Zealanders, particularly working from home and business travel our young people. For the long-term patterns changing. The focus now needs to Innovate with natural refrigerants FY17 FY18 FY19 FY20 and reduce refrigerant leakage in survival of Aotearoa’s environment, of be on ensuring that as we invest to rebuild, we our stores by 15per cent of CO2 food-focussed businesses like ours, and are investing in ways that aid rather than slow equivalent below 2015 levels. 165,271 155,337 133,639 109,198 (C02t). the very way of life we enjoy here in New the transition to a low emissions economy. Zealand, responding to climate change is STATUS: In FY19, we exceeded our target of something that we absolutely have to do. reducing our emissions to 10 per cent ACHIEVED

Alongside plastic, we are also seeing climate below our 2015 levels and this progress concerns translate into diet changes to hasn’t slowed. We are firmly focused on reduce environmental impact, a trend we are the action we need to take now to play our seeing reflected in customer buying habits. part in meeting the Woolworths Group 18.7% reduction in emissions commitment to reducing emissions by In the wake of COVID-19, short-term since FY19 60 per cent by 2030 compared with emissions reductions in parts of our 2015 levels. Emissions profile:

Developing an emissions new transcritical systems, contributing a • Accelerating energy efficiency retrofits in reduction of 14,947 tonnes. our stores which includes installing LEDs reduction action plan and improving air conditioning systems In FY19, as part of the Woolworths It has been a big year for climate change Group, we announced a commitment • Providing real-time store energy 165,271 tCO2e 155,337 in New Zealand with the Zero Carbon to reducing emissions by 60 per cent by performance information to our team, tCO2e 133,639 Act coming into force in November 2019, 2030 compared with 2015 levels. This new helping them maintain lower energy use tCO2e 109,198 followed by the establishment of the target - which relates to our Scope 1 and and address any increases tCO2e Climate Change Commission. The Emissions Scope 2 emissions - starts in FY21, and has Continuing to reduce waste to landfill Trading Scheme is also undergoing been set using the Science Based Targets and partnering with suppliers are significant changes and there has been a methodology. opportunities we will develop further this 2017 2018 2019 2020 focus on accelerating renewable energy and During FY20, we have been working closely year. Countdown joined the Sustainable energy efficiency. with sustainability consultants thinkstep Business Council’s Collaboration on Low Countdown has continued its work Australasia to map our pathway to 2030 Emissions Solutions for Heavy Transport to to reduce emissions and this year we and identify the best opportunities to better understand how we can work with Fuel 20% Fuel 24% Fuel 27% Fuel 25% reduced emissions by 25,123 tonnes, more achieve our 60 per cent reduction target. our third party logistics partners to reduce than doubling our targeted reductions. We also commissioned two detailed store emissions in this area. We also continued Refrigerants 46% Refrigerants 43% Refrigerants 37% Refrigerants 32% Our ongoing refrigeration transition energy audits, with support from EECA. our membership of the Climate Leaders Energy 24% Energy 26% Energy 25% Energy 30% programme was again the hero in this year’s Coalition, contributing to its annual report We have identified the following Waste 10% Waste 7% Waste 11% Waste 13% results. We retrofitted five stores from on member performance against its 2017 opportunity areas: higher global warming potential (GWP) Climate Change Statement. gases to lower GWP, and also installed five • Transitioning towards very low greenhouse gas refrigerant emissions systems PERFORMANCE 42 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 43

Closing the door We had previously tested doors on fridges at Countdown Pukekohe South, and on fridges while they delivered significant energy savings, sales of refrigerated products As part of Countdown’s focus to reduce dipped initially as customers adapted to emissions, every time we build a new store the new fridges. For Rototuna, the team we look at how we can introduce tools and developed new signage to help customers initiatives to help us achieve this. understand the importance of the doors Countdown Rototuna, which opened in late and to help them feel like they are part of FY20, has been kitted out with a number of our energy-saving efforts. We will monitor energy-use saving and emission reducing the customer response and hope to roll measures such as LED lighting, transcritical chiller doors out across more of our stores refrigeration and new chiller doors which in future. will help reduce the fridges’ energy use

by 42 per cent a year. These doors alone will save enough energy to power 20 Kiwi homes for a year.

Electric delivery trucks Supporting electric Joining Gen Less hit the road vehicles on Waiheke In mid-FY20, Countdown became one With more customers than ever before Electric vehicles are becoming increasingly of the founding 12 partners (and only using our online service, we can help popular with Kiwis, with many people seeing supermarket brand) to join Gen Less, to reduce the emissions our delivery trucks them as a great way to reduce their personal help encourage individuals, organisations, generate in getting food and essentials to emissions. Waiheke Island is well-known for businesses and government to live and work our customers. being an eco-conscious hot-spot in New in more climate-friendly ways and reduce Zealand and locals are keen adopters of EVs greenhouse gas emissions from energy use. In early FY20, Countdown launched the with 200 EVs already in use on the Island. first of five electric delivery trucks at The initiative, which was launched with a Local community group, Electric Island the St Johns store in Auckland, servicing rousing call to action on climate change, was Waiheke, has also set a goal for the island to online customers in St Johns, Greenlane, established by government agency EECA, become fossil fuel free by 2030. Remuera, Stonefields and St Heliers. A and continues to give Kiwis guidance and further two trucks joined the fleet later in To support this community goal, and to help advice on how to use less energy in their the year servicing our Grey Lynn, Auckland, make trips to our Waiheke store easier for day-to-day lives. and Hornby, Christchurch, stores. The final EV drivers, Countdown installed four public two trucks are expected to start deliveries charging stations with the support of Envex. in early FY21. The charging stations are free to use and allow shoppers to top up their charge while The trucks have been part funded by they visit the supermarket. an Energy Efficiency and Conservation Authority (EECA) grant totaling $387,500, to help convert the formerly diesel trucks to electric. Each of the trucks, which have both a refrigerated and freezer compartment, will be able to drive around 220 kilometres before recharging. When all five trucks are on the road, they will save around 135 tonnes of CO2 emissions annually. PERFORMANCE 44 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 45

Prosperity – building strong and trusting relationships

Our customers place trust in us to do the right thing. By supporting and engaging with our suppliers, upholding human rights in our supply chain and contributing meaningfully to our local communities - we’re working to honour that trust every day.

FY20 Community Free pieces of fruit given investment away to kids since FY17

$7. 2 M 12M

Own brand food Donations to food with the HSR rescue partners

99% $1M PERFORMANCE 46 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 47

Supporting “We see Compass as a genuine win-win New Zealand because a lost sale COMMITMENT 15 We will engage fairly and for a supplier is most suppliers equitably with our suppliers, making fact-based decisions and likely an unsatisfied seeking regular feedback directly To keep our shelves stocked with the fresh and locally and through independent Countdown customer supplier surveys. grown produce that our customers love, we work with as well. We believe STATUS: more than 1,200 farmers and hundreds of local growers. ACHIEVED that the introduction of Strong and long-lasting partnerships are what we strive Compass here has the for with all our suppliers. potential to recoup real

Local Kiwi suppliers are a fundamental range of products. We also saw the supply value for suppliers while part of our business and we’re proud of of products from off-shore slow as borders improving availability the positive working relationships we closed around the world. have with them. Whether big or small, or for our customers at the Now, more than ever, New Zealand will whether we’ve worked with them for years depend on its local growers and suppliers. same time.” or only a few weeks, we want to make sure We are a nation that produces some of the that partnering with Countdown is Steve Mills, General Manager Merchandise greatest food in the world and we want to mutually beneficial. see that continue well into the future. Along with the health and safety challenges A big part of that is helping to give our that COVID-19 presented, it also created suppliers the confidence to grow and immense pressure in our supply chain. In increase their supply, knowing that they the weeks leading up to New Zealand’s have a long-term stockist, and helping them national lockdown, our stores saw adapt to changes in consumer behaviour unprecedented levels of demand for a wide and changes to our planet.

Meeting the needs of in February 2020, has again shown an Compass app helps increase in positive sentiment with an our suppliers overall score of 45. This is a six point guide suppliers increase on the previous result, with the We’re dependent on our local suppliers ‘Collaborative Forecasting and Ordering’, A big part of our customers’ experience to help us deliver great experiences for team ‘Accessibility and Availability’ and in our stores is making sure we’ve got the our customers, and it’s important to our ‘Viewing Countdown as Fair, Equitable and products they need, when they need them. business that we continue to improve our Trustworthy Business Partners’ measures To help, we launched a new app called relationships with each of them. all seeing significant lifts. Compass, which enables our local suppliers to more closely monitor sales of their Twice a year, our team undertakes a The results have also shown our team products in any of our stores. supplier survey to gauge how well we’re where more work is needed to make things supporting our suppliers and to understand easier for our suppliers and to increase Compass draws on historical sales patterns where we are doing well and what we need our collaboration with them. Our focus to calculate daily sales expectations to do to be better. over the coming financial year will be on for every product in every store, and it generates alerts for suppliers to quickly Since the Voice of the Supplier survey responding to this feedback and working to identify and fix potential out-of-stocks or began in October 2018, we’ve seen improve in these areas. other issues. continued improvement in our results, with suppliers taking the opportunity to provide The app has already seen good pick up valued feedback that they know we will act by suppliers, with many keen to take the on. The latest survey, which was completed opportunity to better understand how our customers shop and how they can provide the right products and stock levels to meet their demands. PERFORMANCE 48 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 49

At a time when our global supply Thanks to our hardworking growers, “During a time when there was huge uncertainty for Supplying chain was slowed due to the COVID-19 our three produce distribution centres pandemic, our fruit and vegetable received the largest ever volume of our customers, and Kiwi families were looking at New Zealand department flourished with 20 per fresh produce, with more than 100 team spending Easter in lockdown, it was a proud moment cent more fresh, locally grown produce members helping get it all into stores with the available to our customers than during our ahead of the Easter Weekend. knowing that anyone entering our stores would see busiest time of the year - Christmas. this absolute abundance of beautiful, locally grown, essentials fresh produce.” through Grant Robinson, Merchandise Manager Produce lockdown 155,000 369,000 bags of heads of brocoli 152,000 brown onions 302,000 bags of carrots 236,000 avocados bags of potatoes

Buying locally: 82% 100% 100% 84% 99% 100% 100% 60% of our fresh of Fresh White Milk of instore baked of fresh fish is of all the fresh of block butter of block cheese of our specialty produce is is NZ sourced Bread, Buns & Rolls locally sourced Beef, Poultry, is NZ sourced is NZ sourced cheeses are NZ sourced are produced from Lamb, & Pork sold made by local NZ milled flour by Countdown is artisan producers locally sourced PERFORMANCE 50 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 51

Responsible sourcing

With a heightened focus on responsible sourcing over the past year in New Zealand, driven by market, regulatory and - most recently - global events, it’s hugely important to our COMMITMENT 16 business that we’re making sure workers in our supply chain We will focus on a best practice are given a fair deal and not exploited. compliance system according to the Global Compliance Programme. We will collaborate with peak organisations to We know Kiwis want everyone to be paid views to this review, and consultation will improve workers’ lives. and treated fairly for their work. Our continue this year. Responsible Sourcing Programme helps STATUS: Over the last year, we have continued us to make sure we’re doing that. To date, MATERIALLY PROGRESSED to work closely with the New Zealand 95 per cent of our team members who horticulture industry to raise awareness interact with suppliers have completed of the risks in this sector, as well as with a training module on how their actions NZGAP to develop a social practice influence Responsible Sourcing outcomes. add-on to their certification scheme. The past year saw the first conviction in We have also promoted the availability New Zealand for a combination of both of Speak Up, a website and phone line human trafficking and modern slavery. A that allows suppliers and team to raise number of investigations by the Labour concerns anonymously. This is particularly Inspectorate and Immigration New important for workers who may feel they Zealand have further revealed employment can’t discuss employment issues with their and immigration breaches in a number employer and need support. of sectors, including horticulture. The The pressure that COVID-19 has placed Government ratified the ILO Forced on supply chain throughout the world is Labour Protocol 2014 and in November immense and with that pressure comes a Our approach 2019, the Ministry of Business, Innovation greater potential for worker exploitation and Employment (MBIE) began a While all our suppliers are subject to our which we all have to be alert to. We will review into temporary migrant worker Responsible Sourcing Policy, given the continue to play our part in upholding the Risk Number Percentage exploitation. Countdown contributed its diversity and scale of our supply base, we rights of workers in our supply chain. need to focus first on the areas of greatest segmentation of sites % risk. We are currently focused on our suppliers of own brand, exclusive and fresh products, and have worked with global Priority 4 1 supply chain human rights experts, Elevate, to categorise these into different levels of risk, based on geography and sector. Moderate 10 4 Responsible engagement During the COVID-19 pandemic, we requirements. We have also seen seasonal have maintained engagement with our labour shortages due to our own border Priority, Moderate and Specialised suppliers with our suppliers are all required to undertake a site audit suppliers regarding our responsible closing, and a call for more New Zealanders Specialised 108 (direct) 37 sourcing expectations and have taken the to take up jobs traditionally taken up by from one of our mutually recognised Countdown is one of the first, if not the opportunity to communicate with our migrant workers. This may mean we see programmes, while Minimum risk ranked first, major food retailers in New Zealand buying teams around risk areas such as fewer instances of immigration issues for suppliers complete a self-assessment to require social practice compliance from Minimum 169 58 health and safety protocols, working hours some time, however we know that there is questionnaire. These results identify any its suppliers and we have been working and subcontracting. a risk that employment breaches will still breaches of our Responsible Sourcing to raise awareness of our Responsible occur within non-migrant workforces. It is Standards, and also help us benchmark Total 291 100 Sourcing Programme through supplier While the New Zealand Government has critical in responding to the crisis that we supplier maturity in this area. In the future, communications, grower updates, and enabled more flexibility on working visas maintain the integrity of our responsible we will be extending this approach to our presentations at industry conferences for those in the country, some migrant sourcing programme and continue to put direct suppliers of non-traded goods and events. workers have found themselves stranded people at the centre of decision making. and services. as their home countries closed borders or limited returns because of quarantine PERFORMANCE 52 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 53

Focus on responsibly Supplier investigations sourced produce This year, Countdown has undertaken Our produce suppliers are categorised investigations into four direct and two as ‘Specialised’ risk due in particular to indirect suppliers that have been linked to the heavy reliance on seasonal, including Labour Inspectorate and Immigration New migrant, labour for picking and harvesting Zealand investigations. in New Zealand. We are working with The Government findings related to 108 direct suppliers and several hundred activities that occurred between 2015 - more grower sites indirectly supplying 2020, with the main issues being: through wholesalers to onboard them to • Workers on holiday or expired work visas, our Responsible Sourcing programme. 96 per cent of our New Zealand direct • Paying workers below minimum wage, suppliers have now been onboarded to • Not paying holiday pay, our Responsible Sourcing programme, and have or will undergo social practice audits • Failure to provide workers with within the next year to demonstrate their employment agreements, and compliance and good social practice. • Failure to keep accurate records.

Working with NZGAP We have engaged with the suppliers involved and in one instance facilitated restitution of underpayments of $5,166.97 We have continued to work closely to workers by a direct supplier on behalf of with NZGAP, the certification arm of the Labour Hire Provider, who was unable Horticulture New Zealand, to support the to meet their obligations. During our launch of the NZGAP Social Practice Add- meetings suppliers have been supported on module. and encouraged to analyse the root causes NZGAP developed the NZGAP certification of the identified breaches, and set targets for food safety, health and safety and for follow-up actions to prevent these environmental management over 20 years breaches occurring again. Case study: Tackling management systems to make sure growers to reflect on the best way to ago. In response to market and regulatory they comply. These LHPs are currently a help their LHPs to build their capabilities demand, its Social Practice Add-on module worker exploitation vulnerable point in the supply chain that in this area. This needs to be done in a will be launching in late 2020. through better grower can lead to exploitation of workers. considered way to ensure it achieves the The certification is benchmarked to desired result. For example, one grower oversight of Labour In one instance, our investigation found both New Zealand employment law and took the decision to reduce the amount of a grower working with a LHP that did international best practice, and will enable Hire Providers paperwork they were handling on behalf not know the minimum wage required growers to be recognised for good social of their LHPs, and instead set service levels to be paid to workers, and also did not practice. NZGAP has also developed a Three of the four investigations for how the LHP was to manage this. accurately calculate or pay out holiday, Standard for Contractors that provide Countdown conducted in the past year While the grower thought they were public holiday pay or PAYE. In another, contracted labour to the horticulture related to the activity of Labour Hire assisting the LHP by doing this, it meant the LHP was provided with clear payment sector, which will work in alignment to the Providers (LHPs) on our suppliers’ sites. that the LHP did not have to establish their schedules for workers by the contracting Social Practice Add-on module. own robust systems. LHPs are commonly used in the grower, but failed to pay out the holiday horticulture sector to provide additional or public holiday component of the pay to We also welcome the development workers at peak growing and picking the workers. of NZGAP’s Contractor Standard periods. Unlike manufacturing, it can be as a mechanism to drive improved We see the need for growers to increase hard for growers to accurately predict performance through the contractor their due diligence and management when and how much labour they’ll need sector and are exploring how we support oversight of the LHPs they use. In both of because production is so seasonal and this development through our Responsible the above cases the growers addressed weather dependent. LHPs provide a Sourcing programme requirements in FY21. service that is essential for many growers. the issues as soon as they became aware of them and contracted expert advice However, many of these LHPs are very to assist them in improving how they set small local companies and some - whether out their contractual requirements and intentionally or not - lack understanding their oversight. We are encouraging our of employment law, or adequate PERFORMANCE 54 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 55

Using Food for Good

Supporting our Countdown has continued to support a number of charitable organisations and $1m to support charities causes, whether it’s fundraising for The in the wake of COVID-19: communities Salvation Army, providing grants for local schools and ECEs to undertake sustainability It’s a privilege to be in the business of food in Aotearoa New initiatives, supporting our food rescue The Salvation Army...... $100,000.00 Zealand. We’re proud to be a part of 183 communities, an partners, providing store level support for KidsCan...... $100,000.00 community events, or just lending a helping COMMITMENT 17 Auckland City Mission...... $50,000.00 employer of 20,000 hard-working Kiwis, and an organisation hand to a family in need, that works closely with local farmers, growers and We will invest the equivalent of Wellington City Mission...... $50,000.00 1 per cent of a three year rolling In late FY20, after seeing the unique businesses big and small to feed the three million customers average of total Countdown challenges our communities are facing in Christchurch City Mission...... $50,000.00 Earnings Before Interest and who shop with us every week. Tax (EBIT) into community the wake of COVID-19, we felt we needed to Lifeline...... $50,000.00 partnerships and programmes. establish a clearer platform for our support Red Cross - vulnerable MOW and refugees...... $20,000.00 Being part of a community is more than for kindness is now. COVID-19 will have STATUS: - Countdown’s Food for Good Foundation. being a place where people buy their a lasting impact on our country, but it ACHIEVED The Foundation aims to provide Kiwiharvest ...... $80,000.00 groceries - it’s about playing an active role has also shown us what can be achieved meaningful and long-lasting support Foodbank Canterbury...... $55,000.00 in supporting that community to thrive. if we work together. Times will be tough to our communities, giving all Kiwis the COMMITMENT 18 Fair Food...... $50,000.00 Whether that’s partnering with our local for many in the coming months and opportunity to thrive, and helping to build a food rescue charities, minimising harm by years, which is why establishing our new We will publicly report social impact to quantify the positive stronger, healthier New Zealand for future Kaivolution...... $50,000.00 selling products like alcohol and energy Countdown Food for Good Foundation change we are creating with generations. drinks responsibly, giving our customers was so important to us. a focus on health, economic Kaibosh...... $50,000.00 development and emergency relief. the information they need to make As our first step, we donated $1 million in Good Neighbour...... $40,000.00 We want our support for our communities healthier choices, or simply lending STATUS: the wake of COVID-19 to our food rescue to be effective, long-lasting and help New Kiwi Community Assistance...... $30,000.00 a helping hand when people need it most. and food welfare charity partners to help Zealand thrive. ACHIEVED them answer the massively increased Just Zilch...... $25,000.00 If there is anything that the last few demand for food support, and help them Nourished for Nil...... $25,000.00 months have shown us, it’s that the time operate in the immediate term. Love Soup Hibiscus Coast...... $25,000.00 A further $500,000 will be provided to support our food rescue partners in FY21, Rotorua Whakaora...... $25,000.00 to help our food rescue partners ramp up Kai Rescue Nelson...... $20,000.00 their operations - whether that’s for more food, more people, more vans on the road Satisfy Food Rescue...... $20,000.00 or more fridges and freezers. Waiwaste Masterton...... $15,000.00 Over the last five years, Countdown has Halo Charitable Trust...... $10,000.00 Countdown’s FY20 Community Investment: provided more than $740,000 of funding to Huntly Friendship House...... $10,000.00 help support these organisations as part of our goal towards zero food waste to landfill. Gizzy Kai Rescue...... $10,000.00 Food rescue food donations $2.9m Our increased contribution in the next Mangere Budgeting Service...... $10,000.00 financial year reflects the critical service Food rescue contestable fund $.2m food rescue plays for both Countdown, and Rural Women...... $10,000.00 the broader community. Northland Food Rescue ...... $5,000.00 Countdown Kids Appeal Fundraising $1.1m Dargaville Community Foodbank...... $5,000.00 Golf Day and Lamingtons Fundraising $.18m Blenheim Foodbank...... $3,000.00 Foodbank Project rebates $.12m Hawea Foodbank...... $3,000.00 Manchester House Feilding...... $2,000.00 Other company and customer donations to charity $.65m Katikati Foodbank...... $2,000.00 Free Fruit For Kids $1.04m Matamata Foodbank...... $2,000.00 Food Food for Good Foundation - Food Rescue support $1m Morrinsville Ezekiel Trust Foodbank...... $2,000.00 Waiheke Resourcing Trust...... $1,000.00

Total investment $7.2m PERFORMANCE 56 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 57

Helping out The Growing for Good White Island support Salvation Army Countdown provided $26,000 worth of When Whakaari erupted in mid-FY20, it The Salvation Army is our largest and grants to primary and intermediate schools sent shockwaves throughout New Zealand. longest-standing, charity partner, and in and early childhood education centres Many people had travelled to the island to FY20, we again supported The Salvation across the country as part of the second see it, but on this occasion a number of Army’s Winter Food Appeal and the round of our Growing for Good grants. visitors to its shore did not make it home alive. This sadly included a number of our Christmas Appeal, helped The Foodbank The grants, which will be used to kick start colleagues from the Woolworths Project reach new heights, and supported a range of sustainability projects, were Australia team. a Good Shop mobile shopping truck in the awarded to young Kiwi conservationists, Wellington region. gardeners and environmental champions Our team immediately set about supporting Over the last year, $2.6m worth of groceries at 34 schools in an effort to encourage the families of our wider team who have been donated through The Foodbank New Zealand tamariki to protect Aotearoa’s had been hurt or killed in the eruption. Project, with Countdown providing and precious environment. Many of the We worked with the Australian High delivering the donated items at cost. successful projects had a clear focus on Commission and the New Zealand Police feeding and supporting the local community. to ensure the families were well cared They continue to see huge demand from for as soon as they landed in the country Projects being funded this year include Kiwi families in need - a demand that has providing food, phones, transportation installing beehives and chicken coops; increased exponentially over the last half and support during what was an incredibly planting native trees and plants, and fruit of FY20. difficult time. Our Manukau store also and vegetable gardens; revitalising a native prepared food that was delivered to skink garden; installing worm farms and Middlemore hospital and gratefully received reducing food waste. by the families and emergency workers.

Fireworks go out Age restriction on positive step toward improving child health. The sugar and caffeine in these drinks leads with a fizzle energy drinks to children getting hooked on them, with rotten teeth and poor engagement in the In early FY20, Countdown made the New Zealand has the third highest obesity classroom as predictable consequences. An decision not to sell fireworks due to a rate in the OECD and, with a combination age restriction makes sense.” change in customer sentiment, with 66 per of caffeine, sugar, serving sizes and the fact cent of customers indicating in a survey that children often consume on the way that they rarely or never buy fireworks for to school, Countdown wanted to address Countdown supports private use. concerns being raised by health leaders about energy drinks. return of Kiwi favourite Almost half of those surveyed said they were buying less fireworks than two years After speaking with a wide range of people The Girl Guide biscuit has been a staple in ago. 71 per cent stated animal welfare as about this issue, overwhelmingly the advice the pantry of New Zealanders for some their most common reason for moving and feedback we received was that when years, so when GirlGuiding NZ announced away from fireworks, with other reasons it came to children’s health, restricting that the beloved Guide biscuit would including fire safety concerns (49 per cent), the sale of energy drinks would make an no longer be sold by its members, the environmental reasons (30 per cent), important and meaningful impact in an area Countdown team sprung into action. neighbour disturbance (34 per cent), and of high need. While energy drinks are not Countdown worked alongside GirlGuiding personal safety (30 per cent). recommended for children and they already NZ and Griffins to see the sweet treat have to carry a warning on pack, in early The SPCA welcomed the announcement, return to supermarket shelves in mid- FY20, Countdown proactively introduced which will help keep pets safe and happy FY20, with a dollar from every pack an age limit of 16 years and older on all particularly during Guy Fawkes night when sold donated to GirlGuiding NZ. The energy drinks. many animals get hurt or go missing. funds raised help to support the work Auckland University lecturer in GirlGuiding NZ does to empower Kiwi girls Epidemiology and Biostatistics, Dr Simon and young women, teaching them a raft of Thornley, said “I applaud Countdown for skills to help build confidence and set them taking the initiative and making a concrete, up to be great adults. PERFORMANCE 58 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 59

Supporting our customers In the first week of lockdown, demand To further meet the increased demand Making Kiwis’ for our online shopping service increased for our online services, we temporarily during lockdown by 40per cent and we needed to make converted a number of our stores into changes quickly to help provide vulnerable online only stores and launched our very Lockdown presented a number of New Zealanders with access to food and first permanent eStore in Penrose, which lives a little challenges for not only our business, but other essentials. will be used for processing 7,000 - 16,000 for our customers too with many needing online orders each week. COMMITMENT 19 to change how they shopped. Restrictions To help, we quickly developed a Priority better everyday We will achieve leading customer on the number of customers allowed to Assistance Service to prioritise our online With these changes and the increased satisfaction scores. be in our stores at any one time, and the delivery service towards customers demand we saw, communicating with Our customers are a fundamental part of our business and STATUS: Government encouraging people to stay who needed extra support. The meant our customers was incredibly important. our team works hard to make sure we’re giving them great MATERIALLY PROGRESSED home - particularly those with health customers who were over 70, had serious For six weeks, from 1 March 2020, our chronic illness, were self-isolating due to Customer Care team answered 72,000 experiences each and every time they interact with us. conditions that would make them more vulnerable to COVID-19 - meant many recent travel or had a physical disability calls and answered 67,000 emails; our Whether that’s when they’re shopping in our stores, receiving COMMITMENT 20 people were relying on our online service that prevented them from shopping in our COVID-19 website information page had an online delivery, or getting help from our Customer Care We will support and inform our to get food and other essentials delivered. stores could have earlier access to online 639,000 views and we sent close to 7m customers to help them to make delivery windows. More than 110,000 service emails to our customer base. team, every interaction is important. healthier choices. customers signed up for the service. STATUS: Our team is guided by our values - we care array of meat alternative products, we have MATERIALLY PROGRESSED deeply, we listen and learn, and we always placed age restrictions on energy drinks, do the right thing. We’re striving to create we have continued to reformulate our a culture within our business where great own brand products to be healthier, and customer service is second nature and an we have maintained our focus on selling environment where the people who shop alcohol responsibly. with us feel safe and cared for. We don’t think our customers should have It’s also about giving our customers access to choose between buying products that to the products and information they need are better for the planet or buying enough to make healthier choices. to feed their families. We’re determined to offer great products at a great price that are As a food business, we appreciate the role also great for the planet. we play in helping to create happy and healthy communities. In the last year, we have offered our customers a growing

Listening to Supporting our customers emergency workers

To better understand what our customers During the four week lockdown, we wanted want and how we can improve their to show our support and appreciation experiences in our stores, we use our Voice for New Zealand’s frontline emergency of Customer survey. The surveys give our workers. To help, we introduced a priority customers the opportunity to tell us what shopping hour for emergency workers they loved and liked in our stores. It also and medical personnel, before the store gives them the opportunity to tell us where opened to the general public. The offer and how we could do better. applied to members of the New Zealand Police, Fire Service, ambulance paramedics, The Voice of Customer survey also became medical professionals including DHB an opportunity for customers to share personnel, doctors and nurses, giving messages of thanks to our team who worked them the opportunity to buy groceries through New Zealand’s lockdown, with more for themselves and their families and ease than 130,000 pieces of positive feedback pressure they would have been feeling given during the year, including several during such a challenging time. thousand during lockdown. PERFORMANCE 60 COUNTDOWN SUSTAINABILITY REPORT 2020 1 HIGHLIGHTS 2 PEOPLE 3 PLANET 4 PROSPERITY 61

Making basket-basics healthier How reformulating these basics is removing salt and sugar from Kiwi diets*

988kg 433kg of salt removed from of salt removed from Essentials Sliced Countdown Rice White Bread Pops 460g 600g

186kg 421kg of salt removed from of salt removed from Countdown Shredded Countdown Stacked Chips Mozzarella Salt & Vinegar 160g 400g

3,390kg 142kg of salt removed of salt removed from from Essentials Countdown Tomato Soup Table Spread Condensed 415g 500g

9,727kg 502kg 1,165kg of salt removed from of sugar removed from of sugar removed from Traditional Beef & Cheese WW Baked Beans in Essentials Peanut Butter *based on sales in FY20 Sausages Tomato Sauce Crunchy 6pk 420g 375g

We’re continuing to work to improve our breaches. Our team training is focused Selling alcohol responsibly filters for our website which make it systems, team training and policies in on responsible service of alcohol, the Helping our customers Macro awarded Organic easier to identify products that meet our effort to remain New Zealand’s most regulations around selling alcohol, and Countdown takes its responsibilities make healthier choices specific dietary or lifestyle needs. Brand of the Year responsible retailer of alcohol. Our Alcohol conflict resolution. As well as undergoing around the sale of alcohol seriously and we Customers can now select filters Responsibility Manager continues to the initial training, our team must also The way Kiwis shop and eat is constantly Our Macro Organics range offers customers have a range of policies in place to ensure including things like low salt, high fibre, provide regulators and local communities complete an annual refresher course. Last changing, with more and more customers great organic products and continues to grow. we do the right thing. Selling alcohol is a vegetarian, gluten free and lactose free a single point of contact to help address year more than 4,528 of our team attended deciding what to buy with health and the In fact, its popularity with our customers had privilege and we understand that excessive to make sure they are making informed any issues or concerns around the sale these training and refresher courses. environment firmly in mind. Every day, our seen more and more floor space in our stores alcohol consumption can cause harm. and healthy choices that meet their of alcohol. This also means operational stores display beautiful fresh produce, organic dedicated to a wider selection of organic and We have continued to see a growing needs when they’re filling their basket. Wherever we can, we want to take the questions from our stores can be resolved number of customers choosing both low products, gluten free lines and plenty of meat- health foods. opportunity to reduce this harm. This in a timely manner, and that our teams are free alternatives for customers looking to alcohol beer and low alcohol wine since In late FY20 our Macro Organic brand was commitment was evident during New aware of their responsibilities. make some changes to how they eat. Zealand’s COVID-19 response, where there we increased our range of these products. Making own brand awarded with the Organic Week Aotearoa was an increase in alcohol related incidents We have continued to refine our processes We have significantly grown our zero Where we can, we’re also making it easier for products healthier Brand of the Year. The awards seek to in the community. Well-ahead of the Level and team training to ensure there are no per cent and our low and lighter options customers to make informed choices and the reward and promote outstanding farmers, 4 lockdown, Countdown, working with the breaches across our 183 stores. In FY20, range. We are working with our suppliers Health Star Rating is a big part of this. We’ve We have continued to improve the manufacturers and producers for their NZ Police, decided to place a limit of four we had one breach of the Act recorded so we can bring new lines to the market continued to put the Health Star Rating on nutritional content of more than 280 exceptional work using certified organic on all alcohol products and this remained against us for sale of alcohol to an and ensure they are ranged in Countdown our own brand products and currently 99 per own brand products in everyday food practices across New Zealand. To win, we in place until the country moved to alert intoxicated person, which led to a five-day supermarkets as a true alternative for cent of them proudly display it. More than categories such as bread, breakfast successfully demonstrated the contribution level two. We were the only New Zealand licence suspension. customers. We will be continuing to half of these have a Health Star Rating of 3.5 cereals and processed meats. 75 per the Macro Organic brand makes to the local introduce more low and zero alcohol stars and above. organics sector through our efforts to tell the supermarket to put a limit like this in place. Following this suspension, we undertook cent of our own brand products meet options in FY21. the Heart Foundations HeartSAFE stories of our growers and the clear labelling a review of our team training and made We also want to help our online customers targets - including our recently launched we use on Macro products, making them easy further refinements to help prevent future make healthier choices too. We’ve recently chilled soups and frozen pizzas. for customers to find in our stores. partnered with Spoon Guru to launch online