Sustainability Report 2012 Building a Better Society Our Co-Operative Difference
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Sustainability Report 2012 Building a better society Our co-operative difference The Co-operative Group stands apart from other major businesses in the UK as an organisation which is owned by over 7.6 million individual members and in the region of 80 Independent Co-operative Societies. Our purpose Our vision Our aims To serve our members by carrying To build a • To be a commercially successful business on business as a co-operative better society • To meet the needs of our customers and the in accordance with co-operative by excelling in communities we serve Values and Principles. everything we do. • To respond to our members and share our profits In order to achieve this • To be an ethical leader vision, we have set • To be an exemplary employer ourselves a number of strategic aims: • To inspire others through co-operation. Our business is guided by the Values and Principles of the Co-operative Movement: Our membership Values • Our business is run for the benefit of our members Co-operatives are based on the values of • Membership is open to everyone self-help, self-responsibility, democracy, equality, • Profits are shared amongst members equity and solidarity. In the tradition of their founders, co-operative members believe in the • Members exercise democratic control of our business (page 74), ethical values of honesty, openness, social and play a direct role in shaping our future. responsibility and caring for others. Our governance Principles We are owned and democratically controlled by our members, who The co-operative Principles are guidelines by elect representatives to oversee our business. There are several which co-operatives put their values into practice. levels to our elected membership structure (page 75), from area They are: committees to our Group Board, which is entirely non-executive. • Voluntary and open membership The Group Board is responsible for our long-term success. It elects, • Democratic member control and is led by, the Group Chair. And it also appoints the Group Chief • Member economic participation Executive, who has direct responsibility for the Group on a day-to- • Autonomy and independence day basis, and is accountable to the Board for the financial and • Education, training and information operational performance of the Group. • Co-operation between co-operatives Three Subsidiary Boards are responsible for our major business • Concern for community. units – The Co-operative Food, The Co-operative Banking Group and Co-operative Specialist Businesses. Cover image: All The Co-operative Food’s bananas are Fairtrade and 55% are sourced from smallholder farmers. 16 years of open and honest sustainability reporting What matters How we Building a most compare to better society our peers The Report is split into 20 subject We believe that better sense can Our vision is to build a better society. areas, relating to our most material be made of how we’re doing if This Report sets out how we seek sustainability issues. Each details performance can be compared to that to take the lead on issues such as our performance – good and bad – of our peers. That’s why, in line with community engagement and social against targets, many of which are our commitment to transparency, we inclusion (introduced on pages 8 and derived from our Ethical Plan E.P. include 40 performance benchmarks 36 respectively). Whilst we recognise Where appropriate, we provide throughout this Report that highlight that no business can lead on every four years of comparable data1 to not just where we lead, but also aspect of sustainability, over the allow readers to understand our where we strive for improvements. years, we’ve adopted numerous performance over time. pioneering approaches, and challenged others to follow. Inside this year’s Report Social responsibility Ecological sustainability Delivering value 8 UK communities 48 Climate change 74 Membership and 12 International development 57 Waste and packaging democratic control and human rights 61 Water 79 Supporting co-operatives 20 Animal welfare 63 Biodiversity 83 Economic impact 25 Diet and health 69 Chemicals 85 Employees 30 Responsible banking and finance 90 Customers 36 Social inclusion 94 Suppliers and sourcing 40 Diversity 96 Public policy 43 Inspiring young people 2 Chair’s overview 100 The Co-operative at a glance 3 Chief Executive’s overview 101 Managing sustainability 4 Performance overview 105 Independent assurance statement 6 Expert commentary 113 About this Report The Co-operative Group Sustainability Report 2012 1 Chair’s overview Chair’s overview “With our customer-led ethical policies and member- led Ethical Plan, our customers and members are perhaps more firmly embedded in living our Values Chief and Principles than at any other time.” Executive’s overview Against a backdrop of economic turmoil And today is no different. The last few Going forward and a pervasive mood of uncertainty there years at The Co-operative Group have And now we start a new chapter in are some things that our customers and arguably been amongst the most dramatic The Co-operative story, with the welcoming members know they can rely on. and exciting in our long history. of our new Chief Executive Officer, Performance overview Since our formation, our Values and Our membership today is 7.6 million strong Euan Sutherland. Euan has already made Principles have underpinned and guided of whom 5.5 million shared in our 2012 his mark as a Non-Executive Director on our decision making. profits, up from 1.7 million, five years ago. our Food Board and brings a wealth of retailing experience. And with our customer-led ethical Our vision is to build a better society. policies and member-led Ethical Plan, Since the start of the downturn we’ve As we move forward, it may never our customers and members are perhaps helped to channel over £90m into our local have been more important for me to Expert more firmly embedded in living our Values communities and we’re working to support reinforce the Group’s commitment to and Principles than at any other time. 12,000 projects a year, that’s more than robust governance, sound reputation commentary one every hour of every day. Which means management and clear ethical standards. This member-led approach is what makes that today we’re doing more to support our us different. It ensures that the millions of Our Values and Principles have ensured communities than ever before. members who trade or bank with us have that we have remained relevant for over a say: on grassroots issues via our area What’s more, our colleagues, customers 150 years and will continue to do so for committees and regional boards to issues and members are central to our vision future generations of co-operators. of national and international importance and, as set out in this Report, we continue via our national Boards. to deliver on our aims to be an exemplary employer, to respond to our members and For over 150 years we’ve prospered to meet the needs of customers. by being able to respond and adapt to changing economic, social and political I am always immensely proud of the work Len Wardle environments. Indeed our history is littered we do and this Report is invaluable reading Chair with examples of where we’ve led on such to anyone who wants an appreciation The Co-operative Group matters: be it in providing votes to women of the challenges that arise in running a before universal suffrage, to selling fairly diverse, multi-billion pound business in traded products before the Fairtrade Mark a responsible manner. Good or bad, we existed, launching ethical banking or being report our impacts on everything from one of the first businesses to recognise the environment to animal welfare, from and respond to climate change. people’s diet and health to diversity. Because that is what our members want. 2 The Co-operative Group Sustainability Report 2012 Chief Executive’s overview Chair’s overview “For over 150 years, our co-operative approach has meant that we can balance short-term and long-term decisions for the benefit of our business, Chief our members and the communities we serve.” Executive’s overview As the new Chief Executive of Performance overview Our Specialist Businesses had another The Co-operative Group I am delighted good year, our Pharmacy became the In 2012, our UK community investment to provide the overview to this, our latest first UK pharmacy to achieve carbon totalled £18.3m and funded a diverse in a long line of Sustainability Reports. neutrality and, on the back of its revised range of initiatives, many in some of the Ethical Strategy, our Funeralcare business Performance overview Of course, from my time on the most deprived communities in the UK. launched a range of fairly traded coffins. Co-operative Food Board I knew that I So that, to date, we’ve supported 1,000 would be leading a great business that co-operative enterprises, 300 co-operative Our new flagship building in Manchester has social responsibility in its DNA. schools and 1.2 million young people was opened at the start of 2013 and have benefited from our Inspiring Young has been recognised as one of the Yet, in the short time that I have been in People programme. most sustainable office buildings in the my new role, I have been taken aback world. We have continued to reduce our by the extent to which our Values and Our food business delivered a solid Expert greenhouse gas emissions across the Principles are embodied, not just in the financial performance and launched its family of businesses; indeed we have now commentary fabric of the business, but in the attitude new strategy with a commitment to the achieved a 43% reduction in emissions, and approach of our colleagues.