Iceland Foods

(Investor analysis not provided as not a publicly listed company)

Analysis summary

(Scores closer to outer rings of spider diagram represent better performance)

Product & supply chain analysis:

Sector comparison:

Detailed analysis and data sources:

Theme Company commitments and data (in public domain unless specified) Score Data source & further information & P/S Health & Nutrition Nutritious products & services Target for sales-weighted % Striving to comply with targets from Public Health England on reducing fat, Company website increase in menu/ products salt and sugar. •P meeting agreed nutritional Reduced sugar content by 200 tonnes in own brand ice creams. standard Company feedback: We reported to PHE year 1 and agreed for PHE to publish our year 1 and 2 on the PHE website. We have Iceland technical policies which give guidance to suppliers on the limits on saturated fat, <5g/100g or 6g/portion, and sugar <12.5g/100g or <15g/portion. Our targets are not publicly available. Target for increase in fruit & Following a pilot project across 36 stores and to demonstrate that families Company website veg as % of food will eat an extra portion of fruit and vegetables a day if it is the first thing •P procurement they encounter when entering a store. Company feedback: Iceland recommends suppliers should increase the fibre levels within own label products by the addition of fruit and vegetables and the use of wholegrain cereals. Iceland has adopted the principles of the Government’s 5 a day scheme and will show on pack if a product contains either 1 or 2 portions of 5 a day fruit or vegetables. We will also show this on composite products based on the IGD scheme. Targets are not publicly available. Target for % of protein Vegan range: No Bull Burger was the bestselling new product in 2018. Company website procurement from animal & Trialling vegan desserts. •P plant-based foods Company feedback: Targets are not publicly available. Iceland’s No Meat brand is the largest frozen vegan range in the market. We have doubled the vegan range this year. Encouraging healthy & sustainable diets Company strategy for This year we are relying on the ATNI UK Supermarket Spotlight % score for ATNI Supermarket Spotlight 2020 infant and young child the same topic. ATNI score: 0% • nutrition Company strategy for This year we are relying on the ATNI UK Supermarket Spotlight % score for ATNI Supermarket Spotlight 2020 promoting healthy the same topic. ATNI score: 16% • choices through in-store promotions Company strategy for This year we are relying on the ATNI UK Supermarket Spotlight % score for ATNI Supermarket Spotlight 2020 responsible marketing the same topic. ATNI score: 0% • Company strategy for This year we are relying on the ATNI UK Supermarket Spotlight % score for ATNI Supermarket Spotlight 2020 intuitive nutrition labels the same topic. ATNI score: 0% •P

Theme Company commitments and performance in the public domain Score Data source & further information & P/S Environment Climate change Target for scope 1 & 2 Target: Commitment to identify priorities, develop solutions and Company website emissions reduction implement changes to cut the carbon, water and waste associated with • (Science-based target) food and drink by at least one-fifth by 2025. Working on a carbon reduction plan with a view to public reporting of our energy and carbon emissions from the end of 2019. Company feedback: Iceland’s Carbon Commitment and progress so far will be published w/c 6th July at sustainability.iceland.co.uk. We have reduced our carbon footprint by 74% since 2011. We are on track to achieving net zero carbon by 2042 and are taking action to bring our target date forward (re: scope 1 & 2) Target for scope 3 emissions Target: Commitment to identify priorities, develop solutions and Company website reduction (Science-based implement changes to cut the carbon, water and waste associated with •S target), specifically food in food and drink by at least one-fifth by 2025. supply chain Company feedback: We are working towards measurement and reduction of scope 3 emissions with industry partners. Biodiversity Target for zero net land-use End of 2018: had ended the use of palm oil as an ingredient in all Iceland Company website conversion through own label food. Member of the RSPO. •S company's reliance on palm Had temporarily removed some product lines as the suppliers were unable oil as a product or an to reformulate by the deadline. These products were re-introduced in April ingredient. 2019 when palm oil was no longer an ingredient. Target for zero net land-use Recalculated Iceland’s soy footprint, and it is actually 20,252 tonnes, not Company website conversion through 60,000 as previously reported. This has been updated on our website. •S company's reliance on soy as https://sustainability.iceland.co.uk/news/taking-action-on-soy/ in animal feed. Target for zero net land-use We found no mention of beef-related deforestation risk or targets for zero Company website conversion through land-use conversion from beef. •S company's reliance on beef. Sustainable food production practices Target for % of wild-caught Farmed fish: aim to meet the standards set by GAA, BAP, G.A.P and ASC. Company website or farmed fish & seafood Wild-caught: Suppliers of Iceland own brand fish and seafood are •S certified to higher encouraged to use practices that minimise discards and that avoid capture sustainability standards of immature or undersized fish. A risk assessment must be undertaken to identify the environmental impact of the fishing, including seabed damage and protected areas. 2019: launched a new range of MSC certified labelled products across all stores. Company feedback: 14 own label fish products out of a total potential of 25 wild caught fish products are MSC certified. These are marked with the MSC logo on pack. MSC have noted Iceland as one of the “most improved” retailers in the UK, having increased our certifications from just 1 SKU to 14 SKUs in just 18 months. Alongside MSC, we also have a large range of ASC accredited farmed products, particularly Basa, but this is not currently labelled on pack. Target for % of products Working to protect UK pollinators through our Backyard Nature campaign, Company website produced under sustainable which is funded by the Iceland Foods Charitable Foundation and supported •S production practices and by NGOs monitoring. Water use Target for water use No mention found. Company website reduction in operations Company feedback: We have not set a target for water in our own • operations. As we do not have our own farms or factories, we use very little water compared to other supermarkets. In our stores and head office, water is only used for toilets, kitchen and break areas and cleaning and gardening. Target for reducing % of food No mention found. Company website sourced from water stressed •S regions. Food waste Company has policy to help Plans to step up advice on meal planning, portion sizes, storage and recipes Company website customers reduce food to use up left-overs. Help customers understand how to cook from scratch •P waste of purchased products using frozen food, to minimise waste while choosing a healthy diet. Company feedback: Iceland has partnered with Birds Eye to promote frozen food and its potential to reduce food waste. The campaign is supported by WRAP and BFFF. Target for % reduction in Target: Reduce food and drink waste by 20% by 2025 and aim to publicly Company website operational food waste. report on food waste in 2020 as currently refining measurement of unsold •P Food waste report food. Company feedback: We have published our Food Waste Report 2019 on our website, detailing how we’ve achieved a 23.2% reduction of food waste in our own operations in the last two years. Target for % of suppliers Work with suppliers to minimise the amount of waste food Iceland Company website being engaged to reduce generates by ensuring that do not carry excess stocks of perishable lines. •S food waste in supply chain Use ‘wonky veg’, avoiding waste caused by the quest for perfect-looking vegetables in fresh displays. Plastics Target for % plastics Target: Commit to eliminating plastic packaging from own label food range Plastics report packaging that is recyclable. by 2023 and 10% reduction in the overall packaging footprint by the end of •P 2023. Reduced 29% on own label plastic packaging usage in January 2018. (3,794 tonnes our of 13,000 tonnes) Reduced more than 80% of plastic packaging in ready meals. Carried out a plastic-free product trial over 3 months in 2019 and the learning to guide plans in 2020z. No target for recyclability of plastics. Target for reducing single- 2018 – commitment to be plastic free on own label products by end of Plastics report use plastics without creating 2023 •P a food waste risk End of 2019 – 3,795 tonnes removed from the 13,000 at the outset No longer using (production) black plastic packaging – Jan 2020 No longer using PVC packaging – March 2020 Removing Polystyrene, 13 products left, polystyrene free by end of 2021

Animal welfare & antibiotics BBFAW tier position or Work with suppliers to ensure high standards of animal welfare based on Company website Target for % of animal the Five Freedoms endorsed by the Farm Animal Welfare Council: •S products certified to high 1. Freedom from hunger and thirst by ready access to fresh water and a animal welfare standards. diet to maintain full health and vigour. 2. Freedom from discomfort by providing an appropriate environment including shelter and a comfortable resting area. 3. Freedom from pain, injury or disease by prevention or rapid diagnosis and treatment. 4. Freedom to express normal behaviour by providing sufficient space, proper facilities and company of the animal’s own kind. 4. Freedom from fear and distress by ensuring conditions and treatment which avoid mental suffering.

CCTV must be monitored on a very regular basis by personnel who have been trained in accordance with the relevant Welfare of Animals (Slaughter or Killing) Regulations (WASK) and the Welfare of Animals at the Time of Killing Regulations (WATOK). Any legal animal welfare breaches must be highlighted immediately to the Iceland Technical Manager Target for zero supply chain Company feedback: Iceland’s policy does not permit the use of antibiotics Company website use of antibiotics as a as a growth promoter or for inappropriate prophylactic use. •S prophylactic or growth promoter

Theme Company commitments and data (in public domain unless specified) Score Data source & further information & P/S Social Inclusion Company recognises the Front-line colleagues benefited from a 3% pay increase in April 2018 and a Company website need for a real liveable wage further 2% pay award in October to increase the differential between • for all employees Iceland’s pay and the National Living Wage for those aged over 25; Company feedback: We have no immediate plans to sign up to the Real Living Wage. The business has always been committed to paying its staff as well as it can afford. Frontline colleagues (outside the M25) were awarded a pay increase in April 2020 from £8.38 to £8.72. During COVID-19, all frontline colleagues were also awarded a 10% bonus in May. Target for % of supply chain Has policy on human rights in supply chain. Company website engaged to ensure human Require all suppliers to comply with Iceland Worker Welfare Policy. •S rights and labour rights, All overseas Iceland own label suppliers are monitored through approval beyond tier one. visits and monitoring of initial production runs. Seek to ensure that they comply with internationally recognised standards to protect the health and welfare of their employees. Remain committed to working with third parties, including the BRC and GLAA, and to developing relationships with other bodies including Stronger Together and relevant NGOs and initiatives.