The Way We Do Business 2014 CORPORATE SOCIAL RESPONSIBILITY REPORT Message to Stakeholders CSR at Loblaw CSR Focus Performance
Loblaw Companies Limited is Canada’s food and pharmacy leader, the nation’s largest retailer and one of its largest private sector employers. Our strong commitment to corporate social responsibility (CSR) defines the way we do business and the role we aim to play in society. Message to Stakeholders CSR at Loblaw CSR Focus Performance
Table of Contents 3 Message to 10 Stakeholders CSR Focus
Health and Wellness 11 Waste and Packaging 20 Giving Back to Communities 25 Sustainable Sourcing 14 Energy Efficiency 23 Developing Our People and Culture 28 5 Animal Welfare 18 CSR at Loblaw
Our Impact 6
CSR Governance 7 Stakeholder Engagement 8 30 Performance
2014 Targets and Achievements 31 Awards and Recognition 41 2015 Targets 39 Contact Info/Feedback 42
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 1 Message to Stakeholders CSR at Loblaw CSR Focus Performance
About This Report
This is our eighth annual corporate social responsibility Reporting Initiative (GRI) guidelines (CSR) report. It details the CSR performance of our is voluntary, we continue to refer to the GRI principles and disclosures to corporate stores, distribution centres and store support ensure that we are taking a focused and centres for our 2014 fiscal year. thoughtful approach in reporting our CSR metrics and results.
Our previous CSR report was published Shoppers Drug Mart was acquired by All CSR plans and stated goals, targets, We welcome feedback from in May 2014. There have been no Loblaw Companies Limited (Loblaw) in objectives and results were reviewed by our readers and invite you to significant changes in the scope of March 2014. We expect to include more select members of Loblaw’s Disclosure complete our survey. our reporting or the data measurement of Shoppers Drug Mart’s performance Committee and Legal department. In www.loblaw-reports.ca/survey methods applied since that report. Where in future CSR reports. addition, our Internal Audit Services franchisee, third-party, T&T Supermarkets department audited certain targets and If you have questions or would like and Shoppers Drug Mart information has Transparency is important to us, and results included in this report. more information, please email us been included, it is indicated as such. though reporting against the Global at [email protected].
Symbols Key How to Use This Report
Link to menu CLASSIC METHOD You can read the CSR report as you Link to previous page would a regular book: start on page 1 and navigate page by page to the end. Link to next page To do this, use the arrow keys in the top left-hand corner of each page. Link to Targets and Achievements
Target met SELECTIVE METHOD Target almost met or on track You can also go straight to specific topics using the web-like navigation. Target not met or at initial stages Click on the menu key in the top left-hand corner of any page to take you back to the table of contents, or on any of the main section titles running across the top of the page to go directly to a section.
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Message to Stakeholders “ Across Loblaw Companies Limited, we understand the breadth of our impact and influence.”
GALEN G. WESTON Executive Chairman and President, Loblaw Companies Limited
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This report summarizes our CSR activities for 2014, a As you navigate through the pages of this challenges of global sourcing than year that happens to mark the 25th anniversary of one report, I hope you’ll pay special attention ever before. Throughout the year, we to three areas that represent our focus worked on a new Loblaw supplier code of Loblaw’s first acts of CSR. in CSR: of conduct, with greater specificity on various working conditions and rights, Health and Wellness: Historically, In 1989, we launched the PC G.R.E.E.N • 62 rooftop solar projects in Ontario coming into effect in 2015. many of Loblaw’s CSR activities and line of products, deemed better for our • President’s Choice Children’s Charity commitments relate to President’s Energy Efficiency: As evidence of environment’s health. A quarter century marking 25 years and $116 million Choice, the nation’s number one food climate change mounts, it is impossible ago it was industry leading and quite granted brand. This continued in 2014 when not to feel concern for the future of our possibly North America’s first “eco- we announced a new pledge to reduce planet. As the leader of a business friendly” brand. Today, we can reflect on These and other CSR activities are sodium levels by 20% across hundreds that relies on agriculture, water, food it as a bellwether for Loblaw’s many CSR guided by both the knowledge and the of products, and achieved an existing production, shipping and the operation commitments that would follow. input of scientific advisors, as well as pledge to remove all artificial flavours of large facilities, I understand the our customers. We have structured this and artificial colours from President’s imperative to change. I am proud of Like PC G.R.E.E.N, our corporate report to reflect feedback from our many Choice products. Consumers are our progress on carbon reduction, actions continue to address current and varied stakeholders – including thinking more and more about the which has consistently improved since issues that are important to our non-governmental organizations (NGOs), food they eat and, in the case of artificial 2011, through better fleet and energy customers and business – but always academics and industry leaders. with a long-range view. Though our colours, many are concerned about their management and investments in efficient focus will evolve around the most Across Loblaw Companies Limited, we suggested link to hyperactivity and other lighting and refrigeration. While this report pressing concerns and immediate understand the breadth of our impact conditions. By removing colours that is retrospective, our attention to carbon opportunities, certain themes are and influence. In 2014, we expanded don’t occur in nature, our President’s emissions will increase in years to come. constant: the environment, local and that scope, with the significant addition Choice products now offer concerned We offer this report to demonstrate our global communities, our people, of Shoppers Drug Mart. We look consumers an option. We are proud of transparency and encourage further and the many ways we achieve our forward to reporting more fully on this achievement and continue to look dialogue. As always, I appreciate your company purpose – Live Life Well. In Shoppers Drug Mart’s CSR activities for opportunities to do even more. feedback at [email protected]. 2014, these initiatives were seen in in our next report. However, within Sustainable Sourcing: In 2014, we various achievements: these pages, you can already see our established higher standards for ethical anticipation and enthusiasm for the • Expansion of the Guiding Stars® supplier production and facilities. More influence those operations will have nutrition rating system importantly, we assembled a team on on our communities and the health the ground in some developing regions • 64 dietitians now in 159 stores of Canadians. Shoppers Drug Mart where our global production occurs – has already elevated the impact of Galen G. Weston • Canadian-First policies promoting covering countries like Vietnam, Executive Chairman and President Loblaw’s community involvement and more Canadian goods Cambodia and Bangladesh – providing long-standing commitment to customer factory oversight and responding to • Surpassing seven billion plastic well-being. concerns with greater local knowledge. shopping bags eliminated We are now better able to address the
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CSR at Loblaw We strive to be an exemplary corporate citizen and to use our scale to tackle some of society’s toughest challenges.
Our Impact
CSR Governance
Stakeholder Engagement
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Recognized as one of 195,000 Canada’s Top 100 Employers for the 6th Developed healthier and FULL-TIME AND year in a row Our Impact greener product choices PART-TIME EMPLOYEES Every day, Loblaw touches the lives of millions of people throughout our supply chain and in our stores, workplaces and communities. We aim to have a positive impact in every interaction.
Expanded free-run eggs offering
Offered sustainable Joined the executive council Appointed Loblaw scientific Completed lighting retrofits seafood products of the Canadian Roundtable advisor on animal welfare 27 in 8 distribution centres for Sustainable Beef DISTRIBUTION Shipped fresh produce to and CENTRES from distribution centres using reusable plastic containers
Introduced the Loblaw Water Fund Eliminated 7.3 billion ASSOCIATE-OWNED SHOPPERS to help conserve, protect or restore PCCC provided grants to programs plastic shopping bags 1,302 DRUG MART/PHARMAPRIX STORES freshwater habitats that aim to fight childhood hunger since 2007 29 BANNERS 1,142 CORPORATE AND FRANCHISED GROCERY Granted $9.5 million to Administered Personalized one-to-one Donated fresh perishable STORES support women’s health flu shots offers to earn points on the food to local food banks and well-being items purchased most and food rescue programs Loblaw Companies Limited 2014 Corporate Social Responsibility Report 6 Message to Stakeholders CSR at Loblaw CSR Focus Performance
CSR Governance
Loblaw is committed to advancing the principles of CODE OF CONDUCT SHARED VALUES transparency, accountability and sound corporate We are committed to honesty, integrity Our values reflect what is important and fairness in all that we do. Our in our organization and guide our governance. Code of Conduct provides a framework behaviours. for ethical behaviour based on our Our Board of Directors oversees the management and affairs of the company. shared values and applicable laws and Among its responsibilities, the board sets the tone for a culture of integrity and regulations. All employees must review, compliance throughout the company, and monitors and reviews reports on policies understand and abide by the Code, and practices related to CSR. as well as the supporting policies and procedures. Employees must The CSR Committee is responsible for leading CSR within the company. The also take reasonable steps to ensure committee is made up of senior executives from various areas of the business, who that vendors understand and comply develop the priorities, metrics and accountabilities within each of the company’s five with the Code and the accompanying CSR pillars. The committee is chaired by the Senior Vice President of Corporate Affairs supplier code of conduct. and Communication. www.loblaw.ca
How We Think About CSR Loblaw’s purpose – Live Life Well – puts the needs and well-being of all Canadians first.
Our CSR commitments link to our business through five pillars. Targets were established for each pillar in 2014 and performance is reported on pages 30 to 38.
Seven focus areas were also identified and they are discussed on pages 10 to 29.
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Stakeholder Engagement
Stakeholder engagement is an essential part of • Governance – We have expanded • Collaboration – We have listed the our CSR approach. It involves listening to others, the discussion on governance and key organizations and individuals accountability, with more information with whom we partner (see page 9) seeking expert advice and collaborating with a range on our CSR governance framework and in the section on CSR focus of organizations with aligned interests to develop and stakeholder engagement areas we have provided more processes. See CSR at Loblaw on examples of how we are collective solutions. pages 5 to 9. collaborating to drive change.
Influential Stakeholder branches of government and trusted “ I think Loblaw is really looking at the issues Interviews CSR/sustainability advisors. it knows it can deal with and is dealing with Each year, we conduct interviews Their feedback has helped shape this them in a substantial way, with incremental with a panel of influential external year’s report in key ways: stakeholders. Their input informs our • Report Structure – We have improvements. In the Canadian landscape, it is CSR report content and our overall structured the bulk of the report CSR strategy. one of the leading companies in this space.” around CSR focus areas – these are Andrew Crane, Schulich School of Business In 2014, we interviewed senior the topics we believe are of most representatives from key suppliers, relevance to our customers and retailers, academic and industry colleagues, and are most impacted organizations, regional and international by our business. See CSR focus Local sourcing non-governmental organizations (NGOs), areas on pages 10 to 29. Healthier food choices Waste and packaging reduction Consumer Research In 2014, research indicated that local Research indicates that Loblaw is sourcing, healthier food choices, and seen as a relatively strong performer Animal welfare For the past four years, we have waste and packaging reduction matter on CSR initiatives, primarily for our engaged a third-party research firm to most to consumers. All of these topics work in sourcing practices, particularly conduct an online survey of Canadian are discussed in the report, along with in areas such as sustainable seafood consumers to find out which CSR issues animal welfare which rose considerably and locally grown produce. matter most to them and how well they and was ranked in the top five CSR think we are addressing these topics. priorities.
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CSR at Loblaw | Stakeholder Engagement
Partnerships and Industry Roundtables/ • Accord on Fire and Building Safety in Bangladesh Scientific Advisors Coalitions/Agreements • Canadian Roundtable for Sustainable Beef Loblaw works closely with the scientific Industry Alliances • Global Sustainable Seafood Initiative community on many CSR issues As a large retailer, we face a wide • National Farm Animal Care Council and partners with scientific advisors range of issues and challenges. • Roundtable on Sustainable Palm Oil for expert opinion and guidance in Many are complex, systemic and specific areas. increasingly global in nature. By Associations • Canadian Stewardship Service Alliance collaborating with industry peers, • Conference Board of Canada Dr. David Fraser governments, academia and • The Consumer Goods Forum University of British Columbia non‑governmental organizations, • Fisheries Council of Canada Animal welfare we aim to make a positive, • Food Marketing Institute sustainable impact in these areas. • PAC-Packaging Consortium Dr. Jeff Hutchings • Retail Council of Canada Dalhousie University • Sustainability 50 Sustainable seafood • SustainAbility’s Engaging Stakeholders Network Dr. David Jenkins University of Toronto Non-Governmental • Anaphylaxis Canada Health and wellness Organizations • Canadian Diabetes Association • Canadian Red Cross Dr. Ralph Martin • CARP – A New Vision of Aging for Canada University of Guelph • Compost Council of Canada Loblaw Chair in Sustainable • Food Banks Canada Food Production • The Food Institute, University of Guelph Dr. Nigel Raine • Friends of the Centre for the Rehabilitation of the Paralysed University of Guelph Pollinator conservation • Hypertension Canada • Jane Goodall Institute of Canada Dr. Rick Smith • La grande guignolée des médias Broadbent Institute • Osteoporosis Canada Chemicals of concern • Recycling Council of Ontario • Save the Children Bruce Lourie • Second Harvest President, Ivey Foundation • Trans Canada Trail Chemicals of concern • Tree Canada • UNICEF Canada • WWF-Canada
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CSR Focus Through stakeholder engagement, consumer research and internal discussion, we have identified areas of focus based on their importance to Canadians, their relevance to our business, the potential for Loblaw to take a leadership position on the issue, and the urgency of the issue.
Health and Wellness Energy Efficiency
Sustainable Sourcing Giving Back to Communities Animal Welfare Developing Our People W aste and Packaging and Culture
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Health and Wellness Loblaw’s purpose – Live Life Well – puts the health and wellness needs of Canadians first. If left unaddressed, the long-term costs of chronic illness will place tremendous pressure on our health care system. That’s why high-quality, accessible pharmacy services and health care products are BHAVIKA PRAJAPATI B.SC.PHM more important than ever. Associate-Owner, Shoppers Drug Mart With the acquisition of Shoppers Drug Mart, we plan to build on our position as Canadians’ first “As the associate and leader choice for health, wellness and nutrition through of the pharmacy team, I know a greater combination of value, selection and that we make a big difference service, and more than 2,400 convenient locations in the lives of our patients. close to where our customers live and work. We do much more than fill prescriptions – we review our patients’ medications, help them to manage chronic conditions 1,797 pharmacies Guiding Stars® and provide valuable nutrition across Canada 788 Loblaw stores offer and lifestyle counselling. The the Guiding Stars nutrition result is better health for our rating system patients and a more sustainable health care system.”
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CSR Focus | Health and Wellness
Health Care Services patient access to medication reviews, allergy management programs, recognizing that many aging adults in partnership with the Canadian Loblaw and Shoppers Drug Mart are on multiple medications at once Diabetes Association, Hypertension pharmacists share a passion for for various conditions. A new poll of Canada and Anaphylaxis Canada. improving the health of Canadians. CARP members found that one-third are Loblaw pharmacists and dietitians also They fill prescriptions, help customers currently taking four to five medications teamed up with Osteoporosis Canada monitor and manage chronic diseases, at once, which is worrisome given to promote bone health awareness, and increasingly provide health services that being on numerous medications providing health education and such as medication reviews, over-the- can increase the risk of adverse drug conducting bone health assessments. counter counselling and flu shots. Their reactions, negative drug interactions, contributions help improve patient improper dosing, and medication With the acquisition of Shoppers outcomes, reduce costs and ensure the adherence issues. During reviews, Drug Mart, there are more than sustainability of the health care system. pharmacists walk through the 1,700 pharmacies in our network of 1,065,412 stores. Our store network is evolving to In 2014, Shoppers Drug Mart ran a medications a person is taking and flu shots serve as community health and wellness medication management campaign explain how best to use them and how were administered by Loblaw and centres. In addition to 159 optical to encourage seniors and people to avoid potential side effects. Shoppers Drug Mart pharmacists clinics and 64 dietitians operating inside with chronic conditions to have a In addition to medication reviews, our our stores, we partner with 137 medical medication review with their pharmacist. pharmacies offered blood pressure clinics, 49 GoodLife Fitness Clubs and The Sustainable Solutions report monitoring, diabetes and cardiovascular three Énergie Cardio Clubs in Quebec. * BC Medical Journal, accessed May 9, 2014. issued by Shoppers Drug Mart and risk assessments, as well as food www.bcmj.org/blog/how-do-you-solve-problem-medication- CARP* showed the need to improve non-adherence
64 dietitians ✓ Individual customer consultations educate and support customers in 159 Loblaw stores ✓ In-store nutrition and food advice ✓ School grocery store tours Our Dietitians In-store dietitians educate and support ✓ Food demonstrations customers in choosing foods that ensure a nutritious diet. We introduced ✓ Nutrition support through phone and email 19 dietitians in our stores in Atlantic Canada in 2014, bringing the total ✓ Community outreach to 64 dietitians in 159 Loblaw stores. For the year, our dietitians provided:
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CSR Focus | Health and Wellness
® Quality Foods Citrus Red No. 2 dye* – as some studies In 2014, we developed 217 new Guiding Stars have suggested links to childhood control brand products that are within Our commitment to healthy eating is Guiding Stars is a nutrition rating system hyperactivity and other conditions. Health Canada’s recommended most apparent in our fresh food and that rates food products with up to sodium reduction guidelines. We also Natural Value departments. Loblaw three stars based on their nutritional Today, President’s Choice products announced an accelerated plan to offers a large assortment of organics, value. It provides a fast and easy way contain only flavours prepared from reduce sodium levels in 400 President’s produce, meat and dairy products, and for customers to make nutritious food nature, and only colours that are either Choice products by an average of 20% we continue to enhance our selection. choices while they are shopping. Loblaw prepared from nature or produced by the end of 2015. We are also taking strong action to to replicate exactly those that occur is the only retailer in Canada to offer improve the nutrition profile of our in nature.** In all cases, colours and Guiding Stars. Since the introduction in control brand products: flavours are treated for safety, quality and 186,177 kg 2011, we have launched Guiding Stars purity. We are proud of this achievement in 788 Loblaw stores across the country. NO ARTIFICIAL SWEETENERS of sodium removed from and the hard work it required. It gives us We remain on track to meet our 2015 650 control brand products In addition to expanding the program into a foundation to engage suppliers and target of replacing artificial sweeteners since 2010 more stores, we are working with vendors government, and to better inform and like acesulfame-K, aspartame and to get more products rated using Guiding serve Canadians seeking more naturally sucralose in President’s Choice * There are 10 synthetic colours approved for Stars’ patented scientific algorithm. In sourced food products. use in Canada that do not occur in nature. products with stevia, which has up President’s Choice products use none of them. the rating process, foods are credited to 300 times the sweetness of sugar. SODIUM REDUCTION ** Natural flavour and colour ingredients can for vitamins and minerals, dietary fibre, We completed the full range of PC Blue Since 2010, we have eliminated sometimes be difficult to use in commercially whole grains and omega-3 fatty acids, Menu products in 2013. prepared foods because they can be unstable and debited for trans and saturated fats, 186,177 kilograms*** of sodium across and impure. Further, natural flavour and colour 650 products under our President’s ingredients undergo some treatment, like added sodium and added sugars. To NO ARTIFICIAL FLAVOURS Choice and no name brands. We extraction or distillation, for quality assurance. date, more than 50,000 products have AND COLOURS have done so by assessing our *** Data comprises unit sales. been rated across all food categories. In 2014, we achieved our pledge to control brand products against Health remove from all President’s Choice Canada’s recommended sodium products any artificial flavours and reduction guidelines. We then identified artificial colours. Though they are “Over the past couple of years, the Government which products require less sodium approved for use in Canada, Canadians to meet the guidelines, while still of Canada has taken a stand on sodium are particularly concerned about maintaining the functionality, food artificial colours – like tartrazine and consumption – establishing voluntary reduction safety and taste our customers expect. benchmarks for the industry while at the same time acknowledging the challenges. We applaud the government. And, we are committed to being a champion of these efforts.”
Galen G. Weston, Executive Chairman and President, Loblaw Companies Limited
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Sustainable Sourcing Climate change, population growth and human activity are putting enormous strain on land, water and biodiversity resources – in Canada and around the world. By sourcing sustainably, we aim to conserve our resources and improve the social, economic and environmental impacts of our AKLIMA NIPA Manager, Offshore Compliance, supply chains. Bangladesh, Loblaw Companies Limited Our strategies and processes continuously evolve with changing consumer expectations, “I work with local factories in regulatory requirements and emerging risk and Bangladesh once their building opportunities. Our commitments drive change in fire and safety assessments the retail industry and we take that responsibility are completed. I review the very seriously. findings and help ensure that remediation plans are compliant. Our goal is to help these factories become safer Joined the executive 159 Marine and more successful.” council of the Canadian Stewardship Council Roundtable for (MSC) certified products Sustainable Beef offered in our stores – more than any other retailer in Canada
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CSR Focus | Sustainable Sourcing
Offshore Sourcing We continued to monitor and evaluate all offshore suppliers using the Loblaw took strong action in the wake internationally recognized Workplace of the 2013 collapse of the Rana Plaza Conditions Assessment (WCA) complex in Savar, Bangladesh, by standard and our own Supplier Code committing $5 million in relief efforts of Conduct. The WCA audits assess and increasing the standards of our labour, wages, hours, health and safety, building fire and safety assessments and work environment. Suppliers that for factories producing our products. do not conform to both the WCA and We were also the first Canadian Loblaw standards are given a time signatory to the Bangladesh Accord on frame in which to make the necessary Fire and Building Safety in 2013, which improvements. If they fail to comply, we legally binds us to factory inspections discontinue the relationship. and improvements. Furthermore, Loblaw’s supply chain In 2014, we extended our building fire built a team of audit compliance and safety assessments for factories in personnel in Bangladesh, Thailand, Thailand, Cambodia, Sri Lanka, Vietnam Cambodia, Sri Lanka, Vietnam and and India. No new factory will be listed India. Each person on the team is as a supplier in these countries unless responsible for the oversight of WCA an assessment is completed. A major audits and building fire and safety Food Safety outcome of these assessments has assessments in their region. been fire and safety training, paid for by We want our customers to have every assurance that the food they buy from us is Loblaw, for managers and employees We also implemented an initiative with safe and meets their expectations. To this end, we introduced enhanced product in the factories. The training covers fire our global logistics service provider to testing and nutrition verification programs in 2014. The programs are aimed at safety protocols and processes such ensure product deliveries are accepted assuring that Loblaw control brand food products consistently meet quality, safety as maintaining fire exits, evacuation only from Loblaw approved factories. and regulatory specifications. procedures and the proper use of a At every port of origin where Loblaw The product testing program requires that all food products be tested at launch fire extinguisher. procures goods from outside of Canada and then annually by a designated third-party testing lab for compliance with product or the United States, our logistics specifications, labelling and claims accuracy. The nutrition verification program provider validates the supplier name requires analytical testing at least every two years to validate the nutrition facts and specific factory name and address table and label claims. against our list of approved factories, which is updated weekly.
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CSR Focus | Sustainable Sourcing
Sustainable Sourcing Strategy Our strategy is aimed at ensuring the sustainability of our supply chains and offering customers product choices that fit their values. This strategy often leads with our control brand products to drive change. SEAFOOD procured from fully certified sources, BEEF As part of our commitment to source sources acceptable with conditions, or Loblaw is the retail lead and executive seafood sustainably, we regularly sources making meaningful progress council member of the newly formed “I’d like to thank Loblaw introduce new sustainable seafood toward sustainability. Canadian Roundtable for Sustainable for their support and products. In 2014, Loblaw was the first Beef, alongside other stakeholders in grocery retailer in North America to offer We continue to partner with vendors the beef value chain. The Roundtable is commitment to source Aquaculture Stewardship Council (ASC) to offer more sustainable seafood focused on ensuring the Canadian beef certified Atlantic salmon. ASC certified products and to educate customers industry remains economically viable, ASC certified seafood. seafood comes from fish farms that are on the importance of buying products environmentally sound and socially By offering consumers responsibly managed and limit their with the Marine Stewardship Council responsible. As part of our participation, adverse impact on the environment. (MSC) and ASC eco-labels on the pack. we helped fund the first national ASC certified salmon, Campaigns like our annual Oceans supply-chain-wide beef sustainability Our work to assess all seafood species/ for Tomorrow event make a difference, assessment and became the retail Loblaw gives them the stocks against our seafood sourcing but we know there is more work to be representative on a pilot project led by opportunity to recognize framework continued in 2014. By year done to educate consumers about the McDonald’s® to create a verification end, 93%* of the seafood products in our measures we can all take to protect our process for sustainable beef. and reward more core seafood categories – frozen, fresh, oceans for future generations. responsible farming as canned and frozen grocery – were
well as contribute to PALM OIL with the Roundtable on Sustainable more than 1,000 control brand products transforming aquaculture Palm oil is common in everyday Palm Oil (RSPO) supply chain models containing palm oil, palm kernel oil, products. However, demand for palm including the purchase of GreenPalm or palm derived ingredients. For our towards sustainability.” oil and its derivatives has contributed to certificates. While we are not alone in food business alone, this represents environmental degradation and raised this commitment, our scale makes this close to 3,800 metric tonnes of palm Chris Ninnes, CEO, Aquaculture social concerns in regions where it commitment that much more significant. oil, more than half of which is used in Stewardship Council is produced. baked goods, making Weston Bakeries We conducted an inventory of our a key partner in this process. To We are committed to supporting control brand food products that * Data does not include T&T Supermarkets and achieve our commitment, we are now Real Canadian Wholesale Club, as well as select sustainable palm oil production for our contain palm oil. The study found that creating work plans with key vendors for franchised stores. control brands, and progressing on aligning more than 100 of our vendors produce implementation in 2015.
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CSR Focus | Sustainable Sourcing
Emerging Issues We understand that some customers with our vendors and experts in the prefer not to consume GE foods. field to build consensus on a collective As a large retailer and owner of four For those customers, Loblaw offers approach to address this challenge. of Canada’s biggest control brands a large selection of organic food as (President’s Choice, Life Brand, no name an alternative. CHEMICALS OF CONCERN and Joe Fresh), we are regularly In the wake of consumer health and faced with new and emerging issues We understand that this remains an wellness concerns associated with that influence consumers’ values and important topic for some customers. certain chemicals in health and beauty behaviours. We need to evaluate these We will continue to track developments and household products, we have issues and ensure our control brands related to GMO and GE foods, and to begun to develop a plan of action are advocating for our customers. Here’s offer customers thoughtful options. for our control brands. Two years where we stand on three emerging issues: ago, Shoppers Drug Mart made We have also established an internal task a commitment to eliminate dibutyl GENETICALLY MODIFIED force that meets with industry experts to phthalate (DBP) from its cosmetic and ORGANISMS (GMOs) advise and inform us on the topic. personal care control brand products. At Loblaw, we’re dedicated to helping Canadian-First customers feed themselves and their POLLINATOR CONSERVATION families in ways that meet their personal We are collaborating with external Our Canadian-First buying strategy standards. We know customers stakeholders to address the issue of gives priority to local and regional have many questions about food – pollinator health, which is of considerable fresh products when the safety, quality, about nutrition, production methods, importance to us. In 2014, we requested availability and value are right for our ingredients and more. One area of the assistance of Professor Nigel Raine, customers. Grown Close to Home is our consideration relates to genetically a leading global expert on pollinators, to premier event to showcase the variety modified organisms (GMOs) and provide scientific guidance and advice of produce grown in Canada. During genetically engineered (GE) ingredients. on the appropriate role that Loblaw, as the campaign, which runs during the a retailer, can assume in reducing the peak growing season (August and Various products sold by Loblaw and risk to pollinators. September), more than 40% of produce other Canadian grocers contain GMO in our stores is Canadian grown. In and GE ingredients. The Canadian We conducted significant due diligence 2014, many of our stores launched the government – through Health Canada – into alternative products and treatments Near You campaign to include Canadian has determined that these are safe. This through consultation with our grower The first-ever Joe Fresh line of producers and artisans of cheese, view is backed up by many scientific community. We have also considered a skin care products was launched in baked goods, meats, seafood and some studies. However, some believe that labelling program to address growing 2014. Formulated and manufactured grocery items. New signage and flyers these studies cannot predict the long- consumer awareness. In all cases, these in Canada, the range is free of highlighted items Baked Near You, term effects of consuming GMO foods, programs present practical challenges, parabens, sulfates and synthetic Raised Near You, Aged Near You and which have been part of human diets including the ongoing likelihood of fragrances. Plus, the products are Picked Near You. for decades. cross-contamination at various points not tested on animals. in our supply chain. We continue to work
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Animal Welfare Loblaw is one of Canada’s largest buyers and sellers of meat, poultry, eggs and dairy products. By promoting industry best practices and working with suppliers and industry partners to promote the ethical treatment of the animals raised for our products, we safeguard food quality and safety, and we drive best practices in our supply chain. DR. DAVID FRASER Loblaw Scientific Advisor on Animal Welfare We are tackling issues associated with animal welfare by collaborating with industry partners, “I see retail companies as bringing in experts and setting targets and action an important bridge between plans. We will work with key vendors to track consumers and producers. progress against the targets and to address If a retail company is well the issues. informed about animal welfare and works cooperatively with animal producers, it can do a lot to stimulate Loose housing for veal Loose housing for pork positive change.” 2018 target date for sourcing 2022 target date for sourcing fresh veal only from vendors fresh pork only from vendors that have transitioned to that have transitioned to loose housing loose housing
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CSR Focus | Animal Welfare
Commitment to Introducing Positive Change Dr. David Fraser Loblaw is committed to ensuring the In 2014, Loblaw engaged Dr. David animal products we sell are safe, high- Fraser as our scientific advisor on quality products produced in a humane animal welfare. Dr. Fraser has served manner. At the same time, we recognize as an advisor on animal welfare for that there are significant implications the retail and restaurant sectors in throughout the supply chain in making the United States and for the World changes to how animals are raised. Organization for Animal Health, and We need to consider animal welfare is a member of Canada’s National as well as the economic impact of new Farm Animal Health and Welfare standards placed on producers. By Council. In 2008, Dr. Fraser chaired working together with industry partners, the expert consultation on animal animal welfare experts, producers and welfare of the United Nations Food and governments, we aim to achieve the Agriculture Organization. best possible outcomes. Dr. Fraser was appointed a member of the Order of Canada in 2005 for his “Animal welfare is fast work as a “pioneer in the field of animal VEAL with minimal restriction. As they welfare science”. His work has led becoming an issue of In 2013, Loblaw announced a work toward the requirements, pork to innovations in animal housing and commitment to only source fresh veal suppliers are required to submit annual management, ranging from designing consequence to the from vendors that have transitioned to status updates. better pigpens to reducing highway loose housing by 2018. Loose housing accidents involving wildlife. Canadian consumer. LAYING HENS allows for greater mobility for veal We are partnering with egg suppliers In his role as scientific advisor to calves with minimal restriction. We have It has moved up to transition the PC Blue Menu line of Loblaw, Dr. Fraser will conduct asked our veal suppliers to provide eggs to free-run. Free-run eggs are research, provide expert opinion and significantly on our annual updates on their progress exclusively sourced from laying hens scientific guidance, and help ensure toward the target. priority list.” that live in indoor open environments, our commitments are aligned to animal where they are free to roam, feed, welfare standards and best practices. Galen G. Weston, Executive Chairman PORK perch and nest. To date, all PC and and President, Loblaw Companies Loblaw made a commitment in 2013 PC Organics eggs are free-run. We Limited to only purchase fresh pork from suppliers that transition to loose began offering PC Blue Menu Omega-3 housing environments for sows Free-Run Brown eggs in select Ontario by year-end 2022. Loose housing stores in 2014 and will expand to other allows greater mobility for sows regions in 2015.
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 19 Message to Stakeholders CSR at Loblaw CSR Focus Performance
Waste and Packaging Tackling waste is a top priority. We took a public stand on waste in 2007 when we introduced a pay-for-bag approach as a means of reducing plastic shopping bag use. Since then, we have progressively broadened the scope of our activities.
Our ultimate goal is to avoid waste in the first place. SANTIAGO HOLGUIN However, where waste is generated, we want to Second Harvest Driver find ways to put it to good use. We are currently evaluating our waste diversion programs and “It’s an honour to rescue looking for new opportunities to make meaningful food that would otherwise improvements. go to waste, and bring it to people who need it. Working with food donors like Loblaw, who love food and don’t want to see it wasted, is very important to keeping our 1,047 metric tonnes 7. 3 billion food rescue program going.” of fresh perishable food plastic shopping bags donated to local food banks eliminated since 2007 and food rescue programs
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 20 Message to Stakeholders CSR at Loblaw CSR Focus Performance
CSR Focus | Waste and Packaging
Reduce, Reuse, diversion programs and utilizing Food Waste Medical Disposal reusable plastic containers instead of Recycle, Recover Our customers tell us that they are Service corrugated cardboard boxes are two concerned about food waste. So are Loblaw has made good progress on good examples. Shoppers Drug Mart offers customers we. It is reported that the value of food waste reduction and diversion over the an effective solution for managing waste in Canada is $31 billion dollars.* past several years. We are especially Waste diversion programs are in place in expired pharmaceutical and over-the- We believe our role is to eliminate pleased with the expansion of our all Loblaw corporate facilities. However, counter products, as well as sharps/ waste wherever possible – in our stores Loblaw food reclamation program. some are more advanced than others due syringes. Customers can bring their and supply chain. We have begun to We now have 166 Loblaw stores to location and available infrastructure. medicines and sharps to their local make progress through changes in our participating in the program, donating Programs include the following: Shoppers Drug Mart, where they products, processes and packaging. perishable food that is safe and nutritious are then securely transferred and Feed hungry people to eat to local food banks across Canada AT THE SOURCE incinerated, preventing risks to patient Extra food that is safe and and to Second Harvest’s food rescue We have introduced new packaging health and waste streams. In 2014, nutritious to eat is donated program in the Greater Toronto Area. and vacuum-sealed meat to extend 191,136 kilograms of unused or expired to food banks, meal centres product freshness. We have also taken medications and 154,145 kilograms of We strive to embed waste reduction and shelters. tangible steps to shorten the supply sharps/syringes were safely disposed into everyday practices. By charging for Feed animals chain process through our “Field to of through this service. plastic shopping bags and encouraging Bakery waste is sent for Fork” program where, for example, the use of reusable bags and boxes, we Loblaw pharmacies offer similar processing into grain-based transport trucks can collect produce have eliminated 7.3 billion plastic bags services across Canada. animal feed. from a single pick-up point in growing from our stores since 2007. In our head regions. office, we achieved an 18% reduction in Recycling paper use in 2014. Programs are in place AT THE STORE for recycling plastic, We are becoming more sophisticated In 2014, we commissioned the Recycling paper, cardboard, waxed in the way we order and distribute Council of Ontario (RCO) to conduct a cardboard, wood pallets, fresh goods to stores. Getting the waste analysis of our facilities with the metal, electronics and more. volumes and timing just right requires goal to establish best practices. This extensive knowledge in sales patterns included our waste diversion programs, Composting and expected weather. We also provide waste classifications and materials, Organic waste is converted food-handling training for colleagues reporting and auditing. As a result, we into nutrient-rich fertilizer by and employees. reassessed energy from waste and no local farmers or commercial longer report it as diversion from disposal, facilities. * “$27 Billion” Revisited – The Cost of Canada’s and refined our performance reporting to Annual Food Waste, Value Chain Management Industrial uses Centre, December 2014. ensure transparency and accountability Waste oils and grease are to future claims. converted into biodiesel. We continue to advance programs Energy production to reduce the amount of waste we Organics and grease help generate. Our support for organic produce electricity.
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 21 Message to Stakeholders CSR at Loblaw CSR Focus Performance
CSR Focus | Waste and Packaging
Packaging For the past several years, we have worked to improve the packaging of our control brand products by reducing packaging weight, using renewable or post-consumer recycled (PCR) content, and ensuring packaging is recyclable or reusable.
Our key target, set in 2009, is to reduce control brand packaging by 5% (or 11,800,000 kg) by year-end The challenges include the development In 2015, we also hope to launch 2015. However, progress has been of new packaging technologies, the products with renewable content in slow – by year end, we were roughly cost of new equipment and processes, non-fibre-based packaging. First up 38%* of the way there. It has become the scale of change required and the are President’s Choice coffee pods. We Packaging Innovation abundantly clear that packaging need to ensure food safety. have been working on a project with improvements require a team effort In 2014, we introduced a new peel and our supplier, Club Coffee, and scientists reseal film for our President’s Choice from businesses, local governments Nevertheless, inroads are being at the University of Guelph to create tomatoes, replacing the old clamshell and the waste management sector – made. In 2014, we worked with select a compostable coffee pod, and with lid. The container is made of 70% PCR all of whom need to see the benefit in vendors to increase the amount of municipalities to include the pods in content, is fully recyclable and weighs making the necessary investments of PCR content in produce packaging. their organic waste programs. 28% less than the previous package. their time, energy and money. It also One of the most promising innovations Consumers like the new package requires a willingness on the part of was a new format for President’s because it gives them a clear view consumers to change their expectations Choice tomatoes. We also plan to of the product and can be resealed and behaviours. launch a 15-litre water bottle made with for freshness. 100% PCR polyethylene terephthalate * Reduction based on unit sales per year. (PET) in 2015.
Loblaw actively supports Canadian Stewardship Services Alliance Inc. (CSSA), a national, non-profit organization founded by leading retailers and manufacturers, to achieve better recycling performance. CSSA seeks to create convenient, environmentally sustainable ways for consumers to dispose of the paper, packaging and products they use. Learn more
www.cssalliance.ca
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 22 Message to Stakeholders CSR at Loblaw CSR Focus Performance
Energy Efficiency The consequences of climate change are being felt around the world. Collective action is needed to address the wide-ranging implications of this global challenge for generations to come. We are committed to doing our part, for the long-term good of our business, society and the environment.
VISHAL GUPTA Senior Coordinator, Store Development, Our focus is on reducing greenhouse gas (GHG) Loblaw Companies Limited emissions by lowering energy consumption in our stores and distribution centres, improving “Technological advancements, efficiencies in our transport fleet, and expanding particularly in lighting, offer new the use of renewable technologies such as opportunities to improve energy solar panels. efficiency and we’ve been quick to embrace them. The latest LED innovations not only reduce energy consumption and maintenance costs, but Lighting retrofits 3.2% reduction also improve lighting quality.” completed in 221 corporate in electricity use in stores and eight distribution Loblaw corporate stores centres
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 23 Message to Stakeholders CSR at Loblaw CSR Focus Performance
CSR Focus | Energy Efficiency
Lighting and Refrigeration Carbon Footprint Lighting, refrigeration and heating account for most of our energy consumption. Our focus remains on reducing our 3 Scope pe 1 We have invested heavily in our facilities to improve energy efficiency, which ultimately overall operational carbon footprint. co S helps reduce our greenhouse gas emissions. Over the past three years, we have Loblaw corporate emissions for 2014 leveraged new lighting and refrigeration technologies and optimized our energy were 1,034,478 tonnes of carbon
management system in Loblaw corporate stores and distribution centres across dioxide equivalent (CO2e). From a Canada. In 2014, we reduced our electricity consumption in comparable corporate business perspective, the reduction stores by 3.2% – equivalent to the amount of energy needed to power approximately in Scope 1 emissions was most 1,034,478
5,273 homes in Canada for one year. significant because these are the direct tonnes CO2e greenhouse gas (GHG) emissions over which we have the greatest control. They include emissions resulting from fleet and building fuel consumption and refrigerants. Scope 2 emissions are indirect GHG emissions resulting from Scope 2 electricity consumption and Scope 3 emissions are indirect emissions associated with waste and air travel. Scope 1 – Direct 47% Scope 2 – Energy Indirect 40% Retrofit projects in 2014 included the SOLAR POWER Scope 3 – Other Indirect 13% following: Loblaw has become a Canadian leader in rooftop solar installations. Since Building energy consumption 53% • Adding vertical doors to open dairy 2011, 62 rooftop solar projects have Refrigerant releases 25% and frozen food cases been completed in Ontario, with 23 in Waste 13% Fleet fuel consumption 8% • 2014 alone, covering stores, distribution Adding LED light fixtures to vertical Corporate travel 1% frozen door cases centres and our head office. In total, 77,672 panels have been installed. • Installing LED light fixtures in our One of the many benefits of rooftop underground parking garages and solar power is that it offsets the power shipping and receiving docks demanded during peak periods when Approximately 50% of a supermarket’s electricity usage soars, such as on hot, energy consumption is attributed to sunny days. running the refrigeration system, which is why we have invested in cutting-edge refrigeration systems and robust leak checking protocols. In 2014, we reduced the total amount of refrigerant leaked in Loblaw corporate stores by 6.7%.
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 24 Message to Stakeholders CSR at Loblaw CSR Focus Performance
Giving Back to Communities We consider it a priority to give back to the communities where we operate. We have always recognized and acted on our responsibility to help these communities – from our commitment to healthy living, through the products and services we offer, to our support for programs such as
SYDNEY JOHN-BAPTISTE national food drives. Member, Toronto Kiwanis Boys and Girls Clubs Looking ahead, we will continue to focus our charitable giving programs on areas that resonate “When I’m tired after strongly with our customers and that are closely school, I know that I can aligned with our business strategy – in particular, always get a healthy snack helping women and children. We plan to refine at the Club. The snack our approaches in both of these areas in the program is great because it coming year. helps me to focus on my homework and I’ve learned a lot about nutrition and $15.4 million $9.5 million how important it is.” in contributions to in contributions to children’s health women’s health
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 25 Message to Stakeholders CSR at Loblaw CSR Focus Performance
CSR Focus | Giving Back to Communities
Making a Positive PRESIDENT’S CHOICE caregivers access to specially trained One of the biggest events is the annual Difference in Our CHILDREN’S CHARITY (PCCC) counsellors. The hotline served more Shoppers Drug Mart Run for WOMEN PCCC provides grants to programs that than 17,000 Canadian women in 2014. which raises awareness and funds in Communities aim to fight childhood hunger – namely Another example is the Virée Rose support of women’s mental health in Breakfast for Learning™ and Boys and program, a unique partnership between 10 communities across Canada. The Loblaw’s corporate giving efforts Girls Clubs of Canada – and to families the Quebec Breast Cancer Foundation event raised more than $278,000 for local focus on President’s Choice Children’s of children with disabilities. In 2014, and Pharmaprix FEMMES, which saw a women’s health organizations in 2014. Charity, Shoppers Drug Mart WOMEN, PCCC granted $5 million to 2,271 child fully outfitted RV travel across Quebec Learn more and programs dedicated to healthy nutrition programs and $10.4 million for 20 weeks in 2014 to encourage active kids, feeding our neighbours www.shoppersdrugmart.ca/women to 2,021 families of children with women to take care of their breast health. and greening our communities. disabilities. PCCC also celebrated its In 2014, Loblaw corporate and 25th anniversary and the achievement of franchised stores donated more than having granted more than $116 million $2.8 million to sport clubs, schools and since its inception in 1989. Since 2008, events in their local communities. During PCCC has provided grants to more the national food drives, stores raised than 17,600 child nutrition programs, more than $2.3 million and 1.6 million providing a nutritious meal to more than pounds of non-perishable food for local 2.2 million children across Canada. food banks across Canada. Additionally, Learn more
during the Give a Little, Help a Lot www.pc.ca/charity campaign, stores raised more than $1 million for organizations dedicated to SHOPPERS DRUG MART WOMEN/ keeping kids healthy and active. PHARMAPRIX FEMMES In 2014, the Shoppers Drug Mart Since 2013, Shoppers Drug Mart has WOMEN program granted $9.5 million partnered with the Partnership for a to various charities and organizations Drug-Free Canada (PDFC) to offer a across Canada supporting women’s national drug take-back program in health and well-being. Created its pharmacies. PDFC aims to reduce with leading experts and institutions, the use of illicit drugs and non-medical Shoppers Drug Mart WOMEN is use of prescription drugs by Canadian brought to life through eight partnership youth by supporting and educating programs and more than 500 community- parents and caregivers about the based women’s health organizations. devastating effects of drug abuse, and One example is the Motherisk program, by providing them with the tools they a toll-free helpline run by The Hospital need to talk to their kids. for Sick Children, which provides expecting parents, new mothers and
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 26 Message to Stakeholders CSR at Loblaw CSR Focus Performance
CSR Focus | Giving Back to Communities
Loblaw Water Fund select franchised stores go towards WWF-Canada. Since 2009, Loblaw To support those working to keep has donated $1 million annually, a total Canada’s water supply healthy, of $6 million to date, to WWF-Canada WWF-Canada and Loblaw introduced to support conservation initiatives the Loblaw Water Fund in 2014. The like National Sweater Day, the Great Fund provides grants to registered Canadian Shoreline Cleanup and now charitable organizations that conserve, the Loblaw Water Fund. protect or restore freshwater habitats and the species within. Partial proceeds from the sale of 5-cent plastic shopping bags in Loblaw corporate stores and
“The Loblaw Water Fund recognizes that we can do more together, supporting each other, than we can alone, and reflects the foundation of our relationship with Loblaw Companies Limited, a trusted partner that helps WWF-Canada engage Canadians around environmental issues.”
David Miller, President and CEO, WWF-Canada
Photo courtesy of Living Lakes Canada LOBLAW WATER FUND
FONDS LOBLAW POUR L’EAU
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 27 Message to Stakeholders CSR at Loblaw CSR Focus Performance
Developing Our People and Culture
Recognizing that it’s our colleagues who drive the success of the company, we have identified corporate culture as a strategic business priority. We want to make sure that we do the right things to harness the talents of all of our colleagues and JUDY McCRIE Executive Vice President, Culture, to embed the best practices of both Loblaw and Loblaw Companies Limited Shoppers Drug Mart.
“For Loblaw, culture is not Our leaders set the tone and we are working an agenda item or a project, with them to lead the culture journey. Over the but something we live and coming months, our colleagues will become more breathe. That’s why we’re actively engaged in efforts to create a winning embedding clear and easy-to- culture focused on achieving our shared company understand culture principles purpose – Live Life Well. into our company’s practices. Building on the steps we’ve Canada’s Top 100 7,000 colleagues already taken, I believe Loblaw Employers and employees surveyed is in the right place to make Recognized as one of to help define our new culture our culture vision a reality.” Canada’s Top 100 Employers for the sixth straight year
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 28 Message to Stakeholders CSR at Loblaw CSR Focus Performance
CSR Focus | Developing Our People and Culture
Creating a Survey results shaped our ideal culture learned how bringing conscious COMMUNICATIONS Winning Culture vision, which includes colleagues awareness and self-mastery of those We have stepped up the number of rallying around our shared company beliefs can drive excellence. opportunities for colleagues to speak We have embarked on an exciting purpose, while collaborating and with leaders. This includes forums journey of change and opportunity. supporting each other across our six Following these sessions, 35 executives such as Let’s Talk, which are guided From the start, we wanted to ensure we unique divisions. It is a culture built on volunteered to play an active role in discussions between senior leaders got it right, that Loblaw and Shoppers trust, authenticity and connections – our company’s cultural journey. As and groups of 10 to 15 colleagues, Drug Mart employees would flourish where how we approach our work is culture champions, these leaders and Success Talks, which are a series and the businesses would excel. equally as important as what we achieve. are expected to model desired of interactive sessions in which senior Among the steps we have taken: behaviours and motivate others. leaders from Loblaw and Shoppers LEADERSHIP DEVELOPMENT Culture champions get involved in Drug Mart share their career stories. CULTURE VISION We undertook a number of leadership internal projects that have a cultural We conducted a survey of 7,000 initiatives aimed at both moving component and many will act as colleagues and employees to better us toward our desired culture and mentors to fellow colleagues in a understand our existing culture providing professional development mentorship program being launched and develop a picture of our ideal opportunities. Senior executives from nationally in 2015. culture. The survey helped identify the across our businesses participated in cultural styles that would maximize a unique leadership program, where effectiveness and what we needed to they explored personal mindsets and focus on to drive change.
Accelerated projects, participants are challenged to “The Accelerated Leadership Program is a Leadership Program use their new skills in a business case, bringing fresh ideas and creativity to great opportunity to enhance your leadership Our Accelerated Leadership Program issues and opportunities aligned with effectiveness. It is evident that Loblaw is serious (ALP) is aimed at developing the business goals. leadership capabilities of high- and willing to make a significant investment in performing and high-potential More than 100 Loblaw and Shoppers colleagues. Developed in partnership Drug Mart employees have completed its people.” the eight-month ALP, which has a with the Schulich Executive Education Accelerated Leadership Program graduate Centre at York University, the intensive weekly time commitment similar to that program includes core curriculum of an executive MBA program. sessions and a group project. The Post graduation, participants meet with in-class sessions cover topics such as senior executives to transfer knowledge leadership transformation, collaborative and research related to their areas of thinking and innovation, financial study so that practical improvements acumen and more. In the group can be applied directly to the business.
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 29 Message to Stakeholders CSR at Loblaw CSR Focus Performance
Performance We set annual targets within each of our five CSR pillars so our customers, colleagues and partners can see our progress and hold us accountable.
2014 Targets and Achievements
Respect the Environment
Source with Integrity
Make a Positive Difference in Our Community
Reflect Our Nation’s Diversity
Be a Great Place to Work
2015 Targets
Awards and Recognition
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 30 Message to Stakeholders CSR at Loblaw CSR Focus Performance
2014 Targets and Achievements WASTE REDUCTION TARGET: Achieve an average of 85% ACHIEVEMENT: Diverted 86% of waste diversion from landfill at distribution distribution centre–generated waste centres. nationally. Increase was largely due to the expansion of organic diversion programs in our Ajax, Ontario and Boucherville, Quebec distribution centres.
Waste diversion rate: 2014 86% 2013 83% 2012 81%
TARGET: Reduce waste from corporate ACHIEVEMENT: Results are: Ontario, 64%; stores in each region by three percentage Quebec, 61%; West, 50%; Atlantic, 64%. points relative to 2013 results: Ontario, 86%; See our waste discussion on page 21. Quebec, 65%; West, 54%; Atlantic, 67%.
TARGET: Reduce paper use at our ACHIEVEMENT: Reduced paper use by corporate head office by 5%. 18% vs. 2013 by installing new printers, implementing double-sided print defaults and assigning print pass cards to each colleague.
PACKAGING
TARGET: Reduce control brand packaging ACHIEVEMENT: Since 2009, we have Respect the Environment by 5% by year-end 2015. reduced packaging in 270 control brand products by more than 4.4 million kilograms*. Biggest contributor in 2014 We are committed to reducing the environmental impact was the shift from boxes to bags for our of our operations. Given our size and scale, our most Butcher’s Choice burgers. significant impacts are in waste generation, energy use, See our packaging discussion on page 22. transportation and packaging.
* Data comprises unit sales.
Target met Target almost met or on track Target not met or at initial stages Loblaw Companies Limited 2014 Corporate Social Responsibility Report 31 Message to Stakeholders CSR at Loblaw CSR Focus Performance
Performance | 2014 Targets and Achievements | Respect the Environment
TARGET: Develop partnerships to increase ACHIEVEMENT: Engaged with several TARGET: Complete lighting retrofits ACHIEVEMENT: Completed lighting the use of post-consumer recycled (PCR) vendors to increase the use of PCR in 140 corporate stores and seven retrofits in 221 corporate stores and eight content in packaging. content in packaging. Our best success distribution centres. distribution centres across Canada. story to date is our PC water bottle made See our lighting discussion on page 24. of 100% PCR content. Number of corporate stores that have completed lighting retrofits:
TARGET: Launch products with increased ACHIEVEMENT: Launched new packaging PCR content in polyethylene terephthalate for President’s Choice cherry tomatoes. (PET) packaging. The container is made with 70% PCR content. See the story on page 22. 112 127 226 221
TARGET: Launch products with increased ACHIEVEMENT: We continue to investigate renewable content in non-fibre-based this evolving technology and opportunities packaging. with our vendors. 2011 2012 2013 2014
TARGET: Conduct a vendor survey on the ACHIEVEMENT: Surveys were sent to all TARGET: Install a CO2 refrigeration system ACHIEVEMENT: Target not met. We
use of certified sources of fibre-based vendors and 60% have responded to date. in one corporate store. installed a CO2 refrigeration system in one packaging. We are currently assessing results and corporate store in 2013 and our intent, establishing a baseline. moving forward, is to install this system in new corporate stores.
ENERGY REDUCTION TARGET: Complete 20 solar panel projects ACHIEVEMENT: Completed 23 solar panel TARGET: Reduce total energy consumption ACHIEVEMENT: Reduced our energy in Ontario. projects in 2014. In total, we have by 3% in existing corporate stores. consumption in existing corporate stores 62 solar projects in commercial operation by 3.2%. in Ontario. See our discussion on page 24.
Energy reduction: 1.0% WATER FOOTPRINT 3.1% 3.0% 3.2% TARGET: Complete a water footprint ACHIEVEMENT: Target not met. assessment of our operations. Analyzing data in 2015.
2011 2012 2013 2014 60 2014 3.2% 2013 3.0% Target2012 met Target almost met or on track Target not met or at initial stages 3.1% 2011 1.0% Loblaw Companies Limited 2014 Corporate Social Responsibility Report 32
1.0% 2011 3.1% 2012 3.0% 2013 3.2% 2014 100 90 80 70 60 50 Message to Stakeholders CSR at Loblaw CSR Focus Performance
OFFSHORE VENDORS TARGET: Implement upgraded workplace ACHIEVEMENT: Implemented building and fire safety standards for vendors in fire and safety assessments for factories emerging markets. producing our products in Thailand, Cambodia, Sri Lanka, Vietnam and India.
SUSTAINABILITY TARGET: Develop sustainability guidelines ACHIEVEMENT: Established a control brand for all control brand categories. sustainability framework. Next step is to develop a sustainable sourcing guide for our business.
TARGET: Identify control brand fresh ACHIEVEMENT: Work was completed with commodities with the biggest impact on WWF-Canada. Identified livestock and “at risk” watersheds in Canada. select produce and grains as having the biggest impact on “at risk” watersheds in Canada based on their location and volume, water supply and irrigation practices, as well as inputs into water streams.
PALM OIL
TARGET: By year-end 2015, support the ACHIEVEMENT: Conducted a vendor sustainable production of palm oil for our survey to confirm the amount of palm control brand products by aligning with oil in our control brand food and non- the Roundtable on Sustainable Palm Oil food products. (RSPO) supply chain models including the Plan in place to source sustainable palm purchase of GreenPalm certificates. oil for our control brand food products. Source with Integrity Assessment and plan of action for our non-food control brand products will be By sourcing with integrity, we aim to uphold our ethical completed in 2015. See our discussion values throughout our supply chain, promote safe and on page 16. sustainable products, and support Canadian suppliers.
Target met Target almost met or on track Target not met or at initial stages Loblaw Companies Limited 2014 Corporate Social Responsibility Report 33 Message to Stakeholders CSR at Loblaw CSR Focus Performance
Performance | 2014 Targets and Achievements | Source with Integrity
SUSTAINABLE SEAFOOD ANIMAL WELFARE TARGET: Introduce Aquaculture ACHIEVEMENT: Introduced ASC certified TARGET: Source all fresh veal from ACHIEVEMENT: Target on track for 2018. Stewardship Council (ASC) certified, Atlantic salmon in stores. We continue suppliers that have transitioned to loose We continue to work with industry responsibly farmed Atlantic salmon to monitor the availability of closed housing by 2018. Obtain progress updates partners, experts and our fresh veal and closed containment grown Atlantic containment grown Atlantic salmon. from our veal vendors. vendors to promote good practices related salmon in our stores. See our discussion on page 16. to animal welfare. See our discussion on page 19.
TARGET: Increase our range of wild-caught ACHIEVEMENT: Although the total number Marine Stewardship Council (MSC) of MSC and ASC certified products TARGET: Source all fresh pork from ACHIEVEMENT: Target on track for 2022. certified canned tuna products. increased in our stores, work is still suppliers that have made a transition to We continue to work with industry in progress to increase the number of loose housing environments by year-end partners, experts and our fresh pork certified canned tuna products. 2022. Obtain progress updates from our vendors to promote good practices related pork vendors. to animal welfare. See our discussion on 159 MSC certified and 12 ASC certified products offered in our stores: page 19.
2014 159 2014 12 TARGET: Expand PC Blue Menu Omega-3 Free-Run eggs offering. 2013 2013 5 133 ACHIEVEMENT: Rolling out product to Quebec stores in 2015 and we are assessing the possibility of offering it 2012 108 in Shoppers Drug Mart locations.
2011 73
2010 22
Target met Target almost met or on track Target not met or at initial stages Loblaw Companies Limited 2014 Corporate Social Responsibility Report 34 Message to Stakeholders CSR at Loblaw CSR Focus Performance
HEALTH AND WELLNESS TARGET: Replace artificial sweeteners in ACHIEVEMENT: Target on track. Replaced President’s Choice products with stevia by artificial sweeteners in our PC Blue Menu year-end 2015. products with stevia in 2013.
TARGET: Reduce sodium in 400 ACHIEVEMENT: Target on track. We President’s Choice products by an have reduced sodium by an average of average of 20% by year-end 2015. 25% in 93 President’s Choice products. See page 13.
TARGET: All President’s Choice products to ACHIEVEMENT: On track to achieve target be below the maximum allowable Health by year-end 2015. Canada sodium reduction targets by year-
end 2015, as long as functionality, food safety and taste are not compromised in the process.
TARGET: Roll out the Guiding Stars® ACHIEVEMENT: Guiding Stars nutrition nutrition rating system in all stores by rating system is now offered in 788 Loblaw year-end 2015. stores across Canada with more roll-outs planned in 2015. See page 13.
TARGET: Introduce 19 dietitians in stores ACHIEVEMENT: Introduced 19 dietitians in in Atlantic Canada. select Dominion and Atlantic Superstore locations in Atlantic Canada. See page 12.
Make a Positive Difference in Our Community We make a positive difference by meeting the health and wellness needs of Canadians and giving back to the communities in which our stores operate.
Target met Target almost met or on track Target not met or at initial stages Loblaw Companies Limited 2014 Corporate Social Responsibility Report 35 Message to Stakeholders CSR at Loblaw CSR Focus Performance
Performance | 2014 Targets and Achievements | Make a Positive Difference in Our Community
CORPORATE GIVING TARGET: Conduct 500 nutrition school ACHIEVEMENT: Conducted 692 elementary TARGET: Contribute more than $5 million ACHIEVEMENT: Loblaw donated tours in stores. school nutrition tours in Loblaw stores, in to charities and non-profit organizations $5.1 million to various charities and which students learned about nutrition and across Canada with a focus on President’s non-profit organizations across Canada. the Guiding Stars® nutrition rating system. Choice Children’s Charity, greening our Recipients included: communities, healthy active kids and feeding our neighbours. TARGET: Launch an in-store bone health ACHIEVEMENT: Launched program with awareness program for colleagues and Osteoporosis Canada in all Loblaw stores President’s Choice customers. in partnership with our pharmacy division. Children’s Charity See page 12. $1.8 million TARGET: Implement an in-store colleague ACHIEVEMENT: In addition to supporting wellness program led by dietitians. the health and well-being of customers, WWF-Canada dietitians developed a six-week colleague wellness program incorporating healthy $1.15 million eating tips and recipes along with physical activity to encourage healthy Food Banks Canada living. The program was available to colleagues in all Loblaw stores that have in-store dietitians. $271,500 Loblaw After-School Grants $250,795
TARGET: Expand the Loblaw food ACHIEVEMENT: To date, 166 Loblaw stores reclamation program to 250 corporate are participating in the program. See our stores. discussion on page 21.
Target met Target almost met or on track Target not met or at initial stages Loblaw Companies Limited 2014 Corporate Social Responsibility Report 36 Message to Stakeholders CSR at Loblaw CSR Focus Performance
INCLUSIVE WORKPLACE TARGET: Implement external programs to ACHIEVEMENT: We continue to work with recruit personnel from community groups industry partners and our management such as aboriginals, new Canadians and teams to implement external programs to persons with disabilities. recruit personnel from various community groups. Plan is to evaluate the strategy in 2015.
TARGET: Execute our multi-year ACHIEVEMENT: National strategy in place to organizational strategy to meet customer meet customer and colleague accessibility and colleague accessibility requirements. requirements as part of the Accessibility for Ontarians Disability Act, 2005. Focus in 2014 was on establishing a feedback process and conducting accessibility awareness training through e-learning courses and small group sessions.
TARGET: Increase colleague participation ACHIEVEMENT: Women@Loblaw aims in women@Loblaw events by 10%. to build a sustainable network that engages colleagues. Various professional development and networking opportunities are held during the year. Colleague participation in women@Loblaw events increased by 48% in 2014.
TARGET: Expand the “I Speak” program to ACHIEVEMENT: In stores implementing all corporate stores. the “I Speak” program, colleagues’ first languages are included on their nametags. Re-evaluating program in 2015. Reflect Our Nation’s Diversity MULTICULTURAL PRODUCTS We recognize Canada’s diversity as a source of TARGET: Increase our range of ACHIEVEMENT: Increased our range of national pride and strength. We make it a priority to multicultural products across our Rooster Rooster Brand, T&T and Suraj products Brand, T&T and Suraj brands by 50%. by 42%. reflect our nation’s evolving diversity in the products we sell, the people we hire and the culture we create within our organization.
Target met Target almost met or on track Target not met or at initial stages Loblaw Companies Limited 2014 Corporate Social Responsibility Report 37 Message to Stakeholders CSR at Loblaw CSR Focus Performance
HEALTH AND SAFETY TARGET: Reduce total accidents by 5%. ACHIEVEMENT: Reduced total accidents by 5.9%. Achieved our target by standardizing safety procedures and inspections, refreshing training materials and tools, and maintaining ongoing colleague communications.
TRAINING AND DEVELOPMENT TARGET: Increase colleague participation ACHIEVEMENT: Participation numbers were in e-learning training courses by 5%. below target. However, participation in instructor-led courses more than doubled due to the roll-out of SAP systems in Loblaw stores and distribution centres across Canada.
e-Learning courses: Instructor-led courses: 2013 2014 2013 2014 64,012 62,403 28,394 62,750
TARGET: Implement a national mentor ACHIEVEMENT: Piloted a mentor program program to connect colleagues with senior in 2014 with great success. Expanding the leaders in the business. program in 2015.
Be a Great Place to Work We strive to engage and inspire every colleague every day. Along with fulfilling work, we offer open communication, rewards and recognition, ongoing learning, and a safe and healthy work environment.
Target met Target almost met or on track Target not met or at initial stages Loblaw Companies Limited 2014 Corporate Social Responsibility Report 38 Message to Stakeholders CSR at Loblaw CSR Focus Performance
2015 Targets WASTE REDUCTION FOOD WASTE Reduce waste from corporate grocery Conduct a food waste study alongside stores in each region by three percentage industry stakeholders. points relative to 2014 results (Ontario, 66%; Quebec, 63%; West, 52%; Atlantic, 64%). RESPONSIBLE SOURCING Implement sustainable sourcing guidelines for ENERGY EFFICIENCY food category management teams. Reduce total energy consumption by 1% per square foot in existing corporate By year-end 2015, support the sustainable grocery stores. production of palm oil for our control brand products by aligning with the Roundtable on Retrofit the fresh counters in corporate Sustainable Palm Oil (RSPO) supply chain grocery stores with LED lighting. models including the purchase of GreenPalm certificates. Retrofit task lighting in corporate grocery stores in Ontario, Nova Scotia and Continue to source sustainable seafood by Newfoundland and Labrador. expanding our chain-of-custody certification and increasing the number of certified Install vertical doors to open dairy and frozen sustainable products in our stores. food cases in corporate grocery stores by year-end 2017. Identify President’s Choice and Life Brand products that contain chemicals and REFRIGERATION ingredients of concern through a vendor audit. Reduce greenhouse gas emissions associated with refrigerant leaks by 5% in Establish a deadline to no longer use corporate grocery stores. triclosan or phthalates in President’s Choice and Life Brand household, beauty and
Install CO2 refrigeration system in two health products. corporate grocery stores. Be the retail lead on the executive council Pilot hydrofluoroolefin (HFO) refrigerant in of the Canadian Roundtable for Sustainable We set both annual and long-term CSR targets. two corporate grocery stores. Beef and in the verified sustainable beef pilot. Our long-term targets span several years and focus PACKAGING Support sustainable cocoa farming practices Reduce packaging in control brand products by sourcing UTZ certified cocoa for our on addressing complex issues that typically require by 5% by year-end 2015. President’s Choice Gold Bar line of chocolate by year-end 2015. extensive research, stakeholder collaboration, supplier/ Fibre used in folding cartons, corrugated boxes and trays to be sourced from recycled vendor impact assessments and multi-year action plans material or from certified sustainably to deliver results. managed forests by year-end 2018.
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 39 Message to Stakeholders CSR at Loblaw CSR Focus Performance
Performance | 2015 Targets
ANIMAL WELFARE HEALTH AND WELLNESS COMMUNITY GIVING INCLUSIVE WORKPLACE Obtain status updates from our fresh veal and Replace artificial sweeteners in President’s Provide nutritious meals to 450,000 children Achieve a 50% participation rate of women in fresh pork vendors on their progress towards Choice products with stevia by year-end 2015. across Canada through President’s Choice talent development programs. loose housing environments for veal calves Children’s Charity grants. and pig sows that align with our targets. Reduce sodium in 400 President’s Choice LEARNING AND DEVELOPMENT products by an average of 20% by Raise $2.5 million and 1.5 million pounds of Increase colleague participation in e-learning Expand PC Blue Menu Omega-3 Free-Run year-end 2015. food to assist provincial and local food banks courses by 10%. Brown eggs offering. across the country through our national All President’s Choice products to be below food drives. Increase colleague participation in our Conduct a comprehensive review of best the maximum allowable Health Canada national mentor program by 10%. practices in animal handling and welfare with sodium reduction guidelines by year-end Expand the Loblaw food reclamation program our animal welfare scientific advisor. 2015, as long as functionality, food safety and to 250 corporate stores. HEALTH AND SAFETY taste are not compromised in the process. Reduce total accidents by 5%. SUPPLY CHAIN Assist 20,000 expectant parents, new Update Loblaw supplier code of conduct. Introduce no name Naturally Imperfect™ mothers and caregivers across Canada products in select Loblaw stores. through the Motherisk Helpline. Implement management program in emerging ® markets to ensure products delivered to Launch Guiding Stars in Maxi and Increase participation in the Shoppers Drug Canada are sourced from approved factories. Maxi & Cie stores in Quebec. Mart/Pharmaprix Run for WOMEN event to 10,000 participants. Expand our audit compliance personnel team Expand dietitian program in Loblaw stores in emerging markets. in Quebec. Shoppers Drug Mart/Pharmaprix to provide funding to 450 local charitable organizations Provide 3,000 pharmacists at Shoppers Drug across Canada focused on women’s health Mart/Pharmaprix locations with advanced and well-being. osteoporosis training to help Canadian women reduce their risk of fractures. Engage 20,000 women across Canada to develop a personalized breast health plan PHARMACY through an online tool. Open Shoppers Drug Mart Patient Contact Centre. Support the provision of mobile mammography services to 11,000 women Develop a nutrition guide for Shoppers Drug in British Columbia. Mart/Pharmaprix network pharmacists to help educate customers and patients on healthy eating.
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 40 Message to Stakeholders CSR at Loblaw CSR Focus Performance
Awards and Recognition
We were honoured to be recognized by various CSR-related award programs in 2014. Daily Bread Food Bank’s 2014 Best in Class Award Winner Daily Bread Food Bank provides food and Canada’s Top 100 Employers resources to almost 200 food programs across This was our sixth consecutive year to receive this award. The Toronto. Loblaw was recognized for our leadership competition is one of Canada’s best-known annual awards, in the fight to end hunger. recognizing companies and organizations that are leaders in attracting and retaining employees. Hypertension Canada – Certificate of Excellence Loblaw was recognized for our pharmacist-led blood pressure awareness program Canada’s Best Diversity Employers and for our positive approach to health management and chronic diseases. Loblaw This award recognizes employers across Canada that have pharmacists conducted more than 33,619 blood pressure tests and consultations exceptional workplace diversity and inclusiveness programs. in 2014.
Corporate Knights – Best 50 Corporate Citizens in Canada The Best 50 recognizes Canadian industry leaders Canada’s Top Employers for Young People on a diverse set of sustainability metrics. Loblaw Loblaw was recognized for the fifth consecutive year as was among the Best 50 and the highest ranked one of Canada’s leaders in attracting and retaining younger company in the consumer staples sector. employees to their organization. .worksdesign.com www
DUX Award The DUX Contest recognizes and promotes exemplary Greater Toronto’s Top Employers practices promoting healthy eating habits in Quebec. Loblaw This award recognizes Greater Toronto employers that lead was recognized for launching the Guiding Stars® program. their industries in offering exceptional workplaces. This is the sixth time Loblaw has received this honour. Sustainable Finance Initiative (IFD-SFI) – Best Corporate Sustainability Report The Sustainable Finance Initiative is a non-profit financial organization based in THE WORKS DESIGN COMMUNICATIONS WORKS THE
Maclean’s – Top 50 Socially Responsible Corporations CMYK / blackMontreal type that brings together financial professionals to promote sustainable finance For use against light background in Canada and responsible investments. Our 2013 CSR report was awarded best corporate Loblaw was recognized for our response to the Rana Plaza sustainability report in the consumer staple and discretionary segment of TSX60Plus factory collapse in Bangladesh, and our success in reducing companies for its scope, key performance indicators, action plans, accessibility,
Concept and Design: the number of plastic shopping bags in our stores. CMYK / whitecredibility type with surrounding black boxand visual appeal. For use against dark or light background
Loblaw Companies Limited 2014 Corporate Social Responsibility Report 41 CMYK / white type with no box For use against dark, contrasting colour background Message to Stakeholders CSR at Loblaw CSR Focus Performance
Contact Information
Loblaw Companies Limited is a subsidiary of George Weston Limited.
National Head Office and Support Centre Loblaw Companies Limited 1 President’s Choice Circle Brampton, Ontario, Canada L6Y 5S5
Tel: 905-459-2500 We value your feedback. Web: loblaw.ca
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