Burberry Environmental Social and Governance 2020/21
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Strategic Report | Environmental, Social and Governance ENVIRONMENTAL, SOCIAL AND GOVERNANCE At Burberry, our purpose underpins the choices we make In September 2020, we launched luxury’s first as an organisation. Enshrined in the statement Creativity Sustainability Bond to support our goals (see pages 92 Opens Spaces, our purpose is the shared belief that to 93). We are committed to continuing to invest in through creativity, we can push boundaries and explore ESG-related initiatives and raising our ambitions to build new possibilities for our people, our customers and our a more sustainable and inclusive future. Pages 60 to 91 communities. Being creatively driven, forward thinking, in this report provide information on our areas of focus open and caring, and proud of our heritage are hallmarks in FY 2020/21. Further information can be found in the of our organisation at its best. These values have Corporate Governance Report on pages 146 to 207 and remained at the core of our brand since Thomas on Burberryplc.com, which is continually updated with Burberry founded the Company in 1856. the latest ESG information and disclosures. Our commitment to ESG-related matters is the Recognition purest expression of our purpose and values. We are In FY 2020/21, we were recognised for our efforts committed to building not only a financially stronger around ESG, with highlights including: Burberry but also a better company that is a force for good in the world. • Dow Jones Sustainability Index: inclusion in the World and Europe Indices for the sixth consecutive year Disclosure plays a key role in driving meaningful change. • FTSE4Good Index: constituent By learning from others and sharing our progress, we • Responsibility100 Index: ranked fifth in the FTSE 100 can help drive accountability, for ourselves and for • Sustainalytics: negligible risk rating, ranked first in our our industry. industry (textiles and apparel) and sub-industry (luxury apparel) In FY 2020/21, we focused on three areas: • CDP: A List and achieved the Supplier Engagement Leader Award • Creating the conditions for creativity to thrive by • Included in the Bloomberg Gender-Equality Index 2021 championing diversity and inclusion and ensuring the • Maintained leading position in FTSE 100 for women in wellbeing of our people leadership, as recognised by the final report from the • Supporting our communities, and particularly young Hampton-Alexander Review for FTSE 100 companies people, by providing them with the skills, confidence and opportunities to succeed • Creating a more sustainable future for luxury by reducing our environmental impacts and helping transform our industry As we near the end of our latest five-year Responsibility agenda, we continue to focus our efforts on driving positive change and building a more sustainable future. An overview of our Responsibility agenda and targets is on pages 64 to 65, and more information on these can be found from pages 74 to 91. 60 Strategic Report | Environmental, Social and Governance In FY 2020/21 we focused on three areas: OUR PEOPLE OUR COMMUNITIES THE ENVIRONMENT Fostering creativity Empowering youth Building a sustainable future STAKEHOLDERS GOVERNANCE: BOARD CEO Nomination Remuneration Audit Committee Committee Committee Sustainability Steering Risk Committee Committee Chair – CO&FO Chair – CEO Attended by Chief Operations & Financial Officer (CO&FO) Task Force on Ethics Climate-related Committee Financial Disclosures (TCFD) Working Group 61 Strategic Report | Environmental, Social and Governance Contributing to the Sustainable often work with our peers, sector experts and Development Goals (SDGs) non-governmental organisations (NGOs) to achieve Burberry’s commitment to sustainability is longstanding, our ambitions. grounded in the belief that for our future growth we need to actively address the challenges facing the Our ESG activity is aligned to the Paris Climate fashion and luxury industry and the world in which we Agreement and informed by the United Nations SDGs. operate. We are dedicated to reducing our environmental Below are some of the ways we contribute towards footprint and enabling social progress. Recognising the these goals: power of working collaboratively to drive real change, we Sustainable Development Goal Burberry’s ongoing contribution FY 2020/21 highlights SDG 1. Principal Partner of the Living Wage • The Burberry Foundation COVID-19 No poverty Foundation and steering group member of the Community Fund Global Living Wage Initiative • The Burberry Foundation programme in Afghanistan focused on improving the livelihoods of cashmere goat herding communities SDG 2. No Donations to food charities as part of our • Donations to FareShare, The Felix hunger COVID-19 response Project and The Trussell Trust SDG 3. Good Holistic Global Wellbeing programme, including • Global Parental Leave Policy with health and Mental Health training and Employee equalised leave for all new parents, Time wellbeing Assistance Programme (EAP) to Change Pledge, funding for University of Oxford and AstraZeneca COVID-19 vaccine research SDG 4. Quality Burberry Inspire UK and New York • Donated ReBurberry Fabrics to fashion education students with the British Fashion Council • Supported new youth engagement programmes, including partnerships with London Youth, the International Youth Foundation’s Global Youth Resiliency Fund and Wide Rainbow SDG 5. Gender A skilled and balanced Board, met targets set • Launched global Diversity and Inclusion equality by the Hampton-Alexander Review report for Policy and strategy FTSE 100 companies and recognised in the • Global Parental Leave Policy is equal for Bloomberg Gender-Equality Index, endorse the colleagues around the world UN Women’s Empowerment Principles SDG 6. Clean Supply chain water conservation and • Launched water resilience assessments water and reduction programme across the supply chain sanitation SDG 7. Member of RE100, committed to using 100% • Renewables currently power 93% of our Affordable and renewable electricity by 2022 and encouraging electricity needs worldwide clean energy our suppliers to do the same. Our target is to • Apparel Impact Institute (Aii) energy be Net Zero by 2040 and carbon neutral in our efficiency programme in Italy own operational energy use by 2022 SDG 8. Decent UK Living Wage Accreditation and steering • Maintained pay for all our people work and group member of the Global Living impacted by COVID-19 and provided full economic Wage Initiative, The Burberry Foundation pay during COVID-19-linked absences growth programme in Afghanistan, partnership with • Did not avail of the UK government’s Year Up in New York furlough scheme 62 Strategic Report | Environmental, Social and Governance Sustainable Development Goal Burberry’s ongoing contribution FY 2020/21 highlights SDG 9. Industry, Core partner of the • Design innovation, such as 3D model innovation and Ellen MacArthur Foundation’s sampling for products infrastructure Make Fashion Circular initiative • Artificial Intelligence utilised for product ordering SDG 10. Reduced Burberry and The Burberry Foundation • Launched global Diversity and Inclusion inequalities partnerships, including with Oxfam and Policy PUR Projet in Afghanistan, Oxfam Italy, • Included in Bloomberg’s Gender-Equality Teach First, The Careers & Enterprise Index 2021 and joined The Valuable 500, Company and MyKindaFuture, Burberry Business Disability Forum Inspire, The Royal College of Art, • Signatory of the UN Women’s Empowerment London Youth, Year Up, initiatives to Principles support global disability efforts and LGBTQ+ community as part of the Diversity and Inclusion strategy, Cultural Advisory Committee and Global Living Wage Initiative SDG 11. Sustainable LEED and BREEAM compliance in • Launched luxury’s first Sustainability Bond, cities and construction, underpinning the which includes green buildings criteria communities sustainability and efficiency of our buildings SDG 12. Responsible Ellen MacArthur Foundation’s New • Signature oak paper is made from a consumption and Plastics Economy Global Commitment, minimum of 40% upcycled coffee cups that production Sustainable Fibre Alliance (SFA), The would have otherwise gone to landfill ZDHC Foundation board member, • Launched new traceability and sustainable Canopy, Leather Working Group, Elvis raw materials targets & Kresse and Progetto Quid SDG 13. Climate Goal to be Net Zero by 2040, • Carbon-neutral runway shows and events action RE100 member, and 100% renewable since 2019 electricity goal by 2022, • Progress against 100% renewable electricity Science Based Targets commitment (93% achieved in FY 2020/21) • Advancing our climate change risk reporting as a signatory of the TCFD SDG 14. Life below Signatory to the Ellen MacArthur • Member of the corporate engagement water Foundation’s New Plastics Economy programme of the Science Based Targets Global Commitment and CEO is a for Nature initiative steering committee member of The Fashion Pact SDG 15. Life on land Stretching sustainable materials • Partnered with PUR Projet to launch a targets, The Burberry Regeneration programme aimed at supporting Fund and our work on sustainable regenerative agricultural practices cashmere with the Sustainable Fibre • Member of the corporate engagement Alliance (SFA) programme of the Science Based Targets for Nature initiative SDG 16. Peace, Code of Conduct, Responsible Business • Celebrated Pride and continue longstanding justice and strong Principles, Human Rights Policy and