Responsibility Report 2019 OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 1

Welcome to our 2019 Responsibility Report

At Associated British Foods, our 1 Overview 22 Supporting society and purpose is to make millions of 2 Our positive contribution strengthening our supply chains people’s lives better through the 3 CEO statement 23 Introduction 5 Who we are 24 Respecting human rights and labour rights provision of safe, nutritious food 6 What’s important to us 29 Promoting health and wellness and affordable clothing. In this 7 Our approach to responsibility 32 Supporting local economies report, you can find out how our 8 Supporting the UN Sustainable 37 Respecting the environment activities over the last year have Development Goals 38 Introduction supported our people and suppliers, 9 Investing in our people 39 Addressing the challenge of climate change contributed to the communities in 10 Introduction 44 Using natural resources responsibly which we operate and helped to 11 Looking after our people and keeping 49 Stewarding biodiversity them safe improve the world in which we 52 Improving animal health and welfare 16 Creating a diverse and inclusive live. We also demonstrate how workforce 53 Assurance statement everything we do is guided by 19 Developing and engaging our employees our core values.

Additional online information Please visit our website at www.abf.co.uk/responsibility for: Our previous corporate responsibility reports and updates

Our Modern Slavery and Human Trafficking Statement 2019

Our 2019 ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 2

Our positive contribution Our businesses have always been driven by the aim to make a lasting, positive contribution to society. Our values help us to articulate the long-term benefits we can deliver for our people, suppliers, neighbours, customers and the environment.

How we make a difference

Investing in our people Supporting society and strengthening Respecting the environment We prioritise the safety and wellbeing of our our supply chain We are working hard to reduce our carbon footprint, employees, contractors and others we work with, and We respect the rights of people within and beyond use energy, water and natural resources efficiently, aim to cultivate diverse and inclusive workplaces where our operations, develop products that help to secure ingredients for our businesses responsibly and everyone is respected, supported and empowered to support healthy lifestyles and aim to strengthen the promote biodiversity. fulfil their potential. communities where our suppliers live and work.

138,097 £29m 10,864 28,000+ 52% 25% people employed invested in safety hours of supplier farmers enrolled in of the energy we used increase in British Sugar’s risk management training delivered Primark’s Sustainable came from renewables sugar beet yield over the Cotton Programme last decade

52% 1,980,009 2,519,077 350,000+ 80% 169 m3 of our total workforce hours of employee meals provided through people impacted by of the waste we of water reused by and 36% of our training delivered surplus food donations to Twinings’ Sourced with generated was sent for our operations senior management food banks Care programmes recycling, recovery or are women other beneficial use

For more information on our 2019 performance, and for the definitions these figures are based on, see ourESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 3

CEO statement

“Significant political, economic and social changes have been taking place in many of our key markets so, as a company, we have also had to evolve. However, the core foundations of who we are remain unchanged and will continue to be the reasons for our success for the foreseeable future.”

George Weston Chief Executive

Who ‘we’ are We are a big company and what we do We are a company engaged in the most matters. Every day, Associated British Foods necessary of business activities: providing businesses manufacture and provide safe food people with access to good-quality, affordable and affordable clothing to people in dozens food and clothing. In doing this well, we make of countries. This is our greatest contribution our greatest contribution to the world. to wider society. Since 2017, I have been a member of the British Government’s Business We believe as strongly as ever that our leaders Against Slavery Forum, working with the in individual businesses and markets should Government to tackle the appalling problem be empowered to make the right decisions for that is modern slavery. However, our greatest their customers and their market. positive impact will not come through what I do, but through the everyday operation of our We expect our businesses to do the right businesses around the world. thing, and hold our leaders to account for ensuring their business operates according to Why now is the time to articulate the standards we expect. In this report, for the our values first time we set out the values that capture As people search for certainty and clarity the spirit in which we do business every day. from business, we have decided this is the moment to codify our company-wide values. We trust our colleagues and believe in turn that These are not new values recently discovered; the trust we foster within our business spills rather they are the underlying threads that run over into the relationships we develop with through every interaction at Associated British customers, suppliers and the communities in Foods. Articulating our four core values, as we which we work. are doing this year, provides common clarity We encourage our businesses to think and act and guidance for colleagues, customers and for the long term, seeing beyond the current suppliers and enforces our purpose. short-term turbulence in some markets.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 4

What do the values mean? Progressing through collaboration safe. Our Sugar business committed to take How these values are lived out Acting with integrity Our business model encourages individual seriously indigenous land rights, and it does. in the business Acting with integrity means that the trust that businesses to collaborate on common topics Our UK Grocery business has said it will source Values have no force unless they are lived out others place in us is honoured, resulting in of interest. This is as true for corporate cage-free eggs by 2025, and it will. Twinings through repeated action. As a company that consistent and fair ways of doing business. responsibility as it is for any operational has set a goal of improving the lives of half a clothes and feeds people, we know that to What starts in the boardroom flows out into priority. For example, our Primark ethical trade million people by 2020, and it will. These are do it well requires integrity and rigour as we the business, through our farms and factories, team has provided a centre of excellence just some examples of the value of pursuing consistently strive to deliver quality and value. and into our supply chains. Whether our on sourcing responsibly, benefiting those our objectives with rigour. Our values are on display every day across our customers buy a loaf of Kingsmill bread or a in their supply chain and other Associated Our purpose business and should be as evident to a supplier speciality animal feed product from AB Agri, British Foods businesses through sharing Our scale and heritage mean that those outside as to a customer. As we navigate the future they know they can trust the quality of our experiences. We take the same approach our business, from customers to investors, want together, our values will help keep us on the products. Similarly, when Primark places an when we collaborate with external partners, us to show leadership on a range of topics, such right path. order, the supplier knows we will pay on time, such as Unicef, Save the Children and as respecting human rights and protecting the providing them with the certainty that allows The Wildlife Trusts, to leverage our global environment. We have always expected high You can read this report as an exposition of them to invest in their business. expertise for local good. Through collaboration, standards in the way we operate, and those of our company’s values in action, but inevitably we’re also ensuring safer, fairer working us in leadership have expected everyone in the a summary such as this cannot capture all Respecting everyone’s dignity environments and promoting thriving business to fulfil their ethical responsibilities. the many acts of decency, kindness and Whether it’s our direct employees, our communities in resilient environments. For our part we leaders try to live up to the neighbourliness that take place in our business suppliers, our partners or our customers, expectations of the thousands of people in our every day. I want to thank and pay tribute to we treat people with dignity. We operate in Pursuing with rigour businesses, that we behave ethically as well. those colleagues who bring to life our values, a number of markets and sectors where we When we say we will do something, we do and who in bringing their own values to work are able to make a significant difference to it. Pursuing with rigour is a hallmark of the Our central role in the company is to provide help teach us what our values should be. success of our business. A further feature the lives of the people on whom we rely, be a framework in which our businesses have of our business is the professionalism our they sugar-growing communities in southern the freedom to pursue opportunities with colleagues show in their roles. It may sound Africa with Illovo or tea pickers in East Asia entrepreneurial flair. While operational old-fashioned but a combination of taking with Twinings. To us, the people cited on the decisions are made locally, we support the one’s obligations seriously and having pride in pages of this report are not anonymous case individual businesses by facilitating the sharing one’s work matters to us. Pursuing with rigour George Weston studies but our neighbours, colleagues and of best practice. partners. We serve our customers by providing means thinking about the total impact of our Chief Executive them with access to good-quality ingredients business up and down our supply chain. We This report explains the activities we have and food and affordable clothing, as well as say we take health and safety seriously, and undertaken and are undertaking, as they meeting their expectations that we care for we do. Although we strive to avoid them, when affect people, society and our supply chains, those in our supply chains. accidents happen they only serve to make us and the environment. redouble our efforts to make all our operations

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 5

Who we are Since our foundation as a bakery business in 1935, we have evolved into a diversified international food, ingredients and retail group. We have 138,097 employees and operations in 52 countries across Europe, southern Africa, the Americas, Asia and Australia. Our decentralised structure comprises businesses operating through five strategic business segments.

Grocery Sugar

Ingredients Retail Grocery Sugar Agriculture Ingredients Retail Agriculture Central

Our grocery brands occupy AB Sugar is one of the AB Agri is the UK’s A global leader in yeast, Primark is the largest Revenue leading positions in markets largest sugar producers largest agri-food bakery ingredients and clothing, footwear and £m across the globe. in the world. Illovo is the company and a leader specialty ingredients accessories retailer in the £3,521m £1,608m Twinings and Ovaltine largest sugar producer in in nutrition, science and for the food, feed and UK, and has a significant Twinings and Ovaltine are our Africa and British Sugar is technological innovation pharmaceutical industries. portfolio in ten other leading global hot beverage the sole processor of the in animal feed. Yeast and bakery European countries and brands enjoyed in more than UK sugar beet crop. AB Agri ingredients in the US. 100 countries. Europe AB Agri produces animal AB Mauri operates globally in Primark £1,385m £1,515m yeast and bakery ingredients £7,792m Europe and international Our UK beet sugar factories feed, nutrition and Primark is a major retail group production, supplying Our portfolio includes Mazzetti typically produce well over technology-based products operating stores in the UK, industrial and artisanal bakers Employees balsamic vinegars, Jordans and 1 million tonnes of sugar and services for the agri- Republic of Ireland, Spain, Number annually. Azucarera in Spain food industry. It supplies and the foodservice and Portugal, Germany, the Dorset cereals, Ryvita, Kingsmill, 33,619 wholesale channels. It is a 6,664 Patak’s and Blue Dragon, Silver produces beet sugar from compound animal feed, Netherlands, Belgium, Austria, technology leader in bread Spoon and Billington’s sugars. three factories and also feed enzymes, specialised France, Italy, Slovenia and the refines sugar from cane raws. feed ingredients and improvers, dough conditioners US. It offers customers quality, The Americas Southern Africa a range of value-add and bakery mixes. up-to-the-minute fashion at In the US, Mazola is the leader 17,059 Illovo is Africa’s largest sugar services to farmers, feed Specialty ingredients value-for-money prices. 77,787 in corn oil and we sell a range of producer, with agricultural and food manufacturers, ABF Ingredients produces baking brands through retail and Buying and merchandising 443 2,525 and production facilities processors and retailers. value-added products and foodservice channels. Capullo is teams in Dublin (Republic of in six countries. Typical It also buys grain from services for food and non-food Ireland) travel internationally to Adjusted operating profit a premium canola oil in Mexico. £m annual sugar production farmers and supplies crop applications. It manufactures source and buy fashion items Australia is 1.7 million tonnes. inputs through its joint and markets enzymes, that best reflect each season’s £380m £26m Ham, bacon and smallgoods China venture arable operation, specialty lipids, yeast extracts, key fashion trends. Primark’s £136m are sold under the Don and We operate two beet sugar Frontier Agriculture. extruded ingredients, range includes womenswear, KRC brands. Tip Top Bakeries £42m factories in the north east pharmaceutical excipients lingerie, childrenswear, produce a range of well-known of China, with annual sugar and antacids worldwide, with menswear, footwear, breads and baked goods. Yumi’s production capacity of over manufacturing facilities in accessories, hosiery, beauty produces hommus, vegetable £913m 180,000 tonnes. Europe, America and India. and homeware. dips and snacks.

For more on our 2019 performance see our ESG Appendix and annual report and accounts OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 6

What’s important to us

Our purpose Our commitment Our purpose is to provide safe, nutritious and We are proud of our history and, at the same affordable food and clothing that offer great time, we are focused on making a positive value for money. In doing these things well, we difference, now and in the future. A great deal know we are doing good every day by helping has changed since we were established more to make millions of people’s lives better. than 80 years ago, but one thing has remained constant: our commitment to operating responsibly and ethically at all times.

Our values We live and breathe our values through the work we do every day. They guide Our focus areas our everyday behaviour and help us to articulate how we deliver long-term benefits for In 2019, we approached our reporting at our people, suppliers, neighbours, customers a group level across all Associated British and the environment. Foods businesses rather than structuring our reporting by individual business segments. To demonstrate how we live our values every RESPECTING EVERYONE’S DIGNITY PROGRESSING THROUGH COLLABORATION This has resulted in our report being divided day, we have – for the first time – set out a We strive to protect the dignity of everyone We work with others to leverage our global into three sections: group-level articulation of the values expressed within and beyond our operations, so that expertise for local good. Through collaboration • Investing in our people; by our individual businesses. These are not new the people who make our products feel with our stakeholders, including non-governmental • Supporting society and strengthening our values recently discovered, but the underlying safe, respected and included. organisations (NGOs), we’re working to create supply chains; and threads that run through every interaction at safer, fairer working environments and promoting • Respecting the environment. Associated British Foods and its businesses. ACTING WITH INTEGRITY thriving, resilient communities. These do not replace each business’s own We proudly promote and protect a culture Under each of these focus areas, we report values, but rather consolidate and summarise of trust, fairness and accountability that PURSUING WITH RIGOUR performance and progress against the issues the most common themes from across the puts ethics first. From farms and factories From the products we make to the way we that are material for our businesses and group. We developed them by distilling how our right through to our boardroom, we are preserve the resources we rely on and support our stakeholders. Although distinct for the own businesses describe and implement their committed to embedding integrity into the people we work with, we are always learning purposes of this report, these topics are of values. By collating the values from 22 of our every action. and incorporating better practices. Across our course related and interdependent. own businesses, we were able to use language businesses, we are partnering with industry experts that reflects our businesses’ own words. to help us work towards the highest standards. Our values are woven through everything we do, with each of the case studies articulated throughout this report demonstrating one or Please see the Governance section of our 2019 ESG Appendix for a summary of the commitments our businesses have made or signed up to. more of our values.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 7

Our approach to responsibility

Quite simply, acting with and resources in place to ensure we regularly Some of the wide range of issues we have Enabling employees to voice concerns responsibility is the right thing to manage a wide range of financial and non-financial addressed include the following: Our Whistleblowing Policy is supported by an issues, and the chief executives of each business do. Today’s business environment Nutrition – we work with various anonymous hotline administered by Expolink, submit an annual summary of key risks and active 24 hours a day, 365 days a year and made is dynamic and unpredictable, so associations and agencies to help consumers mitigation plans. Read more in our Environmental, to make informed choices about food and available to all our businesses (except Illovo, we need to identify and manage our Social and Governance (ESG) Appendix and our health, such as highlighting products with which uses a service provided by Deloitte). current and potential risks. To help annual report. higher fibre content or those that have been The service offers a range of reporting channels us do this, we engage regularly with fortified with essential vitamins. in several languages, including toll-free We encourage employees and third parties to our key stakeholders, including our telephone numbers. report any activities they believe may be against Environment – we detail our annual employees and neighbours. performance in addressing climate change, the law, in breach of our own codes and policies, When a report is received, senior executives are water and deforestation risks and exploring Third-party assurance or contrary to the values we stand for (see page 6). alerted so that an investigation can begin and opportunities via CDP – see our response appropriate action taken. The independent and We commissioned EY to assure our report Engaging with our stakeholders documents at www.cdp.net and confidential nature of this customised hotline against the International Standard for Assurance To inform our risk management process, we on our own website. Engagements (ISAE) 3000 and AA1000 helps to build trust among those who wish to engage regularly with stakeholders at group or Human rights – we collaborate with AccountAbility Assurance Standard (AA1000AS, speak up. business level, depending on the issue. The suppliers, using Sedex and AIM-PROGRESS, 2008) with 2018 Addendum (AA100AP, 2018), stakeholder groups with whom engagement is to share audit findings, and engage with In the year to May 2019: which considers inclusivity, impact, materiality fundamental to our ongoing success include: organisations that assess performance • 92 notifications were received; and responsiveness. Through this process, EY • communities; on human rights issues, including the assesses whether our coverage of key issues is • 31% were resolved, with outcomes ranging Ethical Trading Initiative (ETI), Corporate balanced, whether relevant stakeholders were • consumers and customers; from reviews of processes and support for Human Rights Benchmark (CHRB) considered in determining our approach and if • contractors; individual employees to, where necessary, and KnowTheChain. we responded to their concerns adequately. We • employees; termination of contracts; also engaged EY to provide limited assurance • governments; • 44% were unsubstantiated and required over the reliability of 15 KPIs for the year ending no action; and • industry and trade associations; 31 July 2019. These are marked with the symbol • 25% remained under investigation • media;  in the following pages. See our full assurance (now resolved). statement on page 53. • investors and ESG research agencies; The most common grievances were human Managing key risks • NGOs; resources issues, unprofessional behaviour and • rankings and ratings agencies; With operations in 52 countries, we take our incidents related to bullying and harassment. responsibilities to society seriously. We aim to • regulators; and clearly communicate the positive impact of our • suppliers. We will undertake awareness campaigns activities, as well as the social and environmental to raise the profile of the whistleblowing challenges we face. We have systems, processes services we use in 2020.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 8

Supporting the UN Sustainable Development Goals

Our global efforts to make a positive As highlighted within the pages of this • Helping agricultural suppliers to use fewer contribution to society are closely report, the SDGs we believe are being most chemical pesticides and fertilisers. Twinings: how Sourced aligned with the United Nations supported by our business activities are: • Reducing waste generation and with Care supports the SDGs (UN) 2030 Agenda for Sustainable increasing recycling. Some of our businesses have assessed Development. • Improving food packaging technology to their own contributions to the SDGs, reduce food waste. and used the findings to inform their Four years ago, the UN General Assembly strategic approaches. For example, the adopted the 17 Sustainable Development • Helping to increase the yields and incomes Our businesses also make a notable work Twinings does through its Sourced Goals (SDGs), which aim to ‘create economic of smallholders and improving their resilience contribution towards the following SDGs: with Care programmes – which has prosperity, social inclusion and environmental to climate change. impacted more than 350,000 people sustainability for all’. Forming a blueprint for to date – directly supports eight SDGs. • Investing in research and technology to boost a more sustainable future, the SDGs require agricultural production capacity, particularly governments, businesses, academia and Turning the spotlight on SDG 1 (No through irrigation. citizens around the world to get involved. poverty), Twinings contributes to the • Donating surplus products to foodbanks. employment of many people on the tea In 2019, we undertook an assessment to • Reducing water withdrawals at our facilities. estates, farms and factories in its supply determine where we are making the biggest chain. As part of the Malawi Tea 2020 • Increasing water efficiency among contribution to the SDGs. This involved initiative, Twinings’ roadmap supports suppliers through collaborative Read more about this assessment process in mapping the 17 goals and 169 targets against livelihoods and enables workers to community programmes. our ESG Appendix. information provided by our nine business receive a living wage, helping to break divisions when compiling this Responsibility • Building partnerships to treat waste water and the cycle of poverty. To date, more than Report. This was used to rate our overall reuse or recycle more water in our operations. 5,000 people have received training to contribution to each goal and target with a • Implementing programmes to increase their income and more than high, medium or low relevance score. increase agricultural productivity and 1,000 have attended financial literacy resource efficiency. and inclusion programmes. • Encouraging inclusive working practices For further information on how and offering fulfilling employment. Twinings’ activities support the SDGs, • Investing in apprenticeships, graduate see the 2018 Sourced with Care report. schemes, bursaries and training for young people. • Promoting human rights and labour rights. • Maintaining safe working conditions for employees and suppliers. • Using natural resources more sustainably.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 9

INVESTING IN our people

We believe that an ethical business is primarily built by its people. Our people are central to our In this chapter business. We prioritise the safety and wellbeing 10 Introduction of our employees, contractors and others we 11 Looking after our people work with throughout our operations. We also and keeping them safe aim to cultivate a diverse and inclusive working 16 Creating a diverse and environment, where everyone’s dignity is inclusive workforce respected and where people are supported and 19 Developing and empowered to deliver to the best of their abilities. engaging our employees

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 10

Introduction We prioritise the safety and wellbeing A vigilant focus on safety Sustainable Development Goals of all our employees and those We have a strong safety culture that is By investing in our people, we are contributing who work with us. We also want embedded throughout everything we do. We to the following UN SDGs: strive to minimise incidents, in the belief that them to have every opportunity to every employee and contractor must be able By maintaining robust workplace develop and progress. As a diverse, to work safely. Read more about health and safety and wellness programmes and decentralised organisation, our safety on pages 11 to 15. extending our safety commitments businesses operate in different across fields, production plants and Celebrating a world of difference vehicles, we’re working hard so that global contexts, so they are given and diversity the people who work for and with us the flexibility to manage these With operations across geographical regions and return home healthy. issues at a local level. industry sectors, we are proud of our talented, We support the development and dedicated and diverse workforce. While we promotion of women across our LIVING OUR VALUES have focused on gender equality in recent years, group and the progress of gender we continue to develop practices and create We respect the dignity and diversity equality in our workplaces. opportunities that promote equality and support of our people, expect them to act with diversity in all its forms. See pages 16 to 18 integrity at all times and help them strive From farms to factories to for further details about our approach. for improvements every day with rigour boardrooms, our range of global divisions provides a spectrum of and dedication. With the commitment and Enabling the best in our people collaboration of everyone around the world, decent and dignified work for all We pride ourselves on being a first-class we can make Associated British Foods a safer, skill levels and promotes economic employer that actively enhances our fairer and more rewarding place to work. Our development in many regions. people’s skills and creates opportunities for people should recognise the culture that we progression and development. We invest share, and thrive in an environment where in their capabilities through a combination high moral standards are expected. of formal training, apprenticeships and Read more about our values on page 6. mentoring, to ensure they can meet our expectations and fulfil their own ambitions. As a result, people frequently stay with us and build long, rewarding careers across the group. Discover more about workforce engagement on pages 19 to 21.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 11

Looking after our people and keeping them safe

The health and safety of our Addressing our safety risks Promoting health and wellbeing employees, contractors and Our businesses have tailored action plans to In addition, our activities to promote health reduce the risk of injuries and incidents in their span four broad strands: those affected by our activities is a own operations. Our actions to mitigate safety priority. All our businesses invest in • compliance with our statutory obligations, risks revolve principally around minimising such as preventing exposure to harmful programmes that drive continuous harm from moving vehicles, preventing falls substances; improvements in processes and from height, preventing injuries from moving • encouraging fitness and health for both machinery, working safely in confined spaces standards for health and safety. life and work; We also encourage and empower and managing our contractors. • preventing musculoskeletal injuries from our people to report and address We are continuously assessing the safety manual handling; and concerns so that everyone feels safe risks across our businesses and for the people • managing stress and mental health issues. and secure in their place of work. who work for us and with us. Over recent years, we have identified that we can improve While some of these initiatives are Our approach to health and safety our monitoring of contractor safety and in relatively new, we are encouraged All our businesses must comply with 2017, we introduced a new key performance by the progress we have made Associated British Foods’ Health and indicator to measure this area to help us so far. Safety Policy. We pursue this with rigour target any actions required. across the group, and many businesses supplement the group policy with additional We have many safety programmes in place ABF Ingredients: policies of their own. Group heads of health to encourage our people to take responsibility simplifying workplace safety and safety provide regular updates on for keeping themselves and their colleagues ABF Ingredients has developed a new safety trends and report progress against safe. To ensure our people are equipped safety toolkit to manage its approach key performance indicators to the board. with rigorous safety knowledge, we provide to accident prevention, and to keep the The senior executives who are accountable a wide range of training on high-risk areas, people who make its products feeling for safety performance are supported by delivered in the classroom, via e-learning and safe, respected and included. committees and teams that help to identify on the job. We also hold regular toolbox talks and address key issues, as well as share and, as at Don, one of our George Weston The Six Safety Essentials help the best practice across the group. Foods businesses, we cease production business to identify the core safety for dedicated Stop for Safety events where considerations for any working people discuss safety issues, identify hazards environment, share a structured and commit to better ways of working. framework and measure its impact. Produced in four languages, the To support these initiatives, some of our framework is briefed to employees invested in safety risk businesses engage employees through £29m at regular intervals and supported by management in 2019 internal social media and reward responsible visual displays. practices with safety awards.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 12

Our safety performance Our LTI rate of 0.65%, compared with 0.80% Primark operates across countries where the This year, there were no work-related in 2018, represents a 19% reduction. For approaches to safety, in terms of national fatalities and 76% of our factories and stores contractors, the annual LTI rate was 0.19%, legislation, can influence injury reporting. achieved a year’s operation without any compared with 0.37% in 2018, which is a For example, stores in France account for Reportable Injuries (RIs); 67% did not have 48% decrease. The decrease in LTIs among nearly half of Primark’s employee LTIs this a Lost Time Injury (LTI). contractors, from 82 to 58, equates to a year (229 of 513). Nonetheless, these stores 29% reduction. have decreased their employee LTIs by 34% We recognise that there continue to be areas compared with 2018. During 2018, Primark of high safety risk in our businesses. We work Improving safety performance made organisational changes to advance its continuously towards our goal of zero harm in Across the group, the key risks remain moving safety performance, with positive results the workplace. Our goals remain to eliminate vehicles interacting with people; falls from already being achieved, including an overall fatalities and continuously improve our height; machinery safeguarding; the storage reduction in employee LTIs of 20%. safety performance. and handling of hazardous materials; manual handling of heavy and awkward loads; and the To see our recent performance in more detail, Reportable Injuries management of contractors. download our 2019 ESG Appendix. RIs to employees fell by 14%, from 663 in 2018 to 573 this year, which equates to 0.54% Our businesses have focused their safety efforts of our employees having an RI. Our Retail in four key areas: providing strong leadership business contributes 73% of the group’s RIs but from senior management; identifying and demonstrated strong performance, reporting a managing activities with the highest risk of fatal AB Mauri: getting results with Programme SAFE 19% decrease in employee RIs from 519 to 419. and serious injuries; supporting line managers Programme SAFE (Safety Achievement For Everyone) raises awareness of health and safety accountable for workplace safety with safety issues among AB Mauri’s employees and contractors, reinforcing its safety culture and Lost Time Injuries specialists; and actively involving employees driving progress towards its long-term goal of zero accidents. Evolving from a pilot in Italy This year, LTIs among employees decreased in their own safety. In addition, contractors are in 2014 (Project SAFE) to a business-wide initiative, each site establishes its own goals and  by 18%, from 833 last year to 682 in 2019. increasingly involved in safety management, action plans, based on an assessment of 30 safety elements. This equates to an LTI rate of 0.65% of staff helping to drive down their injury rates. experiencing an injury that resulted in time The programme has been rolled out to 45 sites – it will be deployed at the remaining sites off work. Our Grocery, Sugar and Retail Lost Time Injuries – employees during 2020 – and has already delivered results. Last year, employees and contractors businesses all recorded notable reductions Number and percentage of employees having an LTI in submitted a total of 36,691 Safety Improvement Reports (SIRs). Eighty-six per cent of SIRs the year in employee safety incidents. Of our 190 2019: 682/0.65% are closed within 90 days. This total compares with the 2,500 SIRs submitted in 2012, manufacturing sites, 121 (64%) went without 2018: 833/0.80% before SAFE was introduced. Of our manufacturing sites, 23 – more than half – have now an employee LTI this year. 2017: 768/0.76% gone three years without an LTI. In addition, more than 670 Leading for Safety training 2016: 645/0.66% 2015: 659/0.68% courses have been delivered to employees.

Factories and stores with zero employee LTIs 2017 354 sites, 66% of total 2018 382 sites, 69% of total 2019 375 sites, 67% of total

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 13

AB Agri: driving safety behind AB World Foods: going the wheel for zero with Safety Days To transport the 5 million tonnes of In pursuit of its ambitions animal feed and ingredients that AB for no LTIs, significant near Agri sells across the UK every year, the misses or legal breaches, AB company uses third-party hauliers as World Foods stops production well as its own vehicles. This makes at its manufacturing locations its duty of care process more complex. for one day a year to reinforce Seeking to improve its practices health and safety messages. whenever possible, incident reporting Over recent years, these has now become a contractual obligation Safety Days have been for AB Agri’s logistics providers. extended to cover wellbeing, sustainability and food Reflecting its Target Zero programme safety issues. ambitions for no incidents and no harm, the company joined British Sugar in co- This year, more than 600 hosting a second annual Haulier Safety colleagues participated in Day in May 2019. With over 200 people activities encouraging them from more than 100 haulage companies to be safe, healthy, aware, attending, the event in Peterborough involved and responsible. included sessions run by the Health and To maximise engagement Safety Executive, IOSH Rural Industries and fun, the event includes Group and Zurich Insurance, as well as an escape room-style AB Agri senior managers. challenge, and a group exercise and tai chi session. Safety days help AB Agri and British Sugar learn from its partners’ insights and encourage everyone involved in transporting its products to make health and safety a priority.

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Health programmes for employees A healthy workforce extends beyond just British Sugar: a flagship building for managing health and safety risks. Our holistic our industry approach extends to programmes and In December 2018, British Sugar’s new initiatives that proactively help employees to Peterborough offices (see right) opened maintain and improve their overall wellbeing. for business, but these are not just any offices. The new, state-of-the-art For example, at Ohly, part of our Ingredients building – also home to ABF Ingredients, business, 160 employees are benefiting from a AB Mauri and AB Sugar – will provide a comprehensive programme that includes regular template for the company’s rigorous and company doctor visits and health checks, a collaborative approach, and represents back-to-work process after long-term illness and a clear statement of support for an psychological work environment assessments. industry with a strong and vibrant future. The programme also organises sporting events and offers employees help to quit smoking. The new building is designed with its occupants in mind, and incorporates SPI Pharma’s Employee Wellness programme the latest ideas in workplace promotes positive behaviours and a supportive, wellbeing, atmosphere and lighting. inclusive and respectful environment for Features include a central atrium to lifestyle changes. It offers incentives for those provide a high degree of natural light – participating in activities such as nutrition and minimising the need for powered ABF Ingredients: when workplace safety means a healthier environment exercise sessions and biometric testing. lighting – and open, flexible spaces to Until two years ago, many of the tanks and pipes at Ohly’s Hamburg facility were not At Silver Spoon, one of our UK Grocery encourage collaboration. insulated, resulting in hot surfaces and a working environment in which temperatures businesses, the latest annual wellbeing frequently exceeded 40 degrees Celsius with high humidity. To support better workplace Designed to ‘passivhaus’ principles – week in January encouraged interest and practices, the factory initiated a programme to insulate these surfaces and make working the leading international low-energy participation through the theme of ‘Everybody conditions safer, healthier and less stressful. standard – the office also incorporates Matters’. Events included baking and sharing solar roof panels, rainwater harvesting, bread at our flour mill, yoga and mindfulness The programme also had a positive impact on the environment, as the insulation reduced low-energy LED lighting, video sessions, and fruit smoothies for everyone. electricity use, resulting in savings of more than €100,000 a year. It also cut maintenance conferencing and charging points for costs and extended equipment life. Ohly aims to replicate the initiative’s successes to And at Allied Mills and Allied Bakeries, electric vehicles. improve the safety culture across the business. programmes across the UK include Know Your Numbers to help people better understand their physical health, book clubs, coffee mornings and fruity Fridays.

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Supporting better mental health at work Sound mental health is an essential part of a George Weston Foods: keeping Jordans Dorset Ryvita: safe and healthy workplace, and we continue mental health in mind working on wellbeing to invest in programmes that raise awareness George Weston Foods works with To contribute to making Jordans Dorset and provide practical assistance to our people. Benestar, an employee assistance Ryvita a great place to work, the provider, to offer support, counselling Workplace Wellbeing Team is building At AB Agri, the global Employee Assistance and a diverse range of wellbeing an open and positive environment that programme (EAP) provides support initiatives to our people throughout takes a balanced approach to physical, mechanisms such as confidential telephone Australia and New Zealand. Benestar emotional and mental health. Trained helplines and face-to-face counselling for provides clinical support and coaching in mental health first aid, the team’s 35 colleagues and their immediate family to colleagues and managers on a range individuals support colleagues by: members. In 2018/19, the service took 160 of issues, including personal matters, calls – all from UK employees – and 411 EAP • helping to spot potential signs and health and nutrition, financial issues, hits online. Anyone experiencing a mental symptoms of emotional ill health, and relationships, change in the workplace, health issue or suffering from emotional directing colleagues to professional stress and mental health, and managing distress can also use the global Health support if needed; conflict. All employees and eligible Assured website to access information and • promoting good nutrition, family members can access the advice on a wide range of associated topics, exercise, relaxation, mindfulness confidential service free of charge. access a 24/7, on-the-go Health e-Hub app or and work–life balance; contact employees qualified as mental health On 12 September each year, the • making it okay to discuss physical first‑aiders. company also supports RU OK Day. and emotional health issues and their This national day of collaborative action impact; and As part of SPI Pharma’s Employee Wellness reminds everyone that it’s fine to ask programme, employees can attend seminars • organising a calendar of events and someone how they are and to offer on dealing with conflict and improving activities to support and promote support to those who are struggling. financial education. These are intended to physical and emotional wellbeing. In 2018, the North Ryde office held a help people learn how to manage stressful coffee morning event to raise funds situations and are frequently organised by for the RU OK Foundation, and shared the employees themselves. resources with other sites to promote the ‘RU OK?’ message.

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Creating a diverse and inclusive workforce

We strive to create diverse, inclusive working environments in which AB Mauri: inclusion in action Primark was listed in Retail everyone’s dignity is respected and As part of its Being a Good Neighbour programme (see page 35), AB Mauri initiated a six- Week’s Diversity Super League month trial to train a local man with an intellectual disability at its Tucumán factory in Argentina. people are valued, regardless of 2019 as one of the UK’s top ethnicity or race, religion, gender, 15 companies for fostering Having held two workshops to raise awareness of diversity and inclusion issues, the plant age, nationality, sexual orientation an inclusive culture. teamed up with Fundación EDAPI, a local educational centre that helps young people with or disability. We continuously work learning difficulties to gain the skills they need to live independently (see below). to break down any unconscious bias The site welcomed one student, Mauricio, enabling him to mix his education with work or barriers – real or perceived – that experience on the packing line – a demanding position requiring teamwork and an ability to can sometimes prevent talent from follow specific processes to a tight timeline. Thanks to the support of his supervisors and reaching the top. We recognise the importance of identifying, colleagues, Mauricio has also been able to overcome the stigma that people with similar attracting and nurturing the best talent, impairments often face in Argentina. Our approach to workplace equality and continue to strengthen our recruitment and diversity processes, aiming to interview a balanced Having increased his hours and extended his trial period, AB Mauri plans to offer Mauricio a Diversity is key to our culture, gives us a shortlist of men and women. full-time position, as well as support another student in the same way over the next fiscal year. competitive edge and is one of the ways we live our values every day. Our group’s We want all our businesses to thrive by decentralised nature means many of our enabling every individual to deliver their best. businesses have their own, locally developed By building a culture that values different policies. However, there are also several skills, experiences and backgrounds, we better groupwide initiatives, including our Diversity reflect the communities in which we operate and Inclusion Task Force, a mentoring scheme and are better able to meet the needs of and unconscious bias training for managers. consumers and customers.

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A better gender balance Gender balance: women in the workforce Breaking down barriers to talent Across the group, women make up 52% of Share of workforce by gender Underpinned by the mantra ‘No Barriers to ABF Ingredients: driving dialogue our total global workforce, but they are less Talent’, our Diversity and Inclusion Task Force on diversity Men 48% Women 52% well represented in senior management roles enables representatives from each division to In October 2016, AB Enzymes created and our executive population. We remain meet regularly, share knowledge and embed the Women’s Business Forum. Every committed to gender diversity and removing All employees best practice into our core processes. quarter, some 30 women from across barriers to talent. its operations in six different markets Our Two-Way Mentoring programme aims to (Germany, Finland, China, Singapore, Our gender pay gap in Great Britain has foster networks and aid the career development Brazil and the US) collaborate on the remained largely unchanged over the last year. of our high-potential talent. To date, 200 diversity and inclusion agenda. The median hourly pay rate for women is 28% Men 64% Women 36% individuals from 50 businesses in 19 different lower than that for men, and women’s median countries have participated in the programme, Enhanced by guest speaker sessions, bonus pay rate is 95.9% higher than men’s. Senior receiving mentorship and support from a senior topics discussed include regional management leader in a business different to their own. differences in maternity provision and Gender balance at the top of the group returning to work after pregnancy. The changes slowly because we have a stable Since 2012, we’ve also maintained our Women’s group, inspired by Women in ABF, has senior team, who are mostly men, with long Business Education Forum (WBEF) for female even developed a good practice guide tenure. This also means that more men than colleagues in professional or managerial roles. for HR and line managers to refer to women receive a bonus. Recently renamed Women in ABF, the one-day The workforce in our before, during and after maternity leave. Primark stores represents sessions – held three times a year in London – For more information on our gender pay gap in 181 different nationalities. provide many of the group’s 664 members with As well as supporting dialogue and Great Britain, see our 2019 annual report and a chance to network, share their career journeys, understanding, the forum provides accounts. A number of our businesses, such learn more about the different businesses, learning opportunities, promotes role as Primark, AB Agri and British Sugar, publish outline opportunities and hear from guest models and mentors, and coordinates their own gender pay gap reports online. At George Weston Foods, speakers from outside the business. celebrations for International Women’s we hold Harmony Day events Day (as well as International Men’s to celebrate our cultural diversity. Day). The internal social networking app Yammer is now being used to facilitate real-time interaction between members.

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UK Grocery: building inclusive businesses Primark: supporting long-lasting Our UK Grocery businesses aim to embed fairness and integrity through initiatives, policies change and behaviours that are designed to remove barriers, enhance reputation, and help people to Committed to diversity and inclusion feel respected and included. throughout the business, Primark partnered with the International Lesbian, A devolved approach requires each of our Grocery businesses to have its own diversity and Gay, Bisexual, Trans and Intersex inclusion (D&I) strategy and team. But in the spirit of collaboration, the UK Grocery division Association (ILGA World) to launch the D&I Team is responsible for sharing best practice across the division. Feeling Proud collection. The limited- edition range included shirts, shorts and The businesses are making good progress but there’s always more to do. For example, the bags bearing the rainbow motif. Building Future Leaders programme, which encourages and facilitates women coming into leadership positions, has been completed by more than 150 women. Leading Inclusively – Through the partnership, Primark an immersive programme that encourages collaboration, creates a more inclusive culture donated £150,000 to ILGA World in and drives performance – is also being piloted. support of its work as an international advocate for lesbian, gay, bisexual, At AB World Foods, the Insights tool is used to understand the variety of approaches and transgender and intersex (LGBTI) rights. motivations of different people. It helps to improve working relationships and encourages The donation will help to fund research colleagues to value the contributions of others, particularly during development activities compelling governments to repeal among graduates, managers and senior leaders. discriminatory legislation, develop ways for LGBTI communities to collectively advance equality worldwide, and continue to provide direct support and George Weston Foods: supporting a fresh resources for more than 1,500 member start for refugees organisations in more than 150 countries. Recognising the role secure employment plays in helping refugees begin productive lives in “Thanks to this partnership and a new country, Don Castlemaine’s Refugee Primark’s generous support, we will Employment programme helps those arriving be able to redouble our efforts to help in Australia to find work and improve their LGBTI communities worldwide.” language skills. They are given information about André du Plessis, Executive Director, employment opportunities and receive support ILGA World if they join us. To date, Don has supported 97 Karen people who fled persecution in Myanmar and settled in Victoria, as well as several refugees from other nations. Find out more on the Jobs Victoria website.

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Developing and engaging our employees

We pride ourselves on being a our workforce. Events in schools and colleges We also give people the chance to broaden leading employer, hiring people provide opportunities for our people to talk their experience and exposure with overseas about their personal career journeys and secondments. Illustrating this approach, IEP who demonstrate integrity, high provide further details on the many roles we gives early- to mid-career talent the opportunity moral standards and kindness recruit for across the group. to spend six months in another business towards others. We develop our within the AB Sugar division. Sixty-four young people’s skills and capabilities Once they are in a position to consider applying to people have benefited from the International through thousands of hours of one of our businesses, potential recruits can find Experience programme (IEP) since 2013. and apply for jobs, apprenticeships and graduate training, and create opportunities programmes on our careers sites, and get further Succession planning for progression and development, insights through our social media channels. Succession planning helps our businesses both personally and professionally. to build robust talent pipelines – especially …and keeping them for leadership and business-critical roles Our approach to developing our people It is important that our people are clear about – supporting long-term sustainability and We want to attract, recruit and retain the best what we expect of them and what they need growth. Our businesses have active talent people from the widest possible talent pool, to do to progress. In many of our businesses, management and review processes, through using inclusive and effective processes. We do managers hold structured conversations with which high-potential and high-performing not tolerate discrimination and work to ensure individuals, regularly review their performance individuals are identified and developed. all applications are treated equally. and set personal development objectives in line Succession plans inform our apprentice and with business needs. We also want to provide everyone who works graduate recruitment schemes while providing for us with a positive employee experience, We invest in our people to help equip them ways to train and retain existing employees. creating opportunities for them to gain skills to deliver and excel at work. As well as For example: and experience, develop lengthy and rewarding supporting opportunities for progression, • at British Sugar, nine existing employees careers, and fulfil their potential. learning and development, we periodically have embarked on a Project Management review and benchmark salaries and benefits. apprenticeship to enhance their skills and Hiring the best… Across the group, we offer a range of flexible further develop their careers; and Our businesses recognise that helping young work practices to suit those with families or people to manage their career paths and learn other caring responsibilities. • full-day off-site talent reviews at ACH Foods about the opportunities our industry has to allow senior staff to discuss succession plans offer helps us to attract the best talent and and assess the performance, potential and train them to become productive members of retention of those in critical positions.

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Training our employees Closing the skills gap Developing our talent across all our businesses Primark: developing our A persistent challenge for several of our around the world is vital for our future success, amazing people businesses is recruiting for roles in electrical engineering, mechanical engineering and so we provide a wide variety of in-house After 50 years of successful Growing farmers of the future chemistry, due to the skills gaps among training programmes. These include: performance, Primark is setting itself Working with The Prince’s Countryside young people. To help combat this, British • formal inductions to give new starters the up for sustainable future growth by Fund, the University of Reading and the Sugar invests approximately £250,000 a year chance to understand how the business making a significant investment in Royal Agricultural University, Jordans in apprenticeship and graduate programmes works, meet the leadership team and begin its leadership and talent. Primark has has launched a bursary programme to (excluding salaries). Over the last five years, building their internal network; recently launched two global leadership encourage more agriculture graduates 55 young people have been through one of its • bespoke training for individual roles, such as development programmes: to pursue careers in farming. From apprenticeship schemes, and to date 100% engineering, driving and retail; October 2019, the bursary will support • Lead Our Amazing, which was of those recruited as apprentices have stayed three UK undergraduate students with • coaching and leadership skills for management, launched in 2018 to support and with the business. a committed interest in sustainable such as the Lead Our Amazing programme for develop senior leaders, with almost farming at each university. senior teams in Primark (see right); and 200 colleagues completing it in its Supported by the UK Government’s first year; and Apprenticeship Levy, a number of our UK • specific courses to address important Meanwhile, at AB Agri, the ABN Grocery businesses also offer manufacturing topics such as modern slavery, health and • Lead Our Amazing Stores, which was Poultry Industry Programme (PIP), and engineering apprenticeships, and have safety, mental health issues, safe driving rolled out in 2019 to more than 400 run in partnership with the National recently started to provide additional training and food safety. store managers in 11 markets and Farmers’ Union (NFU), provides in technical skills, driving and IT. delivered in local languages. valuable training and skills for the next Such initiatives reflect our commitment to generation of poultry farmers. With The programmes, comprising three continuously invest in the skills of our people, 16 participants in 2018, the PIP offers two-day modules – Leading Self, helping them to enjoy a long and rewarding market insight into the British poultry Leading Others and Leading the career with us. meat and egg sectors. Future Business – are supported by 360-degree feedback, Action Learning Groups and online tools to further embed the learning.

Both have been designed to be interactive, experiential and stretching, 1,980,009hours of employee and are aligned in their leadership focus training delivered and objectives. This will help Primark to build a collective leadership ethos with an international mindset and strengthen capability across the organisation.

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Employee engagement ACH Foods also conducted an employee Primark: Top Employer award We value the opinions of our people and want culture and engagement survey recently, with Twinings Ovaltine: always listening a market-leading participation rate of 83%. This year, Primark received the to listen more effectively and frequently to For more than ten years, Twinings The results showed ACH to have a highly coveted Top Employer Germany 2019 how they feel about working for us. Many of Ovaltine has sought feedback from its engaged workforce in line with best-in-class certification from the internationally our businesses undertake regular engagement employees through annual surveys. organisations (when compared to similarly recognised Top Employers Institute. surveys, encouraging their employees to During that time, engagement levels sized US companies in the sector). ACH Foods The award recognises Primark’s provide honest feedback about their jobs, have increased from 67% to 88%, and exceeded the survey’s ‘all-industry norm’ in continuous efforts to create a good workplaces and overall satisfaction. scores in most categories now exceed eight out of ten key categories, achieving a working environment for its German the global high-performing norm. AB Agri conducts a Great Place to Work® score of at least 80% in more than half of the colleagues, and to promote and develop survey every two years, to seek feedback categories. ‘Alignment’ and ‘Teamwork and talent throughout the business. With advances in surveying tools on its workplace culture and to measure Collaboration’ were the two highest-rated and techniques, and with changing To receive this accolade, Primark engagement and trust across the workforce. In categories, while ‘Development’ – identified as expectations in how and when underwent a stringent assessment and our survey conducted in 2017, areas such as a key opportunity area – has now been made a colleagues can provide feedback on met the required standards in areas job security, diversity and culture scored well, key focus for all functional areas. their employment experience, the including learning and development, leading to the company being ranked among company has reviewed its listening and talent strategy, workforce planning, the top 50 best workplaces in the UK. engagement approach against current compensation and benefits, and best practice. Primark’s most recent survey for retail staff company culture. took place in 2017, with a response rate of Moving towards an ‘always on’ Building on this success, the company 85%. The insights gained from such dialogue listening approach, Twinings Ovaltine will participate in a three-year Top help to build better workplaces. For example, now plans to have more frequent but Employer programme, to support the most recent innovation to come out of shorter surveys, containing around the continuous development of its this continuing dialogue was the roll-out of 20–30 questions rather than the employment practices in Germany. Primark’s new leadership programme for store previous 70–80. The first global survey managers (see page 20). in this revised format will take place in early 2020, with individual business units running their own local surveys after that.

This new approach will be complemented by other listening mechanisms such as ‘town hall’ meetings, one-to-ones and performance reviews to help the company stay in touch with how its people are feeling.

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SUPPORTING

AND STRENGTHENINGsociety OUR supply chains

We are a diversified global group operating across In this chapter 52 countries with many complex supply chains. We 23 Introduction strongly believe in respecting the rights and dignity 24 Respecting human rights and of people within and beyond our operations and labour rights developing products that help to support healthy 29 Promoting health and wellness lifestyles. We aim, too, to be a good neighbour, 32 Supporting local economies strengthening the communities where our ingredients are grown and sold.

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Introduction A global organisation with Doing the right thing Sustainable Development Goals multi‑tiered supply chains should Our operations, as well as the suppliers By supporting society and strengthening our place considerable importance we rely on from farms to factories, supply chains, we are contributing to the must consistently meet our own ethical following UN SDGs: on the rights of its employees, requirements, which include internationally suppliers and communities. recognised standards of human rights. Read We help to improve supplier yields Associated British Foods is no more about respecting human rights on pages and incomes through investment different. Each of our businesses 24 to 28 and addressing social issues in our and training in sustainable focuses on the areas where it can sourcing communities on pages 26 to 28. agriculture, and donate surplus products to foodbanks to support reduce its negative impacts and Informed nutrition decisions vulnerable people in need. make a positive difference, from Our food businesses aim to prioritise We are making our products healthier the rights of the workers in its consumers’ needs, reformulating and by reducing salt and sugar content, supply chains to the health of the improving products and making relevant and run campaigns to promote the consumers who buy its products. information available for them to make benefits of natural ingredients as part informed choices. Read more about our of a balanced diet. efforts to make our products healthier on LIVING OUR VALUES pages 29 to 31. From farms to factories to boardrooms, our range of global Respecting the dignity and rights of everyone A force for good in our supply chains and the communities divisions provides a spectrum of We support a wide range of initiatives in which we operate is important to us. decent and dignified work for all that improve quality of life in the many We work with rigour to protect workers skill levels and promotes economic communities in which we live and work, and improve livelihoods in our sourcing development in many regions. empowering our suppliers and neighbours communities, and strive to meet the highest to build better futures. See pages 32 to 36 We are working to reduce standards of ethics and integrity in all that for more information about how we make a inequalities by respecting the we do. Collaboration with suppliers, NGOs, positive difference around the world. human rights of workers in our neighbours and consumers is vital if we are to global supply chains, empowering have a positive impact on society, and we aim women and increasing prosperity to always be a good neighbour. through greater productivity. Read more about our values on page 6.

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Respecting human rights and labour rights

Our businesses operate in 52 Nations Guiding Principles on Business and countries across the world, and we Human Rights (UNGP) and the International Primark: putting ethical sourcing on the map Labour Organization (ILO) Declaration on are wholly committed to respecting To enhance supply chain transparency, Primark launched an online global sourcing map in Fundamental Principles and Rights at Work. 2018. It contains information about its established suppliers’ production sites, the number the rights of people within and As a condition of doing business with us, of workers they employ and the gender split of their workforces. These factories are beyond our operations. We need suppliers are asked to abide by our groupwide responsible for more than 95% of Primark products for sale in our stores. to remain vigilant in understanding Supplier Code of Conduct and may also and addressing the specific risks of be required to comply with more stringent Updated twice a year, this map is now complemented by a downloadable PDF version, an human rights violations, both within business-specific codes covering areas such additional resource designed to provide interested parties with greater access to detailed as wages, working practices, and health our own operations and in our information about the company’s supply chain. As at July 2019, these resources cover and safety. 1,003 supplier factories in 28 countries. supply chains. To replicate ethical best practice in our own Our approach to human rights operations, our high-risk suppliers are regularly As well as employing 138,097 people, we audited. Some businesses also use the Sedex UK Grocery: ethical auditing in Turkey work with thousands of suppliers around platform to make supply chain data more the world and encourage them to operate widely available to customers and suppliers, In 2018, our UK Grocery businesses, responding to to our high standards. We continually or to assess their own suppliers. concerns about labour migration from the conflict in Twinings was one of work to better understand and minimise Syria, worked in collaboration with colleagues in Primark the first tea companies risks in both our direct operations and our Our approach to human rights is summarised to appoint a dedicated ethical programme manager and to publish a sourcing diverse supply chains, conducting rigorous in this section, with further details provided in agricultural supply chain specialist in Turkey. map. It includes assessments of many of our suppliers and our ESG Appendix and group Modern Slavery names and locations Our specialist, a native Turkish speaker, has assessed for several higher-risk commodities. Statement, as well as individual businesses’ of the tea producer the commodity processors that supply the UK Grocery modern slavery statements. Information groups and gardens We ask our suppliers to meet the same businesses against their Supplier Code of Conduct. can also be found on individual business the company sources internationally recognised standards that we She is now working with several vine fruit suppliers websites, such as Twinings’ Sourced with from, the locations of expect of our own operations and to follow on a pilot project to assess conditions within farming Care and Primark’s Our Ethics. other key ingredients international frameworks such as the United communities. and videos to show She also represents the UK Grocery division on an consumers what industry–government programme, managed by the Fair its sourcing origins Labor Association, to monitor and engage agency labour look like. providers in the region.

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Tackling human rights in our supply chain We are committed, and expect every one of Twinings: driving dialogue to Twinings: growing better Jordans Dorset Ryvita is part our sites as well as our suppliers, to operate resolve conflict livelihoods in Malawi of a public–private partnership ethically and support efforts to address In Sri Lanka, tea workers often lack the As part of the Sourced with Care seeking to eradicate child labour human rights issues such as: means to raise grievances with their programme and a desire to put ethics from the hazelnut supply chain • healthy and safe working conditions and, employers, causing tension and unrest. first, Twinings works to improve in Turkey, working alongside the where relevant, living standards; To help address strained industrial incomes for the people employed ILO, the Turkish Government and confectionery companies • eliminating forced and compulsory labour; relations, Twinings is collaborating throughout its supply chain. After with CARE International to establish commissioning the Understanding Ferrero, Nestlé and Mars. • preventing child labour; Community Development Forums Wage Issues in the Tea Industry study in • working hours, benefits and remuneration; (CDFs). These forums are designed 2013, the company became a signatory • gender issues; to protect the dignity of workers and to Malawi Tea 2020, joining industry • discrimination, harassment and abuse; and facilitate effective dialogue, giving partners, unions, government agencies workers and leaders a space to meet, and NGOs to support living wages for • the right to the freedom of association and, debate issues and share information. workers and thriving farmers. The first if not represented by a union, how workers collective bargaining agreement are empowered to negotiate. Seven estates in Sri Lanka have for the sector resulted in a large developed CDFs to date, benefiting We recognise that certain groups, including wage increase for tea workers. around 26,700 people. In 2018, 64 women, children and migrant workers, issues were raised at 22 CDF meetings Twinings is also working to improve are particularly vulnerable to human rights – ranging from property renovations and livelihoods among farmers in India, violations. The following pages give a brief productivity issues to flexible working Sri Lanka and China. To date, summary of some of our work to respect the hours – and about half (53%) were 5,376 people have received help rights of these groups in particular, as well as successfully resolved. to increase their incomes, and directing to where more detail can found. 1,317 have attended financial The programme has been extended to The Twinings Ovaltine Social Impact Team literacy and inclusion programmes. continue beyond August 2019, to include also worked with global sustainability three more estates and to increase the experts to conduct a human rights impact sustainability of the existing estates. assessment and map human rights risks for its own operations and supply chain. Find out more about how Twinings In addition, Twinings Ovaltine is conducting engages with the local communities health and safety training with its suppliers. it sources from on its Sourced with Care website.

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Respecting rights in retail Primark contributes to the employment Primark: creating connections for of more than a million people around the sustainable cotton world, so the welfare of the people who Primark’s long-term ambition is for all make its products matters. the cotton in its supply chain to be 3,319audits of supplier Even though Primark doesn’t own any sourced sustainably. Its Sustainable factories by Primark factories, the company strongly believes it Cotton Programme started with female in 2018 has a responsibility to check that its suppliers’ farmers in India in 2013, was expanded factories treat their employees well. Primark into Pakistan in 2018 and was launched has built a team of more than 110 ethical and in China this year with male and female environmental sustainability specialists. They farmers. By the end of 2022, the work in key sourcing countries to make sure business aims to have trained more than all factories meet a strict code of conduct, 160,000 independent cotton farmers in based on the ILO’s standards. That code sustainable farming methods, including covers everything from working conditions using fewer chemical pesticides and to wages. fertilisers as well as less water.

In Pakistan, those who have completed their first year of training have seen yields increase by 11.2% and input costs fall by 12.9%, resulting in an average rise in profits of 26.8%. Many of the Indian farmers who completed their training used their extra income to invest in equipment for their farms, to educate their children or to improve their housing and lifestyle.

The programme affords a high degree of supply chain transparency, enabling the cotton to be directly traced from farm through manufacture to store. More than 23 million Primark products made with sustainable cotton have been sold since they were first introduced in August 2017, including women’s pyjamas, jeans, duvet covers and towels.

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Creating safe workplaces Fire safety and prevention Primark: connecting career Primark: driving dignity digitally In the aftermath of the Rana Plaza building A baseline assessment of existing knowledge collapse in 2013, Primark was one of the suggested there was still a gap in workers’ opportunities in Bangladesh Primark wants everyone in its supply chain first international retailers to sign up to the understanding of fire prevention and safety. To The Sudokkho technical training system to understand their rights and responsibilities Bangladesh Accord on Fire and Building Safety. address this, the Janbo Mora Janabo (‘Know creates career opportunities for garment at work. To help educate workers, it In doing so, the company pledged to improve and Tell Others’) training programme, which factory workers in Bangladesh, and sometimes uses technology to encourage a the structural and electrical safety of garment Primark delivers with the NGO SHEVA, has enables factory managers to better meet culture of trust, fairness and accountability. factories through regular inspections, remediation now reached over 148,000 workers in 83 their need for skilled workers. In April 2018, the company began trialling a plans and comprehensive training. Since 2013, factories in Bangladesh. Factory managers Established in May 2016, the programme mobile phone application in China, reaching Primark has contributed more than $14m in and fire safety officers are taught how to run supports unskilled helpers to become more than 6,000 workers across ten supplier financial aid and compensation to support those training sessions using highly visual leaflets sewing machine operators and, in factories. Developed by social enterprise affected by the disaster, as well as ongoing non- and simple rhymes to support workers with turn, to progress to higher-paid trainer MicroBenefits, the Company IQ app gives financial support. limited literacy, as well as a DVD showing and supervisor roles. Workers are also workers access to digital wage slips, a a performance drama. After the pilot phase Reaffirming its commitment to the sector, in educated on the Primark Code of Conduct confidential grievance mechanism and of the training, 87% of the participants June 2017 Primark signed the subsequent, and their rights at work, including working ‘micro-training’ modules on topics including surveyed said they had made changes to three-year 2018 Transition Accord. Driven hours and freedom of association. Lower- the Primark Code of Conduct, health and their work environment and 92% had made by our values, Primark did not wish to rely skilled workers, such as those most likely safety, and personal development. improvements at home. solely on the Accord. In 2013, it set up its to benefit from the programme, can be own Structural Integrity programme, with more vulnerable to exploitation. But by Through the app, factories have promoted expertise and advice provided by international improving their skills and salaries, the two fire safety training courses, addressing engineering firms MCS and Mott MacDonald. training can reduce that vulnerability. an important development area. Primark pays particular attention to factory This programme covers Bangladesh and To date, Primark has engaged with 50 management’s understanding and use of Pakistan, and will be rolled out to Myanmar factories in Dhaka and Chittagong and, in the grievance mechanism. in 2020. hours of10,864 supplier training delivered in 2019 July 2018, participated in a pilot to extend its scope to include supervisor training. To date, workers have spent a total of 2,804 As many of the beneficiaries are female hours on the app, and one factory delivered workers, the programme has had a 78 online courses. More than 60% of users significant impact on women’s economic are female and many are migrant workers. empowerment, by improving confidence, As a result of the trial’s success, Primark increasing respect in the workplace and plans to extend the app’s reach to 20 more creating opportunities for promotion. factories and will continue to review the project’s impact. To date, more than 11,000 factory workers in Primark’s supply chain In April 2019, KnowtheChain published its have been directly trained through the report Three Sectors, Three Years Later: programme, which is funded by the Progress and Gaps in the Fight Against British and Swiss governments. Forced Labor, citing this initiative as an example of promoting workers’ rights using technology.

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Modern slavery • Twinings piloted a focus group with migrant Modern slavery exists across the world and in workers to understand whether they were all sectors. However, due to the prevalence of charged recruitment fees, as part of its ethical manual labour and migrant and/or temporary audits of suppliers in high-risk locations, and seasonal workers, the agricultural sector while in tea gardens its Community Needs has a particularly high risk of workers being Assessment now checks that employers exploited for personal or commercial gain. haven’t made illegal deductions from workers’ Modern slavery occurs in many different forms, salaries or offered loans at high interest rates. including but not limited to forced labour, child • AB Sugar created a video to raise awareness labour and human trafficking. Estimated by the of the potential for modern slavery in its ILO to generate $150bn of illicit profits a year, it supply chain, and to provide staff with advice is a global problem requiring a global approach. on how to address concerns, including Acting on modern slavery risks contacting independent whistleblowing Our groupwide Supplier Code of Conduct is hotlines. It is exploring how the video can be based on the eight core conventions (covering shared with suppliers. collective bargaining, forced labour, child labour Please see our Modern Slavery and Human and discrimination) of the ILO and the Ethical Trafficking Statement for more details of our Trade Initiative (ETI). We are also a member of relevant policies, due diligence processes, the Business Against Slavery Forum, a coalition performance and progress. of business and government that aims to accelerate progress to end modern slavery. Several individual businesses have created their own tailored approaches: Associated British Foods: modern slavery awareness training • AB Agri has trained transport managers, commercial teams and delivery drivers, who Associated British Foods has collaborated visit more than a thousand farms across with Twinings to develop and roll out a the UK every year, to recognise the signs of new online training module designed modern slavery and forced labour. to raise awareness of modern slavery. The course seeks to educate employees • Twinings Ovaltine has published a revised about modern slavery and forced labour, Supplier Code of Conduct, available in 11 provides real-life examples and highlights languages, which contains a clause obliging the importance of managing known risks. suppliers to cover the cost of recruitment The course, completed by 771 participants fees and expenses. Eradicating recruitment to date, also outlines how those operating fees is crucial for tackling modern slavery. in our supply chain can help to keep it free from modern slavery and human trafficking.

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Promoting health and wellness

From clear labelling of ingredients to sharing the facts about our products, AB Sugar has made a public Tip Top: sharing the healthy truth AB Sugar: Making Sense of Sugar we’re continuously exploring ways to commitment to provide access about bread The Making Sense of Sugar campaign help consumers to maintain healthy to objective, scientific advice on Tip Top products feature clear, front-of- was launched in 2014 to educate sugar, diet and health to 25 million diets and lifestyles. pack nutritional information with rigorous people about sugar and the role it can people around the world by 2030. Health Star Ratings, aligning with its play in a healthy, balanced diet. The Our approach to promoting healthy ‘A Grain of Truth’ campaign to get more campaign’s website features advice and diets and lifestyles Australians following a healthy, balanced guidance in an interactive format, with Consumers today have an abundance of choice Health education diet. Key messages are shared online information about sugar, tips on healthy and were reflected in product launches eating and dental hygiene, quizzes, when it comes to both fresh and convenience While the significance of diet on human health for Abbott’s Gluten Free, 9 Grain Kids videos and useful links. foods – but options can also make it harder for has become increasingly clear over the last people to know what the healthy options are and Wholegrain Sandwich Thins. few years, we have also seen gradually more In 2018, British Sugar took the and to select them. complex debates around ingredients and food The campaign is also being used to campaign to more people across the groups, from meat and dairy to carbohydrates We reformulate our products to better support empower staff to become advocates UK, promoting the British beet sugar and sugars. We’re helping consumers cut healthy diets and make it easy for consumers for Tip Top products. During 2018, our industry and tackling plenty of myths through the noise by sharing facts about our to know what ingredients they contain with on- North Ryde office hosted an event for about sugar along the way. Across products in clear and accessible ways. pack information. Our individual businesses also employees, teaching them the truth the spring and summer, it reached about bread. Key myths about added thousands of people at Countryfile Live, offer numerous initiatives to provide consumers Product labelling sugar, carbohydrates and artificial Kids Country Food and Farming Day, with facts about our products such as bread, as Helping consumers make informed choices preservatives were busted, and the and seven Open Farm Sunday events. well as individual ingredients such as sugar. means providing the details of the nutritional nutritional benefits of fibre, plant The company also continued to share profile of our products. Our products must Our approach is exemplified by Jordans Dorset proteins, and vitamins and minerals in content through social media channels. comply with different legislation around the Ryvita’s Good Food Commitment to make white bread were shared. world and, even though these regulations are more naturally healthy food by continuing constantly evolving, we’re giving consumers to use naturally wholesome ingredients The company has now extended the the information they need. that have been minimally processed. All its campaign to its field sales teams and products are assessed against a nutritional regional sites across Australia. profiling model to increase the amount of natural fibre, wholegrains, fruits, nuts and seeds they contain while reducing added fat, sugars and salt.

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Reformulating our products Cutting back on salt Last year, Tip Top (part of George Weston Today, more consumers are demanding The health impacts of eating too much salt are Foods) launched a reformulated range of healthier products – both in the way well documented. We support keeping salt Wholemeal and Original Raisin Toast products, they’re produced and in the impact intake to healthy levels, which is why we’re with the added sugar removed. Similarly, they have on wellbeing. focused on providing products that make it Jordans Dorset Ryvita is working with Innovate easier for suppliers to cut down on salt without UK to reduce sugars in its cereal bars. We’re continuously exploring ways to meet compromising on taste. that demand and support consumers as they look to change or maintain lifestyles that For instance, our Don business – which adds Allied Bakeries: a slice of good health prioritise their health. Our individual businesses salt to help extract the natural proteins and In our online survey of UK consumers, have developed innovative formulations to extend the shelf life of its meat products – approximately 75% said they buy or reduce the salt, sugar and fat content of certain has voluntarily reduced the salt content of its are open to buying foods with added products, all without sacrificing the taste products over the last ten years, and adds a vitamins and minerals, and Kingsmill’s consumers love and the quality they expect. ‘smiley’ label on low-salt products designed to appeal to children. new 50/50 Vitamin Boost loaf offers a convenient way to do so. Made from Reducing added sugar equal amounts of white and wholemeal ABF Ingredients: don’t pass the salt While sugar can play a role in a balanced diet, flours, the loaf provides seven vitamins Eating too much salt can increase the guidance recommends that consumers limit and minerals: chances of hypertension, stroke and their consumption of added sugars. We aim to • iron and vitamin B6 to support the other cardiovascular conditions. To support them where we can by exploring ways immune system; help counter this, Ohly has developed to meet their diet choices. Besides making our • vitamin B1 and niacin for energy; natural, yeast-based ingredients that labelling clear so consumers know how much allow customers to reduce the salt sugar is in our products, individual businesses • vitamin D and calcium for healthy content in their products and recipes by also continuously work to reduce the amount bones and teeth; and around 20–30%, without affecting taste. of sugar that is added in the first place. • folic acid.

Our innovations include a new baker’s Kingsmill 50/50 Vitamin Boost is yeast extract, SAV-R-SEL, that brings also a source of fibre, something out savoury flavours while cutting salt. that we all need to eat more of, Along with two existing yeast extracts according to the UK’s National Diet that also reduce salt in the final and Nutrition Survey. application, we can now provide a choice of products with natural, healthy ingredients that help people thrive.

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Lowering fat content Safe products Not all fats are created equal. While there are Jordans Dorset Ryvita: Maintaining food safety and quality is a core ABF Ingredients: simplifying plenty of healthy fats around, a healthy diet is flying the flag for healthy fibre part of our work, both across the group and product safety generally agreed to be low in saturated fats Fibre helps to reduce the risk of heart within our individual businesses. A divisional commitment to safety has because these fats can impact cholesterol. disease, type 2 diabetes, stroke and driven the creation of a new toolkit to Several of our businesses – such as Jordans – Our businesses have specific food safety bowel cancer, and the rye fibre found promote product safety across all five are actively lowering added fats in some procedures in place, set through external in Ryvita also supports gut health. ABF Ingredients businesses. products and making sure we avoid additional food safety accreditations and regulations. However, most UK adults don’t eat the rises in fat content when products are Where sites are not accredited, standards recommended 30 grams of fibre a day, The Six Product Safety Essentials toolkit reformulated. are based on regulations or internal food according to the NHS. features a handbook and posters aimed safety policies that meet Global Foods at staff and visitors to our premises. Its And in Argentina, AB Mauri’s O Trans Project That’s why Ryvita launched its new Standards Initiative (GFSI) requirements. highly visual approach uses universally has reduced the content of trans fats in its FibreFit campaign in March 2019, We also provide rigorous employee training recognised symbols to highlight major margarines to less than 5%. Changing production encouraging everyone to eat more fibre. on food safety good practices through hazards and show how to manage them. processes and the formulas of our products was The campaign was launched to coincide initiatives such as our Food Safety High5 challenging, as qualities such as taste, texture, with National Bowel Cancer Awareness programme, which increases awareness This at-a-glance guide to product safety colour and odour needed to be maintained. Month, and in the first ten days: and participation in food safety. practices will be used to support the setting, monitoring and evaluation of key • more than 15,000 people signed performance indicators (KPIs) relating to up to the #30in30 challenge to product safety across the division. increase their daily fibre intake to 30 g, receiving hints and tips via a regular newsletter; and Having signed the UK Government’s Responsibility • more than 43,000 people took the Deal to create healthier FibreFit quiz to see how much workplaces, our UK Grocery fibre they currently eat. businesses provide fruit for The campaign, which has employees, have removed salt already reached 13.5 million from canteen dining tables and people, featured several offer healthy meal options. influential supporters, Read more about employee including TV celebrity wellbeing on pages 14 to 15. Davina McCall and former athlete Dame Kelly Holmes.

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Supporting local economies

While the communities in which our different businesses operate Illovo: socio-economic impact in sugar-growing communities Zambia Sugar: paving the way to may vary across the world, we Illovo’s six businesses in southern Africa consultancy Corporate Citizenship, employment opportunities in Zambia always take pride in supporting are major employers – for example, Illovo Illovo’s businesses make significant As part of its community investments the socio-economic development Sugar Malawi is the country’s largest community investments through their around its mill in Mazabuka, Zambia private-sector employer. They are also support for education, healthcare, housing Sugar maintains a 10 km stretch of road of local economies, by providing purchasers of agricultural raw materials, and infrastructure. that provides a vital link between rural jobs and improving livelihoods. and their products are distributed largely to communities in the area. However, We want to be welcomed as an domestic and regional markets. Download the full 2017 report and heavy rainfall and large volumes of employer and a neighbour, and summary infographics. traffic have affected the road’s quality. According to a socio-economic impact help the communities in which we study conducted in 2017 by management To address this, the company is and our suppliers live and work to working to build the capacity of become more resilient, sustainable contractors to upgrade the road using and prosperous. Key findings:Illovo’s total economic impact in 2017: R23.8bn (+29% from 2013/14) local materials and labour. To date, 160 young people have been trained in Our approach to supporting From own activities Supply chain and the skills required by local companies. local economies wider economy As well as generating income and We try to do what is right for our customers R5bn employment opportunities, the and suppliers in each market. By working R18.8bn Lubombo Road project is also reducing collaboratively, we help to increase local Salaries, wages road-building costs, improving road capability and capacity, which in turn leads and benefits Payments to safety and increasing mobility. to strong, resilient rural economies and local suppliers thriving communities. R3.0bn The project – supported by the ILO’s R11.9bn Employment Intensive Investment Our businesses around the world play Programme, construction materials Direct jobs created a significant economic role by creating company Lafarge and power Total jobs created wealth through employment, supporting 29,000+ provider ZESCO – may lead to similar farmer livelihoods and supplementing local 71,443 collaborations in the future. infrastructure, schools, healthcare facilities, and water and sanitation services. We Growers and farmers worked with also make payments to local contractors, Lives supported suppliers, distributors and shareholders, 14,700 139,000 pay salaries to employees and pay taxes to governments, all of which support economic development.

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Supplier capacity building Illovo: protecting land rights We work with thousands of farmers, growers Twinings Ovaltine: empowering “Women form most of the workforce issues in rural communities and other suppliers around the world, women in the supply chain in tea gardens, but sexual health and As a grower and processor of sugar increasing productivity and helping to alleviate In Kenya, female tea workers often have reproductive rights can be a barrier to cane across approximately 70,000 poverty. Our businesses place a high priority limited awareness of health issues and their development. When women and hectares of land, respect for land on supporting everyone to face the challenges little access to health services. To address girls thrive, so do their communities. rights is part of Illovo’s DNA. With land related to economic factors and social issues, this, Twining has teamed up with Business That’s why we are committed to an increasingly scarce resource, the as well as climate change. for Social Responsibility (BSR) to deliver empowering women in our supply chain company’s Group Guidelines on Land HERhealth, a programme that trains female through health and education.” By building relationships with our suppliers, and Land Rights contain a zero-tolerance tea workers to become health educators. Céline Gilart, Head of Social Impact, we can better understand and address the approach towards land grabs and land They can then inform fellow workers about Twinings risks they face, help them to improve their rights abuses in southern Africa. essential issues such as reproductive health, livelihoods and try to secure the sustainability nutrition and non-communicable diseases. Having already reached 34,000 people, Over the last three years, Illovo of their and our businesses for the long term. Twinings aims to reach all 75,000 of the has worked with NGO Landesa on Since the scheme was launched, women in its supply chain in Kenya with the Commitment to Practice (C2P) knowledge on topics such as family HERhealth, and provide a further 50,000 project, which has trained more than planning, HIV transmission and pregnancy female workers in India, Kenya and Malawi 60 Illovo staff on land rights issues. risk factors has improved significantly, the with access to health services by 2023. Capacity-building programmes for use of health facilities has increased and community organisations in Malawi, absenteeism through illness is down. Mozambique and Tanzania have also been established.

Landesa has also developed the LandAssess Tool, a risk assessment and management framework for assessing, managing and reporting on their efforts to respect land rights. Illovo has provided continuous feedback on the tool throughout its development phase and will continue to use the tool annually to assess the situation at estate and grower levels in Tanzania, as well as extending its use in Eswatini (formerly Swaziland), Zambia and South Africa.

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Illovo: bringing sugar growers together Illovo: guiding sugar cane growers Around 20% of the cane supplied to in South Africa Illovo’s two sugar mills in Malawi comes To help sugar farmers in the KwaZulu- from small-scale growers. To promote Natal province of South Africa to their long-term sustainability and protect improve yields, increase their incomes security of supply, Illovo has helped and provide a sustainable cane supply to establish the Sugarcane Growers for the Illovo mill in Noodsberg, Illovo Association of Malawi (SUGAM). has developed a comprehensive growing guide. Seventeen growers associations are represented by this new independent With many growers having little body, which provides a forum for formal education, the booklet provides sharing technical expertise and simple step-by-step guidance and learning opportunities. This will help employs infographics to illustrate the Illovo’s suppliers to become financially necessary actions. These are also sound, technically responsible and summarised on a single-page, highly more sustainable. visual ‘roadmap’. The materials will also raise awareness of the guidelines As part of the support, the company for sugar cane production, such as the has provided R40,000 to help set up South African Sugarcane Research SUGAM and promote its benefits, and Institute (SASRI) standards. is offering interest-free loans to help growers to develop their businesses. The roll-out of the guide tripled attendance at Illovo’s field days, and more growers are now applying for supply agreements. The booklet will now be distributed to all Illovo operations across southern Africa, while a version suitable for schools and a mobile app for use in the field are also being considered.

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Being a good neighbour We donate our money and hundreds of tonnes AB Mauri: being a good neighbour in Argentina Garfield Weston Foundation: a billion pounds of products to good causes and to natural AB Mauri has long supported the These included: of giving disaster relief every year, as well as giving our communities near its sites but over • a Family Day, where more than In 1958, Garfield Weston endowed 80% of his family’s time to fundraise or volunteer for the charities the last three years, the company 260 people visited the site, and business for the benefit of the nation. TheGarfield and organisations our people care about. has developed a more proactive families of factory workers were Weston Foundation holds a majority stake (79.2%) in a and strategic approach. The Being privately owned holding company, Wittington Investments Illustrating our hands-on approach, the Don given an insight into where their a Good Neighbour programme has Limited, whose investments include 54.5% of the shares Caring Every Day programme supports local partner or parent worked and helped to coordinate engagement in Associated British Foods plc. communities in Australia through partnerships what they did (see below); with local stakeholders. with several charities and good causes. • a quarterly housekeeping day With the Weston family still closely involved as trustees, From donating products to local schools For example, in Argentina, the when all employees help to the Foundation’s ethos – to help charities develop their for fundraising and supporting the Ronald Tucumán yeast factory teamed up maintain the plant, illustrating their own solutions to society’s problems – still holds true. The McDonald House Charities to assisting with a local NGO, Fundación León, pride in – and responsibility for – application process is straightforward to be respectful of grassroots sport through its sponsorship of to identify and address the social their workplace; and charitable resources and, through a number of strategic the Castlemaine Football and Netball Club, the challenges its neighbours face, • an inclusion programme to help partners, the Foundation provides small charities with company is proud of the positive role it plays in including poverty, crime, limited local people to overcome barriers mentoring and coaching support to help them operate the community. access to health services and poor to employment, such as disability efficiently and effectively. employment opportunities. As part of (see page 16). Don team members also support the Salvation a business-wide culture change, the In the financial year to April 2019, the Foundation Army at its Lighthouse Café project in plant managers organised a range of Additional initiatives are planned donated more than £79m through 2,126 grants (up 12% Melbourne. The café enables homeless and activities to strengthen relationships for future years. on 2018), of which over £11m went to capital projects disadvantaged people to enjoy charitable meals with the community. for community facilities across the UK via the Weston with café-style service, boosting their self- Anniversary Fund. esteem and dignity. Significant grants included £5m to help Social Sustainable Capital provide housing for the homeless; Some of our businesses, such as a £3m grant for the global tree seed bank at the AB Agri and George Weston Foods, Royal Botanic Gardens, Kew; £750,000 to Frontline encourage employees to take two to attract more graduates into social work; and working days a year for volunteering. £500,000 towards a new home for the Royal College of Obstetricians and Gynaecologists.

The Foundation has now made over 44,000 grants, and passed the £1bn donations milestone in 2018.

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Disaster relief Food donations Sadly, food relief across Australia remains in In March 2019, Cyclone Idai hit southern Africa, As a food business, one of the ways we can high demand too. Over the last year, George with tragic consequences and significant loss support our local communities is to offer Weston Foods’ partnership with Foodbank of life in Mozambique and Malawi, where surplus products to foodbanks, which pass has expanded to include more rural areas and Illovo has operations. The business donated them on to relevant charities and organisations. drought-affected communities. In 2019, we R500,000 to each of two aid organisations donated 2,005,530 meals, resulting in a social leading relief efforts: Gift of the Givers and In 2019, our UK Grocery businesses donated return on investment of AUS$25m. Médecins Sans Frontières Southern Africa. more than 215 tonnes of surplus products to FareShare, which distributes meals to And in Argentina, AB Mauri has signed an In Malawi, more than 50,000 people were groups that support people facing hunger agreement with the Fundación Banco de affected by flooding and nine people were and hardship. This represents enough food Alimentos (Food Bank Foundation), having killed. Illovo accommodated 5,500 displaced to create 513,547 meals. Within this total, donated more than 4 tonnes of surplus people at an evacuation camp set up at Westmill donated more than 47 tonnes of products over the financial year. the Nchalo sugar estate. The company food products through FareShare and other also provided tents and drinking water, and associated partners during FY18, while 2,519,077meals donated supported camps in other districts, reaching Allied Bakeries provided over 154 tonnes, around 20,000 people. Meanwhile, in even though delivering fresh bread into the Mozambique, its support included additional FareShare network is more complex than for employee donations and making 2,500 kg of products with a longer shelf life. products available via the Red Cross.

Primark: ongoing support for Unicef Primark has committed $6m to Unicef over three years, giving vulnerable children in Cambodia access to education and supporting emergency response operations during natural and humanitarian disasters. Over the last year, Primark’s support has made a huge impact on multilingual and inclusive education through the provision of water, sanitation and hygiene (WASH) facilities and scholarships.

Primark has also helped Unicef to support vulnerable children in Mozambique and Indonesia in the wake of natural disasters by allocating a $400,000 donation to Unicef’s emergency response operations.

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RESPECTING THE environment

The world’s resources – land, energy, water – are under increasing pressure from the growing In this chapter demands of a rising population, and climate 38 Introduction change is exacerbating these challenges. 39 Addressing the challenge At Associated British Foods, we want to be of climate change responsible stewards of the world around us and 44 Using natural resources secure a sustainable supply of ingredients for our responsibly businesses, so we are working hard to reduce our 49 Stewarding biodiversity carbon footprint, use energy, water and natural 52 Improving animal health resources efficiently, and promote biodiversity. and welfare

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IntroductionAt a group and business level, Our mission to cut emissions Sustainable Development Goals we remain committed to Our ambition to reduce our overall environmental By respecting our environment, we are contributing to the seeking sustainable solutions footprint includes commitments to cut energy use following UN SDGs: and greenhouse gas (GHG) emissions. Working to environmental challenges. collaboratively, we want our operations and supply As well as managing water withdrawals at our In 2019, we invested £32m to chain to withstand the challenges of our changing facilities, treating waste water and reusing more minimise our environmental climate while taking advantage of new opportunities. water in our operations, we support community impacts and risks through a Read more about energy and climate change on pages programmes to increase the water efficiency range of activities, including 39 to 43. Playing our part in the challenge of climate of our suppliers. change is high on our agenda. It’s why our businesses irrigation systems, energy- We are working to increase our use of renewable make it a priority to increase energy efficiency and efficient technologies, improved energy. In our Sugar businesses, for instance, more reduce GHG emissions in their operations. waste segregation and waste than 60% of the energy consumed comes from water treatment plants. Doing more with less renewable sources. We are focused on building resource efficiencies into We continue to upgrade our buildings and all our operations. We strive to use raw materials and LIVING OUR VALUES our suppliers’ operations to make them more ingredients efficiently and responsibly, create less energy- and resource-efficient, using best practice Collaboration with others is vital if we waste and recycle more of the waste we do generate. processes and the latest technology. are going to be responsible stewards Learn more about waste, water and resource use on of our planet, secure a sustainable pages 44 to 48. We seek to use natural resources more sustainably, supply of raw materials and respect generate less waste, improve our packaging to Nurturing nature the dignity of both people and animals. minimise food waste and help agricultural suppliers to Through training, education and From tea, sugar and cereals to livestock and eggs, our use fewer chemicals. We also encourage consumers access to new opportunities, we work business is built on nature. We rely on the planet for a to recycle packaging through on-pack messaging. with rigour and integrity to address secure supply of these ingredients, delivered through climate change and use resources more sustainable and responsible practices. For more Playing our part in the challenge of climate change efficiently, and are ever mindful of information on commodities sourcing and biodiversity, is high on our agenda. It’s why our businesses opportunities to combat deforestation see pages 49 to 51. make it a priority to increase energy efficiency and reduce GHG emissions in their operations. and safeguard biodiversity. Committed to care and compassion of animals Read more about our values on page 6. Our direct involvement with animals is limited to a To help protect ecosystems and the life they few specific businesses; nonetheless, we believe sustain, we are mindful of the impact of high standards of animal health and welfare are deforestation in our business decisions. Respect essential. Read more on page 52. for biodiversity is also vital, so we promote welfare standards within our operations and supply chains.

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Addressing the challenge of climate change

Increasingly unpredictable and Our approach to tackling climate change severe weather events are already In our assessment of climate-related business affecting food security, consumption risks, we recognise that the cumulative impacts of changes in weather and water availability habits and the availability of natural could affect our operations at a group level. resources. Our businesses have a However, the diversified nature of Associated role to play in the transition to a British Foods means that mitigation or adaptation low-carbon economy by increasing strategies are considered and implemented by the efficiency of our buildings, individual businesses and divisions. operations, logistics and agricultural Each of our businesses completes an annual activities, by generating and using risk assessment outlining key risks and renewable energy where feasible opportunities, including those associated and mitigating the impact of our with climate change. These assessments operations on the climate. are approved by the chief executives of the Cutting our carbon footprint businesses, collated and reviewed by the We look for ways to progressively reduce our Such challenging goals will help us to build group board, to monitor our overall exposure. GHG emissions and reduce our contribution on the progress we have already made in The board has ultimate responsibility for the to climate change. Our energy-intensive monitoring and managing business-level group’s approach to climate-related risks businesses have initiatives to manage their scope 1 and 2, and where relevant, scope and opportunities and is supported by our impacts and have set goals to reduce GHGs, 3, emissions. For example, in Australia, responsibility, risk and environment teams recognising the Paris Climate Agreement, George Weston Foods reduced its GHG and directors. which aims to limit global temperature rises to emissions, which it reports under the National no more than 2 degrees Celsius by the end of Greenhouse and Energy Reporting Act 2007, Within our risk assessments, we consider the century. For example: by more than 28% between FY 2008/09 climate change impacts, including short- and 2017/18 through energy efficiency, reduction4% in • AB Sugar has made an industry-leading and long-term risks such as regulatory and consolidation of some facilities, a move to GHG emissions legal requirements and costs, reputational commitment to reduce its end-to-end supply lower-carbon fuels and the integration of (scopes 1, 2 and 3) impacts, and physical risks associated with our chain CO2 footprint by 30% by 2030; renewables into its long-term energy mix. operations and supply chains, including the • Illovo Sugar is committed to reducing price and availability of raw materials. During GHG emissions by 10.7% by 2020, Meanwhile, Jordans Dorset Ryvita has reduced the year, we convened meetings of our chief compared with 2010; and GHG emissions by around 25% over the last executives and our environmental specialists • AB Agri has an aspiration to reduce its five years, exemplified by its Market Garden where we considered climate change risks, operational energy footprint by 20% Road factory cutting emissions by more than opportunities and the use of forward-looking between 2014 and 2024. 10% by reducing bake times. We also invest in scenarios in business planning. programmes to help suppliers to plan for and adapt to different climate scenarios.

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Staying accountable As reported last year, we welcome the We report our emissions into the three scopes Scope 1, 2 and 3 GHG emissions Source of GHG emissions 2019 recommendations from the Task Force on and out of scope, which enables us to analyse (‘000 tonnes CO2e) Climate-related Financial Disclosures (TCFD), the emissions over which we have direct Energy 79% Transport 10% 2019: 4,746 Agriculture 2% and each year we consider how we can improve control and those generated in our supply chain. 2018: 4,966 Process 9% our disclosure on climate-related reporting using Our scope 1 and 2 emissions occur as a result 2017: 5,057 the TCFD’s framework. We have also reported of activities we directly control on our sites. 2016: 5,280 2015: 5,629 more detail through our CDP disclosure, 0.0 1125.8 2251.6 3377.4 4503.2 5629.0 including climate governance, strategy and risk Activities included in scope 1 emissions include management. This is available at www.cdp.net. the energy we generate, owned transport, agriculture and on-site waste water treatment. This year, we conducted our first high-level Scope 2 (location-based method) emissions are Our GHG emissions (‘000 tonnes CO2e) climate risk assessment considering the from purchased electricity, heat and steam that 2018 2019 impact of 2 degrees Celsius global warming on we use in our sites. Scope 1 – combustion of fuel and operation of facilities 3,159 3,087 our businesses in the short to medium term. We considered transitional changes such as Our total emissions (scopes 1, 2 and 3) have Scope 1 – generation and use of renewables 69 75 increased carbon pricing and legislation, as well decreased again this year. For 2019, we report Scope 1 total 3,288 3,162 as physical changes such as increased water a 4% decrease compared with last year to  Scope 2 – emissions from purchased electricity, heat or steam (location method) 925 831 stress, frequency of extreme weather patterns 4.75 million tonnes CO2 equivalent (CO2e). Scope 3 – indirect emissions from use of third-party transport 813 753 and temperature rises. Our scope 1 and 2 emissions, those over Total emissions (scopes 1, 2 and 3) 4,966 4,746 We have also started to collect information which we have direct control, account for Out-of-scope emissions 3,711 3,962 that will help us report our scope 2 market- 84% of our total emissions and have reduced Emission intensity (scopes 1 and 2) per £1m of revenue 266 tonnes 252 tonnes based emissions from the purchase and use by 4% this year. of renewable fuels. We report our GHG inventory using the GHG Protocol Corporate Accounting and Reporting Standard (Revised Edition) as our framework for calculations and disclosure. We use carbon conversion factors published by the Department for Business, Energy and Industrial Strategy (BEIS) in August 2019, other internationally recognised sources and bespoke factors based on laboratory calculations at selected locations. This includes all activities where we have operational control. Scope 2 location-based emissions have been calculated in accordance with the GHG Protocol Scope 2 Guidance on procured renewable energy. For 2018 and 2019, scope 3 emissions are our third-party transport emissions only. See our 2019 ESG Appendix for more detail.

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We operate in a number of geographies A cool solution to the experiencing changes to their micro-climate, British Sugar: on the road to fleet detergent challenge such as flooding, drought and extreme weather efficiency The wash temperature is the main variations. These events can contribute to British Sugar’s three logistics partners – factor when considering the life- lower harvests and constraints on safe and Haulage Services, Abbey Logistics cycle energy use and GHG emissions secure water supply. As such, these physical and Wincanton – provide bulk tanker associated with laundry detergent. risks are making energy efficiency, water transport from its factories to its Using protein engineering and conservation and other climate adaptation and manufacturing customers. molecular biology, one of our mitigation activities a priority. Ingredients businesses, AB Enzymes, Wincanton’s core fleet uses trucks that During the year, we have responded to has developed several new products already comply with Euro 6, Europe’s extreme weather patterns, particularly drought, that enable detergent manufacturers to strictest commercial vehicle emissions as a result of changes in climate. Notably, our optimise the detergent’s performance standards, which means they emit operations in China, Australia, southern Africa at lower temperatures, as well as use very low levels of particulate matter and California, US, have experienced specific fewer resources in production. This and nitrogen oxides. The company has water scarcity issues during the course of the has helped consumers to lower the also trialled gas-powered vehicles with year. For more detail, please see page 47. average wash temperature to around Wincanton and Abbey Logistics, and 43 degrees Celsius and contribute to We believe Associated British Foods has a role is working with Haulage Services to reduced GHG emissions. to play in helping to achieve the globally agreed monitor the long-term performance of a targets to limit temperature rise to no more gas-powered vehicle in its wider fleet. than 2 degrees Celsius above pre-industrialised To avoid unnecessary vehicle levels. We will continue to adapt to climate movements, Abbey Logistics change and explore opportunities to reduce increased its payload by 0.83 tonnes our impact through investment in technologies to 28.24 tonnes per vehicle in the year and energy efficiencies, maximising renewable to March 2019, through investments energy opportunities, changing behaviours and in new vehicles and incentivising working with others to reduce carbon. customers to increase order sizes to For more detailed performance information, help British Sugar make fewer journeys. please see our 2019 ESG Appendix. Committed to incorporating safer and Transport emissions more economical driving practices, We continue to make progress in reducing Abbey Logistics and Wincanton the environmental impact of our supply chain have also introduced telematic and by collaborating with our logistics partners on management systems. By providing innovations around renewable fuels, driver training, regular feedback on vehicle and driver payload efficiency, backhauling and route planning. performance, both companies have Our scope 3 emissions reduced by 7% compared improved driver safety, while Abbey’s  fuel consumption has improved by 6%. with last year to 753,000 tonnes CO2e.

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Reducing our energy use Shining a light on energy efficiency Recognising that energy generation is our Our businesses continue to drive primary source of GHG emissions, all our improvements in the energy efficiency of Energy management systems businesses are working hard to improve our factories, stores, offices and distribution Half of our manufacturing sites and retail stores have externally certified energy efficiency on a continuous basis, as networks. Through a groupwide utilities forum, environmental management systems, meeting standards including well as via investment projects. In addition, the which examines issues such as energy market ISO 14001 (for environmental management) and ISO 50001 (for energy cost and price volatility of the energy we use volatility, legislation and new technologies, management). For example: mean that rigorous energy management is a we identify and share good practice from • all British Sugar’s and AB Agri’s UK operational sites are certified key operational focus across the group. Each of around our businesses so that the benefits to both ISO 14001 and ISO 50001; our businesses can tailor their overall approach, can be replicated. • Primark’s new energy management system for UK and Republic which involves improving energy efficiency and We continue to invest in metering systems, of Ireland stores, offices and distribution centres is certified to generating their own renewable power, to suit more efficient equipment and intelligent LED ISO 50001; and their specific circumstances. lighting, which is more cost-effective and • Jordans Dorset Ryvita’s Biggleswade sites are accredited to In 2019, our total energy use was 23,565 GWh, energy-efficient than conventional lighting. At ISO 14001:2015, and all remaining sites will obtain accreditation a 2% increase on 2018. Our Sugar businesses George Weston Foods, the Don Castlemaine by 2021. were responsible for consuming 82% of that factory completed the company’s largest-ever total, or 19,238 GWh. They have continually LED upgrade in 2019. This involved replacing improved energy use over the last ten years around 2,500 light fittings. The previous lighting and look to drive efficiency and do more accounted for approximately 4,000 MWh with every unit of energy consumed. As an per year – 12% of the site’s total electricity example, as well as producing both core sugar use – but the LEDs will consume just 25% products and a range of specialty sugars, each of that, reducing GHG emissions by around of the 24 advanced sugar manufacturing sites 3,800 tonnes per year. produces more than 24 co-products, including molasses, sugar beet pulp and bioethanol.

See our 2019 ESG Appendix for more detailed performance information about energy consumption.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 43

Renewable energy See our 2019 ESG Appendix for more Besides reducing operational energy demands, detailed performance information about AB Mauri: championing greater we have also been exploring how we can renewable energy. energy efficiency better use renewable energy. AB Mauri has appointed a new Global Energy Champion, based at Our use of energy from renewable sources the Veracruz manufacturing plant in increased by 6% in 2019 to 12,211 GWh. This Some of our sites are ‘energy Mexico, one of its largest plants. The means that 52% of the total energy we use is positive’, exporting any appointment of Rodrigo Azara (see sourced from renewable fuels. We have also surplus power they create to right) reinforces the company’s focus increased the proportion of renewable energy the National Grid. on energy reduction and efficiency, consumed from 50% in 2018. Most of this with a remit to coordinate activities renewable energy (92%) comes from bagasse – across plants, and share and implement the residual fibre left after sugar is extracted best practices. from sugar cane – from our operations in Renewable energy southern Africa. Renewable energy consumed (GWh) and as a proportion The management team at Veracruz is of the total energy consumed (%) leading by example, as results to date We also use on-site anaerobic digesters 2015 2016 2017 2018 2019 have shown: 12,493 11,206 11,356 11,511 12,211 (ADs) to generate biogas from our own waste • electricity consumption has reduced 50% 49% 49% 50% 52% streams, such as British Sugar’s AD plant by more than 10% between 2014 in Suffolk and AB Agri’s facility in Yorkshire. and 2019; This year biogas accounted for 2% of the • more than half of the fossil fuels total renewable fuels generated on our sites. (natural gas and LPG) used to operate We also purchase electricity generated using the boilers have been replaced by the wind and solar power. biogas generated at the on-site waste This year, we exported 971 GWh of surplus water plant; and energy to the National Grid. This is a mixture of energy 52%used from renewable sources • more than 90% of the electricity of biogas and electricity generated on our used was procured from sustainable sites and, as it is surplus to the needs of our sources such as wind and solar power. operations, these sites are deemed as ‘energy positive’. This is an 18% increase compared Additional projects over the next few with last year. years will seek to further reduce energy consumption across AB Mauri.

“AB Mauri has invested significant time, resources and capital into improving energy efficiency and I’m proud to help replicate best practice globally.” Rodrigo Azara, Global Energy Champion, AB Mauri

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Using natural resources responsibly

Our businesses invest in responsible We look at positive ways to use the waste we Non-hazardous waste has decreased by water use, and resource-efficient and British Sugar: collaborating for do create, through reuse and recycling or by 12% since last year, from 135,300 tonnes to creating co-products such as energy, soil and 118,700 tonnes, and while the amounts are effective waste management. on-farm improvements animal feed. For example, at the AB Enzymes comparably small, the amount of hazardous Over the last ten years, British Sugar factory in Rajamäki, Finland, up to 200 tonnes waste we generated rose by 4%, from 4,600 Our approach to improving has increased its sugar beet yields by resource efficiency of wheat flour – used for flushing equipment tonnes last year to 4,800 tonnes in 2019. more than 25%, resulting in a more All our businesses are working to use between production batches – is sent to efficient use of land. To continue See our 2019 ESG Appendix for more detailed resources more efficiently. As well as helping bioethanol producers to produce biogas. this journey of innovation, the British waste and recycling data. to limit our environmental impact, this has Beet Research Organisation (BBRO) We also consider other alternative uses for tangible advantages as we seek to turn the is harnessing drone technology and waste, such as transforming it into packaging Waste disposal 2019 outputs from our production processes into satellite imagery to further increase materials or composting it to make soil Waste sent valuable co-products for powering our factories. Hazardous waste yields and on-farm productivity. for recycling, improvers. Where appropriate, we also donate 1% recovery Exemplifying this, our UK Grocery business surplus products that can be used for human This project aims to explore how or other consumption to food banks, community groups is a signatory to the Courtauld Commitment visible, near-infrared and infrared light beneficial use and charities such as FareShare to avoid food Non-hazardous 80% 2025, an ambitious voluntary agreement technology can improve the accuracy by the UK’s food and drink sector to waste (read more on page 36). waste of information, helping farmers to make 19% make production and consumption more informed decisions and maximise the Across the group, we generated 631,800 tonnes sustainable. At its heart is a commitment to potential of their crop. By identifying of waste, an 18% decrease compared with develop solutions and drive changes that will and understanding areas of weaker last year. Total waste generated cut the carbon, water and waste associated growth and disease, more integrated (’000 tonnes)  with food and drink products by at least 20% management systems can be created Of this total, 80% was sent for recycling, 2019: 632 in the ten years from 2015. 2018: 770 to tackle challenges at field level. The recovery or other beneficial use. Total recycled 2017: 1,000 work is still in its infancy, but the early waste fell by 19%, from 630,600 tonnes in 2016: 1,000 Managing waste 2015: 862  signs are positive. 2018 to 508,400 tonnes this year. 0 200 400 600 800 1000 Focusing on the environmental and commercial benefits for our businesses, our Complementing this work, the BBRO’s The remaining non-recycled waste is made Proportion of waste recycled priorities are to use only the raw materials we On-Farm initiative includes the Beet up of non-hazardous waste (19% of total 2019: 80% need and make them go as far as possible, 2018: 82% Yield Challenge, a competition in group waste) and hazardous waste (1% of 2017: 83% through efficient operations. which farmers will use soil analysis group total). 2016: 79% 2015: 74% and satellite imagery to maximise their 0 20 40 60 80 100 yields. Specific recommendations will be given to participants and an annual report made available to the UK’s 3,000 sugar beet farmers.

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Packaging and plastics Azucarera: local government Packaging is essential for containing and recognises best practice protecting our products during transit and Supporting a circular economy model, on the shelf, but we remain committed the efforts made by a number of local to initiatives that improve recyclability and companies – including Azuarera – to recycling rates, reduce its volume and weight, reduce, reuse and recycle waste avoid waste and use more recycled content have been officially recognised by the through better design and manufacture. government of Castille and León in Spain, Plastic in particular plays an important home to its local sugar beet community. role in product packaging. It’s durable, Of the 11 waste reduction measures cheap, lightweight and hygienic. However, shared by the agrifood sector with unless non-compostable or biodegradable the regional authorities, three came plastic is recycled, it takes many years to from Azucarera: degrade in landfill sites or pollutes the wider environment as litter or ocean waste. • using ecodesign to eliminate 100% of the plastic from reeds in the caps In 2019, Associated British Foods used despite opening more stores of PPC packs, avoiding 1,470 kg 258,800 tonnes of packaging. This is a 1% during the year, which demonstrates good of plastic; increase from last year, largely driven by results from its activities to package products • new procedures for washing and production increases. Across the group, new more efficiently during transport to stores. reusing 90% of maintenance rags customers, changes in product mix, new in two factories, cutting 2,700 kg manufacturing facilities and smaller packaging In addition, our UK Grocery businesses of residue; and units, driven by customer preference, all signed the UK Plastics Pact in 2018, through which they have committed to ensure that • upgrading machinery to avoid contributed to the level of packaging we used. 100% of their plastic packaging is reusable, Delivery trucks generating 1,100 kg of non-halogenated Our Grocery businesses, which account for recyclable or compostable, and averages 30% ‘backhaul’ cardboard solvent, a hazardous waste. 64% of the group’s total packaging, increased recycled content by 2025. To deliver on this and plastic waste from more than 250 These good practice examples have their packaging use by 4% this year. There has commitment, the businesses have established a Primark stores to our been shared with other companies been increased production at specific sites dedicated committee to coordinate work across central distribution in the region so that they can be which influence the segment’s total packaging. the division and share details of new packaging centres for recycling. replicated, and the exercise will be innovations as they become available. All other business segments decreased updated annually. their packaging use this year compared with See our 2019 ESG Appendix for more detailed last year. Primark also decreased packaging information about packaging.

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Backing better packaging solutions Quantity of packaging used Many of our businesses are committed (’000 tonnes) to reducing the environmental impacts of 2019: 259 our packaging and using recyclable plastic 2018: 256 2017: 243 packaging. However, we recognise that all 2016: 248 stakeholders will need to work together to 2015: 238 0.0 51.8 103.6 155.4 207.2 259.0 create the recycling infrastructure needed for a truly circular economy for plastics. Our businesses continue to support this ambition where appropriate, with: • Allied Bakeries using bread bags that are Speedibake: backing off from recyclable at larger stores, and front-of-pack black plastic logos added on the biggest-selling products Black plastic trays help with food to encourage consumers to recycle; preservation but they are not recyclable • AB Sugar announcing that it will use only due to the carbon pigment they contain. reusable, recyclable, biodegradable or As many recycling centres cannot compostable plastic by 2030 in one of the identify and sort black plastic, the first statements of its kind in the sugar 12 million black trays Speedibake used industry; and each year for its frozen garlic slices and garlic cheese slices have usually been • George Weston Foods, a member of the sent to landfill. Australian Packaging Covenant Organisation, aiming to have 100% recyclable, reusable By working closely with its customers, or compostable packaging by 2025 to help the company has now switched to ‘close the loop’. a cloudy material – made from 50% recycled plastic – which can be recycled by around 75% of UK recycling centres. While opportunities to use All but one Speedibake customer have innovative, bio‑based materials are now adopted the new trays. limited, not least due to the strict regulations governing the materials that can be used in contact with food, we continue to explore potential new packaging solutions.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 47

Effective water management Our 2019 performance Facing more frequent and intense droughts At British Sugar, equipment upgrades, From fields to factories, water is essential In 2019, we withdrew 880 million m3 of water, over the last 20 years, Zambia Sugar has investments in waste water treatment and for our operations. It’s also a vital resource which is a 5% increase compared with last year. experienced a parallel increase in irrigation reusing condensate water for cooling have that we share with the communities where Our Ingredients and Grocery businesses have requirements. Aware of the need to maintain helped to cut water usage by 26% since 2014, we operate. Simply put, without a safe and reduced the amount of water entering their access to water for all, the site keeps within saving the equivalent of the average annual secure supply of water, society – and therefore sites this year. the water abstraction limits set by the local use of 2,000 homes. business – cannot thrive. authorities. Under a supply agreement, water Total water abstracted is transferred to local growers, as well as Given the increasing scarcity of water in certain (million m3) the local town of Mazabuka. This supply is countries, our Sugar businesses are focused 2019: 880 on exploring new ways to conserve it. Good 2018: 837 prioritised and maintained during times of 2017: 811 supply restrictions, with the site adapting to management of water is a key component of 2016: 800 lower water use if necessary. Zambia Sugar AB Sugar China’s Environment Policy. In the 2015: 925 0 200 400 600 800 1000 has also improved the efficiency of its water high-water-risk regions operated by AB Sugar 169 equipment, replacing old water pumps and China, for example, research has demonstrated See our 2019 ESG Appendix for more detailed 3 that drip irrigation can cut water abstraction data about water abstraction and reuse. introducing drip irrigation technology, and is compared with conventional watering methods of watermillion reused by our operations m actively involved in the local stakeholder forum Water management in our Sugar businesses for the Lower Kafue water catchment. such as sprinklers. Additional benefits include Our businesses invest in initiatives to reduce Water abstraction in our Illovo Sugar preventing soil erosion and nutrient runoff water abstraction per tonne of product businesses in southern Africa accounts for We use a series of technologies to manage our as the water penetrates deeply into the soil and increase their ability to reuse water for 96% of the group’s total, and is used primarily water use in the field and in the factory, and around the root zone. cleaning or cooling equipment or for irrigation for irrigation as well as factory processes are constantly looking for solutions to abstract before returning it to the environment. and distribution to local communities. Illovo less water and reduce our water footprint per manages sugar cane estates totalling tonne of product we produce. With sugar cane AB Sugar: Innovate Irrigation We use tools such as the WWF Water Risk approximately 70,000 hectares of land, of being 70% water, the company also uses all Challenge Filter Tool to assess our manufacturing sites which 82% is irrigated, with the rest rain fed. the water from the cane itself. In addition, we To attract bold, new ideas to help against criteria such as water scarcity at a This means that our direct operational water continue to return clean and potable water deliver on its 2030 commitments, AB watershed level, water quality, legislative footprint is significantly higher than businesses to rivers and reservoirs in Europe, while in Sugar launched the Innovate Irrigation risks and reputational risks. Our operations in that purchase irrigated crops but do not our southern African operations we support Challenge in 2019, alongside WaterAid California, US, New South Wales, Australia, manage the land directly. communities having access to clean and and the University of Cambridge’s across China and across southern Africa have safe water. Centre for Industrial Sustainability. The responded to water scarcity that has affected challenge was open to any individual their direct operations or their suppliers. We or team with a transformative idea to also disclose our annual performance and reduce water use and loss in irrigation approach through CDP’s water report, and and attracted inspiring entries from make these disclosures publicly available at increase around the world. www.cdp.net. 5% in water abstracted

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Managing waste water Azucarera: preserving resources naturally Westmill: supporting farmers in We return as much water as we can to natural Five years ago, Azucarera launched a technology, organised visits to pilot sites water-stressed areas watercourses by treating our waste water solar irrigation project in partnership with and shared the technical information As a member of the UNEP Sustainable on-site or by using municipal treatment plants, AIMCRA, a Spanish research association available with interested parties. Rice Platform, Westmill supports meeting local quality standards and regulations. that seeks to improve sugar beet basmati rice farmers in water-stressed All businesses monitor the oxygen demand cultivation. The project aimed to reduce The programme has led to a 70% reduction Pakistan, training them in water-efficient of the waste water effluent their facilities energy and water use among beet growers in the amount of energy required for water cultivation techniques to meet growing discharge, to protect aquatic ecosystems and as and has seen more than 80 solar water- pumping and a 20% decrease in water use. domestic and international demand. a requirement of their environmental licences. pumping units installed across Spain. Our efforts form part of the multi- Working with the EU Commission and the stakeholder Water and Productivity Over the last year, our businesses have AIMCRA developed and promoted the Spanish Institute of Photovoltaic Energy, (WAPRO) Project, which aims to directly invested just over £8m in effluent treatment intelligent irrigation methodology, found the project has now been extended to Italy, support 1,200 farmers by December plants and improvements in managing thousands of growers to implement the Portugal and Morocco. 2021, and reach a further 10,000 people waste water. through the dissemination of water stewardship advice. After one year, Environmental compliance water efficiency had already improved In 2019, we received 51 environmental Illovo: improving water efficiency, by 26%, yields had risen by 22% and complaints, 13 fewer than last year. Most were drop by drop net incomes were up by 67%. associated with noise, dust and odour from our In southern Africa, climate change is manufacturing sites. During the year we also contributing to drought and water scarcity, received 14 environmental fines with a cost reducing the security of supply for local of £118,000 which fell within the reporting communities as well as raw material year. These were largely due to the treatment supplies for Illovo. of waste water, management of on-site waste, gas emissions and odour control. The Sugar business’ five-year water management plan focuses on stewardship, We very much regret any inconvenience efficiency, quality, supply chain, community caused to our neighbours, and have addressed and profitability. It involves implementing the non-compliance issues at relevant sites so drip irrigation and other technologies that that we meet the standards expected of us. produce better crop yields with less water, energy, nutrients and other inputs at the Ubombo estate in Eswatini (formerly Swaziland) and the Nchalo estate in Malawi.

Building on these successes, Illovo is looking at the feasibility of new drip irrigation technologies across its operations.

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Stewarding biodiversity

Healthy biodiversity is vital to our work, particularly on the farms from Jordans Dorset Ryvita: Kilombero Sugar: helping create In a first for forest conservation in Tanzania, which we source our key ingredients. nature-friendly farming a new nature reserve the new reserve’s tourist entrance fees will The Jordans Farm Partnership was In 2019, the Kilombero Sugar Company go both to local communities and to the Our approach to biodiversity and created in 2016 and represents a relinquished more than 2,600 hectares of government’s managing authority. natural resources unique collaboration between The land in the Magombera Forest, Tanzania, “Given that the forest is home to many From soil health to sustainable pollination, Wildlife Trusts, Linking Environment to enable the government to create a new endangered species and to other plants biodiversity impacts our work in countless and Farming (LEAF), The Prince’s nature reserve. and animals not found anywhere else in ways, and protecting ecosystem services Countryside Fund and 37 British farms the world, and the fact that its continued can have a positive impact on production. supplying oats, wheat and barley. Each The forest is a threatened area of tropical existence was under threat from poachers farm has dedicated at least 10% of its lowland, rich in biodiversity with unique Some of our businesses directly support and illegal tree cutters who used the land to supporting biodiversity, half of flora and fauna. As well as endangered ecosystem conservation. For example, wood to make charcoal, we decided to which is aimed at attracting pollinators populations of red colobus monkeys and rare Jordans Ryvita Dorset’s award-winning farm play our part by agreeing to relinquish a through wildflower areas. trees, it is also home to a recently discovered partnership model pays British farmers a species of chameleon. The forest is vitally section of our estate to allow it to become premium for their crop in return for enhancing Experts from The Wildlife Trusts create important for local communities, who depend part of the globally unique Magombera wildlife biodiversity on their land. Azucarera bespoke Wildlife Plans with each farm, on the adjacent land for rice and sugar Forest ecosystem.” manages a lagoon near its factory in Jerez de and implementation is independently farming. Without the forest, this important Guy Williams, Managing Director, la Frontera as a wetland habitat for protected audited and certified against the LEAF agricultural region would be under serious Kilombero Sugar bird species, while Illovo maintains natural marque standard. Jordans’ oat growers threat from floods and soil erosion. vegetation surrounding its sugar cane fields to provide almost 4,600 hectares of avoid impacting nearby conservation areas. habitat for farmland species like barn owls, brown hares, and bees and other We also collaborate with several multi- essential pollinators. stakeholder organisations on nature and biodiversity. For example, Primark is a member of the Cambridge Natural Capital Impact Group, through which we work to improve our understanding of our impact on biodiversity, soil and water.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 50

Mitigating deforestation risks in commodity sourcing Jordans Dorset Ryvita/AB Agri: leading on responsible palm oil purchase In buying a wide range of commodities – some Jordans Dorset Ryvita first joined the RSPO Our AB Agri business is leading the animal in substantial volumes – we support farming in 2006, just two years after the organisation feed sector by covering the majority and harvesting practices that protect and was established. Since 2010, the business of its palm oil consumption though the preserve the environment. And where we has sourced 100% physically certified RSPO Book and Claim method, with identify potential risks to the natural world, segregated palm oil, making it an early mover the remainder of its volume supplied as such as deforestation, we seek to mitigate in transforming its certified sustainable physically certified Segregated input. or remediate them. palm sourcing approach. To communicate This is a rare exception in the animal feed the message to consumers, the RSPO sector, due to the low margins involved and Palm oil trademark has featured on a number of the lack of customer demand for physically Palm oil, palm kernel oil and its derivatives Jordans’ cereal packs since 2012. certified material in animal feed. are extremely versatile vegetable oils, used in food as well as household products. Palm is the highest-yielding vegetable oil crop, which makes it very efficient, needing less than half • Over 68% of the palm we purchase comes To date, 29 of our manufacturing sites in the land required by other crops to produce the from other palm-based derivatives and nine countries have been RSPO Supply same amount of oil. products containing palm input, which often Chain Certified (SCC). have a more complex supply chain than palm We have been a member of the Roundtable on oil, and are therefore more challenging to The higher cost associated with physically Sustainable Palm Oil (RSPO) since 2010, and source as physically certified. certified sustainable palm means that are a low palm consumer compared to other customers must be willing to pay the additional • In 2015, we met our commitment to source global food and beverage businesses, with just premium for products. In regions where 100% of our palm-related consumption 63,435 tonnes of consumption. The diversity incomes are higher or the awareness levels through supply models recognised by the of the group and the versatility of palm oil related to the deforestation risks associated RSPO, including Book and Claim, Mass means that the ingredient is utilised in several with oil palm production are more developed, Balance and Segregated, which has been businesses, including consumer brands as well there is greater willingness from customers continued each year since. as agricultural feed. to pay this premium. As such, our European- • Within this 100% RSPO-recognised based Grocery businesses have achieved Our palm consumption: consumption, we currently source 24% of 100% physically certified sustainable palm • We purchase palm oil, as well as palm our palm consumption from more stringent inputs since 2017. kernel oil, other palm-based derivatives and physically certified sources, known as Mass products containing palm oil as an input. Balance or Segregated. We acknowledge that our journey is not To facilitate the availability of clear and complete and are working hard to increase transparent information, our reporting covers Certifying our manufacturing sites to RSPO consumption of physical certified material all palm-related consumption, including palm standards means that we have established and the number of RSPO SSC sites. kernel oil, other palm-based derivatives and controls to assure our supply chain for our products containing palm input, not just end customers and consumers, giving them We also disclose our annual performance and straight palm oil. confidence in the sustainable origin of the approach through CDP’s forestry report, and materials. It also supports the wider ambition make our disclosures publicly available via the to increase certified sustainable palm demand. CDP website at www.cdp.net.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 51

Soya Around three-quarters of the world’s soya – AB Agri: sourcing soya more responsibly a concentrated source of protein – is fed to The supply chain for soya is complex but AB Agri has animals as soybean meal and global demand is committed to responsibly sourcing all its major feed growing; 362 million tonnes were produced in ingredients, including soya, by 2024. As an active 2018/19, putting pressure on land, communities member of the UK Roundtable on Sustainable Soya, and ecosystems. Aware of the reputational and the company supports its customers to meet the supply risks concerned with soya and growing growing demands for livestock products produced using interest in the deforestation associated with the responsibly sourced ingredients. complex supply chain for this commodity, our businesses are increasing their purchases of Its approach focuses on: responsibly sourced soya and leading others in • Metrics: ensuring feed ingredient decisions are based their industries to support its use. on sound environmental evidence. AB Agri helped to create the EU Feed Product Environmental Footprint AB Agri is committed to sourcing Category Rules (PEFCR), for which it conducted 100% of its soya, palm oil and one of five pilot projects, and the European Feed palm oil derivatives from certified Manufacturers’ Federation (FEFAC) database of responsible sources by 2024. environmental impact data for ingredients, now being used by the European Commission; Chemical management in the supply chain • Collaboration: actively working with suppliers, In line with Primark’s stringent chemical peers, customers and retailers to benchmark soya requirements, we are working with our suppliers supplies, and encourage the use of more sustainably to phase out certain chemicals deemed sourced materials; and hazardous from our supply chain, replacing • Innovation: developing cost-effective, responsibly them with suitable alternatives. At Primark, produced alternatives to imported soya such as for example, this work has been supported by NovaPro, a rapeseed-based protein for dairy and beef 4,545 hours of workshops and on-site training livestock, and Protocell, a yeast-based protein derived on environmental issues, including chemicals. from cereal processing.

To give sugar suppliers science-based Currently, 67% of the soya AB Agri buys in the UK for information on using fertilisers, AB Sugar its ABN feed mills meets the FEFAC benchmark for China launched the More from Less Fertiliser responsibly sourced soya. initiative in 2018. By the end of 2019, all its large growers (representing around 90% of its total growing area) will have access to this new, free soil testing and fertiliser advice service. Demonstration plots are also used to show growers that lower fertiliser use reduces costs and environmental risks without adversely affecting crop quality or yields.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 52

Improving animal health and welfare

High standards of animal health We are committed to purchasing more cage- and welfare are essential in all AB Agri: nutrition innovation to free eggs, in line with customer and supplier Primark: keeping cosmetics cruelty-free expectations, and our pig farms, owned by modern food producing systems. support healthier livestock Primark is proud to be cruelty-free: the Don brand in Australia, are sow stall- Stimulating a beneficial gut microbiome none of the ingredients in its own‑brand We believe that the animals in our free. We are also enhancing the housing and is an emerging strategy for improving cosmetics, including all make-up, supply chain should be treated with enrichment provided to our pigs. animal performance and supporting skincare and haircare products, are compassion and respect, in line with animal health. One of AB Vista’s tested on animals. This status was internationally recognised standards. Our nutritional products for livestock are new products, Signis, ‘trains’ the gut designed to provide the specific nutrients for recognised in 2018 with certification microbiome to degrade fibre more from Leaping Bunny, the leading Only a few of our businesses have direct animal growth and positively impact on animal efficiently, improving the animals’ ability marque for non-animal-tested products. involvement with animals. Several others health. In line with this, we are innovating to digest nutrients. to develop new products that contribute to purchase eggs, meat, fish and dairy products Primark’s technical experts have reducing the need to use antibiotics. as key materials and ingredients; source Primary Diets has also developed the worked with Cruelty Free International textiles derived from animals; or, like AB Agri, XP range of diets. These are designed Read AB Agri’s statement on to demonstrate that none of the 7,000 sell nutrition products and services to the to support piglets through post‑weaning antimicrobial resistance. ingredients in more than 2,500 products livestock industry. diarrhoea in the absence of prescribed were subject to animal testing at any levels of zinc oxide (ZnO), which is A longer animal health and welfare stage. This will help customers to make Where health and welfare are relevant to a being withdrawn due to environmental statement, which also outlines our position informed, ethical purchasing decisions. business unit, it must – as a minimum – adopt concerns. The nutrition in the XP diets on animal testing, can be found in the the Associated British Foods plc Animal Health aims to promote a healthy gut barrier 2019 ESG Appendix. Building on this, in May 2019, the and Welfare Policy. Launched in November and optimum gut function. company launched its PS…Festival 2018, this is guided by the internationally cosmetics. As well as being certified recognised Five Freedoms. AB Agri has its cruelty-free, the collection uses an own Animal Health and Welfare Policy. eco‑friendly alternative to traditional glitter made from eucalyptus trees, grown in responsibly managed plantations certified by the Programme for the Endorsement of Forest Certification (PEFC).

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 53

Independent Assurance statement to the Directors of Associated British Foods

We have performed a limited assurance criteria against which to evaluate the content of • Assessing whether the HSE data has • Greenhouse gas emissions (Scope 1, 2 and 3) the Report and Associated British Foods’ notes, been collected, consolidated and reported engagement on selected performance data (tCO2e) consisting of energy consumption inputs, definitions and methodology in the ESG Appendix as appropriately at a Group and Business Segment and statements presented in the Associated process emissions, transport emissions and criteria to evaluate the Selected Data defined below. level in line with Associated British Foods’ British Foods plc 2019 Responsibility Report, agricultural emissions reporting guidance. • Total volume of water used (m3) the ESG Appendix Report and the Annual Summary of work performed The procedures we performed were based on our 6. Reviewed Associated British Foods’ processes • Quantity of non-hazardous waste sent for disposal Report and Accounts 2019 (collectively professional judgement and included the work- for determining material issues to be included (tonnes) referred to as “the Report”). steps below: in the Report. • Quantity of hazardous waste sent for disposal 7. Reviewed the coverage of material issues (tonnes) Respective responsibilities 1. Interviewed a selection of Associated British within the Report for the reporting period against Associated British Foods’ management is Foods’ executives and senior managers to • Quantity of waste sent for recycling or recovery or the key issues raised by Associated British Foods’ responsible for the collection and presentation of understand the current status of Corporate other beneficial use (tonnes) stakeholder engagement activities, material issues the information within the Report. Associated British Responsibility (CR) and Health, Safety and • Quantity of packaging used for the containment, and areas of performance covered in external Foods’ management is also responsible for the Environment (HSE) activities and progress made protection, handling, delivery and presentation of media reports, and the topics discussed by the design, implementation and maintenance of internal during the reporting period of 1st August 2018 to goods (tonnes) Board and senior management as identified in controls relevant to the preparation of the Report, so 31st July 2019. previous work-steps. that it is free from material misstatement, whether 2. Reviewed selected documents including Board Limitations of our review Our evidence gathering procedures were designed due to fraud or error. agendas and presentations, ESG analyst reports 8. Reviewed information or explanations about to obtain a ‘limited level’ of assurance (as set out and other documents to assess management the Report’s data, statements and assertions Our responsibility, in accordance with our in ISAE3000 Revised and defined by AA1000AS awareness of CR and HSE issues, review CR and regarding Associated British Foods’ CR and HSE engagement terms with Associated British 2008 Type 2 assurance engagement) on which HSE progress, and to test the coverage of topics performance. Foods’ management, is to carry out a ‘limited to base our conclusions. The extent of evidence within the Report. level’ assurance engagement on Selected Data The above work-steps were carried out in relation to gathering procedures performed is less than that and performance claims in the Report (“the 3. Reviewed Associated British Foods’ approach the HSE KPIs in the table below. of a reasonable assurance engagement (such as Subject Matter Information”). The Subject Matter to stakeholder engagement through interviews a financial audit) and, therefore, a lower level of Information in the scope of the EY assurance has with employees with responsibility for managing Selected data subject to detailed review in assurance is provided. been indicated with a  symbol in the Report. engagement activities at Group and selected the Report The scope of our engagement was limited to the We do not accept or assume any responsibility businesses. • Number of work-related deaths to employees reporting period of 1st August 2018 to 31st July 2019 for any other purpose or to any other person or 4. Conducted site visits and desktop reviews for and did not include an assessment of performance organisation. Any reliance any such third party 12 Associated British Foods businesses to review • Number of work-related deaths to independent information relating to prior reporting periods. may place on the Report is entirely at its own risk. local-level CR initiatives, stakeholder engagement contractors as a result of Associated British Foods’ and to review local-level HSE performance, data work activities Our assurance engagement has been planned and collection processes and controls and to test back • Number of Lost Time Injuries (LTIs) to employees performed in accordance with the International to underlying source evidence. • Number of Lost Time Injuries (LTIs) to contractors as Standard for Assurance Engagements (ISAE) 3000 a result of Associated British Foods’ work activities 1 Type 2 moderate level assurance: an engagement in which Revised, Assurance Engagements Other Than 5. Performed detailed data testing on selected the assurance provider gives findings and conclusions on the • Number of health and safety fines against sites Audits or Reviews of Historical Financial Information, Group and Business Segment HSE data principles of Inclusivity, Materiality and Responsiveness and and to meet the requirements of a Type 2 assurance (“Selected Data”). The work-steps performed • Cost of health and safety fines received verifies the reliability of specified sustainability performance information (AA1000AS (2008) Standard). For further information included: • Number of environmental fines against sites engagement as defined by AA1000 AccountAbility see www.accountability.org/standards/. 1 Assurance Standard (AA1000AS, 2008) with 2018 • Reviewing the disaggregated HSE data for a • Cost of environmental fines received 2 The 2018 Addendum (AA1000AP) serves as a guiding framework Addendum (AA100AP, 2018)2. The AA1000AP sample of businesses within each of the five • Energy consumption (GWh) consisting of electricity of principles for sustainability management rather than a (2018) assurance principles of Inclusivity, Materiality, strategic business segments (Retail, Sugar, imported, natural gas used, coal and anthracite used, (prescriptive) standard and introduces a fourth, overarching principle — Impact — that supports results-based management Responsiveness and Impact have been used as Grocery, Ingredients and Agriculture) back to heavy fuel oil used, renewable fuel (bagasse, residue and accountability. For further information see www. source evidence. and wood) and imported steam used. accountability.org/standards/.

For more on our 2019 performance see our ESG Appendix OVERVIEW | PEOPLE | SOCIETY AND SUPPLY CHAINS | ENVIRONMENT | ASSURANCE STATEMENT Responsibility Report 2019 54

We have not sought any supporting evidence for • Nothing has come to our attention that causes us to Observations and areas for improvement Associated British Foods reports mostly qualitative data that has been sourced from Associated British believe that Associated British Foods’ management Our observations and areas for improvement will disclosures in relation to people and society, Foods’ Annual Report and Accounts. has not applied its processes for determining be raised in a report to Associated British Foods’ and, where quantitative metrics are used, they material issues to be included in the Report. management. The observations below do not affect are primarily input or output based (e.g. hours of We have not provided assurance over claims made our conclusions on the Report set out earlier in this training delivered, number of meals delivered). by Associated British Foods that are statements of Responsiveness statement. Consideration should be given to possible future belief or forward looking in nature. Has Associated British Foods responded to outcome-based metrics (e.g. improved health / stakeholder concerns? • Associated British Foods has continued to disclose Completion of our testing activities has involved its climate-related risks and provided more livelihoods) to demonstrate better the impact on • We are not aware of any matters that would lead placing reliance on Associated British Foods’ controls qualitative disclosures in this year’s reporting. To society, its people and broader ecosystems. us to conclude that Associated British Foods for managing and reporting HSE information, with the meet growing stakeholder expectations on this Our independence and competence degree of reliance informed by the results of our review has not applied the responsiveness principle in issue and better align to the Task Force on Climate- We have implemented measures to comply with of the effectiveness of these controls. We have not considering the matters to be reported. Related Financial Disclosures Recommendations, the applicable independence and professional sought to review systems and controls at Associated Impact Associated British Foods should seek to competence rules as articulated by the IFAC Code of British Foods beyond those used for HSE data. Has Associated British Foods monitored, strengthen its quantitative disclosures on Ethics for Professional Accountants and ISQC13. EY’s The responsibility for the prevention and detection measured and showed accountability for how businesses’ exposures to climate related risks and independence policies apply to the firm, partners of fraud, error and non-compliance with laws or their actions affect their broader ecosystems? opportunities under different scenarios. and professional staff. These policies prohibit any regulations rests with Associated British Foods’ • We are not aware of any matters that would lead • We have identified instances where Associated financial interests in our clients that would or might management. Our work should not be relied upon us to conclude that Associated British Foods has British Foods’ safety and environment data review be seen to impair independence. Each year, partners to disclose all such material misstatements, frauds, not applied the impact principle in considering the processes at a site and company level were not and staff are required to confirm their compliance errors or instances of non-compliance that may exist. matters to be reported. always successful in identifying errors before with the firm’s policies. the year-end submission to Group, particularly We confirm annually to Associated British Foods Our conclusions Completeness and accuracy of performance for some HSE KPIs (e.g. transport emissions, whether there have been any events including the Based on the scope of our review our conclusions information waste, tonnes of product). Whilst these errors provision of prohibited services that could impair our are outlined below: How plausible are the statements and claims were ultimately corrected before publication, independence or objectivity. There were no such relating to HSE within the Report? Inclusivity data accuracy and review processes continue events or services in 2018-19. Has Associated British Foods been engaging with • We have reviewed information or explanations on to be areas of focus for the Group. Associated Our assurance team has been drawn from our global stakeholders across the business to develop its selected statements on Associated British Foods’ British Foods should consider further refinement Climate Change and Sustainability Services Practice, approach to sustainability? sustainability activities presented in the Report, to the group-wide reporting guidance, as well as which undertakes engagements similar to this with a and we are not aware of any misstatements in the targeted engagement with businesses, where • We are not aware of any key stakeholder groups number of significant UK and international businesses. which have been excluded from engagement. assertions made. material errors have been repeatedly identified across reporting years, to ensure consistency and • We are not aware of any matters that would lead How complete and accurate (in line with accuracy of reporting against these KPIs. Ernst & Young LLP us to conclude that Associated British Foods has Associated British Foods’ reporting guidance) is London, 5th November 2019 not applied the inclusivity principle in developing its the ‘Selected Data’ presented in the Report? • In 2019, Associated British Foods has structured the report in three sections (People; Society and approach to sustainability. • With the exception of the limitations identified in the Supply Chains; and Environment) to discuss Report, we are not aware of any material reporting Materiality performance and progress across issues that units (as defined by Associated British Foods) that Has Associated British Foods provided a balanced are material for its businesses and stakeholders. have been excluded from the Selected Data. representation of material issues concerning its This shift in reporting structure allows a much sustainability performance? • Nothing has come to our attention that causes us to clearer view of impact (on p. 2 “Our Positive • We are not aware of any material issues raised in believe that the Selected Data has not been collated Contribution”) and progress made against the our review of media and Board papers which have properly at a Group or Business Segment level. Sustainable Development Goals (SDGs) (on p. 8 been excluded from the Report. • We are not aware of any errors that would “Supporting the UN Sustainable Development materially affect the Selected Data as presented in Goals). However, in our review against the the Report. ‘Impact’ principle of AA1000 we observed that

3 Parts A and B of the IESBA Code; and the International Standard on Quality Control 1 (ISQC1)

For more on our 2019 performance see our ESG Appendix Associated British Foods plc Weston Centre 10 Grosvenor Street London W1K 4QY Tel: +44 (0)20 7399 6500 Fax: +44 (0)20 7399 6580