J Sainsbury Plc Sainsbury's Sustainability Update 2020/21
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Sainsbury’s Sustainability Update 2020/21 J Sainsbury plc 01 Sainsbury’s Sustainability Update 2020/21 J Sainsbury plc 02 Welcome Welcome ................................................ 02 Offering delicious, great quality food Committed to Net Zero by 2040 . 03 at competitive prices has been at the Net Zero by 2040 ......................................... 05 heart of what we do since John James Carbon . 06 Water . 08 and Mary Ann Sainsbury opened our Food waste . 09 first store in 1869 . Today, inspiring and Plastics and recycling . .. 11 £35m Healthy sustainable diets . 13 189,000 raised for good causes delighting our customers with tasty Biodiversity . 15 colleagues this year food remains our priority . Sustainable Sourcing ..................................... 17 Our purpose is that driven by our environmental impacts Our People ............................................... 20 our passion for food, together or contributing to a healthier, Our colleagues . 21 we serve and help every more inclusive society . Our communities . .. 24 customer . This is an update on Our suppliers . 26 Over 189,000 colleagues are progress against our 14% Governance .............................................. 28 reduction in absolute integral to our success, now and Corporate Responsibility greenhouse gas in the future . Our colleagues and Sustainability agenda in Corporate Responsibility and Sustainability Committee Report . 29 60+ Reporting frameworks . 33 countries we source our emissions within our who work hard every day to 2020/21 . own-brand products own operations (against make our customers’ lives Performance Scorecard ................................... 34 from our 2018/19 baseline) easier and provide them with great products, quality and service . Our customers care about wide-ranging, complex issues that impact them and our wider world . They trust us to be a responsible business, whether that’s by supporting the communities we serve Find out more at and source from, managing www .about .sainsburys .co .uk . Sainsbury’s Sustainability Update 2020/21 J Sainsbury plc 03 Committed to Net Zero by 2040 In his first year as Chief Executive Officer and a year on from launching our ambitious Net Zero by 2040 commitment, Simon Roberts reflects on our progress and how we’re embedding sustainability across the business . The past year has seen customers and colleagues safe, We have also taken our Net unprecedented change helping to feed the nation and Zero by 2040 plan further with within the business and supporting our communities the addition of an ambitious I’m proud of how we have and those most vulnerable in target across the value chain adapted at pace in order society . I am delighted that which requires the reduction to support our customers, we raised £35 million for good of absolute greenhouse gas colleagues and communities causes this year, which includes emissions by 30 per cent by during the COVID-19 pandemic . donations made to our partners 2030 . Remuneration targets Throughout the year Comic Relief and FareShare to were also approved for the we have had three support those severely affected Board against priority pillars, key priorities: by the pandemic . We also further embedding our keeping created an additional £1 million sustainability commitments our local community fund for into the business . stores in January and created a digital version of our instore As part of our Net Zero by 2040 Food Donation Programme . plan, we have set ourselves ambitious long-term goals Despite the level of change that require fundamental across the business this change and we are making year, our sustainability good early progress to reduce commitments remain as carbon emissions, food waste, important as ever . Last year we plastic packaging and water announced our commitment usage and increase recycling, to invest £1 billion over 20 years biodiversity and healthy and to become Net Zero across our sustainable diets . Positive own operations by no later than examples include where we’ve 2040 . In November we set out a decreased our food waste plan to transform our business by 16 per cent and reduced over the next three years, Net our absolute greenhouse Zero by 2040 is a key priority gas emissions within our for us and a central part of operations by three per cent, a our plan to put food back at 14 per cent reduction from our the heart of Sainsbury’s . 2018/19 baseline, keeping us on course for our headline target . Sainsbury’s Sustainability Update 2020/21 J Sainsbury plc 04 However in areas like plastic, issue and know the solution is increased volume as a result through collaboration, therefore of the pandemic impacted the as we look to the year ahead, amount of plastic we put into I’m really pleased we were the market, despite continuing chosen to be a Principal Partner to drive our plastic reduction of the UN Climate Change initiatives . From our varied Conference, COP26, taking results this year, we recognise place in Glasgow in November the need to go further and 2021 . An exciting moment for faster working closely with our the UK where world leaders, suppliers, but are confident that climate experts and businesses the activities and initiatives that will convene to collaborate on have been implemented over the challenges ahead . We will the year across the business also be hosting our inaugural will support us in achieving our Environmental, Social and future goals . Corporate Governance (ESG) day for investors in June . We continue to make progress on being a truly inclusive We have an exciting year retailer where people love to ahead and we understand the work and shop . This year we scale of our business means set new corporate objectives we can make an important for diverse representation in contribution to both society leadership positions for the top and the planet . We want to help 230 leaders and the next top everyone eat better and remain 1200 leaders (beneath the top committed to accelerating 230 leaders), with 2024 targets progress across our ESG agenda for female, ethnically diverse so that we can drive lasting, and Black representation . positive change . I’m pleased that 1,400 of our top leaders, including the Board, completed race fluency upskilling sessions this year, and we’ve continued to work on representation and transparency across the business, incorporating our ethnicity pay gap into our Gender Pay Report for the first time this year . Our colleagues and customers care about wide-ranging, complex issues and we know that climate change is at the top of their minds . We Simon Roberts recognise the enormity of the Chief Executive Officer Sainsbury’s Sustainability Update 2020/21 J Sainsbury plc 05 Net Zero by 2040 We have committed to investing £1 billion over twenty years towards becoming a Net Zero business across our own operations by 2040, aligned to the highest ambitions of the Paris Climate Change Agreement . We are implementing a programme of change, focusing on reducing carbon emissions, food waste, plastic packaging and water usage and increasing recycling, biodiversity and healthy and sustainable eating . To support our commitment and to drive long-lasting and meaningful change, we will be supporting the UN Climate Change Conference, COP26, as Principal Supermarket Sponsor in the upcoming year and signed up to the UN’s Race to Zero campaign, designed to accelerate the adoption of net zero targets ahead of COP26 . We have also set remuneration targets for the Board against our key Net Zero by 2040 pillars to help drive business performance . More information on remuneration targets can be found in our Annual Report and Financial Statements 2021 . Sainsbury’s Sustainability Update 2020/21 J Sainsbury plc 06 Carbon Climate change and resource scarcity are complex, global challenges, which affect every part of our business . To grow our business sustainably, we are cutting carbon and maximising energy efficiency . Net Zero by 2040 occur throughout our value committed to working closely chain . We want to reduce with our vast global supplier Last year we announced our the environmental impact of base to help them develop and commitment to invest £1 billion our business and work with then meet their own targets . over 20 years to become Net farmers, growers and suppliers Zero across our own operations throughout our supply chain to by no later than 2040 . This help them reduce theirs . target includes Scopes 1 and “ 2, covering our direct and The Science Based Targets initiative (SBTi) has approved “We congratulate indirect emissions within our Sainsbury’s for setting operations . our Science Based Targets for Scopes 1, 2 and 3 . For Scopes science-based targets 1 and 2, these include the consistent with limiting reduction of greenhouse warming to 1 5°C,. the gas (GHG) emissions from most ambitious goal of Sainsbury’s own operations to the Paris Agreement . Net Zero by 2040 in a bid to By aligning its goals 14% limit global warming to 1 5°C. with a 1 5°C. future, and reduction in absolute asking its partners to do greenhouse gas We worked with the Carbon the same, Sainsbury’s emissions within our Trust to define an ambitious is ensuring it builds own operations (against Scope 3 target which requires resilience firmly into its our 2018/19 baseline) the reduction of absolute GHG business model and will emissions by 30 per cent by be positioned to thrive 2030, to align to a well below as the global economy 2°C scenario . The baseline transitions to a zero Setting science is 26,663,081 tC02e (2018/19) . emissions future .” The target includes reducing based targets emissions from purchased Alberto Carrillo Pineda goods, upstream transport Director, Science Based Targets This year we have taken our at CDP (one of the Science ambitious Net Zero by 2040 and distribution, services sold and our customers’ use Based Targets initiative plan further with the addition partners) of a Scope 3 target, which and consumption of the covers indirect emissions that products we sell .