Better for
2019 SUSTAINABILITY REPORT
Woolworths Group Limited ABN 88 000 014 675 Contents
SECTION 1 Performance highlights Chief Executive Officer’s message 2 Partnerships. Our Group Purpose 3 Woolworths Group 2020 commitments 4 Our journey 6 Our business 8 It is through the power of partnerships that we will be able to amplify our impact and SECTION 2 People: deliver on our bold ambitions to become a more Embracing diversity 10 sustainable business. SECTION 3 Planet: Working together to drive change has helped For a healthy environment 26 us achieve many of our results this year.
SECTION 4 With our customers we have removed over 3 billion Prosperity: single-use plastic bags from our environment. Founded on trusted relationships 46 With our team members we are creating an inclusive SECTION 5 culture that values diversity in all its forms. Sustainability metrics Sustainability metrics 74 With our suppliers we are working together to safeguard Workplace metrics 76 the rights of the workers in our supply chain. Corporate governance 85 Materiality 86 With our community partners we are changing the Industry association 88 lives of Australians and New Zealanders in need. Glossary 89 United Nations Global Compact 90 With our shareholders we are creating Global Reporting Initiative 91 Assurance report 94 sustainable long-term value. Company directory Inside Back Cover We are proud of our achievements, but we need to, and want to, do
This is an interactive PDF more to make things better. designed to enhance your experience. The best way to view this report is with Adobe Reader. Click on the links on the contents pages or use the home button in the footer to navigate Better for everyone. the report.
Scope of report: Unless otherwise stated, this report covers all our operations in Australia and New Zealand for the 2019 financial year – 1 July 2018 to 30 June 2019 (F19). Only workforce data (excluding safety) is included for our global sourcing offices in China, Bangladesh and Thailand. Contents
SECTION 1 Performance highlights Chief Executive Officer’s message 2 Partnerships. Our Group Purpose 3 Woolworths Group 2020 commitments 4 Our journey 6 Our business 8 It is through the power of partnerships that we will be able to amplify our impact and SECTION 2 People: deliver on our bold ambitions to become a more Embracing diversity 10 sustainable business. SECTION 3 Planet: Working together to drive change has helped For a healthy environment 26 us achieve many of our results this year.
SECTION 4 With our customers we have removed over 3 billion Prosperity: single-use plastic bags from our environment. Founded on trusted relationships 46 With our team members we are creating an inclusive SECTION 5 culture that values diversity in all its forms. Sustainability metrics Sustainability metrics 74 With our suppliers we are working together to safeguard Workplace metrics 76 the rights of the workers in our supply chain. Corporate governance 85 Materiality 86 With our community partners we are changing the Industry association 88 lives of Australians and New Zealanders in need. Glossary 89 United Nations Global Compact 90 With our shareholders we are creating Global Reporting Initiative 91 Assurance report 94 sustainable long-term value. Company directory Inside Back Cover We are proud of our achievements, but we need to, and want to, do more to make things better.
Better for everyone.
Scope of report: Unless otherwise stated, this report covers all our operations in Australia and New Zealand for the 2019 financial year – 1 July 2018 to 30 June 2019 (F19). Only workforce data (excluding safety) is included for our global sourcing offices in China, Bangladesh and Thailand. 3 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Chief Executive Officer’s message Our Group Purpose
The retail sector is being disrupted – rapidly changing customer preferences, increases in online shopping expe Our Ways-of-Working etter rience te b s to and, importantly, heightened customer and team Our Purpose ea ge H w wk cr t he expectations in regards to plastic, food waste and e r W . HIGHLIGHTS 1PERFORMANCE Wy w est W e clean energy. It is against this backdrop of change that ys wo a a rk lw g s e a n o n we are lifting our aspirations in regards to sustainability. e vi ne d ’r o t - e r e t p a o m - We understand our responsibility to not only work W im e n to improve our own business, but to partner with our d We put our customers, suppliers, team and other stakeholders customers
2PEOPLE W st s 1 g to build a better tomorrow. i e m e n k g i f p o e a in h l r t I r e e h u t c s , p t o i k h a t e t c r r o s h w g Retail is a team game, and our 2015 levels by 2030. This is consistent e i n o i r p n e r e e gs e m w o d t ci W do e e 190,000+ team members working with limiting warming to 1.5 C above e e a e h e a lly re am t p m f fr together and advocating for our brands pre‑industrial levels. l s a o y d s y are critical to our success. Keeping a Our team has continued to work lw our team, customers and visitors safe a hard and has made significant steps I continues to be our top priority and Our Values 3PLANET towards achieving – or in some cases our total injury frequency rate has I n exceeding – our 2020 Sustainability listen and lear improved by more than 5% from 2018. W w a commitments. However, real success We consider safety holistically and are goes much further than this. We want painfully aware of the mental health to integrate sustainability into the way challenges present in today’s society. that we go about our business every This year we launched our “I Am Here” day, so that every decision we make program to support our team and help is made with our purpose at its heart
4PROSPERITY embed the importance of psychological Woolworths Group Our customers are at the • Safeguarding the mental health – “Creating better experiences together... safety into our culture. Inclusivity is a diverse group of retail heart of everything we do. and wellbeing of our team to create a better tomorrow”. members and the human rights is another important element of this and businesses and brands We constantly embrace new we’re proud to this year have achieved We continue to be committed and innovative ideas, and new of those in our supply chain Gold Tier Employer status in Australian to providing genuine, transparent across Australia and New ways of thinking and doing, • Listening to our customers’ Workplace Equality Index for LGBTI reporting on our progress, and this Zealand united by our to enable us to be agile, concerns by reducing inclusion for the second year running, year have increased our disclosure common Purpose – to responsive and adaptable – ready the amount of single‑use and to have launched our second in our most strategically important plastic or packaging from create better experiences to meet the evolving needs METRICS 5SUSTAINABILITY Indigenous Reconciliation Action Plan. areas of sustainability. our supermarkets and demands of our customers Through our extensive agricultural in partnership with our On behalf of the Woolworths team and our changing environment. • Using more sustainable supply chain we have observed the I am pleased to share with you our customers, communities ingredients across our devastating effects that climate change 2019 Sustainability Report. and networks, and make Our Core Values define us, Own Brand product range is having on our farmers in Australia and what we stand for, and our a positive impact on our • Trialling or implementing and New Zealand. We have also Ways‑of‑Working describe the experienced this first hand during world. Our Purpose is new technologies, practices way we do things. Together, the Townsville floods in February. what drives us, and every or policies to further reduce As a large user of electricity, we our Purpose, Core Values the ecological footprint of our accept our responsibility to take one of our team members. and Ways‑of‑Working help us business operations. action and have re‑set our emissions to strive to continuously maintain Brad Banducci We are committed to building reduction target to 60% below our CHIEF EXECUTIVE OFFICER the optimal culture and conditions greater trust, loyalty and impact for all of our businesses to thrive. through our actions. This Our sustainability work is centred report presents some of our around making a positive impact achievements from the 2019 Woolworths Group is a signatory to the United Nations Global Compact (UNGC). across our network, whether it be: financial year. UNGC signatories embrace a set of core values in the areas of human rights, labour standards, the environment and anti‑corruption. In this report, we share our performance against the UNGC core values. 3 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Chief Executive Officer’s message Our Group Purpose
The retail sector is being disrupted – rapidly changing customer preferences, increases in online shopping expe Our Ways-of-Working etter rience te b s to and, importantly, heightened customer and team Our Purpose ea ge H w wk cr t he expectations in regards to plastic, food waste and e r W . HIGHLIGHTS 1PERFORMANCE Wy w est W e clean energy. It is against this backdrop of change that ys wo a a rk lw g s e a n o n we are lifting our aspirations in regards to sustainability. e vi ne d ’r o t - e r e t p a o m - We understand our responsibility to not only work W im e n to improve our own business, but to partner with our d We put our customers, suppliers, team and other stakeholders customers
2PEOPLE W st s 1 g to build a better tomorrow. i e m e n k g i f p o e a in h l r t I r e e h u t c s , p t o i k h a t e t c r r o s h w g Retail is a team game, and our 2015 levels by 2030. This is consistent e i n o i r p n e r e e gs e m w o d t ci W do e e 190,000+ team members working with limiting warming to 1.5 C above e e a e h e a lly re am t p m f fr together and advocating for our brands pre‑industrial levels. l s a o y d s y are critical to our success. Keeping a Our team has continued to work lw our team, customers and visitors safe a hard and has made significant steps I continues to be our top priority and Our Values 3PLANET towards achieving – or in some cases our total injury frequency rate has I n exceeding – our 2020 Sustainability listen and lear improved by more than 5% from 2018. W w a commitments. However, real success We consider safety holistically and are goes much further than this. We want painfully aware of the mental health to integrate sustainability into the way challenges present in today’s society. that we go about our business every This year we launched our “I Am Here” day, so that every decision we make program to support our team and help is made with our purpose at its heart
4PROSPERITY embed the importance of psychological Woolworths Group Our customers are at the • Safeguarding the mental health – “Creating better experiences together... safety into our culture. Inclusivity is a diverse group of retail heart of everything we do. and wellbeing of our team to create a better tomorrow”. members and the human rights is another important element of this and businesses and brands We constantly embrace new we’re proud to this year have achieved We continue to be committed and innovative ideas, and new of those in our supply chain Gold Tier Employer status in Australian to providing genuine, transparent across Australia and New ways of thinking and doing, • Listening to our customers’ Workplace Equality Index for LGBTI reporting on our progress, and this Zealand united by our to enable us to be agile, concerns by reducing inclusion for the second year running, year have increased our disclosure common Purpose – to responsive and adaptable – ready the amount of single‑use and to have launched our second in our most strategically important plastic or packaging from create better experiences to meet the evolving needs METRICS 5SUSTAINABILITY Indigenous Reconciliation Action Plan. areas of sustainability. our supermarkets and demands of our customers Through our extensive agricultural in partnership with our On behalf of the Woolworths team and our changing environment. • Using more sustainable supply chain we have observed the I am pleased to share with you our customers, communities ingredients across our devastating effects that climate change 2019 Sustainability Report. and networks, and make Our Core Values define us, Own Brand product range is having on our farmers in Australia and what we stand for, and our a positive impact on our • Trialling or implementing and New Zealand. We have also Ways‑of‑Working describe the experienced this first hand during world. Our Purpose is new technologies, practices way we do things. Together, the Townsville floods in February. what drives us, and every or policies to further reduce As a large user of electricity, we our Purpose, Core Values the ecological footprint of our accept our responsibility to take one of our team members. and Ways‑of‑Working help us business operations. action and have re‑set our emissions to strive to continuously maintain Brad Banducci We are committed to building reduction target to 60% below our CHIEF EXECUTIVE OFFICER the optimal culture and conditions greater trust, loyalty and impact for all of our businesses to thrive. through our actions. This Our sustainability work is centred report presents some of our around making a positive impact achievements from the 2019 Woolworths Group is a signatory to the United Nations Global Compact (UNGC). across our network, whether it be: financial year. UNGC signatories embrace a set of core values in the areas of human rights, labour standards, the environment and anti‑corruption. In this report, we share our performance against the UNGC core values. 4 5 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
People Planet Prosperity Woolworths Group embracing diversity for a healthy environment founded on trusted relationships
We value diversity across Woolworths We recognise Woolworths Group’s environmental We will focus on positive relationships with Group. Our customers should see in our impact across our value chain and will work with our suppliers, give back to the communities people a reflection of themselves and their suppliers, service providers and operations to innovate in which we operate, and rebuild trust 2020 communities. In this strategy we embrace for a healthy planet. We will support the move to with our customers and investors. targets that support diversity and, hand a circular economy, source environmentally sustainable
HIGHLIGHTS 1PERFORMANCE commitments in hand with this aim, inclusion and respect. commodities and respond to climate change.
Promoting gender equity Moving to a circular economy Working with our business partners
At least 40 per cent of executive and senior We will achieve a top quartile ranking Towards zero food waste going to landfill. manager positions to be held by women. in how we engage fairly and equitably 1 9 with our suppliers as measured
Launched in February 2017, 2PEOPLE Improve the recyclability of our 15 by independent supplier surveys. our 2020 Strategy brings new No salary wage gap between male and female own brand packaging and contribute employees of equivalent positions on a per‑hour to the circular economy. focus, resources and energy 10 We will focus on a best practice compliance rate at all levels of the company. to sustainability. 2 system according to the Global Social Sourcing environmentally 16 Compliance Program. We will collaborate with sustainable commodities peak organisations to improve workers’ lives. The targets assigned under Building our diversity Source key raw materials and commodities
3PLANET our People, Planet and 100 per cent of those responsible for hiring new sustainably to an independent standard Giving back to the communities team members to have completed unconscious by 2020. We will raise awareness in which we operate Prosperity pillars cover bias training. Woolworths Group’s engagement 3 11 of sustainably sourced products. We will invest the equivalent of 1 per cent of a three‑year rolling average of total Group with customers, communities, Continue the focus on encouraging cultural Achieve net zero supply chain deforestation Earnings Before Interest and Tax (EBIT) supply chain and team members, diversity, with a commitment that by 2020 for ‘high‑impact’ commodities in our own 17 in community partnerships and programs. the Woolworths Group team will truly reflect brand products, such as palm oil, timber, as well as our responsibility 4 the communities we serve. 12 pulp and paper, and packaging. We will publicly report social impact
4PROSPERITY to minimise the environmental to quantify the positive changes we are impact of our operations. Supporting Aboriginal and Responding to climate change creating with a focus on health, economic Torres Strait Islander employment 18 development and emergency relief. Proportion of Indigenous team members to Commitment achieved and revised: equal Federal Government Employment Parity Reduce Woolworths Group’s carbon Creating shared value with our customers contract. Once achieved, 2 per cent of our Store 13 emissions to 10 per cent below 2015 levels. 5 Operations team members will be Indigenous. We will achieve leading customer
METRICS 5SUSTAINABILITY Innovate with natural refrigerants and satisfaction scores. Proportion of Indigenous Graduates reduce refrigerant leakage in our stores 19 to equal Federal Government Employment by 15 per cent of CO2‑e below 2015 levels. Parity contract. Once achieved, 2 per cent 14 We will help our customers to consume 6 of our Graduates will be Indigenous. all of our products in a healthy, 20 sustainable way. Creating a safe environment We are committed to maintaining a workplace that safeguards the health and wellbeing of our 7 team members, customers and visitors.
Offering opportunities for all
Achieve Gold Tier employer status in Australian Workplace Equality Index (AWEI) for Lesbian, Gay, Bisexual, Transgender and Intersex 8 (LGBTI) inclusion. 4 5 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
People Planet Prosperity Woolworths Group embracing diversity for a healthy environment founded on trusted relationships
We value diversity across Woolworths We recognise Woolworths Group’s environmental We will focus on positive relationships with Group. Our customers should see in our impact across our value chain and will work with our suppliers, give back to the communities people a reflection of themselves and their suppliers, service providers and operations to innovate in which we operate, and rebuild trust 2020 communities. In this strategy we embrace for a healthy planet. We will support the move to with our customers and investors. targets that support diversity and, hand a circular economy, source environmentally sustainable
HIGHLIGHTS 1PERFORMANCE commitments in hand with this aim, inclusion and respect. commodities and respond to climate change.
Promoting gender equity Moving to a circular economy Working with our business partners
At least 40 per cent of executive and senior We will achieve a top quartile ranking Towards zero food waste going to landfill. manager positions to be held by women. in how we engage fairly and equitably 1 9 with our suppliers as measured
Launched in February 2017, 2PEOPLE Improve the recyclability of our 15 by independent supplier surveys. our 2020 Strategy brings new No salary wage gap between male and female own brand packaging and contribute employees of equivalent positions on a per‑hour to the circular economy. focus, resources and energy 10 We will focus on a best practice compliance rate at all levels of the company. to sustainability. 2 system according to the Global Social Sourcing environmentally 16 Compliance Program. We will collaborate with sustainable commodities peak organisations to improve workers’ lives. The targets assigned under Building our diversity Source key raw materials and commodities
3PLANET our People, Planet and 100 per cent of those responsible for hiring new sustainably to an independent standard Giving back to the communities team members to have completed unconscious by 2020. We will raise awareness in which we operate Prosperity pillars cover bias training. Woolworths Group’s engagement 3 11 of sustainably sourced products. We will invest the equivalent of 1 per cent of a three‑year rolling average of total Group with customers, communities, Continue the focus on encouraging cultural Achieve net zero supply chain deforestation Earnings Before Interest and Tax (EBIT) supply chain and team members, diversity, with a commitment that by 2020 for ‘high‑impact’ commodities in our own 17 in community partnerships and programs. the Woolworths Group team will truly reflect brand products, such as palm oil, timber, as well as our responsibility 4 the communities we serve. 12 pulp and paper, and packaging. We will publicly report social impact
4PROSPERITY to minimise the environmental to quantify the positive changes we are impact of our operations. Supporting Aboriginal and Responding to climate change creating with a focus on health, economic Torres Strait Islander employment 18 development and emergency relief. Proportion of Indigenous team members to Commitment achieved and revised: equal Federal Government Employment Parity Reduce Woolworths Group’s carbon Creating shared value with our customers contract. Once achieved, 2 per cent of our Store 13 emissions to 10 per cent below 2015 levels. 5 Operations team members will be Indigenous. We will achieve leading customer
METRICS 5SUSTAINABILITY Innovate with natural refrigerants and satisfaction scores. Proportion of Indigenous Graduates reduce refrigerant leakage in our stores 19 to equal Federal Government Employment by 15 per cent of CO2‑e below 2015 levels. Parity contract. Once achieved, 2 per cent 14 We will help our customers to consume 6 of our Graduates will be Indigenous. all of our products in a healthy, 20 sustainable way. Creating a safe environment We are committed to maintaining a workplace that safeguards the health and wellbeing of our 7 team members, customers and visitors.
Offering opportunities for all
Achieve Gold Tier employer status in Australian Workplace Equality Index (AWEI) for Lesbian, Gay, Bisexual, Transgender and Intersex 8 (LGBTI) inclusion. 6 7 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Our journey
Woolworths Group Achieved: Launch 2020 No salary I am here Commitments wage gap program launch In February 2017 we launched our Salary wage gap between Launched ‘I am here’ program 2020 strategy, setting out our male and female employees of dedicated to supporting sustainability journey. equivalent positions reduced to mental wellbeing. 0.41% (statistically insignificant).
Achieved: Woolworths Group Unconscious Achieved: Achieved: Reconciliation
HIGHLIGHTS 1PERFORMANCE Board 50% Women bias training LGBTI Inclusion LGBTI Inclusion Action Plan Destination Zero The Woolworths Group Board is Unconscious bias training pilot Awarded Gold Tier employer Awarded Gold tier status in Launched our revised Maintaining a safe environment gender balanced with 50% women. program completed. Planning status in Australian Workplace Australian LGBTI Inclusion Awards Reconciliation Action Plan. for customers, team members, for rollout across the Group. Equality Index for LGBTI inclusion. for the second year running. suppliers and visitors.
PEOPLE 2PEOPLE
PLANET
PROSPERITY 3PLANET
Taskforce on Reduce food Energy Achieved: Achieved: Climate‑related Financial waste to landfill management Plastic bags Natural Refrigerant Emissions reduction Disclosure (TCFD) Recommitted our goal to Commenced work on establishing Australian stores no longer offer Installed 18 natural refrigeration 2019 carbon emissions 18% Our disclosures to be aligned to the
4PROSPERITY reduce food waste to landfill. the Energy Management Centre single‑use lightweight plastic systems in our stores across below 2015 levels. TCFD requirements of Excellence. shopping bags. Australia and New Zealand.
Country of Achieved: Responsible Sourcing Reset our Climate Risk Moving to a circular Origin labelling 1% EBIT community Program emissions targets Assessments economy contribution METRICS 5SUSTAINABILITY We were the first supermarket Reviewed and launched our new Our revised emission targets are Held Group wide climate risk Improve the recyclability of Own to commence labelling our own 1% of EBIT donated Responsible Sourcing Program. being put forward to the Science assessment workshops to Brand product packaging and brand products. to community causes across Based Target Initiative. understand our key risks. reducing food waste going to landfill. Australia and New Zealand.
Healthiest Own Responsible Sourcing Top supplier Product renovation Health Influencer Day Brand products Program survey rating Removed artificial colours, Hosted our first collaborative Woolworths Own Brand products Reviewed 768 audit reports Achieve top quartile rating in flavours and added MSG Health Day in Australia and named the healthiest in Australia by of high risk suppliers. independent supplier survey for and reducing saturated fat, New Zealand. independent researchers. fair and equitable engagement. sugar and sodium across own brand products. 2016 2017 2018 2019 2020 6 7 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Our journey
Woolworths Group Achieved: Launch 2020 No salary I am here Commitments wage gap program launch In February 2017 we launched our Salary wage gap between Launched ‘I am here’ program 2020 strategy, setting out our male and female employees of dedicated to supporting sustainability journey. equivalent positions reduced to mental wellbeing. 0.41% (statistically insignificant).
Achieved: Woolworths Group Unconscious Achieved: Achieved: Reconciliation
HIGHLIGHTS 1PERFORMANCE Board 50% Women bias training LGBTI Inclusion LGBTI Inclusion Action Plan Destination Zero The Woolworths Group Board is Unconscious bias training pilot Awarded Gold Tier employer Awarded Gold tier status in Launched our revised Maintaining a safe environment gender balanced with 50% women. program completed. Planning status in Australian Workplace Australian LGBTI Inclusion Awards Reconciliation Action Plan. for customers, team members, for rollout across the Group. Equality Index for LGBTI inclusion. for the second year running. suppliers and visitors.
PEOPLE 2PEOPLE
PLANET
PROSPERITY 3PLANET
Taskforce on Reduce food Energy Achieved: Achieved: Climate‑related Financial waste to landfill management Plastic bags Natural Refrigerant Emissions reduction Disclosure (TCFD) Recommitted our goal to Commenced work on establishing Australian stores no longer offer Installed 18 natural refrigeration 2019 carbon emissions 18% Our disclosures to be aligned to the
4PROSPERITY reduce food waste to landfill. the Energy Management Centre single‑use lightweight plastic systems in our stores across below 2015 levels. TCFD requirements of Excellence. shopping bags. Australia and New Zealand.
Country of Achieved: Responsible Sourcing Reset our Climate Risk Moving to a circular Origin labelling 1% EBIT community Program emissions targets Assessments economy contribution METRICS 5SUSTAINABILITY We were the first supermarket Reviewed and launched our new Our revised emission targets are Held Group wide climate risk Improve the recyclability of Own to commence labelling our own 1% of EBIT donated Responsible Sourcing Program. being put forward to the Science assessment workshops to Brand product packaging and brand products. to community causes across Based Target Initiative. understand our key risks. reducing food waste going to landfill. Australia and New Zealand.
Healthiest Own Responsible Sourcing Top supplier Product renovation Health Influencer Day Brand products Program survey rating Removed artificial colours, Hosted our first collaborative Woolworths Own Brand products Reviewed 768 audit reports Achieve top quartile rating in flavours and added MSG Health Day in Australia and named the healthiest in Australia by of high risk suppliers. independent supplier survey for and reducing saturated fat, New Zealand. independent researchers. fair and equitable engagement. sugar and sodium across own brand products. 2016 2017 2018 2019 2020 8 9 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Our business
All parts of the Woolworths Group have been working better together to deliver Endeavour Drinks
the achievements described in this report. Endeavour Drinks comprises 1,576 stores, including the Dan Murphy’s, BWS, Cellarmasters and Langton’s brands.
PAGE PAGE Woolworths Group Jawun Indigenous Community Program 19 Reducing landfill waste 31 Welcome Here Project membership 22 Making an impact 62
HIGHLIGHTS 1PERFORMANCE Woolworths Group manages some of Australia’s and New Zealand’s most recognised Sustainable packaging in drinks 30 Responsible service of alcohol 70 and trusted brands. We endeavour to create a world‑class experience for customers across all our stores and platforms.
PAGE PAGE Updated Parental Leave Policy 12 2019 Sydney Mardi Gras parade 24 Superannuation payments on paid parental leave 12 Paper straws 33
2PEOPLE Flexibility Policy 13 Pulp, paper and timber 33 New Zealand Food Pay Parity 13 Embedding the Five Freedoms in our practices 34 Family Violence Support Policy 13 Committed to working responsibly with animals 35 Our Countdown branded supermarket chain has 180 supermarkets Supporting and upskilling our people 14 Responding to climate change 36 across New Zealand, serving around three million customers every week. Inclusive leadership training 14 Refrigeration management 45 New Zealand food also includes CountdownX and franchise FreshChoice Reconciliation Action Plan 16 Understanding our suppliers 48 and SuperValue Supermarkets. Resourcing the Future Indigenous Compass app 48
3PLANET Employment Program 17 Responsible sourcing 50 PAGE PAGE Welcome to Country and Acknowledgment Making an impact 62 Women in leadership 13 Making an impact 62 of Country at Woolworths Group 18 Salvation Army Emergency Services 67 Rainbow Tick in New Zealand 22 Creating more accessible supermarkets 69 Our continued focus on mental health 20 Voice of Customer 68 Countdown’s Food Rescue Program 29 Making healthier eating easier 72 Australian LGBTI Inclusion Awards Plastic reduction in New Zealand 31 Health in New Zealand 73 Gold Tier Employer 23
4PROSPERITY
Australian Food Portfolio Businesses We are Australia’s largest supermarket chain and operate 1,024 supermarkets BIG W across the country. Australian Food also includes FoodCo, Metro and WooliesX.
METRICS 5SUSTAINABILITY BIG W provides Australians with great value across 183 stores, as well as online PAGE PAGE choices for general merchandise. Refugee Employment Program 14 Proudly cage‑free 34 Israa Alfarasi 15 Woolworths Organic Growth Fund 48 PAGE PAGE Lisa Hohoi 17 Supporting our dairy farmers 49 Women in BIG W 12 Shobola: Empowering women in our Bangladesh supply chain 57 Defibrillators in store 21 Sustainable Supplier of the Year BIG W sponsors the Australian LGBTI Awards 23 Making an impact 62 Electrical safety 21 – Humpty Doo Barramundi 49 Green Factories leading the way in Bangladesh 42 VOC improvement 68 Safety innovation 21 Launching responsible sourcing in our Australian horticultural supply chain 58 Reducing food waste 28 Making an impact 62 2025 national packaging targets 30 Woolworths Junior Landcare Grants 64 Reducing plastic across our stores 31 Our new partnership with Share the Dignity Hotels Sustainable seafood 32 is helping women and girls in need 66 Palm oil 33 Sourcing locally 68 ALH Group is a market leader, operating 328 hotels, including bars, dining, Sustainable beef 33 Eastcoast Beverages 68 gaming, accommodation and venue hire operations. RSPCA Chicken 34 Scan&Go 69 PAGE PAGE Woolworths and the Business Benchmark The Kitchen 69 for Animal Welfare (BBFAW) 34 Making an impact 62 Responsible gaming 71 Making healthier eating easier 72 8 9 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Our business
All parts of the Woolworths Group have been working better together to deliver Endeavour Drinks the achievements described in this report. Endeavour Drinks comprises 1,576 stores, including the Dan Murphy’s, BWS, Cellarmasters and Langton’s brands.
PAGE PAGE Woolworths Group Jawun Indigenous Community Program 19 Reducing landfill waste 31 Welcome Here Project membership 22 Making an impact 62
HIGHLIGHTS 1PERFORMANCE Woolworths Group manages some of Australia’s and New Zealand’s most recognised Sustainable packaging in drinks 30 Responsible service of alcohol 70 and trusted brands. We endeavour to create a world‑class experience for customers across all our stores and platforms.
PAGE PAGE Updated Parental Leave Policy 12 2019 Sydney Mardi Gras parade 24 Superannuation payments on paid parental leave 12 Paper straws 33
2PEOPLE Flexibility Policy 13 Pulp, paper and timber 33 New Zealand Food Pay Parity 13 Embedding the Five Freedoms in our practices 34 Family Violence Support Policy 13 Committed to working responsibly with animals 35 Our Countdown branded supermarket chain has 180 supermarkets Supporting and upskilling our people 14 Responding to climate change 36 across New Zealand, serving around three million customers every week. Inclusive leadership training 14 Refrigeration management 45 New Zealand food also includes CountdownX and franchise FreshChoice Reconciliation Action Plan 16 Understanding our suppliers 48 and SuperValue Supermarkets. Resourcing the Future Indigenous Compass app 48
3PLANET Employment Program 17 Responsible sourcing 50 PAGE PAGE Welcome to Country and Acknowledgment Making an impact 62 Women in leadership 13 Making an impact 62 of Country at Woolworths Group 18 Salvation Army Emergency Services 67 Rainbow Tick in New Zealand 22 Creating more accessible supermarkets 69 Our continued focus on mental health 20 Voice of Customer 68 Countdown’s Food Rescue Program 29 Making healthier eating easier 72 Australian LGBTI Inclusion Awards Plastic reduction in New Zealand 31 Health in New Zealand 73 Gold Tier Employer 23
4PROSPERITY
Australian Food Portfolio Businesses We are Australia’s largest supermarket chain and operate 1,024 supermarkets BIG W across the country. Australian Food also includes FoodCo, Metro and WooliesX.
METRICS 5SUSTAINABILITY BIG W provides Australians with great value across 183 stores, as well as online PAGE PAGE choices for general merchandise. Refugee Employment Program 14 Proudly cage‑free 34 Israa Alfarasi 15 Woolworths Organic Growth Fund 48 PAGE PAGE Lisa Hohoi 17 Supporting our dairy farmers 49 Women in BIG W 12 Shobola: Empowering women in our Bangladesh supply chain 57 Defibrillators in store 21 Sustainable Supplier of the Year BIG W sponsors the Australian LGBTI Awards 23 Making an impact 62 Electrical safety 21 – Humpty Doo Barramundi 49 Green Factories leading the way in Bangladesh 42 VOC improvement 68 Safety innovation 21 Launching responsible sourcing in our Australian horticultural supply chain 58 Reducing food waste 28 Making an impact 62 2025 national packaging targets 30 Woolworths Junior Landcare Grants 64 Reducing plastic across our stores 31 Our new partnership with Share the Dignity Hotels Sustainable seafood 32 is helping women and girls in need 66 Palm oil 33 Sourcing locally 68 ALH Group is a market leader, operating 328 hotels, including bars, dining, Sustainable beef 33 Eastcoast Beverages 68 gaming, accommodation and venue hire operations. RSPCA Chicken 34 Scan&Go 69 PAGE PAGE Woolworths and the Business Benchmark The Kitchen 69 for Animal Welfare (BBFAW) 34 Making an impact 62 Responsible gaming 71 Making healthier eating easier 72 10 People
Embracing diversity The commitments in our People pillar exemplify our Purpose and Core Values. In partnership with our more than 190,000 team members, we are building an inclusive culture that celebrates diversity in all its forms. It is this diversity that enables us to engage, innovate and create better experiences for our teams and customers.
Team members Voice of Team engagement score 196,000+ 80% 2.5% from F18 Remained steady in F18
Total recordable Proud @ Woolworths injury frequency rate (TRIFR) 2,200+ 14.99 members 5.72% from F18 29% from F18 Amelia Fogavini, Lisa Hohoi, Arjun Singh, Nuengruthai Nualphaka — Woolworths Supermarket Conder. 10 People
Embracing diversity The commitments in our People pillar exemplify our Purpose and Core Values. In partnership with our more than 190,000 team members, we are building an inclusive culture that celebrates diversity in all its forms. It is this diversity that enables us to engage, innovate and create better experiences for our teams and customers.
Team members Voice of Team engagement score 196,000+ 80% 2.5% from F18 Remained steady in F18
Total recordable Proud @ Woolworths injury frequency rate (TRIFR) 2,200+ 14.99 members 5.72% from F18 29% from F18 Amelia Fogavini, Lisa Hohoi, Arjun Singh, Nuengruthai Nualphaka — Woolworths Supermarket Conder. 12 13 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Promoting IMPACT: gender equality Commitment 1 Commitment 2 Flexibility Policy Sustainable Woolworths Group is committed to creating a culture Development Goal We care deeply about ensuring that each of our team members and workplace that provides all of our team members Women has the flexibility necessary Pay Parity with access to the same benefits, opportunities and in leadership to balance their work and Our Pay Parity Review methodology compares life priorities. As we work salaries of like‑for‑like roles of our team
In our Countdown HIGHLIGHTS 1PERFORMANCE resources. We take our responsibilities to our people together to achieve our members across the Woolworths Group. business, over the last business outcomes, offering This analysis helps identify gender pay seriously, and regularly review our systems so that all financial year the number gaps between our male and female team of women at General greater flexibility will enable obligations are being met. Where issues are identified members by grouping our positions and Manager level or above us to attract and retain career streams, also taking into consideration we commit to rectification. has increased from 50% in a diverse, committed workforce, team member movements that can result in F18 to 63%. The number of and to improve wellbeing, fluctuations in our gap. Our target is to remain senior roles held by women engagement, productivity, below a statistically insignificant 1% gap in our business has also innovation and effectiveness. and to report this annually after our annual 2PEOPLE increased from 33% to Offering greater flexibility also remuneration review cycle. 35% in F19. We’re working empowers us to adapt to an to provide women within ever‑evolving workplace, and our business the support to changing customer needs they need to take on leadership roles, including and community expectations. of executive and senior through targeted training As a large retail organisation, Updated Parental Superannuation manager positions held and opportunities. In F19 there are many opportunities for we introduced a Women 3PLANET 34% by women flexibility across the Woolworths in Leadership program, Leave Policy payments on paid which has already helped Group. We recognise that parental leave 300 women from across flexibility means different things Making things better for families our stores and supply to different people and our new is a core part of what we do at chain to develop their Flexibility Policy includes: Woolworths Group – and this We are pleased to become leadership capabilities includes supporting our team the first Australian retailer and confidence. We are • Allowing team members members who are at the start to introduce superannuation committed to attracting to work hours that better
4PROSPERITY of their parenting journey. contributions when eligible and retaining female suit family, study and other team members take 12 months talent at all levels, from commitments Woolworths is proud to have graduates through of parental leave. • Flexible career opportunities increased paid parental leave for to our female store Family Violence primary caregivers to 12 weeks “We know Australian women are team members and • Flexible leave options Support Policy (from six weeks) and introduced retiring with a lot less super than Women in BIG W our executive or senior secondary caregivers’ leave men. As one of the country’s largest leadership team. • Opportunities to work at BIG W has exceeded expectations in gender of one week. Additionally, private employers, we want to play flexible or diverse locations. Woolworths Group recognises that diversity in leadership positions, with more than family violence affects many people METRICS 5SUSTAINABILITY team members who have primary our part in closing the gap. We hope 50% of leadership positions held by women. caregiver responsibilities for this new initiative will help to create in Australia and New Zealand and it can a new child may also qualify an even more inclusive workplace impact our team members and their for up to 24 months’ unpaid at Woolworths, where our goal ability to contribute effectively at work. parental leave. is that all team members can enjoy Building on our work in New Zealand, Woolworths Group where Countdown has gained White All team members have access the same rewards, resources and is ranked Ribbon accreditation for its Family to our online parental leave opportunities, regardless of gender.” Violence Policy, in November 2018 platform containing information Group Chief People Officer, we introduced a new Family Violence and resources for those seeking Caryn Katsikogianis. Support Policy across our Australian to better manage their career # business. The policy formalises and parenting duties. 29 support options for anyone in our team globally in Equileap’s 2018 experiencing family violence, including Gender Equality Global free and confidential counselling, as well Report and Ranking, the as five days paid and five days unpaid Woolworths Group is Australia’s top company in only Australian retailer leave to cover matters such as medical Thomson Reuters’ 2018 Diversity and Inclusion Index in the top 200. and legal appointments or moving house. and 14th across the globe. Teresa Rendo – General Manager Commercial Jacqueline Jones, with 19 years in the business. Countdown Store Manager 12 13 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Promoting IMPACT: gender equality Commitment 1 Commitment 2 Flexibility Policy Sustainable Woolworths Group is committed to creating a culture Development Goal We care deeply about ensuring that each of our team members and workplace that provides all of our team members Women has the flexibility necessary Pay Parity with access to the same benefits, opportunities and in leadership to balance their work and Our Pay Parity Review methodology compares life priorities. As we work salaries of like‑for‑like roles of our team
In our Countdown HIGHLIGHTS 1PERFORMANCE resources. We take our responsibilities to our people together to achieve our members across the Woolworths Group. business, over the last business outcomes, offering This analysis helps identify gender pay seriously, and regularly review our systems so that all financial year the number gaps between our male and female team of women at General greater flexibility will enable obligations are being met. Where issues are identified members by grouping our positions and Manager level or above us to attract and retain career streams, also taking into consideration we commit to rectification. has increased from 50% in a diverse, committed workforce, team member movements that can result in F18 to 63%. The number of and to improve wellbeing, fluctuations in our gap. Our target is to remain senior roles held by women engagement, productivity, below a statistically insignificant 1% gap in our business has also innovation and effectiveness. and to report this annually after our annual 2PEOPLE increased from 33% to Offering greater flexibility also remuneration review cycle. 35% in F19. We’re working empowers us to adapt to an to provide women within ever‑evolving workplace, and our business the support to changing customer needs they need to take on leadership roles, including and community expectations. of executive and senior through targeted training As a large retail organisation, Updated Parental Superannuation manager positions held and opportunities. In F19 there are many opportunities for we introduced a Women 3PLANET 34% by women flexibility across the Woolworths in Leadership program, Leave Policy payments on paid which has already helped Group. We recognise that parental leave 300 women from across flexibility means different things Making things better for families our stores and supply to different people and our new is a core part of what we do at chain to develop their Flexibility Policy includes: Woolworths Group – and this We are pleased to become leadership capabilities includes supporting our team the first Australian retailer and confidence. We are • Allowing team members members who are at the start to introduce superannuation committed to attracting to work hours that better
4PROSPERITY of their parenting journey. contributions when eligible and retaining female suit family, study and other team members take 12 months talent at all levels, from commitments Woolworths is proud to have graduates through of parental leave. • Flexible career opportunities increased paid parental leave for to our female store Family Violence primary caregivers to 12 weeks “We know Australian women are team members and • Flexible leave options Support Policy (from six weeks) and introduced retiring with a lot less super than Women in BIG W our executive or senior secondary caregivers’ leave men. As one of the country’s largest leadership team. • Opportunities to work at BIG W has exceeded expectations in gender of one week. Additionally, private employers, we want to play flexible or diverse locations. Woolworths Group recognises that diversity in leadership positions, with more than family violence affects many people METRICS 5SUSTAINABILITY team members who have primary our part in closing the gap. We hope 50% of leadership positions held by women. caregiver responsibilities for this new initiative will help to create in Australia and New Zealand and it can a new child may also qualify an even more inclusive workplace impact our team members and their for up to 24 months’ unpaid at Woolworths, where our goal ability to contribute effectively at work. parental leave. is that all team members can enjoy Building on our work in New Zealand, Woolworths Group where Countdown has gained White All team members have access the same rewards, resources and is ranked Ribbon accreditation for its Family to our online parental leave opportunities, regardless of gender.” Violence Policy, in November 2018 platform containing information Group Chief People Officer, we introduced a new Family Violence and resources for those seeking Caryn Katsikogianis. Support Policy across our Australian to better manage their career # business. The policy formalises and parenting duties. 29 support options for anyone in our team globally in Equileap’s 2018 experiencing family violence, including Gender Equality Global free and confidential counselling, as well Report and Ranking, the as five days paid and five days unpaid Woolworths Group is Australia’s top company in only Australian retailer leave to cover matters such as medical Thomson Reuters’ 2018 Diversity and Inclusion Index in the top 200. and legal appointments or moving house. and 14th across the globe. Teresa Rendo – General Manager Commercial Jacqueline Jones, with 19 years in the business. Countdown Store Manager 14 15 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Embracing IMPACT: our diversity Commitment 3 Commitment 4
Sustainable Woolworths’ efforts to better reflect the customers and Development Goal communities we serve exemplify our commitment to maintaining a diverse, engaged and inclusive workforce.
HIGHLIGHTS 1PERFORMANCE
Voice of Team engagement score
2PEOPLE Supporting and Inclusive 80% upskilling our people leadership training
At Woolworths Group, Recognising and harnessing supporting and upskilling our the diversity within our
team members is an essential teams is an enabler of business 3PLANET investment in our people and growth, team member our future growth. Our team engagement, workplace members, from the newest innovation and productivity. through to the most senior, are In 2018, over 420 leaders provided with continued learning from across the business and development opportunities attended a series of inclusive Refugee to help them achieve personal leadership and unconscious Employment Program
4PROSPERITY and career goals. These bias face‑to‑face workshops to Israa Alfarasi opportunities include our develop and practice constructive In order to better reflect the culturally Woolworths Supermarket, Liverpool, NSW pathways in stores, formal and inclusive behaviours in diverse communities we serve, in F18 coaching programs, a Leadership the workplace. we implemented a program in partnership Toolkit and management and with Community Corporate to provide Israa, a 42‑year‑old woman from Iraq, sought asylum in Australia with her mother in 2012. Before fleeing the conflict leadership training programs Over the last year, our Asia employment opportunities for displaced that destroyed her home, Israa studied accounting and worked as a primary school teacher. She has always been her for current and future leaders sourcing teams and Countdown refugees from Syria and the Middle East, to mother’s sole carer. business has also rolled out our aid them in successful resettlement. We are of our business. We understand As an asylum seeker, she was not permitted to work and only had access to six weeks of English courses. Language proud to report that through this program in METRICS 5SUSTAINABILITY that life changes and can throw inclusive leadership program, aimed at addressing the potential F19, 55 refugees commenced employment in was a major hurdle for Israa, who desperately wanted to give back to the community which had taken her in. up unexpected situations – we our New South Wales and Victorian Metro have leave policies in place for unconscious bias in our hiring In 2017, Israa was granted temporary protection, enabling her to start studying and working. Swiftly making up for team, which is something that we stores. Our program is now set to expand into (covering areas such as parental, Queensland, South Australia and WooliesX. lost time, she immersed herself in study by enrolling in the Adult Migrant English Program, obtaining a security carer or compassionate leave) know can impact the diversity of licence, studying aged care and completing a food handling and barista course. She also obtained a first aid certificate, our workforce. Over 360 team and other programs to support a construction industry ‘white card’ and certificates in ‘Responsible Service of Alcohol’ and ‘Responsible Conduct members have taken part in the our team members through of Gambling’. While Israa completed unpaid work experience at a local supermarket and café, she was unable program. While we continue the challenges they may face. to obtain paid employment. to roll out this training, in the As part of this, we maintain coming year we will also evaluate Israa’s brother successfully completed the Woolworths Refugee Program at the end of 2018 and, through him, various easily accessible the impact the program has Israa applied for the 2019 Easter intake. tools and support programs, had on our recruitment process such as the Retirement Successfully completing a work experience placement at Woolworths’ Liverpool store, Israa commenced and the resulting diversity of Planning Toolkit. as a permanent part‑time team member in mid‑April 2019. When asked what her job means to her, Israa responds, our workforce, and determine “It means everything for my life, to improve my life and my English. I can mix with other people, do something useful our future plans for making the for me and for others in my family, and help other people at work who need help.” training accessible to more of our team members and embedding inclusive leadership practices and understanding more broadly. 14 15 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Embracing IMPACT: our diversity Commitment 3 Commitment 4
Sustainable Woolworths’ efforts to better reflect the customers and Development Goal communities we serve exemplify our commitment to maintaining a diverse, engaged and inclusive workforce.
HIGHLIGHTS 1PERFORMANCE
Voice of Team engagement score
2PEOPLE Supporting and Inclusive 80% upskilling our people leadership training
At Woolworths Group, Recognising and harnessing supporting and upskilling our the diversity within our
team members is an essential teams is an enabler of business 3PLANET investment in our people and growth, team member our future growth. Our team engagement, workplace members, from the newest innovation and productivity. through to the most senior, are In 2018, over 420 leaders provided with continued learning from across the business and development opportunities attended a series of inclusive Refugee to help them achieve personal leadership and unconscious Employment Program
4PROSPERITY and career goals. These bias face‑to‑face workshops to Israa Alfarasi opportunities include our develop and practice constructive In order to better reflect the culturally Woolworths Supermarket, Liverpool, NSW pathways in stores, formal and inclusive behaviours in diverse communities we serve, in F18 coaching programs, a Leadership the workplace. we implemented a program in partnership Toolkit and management and with Community Corporate to provide Israa, a 42‑year‑old woman from Iraq, sought asylum in Australia with her mother in 2012. Before fleeing the conflict leadership training programs Over the last year, our Asia employment opportunities for displaced that destroyed her home, Israa studied accounting and worked as a primary school teacher. She has always been her for current and future leaders sourcing teams and Countdown refugees from Syria and the Middle East, to mother’s sole carer. business has also rolled out our aid them in successful resettlement. We are of our business. We understand As an asylum seeker, she was not permitted to work and only had access to six weeks of English courses. Language proud to report that through this program in METRICS 5SUSTAINABILITY that life changes and can throw inclusive leadership program, aimed at addressing the potential F19, 55 refugees commenced employment in was a major hurdle for Israa, who desperately wanted to give back to the community which had taken her in. up unexpected situations – we our New South Wales and Victorian Metro have leave policies in place for unconscious bias in our hiring In 2017, Israa was granted temporary protection, enabling her to start studying and working. Swiftly making up for team, which is something that we stores. Our program is now set to expand into (covering areas such as parental, Queensland, South Australia and WooliesX. lost time, she immersed herself in study by enrolling in the Adult Migrant English Program, obtaining a security carer or compassionate leave) know can impact the diversity of licence, studying aged care and completing a food handling and barista course. She also obtained a first aid certificate, our workforce. Over 360 team and other programs to support a construction industry ‘white card’ and certificates in ‘Responsible Service of Alcohol’ and ‘Responsible Conduct members have taken part in the our team members through of Gambling’. While Israa completed unpaid work experience at a local supermarket and café, she was unable program. While we continue the challenges they may face. to obtain paid employment. to roll out this training, in the As part of this, we maintain coming year we will also evaluate Israa’s brother successfully completed the Woolworths Refugee Program at the end of 2018 and, through him, various easily accessible the impact the program has Israa applied for the 2019 Easter intake. tools and support programs, had on our recruitment process such as the Retirement Successfully completing a work experience placement at Woolworths’ Liverpool store, Israa commenced and the resulting diversity of Planning Toolkit. as a permanent part‑time team member in mid‑April 2019. When asked what her job means to her, Israa responds, our workforce, and determine “It means everything for my life, to improve my life and my English. I can mix with other people, do something useful our future plans for making the for me and for others in my family, and help other people at work who need help.” training accessible to more of our team members and embedding inclusive leadership practices and understanding more broadly. 16 17 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Supporting IMPACT: Aboriginal and Commitment 5 Torres Strait Islander Commitment 6 Sustainable employment Development Goal
HIGHLIGHTS 1PERFORMANCE
We are proud to have continued to recruit, engage and retain more Aboriginal and Torres Strait Islander team members this year.
2PEOPLE
3PLANET Lisa Hohoi Resourcing the Woolworths Supermarket, Conder, ACT Reconciliation Action Plan Future Indigenous Employment Lisa Hohoi is a proud Murray Island woman from the Torres Strait, and On 5 July 2019, Woolworths • Listening to and learning from partners, while ensuring access to Program is part of the Komet Clan. She joined Woolworths through the Resourcing Group proudly launched our the knowledge and experience sustainable jobs and opportunities the Future Indigenous Employment Program in 2016 as a Team Member
4PROSPERITY second Reconciliation Action Plan of Aboriginal and Torres Strait for individuals that have the in the Deli department in the Conder, ACT, store and has since been We have continued our (RAP) in Coffs Harbour, NSW. Islander peoples past and present, potential to create lasting and promoted to the position of Deli Team Support. partnership with the Federal Our RAP outlines our continued especially in matters affecting multi‑generational benefits for Government and Diversity Prior to starting at Woolworths, life was difficult for Lisa, who struggled commitment to taking actions that Country and First Nations families and communities. Dimensions through our to get back into the workforce after having her children and escaping build relationships, respect and communities and networks Resourcing the Future Indigenous a domestic violence situation. opportunities between Aboriginal • Building strong and lasting Employment Program. In total, and Torres Strait Islander and Lisa seized the opportunity to provide a new life for her children when relationships with Aboriginal 2,279 Indigenous team members she saw an opening to join the Program. For Lisa, being promoted to
non‑Indigenous Australians. METRICS 5SUSTAINABILITY and Torres Strait Islander have joined us since the the position of Team Support has been “a really rewarding experience Our vision for reconciliation peoples, based on principles program's inception. Retention – it helped me grow my confidence as a woman within the workplace. is a better future in which all of equal partnership, social rates remain high at 71%. I’m very happy to have really good people around me that genuinely Australians have an equal voice justice and respect for their This year, we again achieved our believe in me, see that I have potential, and recognise that I’m hard and access to opportunities for cultures and histories in order commitment that at least 2% working. This has opened up so many opportunities for me, and for that prosperity. Our role in contributing to make a positive impact of our graduates be Indigenous I want to say, thank you, Woolies”. to reconciliation includes: where it is needed most by refining our recruitment Lisa is a role model for her children. Seeing their mum in a Woolworths • Advocating for, and actively • Building recognition, processes to identify and remove uniform, working hard and excelling in her role, has inspired her children supporting, the Uluru Statement understanding and respect systemic barriers to successful to be strong, resilient and self‑sufficient, just like their mum. Lisa adds, from the Heart by encouraging for the value of Aboriginal and recruitment, and further “Working for Woolworths has taught my kids to reach for opportunities constitutional change and Torres Strait Islander cultures, Reconciliation Action Plan strengthening our graduate July 2019 - July 2021 and to go further in life. They know that they can achieve anything as long structural reform to empower histories and achievements engagement strategy. We are as they work hard and have the right attitude”. First Nations peoples with continuing to develop other • A renewed focus on building constitutional recognition and opportunities for increasing business opportunities with a guaranteed voice Indigenous youth employment Aboriginal and Torres Strait Islander at Woolworths Group, including paid apprenticeships and internships. 16 17 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Supporting IMPACT: Aboriginal and Commitment 5 Torres Strait Islander Commitment 6 Sustainable employment Development Goal
HIGHLIGHTS 1PERFORMANCE
We are proud to have continued to recruit, engage and retain more Aboriginal and Torres Strait Islander team members this year.
2PEOPLE
3PLANET Lisa Hohoi Resourcing the Woolworths Supermarket, Conder, ACT Reconciliation Action Plan Future Indigenous Employment Lisa Hohoi is a proud Murray Island woman from the Torres Strait, and On 5 July 2019, Woolworths • Listening to and learning from partners, while ensuring access to Program is part of the Komet Clan. She joined Woolworths through the Resourcing Group proudly launched our the knowledge and experience sustainable jobs and opportunities the Future Indigenous Employment Program in 2016 as a Team Member
4PROSPERITY second Reconciliation Action Plan of Aboriginal and Torres Strait for individuals that have the in the Deli department in the Conder, ACT, store and has since been We have continued our (RAP) in Coffs Harbour, NSW. Islander peoples past and present, potential to create lasting and promoted to the position of Deli Team Support. partnership with the Federal Our RAP outlines our continued especially in matters affecting multi‑generational benefits for Government and Diversity Prior to starting at Woolworths, life was difficult for Lisa, who struggled commitment to taking actions that Country and First Nations families and communities. Dimensions through our to get back into the workforce after having her children and escaping build relationships, respect and communities and networks Resourcing the Future Indigenous a domestic violence situation. opportunities between Aboriginal • Building strong and lasting Employment Program. In total, and Torres Strait Islander and Lisa seized the opportunity to provide a new life for her children when relationships with Aboriginal 2,279 Indigenous team members she saw an opening to join the Program. For Lisa, being promoted to non‑Indigenous Australians. METRICS 5SUSTAINABILITY and Torres Strait Islander have joined us since the the position of Team Support has been “a really rewarding experience Our vision for reconciliation peoples, based on principles program's inception. Retention – it helped me grow my confidence as a woman within the workplace. is a better future in which all of equal partnership, social rates remain high at 71%. I’m very happy to have really good people around me that genuinely Australians have an equal voice justice and respect for their This year, we again achieved our believe in me, see that I have potential, and recognise that I’m hard and access to opportunities for cultures and histories in order commitment that at least 2% working. This has opened up so many opportunities for me, and for that prosperity. Our role in contributing to make a positive impact of our graduates be Indigenous I want to say, thank you, Woolies”. to reconciliation includes: where it is needed most by refining our recruitment Lisa is a role model for her children. Seeing their mum in a Woolworths • Advocating for, and actively • Building recognition, processes to identify and remove uniform, working hard and excelling in her role, has inspired her children supporting, the Uluru Statement understanding and respect systemic barriers to successful to be strong, resilient and self‑sufficient, just like their mum. Lisa adds, from the Heart by encouraging for the value of Aboriginal and recruitment, and further “Working for Woolworths has taught my kids to reach for opportunities constitutional change and Torres Strait Islander cultures, Reconciliation Action Plan strengthening our graduate July 2019 - July 2021 and to go further in life. They know that they can achieve anything as long structural reform to empower histories and achievements engagement strategy. We are as they work hard and have the right attitude”. First Nations peoples with continuing to develop other • A renewed focus on building constitutional recognition and opportunities for increasing business opportunities with a guaranteed voice Indigenous youth employment Aboriginal and Torres Strait Islander at Woolworths Group, including paid apprenticeships and internships. 18 19 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Supporting IMPACT: Aboriginal and Commitment 5
Commitment 6 Our vision for reconciliation is for a better tomorrow where all Australians Torres Strait Islander have an equitable voice and opportunities for prosperity. Sustainable employment Development Goal
HIGHLIGHTS 1PERFORMANCE
2PEOPLE Welcome to Country and Acknowledgment of Country at Woolworths Group
Woolworths Group is working hard of Country or Welcome to Country to Country from Aunty Millie to ensure that we acknowledge the performed at meetings and forums. Ingram and the unveiling of an traditional custodians of this land This year we are talking with our Acknowledgement of Country and pay our respects to Aboriginal team members about why it is plaque that will be proudly displayed
3PLANET and Torres Strait Islander elders, important to do an Acknowledgment at the entrance of our building. both past and present. of Country when our people gather Acknowledgement of Country together. At our Norwest support plaques are currently being installed Across all businesses we are office we began Reconciliation in many of our stores, support offices encouraging our team members to Week with a didgeridoo performance and distribution centres. either have an Acknowledgement from Tom Saunders, a Welcome
4PROSPERITY
Photo: Trevour Veale / News Corp
METRICS 5SUSTAINABILITY
Jawun Indigenous Community Program Steve Davies, Online Fulfilment Manager, Dan Murphy’s Steve is one of many team members to have taken part in a secondment under Endeavour Drinks' partnership with Jawun, which has been in place since 2013. Secondees are placed into six‑week programs across Australia to share their skills and experience to help Indigenous organisations with local community projects. Steve was seconded to the Lirrwi Yolngu Tourism Aboriginal Corporation in the North East Arnhem Land Region to provide an end to end solution for food logistics for their tourism business. “I gained a more thorough understanding of Australian history and the challenges confronting Indigenous Australians, and a greater appreciation of their diversity.” 18 19 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Supporting IMPACT: Aboriginal and Commitment 5
Commitment 6 Our vision for reconciliation is for a better tomorrow where all Australians Torres Strait Islander have an equitable voice and opportunities for prosperity. Sustainable employment Development Goal
HIGHLIGHTS 1PERFORMANCE
2PEOPLE Welcome to Country and Acknowledgment of Country at Woolworths Group
Woolworths Group is working hard of Country or Welcome to Country to Country from Aunty Millie to ensure that we acknowledge the performed at meetings and forums. Ingram and the unveiling of an traditional custodians of this land This year we are talking with our Acknowledgement of Country and pay our respects to Aboriginal team members about why it is plaque that will be proudly displayed
3PLANET and Torres Strait Islander elders, important to do an Acknowledgment at the entrance of our building. both past and present. of Country when our people gather Acknowledgement of Country together. At our Norwest support plaques are currently being installed Across all businesses we are office we began Reconciliation in many of our stores, support offices encouraging our team members to Week with a didgeridoo performance and distribution centres. either have an Acknowledgement from Tom Saunders, a Welcome
4PROSPERITY
Photo: Trevour Veale / News Corp
METRICS 5SUSTAINABILITY
Jawun Indigenous Community Program Steve Davies, Online Fulfilment Manager, Dan Murphy’s Steve is one of many team members to have taken part in a secondment under Endeavour Drinks' partnership with Jawun, which has been in place since 2013. Secondees are placed into six‑week programs across Australia to share their skills and experience to help Indigenous organisations with local community projects. Steve was seconded to the Lirrwi Yolngu Tourism Aboriginal Corporation in the North East Arnhem Land Region to provide an end to end solution for food logistics for their tourism business. “I gained a more thorough understanding of Australian history and the challenges confronting Indigenous Australians, and a greater appreciation of their diversity.” 20 21 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Caring for the safety IMPACT: and wellbeing of our Commitment 7
Sustainable teams and customers Development Goal
Safety Defibrillators in store Electrical safety
The Australian heart Foundation reports there are around 57,000 Electricity is critical in how we get our We care about the physical and psychological safety heart attacks each year in Australia 1 – the equivalent to one heart work done and serve our customers,
HIGHLIGHTS 1PERFORMANCE and health of our customers, team and communities. attack every 10 minutes. but it can also pose a serious risk to our We know that for every minute without CPR, or treatment with people if not properly managed. We We are committed to creating a safe work environment, a defibrillator to restart the heart, your chances of surviving a cardiac have identified key areas of improvement where people arrive home from work and shopping free arrest go down by 10%. After 10 minutes without CPR or treatment, for electrical safety, and in March 2019 from injuries and illness. there is little chance of survival at all. we started a program to implement This is why Woolworths has begun installing Automated External reinforced electrical cables and water Defibrillators (AED) nationally at our stores, starting with those where resistant power sockets in all of our
medical services may not be immediately accessible. We have AED supermarket production departments. 2PEOPLE available in 500 stores as at June 2019, designed for use by anyone The program has been implemented as they are equipped with step‑by‑step voice instructions. in all Australian Supermarkets.
3PLANET Our continued focus on mental health
The mental health of our team This year we focussed on achieving course and participation continues members continues to be our a culture where ‘it’s ok not to feel to grow. The launch coincided with number one safety, health and ok, and it’s absolutely ok to ask for the final of the Woolworths’ Singer/ Safety innovation
wellbeing priority. We aim help’ by implementing the ‘I am here’ Songwriter competition, which 4PROSPERITY to establish a culture where program. The program is designed centred on the theme of being there psychological safety is seen as just to help us look out for ourselves, for someone. All proceeds from the Hazard detection Wearable manual handling sensor as important as physical safety, and and others, in order to create competition were donated to Lifeline, When we launched our Gregory Hills ‘Smart Store’ in April Our Supply Chain division piloted a wearable ‘coaching’ we have implemented programs a supportive work environment for an invaluable resource Woolworths 2019, we were excited to launch our first safety robot. The device to reduce manual handling injuries this year in our to assist our teams and their every team member, every day. continues to support and invest in. robot patrols the store floor and detects safety hazards Victorian Distribution Centre. The device monitors the wearer families, including: We consider that these three little like spills and trip hazards, alerting a store team member and provides them with instant feedback (via vibration and We continue to encourage words can make a difference. where cleaning is required. The robot also watches over the an audible alert) when they make high‑risk movements that
METRICS 5SUSTAINABILITY • Team Assist (a free and our team to participate in the hazard until addressed, to prevent injuries to team members could lead to injury. The device also communicates with confidential psychological We understand that checking in with program and are exploring how and customers. the team member’s phone or tablet to provide coaching support service) people is important, but that it can we can share the program with the to improve manual handling techniques. be difficult to know what to do when broader community. • The deployment of over 1,000 someone tells you that they need Team members who participated in the pilot achieved trained mental health first aiders a greater than 50% reduction in high‑risk movements on help. 'I am here' uses a combination across our business average, and provided positive feedback about the device. of team members’ personal stories The pilot was extended to include team members at two more • Our Woolworths Wellbeing Portal and online learning to demonstrate distribution centres in the first half of 2019 and, if successful (providing online health and what a difference a small gesture like at those centres, will lead to a wider implementation plan wellbeing resources to our team) having a cup of tea with a colleague, across the business for 2020. and being there for them, can make. • Our Woolworths Financial Wellbeing program (offering 'I am here' was launched in February interest free loans of up to $2,000 2019 with over 1,000 team members for team members experiencing completing the training in the first unexpected financial stress). 24 hours. Since then, over 17,000 team members have completed the
1 www.heartfoundation.org.au/about‑us/what‑we‑do/heart‑disease‑in‑australia 20 21 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Caring for the safety IMPACT: and wellbeing of our Commitment 7
Sustainable teams and customers Development Goal
Safety Defibrillators in store Electrical safety
The Australian heart Foundation reports there are around 57,000 Electricity is critical in how we get our We care about the physical and psychological safety heart attacks each year in Australia 1 – the equivalent to one heart work done and serve our customers,
HIGHLIGHTS 1PERFORMANCE and health of our customers, team and communities. attack every 10 minutes. but it can also pose a serious risk to our We know that for every minute without CPR, or treatment with people if not properly managed. We We are committed to creating a safe work environment, a defibrillator to restart the heart, your chances of surviving a cardiac have identified key areas of improvement where people arrive home from work and shopping free arrest go down by 10%. After 10 minutes without CPR or treatment, for electrical safety, and in March 2019 from injuries and illness. there is little chance of survival at all. we started a program to implement This is why Woolworths has begun installing Automated External reinforced electrical cables and water Defibrillators (AED) nationally at our stores, starting with those where resistant power sockets in all of our
medical services may not be immediately accessible. We have AED supermarket production departments. 2PEOPLE available in 500 stores as at June 2019, designed for use by anyone The program has been implemented as they are equipped with step‑by‑step voice instructions. in all Australian Supermarkets.
3PLANET Our continued focus on mental health
The mental health of our team This year we focussed on achieving course and participation continues members continues to be our a culture where ‘it’s ok not to feel to grow. The launch coincided with number one safety, health and ok, and it’s absolutely ok to ask for the final of the Woolworths’ Singer/ Safety innovation wellbeing priority. We aim help’ by implementing the ‘I am here’ Songwriter competition, which 4PROSPERITY to establish a culture where program. The program is designed centred on the theme of being there psychological safety is seen as just to help us look out for ourselves, for someone. All proceeds from the Hazard detection Wearable manual handling sensor as important as physical safety, and and others, in order to create competition were donated to Lifeline, When we launched our Gregory Hills ‘Smart Store’ in April Our Supply Chain division piloted a wearable ‘coaching’ we have implemented programs a supportive work environment for an invaluable resource Woolworths 2019, we were excited to launch our first safety robot. The device to reduce manual handling injuries this year in our to assist our teams and their every team member, every day. continues to support and invest in. robot patrols the store floor and detects safety hazards Victorian Distribution Centre. The device monitors the wearer families, including: We consider that these three little like spills and trip hazards, alerting a store team member and provides them with instant feedback (via vibration and We continue to encourage words can make a difference. where cleaning is required. The robot also watches over the an audible alert) when they make high‑risk movements that
METRICS 5SUSTAINABILITY • Team Assist (a free and our team to participate in the hazard until addressed, to prevent injuries to team members could lead to injury. The device also communicates with confidential psychological We understand that checking in with program and are exploring how and customers. the team member’s phone or tablet to provide coaching support service) people is important, but that it can we can share the program with the to improve manual handling techniques. be difficult to know what to do when broader community. • The deployment of over 1,000 someone tells you that they need Team members who participated in the pilot achieved trained mental health first aiders a greater than 50% reduction in high‑risk movements on help. 'I am here' uses a combination across our business average, and provided positive feedback about the device. of team members’ personal stories The pilot was extended to include team members at two more • Our Woolworths Wellbeing Portal and online learning to demonstrate distribution centres in the first half of 2019 and, if successful (providing online health and what a difference a small gesture like at those centres, will lead to a wider implementation plan wellbeing resources to our team) having a cup of tea with a colleague, across the business for 2020. and being there for them, can make. • Our Woolworths Financial Wellbeing program (offering 'I am here' was launched in February interest free loans of up to $2,000 2019 with over 1,000 team members for team members experiencing completing the training in the first unexpected financial stress). 24 hours. Since then, over 17,000 team members have completed the
1 www.heartfoundation.org.au/about‑us/what‑we‑do/heart‑disease‑in‑australia 22 23 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Creating IMPACT: opportunities for all Commitment 8
Sustainable Development Goal
We are proud to have achieved Gold Tier Employer LGBTI status in the Australian Workplace Equality Index (AWEI) Inclusion BIG W sponsors for Lesbian, Gay, Bisexual, Transgender and Intersex the Australian LGBTI Awards (LGBTI) inclusion for the second year running. HIGHLIGHTS 1PERFORMANCE BIG W was a proud sponsor of the Australian LGBTI Awards for the third year running. The Australian LGBTI Awards seek to highlight individuals and organisations with
an outstanding commitment 2PEOPLE to the LGBTI community. We are proud to announce that Chelsea McPhail Rosenberg was awarded the title of 2019 Diversity Champion, a well‑deserved recognition for the Welcome Here Project significant impact Chelsea
3PLANET membership has made on LGBTI inclusion at Woolworths Group. In 2019, BWS has partnered with ACON to become a registered Welcoming Place, in support of ACON’s Welcome Here Project. The Welcome Here Project supports businesses/ organisations throughout Australia to create and promote environments that are visibly welcoming
4PROSPERITY and inclusive of Lesbian, Gay, Bisexual, Transgender, Intersex and Queer/Questioning (LGBTIQ) communities. As a registered Welcoming Place, BWS stores are moving to proudly display a sticker and charter that let people Australian LGBTI Inclusion Awards Gold Tier Employer know that LGBTIQ diversity is welcomed and celebrated at BWS. Rainbow Tick Woolworths Group is proud to again be recognised with Gold • Celebrating Wear it Purple Day (raising awareness At BWS, our culture celebrates our people, who are Tier Employer status at the 2019 Australian LGBTI Inclusion of LGBTI inclusion and supporting LGBTI youth) across encouraged to be themselves and have fun. This core in New Zealand Awards for the second consecutive year. the Woolworths Group, nationwide METRICS 5SUSTAINABILITY value extends not just to our team, but also to our Our Countdown business achieved Rainbow customers and our communities. We are proud to say The Australian LGBTI Inclusion Awards, based on the findings • Again partnering with the Sydney Gay and Lesbian Mardi that teams in over 400 of our BWS stores have chosen to Tick accreditation in November 2018 for its of the AWEI, the national benchmark on LGBTI inclusion, Gras in 2019, with team members participating in their first participate in this initiative and the numbers are climbing. hard work in creating and providing a safe and recognise Australia’s top organisations for LGBTI inclusion and Sydney Gay and Lesbian Mardi Gras Parade this year inclusive workplace for its LGBTI team members celebrate leaders, individuals and networks that have made • Launching LGBTI inclusion training online to improve access and allies. Organisations that meet the Rainbow a significant impact on LGBTI inclusion within their workplaces. for all team members Tick benchmarks are committed to a quality Woolworths Group is the only retailer in Australia to have • Hosting a guest panel event to mark the Transgender Day improvement program focused on LGBTI inclusion achieved Gold Tier status. of Remembrance, to improve transgender awareness and across the areas of Policies, Team Training, Team In the past 12 months, Woolworths Group has undertaken inclusion across the Woolworths Group. Engagement and Support, External Engagement initiatives to further progress LGBTI inclusion in the workplace, “While we know we still have more work to do, we are fully and Monitoring. for example: committed to continuing to support and empower our LGBTI team • Holding educational LGBTI events and training sessions for members. It is a very exciting time to be at Woolworths – as a diverse team members and leaders team, we know we can create better experiences together, for • Hosting a diversity roundtable and networking event ourselves and for our customers, each and every day.” Rachel Mead, Woolworths Group Head of Diversity • Growing the Proud @ Woolworths Group network to 2,200+ and Inclusion. team members – a 29% increase in membership from the last financial year 22 23 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Creating IMPACT: opportunities for all Commitment 8
Sustainable Development Goal
We are proud to have achieved Gold Tier Employer LGBTI status in the Australian Workplace Equality Index (AWEI) Inclusion BIG W sponsors for Lesbian, Gay, Bisexual, Transgender and Intersex the Australian LGBTI Awards (LGBTI) inclusion for the second year running. HIGHLIGHTS 1PERFORMANCE BIG W was a proud sponsor of the Australian LGBTI Awards for the third year running. The Australian LGBTI Awards seek to highlight individuals and organisations with
an outstanding commitment 2PEOPLE to the LGBTI community. We are proud to announce that Chelsea McPhail Rosenberg was awarded the title of 2019 Diversity Champion, a well‑deserved recognition for the Welcome Here Project significant impact Chelsea
3PLANET membership has made on LGBTI inclusion at Woolworths Group. In 2019, BWS has partnered with ACON to become a registered Welcoming Place, in support of ACON’s Welcome Here Project. The Welcome Here Project supports businesses/ organisations throughout Australia to create and promote environments that are visibly welcoming
4PROSPERITY and inclusive of Lesbian, Gay, Bisexual, Transgender, Intersex and Queer/Questioning (LGBTIQ) communities. As a registered Welcoming Place, BWS stores are moving to proudly display a sticker and charter that let people Australian LGBTI Inclusion Awards Gold Tier Employer know that LGBTIQ diversity is welcomed and celebrated at BWS. Rainbow Tick Woolworths Group is proud to again be recognised with Gold • Celebrating Wear it Purple Day (raising awareness At BWS, our culture celebrates our people, who are Tier Employer status at the 2019 Australian LGBTI Inclusion of LGBTI inclusion and supporting LGBTI youth) across encouraged to be themselves and have fun. This core in New Zealand Awards for the second consecutive year. the Woolworths Group, nationwide METRICS 5SUSTAINABILITY value extends not just to our team, but also to our Our Countdown business achieved Rainbow customers and our communities. We are proud to say The Australian LGBTI Inclusion Awards, based on the findings • Again partnering with the Sydney Gay and Lesbian Mardi that teams in over 400 of our BWS stores have chosen to Tick accreditation in November 2018 for its of the AWEI, the national benchmark on LGBTI inclusion, Gras in 2019, with team members participating in their first participate in this initiative and the numbers are climbing. hard work in creating and providing a safe and recognise Australia’s top organisations for LGBTI inclusion and Sydney Gay and Lesbian Mardi Gras Parade this year inclusive workplace for its LGBTI team members celebrate leaders, individuals and networks that have made • Launching LGBTI inclusion training online to improve access and allies. Organisations that meet the Rainbow a significant impact on LGBTI inclusion within their workplaces. for all team members Tick benchmarks are committed to a quality Woolworths Group is the only retailer in Australia to have • Hosting a guest panel event to mark the Transgender Day improvement program focused on LGBTI inclusion achieved Gold Tier status. of Remembrance, to improve transgender awareness and across the areas of Policies, Team Training, Team In the past 12 months, Woolworths Group has undertaken inclusion across the Woolworths Group. Engagement and Support, External Engagement initiatives to further progress LGBTI inclusion in the workplace, “While we know we still have more work to do, we are fully and Monitoring. for example: committed to continuing to support and empower our LGBTI team • Holding educational LGBTI events and training sessions for members. It is a very exciting time to be at Woolworths – as a diverse team members and leaders team, we know we can create better experiences together, for • Hosting a diversity roundtable and networking event ourselves and for our customers, each and every day.” Rachel Mead, Woolworths Group Head of Diversity • Growing the Proud @ Woolworths Group network to 2,200+ and Inclusion. team members – a 29% increase in membership from the last financial year 24 25 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Creating IMPACT: Commitment 8
Sustainable opportunities Development Goal
LGBTI for all Inclusion
HIGHLIGHTS 1PERFORMANCE
2PEOPLE
3PLANET
4PROSPERITY
2019 Sydney Mardi Gras parade
At Woolworths Group, we constantly strive for an inclusive environment in which we celebrate the diversity of our team. We want all team members to feel valued, supported, respected and empowered – and to feel free to bring their whole selves to work.
METRICS 5SUSTAINABILITY The Mardi Gras Parade is the highlight of the Sydney Mardi Gras Festival and Woolworths Group is now a Major Partner. On Saturday 2 March 2019, with great excitement and anticipation, we joined the Mardi Gras Parade with our own float, for the very first time. Woolworths Group was proud to join other iconic brands to celebrate our belief in diversity, acceptance and equality. Our parade float celebrated the ways our customers engage with our brands in a fun and family‑friendly way. BWS, BIG W and Woolworths Supermarkets were all major contributors to bringing our float to life. Our float included 80 team members from across the business, who are all passionate advocates for inclusivity. Their joy and pride at being involved was visible on the day. The theme of our Parade float was Mardi Gras B Que – and was based on a backyard BBQ; an Aussie tradition celebrated by all kinds of families. Our float featured a rainbow family celebrating a backyard BBQ (with some added Mardi Gras sparkle!). 24 25 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Creating IMPACT: Commitment 8
Sustainable opportunities Development Goal
LGBTI for all Inclusion
HIGHLIGHTS 1PERFORMANCE
2PEOPLE
3PLANET
4PROSPERITY
2019 Sydney Mardi Gras parade
At Woolworths Group, we constantly strive for an inclusive environment in which we celebrate the diversity of our team. We want all team members to feel valued, supported, respected and empowered – and to feel free to bring their whole selves to work.
METRICS 5SUSTAINABILITY The Mardi Gras Parade is the highlight of the Sydney Mardi Gras Festival and Woolworths Group is now a Major Partner. On Saturday 2 March 2019, with great excitement and anticipation, we joined the Mardi Gras Parade with our own float, for the very first time. Woolworths Group was proud to join other iconic brands to celebrate our belief in diversity, acceptance and equality. Our parade float celebrated the ways our customers engage with our brands in a fun and family‑friendly way. BWS, BIG W and Woolworths Supermarkets were all major contributors to bringing our float to life. Our float included 80 team members from across the business, who are all passionate advocates for inclusivity. Their joy and pride at being involved was visible on the day. The theme of our Parade float was Mardi Gras B Que – and was based on a backyard BBQ; an Aussie tradition celebrated by all kinds of families. Our float featured a rainbow family celebrating a backyard BBQ (with some added Mardi Gras sparkle!). 26 Planet
For a healthy environment We recognise the impact that our business may have on the communities and environments in which we operate and take conscious steps to operate sustainably. We aspire to be a leader in sustainable business and continue to explore, trial and implement new initiatives, and partner with other stakeholders to amplify our impact and share our learnings.
Total food relief Stores with diverted to people transcritical or in need waterloop system 18.8M 18 meals
Solar power generation 2019 carbon emissions 10,686 18% MWH below 2015 levels Anna Playfair‑Hannay, Animal Welfare Manager and her dog, Boss. 26 Planet
For a healthy environment We recognise the impact that our business may have on the communities and environments in which we operate and take conscious steps to operate sustainably. We aspire to be a leader in sustainable business and continue to explore, trial and implement new initiatives, and partner with other stakeholders to amplify our impact and share our learnings.
Total food relief Stores with diverted to people transcritical or in need waterloop system 18.8M 18 meals
Solar power generation 2019 carbon emissions 10,686 18% MWH below 2015 levels Anna Playfair‑Hannay, Animal Welfare Manager and her dog, Boss. 28 29 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Moving to IMPACT: a circular economy Commitment 9
Sustainable Development Goal
Woolworths Group continues to implement initiatives Sustainable to reduce food waste, such as promoting greater organic Development Goal Countdown’s Food Rescue Program
recycling and strengthening our food rescue partnerships We continue to work towards zero food waste going to landfill in New Zealand and partner with more than 20 food rescue groups to provide hunger relief to those in need. HIGHLIGHTS 1PERFORMANCE throughout the country with the aim of achieving that goal. Our Food Rescue Program continues to be an integral part of our efforts. 100 per cent of Countdown stores work with local food rescue partners and farmers, donating surplus food with the aim of directly benefiting families or farmers in need in our local communities. In F19, this meant that approximately $5.2 million of food was donated to food rescue partners and $1.7 million of food surplus was donated to local farmers. To ensure the ongoing
2PEOPLE success of this important program, we’re also actively working to support our partners through our Countdown Food Rescue Partners Contestable Fund, which has seen more than $435,000 worth of grants over the last three years go to 15 of our partner organisations. This year, the majority of funding awarded has gone towards helping our partners expand their operations – whether Equivalent number of meals1 that’s buying a new vehicle to transport food to recipients or hiring more team members to help them do their important work. We have also continued to work alongside our food rescue Reducing food waste provided 3PLANET partners to share ideas and best practice with each other to people in need through our annual Food Rescue Summit, which is also helping As the largest food retailer in Food rescue has doubled in the drive collaboration in the sector. Another important element in reducing food waste is what happens in store, and we are working Australia, fighting food waste last year with the additional focus, on improving our in‑store waste management, and reducing our and addressing hunger relief are and has only been made possible stock loss. Countdown’s zero food waste project, funded in part by two of Woolworths’ priorities for with the support of food rescue the Ministry for the Environment’s Waste Minimisation Fund, will building and supporting healthy agencies in our local communities allow our business to identify further opportunities to reduce the
4PROSPERITY and sustainable communities. as well as our key national amount of food currently going to landfill. partners: OzHarvest, Foodbank, Food waste is a $20 billion problem OzHarvest and FareShare in Australia. These 9.6Million in Australia and it is estimated partners are critical to rescue and that 40% of all food grown and redistribution of our surplus fresh manufactured in this country food, so that instead of going to for Australian consumption is landfill a lot of this food can instead Did you know? wasted. We are doing our part be donated free of charge to people
to reduce food waste going to METRICS 5SUSTAINABILITY in our communities affected by landfill through our national Foodbank food insecurity. 2.9Million ‘Reducing Food Waste to Landfill Program’, which was rolled out to Overall our stores have continued Australian Supermarkets in July on average to reduce food waste 100% 2018. This program was designed to landfill by 8% year on year, of our stores now to give store teams the education, for the past 4 years. have a program training, resources, time and As of January 2019, 100% of equipment to better identify to keep food FareShare Supermarkets across Australia now 1.2Million and divert, surplus food away have a program to keep food out out of landfill from landfill and towards at least of landfill. one of the following beneficial streams of; food rescue for hunger relief; donations to local farmers Local for animal feed; or commercial charities organic recycling for composting. 5.1Million and others
1 The ratio of rescued food to number of meals is based on a 500g meal size, except for OzHarvest (F19 revised methodology) which uses 3 meals from 1 kg. 28 29 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Moving to IMPACT: a circular economy Commitment 9
Sustainable Development Goal
Woolworths Group continues to implement initiatives Sustainable to reduce food waste, such as promoting greater organic Development Goal Countdown’s Food Rescue Program recycling and strengthening our food rescue partnerships We continue to work towards zero food waste going to landfill in New Zealand and partner with more than 20 food rescue groups to provide hunger relief to those in need. HIGHLIGHTS 1PERFORMANCE throughout the country with the aim of achieving that goal. Our Food Rescue Program continues to be an integral part of our efforts. 100 per cent of Countdown stores work with local food rescue partners and farmers, donating surplus food with the aim of directly benefiting families or farmers in need in our local communities. In F19, this meant that approximately $5.2 million of food was donated to food rescue partners and $1.7 million of food surplus was donated to local farmers. To ensure the ongoing
2PEOPLE success of this important program, we’re also actively working to support our partners through our Countdown Food Rescue Partners Contestable Fund, which has seen more than $435,000 worth of grants over the last three years go to 15 of our partner organisations. This year, the majority of funding awarded has gone towards helping our partners expand their operations – whether Equivalent number of meals1 that’s buying a new vehicle to transport food to recipients or hiring more team members to help them do their important work. We have also continued to work alongside our food rescue Reducing food waste provided 3PLANET partners to share ideas and best practice with each other to people in need through our annual Food Rescue Summit, which is also helping As the largest food retailer in Food rescue has doubled in the drive collaboration in the sector. Another important element in reducing food waste is what happens in store, and we are working Australia, fighting food waste last year with the additional focus, on improving our in‑store waste management, and reducing our and addressing hunger relief are and has only been made possible stock loss. Countdown’s zero food waste project, funded in part by two of Woolworths’ priorities for with the support of food rescue the Ministry for the Environment’s Waste Minimisation Fund, will building and supporting healthy agencies in our local communities allow our business to identify further opportunities to reduce the
4PROSPERITY and sustainable communities. as well as our key national amount of food currently going to landfill. partners: OzHarvest, Foodbank, Food waste is a $20 billion problem OzHarvest and FareShare in Australia. These 9.6Million in Australia and it is estimated partners are critical to rescue and that 40% of all food grown and redistribution of our surplus fresh manufactured in this country food, so that instead of going to for Australian consumption is landfill a lot of this food can instead Did you know? wasted. We are doing our part be donated free of charge to people
to reduce food waste going to METRICS 5SUSTAINABILITY in our communities affected by landfill through our national Foodbank food insecurity. 2.9Million ‘Reducing Food Waste to Landfill Program’, which was rolled out to Overall our stores have continued Australian Supermarkets in July on average to reduce food waste 100% 2018. This program was designed to landfill by 8% year on year, of our stores now to give store teams the education, for the past 4 years. have a program training, resources, time and As of January 2019, 100% of equipment to better identify to keep food FareShare Supermarkets across Australia now 1.2Million and divert, surplus food away have a program to keep food out out of landfill from landfill and towards at least of landfill. one of the following beneficial streams of; food rescue for hunger relief; donations to local farmers Local for animal feed; or commercial charities organic recycling for composting. 5.1Million and others
1 The ratio of rescued food to number of meals is based on a 500g meal size, except for OzHarvest (F19 revised methodology) which uses 3 meals from 1 kg. 30 31 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Moving to IMPACT:
Commitment a circular economy 10 Single-use plastic bags Waste intensity removed from our stores (t/square metres) in the last year Sustainable 26 27 28 Development Goal 24 22 Plastic reduction 3 Billion We are continuing to work to remove or reduce plastic in New Zealand 2015 2016 2017 2018 2019 packaging across our product ranges, and provide As the consumer demand for further opportunities for our customers to contribute less plastic has increased, so too has the pressure
HIGHLIGHTS 1PERFORMANCE to the circular economy through recycling. on our business to make changes for the better. Over the last year we’ve delivered Reducing landfill waste some positive results. We’ve continued to remove plastic from our produce As part of Woolworths Group’s sustainability commitments, our Endeavour Drinks range. Since early 2018, business is making great progress towards addressing the waste that goes to landfill we’ve removed more and improving the recyclability of its Own Brand packaging at its winery and production facilities in South Australia. than 117 tonnes of plastic 2PEOPLE packaging and just over With funding support from Green Industries SA’s Solid Waste Management 70 tonnes of cardboard Improvement Incentives Program and Dorrien Estate Winery, Vinpac and our from our stores. We’ve also Angaston production facility recently undertook an audit to measure their solid waste begun rolling out misting and recycling performance. units in our stores, allowing 2025 national certain fresh produce to be Both sites had outstanding waste and recycling performance, diverting over 99% displayed without plastic of waste from landfill. These sites deal with, on average, around 40 different kinds packaging targets Sustainable packaging in drinks and packaging. To date, five of waste, including wine processing residuals, pallets, plastics, barrels and glass.
3PLANET stores have been upgraded Since this audit, these facilities have switched from single‑use to ceramic cups, begun In September 2018, Woolworths Endeavour Drinks is collaborating with APCO and industry leaders such as the this way, and a further recycling cork and are looking at innovative ways to recycle problematic waste, with the Winemakers’ Federation of Australia to identify and address sustainable packaging aligned to the packaging targets 30 stores will be completed aim of closing the gap to achieve zero waste to landfill. issues affecting the industry. Several initiatives are underway, including: by the end of 2019. set by the Australian Government and the Australian Packaging • A pilot waste audit at 22 stores in South Australia to identify improvements and how Covenant Organisation (APCO) sustainable packaging can be progressed at store level by committing that 100% of all • Identifying opportunities to reduce the quantity of plastic stretch wrap used own‑brand packaging be reusable, to distribute wine products across the supply chain and how to increase recovery
4PROSPERITY recyclable or compostable by of this material 2025. Woolworths was the first • Developing, with APCO and others, a set of guidelines for retailers, winemakers supermarket to commit to the and their suppliers on sustainable packaging opportunities for wine, supported 'Australasian Recycling Label' by awards that recognise good performance which gives customers better guidance on which components • Collaborating with others in the industry to ‘lightweight’ wine stock bottles. Reducing plastic across our stores of the packaging is recyclable.
We will continue to add the label METRICS 5SUSTAINABILITY to more products as packaging Produce our sweet potatoes and organic apples is now made is refreshed and updated. We Our customers continue to tell us that reducing plastic of recycled cardboard, rather than plastic. This is an have been working hard this year packaging across the store, particularly for fruit and important start, and we will continue to remove excess on making changes in line with vegetables, is a key concern for them. Plastic reduction plastic from our produce range over the coming year. these targets by reviewing our is a complex task given that packaging protects the current range and introducing quality and extends the shelf life of fresh produce as Bakery initiatives such as: they are transported and in turn reduces food waste, We've removed 505 tonnes of plastic packaging from another key concern for our customers. In response to • Introducing recycled content our in‑store bakery items over the last 12 months. both issues, we have been working hard to identify and packaging on our Own Brand We’ve achieved this by replacing plastic with a reclaimed address excess plastic packaging across our produce 600ml water and rapidly renewable sugarcane pulp product which range and have so far removed 313 tonnes of plastic from is certified home compostable and is also recyclable. • Adopting the ‘Australasian our fruit and vegetables in the last 12 months, and close In April 2019, we were recognised for this vital work with Recycling Label’ on many to 500 tonnes over the last two years. We have reduced a special commendation at the Australian Institute of Woolworths’ Own Brand plastic packaging across a range of our products, Packaging’s annual Australasian Packaging Innovation products including readymade including organic bananas, tomatoes, stone fruit, celery, and Design Awards. meals, pre‑packed salads kale and organic spring onions. The tray we use for and yoghurt. 30 31 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Moving to IMPACT:
Commitment a circular economy 10 Single-use plastic bags Waste intensity removed from our stores (t/square metres) in the last year Sustainable 26 27 28 Development Goal 24 22 Plastic reduction 3 Billion We are continuing to work to remove or reduce plastic in New Zealand 2015 2016 2017 2018 2019 packaging across our product ranges, and provide As the consumer demand for further opportunities for our customers to contribute less plastic has increased, so too has the pressure
HIGHLIGHTS 1PERFORMANCE to the circular economy through recycling. on our business to make changes for the better. Over the last year we’ve delivered Reducing landfill waste some positive results. We’ve continued to remove plastic from our produce As part of Woolworths Group’s sustainability commitments, our Endeavour Drinks range. Since early 2018, business is making great progress towards addressing the waste that goes to landfill we’ve removed more and improving the recyclability of its Own Brand packaging at its winery and production facilities in South Australia. than 117 tonnes of plastic 2PEOPLE packaging and just over With funding support from Green Industries SA’s Solid Waste Management 70 tonnes of cardboard Improvement Incentives Program and Dorrien Estate Winery, Vinpac and our from our stores. We’ve also Angaston production facility recently undertook an audit to measure their solid waste begun rolling out misting and recycling performance. units in our stores, allowing 2025 national certain fresh produce to be Both sites had outstanding waste and recycling performance, diverting over 99% displayed without plastic of waste from landfill. These sites deal with, on average, around 40 different kinds packaging targets Sustainable packaging in drinks and packaging. To date, five of waste, including wine processing residuals, pallets, plastics, barrels and glass.
3PLANET stores have been upgraded Since this audit, these facilities have switched from single‑use to ceramic cups, begun In September 2018, Woolworths Endeavour Drinks is collaborating with APCO and industry leaders such as the this way, and a further recycling cork and are looking at innovative ways to recycle problematic waste, with the Winemakers’ Federation of Australia to identify and address sustainable packaging aligned to the packaging targets 30 stores will be completed aim of closing the gap to achieve zero waste to landfill. issues affecting the industry. Several initiatives are underway, including: by the end of 2019. set by the Australian Government and the Australian Packaging • A pilot waste audit at 22 stores in South Australia to identify improvements and how Covenant Organisation (APCO) sustainable packaging can be progressed at store level by committing that 100% of all • Identifying opportunities to reduce the quantity of plastic stretch wrap used own‑brand packaging be reusable, to distribute wine products across the supply chain and how to increase recovery
4PROSPERITY recyclable or compostable by of this material 2025. Woolworths was the first • Developing, with APCO and others, a set of guidelines for retailers, winemakers supermarket to commit to the and their suppliers on sustainable packaging opportunities for wine, supported 'Australasian Recycling Label' by awards that recognise good performance which gives customers better guidance on which components • Collaborating with others in the industry to ‘lightweight’ wine stock bottles. Reducing plastic across our stores of the packaging is recyclable.
We will continue to add the label METRICS 5SUSTAINABILITY to more products as packaging Produce our sweet potatoes and organic apples is now made is refreshed and updated. We Our customers continue to tell us that reducing plastic of recycled cardboard, rather than plastic. This is an have been working hard this year packaging across the store, particularly for fruit and important start, and we will continue to remove excess on making changes in line with vegetables, is a key concern for them. Plastic reduction plastic from our produce range over the coming year. these targets by reviewing our is a complex task given that packaging protects the current range and introducing quality and extends the shelf life of fresh produce as Bakery initiatives such as: they are transported and in turn reduces food waste, We've removed 505 tonnes of plastic packaging from another key concern for our customers. In response to • Introducing recycled content our in‑store bakery items over the last 12 months. both issues, we have been working hard to identify and packaging on our Own Brand We’ve achieved this by replacing plastic with a reclaimed address excess plastic packaging across our produce 600ml water and rapidly renewable sugarcane pulp product which range and have so far removed 313 tonnes of plastic from is certified home compostable and is also recyclable. • Adopting the ‘Australasian our fruit and vegetables in the last 12 months, and close In April 2019, we were recognised for this vital work with Recycling Label’ on many to 500 tonnes over the last two years. We have reduced a special commendation at the Australian Institute of Woolworths’ Own Brand plastic packaging across a range of our products, Packaging’s annual Australasian Packaging Innovation products including readymade including organic bananas, tomatoes, stone fruit, celery, and Design Awards. meals, pre‑packed salads kale and organic spring onions. The tray we use for and yoghurt. 32 33 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Sourcing IMPACT: environmentally Commitment 11 Commitment 12 Palm oil sustainable Paper straws Sustainable In F19, we continued to support the production of Roundtable on Sustainable Palm Oil Development Goal (RSPO)‑certified sustainable palm oil and palm kernel oil in all our own‑brand food commodities products. We are working hard with our suppliers to increase our use of certified sustainable palm oil across our product range through an increased uptake of the RSPO supply chain certification process. Sustainable We have identified all known and potential palm oil derivatives in our own brand
Development Goal HIGHLIGHTS 1PERFORMANCE Non‑Food products (such as cleaning products). We support the production of Reducing single‑use plastics these palm‑based derivatives and working with our suppliers to use RSPO‑certified is top of mind for many of our sustainable ingredient. customers, and following the We are constantly working to source high impact We want to play our part in consumer awareness around palm oil products, and that’s removal of single‑use plastic bags commodities and key raw materials from sustainable why Woolworths is part of Tiger Trek, an educational experience at Sydney’s Taronga across the Woolworths Group. Zoo, designed to increase consumer sentiment towards Certified Sustainable Palm supply chains and raise awareness of sustainably‑sourced The Group ceased selling plastic Oil (CSPO). Woolworths Own Brand products are featured in Tiger Trek to highlight straws in our stores in December our strong commitment to using sustainable palm oil and palm kernel oil, and to build products with our customers, partners and suppliers. 2PEOPLE 2018. This removed around 134 public support to transform the industry. million straws from circulation per year.
OpenSC chefs and restaurants around Sustainably sourced own brand commodities:
3PLANET Australia supporting the Marine OpenSC is a new blockchain‑enabled Stewardship Council’s (MSC) food tracking platform developed in mission to ensure sustainable partnership between WWF‑Australia seafood for future generations. Sustainable seafood and BCG Digital Ventures. For the first time, the event was Sustainable beef PACKAGED OpenSC can track individual jointly coordinated by the MSC and CHOCOLATE TEA COFFEE SEAFOOD SUGAR Seafood is a complex commodity products from origin to consumer the Aquaculture Stewardship Council We believe our role is not just to source sustainably due to the with the aim of helping businesses 100% 100% 90% 42% 90% 4PROSPERITY (ASC), which together raised awareness to avoid negative impacts from large range of globally sourced wild and consumers avoid illegal, regarding choosing responsibly farmed deforestation, but to promote and farm‑raised species that we environmentally‑detrimental seafood (marked with the green responsible production that offer. Working with fishermen and or unethical products, while ASC label) and sustainably‑caught benefits people, communities farmers around the world can create also improving supply chain wild seafood (marked with and the planet. An effective challenges for us in identifying and accountability and transparency. the blue MSC label). approach to address tracking all of our sources, especially OpenSC was developed through deforestation will require strong when considering the varying size and Pulp, paper and timber
a series of successful pilots with collaboration. As such, we will METRICS 5SUSTAINABILITY reporting capabilities of our suppliers. Traceability a number of WWF’s corporate continue to actively engage Good progress has been made on partners, including Woolworths. In 2019, Woolworths became with a variety of stakeholders We are progressing well towards our target that all products containing paper, pulp packaged seafood, and we continue to a signatory to the Australian to identify and protect high and timber are sourced from independently certified sources or post‑consumer build our understanding of the unique “Woolworths has been working Seafood Traceability Statement, conservation value areas within recycled content. As of June 2019, we are proud to report that 89% of our Own Brand sourcing profile of fresh seafood. with OpenSC to pilot this innovative an industry‑led business commitment our supply chains and work products sold in our Australian supermarkets, and 91% of our Own Brand products technology as part of our ongoing towards best practice in traceability with suppliers, governments, in Countdown supermarkets already meet our commitment. commitment to delivering high‑quality, Our partnership with the across the seafood supply chain. producers and other corporate In Woolworths Supermarkets, we achieved the following: fresh and sustainable products to our World Wildlife Fund We have also joined the Global and NGO partners to achieve customers.” – Alex Holt, General • Own Brand toilet paper, tissues and paper towels all come from Forest Stewardship Dialogue on Seafood Traceability, this. Woolworths is a signatory Council (FSC)‑certified or recycled sources Woolworths and the World Manager of Quality, Health and an international business‑to‑business to the Australian Sustainability Wildlife Fund (WWF)‑Australia Sustainability at Woolworths Group. • All Own Brand cards, wrapping paper, gift bags and tags are FSC‑certified platform seeking to advance a unified Beef Framework which tracks established a partnership in 2019, • All paper and timber products in our Armada and M.I.N.T. ranges are FSC‑certified. framework for global seafood performance annually over to provide us with technical advice • As seen in our M.I.N.T. and Armada ranges, we are also embracing bamboo Sustainable Seafood Week traceability practices. a series of indicators, including on the sustainability of our seafood as a sustainable alternative to timber‑based materials. It is a rapidly renewable environmental stewardship – one supply chain, as well as offering Woolworths participated resource, with most species maturing quickly in three to five years. Bamboo can of which is ‘the balance of tree strategic recommendations to in Sustainable Seafood Week be grown using less pesticides, fertilisers or irrigation, does not require replanting and grass cover’. transition our entire seafood range in March 2019 – a celebration and has a lower environmental footprint than timber‑based products. to more sustainable sources. of the certified fisheries, retailers, 32 33 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Sourcing IMPACT: environmentally Commitment 11 Commitment 12 Palm oil sustainable Paper straws Sustainable In F19, we continued to support the production of Roundtable on Sustainable Palm Oil Development Goal (RSPO)‑certified sustainable palm oil and palm kernel oil in all our own‑brand food commodities products. We are working hard with our suppliers to increase our use of certified sustainable palm oil across our product range through an increased uptake of the RSPO supply chain certification process. Sustainable We have identified all known and potential palm oil derivatives in our own brand
Development Goal HIGHLIGHTS 1PERFORMANCE Non‑Food products (such as cleaning products). We support the production of Reducing single‑use plastics these palm‑based derivatives and working with our suppliers to use RSPO‑certified is top of mind for many of our sustainable ingredient. customers, and following the We are constantly working to source high impact We want to play our part in consumer awareness around palm oil products, and that’s removal of single‑use plastic bags commodities and key raw materials from sustainable why Woolworths is part of Tiger Trek, an educational experience at Sydney’s Taronga across the Woolworths Group. Zoo, designed to increase consumer sentiment towards Certified Sustainable Palm supply chains and raise awareness of sustainably‑sourced The Group ceased selling plastic Oil (CSPO). Woolworths Own Brand products are featured in Tiger Trek to highlight straws in our stores in December our strong commitment to using sustainable palm oil and palm kernel oil, and to build products with our customers, partners and suppliers. 2PEOPLE 2018. This removed around 134 public support to transform the industry. million straws from circulation per year.
OpenSC chefs and restaurants around Sustainably sourced own brand commodities:
3PLANET Australia supporting the Marine OpenSC is a new blockchain‑enabled Stewardship Council’s (MSC) food tracking platform developed in mission to ensure sustainable partnership between WWF‑Australia seafood for future generations. Sustainable seafood and BCG Digital Ventures. For the first time, the event was Sustainable beef PACKAGED OpenSC can track individual jointly coordinated by the MSC and CHOCOLATE TEA COFFEE SEAFOOD SUGAR Seafood is a complex commodity products from origin to consumer the Aquaculture Stewardship Council We believe our role is not just to source sustainably due to the with the aim of helping businesses 100% 100% 90% 42% 90% 4PROSPERITY (ASC), which together raised awareness to avoid negative impacts from large range of globally sourced wild and consumers avoid illegal, regarding choosing responsibly farmed deforestation, but to promote and farm‑raised species that we environmentally‑detrimental seafood (marked with the green responsible production that offer. Working with fishermen and or unethical products, while ASC label) and sustainably‑caught benefits people, communities farmers around the world can create also improving supply chain wild seafood (marked with and the planet. An effective challenges for us in identifying and accountability and transparency. the blue MSC label). approach to address tracking all of our sources, especially OpenSC was developed through deforestation will require strong when considering the varying size and Pulp, paper and timber
a series of successful pilots with collaboration. As such, we will METRICS 5SUSTAINABILITY reporting capabilities of our suppliers. Traceability a number of WWF’s corporate continue to actively engage Good progress has been made on partners, including Woolworths. In 2019, Woolworths became with a variety of stakeholders We are progressing well towards our target that all products containing paper, pulp packaged seafood, and we continue to a signatory to the Australian to identify and protect high and timber are sourced from independently certified sources or post‑consumer build our understanding of the unique “Woolworths has been working Seafood Traceability Statement, conservation value areas within recycled content. As of June 2019, we are proud to report that 89% of our Own Brand sourcing profile of fresh seafood. with OpenSC to pilot this innovative an industry‑led business commitment our supply chains and work products sold in our Australian supermarkets, and 91% of our Own Brand products technology as part of our ongoing towards best practice in traceability with suppliers, governments, in Countdown supermarkets already meet our commitment. commitment to delivering high‑quality, Our partnership with the across the seafood supply chain. producers and other corporate In Woolworths Supermarkets, we achieved the following: fresh and sustainable products to our World Wildlife Fund We have also joined the Global and NGO partners to achieve customers.” – Alex Holt, General • Own Brand toilet paper, tissues and paper towels all come from Forest Stewardship Dialogue on Seafood Traceability, this. Woolworths is a signatory Council (FSC)‑certified or recycled sources Woolworths and the World Manager of Quality, Health and an international business‑to‑business to the Australian Sustainability Wildlife Fund (WWF)‑Australia Sustainability at Woolworths Group. • All Own Brand cards, wrapping paper, gift bags and tags are FSC‑certified platform seeking to advance a unified Beef Framework which tracks established a partnership in 2019, • All paper and timber products in our Armada and M.I.N.T. ranges are FSC‑certified. framework for global seafood performance annually over to provide us with technical advice • As seen in our M.I.N.T. and Armada ranges, we are also embracing bamboo Sustainable Seafood Week traceability practices. a series of indicators, including on the sustainability of our seafood as a sustainable alternative to timber‑based materials. It is a rapidly renewable environmental stewardship – one supply chain, as well as offering Woolworths participated resource, with most species maturing quickly in three to five years. Bamboo can of which is ‘the balance of tree strategic recommendations to in Sustainable Seafood Week be grown using less pesticides, fertilisers or irrigation, does not require replanting and grass cover’. transition our entire seafood range in March 2019 – a celebration and has a lower environmental footprint than timber‑based products. to more sustainable sources. of the certified fisheries, retailers, 34 35 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Animal welfare
"The livestock team works closely with our farmers and suppliers to ensure the highest quality protein Animal welfare is important to us and to our customers. product is delivered every time. Spending time on We are committed to working with our farmers and farms and building a strong rapport and relationship is a vital aspect of our business. This ensures partners to focus on good animal welfare management a sustainable and consistent product is delivered. in our supply chain. Proudly Many of our farmers and suppliers have had Committed to working a long‑standing relationship with Woolworths for cage‑free responsibly with animals generations, and they are focused on delivering a consistent and quality product each and every
HIGHLIGHTS 1PERFORMANCE Since 2015, all We are committed to working responsibly with the animals in our time with a strong focus on animal welfare." Woolworths branded care, and continue to drive and influence best practice within our MATT SPRY, eggs are cage‑free; laid supply chain. That is why we have a dedicated animal welfare by hens free from close manager and livestock team. SENIOR LIVESTOCK MANAGER – BEEF confinement. We are continuing our work Our Animal Welfare Manager, Anna Playfair‑Hannay, is towards using only responsible for the day to day management of animal welfare "Animal welfare is integral to any business that within our supply chain. She works together with our internal
Embedding the cage‑free eggs as an works with animals and is especially important 2PEOPLE teams, suppliers and farmers to deliver and embed of our animal ingredient in Own Brand Five Freedoms welfare commitments and standards. to Woolworths. Good products start with good RSPCA Chicken products by 2025. ingredients so it is fundamental for Woolworths in our practices Our Livestock team are based regionally and spend most of their to ensure animal welfare is never compromised We are also committed time on farms with our suppliers. Combined, they have over 250 We are proud to report that all fresh Own to be cage free by years of experience and are responsible for buying cattle, sheep and that we work together to continually improve Brand chicken sold in Woolworths is now We continue to be the leading 2025 in relation to all and pigs directly from farmers we know and trust to bring our our standards." 100% RSPCA‑approved. Australian retailer on animal supplier‑branded eggs customers the best quality meat. welfare, and constantly strive We are working hard with our suppliers and in the year to date ANNA PLAYFAIR‑HANNAY,
3PLANET to work responsibly to progress to transition all of our ingredient chicken we have seen a 6.7% ANIMAL WELFARE MANAGER and influence best practice in Own Brand products to RSPCA‑approved decline in caged egg sales. in the responsible sourcing or equivalent standard by December 2020. of dairy, beef, lamb, poultry, Currently, we are at 95% compliance We are proud to report (up from 70% last year). that we have been eggs, pork and aquaculture awarded the Compassion products. Our approach is based Free range chicken In World Farming (CIWF) on, and endorses, the following All free range chicken sold in our stores is Good Egg Award in 2019 ‘Five Freedoms’, proposed by the certified to the standards set by Free Range for our commitment to 4PROSPERITY Farm Animal Welfare Committee: Egg & Poultry Australia Ltd for production and quality. ending the sale of caged eggs and caged egg Freedom from hunger products in our stores. 1 and thirst
Freedom from
2 discomfort Woolworths and the METRICS 5SUSTAINABILITY Business Benchmark for Freedom from pain, 3 injury or disease Animal Welfare (BBFAW)
The BBFAW is the leading global measure Freedom to express of farm animal welfare management, normal behaviour policy commitment, performance and 4 disclosure for food companies. To demonstrate our commitment to Freedom from fear continually improving animal welfare 5 and distress in our supply chain, we work closely with CIWF to maintain and improve our internationally‑recognised BBFAW We source all fresh beef, score. This year, Woolworths was again lamb, pork, poultry, eggs rated Tier 3, the highest rated retailer for Sam Burton Taylor, Beef Farmer; and dairy products from animal welfare in Australia. Anna Playfair‑Hannay, Animal Welfare Manager; Australia, to support our local Matt Spry, Senior Livestock Manager – Beef. communities and networks. 34 35 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Animal welfare
"The livestock team works closely with our farmers and suppliers to ensure the highest quality protein Animal welfare is important to us and to our customers. product is delivered every time. Spending time on We are committed to working with our farmers and farms and building a strong rapport and relationship is a vital aspect of our business. This ensures partners to focus on good animal welfare management a sustainable and consistent product is delivered. in our supply chain. Proudly Many of our farmers and suppliers have had Committed to working a long‑standing relationship with Woolworths for cage‑free responsibly with animals generations, and they are focused on delivering a consistent and quality product each and every
HIGHLIGHTS 1PERFORMANCE Since 2015, all We are committed to working responsibly with the animals in our time with a strong focus on animal welfare." Woolworths branded care, and continue to drive and influence best practice within our MATT SPRY, eggs are cage‑free; laid supply chain. That is why we have a dedicated animal welfare by hens free from close manager and livestock team. SENIOR LIVESTOCK MANAGER – BEEF confinement. We are continuing our work Our Animal Welfare Manager, Anna Playfair‑Hannay, is towards using only responsible for the day to day management of animal welfare "Animal welfare is integral to any business that within our supply chain. She works together with our internal
Embedding the cage‑free eggs as an works with animals and is especially important 2PEOPLE teams, suppliers and farmers to deliver and embed of our animal ingredient in Own Brand Five Freedoms welfare commitments and standards. to Woolworths. Good products start with good RSPCA Chicken products by 2025. ingredients so it is fundamental for Woolworths in our practices Our Livestock team are based regionally and spend most of their to ensure animal welfare is never compromised We are also committed time on farms with our suppliers. Combined, they have over 250 We are proud to report that all fresh Own to be cage free by years of experience and are responsible for buying cattle, sheep and that we work together to continually improve Brand chicken sold in Woolworths is now We continue to be the leading 2025 in relation to all and pigs directly from farmers we know and trust to bring our our standards." 100% RSPCA‑approved. Australian retailer on animal supplier‑branded eggs customers the best quality meat. welfare, and constantly strive We are working hard with our suppliers and in the year to date ANNA PLAYFAIR‑HANNAY,
3PLANET to work responsibly to progress to transition all of our ingredient chicken we have seen a 6.7% ANIMAL WELFARE MANAGER and influence best practice in Own Brand products to RSPCA‑approved decline in caged egg sales. in the responsible sourcing or equivalent standard by December 2020. of dairy, beef, lamb, poultry, Currently, we are at 95% compliance We are proud to report (up from 70% last year). that we have been eggs, pork and aquaculture awarded the Compassion products. Our approach is based Free range chicken In World Farming (CIWF) on, and endorses, the following All free range chicken sold in our stores is Good Egg Award in 2019 ‘Five Freedoms’, proposed by the certified to the standards set by Free Range for our commitment to 4PROSPERITY Farm Animal Welfare Committee: Egg & Poultry Australia Ltd for production and quality. ending the sale of caged eggs and caged egg Freedom from hunger products in our stores. 1 and thirst
Freedom from
2 discomfort Woolworths and the METRICS 5SUSTAINABILITY Business Benchmark for Freedom from pain, 3 injury or disease Animal Welfare (BBFAW)
The BBFAW is the leading global measure Freedom to express of farm animal welfare management, normal behaviour policy commitment, performance and 4 disclosure for food companies. To demonstrate our commitment to Freedom from fear continually improving animal welfare 5 and distress in our supply chain, we work closely with CIWF to maintain and improve our internationally‑recognised BBFAW We source all fresh beef, score. This year, Woolworths was again lamb, pork, poultry, eggs rated Tier 3, the highest rated retailer for Sam Burton Taylor, Beef Farmer; and dairy products from animal welfare in Australia. Anna Playfair‑Hannay, Animal Welfare Manager; Australia, to support our local Matt Spry, Senior Livestock Manager – Beef. communities and networks. 36 37 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Responding to IMPACT:
Commitment 13 climate change Updating our emissions Sustainable Climate change actual or potential climate‑related reduction target to Development Goal impacts to the Company and o governance making recommendations to the a 1.5 C trajectory Board and its relevant committees, The Intergovernmental Panel on We recognise the effects of climate change to our We are striving to continuously as appropriate, regarding its Climate Change’s (IPCC) 2018 Special improve our approach to climate findings. As part of this process, this customers, our communities, our business and our Report on global warming of 1.5°C change governance, to help embed year we conducted an assessment outlined that global warming is likely planet and remain committed to contributing to climate it within our operations through to determine the climate‑related risks and opportunities we face; to reach 1.5°C between 2030 and
improved procedures and Board HIGHLIGHTS 1PERFORMANCE change mitigation. We have revised our direct emissions 2050. The report also highlighted that oversight that strengthens our utilising the recommendations of climate‑related risks for natural and target to 60% below 2015 levels. accountability. We continue to the Task Force on Climate‑Related human systems are significant even define roles, responsibilities and Financial Disclosures (TCFD). at 1.5°C. We unequivocally endorse procedures at every level of our Heads of Business Units and the findings of the IPCC and recognise business from buying teams Business Areas are responsible for its call to action on climate change to the Board. identifying, assessing, responding, from all sectors of society. Woolworths Group considers managing and reporting upon As a food retailer, Woolworths has
2PEOPLE climate change to be a critical, climate risks within their business an extensive agricultural supply chain, Australia’s climate is characterised by Climate change is a systematic risk Climate change strategy board‑level strategic issue. The units/area and implementing and the agriculture sector is subject variability and extremes. CSIRO’s State that presents risks and opportunities Board Sustainability Committee appropriate risk treatment where to climate‑related risks arguably of the Climate 2018 report outlines throughout our portfolio. We are Climate change is part of our broader (SusCo) oversees our Group‑level risks exceed risk appetite. The more than any other part of the that Australia can expect to experience transforming our business, and sustainability strategy which is response to climate change risks Woolworths Facilities Management economy. Assessing climate risk in the further increases in temperature, with sustainable success in a carbon described on pages 4 to 5 of this report. and opportunities. SusCo comprises team is responsible for the energy agriculture sector requires strategic more extremely hot days, an increase constrained future is one of many We are focused on improving the three directors and an independent efficiency and greenhouse gas long term planning and management in fire risk, high‑intensity storms, and drivers for this. emissions of our own operations,
emissions intensity of our operations, Chair, and reports directly to the strategies focused on the medium to 3PLANET intense heavy rainfall. to contribute to climate change Board. Climate change forms part of and manage our board‑endorsed long term, and it is because of this that our sustainability strategy, progress energy strategy targeting we are committing to a science‑based Woolworths Group is acutely aware Our position on mitigation as well as reducing our on which is reported to SusCo on supply, demand and innovation emission reduction target for 2030. that the way food is produced is business costs. a quarterly basis. As such, SusCo opportunities to reduce our impacting our environment. Agriculture climate change With warming already surpassing 1°C has responsibility for reviewing carbon emissions. is responsible for 75% of deforestation above pre‑industrial levels, we have worldwide, and is the largest We accept the Intergovernmental engaged management at the very Panel on Climate Change’s assessment highest levels on the practical steps contributor of non‑CO2 greenhouse
Task Force on 4PROSPERITY gas emissions. While there may be of climate change science and have involved in becoming a low carbon enough food for everyone on the planet identified climate change as a material Climate‑related business. Constantly improving environmental performance has today, this may not be the case in the sustainability issue relevant to our change is identified, assessed and Financial Disclosures Risk identification become a business‑as‑usual activity future. Recently published scientific businesses (see materiality assessment, monitored in line with the Group Risk for Woolworths. This has driven work suggests that climate change may page 86). We understand the process Management Policy. Woolworths Group supports cost savings and delivered very reduce crop yields by 2% per decade responsibility we carry in mitigating climate change and we are supportive of the recommendations of the Strong risk governance provides real improvements in operational over the next 100 years and the poorest Woolworths Group identifies Australia’s commitments under the Paris Task Force on Climate‑related for formal and informal oversight efficiency, giving confidence
regions of the world are expected climate‑related risks and opportunities METRICS 5SUSTAINABILITY Agreement to limit global warming to Financial Disclosures (TCFD) of climate risk from both top down that bold sustainability targets to be the worst hit. as part of our Group risk management 1.5°C–2°C above pre‑industrial levels. which has developed voluntary, (at an enterprise level of material can unlock innovation and new process in line with our Enterprise Risk risks) and bottom up perspectives. We acknowledge that the world consistent climate‑related commercial opportunities. Our business may be impacted financial disclosures for Management (ERM) framework. The It improves decision making by is undergoing climate change, It is because of this that we are by the long term effects of climate companies, and is committed ERM framework comprehensively sets considering both the consequences and global food systems must be committing to an updated emissions change, including: to providing stakeholders with out the requirement for consistent and the rewards associated with risk transformed. We have a responsibility reduction target that is in line with the information in relation to how identification, assessment, escalation, taking and risk management. to act to reduce our own emissions • Increased severity or regularity of level of carbon reduction required to we are managing climate management and monitoring of risks as a business, but also understand extreme weather events which may The Board Audit, Risk Management limit global warming to 1.5oC above change risks. We recognise we across the Company through the major our role to help influence this future result in business disruptions, changing risk categories: and Compliance Committee (ARMCC) pre‑industrial levels. supply conditions, safety risks for are on a journey to enhance our evolution of our industry. is the primary Board committee Using the Sectoral Decarbonisation management and disclosure • Strategic risk our team members and customers, that has oversight of Enterprise Risk Method, we investigated the 2oC and As we progressively adopt the of this critical issue and will and damage to our physical assets and • Operational risk Management (ERM) framework and 1.5oC warming trajectories and modelled recommendations of the G20 work to progressively improve transport infrastructure the Group Risk Register. Governance what it would take to achieve these. Financial Stability Board’s Taskforce our disclosures against the • Financial risk is supported by the Woolworths With a sector trajectory established on Climate‑related Financial Disclosure • Changes to global policy and TCFD recommendations, • Compliance risk. Executive Committee and relevant from the Science Based Target (SBT), (TCFD), we continue to grow our government regulations aiming to be completely aligned As a material business risk included committees and forums across the we traced back to 2030 to what our understanding of the key climate risks by 2020. • Changes to customer needs, in our Group Risk Register (see Group. Specific oversight of climate emissions target would need to be. The for our business. preferences and behaviours. Annual Report page 31), climate risk is managed by SusCo. analysis found that Woolworths’ direct 36 37 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Responding to IMPACT:
Commitment 13 climate change Updating our emissions Sustainable Climate change actual or potential climate‑related reduction target to Development Goal impacts to the Company and o governance making recommendations to the a 1.5 C trajectory Board and its relevant committees, The Intergovernmental Panel on We recognise the effects of climate change to our We are striving to continuously as appropriate, regarding its Climate Change’s (IPCC) 2018 Special improve our approach to climate findings. As part of this process, this customers, our communities, our business and our Report on global warming of 1.5°C change governance, to help embed year we conducted an assessment outlined that global warming is likely planet and remain committed to contributing to climate it within our operations through to determine the climate‑related risks and opportunities we face; to reach 1.5°C between 2030 and
improved procedures and Board HIGHLIGHTS 1PERFORMANCE change mitigation. We have revised our direct emissions 2050. The report also highlighted that oversight that strengthens our utilising the recommendations of climate‑related risks for natural and target to 60% below 2015 levels. accountability. We continue to the Task Force on Climate‑Related human systems are significant even define roles, responsibilities and Financial Disclosures (TCFD). at 1.5°C. We unequivocally endorse procedures at every level of our Heads of Business Units and the findings of the IPCC and recognise business from buying teams Business Areas are responsible for its call to action on climate change to the Board. identifying, assessing, responding, from all sectors of society. Woolworths Group considers managing and reporting upon As a food retailer, Woolworths has
2PEOPLE climate change to be a critical, climate risks within their business an extensive agricultural supply chain, Australia’s climate is characterised by Climate change is a systematic risk Climate change strategy board‑level strategic issue. The units/area and implementing and the agriculture sector is subject variability and extremes. CSIRO’s State that presents risks and opportunities Board Sustainability Committee appropriate risk treatment where to climate‑related risks arguably of the Climate 2018 report outlines throughout our portfolio. We are Climate change is part of our broader (SusCo) oversees our Group‑level risks exceed risk appetite. The more than any other part of the that Australia can expect to experience transforming our business, and sustainability strategy which is response to climate change risks Woolworths Facilities Management economy. Assessing climate risk in the further increases in temperature, with sustainable success in a carbon described on pages 4 to 5 of this report. and opportunities. SusCo comprises team is responsible for the energy agriculture sector requires strategic more extremely hot days, an increase constrained future is one of many We are focused on improving the three directors and an independent efficiency and greenhouse gas long term planning and management in fire risk, high‑intensity storms, and drivers for this. emissions of our own operations, emissions intensity of our operations, Chair, and reports directly to the strategies focused on the medium to 3PLANET intense heavy rainfall. to contribute to climate change Board. Climate change forms part of and manage our board‑endorsed long term, and it is because of this that our sustainability strategy, progress energy strategy targeting we are committing to a science‑based Woolworths Group is acutely aware Our position on mitigation as well as reducing our on which is reported to SusCo on supply, demand and innovation emission reduction target for 2030. that the way food is produced is business costs. a quarterly basis. As such, SusCo opportunities to reduce our impacting our environment. Agriculture climate change With warming already surpassing 1°C has responsibility for reviewing carbon emissions. is responsible for 75% of deforestation above pre‑industrial levels, we have worldwide, and is the largest We accept the Intergovernmental engaged management at the very Panel on Climate Change’s assessment highest levels on the practical steps contributor of non‑CO2 greenhouse
Task Force on 4PROSPERITY gas emissions. While there may be of climate change science and have involved in becoming a low carbon enough food for everyone on the planet identified climate change as a material Climate‑related business. Constantly improving environmental performance has today, this may not be the case in the sustainability issue relevant to our change is identified, assessed and Financial Disclosures Risk identification become a business‑as‑usual activity future. Recently published scientific businesses (see materiality assessment, monitored in line with the Group Risk for Woolworths. This has driven work suggests that climate change may page 86). We understand the process Management Policy. Woolworths Group supports cost savings and delivered very reduce crop yields by 2% per decade responsibility we carry in mitigating climate change and we are supportive of the recommendations of the Strong risk governance provides real improvements in operational over the next 100 years and the poorest Woolworths Group identifies Australia’s commitments under the Paris Task Force on Climate‑related for formal and informal oversight efficiency, giving confidence regions of the world are expected climate‑related risks and opportunities METRICS 5SUSTAINABILITY Agreement to limit global warming to Financial Disclosures (TCFD) of climate risk from both top down that bold sustainability targets to be the worst hit. as part of our Group risk management 1.5°C–2°C above pre‑industrial levels. which has developed voluntary, (at an enterprise level of material can unlock innovation and new process in line with our Enterprise Risk risks) and bottom up perspectives. We acknowledge that the world consistent climate‑related commercial opportunities. Our business may be impacted financial disclosures for Management (ERM) framework. The It improves decision making by is undergoing climate change, It is because of this that we are by the long term effects of climate companies, and is committed ERM framework comprehensively sets considering both the consequences and global food systems must be committing to an updated emissions change, including: to providing stakeholders with out the requirement for consistent and the rewards associated with risk transformed. We have a responsibility reduction target that is in line with the information in relation to how identification, assessment, escalation, taking and risk management. to act to reduce our own emissions • Increased severity or regularity of level of carbon reduction required to we are managing climate management and monitoring of risks as a business, but also understand extreme weather events which may The Board Audit, Risk Management limit global warming to 1.5oC above change risks. We recognise we across the Company through the major our role to help influence this future result in business disruptions, changing risk categories: and Compliance Committee (ARMCC) pre‑industrial levels. supply conditions, safety risks for are on a journey to enhance our evolution of our industry. is the primary Board committee Using the Sectoral Decarbonisation management and disclosure • Strategic risk our team members and customers, that has oversight of Enterprise Risk Method, we investigated the 2oC and As we progressively adopt the of this critical issue and will and damage to our physical assets and • Operational risk Management (ERM) framework and 1.5oC warming trajectories and modelled recommendations of the G20 work to progressively improve transport infrastructure the Group Risk Register. Governance what it would take to achieve these. Financial Stability Board’s Taskforce our disclosures against the • Financial risk is supported by the Woolworths With a sector trajectory established on Climate‑related Financial Disclosure • Changes to global policy and TCFD recommendations, • Compliance risk. Executive Committee and relevant from the Science Based Target (SBT), (TCFD), we continue to grow our government regulations aiming to be completely aligned As a material business risk included committees and forums across the we traced back to 2030 to what our understanding of the key climate risks by 2020. • Changes to customer needs, in our Group Risk Register (see Group. Specific oversight of climate emissions target would need to be. The for our business. preferences and behaviours. Annual Report page 31), climate risk is managed by SusCo. analysis found that Woolworths’ direct 38 39 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
emissions need to be 60% less than management. We are also conscious of strategies and continually improving 2015 emissions levels by 2030, which the role we play to show leadership and the energy efficiency of our business in becomes our new target. help to raise the ambitions of others. order to meet this ambitious goal. With Identifying the climate risks and opportunity Committing to a science‑based target Through our continued investment the increasing speed of technological helps Woolworths improve our climate in abatement measures such as onsite improvements in energy efficiency and During the year, we undertook risk assessment workshops attitudes, met with increasing public concern about resilience. Taking ambitious action solar, and the phase‑down of synthetic renewable energy production, we believe with key stakeholders across the Group to assess the climate change, ethical sourcing and health will likely helps Woolworths stay ahead of refrigerant use, we will achieve there will be new and exciting carbon potential physical and transitional risks that may arise affect both customer preferences and stakeholder future policies and regulations to limit significant emissions reduction in our reduction opportunities in the future that under Australia’s changing climate, their impacts and their expectations of Woolworths Group’s role as a large greenhouse gas emissions, ensure we business. However, we are working we cannot accurately forecast today. opportunities for Woolworths’ operations. listed company. o comply with Australian Corporations on our pathway to achieve the 1.5 C We are working with the Science Based Given the breadth of the impacts of climate change and our law to the highest standard and the target. We are committed to actively Target initiative to have our target • Suppliers: Woolworths has a large and complex supply expansive supply chain, the climate risk identification and chain network across Australia and internationally. growing requirements on governance scanning emerging technologies, independently assessed and approved and evaluation workshops were undertaken in two sessions: and disclosure in relation to climate risk explore renewable energy sourcing will report once this process is complete. Physical climate‑related events such as droughts, • Operational risks (retail stores, logistics, cyclones and flooding, along with climate‑related distribution centres) regulatory interventions, can directly affect the quality
HIGHLIGHTS 1PERFORMANCE • Upstream and downstream risks (suppliers and quantity of fresh produce and compound business Risks were identified in the following themes, and the outcomes are discussed in the and customers). disruptions. Climate risks following sections. Potential financial impacts have not been modelled, however indicative An overview of the potential climate risks on these areas of • Operations: The transport, distribution and storage financial impacts were determined using our Enterprise Risk Management framework. and opportunities our business is as follows: infrastructure for our businesses are expected to grow, • Customers: Woolworths Group’s corporate trust and as customer demand continues to increase for more brand association could be impacted by climate change, convenient delivery solutions. Greater centralisation of Climate change risk themes if our ability to meet customer demand for sustainable, infrastructure assets (such as large distribution centres)
2PEOPLE low‑price, high‑quality products is compromised. could potentially concentrate our exposure to the Moreover, the definitive momentum towards sustainable physical impacts of climate change.
PHYSICAL MARKET TECHNOLOGICAL REPUTATION POLICY
CLIMATE ISSUE POTENTIAL RISK MITIGATION AND OPPORTUNITIES Potential disruption and relocation of commodity supply chains
3PLANET Policy Change in policies which apply a carbon We are looking into conducting scenario analysis According to the latest IPCC report, Australia will observe: • Global and local sea level rise (further sea level rise and price will impact our energy, fuel and raw to establish the potential impact of a carbon ocean acidification) material costs and operating costs for price on our direct operating costs, and integrate • Changes in temperature (further increases in sea and air refrigeration systems. these costs into our business planning and temperatures, more hot days and marine heatwaves and • Extreme weather events (cyclones, storm surges, bushfires). decision making. fewer cool extremes) This is a new paradigm for Australia’s agricultural sector, and The delayed adoption of new technologies in We will investigate new initiatives for optimising • Changes in precipitation (decrease in rainfall across it could have widespread supply‑chain implications for our Technological our facilities will reduce Woolworths Group's efficiencies such as innovative renewable energy Southern Australia with more time in drought, but an fresh food and drinks businesses. Acute shocks to supply
4PROSPERITY competitiveness. installation, batteries and renewable energy increase in intense heavy rainfall throughout Australia) will increase price volatility in the food industry. We have procurement approaches. Our science‑based identified some potential risks in the table below: target will bring particular focus to this work.
Consumer and community expectation is Woolworths Group will continue to actively engage that the Woolworths Group, being an iconic with our stakeholders and improve our disclosure ACUTE RISKS CHRONIC RISKS brand and ASX10 company, will lead in on climate‑related risk management. We will work Reputation Risk mitigating and adapting to climate change. to ensure that our existing and future commitment Droughts affects fresh produce, and lead to price shocks for Suppliers’ ability to adapt to climate change may have long term
METRICS 5SUSTAINABILITY As more extreme weather events occur in for climate action is effectively communicated. customers. Vegetables, fruit and honey have historically been effects on our supply chain and logistics. This includes cold‑chain relation to climate change, if Woolworths vulnerable to price spikes during Australian droughts. management issues and current distribution centres and logistics Group fails to act and communicate climate not being in locations that are optimal for sourcing produce action, there is a risk in being perceived to in the future. be laggards and ‘climate change culprits’, resulting in brand/reputation damage. Cyclones and storm surges can affect produce that is grown Diversified sourcing will provide some insulation from climate in concentrated locations in Australia, such as bananas. risk for products where more alternative growing regions Our operations are susceptible to extreme We will assess the use of climate modelling Extreme weather exist (for example, where berry farms can shift further south). weather events such as flooding and to assess the risks to physical assets and help impacting our: However, risks are heightened for products that have limited electricity blackouts. This can lead to us plan for extreme events. options for relocation (such as wine grapes) which could deeply • Facilities increased product damage and stock affect availability of produce and price to customers. • Stores, distribution, write‑offs. There is also potential wellbeing logistics operations risks for our teams as, for example, the • Teams. number of extreme heat days increase. Heatwaves may affect the quality of produce from farm to store, Higher priced goods may lead to substitution/reduction increasing damage and write‑offs should the cold‑chain be in demand. compromised along the way, especially for delicate fruits such as berries, mangos and avocados. 38 39 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
emissions need to be 60% less than management. We are also conscious of strategies and continually improving 2015 emissions levels by 2030, which the role we play to show leadership and the energy efficiency of our business in becomes our new target. help to raise the ambitions of others. order to meet this ambitious goal. With Identifying the climate risks and opportunity Committing to a science‑based target Through our continued investment the increasing speed of technological helps Woolworths improve our climate in abatement measures such as onsite improvements in energy efficiency and During the year, we undertook risk assessment workshops attitudes, met with increasing public concern about resilience. Taking ambitious action solar, and the phase‑down of synthetic renewable energy production, we believe with key stakeholders across the Group to assess the climate change, ethical sourcing and health will likely helps Woolworths stay ahead of refrigerant use, we will achieve there will be new and exciting carbon potential physical and transitional risks that may arise affect both customer preferences and stakeholder future policies and regulations to limit significant emissions reduction in our reduction opportunities in the future that under Australia’s changing climate, their impacts and their expectations of Woolworths Group’s role as a large greenhouse gas emissions, ensure we business. However, we are working we cannot accurately forecast today. opportunities for Woolworths’ operations. listed company. o comply with Australian Corporations on our pathway to achieve the 1.5 C We are working with the Science Based Given the breadth of the impacts of climate change and our law to the highest standard and the target. We are committed to actively Target initiative to have our target • Suppliers: Woolworths has a large and complex supply expansive supply chain, the climate risk identification and chain network across Australia and internationally. growing requirements on governance scanning emerging technologies, independently assessed and approved and evaluation workshops were undertaken in two sessions: and disclosure in relation to climate risk explore renewable energy sourcing will report once this process is complete. Physical climate‑related events such as droughts, • Operational risks (retail stores, logistics, cyclones and flooding, along with climate‑related distribution centres) regulatory interventions, can directly affect the quality
HIGHLIGHTS 1PERFORMANCE • Upstream and downstream risks (suppliers and quantity of fresh produce and compound business Risks were identified in the following themes, and the outcomes are discussed in the and customers). disruptions. Climate risks following sections. Potential financial impacts have not been modelled, however indicative An overview of the potential climate risks on these areas of • Operations: The transport, distribution and storage financial impacts were determined using our Enterprise Risk Management framework. and opportunities our business is as follows: infrastructure for our businesses are expected to grow, • Customers: Woolworths Group’s corporate trust and as customer demand continues to increase for more brand association could be impacted by climate change, convenient delivery solutions. Greater centralisation of Climate change risk themes if our ability to meet customer demand for sustainable, infrastructure assets (such as large distribution centres)
2PEOPLE low‑price, high‑quality products is compromised. could potentially concentrate our exposure to the Moreover, the definitive momentum towards sustainable physical impacts of climate change.
PHYSICAL MARKET TECHNOLOGICAL REPUTATION POLICY
CLIMATE ISSUE POTENTIAL RISK MITIGATION AND OPPORTUNITIES Potential disruption and relocation of commodity supply chains
3PLANET Policy Change in policies which apply a carbon We are looking into conducting scenario analysis According to the latest IPCC report, Australia will observe: • Global and local sea level rise (further sea level rise and price will impact our energy, fuel and raw to establish the potential impact of a carbon ocean acidification) material costs and operating costs for price on our direct operating costs, and integrate • Changes in temperature (further increases in sea and air refrigeration systems. these costs into our business planning and temperatures, more hot days and marine heatwaves and • Extreme weather events (cyclones, storm surges, bushfires). decision making. fewer cool extremes) This is a new paradigm for Australia’s agricultural sector, and The delayed adoption of new technologies in We will investigate new initiatives for optimising • Changes in precipitation (decrease in rainfall across it could have widespread supply‑chain implications for our Technological our facilities will reduce Woolworths Group's efficiencies such as innovative renewable energy Southern Australia with more time in drought, but an fresh food and drinks businesses. Acute shocks to supply
4PROSPERITY competitiveness. installation, batteries and renewable energy increase in intense heavy rainfall throughout Australia) will increase price volatility in the food industry. We have procurement approaches. Our science‑based identified some potential risks in the table below: target will bring particular focus to this work.
Consumer and community expectation is Woolworths Group will continue to actively engage that the Woolworths Group, being an iconic with our stakeholders and improve our disclosure ACUTE RISKS CHRONIC RISKS brand and ASX10 company, will lead in on climate‑related risk management. We will work Reputation Risk mitigating and adapting to climate change. to ensure that our existing and future commitment Droughts affects fresh produce, and lead to price shocks for Suppliers’ ability to adapt to climate change may have long term
METRICS 5SUSTAINABILITY As more extreme weather events occur in for climate action is effectively communicated. customers. Vegetables, fruit and honey have historically been effects on our supply chain and logistics. This includes cold‑chain relation to climate change, if Woolworths vulnerable to price spikes during Australian droughts. management issues and current distribution centres and logistics Group fails to act and communicate climate not being in locations that are optimal for sourcing produce action, there is a risk in being perceived to in the future. be laggards and ‘climate change culprits’, resulting in brand/reputation damage. Cyclones and storm surges can affect produce that is grown Diversified sourcing will provide some insulation from climate in concentrated locations in Australia, such as bananas. risk for products where more alternative growing regions Our operations are susceptible to extreme We will assess the use of climate modelling Extreme weather exist (for example, where berry farms can shift further south). weather events such as flooding and to assess the risks to physical assets and help impacting our: However, risks are heightened for products that have limited electricity blackouts. This can lead to us plan for extreme events. options for relocation (such as wine grapes) which could deeply • Facilities increased product damage and stock affect availability of produce and price to customers. • Stores, distribution, write‑offs. There is also potential wellbeing logistics operations risks for our teams as, for example, the • Teams. number of extreme heat days increase. Heatwaves may affect the quality of produce from farm to store, Higher priced goods may lead to substitution/reduction increasing damage and write‑offs should the cold‑chain be in demand. compromised along the way, especially for delicate fruits such as berries, mangos and avocados. 40 41 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
We examined the potential climate‑related impacts on key commodities, examples of which are shown below: What’s next? PRODUCT CURRENT CONDITIONS PROJECTED CLIMATE CHANGE IMPACTS Changing customer preferences
The demand for sustainable of the physical impacts of climate Woolworths has committed to monitoring, managing and reducing Beef cattle are grown in every Australian state and Warmer and drier climates in the future will contract products is growing, and consumers change, whether it is through territory with cattle breeds of temperate origin, pasture‑growing seasons, leading to lower and more where possible, greenhouse gas are increasingly making purchasing exposure to bushfires, extreme (such as Angus and Hereford) typically raised in variable animal stocking rates and increase reliance on emissions of our operations, and choices based on not only what storms, or the rise in costs for Beef southern regions, grazing on intensively managed supplementary grain feeding. The negative effects of we are working to understand and pastures. Woolworths mainly sources beef produced climate change on the grain industry (see grain section is good for them but what is good certain living staples on the dinner address the risks created by climate in Queensland, with smaller production from NSW below) may have flow‑on costs to dairy production. for the planet. The EAT‑Lancet table. New research and technology change for our business. and Victoria. Reduced rainfall will limit the capture of runoff to Commission report, published into low carbon food alternatives We have undertaken: supply drinking water, an issue highlighted during the in early 2019, recommended the such as lab grown meats and edible Millennium Drought. Increased heat stress may lead planetary health diet as a global insects, currently present in the • Energy price risk analysis, and to farmers choosing more heat‑tolerant cattle breeds, reference diet that is best for health market as niche products, may invested in a range of initiatives
possibly of lower meat‑eating quality. and the planet. It calls for global become more readily available. that optimise our energy use and HIGHLIGHTS 1PERFORMANCE consumption of red meat and sugar boost budget certainty Commercial chicken meat production is established Heat stress for broiler chickens causes them to reduce to decrease by more than 50%, • Scoping research to understand in most states and territories in Australia. Major feed intake, resulting in poor weight gain and poorer and consumption of nuts, fruits, the impact of water shortages Poultry chicken‑growing areas are generally within 100 meat quality. Heat stress affects laying hens’ laying rate, vegetables and legumes to increase on our supply chain, especially kilometres of processing plants, with many of the largest and reduces egg weight and shell quality. The negative by 100%. The report also calls for for 13 of our key product groups. operations within 50 kilometres of a capital city. The effects of climate change on the grain industry (see dramatic reductions in food losses We will continue to work to ideal temperature range for broiler chickens to thrive is below) will have flow‑on costs to poultry production. and waste and major improvements deepen our understanding of the 18–22°C, and 19–22°C for laying hens. Intensive poultry 2PEOPLE in food production practices climate risks identified through our industries rely heavily on feed such as wheat and barley. including fertiliser and water use. assessment processes. We will also In the coming years, consumers will undertake scenario analysis in the 85% of Australia’s bananas come from North Tropical cyclones can destroy large portions of banana coming year and will report on this Bananas experience and become more aware Queensland’s coastal region. crops (as occurred with Cyclone Yasi in 2011). Future in our 2020 Sustainability Report. changes to tropical cyclones are uncertain, with studies projecting a lower frequency of cyclones but increase in their intensity.
3PLANET
Apples Apples are largely resilient, but they are sensitive Climate change is expected to increase the number of to extreme heat conditions. As little as 10 minutes hotter days (more than 35°C) in fruit‑growing regions of extreme sunlight (more than 35°C) is enough to such as Goulburn Valley, increasing the rate of fruit cause penetrative burns through apple skin, leading damage. Additional netting may be required, which to sun damage. could add to production costs.
Grown in subtropical fruit trees, avocados need Hot weather can cause sunburn damage and yield
4PROSPERITY a frost‑free climate with little wind, as high winds can a smaller fruit. Temperatures above 35°C can reduce Avocados increase moisture stress, dehydrate the flowers and flowering, because some avocado trees only produce reduce pollination. Both male and female plants need flower buds under cool temperatures. As the climate to be open for as long as possible to increase the chances warms, daily temperature ranges will narrow in the of pollination. tropics and sub‑tropics, reducing the overlap between open stages of male and female parts and thus decreasing pollination chances.
METRICS 5SUSTAINABILITY Lemons are commercially grown throughout Australia Temperatures over 37°C can cause trees to shed fruit Citrus and are the dominant citrus crop in central NSW and too soon, reducing yields. In the southern states, shifting NT. Lemon trees flourish in warmer, sunny climate with production further south is less of an option, with spring mild winters and are frost sensitive. Their optimum frosts becoming a particular risk if trees have flowered temperature range is between 25–30°C. due to warmer winters.
Most grains are highly dependent on water availability. Water scarcity will increase due to more frequent and Grains Half of Australia’s corn production comes from rain‑fed extended droughts. While the price of grain commodities agriculture, and yields are highly variable. Soybeans are is linked to the global market, and dependent not just an annual summer legume grown in irrigated or heavy on Australian conditions, Australia is a major supplier rainfall areas of southern Australia. Irrigated paddy of grain globally so droughts in Australia influence rice requires ample water resources. Wheat growth global prices. Increased atmospheric carbon dioxide can is strongly affected by rainfall and temperature. increase wheat growth but decrease nutritional value.
Wineries Wine grapes are Australia’s largest fruit industry, and Iconic winery regions such as Margaret River, Barossa mostly come from areas with a favourable temperate and Riverina will be affected by higher temperatures and or Mediterranean climate. lower rainfall, especially for red varieties such as Shiraz, Graeme Wellman, Endeavour Drinks Viticulturist Cabernet Sauvignon and Merlot. 40 41 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
We examined the potential climate‑related impacts on key commodities, examples of which are shown below: What’s next? PRODUCT CURRENT CONDITIONS PROJECTED CLIMATE CHANGE IMPACTS Changing customer preferences
The demand for sustainable of the physical impacts of climate Woolworths has committed to monitoring, managing and reducing Beef cattle are grown in every Australian state and Warmer and drier climates in the future will contract products is growing, and consumers change, whether it is through territory with cattle breeds of temperate origin, pasture‑growing seasons, leading to lower and more where possible, greenhouse gas are increasingly making purchasing exposure to bushfires, extreme (such as Angus and Hereford) typically raised in variable animal stocking rates and increase reliance on emissions of our operations, and choices based on not only what storms, or the rise in costs for Beef southern regions, grazing on intensively managed supplementary grain feeding. The negative effects of we are working to understand and pastures. Woolworths mainly sources beef produced climate change on the grain industry (see grain section is good for them but what is good certain living staples on the dinner address the risks created by climate in Queensland, with smaller production from NSW below) may have flow‑on costs to dairy production. for the planet. The EAT‑Lancet table. New research and technology change for our business. and Victoria. Reduced rainfall will limit the capture of runoff to Commission report, published into low carbon food alternatives We have undertaken: supply drinking water, an issue highlighted during the in early 2019, recommended the such as lab grown meats and edible Millennium Drought. Increased heat stress may lead planetary health diet as a global insects, currently present in the • Energy price risk analysis, and to farmers choosing more heat‑tolerant cattle breeds, reference diet that is best for health market as niche products, may invested in a range of initiatives possibly of lower meat‑eating quality. and the planet. It calls for global become more readily available. that optimise our energy use and HIGHLIGHTS 1PERFORMANCE consumption of red meat and sugar boost budget certainty Commercial chicken meat production is established Heat stress for broiler chickens causes them to reduce to decrease by more than 50%, • Scoping research to understand in most states and territories in Australia. Major feed intake, resulting in poor weight gain and poorer and consumption of nuts, fruits, the impact of water shortages Poultry chicken‑growing areas are generally within 100 meat quality. Heat stress affects laying hens’ laying rate, vegetables and legumes to increase on our supply chain, especially kilometres of processing plants, with many of the largest and reduces egg weight and shell quality. The negative by 100%. The report also calls for for 13 of our key product groups. operations within 50 kilometres of a capital city. The effects of climate change on the grain industry (see dramatic reductions in food losses We will continue to work to ideal temperature range for broiler chickens to thrive is below) will have flow‑on costs to poultry production. and waste and major improvements deepen our understanding of the 18–22°C, and 19–22°C for laying hens. Intensive poultry 2PEOPLE in food production practices climate risks identified through our industries rely heavily on feed such as wheat and barley. including fertiliser and water use. assessment processes. We will also In the coming years, consumers will undertake scenario analysis in the 85% of Australia’s bananas come from North Tropical cyclones can destroy large portions of banana coming year and will report on this Bananas experience and become more aware Queensland’s coastal region. crops (as occurred with Cyclone Yasi in 2011). Future in our 2020 Sustainability Report. changes to tropical cyclones are uncertain, with studies projecting a lower frequency of cyclones but increase in their intensity.
3PLANET
Apples Apples are largely resilient, but they are sensitive Climate change is expected to increase the number of to extreme heat conditions. As little as 10 minutes hotter days (more than 35°C) in fruit‑growing regions of extreme sunlight (more than 35°C) is enough to such as Goulburn Valley, increasing the rate of fruit cause penetrative burns through apple skin, leading damage. Additional netting may be required, which to sun damage. could add to production costs.
Grown in subtropical fruit trees, avocados need Hot weather can cause sunburn damage and yield
4PROSPERITY a frost‑free climate with little wind, as high winds can a smaller fruit. Temperatures above 35°C can reduce Avocados increase moisture stress, dehydrate the flowers and flowering, because some avocado trees only produce reduce pollination. Both male and female plants need flower buds under cool temperatures. As the climate to be open for as long as possible to increase the chances warms, daily temperature ranges will narrow in the of pollination. tropics and sub‑tropics, reducing the overlap between open stages of male and female parts and thus decreasing pollination chances.
METRICS 5SUSTAINABILITY Lemons are commercially grown throughout Australia Temperatures over 37°C can cause trees to shed fruit Citrus and are the dominant citrus crop in central NSW and too soon, reducing yields. In the southern states, shifting NT. Lemon trees flourish in warmer, sunny climate with production further south is less of an option, with spring mild winters and are frost sensitive. Their optimum frosts becoming a particular risk if trees have flowered temperature range is between 25–30°C. due to warmer winters.
Most grains are highly dependent on water availability. Water scarcity will increase due to more frequent and Grains Half of Australia’s corn production comes from rain‑fed extended droughts. While the price of grain commodities agriculture, and yields are highly variable. Soybeans are is linked to the global market, and dependent not just an annual summer legume grown in irrigated or heavy on Australian conditions, Australia is a major supplier rainfall areas of southern Australia. Irrigated paddy of grain globally so droughts in Australia influence rice requires ample water resources. Wheat growth global prices. Increased atmospheric carbon dioxide can is strongly affected by rainfall and temperature. increase wheat growth but decrease nutritional value.
Wineries Wine grapes are Australia’s largest fruit industry, and Iconic winery regions such as Margaret River, Barossa mostly come from areas with a favourable temperate and Riverina will be affected by higher temperatures and or Mediterranean climate. lower rainfall, especially for red varieties such as Shiraz, Graeme Wellman, Endeavour Drinks Viticulturist Cabernet Sauvignon and Merlot. 42 43 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Our emissions profile Certified Green Bond
We emit greenhouse gases both 553,801 CO₂e of direct (scope In April 2019, Woolworths Group under the CBI low‑carbon buildings to ASX‑listed, to invest further directly and indirectly. Emissions 1) emissions which mainly come issued $400 million of Green Bonds criteria for supermarkets globally. in projects and assets that deliver from our retail stores make up from our use of refrigeration and has become the first retailer in Woolworths Group’s Green Bonds positive environmental and climate around 90% of our direct carbon gases and natural gases at our 2019 carbon emissions Australia, and the first supermarket have been certified by the CBI and outcomes, while also contributing footprint, mostly resulting from stores. Electricity accounts for the operator globally, to issue Green a second party opinion has been to the development of green finance activities such as refrigeration, majority of our emissions footprint, Bonds certified by the Climate Bonds provided by Ernst & Young. and Green Bond markets.” air conditioning and lighting. This and this year we have emitted over Initiative (CBI). year, we emitted a total of 3.1 2 million tonnes of CO₂e resulting Sean Kidney, CEO and co‑founder Our Green Bonds are issued under million tonnes of carbon dioxide from electricity use. Our scope of the CBI adds, 18% a framework this is aligned to the equivalent (CO₂e), which is 18% 3 emissions include the indirect Green Bond Principles published “We applaud Woolworths for
lower than our 2015 baseline emissions that occur as a result HIGHLIGHTS 1PERFORMANCE below 2015 baseline levels by the International Capital Market taking further steps to improve its levels. In F19, our facilities emitted of our waste disposal. Association and will: environmental footprint via the issuing Green Bond Framework • Support the financing of projects, of the first certified Green Bonds assets or expenditure that will by a supermarket operator globally. deliver positive environmental Purpose‑driven investors now have outcomes, for example a further opportunity to put their
Michael Shelley money to work in mitigating long Group Energy Manager solar installations, or waste with the solar panels on our Erskine Park Distribution Centre
reduction initiatives term environmental and carbon risks. 2PEOPLE • Encourage other companies, As a result of Woolworths’ commitment by our example, to invest in in this space, we have developed projects and assets that will deliver a global low‑carbon buildings positive environmental outcomes criteria for supermarkets, applicable Green Factories • Contribute to the development in multiple jurisdictions. We hope
April 2019 of the green bond market as we For further information, please email leading the way in Woolworths’ leadership will encourage [email protected] are the first issuer of green bonds Woolworths Group Limited ABN 88 000 014 675
3PLANET Bangladesh other companies, from SME‑sized
Energy efficiency Heating, Ventilation and While the Group has not Air‑Conditioning (HVAC) formally engaged its global Optimisation Strategy: We have supply chain on specific climate Woolworths Group committed to changed HVAC system settings change strategies, many of our reduce carbon emissions to 10% Carbon Intensity to be more energy efficient while strategic suppliers are proactive below 2015 levels by 2020. We (tCO ‑e/square meters) Townsville floods maintaining store conditions and in addressing environmental and 2 4PROSPERITY are significantly ahead, with a 18% customer comfort, with pleasing climate concerns. In Bangladesh, – Fairfield Central store reduction reported this year. results. After the first phase of the five of our supplier's factories 0.74 0.76 0.70 0.69 We are constantly investigating and project was completed, over 1,500 have achieved Gold Tier Green 0.62 trialling new technology to help us changes to our HVAC systems were factory certification from the We are continually considering We have also installed a flood manage and reduce our emissions identified, which equates to potential United States Green Building the climate change resilience of protection system in the store. towards our 1.5oC ambition, and energy savings of $1.3 million. Council (USGBC). There are our network and incorporating These removable aluminium flood deliver commercial benefits. Our Without the EMC these changes only 90 garment factories in features into our store design. barriers will flood‑proof the store
METRICS 5SUSTAINABILITY energy efficiency projects have this would have gone unnoticed. Data Bangladesh total that have In February 2019, our Fairfield to the height of 1 metre and can Central store was inundated be deployed by a single individual year delivered a 7% year‑on‑year gathered has been key in changing achieved Green Status. 2015 2016 2017 2018 2019 energy reduction. behaviours and increasing team with 600mm water during the in the event of a flood warning. knowledge on energy efficiency. There are a number of Townsville floods. The store At an approximate cost of LED lighting: We have now rolled out indicators in the Green Factory experienced an estimated loss <$100,000, the business benefit Solar: We continue to roll out solar LED lighting across more than 800 certification, but generally these Energy Intensity of stock, fixtures, equipment, is clear in areas like Townsville sites and are continuing this upgrade installations and have over 100 factories have lower energy (tCO ‑e/square meters) demolition plus rebuild at that are subject to repeated across all our stores. stores and two DCs with solar panels consumption, use of renewable 2 around $12 million. Thanks to extreme weather events. As well with a total capacity of 14MW. energy, consider water Energy Management Centre (EMC): an extraordinary effort from our as the financial benefit, opening The TESLA battery at Erskine Park efficiency, have enhanced safety 2.9 2.8 All Australian supermarkets are now 2.7 2.7 team, the store was reopened in the shortest possible time after Liquor Distribution Centre entered features and, importantly, are 2.5 connected to the EMC, which allows after six weeks, instead of an event allows us to service full operation in September 2018 structurally sound. A common for real‑time visibility of our energy the usual 16–24 weeks, which a community in need and helps and is paired with a 400kW solar feature of Green garment usage. We will continue to connect minimised trade loss allowed our them to return to normality. system. The site participated in six factories in Bangladesh are heat our other retail stores in a phased team members to return to store Peak Demand events – assisting the efficient windows that help approach. The initial 500 stores and our customers to have access grid over Summer during the hot days reduce energy expenditure and originally connected to the EMC to to grocery needs. of high demand. costs, and water management. date have achieved an average of 10% 2015 2016 2017 2018 2019 reduction in store energy consumption. 42 43 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Our emissions profile Certified Green Bond
We emit greenhouse gases both 553,801 CO₂e of direct (scope In April 2019, Woolworths Group under the CBI low‑carbon buildings to ASX‑listed, to invest further directly and indirectly. Emissions 1) emissions which mainly come issued $400 million of Green Bonds criteria for supermarkets globally. in projects and assets that deliver from our retail stores make up from our use of refrigeration and has become the first retailer in Woolworths Group’s Green Bonds positive environmental and climate around 90% of our direct carbon gases and natural gases at our 2019 carbon emissions Australia, and the first supermarket have been certified by the CBI and outcomes, while also contributing footprint, mostly resulting from stores. Electricity accounts for the operator globally, to issue Green a second party opinion has been to the development of green finance activities such as refrigeration, majority of our emissions footprint, Bonds certified by the Climate Bonds provided by Ernst & Young. and Green Bond markets.” air conditioning and lighting. This and this year we have emitted over Initiative (CBI). year, we emitted a total of 3.1 2 million tonnes of CO₂e resulting Sean Kidney, CEO and co‑founder Our Green Bonds are issued under million tonnes of carbon dioxide from electricity use. Our scope of the CBI adds, 18% a framework this is aligned to the equivalent (CO₂e), which is 18% 3 emissions include the indirect Green Bond Principles published “We applaud Woolworths for lower than our 2015 baseline emissions that occur as a result HIGHLIGHTS 1PERFORMANCE below 2015 baseline levels by the International Capital Market taking further steps to improve its levels. In F19, our facilities emitted of our waste disposal. Association and will: environmental footprint via the issuing Green Bond Framework • Support the financing of projects, of the first certified Green Bonds assets or expenditure that will by a supermarket operator globally. deliver positive environmental Purpose‑driven investors now have outcomes, for example a further opportunity to put their
Michael Shelley money to work in mitigating long Group Energy Manager solar installations, or waste with the solar panels on our Erskine Park Distribution Centre
reduction initiatives term environmental and carbon risks. 2PEOPLE • Encourage other companies, As a result of Woolworths’ commitment by our example, to invest in in this space, we have developed projects and assets that will deliver a global low‑carbon buildings positive environmental outcomes criteria for supermarkets, applicable Green Factories • Contribute to the development in multiple jurisdictions. We hope
April 2019 of the green bond market as we For further information, please email leading the way in Woolworths’ leadership will encourage [email protected] are the first issuer of green bonds Woolworths Group Limited ABN 88 000 014 675
3PLANET Bangladesh other companies, from SME‑sized
Energy efficiency Heating, Ventilation and While the Group has not Air‑Conditioning (HVAC) formally engaged its global Optimisation Strategy: We have supply chain on specific climate Woolworths Group committed to changed HVAC system settings change strategies, many of our reduce carbon emissions to 10% Carbon Intensity to be more energy efficient while strategic suppliers are proactive below 2015 levels by 2020. We (tCO ‑e/square meters) Townsville floods maintaining store conditions and in addressing environmental and 2 4PROSPERITY are significantly ahead, with a 18% customer comfort, with pleasing climate concerns. In Bangladesh, – Fairfield Central store reduction reported this year. results. After the first phase of the five of our supplier's factories 0.74 0.76 0.70 0.69 We are constantly investigating and project was completed, over 1,500 have achieved Gold Tier Green 0.62 trialling new technology to help us changes to our HVAC systems were factory certification from the We are continually considering We have also installed a flood manage and reduce our emissions identified, which equates to potential United States Green Building the climate change resilience of protection system in the store. towards our 1.5oC ambition, and energy savings of $1.3 million. Council (USGBC). There are our network and incorporating These removable aluminium flood deliver commercial benefits. Our Without the EMC these changes only 90 garment factories in features into our store design. barriers will flood‑proof the store
METRICS 5SUSTAINABILITY energy efficiency projects have this would have gone unnoticed. Data Bangladesh total that have In February 2019, our Fairfield to the height of 1 metre and can Central store was inundated be deployed by a single individual year delivered a 7% year‑on‑year gathered has been key in changing achieved Green Status. 2015 2016 2017 2018 2019 energy reduction. behaviours and increasing team with 600mm water during the in the event of a flood warning. knowledge on energy efficiency. There are a number of Townsville floods. The store At an approximate cost of LED lighting: We have now rolled out indicators in the Green Factory experienced an estimated loss <$100,000, the business benefit Solar: We continue to roll out solar LED lighting across more than 800 certification, but generally these Energy Intensity of stock, fixtures, equipment, is clear in areas like Townsville sites and are continuing this upgrade installations and have over 100 factories have lower energy (tCO ‑e/square meters) demolition plus rebuild at that are subject to repeated across all our stores. stores and two DCs with solar panels consumption, use of renewable 2 around $12 million. Thanks to extreme weather events. As well with a total capacity of 14MW. energy, consider water Energy Management Centre (EMC): an extraordinary effort from our as the financial benefit, opening The TESLA battery at Erskine Park efficiency, have enhanced safety 2.9 2.8 All Australian supermarkets are now 2.7 2.7 team, the store was reopened in the shortest possible time after Liquor Distribution Centre entered features and, importantly, are 2.5 connected to the EMC, which allows after six weeks, instead of an event allows us to service full operation in September 2018 structurally sound. A common for real‑time visibility of our energy the usual 16–24 weeks, which a community in need and helps and is paired with a 400kW solar feature of Green garment usage. We will continue to connect minimised trade loss allowed our them to return to normality. system. The site participated in six factories in Bangladesh are heat our other retail stores in a phased team members to return to store Peak Demand events – assisting the efficient windows that help approach. The initial 500 stores and our customers to have access grid over Summer during the hot days reduce energy expenditure and originally connected to the EMC to to grocery needs. of high demand. costs, and water management. date have achieved an average of 10% 2015 2016 2017 2018 2019 reduction in store energy consumption. 44 45 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Refrigeration IMPACT: management Commitment 14
Sustainable Development Goal
We continue to implement new technology and initiatives to reduce our reliance on certain refrigeration gases, which is a material contributor to our carbon footprint.
HIGHLIGHTS 1PERFORMANCE
Refrigeration is crucial for ensuring Our Woolworths Prestons supermarket our customers have access to the represents a technological milestone
2PEOPLE "Eve" – Australia's largest electric truck freshest and safest food. Operation for our business as it is the first in of our refrigeration systems is our fleet that combines the natural It has no engine, no gearbox, (grocery and produce deliveries servicing nor require regular repairs a material contributor to our overall refrigeration and HVAC systems emits no fumes and can deliver from DCs to stores) in Melbourne’s and maintenance. The battery will carbon footprint and we continue into an integrated transcritical CO2 up to 14 pallets of groceries to our metro area with Linfox drivers. last around 10 years based on charge to work towards reducing our reliance platform. This virtually eliminates supermarkets while hardly making Linfox is a key carrier supporting cycles. It takes six to eight hours on certain synthetic refrigeration gases synthetic refrigerants from the store. with high global warming potentials. a sound. Woolworths’ first fully Woolworths in this journey. to recharge the battery while the Our refrigerant technology is currently 2019 refrigerant
electric heavy vehicle made its debut truck is parked at the distribution 3PLANET It’s the first of its kind and currently We have now rolled out 14 stores susceptible to leaking gases of high leakage on 1st August 2018. centre overnight. the largest in Australia. It has no with a transcritical CO2 system global warming potential, at a rate Woolworths began trialling electric petrol tank and no vibrations or Woolworths will have a second and four stores with a water loop of around 11 per cent below 2015 levels. vehicle technology last June in jolting from changing gears – the electric heavy vehicle making refrigeration system across Australia By reducing our leakage rate and one of our online delivery trucks, only noise you hear are the tyres. deliveries to stores in Sydney and New Zealand. We continue to switching to alternative refrigerant and our latest refrigerated heavy from August 2019. roll out hybrid refrigeration when we technologies, we can reduce emissions % Unlike a normal car or truck, the perform store renewals and currently and the cost of recharging our 11 rigid electric vehicle is currently electric vehicle doesn’t need engine have over 300 stores with these systems. We will align our phase down
being used for secondary freight 4PROSPERITY updated systems. of refrigerants in accordance with below 2015 levels Australian Government’s phase‑out schedule under the Montreal Protocol.
A greener built • Acoustic treatments and lighting to deliver a comfortable indoor environment experience for customers and teams
METRICS 5SUSTAINABILITY • Use of engineered wood products, Woolworths' Heidelberg store timber laminates and responsibly in Victoria has been designed in sourced steel, concrete, PVX accordance with the requirements of a 5 Green Star Design and is now • 95% of all demolition of construction undergoing certification for an As‑Built waste on site was recycled v1.2 Rating from the Green Building • Access to fresh outdoor air as well Council of Australia, setting the as monitoring to maintain indoor benchmark for a standalone sustainable air quality supermarket development. • Electric vehicle charging bays, With 25% fewer greenhouse gas bike racks and end of trip facilities emissions than a regular Woolworths to encourage the use of low supermarket – equivalent to taking emissions transport. 147 cars off the road each year We are committed to obtaining a Green – Woolworths Heidelberg has Star Performance rating for currently incorporated a range of environmental owned retail centres and achieving features into many aspects of the a minimum 4 Star Green Star rating store’s renewal. These include: for future developments. 44 45 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Refrigeration IMPACT: management Commitment 14
Sustainable Development Goal
We continue to implement new technology and initiatives to reduce our reliance on certain refrigeration gases, which is a material contributor to our carbon footprint.
HIGHLIGHTS 1PERFORMANCE
Refrigeration is crucial for ensuring Our Woolworths Prestons supermarket our customers have access to the represents a technological milestone
2PEOPLE "Eve" – Australia's largest electric truck freshest and safest food. Operation for our business as it is the first in of our refrigeration systems is our fleet that combines the natural It has no engine, no gearbox, (grocery and produce deliveries servicing nor require regular repairs a material contributor to our overall refrigeration and HVAC systems emits no fumes and can deliver from DCs to stores) in Melbourne’s and maintenance. The battery will carbon footprint and we continue into an integrated transcritical CO2 up to 14 pallets of groceries to our metro area with Linfox drivers. last around 10 years based on charge to work towards reducing our reliance platform. This virtually eliminates supermarkets while hardly making Linfox is a key carrier supporting cycles. It takes six to eight hours on certain synthetic refrigeration gases synthetic refrigerants from the store. with high global warming potentials. a sound. Woolworths’ first fully Woolworths in this journey. to recharge the battery while the Our refrigerant technology is currently 2019 refrigerant electric heavy vehicle made its debut truck is parked at the distribution 3PLANET It’s the first of its kind and currently We have now rolled out 14 stores susceptible to leaking gases of high leakage on 1st August 2018. centre overnight. the largest in Australia. It has no with a transcritical CO2 system global warming potential, at a rate Woolworths began trialling electric petrol tank and no vibrations or Woolworths will have a second and four stores with a water loop of around 11 per cent below 2015 levels. vehicle technology last June in jolting from changing gears – the electric heavy vehicle making refrigeration system across Australia By reducing our leakage rate and one of our online delivery trucks, only noise you hear are the tyres. deliveries to stores in Sydney and New Zealand. We continue to switching to alternative refrigerant and our latest refrigerated heavy from August 2019. roll out hybrid refrigeration when we technologies, we can reduce emissions % Unlike a normal car or truck, the perform store renewals and currently and the cost of recharging our 11 rigid electric vehicle is currently electric vehicle doesn’t need engine have over 300 stores with these systems. We will align our phase down
being used for secondary freight 4PROSPERITY updated systems. of refrigerants in accordance with below 2015 levels Australian Government’s phase‑out schedule under the Montreal Protocol.
A greener built • Acoustic treatments and lighting to deliver a comfortable indoor environment experience for customers and teams
METRICS 5SUSTAINABILITY • Use of engineered wood products, Woolworths' Heidelberg store timber laminates and responsibly in Victoria has been designed in sourced steel, concrete, PVX accordance with the requirements of a 5 Green Star Design and is now • 95% of all demolition of construction undergoing certification for an As‑Built waste on site was recycled v1.2 Rating from the Green Building • Access to fresh outdoor air as well Council of Australia, setting the as monitoring to maintain indoor benchmark for a standalone sustainable air quality supermarket development. • Electric vehicle charging bays, With 25% fewer greenhouse gas bike racks and end of trip facilities emissions than a regular Woolworths to encourage the use of low supermarket – equivalent to taking emissions transport. 147 cars off the road each year We are committed to obtaining a Green – Woolworths Heidelberg has Star Performance rating for currently incorporated a range of environmental owned retail centres and achieving features into many aspects of the a minimum 4 Star Green Star rating store’s renewal. These include: for future developments. 46 Prosperity
Founded on trusted relationships We continue to listen, learn and seek common ways to work better together in partnership with our suppliers, customers and communities. Developing and maintaining strong relationships enables us to build trust, loyalty and value and to maximise our positive impact.
Own Brand Woolworths Own products undergone Brand products with a nutritional the health star rating renovation 70 100% 9% from F18 1.5% from F18
Cash donations Community Contribution of EBIT $14.8M 1.40% 198% from F18 0.16% from F18
Alam Jahangir and Peter Fisher from Humpty Doo Barramundi. 46 Prosperity
Founded on trusted relationships We continue to listen, learn and seek common ways to work better together in partnership with our suppliers, customers and communities. Developing and maintaining strong relationships enables us to build trust, loyalty and value and to maximise our positive impact.
Own Brand Woolworths Own products undergone Brand products with a nutritional the health star rating renovation 70 100% 9% from F18 1.5% from F18
Cash donations Community Contribution of EBIT $14.8M 1.40% 198% from F18 0.16% from F18
Alam Jahangir and Peter Fisher from Humpty Doo Barramundi. 48 49 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Working with our IMPACT: business partners Commitment 15 Sustainable Development Goal
We know it is important to build strong long‑term Supporting our relationships with our suppliers. We look to understand dairy farmers Sustainable Supplier of the Year
our suppliers through open communication and find Woolworths customers – Humpty Doo Barramundi have directly contributed
HIGHLIGHTS 1PERFORMANCE opportunities to collaborate to deliver mutual benefits. Woolworths Supermarkets’ annual Sustainable Supplier of the Year Award encourages more than $18.8 million our suppliers to innovate and implement sustainability practices into their business. to more than 450 We’re proud to report that this year’s Award went to Humpty Doo Barramundi in the Australian dairy farmers Northern Territory for its Indigenous Employment Strategy (IES), which aims to develop through the purchase of and deliver increased opportunities for Indigenous people to be employed in its business. Woolworths fresh milk since September 2018. The key objectives of the IES are to develop and formalise effective partnerships with The support started with the Indigenous organisations in the area to: limited edition Drought Relief
• Increase the overall percentage of Indigenous employees 2PEOPLE Milk range which offered selected milk products • Maintain an Indigenous procurement policy that will deliver jobs and opportunities for an extra 10 cents per in the Indigenous business sector Understanding our suppliers litre which went to dairy • Increase community engagement opportunities farmers in drought affected We work with the Advantage Group to allow our areas in NSW and Qld. The • Increase workplace training and learning opportunities Woolworths Organic Growth Fund distribution of these funds suppliers to talk freely and anonymously about • Contribute to healthy local communities our engagement and relationship with them. was independently audited
by KPMG and overseen 3PLANET The Woolworths Organic Growth Fund has been The Advantage Group prepares a detailed report • Maintaining a stable workforce is a common challenge for businesses operating established in partnership with Heritage Bank to help by Woolworths' Drought in Northern Australia and employment opportunities can be limited. based on these interviews on a yearly basis, along Relief Committee. Australian farmers meet the growing consumer demand with a pulse survey which is undertaken more The IES was launched in May 2018 and Indigenous employees now make up around Following this success, in for organic fruit and vegetables. regularly, to provide Woolworths with feedback 17% of Humpty Doo Barramundi’s team. The business is also working with Charles February 2019 we ceased Darwin University’s Aquaculture team to formally recognise the skills its staff have Woolworths has committed to invest up to $30 million and help us address supplier concerns. selling $1 per litre own‑brand gained through their employment with Humpty Doo Barramundi with a Certificate over a five‑year period in the form of financial grants In the 2019 Advantage Report, we are pleased fresh milk altogether. As IV in Aquaculture. This is a nationally‑recognised accreditation for people working to report that Woolworths achieved the second a result, Woolworths' and interest‑free loans. These grants and loans will help as aquaculturists in a supervisory or leadership capacity. Humpty Doo Barramundi’s
standard retail price for 2L 4PROSPERITY Australian organic fruit and vegetable growers looking to highest ranking against 19 of its retailing peers. staff will obtain valuable skills and experience that can be applied in other aquaculture and 3L own‑brand varieties expand their operations and those keen to become part While we achieved the top quartile ranking businesses elsewhere in Australia, or around the world. of the burgeoning organic industry. Farmers will also have in how we engage fairly and equitably with our was increased by 10c per litre and Woolworths contracted purchase volumes, providing them with the suppliers as measured by independent supplier Humpty Doo Barramundi also maintains professional ties with local registered trainer committed to distributing all Karen Sheldon’s ‘Accelerated Aboriginal Cooks of Excellence’ program, allowing Humpty certainty of longer‑term supply of organic fruit and vegetables surveys in 2018 ahead of our 2020 commitment, money raised from the price Doo Barramundi not only to invest in skilling and employing Indigenous people in the Woolworths achieved a second quartile ranking to Woolworths. Australian Organic Farmers, Borderland, increase to dairy farmers rapidly‑developing aquaculture industry, but also in related industries where their skills Green Camel, R&R Smith and Manna Farm are the successful in this category in 2019. across Australia. and talents will be allowed to grow. recipients of the first round of loans and grants. Our BWS business continues to maintain second METRICS 5SUSTAINABILITY Anthony Bauer, Founder of Australian Organic Farmers position in the national VOS scoring rankings. in the Lockyer Valley, said: “With the support of the We acknowledge that there is still more work Woolworths Organic Growth Fund, we’re now able to install required for BWS and Dan Murphy's to continue a humidity‑controlled storage facility that will prolong the shelf to build our relationships with our suppliers. life of our sweet potatoes and onions and enable us to work around weather events such as storms and heat waves.” Compass app
Woolworths’ suppliers can now download a newly‑developed mobile app allowing them to more closely monitor the sales performance of their products in each store. The app generates alerts if sales drop below expectations, allowing a supplier to quickly identify and address potential out‑of‑stock or merchandising issues impacting sales opportunities. Compass has the potential to help suppliers avoid lost sales while improving Meshak Retchford, Humpty Doo Barramundi. product range and availability for customers. 48 49 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Working with our IMPACT: business partners Commitment 15 Sustainable Development Goal
We know it is important to build strong long‑term Supporting our relationships with our suppliers. We look to understand dairy farmers Sustainable Supplier of the Year our suppliers through open communication and find Woolworths customers – Humpty Doo Barramundi have directly contributed
HIGHLIGHTS 1PERFORMANCE opportunities to collaborate to deliver mutual benefits. Woolworths Supermarkets’ annual Sustainable Supplier of the Year Award encourages more than $18.8 million our suppliers to innovate and implement sustainability practices into their business. to more than 450 We’re proud to report that this year’s Award went to Humpty Doo Barramundi in the Australian dairy farmers Northern Territory for its Indigenous Employment Strategy (IES), which aims to develop through the purchase of and deliver increased opportunities for Indigenous people to be employed in its business. Woolworths fresh milk since September 2018. The key objectives of the IES are to develop and formalise effective partnerships with The support started with the Indigenous organisations in the area to: limited edition Drought Relief
• Increase the overall percentage of Indigenous employees 2PEOPLE Milk range which offered selected milk products • Maintain an Indigenous procurement policy that will deliver jobs and opportunities for an extra 10 cents per in the Indigenous business sector Understanding our suppliers litre which went to dairy • Increase community engagement opportunities farmers in drought affected We work with the Advantage Group to allow our areas in NSW and Qld. The • Increase workplace training and learning opportunities Woolworths Organic Growth Fund distribution of these funds suppliers to talk freely and anonymously about • Contribute to healthy local communities our engagement and relationship with them. was independently audited
by KPMG and overseen 3PLANET The Woolworths Organic Growth Fund has been The Advantage Group prepares a detailed report • Maintaining a stable workforce is a common challenge for businesses operating established in partnership with Heritage Bank to help by Woolworths' Drought in Northern Australia and employment opportunities can be limited. based on these interviews on a yearly basis, along Relief Committee. Australian farmers meet the growing consumer demand with a pulse survey which is undertaken more The IES was launched in May 2018 and Indigenous employees now make up around Following this success, in for organic fruit and vegetables. regularly, to provide Woolworths with feedback 17% of Humpty Doo Barramundi’s team. The business is also working with Charles February 2019 we ceased Darwin University’s Aquaculture team to formally recognise the skills its staff have Woolworths has committed to invest up to $30 million and help us address supplier concerns. selling $1 per litre own‑brand gained through their employment with Humpty Doo Barramundi with a Certificate over a five‑year period in the form of financial grants In the 2019 Advantage Report, we are pleased fresh milk altogether. As IV in Aquaculture. This is a nationally‑recognised accreditation for people working to report that Woolworths achieved the second a result, Woolworths' and interest‑free loans. These grants and loans will help as aquaculturists in a supervisory or leadership capacity. Humpty Doo Barramundi’s
standard retail price for 2L 4PROSPERITY Australian organic fruit and vegetable growers looking to highest ranking against 19 of its retailing peers. staff will obtain valuable skills and experience that can be applied in other aquaculture and 3L own‑brand varieties expand their operations and those keen to become part While we achieved the top quartile ranking businesses elsewhere in Australia, or around the world. of the burgeoning organic industry. Farmers will also have in how we engage fairly and equitably with our was increased by 10c per litre and Woolworths contracted purchase volumes, providing them with the suppliers as measured by independent supplier Humpty Doo Barramundi also maintains professional ties with local registered trainer committed to distributing all Karen Sheldon’s ‘Accelerated Aboriginal Cooks of Excellence’ program, allowing Humpty certainty of longer‑term supply of organic fruit and vegetables surveys in 2018 ahead of our 2020 commitment, money raised from the price Doo Barramundi not only to invest in skilling and employing Indigenous people in the Woolworths achieved a second quartile ranking to Woolworths. Australian Organic Farmers, Borderland, increase to dairy farmers rapidly‑developing aquaculture industry, but also in related industries where their skills Green Camel, R&R Smith and Manna Farm are the successful in this category in 2019. across Australia. and talents will be allowed to grow. recipients of the first round of loans and grants. Our BWS business continues to maintain second METRICS 5SUSTAINABILITY Anthony Bauer, Founder of Australian Organic Farmers position in the national VOS scoring rankings. in the Lockyer Valley, said: “With the support of the We acknowledge that there is still more work Woolworths Organic Growth Fund, we’re now able to install required for BWS and Dan Murphy's to continue a humidity‑controlled storage facility that will prolong the shelf to build our relationships with our suppliers. life of our sweet potatoes and onions and enable us to work around weather events such as storms and heat waves.” Compass app
Woolworths’ suppliers can now download a newly‑developed mobile app allowing them to more closely monitor the sales performance of their products in each store. The app generates alerts if sales drop below expectations, allowing a supplier to quickly identify and address potential out‑of‑stock or merchandising issues impacting sales opportunities. Compass has the potential to help suppliers avoid lost sales while improving Meshak Retchford, Humpty Doo Barramundi. product range and availability for customers. 50 51 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Responsible IMPACT: Commitment 16 sourcing Responsible Sourcing Sustainable Development Goal Standards Embedding our program in how suppliers operate
Our Responsible Sourcing Standards In 2019, our Responsible Sourcing efforts were primarily dedicated to (the Standards) further define our communicating and implementing our program with key suppliers. We believe all workers in our global supply chains Sustainable Development Goal expectations for suppliers of goods We invested resources on supplier engagement and capacity building to help our have the right to be treated with dignity and respect. or services that are own brand, partners understand and meet our expectations. This included roadshows to launch our exclusive or fresh. Responsible Sourcing Program to more than 1,500 suppliers across 10 locations in Asia, Australia and New Zealand. Based on the feedback from suppliers in Asia, 86% agreed The Standards include 19 requirements the roadshow was relevant and helpful to their job and 90% said they would attend
HIGHLIGHTS 1PERFORMANCE relating to labour rights, fair and safe again next year. The feedback also provided insight into the types of materials and working conditions, the environment topics suppliers are interested in – this includes case studies on meeting the Standards and business integrity, as well as and video training, both of which have been considered in our program development. guidance notes. The guidance notes Key to success of the roadshows was the joint participation of the commercial, Our Responsible emphasis on Target 8.7 that promotes Principles and Rights at Work, the articulate our position in three key quality and responsible sourcing teams across the Woolworths Group businesses. “effective measures to end forced labour, United Nations Universal Declaration of areas: remediating cases of child “For me, the roadshows were a huge milestone. It was the first time we aligned as Sourcing Program modern slavery and human trafficking, Human Rights (UDHR) and the United labour, characteristics of establishing commercial, quality and responsible sourcing teams to discuss what it holistically means an effective operational‑level grievance to be a supplier to a Woolworths Group business.” Nadene Smith, Head of Quality and as well as child labour in all its forms.” Nations Global Compact (UNGC). 2PEOPLE They also support our ability to work mechanism and living wage. These Customer Care, BIG W. The Responsible Sourcing Program The policy defines our expectations is how we engage with our suppliers to collaboratively with our partners and are not audited against but articulate Further roadshows are scheduled for H1F20. proactively address human rights issues for all direct suppliers of any goods Woolworths Group's expectation promote the wellbeing of workers and or services and is a requirement for integrity in our global supply chains. where they occur in alignment with the and requirements. United Nations Guiding Principles on working with Woolworths and is We recognise this is material to Business and Human Rights (UNGPs). included in our Vendor Trading Terms. Direct suppliers are expected to stakeholders, including our team, All new suppliers are required to sign cascade these standards to their Mutual recognition time and resources on improving customers, investors and communities. an Acknowledgment Form during suppliers to drive improvement in working conditions. 3PLANET responsible practices and mitigate to improve efficiency their on‑boarding confirming their Our moderate and priority suppliers The adoption and improvement of Responsible social and environmental risk in commitment to the Policy. The Policy have selected the following third responsible sourcing practices involves is endorsed by our Chief Executive our upstream supply chain. We Many of our suppliers already working collaboratively with our Sourcing Policy party scheme: Officer and is reviewed annually recognise our suppliers may source participate in social compliance suppliers to strengthen supply chains Our policy underpins our approach to ensure we remain responsive and produce materials in countries programs for other retailers and may and improve working conditions, which to prioritising and responding to human to emerging risks. with laws less stringent than our even have their own responsible mitigates risks and builds trust with our rights and business integrity risks own standards. When this occurs, sourcing practices embedded. consumers and stakeholders. To reduce the cost and audit burden where they exist, and forms the basis suppliers are expected to uphold our 4PROSPERITY These activities contribute to Sustainable of our program. It is informed by the standards. We encourage honesty on suppliers, we now accept compliance Development Goal (SDG) 8 on Decent International Labour Organisation's and transparency to help find practical information from seven different Work and Economic Growth, with an (ILO) Declaration on Fundamental solutions rather than a zero‑tolerance third‑party schemes. These schemes approach that may inadvertently were selected based on their coverage, encourage non‑transparent practices governance, relevance to our supply and hide risks. chain and alignment to our Standards. In the Standards, we commit to an The schemes are:
n amfori BSCI 58.0% METRICS 5SUSTAINABILITY Embedding our program in 2019 Program annual review to ensure we maintain • amfori BSCI SEDEX 34.0% how our team operates highlights the right approach to meet the n expectations of our communities and • Sedex Members Ethical Trade Audit n ICTI IETP 3.0% customers. Our 2019 review includes (SMETA) We understand the important role our team plays in operationalising 1,500 Suppliers briefed further detail regarding our verification n SA8000 3.0% the Responsible Sourcing Program. Last year we held face‑to‑face • SA8000 and audit framework, clarification briefings with some 950 team members across different areas of our Team members n WRAP 2.0% 950 trained on the role of our guidance notes, • International Councils of Toy business to help them understand the program requirements. Where n Global GAP GRASP 0.2% teams engage unique or higher risk suppliers, we conducted multiple Factory audits and recognition of our extended Industries (ICTI) Ethical Toy Program 676 reviewed Supplier Speak Up program for training sessions on different responsible sourcing topics (see, for • Worldwide Responsible Accredited Reviewed farm management of grievances. example, training with our produce team page 58). Production (WRAP) 93 audits This year we will deepen our In F20, we will launch a Responsible Purchasing Practices eLearning engagement with amfori BSCI and 55 Onsite visits • GLOBAL G.A.P. Risk Assessment on module for our teams that manage commercial and supplier relationships Social Practice (GRASP) Sedex to better leverage training and and purchase orders. The purpose of the training is to support our resources for our team and suppliers. 67 Investigations • Fair Farms Initiative . teams in their understanding of purchasing behaviours in particular, the We will also assess audit results across potential impact on supply chain decision making that could result in Cases of zero By helping to reduce the number the different schemes to identify trends 4 tolerance identified 1 non‑conformances with the Responsible Sourcing Standard. of audits at the site‑level, our or issues that can be addressed across suppliers will be able to spend more industry rather than in isolation.
1 A zero tolerance results in immediate cease of trade pending an investigation. 50 51 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Responsible IMPACT: Commitment 16 sourcing Responsible Sourcing Sustainable Development Goal Standards Embedding our program in how suppliers operate
Our Responsible Sourcing Standards In 2019, our Responsible Sourcing efforts were primarily dedicated to (the Standards) further define our communicating and implementing our program with key suppliers. We believe all workers in our global supply chains Sustainable Development Goal expectations for suppliers of goods We invested resources on supplier engagement and capacity building to help our have the right to be treated with dignity and respect. or services that are own brand, partners understand and meet our expectations. This included roadshows to launch our exclusive or fresh. Responsible Sourcing Program to more than 1,500 suppliers across 10 locations in Asia, Australia and New Zealand. Based on the feedback from suppliers in Asia, 86% agreed The Standards include 19 requirements the roadshow was relevant and helpful to their job and 90% said they would attend
HIGHLIGHTS 1PERFORMANCE relating to labour rights, fair and safe again next year. The feedback also provided insight into the types of materials and working conditions, the environment topics suppliers are interested in – this includes case studies on meeting the Standards and business integrity, as well as and video training, both of which have been considered in our program development. guidance notes. The guidance notes Key to success of the roadshows was the joint participation of the commercial, Our Responsible emphasis on Target 8.7 that promotes Principles and Rights at Work, the articulate our position in three key quality and responsible sourcing teams across the Woolworths Group businesses. “effective measures to end forced labour, United Nations Universal Declaration of areas: remediating cases of child “For me, the roadshows were a huge milestone. It was the first time we aligned as Sourcing Program modern slavery and human trafficking, Human Rights (UDHR) and the United labour, characteristics of establishing commercial, quality and responsible sourcing teams to discuss what it holistically means an effective operational‑level grievance to be a supplier to a Woolworths Group business.” Nadene Smith, Head of Quality and as well as child labour in all its forms.” Nations Global Compact (UNGC). 2PEOPLE They also support our ability to work mechanism and living wage. These Customer Care, BIG W. The Responsible Sourcing Program The policy defines our expectations is how we engage with our suppliers to collaboratively with our partners and are not audited against but articulate Further roadshows are scheduled for H1F20. proactively address human rights issues for all direct suppliers of any goods Woolworths Group's expectation promote the wellbeing of workers and or services and is a requirement for integrity in our global supply chains. where they occur in alignment with the and requirements. United Nations Guiding Principles on working with Woolworths and is We recognise this is material to Business and Human Rights (UNGPs). included in our Vendor Trading Terms. Direct suppliers are expected to stakeholders, including our team, All new suppliers are required to sign cascade these standards to their Mutual recognition time and resources on improving customers, investors and communities. an Acknowledgment Form during suppliers to drive improvement in working conditions. 3PLANET responsible practices and mitigate to improve efficiency their on‑boarding confirming their Our moderate and priority suppliers The adoption and improvement of Responsible social and environmental risk in commitment to the Policy. The Policy have selected the following third responsible sourcing practices involves is endorsed by our Chief Executive our upstream supply chain. We Many of our suppliers already working collaboratively with our Sourcing Policy party scheme: Officer and is reviewed annually recognise our suppliers may source participate in social compliance suppliers to strengthen supply chains Our policy underpins our approach to ensure we remain responsive and produce materials in countries programs for other retailers and may and improve working conditions, which to prioritising and responding to human to emerging risks. with laws less stringent than our even have their own responsible mitigates risks and builds trust with our rights and business integrity risks own standards. When this occurs, sourcing practices embedded. consumers and stakeholders. To reduce the cost and audit burden where they exist, and forms the basis suppliers are expected to uphold our 4PROSPERITY These activities contribute to Sustainable of our program. It is informed by the standards. We encourage honesty on suppliers, we now accept compliance Development Goal (SDG) 8 on Decent International Labour Organisation's and transparency to help find practical information from seven different Work and Economic Growth, with an (ILO) Declaration on Fundamental solutions rather than a zero‑tolerance third‑party schemes. These schemes approach that may inadvertently were selected based on their coverage, encourage non‑transparent practices governance, relevance to our supply and hide risks. chain and alignment to our Standards. In the Standards, we commit to an The schemes are:
n amfori BSCI 58.0% METRICS 5SUSTAINABILITY Embedding our program in 2019 Program annual review to ensure we maintain • amfori BSCI SEDEX 34.0% how our team operates highlights the right approach to meet the n expectations of our communities and • Sedex Members Ethical Trade Audit n ICTI IETP 3.0% customers. Our 2019 review includes (SMETA) We understand the important role our team plays in operationalising 1,500 Suppliers briefed further detail regarding our verification n SA8000 3.0% the Responsible Sourcing Program. Last year we held face‑to‑face • SA8000 and audit framework, clarification briefings with some 950 team members across different areas of our Team members n WRAP 2.0% 950 trained on the role of our guidance notes, • International Councils of Toy business to help them understand the program requirements. Where n Global GAP GRASP 0.2% teams engage unique or higher risk suppliers, we conducted multiple Factory audits and recognition of our extended Industries (ICTI) Ethical Toy Program 676 reviewed Supplier Speak Up program for training sessions on different responsible sourcing topics (see, for • Worldwide Responsible Accredited Reviewed farm management of grievances. example, training with our produce team page 58). Production (WRAP) 93 audits This year we will deepen our In F20, we will launch a Responsible Purchasing Practices eLearning engagement with amfori BSCI and 55 Onsite visits • GLOBAL G.A.P. Risk Assessment on module for our teams that manage commercial and supplier relationships Social Practice (GRASP) Sedex to better leverage training and and purchase orders. The purpose of the training is to support our resources for our team and suppliers. 67 Investigations • Fair Farms Initiative . teams in their understanding of purchasing behaviours in particular, the We will also assess audit results across potential impact on supply chain decision making that could result in Cases of zero By helping to reduce the number the different schemes to identify trends 4 tolerance identified 1 non‑conformances with the Responsible Sourcing Standard. of audits at the site‑level, our or issues that can be addressed across suppliers will be able to spend more industry rather than in isolation.
1 A zero tolerance results in immediate cease of trade pending an investigation. 52 53 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Using a risk‑based approach F19 supplier on‑boarding Managing a zero‑tolerance or red‑rated site This year, we received four red (zero tolerance) Responsible sourcing risk segmentation Our operations and supply chains are This past year, we focused on on‑boarding our direct suppliers cases from our new routine audit process. One of complex, diverse and extend into many to our Responsible Sourcing Program. these was a general merchandise supplier with a site This segmentation logic informs the implementation of our due countries and commodities. Our risk‑based in Indonesia. The audit revealed non‑compliances, diligence framework (below). The four risk segments determine approach enables us to focus on those parts Across our priority and moderate suppliers, we received and among them zero tolerance issues related to lack of what protocols are applicable to suppliers to evidence they operate of our supply chain where intervention is assessed 676 audits. Excluding nine new factories and two transparency of wage records. The local sourcing in compliance with the Standards. Additional due diligence is applied most required and where we can have the archived sites that are yet to be audited, this represents: agent agreed to work with the site to address to suppliers where there is more risk and where Woolworths has biggest positive impact on human rights. • 409/410 or 99.8% of priority sites agreed corrective actions. However, while the site greater leverage and influence. Woolworths expects our business addressed findings related to health and safety, • 267/273 or 97.8% of moderate sites partners to adhere to ethical business they continued to deny access to payroll records. Segmented Own Brand Suppliers conduct consistent with our values. We A member of our Responsible Sourcing team has visited the As a result we did not commence production at this recognise this may be a new requirement remaining priority factory and the site and will undergo a full audit site and the sourcing agent found a new location and may be challenging for some of our in H1F20. The six remaining moderate sites have audits scheduled. to produce the goods that met both our quality and
HIGHLIGHTS 1PERFORMANCE suppliers. Our program is designed to be responsible sourcing standards. collaborative and supportive. We engage 656 or 90.61% minimum risk suppliers completed their self assessment questionnaire. FoodCo achieved a completion rate n Minimum 724 suppliers throughout this process by offering a series of information sessions, of 98.41%. The results of this analysis will inform our minimum n Moderate 274 guidance documents, training and capacity risk supplier engagement this year. development opportunities. n Priority 420 333 or 79% of specialised suppliers, representing 97% of Driving improvement The products we sell are sourced both purchases, have selected their mutual recognition scheme (see n Specialised 423 locally and through a complex global page 59 for more information on what this means for our fresh through site visits in China 2PEOPLE supply chain extending to some 50 produce suppliers). countries, including China, Bangladesh As a retailer sourcing a range of products We aim to integrate 100% of our direct suppliers into our and Australia. Each of these products from China including apparel, homewares Responsible Sourcing Program by the first half of 2020. and countries presents a different set of and seasonal goods, we are actively human rights challenges. Woolworths uses What that means working to improve our oversight of supply Due Diligence Framework a risk‑based approach to define our program chain risks in China. Due to the high level ALL MINIMUM MODERATE PRIORITY SPECIALISED requirements for suppliers and to ensure the Once our team receives an audit from one of the mutually of country and product risk, factories in appropriate level of due diligence is in place recognised schemes, we then grade this against the Responsible China are subject to the full scope of our 3PLANET to best prevent and respond to these risks. Sourcing Standards. There are four possible grading outcomes: responsible sourcing due diligence. Those 8. Annual This approach has been designed together Unannounced zero‑tolerance (red), critical (purple), moderate (amber) and minor that are priority risk are further in scope with ELEVATE, a risk and sustainability firm Site Visit1 (green). A zero‑tolerance results in immediate cease of trade of site visits. During the reporting period, based in Asia. pending an investigation, while those with a critical outcome are we conducted 26 site visits in China, of 7. Implementing conditionally approved to trade with agreed corrective actions. a Corrective Our methodology for risk assessment which 23 of these factories were recorded Action Plan is based on country risk using leading as requiring significant improvement. indicators, such as the World Bank What the data tells us Visits were a combination of announced, Sharing Audit 4PROSPERITY 6. Governance Indicators, the Global Slavery Of the 676 audits graded this year for moderate and priority Report Index and the Transparency International for new sites, and semi‑ and un‑announced suppliers, we had the following outcomes: visits for existing Priority suppliers. Mutual Recognition Corruption Perceptions Index. We then layer 5. We identified monthly overtime exceeding Audit Schemes additional leverage information based on • Red = 1% a combination of the length of our business the requirement of China Labour Law, and • Purple = 32% 4. Supplier relationship and historical purchase order situations where workers were frequently Self‑Assessment data. The result of this process enables • Amber = 61% not covered by social insurance. Some Training and us to “segment” suppliers into four workers were found not wearing protective 3. • Green = 6% Education groups: priority, moderate, specialised and equipment, and there were instances of METRICS 5SUSTAINABILITY minimum. Generally: unsafe chemical storage. 2. Responsible We recognised that many suppliers need support to achieve Sourcing Standards • Minimum risk suppliers are manufactures the expected standards, and ceasing support can have negative While these practices fall short of our from Australia, New Zealand and Europe consequences on the suppliers' workers. In our Responsible Standards, we have worked with suppliers 1. Responsible Sourcing Policy we commit to working with suppliers to improve Sourcing Policy • Moderate risk captures suppliers in Asia to remedy these issues. Suppliers responded outside of priority risk countries and their standards, and so we try not to cease supply with those with a positively to our input and agreed to conduct red or purple rating, but to put structured compliance programs in corrective actions. By June 2019, 21 of the 1 Selected based on risk assessment. some European countries place to secure improvement. 23 factories had closed their corrective • Priority risk suppliers are found in China, actions. Based on our learnings, we have F20 risk review Bangladesh and Thailand In F20, we will continue to work with those suppliers graded “red” developed standard remediation protocols and “purple” to close non‑conformances and maintain compliance for situations of overtime hours, social In 2020, we will update our supplier segmentation analysis with • Specialised grapples with unique to the Standards. insurance and worker health and safety. additional emphasis on forced labour and commodities, which risks to migrant workers in Australian In F20, these will guide both our internal will include some tier two suppliers. This will help us further horticulture. teams and suppliers on what to do when assess which geographies and supply chains are at higher risk Those suppliers in the priority and these non‑conformances arise. They will of forced labour and help us prioritise efforts ahead of our first specialised group are engaged with deeper also form the basis of our training at our disclosure under the Australian Modern Slavery Act. and more urgent training, investigation and remediation protocols. annual supplier roadshows. 52 53 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Using a risk‑based approach F19 supplier on‑boarding Managing a zero‑tolerance or red‑rated site This year, we received four red (zero tolerance) Responsible sourcing risk segmentation Our operations and supply chains are This past year, we focused on on‑boarding our direct suppliers cases from our new routine audit process. One of complex, diverse and extend into many to our Responsible Sourcing Program. these was a general merchandise supplier with a site This segmentation logic informs the implementation of our due countries and commodities. Our risk‑based in Indonesia. The audit revealed non‑compliances, diligence framework (below). The four risk segments determine approach enables us to focus on those parts Across our priority and moderate suppliers, we received and among them zero tolerance issues related to lack of what protocols are applicable to suppliers to evidence they operate of our supply chain where intervention is assessed 676 audits. Excluding nine new factories and two transparency of wage records. The local sourcing in compliance with the Standards. Additional due diligence is applied most required and where we can have the archived sites that are yet to be audited, this represents: agent agreed to work with the site to address to suppliers where there is more risk and where Woolworths has biggest positive impact on human rights. • 409/410 or 99.8% of priority sites agreed corrective actions. However, while the site greater leverage and influence. Woolworths expects our business addressed findings related to health and safety, • 267/273 or 97.8% of moderate sites partners to adhere to ethical business they continued to deny access to payroll records. Segmented Own Brand Suppliers conduct consistent with our values. We A member of our Responsible Sourcing team has visited the As a result we did not commence production at this recognise this may be a new requirement remaining priority factory and the site and will undergo a full audit site and the sourcing agent found a new location and may be challenging for some of our in H1F20. The six remaining moderate sites have audits scheduled. to produce the goods that met both our quality and
HIGHLIGHTS 1PERFORMANCE suppliers. Our program is designed to be responsible sourcing standards. collaborative and supportive. We engage 656 or 90.61% minimum risk suppliers completed their self assessment questionnaire. FoodCo achieved a completion rate n Minimum 724 suppliers throughout this process by offering a series of information sessions, of 98.41%. The results of this analysis will inform our minimum n Moderate 274 guidance documents, training and capacity risk supplier engagement this year. development opportunities. n Priority 420 333 or 79% of specialised suppliers, representing 97% of Driving improvement The products we sell are sourced both purchases, have selected their mutual recognition scheme (see n Specialised 423 locally and through a complex global page 59 for more information on what this means for our fresh through site visits in China 2PEOPLE supply chain extending to some 50 produce suppliers). countries, including China, Bangladesh As a retailer sourcing a range of products We aim to integrate 100% of our direct suppliers into our and Australia. Each of these products from China including apparel, homewares Responsible Sourcing Program by the first half of 2020. and countries presents a different set of and seasonal goods, we are actively human rights challenges. Woolworths uses What that means working to improve our oversight of supply Due Diligence Framework a risk‑based approach to define our program chain risks in China. Due to the high level ALL MINIMUM MODERATE PRIORITY SPECIALISED requirements for suppliers and to ensure the Once our team receives an audit from one of the mutually of country and product risk, factories in appropriate level of due diligence is in place recognised schemes, we then grade this against the Responsible China are subject to the full scope of our 3PLANET to best prevent and respond to these risks. Sourcing Standards. There are four possible grading outcomes: responsible sourcing due diligence. Those 8. Annual This approach has been designed together Unannounced zero‑tolerance (red), critical (purple), moderate (amber) and minor that are priority risk are further in scope with ELEVATE, a risk and sustainability firm Site Visit1 (green). A zero‑tolerance results in immediate cease of trade of site visits. During the reporting period, based in Asia. pending an investigation, while those with a critical outcome are we conducted 26 site visits in China, of 7. Implementing conditionally approved to trade with agreed corrective actions. a Corrective Our methodology for risk assessment which 23 of these factories were recorded Action Plan is based on country risk using leading as requiring significant improvement. indicators, such as the World Bank What the data tells us Visits were a combination of announced, Sharing Audit 4PROSPERITY 6. Governance Indicators, the Global Slavery Of the 676 audits graded this year for moderate and priority Report Index and the Transparency International for new sites, and semi‑ and un‑announced suppliers, we had the following outcomes: visits for existing Priority suppliers. Mutual Recognition Corruption Perceptions Index. We then layer 5. We identified monthly overtime exceeding Audit Schemes additional leverage information based on • Red = 1% a combination of the length of our business the requirement of China Labour Law, and • Purple = 32% 4. Supplier relationship and historical purchase order situations where workers were frequently Self‑Assessment data. The result of this process enables • Amber = 61% not covered by social insurance. Some Training and us to “segment” suppliers into four workers were found not wearing protective 3. • Green = 6% Education groups: priority, moderate, specialised and equipment, and there were instances of METRICS 5SUSTAINABILITY minimum. Generally: unsafe chemical storage. 2. Responsible We recognised that many suppliers need support to achieve Sourcing Standards • Minimum risk suppliers are manufactures the expected standards, and ceasing support can have negative While these practices fall short of our from Australia, New Zealand and Europe consequences on the suppliers' workers. In our Responsible Standards, we have worked with suppliers 1. Responsible Sourcing Policy we commit to working with suppliers to improve Sourcing Policy • Moderate risk captures suppliers in Asia to remedy these issues. Suppliers responded outside of priority risk countries and their standards, and so we try not to cease supply with those with a positively to our input and agreed to conduct red or purple rating, but to put structured compliance programs in corrective actions. By June 2019, 21 of the 1 Selected based on risk assessment. some European countries place to secure improvement. 23 factories had closed their corrective • Priority risk suppliers are found in China, actions. Based on our learnings, we have F20 risk review Bangladesh and Thailand In F20, we will continue to work with those suppliers graded “red” developed standard remediation protocols and “purple” to close non‑conformances and maintain compliance for situations of overtime hours, social In 2020, we will update our supplier segmentation analysis with • Specialised grapples with unique to the Standards. insurance and worker health and safety. additional emphasis on forced labour and commodities, which risks to migrant workers in Australian In F20, these will guide both our internal will include some tier two suppliers. This will help us further horticulture. teams and suppliers on what to do when assess which geographies and supply chains are at higher risk Those suppliers in the priority and these non‑conformances arise. They will of forced labour and help us prioritise efforts ahead of our first specialised group are engaged with deeper also form the basis of our training at our disclosure under the Australian Modern Slavery Act. and more urgent training, investigation and remediation protocols. annual supplier roadshows. 54 55 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Improving our internal three directors and an independent In 2020, we will continue to review Strengthening Chair to review the effectiveness of our procedures and engage internal governance program our Responsible Sourcing Program stakeholders to embed and improve Investigating claims from a whistleblower supplier capacity and the company’s human rights due responsible sourcing traction within the Woolworths Group of businesses. to improve This year, we took a critical look at diligence. The group meets at least In July 2018, a whistleblower identified unauthorised subcontracting with a Woolworths the governance of our Responsible four times a year and are provided general merchandise supplier based in China. Aligned with our grievance process, site‑level grievance Sourcing program. As a result, we quarterly progress reports. Strengthening grievance we initiated an investigations decision group, comprised of representatives from made improvements to help embed it • SteerCo: Steer Co is our Executive legal, quality, commercial and responsible sourcing teams. The investigation was mechanisms within our operations through improved Steering Committee that provides mechanisms conducted across suppliers of the product within the region to determine if there were procedures and Board oversight that strategic direction of the Responsible any deviations from the Standards. Various aspects were examined including factory Grievance mechanisms are only strengthens our accountability. Sourcing program and approves This year we made progress on our safety, age and treatment of workers, and proper payment of wages. effective in serving their purpose commitment to improve our grievance Embedding the Responsible Sourcing policies and commitments. It includes The initial investigation identified a number of issues, including validating the claim if they are trusted by workers. mechanism and develop tools for Program within our business extends representatives for each business of unauthorised subcontracting and uncovering the underpayment of overtime suppliers to support the development wages. Working with Woolworths and ELEVATE, suppliers engaged with the relevant This year we developed resources beyond supplier engagement. It involves divisions who are accountable for subcontractors regarding the payment of workers, confirmed the appropriate and tools to improve supplier Responsible Sourcing Program of effective site‑level processes. HIGHLIGHTS 1PERFORMANCE making sure we have defined roles and awareness and understanding implementation. Based on the review payment standards and secured repayments for affected individuals. responsibilities and procedures to govern In February, we re‑launched Speak of what makes a grievance new members will join SteerCo our program at every level of our Up across the Group. Supplier Speak Three suppliers recognised they needed to improve their processes to better mechanism effective. We also for F20: our General Manager for align with the Standards, and agree to a year‑long factory development plan. business from buying teams to the Board. Up, governed by the Supplier Speak determined a set of concrete FoodCo, the General Counsel for Up Policy, is an independent and Key milestones to date include: This year we embedded responsible actions for implementation: Woolworths Supermarkets and confidential platform available to • Improved time keeping systems resulting in accurate and complete time records sourcing obligations into our Operational the General Manager for Group suppliers and workers in our global • We require all our moderate Compliance Plans (OCPs) for Procurement. SteerCo meets every supply chain. The expanded service can • Implementation of electronic time tracking systems to record worker’s hours and priority suppliers
and pay 2PEOPLE Woolworths Supermarkets, FoodCo & month and relevant outcomes be accessed from our major sourcing to complete a Grievance Metro, Big W and Culture and People, are communicated to the Board countries, accommodates all commonly • Improved worker induction processes, including a process for age verification Mechanism Effectiveness to enable oversight of the controls and via SusCo. spoken languages, and can be accessed during hiring, to manage risks of child labour and juvenile workers. eLearning module in H1F20. monitoring in place to manage these • Working Group: The Responsible online or by phone. We recognise these suppliers obligations. Further, we completed Beyond continuous improvement for suppliers, we also looked internally at how Sourcing Working Group is In F20, we will disseminate the Speak our purchasing practices and processes may have contributed to this situation. have higher risks, which is a third‑party review of our defined comprised of individuals from each Up Policy and web‑intake form in The analysis found: why it is critical workers have processes that identified how we can business division with day‑to‑day languages of key sourcing countries. access to effective grievance to improve our internal ways of working • Our sourcing team had limited visibility over factory capacity; and responsibility for managing the raise their concerns for review We will continue to work with suppliers 3PLANET to better manage the program. Responsible Sourcing program based to cascade information posters and • We did not have a clearly defined process for managing subcontracting risks. without fear of retaliation to This review led to enhancements on defined policies and procedures. information cards to help make workers make workplaces safer and to our Responsible Sourcing Based on these findings we have worked hard to improve our systems and mitigate This group meets monthly or more aware of the Speak Up channel. At more engaging for all workers. governance based on varying levels future exposure. In June 2019, our general merchandise team launched a new product often if necessary on specific work the end of F20 we will review the development process that includes factory capacity assessments as part of their of responsibility and implementation: • Since the module was shared items. The group maintains regular effectiveness of this service using the supplier desktop review and subcontracting information on product specification briefs with suppliers in June 2019, day‑to‑day contact on the roll‑out • SusCo: SusCo is the Board effective grievance mechanism criteria Our new process for subcontracting has also been adopted across the Group. In H1F20, 18% of all mandatory suppliers Sustainability Committee. It comprises and status of our program. outlined by the UNGPs. we will focus on training our team and suppliers on our requirements. We will continue completed the module. Our
4PROSPERITY learn from our experiences, using data and program insights to drive improvements. operations team will engage with remaining suppliers directly to ensure all required suppliers complete the module Investigating grievances raised by workers by the of 2019.
This year, we conducted 67 investigations regarding underpaid. One sub‑contractor was referred to the FWO. More than half of the participants non‑compliance in our supply chain. This brings the total repayments in Australia by labour who completed the module
METRICS 5SUSTAINABILITY contractors over the past 18 months to AUD$225,000. In to date also provided feedback. This year we launched and tested our internal processes China, we secured the repayment of US$24,695 in wages This feedback helps us evaluate for managing worker grievances in our global supply for 55 workers by their employers (see more on page 55). the effectiveness of the training chain. Grievances have been raised via a number of and improve future capacity channels including Supplier Speak Up, information shared Our approach in this area has been informed by the Speak Up is a service operated by an independent building efforts. We will continue directly with our team, worker representatives, the Fair work of our Group facilities team that has developed an to monitor the effectiveness of Work Ombudsman (FWO) and civil society organisations. effective grievance process in our cleaning and trolley third party that gives team members, suppliers our efforts through onsite visits Every claim is reviewed based on the level of information collection supply chain. In response, one worker shared and their workers the opportunity to report issues following supplier and worker this feedback: received to determine if further investigation is required. confidentially and anonymously. surveys at select sites. Further Based on the findings of the investigation, we work with "I get this opportunity to thank the entire Woolworths Speak insight on the outcomes of these our suppliers to make sure grievances are remedied in Up team for their kindness and commitment for this matter. engagements will be reported alignment with our Standards. This may mean working in 2020. As an international student, I (sic) definitely thankful for Australia: 1800 772 173 with our direct suppliers to provide remedy at the second Woolworths for establishing independent and progressive tier or to workers via labour providers. institute such as Speak Up. When I talked this matter, I felt Of the 67 investigations, 52 cases have been closed. that I am not alone to face this issue. Seeking justice is an In Australia, we facilitated AUD$198,720 in repayments expectation of every human being and I was able to see justice woolworthsspeakup.ethicspoint.com by labour contractors to 35 workers that had been because the Speak Up team.” Anonymous Reporter 54 55 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Improving our internal three directors and an independent In 2020, we will continue to review Strengthening Chair to review the effectiveness of our procedures and engage internal governance program our Responsible Sourcing Program stakeholders to embed and improve Investigating claims from a whistleblower supplier capacity and the company’s human rights due responsible sourcing traction within the Woolworths Group of businesses. to improve This year, we took a critical look at diligence. The group meets at least In July 2018, a whistleblower identified unauthorised subcontracting with a Woolworths the governance of our Responsible four times a year and are provided general merchandise supplier based in China. Aligned with our grievance process, site‑level grievance Sourcing program. As a result, we quarterly progress reports. Strengthening grievance we initiated an investigations decision group, comprised of representatives from made improvements to help embed it • SteerCo: Steer Co is our Executive legal, quality, commercial and responsible sourcing teams. The investigation was mechanisms within our operations through improved Steering Committee that provides mechanisms conducted across suppliers of the product within the region to determine if there were procedures and Board oversight that strategic direction of the Responsible any deviations from the Standards. Various aspects were examined including factory Grievance mechanisms are only strengthens our accountability. Sourcing program and approves This year we made progress on our safety, age and treatment of workers, and proper payment of wages. effective in serving their purpose commitment to improve our grievance Embedding the Responsible Sourcing policies and commitments. It includes The initial investigation identified a number of issues, including validating the claim if they are trusted by workers. mechanism and develop tools for Program within our business extends representatives for each business of unauthorised subcontracting and uncovering the underpayment of overtime suppliers to support the development wages. Working with Woolworths and ELEVATE, suppliers engaged with the relevant This year we developed resources beyond supplier engagement. It involves divisions who are accountable for subcontractors regarding the payment of workers, confirmed the appropriate and tools to improve supplier Responsible Sourcing Program of effective site‑level processes. HIGHLIGHTS 1PERFORMANCE making sure we have defined roles and awareness and understanding implementation. Based on the review payment standards and secured repayments for affected individuals. responsibilities and procedures to govern In February, we re‑launched Speak of what makes a grievance new members will join SteerCo our program at every level of our Up across the Group. Supplier Speak Three suppliers recognised they needed to improve their processes to better mechanism effective. We also for F20: our General Manager for align with the Standards, and agree to a year‑long factory development plan. business from buying teams to the Board. Up, governed by the Supplier Speak determined a set of concrete FoodCo, the General Counsel for Up Policy, is an independent and Key milestones to date include: This year we embedded responsible actions for implementation: Woolworths Supermarkets and confidential platform available to • Improved time keeping systems resulting in accurate and complete time records sourcing obligations into our Operational the General Manager for Group suppliers and workers in our global • We require all our moderate Compliance Plans (OCPs) for Procurement. SteerCo meets every supply chain. The expanded service can • Implementation of electronic time tracking systems to record worker’s hours and priority suppliers
and pay 2PEOPLE Woolworths Supermarkets, FoodCo & month and relevant outcomes be accessed from our major sourcing to complete a Grievance Metro, Big W and Culture and People, are communicated to the Board countries, accommodates all commonly • Improved worker induction processes, including a process for age verification Mechanism Effectiveness to enable oversight of the controls and via SusCo. spoken languages, and can be accessed during hiring, to manage risks of child labour and juvenile workers. eLearning module in H1F20. monitoring in place to manage these • Working Group: The Responsible online or by phone. We recognise these suppliers obligations. Further, we completed Beyond continuous improvement for suppliers, we also looked internally at how Sourcing Working Group is In F20, we will disseminate the Speak our purchasing practices and processes may have contributed to this situation. have higher risks, which is a third‑party review of our defined comprised of individuals from each Up Policy and web‑intake form in The analysis found: why it is critical workers have processes that identified how we can business division with day‑to‑day languages of key sourcing countries. access to effective grievance to improve our internal ways of working • Our sourcing team had limited visibility over factory capacity; and responsibility for managing the raise their concerns for review We will continue to work with suppliers 3PLANET to better manage the program. Responsible Sourcing program based to cascade information posters and • We did not have a clearly defined process for managing subcontracting risks. without fear of retaliation to This review led to enhancements on defined policies and procedures. information cards to help make workers make workplaces safer and to our Responsible Sourcing Based on these findings we have worked hard to improve our systems and mitigate This group meets monthly or more aware of the Speak Up channel. At more engaging for all workers. governance based on varying levels future exposure. In June 2019, our general merchandise team launched a new product often if necessary on specific work the end of F20 we will review the development process that includes factory capacity assessments as part of their of responsibility and implementation: • Since the module was shared items. The group maintains regular effectiveness of this service using the supplier desktop review and subcontracting information on product specification briefs with suppliers in June 2019, day‑to‑day contact on the roll‑out • SusCo: SusCo is the Board effective grievance mechanism criteria Our new process for subcontracting has also been adopted across the Group. In H1F20, 18% of all mandatory suppliers Sustainability Committee. It comprises and status of our program. outlined by the UNGPs. we will focus on training our team and suppliers on our requirements. We will continue completed the module. Our
4PROSPERITY learn from our experiences, using data and program insights to drive improvements. operations team will engage with remaining suppliers directly to ensure all required suppliers complete the module Investigating grievances raised by workers by the of 2019.
This year, we conducted 67 investigations regarding underpaid. One sub‑contractor was referred to the FWO. More than half of the participants non‑compliance in our supply chain. This brings the total repayments in Australia by labour who completed the module
METRICS 5SUSTAINABILITY contractors over the past 18 months to AUD$225,000. In to date also provided feedback. This year we launched and tested our internal processes China, we secured the repayment of US$24,695 in wages This feedback helps us evaluate for managing worker grievances in our global supply for 55 workers by their employers (see more on page 55). the effectiveness of the training chain. Grievances have been raised via a number of and improve future capacity channels including Supplier Speak Up, information shared Our approach in this area has been informed by the Speak Up is a service operated by an independent building efforts. We will continue directly with our team, worker representatives, the Fair work of our Group facilities team that has developed an to monitor the effectiveness of Work Ombudsman (FWO) and civil society organisations. effective grievance process in our cleaning and trolley third party that gives team members, suppliers our efforts through onsite visits Every claim is reviewed based on the level of information collection supply chain. In response, one worker shared and their workers the opportunity to report issues following supplier and worker this feedback: received to determine if further investigation is required. confidentially and anonymously. surveys at select sites. Further Based on the findings of the investigation, we work with "I get this opportunity to thank the entire Woolworths Speak insight on the outcomes of these our suppliers to make sure grievances are remedied in Up team for their kindness and commitment for this matter. engagements will be reported alignment with our Standards. This may mean working in 2020. As an international student, I (sic) definitely thankful for Australia: 1800 772 173 with our direct suppliers to provide remedy at the second Woolworths for establishing independent and progressive tier or to workers via labour providers. institute such as Speak Up. When I talked this matter, I felt Of the 67 investigations, 52 cases have been closed. that I am not alone to face this issue. Seeking justice is an In Australia, we facilitated AUD$198,720 in repayments expectation of every human being and I was able to see justice woolworthsspeakup.ethicspoint.com by labour contractors to 35 workers that had been because the Speak Up team.” Anonymous Reporter 56 57 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Retail roundtables in Australia: driving collaboration on the Australian Modern Shobola: Empowering women Cleaning Slavery Act in our Bangladesh supply chain Accountability and responsible Framework This year, BIG W was selected • Have an indirect impact to recruitment Cleaning Accountability by amfori BSCI and the CSR 2,500+ women workers through Framework (CAF) is HIGHLIGHTS 1PERFORMANCE Centre Bangladesh to participate a buddy system; and a multi‑stakeholder initiative As Australia's leading in a women’s empowerment • Create gender‑based awareness seeking to improve labour food retailer, we are program, Shobola. Shobola, in 6,500 households. standards and cleaning quality taking tangible action to meaning independent and across Australia. It promotes eliminate modern slavery empowered woman in Bengali, The first phase of the project cleaners’ rights, transparent in Australia’s horticulture is a two‑year project designed for from January – June 2019 and accountable cleaning supply chain. The female workers in Bangladesh’s included the factory selection roundtables support our supply chains, sustainable
ready‑made garment (RMG) and a baseline assessment at 2PEOPLE business models for the sector collective engagement to sector to consider pathways each site. Key findings from the and responsible contracting address this issue by: into supervisory positions. baseline assessment highlight practices. CAF does this by A BIG W supplier was one of barriers to leadership for female • Building a common way of the CAF Certification six RMG factories selected for workers including: industry‑wide Scheme, which recognises the pilot program, which has understanding of • A lack of confidence, often and rewards ethical practices coverage at sites both in Dhaka responsible recruitment driven by a limited education in the cleaning industry and and Chittagong. principles and practices or leadership experience; and uniquely places cleaners at
3PLANET as well as the issues and In Bangladesh, women are key the heart of the certification • Concerns around managing their impacts on different to the growth of the economy as process. CAF has been, and supervisory work and stakeholder groups the government seeks to expand continues to be, developed by family commitments. • Identifying the challenges the apparel industry. While the a multitude of industry actors, to implement these ratio of women in the industry is Informed by these findings in F20, meaning this is a scheme that Retail Roundtables Working in partnership principles and share high, they disproportionately hold the project will both development is fit for purpose to drive higher Social and labour conditions, including examples of how others operator positions in factories, with and deliver training with a focus on: standards across the board. Human rights and responsible sourcing working hours, wages, benefits and are overcoming them low representation in supervisor 4PROSPERITY • Awareness raising on CAF works with independent challenges do not occur in isolation. general well‑being of workers in in different regions and or management roles. The gender‑equality and auditors, the cleaners' union They are embedded in complex supply chains, continue to pose an parts of the Australian Shobola Project seeks to address sexual‑harassment in United Voice, and cleaners socio‑economic systems of migration, ongoing challenge for retailers locally supply chain the structural barriers to women gender, under‑employment, weak rule the workplace themselves, to verify that and globally. Solutions to these issues • Exploring how retailers in leadership positions by: the ‘CAF Standards’ – as of law and low wages. require system‑wide collaboration and • Communication skills for and brands can encourage • Sensitising top – and mid‑level they relate to matters such Where possible, we seek to work in cannot be solved by one actor alone. management and workers suppliers and labour hire management to gender as wages and conditions, tax multi‑stakeholder partnerships that both We believe there is tremendous value companies to adopt better equality and gender‑based and super and responsible scale impact and promote a coordinated • Leadership training METRICS 5SUSTAINABILITY for shared learning and collaboration. practices in alignment harassment; and contracting – are being met approach to tackling complex To support this objective Woolworths with national and • Financial management at an individual building. CAF systemic issues. international and reduce • Empowering female workers Group initiated a set of Retail Training will be rolled out in from has so far developed a ‘3 Star This year, we achieved this through the modern slavery risks. through leadership and capacity Roundtables with our peers and partners October 2019 to February 2020. Standard’ of certification, and continuation of our Retail Roundtables, building training. in Australia and Asia. The roundtables Convening stakeholders on By July 2020 the CSR Centre will is currently developing 4 and becoming a founding retailer of the were initiated in 2018 to promote this topic allows us to leverage The program is expected to benefit use insights from the training 5 Star Standards. Cleaning Accountability Framework stakeholder dialogue on responsible our collective influence and both individuals and factories, and to develop a handbook Woolworths will invest and Fair Farms Initiative in Australia, sourcing challenges facing our industry. scale to improve conditions in turn demonstrating a more on social dialogue and rollout $100,000 to assist CAF to and participation in amfori’s Shobola To date these roundtables have brought for temporary foreign labour. gender‑inclusive operating model in factories. Social dialogue is develop a retail store‑specific women’s empowerment project together more than 30 retail peers, This starts with building for the ready‑made garment a process of consultation or certification scheme over the in Bangladesh. business associations, NGOs and awareness amongst suppliers industry. The programs aims to: negotiation between different next 12 months and will be We further participated in briefing third‑party organisations. and other stakeholders. social actors, for example workers • Train at least 80 working closely with CAF to sessions by NGOs and academics, Two roundtables took place in Australia, We are committed to holding and employers, usually to reach supervisors and 800 female build effective preventive and were active members of the UN Global with a focus on temporary labour in the additional roundtables on agreement on common goals factory workers; detective control mechanisms Compact Network Australia’s Modern Australian horticulture supply chain. this topic to further drive or activities. to drive higher standards in our Slavery Community of Practice, and The third roundtable was hosted in Hong awareness and collaboration industry as a whole. joined government consultations on Kong with a focus on transparency, wages across sectors. the Australian Modern Slavery Act. and working hours in Asian supply chains. 56 57 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Retail roundtables in Australia: driving collaboration on the Australian Modern Shobola: Empowering women Cleaning Slavery Act in our Bangladesh supply chain Accountability and responsible Framework This year, BIG W was selected • Have an indirect impact to recruitment Cleaning Accountability by amfori BSCI and the CSR 2,500+ women workers through Framework (CAF) is HIGHLIGHTS 1PERFORMANCE Centre Bangladesh to participate a buddy system; and a multi‑stakeholder initiative As Australia's leading in a women’s empowerment • Create gender‑based awareness seeking to improve labour food retailer, we are program, Shobola. Shobola, in 6,500 households. standards and cleaning quality taking tangible action to meaning independent and across Australia. It promotes eliminate modern slavery empowered woman in Bengali, The first phase of the project cleaners’ rights, transparent in Australia’s horticulture is a two‑year project designed for from January – June 2019 and accountable cleaning supply chain. The female workers in Bangladesh’s included the factory selection roundtables support our supply chains, sustainable
ready‑made garment (RMG) and a baseline assessment at 2PEOPLE business models for the sector collective engagement to sector to consider pathways each site. Key findings from the and responsible contracting address this issue by: into supervisory positions. baseline assessment highlight practices. CAF does this by A BIG W supplier was one of barriers to leadership for female • Building a common way of the CAF Certification six RMG factories selected for workers including: industry‑wide Scheme, which recognises the pilot program, which has understanding of • A lack of confidence, often and rewards ethical practices coverage at sites both in Dhaka responsible recruitment driven by a limited education in the cleaning industry and and Chittagong. principles and practices or leadership experience; and uniquely places cleaners at
3PLANET as well as the issues and In Bangladesh, women are key the heart of the certification • Concerns around managing their impacts on different to the growth of the economy as process. CAF has been, and supervisory work and stakeholder groups the government seeks to expand continues to be, developed by family commitments. • Identifying the challenges the apparel industry. While the a multitude of industry actors, to implement these ratio of women in the industry is Informed by these findings in F20, meaning this is a scheme that Retail Roundtables Working in partnership principles and share high, they disproportionately hold the project will both development is fit for purpose to drive higher Social and labour conditions, including examples of how others operator positions in factories, with and deliver training with a focus on: standards across the board. Human rights and responsible sourcing working hours, wages, benefits and are overcoming them low representation in supervisor 4PROSPERITY • Awareness raising on CAF works with independent challenges do not occur in isolation. general well‑being of workers in in different regions and or management roles. The gender‑equality and auditors, the cleaners' union They are embedded in complex supply chains, continue to pose an parts of the Australian Shobola Project seeks to address sexual‑harassment in United Voice, and cleaners socio‑economic systems of migration, ongoing challenge for retailers locally supply chain the structural barriers to women gender, under‑employment, weak rule the workplace themselves, to verify that and globally. Solutions to these issues • Exploring how retailers in leadership positions by: the ‘CAF Standards’ – as of law and low wages. require system‑wide collaboration and • Communication skills for and brands can encourage • Sensitising top – and mid‑level they relate to matters such Where possible, we seek to work in cannot be solved by one actor alone. management and workers suppliers and labour hire management to gender as wages and conditions, tax multi‑stakeholder partnerships that both We believe there is tremendous value companies to adopt better equality and gender‑based and super and responsible scale impact and promote a coordinated • Leadership training METRICS 5SUSTAINABILITY for shared learning and collaboration. practices in alignment harassment; and contracting – are being met approach to tackling complex To support this objective Woolworths with national and • Financial management at an individual building. CAF systemic issues. international and reduce • Empowering female workers Group initiated a set of Retail Training will be rolled out in from has so far developed a ‘3 Star This year, we achieved this through the modern slavery risks. through leadership and capacity Roundtables with our peers and partners October 2019 to February 2020. Standard’ of certification, and continuation of our Retail Roundtables, building training. in Australia and Asia. The roundtables Convening stakeholders on By July 2020 the CSR Centre will is currently developing 4 and becoming a founding retailer of the were initiated in 2018 to promote this topic allows us to leverage The program is expected to benefit use insights from the training 5 Star Standards. Cleaning Accountability Framework stakeholder dialogue on responsible our collective influence and both individuals and factories, and to develop a handbook Woolworths will invest and Fair Farms Initiative in Australia, sourcing challenges facing our industry. scale to improve conditions in turn demonstrating a more on social dialogue and rollout $100,000 to assist CAF to and participation in amfori’s Shobola To date these roundtables have brought for temporary foreign labour. gender‑inclusive operating model in factories. Social dialogue is develop a retail store‑specific women’s empowerment project together more than 30 retail peers, This starts with building for the ready‑made garment a process of consultation or certification scheme over the in Bangladesh. business associations, NGOs and awareness amongst suppliers industry. The programs aims to: negotiation between different next 12 months and will be We further participated in briefing third‑party organisations. and other stakeholders. social actors, for example workers • Train at least 80 working closely with CAF to sessions by NGOs and academics, Two roundtables took place in Australia, We are committed to holding and employers, usually to reach supervisors and 800 female build effective preventive and were active members of the UN Global with a focus on temporary labour in the additional roundtables on agreement on common goals factory workers; detective control mechanisms Compact Network Australia’s Modern Australian horticulture supply chain. this topic to further drive or activities. to drive higher standards in our Slavery Community of Practice, and The third roundtable was hosted in Hong awareness and collaboration industry as a whole. joined government consultations on Kong with a focus on transparency, wages across sectors. the Australian Modern Slavery Act. and working hours in Asian supply chains. 58 59 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Launching responsible Our framework for low risk, 44 were grade amber or medium • Management systems to verify rights sourcing in our Australian risk and 17 were graded purple or high to work managing Responsible risk. There were no ‘red’ or zero tolerance • Worker facilities (including any cases identified. Collectively, 165 of onsite accommodation) Sourcing risk findings have been addressed and we are horticultural supply chain • Operational level working to close the remaining 13 issues. grievance mechanism. in horticulture The majority (45%) of non‑compliances related to health and safety, followed This year we piloted our site visits Our approach to managing risk in our by age verification process and wages methodology. To test our process horticulture supply chain aligns to our and benefits. and assumptions, we piloted across Responsible Sourcing framework; we a number of product categories (berries, For those suppliers that are yet to mutually recognise three third party bananas and brassica), higher risk This past year we have made significant • Training and awareness raising Our entire Produce team has attended complete an audit, Woolworths has schemes to demonstrate compliance regions (Queensland, Victoria and progress towards embedding among our produce team members two formal briefing sessions, the taken a risk based approach to prioritise to our Standards. These are Sedex, Fair Western Australia), and operation responsible sourcing in our fresh and direct suppliers first at the launch of the Responsible audit requests. We consider four Farms and GlobalGAP G.R.A.S.P. types (packing warehouse, farms key factors: produce supply chain. Knowing the • Operationalising our framework for Sourcing Program and the second at the Given the maturity of the different only, joint farms and packing sheds)
HIGHLIGHTS 1PERFORMANCE unique vulnerabilities faced by migrant managing responsible sourcing risk launch of the Requirements for Labour schemes and our suppliers’ varying • Commodity using a combination of approaches workers in Australian horticulture, in horticulture Providers. At the first session, we progress towards social compliance, our • Geography (including hotspot regions, (announced, semi‑announced and Woolworths Group has devised were joined by worker advocate Moe • Launching our Requirements for Labour process for on‑boarding direct suppliers regulatory oversight) unannounced) and teams (Woolworths a specialised program to address and Turaga to share his past experience of to the program occurred in three phases: and a third party). Providers in our Australian Horticultural • Seasonality mitigate risk across this supply chain. working in a situation of bondage on an Supply Chain • Suppliers select their mutual • Suspected or known red flag sites 27 site visits were conducted in total by Australian farm. For the second session, As recent key reports from the Fair recognition scheme raised via third parties. Woolworths' Responsible Sourcing team • Multi‑stakeholder engagement. global ethical recruitment expert Marie (20) and Verite (7), a global not‑for‑profit Work Ombudsman (FWO) 1 and • Suppliers share any existing social Higher risk commodities are largely 2 Apostle from the Fair Hiring Initiative, compliance data specialising in identifying and remedying
academia indicate, worker rights defined by the nature of the harvest 2PEOPLE trained our team on the complexity of labour rights violations in supply chains. challenges in Australian horticulture • Woolworths reviews existing audits and include: Training and labour hire for migrant workers and Findings varied across production are multifaceted and solutions require and grades the outcome against indicators of forced labour in labour • Berries type and location. Non‑conformances a genuine multi stakeholder response. our Standards. awareness raising hire arrangements. • Tomatoes included miscalculation of piece‑rates, Key to Woolworths’ approach in This year, our efforts focused on • Mixed vegetables/brassica limited record keeping and limited horticulture is working in strategic Unlike other global markets that we In October 2018, we delivered on‑boarding those suppliers that selected oversight of labour providers. Visits partnerships across industry, operate in, management systems for our Program launch to 130 direct Sedex as their preferred scheme. As Fair • Grapes conducted by Verite included a payroll government and civil society to drive social compliance are relatively new product suppliers at events in Sydney, Farms only formally launched in June • Cucumber review of labour providers. Though there
3PLANET outcomes that deliver sustainable to our horticulture supplier base. For Melbourne and Brisbane. This was 2019, suppliers that have selected this • Stone Fruit. were no forced labour issues found, few as their preferred scheme will undergo suppliers had specific controls in place change across the sector. We believe this reason, it was important for us to followed by a training session with 46 Our risk‑prioritisation further drives our a similar onboarding process in the first to identify both indicators and actual that raising the bar on good practice spend time briefing our Produce team of our largest suppliers in March 2019 program of site visits, that compliment half of F20. incidents of forced labour. across the industry will have a positive members and suppliers on different on labour hire and ethical recruitment, our full social compliance audits. These impact on our direct suppliers and elements of our Responsible Sourcing and an update in June 2019 to 82 To date 79% of produce suppliers have may be announced or unannounced. The The site visits methodology also selected their scheme representing their growers. Program. Importantly, both our written suppliers at our Hort Connections purpose of unannounced site visits is to included conversations with growers 97% of total purchases. Of these 263 communications and face‑to‑face briefing. Suppliers also receive program understand the site operations “as is” on to better understand their challenges in In the first year of the program, we (60%) suppliers have selected Sedex, 62 any given day. Visits may be conducted meeting the Standards. This deepened briefings are co‑delivered by our updates via Woolworths Supermarkets’ suppliers (15%) have selected Fair Farms focused our efforts in four main areas: engagement will continue to inform 4PROSPERITY Responsible Sourcing team and the business updates and the bi‑monthly by Woolworths or a Woolworths’ and eight suppliers (2%) have opted for approved third party and focus on key our strategy. commercial Head of Produce. supplier quality newsletter. GlobalGAP. G.R.A.S.P. We are working responsible sourcing indicators: In Q1 F20, we will finalise our to onboard all produce suppliers by the methodology for site visits based end of October 2019. • Management systems for labour hire providers on the learnings from the pilots, and Of the produce suppliers that selected fully embed site visits as part of our • Wages, benefits and working hours Sedex, we have reviewed and graded 93 framework for managing Responsible Program rollout in horticulture reports. Of these 32 were graded green or • Worker induction and training Sourcing risk in horticulture.
METRICS 5SUSTAINABILITY
July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 February 2019 March 2019 April 2019 May 2019 June 2019
• Responsible • Support of • Quarterly • 130 suppliers • FWO releases its final report on the • Quarterly meeting • Launched • First meeting of the FWO Horticulture • NUW working • Signed • Quarterly meeting with the NUW Sourcing the Australian meeting with across the Harvest Trail Inquiry with the NUW Requirements for Reference Group Meeting briefing sessions Collaboration • Disseminated supplier guidance Program Modern Slavery the NUW country attend • Woolworths Group accepts position on Labour Providers • Roundtable on Responsible Recruitment and meeting in Protocol with on developing site level grievance Launch Act at Senate RS Produce FWO Horticulture Reference Group • Briefed key with 14 participants across industry, retail Robinvale the NUW mechanisms Inquiry Roadshows and civil society • Presented with supplier, Perfection Fresh, industry • Met with the • Conducted site • Attended Fair Farms shadow audit • Participated • Research brief stakeholders on • Training of certification bodies on best Victorian Labour visits across at the UN Global Compact Network • 87 suppliers attended Woolworths in the Fair by the Australian Australia’s (GCNA) National Dialogue on the Requirements practice social compliance auditing Hire Authority strawberry and Farms Retailer Human Rights banana suppliers Group Supplier update at Hort Business and Human Rights • Re‑launched • 81 Produce team members briefed on • Released our Workshop Institute and in QLD Connections Supplier Requirements for Labour Providers Statement of UTS Speak Up Principles • Second meeting of FWO Horticulture • 46 Suppliers attended brief on Reference Group • Achieved a score • Conducted 6 site Requirements for Labour Providers • Briefed the PMA of 40.7 in the • Fair Farms Program launch investigations • Participated in Fair Farms Retailer Workshop on the Modern 2018 CHRB, Slavery Act an increase • Co‑hosted a panel on Responsible of 15.7 on the Recruitment with the GCNA previous year
2 See e.g Joanna Howe et al., Towards a Durable Future: Tackling Labour Challenges in the Australian Horticulture Industry, 2019; Marie Seagrave, Exploited and illegal: Unlawful migrant workers in Australia, 2018; Laurie Berg and Bassina Farbenblum, Wage Theft in Australia: Findings of the National Temporary 1 FWO, Harvest Trail Inquiry Report, 2018, available: www.fairwork.gov.au/how‑we‑will‑help/helping‑the‑community/campaigns/national‑campaigns/harvest‑trail‑inquiry Migrant Work Survey, 2017; and the Report of the Migrant Workers Taskforce, 2019. 58 59 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Launching responsible Our framework for low risk, 44 were grade amber or medium • Management systems to verify rights sourcing in our Australian risk and 17 were graded purple or high to work managing Responsible risk. There were no ‘red’ or zero tolerance • Worker facilities (including any cases identified. Collectively, 165 of onsite accommodation) Sourcing risk findings have been addressed and we are horticultural supply chain • Operational level working to close the remaining 13 issues. grievance mechanism. in horticulture The majority (45%) of non‑compliances related to health and safety, followed This year we piloted our site visits Our approach to managing risk in our by age verification process and wages methodology. To test our process horticulture supply chain aligns to our and benefits. and assumptions, we piloted across Responsible Sourcing framework; we a number of product categories (berries, For those suppliers that are yet to mutually recognise three third party bananas and brassica), higher risk This past year we have made significant • Training and awareness raising Our entire Produce team has attended complete an audit, Woolworths has schemes to demonstrate compliance regions (Queensland, Victoria and progress towards embedding among our produce team members two formal briefing sessions, the taken a risk based approach to prioritise to our Standards. These are Sedex, Fair Western Australia), and operation responsible sourcing in our fresh and direct suppliers first at the launch of the Responsible audit requests. We consider four Farms and GlobalGAP G.R.A.S.P. types (packing warehouse, farms key factors: produce supply chain. Knowing the • Operationalising our framework for Sourcing Program and the second at the Given the maturity of the different only, joint farms and packing sheds)
HIGHLIGHTS 1PERFORMANCE unique vulnerabilities faced by migrant managing responsible sourcing risk launch of the Requirements for Labour schemes and our suppliers’ varying • Commodity using a combination of approaches workers in Australian horticulture, in horticulture Providers. At the first session, we progress towards social compliance, our • Geography (including hotspot regions, (announced, semi‑announced and Woolworths Group has devised were joined by worker advocate Moe • Launching our Requirements for Labour process for on‑boarding direct suppliers regulatory oversight) unannounced) and teams (Woolworths a specialised program to address and Turaga to share his past experience of to the program occurred in three phases: and a third party). Providers in our Australian Horticultural • Seasonality mitigate risk across this supply chain. working in a situation of bondage on an Supply Chain • Suppliers select their mutual • Suspected or known red flag sites 27 site visits were conducted in total by Australian farm. For the second session, As recent key reports from the Fair recognition scheme raised via third parties. Woolworths' Responsible Sourcing team • Multi‑stakeholder engagement. global ethical recruitment expert Marie (20) and Verite (7), a global not‑for‑profit Work Ombudsman (FWO) 1 and • Suppliers share any existing social Higher risk commodities are largely 2 Apostle from the Fair Hiring Initiative, compliance data specialising in identifying and remedying academia indicate, worker rights defined by the nature of the harvest 2PEOPLE trained our team on the complexity of labour rights violations in supply chains. challenges in Australian horticulture • Woolworths reviews existing audits and include: Training and labour hire for migrant workers and Findings varied across production are multifaceted and solutions require and grades the outcome against indicators of forced labour in labour • Berries type and location. Non‑conformances a genuine multi stakeholder response. our Standards. awareness raising hire arrangements. • Tomatoes included miscalculation of piece‑rates, Key to Woolworths’ approach in This year, our efforts focused on • Mixed vegetables/brassica limited record keeping and limited horticulture is working in strategic Unlike other global markets that we In October 2018, we delivered on‑boarding those suppliers that selected oversight of labour providers. Visits partnerships across industry, operate in, management systems for our Program launch to 130 direct Sedex as their preferred scheme. As Fair • Grapes conducted by Verite included a payroll government and civil society to drive social compliance are relatively new product suppliers at events in Sydney, Farms only formally launched in June • Cucumber review of labour providers. Though there
3PLANET outcomes that deliver sustainable to our horticulture supplier base. For Melbourne and Brisbane. This was 2019, suppliers that have selected this • Stone Fruit. were no forced labour issues found, few as their preferred scheme will undergo suppliers had specific controls in place change across the sector. We believe this reason, it was important for us to followed by a training session with 46 Our risk‑prioritisation further drives our a similar onboarding process in the first to identify both indicators and actual that raising the bar on good practice spend time briefing our Produce team of our largest suppliers in March 2019 program of site visits, that compliment half of F20. incidents of forced labour. across the industry will have a positive members and suppliers on different on labour hire and ethical recruitment, our full social compliance audits. These impact on our direct suppliers and elements of our Responsible Sourcing and an update in June 2019 to 82 To date 79% of produce suppliers have may be announced or unannounced. The The site visits methodology also selected their scheme representing their growers. Program. Importantly, both our written suppliers at our Hort Connections purpose of unannounced site visits is to included conversations with growers 97% of total purchases. Of these 263 communications and face‑to‑face briefing. Suppliers also receive program understand the site operations “as is” on to better understand their challenges in In the first year of the program, we (60%) suppliers have selected Sedex, 62 any given day. Visits may be conducted meeting the Standards. This deepened briefings are co‑delivered by our updates via Woolworths Supermarkets’ suppliers (15%) have selected Fair Farms focused our efforts in four main areas: engagement will continue to inform 4PROSPERITY Responsible Sourcing team and the business updates and the bi‑monthly by Woolworths or a Woolworths’ and eight suppliers (2%) have opted for approved third party and focus on key our strategy. commercial Head of Produce. supplier quality newsletter. GlobalGAP. G.R.A.S.P. We are working responsible sourcing indicators: In Q1 F20, we will finalise our to onboard all produce suppliers by the methodology for site visits based end of October 2019. • Management systems for labour hire providers on the learnings from the pilots, and Of the produce suppliers that selected fully embed site visits as part of our • Wages, benefits and working hours Sedex, we have reviewed and graded 93 framework for managing Responsible Program rollout in horticulture reports. Of these 32 were graded green or • Worker induction and training Sourcing risk in horticulture.
METRICS 5SUSTAINABILITY
July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 February 2019 March 2019 April 2019 May 2019 June 2019
• Responsible • Support of • Quarterly • 130 suppliers • FWO releases its final report on the • Quarterly meeting • Launched • First meeting of the FWO Horticulture • NUW working • Signed • Quarterly meeting with the NUW Sourcing the Australian meeting with across the Harvest Trail Inquiry with the NUW Requirements for Reference Group Meeting briefing sessions Collaboration • Disseminated supplier guidance Program Modern Slavery the NUW country attend • Woolworths Group accepts position on Labour Providers • Roundtable on Responsible Recruitment and meeting in Protocol with on developing site level grievance Launch Act at Senate RS Produce FWO Horticulture Reference Group • Briefed key with 14 participants across industry, retail Robinvale the NUW mechanisms Inquiry Roadshows and civil society • Presented with supplier, Perfection Fresh, industry • Met with the • Conducted site • Attended Fair Farms shadow audit • Participated • Research brief stakeholders on • Training of certification bodies on best Victorian Labour visits across at the UN Global Compact Network • 87 suppliers attended Woolworths in the Fair by the Australian Australia’s (GCNA) National Dialogue on the Requirements practice social compliance auditing Hire Authority strawberry and Farms Retailer Human Rights banana suppliers Group Supplier update at Hort Business and Human Rights • Re‑launched • 81 Produce team members briefed on • Released our Workshop Institute and in QLD Connections Supplier Requirements for Labour Providers Statement of UTS Speak Up Principles • Second meeting of FWO Horticulture • 46 Suppliers attended brief on Reference Group • Achieved a score • Conducted 6 site Requirements for Labour Providers • Briefed the PMA of 40.7 in the • Fair Farms Program launch investigations • Participated in Fair Farms Retailer Workshop on the Modern 2018 CHRB, Slavery Act an increase • Co‑hosted a panel on Responsible of 15.7 on the Recruitment with the GCNA previous year
2 See e.g Joanna Howe et al., Towards a Durable Future: Tackling Labour Challenges in the Australian Horticulture Industry, 2019; Marie Seagrave, Exploited and illegal: Unlawful migrant workers in Australia, 2018; Laurie Berg and Bassina Farbenblum, Wage Theft in Australia: Findings of the National Temporary 1 FWO, Harvest Trail Inquiry Report, 2018, available: www.fairwork.gov.au/how‑we‑will‑help/helping‑the‑community/campaigns/national‑campaigns/harvest‑trail‑inquiry Migrant Work Survey, 2017; and the Report of the Migrant Workers Taskforce, 2019. 60 61 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Requirements for Multi‑stakeholder Fair Farms Initiative FWO Horticultural Reference Group Our team distributed Woolworths’ • Re‑communicated our Responsible Supplier Speak Up cards, but have not Sourcing Standards to suppliers in In November 2018, the FWO released For the past 18 months, Woolworths has had any direct reports from our supply the region labour providers in our engagement its final report on the Harvest Trail been part of the retail consultation on the chain in this region. Australian horticultural development of the Fair Farms Training Inquiry. The Inquiry identified five • Conduct unannounced site visits We recognise strategic industry, & Certification Program, an industry‑led key findings relating to workplace After the visit, we formulated next steps in region supply chain government, union and supplier arrangements along the Harvest Trail, based on the remediation guidance initiative to promote workplace • Engaged relevant authorities collaborations are critical to addressing all of which have been considered from the UN Guiding Principles on compliance and end exploitation in including the Victorian Labour A key risk area for the horticulture shared and pervasive challenges in our by Woolworths' as part of our Business and Human Rights (UNGPs). Australian horticulture. We have worked Hire Authority and Department industry is the inherent vulnerabilities fresh produce supply chain. evidence‑based program development. Using the UNGPs, we identified that with Fair Farms to ensure the Standard of Home Affairs. of migrant workers that enter the supply This year we have partnered with underlying the program meets our key The report’s recommendations included Woolworths was directly linked to the chain via third party labour providers. Fair Farms and joined the FWO's Responsible Sourcing requirements and the formation of a multi‑stakeholder risks faced by workers in Robinvale. For Ahead of the next harvest season, Harvest Trail Stakeholder Reference businesses that are directly linked to we will work closely with our suppliers The FWO Harvest Trail Inquiry report Horticulture Reference Group. We have addresses priority risk areas specific to Group. Woolworths is a member a potential rights violation, the UNGPs to review their responsible sourcing found up to two‑thirds of growers rely also deepened our engagement with horticulture. Following its launch in June of the Group alongside retail peers, suggest that companies consider their management systems. During peak on labour hire contractors to some the National Union of Workers (NUW). 2019, our suppliers can now register
HIGHLIGHTS 1PERFORMANCE suppliers, worker representatives, leverage to influence key stakeholders extent and, where these arrangements Beyond these strategic partnerships, we with Fair Farms to commence their path season we will conduct visits in to facilitate a positive outcome for were used illegally, this had a negative continue to engage across industry with: to certification. We will continue to industry groups and certification the region. schemes. The Group convened twice workers. We immediately implemented impact on workers. 1 • The Horticulture Committee of the engage with Fair Farms, assuming a role in F19 and acts as an advisory board the following steps: National Farmers Federation; on the Fair Farms Stakeholder Reference In February 2019, we released an Group in F20. Our priority areas include to the FWO working group to inform • State based horticulture and farming Addendum to our Responsible Sourcing worker voice and grievance mechanisms the design and implementation of Standards, Requirements for Labour associations; and within the scheme, and process for initiatives and interventions to address Providers in our Australian Horticulture • Industry groups such as AusVeg, investigations when issues are raised. non‑compliance on the Harvest Trail.
2PEOPLE Supply Chain (Requirements). The the Produce Marketing Association. Our horticultural supply chain Requirements make clear that any (PMA), Berries Australia and the National Union of Workers suppliers that engage a third party Australian Fresh Produce Alliance. This year, Woolworths continued our labour provider must have the right Woolworths sources 96% of our fresh fruit and vegetables in Australia “We value Woolworth’s support engagement with the NUW through checks and balances in place to ensure Our engagement framework is from some 423 direct suppliers. More than half of our direct suppliers are and endorsement of Fair Farms as quarterly meetings and in attending they are dealing with a legitimate entity captured in our Statement of Principles from two states – Queensland and Victoria – followed by New South Wales, a way for their produce suppliers to a worker briefing session. We further and that workers rights are respected. to promote fair working conditions Western Australia, South Australia, Tasmania and the Northern Territory. and the protection of labour rights in demonstrate workplace compliance.” cemented our commitment to ongoing This is what we call tier one, or direct, suppliers.
Our approach to responsible recruitment dialogue with the Union through the 3PLANET Woolworths’ Australian horticultural THOMAS HERTEL, Our tier two supply chain are those growers that supply into our direct is aligned with industry standards and 3 signing of a Collaboration Protocol supply chain. FAIR FARMS PROGRAM MANAGER suppliers. Of our 14 largest direct suppliers, collectively the Australian Fresh underpinned by three core principles in May 2019. Under the protocol, Produce Alliance, there are an estimated 1,500 tier two growers. This is just known as the Priority Industry Principles: Woolworths and the NUW agree a small section of our second tier supply chain. We will continue to map • Every worker should have freedom to quarterly meetings to monitor our second tier to have greater transparency of the indirect growers that of movement; the progress of the Requirements contribute to our fresh produce supply chain. • No worker should pay for a job; and for Labour Providers in driving improved labour hire standards in our
• No worker should be indebted or 4PROSPERITY horticultural supply chain. It will also coerced to work. 2 provide the NUW with a direct avenue To be compliant with the Requirements, to raise any worker feedback. suppliers must ensure labour providers In April, Woolworths was one of five used in their supply chain meet one of external stakeholders that attended the following three criteria: a worker information session organised 1. The labour hire provider is legally by the NUW in Robinvale, Victoria.
registered under relevant State or More than 200 workers from different METRICS 5SUSTAINABILITY any future Federal legislation related nationalities working across Sunraysia to labour hire registration (this is (Robinvale, Mildura and Swan Hill mandatory where legislation applies) regions) attended the session to 2. The labour hire provider is an discuss workplace rights. Woolworths Approved Employer on the engaged with a number of migrant Australian Government’s Seasonal workers in feedback sessions. Key Worker Programme learnings included: 3. The labour hire provider is certified • Understanding the via a third party scheme approved complexity of labour hire by Woolworths, currently StaffSure. subcontracting arrangements We are currently in the transition • Misuse of piece‑rate payments phase of the Requirements. Aligned with the timing of the Victorian • Fees for accommodation Labour Hire licensing regulations, the Woolworths Head of Produce, Paul Turner and Responsible and transport Requirements will be fully operational Sourcing Manager, Laura McManus join Thomas Hertel, Fair • Legal complexities of the right from 30 October 2019. Farms Program Manager at the launch in June 2019. to work. 1 Ibid 1. Page 58. 2 The Priority Industry Principles are an initiative of the Consumer Goods Forum. You can read more about Principles here: www.theconsumergoodsforum.com/initiatives/social‑sustainability/key‑projects/priority‑industry‑principles 3 www.woolworthsgroup.com.au/content/Document/Woolworths%20Group%20Statement%20of%20Principles_FINAL.pdf 60 61 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Requirements for Multi‑stakeholder Fair Farms Initiative FWO Horticultural Reference Group Our team distributed Woolworths’ • Re‑communicated our Responsible Supplier Speak Up cards, but have not Sourcing Standards to suppliers in In November 2018, the FWO released For the past 18 months, Woolworths has had any direct reports from our supply the region labour providers in our engagement its final report on the Harvest Trail been part of the retail consultation on the chain in this region. Australian horticultural development of the Fair Farms Training Inquiry. The Inquiry identified five • Conduct unannounced site visits We recognise strategic industry, & Certification Program, an industry‑led key findings relating to workplace After the visit, we formulated next steps in region supply chain government, union and supplier arrangements along the Harvest Trail, based on the remediation guidance initiative to promote workplace • Engaged relevant authorities collaborations are critical to addressing all of which have been considered from the UN Guiding Principles on compliance and end exploitation in including the Victorian Labour A key risk area for the horticulture shared and pervasive challenges in our by Woolworths' as part of our Business and Human Rights (UNGPs). Australian horticulture. We have worked Hire Authority and Department industry is the inherent vulnerabilities fresh produce supply chain. evidence‑based program development. Using the UNGPs, we identified that with Fair Farms to ensure the Standard of Home Affairs. of migrant workers that enter the supply This year we have partnered with underlying the program meets our key The report’s recommendations included Woolworths was directly linked to the chain via third party labour providers. Fair Farms and joined the FWO's Responsible Sourcing requirements and the formation of a multi‑stakeholder risks faced by workers in Robinvale. For Ahead of the next harvest season, Harvest Trail Stakeholder Reference businesses that are directly linked to we will work closely with our suppliers The FWO Harvest Trail Inquiry report Horticulture Reference Group. We have addresses priority risk areas specific to Group. Woolworths is a member a potential rights violation, the UNGPs to review their responsible sourcing found up to two‑thirds of growers rely also deepened our engagement with horticulture. Following its launch in June of the Group alongside retail peers, suggest that companies consider their management systems. During peak on labour hire contractors to some the National Union of Workers (NUW). 2019, our suppliers can now register
HIGHLIGHTS 1PERFORMANCE suppliers, worker representatives, leverage to influence key stakeholders extent and, where these arrangements Beyond these strategic partnerships, we with Fair Farms to commence their path season we will conduct visits in to facilitate a positive outcome for were used illegally, this had a negative continue to engage across industry with: to certification. We will continue to industry groups and certification the region. schemes. The Group convened twice workers. We immediately implemented impact on workers. 1 • The Horticulture Committee of the engage with Fair Farms, assuming a role in F19 and acts as an advisory board the following steps: National Farmers Federation; on the Fair Farms Stakeholder Reference In February 2019, we released an Group in F20. Our priority areas include to the FWO working group to inform • State based horticulture and farming Addendum to our Responsible Sourcing worker voice and grievance mechanisms the design and implementation of Standards, Requirements for Labour associations; and within the scheme, and process for initiatives and interventions to address Providers in our Australian Horticulture • Industry groups such as AusVeg, investigations when issues are raised. non‑compliance on the Harvest Trail.
2PEOPLE Supply Chain (Requirements). The the Produce Marketing Association. Our horticultural supply chain Requirements make clear that any (PMA), Berries Australia and the National Union of Workers suppliers that engage a third party Australian Fresh Produce Alliance. This year, Woolworths continued our labour provider must have the right Woolworths sources 96% of our fresh fruit and vegetables in Australia “We value Woolworth’s support engagement with the NUW through checks and balances in place to ensure Our engagement framework is from some 423 direct suppliers. More than half of our direct suppliers are and endorsement of Fair Farms as quarterly meetings and in attending they are dealing with a legitimate entity captured in our Statement of Principles from two states – Queensland and Victoria – followed by New South Wales, a way for their produce suppliers to a worker briefing session. We further and that workers rights are respected. to promote fair working conditions Western Australia, South Australia, Tasmania and the Northern Territory. and the protection of labour rights in demonstrate workplace compliance.” cemented our commitment to ongoing This is what we call tier one, or direct, suppliers.
Our approach to responsible recruitment dialogue with the Union through the 3PLANET Woolworths’ Australian horticultural THOMAS HERTEL, Our tier two supply chain are those growers that supply into our direct is aligned with industry standards and 3 signing of a Collaboration Protocol supply chain. FAIR FARMS PROGRAM MANAGER suppliers. Of our 14 largest direct suppliers, collectively the Australian Fresh underpinned by three core principles in May 2019. Under the protocol, Produce Alliance, there are an estimated 1,500 tier two growers. This is just known as the Priority Industry Principles: Woolworths and the NUW agree a small section of our second tier supply chain. We will continue to map • Every worker should have freedom to quarterly meetings to monitor our second tier to have greater transparency of the indirect growers that of movement; the progress of the Requirements contribute to our fresh produce supply chain. • No worker should pay for a job; and for Labour Providers in driving improved labour hire standards in our
• No worker should be indebted or 4PROSPERITY horticultural supply chain. It will also coerced to work. 2 provide the NUW with a direct avenue To be compliant with the Requirements, to raise any worker feedback. suppliers must ensure labour providers In April, Woolworths was one of five used in their supply chain meet one of external stakeholders that attended the following three criteria: a worker information session organised 1. The labour hire provider is legally by the NUW in Robinvale, Victoria. registered under relevant State or More than 200 workers from different METRICS 5SUSTAINABILITY any future Federal legislation related nationalities working across Sunraysia to labour hire registration (this is (Robinvale, Mildura and Swan Hill mandatory where legislation applies) regions) attended the session to 2. The labour hire provider is an discuss workplace rights. Woolworths Approved Employer on the engaged with a number of migrant Australian Government’s Seasonal workers in feedback sessions. Key Worker Programme learnings included: 3. The labour hire provider is certified • Understanding the via a third party scheme approved complexity of labour hire by Woolworths, currently StaffSure. subcontracting arrangements We are currently in the transition • Misuse of piece‑rate payments phase of the Requirements. Aligned with the timing of the Victorian • Fees for accommodation Labour Hire licensing regulations, the Woolworths Head of Produce, Paul Turner and Responsible and transport Requirements will be fully operational Sourcing Manager, Laura McManus join Thomas Hertel, Fair • Legal complexities of the right from 30 October 2019. Farms Program Manager at the launch in June 2019. to work. 1 Ibid 1. Page 58. 2 The Priority Industry Principles are an initiative of the Consumer Goods Forum. You can read more about Principles here: www.theconsumergoodsforum.com/initiatives/social‑sustainability/key‑projects/priority‑industry‑principles 3 www.woolworthsgroup.com.au/content/Document/Woolworths%20Group%20Statement%20of%20Principles_FINAL.pdf 62 63 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Making an impact IMPACT:
Commitment 17 Lifeline White Ribbon Food Rescue Partners We remain dedicated to the communities we are part With a focus on mental health, Endeavour Drinks have been Contestable Fund of, and commit to donating at least 1% of our pre‑tax Sustainable Woolworths Group is proud proud partners with White Ribbon The Countdown Food Rescue Development Goal profits on a three‑year rolling average every year. Our to be one of the sponsors of Australia since 2013 and remain Partners Contestable Fund, direct community investment consists of cash, in‑kind Lifeline. Lifeline is a national committed to ending men’s established in 2016, has been or our expertise and time to various causes. With our charity providing all Australians violence against women. This year, designed to help grow the capacity experiencing a personal crisis we have raised over $150,000 large footprint across Australia and New Zealand, we and capability of our food rescue with access to 24 hour crisis to help provide education, partners. This year, Countdown
are also able to provide opportunities to raise awareness support and suicide prevention awareness‑raising campaigns has donated over $160,000 HIGHLIGHTS 1PERFORMANCE of community programs and provide channels for our services. Lifeline receives over and preventative programs. to 12 food rescue charities to help customers and team members to support these causes. a million contacts each year from expand their operations including helpseekers. The support services buying new vehicles to transport and resources are provided products and building a new through phone, face‑to‑face kitchen to prepare food for those and online channels. If you need in need. Direct community support, please call 13 11 14. investments: 2PEOPLE Australian Red Cross Good360
Cash donations One in three Australians will need Since we partnered with "Being a part of so many communities across a blood donation at some point in their Good360 in 2017, and with lives. BIG W has partnered with the the amazing work of our store Australia and New Zealand, we have a Drought relief support $14.8M Australian Red Cross as part of the teams, we have donated responsibility to give back and to support those RED 25 program to secure 25% of the over 4.5K items, helped Together with our customers, required number of blood donations in 510 charities and positively in need. I am proud of our team and the positive Woolworths Group raised over
3PLANET $7.8 million dollars for Rural Aid’s In Kind Australia annually. To date, the BIG W impacted over 900K impact they help to create.” team has saved over 4,000 lives with Aussies families. Buy a Bale appeal in support of farmers impacted by the drought. blood donations, and has set a goal to BRAD BANDUCCI, CEO $18.5M save as many lives as there are team The funds helped deliver more members in the business. livestock feed, cover essential household expenses and provide additional counselling support Team Free Books For Kids member time services to farmers in need in 4PROSPERITY BIG W’s Free Books For Kids is Drought Angels rural areas. In addition to raising Woolworths Earn & Learn about giving families access to Over 280 ALH pubs across funds, Woolworths also provided $11M more books at home. Reading Australia came together to expertise in supply chain logistics This year 15,000 schools and early is the first step to building participate in Parma For a Farmer and planning to deliver stock feed learning centres across Australia healthy minds for Australia’s – an initiative to assist with to farmers. participated in the Earn & Learn children. During February Direct community drought relief efforts. All donations investment totalling program, including for the first time – May 2019, parents, carers raised went to Drought Angels, 120 remote schools. Through this and teachers across Australia
an Australian charity dedicated METRICS 5SUSTAINABILITY program, we are funding the provision collected more than 3.7 million to assisting Farmers and their $44.3M of educational resources. books, making story time Kelly Tarlton’s Turtle families through trying times. special for tens of thousands Variety of Australian children. Rehabilitation Programme – The Children’s Charity Leveraged Countdown is partnering with fundraising New Zealand’s only turtle rescue Throughout the year, Woolworths Royal Children’s Hospital and recovery program to help Mount Compass stores in NSW, ACT, SA and sick and injured turtles which Area School NT host an assortment of $18.1M For 32 years our Victorian Supermarkets Royal Flying Doctors wash up on New Zealand's shore fundraising activities for Variety have supported the Royal Children's due to the plastics in our oceans. Mount Compass Area School With two statewide appeals – The Children‘s Charity. Variety Hospital in Melbourne. Each year Our partnership will provide was awarded a Woolworths' this year, one in October provides support for mobility Our community contribution these stores collectively raise well over funds to help upgrade the turtle sponsored Junior Landcare and another in May, our equipment like wheelchairs, as % of EBIT on a rolling a million dollars and then 200+ of our rehabilitation area, including Award at the National Landcare average basis Queensland stores raised over walking aids, and modified team volunteer to run the ever popular building new holding tanks for Australia conference in October $530,000 for the Royal Flying vehicles. As well as funding rare Woolworths Fresh Food Hall at the Kid’s the recovering turtles, a food 2018. This award was in Doctor Service in Queensland. and expensive medical equipment. % Day Out spectacular in the Melbourne preparation area and a new lab recognition of the students' 1.40 All funds raised will help keep Convention and Exhibition Centre on where the team can carry out efforts to guide and engage the this iconic and life‑saving Good Friday. water quality testing and animal community on the importance community service in the air. health checks. of Fleurieu swamplands. 62 63 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Making an impact IMPACT:
Commitment 17 Lifeline White Ribbon Food Rescue Partners We remain dedicated to the communities we are part With a focus on mental health, Endeavour Drinks have been Contestable Fund of, and commit to donating at least 1% of our pre‑tax Sustainable Woolworths Group is proud proud partners with White Ribbon The Countdown Food Rescue Development Goal profits on a three‑year rolling average every year. Our to be one of the sponsors of Australia since 2013 and remain Partners Contestable Fund, direct community investment consists of cash, in‑kind Lifeline. Lifeline is a national committed to ending men’s established in 2016, has been or our expertise and time to various causes. With our charity providing all Australians violence against women. This year, designed to help grow the capacity experiencing a personal crisis we have raised over $150,000 large footprint across Australia and New Zealand, we and capability of our food rescue with access to 24 hour crisis to help provide education, partners. This year, Countdown are also able to provide opportunities to raise awareness support and suicide prevention awareness‑raising campaigns has donated over $160,000 HIGHLIGHTS 1PERFORMANCE of community programs and provide channels for our services. Lifeline receives over and preventative programs. to 12 food rescue charities to help customers and team members to support these causes. a million contacts each year from expand their operations including helpseekers. The support services buying new vehicles to transport and resources are provided products and building a new through phone, face‑to‑face kitchen to prepare food for those and online channels. If you need in need. Direct community support, please call 13 11 14. investments: 2PEOPLE Australian Red Cross Good360
Cash donations One in three Australians will need Since we partnered with "Being a part of so many communities across a blood donation at some point in their Good360 in 2017, and with lives. BIG W has partnered with the the amazing work of our store Australia and New Zealand, we have a Drought relief support $14.8M Australian Red Cross as part of the teams, we have donated responsibility to give back and to support those RED 25 program to secure 25% of the over 4.5K items, helped Together with our customers, required number of blood donations in 510 charities and positively in need. I am proud of our team and the positive Woolworths Group raised over
3PLANET $7.8 million dollars for Rural Aid’s In Kind Australia annually. To date, the BIG W impacted over 900K impact they help to create.” team has saved over 4,000 lives with Aussies families. Buy a Bale appeal in support of farmers impacted by the drought. blood donations, and has set a goal to BRAD BANDUCCI, CEO $18.5M save as many lives as there are team The funds helped deliver more members in the business. livestock feed, cover essential household expenses and provide additional counselling support Team Free Books For Kids member time services to farmers in need in 4PROSPERITY BIG W’s Free Books For Kids is Drought Angels rural areas. In addition to raising Woolworths Earn & Learn about giving families access to Over 280 ALH pubs across funds, Woolworths also provided $11M more books at home. Reading Australia came together to expertise in supply chain logistics This year 15,000 schools and early is the first step to building participate in Parma For a Farmer and planning to deliver stock feed learning centres across Australia healthy minds for Australia’s – an initiative to assist with to farmers. participated in the Earn & Learn children. During February Direct community drought relief efforts. All donations investment totalling program, including for the first time – May 2019, parents, carers raised went to Drought Angels, 120 remote schools. Through this and teachers across Australia
an Australian charity dedicated METRICS 5SUSTAINABILITY program, we are funding the provision collected more than 3.7 million to assisting Farmers and their $44.3M of educational resources. books, making story time Kelly Tarlton’s Turtle families through trying times. special for tens of thousands Variety of Australian children. Rehabilitation Programme – The Children’s Charity Leveraged Countdown is partnering with fundraising New Zealand’s only turtle rescue Throughout the year, Woolworths Royal Children’s Hospital and recovery program to help Mount Compass stores in NSW, ACT, SA and sick and injured turtles which Area School NT host an assortment of $18.1M For 32 years our Victorian Supermarkets Royal Flying Doctors wash up on New Zealand's shore fundraising activities for Variety have supported the Royal Children's due to the plastics in our oceans. Mount Compass Area School With two statewide appeals – The Children‘s Charity. Variety Hospital in Melbourne. Each year Our partnership will provide was awarded a Woolworths' this year, one in October provides support for mobility Our community contribution these stores collectively raise well over funds to help upgrade the turtle sponsored Junior Landcare and another in May, our equipment like wheelchairs, as % of EBIT on a rolling a million dollars and then 200+ of our rehabilitation area, including Award at the National Landcare average basis Queensland stores raised over walking aids, and modified team volunteer to run the ever popular building new holding tanks for Australia conference in October $530,000 for the Royal Flying vehicles. As well as funding rare Woolworths Fresh Food Hall at the Kid’s the recovering turtles, a food 2018. This award was in Doctor Service in Queensland. and expensive medical equipment. % Day Out spectacular in the Melbourne preparation area and a new lab recognition of the students' 1.40 All funds raised will help keep Convention and Exhibition Centre on where the team can carry out efforts to guide and engage the this iconic and life‑saving Good Friday. water quality testing and animal community on the importance community service in the air. health checks. of Fleurieu swamplands. 64 65 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Giving back to the IMPACT: communities in Commitment 18 Sustainable Development Goal "Landcare Australia’s Junior Landcare program which we operate encourages young people to play an active role in ensuring the safe future of their environment. We’re delighted to be working in partnership with Woolworths to support thousands of children across Through the Woolworths Junior Landcare Grants Australia to get ‘hands on’ with nature.
HIGHLIGHTS 1PERFORMANCE program, we provide funding to inspire the next Our Woolworths Junior Landcare Grants initiative is generation of environmental champions. offering children the opportunity to share knowledge, develop skills and create experiences that foster connections with the environment and community from childhood to adulthood. By working together
2PEOPLE we're inspiring kids, and providing schools and early learning centres the resources they need to champion for the environment. It's important we continue to drive this progress, and engage the entire community Woolworths Junior Landcare Grants in a movement to being more sustainable and active in caring for the environment.”
3PLANET
DR. SHANE NORRISH, CEO LANDCARE AUSTRALIA In June 2018, we phased out the use Landcare Grants program is part In addition, Woolworths is of single‑use plastic shopping bags of Woolworths’ commitment supporting Landcare Australia to nationally. This was a big change to invest in local communities develop their online resources. for our customers and our teams, and supports the next generation This online platform will provide and it has taken time to adjust, but of environmental champions. engaging, age appropriate thanks to our collective efforts, more resources to help teachers, parents,
4PROSPERITY than three billion single‑use plastic Junior Landcare encourages community groups, youth groups bags have now been removed from young people to become aware, and children build knowledge the environment. Our 99c ‘Bag for empowered and active. Woolworths' and create deeper connections to Good’ was launched as part of our support for the program has helped sustainable land management and reusable bag offer, and funds from Junior Landcare inspire thousands conservation activities. the sale of these bags go towards of children to be connected to their the Woolworths Junior Landcare local environment and community. Grants program. Woolworths also sponsors the METRICS 5SUSTAINABILITY Woolworths Junior Landcare Team The first Woolworths Junior Award, a category in the National Landcare Grants were awarded Landcare Awards program. These in early 2019, when 538 primary prestigious awards acknowledge schools and early learning centres a school, youth organisation or young across the country received a grant community landcare team which of up to $1,000 each to support the contributes to raising awareness, delivery of environmental projects. sharing knowledge and promoting The Woolworths Junior Landcare participation of land care amongst Grants program aims to young people. The Woolworths inspire students with hands‑on Junior Landcare Award recognises projects that are focused on Junior Landcare teams who sustainable food production, implement land care practices improving waste management within the local community. practices and enhancing native habitats. The Woolworths Junior 64 65 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Giving back to the IMPACT: communities in Commitment 18 Sustainable Development Goal "Landcare Australia’s Junior Landcare program which we operate encourages young people to play an active role in ensuring the safe future of their environment. We’re delighted to be working in partnership with Woolworths to support thousands of children across Through the Woolworths Junior Landcare Grants Australia to get ‘hands on’ with nature.
HIGHLIGHTS 1PERFORMANCE program, we provide funding to inspire the next Our Woolworths Junior Landcare Grants initiative is generation of environmental champions. offering children the opportunity to share knowledge, develop skills and create experiences that foster connections with the environment and community from childhood to adulthood. By working together
2PEOPLE we're inspiring kids, and providing schools and early learning centres the resources they need to champion for the environment. It's important we continue to drive this progress, and engage the entire community Woolworths Junior Landcare Grants in a movement to being more sustainable and active in caring for the environment.”
3PLANET
DR. SHANE NORRISH, CEO LANDCARE AUSTRALIA In June 2018, we phased out the use Landcare Grants program is part In addition, Woolworths is of single‑use plastic shopping bags of Woolworths’ commitment supporting Landcare Australia to nationally. This was a big change to invest in local communities develop their online resources. for our customers and our teams, and supports the next generation This online platform will provide and it has taken time to adjust, but of environmental champions. engaging, age appropriate thanks to our collective efforts, more resources to help teachers, parents,
4PROSPERITY than three billion single‑use plastic Junior Landcare encourages community groups, youth groups bags have now been removed from young people to become aware, and children build knowledge the environment. Our 99c ‘Bag for empowered and active. Woolworths' and create deeper connections to Good’ was launched as part of our support for the program has helped sustainable land management and reusable bag offer, and funds from Junior Landcare inspire thousands conservation activities. the sale of these bags go towards of children to be connected to their the Woolworths Junior Landcare local environment and community. Grants program. Woolworths also sponsors the METRICS 5SUSTAINABILITY Woolworths Junior Landcare Team The first Woolworths Junior Award, a category in the National Landcare Grants were awarded Landcare Awards program. These in early 2019, when 538 primary prestigious awards acknowledge schools and early learning centres a school, youth organisation or young across the country received a grant community landcare team which of up to $1,000 each to support the contributes to raising awareness, delivery of environmental projects. sharing knowledge and promoting The Woolworths Junior Landcare participation of land care amongst Grants program aims to young people. The Woolworths inspire students with hands‑on Junior Landcare Award recognises projects that are focused on Junior Landcare teams who sustainable food production, implement land care practices improving waste management within the local community. practices and enhancing native habitats. The Woolworths Junior 66 67 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Giving back to the IMPACT: communities in Commitment 18 Sustainable which we operate Development Goal Salvation Army Emergency Services The past year has been a particularly tough one "The Salvation Army is deeply grateful for the long‑term for countless Australians who suffered widespread support and generosity provided by Woolworths and our damage due to severe drought, devastating floods joint S.T.A.N.D. partnership, providing Support Through and raging bushfires. Australian Natural Disasters. We remain committed to supporting our communities Through our ongoing S.T.A.N.D. partnership with The Woolworths is an integral part of the life‑changing work
HIGHLIGHTS 1PERFORMANCE Salvation Army we provide Support Through Australian of The Salvation Army, we couldn’t do it without their when in need. Our S.T.A.N.D. partnership with the Natural Disasters. This partnership helps fund the support. Our disaster response teams and chaplains Salvation Army provides Support Through Australian work of The Salvation Army’s Emergency Services (SAES), helping them to effectively prepare to respond support those who are in crisis positively face, and work Natural Disasters, and our partnership with Share the rapidly and provide immediate relief and recovery to through, hugely confronting situations, from their homes Dignity will help address period poverty. communities in need. being flooded or burned by fires, to their properties and livelihoods suffering devastation by drought. In February 2019, Queensland experienced record
breaking monsoonal rains that led to extensive flooding In just the first six weeks after the North Queensland 2PEOPLE and significant loss of livestock and property. The SAES floods, we deployed over 70 personnel, assisted more teams were on the ground in Townsville, operating than 3,600 households and delivered over $1.6 million in out of six community recovery hubs, and provided aid. We also referred 600 people to additional specialist immediate financial assistance, meals, and emotional support services, such as counselling, financial assistance, support to people, many of whom lost all their financial counselling, chaplain and pastoral support. possessions in the floods. Floods, fires and droughts take years to recover from and Woolworths and The Salvation Army jointly launched Our new partnership with Share the Dignity the vital support of Woolworths enables The Salvation 3PLANET an emergency appeal, asking the public to donate at Army to help thousands of people rebuild their lives. is helping women and girls in need our supermarket checkouts, and these funds were used to support flood affected residents in the immediate Thank you Woolworths for your significant investment Woolworths has worked closely with our hunger relief aftermath, as well as during the hot, muddy and messy in people and for remaining faithful in your support as our partners for many years, and when we learnt that some clean‑up operations afterwards. national disaster partner." women in need were opting to feed their children rather We are proud to be supporting The Salvation Army than buy basic sanitary products, we knew we could COMMISSIONERS FLOYD AND TRACEY TIDD, and help them to bring hope where it’s needed most. help address this. Too many women have had to forfeit SALVATION ARMY AUSTRALIA 4PROSPERITY sanitary products because they cannot afford them, instead using socks, newspapers or other means to deal with their period. In March 2019, Woolworths partnered with Share the Dignity, an organisation with a mission to end period poverty, and help provide the basic items that
vulnerable girls and women may be going without. METRICS 5SUSTAINABILITY This partnership has enabled Share the Dignity to increase the availability of Pinkbox Dignity Vending Machines which dispense a free pack of six tampons and two pads. These machines are installed in areas where vulnerable women and girls can easily access them – including in public schools in low socio‑economic areas, homeless hubs, domestic violence refuges, community centres, Aboriginal health services and hospitals. Along with 5c from the sale of every sanitary product in our supermarkets going to Share the Dignity, Woolworths is supporting their August Dignity Drive, encouraging customers to donate product in the collection boxes in our stores. 66 67 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Giving back to the IMPACT: communities in Commitment 18 Sustainable which we operate Development Goal Salvation Army Emergency Services The past year has been a particularly tough one "The Salvation Army is deeply grateful for the long‑term for countless Australians who suffered widespread support and generosity provided by Woolworths and our damage due to severe drought, devastating floods joint S.T.A.N.D. partnership, providing Support Through and raging bushfires. Australian Natural Disasters. We remain committed to supporting our communities Through our ongoing S.T.A.N.D. partnership with The Woolworths is an integral part of the life‑changing work
HIGHLIGHTS 1PERFORMANCE Salvation Army we provide Support Through Australian of The Salvation Army, we couldn’t do it without their when in need. Our S.T.A.N.D. partnership with the Natural Disasters. This partnership helps fund the support. Our disaster response teams and chaplains Salvation Army provides Support Through Australian work of The Salvation Army’s Emergency Services (SAES), helping them to effectively prepare to respond support those who are in crisis positively face, and work Natural Disasters, and our partnership with Share the rapidly and provide immediate relief and recovery to through, hugely confronting situations, from their homes Dignity will help address period poverty. communities in need. being flooded or burned by fires, to their properties and livelihoods suffering devastation by drought. In February 2019, Queensland experienced record
breaking monsoonal rains that led to extensive flooding In just the first six weeks after the North Queensland 2PEOPLE and significant loss of livestock and property. The SAES floods, we deployed over 70 personnel, assisted more teams were on the ground in Townsville, operating than 3,600 households and delivered over $1.6 million in out of six community recovery hubs, and provided aid. We also referred 600 people to additional specialist immediate financial assistance, meals, and emotional support services, such as counselling, financial assistance, support to people, many of whom lost all their financial counselling, chaplain and pastoral support. possessions in the floods. Floods, fires and droughts take years to recover from and Woolworths and The Salvation Army jointly launched Our new partnership with Share the Dignity the vital support of Woolworths enables The Salvation 3PLANET an emergency appeal, asking the public to donate at Army to help thousands of people rebuild their lives. is helping women and girls in need our supermarket checkouts, and these funds were used to support flood affected residents in the immediate Thank you Woolworths for your significant investment Woolworths has worked closely with our hunger relief aftermath, as well as during the hot, muddy and messy in people and for remaining faithful in your support as our partners for many years, and when we learnt that some clean‑up operations afterwards. national disaster partner." women in need were opting to feed their children rather We are proud to be supporting The Salvation Army than buy basic sanitary products, we knew we could COMMISSIONERS FLOYD AND TRACEY TIDD, and help them to bring hope where it’s needed most. help address this. Too many women have had to forfeit SALVATION ARMY AUSTRALIA 4PROSPERITY sanitary products because they cannot afford them, instead using socks, newspapers or other means to deal with their period. In March 2019, Woolworths partnered with Share the Dignity, an organisation with a mission to end period poverty, and help provide the basic items that
vulnerable girls and women may be going without. METRICS 5SUSTAINABILITY This partnership has enabled Share the Dignity to increase the availability of Pinkbox Dignity Vending Machines which dispense a free pack of six tampons and two pads. These machines are installed in areas where vulnerable women and girls can easily access them – including in public schools in low socio‑economic areas, homeless hubs, domestic violence refuges, community centres, Aboriginal health services and hospitals. Along with 5c from the sale of every sanitary product in our supermarkets going to Share the Dignity, Woolworths is supporting their August Dignity Drive, encouraging customers to donate product in the collection boxes in our stores. 68 69 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Creating shared value IMPACT: with our customers Commitment 19
Listening to our customers and providing tailored offerings is vital to delivering the outstanding customer experiences Scan&Go Creating more accessible supermarkets we strive for. Scan&Go allows customers to scan goods Over the last year, we’ve worked closely with a range of with their smartphone as they walk through HIGHLIGHTS 1PERFORMANCE community groups to not only change how we develop the store and pay in the app before tapping off at a dedicated kiosk. our new stores and product range, but also to consider how we can create better experiences for customers and Woolworths Group Head of Payments and Financial team members who are living with a disability, or just Services Paul Monnington said: “Our customers lead need an extra helping hand. busy lives and they want us to make shopping more convenient than ever before. The trial in our Double Our ‘Quiet Hour’ stores are a powerful demonstration of Bay supermarket has been a success, with positive the impact that even a small gesture can have. Five stores
2PEOPLE feedback from our customers and team, and we’re in the North Island now hold regular ‘Quiet Hour’ shopping pleased to now extend the benefits of Scan&Go sessions where the lights are dimmed, announcements and to more shoppers. Most customers in our CBD excess noises are reduced, and there is minimal movement Metro stores just want to duck in and out for afew Voice of Customer Sourcing locally on the shop floor from team members for an hour – creating items, so we expect the speed and ease of Scan&Go will be quite a popular offer in this setting.” a more optimal shopping environment for customers with We run regular Voice of Customer Our customers continue to tell us that VOC improvement autism spectrum disorders. Plans are underway for at least (VOC) surveys so that we can local and more sustainable sourcing We have expanded the Scan&Go trial and it seven more stores throughout the country to start their BIG W has continued to improve is now available for customers at Woolworths understand what our customers are is important to them, and our team own ‘Quiet Hours’ over the next six months. 3PLANET the customer experience in store Metro stores in Pitt Street, Met Centre, George looking for when they interact with of State‑ and Territory‑based local and online. Voice of customer Street and York Street in Sydney’s CBD and us in one of our stores. Our VOC sourcing managers are continually data is used to gain a deeper Woolworths supermarkets in Mona Vale scores for this year indicate that we seeking out products that are grown understanding of customer and Double Bay. continue to have strong performance or produced locally to help us improve needs and behaviours and it and customer satisfaction across our ecological footprint. is central to business decision making. BIG W rolled out VOC the business. training across all stores and support office and is currently
4PROSPERITY sitting on an average VOC score of 70 in F19, which is a two point increase on last year. The Kitchen
‘The Kitchen’ by Woolworths in fruit and vegetables, including Double Bay is our custom‑made some sourced from Green Camel concept offering and has organic, Organic Produce, based an hour
METRICS 5SUSTAINABILITY Eastcoast Beverages Australian Sourced Fresh healthy options and sustainability out of Sydney, who use high‑tech Products 1 (%) initiatives at its heart. organic glasshouses and special water‑efficient systems to reduce Eastcoast Beverages is Eastcoast uses 100% recyclable It has a wide range of organic fruit the use of resources. a third‑generation Australian bottles, their citrus goes to farmers and vegetables, an expanded Macro 100 family business based on the to use as cattle feed, their pulp 96 Wholefoods market range, on‑site ‘The Kitchen’ also provides
Central Coast of New South Wales. from a pulp free product is used as 88 florist, fresh juice bar, barista‑made shopping trolleys made from They create premium quality, an addition to yogurts and desserts organic coffee, healthy take‑away recycled milk bottles and all
100% Australian fresh fruit juices, and the wash down water from the 71 food options, and a wholesome eat eco‑baskets are made from recycled fruit drinks and spring water. plant is used to irrigate the trees in Eastcoast employs more than the orchard. Eastcoast’s mission is in‑cafe which offers a flexitarian soft plastics. The store will also act 25 local staff, and strives to always to be 100% recyclable and 100% range of 100% plant‑based as a trial location for new innovative use locally grown produce in its committed to the environment and burgers, sausages and tofu, as products, with a view to rolling the operations. Eastcoast’s philosophy the people in it. Eastcoast products well as filled pastas and sauces. products out in other parts of the Meat is Return – Regrow –Re‑juice so are available in NSW Supermarkets Fruit and Vegetables Bakery Seafood Sustainable local sourcing is also Woolworths network if successful. that absolutely nothing is wasted. and Metro. a focus, with a range of organic 1 In Australian supermarkets. 68 69 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Creating shared value IMPACT: with our customers Commitment 19
Listening to our customers and providing tailored offerings is vital to delivering the outstanding customer experiences Scan&Go Creating more accessible supermarkets we strive for. Scan&Go allows customers to scan goods Over the last year, we’ve worked closely with a range of with their smartphone as they walk through HIGHLIGHTS 1PERFORMANCE community groups to not only change how we develop the store and pay in the app before tapping off at a dedicated kiosk. our new stores and product range, but also to consider how we can create better experiences for customers and Woolworths Group Head of Payments and Financial team members who are living with a disability, or just Services Paul Monnington said: “Our customers lead need an extra helping hand. busy lives and they want us to make shopping more convenient than ever before. The trial in our Double Our ‘Quiet Hour’ stores are a powerful demonstration of Bay supermarket has been a success, with positive the impact that even a small gesture can have. Five stores
2PEOPLE feedback from our customers and team, and we’re in the North Island now hold regular ‘Quiet Hour’ shopping pleased to now extend the benefits of Scan&Go sessions where the lights are dimmed, announcements and to more shoppers. Most customers in our CBD excess noises are reduced, and there is minimal movement Metro stores just want to duck in and out for afew Voice of Customer Sourcing locally on the shop floor from team members for an hour – creating items, so we expect the speed and ease of Scan&Go will be quite a popular offer in this setting.” a more optimal shopping environment for customers with We run regular Voice of Customer Our customers continue to tell us that VOC improvement autism spectrum disorders. Plans are underway for at least (VOC) surveys so that we can local and more sustainable sourcing We have expanded the Scan&Go trial and it seven more stores throughout the country to start their BIG W has continued to improve is now available for customers at Woolworths understand what our customers are is important to them, and our team own ‘Quiet Hours’ over the next six months. 3PLANET the customer experience in store Metro stores in Pitt Street, Met Centre, George looking for when they interact with of State‑ and Territory‑based local and online. Voice of customer Street and York Street in Sydney’s CBD and us in one of our stores. Our VOC sourcing managers are continually data is used to gain a deeper Woolworths supermarkets in Mona Vale scores for this year indicate that we seeking out products that are grown understanding of customer and Double Bay. continue to have strong performance or produced locally to help us improve needs and behaviours and it and customer satisfaction across our ecological footprint. is central to business decision making. BIG W rolled out VOC the business. training across all stores and support office and is currently
4PROSPERITY sitting on an average VOC score of 70 in F19, which is a two point increase on last year. The Kitchen
‘The Kitchen’ by Woolworths in fruit and vegetables, including Double Bay is our custom‑made some sourced from Green Camel concept offering and has organic, Organic Produce, based an hour
METRICS 5SUSTAINABILITY Eastcoast Beverages Australian Sourced Fresh healthy options and sustainability out of Sydney, who use high‑tech Products 1 (%) initiatives at its heart. organic glasshouses and special water‑efficient systems to reduce Eastcoast Beverages is Eastcoast uses 100% recyclable It has a wide range of organic fruit the use of resources. a third‑generation Australian bottles, their citrus goes to farmers and vegetables, an expanded Macro 100 family business based on the to use as cattle feed, their pulp 96 Wholefoods market range, on‑site ‘The Kitchen’ also provides
Central Coast of New South Wales. from a pulp free product is used as 88 florist, fresh juice bar, barista‑made shopping trolleys made from They create premium quality, an addition to yogurts and desserts organic coffee, healthy take‑away recycled milk bottles and all
100% Australian fresh fruit juices, and the wash down water from the 71 food options, and a wholesome eat eco‑baskets are made from recycled fruit drinks and spring water. plant is used to irrigate the trees in Eastcoast employs more than the orchard. Eastcoast’s mission is in‑cafe which offers a flexitarian soft plastics. The store will also act 25 local staff, and strives to always to be 100% recyclable and 100% range of 100% plant‑based as a trial location for new innovative use locally grown produce in its committed to the environment and burgers, sausages and tofu, as products, with a view to rolling the operations. Eastcoast’s philosophy the people in it. Eastcoast products well as filled pastas and sauces. products out in other parts of the Meat is Return – Regrow –Re‑juice so are available in NSW Supermarkets Fruit and Vegetables Bakery Seafood Sustainable local sourcing is also Woolworths network if successful. that absolutely nothing is wasted. and Metro. a focus, with a range of organic 1 In Australian supermarkets. 70 71 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Responsible service IMPACT: Responsible gaming IMPACT: of alcohol Commitment 20 Commitment 20 Sustainable Sustainable Development Goal ALH acknowledges that problem gambling is a serious Development Goal community issue, and have taken steps to enhance its responsible gaming practices. This includes enhancing We recognise our obligations regarding the responsible training programs for our team members and precluding service, sale and marketing of alcohol and strive to be an the service of complimentary alcohol in gaming rooms. industry leader in this important area.
HIGHLIGHTS 1PERFORMANCE
• Enhanced programs and customer other areas of the hotel, as to not engagement to promote voluntary to attract children. pre‑commitment to gaming limits
6. We offer and promote voluntary 2PEOPLE by customers pre‑commitment – a system that • Enhancements to its privacy training helps players stick to their limit The Australian Leisure and procedures. by nominating maximum spending safer drinking culture in Australia. or time limits on gaming machines. DrinkIQ Development of Delivery Code and Hospitality Group These commitments are underpinned DrinkIQ is a responsible drinking DrinkWise develops and implements of Conduct by ALH's Responsible Gaming Charter 7. We train our staff to be aware of a range of national information and training program developed by our Working with Retail Drinks Australia (ALH) and its Australia‑wide voluntary behaviour that may indicate gambling education campaigns, and provides customer pre‑commitment program, problems and to provide appropriate trading partner Diageo that we are (RDA) we have developed an 3PLANET practical resources to help inform working to implement across the industry applicable Delivery Code which is aimed at helping customers customer care. We require all ALH and support the community about As the Woolworths Group has Endeavour Drinks business. We are of Conduct (Code) which will be a significant stake in ALH, and to stay in control of their gaming. hotel managers and RG hosts to in the early stages planning the roll alcohol use. complete additional advanced adopted by RDA members across recognises that problem gambling These measures will ensure that ALH out of this program to our teams. responsible gambling training. In addition to our usual storewide the board (including Endeavour is a serious community issue, an continues to be the industry leader in responsible consumption messaging, Drinks, Coles and other independent independent management review the responsible service of alcohol and 8. We partner with expert groups ABAC we also support DrinkWise with retailers). Much of the Code into ALH responsible gaming practices gaming products. and specialists who can help staff We were the first retailer to programs such as the tailored has been based on our internal was conducted in 2018. As a result and patrons deal with problem ALH also recognises that problem 4PROSPERITY subscribe to the Alcohol Beverages campaign run annually in our RSA policies. of the review, ALH took a number gambling, including Gamblers’ Help gambling is a serious community issue Advertising Code (ABAC); 'Schoolies hot‑spot' stores. of steps to enhance its responsible (Australia’s leading professional and takes its obligations to promote a voluntary responsible marketing Liquor Accords Portal launched gaming practices including immediate counselling service) and the responsible gaming very seriously. ALH’s code for industry. We have been RSA Mystery Shops We have launched an internal introduction of a uniform policy across Salvation Army. Hotel and Gambling Charter (introduced a direct signatory since 2013, and The ID25 Mystery Shop program ‘Liquor Accords Portal’ which is the organisation and precluding the in 2010, as updated in 2018): 9. We ensure that ATM machines, regularly engage with ABAC’s operates in all of our physical BWS a platform connecting our store service of complimentary alcohol where approved, are provided for management committee regarding and Dan Murphy's sites, as well as teams with information and in gaming rooms. 1. We provide a safe, friendly changes in advertising platforms the convenience of all patrons across our online businesses. This resources provided by Liquor environment in which all hotel METRICS 5SUSTAINABILITY In addition, a report commissioned in a safe, central location and not such as social media. As a signatory, program involves mystery shoppers Accords across Australia. customers can socialise and enjoy in 2017 by ALH was conducted by in gaming areas. we submit the vast majority of our and tests whether our Community themselves in a good atmosphere. The portal replaces a manual the Responsible Gambling Council marketing campaigns to the ABAC Charter (which outlines our formal 10. We do not serve complimentary contact and engagement method of Canada (RGCC) to assess 2. We provide good value, good Alcohol Advertising Pre‑Vetting commitment to the communities alcohol in gaming rooms. and will empower store teams to ALH’s gaming operations against quality meals and family friendly Service, which considers whether that we serve) and ID25 Policy are drive community engagement with world best practice. This extensive dining experiences. 11. We support local communities our marketing plans are consistent working well. Each Dan Murphy's other local industry representatives, review endorsed ALH’s culture and in numerous ways, including working with the ABAC. store is tested once every eight 3. We believe we have a shared businesses, council and local police. commitment to responsible gaming, with charities to raise money weeks, while BWS stores are tested responsibility, along with We are active in local liquor accords through training, communication and through our hotels. DrinkWise twice a year to ensure that we are individuals, families, communities where they exist. responsible practices. The RGCC made We have continued our long asking customers that appear under a number of recommendations that will and governments, to ensure 12. We conduct internal and external standing relationship with 25 for ID prior to processing a sale. enhance ALH’s responsible gambling responsible behaviour. audits to ensure we deliver on our commitment to be Australia’s most DrinkWise again in F19. DrinkWise practices, which ALH has adopted. 4. We do not conduct responsible operator of hotels. is an independent, not‑for‑profit promotions which encourage organisation primarily focused on ALH has committed to and is implementing: irresponsible drinking. 13. We have introduced a national helping bring about a healthier and Gaming Code of Conduct to ensure 5. We restrict gaming room access • Enhanced training programs to assist a consistent approach to customer to adults and ensure gaming rooms gaming staff with customer care engagement across the business. are screened or separated from 70 71 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Responsible service IMPACT: Responsible gaming IMPACT: of alcohol Commitment 20 Commitment 20 Sustainable Sustainable Development Goal ALH acknowledges that problem gambling is a serious Development Goal community issue, and have taken steps to enhance its responsible gaming practices. This includes enhancing We recognise our obligations regarding the responsible training programs for our team members and precluding service, sale and marketing of alcohol and strive to be an the service of complimentary alcohol in gaming rooms. industry leader in this important area.
HIGHLIGHTS 1PERFORMANCE
• Enhanced programs and customer other areas of the hotel, as to not engagement to promote voluntary to attract children. pre‑commitment to gaming limits
6. We offer and promote voluntary 2PEOPLE by customers pre‑commitment – a system that • Enhancements to its privacy training helps players stick to their limit The Australian Leisure and procedures. by nominating maximum spending safer drinking culture in Australia. or time limits on gaming machines. DrinkIQ Development of Delivery Code and Hospitality Group These commitments are underpinned DrinkIQ is a responsible drinking DrinkWise develops and implements of Conduct by ALH's Responsible Gaming Charter 7. We train our staff to be aware of a range of national information and training program developed by our Working with Retail Drinks Australia (ALH) and its Australia‑wide voluntary behaviour that may indicate gambling education campaigns, and provides customer pre‑commitment program, problems and to provide appropriate trading partner Diageo that we are (RDA) we have developed an 3PLANET practical resources to help inform working to implement across the industry applicable Delivery Code which is aimed at helping customers customer care. We require all ALH and support the community about As the Woolworths Group has Endeavour Drinks business. We are of Conduct (Code) which will be a significant stake in ALH, and to stay in control of their gaming. hotel managers and RG hosts to in the early stages planning the roll alcohol use. complete additional advanced adopted by RDA members across recognises that problem gambling These measures will ensure that ALH out of this program to our teams. responsible gambling training. In addition to our usual storewide the board (including Endeavour is a serious community issue, an continues to be the industry leader in responsible consumption messaging, Drinks, Coles and other independent independent management review the responsible service of alcohol and 8. We partner with expert groups ABAC we also support DrinkWise with retailers). Much of the Code into ALH responsible gaming practices gaming products. and specialists who can help staff We were the first retailer to programs such as the tailored has been based on our internal was conducted in 2018. As a result and patrons deal with problem ALH also recognises that problem 4PROSPERITY subscribe to the Alcohol Beverages campaign run annually in our RSA policies. of the review, ALH took a number gambling, including Gamblers’ Help gambling is a serious community issue Advertising Code (ABAC); 'Schoolies hot‑spot' stores. of steps to enhance its responsible (Australia’s leading professional and takes its obligations to promote a voluntary responsible marketing Liquor Accords Portal launched gaming practices including immediate counselling service) and the responsible gaming very seriously. ALH’s code for industry. We have been RSA Mystery Shops We have launched an internal introduction of a uniform policy across Salvation Army. Hotel and Gambling Charter (introduced a direct signatory since 2013, and The ID25 Mystery Shop program ‘Liquor Accords Portal’ which is the organisation and precluding the in 2010, as updated in 2018): 9. We ensure that ATM machines, regularly engage with ABAC’s operates in all of our physical BWS a platform connecting our store service of complimentary alcohol where approved, are provided for management committee regarding and Dan Murphy's sites, as well as teams with information and in gaming rooms. 1. We provide a safe, friendly changes in advertising platforms the convenience of all patrons across our online businesses. This resources provided by Liquor environment in which all hotel METRICS 5SUSTAINABILITY In addition, a report commissioned in a safe, central location and not such as social media. As a signatory, program involves mystery shoppers Accords across Australia. customers can socialise and enjoy in 2017 by ALH was conducted by in gaming areas. we submit the vast majority of our and tests whether our Community themselves in a good atmosphere. The portal replaces a manual the Responsible Gambling Council marketing campaigns to the ABAC Charter (which outlines our formal 10. We do not serve complimentary contact and engagement method of Canada (RGCC) to assess 2. We provide good value, good Alcohol Advertising Pre‑Vetting commitment to the communities alcohol in gaming rooms. and will empower store teams to ALH’s gaming operations against quality meals and family friendly Service, which considers whether that we serve) and ID25 Policy are drive community engagement with world best practice. This extensive dining experiences. 11. We support local communities our marketing plans are consistent working well. Each Dan Murphy's other local industry representatives, review endorsed ALH’s culture and in numerous ways, including working with the ABAC. store is tested once every eight 3. We believe we have a shared businesses, council and local police. commitment to responsible gaming, with charities to raise money weeks, while BWS stores are tested responsibility, along with We are active in local liquor accords through training, communication and through our hotels. DrinkWise twice a year to ensure that we are individuals, families, communities where they exist. responsible practices. The RGCC made We have continued our long asking customers that appear under a number of recommendations that will and governments, to ensure 12. We conduct internal and external standing relationship with 25 for ID prior to processing a sale. enhance ALH’s responsible gambling responsible behaviour. audits to ensure we deliver on our commitment to be Australia’s most DrinkWise again in F19. DrinkWise practices, which ALH has adopted. 4. We do not conduct responsible operator of hotels. is an independent, not‑for‑profit promotions which encourage organisation primarily focused on ALH has committed to and is implementing: irresponsible drinking. 13. We have introduced a national helping bring about a healthier and Gaming Code of Conduct to ensure 5. We restrict gaming room access • Enhanced training programs to assist a consistent approach to customer to adults and ensure gaming rooms gaming staff with customer care engagement across the business. are screened or separated from 72 73 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Making healthier IMPACT: eating easier Commitment 20 Sustainable Healthier communities Development Goal Health in New Zealand
Our customers tell us that health is important and want us In New Zealand in the to make healthier eating easier for them and their families. last year, key health initiatives included: We are committed to helping our customers do more of the Fresh Food Kids Supporting active, healthy • Participating in the NZ
healthy things they’re already doing, and supporting our Discovery Tours lifestyles in children Heart Foundation’s Heart HIGHLIGHTS 1PERFORMANCE customers to make healthier choices no matter where they SAFE reformulation We extended this free initiative to We continue our support of program by removing are on their health journey. Woolworths stores nationally in Life Education, Cricket Australia, 14.8 tonnes of sugar from our Our Brand breakfast July 2018, and so far over 200,000 Surfing Australia and Netball Australia. cereals and 12.4 tonnes students have taken part. of salt from our processed meat (including bacon and ham) in the past 12 months
2PEOPLE • Rolling out Health Star Ratings across 99% of our eligible Our Brand products (more than Healthier foods Healthier stores 1,000 foods) Woolworths Centre for Providing healthier recipes, • Continuing our removal Providing Making it easier to select Promoting fresh produce Childhood Nutrition Research food ideas and tips of artificial colours and
flavours (now complete 3PLANET healthier foods healthier products in our stores Since launching in January 2018, In September 2018 we launched our for 94% of Own Brand products). with innovation In November 2018, we achieved In the past 12 months, 116 stores the centre’s research has focused on ‘Healthier Easier’ online hub, with Our Macro Wholefoods our goal of including Health have been reformatted to highlight delivering innovative nutrition research recipes, tips and food ideas to help Market brand is Australia’s Star Ratings on 100% of eligible destinations for berries, avocados, that enhances the understanding of inspire our customers to eat healthier. leading supermarket health Own Brand products (more than organics, Odd Bunch and nuts childhood nutrition. food brand. There are now 2,200 foods). to make it easier for customers more than 800 products to identify and shop these key We have also introduced key 4PROSPERITY growth categories. in the range, including the dietary and lifestyle attributes launch of Macro Green onto shelf tickets for Own Brand We’ve continued our highly Banana Flour, Macro products, including whether the successful ‘Free Fruit for Kids’ Making foods healthier with reformulation Sweet Potato and Broccoli products are vegetarian, organic program in all of our supermarkets In the last 12 months, we’ve improved the nutritional value of more than 70 Own Brand Powder and Macro Miso & or a source of protein. This across Australia. An estimated 32 Mushroom Kale Corn Chips products including everyday categories such as breakfast cereals, ready meals, condiments system is designed to help our million pieces of fruit have been and canned foods. Over the last seven years, our reformulation efforts have resulted in: in the last 12 months. customers more easily identify donated in the last 12 months.
METRICS 5SUSTAINABILITY products that suit their dietary and lifestyle needs. 440 tonnes less salt Australia's healthiest Reducing prices on Own Brands ‘healthier for you’ items 135 tonnes less saturated fat In April 2019 the George To help make healthier choices Institute for Global Health more affordable, we've invested found that Woolworths Own millions by offering every day 340 tonnes less sugar Brands were the healthiest low prices and dropping the price of any major Australian on more than 230 'healthier' items supermarket based on mean (including core foods or foods 14,000 tonnes more whole grains Health Star Ratings compared with 4 or more Health Stars) over to Coles, Aldi and IGA 1. the last 12 months. Our Brand products free of artificial 100% colours, flavours and added MSG
1 The George Institute for Global Health. FoodSwitch: State of the Food Supply. April 2019. 72 73 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP
Making healthier IMPACT: eating easier Commitment 20 Sustainable Healthier communities Development Goal Health in New Zealand
Our customers tell us that health is important and want us In New Zealand in the to make healthier eating easier for them and their families. last year, key health initiatives included: We are committed to helping our customers do more of the Fresh Food Kids Supporting active, healthy • Participating in the NZ
healthy things they’re already doing, and supporting our Discovery Tours lifestyles in children Heart Foundation’s Heart HIGHLIGHTS 1PERFORMANCE customers to make healthier choices no matter where they SAFE reformulation We extended this free initiative to We continue our support of program by removing are on their health journey. Woolworths stores nationally in Life Education, Cricket Australia, 14.8 tonnes of sugar from our Our Brand breakfast July 2018, and so far over 200,000 Surfing Australia and Netball Australia. cereals and 12.4 tonnes students have taken part. of salt from our processed meat (including bacon and ham) in the past 12 months
2PEOPLE • Rolling out Health Star Ratings across 99% of our eligible Our Brand products (more than Healthier foods Healthier stores 1,000 foods) Woolworths Centre for Providing healthier recipes, • Continuing our removal Providing Making it easier to select Promoting fresh produce Childhood Nutrition Research food ideas and tips of artificial colours and
flavours (now complete 3PLANET healthier foods healthier products in our stores Since launching in January 2018, In September 2018 we launched our for 94% of Own Brand products). with innovation In November 2018, we achieved In the past 12 months, 116 stores the centre’s research has focused on ‘Healthier Easier’ online hub, with Our Macro Wholefoods our goal of including Health have been reformatted to highlight delivering innovative nutrition research recipes, tips and food ideas to help Market brand is Australia’s Star Ratings on 100% of eligible destinations for berries, avocados, that enhances the understanding of inspire our customers to eat healthier. leading supermarket health Own Brand products (more than organics, Odd Bunch and nuts childhood nutrition. food brand. There are now 2,200 foods). to make it easier for customers more than 800 products to identify and shop these key We have also introduced key 4PROSPERITY growth categories. in the range, including the dietary and lifestyle attributes launch of Macro Green onto shelf tickets for Own Brand We’ve continued our highly Banana Flour, Macro products, including whether the successful ‘Free Fruit for Kids’ Making foods healthier with reformulation Sweet Potato and Broccoli products are vegetarian, organic program in all of our supermarkets In the last 12 months, we’ve improved the nutritional value of more than 70 Own Brand Powder and Macro Miso & or a source of protein. This across Australia. An estimated 32 Mushroom Kale Corn Chips products including everyday categories such as breakfast cereals, ready meals, condiments system is designed to help our million pieces of fruit have been and canned foods. Over the last seven years, our reformulation efforts have resulted in: in the last 12 months. customers more easily identify donated in the last 12 months.
METRICS 5SUSTAINABILITY products that suit their dietary and lifestyle needs. 440 tonnes less salt Australia's healthiest Reducing prices on Own Brands ‘healthier for you’ items 135 tonnes less saturated fat In April 2019 the George To help make healthier choices Institute for Global Health more affordable, we've invested found that Woolworths Own millions by offering every day 340 tonnes less sugar Brands were the healthiest low prices and dropping the price of any major Australian on more than 230 'healthier' items supermarket based on mean (including core foods or foods 14,000 tonnes more whole grains Health Star Ratings compared with 4 or more Health Stars) over to Coles, Aldi and IGA 1. the last 12 months. Our Brand products free of artificial 100% colours, flavours and added MSG
1 The George Institute for Global Health. FoodSwitch: State of the Food Supply. April 2019. 74 75 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Sustainability metrics
TOTAL CO2 EMISSIONS (t CO2‑e) EMISSIONS FROM FACILITIES (t CO2‑e)
SCOPE 1 SCOPE 2 SCOPE 3 TOTAL ALH ALH 33,829 222,689 30,931 287,449 BIG W BIG W 4,169 128,180 22,568 154,917 BWS BWS 3,082 44,577 6,850 54,509 Corporate Corporate 1,443 29,025 4,661 35,129
Dan Murphys Dan Murphys 6,976 52,177 6,767 65,920 HIGHLIGHTS 1PERFORMANCE FABCOT FABCOT 81 5,628 729 6,438 Logistics Logistics 338 87,451 16,708 104,497 Masters New Zealand 51,300 35,115 17,957 104,372 Supermarkets and Metro 452,583 1,486,839 262,560 2,201,982 New Zealand Grand Total 553,801 2,091,681 369,731 3,015,213 Petrol
Supermarkets and Metro 2PEOPLE Thomas Dux TRANSPORT EMISSIONS BY USE (t CO2e) 0.0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 END USE AUSTRALIA NEW ZEALAND 2017 2018 2019 Business Travel 4,863 2,232 Home delivery 10,475 10,555 Logistics 3rd Party Road 95,816 23,296
3PLANET ELECTRICITY USE (MWh) Trolley Collection 15,914 –
ALH BIG W WASTE (tonnes) BWS Australia – material diverted from landfill Corporate 2015 2016 2017 2018 2019
Dan Murphys 4PROSPERITY Food waste to composting or energy 1 17,359 15,791 16,877 16,187 50,626 FABCOT Food waste to farmers – – – – 32,318 Logistics Food to charity 2,956 3,231 4,015 4,062 7,791 Masters Cardboard 192,170 218,535 222,145 229,821 233,167 New Zealand Plastic film 7,028 8,226 9,232 9,088 8,998 Petrol Polystyrene 3 – – – –
Supermarkets and Metro Other 131 47 296 46 40 METRICS 5SUSTAINABILITY Thomas Dux Total Australia 219,647 245,830 252,565 259,204 332,940 0 500,000 1,000,000 1,500,000 2,000,000 New Zealand – materials diverted from landfill 2017 2018 2019 2015 2 2016 2017 2018 2019 Cardboard 25,324 26,057 26,709 28,219 28,499 Plastic film 1,253 1,307 1,296 1,412 1,596 Food waste to farmers 807 787 768 1,265 887 Food to charity 3 509 509 509 1,895 2,603 Other 435 440 1,193 836 2,410 Total NZ 28,328 29,100 30,475 33,627 35,994
Total diverted 247,975 274,930 283,040 292,831 368,935
Total Waste to landfill 97,389 1 F19 food waste to composting or energy scope has been updated from prior years. 2 F15 total excluded Farmers and charity. 3 2018 Food waste to farmers and charity methodology has been updated from prior years. 74 75 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Sustainability metrics
TOTAL CO2 EMISSIONS (t CO2‑e) EMISSIONS FROM FACILITIES (t CO2‑e)
SCOPE 1 SCOPE 2 SCOPE 3 TOTAL ALH ALH 33,829 222,689 30,931 287,449 BIG W BIG W 4,169 128,180 22,568 154,917 BWS BWS 3,082 44,577 6,850 54,509 Corporate Corporate 1,443 29,025 4,661 35,129
Dan Murphys Dan Murphys 6,976 52,177 6,767 65,920 HIGHLIGHTS 1PERFORMANCE FABCOT FABCOT 81 5,628 729 6,438 Logistics Logistics 338 87,451 16,708 104,497 Masters New Zealand 51,300 35,115 17,957 104,372 Supermarkets and Metro 452,583 1,486,839 262,560 2,201,982 New Zealand Grand Total 553,801 2,091,681 369,731 3,015,213 Petrol
Supermarkets and Metro 2PEOPLE Thomas Dux TRANSPORT EMISSIONS BY USE (t CO2e) 0.0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 END USE AUSTRALIA NEW ZEALAND 2017 2018 2019 Business Travel 4,863 2,232 Home delivery 10,475 10,555 Logistics 3rd Party Road 95,816 23,296
3PLANET ELECTRICITY USE (MWh) Trolley Collection 15,914 –
ALH BIG W WASTE (tonnes) BWS Australia – material diverted from landfill Corporate 2015 2016 2017 2018 2019
Dan Murphys 4PROSPERITY Food waste to composting or energy 1 17,359 15,791 16,877 16,187 50,626 FABCOT Food waste to farmers – – – – 32,318 Logistics Food to charity 2,956 3,231 4,015 4,062 7,791 Masters Cardboard 192,170 218,535 222,145 229,821 233,167 New Zealand Plastic film 7,028 8,226 9,232 9,088 8,998 Petrol Polystyrene 3 – – – –
Supermarkets and Metro Other 131 47 296 46 40 METRICS 5SUSTAINABILITY Thomas Dux Total Australia 219,647 245,830 252,565 259,204 332,940 0 500,000 1,000,000 1,500,000 2,000,000 New Zealand – materials diverted from landfill 2017 2018 2019 2015 2 2016 2017 2018 2019 Cardboard 25,324 26,057 26,709 28,219 28,499 Plastic film 1,253 1,307 1,296 1,412 1,596 Food waste to farmers 807 787 768 1,265 887 Food to charity 3 509 509 509 1,895 2,603 Other 435 440 1,193 836 2,410 Total NZ 28,328 29,100 30,475 33,627 35,994
Total diverted 247,975 274,930 283,040 292,831 368,935
Total Waste to landfill 97,389 1 F19 food waste to composting or energy scope has been updated from prior years. 2 F15 total excluded Farmers and charity. 3 2018 Food waste to farmers and charity methodology has been updated from prior years. 76 77 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Workplace metrics
BOARD OF DIRECTORS Freedom of Association
FEMALE MALE TOTAL We have longstanding relationships with the unions that represent our employees, and 80% of our workplace is covered by Enterprise Bargaining Agreements (EBAs). <25 0 0 0 25–<35 0 0 0 GROUP EBA EMPLOYEES TOTAL HEADCOUNT % 35–<45 0 0 0 ALH (Venue & Support) 0 11,377 0.0% 45–<55 3 1 4 Big W 15,762 17,438 90.4%
HIGHLIGHTS 1PERFORMANCE 55–<65 1 1 2 Endeavour Drinks 7,418 14,600 50.8% >65 1 2 3 Food Group 126,088 142,536 88.5% Total 5 4 9 Statewide Independent Wholesalers 1 329 360 91.4% Group Support 6,976 9,706 71.9% Total Employees 156,573 196,017 79.9% FEMALE REPRESENTATION BY EMPLOYMENT CATEGORY 1 1 Wholesale customer stores. Executives 29%
2PEOPLE Senior Managers 34% WORKFORCE AND TURNOVER Managers 43% Office support 55% Headcount by Business Unit Technicians and trades 11% GROUP/BRAND FEMALE MALE TOTAL Sales 59% ALH (Venue & Support) 6,348 5,029 11,377 Other 18% Big W 11,990 5,448 17,438
Endeavour Drinks 5,556 9,044 14,600 3PLANET RATIO OF BASIC SALARY AND REMUNERATION OF FEMALE TO MALE EMPLOYEES Food Group 80,970 61,566 142,536 2 BY EMPLOYMENT CATEGORY 1 Statewide Independent Wholesalers 27 333 360 This table averages all the salaries within the non‑managerial or managerial category. Within each category, there are different Group Support 2,270 7,436 9,706 roles and levels of positions. The ratio to average reported here does not compare like‑with‑like roles and does not represent TOTAL 107,161 88,856 196,017 the Pay Parity Project. 2 Wholesale customer stores.
4PROSPERITY 2019 2018 Head‑count by employee type AVERAGE AVERAGE ANNUALISED RATIO TO ANNUALISED RATIO TO FEMALE MALE TOTAL SALARY AVERAGE SALARY AVERAGE Full‑time 24,528 30,447 54,975 Non‑managerial Female $47,298.38 96.44% $47,412.27 97.05% Part‑time 50,660 30,303 80,963 Non‑managerial Male $51,237.68 104.47% $50,638.30 103.65% Casual 31,973 28,106 60,079 Average Salary $49,044.65 $48,854.17 Total 107,161 88,856 196,017
METRICS 5SUSTAINABILITY Managerial Female $79,747.45 92.98% $77,282.05 92.40% Managerial Male $90,209.77 105.17% $87,952.71 105.16% Average Salary $85,771.27 $83,635.69 Head‑count by region FEMALE MALE TOTAL ACT 1,338 1,396 2,734 RESPECT AND DIGNITY NSW 31,591 26,889 58,480 We expect our employees to treat each other, our customers and our suppliers with respect and dignity. We train our NT 1,017 788 1,805 employees on these expectations, but sometimes we do have issues which escalate to external jurisdictions. We are working towards a resolution on the outstanding claims. QLD 22,524 17,048 39,572 SA 6,085 5,671 11,756 Discrimination TAS 2,667 2,068 4,735 VIC 22,401 20,383 42,784 No of claims lodged in Australia during the year 18 WA 9,082 6,402 15,484 Number resolved in financial year 20 NZ 10,192 8,075 18,267 China 251 110 361 Bangladesh 6 25 31 Thailand 7 1 8 Total 107,161 88,856 196,017 1 This is provided from the WGEA report which has an extraction date of 1/1/2019 and is for Australian based Team Members only. 76 77 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Workplace metrics
BOARD OF DIRECTORS Freedom of Association
FEMALE MALE TOTAL We have longstanding relationships with the unions that represent our employees, and 80% of our workplace is covered by Enterprise Bargaining Agreements (EBAs). <25 0 0 0 25–<35 0 0 0 GROUP EBA EMPLOYEES TOTAL HEADCOUNT % 35–<45 0 0 0 ALH (Venue & Support) 0 11,377 0.0% 45–<55 3 1 4 Big W 15,762 17,438 90.4%
HIGHLIGHTS 1PERFORMANCE 55–<65 1 1 2 Endeavour Drinks 7,418 14,600 50.8% >65 1 2 3 Food Group 126,088 142,536 88.5% Total 5 4 9 Statewide Independent Wholesalers 1 329 360 91.4% Group Support 6,976 9,706 71.9% Total Employees 156,573 196,017 79.9% FEMALE REPRESENTATION BY EMPLOYMENT CATEGORY 1 1 Wholesale customer stores. Executives 29%
2PEOPLE Senior Managers 34% WORKFORCE AND TURNOVER Managers 43% Office support 55% Headcount by Business Unit Technicians and trades 11% GROUP/BRAND FEMALE MALE TOTAL Sales 59% ALH (Venue & Support) 6,348 5,029 11,377 Other 18% Big W 11,990 5,448 17,438
Endeavour Drinks 5,556 9,044 14,600 3PLANET RATIO OF BASIC SALARY AND REMUNERATION OF FEMALE TO MALE EMPLOYEES Food Group 80,970 61,566 142,536 2 BY EMPLOYMENT CATEGORY 1 Statewide Independent Wholesalers 27 333 360 This table averages all the salaries within the non‑managerial or managerial category. Within each category, there are different Group Support 2,270 7,436 9,706 roles and levels of positions. The ratio to average reported here does not compare like‑with‑like roles and does not represent TOTAL 107,161 88,856 196,017 the Pay Parity Project. 2 Wholesale customer stores.
4PROSPERITY 2019 2018 Head‑count by employee type AVERAGE AVERAGE ANNUALISED RATIO TO ANNUALISED RATIO TO FEMALE MALE TOTAL SALARY AVERAGE SALARY AVERAGE Full‑time 24,528 30,447 54,975 Non‑managerial Female $47,298.38 96.44% $47,412.27 97.05% Part‑time 50,660 30,303 80,963 Non‑managerial Male $51,237.68 104.47% $50,638.30 103.65% Casual 31,973 28,106 60,079 Average Salary $49,044.65 $48,854.17 Total 107,161 88,856 196,017
METRICS 5SUSTAINABILITY Managerial Female $79,747.45 92.98% $77,282.05 92.40% Managerial Male $90,209.77 105.17% $87,952.71 105.16% Average Salary $85,771.27 $83,635.69 Head‑count by region FEMALE MALE TOTAL ACT 1,338 1,396 2,734 RESPECT AND DIGNITY NSW 31,591 26,889 58,480 We expect our employees to treat each other, our customers and our suppliers with respect and dignity. We train our NT 1,017 788 1,805 employees on these expectations, but sometimes we do have issues which escalate to external jurisdictions. We are working towards a resolution on the outstanding claims. QLD 22,524 17,048 39,572 SA 6,085 5,671 11,756 Discrimination TAS 2,667 2,068 4,735 VIC 22,401 20,383 42,784 No of claims lodged in Australia during the year 18 WA 9,082 6,402 15,484 Number resolved in financial year 20 NZ 10,192 8,075 18,267 China 251 110 361 Bangladesh 6 25 31 Thailand 7 1 8 Total 107,161 88,856 196,017 1 This is provided from the WGEA report which has an extraction date of 1/1/2019 and is for Australian based Team Members only. 78 79 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Workplace metrics (continued)
Workforce by age New Hires by Region
AGE BAND FEMALE MALE TOTAL TOTAL NEW HIRES <25 36,007 36,312 72,319 REGION FEMALE MALE TOTAL 25–<35 21,672 24,026 45,698 Australian Capital Territory 389 471 860 35–<45 17,698 13,763 31,461 New South Wales 7,500 7,320 14,820 45–<55 17,081 8,509 25,590 Northern Territory 393 337 730
55–<65 12,392 5,125 17,517 Queensland 5,844 5,022 10,866 HIGHLIGHTS 1PERFORMANCE >65 2,311 1,121 3,432 South Australia 1,302 1,240 2,542 Total 107,161 88,856 196,017 Tasmania 386 399 785 Victoria 4,883 5,166 10,049 Western Australia 2,120 2,012 4,132 Turn over by region New Zealand 3,176 3,351 6,527 TOTAL TERMINATIONS % LABOUR TURNOVER China 103 32 135
2PEOPLE FEMALE MALE TOTAL FEMALE MALE TOTAL Bangladesh 4 10 14 ACT 340 458 798 23.9% 34.5% 29.0% Thailand 4 0 4 NSW 6,512 6,693 13,205 20.3% 25.0% 22.4% Total 26,104 25,360 51,464 NT 347 343 690 36.1% 40.6% 38.2% QLD 5,357 4,754 10,111 24.2% 26.8% 25.4% New Hires by Age SA 1,192 1,297 2,489 19.5% 22.8% 21.1% TAS 403 435 838 14.9% 20.8% 17.5% TOTAL NEW HIRES
3PLANET VIC 4,594 4,933 9,527 19.9% 24.5% 22.0% AGE FEMALE MALE TOTAL WA 1,984 1,855 3,839 23.0% 27.0% 24.8% <25 14,976 15,495 30,471 NZ 2,328 2,492 4,820 22.9% 31.0% 26.5% 25–<35 5,454 5,901 11,355 China 92 46 138 33.6% 28.8% 31.8% 35–<45 2,843 2,243 5,086 Bangladesh 1 2 3 24.5% 40.0% 33.0% 45–<55 2,006 1,055 3,061 Thailand 1 1 2 19.4% 57.1% 28.9% 55–<65 763 586 1,349
Total 23,151 23,309 46,460 21.5% 26.0% 23.6% >65 62 80 142 4PROSPERITY Total 26,104 25,360 51,464
Turnover by age 1 TOTAL TURNOVER % LABOUR TURNOVER Parental Leave FEMALE MALE TOTAL FEMALE MALE TOTAL We offer paid parental leave to eligible Australian‑based team members, which includes 12 weeks paid parental leave, total parental leave period of up to 24 months and superannuation paid on both paid and unpaid leave for the first 12 months. <25 11,850 12,502 24,352 32.3% 33.5% 32.9% Permanent team members are eligible if they have completed six months of continuous service prior to taking the leave
METRICS 5SUSTAINABILITY 25–<35 5,127 6,159 11,286 23.8% 25.9% 24.9% or if they qualify as an eligible casual employee. 35–<45 2,615 2,399 5,014 14.8% 17.5% 15.9% 45–<55 1,905 1,257 3,162 11.1% 14.7% 12.3% 2019 2018 ON PARENTAL TEAM MEMBERS ON PARENTAL TEAM MEMBERS 55–<65 1,189 707 1,896 9.7% 13.9% 10.9% LEAVE IN PERIOD STILL EMPLOYED 2 LEAVE IN PERIOD STILL EMPLOYED 2 >65 465 285 750 20.8% 25.2% 22.3% Female 4,387 4,180 4,373 4,225 Total 23,151 23,309 46,460 21.5% 26.0% 23.6% Male 351 348 38 32 Total 4,738 4,528 4,411 4,257 1 This is provided from the WGEA report which has an extraction date of 1/1/2019 and is for Australian based Team Members only. 2 Team members in this category are considered to have either returned from parental leave during the period, or remain on parental leave at period end. 78 79 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Workplace metrics (continued)
Workforce by age New Hires by Region
AGE BAND FEMALE MALE TOTAL TOTAL NEW HIRES <25 36,007 36,312 72,319 REGION FEMALE MALE TOTAL 25–<35 21,672 24,026 45,698 Australian Capital Territory 389 471 860 35–<45 17,698 13,763 31,461 New South Wales 7,500 7,320 14,820 45–<55 17,081 8,509 25,590 Northern Territory 393 337 730
55–<65 12,392 5,125 17,517 Queensland 5,844 5,022 10,866 HIGHLIGHTS 1PERFORMANCE >65 2,311 1,121 3,432 South Australia 1,302 1,240 2,542 Total 107,161 88,856 196,017 Tasmania 386 399 785 Victoria 4,883 5,166 10,049 Western Australia 2,120 2,012 4,132 Turn over by region New Zealand 3,176 3,351 6,527 TOTAL TERMINATIONS % LABOUR TURNOVER China 103 32 135
2PEOPLE FEMALE MALE TOTAL FEMALE MALE TOTAL Bangladesh 4 10 14 ACT 340 458 798 23.9% 34.5% 29.0% Thailand 4 0 4 NSW 6,512 6,693 13,205 20.3% 25.0% 22.4% Total 26,104 25,360 51,464 NT 347 343 690 36.1% 40.6% 38.2% QLD 5,357 4,754 10,111 24.2% 26.8% 25.4% New Hires by Age SA 1,192 1,297 2,489 19.5% 22.8% 21.1% TAS 403 435 838 14.9% 20.8% 17.5% TOTAL NEW HIRES
3PLANET VIC 4,594 4,933 9,527 19.9% 24.5% 22.0% AGE FEMALE MALE TOTAL WA 1,984 1,855 3,839 23.0% 27.0% 24.8% <25 14,976 15,495 30,471 NZ 2,328 2,492 4,820 22.9% 31.0% 26.5% 25–<35 5,454 5,901 11,355 China 92 46 138 33.6% 28.8% 31.8% 35–<45 2,843 2,243 5,086 Bangladesh 1 2 3 24.5% 40.0% 33.0% 45–<55 2,006 1,055 3,061 Thailand 1 1 2 19.4% 57.1% 28.9% 55–<65 763 586 1,349
Total 23,151 23,309 46,460 21.5% 26.0% 23.6% >65 62 80 142 4PROSPERITY Total 26,104 25,360 51,464
Turnover by age 1 TOTAL TURNOVER % LABOUR TURNOVER Parental Leave FEMALE MALE TOTAL FEMALE MALE TOTAL We offer paid parental leave to eligible Australian‑based team members, which includes 12 weeks paid parental leave, total parental leave period of up to 24 months and superannuation paid on both paid and unpaid leave for the first 12 months. <25 11,850 12,502 24,352 32.3% 33.5% 32.9% Permanent team members are eligible if they have completed six months of continuous service prior to taking the leave
METRICS 5SUSTAINABILITY 25–<35 5,127 6,159 11,286 23.8% 25.9% 24.9% or if they qualify as an eligible casual employee. 35–<45 2,615 2,399 5,014 14.8% 17.5% 15.9% 45–<55 1,905 1,257 3,162 11.1% 14.7% 12.3% 2019 2018 ON PARENTAL TEAM MEMBERS ON PARENTAL TEAM MEMBERS 55–<65 1,189 707 1,896 9.7% 13.9% 10.9% LEAVE IN PERIOD STILL EMPLOYED 2 LEAVE IN PERIOD STILL EMPLOYED 2 >65 465 285 750 20.8% 25.2% 22.3% Female 4,387 4,180 4,373 4,225 Total 23,151 23,309 46,460 21.5% 26.0% 23.6% Male 351 348 38 32 Total 4,738 4,528 4,411 4,257 1 This is provided from the WGEA report which has an extraction date of 1/1/2019 and is for Australian based Team Members only. 2 Team members in this category are considered to have either returned from parental leave during the period, or remain on parental leave at period end. 80 81 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Workplace metrics (continued)
SAFETY AND HEALTH PERFORMANCE Business TRIs by Gender for 2019
FEMALE MALE TOTAL Occupational health and safety management system BUSINESS COUNT % COUNT % COUNT Number and % of employees covered by an occupational health and safety management system that are internally Supermarkets 1,148 68% 539 32% 1,687 and externally audited Supply Chain 67 19% 287 81% 354 All our Australian and New Zealand team members, contractors and labour hire workers are covered by Business Safety BIG W 108 74% 37 26% 145 Management Systems.
Metro 17 50% 17 50% 34 HIGHLIGHTS 1PERFORMANCE All of our safety management systems are internally audited by our Group Safety and Health Assurance function or by Group Endeavour Drinks 83 49% 88 51% 171 Risk Internal Audit. Corporate 10 77% 3 23% 13 All of our safety management systems are externally audited in at least one Jurisdiction where it is required as part of our Woolworths New Zealand 292 55% 238 45% 530 self‑insurer license terms or as part of other legal requirements such as the ACC in New Zealand. ALH Hotels 184 58% 131 42% 315 1 NO. OF PERCENTAGE OF Woolworths Group 1,909 59% 1,340 41% 3,249 BUSINESS TEAM MEMBERS TEAM MEMBERS 1 Excludes Petrol.
2PEOPLE Supermarkets 120,822 100.00% Woolworths Group Limited TRIFR for F17–19 Supply Chain 8,066 100.00% BIG W 17,438 100.00% KPI F17 F18 F19 Metro 3,448 100.00% TRIFR (million hours worked) 17.19 15.90 14.99 Endeavour Drinks 9,579 100.00% TRIFR (200,000 hours worked) 3.44 3.18 3.00 Corporate 1,778 100.00% Woolworths New Zealand 18,267 100.00% TRIs by Nature Group for 2019
3PLANET ALH Hotels 15,917 100.00% FEMALE MALE TOTAL Woolworths Group 195,315 100.00% NATURE GROUP COUNT % COUNT % COUNT 1 The table above provides data for employees only and excludes contractors and labour hire. Traumatic Sprain/Strain 882 59% 619 41% 1501 2 Employees that are not on the core Woolworths payroll system are excluded. Musculoskeletal 437 60% 291 40% 728 Wounds and Lacerations 230 56% 183 44% 413 WORK RELATED INJURIES Fractures 104 58% 74 42% 178
Other 256 60% 173 40% 429 4PROSPERITY Business TRIFR and TRI results for 2019 Woolworths Group 1 1,909 59% 1,340 41% 3,249 BUSINESS PER MILLION HRS PER 200,000 HRS TRI FY19 HOURS WORKED 1 Excludes Petrol. Supermarkets 13.46 2.69 1,687 125,310,506 Supply Chain 28.56 5.71 354 12,394,878 TRIs by Mechanism Group for 2019 BIG W 8.24 1.65 145 17,599,041 FEMALE MALE TOTAL Metro 10.05 2.01 34 3,383,192 MECHANISM GROUP COUNT % COUNT % COUNT
METRICS 5SUSTAINABILITY Endeavour Drinks 13.08 2.62 171 13,069,384 Manual Handling 1,116 56% 876 44% 1,992 Corporate 3.95 0.79 13 3,294,851 Slips/Trips 325 74% 112 26% 437 Woolworths New Zealand 18.17 3.63 530 29,162,892 Hitting Objects 183 58% 134 42% 317 ALH Hotels 25.21 5.04 315 12,494,719 Being hit by moving objects 158 53% 140 47% 298 Woolworths Group 1 14.99 3.00 3,249 216,709,463 Other 127 62% 78 38% 205 1 1 Excludes Petrol. Woolworths Group 1,909 59% 1,340 41% 3,249 1 Excludes Petrol. 80 81 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Workplace metrics (continued)
SAFETY AND HEALTH PERFORMANCE Business TRIs by Gender for 2019
FEMALE MALE TOTAL Occupational health and safety management system BUSINESS COUNT % COUNT % COUNT Number and % of employees covered by an occupational health and safety management system that are internally Supermarkets 1,148 68% 539 32% 1,687 and externally audited Supply Chain 67 19% 287 81% 354 All our Australian and New Zealand team members, contractors and labour hire workers are covered by Business Safety BIG W 108 74% 37 26% 145 Management Systems.
Metro 17 50% 17 50% 34 HIGHLIGHTS 1PERFORMANCE All of our safety management systems are internally audited by our Group Safety and Health Assurance function or by Group Endeavour Drinks 83 49% 88 51% 171 Risk Internal Audit. Corporate 10 77% 3 23% 13 All of our safety management systems are externally audited in at least one Jurisdiction where it is required as part of our Woolworths New Zealand 292 55% 238 45% 530 self‑insurer license terms or as part of other legal requirements such as the ACC in New Zealand. ALH Hotels 184 58% 131 42% 315 1 NO. OF PERCENTAGE OF Woolworths Group 1,909 59% 1,340 41% 3,249 BUSINESS TEAM MEMBERS TEAM MEMBERS 1 Excludes Petrol.
2PEOPLE Supermarkets 120,822 100.00% Woolworths Group Limited TRIFR for F17–19 Supply Chain 8,066 100.00% BIG W 17,438 100.00% KPI F17 F18 F19 Metro 3,448 100.00% TRIFR (million hours worked) 17.19 15.90 14.99 Endeavour Drinks 9,579 100.00% TRIFR (200,000 hours worked) 3.44 3.18 3.00 Corporate 1,778 100.00% Woolworths New Zealand 18,267 100.00% TRIs by Nature Group for 2019
3PLANET ALH Hotels 15,917 100.00% FEMALE MALE TOTAL Woolworths Group 195,315 100.00% NATURE GROUP COUNT % COUNT % COUNT 1 The table above provides data for employees only and excludes contractors and labour hire. Traumatic Sprain/Strain 882 59% 619 41% 1501 2 Employees that are not on the core Woolworths payroll system are excluded. Musculoskeletal 437 60% 291 40% 728 Wounds and Lacerations 230 56% 183 44% 413 WORK RELATED INJURIES Fractures 104 58% 74 42% 178
Other 256 60% 173 40% 429 4PROSPERITY Business TRIFR and TRI results for 2019 Woolworths Group 1 1,909 59% 1,340 41% 3,249 BUSINESS PER MILLION HRS PER 200,000 HRS TRI FY19 HOURS WORKED 1 Excludes Petrol. Supermarkets 13.46 2.69 1,687 125,310,506 Supply Chain 28.56 5.71 354 12,394,878 TRIs by Mechanism Group for 2019 BIG W 8.24 1.65 145 17,599,041 FEMALE MALE TOTAL Metro 10.05 2.01 34 3,383,192 MECHANISM GROUP COUNT % COUNT % COUNT
METRICS 5SUSTAINABILITY Endeavour Drinks 13.08 2.62 171 13,069,384 Manual Handling 1,116 56% 876 44% 1,992 Corporate 3.95 0.79 13 3,294,851 Slips/Trips 325 74% 112 26% 437 Woolworths New Zealand 18.17 3.63 530 29,162,892 Hitting Objects 183 58% 134 42% 317 ALH Hotels 25.21 5.04 315 12,494,719 Being hit by moving objects 158 53% 140 47% 298 Woolworths Group 1 14.99 3.00 3,249 216,709,463 Other 127 62% 78 38% 205 1 1 Excludes Petrol. Woolworths Group 1,909 59% 1,340 41% 3,249 1 Excludes Petrol. 82 83 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Workplace metrics (continued)
Business Close Calls (Near Hits) WORKPLACE ILL HEALTH
WOOLWORTHS GROUP CONTRACTOR AGENCY ‘Ill health’ indicates damage to health and includes diseases, illnesses, and disorders. The terms ‘disease’, ‘illness’, and ‘disorder’ BUSINESS COUNT COUNT COUNT are often used interchangeably and refer to conditions with specific symptoms and diagnoses Supermarkets 235 27 5 Supply Chain 952 100 179 Business Ill Health by Gender for 2019 FEMALE MALE TOTAL BIG W 155 8 5 FY19 HOURS Metro 18 9 0 BUSINESS COUNT % COUNT % COUNT WORKED
HIGHLIGHTS 1PERFORMANCE Endeavour Drinks 134 18 3 Supermarkets 438 68% 207 32% 645 125,310,506 Corporate 4 1 0 Supply Chain 28 19% 120 81% 148 12,394,878 Woolworths New Zealand 421 66 20 BIG W 36 71% 15 29% 51 17,599,041 ALH Hotels Not Available Not Available Not Available Metro 2 22% 7 78% 9 3,383,192 Woolworths Group1 1,919 229 212 Endeavour Drinks 35 50% 35 50% 70 13,069,384 1 Excludes Petrol. Corporate 4 80% 1 20% 5 3,294,851
Woolworths New Zealand 6 86% 1 14% 7 29,162,892 2PEOPLE Business High Potential Work‑related incidents ALH Hotels 34 72% 13 28% 47 12,494,719 1 BUSINESS TOTAL COMBINED CONTRACTORS AGENCY Woolworths Group 583 59% 399 41% 982 216,709,463 1 Excludes Petrol. Supermarkets 0 0 0 Supply Chain 1 1 0 Ill Health TRIs by Nature Group
BIG W 2 2 0 FEMALE MALE TOTAL
3PLANET Metro 0 0 0 NATURE GROUP COUNT % COUNT % COUNT Endeavour Drinks 0 0 0 Musculoskeletal 426 60% 282 40% 708 Corporate 0 0 0 Psychological 82 67% 40 33% 122 Woolworths New Zealand 4 4 0 Digestive System Diseases (e.g Hernia) 16 20% 64 80% 80 ALH Hotels 0 0 0 Other 59 82% 13 18% 72 1 Woolworths Group 7 7 0 Woolworths Group 1 583 59% 399 41% 982 1 Excludes Petrol. 1 Excludes Petrol.
4PROSPERITY
WORK‑RELATED FATALITIES Work‑related fatalities include those where Woolworths Group operations have been a contributing factor.
Team member work‑related fatalities 0 Contractor/agency fatalities 0
METRICS 5SUSTAINABILITY 82 83 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Workplace metrics (continued)
Business Close Calls (Near Hits) WORKPLACE ILL HEALTH
WOOLWORTHS GROUP CONTRACTOR AGENCY ‘Ill health’ indicates damage to health and includes diseases, illnesses, and disorders. The terms ‘disease’, ‘illness’, and ‘disorder’ BUSINESS COUNT COUNT COUNT are often used interchangeably and refer to conditions with specific symptoms and diagnoses Supermarkets 235 27 5 Supply Chain 952 100 179 Business Ill Health by Gender for 2019 FEMALE MALE TOTAL BIG W 155 8 5 FY19 HOURS Metro 18 9 0 BUSINESS COUNT % COUNT % COUNT WORKED
HIGHLIGHTS 1PERFORMANCE Endeavour Drinks 134 18 3 Supermarkets 438 68% 207 32% 645 125,310,506 Corporate 4 1 0 Supply Chain 28 19% 120 81% 148 12,394,878 Woolworths New Zealand 421 66 20 BIG W 36 71% 15 29% 51 17,599,041 ALH Hotels Not Available Not Available Not Available Metro 2 22% 7 78% 9 3,383,192 Woolworths Group1 1,919 229 212 Endeavour Drinks 35 50% 35 50% 70 13,069,384 1 Excludes Petrol. Corporate 4 80% 1 20% 5 3,294,851
Woolworths New Zealand 6 86% 1 14% 7 29,162,892 2PEOPLE Business High Potential Work‑related incidents ALH Hotels 34 72% 13 28% 47 12,494,719 1 BUSINESS TOTAL COMBINED CONTRACTORS AGENCY Woolworths Group 583 59% 399 41% 982 216,709,463 1 Excludes Petrol. Supermarkets 0 0 0 Supply Chain 1 1 0 Ill Health TRIs by Nature Group
BIG W 2 2 0 FEMALE MALE TOTAL
3PLANET Metro 0 0 0 NATURE GROUP COUNT % COUNT % COUNT Endeavour Drinks 0 0 0 Musculoskeletal 426 60% 282 40% 708 Corporate 0 0 0 Psychological 82 67% 40 33% 122 Woolworths New Zealand 4 4 0 Digestive System Diseases (e.g Hernia) 16 20% 64 80% 80 ALH Hotels 0 0 0 Other 59 82% 13 18% 72 1 Woolworths Group 7 7 0 Woolworths Group 1 583 59% 399 41% 982 1 Excludes Petrol. 1 Excludes Petrol.
4PROSPERITY
WORK‑RELATED FATALITIES Work‑related fatalities include those where Woolworths Group operations have been a contributing factor.
Team member work‑related fatalities 0 Contractor/agency fatalities 0
METRICS 5SUSTAINABILITY 84 85 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Workplace metrics (continued) Corporate Governance
RESPONSIBLE SOURCING RISK SEGMENTATION GOVERNANCE, THE BOARD AND DIRECTORS While Woolworths Group operations and supply chains are complex, our aim is to ensure that human rights are respected Corporate governance is at the core of Woolworths’ and the Board’s approach to the enhancement of shareholder value and and understood. For us, responsible sourcing is not about auditing all suppliers in scope of the Standards; it is about taking the protection of shareholder funds. Integral to shareholder value is protecting and enhancing our reputation, which is why the a targeted and informed approach in sectors where there are known risks and where we have limited visibility. Board oversees the Company’s approach to corporate responsibility and sustainability. To this end, we will conduct an annual supplier risk assessment. This assessment is based on a number of factors including The Woolworths Board Sustainability Committee, which meets quarterly, reviews performance on issues of Safety and Health, country risk, third‑party social compliance data and the nature of the supplier arrangement. Based on this assessment, Sustainability and Community Investment. The Sustainability Committee conducts regular site visits across our businesses. suppliers will be categorised into four risk segments and this segmentation will determine the activities suppliers are required
Information on our Board of Directors and the Board Charter is at: HIGHLIGHTS 1PERFORMANCE to complete in order to verify compliance with the Standards. https://www.woolworthsgroup.com.au/page/about‑us/our‑leadership‑team/board‑of‑directors/ Information on our Sustainability Committee and its charter is at: A risk‑based and leverage‑driven approach https://www.woolworthsgroup.com.au/page/about‑us/our‑leadership‑team/board‑committees/ Extreme helps to prioritise supplier engagements More information is in our corporate governance statement: by likelihood of influence supported by https://www.woolworthsgroup.com.au/page/about‑us/our‑approach/corporate‑governance/ information on inherent sourcing risks MODERATE PRIORITY
2PEOPLE to optimise program impacts. RISK MANAGEMENT FRAMEWORK High The continued growth and success of Woolworths depends on the ability of our Company to understand and respond to the METHODOLOGY challenges of an uncertain and changing world. As a large, dispersed and complex organisation, this uncertainty generates risk, with the potential to be a source of both opportunities and threats. By understanding and managing risk, the Group provides RISK LEVERAGE greater certainty and confidence for all its stakeholders. More information about our approach to risk management is in our risk 50% 25% management policy. See: http://www.woolworthsgroup.com.au/icms_docs/182376_Risk_Management_Policy.pdf Medium
RISK Inherent country Length of business
risks from public relationship SENIOR MANAGEMENT 3PLANET MINIMUM SPECIALISED domain data (e.g. The Woolworths Group Executive Committee, chaired by the Chief Executive Officer, provides management oversight of World Bank, Global 40% the effectiveness of the Group’s implementation of the safety and health vision, principles, policy, standards, strategy and Slavery Index, $ spend amongst Low Transparency peer suppliers in initiatives, risk processes, resources, information, compliance and assurance. International, etc.) each business unit DOING THE RIGHT THING 35% D C B A 50% ELEVATE audit data $ spend trend over All of our team members commit to our Code of Conduct to maintain the highest legal, moral and ethical standards in our
the past 3 years dealings with customers, suppliers, team members and local communities. This code outlines how employees can meet the 4PROSPERITY highest standards through their everyday behaviours and choices. LEVERAGE We are committed to continuous improvement, transparency and accountability. We don’t tolerate workplace misconduct under any circumstances and we need our trade partners to work with us to stamp out any and every instance. We have STAKEHOLDER GROUPS AT OUR RETAIL ROUNDTABLES clear, long‑standing and accepted procedures for trade partners to report any issues. However we recognise there is always opportunity to strengthen our systems. Our Speak Up service is available for trade partners to use when normal escalation methods have been exhausted or are inappropriate.
100% METRICS 5SUSTAINABILITY POLITICAL DONATIONS Woolworths Group participates in policy development and advocacy in a manner that is open, transparent, and compliant with 80% all relevant laws. Any political donations made by the Woolworths Group – such as attendance at events, functions and forums organised by parliamentarians and political parties – are reported publicly in line with relevant electoral laws. This is overseen 60% by the Chief Executive Officer and the Head of Government and Industry Affairs in accordance with the Woolworths Group Political Donations Policy.
40% TRANSPARENCY AND REPORTING Woolworths uses the globally recognised reporting framework developed by the Global Reporting Initiative (GRI). The GRI 20% reporting framework sets out the principles and indicators that organisations can use to measure and report their economic, environmental, and social performance. This report has been prepared in accordance with the GRI Standards: Core option. More information can be found in the GRI Index starting on page 91. 0% Roundtable 1 Roundtable 2 Roundtable 3 We continue to report to the Carbon Disclosure Project (CDP), an investor‑driven disclosure initiative enabling companies to report on risk identification and mitigation processes related to climate change. Industry initiative Consultancy and auditing Trade association We are a signatory to the United National Global Compact (UNGC). The Index on page 90 shows our approach to the UNGC Non-profit Retailer Manufacturer/distributor core values. 84 85 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Workplace metrics (continued) Corporate Governance
RESPONSIBLE SOURCING RISK SEGMENTATION GOVERNANCE, THE BOARD AND DIRECTORS While Woolworths Group operations and supply chains are complex, our aim is to ensure that human rights are respected Corporate governance is at the core of Woolworths’ and the Board’s approach to the enhancement of shareholder value and and understood. For us, responsible sourcing is not about auditing all suppliers in scope of the Standards; it is about taking the protection of shareholder funds. Integral to shareholder value is protecting and enhancing our reputation, which is why the a targeted and informed approach in sectors where there are known risks and where we have limited visibility. Board oversees the Company’s approach to corporate responsibility and sustainability. To this end, we will conduct an annual supplier risk assessment. This assessment is based on a number of factors including The Woolworths Board Sustainability Committee, which meets quarterly, reviews performance on issues of Safety and Health, country risk, third‑party social compliance data and the nature of the supplier arrangement. Based on this assessment, Sustainability and Community Investment. The Sustainability Committee conducts regular site visits across our businesses. suppliers will be categorised into four risk segments and this segmentation will determine the activities suppliers are required
Information on our Board of Directors and the Board Charter is at: HIGHLIGHTS 1PERFORMANCE to complete in order to verify compliance with the Standards. https://www.woolworthsgroup.com.au/page/about‑us/our‑leadership‑team/board‑of‑directors/ Information on our Sustainability Committee and its charter is at: A risk‑based and leverage‑driven approach https://www.woolworthsgroup.com.au/page/about‑us/our‑leadership‑team/board‑committees/ Extreme helps to prioritise supplier engagements More information is in our corporate governance statement: by likelihood of influence supported by https://www.woolworthsgroup.com.au/page/about‑us/our‑approach/corporate‑governance/ information on inherent sourcing risks MODERATE PRIORITY
2PEOPLE to optimise program impacts. RISK MANAGEMENT FRAMEWORK High The continued growth and success of Woolworths depends on the ability of our Company to understand and respond to the METHODOLOGY challenges of an uncertain and changing world. As a large, dispersed and complex organisation, this uncertainty generates risk, with the potential to be a source of both opportunities and threats. By understanding and managing risk, the Group provides RISK LEVERAGE greater certainty and confidence for all its stakeholders. More information about our approach to risk management is in our risk 50% 25% management policy. See: http://www.woolworthsgroup.com.au/icms_docs/182376_Risk_Management_Policy.pdf Medium
RISK Inherent country Length of business risks from public relationship SENIOR MANAGEMENT 3PLANET MINIMUM SPECIALISED domain data (e.g. The Woolworths Group Executive Committee, chaired by the Chief Executive Officer, provides management oversight of World Bank, Global 40% the effectiveness of the Group’s implementation of the safety and health vision, principles, policy, standards, strategy and Slavery Index, $ spend amongst Low Transparency peer suppliers in initiatives, risk processes, resources, information, compliance and assurance. International, etc.) each business unit DOING THE RIGHT THING 35% D C B A 50% ELEVATE audit data $ spend trend over All of our team members commit to our Code of Conduct to maintain the highest legal, moral and ethical standards in our the past 3 years dealings with customers, suppliers, team members and local communities. This code outlines how employees can meet the 4PROSPERITY highest standards through their everyday behaviours and choices. LEVERAGE We are committed to continuous improvement, transparency and accountability. We don’t tolerate workplace misconduct under any circumstances and we need our trade partners to work with us to stamp out any and every instance. We have STAKEHOLDER GROUPS AT OUR RETAIL ROUNDTABLES clear, long‑standing and accepted procedures for trade partners to report any issues. However we recognise there is always opportunity to strengthen our systems. Our Speak Up service is available for trade partners to use when normal escalation methods have been exhausted or are inappropriate.
100% METRICS 5SUSTAINABILITY POLITICAL DONATIONS Woolworths Group participates in policy development and advocacy in a manner that is open, transparent, and compliant with 80% all relevant laws. Any political donations made by the Woolworths Group – such as attendance at events, functions and forums organised by parliamentarians and political parties – are reported publicly in line with relevant electoral laws. This is overseen 60% by the Chief Executive Officer and the Head of Government and Industry Affairs in accordance with the Woolworths Group Political Donations Policy.
40% TRANSPARENCY AND REPORTING Woolworths uses the globally recognised reporting framework developed by the Global Reporting Initiative (GRI). The GRI 20% reporting framework sets out the principles and indicators that organisations can use to measure and report their economic, environmental, and social performance. This report has been prepared in accordance with the GRI Standards: Core option. More information can be found in the GRI Index starting on page 91. 0% Roundtable 1 Roundtable 2 Roundtable 3 We continue to report to the Carbon Disclosure Project (CDP), an investor‑driven disclosure initiative enabling companies to report on risk identification and mitigation processes related to climate change. Industry initiative Consultancy and auditing Trade association We are a signatory to the United National Global Compact (UNGC). The Index on page 90 shows our approach to the UNGC Non-profit Retailer Manufacturer/distributor core values. 86 87 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Materiality
The issues that matter UN 2030 Sustainable Development Goals To focus our efforts and maximise our impact, we The chart maps the 11 most material issues identified in our 17 global goals set by the United Nations in 2015, the SDGs define global sustainable development priorities and aspirations for the need to understand the issues that matter most to our recent materiality assessment, grouping them into our three planet. They seek to mobilise global efforts around a common set of goals and targets. We believe that the business community stakeholders. This is done through our materiality strategic pillars of people, planet and prosperity. has a role to play in progressing these important issues, and we have aligned our material issues with the relevant SDGs. assessment process. A robust sustainability materiality These are the current focus of our sustainability efforts. process can help us to: The Approach Other material issues such as safety and health, cyber
HIGHLIGHTS 1PERFORMANCE • Build better relationships with stakeholders security/privacy, customer/product safety and quality are The approach we have taken to analyse Woolworths Group’s material issues aligns to the Global Reporting Initiative Standards 1 • Ensure global megatrends and local market conditions are more mature and are embedded into the business‑as‑usual reporting requirements and includes the following steps: being used to assess and approach risks and opportunities processes. • Desktop review of a range of information sources • Prioritise what to focus on strategically. • Engaging with both internal and external stakeholders • Prioritising what the most material issues are, including analysis of whether these present risks/opportunities over the short or longer‑term time horizons • Internal validation by senior leaders and board.
2PEOPLE STRATEGIC PILLAR MATERIAL ISSUE DEFINITION RELEVANT SDGS Materiality Matrix The success of our business is built on our people, therefore we must Employee continue to focus on attracting, retaining and developing talented teams, The Materiality Matrix shows the interest stakeholders had in the issue (y‑axis), the time of potential impact (x‑axis) and the People engagement and today and into the future, as the nature of work continues to evolve. consequence of the issue to Woolworths Group (size of the bubble). development This also includes our continued focus on maintaining a safe environment for our team members and customers.
We are committed to creating and maintaining a diverse and inclusive Diversity and 3PLANET workforce in terms of gender, age, ethnicity, disability, sexual People inclusion orientation, etc.
Assessing and managing “ethical” and “responsible” issues embedded Sustainable supply within our supply chain and other third‑party partnerships, including both Planet chain Corporate conduct social and environmental issues. Waste and and ethics packaging Implementing effective and meaningful waste management strategies, Waste and Planet including our activities to help our customers manage their own waste
packaging 4PROSPERITY and recycling. Trust in Woolworths Group
Organisational responses to risks of climate change; both physical Responsible Climate risk Planet and transitional. gaming Responsible sourcing and human rights Maintaining a values‑based business with a culture of good governance Sustainable Corporate conduct and ethical conduct, where culture supports the effective functioning supply chain Prosperity and ethics of core systems and processes. Climate risk
METRICS 5SUSTAINABILITY We understand the responsibility that comes with the role our business Employee Trust in Woolworths plays in communities across Australia and New Zealand. We put our engagement and Prosperity Group customers at the heart of everything we do at Woolworths Group and are development committed to getting it right, and to make things better when we don’t. Stakeholder interest
Providing a healthy and ethical environment, where customer (and Responsible Third-party community) interests are protected from the harmful consequences Prosperity gaming relationships of problem gambling. Diversity and Upholding human rights across all aspects of our operations, inclusion Responsible sourcing encompassing labour rights associated with our workforce, contractor Prosperity and human rights and third‑party relationships and in the supply chain; in addition to protecting rights to privacy for our own workforce and customers. Community Community Sponsoring a meaningful role in the local communities where our engagement and Prosperity engagement and businesses operate, including activities to engage, invest and develop development development local communities.
Partnering throughout the supply chain to build collaborative Third‑party relationships with suppliers, interest groups, media, government Time Prosperity relationships and other stakeholders, for the purpose of delivering sustainable development outcomes. KEY: People Planet Prosperity
1 Refer to appendix for GRI Index. 86 87 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Materiality
The issues that matter UN 2030 Sustainable Development Goals To focus our efforts and maximise our impact, we The chart maps the 11 most material issues identified in our 17 global goals set by the United Nations in 2015, the SDGs define global sustainable development priorities and aspirations for the need to understand the issues that matter most to our recent materiality assessment, grouping them into our three planet. They seek to mobilise global efforts around a common set of goals and targets. We believe that the business community stakeholders. This is done through our materiality strategic pillars of people, planet and prosperity. has a role to play in progressing these important issues, and we have aligned our material issues with the relevant SDGs. assessment process. A robust sustainability materiality These are the current focus of our sustainability efforts. process can help us to: The Approach Other material issues such as safety and health, cyber
HIGHLIGHTS 1PERFORMANCE • Build better relationships with stakeholders security/privacy, customer/product safety and quality are The approach we have taken to analyse Woolworths Group’s material issues aligns to the Global Reporting Initiative Standards 1 • Ensure global megatrends and local market conditions are more mature and are embedded into the business‑as‑usual reporting requirements and includes the following steps: being used to assess and approach risks and opportunities processes. • Desktop review of a range of information sources • Prioritise what to focus on strategically. • Engaging with both internal and external stakeholders • Prioritising what the most material issues are, including analysis of whether these present risks/opportunities over the short or longer‑term time horizons • Internal validation by senior leaders and board.
2PEOPLE STRATEGIC PILLAR MATERIAL ISSUE DEFINITION RELEVANT SDGS Materiality Matrix The success of our business is built on our people, therefore we must Employee continue to focus on attracting, retaining and developing talented teams, The Materiality Matrix shows the interest stakeholders had in the issue (y‑axis), the time of potential impact (x‑axis) and the People engagement and today and into the future, as the nature of work continues to evolve. consequence of the issue to Woolworths Group (size of the bubble). development This also includes our continued focus on maintaining a safe environment for our team members and customers.
We are committed to creating and maintaining a diverse and inclusive Diversity and 3PLANET workforce in terms of gender, age, ethnicity, disability, sexual People inclusion orientation, etc.
Assessing and managing “ethical” and “responsible” issues embedded Sustainable supply within our supply chain and other third‑party partnerships, including both Planet chain Corporate conduct social and environmental issues. Waste and and ethics packaging Implementing effective and meaningful waste management strategies, Waste and Planet including our activities to help our customers manage their own waste packaging 4PROSPERITY and recycling. Trust in Woolworths Group
Organisational responses to risks of climate change; both physical Responsible Climate risk Planet and transitional. gaming Responsible sourcing and human rights Maintaining a values‑based business with a culture of good governance Sustainable Corporate conduct and ethical conduct, where culture supports the effective functioning supply chain Prosperity and ethics of core systems and processes. Climate risk
METRICS 5SUSTAINABILITY We understand the responsibility that comes with the role our business Employee Trust in Woolworths plays in communities across Australia and New Zealand. We put our engagement and Prosperity Group customers at the heart of everything we do at Woolworths Group and are development committed to getting it right, and to make things better when we don’t. Stakeholder interest
Providing a healthy and ethical environment, where customer (and Responsible Third-party community) interests are protected from the harmful consequences Prosperity gaming relationships of problem gambling. Diversity and Upholding human rights across all aspects of our operations, inclusion Responsible sourcing encompassing labour rights associated with our workforce, contractor Prosperity and human rights and third‑party relationships and in the supply chain; in addition to protecting rights to privacy for our own workforce and customers. Community Community Sponsoring a meaningful role in the local communities where our engagement and Prosperity engagement and businesses operate, including activities to engage, invest and develop development development local communities.
Partnering throughout the supply chain to build collaborative Third‑party relationships with suppliers, interest groups, media, government Time Prosperity relationships and other stakeholders, for the purpose of delivering sustainable development outcomes. KEY: People Planet Prosperity
1 Refer to appendix for GRI Index. 88 89 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Industry association Glossary
INDUSTRY ASSOCIATION MEMBERSHIPS TERM MEANING
Principles for engagement Carbon dioxide equivalent A standard measure used to compare the emissions from various greenhouse gases • Industry Associations are an important component of Woolworths Group’s overall public policy advocacy effort. Our broad (CO2‑e) based on their global warming potential. For example, one tonne of methane emissions set of memberships – from core economy‑wide memberships such as the BCA and Ai Group (see below) to sector specific is equivalent to 21 tonnes of carbon dioxide emissions. memberships such as the Green Building Council of Australia, the Australian Logistics Council and the Data Institute ‑ reflect the breadth of policy issues relevant to the Group. EBIT Earnings Before Interest and Tax – total earnings before provisions are deducted.
This measures a company’s performance and is often used in preference to net profit HIGHLIGHTS 1PERFORMANCE • Our overriding ambition is that memberships help promote pro sustainable growth, productivity enhancing economic as it excludes the effects of borrowings and tax benefits and adjustments. reforms that deliver broad societal benefit.
• We seek broad alignment with the policy positions of our industry associations, but recognise this is not always possible. Forest Stewardship Council (FSC) FSC is an independent, not‑for‑profit organisation which promotes responsible Membership does not preclude Woolworths Group from holding different policy positions, especially where this better management of the world’s forests. Refer to fsc.org or fscaustralia.org.au reflects expectations of our customers, shareholders, team and the community. • We seek to participate as a constructive partner on the priority policy making forums of each Industry Association, MWh Megawatt hours is a unit of measurement for electricity use, referring to the amount including through the relevant Committee and Working Group structures. Support can extend to technical advice and to of electricity needed to supply power to 1,000 homes for one hour.
2PEOPLE public campaigns designed to better inform public debate. • Each Membership has an internal relationship owner, the responsibility of which includes ensuring any major policy National Greenhouse and Energy NGER establishes a national framework for Australian corporations to report greenhouse misalignments are identified and referred to our Group Government Relations and Industry Affairs team for review. Reporting Act 2007 (NGER) gas emissions, reductions, removals and offsets, and energy consumption and production. Where any divergence persists, and is of a material misalignment with our own view, Woolworths Group will review our Refer to climatechange.gov.au/reporting/publications membership, evaluating that misalignment with the wider benefits of membership of that industry association. Scope 1 emissions Direct greenhouse gas emissions from sources owned or controlled by the company, • On an annual basis (at the time of membership renewal) Woolworths Group has begun reviewing its key industry such as combustion facilities (e.g. generators) and combustion of fuels in company‑owned
association memberships to ensure alignment with our key areas of policy interest. This includes a focus on advocacy or company‑controlled transport (e.g. cars and trucks). 3PLANET activities related to climate change and Woolworths Group’s 2020 commitments on sustainability. Scope 2 emissions Indirect greenhouse gas emissions from the generation of purchased electricity, heat, cooling or steam. Purchased electricity is defined as electricity that is bought or otherwise BUSINESS COUNCIL OF AUSTRALIA AUSTRALIAN INDUSTRY GROUP brought into the organisational boundary of the entity. Involvement Member / Committee / Member / Working Groups Working Groups Scope 3 emissions Other indirect greenhouse gas emissions that are a consequence of a company’s
activities, but that arise from sources that other entities own or control. Scope 3, like 4PROSPERITY Core Activity Consider public policy in relation to Consider public policy in relation Scope 2, is a category of indirect emissions and covers all other indirect emissions from economy‑wide issues impacting the to economy‑wide issues impacting sources that are not owned or controlled by a company, but that occur as a result of its nation and businesses, including energy the nation and businesses, including activities. Examples include emissions from waste disposal to landfill. policy, tax policy and indigenous affairs workplace relations, data policy and energy policy Sustainable Development Goals 17 global goals set by the United Nations in 2015 to define global sustainable development Contribution • Membership fee • Membership fee (SDG) priorities and aspirations for the planet • Non‑financial contributions to • Technical advice on key policy issues
METRICS 5SUSTAINABILITY projects of strategic relevance eg. Total Recordable Injury (TRI) and A Total Recordable Injury (TRIFR) is the sum of the total number of employee fatalities, Strong Australia campaign Total Recorable Injury Frequency lost time injuries, restricted work injuries or medical treatment injuries per million Rate (TRIFR) hours worked 88 89 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Industry association Glossary
INDUSTRY ASSOCIATION MEMBERSHIPS TERM MEANING
Principles for engagement Carbon dioxide equivalent A standard measure used to compare the emissions from various greenhouse gases • Industry Associations are an important component of Woolworths Group’s overall public policy advocacy effort. Our broad (CO2‑e) based on their global warming potential. For example, one tonne of methane emissions set of memberships – from core economy‑wide memberships such as the BCA and Ai Group (see below) to sector specific is equivalent to 21 tonnes of carbon dioxide emissions. memberships such as the Green Building Council of Australia, the Australian Logistics Council and the Data Institute ‑ reflect the breadth of policy issues relevant to the Group. EBIT Earnings Before Interest and Tax – total earnings before provisions are deducted.
This measures a company’s performance and is often used in preference to net profit HIGHLIGHTS 1PERFORMANCE • Our overriding ambition is that memberships help promote pro sustainable growth, productivity enhancing economic as it excludes the effects of borrowings and tax benefits and adjustments. reforms that deliver broad societal benefit.
• We seek broad alignment with the policy positions of our industry associations, but recognise this is not always possible. Forest Stewardship Council (FSC) FSC is an independent, not‑for‑profit organisation which promotes responsible Membership does not preclude Woolworths Group from holding different policy positions, especially where this better management of the world’s forests. Refer to fsc.org or fscaustralia.org.au reflects expectations of our customers, shareholders, team and the community. • We seek to participate as a constructive partner on the priority policy making forums of each Industry Association, MWh Megawatt hours is a unit of measurement for electricity use, referring to the amount including through the relevant Committee and Working Group structures. Support can extend to technical advice and to of electricity needed to supply power to 1,000 homes for one hour.
2PEOPLE public campaigns designed to better inform public debate. • Each Membership has an internal relationship owner, the responsibility of which includes ensuring any major policy National Greenhouse and Energy NGER establishes a national framework for Australian corporations to report greenhouse misalignments are identified and referred to our Group Government Relations and Industry Affairs team for review. Reporting Act 2007 (NGER) gas emissions, reductions, removals and offsets, and energy consumption and production. Where any divergence persists, and is of a material misalignment with our own view, Woolworths Group will review our Refer to climatechange.gov.au/reporting/publications membership, evaluating that misalignment with the wider benefits of membership of that industry association. Scope 1 emissions Direct greenhouse gas emissions from sources owned or controlled by the company, • On an annual basis (at the time of membership renewal) Woolworths Group has begun reviewing its key industry such as combustion facilities (e.g. generators) and combustion of fuels in company‑owned association memberships to ensure alignment with our key areas of policy interest. This includes a focus on advocacy or company‑controlled transport (e.g. cars and trucks). 3PLANET activities related to climate change and Woolworths Group’s 2020 commitments on sustainability. Scope 2 emissions Indirect greenhouse gas emissions from the generation of purchased electricity, heat, cooling or steam. Purchased electricity is defined as electricity that is bought or otherwise BUSINESS COUNCIL OF AUSTRALIA AUSTRALIAN INDUSTRY GROUP brought into the organisational boundary of the entity. Involvement Member / Committee / Member / Working Groups Working Groups Scope 3 emissions Other indirect greenhouse gas emissions that are a consequence of a company’s
activities, but that arise from sources that other entities own or control. Scope 3, like 4PROSPERITY Core Activity Consider public policy in relation to Consider public policy in relation Scope 2, is a category of indirect emissions and covers all other indirect emissions from economy‑wide issues impacting the to economy‑wide issues impacting sources that are not owned or controlled by a company, but that occur as a result of its nation and businesses, including energy the nation and businesses, including activities. Examples include emissions from waste disposal to landfill. policy, tax policy and indigenous affairs workplace relations, data policy and energy policy Sustainable Development Goals 17 global goals set by the United Nations in 2015 to define global sustainable development Contribution • Membership fee • Membership fee (SDG) priorities and aspirations for the planet • Non‑financial contributions to • Technical advice on key policy issues
METRICS 5SUSTAINABILITY projects of strategic relevance eg. Total Recordable Injury (TRI) and A Total Recordable Injury (TRIFR) is the sum of the total number of employee fatalities, Strong Australia campaign Total Recorable Injury Frequency lost time injuries, restricted work injuries or medical treatment injuries per million Rate (TRIFR) hours worked 90 91 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP United Nations Global Compact Global Reporting Initiative
PRINCIPLES ACTIONS PAGE DISCLOSURE NUMBER DISCLOSURE TITLE REFERENCE Human Rights Principle 1 GENERAL DISCLOSURES Protection of Human Rights Responsible Sourcing Program 50–61 102‑1 Name of the organization Front cover Principle 2 102‑2 Activities, brands, products, and services 2019 annual report No Complicity in Human Rights Abuse Responsible Sourcing Program 50–61 102‑3 Location of headquarters Inside back cover
HIGHLIGHTS 1PERFORMANCE 102‑4 Location of operations Contents Labour 102‑5 Ownership and legal form 2019 annual report Principle 3 Freedom of Association and Collective Bargaining Responsible Sourcing Program 50–61 102‑6 Markets served 2019 annual report Freedom of association and union engagement 77 102‑7 Scale of the organization 2019 annual report Principle 4 102‑8 Information on employees and other workers 76–84 Elimination of Forced and Compulsory Labour Responsible Sourcing Program 50–61 102‑9 Supply chain 48–49, 50–51 2PEOPLE Principle 5 Abolition of Child Labour Responsible Sourcing Program 50–61 102‑10 Significant changes to the organization and its supply chain 2019 annual report Principle 6 102‑11 Precautionary Principle or approach GRI Index Elimination of Discrimination Diversity and equal opportunity 12–19, 22–25 102‑12 External initiatives 10–25, 26–45, 46–73,85,90 102‑13 Membership of associations 88 Environment 102‑14 Statement from senior decision‑maker 2 Principle 7 3PLANET Precautionary Approach No explicit reference to precautionary approach 102‑16 Values, principles, standards, and norms of behavior 3 Approach to risk management 85 102‑18 Governance structure 2019 annual report, GRI Index Principle 8 102‑40 List of stakeholder groups 85–87 Environmental Responsibility Planet 26–45 102‑41 Collective bargaining agreements 77 Principle 9 Environmentally Friendly Technologies Techonology addressing climate change, water 26–45 102‑42 Identifying and selecting stakeholders 86–87
4PROSPERITY conservation, transport and packaging 102‑43 Approach to stakeholder engagement 85,86–87 102‑44 Key topics and concerns raised 85,86–87 Anti‑Corruption 102‑45 Entities included in the consolidated financial statements 2019 annual report Principle 10 Work against Corruption Anti‑corruption 85 102‑46 Defining report content and topic Boundaries 85, GRI Index 102‑47 List of material topics 86–87
102‑48 Restatements of information GRI Index METRICS 5SUSTAINABILITY 102‑49 Changes in reporting GRI Index 102‑50 Reporting period Contents 102‑51 Date of most recent report June 2018 102‑52 Reporting cycle Annual 102‑53 Contact point for questions regarding the report 97 102‑54 Claims of reporting in accordance with the GRI Standards GRI Index 102‑55 GRI content index 91–93, GRI Index 102‑56 External assurance 94–96 MANAGEMENT APPROACH 103‑1 Explanation of the material topic and its Boundary 86–87. 10–25, 26–45, 46–73 103‑2 The management approach and its components 3, 86–87, 85, GRI Index 103‑3 Evaluation of the management approach 2019 annual report, 10–25, 26–45, 46–73, 85 90 91 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP United Nations Global Compact Global Reporting Initiative
PRINCIPLES ACTIONS PAGE DISCLOSURE NUMBER DISCLOSURE TITLE REFERENCE Human Rights Principle 1 GENERAL DISCLOSURES Protection of Human Rights Responsible Sourcing Program 50–61 102‑1 Name of the organization Front cover Principle 2 102‑2 Activities, brands, products, and services 2019 annual report No Complicity in Human Rights Abuse Responsible Sourcing Program 50–61 102‑3 Location of headquarters Inside back cover
HIGHLIGHTS 1PERFORMANCE 102‑4 Location of operations Contents Labour 102‑5 Ownership and legal form 2019 annual report Principle 3 Freedom of Association and Collective Bargaining Responsible Sourcing Program 50–61 102‑6 Markets served 2019 annual report Freedom of association and union engagement 77 102‑7 Scale of the organization 2019 annual report Principle 4 102‑8 Information on employees and other workers 76–84 Elimination of Forced and Compulsory Labour Responsible Sourcing Program 50–61 102‑9 Supply chain 48–49, 50–51 2PEOPLE Principle 5 Abolition of Child Labour Responsible Sourcing Program 50–61 102‑10 Significant changes to the organization and its supply chain 2019 annual report Principle 6 102‑11 Precautionary Principle or approach GRI Index Elimination of Discrimination Diversity and equal opportunity 12–19, 22–25 102‑12 External initiatives 10–25, 26–45, 46–73,85,90 102‑13 Membership of associations 88 Environment 102‑14 Statement from senior decision‑maker 2 Principle 7 3PLANET Precautionary Approach No explicit reference to precautionary approach 102‑16 Values, principles, standards, and norms of behavior 3 Approach to risk management 85 102‑18 Governance structure 2019 annual report, GRI Index Principle 8 102‑40 List of stakeholder groups 85–87 Environmental Responsibility Planet 26–45 102‑41 Collective bargaining agreements 77 Principle 9 Environmentally Friendly Technologies Techonology addressing climate change, water 26–45 102‑42 Identifying and selecting stakeholders 86–87
4PROSPERITY conservation, transport and packaging 102‑43 Approach to stakeholder engagement 85,86–87 102‑44 Key topics and concerns raised 85,86–87 Anti‑Corruption 102‑45 Entities included in the consolidated financial statements 2019 annual report Principle 10 Work against Corruption Anti‑corruption 85 102‑46 Defining report content and topic Boundaries 85, GRI Index 102‑47 List of material topics 86–87
102‑48 Restatements of information GRI Index METRICS 5SUSTAINABILITY 102‑49 Changes in reporting GRI Index 102‑50 Reporting period Contents 102‑51 Date of most recent report June 2018 102‑52 Reporting cycle Annual 102‑53 Contact point for questions regarding the report 97 102‑54 Claims of reporting in accordance with the GRI Standards GRI Index 102‑55 GRI content index 91–93, GRI Index 102‑56 External assurance 94–96 MANAGEMENT APPROACH 103‑1 Explanation of the material topic and its Boundary 86–87. 10–25, 26–45, 46–73 103‑2 The management approach and its components 3, 86–87, 85, GRI Index 103‑3 Evaluation of the management approach 2019 annual report, 10–25, 26–45, 46–73, 85 92 93 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Global Reporting Initiative (continued)
DISCLOSURE DISCLOSURE NUMBER DISCLOSURE TITLE REFERENCE NUMBER DISCLOSURE TITLE REFERENCE ECONOMIC PERFORMANCE TRAINING AND EDUCATION 201‑1 Direct economic value generated and distributed 2019 annual report 404‑2 Programs for upgrading employee skills and transition assistance programs 14 ANTI‑CORRUPTION DIVERSITY AND EQUAL OPPORTUNITY 205‑3 Confirmed incidents of corruption and actions taken GRI Index 405‑1 Diversity of governance bodies and employees 76–79
HIGHLIGHTS 1PERFORMANCE ANTI‑COMPETITIVE BEHAVIOR 405‑2 Ratio of basic salary and remuneration of women to men 76 206‑1 Legal actions for anti‑competitive behavior, anti‑trust, and monopoly GRI Index NON‑DISCRIMINATION practices 406‑1 Incidents of discrimination and corrective actions taken 76, GRI Index ENERGY FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 302‑1 Energy consumption within the organization 26–45, 74–75, GRI Index 407‑1 Operations and suppliers in which the right to freedom of association and 50–61, 77, GRI Index
302‑2 Energy consumption outside of the organization 26–45, 74–75, GRI Index collective bargaining may be at risk 2PEOPLE 302‑3 Energy intensity 26–45, 74–75, GRI Index CHILD LABOR 302‑4 Reduction of energy consumption 26–45, 74–75, GRI Index 408‑1 Operations and suppliers at significant risk for incidents of child labor 50–61, GRI Index EMISSIONS FORCED OR COMPULSORY LABOR 305‑1 Direct (Scope 1) GHG emissions 26–45, 74–75, GRI Index 409‑1 Operations and suppliers at significant risk for incidents of forced or 50–61, GRI Index 305‑2 Energy indirect (Scope 2) GHG emissions 26–45, 74–75, GRI Index compulsory labor
3PLANET 305‑3 Other indirect (Scope 3) GHG emissions 26–45, 74–75, GRI Index HUMAN RIGHTS ASSESSMENT 305‑4 GHG emissions intensity 26–45, 74–75, GRI Index 412‑1 Operations that have been subject to human rights reviews or 50–61, 84, GRI Index impact assessments 305‑5 Reduction of GHG emissions 26–45, 74–75, GRI Index PUBLIC POLICY EFFLUENTS AND WASTE 415‑1 Political contributions 85 306‑2 Waste by type and disposal method 28–31, 75, GRI Index CUSTOMER HEALTH AND SAFETY
4PROSPERITY ENVIRONMENTAL COMPLIANCE 416‑2 Incidents of non‑compliance concerning the health and safety impacts of GRI Index 307‑1 Non‑compliance with environmental laws and regulations GRI Index products and services EMPLOYMENT MARKETING AND LABELING 401‑1 New employee hires and employee turnover 78–79 417‑1 Requirements for product and service information and labeling GRI Index 401‑3 Parental leave 79, GRI Index CUSTOMER PRIVACY LABOR/MANAGEMENT RELATIONS 418‑1 Substantiated complaints concerning breaches of customer privacy and 85, GRI Index METRICS 5SUSTAINABILITY 402‑1 Minimum notice periods regarding operational changes GRI Index losses of customer data OCCUPATIONAL HEALTH AND SAFETY 403‑1 Occupational health and safety management system 80, GRI Index 403‑2 Hazard identification, risk assessment, and incident investigation GRI Index 403‑3 Occupational health services GRI Index 403‑4 Worker participation, consultation, and communication on occupational GRI Index health and safety 403‑5 Worker training on occupational health and safety GRI Index 403‑6 Promotion of worker health GRI Index 403‑7 Prevention and mitigation of occupational health and safety impacts directly GRI Index linked by business relationships 403‑8 Workers covered by an occupational health and safety management system 80 403‑9 Work‑related injuries 20–21, 80–82 GRI Index 403‑10 Work‑related ill health 83, GRI Index 92 93 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Global Reporting Initiative (continued)
DISCLOSURE DISCLOSURE NUMBER DISCLOSURE TITLE REFERENCE NUMBER DISCLOSURE TITLE REFERENCE ECONOMIC PERFORMANCE TRAINING AND EDUCATION 201‑1 Direct economic value generated and distributed 2019 annual report 404‑2 Programs for upgrading employee skills and transition assistance programs 14 ANTI‑CORRUPTION DIVERSITY AND EQUAL OPPORTUNITY 205‑3 Confirmed incidents of corruption and actions taken GRI Index 405‑1 Diversity of governance bodies and employees 76–79
HIGHLIGHTS 1PERFORMANCE ANTI‑COMPETITIVE BEHAVIOR 405‑2 Ratio of basic salary and remuneration of women to men 76 206‑1 Legal actions for anti‑competitive behavior, anti‑trust, and monopoly GRI Index NON‑DISCRIMINATION practices 406‑1 Incidents of discrimination and corrective actions taken 76, GRI Index ENERGY FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 302‑1 Energy consumption within the organization 26–45, 74–75, GRI Index 407‑1 Operations and suppliers in which the right to freedom of association and 50–61, 77, GRI Index
302‑2 Energy consumption outside of the organization 26–45, 74–75, GRI Index collective bargaining may be at risk 2PEOPLE 302‑3 Energy intensity 26–45, 74–75, GRI Index CHILD LABOR 302‑4 Reduction of energy consumption 26–45, 74–75, GRI Index 408‑1 Operations and suppliers at significant risk for incidents of child labor 50–61, GRI Index EMISSIONS FORCED OR COMPULSORY LABOR 305‑1 Direct (Scope 1) GHG emissions 26–45, 74–75, GRI Index 409‑1 Operations and suppliers at significant risk for incidents of forced or 50–61, GRI Index 305‑2 Energy indirect (Scope 2) GHG emissions 26–45, 74–75, GRI Index compulsory labor
3PLANET 305‑3 Other indirect (Scope 3) GHG emissions 26–45, 74–75, GRI Index HUMAN RIGHTS ASSESSMENT 305‑4 GHG emissions intensity 26–45, 74–75, GRI Index 412‑1 Operations that have been subject to human rights reviews or 50–61, 84, GRI Index impact assessments 305‑5 Reduction of GHG emissions 26–45, 74–75, GRI Index PUBLIC POLICY EFFLUENTS AND WASTE 415‑1 Political contributions 85 306‑2 Waste by type and disposal method 28–31, 75, GRI Index CUSTOMER HEALTH AND SAFETY
4PROSPERITY ENVIRONMENTAL COMPLIANCE 416‑2 Incidents of non‑compliance concerning the health and safety impacts of GRI Index 307‑1 Non‑compliance with environmental laws and regulations GRI Index products and services EMPLOYMENT MARKETING AND LABELING 401‑1 New employee hires and employee turnover 78–79 417‑1 Requirements for product and service information and labeling GRI Index 401‑3 Parental leave 79, GRI Index CUSTOMER PRIVACY LABOR/MANAGEMENT RELATIONS 418‑1 Substantiated complaints concerning breaches of customer privacy and 85, GRI Index METRICS 5SUSTAINABILITY 402‑1 Minimum notice periods regarding operational changes GRI Index losses of customer data OCCUPATIONAL HEALTH AND SAFETY 403‑1 Occupational health and safety management system 80, GRI Index 403‑2 Hazard identification, risk assessment, and incident investigation GRI Index 403‑3 Occupational health services GRI Index 403‑4 Worker participation, consultation, and communication on occupational GRI Index health and safety 403‑5 Worker training on occupational health and safety GRI Index 403‑6 Promotion of worker health GRI Index 403‑7 Prevention and mitigation of occupational health and safety impacts directly GRI Index linked by business relationships 403‑8 Workers covered by an occupational health and safety management system 80 403‑9 Work‑related injuries 20–21, 80–82 GRI Index 403‑10 Work‑related ill health 83, GRI Index 94 95 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Assurance report
Deloitte Touche Tohmatsu SUBJECT MATTER REPORTING CRITERIA ABN 74 490 121 060 Grosvenor Place Sustainability Targets (continued) 225 George Street • Planet Sydney NSW 2000 – ‘Food saved for meals / Total food relief diverted to people in need’ PO Box N250 Grosvenor Place Sydney NSW 1220 Australia on page 29 and page 75 of the 2019 Sustainability Report Tel: +61 8 9365 7000 – ‘Stores with Transcritical or waterloop systems’ on page 26 and Fax: +61 2 9322 7001 page 45 of the 2019 Sustainability Report
HIGHLIGHTS 1PERFORMANCE – ‘Solar power generated’ on page 26 the 2019 Sustainability Report • Prosperity – ‘Own brand products undergone a nutritional renovations’ on page 46 and 73 of the 2019 Sustainability Report – ‘Woolworths own brand products with a health star rating’ on LIMITED ASSURANCE REPORT ON THE 2019 SUSTAINABILITY REPORT TO THE DIRECTORS OF page 72 of the 2019 Sustainability Report WOOLWORTHS GROUP LIMITED – ‘Cash donations’ on page 46 and 62 of the 2019 Sustainability Report
We have undertaken a limited assurance engagement relating to the application of Global Reporting Initiative (‘GRI’) 2PEOPLE information and other criteria contained in Woolworths Group Limited’s (‘Woolworths’) 2019 Sustainability Report as detailed RESPONSIBILITIES OF THE DIRECTORS in the table below (the ‘Subject Matter’). The Directors of Woolworths are responsible for: SUBJECT MATTER AND REPORTING CRITERIA • Ensuring that the Subject Matter is properly prepared and presented in accordance with the Reporting Criteria The Subject Matter and Reporting Criteria for our limited assurance engagement for the year ended 30 June 2019 is as follows: • Confirming the measurement or evaluation of the underlying subject matter against the applicable criteria, including that all relevant matters are reflected in the subject matter information; and SUBJECT MATTER REPORTING CRITERIA
• Designing establishing and maintaining internal controls relevant to ensure that the Subject Matter is properly prepared and 3PLANET GRI Standards Disclosures presented in accordance with the Reporting Criteria GRI Standards Disclosures prepared in accordance with the ‘Core’ GRI Standards and related information, It is our understanding that Woolworths intends to electronically present the Subject Matter, including our limited assurance requirements of the GRI Standards as set out in the GRI Index on publicly available at GRI’s global website report thereon, on its internet website. Responsibility for the electronic presentation of the Subject Matter, including our pages 91 to 93 of the 2019 Sustainability Report at www.globalreporting.com. limited assurance report thereon, on Woolworths’ website is that of the Directors of the Woolworths. The security and controls over information on the web site should be addressed by Woolworths to maintain the integrity of the data presented. The Selected Indicator Disclosures examination of the controls over the electronic presentation of the Subject Matter and our limited assurance report thereon on The following selected Sustainability Performance Indicators for 2019 included Relevant GRI Standards and Woolworths’ Woolworths’ website is beyond the scope of our limited assurance engagement. within the 2019 Sustainability Report for the specific standard disclosure definitions, and approaches as described in
4PROSPERITY requirements of the GRI Standards: the GRI Index on pages 91 to 93 of the 2019 OUR INDEPENDENCE AND QUALITY CONTROL Sustainability Report and on Woolworths’ • Energy (302‑1, 302‑2, 302‑3 and 302‑4) on page 92 of the 2019 website at www.woolworthsgroup.com.au. We have complied with the relevant ethical requirements relating to assurance engagements, which is founded on fundamental Sustainability Report principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. • Emissions (305‑1, 305‑2, 305‑3, 305‑4 and 305‑5) on page 92 of the 2019 The firm applies Auditing Standard ASQC 1, and accordingly Deloitte Touche Tohmatsu maintains a comprehensive system of Sustainability Report quality control including documented policies and procedures regarding compliance with ethical requirements, professional • Effluents and waste (306‑2) on page 92 of the 2019 Sustainability Report standards and applicable legal and regulatory requirements.
• Employment (401‑1 and 401‑3) on page 92 of the 2019 Sustainability Report METRICS 5SUSTAINABILITY • Occupational Health & Safety (403‑2 and 403‑9) on page 92 of the 2019 OUR RESPONSIBILITIES Sustainability Report Our responsibility is to express a limited assurance conclusion on the Subject Matter based on the procedures we have • Non‑discrimination (406‑1) on page 93 of the 2019 Sustainability Report performed and the evidence we have obtained. Sustainability Targets We conducted our procedures in accordance with Australian Standards on Assurance Engagements ASAE 3000 ‘Assurance Engagements Other than Audits or Reviews of Historical Financial Information’ (ASAE 3000), issued by the Australian Auditing and The following 2019 performance data included within Woolworths’ Woolworths’ definitions, and approaches Assurance Standards Board in order to express a conclusion whether, based on the procedures performed and the evidence Sustainability Targets and commitments as contained in the People, as described in the People, Planet and obtained, anything has come to our attention that causes us to believe that the Subject Matter has not been reported, in all Planet and Prosperity sections within the 2019 Sustainability Report: Prosperity sections of Woolworths’ 2019 material respects, in accordance with the Reporting Criteria. That standard requires that we plan and perform this engagement Sustainability Report and on Woolworths • People to obtain limited assurance about whether the Subject Matter is free from material misstatement. website at www.woolworthsgroup.com.au. – ‘Total team members’, on page 10 of the 2019 Sustainability Report A limited assurance engagement in accordance with ASAE 3000 involves identifying areas where a material misstatement of – 'Successful applicants to the Refugee Program’ on page 14 of the 2019 the Subject Matter information is likely to arise, addressing the areas identified and considering the process used to prepare Sustainability Report the Subject Matter. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. The procedures that we performed were based on our professional judgement and included: • A review of Woolworths’ processes relating to stakeholder identification, engagement and responsiveness, including an assessment of stakeholder engagement outcomes and how this process and the outcomes have been presented in the 2019 Sustainability Report. Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte Network. • A review of Woolworths’ process to identify and determine material issues to be included in the 2019 Sustainability Report with examination of underlying assessments and evidence on a sample basis. 94 95 SUSTAINABILITY REPORT 2019 WOOLWORTHS GROUP Assurance report
Deloitte Touche Tohmatsu SUBJECT MATTER REPORTING CRITERIA ABN 74 490 121 060 Grosvenor Place Sustainability Targets (continued) 225 George Street • Planet Sydney NSW 2000 – ‘Food saved for meals / Total food relief diverted to people in need’ PO Box N250 Grosvenor Place Sydney NSW 1220 Australia on page 29 and page 75 of the 2019 Sustainability Report Tel: +61 8 9365 7000 – ‘Stores with Transcritical or waterloop systems’ on page 26 and Fax: +61 2 9322 7001 page 45 of the 2019 Sustainability Report
HIGHLIGHTS 1PERFORMANCE – ‘Solar power generated’ on page 26 the 2019 Sustainability Report • Prosperity – ‘Own brand products undergone a nutritional renovations’ on page 46 and 73 of the 2019 Sustainability Report – ‘Woolworths own brand products with a health star rating’ on LIMITED ASSURANCE REPORT ON THE 2019 SUSTAINABILITY REPORT TO THE DIRECTORS OF page 72 of the 2019 Sustainability Report WOOLWORTHS GROUP LIMITED – ‘Cash donations’ on page 46 and 62 of the 2019 Sustainability Report
We have undertaken a limited assurance engagement relating to the application of Global Reporting Initiative (‘GRI’) 2PEOPLE information and other criteria contained in Woolworths Group Limited’s (‘Woolworths’) 2019 Sustainability Report as detailed RESPONSIBILITIES OF THE DIRECTORS in the table below (the ‘Subject Matter’). The Directors of Woolworths are responsible for: SUBJECT MATTER AND REPORTING CRITERIA • Ensuring that the Subject Matter is properly prepared and presented in accordance with the Reporting Criteria The Subject Matter and Reporting Criteria for our limited assurance engagement for the year ended 30 June 2019 is as follows: • Confirming the measurement or evaluation of the underlying subject matter against the applicable criteria, including that all relevant matters are reflected in the subject matter information; and SUBJECT MATTER REPORTING CRITERIA
• Designing establishing and maintaining internal controls relevant to ensure that the Subject Matter is properly prepared and 3PLANET GRI Standards Disclosures presented in accordance with the Reporting Criteria GRI Standards Disclosures prepared in accordance with the ‘Core’ GRI Standards and related information, It is our understanding that Woolworths intends to electronically present the Subject Matter, including our limited assurance requirements of the GRI Standards as set out in the GRI Index on publicly available at GRI’s global website report thereon, on its internet website. Responsibility for the electronic presentation of the Subject Matter, including our pages 91 to 93 of the 2019 Sustainability Report at www.globalreporting.com. limited assurance report thereon, on Woolworths’ website is that of the Directors of the Woolworths. The security and controls over information on the web site should be addressed by Woolworths to maintain the integrity of the data presented. The Selected Indicator Disclosures examination of the controls over the electronic presentation of the Subject Matter and our limited assurance report thereon on The following selected Sustainability Performance Indicators for 2019 included Relevant GRI Standards and Woolworths’ Woolworths’ website is beyond the scope of our limited assurance engagement. within the 2019 Sustainability Report for the specific standard disclosure definitions, and approaches as described in
4PROSPERITY requirements of the GRI Standards: the GRI Index on pages 91 to 93 of the 2019 OUR INDEPENDENCE AND QUALITY CONTROL Sustainability Report and on Woolworths’ • Energy (302‑1, 302‑2, 302‑3 and 302‑4) on page 92 of the 2019 website at www.woolworthsgroup.com.au. We have complied with the relevant ethical requirements relating to assurance engagements, which is founded on fundamental Sustainability Report principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. • Emissions (305‑1, 305‑2, 305‑3, 305‑4 and 305‑5) on page 92 of the 2019 The firm applies Auditing Standard ASQC 1, and accordingly Deloitte Touche Tohmatsu maintains a comprehensive system of Sustainability Report quality control including documented policies and procedures regarding compliance with ethical requirements, professional • Effluents and waste (306‑2) on page 92 of the 2019 Sustainability Report standards and applicable legal and regulatory requirements.
• Employment (401‑1 and 401‑3) on page 92 of the 2019 Sustainability Report METRICS 5SUSTAINABILITY • Occupational Health & Safety (403‑2 and 403‑9) on page 92 of the 2019 OUR RESPONSIBILITIES Sustainability Report Our responsibility is to express a limited assurance conclusion on the Subject Matter based on the procedures we have • Non‑discrimination (406‑1) on page 93 of the 2019 Sustainability Report performed and the evidence we have obtained. Sustainability Targets We conducted our procedures in accordance with Australian Standards on Assurance Engagements ASAE 3000 ‘Assurance Engagements Other than Audits or Reviews of Historical Financial Information’ (ASAE 3000), issued by the Australian Auditing and The following 2019 performance data included within Woolworths’ Woolworths’ definitions, and approaches Assurance Standards Board in order to express a conclusion whether, based on the procedures performed and the evidence Sustainability Targets and commitments as contained in the People, as described in the People, Planet and obtained, anything has come to our attention that causes us to believe that the Subject Matter has not been reported, in all Planet and Prosperity sections within the 2019 Sustainability Report: Prosperity sections of Woolworths’ 2019 material respects, in accordance with the Reporting Criteria. That standard requires that we plan and perform this engagement Sustainability Report and on Woolworths • People to obtain limited assurance about whether the Subject Matter is free from material misstatement. website at www.woolworthsgroup.com.au. – ‘Total team members’, on page 10 of the 2019 Sustainability Report A limited assurance engagement in accordance with ASAE 3000 involves identifying areas where a material misstatement of – 'Successful applicants to the Refugee Program’ on page 14 of the 2019 the Subject Matter information is likely to arise, addressing the areas identified and considering the process used to prepare Sustainability Report the Subject Matter. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. The procedures that we performed were based on our professional judgement and included: • A review of Woolworths’ processes relating to stakeholder identification, engagement and responsiveness, including an assessment of stakeholder engagement outcomes and how this process and the outcomes have been presented in the 2019 Sustainability Report. Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte Network. • A review of Woolworths’ process to identify and determine material issues to be included in the 2019 Sustainability Report with examination of underlying assessments and evidence on a sample basis. 96 Assurance report (continued) Company directory
• Interviews with a selection of Woolworths’ executives and senior management, including Woolworths’ Sustainability REGISTERED OFFICE management team concerning the overall governance structure, corporate sustainability strategy and policies used for 1 Woolworths Way managing and reporting sustainability performance across the business. Bella Vista NSW 2153 • In respect of the selected Sustainability Performance Indicators and Sustainability Targets: Tel: (02) 8885 0000 – Interviews with a selection of Woolworths’ management responsible for the Sustainability Targets and Selected Web: www.woolworthsgroup.com.au Indicator Data to understand the compilation and review processes. – Applying analytical and other review procedures including assessing relationships between the reported information and other financial and non‑financial data. – Examination of evidence for a small number of transactions or events. AUDITOR – Analysing and inspecting on a sample basis, the key systems, processes and procedures and controls relating to the Deloitte Touche Tohmatsu collation, validation, presentation and approval process of the information included in the Report. 225 George Street – Reviewing underlying evidence on a sample basis to corroborate that the information is prepared and reported in line Sydney NSW 2000 with the relevant Reporting Criteria. Tel: (02) 9322 7000 • Comparison of the content of Woolworths’ 2019 Sustainability Report against the criteria for a GRI self‑declaration. Web: www.deloitte.com.au The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about whether Woolworths’ subject matter has been prepared, in all material respects with the criteria. WOOLWORTHS GROUP SUSTAINABILITY Alex Holt INHERENT LIMITATIONS General Manager, Quality, Health & Sustainability Non‑financial information, including the Subject Matter may be subject to more inherent limitations than financial information, Fiona Walmsley given both its nature and the methods used for determining, calculating and sampling or estimating such information. Qualitative Senior Manager, Group Sustainability interpretations of relevance, materiality and the accuracy of data are subject to individual assumptions and judgements. The Subject Matter should be read in the context of Woolworths’ Reporting Criteria as set out in the 2019 Sustainability Report. Additionally, non‑financial data may be subject to more inherent limitations than financial data, given both its nature and the methods used for determining, calculating and sampling or estimating such data.
USE OF OUR REPORT Our assurance report has been prepared solely for the Directors of Woolworths’. We disclaim any assumption of responsibility for any reliance on this report or on the Subject Matter to which it relates, to any person other than the directors of Woolworths or for any purpose other than that for which it was prepared.
MATTERS RELATING TO ELECTRONIC PRESENTATION OF INFORMATION Our limited assurance engagement included web‑based information that was available via web links as of the date of this statement. We provide no assurance over changes to the content of the Report after the date of this assurance statement.
LIMITED ASSURANCE CONCLUSION Based on the procedures performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that Woolworths’: • GRI Standards Disclosures as set out in the GRI Index, have not been prepared, in all material respects, in accordance with the requirements of the GRI Standards; • Selected Indicator Disclosures has not been prepared, in all material respects, in accordance with the specific standard disclosure requirements of the relevant GRI Standards and Woolworths’ definitions, and approaches as described in the GRI Index; and • Sustainability Targets data, has not been prepared, in all material respects, in accordance with the Woolworths’ definitions, and approaches as described in the People, Planet and Prosperity section of Woolworths’ 2019 Sustainability report referenced in the Subject Matter table above.
DELOITTE TOUCHE TOHMATSU
Paul Dobson Partner Designed and produced by ArmstrongQ Sydney, 29 August 2019 ArmstrongQ.com.au 96 Assurance report (continued) Company directory
• Interviews with a selection of Woolworths’ executives and senior management, including Woolworths’ Sustainability REGISTERED OFFICE management team concerning the overall governance structure, corporate sustainability strategy and policies used for 1 Woolworths Way managing and reporting sustainability performance across the business. Bella Vista NSW 2153 • In respect of the selected Sustainability Performance Indicators and Sustainability Targets: Tel: (02) 8885 0000 – Interviews with a selection of Woolworths’ management responsible for the Sustainability Targets and Selected Web: www.woolworthsgroup.com.au Indicator Data to understand the compilation and review processes. – Applying analytical and other review procedures including assessing relationships between the reported information and other financial and non‑financial data. – Examination of evidence for a small number of transactions or events. AUDITOR – Analysing and inspecting on a sample basis, the key systems, processes and procedures and controls relating to the Deloitte Touche Tohmatsu collation, validation, presentation and approval process of the information included in the Report. 225 George Street – Reviewing underlying evidence on a sample basis to corroborate that the information is prepared and reported in line Sydney NSW 2000 with the relevant Reporting Criteria. Tel: (02) 9322 7000 • Comparison of the content of Woolworths’ 2019 Sustainability Report against the criteria for a GRI self‑declaration. Web: www.deloitte.com.au The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about whether Woolworths’ subject matter has been prepared, in all material respects with the criteria. WOOLWORTHS GROUP SUSTAINABILITY Alex Holt INHERENT LIMITATIONS General Manager, Quality, Health & Sustainability Non‑financial information, including the Subject Matter may be subject to more inherent limitations than financial information, Fiona Walmsley given both its nature and the methods used for determining, calculating and sampling or estimating such information. Qualitative Senior Manager, Group Sustainability interpretations of relevance, materiality and the accuracy of data are subject to individual assumptions and judgements. The Subject Matter should be read in the context of Woolworths’ Reporting Criteria as set out in the 2019 Sustainability Report. Additionally, non‑financial data may be subject to more inherent limitations than financial data, given both its nature and the methods used for determining, calculating and sampling or estimating such data.
USE OF OUR REPORT Our assurance report has been prepared solely for the Directors of Woolworths’. We disclaim any assumption of responsibility for any reliance on this report or on the Subject Matter to which it relates, to any person other than the directors of Woolworths or for any purpose other than that for which it was prepared.
MATTERS RELATING TO ELECTRONIC PRESENTATION OF INFORMATION Our limited assurance engagement included web‑based information that was available via web links as of the date of this statement. We provide no assurance over changes to the content of the Report after the date of this assurance statement.
LIMITED ASSURANCE CONCLUSION Based on the procedures performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that Woolworths’: • GRI Standards Disclosures as set out in the GRI Index, have not been prepared, in all material respects, in accordance with the requirements of the GRI Standards; • Selected Indicator Disclosures has not been prepared, in all material respects, in accordance with the specific standard disclosure requirements of the relevant GRI Standards and Woolworths’ definitions, and approaches as described in the GRI Index; and • Sustainability Targets data, has not been prepared, in all material respects, in accordance with the Woolworths’ definitions, and approaches as described in the People, Planet and Prosperity section of Woolworths’ 2019 Sustainability report referenced in the Subject Matter table above.
DELOITTE TOUCHE TOHMATSU
Paul Dobson Partner Designed and produced by ArmstrongQ Sydney, 29 August 2019 ArmstrongQ.com.au We are constantly innovating to meet changing needs. We look for ways to improve every day – better for our customers team and communities. We create
It�s both the retail experiences and the experiences we make possible for customers� lives. better experiences together for a better We work seamlessly as one team within the Group and in partnership tomorrow. with others.
in We believe creating a better future for generations to come.