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Social and Environment Report 2001 Responsible Retailing 5291_Cover 12/9/2002 7:13 am Page 2 Social and Environment Report 2001 Responsible retailing Feedback – we welcome your comments Printing If you have any comments to make regarding this Printed using environmental print technology that report or would like more information about eliminates the use of water and industrial alcohol.The printer is accredited to ISO 14001 and EMAS. The printing inks are John Lewis department stores, please contact made from vegetable based oils and 90% of the cleaning solvent Nick Monger-Godfrey, Head of Environmental is recycled for further use.The printing presses are powered Management, John Lewis Plc, 171 Victoria Street, by electricity generated from renewable sources. London, SW1E 5NN. Paper This report is printed on Revive Silk. The paper consists of 75% If you would like more information about Waitrose, de-inked post consumer waste and 25% virgin fibre. It is fully recyclable and biodegradable. Recycled pulps used are a or to request a copy of the Waitrose Environment combination of Totally Chlorine Free (TCF) and Elemental report, please contact Customer Service,Waitrose, Chlorine Free (ECF).The mill is certified to environmental Southern Industrial Estate, Bracknell, RG12 8YA. management standard ISO 14001. Carbon Neutral www.johnlewis.com The greenhouse gas emissions associated with the production and distribution of this report have been made Carbon Neutral® with Future Forests® through the planting of native broadleaf species including birch, alder, rowan and oak which will encourage natural ecosystems in the Environmentally Sensitive Area of Sundhope, Scotland. The front cover depicts the Liverpool skyline created from John Lewis merchandise.The photograph was originally used in an advertisement to mark the name change of George Henry Lee to John Lewis Liverpool. 5291_Cover 12/9/2002 7:12 am Page 1 33 Contents Welcome 1 Policies and principles 2 The department stores business 4 In the community 5 Responsible sourcing 11 Environmental performance 17 Partnership and Partners 25 Responsible retailing Responsible Responsible retailing Responsible Moving forward 32 Performance at a glance 33 Our 2001 performance at a glance Contents P Locations change at a glance erformance ■ John Lewis department stores Economic performance 2001 since 2000 ▲ Production units Number of department stores 26 ▲ 1 Floor area (square metres) 974,228 ▲ 3% Total sales (£ million) 2,160 ▲ 6% Number of customer transactions 74,423,000 ▲ 1% Sales per Partner (£) 93,800 ▲ 3% Aberdeen In the community Customer complaints 10,949 n/a Customer compliments 7,127 n/a Value of local charitable donations (DS) 407,000 ▲ 2% Glasgow Number of Partner hours seconded to charities (Golden Jubilee Trust) 13,739 ▲156% Edinburgh Total Partnership charitable giving 1,555,000 ▲ 2% Responsible sourcing Number of product lines 500,000 no change Newcastle-upon-Tyne Stead McAlpin Number of suppliers 8,000 no change Number of Far East supplier inspections 200 n/a Trading standards prosecutions 0 no change Number of own-label products recalled 0 ▼ 1 JH Birtwistle Environmental performance Herbert Parkinson Liverpool ▲ Sheffield Miles travelled distributing products 15,716,000 7% ▲ Cheadle Average fuel consumption (commercial mpg) 14.26 9% Nottingham Miles avoided by backhauling 424,000 n/a Average driver risk rating 3.1 ▼ 1% Peterborough Norwich Energy consumption (electricity and gas) Gwh 303 ▲ 5% Solihull Cambridge Weight of waste disposed (tonnes) 19,956 n/a Milton Keynes Welwyn Garden City Water consumption (cubic metres) 1,255,000 ▼ 3% High Wycombe ▲ Watford CO2 emissions (tonnes) 115,739 5% Windsor London Cribbs Causeway Reading Partnership and Partners Bluewater Number of Partners in department stores 27,732 ▲ 11% Southampton Southsea % female Partners 61 n/a For audio, large print and Braille % female managers 54 n/a London Bonus as a proportion of pay 9% ▼ 1% versions of this report please Oxford Street Peter Jones ▼ Brent Cross Reportable accidents 402 7% complete the feedback card Kingston at the rear Accident frequency (per 100 full-time equivalent employees) 1.8 ▼ 8% Sickness rate 3.9% n/a 5291_Text 12/9/2002 7:58 am Page 1 1 Responsible retailing Responsible Welcome to our first social and environment report W While this is the first time we have publicly reported in this way, social and elcome environmental issues have always been fundamental to our business. That is because, as one of the largest and longest surviving examples of employee co-ownership anywhere, we have clearly defined views on how our business should be run. Our constitution, first introduced in 1928, helps define not only how we should act as a commercial enterprise, but also how we as ‘Partners’ should behave towards our customers and suppliers, the wider community, the environment and, not least, one another. I believe the constitution is as relevant for our business today as it has ever been. It provides us with a unique reference point from which to develop and measure our social and environmental performance. 2001 has been a year of accelerated change and growth. We opened our latest shop in Solihull, launched our internet and catalogue business, John Lewis Direct, and continued with our extensive shop refurbishment and expansion programmes. Opening hours have also been extended at many of our shops, with some now switching from five to seven-day trading.Without careful management our environmental impact will increase, and this presents us with a significant challenge. This report summarises the ways in which, as a responsible retailer, we have responded to this challenge, but also how we have embraced opportunities to make a positive social contribution. On the whole I am pleased with our progress but I appreciate there is still work to be done. Formalising our management processes and regular reporting will help us improve. So too will your feedback. Luke Mayhew Managing Director, Department Stores 5291_Text 12/9/2002 7:58 am Page 2 2 Responsible retailing Responsible Policies and principles P olicies and principles The John Lewis Partnership exists today The seven principles of the because of the extraordinary vision and John Lewis Partnership ideals of its founder, John Spedan Lewis, who signed away his ownership rights Purpose The Partnership’s ultimate purpose is the in a growing retail company. happiness of all its members, through worthwhile and satisfying employment in a successful business. He did this because he felt it unfair that owners of Because the Partnership is owned in trust on behalf an enterprise should derive so much more benefit of its members, they share the responsibilities of Peter Jones, where our democracy began than workers, believing strongly that the real ownership as well as its rewards – profit, knowledge advantages of ownership should go to those who and power. give their time and labour to the business rather than those who have supplied the capital. Power Power within the Partnership is shared between three governing authorities – the Central In 1928 Spedan Lewis created a trust to take over Council, the Central Board and the Chairman. the assets of the company and run it as a co-owned partnership. He developed a written constitution Profit The Partnership aims to make sufficient profit and set out a number of guidelines for managing the from its trading operations to sustain its commercial business. In a second trust in 1950 he relinquished vitality, to finance its continued development, to his controlling interest in a very much expanded distribute a share of profits each year to its members, business. Since then, there have been no outside and to enable it to undertake other activities shareholders. consistent with its ultimate purpose. Over the years the constitution has been updated Members The Partnership aims to employ people to reflect changes in our business.The latest edition of ability and integrity who are committed to working published in January 2000 sets out our seven together and to supporting its principles. business principles. Relationships are based on mutual respect and courtesy, with as much equality between members as differences of responsibility permit.The Partnership aims to recognise individual contributions and to reward them fairly. Customers The Partnership aims to deal fairly John Spedan Lewis with customers, and to secure their loyalty and trust by providing outstanding choice, value and service. Business relationships The Partnership aims to conduct all its business relationships with integrity and courtesy, and to honour each business agreement scrupulously. The community The Partnership aims to obey the spirit as well as the letter of the law, and to contribute to the well-being of the communities in which it operates. 5291_Text 12/9/2002 7:58 am Page 3 3 Responsible retailing Responsible Social and environmental policy P Our operations affect our customers, suppliers, employees (‘Partners’), the local olicies and principles community and the environment. As a responsible retailer and a good neighbour we aim to reduce negative impacts to the minimum practical, and to take opportunities where we can to contribute to the well-being of others and to the environment.We need to combine this with making sufficient profit to ensure the continued health of the business. Set out here are the principles we follow and the programmes we have developed to focus on the areas where we have significant impact or influence. Principles Programmes ■ Shared responsibility Environmental responsibility ■ Environment To take all reasonable steps to involves everyone. In our own case, the John Lewis manage our operations so as to minimise our Partnership’s unique structure means that Partners environmental impact and to promote good share the responsibilities of ownership as well as its environmental practice.To review regularly our rewards.We aim to develop and implement social business practices and performance to identify and environmental policies which fit in with our how we can improve our energy efficiency, Partners’ everyday activities and responsibilities.
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