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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 retailing Moving forward 32 Performance at a glance 33

Our 2001 performance at a glance Contents P

Locations change erformance at a glance ■ 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

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 The Partnership aims The Partnership aims to obey The Partnership aims to deal fairly er within the Partnership is shared The Partnership people aims to employ w The Partnership’s ultimate purpose is the Po The Partnership profit sufficient aims to make er providing outstanding choice,providing value and service.

wnership as its rewards – profit, as well knowledge from its trading operations to sustain its commercial vitality, development, its continued to finance to to its members, each year distribute a share of profits it to undertakeand to enable other activities consistent with its ultimate purpose. Members of ability and integrity who are committed to working together and to supporting its principles. respect and Relationships are based on mutual courtesy, members equality between with as much of responsibility permit.Theas differences Partnership aims to recognise individual contributions and to reward them fairly. Customers with customers, and trust and to secure their loyalty by between three governing authorities three governing between – the Central Council, the Central and the Chairman. Board Profit the spiritof the law, as the letter as well and to contribute of the communities to the well-being in which it operates. Business relationships Business relationships relationships with to conduct all its business integrity and courtesy, and to honour each business agreement scrupulously. The community The seven principlesThe seven of the John Lewis Partnership Purpose happiness of all its members, through worthwhile in a successful business. and satisfying employment Because the Partnership in trust is owned on behalf of its members, they share the responsibilities of o and power. Pow olicies and principlesolicies and usiness. In a second trust in 1950 he relinquished usiness. Since then, been no outside there have usiness principles. P The John Lewis Partnership exists today because of the extraordinary vision and ideals of its founder, Spedan Lewis, John his ownership rightswho signed away company. retail in a growing it unfair that ownersHe did this because he felt of an enterprise more benefit should derive so much than workers, that the real believing strongly advantages of ownership should go to those who rather to the business their time and labour give supplied the capital. than those who have In 1928 Spedan Lewis created a trust over to take and runthe assets of the company it as a co-owned partnership. a written He developed constitution the managing of guidelines for and set out a number b his controlling interest in a very expanded much b shareholders. the yearsOver the constitution has been updated to reflect changes in our business.The latest edition in Januarypublished 2000 sets out our seven b eter Jones, where our democracy began John Spedan Lewis P

2 Responsible retailing Policies and principles 5291_Text 12/9/2002 7:58 am Page 2 Page am 7:58 12/9/2002 5291_Text 3 Responsible retailing Policies and principles uild relationships with our b take all reasonable steps to all reasonable take

conduct our business relationships conduct our business

To To To respect our Partners and encourage

To tners to consider the needs of others and to consider the interests of our Partners including

r elfare, health and safety, and empowerment usiness commitments.To work suppliers with our usiness commitments.To usiness practices and performance to identify with integrity and courtesy and honour our b sourcing and production the responsible towards of our merchandise and high standards of product safety. customers, suppliers and the local communities serve.Towhich we emphasise the importance of value, choice, honesty and service.To encourage Pa Relationships Communities Partners Environment Environment manage our operations so as to minimise our to promote good impact and environmental practice.To review regularlyenvironmental our b our energy efficiency, can improve we how minimise packaging and reduce water usage, waste disposal and air emissions. involve themselves in public service. in public themselves involve obtain To a wide range of views on our social and policies and performance.environmental their development and training.To promote and training.To their development in responsibilities permit.equality as differences To w recognise individual contribution communication.To constant have and reward our Partners fairly.To regard to the happiness of our members through their work. ■ ■ ■ Programmes ■ Democratic ownership As a minimum, will we are committed to working

Environmental responsibility Environmental We will communicate our environmental policies, our environmental will communicate will monitor our performance, set objectives

tnership’s unique structure means that Partners tners’ everyday activities and responsibilities. r r aim to reduce negative impacts to the minimum practical, impacts to the minimum aim to reduce negative and to take

or improvements and reportor improvements our progress. Demonstrable compliance meet or exceed all relevant legislation.Where no and will seek to develop legislation exists we appropriateimplement our own standards. Honesty and accountability means the sharing of profit, and power. knowledge We Sustainable progress Shared responsibility Shared our performance.Weto improve into will take account technical developments, evidence, scientific costs and customer concerns and expectations in and implementation of all new the development policies and procedures. social and environmental We involves everyone.involves case, own In our the John Lewis Pa f share the responsibilities of ownership as its as well rewards.We and implement social aim to develop in with our which fit policies and environmental Pa objectives and performance openly and honestly to and performance and honestly objectives openly our Partners and to others with an interest in our activities, including customers and suppliers.We will encouragewith us and seek them to communicate their views. ■ ■ ■ Principles ■ Social and environmental policy Social and environmental Our operations customers, our affect suppliers, (‘Partners’), employees the local and the environment.community retailer and a good neighbour As a responsible we opportunities can to contribute of others where we to the well-being and to the environment.We profit need to combine this with making sufficient health of the business. to ensure the continued and the programmes have Set out here are the principles follow we we impact or influence. significant have on the areas where we to focus developed 5291_Text 12/9/2002 7:58 am Page 3 Page am 7:58 12/9/2002 5291_Text report. also looks after goods handling. It en and printed our production units. by request a copy, card or please use the feedback kinson.Weaving, dyeing, fabric printing and making- v xtile manufacturing aitrose have also produced an environment report. also produced an environment aitrose have

r inal-salary and non-contributory pension scheme. the Partnership’s cars. 700 company fleet of over Since the department operates across the whole Partnership, reporthere we its work services providing in to the department stores business. Te The division also manages three textile production units – JH Birtwistle, McAlpin and Herbert Stead Pa sites, up are among the activities taking place at these located in Lancashire and Cumbria. of the Many furnishing fabrics sold in our shops are designed, wo Financial performance increased turnover annual In 2001 the division’s to £2,163 million, a rise of 6% on the previous year. of customer transactionsThe number climbed 74 million. high of just over to a three-year Productivity also rose, with sales per Partner to £93,800. increasing As co-owners of our business, Partners from benefit our trading successes. costs and Once all our business are accounted for,investments is the remaining profit distributed to Partners as a percentage of pay. In 2001, the Partnership distributed £57.3 million as bonus, the equivalent to 9% of Partners’ pay. annual There was, in addition, a £62 million contribution to the Partnership f The wider Partnership The Partnership’s interests extend beyond business department stores. (which Waitrose They include operates 136 supermarkets Farm and Leckford and Estate), residential clubs. and our four A fourth & Penton,production unit,Taylor ceased trading in 2001.July performance The social and environmental of these are not included within this W To write to the address at the back of the report. ensure efficient Royal provide goods handling and storage provide facilities Royal

offer a wider variety other offer of goods than any

rk st mail order catalogue and extended our Gift List r ears our programme and continued refurbishment, of ,200 commercial vehicles, our central transport or all our shops. local their own Most shops also have The widest variety of retail goods goods of retail The widest variety John Lewis first started trading Street, Oxford in London, in 1864. more than 27,000 employ now We department store Partnersnetwork within a of 26 shops,Aberdeen to Southampton. stretching from space With almost one million square metres of floor we UK retailer – more than 500,000 product lines. John Lewis for of growth 2001 has been another year department stores. in six opened our sixth shop We y modernisation of our more and extension at a number a major project at Peter shops including established Jones in London. introduced our new corporate We identity, of our shops choosing to rename with many John Lewis. Internet shopping made easy During the same period retail extended our we sales channels, internet launching shopping through the acquisition of the UK armjohnlewis.com following of buy.com. It has made a very encouraging start – and within the first months of its launch was the eighth few most visited UK retail website.We our also previewed fi service, in 23 shops. available now Distribution and warehousing Our retail operations are supported our in-house by transport and distribution operations. distribution Our centres at Stevenage, Northampton, and Blakelands Pa f and held before warehouse where goods are received and sale.display Home deliveries are also made from these local warehouses. Our distribution centres picked 42 million cases of stock to our and distributed over shops during 2001, of in addition to a small number our suppliers by delivered directly. products which were maintaining our fleet of more than for Responsible 1 department to types of vehicle 60 different uses over The department stores business 2.1 2001 2001 2001 93,800 27,732 £ 2.0 24,955 £bn 1.9 1999 2000 1999 2000 1999 2000 85,900 91,500 Department stores Distribution Production 23,655 otal sales

T Sales per Partner Sales per Partner Number of Partners ■ ■ ■

4 Responsible retailing The department stores business 5291_Text 12/9/2002 7:58 am Page 4 Page am 7:58 12/9/2002 5291_Text 5 Responsible retailing In the community The Partnership the spirit as to follow aims as well the letter of the law,contribute and to to the well- in which it operates.” being of the communities Constitution of the John Lewis Partnership Lewis Constitution of the John Includes “ – Customer service satisfaction and – Accessibility – Charitable giving and voluntary activities Trust Jubilee – Golden – Participation in the business community In the community In the 5291_Text 12/9/2002 7:58 am Page 5 Page am 7:58 12/9/2002 5291_Text have a strong presence in city centres:have 21 of king with a disability consultancy, Matters, Access can naturally incorporate these needs in new

tners ready to assist with shopping are always r

r to help us improve access in our older shops and access in our to help us improve the Disability under our obligations to fulfil Act.WhileDiscrimination are working we to improve this, will, we can, where we bring an goods from departmentinaccessible a customer to view. for Pa Access for disabled people is also a priority. disabled Access for Whilst we shop design and construction,are unfortunately there still some parts which are of our older buildings wheelchair users. for inaccessible been have We wo and carrying to the car, purchases also offer we and delivery. free local weekday We or city centres, our 26 shops are located in towns servedand all our shops are well transport. public by In Cambridge, our existing outgrown have where we shop, intend to relocate anew within the city we centre. have of other shops we At a number committed to expansion and refurbishment programmes, Jones Street and Peter as at Oxford in London, at our Edinburgh shop, and in Nottingham. A choice of 500,000 products a variety a one-stop shop for Our aim is to provide of customers.We rangepossible sell the widest of goods, from computers to buttons. items Many stock,that we example in haberdashery, for are now elsewhere.hard to find Because all these products are under one roof, our customers from benefit to travel of not having the added convenience locations. between want to develop strong,want to develop long-term

believe that customers the believe should have will do our best to provide it.Thiswill do our best to provide includes

our principles of honesty, service, choice and

reating our customers as individuals also underlies In all our dealings with customers, are guided we by While our operations, policies and practices influence groups, community many report we in this section on our relationships with customers, neighbours, and community.the wider business Partner and supplier other chapters are discussed in initiatives of this report. Putting our customers’ first needs value. us, To honesty and fairness means providing customers with accurate, informed advice, sales and, because our Partners no commission on receive sales, such advice to be impartial. aim for we We to shop with us again and again.confidence It is importanttherefore that no customer should from us. make purchase they regret any Our after-sales services, guarantees and returns this. policies are designed to prevent A personal service It is our intention to meet the needs of each customer individually. All our Partners on the shop floor are trained each customer’s to establish recommending the products requirements before which might meet them. specific offer In addition we advisory services fashion, for menswear, furnishings and the nursery. to all accessible Making ourselves T our approach to customers with disabilities. If a persondisabled the help they need, lets us know we making any literature available on request in large on request literaturemaking any available print, Braille or audio tape, induction and providing the hard of hearing.loops for relationships with our customersrelationships based on fairness respect and mutual We

6 Responsible retailing In the community 5291_Text 12/9/2002 7:58 am Page 6 Page am 7:58 12/9/2002 5291_Text 7 Responsible retailing In the community recognise that an organisation can make

tners charities to recommend which they r ould like to support,ould like both at local and national Making a difference by charitable giving by Making a difference We to charities that individuals differences in ways cannot. companies, many Like encourage we Pa w level, in fundraising activities and to get involved themselves. Our unique structure of councils and Partners our committees enables – whether based centrally or in the shops, distribution centres or production units, to as branches refer all of which we resources necessary access to the financial – to have to the to give much how them to decide to enable charities they wish to support. Partners local giving by Charitable In 2001, through the department £407,000 was given stores’ networkof branch-based charity committees. charity With their own to use entirely budgets at their discretion, a special all our branches have charities secretary and charities committee, the members to represent the views elected locally of local Partners.Through these committees our department store Partners supported 3,000 over local charities in 2001, representing a wide range of causes from caring the sick to medical research for and conservation.and wildlife dedicated Local branch management also have funds to support just one small take good causes.To example, contributed our Kingston shop recently refurbishment fund. to the local parish church’s Grade1Because it is the only in listed building Kingston and an important hosting local for venue concerts, it important our local management felt to help preserve this site. review and monitor our performance continually.

ebsite and catalogues, fair aim to offer we but our of our 26 shops. Overall, recorded 10,949 we Our target compliments than more is to receive complaints. During met this target 2001 we in f there to resolve unable were complaints which we and then, compliments whilst receiving 35% fewer put that into perspective,than complaints.To every one complaint for that’s 6,750 customer transactions. Encouraged are with our we though performance, remain committed to monitoring we customer satisfaction. and improving Never Knowingly Undersold Knowingly Never retailers priceWhile many a match the lowest our that customer – – for locally customer finds pricing goes a step further. policy it is brought Once sell is cheaper in to our attention that a product we another local shop, our shelf price so all lower we our local customers benefit. role Each shop also has a dedicated team whose priceit is to make comparisons with other local shops; and all Partners are encouraged to identify ‘undersales’, bonus being rewarded with a modest of £2 a time. In practice, cannot extend every we detail of our pricing policy to our John Lewis Direct w pricesand competitive there as well. customer feedback Inviting Naturally, raising an and maintaining standards is ongoing process. All our Partners are empowered to deal with customers’ comments or complaints, customer can to resolve aim where we and we complaints on the spot. In the case of written complaints, receipt our policy is to acknowledge within 24 hours the complaint as and resolve as possible.quickly We Through our charityThrough our committees, department our store Partners supported3,000 local charities over last year 572,000

£ (inc.Waitrose) elfare and counselling 404 outh and children's societies 894 Chairman368,000 Management 246,000 Central Council 370,000 Branch Councils Wildlife and conservationWildlife Miscellaneous 435 106 Emergency/overseas relief 7 Care and housing of the elderly 174 elderly the of housing and Care Care of the sick Medical research and training 76 disabled Physically Learning disabilities 781 Y W 184 99

■■ ■ ■ ■ Charitable giving 2001 Charitable ■ ■ ■ ■ ■ Number of local charities type in 2001 supported by ■ ■ ■ ■ ■ ■ 5291_Text 12/9/2002 7:58 am Page 7 Page am 7:58 12/9/2002 5291_Text 5291_Text 12/9/2002 7:58 am Page 8 8 Responsible retailing We actively encourage staff at all levels to make a contribution to local lives through initiatives intended to forge closer community links nthe community In Total council and management At the Partnership level, our centrally elected We also respond positively to requests from Partners giving Partnership-wide £ charities committee gave £370,000, mainly to national for time off to take part in public affairs, for example 1,527,000 1,555,000 charities, and a further £368,000 was given by the as a local councillor, Justice of the Peace, Special 1,421,000 Chairman to music, arts, education and environmental Constable or in the Armed Forces Reserve Service projects. In total, the Partnership gave £1,555,000 to (AFRS), which includes the Territorial Army. Partners charity, equivalent to 1.1% of the Partnership’s profit attending AFRS training camps or exercises can take and an increase of 2% on the previous year’s figure. up to two weeks’ leave over and above their normal Importantly, we believe, more than 60% of our holiday entitlement. Partners given leave for public charitable giving was made through elected councils. duty receive any difference in pay between the amount they get for public work and their normal Supporting voluntary activity Partnership pay. In addition to gifts made by our charities 1999 2000 2001 committees, many Partners choose to support good causes themselves. Partners at our Milton Keynes Charitable giving as a % of profit branch, for example, devoted 1,473 hours to 0.73 1.02 1.1 community service, as well as raising over £5,700 1999 2000 2001 for Cancer Research UK’s Race for Life 2001.

Partners also have the opportunity to make tax- efficient charitable donations directly from their pay through the ‘Give as you Earn’ scheme.

Milton Keynes Partners participate in UK Race for Life

Branch-based giving, St Joseph’s Pastoral Centre Sarah Bourne, Local Charities Secretary. On its own initiative, John Lewis Brent Cross Charities “Whilst we have the unique opportunity to support many Committee decided to nominate a Charity of the Year, local charities, it was a pleasure to offer furnishings rather the first of which was St Joseph’s Pastoral Centre, a centre than cash and, together with local Partners, help transform for adults with learning difficulties offering courses in art, an unused building to carer accommodation”. music, cookery, computers and aromatherapy. The charity was converting an old school, and our contribution helped it refurbish two adjoining rooms to enable carers who travel long distances to stay overnight. Local Partners helped with DIY whilst the charities committee supplied furnishings, including carpets, curtains, beds and light fittings. 9 Responsible retailing In the community hile, the Eden River “We can all see a vast improvement can all see a vast “We tners full-time or part- be seconded either may r ust awards was made in May 2000, May was made in ust awards 55 department ust’s educational programme and project,ust’s to restore ange of vocational and personal and ange of vocational skills at the service Pa store Partners to put an enormous been able have r of their chosen good causes, their without affecting income, holiday, or pension entitlement. bonus from PartnersApplications are invited at all levels the basis of measurable are made on and awards the Partner to and benefits objectives and the local community. supported Among initiatives to date are Action ProgrammeYMCA to design Homeless the and run a furniture restoration young scheme for people setting up home. Meanw Tr the natural beauty and ecological integrity of the area, was supported Partner two by volunteers. time for up to six months.time for Since the first round of Tr “None of this would have been possible,” says Norman, “without the help of Partners and the allotment holders themselves. a small In six months we’ve transformed corner of Heald Green, creating a pond and marshland of 300 square metres plus a bank 15 metres long.” Thanking Norman and other Partners their for contribution, Runcorn Roy of the Stockport Metropolitan Allotment Council said: in the area, to your perseverance.” and this can only be down king two days each week for six months, for each week days king two Norman r etlands area, the project set out to create raised ond and Wetlands Project Wetlands ond and Golden JubileeTrust– a unique opportunity In September 2000 the Partnership launched a to support designed unique initiative Partners keen to work with UK registered charities.The Golden Trust,Jubilee to commemorate established the transfer to the Partnership shares in of John Spedan Lewis’s 1950, made with draws on income from investments a Partner allow to volunteer a £5m endowment.To project,be seconded to a community pays Trust the the salary of the volunteer. Jones, Central Stock Control, John Lewis Cheadle, was sowing and in planting 300 plants in the wetlands involved 50 species of grasses and wild flowers over seeds for indigenous to Cheshire. Hedging, coppice work and nesting will furtherboxes encourage diversity, wildlife and play years role for educational to come.a valuable Besides making an important contribution to local conservation, the work further will help prevent flood damage to allotments. nearby planting beds for disabled allotment holders. disabled planting beds for Wo Golden Jubilee secondment,Golden Jubilee Wildlife Cheadle P pond and the Cheadle wildlife as developing As well w Stead McAlpin Partners working with Eden River Trust Stead McAlpin Partners working with Eden River Thanks to the Golden Jubilee Trust, Golden Jubilee Thanks to the Partners 20 from department stores were seconded to 33 charitiesthan 13,739 hourswith more in good causes invested in 2001, 2001 13,739 outh Disability Elderly Y Arts

■ ■ ■ ■ 2000 5,353 Environmental Environmental Medical/Care Homeless Community Community Animals

eople hours invested by charityeople hours by type invested Golden Jubilee secondments Golden Jubilee P ■ ■ ■ ■ ■ 5291_Text 12/9/2002 7:58 am Page 9 Page am 7:58 12/9/2002 5291_Text also actively supportalso actively and contribute the towards

Enforcement Forum,TerryEnforcement Neville, our Director of Legal Services, addressed London groups of Consumer Support Networks whose aim is to access to expert,improve accurate and timely advice on consumer rights. an active also play We role on both the Corporate Social Responsibility Advisory Policy Group (CSRG) and the Environment Group (EPAG), contributed and we to the strategy sustainability of the BRC’s development Retailing’. Sustainable ‘Towards Upholding international standards We of internationaldevelopment standards. For example, Frank Moore, our Head of Merchandise Standards, is Chairman of International (ISO/TC38), European (CEN/TC248) and British (TCI/100) standards textiles and apparel. committees for These committees uphold rigorous performance textiles worldwide.Theystandards for an call for commitment to a wide rangeactive of programmes with important at communities implications for home and abroad. and other opinion formers members consumers, and keeps believe we have an important have we believe contribution to

med as a partnership City Sheffield between r press, parliamentarians Council,Yorkshire Forward and English Partnerships,Council,Yorkshire the aims to spearhead renewal on behalf of both city and the region. At a national level, role within the an active play we BritishRetail Consortium (BRC), which expresses the views of its retail abreast of issues within the retail sector. The current Chairman of the BRC is the Partnership’s Deputy Chairman, Felwick. David At the BRC, working our representation within key in touch with issues closely groups helps us stay our customersaffecting and the community. For example, in his capacity as Chairman of the BRC’s Our voice in the business community in the business Our voice At a regional level, our branch of many managing directors and civic role in local business an active play affairs. Andrew Slater, Managing Director, John Lewis Sheffield, One, is a board member of Sheffield for example.The pilot urban regenerationproject, fo Frank Moore, Head of Merchandise Standards make within the business community the business within make Although as a PartnershipAlthough as no shareholders, have we we

10 Responsible retailing In the community 5291_Text 12/9/2002 7:58 am Page 10 Page am 7:58 12/9/2002 5291_Text 11 Responsible retailing Responsible sourcing

Includes ohn Lewis Responsible Sourcing Principles Sourcing Responsible ohn Lewis J For many years we have recognised our recognised years have For many we of the communities well-being the responsibility for our operations,touched by including our suppliers and their employees.We lasting seek to build based on trustrelationships with them clear and a understanding rights of mutual and responsibilities.” sourcing – Principles Our Responsible Sourcing monitoring – Supplier – Timber – Chemicals – Labelling safety – Product “ Responsible Responsible 5291_Text 12/9/2002 7:59 am Page 11 Page am 7:59 12/9/2002 5291_Text the societies cultural norms, legal and dignity of king hours king conditions r r request a copy of our Responsible Sourcing of our Responsible request a copy

Wo Wo Health and safety of children Employment Forced labour representation Employee Equality of treatment Pay Animal welfare The environment ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Furthermore, expect our suppliers we to ensure that their suppliers adhere to the same standards. To Principles, card, please use the feedback or write to the address at the back of this report. It is therefore difficult to know for sure that our sure that for to know difficult It is therefore observed.sourcing principles faithfully are always to doing our best are committed Despite this we at all times. also recognise the need to balance We our expectations with the framework, integrity source our products. from which we with local, fully Besides complying national and international laws, regulations and obligations, all our suppliers share and uphold our sourcing must principles areas: in the following strive to uphold internationally agreed standards help us take a lead within the communities a lead within the communities help us take our merchandise director.

uying agents, expect them to be observed. we ange of different products,ange of different from tiles to televisions, Respecting the integrity of the societies from which our products come Our relationships with suppliers, our relationships like with customers, are based on honesty, fairness, courtesy and prompt attention. expect our We suppliers to obey the law, not only to also but respect the rights, of their and well-being interests employees, and the environment. their communities countries, different In sourcing products from many we of labour. known Making our expectations To whose lives we touch, we whose lives the Partnership’s Responsible Sourcing Principles set out our expectations of labour standards, management. and environmental safety made these clear to all our suppliersHaving and b our sourcing principlesImplementing or applying is the responsibility of the Partnership’s trading divisions, detailed each developed which have codes of practice and conditions of supply. For John Lewis department stores, this is led by Responsible sourcing in practice sourcing Responsible In our department sell an extensive stores we r cosmetics to cutlery. source these products We from more than 8,000 suppliers or agents, and countries.from more than 45 different Our relationships with suppliersOur relationships at home and both codes of practice detailed by governed abroad are of supply and conditions HN LEWIS PARTNERSHIP HN LEWIS JO responsible sourcing principles

12 Responsible retailing Responsible sourcing 5291_Text 12/9/2002 7:59 am Page 12 Page am 7:59 12/9/2002 5291_Text 13 Responsible retailing Responsible sourcing intend to apply our regional experienceintend to apply here

usiness. to be using underage If a supplier is found ollowing a methodology based on international a methodology based ollowing Audit results are carefully reviewed and action points and action reviewed Audit results are carefully prioritised appropriately. For major issues, example for health and safety, our suppliers to rectify will be asked days. within a few the problem The factory will then action. taken be inspected again to confirm they have As a result of our audits, our relationship with two factories has been terminated because they were the necessaryunwilling to make recommended improvements. Independent scrutiny inspection reportsThe accuracy of our agent’s is in turn to scrutiny subject independent auditor. an by to The global auditor CSCC has been retained a programmedevelop of independent factory inspections, it to inspect between asked have and we 10 and 20 factories on our behalf, each year again f standard SA8000. CSCC, inspection by Following supplier who a time fails to meet the required standards is given to put things right being inspected again. before Our aim is to help good suppliers meet good standards. In the case of unco-operativesuppliers, or those to meet our requirements,unable withdraw our we b labour,or forced relationship is terminated our without further warning. audit programme The first of our Far-Eastern year complete.is now our annual continue As we inspections and independent third-party audits, we locations. to other sensitive have developed specific guidelines and training specific developed have ication of our key suppliers.ication of our key are now introducing more stringentare now product

f

ri r our buyers, technologists and agents, all of whom elfare and the environmental impact of production elfare and the environmental ut currently excluding India. andom, workplace anonymous interviews. By or over 30 years.or over For all products exported our by fo an importantplay role in choosing our suppliers. In addition, monitor observance we of these principles and other codes of practice or conditions also arrange and we of supply independent ve Monitoring suppliers Monitoring a very constant base is a broad supply challenge. Our priority direct our efforts is to to risk there is the most significant believe where we levels, acceptable below be that standards may and change the best chance of influencing have where we positively. In practice, initially this has meant focusing us from the Far East, by on products sourced directly b In 2001, implemented a new ethical supplier we monitoring in programme developed which we with our principalhouse.Together overseas buying assess factoryagent we conditions, employee w processes. It does not, however, the sourcing cover of raw materials. For materials at risk, such as timber, we assurance programmes. purchases are sourced Most of our direct Far-Eastern dealt have through a single agency with whom we f agent, a set of detailed supply co-developed have we standards based on the international accountability standard SA8000.We instructed have to our agent inspect supplier factories, prioritising them according and the degree of risk.to the value of our business specialist team monitoringAnnual our agent’s by includes inspecting records and premises, plus r August 2002, 113 formal inspections had been made on our behalf, countries, in seven with all but suppliers on our priority12 Far-Eastern list inspected. Supplier assurance We Over the last year,Over audits, than 200 compliance more audits,including initial audits and health and follow-up surveys,safety been carried have out be audited 12 Audited 113 38 Inactive To threshold in 2002 Below 5

Our agents inspect a supplier’s factoryOur agents inspect a supplier’s ■ ■ Supplier auditing 2001/2 Number of suppliers (Far East only) ■ ■ ■ 5291_Text 12/9/2002 7:59 am Page 13 Page am 7:59 12/9/2002 5291_Text are naturally concerned about the use of

oday, sell no product which, we to the very best ind an alternative source in a short space of time. No more Brazilian mahogany Brazilian mahogany No more During 2001, responded to a Greenpeace we enquiry concerns about a range over of furniture Jones shop made from Brazilian sold at our Peter mahogany. to verify that unable were Because we source,this timber came from a sustainable we encouraged an alternative. the supplier to find withdrawRather than immediately the product impacted on the business severely have which would of a small British supplier, worked we together to f T of our knowledge, is made of Brazilian mahogany. our goals towards Chemicals – progress We sell or use where there chemicals in the products we be potentially is evidence to suggest that they may harmful human health or the environment. to Our strategy is to stop using all chemical substances hazardous to human health, to be directly known alternatives are available.where safer If not (e.g. in the case of cleaning materials) sure that there make we are clear instructions use and disposal. on their safe been For products and substances that have to be harmful to the environment,proved through manufacture, use or disposal, our target is again alternatives,to identify feasible and, where safer substitutes exist, use them accordingly. For cases where no alternatives exist, will we undertake a detailed risk assessment to determine of risk and the level environment to both the human health, taking account of the conditions of manufacture, and disposal, of each product. Following consider product that we will stop using any this we to be a serious hazard. Despite our efforts so far, the retail sector to for to future concernsrespond positively on chemical usage, consensus on harmful be chemicals must and supported government reached by industry. by support of the British the objectives Retail share international concerns about illegal logging

Consortium’s management on the sustainable policy of timber sources, and remain committed to making shared goals. these progress towards We forestryand unsustainable practices. on Following from earlier work, an assurance developed have we tropical hardwoods. for programme specifically in a number sell timber products Although we departments,of different the majority are found in our range of furniture currently where we sell varieties30 different of tropical hardwood, sourced from more than 100 suppliers. With furniture as an immediate priority, have, we with the advice of experts, categorised those tropical all our asked according to riskhardwoods have and suppliers information on the origin to provide of their timber. 80% of our timber believe Whilst we used in furniture is not at risk, initiated have we a more detailed risk are assessment where we uncertain, requiring suppliers of high-risk timbers to on origin, documentation verifiable provide chain of custody and the sustainability of forestry practices. to of our suppliers been able Whilst a number have assuranceprovide through national and international certification schemes such as the Forest Stewardship Council’s, of products come from regions a number certificationwhere no credible schemes exist. In these cases, ourselves must review supplier we practices and decide on their acceptability. help To us with this, are working we with independent experts assurance our own ProForest to develop assessment criteria, aim in 2002/3 to assess and we all high-risk suppliers in our furniture directorate. Product assurance Timber audits Complementing our supplier inspections and is an assurance programme designed specifically to meet concerns about timber and its sourcing. We Where we are unable to secure satisfactory unable are Where we assurance of timber, on the source chain of manufacturingcustody or processes, work we an alternative, to find with our supplier ultimately withdrawingsale if necessary the product from

14 Responsible retailing Responsible sourcing 5291_Text 12/9/2002 7:59 am Page 14 Page am 7:59 12/9/2002 5291_Text 5291_Text 12/9/2002 7:59 am Page 15 15 Responsible retailing

Our suppliers are in no doubt that if our guidelines are breached they will lose our business Responsible sourcing Being clearer about labels members of such schemes nor users of their labels. Across all our products, avoiding confusion with The reason is simple. Because we source handmade labels and labelling statements remains a priority. rugs from many regions not covered by these specific Whilst we are not opposed to the use of schemes, the labels could only appear on a small environmental labels on products, we do not proportion of our carpets. Since we are as confident promote the use of confusing or unsubstantiated as we can be that all our handmade rugs are made in statements. Our policy is to provide our customers accordance with our responsible sourcing principles, with all the necessary information to help them we would not want our customers to think that choose the product that is right for them. For unlabelled products were of suspect origin. example, long before the introduction of compulsory energy labelling, we provided estimated annual energy consumption information for all fridges and freezers.

Handmade carpets We source only from suppliers whom we trust and who fully understand our total opposition to the exploitation of children. Our suppliers are in no doubt that if our guidelines are breached they will lose our business.This message is not only pressed home through the importers with whom we work, but our buyer also visits the countries concerned and discusses the subject directly with our suppliers. Whilst there are a number of different carpet labelling schemes, designed to give customers assurance on labour standards, we are neither

Respecting cultural norms in India Recognising the special relationship we have with these In parts of rural India, making handmade carpets provides local families in Ghosia, India, we were delighted to be much needed extra income for many families. Many of the invited by our supplier to contribute to funding a school rugs we buy are produced by families in their own homes. for their children and others locally. With 650 pupils However, through close links built over many years with and growing, the new school is extending opportunity our supplier, plus regular buyer visits, we are confident that for girls up to age 15, who are not traditionally the our suppliers satisfy our responsible sourcing principles. main beneficiaries of education.

Morning school assembly in Ghosia occasions do arise when products ading Standards Officers exist to monitor standards ell as the letter of the law,had no prosecutions we rading standards rading standards usiness dealings. Acting in line with the spirit as or breach of consumer legislation in 2001. Product recalls Product Regrettably, standards of safety our high on sale fall below or performance. In such cases, infrequent though they are, set in motion our product withdrawal we procedure,and investigation issuing a recall asking customers to return goods where necessary. recalled 11 products withdrew and In 2001 we from sale, products. own-label none of which were T Tr issues. advice on consumer and offer At John Lewis Trading department work stores we with closely Standards Officers fairness to ensure in all our b w f are committed to ensuring every product we develop our own safety codes and test standards. codes safety our own develop

sell is safe.Technologists in our buying offices and and offices in our buying sell is safe.Technologists Laboratory in London Testing at our Merchandise expertprovide guidance on consumer legislation ensuring with for comply and are responsible we ranges.our own-label across all our obligations For our customers, assurance on product safety of forms.Within a number takes Europe, example, for a wide range of consumer goods from electrical the CE display must and lighting products to toys mark or European Community denoting compliance performance and with essential safety requirements. importer are the direct Where we into Europe of an product,eligible the holders are we of the CE mark, and holding maintaining technical files for responsible valid test certificates. products such as own-label For fashion items, which are not subject to CE marking, we Making sure products are safe Making sure products We Routine testing of toys in our London laboratoryRoutine testing of toys 5 14.7 £ 997 / 1998? 1 mer war ETY RECALL ave Bed SAF NT GE UR Heatwave Microw it as a gift in this product from us or receive buy • Did you The rubber deteriorates if overheated,• and can cause burns. • Please return a full refund. for it immediately questions, any have • If you please ask a manager in Perfumery.

16 Responsible Retailing Responsible sourcing 5291_Text 12/9/2002 7:59 am Page 16 Page am 7:59 12/9/2002 5291_Text 17 Responsible retailing Environmental performance

emissions 2 Constitution of the John Lewis Partnership Lewis Constitution of the John Includes Leadership and co-ordination The Partnership all reasonable take must detrimentalsteps to minimise any on the our operations have effect may environment, to promote good and practice.” environmental – Legal compliance – Legal “ – accountability – Local – Transport efficiency – Energy – Water – Packaging and waste – CO performance Environmental Environmental 5291_Text 12/9/2002 7:59 am Page 17 Page am 7:59 12/9/2002 5291_Text 5291_Text 12/9/2002 7:59 am Page 18 18 Responsible retailing Individual branches and Partners are encouraged to develop their own initiatives in response to local needs and opportunities Environmental performance Environmental leadership and Ownership and accountability co-ordination As a Partnership, we recognise that the management of environmental issues involves everybody. As Ultimate responsibility for the Partnership’s a retailer, we know our overall performance will environmental standards and performance rests reflect the individual performance of our branches. at board level with the Deputy Chairman and, At each branch, our services management team on the Department Store Management Board, is responsible day to day for building maintenance, with the Corporate Affairs Director, Nigel resource use and waste management. The department stores Environment Working Group Brotherton. Until recently, both the department store division and Waitrose developed their own Environmental principles and programmes environmental management systems and procedures We acknowledge that many of our operations impact separately. From 2002, however, our newly-appointed on the environment in one way or another, and strive head of environmental management will co-ordinate to keep such impacts to a practical minimum. the activities of both divisions. However, the principal focus of our environmental management programmes falls where we believe we It is our view that effective environmental can have the most impact. management cannot be achieved in isolation and that we need the expertise and support of others. The Environment Working Group – with representatives from merchandising, product testing, trading, building and services, safety, transport and corporate communications – meets regularly to discuss environmental initiatives and activities. It has also overseen the preparation of this report.

Leading by local example Although, as a Partnership, we have yet to determine JH Birtwistle of Lancashire, one of three Partnership whether our retail-based environmental management textile production units, has by its own initiative programmes would benefit from external certification, implemented an environmental management system, JH Birtwistle is sharing its experience with another of achieving independent certification in January 2002 to the our production units, Stead McAlpin, which is implementing internationally recognised standard ISO 14001.The branch IPPC (Integrated Pollution Prevention and Control) and opted to pursue this standard having already observed at has also decided to implement and seek certification for first hand the benefits of having a certified product quality its quality management programme in 2003/4. management system to the ISO 9001:2000 standard. Sam Blackley, Quality Systems Manager at JH Birtwistle, led the project. “Integrating an environmental management system into our quality control procedures made sound business sense,” says Sam. “Not only has it enabled us to demonstrate to customers and Partners that we take our environmental responsibilities seriously, it has also helped us focus our efforts to ensure we continue to improve our environmental performance.” Certificate No. EMS 61488 19 Responsible Retailing Environmental performance expect home delivery mileage, which accounts

er longer hours, and the introduction of home ear, million 1% to 2.7 is up by travel business while or 45% of the total commercial mileage, to rise More miles, less fuel Every day, homes many to 26 shops and deliver we across the country. With more of our shops trading ov shopping through johnlewis.com and our newly introduced catalogue, of our goods the number deliveries has increased. Inevitably, our commercial mileage is rising.and business the past year,Over our commercial mileage has 15.7 million miles per 7% to more than increased by y miles. As our London customers advantage of take home deliverya more flexible service during 2002, we f still further. The best drivers, the most efficient vehicles also means of our vehicles the efficiency Improving helping our drivers as possible. to do their job as well trainingBesides developing courses in economical driving – which all our commercial and defensive drivers use a unique risk – we attend rating system to help us identify and grade drivers accident by frequency and severity. performance has improved.Whilst of the total number our drivers has risen 10%, by numbers in the no or low-risk category 16% to 337 while our overall increased by have ‘risk rating’ fell. accidents also of vehicle The number dropped from 766 in 2000 to 706 in 2001, an 8% fall. 3% to almost one million square metres. mally reviewed and a training reviewed mally programme developed.

uch as a third. During our total trading 2001 hours r usiness growth is kept to the minimum. is kept usiness growth isk, either incident-free or, indicating they were following isk applies to drivers or more two for responsible Other significant changes to our retail operationsOther significant include the extension of opening hours at 18 of our 26 shops – in certain trading cases weekly hours risen as by have m the previous year, 5% over climbed by we a figure expect to rise which time new to 16% in 2002 by trading a full year. been in place for patterns will have As expected, longer trading hours resulted have in additional resource use and waste generation at our shops, of goods deliveries. the number while increasing increase in absolute The result has been an inevitable impact.environmental Our strategy has been to focus of our efficiency the environmental on improving operations impact of to ensure the environmental b How we rate driver risk rate driver we How fleet engineers our own Designed by and introduced in March 1999, our risk rating scheme uses accident statistics performanceto assess the safety of the Partnership’s 1,200-plus commercial drivers. Drivers penalty are given in, involved each incident they are points for and for.responsible Overall branch performance and individual driver monitored, performance are continuously with the results included in drivers’ appraisals. annual In 2001, 49% of our drivers considered no or low were r investigation, considered free of responsibility. Unacceptable r accidents, at which point the incident report forms are fo our risk introduced Since we rating scheme, overall With increased sales and deliveriesWith increased added making our distributiondemands on systems, transport is at the heart thinking our environmental of Sustainable progress in a growing business business in a growing progress Sustainable During to grow. continued our business 2001 New shop openings and ongoing refurbishment increased our floor area and extensions have by 1248 2001 2001 18.41 Low riskLow High risk

■ ■ 17.38 table risktable p 1127 2000 million miles No risk Medium risk Unacce

Number of drivers and Number of drivers Waitrose) risk rating (inc ■ ■ ■ 1999 2000 15.95 Commercial Car

Mileage Mileage ■ ■ 5291_Text 12/9/2002 7:59 am Page 19 Page am 7:59 12/9/2002 5291_Text ere the first UK concern to fit CRTs to 7.5 tonne ere the first UK concern CRTs to fit aim to have our entire commercial fleet from aim to have accept a £600 cost for each of the 7.5 tonne accept a £600 cost for

w

hicles.We estimate that fitting CRTs alone has hicles.We CRTs estimate that fitting with a CRT, fit hicles we demonstrating this is an hicles. Of our department stores commercial fleet of st LPG car in 1999, in our since invested have we wn LPG filling station at one of the Partnership’swn LPG filling usiness miles were undertakenusiness miles were using LPG, compared oday, all our Partnership drivers business can opt for oday, to all new commercial CRTs is to fit our policy ehicles, pursue actively we the wider use of alternative r isen to 53. 26 cars In 2001 our car fleet increased by ve 60 tonnes. emissions by carbon dioxide reduced annual We ve rather objective.environmental than a financial We 2005. technology by 7.5 tonnes upwards using CRT Action Cleanup Transport the received In 2002 we in recognition of our commitment Award Green Fleet on the have to minimising the impact our vehicles environment. fuels,Alternative benefits environmental that Liquid Petroleum found Although our trials have Gas (LPG) and Compressed Natural Gas (CNG) long-range for are unsuitable driving in commercial v car fleet.fuels in our company introduced our Having fi o distribution centres. T LPG, in our fleet has of LPG vehicles and the number r to 734 in total, with 62% of new cars using LPG. During 7%, the year or 900,000, of the Partnership’s b with 64% diesel and 29% petrol. and driver of LPG to both environment The benefits are plain. reduced, Air pollution is with emissions of carbon dioxide, carbon monoxide, and hydrocarbons particulates diesel and petrol. than for all lower T ve 85 tractor units, with CRTs. so far been fitted 41 have This practice also extends to our home delivery fleet – we also work hard to ensure our commercial vehicles

90% to below 1kg per 100,000 miles and avoid 1.47 1kg per 100,000 miles and avoid 90% to below erallconsumption fall to 1.18 million gallons, fuel

ap or CRT. By filtering exhaust emissions, CRTs ey to environmental gain ey to environmental ollowing more than 20 yearsollowing of incident-free driving. tonnes of carbon dioxide over the same distance. over tonnes of carbon dioxide Annual awards for safe driving safe for are also made to awards Annual of members the Prevention Society for of the Royal Accidents (ROSPA), which all drivers are encouraged to join. Of the 979 Partnership drivers who are members, in 2001, awards for 826 qualified while 14 department store drivers gold certificates for qualified f to driver Michael Ure,Special recognition went after 34 years of incident-free driving. are drivingAlthough we more miles, safer believe we driving more economical driving means and this has of our commercial the fuel efficiency helped improve fleet. In comparison with the previous year, 2001 saw ov a reduction of 2%, mileage per gallon rose while from 13.05 to 14.26, increase of 9% during an the same period.We to monitor our vehicle will continue further of making and to look at ways efficiency improvements. emissions exhaust reduced Cleaner air through We from the latest,benefit greenest technology – currently Regenerating with a Continuously Euro 3 engines fitted Tr reduce emissions of carbon monoxide,substantially particulate emissions that matter and hydrocarbon also cut out emissions of carbon reduce air quality.They dioxide, the gas which most contributes to global warming. They reduce emissions of particulate matter by In a growing business requiring business In a growing road more journeys, holds a efficiency vehicle greater k Michael Ure, 34 years of incident-free driving 1.18 2001 2001 million gallons 1.20 1.07 35.88 36.51 36.21 13.51 13.05 14.26 1999 2000 1999 2000 Commercial Car

Fuel consumption ■ ■

Miles Per Gallon (MPG) Miles Per car

20 Responsible retailing Environmental performance commercial 5291_Text 12/9/2002 7:59 am Page 20 Page am 7:59 12/9/2002 5291_Text 21 Responsible retailing Environmental performance or information on energy consumption.current Details of Understanding use energy we better how more than 60% of energyAccounting for at consumption our shops, cooling and heating, play lighting and ventilation a crucialenergy role in our drive towards savings. Although presents business achieving reductions within a growing challenges, been monitoring our energy have we years many and remain committed to consumption for fronts as possible. energy on as many improving efficiency Recent consolidation of our branch-based energy in the £400,000 to save us purchasing has enabled alone.last year Crucially, however, energy consolidating has also brought with it greater uniformitysupply of consumption data, compare can now and because we performance with another,one shop’s are far better we and share improvement placed to identify areas for best practice. best practice via branch initiatives Promoting In each branch, energy responsibility for management Partner.is assigned to a specific point a focal This provides f performance against targets, as best-practice as well guidelines, are circulated to all branches monthly through management reports and regular energy bulletins. are using round

We Using hydraulics to raise a second Where trailer space allows, we Using return journeys from shops to oided more than four million miles. oided more than four av our own engineersour own and first used in 1985, our

consolidate loads from three of our four distributionconsolidate loads from three of our four to our more distant shops. travelling centres before of our During increased the availability 2001 we Gift List service, in 23 shops. available which is now When customers gifts, wedding buy example, for either in person or online, delivery, consolidate we reducing unnecessary home delivery mileage. earliest trailer multi-deck retired from service in 2002 after almost 500,000 miles on the road. of using multi-deck Although calculating the benefit trailers is complex, estimate that in 2001 we we collect products from suppliers, over avoided we 1,900 journeys and some 424,686 miles during 2001, without compromising delivery flexibility. are We on year. committed to increasing back hauling year internal when loaded, floor trailers multi-deck increase 80%. on average load capacity by multi- 2001,109 In in servicedecks were of our trailer representing 50% fleet. However, their use is nothing new. Designed by scheduling systems, which use computers to help optimise route efficiency, and experimenting technology to help locate with satellite navigation customers’ homes more easily. Consolidation Round scheduling systems Multi-deck trailers Back hauling ■ ■ ■ ■ Noise pollution is also cut because LPG engines are Noise pollution is also 50% quieter than their diesel equivalent.We estimate 125 tonnes of carbon that our use of LPG has avoided compared with the petrol alternative.Thedioxide from are passed on to benefit cheaper fuel costs we our drivers personal through lower mileage rates. movements vehicle Reducing overall from every to examine efficiency continue While we angle, the increase of keeping ways also look for we practical. to the minimum movements in our vehicle are: to develop continue Among areas we 159 144 2001 Gwh 2001 Gwh 146 142 142 135 1999 2000 1999 2000 Selling branches Distribution Production Central offices Selling branches Distribution Production Central offices

Electricity consumption Electricity consumption ■ ■ ■ ■ Gas consumption ■ ■ ■ ■ Our first trailer multi-deck in 1985 5291_Text 12/9/2002 7:59 am Page 21 Page am 7:59 12/9/2002 5291_Text have now completed the first completed now phase of our have -like sales areas during-like 2001, energy our Gwh

r aking these changes into account and comparingaking these changes into like- olumes and contaminant concentrations are carefully Using water wisely buildings, use water in all our Although we 680,000 Stead cubic metres or 54% of our water use is at our McAlpin textile production unit. Most of this water is extracted processes, and used in wet locally principally printing, being after which it is treated before discharged to a local sewer. Extraction discharge and v an externalmonitored by accredited laboratory in accordance with our discharge permit. At no time permitted exceed our in 2001 did we extraction or discharge allowances. Unfortunately, pipe at due to a leak in the supply Stead McAlpin it was necessary during parts of 2001 to extract with an extra required more water than we 600,000 cubic metres of water returning unused to the river. since replaced the pipework have We concerned and expect extraction to fall volumes in 2002. accordingly T fo of sales area has consumption per square foot 2%. by slightly improved Our target is to 2002 for in energy efficiency. a 5% improvement achieve unlikely that we would be able to continue trading to continue be able would that we unlikely longer. much at the shop for Rather than relocate from with historicala building Partnership Jones ties – Peter was the first shop where Spedan Lewis began to implement his vision of Partner democracy and co-ownership worked with English Heritage – we closely infrastructure,to upgrade the building’s retaining whilst its special features. as far as possible We programme,redevelopment marked the opening of by the new central atrium in June 2002. systems The new and temperatures ventilation and easier improved provide customersaccess for with disabilities.The unique character of the shop has been preserved with special features and the such as the pendant lighting at ground floor level integration of the original handrail bronze into the design balustrades.of the new escalator well estimate, 60% through reduced lighting wattage. by

usiness where each shop may replace 7,500 lamps each usiness where each shop may ear. Like-for-like energyear. consumption will also be cut, Like-for-like uildings’ service infrastructure electrical for distribution, eter Jones – retaining our heritage during redevelopment our heritage during redevelopment – retaining eter Jones re protection, had reached the heating and ventilation our-year construction programme.Whenour-year constructed Making the most of technologyMaking the most of management systems. building All our new shops have and energyThese monitor the environment usage to ensure that the environmental throughout the building conditions are maintained at a comfortable and level energyusage is optimised and monitored. In 18 shops, embarked on a lighting have we refurbishment programme, replacing involves which ceramic more efficient lighting with metal halogen display halide alternatives.The last four result will be lamps that times longer – a particularly a for benefit significant b y we performance Measuring and improving Despite our best efforts in 2001, patterns of energy consumption in branches disappointing. were the Over past year, electricity and gas consumption, example, for both gone up.have Electricity consumption has risen by 9% to1442% to 159 Gwh and gas consumption by Gwh. reflect the opening of our new branchThese figures in Solihull, changes in trading hours, and extensive refurbishment programmes which, in some cases, have meant night work. P In 1996, embarked we on one of our most ambitious and refurbishment programmesredevelopment at Peter Jones, more than £100 million during a in total investing f in 1936, Jones was the first with London building Peter a permanent canopy, external glazed as a fully as well curtain wall, making it a landmark building. Unlike buildings,conventional Jones’ Peter exterior walls and glass panels are hung from the building, rather than supporting it. Grade was protected by For this reason the building 2* status as a Listed Building in 1984. After 65 years of use as a department store, many alteration the selling space, projects had modified and the b fi end of its useful life.Without redevelopment, it was 1.25 2001 1.29 The central Jones atrium at Peter 1.31 1999 2000 Selling branches Distribution Production Central offices

otal water consumption otal water consumption otal water consumption T million cubic metres T ■ ■ ■ ■

22 Responsible retailing Environmental performance 5291_Text 12/9/2002 7:59 am Page 22 Page am 7:59 12/9/2002 5291_Text 23 Responsible retailing Environmental performance 12% to over 3,000 tonnes although,12% to over during 2001, 2% to 17,216 tonnes against an increase in sales 2% to 17,216 tonnes against an increase in sales

of 6%. of that total was made No less than 74% home by up of essential product packaging taken our customers. cannot practicably Although we recycle packaging entering the waste stream from our customers’ homes, accept our responsibility we to share the costs of recycling. had an In 2001 we and recycle 4,200 tonnes of to recover obligation discharged we successfully packaging – an obligation scheme.as a member of a national waste compliance – collecting it,Cardboard baling it, it recycling Recycling our cardboard, to are unable where we reuse it, has been our practice since the 1980s. extended our cardboard recycling In 1997 we programme, installing baling technology at most shops and arranging a national recycling by collection recycling helped increase annual contractor.This initiative by to 2,700 tonnes, recycled fell of card we the total weight ‘returnable crate’due in part to our new system. In a single year we sell more than 138 million products. we In a single year product lines, 500,000 With over and more than 8,000 suppliers to consider, our packaging usage analysing do on a yearly basis) is a considerable(which we challenge in itself. Internal management systems the Producer Responsibility in response to developed helped us demonstrate our Regulations have compliance with them during Environment two Agency audits. the past year,Over total use of packaging has risen by have therefore commissioned a team of external commissioned therefore have a responsibility to minimise the amount we have

shop for the firstshop for time. The results indicated we aste is generated our operations. stages of at many

racking water usage in our shops in racking water usage or the lion’s share of the waste we produce.With share of the waste we or the lion’s Maximising our resources, minimising our waste W We consumed 486,000 cubic metres of water, an estimated reduction of 3% on the previous year. Without compromising the cleanliness and appearance of our shops, are committed to identifying unnecessary we can – an water use and eliminating it where we regard as crucial we business. objective within a growing We Sheffield, consultants to audit water use at John Lewis a snapshot of typical consumption in order to provide patterns. Early results suggest, encouragingly, there are opportunities to reduce water consumption at this pilot branch. Recommendations are currently being look to extend these will then implemented and we possible. to other shops wherever initiatives produce ourselves, as possible, to recycle as much and to influence the thinking and practice of Partners, suppliers and customers. In 2001, the majority of our general waste was disposed of to landfill. Cardboard segregated and recycled. and glass was where possible packaging duty to recycle A shared While our product wastage is minimal, the packaging materials that protect our products in transit account f other UK organisations share a duty,many we set out in the Producer Responsibility Regulations introduced in 1997, to recycle our packaging waste. T commercial cleaning, use water for Our shops mainly cooking and sanitation. During formally we 2001 monitored and compared our water consumption by J H Birwistle, one of three Partnership textile production units 2001 2,741 2001 17,216 tonnes 2,905 tonnes ansit 3,039 16,900 Tr

Production ■

tonnes ■ 2,536 aper 260 1999 2000 Primary General12,099 Carpet2,685 P Food 1,564 Glass 608 Cardboard 2,741 14,828 Selling Distribution

otal weight of packaging of packaging otal weight otal waste 2001 1997 1998 1999 2000 2,403 T handled ■ ■■ ■ ■ ■ ■ ■ T Cardboard recycling recycling Cardboard ■ ■ 5291_Text 12/9/2002 7:59 am Page 23 Page am 7:59 12/9/2002 5291_Text 6% in 2001 to 115,000 tonnes, efficiency relative

Playing our partPlaying reducing in greenhouse gases rose While absolute emissions of carbon dioxide by sales falling with emissions against has improved of carbon dioxide of 54 tonnes low to a three-year per £million sales. Emissions across the range of our operations stem from electricitychiefly and gas consumption, and from product distribution mileage. and business Following the Department by guidance provided of Environment, Affairs,Food and Rural monitor emissions and we are exploring new opportunities to cut our emissions of carbon dioxide. Introducing branch-based targets, is plan to do in 2002 once our analysis which we complete, to meeting our objectives. be key will supported using and helped avoid the initiative 180,000 cartons, the equivalent of 107 tonnes of cardboard. Exploring every opportunity to extend the use of returnable crates priority. is a also use and encourage a returnable crate system

easible, ourselves. environmental take In doing so we Cutting waste by using returnable crates using returnable Cutting waste by Because most of our products are branded goods, our used is influence on the amount and type of packaging limited. goods, For our own-label however,a make we transitpractical can between and distinction where we product packaging materials, designing the latter, where f considerations into account and aim, can, as far as we to minimise packaging use. We to transport without the goods as possible as many packaging. need for Since 1999, both the numbers of our suppliers using returnable crates of goods carried and the volume has risensteadily. In 2001, more than 71 suppliers In 2001 we maintained our record of demonstrable our record of maintained In 2001 we legal compliance, prosecutions on issues with no management of environmental Photograph in Buttermere, taken Cumbria, Jeffree, Peter by Secretary, John Lewis Partnership Photographic Society. 2001 115,739

tonnes 108,807 emissions energy emissions emissions transport 2 2 2 emissions 2 otal CO otal CO otal CO 1999 2000 transport (commercial) cars)(company T T T

104,492 CO ■ ■ ■

24 Responsible retailing Environmental performance 5291_Text 12/9/2002 7:59 am Page 24 Page am 7:59 12/9/2002 5291_Text 25 Responsible retailing Partnership and Partners and Partnersand Constitution of the John Lewis Partnership Lewis Constitution of the John of all its members, through their worthwhile and successful business.” in a satisfying employment

Includes “The Partnership’s purpose ultimate is the happiness – Power, and profit knowledge – and safety Health – Fairness, equality, diversity – Support and development

tnership r Pa 5291_Text 12/9/2002 7:59 am Page 25 Page am 7:59 12/9/2002 5291_Text 5291_Text 12/9/2002 7:59 am Page 26 26 Responsible retailing

Underpinning accountability and co-ownership is a fundamental commitment to Partner democracy Pa The John Lewis Partnership is the longest surviving the powers of office in a fit way. It plays a key role in r tnership and Partners and largest worker co-ownership organisation of its deciding how profit is spent in areas such as pensions kind in the UK. We have no ‘shareholders’ as such. and discount. It can also make recommendations to Instead, each of our 57,000 Partners, of whom management on any topic. more than 27,000 work in the department store division, is a co-owner, and has a say in how we Each department store, distribution centre or run our business. manufacturing operation is individually represented by a Branch Council. Regardless of seniority, any Partner participation in our decision-making process Partner can stand for election by colleagues to the is central to the democratic way we operate. Each Branch Council, a forum for discussing all aspects of Central Council Partner shares the responsibilities of ownership. branch operations and Partner welfare. Because they Power, knowledge, profit – on these pillars we base also discuss business performance, Branch Councils our culture of democracy and accountability. play an active role in shaping our business at local level.They also provide a route through which ideas, Power – putting democracy to work opinions and concerns can be channelled. Three bodies are responsible for governing the Partnership’s business and democracy: the Chairman, Central Board and Central Council. Of these, the Central Council acts at the Partnership’s ‘parliament’. It consists of 140 Partners, with more than 80% directly elected by their branch peers, and the remainder appointed by the Chairman. Central Council elects five members of the Central Board and can dismiss the Chairman for failing to exercise

Branch Councils – democracy in action Geoff Meenan, President of John Lewis Oxford Street Branch Council, and a Partner in the Correspondence department for the past five years, is in no doubt as to the role and significance of the decision-making forum. “Branch Council is a vital part of the Partnership and its significance extends beyond our own business. In debating recent changes to our trading hours, I just know the outcome would have been very, very different without the democracy.”

Partners vote in council election 27 Responsible retailing Partnership and Partners . The Gazette These annual reports,These annual Each week, Partners gather The department store Central usiness performance, in are published tnership bonus. DS Forum Councillors to discuss divisional meet together issues and question members of the DS management board on its stewardship of the business. Reports to Central Council written principal by directors on the Partnership’s b Discussion sessions informally in their departments to discuss aspects and decision-making,of business and exchange information on issues such as health and safety and product knowledge. r ension ears. In 2001, million was distributed £57.3 as ew retail organisations a non-contributory, providing inal-salary pension scheme. invested In 2001 we Profit – sharingProfit the rewards of Partnership Bonus of co-ownership benefits One of the most tangible among Partners. distributionis the annual of profit been set aside to resources have Once sufficient planned growth, meet contingencies and to finance are shared,remaining profits with all Partners receiving the same percentage of their pay. This percentage the last three has varied over 9% and 15% between y Pa Discount After a period of service, all Partners are entitled most of them to buy to a discount card enabling our goods at discounted prices. P The John Lewis Partnership remains one of very f f in our Partnership£62 million of our profits pension scheme. Partners assurance life equivalent have salary. to three times their annual ■ ■ ■ Staying informed informed Staying part their play Three other initiatives in helping of our business. in touch at all levels us keep ering The Gazette. ,cov Chronicle Local branches have their own Local branches have Published by professional journalists, professional by Published Chronicle usiness, decision-making and social news.Through usiness, social and democratic issues at local our company-wide weekly magazine focuses on magazine focuses weekly our company-wide b its letters pages, Partners to question are able senior management, if they wish. anonymously Senior managers are required to respond within to all lettersthree weeks in published regular staff publication, the b level, and including letters local by answered senior management. The Gazette The ay Benning, Chairman, Communication for Committee ■ ■ Knowledge – making – making Knowledge count communication largeIn any enterprise, lines of communication effective a vital contributionmake to staff morale and business success. (C4Cs) Communication Committees for branchElected by colleagues, C4C committee members Partners are non-management who meet regularly to discuss branch-related issues.The emphasis is on clearing with lines of communication senior personnel, and so branch managing directors to attend C4C meetings to answer be invited may queries on the spot. of C4C discussions are Minutes ‘non-attributable’, so Partners speak freely. There is a direct link with the Partnership’s Chairman through his representatives, who chair the meetings. Staff journals PartnersBesides keeping of business abreast developments, our staff journals an important play social and democratic role. If things aren’t going as they should,If things aren’t the C4C might be the firstthrough which the Chairman channel about it.” gets to hear F “ 5291_Text 12/9/2002 7:59 am Page 27 Page am 7:59 12/9/2002 5291_Text tnership their pension rights. in addition to benefits r inancial difficulties. These retired Partners also benefit Brownsea Castle,Brownsea Partnership a centre holiday Partners Supporting retired On retirement, Partners who reach a service milestone from the advantages of Partnership to benefit continue life. Of our 13,456 retired Partners, for 76% are eligible Pa All our branches have a retirement committee. a retirement All our branches have CentralAllocated £660,000 by Council during 2001, retired Partners these committees enable in to keep touch with each other. They also help to relieve f access to clubs and societies,from continued discount subsidies. and ticket used her long leave to take to take used her long leave tners every for week are entitled to one full year r onie Brown, Clerk to the Branch Council and or 18 different clubs or societies,or 18 different from pottery to or and took a period of long leave. Holiday centres,Holiday societies and subsidies Supported Central by Council, the Partnership runs centres holiday clubs and societies – and our own offering Partners UK breaks at four affordable locations. During 2001, in our £2.9 million was invested residential clubs. these, Beyond are available subsidies f skiing, to wine. music Whether our Partners enjoy pop, art, homes, or visiting stately they can also reclaim cost up to the value of £60 per year. 50% of the ticket Long leave Since 1979,‘long leave’ a period of paid has been every for a benefit Partner after 25 years’ service. Pa of service the age of 50 up to completed before 26 weeks.a maximum In 2001, 288 Partners qualified f a two-month tripa two-month to New Zealand, Australia and Singapore. that distance travelled never Having arrangedbefore,Tonie to meet up with old friends years. many whom she had not seen for Tonie For abroad: it was more than just a holiday a simply wonderful experience,“It was one that would had the Partnershipnot have been possible not given me the time to do it. What did I learn – to try if it is outside your experience,something even to it.” your anxiety and go for swallow T Secretary, Retirement 9 57.3 2001 2001 £ million 58.1 First appeared in the Daily Mail 1979 % pay 15 10 77.8 1999 2000 1999 2000 Profit distribution distribution Profit Bonus Bonus

28 Responsible retailing Partnership and Partners 5291_Text 12/9/2002 7:59 am Page 28 Page am 7:59 12/9/2002 5291_Text 29 Responsible retailing Partnership and Partners remain as committed as ever to improving as ever remain as committed es conduct regular staff health checks, advise

tnership-widereporting accident system tners during a team exercise management training enjoy rs r r vailable free or at a small charge. free or at a small vailable aim is to Our Pa We systems and practices in order to sustain this momentum. During 2002/3, our proposed Pa will harmonise branch procedures, provide more detailed information on the nature and type of injuries us to report and enable accident as accident frequency rates.severity as well working,Healthy living healthy At all our branches, occupational health locally-based nu on diet, living, and healthy exercise perform manual handling risk assessments and support Partners suffering short-term or long-term illness. and chiropody servicesPhysiotherapy are widely a of 3.9%. maintain our current sickness levels low tners is of course a priority.Whilst our health r isen year after year,isen year frequency has fallen accident or compensation.The of reportable number and safety policy is developed by corporate by policy is developed and safety safety advisors, and the responsibility of implementing demonstrating compliance with this policy rests with the senior management in our branches. Regrettably, accidents do happen. Regardless of its nature and severity, each accident is recorded locally. serious of a more In the event incident, which is likely to lead to lost time, our policy is to report the circumstances to our central Risk and Insurance department fuller investigation. for Accident reporting, accident frequency recorded 402 reportableIn 2001 we accidents with lost time in the department store division, 209 of these meeting RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) requirements and 140 leading to Partner claims f 12% since 1999. accidents has fallen by having of employees Despite the total number r from 2.25 accidents per 100 Full-Time Equivalent in 1999 to 1.8 in 2001. (FTE) employees Health and safety – shared the duty of all with the termsIn keeping of our written health policy,and safety all Partners a duty to ensure have in which they workthe way or use equipment is received, trainingin accordance with any they have and causes no risk or to their health and safety that of others. accidents,Preventing risks reducing customers, accidents to Preventing visitors and Pa 140 402 1.80 2001 2001 144 410 per 100 FTE tner accidents 455 2.25 1.96 153 1999 2000 1999 2000 r Number of lost time accidents Number of compensation claims

Accident rate Pa ■ ■ 5291_Text 12/9/2002 7:59 am Page 29 Page am 7:59 12/9/2002 5291_Text 5291_Text 12/9/2002 7:59 am Page 30 30 Responsible retailing Pa Ethnicity/ethnic group towards the same goal.We are, however, conscious

r Building working relationships around tnership and Partners John Lewis Solihull(JLS),West Midlands (WM) mutual respect that Partners from ethnic backgrounds are under- No. of Partners JLS% WM% represented at management level. White 558 83.2 85.4 Fairness, equality, diversity Black Caribbean 4 0.6 2.8 Rewarding individual performance and personal ■ Opportunity and variety Our commitment Black Other (eg British) 710.8 Indian 56 8.4 5.6 contribution is just one way in which we aim to to offering Partners a satisfying career and a Pakistani 27 4 3.5 build a fulfiling environment for every Partner. stimulating work environment is demonstrated, Bangladeshi 3 0.4 0.7 we believe, by our high retention rates for staff. In Chinese 4 0.6 0.2 ■ Pay Our pay policy is to match the local market what is typically a ‘high turnover’ sector, yearly staff Other 12 1.8 1.0 rate and to offer as much above it as is justified turnover is currently 22%, and 1,300 Partners, or All 671 100 100 Figures show the ethnic origin of Partners who by performance. Each Partner’s pay is reviewed 5% of our total, have 25 years’ service or more. started on, or before, Saturday 4 August 2001. annually, and our pay rates and policies are Even so, we remain committed to recruiting young examined by the Pay and Benefits Committee people.We regularly visit schools, not only to share Length of service % on behalf of Central Council. our experience of the retail sector, but also to offer ■ Equality Female staff represent 61% of our helpful tips on attending interviews and filling in Partners, 54% of our managers. At senior levels application forms. Each year we recruit a small they represent 27% of shop managing directors, number of graduates from all degree backgrounds. 84% of directors of buying and 40% of DS management board directors. ■ Ethnicity We aim to recruit people who reflect the communities we serve. Whilst we have further work to do in this area, special consideration was given to this issue during the opening of our newest branch in Solihull in the West Midlands. ■ Under 1year 27 Our goal was to recruit Partners with an ethnic ■ 1-4 years 36 profile broadly mirroring that of the region. ■ 5-9 years 13 ■ More than 10 years 24 In existing branches we are making progress

Getting real about diversity in Solihull ‘Route to Work’, an employment scheme supported Many of the 900-plus Partners at our newest branch by Job Centre Plus, Solihull College, Advantage West in Solihull were recruited by Jayne Sellers, Assistant Midlands, and the European Social Fund. Staff Manager, who went into the local community to track down people from a wide range of The scheme provides training in essential skills to backgrounds. Says Jayne: “I felt it was important to encourage people to enter employment or return target regeneration areas, or areas with a high rate of to work. Jayne will be seconded for 12 months. “In my unemployment, in order to help people with something new role,” she says, “I can apply many of the skills used to offer get back into the workplace. I also held coffee as an assistant staff manager, although there’s a real mornings to reassure lone parents nervous about difference between managing personnel issues and returning to work after a long gap.” personal issues. I’m learning a great deal about As part of her recruitment programme, Jayne worked regeneration zones, community training courses, and closely with a local learning centre and job shop,‘The the skills needs of people who want to return to work. Hub’. After completing the initial staff recruitment It’s very rewarding to see people benefit from the and training for John Lewis Solihull, Jayne was invited training and learning skills we make available.” to continue her work in the community by setting up 31 Responsible retailing Partnership and Partners “The Partnership is a multifaceted or home life. In the case of personal problems,

ner can consult a registrar aspect of about any tnership, rally would decent family any believed rk committees for claims totalled £624,000. committees for rt r

umbers of Partners they help. 2001 expenditure In Registrars – our first line of supportRegistrars – our first Unique to the John Lewis Partnership is our network registrars,of locally-based a source of independent, advice and supportconfidential to all. available Any Pa wo more than a sympathetic the registrar much provides ear, pointing Partners a further towards source of informed advice. of a dispute or In the event misunderstanding a Partner between and manager, the registrar acts as mediator. Part of, but independent from, the senior branch management team, registrars work, we role in the way a key play helping managers better while to manage of Partners. the best interests safeguarding Claims – a friend in need Committees for John Spedan Lewis, of the John Lewis founder Pa round to help if a family member fell on hard times. member fell round to help if a family Through our democratically-elected branch Claims,Committees for or loaned funds are given to Partners facing unexpected hardship. Loans are interest free. Because their work is necessarily confidential, cannot disclose the we n by Noel is currently managing director, John Lewis Bluewater, and states, business, more than enough scope to develop providing career in retailing across and enjoyable a rewarding a number of disciplines.The and training Partnership’s of its people is second to none;development since joining, I have been fortunate to put the skills to have been able I have learnt into practice. about shopkeeping More than this, however, privileged being able that I feel is the fact to work with truly people at every exceptional in level our business,“ and we have a lot of fun too! is just one example of a Partner who has should always treat each other,should always with and anyone tners’ employee Counsellor share responsibility for enjoy workingenjoy as I am helping on this committee

r elfare.While the role of the former is to uphold the ersonal development ersonal development

ocational courses, further share of many and the lion’s others need. in real good knowing me feel It makes someone out to get in a small way to help I am able situation.” of a difficult Jane Diaper, Claims, for Committee Knight & Lee Noel Saunders, Managing Director, Lewis John Bluewater, experienced a wide variety of career roles at John Lewis. He began his career with John Lewis department stores in 1979 as a cashier in the dining Jones.room at Peter His drive and talent soon meant that he was managing departments as diverse as stationery, linens and electrical. In 1995 he was charged with running branch his own as Managing Director of George Henry John Lewis Lee (now Liverpool). Dignity, courtesy respect and mutual Our expectations of Partner are clearly welfare set document which states Work out in our Dignity at we w integrity our constitution and principles, of the latter in cases of dispute.acts as ombudsman P At every branch, a dedicated staff training department co-ordinates the personal development and professional of all our Partners. to possible wherever prefer We promote from within. Partners help to help To almost everythemselves branch has a learning centre, equipped with computers, internet access, books and other learning tools, our Partners allowing to develop new skills, whether work-related or not. Further subsidising half the cost of non- by assistance is given v education courses, or not. vocational whom our work brings us into contact, with due courtesy. do not tolerate harassment or bullying. We principles policies and Our welfare are supported senior managers. by at the highest level Currently elected to our board, the Chief Registrar and the Pa “I £ 2001 ensioners 661,000 Amenities 1,899,000 Charitable giving P PartnersGifts to active 941,000 624,000 Expenses 277,000 awards 25 year 56,000

■ ■ ■ ■ ■ ■ ■ Central Council spend Central Council spend 5291_Text 12/9/2002 7:59 am Page 31 Page am 7:59 12/9/2002 5291_Text 5291_Text 12/9/2002 7:59 am Page 32 32 Responsible retailing

Moving forward Moving forward Completing our first report has given us a clearer We expect to implement a new accident reporting picture of our social and environmental and analysis system in early 2003. This will enable performance. Whilst we believe we have made us to analyse accident type as well as frequency. good progress in a number of areas such as reducing driver risk, cleaning exhaust emissions, and Our analysis of waste management practices will improving energy efficiency, we acknowledge there soon be complete, enabling us to implement is still room for improvement. We are committed branch-based improvement targets. We are also to the following initiatives: developing a new customer complaints reporting system which will make it easier for us to identify Bluewater Partners comment on our Social and Management structure and tackle the causes of complaints. Environment Report, during its development At a Partnership level, we are in the process of establishing a Corporate Social Responsibility Performance measurement Committee, chaired by the Deputy Chairman Where we have sufficiently robust data we have with senior directors from both divisions. Reporting set performance targets. In other areas, such as to the Partnership’s central board, its aim is to set water consumption, we have only recently begun corporate policy and monitor and report ongoing measuring our performance.Where we do not performance. have historical data or are unable to compare our performance with others, we need first to At divisional and branch level, we need to understand how efficient (or inefficient) we consider how best social and environmental are. As more information becomes available we issues can be incorporated into the responsibilities will set increasingly challenging performance targets. of management at all levels; as well as how to formalise communication on these issues between Sustainable progress branches and central functions. Finally there are those instances where policies and programmes are in place and the next step is to Policies and procedures maintain momentum and, where relevant, roll out Where we do not have established policies to new areas. A good example here is our work our approach needs to be more clearly defined. in monitoring our suppliers’ compliance with our The chemicals used within the products we responsible sourcing principles. Having completed sell is one area we are currently working on. more than 200 factory audits in 2001/2, we recognise that our efforts will need to be extended Management systems to other sensitive regions. In some cases, our policy is clear but our efforts are not well enough co-ordinated. Examples here Communication and feedback include accident analysis, managing waste, recycling A key component of all of this will be feedback and complaint reporting. We are developing formal from those who are affected by our operations. management systems in these areas which will In this context we have made a commitment to enable us to measure and improve our performance. undertake our first staff or ‘Partner’ satisfaction survey. We do of course welcome your feedback on our performance to date. 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 retailing Moving forward 32 Performance at a glance 33

Our 2001 performance at a glance Contents Performance at a glance Locations change 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 Miles travelled distributing products 15,716,000 7% Sheffield 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 Reportable accidents 402 7% complete the feedback card Brent Cross at the rear Kingston Accident frequency (per 100 full-time equivalent employees) 1.8 8% Sickness rate 3.9% n/a 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.