Responsibility Update 2020 Overview People Society and supply chains Environment Assurance statement 2 WELCOME to our Responsibility Update 2020 Our purpose has helped us get through a year like no other. At Associated British Foods, our purpose is to provide safe, nutritious, affordable food and clothing that offer great value for money. Contents 2020 has been an unprecedented year, and the personal cost associated with the COVID-19 outbreak 9 has been terrible. Our employees, customers, suppliers Overview2 Investing in our people Respecting41 the environment and communities were all put under enormous 3 A message from our Chairman 10 Health and safety 42 Climate change mitigation pressure by the pandemic and although some and Chief Executive 16 Diversity and inclusion and adaptation uncertainty remains, our group has proved to be strong 4 Making a positive contribution 19 Employee engagement 47 Natural resources and the and resilient. 5 Our breadth is one of our and development circular economy We’re incredibly proud of the flexibility, commitment greatest strengths 53 Biodiversity and healthy ecosystems and determination of our people, from our food 6 Staying true to what’s important businesses significantly increasing production to meet 7 Our approach: doing the right thing 57 Animal health and welfare unprecedented demand to our Retail division, where 8 Supporting global goals Supporting23 society and all Primark stores were forced to close. However, strengthening our supply chains together, we went above and beyond the call of duty 24 Human rights and labour rights Assurance58 statement to provide for our customers and mitigate the impacts 33 Healthy and safe products on our supply chains. 37 Local economies and communities In this report, you can find out how our culture has carried us through this challenging time and our activities have helped to support our people, contribute Additional online information to our communities and make the world a better place. Please visit our website at www.abf.co.uk/responsibility for: Our previous responsibility reports Our Modern Slavery and Human Our 2020 ESG Appendix and updates Trafficking Statement 2020 Responsibility Update 2020 www.abf.co.uk Overview People Society and supply chains Environment Assurance statement 3 Our culture carried us through... From Michael McLintock From George Weston To say that this has been an extraordinary year Our operating model of devolved Our financial performance this year more than would be something of an understatement. decision-making to each business and ever demonstrates the resilience of the group. The rapid spread of COVID-19 across the market enabled us to respond very quickly This comes from the strength of our brands, globe has affected everyone in ways that and most appropriately to local challenges. the diversity of our products and markets, our we could not have imagined a year ago. The responses are a testament to the geographic spread, conservative financing and Our four groupwide values – acting with dedication, skills and ingenuity of our people. an organisation design that permits fast and integrity, respecting everyone’s dignity, Most of our employees have had to adapt flexible decision-taking. progressing through collaboration and to new ways of working and on top of All of our people demonstrated care, good pursuing with rigour – have proved to be that many found the time to support judgement and immense hard work. At the critical in determining our responses to important community work. I will never be time of our half year we had lost two of our the challenges posed by COVID-19. The able to thank all of them enough for their employees to COVID-19. Now we have lost strong culture of the group, which has been extraordinary efforts during this time. nine. We mourn them all. established and then embedded in each of With fewer people working on site in our our businesses over many years, provided factories, stores and offices – due to isolation, the firm foundation for the ways in which shielding or social distancing measures – our decisions were implemented. employees worked together to find solutions, The strength of our culture shone through meet increased customer demand and deliver this year and I am proud to be able to Michael McLintock for our stakeholders in the year. represent such a group. Chairman I am proud of how our people have responded to the many challenges presented by COVID-19 this year, and as I said in April, it is the finest thing I have seen in a career in business. George Weston Chief Executive Responsibility Update 2020 www.abf.co.uk Overview People Society and supply chains Environment Assurance statement 4 Making a positive contribution Our businesses aim to make a lasting contribution to society. During this most difficult time, we have endeavoured more than ever to make a positive impact where we can. Our values help us to articulate the long-term benefits we can deliver for our people, suppliers, neighbours, customers and the environment. How we make a difference Investing in our people Supporting society and strengthening Respecting the environment We prioritise the safety and wellbeing of our our supply chains We work hard to reduce greenhouse gas (GHG) employees, contractors and others we work with, We respect the rights of people within and beyond emissions, use natural resources efficiently, and and aim to cultivate diverse and inclusive workplaces our operations, develop products that help to promote ecosystems, biodiversity, and animal where everyone is respected, supported and support healthy lifestyles, and aim to strengthen the health and welfare. empowered to fulfil their potential. communities where our suppliers live and work. 133,425 £46m 6,952 475,000 55% 84% people employed invested in safety hours of social and people’s lives improved of the energy we used of the waste we generated risk management environmental by the Twinings’ Sourced came from renewables was sent for recycling, training delivered to with Care programme recovery or other beneficial use Primark suppliers 53% 1.3 million 2.6 million 3,234 25% £25m of our total workforce hours of training meals provided through audits of supplier factories of total water abstracted invested in environmental and 37% of our senior benefitting our employees surplus food donations by Primark in 2019 was reused before being risk management management are women to food banks returned to the environment For more information on our 2020 performance, definitions and calculation methodologies, see our ESG Appendix. Responsibility Update 2020 www.abf.co.uk Overview People Society and supply chains Environment Assurance statement 5 Our breadth is one of our greatest strengths Since our foundation as a bakery business in 1935, we have evolved into a diversified international food, ingredients and retail group. We have more than 133,000 employees and operations in 53 countries across Europe, southern Africa, the Americas, Asia and Australia. Our decentralised structure has businesses operating in five strategic business segments. This breadth has been a key factor in our ability to weather the challenges associated with the COVID-19 outbreak. GROCERY SUGAR AGRICULTURE INGREDIENTS RETAIL Household food brands enjoyed all A world-leading sugar business Products and services for the Yeast, bakery and specialty ingredients Quality fashion at value-for- over the world focused on excellence agri-food industry supplied globally money prices Twinings and Ovaltine Europe AB Agri Yeast and bakery ingredients Primark Twinings and Ovaltine are our leading global Our UK beet sugar factories typically AB Agri manufactures animal feed, AB Mauri operates globally in yeast and Primark is a major retail group operating hot beverage brands enjoyed in more than produce well over 1 million tonnes of sugar nutrition- and technology-based products bakery ingredients production, supplying stores in the UK, Republic of Ireland, 100 countries. annually. Azucarera in Spain produces beet and services for the agri-food industry. It industrial and artisanal bakers and the Spain, Portugal, Germany, the Netherlands, Europe and international sugar from its factories in the north and operates all along the food, drink and biofuel foodservice and wholesale channels. It is Belgium, Austria, France, Italy, Slovenia, Our portfolio of recognised grocery brands south, and also refines sugar from cane industry supply chains. a technology leader in bread improvers, Poland and the US. includes Mazzetti balsamic vinegars, Jordans raws at its refinery in the south. It produces and supplies compound dough conditioners and bakery mixes. It prides itself on offering something for and Dorset cereals, Ryvita crispbread, South Africa animal feed, feed enzymes, specialised Specialty ingredients everyone and has a wide selection of Kingsmill bread, Patak’s and Blue Dragon Illovo is Africa’s largest sugar producer with feed ingredients and a range of value- ABF Ingredients produces value-added products available for women, men, kids, cooking sauces and pastes, as well as Silver agricultural and production facilities in six added services to farmers, feed and food products and services for food and non-food the home, health and beauty, and gifting. Spoon and Billington’s sugars. countries. Typical annual sugar production manufacturers, processors and retailers. applications. It manufactures and markets Primark’s store environment plays an The Americas is 1.7 million tonnes. It also buys grain from farmers and supplies enzymes, specialty lipids, yeast extracts, important part in inspiring its customers. In the US, Mazola is the leader in corn China crop inputs through its joint venture arable extruded ingredients, pharmaceutical Developing the in-store experience has oil and we sell a range of baking brands We operate two beet sugar factories operation, Frontier Agriculture. excipients and antacids worldwide, with been a key enabler in differentiating through retail and foodservice channels. in the north east of China, with annual manufacturing facilities in Europe, America Primark from its competitors.