CORPORATE Responsibility Report 2015 B | WOOLWORTHS LIMITED | Corporate Responsibility Report 2015
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CORPORATE RESPONSIBILITY Report 2015 B | WOOLWORTHS LIMITED | CORPORATE RESPONSIBILITY REPORT 2015 CONTENTS Corporate Responsibility Highlights for 2015 1 Sustainability Strategy 2007-2015 – The Results 2 CEO’s Statement 5 People 6 Planet 9 Prosperity 12 Australian Food and Petrol 14 Woolworths Liquor Group 20 New Zealand Supermarkets 22 General Merchandise 24 Hotels 25 Home Improvement 26 Sustainability Metrics 27 Workplace Metrics 29 Corporate Responsibility Governance 34 United Nations Global Compact 36 Global Reporting Initiative 37 Independent Assurance Statement 40 Store Analysis 41 Glossary 42 Company Directory 45 Scope OF Report Unless otherwise stated, this report covers all of our operations in Australia and New Zealand for the 2015 financial year (1 July 2014 to 30 June 2015). Only workplace metrics (excluding Safety) are included for global sourcing offices in China, Bangladesh and Thailand. With only 25% ownership and no operational control of Gage Road Brewery, there is no information reported for this business. 1 | WOOLWORTHS LIMITED | CORPORATE RESPONSIBILITY REPORT 2015 Corporate Responsibility Highlights for 2015 For a fifth consecutive year, Woolworths has been recognised as a Sustainability Leader in the Dow Jones Sustainability Indices, Food and Staples Retailing sector. We are the only Australian retailer on the global sector leaders list. PeopLE PLANet ProSperITY 197,426 42% $114 b employees reduction in carbon and 771,000 jobs in emissions from facilities, indirect contribution to with emissions now the Australian economy below those of our 2007 baseline $ 74,848 91% 7.4 b young employees1 of Sustainability paid in wages Strategy 2007-2015 targets and commitments completed 39% $172 m $1.8 b of management operational cost savings paid in dividends positions held by women from $137 million to shareholders investment in energy efficiency 1,953 60,000 $36 m indigenous employees2 tonnes of food waste contributed to diverted from landfill community partners $28.2m 246,659 $2.4 b invested in staff training tonnes of material in taxes paid 1 Young employees are aged recycled or diverted under 25 years from landfill 2 Employees self-declare if they are indigenous in our engagement survey; this result excludes Woolworths Liquor Group, ALH Group and BIG W 2 | WOOLWORTHS LIMITED | CORPORATE RESPONSIBILITY REPORT 2015 Sustainability Strategy 2007-2015 – The Results 91% of targets and commitments achieved Woolworths Limited launched an industry leading Sustainability Despite the overall success of the strategy, our ambitious Strategy eight years ago, with ambitious targets and commitments commitment to achieve zero food waste to landfill was not met. to transform itself into a more sustainable business. The strategy However, our focus to divert food to charities, farmers programs, focused on improving the efficiency of our operations, commercial composting and waste to energy prevented 60,000 reducing waste and meeting customers’ expectations about tonnes of food waste from being dumped in landfill in 2015. responsible sourcing. We have renewed this commitment through to 2020 and have The strategy set Woolworths as a leader amongst peers and the launched a new partnership with OzHarvest, to further develop retail industry. opportunities to reduce waste. Woolworths successfully completed 31 or 91% of the 34 key As our strategy timeline nears completion, Woolworths targets and commitments in the strategy. Two of the three understands that despite our significant achievements we must remaining commitments were found to be unnecessary. maintain a focus on improvement. Our main achievements were: Adopting a model that encourages a prosperous business, community and supply chain, our new Corporate Responsibility • 42% reduction in carbon emissions from facilities based on Strategy will address the themes of People, Planet and Prosperity. projected growth levels This basic structure best fits a business like Woolworths. • 25%, or greater, reduction in carbon emissions per square metre in new supermarkets • 30% reduction in company car fleet emissions • 200 million litres of annual water saving by the target date of 2010 • Implementation of key policies for ethical sourcing, palm oil, seafood, timber, paper and animal welfare Target Status Comment Carbon emission reductions from facilities 40% reduction in carbon emissions by 2015 (based on projected ✓ Achieved 42% reduction in emissions through a 32.3% growth levels), bringing our emissions back to 2006 levels reduction through energy efficient technology and inclusion of the 11.11% Renewable Energy Target. 25% reduction in carbon emissions per square metre for ✓ Have maintained a minimum 25% reduction in emissions new sustainable store designs compared with business as usual per square metre since 2012. Emission reduction for designs supermarkets built in 2015 is 30.4%. All new Woolworths Supermarkets opening from September ✓ Sustainable engineering design was implemented in 2008. 2008 to conform to our sustainable design guidelines Work with the Green Building Council to develop a star-rating ✗ In 2010, further investigation showed minimal benefit in tool for supermarket interiors developing this tool, particularly with Woolworths’ progress with investment in energy efficiency. Develop an ecological footprint calculator for evaluation ✗ In 2010, it was decided that internally developed project of supermarket interior design and fit-out modelling and investment in energy efficiency made this target redundant. 3 | WOOLWORTHS LIMITED | CORPORATE RESPONSIBILITY REPORT 2015 Sustainability Strategy 2007-2015 – The Results Target Status Comment Carbon emission reductions from transport 25% reduction of carbon emissions per carton delivered ✓ Achieved a 25.6% reduction in emissions by 2012. by Woolworths owned trucks by 2012 Outsourced these operations in 2013. 30% reduction on 2006 levels of carbon emissions from ✓ Achieved a 30% reduction in emissions by 2012. Fleet was a company car fleet of 3,100 cars, by 2010 significantly larger than forecast. Establish accurate baseline data in 2008 for all modes ✓ Achieved in 2008, with accurate data available for of transport Woolworths-owned fleet and improved accuracy for third party logistics providers. Establish a forum with major transport suppliers to develop ✓ Active participation in industry forums, including the Road a low carbon strategy for our third party distribution network Transport Authority’s Green Truck Partnership. Conduct a comprehensive study on biodiesel availability in ✓ In 2008, Woolworths sponsored the CSIRO Future Fuels Australia, including quality, vehicle compatibility and cost impacts Forum on alternative fuel research. Trial the use of hybrid powered trucks for home deliveries ✓ A hybrid truck was trialled in 2009. The vehicle remains part of our fleet but the business case of fuel savings versus capital cost does not justify further investment at this time. Water efficiency Develop a more complete baseline of water usage ✓ Corporate Water Tree developed in 2010, mapping out water use in the business. Roll out the Water Wise project nationally for all of our ✓ Completed in 2008, with all Australian Supermarkets and Australian Supermarkets BIG W stores using water efficient fittings and practices. Reduce water use by at least 200 million litres by 2010 ✓ Target achieved in 2010. Results have declined but water saving was delivered in 2015. Ethical sourcing Develop and implement an ethical sourcing policy ✓ Implemented in 2008 and supported by a factory audit program. Identify sustainable sourcing gaps and develop ✓ Have introduced sustainable sourcing policies for palm oil, appropriate policies seafood, timber and paper products and animal welfare. Conduct staff training and capacity building for our buying ✓ Training has been provided to staff on ethical sourcing, teams to help them understand issues and types of compliance and sustainable product development. third party certifications Packaging Establish a supplier forum to work together on more ✓ Forums were held in 2008 and 2009 and included topics sustainable packaging like improved labelling. Establish more comprehensive baseline data for packaging ✓ Woolworths has collated packaging information on 34% of Own Brand products, including information on material of our Own Brand products, which used more than 32,300 consumption, recycled content, recyclability tonnes of packaging material. Review Own Brand procurement policy and supplier guidelines ✓ Sustainable Packaging Guidelines were developed and implemented in 2011. Conduct an audit of compliance with the Environmental Code ✓ Audit was conducted in 2008. of Practice for Packaging (ECOPP) and ISO 14021 for Own Brand products Trial the use of the Packaging Impacts Quick Evaluation Tool ✓ Trial was conducted in 2008. Woolworths now uses this tool (PIQET) for Own Brand products to compare the impacts of different packaging solutions. Report annually to the Australian Packaging Covenant (APC) ✓ Woolworths has been reporting annually on packaging and in the Woolworths Corporate Responsibility Report since 2008. Provide training to 50 suppliers by 2008 ✓ Facilitated training sessions and forums on PIQET, sustainable packaging guidelines and labelling. Use PIQET to evaluate 20 Own Brand products by 2010 ✓ Woolworths has conducted PIQET assessments on meat trays, wine bottles and our packaging team uses PIQET to compare packaging options. Continue to replace waxed cardboard and polystyrene boxes ✓ Achieved