Ahold, Carrefour, Cencosud, China Resources Enterprise, Colruyt

Home , Carrefour, Safeway (UK), SuperValu (Ireland)

2012 Sustainability Reporting of the World’s Largest Food Retail Companies

Pacific Sustainability Index Scores:

A benchmarking tool for online sustainability repor ng Ahold, Carrefour, Cencosud, China Resou rces Ent erpri se, Col r uyt, Delhaize Group, Empire, George Weston, Gru p o Pão d e Açúcar, Herbalife, J Sainsbury, Jeronimo Martins, Kesko, Kroger, Lawson, Metcash, Metro AG, Metro Inc, Safeway, Seven & I Holdings, Shoprite Holdings, Stater's Bros Inc., Supervalu, Sysco, Tesco, Wesfarmers, Whole Foods Market , W m Morrison Supermarkets, Woolworths, and X5 R e t a i l G rou p

The Roberts Environmental Center has been Contents the foremost analyst of corporate sustainability

reporting for over a decade. We analyze Topics Page Company Rankings 3 corporate online disclosure using our Pacific Director’s Commentary 4 Sustainability Index (PSI) and publish the results Lead Analyst’s Commentary 5 online. PSI Overview 8 PSI Scoring in a Nutshell 9 The goal of corporate report analysis Sector Performance 10 conducted by the Roberts Environmental Visual Cluster Analysis 11 Center is to acquaint students with Environmental Topics 12 environmental and social issues facing the Social and Human Rights Topics 13 world’s industries, and the ways in which Environmental Intent Scores Ranking 14 industry approaches and resolves these issues. Environmental Reporting Scores Ranking 15 Environmental Performance Scores 16 The data presented in this report were Ranking collected by students at the Roberts Social Intent Scores Ranking 17 Environmental Center: Social Reporting Scores Ranking 18 Social Performance Scores Ranking 19 Human Rights Reporting Element 20 Performance by Country 21 Lead Analyst Relationship Between PSI Scores and 22 Hilary Haskell Financial Variables Explicit numerical goals Reported 25 Sustainability Management Analyst Topics Showing Performance 28 Simone Fine Improvement over Previous Year Data Topics in which Performance was Better 34 than Sector Average Environmental Analyst Commentaries alphabetically listed by 36 Damini Marwaha company name Appendix: PSI Questionnaire 134 Social and Human Rights Analyst Erin Rebecca Larsen Questions should be addressed to: Special Project Manager Dr. J. Emil Morhardt, Director Lucas Van Houten ([email protected], 909-621-8190)

Media/Public Relation Elgeritte Adidjaja, Research Fellow ([email protected], 909-621-8698) Quinn Chasan Sierra Gibson Roberts Environmental Center Jacob Shimkus Claremont McKenna College 925 N. Mills Ave. Claremont, CA 91711-5916 USA

www.roberts.cmc.edu 2 Sustainability Reporting of the World's Largest Food Retail Companies Company Rankings

Woolworths 64.21 Grupo Pão de Açúcar 63.38 Delhaize Group Grade Company Name Country 58.76 Wesfarmers A+ Woolworths Australia 56.42 A+ Grupo Pão de Açúcar Brazil Tesco Plc A+ Delhaize Group Belgium 55.90 Carrefour A Wesfarmers Australia 55.67 A Tesco Plc United Kingdom Kesko ACarrefour France 54.59 A Kesko Finland Seven & I Holdings 52.28 A- Seven & I Holdings Japan Ahold A- Ahold Netherlands 52.22 A- Wm Morrison Supermarkets United Kingdom Wm Morrison Supermarkets 50.57 A- Metro AG Germany Metro AG B+ Safeway United States 50.45 B+ Kroger United States Safeway 47.72 B Jeronimo Martins Portugal Kroger B J Sainsbury United Kingdom 46.85 B Metro Inc Canada Jeronimo Martins B Whole Foods Market United States 42.44 J Sainsbury B- Empire Canada 40.85 B- Supervalu United States Metro Inc C+ Sysco United States 38.73 Whole Foods Market C Colruyt Belgium 38.32 C Shoprite Holdings South Africa Empire C Metcash Australia 33.58 C- China Resources Enterprise Hong Kong-China Supervalu 33.57 D+ Herbalife Cayman Islands Sysco D Lawson Japan 30.63 D X5 Retail Group Russia Colruyt 27.27 D- George Weston Canada Shoprite Holdings D- Cencosud Chile 25.14 D- Stater Bros. holdings United States Metcash 23.63 China Resources Enterprise 19.87 Herbalife 15.94 Lawson 10.85 X5 Retail Group 8.27 George Weston 7.09 Cencosud 4.52 Stater Bros. holdings 2.95

0 20 40 60 80 100

www.roberts.cmc.edu 3 Sustainability Reporting of the World's Largest Food Retail Companies

Director’s Commentary

T his report, and two other new ones, one for the food processing sector and another for the beverages sector, not only have a new look and additional substance, they have been produced with a new technology developed in the Roberts Center over the last year. This real-time report production software results in the automatic partial production of reports as the data are entered by the student analysts, and has been quite effective in catching errors as they occur. It has also encouraged more topic-specific written analysis to go along with the numbers we have historically reported. Even more important, both the analysts and student managers can see what they have accomplished and how far they have to go in real time, and can often see the finished product before they leave for the summer. Previously we used the summer to assemble reports and clean up any deficiencies, so this new system works out better for everybody associated with the analysis.

On another note, as we also see in the new beverages sector report, in this food retail sector report there is a striking (log) linear relationship between the overall PSI score and revenues. The largest companies are almost all doing a stellar job of reporting. This is good news; over the decade that we have been doing this, sustainability awareness and practices have become firmly entrenched at the top and are beginning to move down the supply chain. Clearly, though, there is still plenty of room for improvement at the bottom.

J. Emil Morhardt, Ph.D. Roberts Professor of Environmental Biology Director, Roberts Environmental Center

www.roberts.cmc.edu 4 Sustainability Reporting of the World's Largest Food Retail Companies

“requires the United States Department of Agriculture Lead Analyst’s (USDA) to develop national standards for organically produced agricultural products to assure consumers Commentary that agricultural products marketed as organic meet Hilary Haskell ‘14 consistent, uniform standards.” The Act also requires USDA to establish an organic certification program based on recommendations of a 15-member National Organic Standards Board.”2 In order to address issues regarding organics certification, the USDA has The top three determined that organic products must be produced without methods such as genetic engineering, ionizing companies of the Food radiation, or sewage sludge; only use “allowed” substances from the National List of Allowed and Retail Industry earned Prohibited Substances; and be overseen by a USDA overall Pacific Sustainability National Organic Program-authorized certifying agent Index (PSI) score of “A +.” that follows all USDA organic regulations.ibid. Organic These companies included Grupo Pão de certification and labeling are not mutually exclusive. Açúcar, Woolsworths, and Delhaize Group. The three Without USDA certification, there must not be any companies that earned the lowest PSI score of “D-,” organic claims present on the main labeling display of a included George Weston, Cencosud, and Stater Bros. product. Only the “certified organic ingredients...and percentage of organic ingredients” may be displayed on Holdings. Green Food Purchasing, Locally Grown the product, without USDA organic certification. Organic Food, Sustainable Seafood, and Animal There are additional parameters by which “organic” Welfare were the most reported sector-specific can be defined for food products. 100% Organic, environmental topics. For the social aspect of the PSI Organic, “Made With” Organic, and “Specific Organic score, Customer Wellness and Nutrition was reported Ingredients” are the varying degrees in which a product far more frequently than any other scoring parameter, may be organically certified, ranging in degree from the most stringent to lax regulations by the USDA.3 given its pertinence to the sector. Further initiatives to Interestingly, according to the USDA’s economic unite reporting efforts across social and environmental research report, the main factor in determining organic topics could be an important area for improvement in food consumption is “education” ibid. The report the Food Retail industry. indicates that “Consumers of all ages, races, and ethnic Sustainable procurement from supply chains groups who have higher levels of education are more that demonstrate commitment to both social and likely to buy organic products than less-educated environmental responsibility is an essential aspect of consumers. Other factors, such as race, presence of the Food Retail Industry. One way in which companies children in the household, and income, do not have a can achieve more responsible supply chain consistent effect on the likelihood of buying organic procurement is through locally grown, organic food products”ibid. This finding emphasizes the importance of options that are becoming an increasingly popular accurate and consistent certification and labeling market for consumers. According to the Economic processes as propagated by the USDA, in ensuring that Research Service from the USDA, “Organic foods now consumers are well-aware of the purchasing decisions occupy prominent shelf space...most mainstream U.S. they make. The prominence of organic foods in food retailers... [which] have pushed retail sales of conventional grocery markets has also expanded organic foods up to $21.1 billion in 2008 from $3.6 considerably, growing from 7% to 46% over the course billion in 1997.”1 However, caveats exist in the of the years 1991–2006, and organic food was found to procurement and retail sale of these organic, locally be available in 82% of food retail stores in 2007. Prior grown options. Considerable confusion often arises in to the recent boom in conventional market retail of the organic certification and labeling process, an issue organic foods, Whole Food’s Market “365 Organic” that the USDA has worked to address in recent years. was one of the only organic private labels in the mid- The Organic Foods Production Act (OFPA) of 1990 1990s.ibid. Another way in which companies can demonstrate responsible purchasing practices is 1 United States. United States Deparment of Agriculture. Economic Research Service.Marketing U.S. 2 "Organic Farming." EPA. Environmental Protection Organic Foods Recent Trends From Farms to Consumers. Agency, n.d. Web. 18 Mar. 2013. By Dimitri Carolyn and Lydia Oberholtzer. United 3 "Labeling Organic Products." Agricultural Marketing States Department of Agriculture, Sept. 2009. Web. 16 Service. United States Department of Agriculture, Oct. Mar. 2013. 2012. Web. 17 Mar. 2013.

www.roberts.cmc.edu 5 Sustainability Reporting of the World's Largest Food Retail Companies

through sustainable seafood procurement, which is necessary to maintaining animal welfare. Furthermore, most commonly identified through the Marine the IFC discusses the importance of the Animal Stewardship Council’s “Ecolabel” program. This label Welfare Audit Program, which has been jointly indicates that the seafood product was procured from developed by producers, the National Council of a certified sustainable fishery. The MSC promulgates Chain, Restaurants, and the Food Marketing Institute. two standards in its certification, sustainable fishing and This voluntary audit analyzes a facility’s animal welfare seafood traceability.4 The sustainable fishing standard management practices relative to industry best promotes three overall criteria: sustainable fish stocks practices.7 The most recent standards developed by by maintaining an operating level sustainable for the The World Organization for Animal Health (OIE) were fishing population that does not overexploit the developed at the Third OIE Global Conference on resource; minimized environmental impacts on Animal Welfare in 2012, which focused on the structure, productivity, function, and diversity of the implementation of the Terrestrial Animal Health Code ecosystem the fishery depends; and effective fishery that provides guidelines for animal welfare practices.8 management that complies with all local, national, and An emerging trend in the Food Retail Industry, international laws.ibid. For seafood traceability, the MSC which also presents a labeling and certification issue, implemented the Chain of Custody certification, which are fair trade procurement practices for a variety of requires that businesses obtain external auditing in products. According to Fair Trade USA, fair trade is order to demonstrate seafood source traceability, based on a basic outline of principles that benefit 1.2 storage, and record-keeping systems. Like organic million farming families in 70 developing countries product labeling, sustainable seafood practices are throughout the world. The Fair Trade network dependent upon certification, labeling, and consumer certifies coffee, tea and herbs, cocoa, fresh fruit and education. Greenpeace USA ranked Safeway as the #1 vegetables, sugar, beans and grains, flowers, nuts, oils Supermarket Seafood Sustainability retailer for the and butters, honey and spices, wine and apparel, and second consecutive year in 2012. Safeway’s exemplary certified ingredients are now used in ready-to-drink practices include setting a goal that all seafood be beverages, body care products and liquor. Fair trade “responsibly sourced” by the end of 2015, by certification is based upon principles that include fair partnering with “FishWise” of Santa Cruz, California, prices and credit through democratically organized to work with seafood supply chains to establish farming groups with a minimum price provided to sustainable seafood practices. Furthermore, Safeway sellers; fair labor conditions with freedom of maintains a “Sustainable Seafood Taskforce,” support association; safe working conditions; fair wages; groups such as the “Conservation Alliance for Seafood prevention of child and slave labor; community Solutions and the World Wildlife Fund’s Aquaculture development such as schools and business for farmers; Dialogues,” and adheres to the Marine Life Protection environmental sustainability through removal of Act in California.5 pesticides and chemical additives or GMOs; direct Similar to the Marine Stewardship Council’s trade with unnecessary intermediaries between sustainable seafood procurement guidelines are the producers and retailers; and democratic and Global Animal Partnership’s “5 Step Animal Welfare transparent organization.9 However, similar to organic Standards” specific to a variety of livestock. Adherence certification, the fair trade certification process is not to these standards demonstrates compliance with third without implementation and monitoring issues. party audits over the course of a fifteen month An underreported environmental quantitative certification process. Currently, Whole Foods Market topic in the PSI score is Hazardous Materials Released sells products that meet the “5 Step Animal Welfare to Environment. This reporting parameter is unique to Standards.”6 In 2006, the International Finance the Food Retail Sector in that refrigeration systems Corporation took note of the growing importance of within food retail establishments emit hazardous air animal welfare in food procurement and retail. In its pollutants. The U.S. EPA initiated the “Green Chill” “Good Practice Note: Animal Welfare in Livestock program with food retailers “to reduce refrigerant Operations” the IFC propagates the UK’s Farm Animal emissions and decrease their impact on the ozone Welfare Council’s “Five Freedoms of Animal Welfare,” layer and climate change.” The program works in which outline freedom from hunger and thirst; conjunction with food retailers to “lower refrigerant discomfort; pain, injury or disease; fear and distress; and the expression of normal behavior as guidelines 7 Ryan, Oliver. Animal Welfare in Livestock Operations. Rep. no. 6. International Finance Corporation, World 4 "MSC Standards." — MSC. Marine Stewardship Bank Group, Oct. 2006. Web. 19 Mar. 2013. Council, n.d. Web. 20 Mar. 2013. 8 "Introduction." Third OIE Global Conference on Animal 5 "Seafood Sustainability | Safeway CSR." Safeway CSR. Welfare. World Organization for Animal Health, Nov. Safeway, n.d. Web. 20 Mar. 2013. 2012. Web. 20 Mar. 2013. 6 "Our Process." Global Animal Partnership. N.p., n.d. 9 "Frequently Asked Questions." Fair Trade USA. Fair Web. 19 Mar. 2013. Trade USA, 2010. Web. 01 Apr. 2013.

www.roberts.cmc.edu 6 Sustainability Reporting of the World's Largest Food Retail Companies

charge sizes and eliminate leaks” and “adopt green The Food Retail Sector can improve socially refrigeration technologies through the “Food Retailer through greater cohesion between zero waste Corporate Emissions Reduction Program,” the “Store initiatives and food waste donations to food banks and Certification Program for Advanced Refrigeration,” and food rescue programs. Doing so would benefit both the “Advanced refrigeration Promotion Program.”10 the social and environmental reporting scores for The regulatory context for this program is the gradual companies analyzed. SuperValu, Whole Foods, phase out of the ozone depleting substances (ODS) as Albertsons, have already implemented notable zero part of the Montreal Protocol, an international treaty waste programs. SuperValu recently reported that it to protect the ozone in the stratosphere and the EPA’s will be adding forty new zero waste stores in the next regulations through the Clean Air Act. Most retail food few years. Part of the initiatives involved in zero waste stores use an ozone depleting refrigerant (HCFC-22) food retailers involves food donation programs, such in their stores, and this program will help to address as the nearly 60 million pounds of food donated the issue. Furthermore, leaks in refrigeration through SuperValu Fresh Rescue programs across the equipment are controlled under Section 608 of the nation in 2010.13 Clean Air Act. With the Green Chill program, the EPA The Food Retail Industry is in a unique position is assisting food retailers in finding alternatives to ODS to address many sustainability challenges, with far- through the Significant New Alternatives Program reaching consequences. Sustainable procurement (SNAP). Of the companies scored, across the United practices, whether they are organic food products, States, a number of Stater Bros. and Whole Foods local produce, fair trade, sustainable seafood, or markets have achieved bronze through platinum Green humanely raised livestock, are part of interwoven Chill Certification.11 efforts that can be mutually beneficial to corporations The most reported social topic of the PSI and society. Food waste and community contributions score is by far Customer Wellness and Nutrition, to food banks, organic unprocessed food and reported by 80% of the companies analyzed. For the consumer health and wellness, are examples of these Food Retail Industry, this is an important scoring interdependent efforts. Although the Sector as a whole parameter, due to the relative influence that the sector performed considerably well, there is room for is able to exert on consumers’ lifestyle choices. The improvement, especially in collaborative efforts across Consumer Health and Nutrition Survey of 2007, social and environmental topics. compiled by the Institute for the Future recognized this issue, and sought to “...to provide retailers with ------greater insight into how customers are thinking about and acting on health and its connection with food and sustainability.”12 One of the most important conclusions from this study is that improving the “nutritional IQ of consumers” is necessary in encouraging consumers to buy more healthy foods.”ibid. With the looming obesity crisis in the United States, this is essential for preventing health epidemics such as cardiovascular disease and diabetes. Furthermore, the study also found that “nutritional IQ is also lower among those with low incomes or lower formal education levels.” Therefore, food retailers are in the position to provide nutritional education to these socio economic statuses, and improve health and reduce obesity across the nation.

10 "About Green Chill." Greenchill. United States Environmental Protection Agency, 11 Feb. 2013. Web. 25 Mar. 2013. 11 "Green Chill Certification Awards." Green Chill. United States Environmental Protection Agency, 22 Mar. 2013. Web. 22 Mar. 2013. 12 Bishop, Bill, Rod Falcon, Crystal Keeler, Neela Nuristani, and Mani Pande. "The Future of Health & Welnnes in Food Retailing." Institute for the Future. 13 "SuperValu to Add 40 New Zero Waste Health Horizons Program, Apr. 2008. Web. 23 Mar. Stores." MNN - Mother Nature Network. Mother Nature 2013. Network, 29 July 2011. Web. 02 Apr. 2013.

www.roberts.cmc.edu 7 Sustainability Reporting of the World's Largest Food Retail Companies The Pacific Sustainability Index (PSI) Overview

The PSI Scoring System What do the Score Means?

The i y I dex (P I a y e ic We o mali co e o he po e q e i a e he q ali y of d y co e. c of e of he o all co e a al o co po Paci�ic Sustainaba lity epon gS ) uses s st mat e o malin r ze all the s r ials t maxima.t t Tntialhe le maximum g a i u sti onnaire to nalyzie ' C t . ampleu t the overall in heustr s(A r AS A-ores subs ts et a ev ero malis r re s la r rate sustain bilit edr yrtin he c (CSR),e as well asl th ncor i g cozed to their potented i he epo . G adtter of r des ndivepo dual compani a mms SRsa y iS di g ofcompanies C al yare t di+, id, al, B+,c etc.), howevher, epor n mighr zed diffeto the highestom rgesd t corpord ationseam lisof t deb gt ad urar nt Forbesd ist. eThis sg ader n po mpanyed o analyzi e o hen to er rt i r ese rCla rmot provCodesllege su--mo r y �ofn Clan emos SR anKe sesCollege inCe ve 'u eompaniese ein het r malirt a io t beof co rent of afr con uctei by a t un er alr Ceu te stu ents of th i rdi ids alst co nl ny o ni te R ob limirts Enedv roo nmhe contal a rem nt -lo esea chstl icallyr a font Mcmo nnah p . a ntalyr s w bsit , sinc tepo nor az t i n s res n ofThe wh ch Robertsed eam Environm p elecnted enterpi was founded--fore comn vpa u ofmpanhe amenl nec iso n i te pect et t h mpanies sealy esi t er nghe r ps elimir --typa y e ie ofurhe dont oeriodaded analyzedi . in the sector r rt, but lso ncludes other epo assign t here-s tp e thale to cs for curr nt d nies t s s t r rr s tiv of t e year of ane s s from t r in re r facedv w t wnl y. Compan s s i o i he highe 4% ge a A+ a d r rts, based on t topic's r v nce to the sector an a y i e o om 4% ge . We a i e y r levance to the current ssu s by the industr he maxnies w th scI cres n t d i st he ec t n o 12n en aln path b hett di tg an acF io alss cogneth se o bdodividing tThi meaimum PS s ore obta ainee den-t eps tor int Scores and Ranks compaqu edrts ot hen roo hun gnadefr . tThen ames r ec up qr e wn.app lie o she epans athate ca A+ego andie F ofr eun or r eresentedal a d ocial We o oppo y fo all comp r Th t t e tadeer r hes e.s We at hni u s a aly ed i p gi e a o I highet t s c r t t r s e nevir nm a dnt n s ffer the rtunit r anies/institutions q e i a e i a lo g a he ce of scoepres.e e us, w gr on t focurv ha e ssume that the n z n this re ort to v nswers t the PS i a e p licly a e o e. O a A+.st s ore obtained in th s ctor n any scores near it ualyst onnaire we rh ous ng,h hes en set sour ame r r s nt the state-of-the-art r t t s ctor and deserve qnformatione io providede pecri e ubof he evailablpo e nlind me geurhe n ane l sts would goo ti r ugi i tali we bsit analyzing thees Methodology udst nnaire, irr sle fot v compat ier s’ ens , an r t er suco ts.age After all co scmpar ng s �on p oz d,idewe issue a draft r portld i The eam d a i h la an omakedd it availabo l e or li e n esialr view.h Wehe page om o po a e e i e fo o n iur io imeli e niese t ill ir cv p feedbacka e he ande shou t of a taly i ownload ds revel nt i Englo a sP nguagesfo m web iput ut a iti na n w nly ni mat We rill s wit in t c eys fr of optheic main f c r ior ti w hebs q te ior the �irst i m nth ipubl cat ion t p n , w o liw e on poro oridedt it he n wp dn s s an D convert ithemely a ntd depDF dr at,l then a nheformatione p p intoho oure anae ifs s.e co wac use the conta t o survo t s or incluse n en t e aue sto nnaire s nformat ne s eci�iedill e na len r or hev P lin t lareioor t foraff una erway.pa ata exclusyv nl de in i ene ient y available t s e ur oses, eqwev ir,g a th e ient o t information is n t utsideided the y main corporaty. w hobsitgh r e mittedo to keep provided, w w wrie tp etter i t t e ub c Re t imen St tro jens i rancy o scorealy onl too inc ualy nnaate enformationco o of tha companyh fo r u eest n er v llw p ur reporthe prior to expprove edb hei the compan Altie ofu haw aimhey t e be publication.ho When r es ieons. s not r ceived in the t , epb ct ve allo in iur an sis, y ur pean measts e ri ne uraged t usu lly wit in ur w ks, w wi ublish t results a alr sse o ft compar subjectiveie a d vhew i dw t t id s epo in theg of wit ut company’s r v w ropiort,. w ng creativit to r t n th individual n yz s n s n t n ustry-w e re rtin t cs The Roberts Environmental Center

The o o al Ce e i a e al ea ch i i e Cla emo e a College (C C mi io i o p o ide de of all he Cla College i a comp ehe i e a d eali ic de a di g o oday’ i Ro berts Envir nmentd he ntayr s n nvironment ei resg a rd canst etut olat ed--r yontdMcK he cnn i e of adiM io). Itsal acadss n s t r lv astud c ntsi l t remont licis wetha d r agens policiev n r a d stp acunice rst n n f t s enveco rominmentald issuesocial go anal ti hew mos in which they are by ne n a dn pb rese v be .n Thet Ce one� n spa trial t n a e emicdo discipe inesm n geurr .cu oum--ande to identify, Pa pub of zKoh, nl e encourK a o sa nd Co.r td s that achieve) o h g n cd an s d i s nedt facst enviy ronmentall f bomn ignhe Clan erot ctiveColl manner. nt r is rt ly funded by n n wm nt fro Geor R R b rts (Founding rtner b rg r vis R berts n an CMC alumnus , t er rants an gifts, an s staff by ult and students r t r mont eges

www.roberts.cmc.edu 8 Sustainability Reporting of the World's Largest Food Retail Companies PSI Scoring in a Nutshell

Types of Information 3. Performance For each “Reporting” topic, two performance points are Our analysis of sustainability reporting are divided into available. environmental and social categories—the latter including human rights—and into three types of information: 1) For quantitative topics, one point is given for intent, 2) reporting, and 3) performance. improvement from the previous reporting period, and 1. Intent one point for better performance than the sector average (based on the data used for this sector report normalized by revenue). The “Intent” topics are each worth two points; one point for a discussion of intentions, vision, or plans, and one For qualitative topics, we give one point for any point for evidence of sp actions taken to implement indication of improvement from previous reporting them. eci�ic periods, and one point for perspective. 2. Reporting The “Reporting” topics are each wort re The “human rights” topics are scored differently, with ive either quantitative (for which we expect numerical data) “reporting” points; 2.5 points for formally adopting a or qualitative (for which we don’t). h �ive points and a policy or standard and 2.5 points for a description of � monitoring measures. In addition, there are two For quantitative topics, one point is available for a “performance” points; one point for evidence of actions to discussion, one point for putting the information into reinforce policy and one point for a quantitative perspective (i.e. awards, industry standards, competitor indication of compliance. performance, etc., or if the raw data are normalized by dividing by revenue, number of employees, number of widgets produced, etc.), one point for the presence of an explicit numerical goal, one point for numerical data from a single year, and one point for similar data from a previous year.

For qualitative topics, there are three criteria summed up to ive points: 1.67 points for discussion, 1.67 points for initiatives or actions, and 1.67 points for perspective. � Distribution of Scores by Topics

Social, Human Rights Environmental 17% , Intent 24%

Social, Qualitative 10%

Social, Environmental Quantitative , Quantitative 9% 19%

Environmental , Qualitative Social, Intent 1% 20%

www.roberts.cmc.edu 9 Sustainability Reporting of the World's Largest Food Retail Companies Sector Performance -5 5 15 25 35 45 55 65 75 85 li fe bu ry Sysco Ahold Kesko Empire Kroger rre four Lawson Co lruyt Safeway Me tcash Herba Metro Inc Metro Tesco Plc Supervalu Ca Cencosud Metro AG Metro J J Sains o up o Pão de Wesfarmers Woolworths Wm Morrison Gr Delhaize Group George Weston X5 Retail Group China Resources Jeronimo Jeronimo Martins Shoprite Holdings Seven & I Holdings Stater holdingsBros. Stater Whole Foods Market

Environmental S o c ia l O v e ra ll

Each vertical-line—sorted by the companies with the highest to lowest overall PSI scores—illustrates the range of the total environmental and social score of each company, divided right in the center with a tick-mark, which is also the PSI overall score. The longer the line, shows the larger discrepancies between the amount of the environmental or social topics reported. Discriptive Statistics of the Overall Environmental, Social, and PSI Scores

Environmental Score Social Score Overall Score Maximum Score 62.06 72.43 64.21

Minimum Score 0.00 5.90 2.95

Standard Deviation 19.22 20.12 18.78

Average Score (mean) 35.04 39.14 37.09

www.roberts.cmc.edu 10 Sustainability Reporting of the World's Largest Food Retail Companies Visual Cluster Analysis Visual cluster analysis multivariate data of the sort produced by the cult to summarize. Here we have created radar diagrams of the performance of each company analyzed in the sector by its environmental and social intent, reporting, and performance sorted by company ranking. Max PSIimum are scores dif�i will match the outer sides of the hexagon, which total up to 100 percent. A proportional spider-web shape suggests a balance of reporting in all areas.

EI = Environmental Intent, ER = Environmental Reporting, EP = Environmental Performance SI = Social Intent, SR = Social Reporting, SP = Social Performance

ER ER ER ER ER

EI EP EI EP EI EP EI EP EI EP - 5 E - 5 E - 5 E - 5 E - 5 E +2 6 +2 6 +2 6 +2 6 +2 6 1 1 1 1 1

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Woolworths Grupo Pão de Delhaize Group Wesfarmers Tesco Plc Açúcar ER ER ER ER ER

EI EP EI EP EI EP EI EP EI EP - 5 E - 5 E - 5 E - 5 E - 5 E +2 6 +2 6 +2 6 +2 6 +2 6 1 1 1 1 1 SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Carrefour Kesko Seven & I Ahold Wm Morrison Holdings Supermarkets ER ER ER ER ER

EI EP EI EP EI EP EI EP EI EP - 5 E - 5 E - 5 E - 5 E - 5 E +2 6 +2 6 +2 6 +2 6 +2 6 1 1 1 1 1 SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Metro AG Safeway Kroger Jeronimo Martins J Sainsbury

ER ER ER ER ER

EI EP EI EP EI EP EI EP EI EP - 5 E - 5 E - 5 E - 5 E - 5 E +2 6 +2 6 +2 6 +2 6 +2 6 1 1 1 1 1 SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Metro Inc Whole Foods Empire Supervalu Sysco Market ER ER ER ER ER

EI EP EI EP EI EP EI EP EI EP

- 5 E - 5 E - 5 E - 5 E - 5 E +2 6 +2 6 +2 6 +2 6 +2 6 1 1 1 1 1

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Colruyt Shoprite Holdings Metcash China Resources Herbalife Enterprise ER ER ER ER ER

EI EP EI EP EI EP EI EP EI EP - 5 E - 5 E - 5 E - 5 E - 5 E +2 6 +2 6 +2 6 +2 6 +2 6 1 1 1 1 1

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Lawson X5 Retail Group George Weston Cencosud Stater Bros. holdings

www.roberts.cmc.edu 11 Sustainability Reporting of the World's Largest Food Retail Companies Percentage of Companies Addressing Environmental Topics

Animal Welfare 0.63 Biodiversity 0.31 Climate change/global warming 0.39 (total )Energy used 0.44 Environmental accounting 0.11 Environmental education 0.32 Environmental expenses and investments 0.24 Environmental impediments and challenges 0.27 Environmental labelling 0.70 Environmental management structure 0.31 Environmental management system 0.21 Environmental policy statement 0.42 Environmental visionary statement 0.53 (environmental )Fines 0.03 Green food purchasing 0.83 Green purchasing 0.31 Greenhouse gases (or CO2 equivalents), total 0.40 Habitat/ecosystem conservation 0.29 Locally grown organic food 0.77 (environmental )Notices of violation 0.05 Renewable energy used 0.31 Report contact person 0.42 Stakeholder consultation 0.39 Sustainable Seafood 0.67 Waste (hazardous) produced 0.27 Waste (hazardous) released to the environment 0.02 Waste (office) recycled 0.10 Waste (solid) disposed of 0.40 Waste recycled: solid waste 0.42 Water used 0.37

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

www.roberts.cmc.edu 12 Sustainability Reporting of the World's Largest Food Retail Companies Percentage of Companies Addressing Social and Human Rights Topics

Anti-corruption practices 0.35 Bribery 0.27 Code of conduct or business ethics 0.44 Community development 0.47 Community education 0.44 Customer w ellness and nutrition 0.80 Degrading treatment or punishment of employees 0.23 Effective abolition of child labor 0.21 Elimination of all forms of forced and compulsory labor 0.18 Elimination of discrimination in respect to employment and occupation 0.37 Emergency preparedness program 0.13 Employee satisfaction surveys 0.21 Employee training for career development 0.40 Employee turnover rate 0.16 Employee volunteerism 0.32 Employment for individuals w ith disabilities 0.18 Fair compensation of employees 0.18 Free association and collective bargaining of employees 0.27 Health and safety citations 0.02 Health and safety fines 0.00 Health and safety, or social organizational structure 0.24 Lost w orkday case rate 0.18 Occupational health and safety protection 0.42 Political contributions 0.32 Reasonable w orking hours 0.15 Recordable incident/accident rate 0.27 Sexual harassment 0.35 Social community investment 0.32 Social impediments and challenges 0.26 Social policy statement 0.39 Social visionary statement 0.45 /Supplier screening based on social or environmental performance 0.39 supplier management Third-party validation 0.24 Women in management 0.27 Workforce profile: age 0.11 Workforce profile: ethnicities/race 0.13 Workforce profile: gender 0.23

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

www.roberts.cmc.edu 13 Sustainability Reporting of the World's Largest Food Retail Companies Environmental Intent Rankings

Metro AG

Grupo Pão de Açúcar 94.12

Kesko 91.18

Tesco Plc 91.18 Grade Company Name Country Wm Morrison 91.18 A+ Metro AG Germany A+ Grupo Pão de Açúcar Brazil 88.24 Whole Foods Market A Kesko Finland Delhaize Group 88.24 A Wm Morrison Supermarkets United Kingdom A Tesco Plc United Kingdom Kroger 88.24 ADelhaize Group Belgium J Sainsbury 88.24 A Woolworths Australia ACarrefour France Woolworths 88.24 A Kroger United States Carrefour 88.24 A J Sainsbury United Kingdom A Whole Foods Market United States Empire 76.47 B+ Ahold Netherlands B+ Safeway United States Metro Inc 76.47 B+ Metro Inc Canada Jeronimo Martins 76.47 B+ Jeronimo Martins Portugal B+ Empire Canada Ahold 76.47 B+ Wesfarmers Australia Safeway 76.47 B Seven & I Holdings Japan B Metcash Australia Wesfarmers 73.53 B- Colruyt Belgium Seven & I Holdings B- Supervalu United States 67.65 CSysco United States Metcash 62.50 C China Resources Enterprise Hong Kong-China Colruyt C- Shoprite Holdings South Africa 58.82 D Lawson Japan Supervalu D- Herbalife Cayman Islands 52.94 D- X5 Retail Group Russia Sysco 41.18 D- George Weston Canada China Resources 41.18 F Cencosud Chile F Stater Bros. holdings United States Shoprite Holdings 32.35 Lawson 14.71 X5 Retail Group 11.76 Herbalife 11.76 George Weston 8.82 Cencosud 2.94 Stater Bros. holdings 0.00

0 20 40 60 80 100

www.roberts.cmc.edu 14 Sustainability Reporting of the World's Largest Food Retail Companies Environmental Reporting Rankings

Grupo Pão de Açúcar 57.43 Wesfarmers 56.92 Woolworths 52.82 Delhaize Group Grade Company Name Country 52.82 A+ Grupo Pão de Açúcar Brazil Metro AG 52.30 A+ Wesfarmers Australia Carrefour A Delhaize Group Belgium 50.77 A Woolworths Australia Ahold 50.77 A Metro AG Germany Kesko ACarrefour France 40.00 A Ahold Netherlands Jeronimo Martins 38.97 B Kesko Finland Empire B Jeronimo Martins Portugal 36.92 B Empire Canada Kroger 35.90 B- Seven & I Holdings Japan Seven & I Holdings B- Kroger United States 35.90 B- Wm Morrison Supermarkets United Kingdom Wm Morrison B- Metro Inc Canada 35.38 B- J Sainsbury United Kingdom Metro Inc 33.84 B- Safeway United States J Sainsbury B- Tesco Plc United Kingdom 33.33 C+ Whole Foods Market United States Safeway 32.82 C+ Supervalu United States Tesco Plc C+ Colruyt Belgium 32.30 C- Herbalife Cayman Islands Whole Foods Market 30.77 D+ China Resources Enterprise Hong Kong-China Supervalu D+ Sysco United States 29.74 D+ Metcash Australia Colruyt D+ Shoprite Holdings South Africa 26.66 Herbalife D- Lawson Japan 18.46 F X5 Retail Group Russia China Resources Enterprise 15.90 F Cencosud Chile F Stater Bros. holdings United States Sysco 15.90 F George Weston Canada Metcash 14.87 Shoprite Holdings 12.82 Lawson 3.08 X5 Retail Group 1.54 Cencosud 1.54 Stater Bros. holdings 0.00 George Weston 0.00

0 20 40 60 80 100

www.roberts.cmc.edu 15 Sustainability Reporting of the World's Largest Food Retail Companies Environmental Performance Rankings

Grupo Pão de Açúcar 34.61 Grade Company Name Country Empire 30.77 A+ Grupo Pão de Açúcar Brazil Carrefour 26.92 A Empire Canada Woolworths 26.92 B+ Woolworths Australia B+ Carrefour France 26.92 Kroger B+ Ahold Netherlands Ahold 26.92 B+ Kroger United States B Delhaize Group Belgium Tesco Plc 23.08 B Tesco Plc United Kingdom Delhaize Group 23.08 B Whole Foods Market United States B- Kesko Finland Whole Foods Market 23.08 B- Wesfarmers Australia Jeronimo Martins 19.23 B- Jeronimo Martins Portugal C J Sainsbury United Kingdom Wesfarmers 19.23 C Safeway United States C Supervalu United States Kesko 19.23 C- Wm Morrison Supermarkets United Kingdom Safeway 15.38 D+ China Resources Enterprise Hong Kong-China D+ Seven & I Holdings Japan Supervalu 15.38 D+ Metro AG Germany J Sainsbury D+ Herbalife Cayman Islands 15.38 D- Sysco United States Wm Morrison 11.54 D- Metro Inc Canada Metro AG F Stater Bros. holdings United States 7.69 F Cencosud Chile China Resources Enterprise F George Weston Canada 7.69 Seven & I Holdings F Colruyt Belgium 7.69 F Metcash Australia Herbalife FShoprite Holdings South Africa 7.69 F Lawson Japan Metro Inc 3.85 F X5 Retail Group Russia Sysco 3.85 Stater Bros. holdings 0.00 Shoprite Holdings 0.00 X5 Retail Group 0.00 Lawson 0.00 George Weston 0.00 Colruyt 0.00 Cencosud 0.00 Metcash 0.00

0 20 40 60 80 100

www.roberts.cmc.edu 16 Sustainability Reporting of the World's Largest Food Retail Companies Social Intent Rankings

Kesko 96.15 Woolworths 92.31 Tesco Plc 92.31 Seven & I Holdings 80.77 Grade Company Name Country Wesfarmers A+ Kesko Finland 80.77 A+ Woolworths Australia Grupo Pão de Açúcar 80.77 A+ Tesco Plc United Kingdom Metro AG A Wesfarmers Australia 76.92 A Seven & I Holdings Japan Ahold 76.92 A Grupo Pão de Açúcar Brazil Carrefour A- Metro AG Germany 73.08 A- Ahold Netherlands Sysco 65.38 A- Carrefour France J Sainsbury B+ Delhaize Group Belgium 65.38 B+ Sysco United States Delhaize Group B+ J Sainsbury United Kingdom 65.38 Safeway B Safeway United States 61.54 B Wm Morrison Supermarkets United Kingdom Wm Morrison Supermarkets B Metro Inc Canada 57.69 B- Jeronimo Martins Portugal Metro Inc 57.69 B- Shoprite Holdings South Africa Colruyt B- Colruyt Belgium 53.85 C+ Supervalu United States Shoprite Holdings 53.85 C+ Whole Foods Market United States Jeronimo Martins C+ Kroger United States 53.85 C China Resources Enterprise Hong Kong-China Kroger 46.15 C Empire Canada Whole Foods Market C- X5 Retail Group Russia 46.15 C- Metcash Australia Supervalu D George Weston Canada 46.15 Empire D Herbalife Cayman Islands 38.46 D Lawson Japan China Resources Enterprise 38.46 D Cencosud Chile X5 Retail Group D- Stater Bros. holdings United States 30.77 Metcash 26.92 Herbalife 15.38 George Weston 15.38 Lawson 15.38 Cencosud 11.54 Stater Bros. holdings 7.69 0 20 40 60 80 100

www.roberts.cmc.edu 17 Sustainability Reporting of the World's Largest Food Retail Companies Social Reporting Rankings

Delhaize Group 77.21 Grade Company Name Country Woolworths A+ Delhaize Group Belgium 77.07 A+ Woolworths Australia Wm Morrison 72.21 A+ Wm Morrison Supermarkets United Kingdom Grupo Pão de Açúcar A+ Grupo Pão de Açúcar Brazil 71.66 A+ Seven & I Holdings Japan Seven & I 69.57 A Wesfarmers Australia Wesfarmers A Tesco Plc United Kingdom 66.38 A Safeway United States Tesco Plc A- Carrefour France 65.27 Safeway B+ Kroger United States 64.71 B+ Ahold Netherlands Carrefour B Kesko Finland 61.66 Kroger B Jeronimo Martins Portugal 54.71 BMetro AG Germany Ahold B- Metro Inc Canada 53.05 C+ Supervalu United States Kesko 49.71 C+ Sysco United States Jeronimo Martins C Shoprite Holdings South Africa 49.44 CWhole Foods Market United States Metro AG 47.91 CJ Sainsbury United Kingdom Metro Inc C- Herbalife Cayman Islands 39.71 C- Lawson Japan Supervalu C- Metcash Australia 38.47 Sysco D+ Colruyt Belgium 36.66 D Empire Canada Shoprite Holdings D George Weston Canada 30.97 Whole Foods D China Resources Enterprise Hong Kong-China 29.16 D Cencosud Chile J Sainsbury D- Stater Bros. holdings United States 28.19 D- X5 Retail Group Russia Herbalife 25.69 Lawson 23.61 Metcash 22.91 Colruyt 18.05 Empire 14.72 George Weston 14.17 China Resources 13.88 Cencosud 11.11 Stater Bros. 7.92 X5 Retail Group 5.55 0 20 40 60 80 100

www.roberts.cmc.edu 18 Sustainability Reporting of the World's Largest Food Retail Companies Social Performance Rankings

Seven & I Holdings 52.08 Woolworths 47.92 Delhaize Group 45.83 Wesfarmers 41.67 Grade Company Name Country Grupo Pão de Açúcar 41.67 A+ Seven & I Holdings Japan Wm Morrison Supermarkets A Woolworths Australia 35.42 A Delhaize Group Belgium Safeway A- Wesfarmers Australia 35.42 Carrefour A- Grupo Pão de Açúcar Brazil 33.33 B Wm Morrison Supermarkets United Kingdom Tesco Plc B Safeway United States 31.25 Kesko BCarrefour France 31.25 B- Tesco Plc United Kingdom Ahold B- Kesko Finland 29.17 B- Kroger United States Kroger 29.17 B- Ahold Netherlands Metro AG CSysco United States 20.83 C Metro AG Germany Metro Inc 20.83 C Metro Inc Canada Shoprite Holdings C Shoprite Holdings South Africa 20.83 C- Supervalu United States Sysco 20.83 C- Jeronimo Martins Portugal Supervalu C- Herbalife Cayman Islands 18.75 D+ J Sainsbury United Kingdom Jeronimo Martins 16.67 D+ Metcash Australia Herbalife D+ Whole Foods Market United States 16.67 D Lawson Japan Metcash D- Colruyt Belgium 14.58 D- Empire Canada J Sainsbury 14.58 D- George Weston Canada Whole Foods Market F Stater Bros. holdings United States 12.50 F China Resources Enterprise Hong Kong-China Lawson 8.33 F Cencosud Chile Colruyt F X5 Retail Group Russia 6.25 George Weston 4.17 Empire 4.17

Stater Bros. holdings 2.08

China Resources Enterprise 2.08

X5 Retail Group 0.00

Cencosud 0.00

0 20 40 60 80 100

www.roberts.cmc.edu 19 Sustainability Reporting of the World's Largest Food Retail Companies Human Rights Reporting Elements of the PSI Scores

Percent of Companies Reporting* scipoT sthgiR namuH sthgiR scipoT ecnailpmoCgnirotinoMtnemecrofnieRnoitpodA Anti-corruption practices 73.33% 63.33% 56.67% 13.33% Bribery 56.67% 46.67% 33.33% 0.00% Degrading treatment or punishment of employees 46.67% 40.00% 36.67% 6.67% Effective abolition of child labor 43.33% 26.67% 20.00% 3.33% Elimination of all forms of forced and compulsory 36.67% 23.33% 20.00% 3.33% labor Elimination of discrimination in respect to 76.67% 66.67% 50.00% 23.33% employment and occupation Fair compensation of employees 36.67% 20.00% 20.00% 3.33% Free association and collective bargaining of 56.67% 43.33% 30.00% 10.00% employees Political contributions 63.33% 46.67% 36.67% 6.67% Reasonable working hours 30.00% 20.00% 13.33% 0.00% Sexual harassment 63.33% 53.33% 43.33% 3.33%

Basis of Scores

Adoption We assign one point for adoption of a policy standard or for an explicit discussion of an organization’s stance on each of 11 human rights principles. Reinforcement We assign one point for a description of reinforcement actions to make a policy stronger, such as providing educational programs, training, or other activities to promote awareness. Monitoring We assign one point for a description of monitoring measures including mechanisms to detect violations at an early stage, providing systematic reporting, or establishment of committee structure to oversee risky activities. Compliance We assign one point for a quantitative indication of compliance, such as a description of incidences of failure of compliance, or a statement that there were no such incidences.

www.roberts.cmc.edu 20 Sustainability Reporting of the World's Largest Food Retail Companies Average Overall, Environmental, and Social PSI Scores Performance by Country This graph illustrates the average PSI in three categories-- United States overall, environmental, and United Kingdom social--breakdown by countries. South Africa Russia Since our sample size follows Portugal the world's largest companies Netherlands from the Forbes list, several Japan countries have only one Hong Kong-China Overall Germany company score to represent the France whole country's sustainability Finland reporting in the sector. Chile Cayman Islands Canada Brazil Belgium Country N Australia United States 6 United States United Kingdom 3 United Kingdom South Africa South Africa 1 Russia Russia 1 Portugal Netherlands Portugal 1 Japan Netherlands 1 Hong Kong-China Japan 2 Environmental Germany France Hong Kong-China 1 Finland Germany 1 Chile Cayman Islands France 1 Canada Finland 1 Brazil Belgium Chile 1 Australia Cayman Islands 1 Canada 3 United States Brazil 1 United Kingdom South Africa Belgium 2 Russia Australia 3 Portugal Netherlands Japan Hong Kong-China Social Germany France Finland Chile Cayman Islands Canada Brazil Belgium Australia

0 10 20 30 40 50 60 70

www.roberts.cmc.edu 21 Sustainability Reporting of the World's Largest Food Retail Companies Relationship Between Overall PSI Score and Financial Indicators emaNynapmoC llarevO Sales ($B) Log Sales Profits ($B) Log Profits Assets ($B) Log Assets Market Log Market Score Value ($B) Value

Tesco Plc 55.90 99.10 2.00 4.30 0.63 76.70 1.88 41.70 1.62 Wesfarmers 56.42 58.40 1.77 2.10 0.32 43.20 1.64 35.50 1.55 Seven & I Holdings 52.28 62.60 1.80 1.40 0.15 45.30 1.66 25.00 1.40 Woolworths 64.21 58.00 1.76 2.30 0.36 22.00 1.34 33.30 1.52 Metro AG 50.45 86.60 1.94 0.80 -0.10 44.10 1.64 13.40 1.13 Carrefour 55.67 113.20 2.05 0.50 -0.30 62.10 1.79 17.30 1.24 Ahold 52.22 39.20 1.59 1.30 0.11 18.90 1.28 15.20 1.18 Kroger 46.85 90.40 1.96 0.60 -0.22 23.50 1.37 13.70 1.14 Sysco 30.63 41.00 1.61 1.10 0.04 11.50 1.06 17.30 1.24 Wm Morrison Supermarkets 50.57 27.80 1.44 1.10 0.04 15.60 1.19 12.00 1.08 J Sainsbury 40.85 33.80 1.53 1.00 0.00 18.30 1.26 9.00 0.95 George Weston 7.09 31.80 1.50 0.60 -0.22 20.90 1.32 7.90 0.90 Grupo Pão de Açúcar 63.38 25.00 1.40 0.40 -0.40 17.40 1.24 14.30 1.16 Cencosud 4.52 15.70 1.20 0.60 -0.22 13.50 1.13 15.20 1.18 Safeway 47.72 43.60 1.64 0.50 -0.30 15.10 1.18 5.90 0.77 Delhaize Group 58.76 27.40 1.44 0.60 -0.22 15.90 1.20 5.30 0.72 China Resources Enterprise 19.87 14.20 1.15 0.40 -0.40 14.50 1.16 9.40 0.97 Jeronimo Martins 42.44 12.70 1.10 0.40 -0.40 5.70 0.76 11.90 1.08 Whole Foods Market 38.32 10.50 1.02 0.40 -0.40 4.50 0.65 15.50 1.19 Shoprite Holdings 25.14 10.70 1.03 0.40 -0.40 3.00 0.48 9.90 1.00 Colruyt 27.27 10.30 1.01 0.50 -0.30 4.30 0.63 6.90 0.84 Supervalu 33.57 36.50 1.56 -0.50 (0) 12.80 1.11 1.30 0.11 X5 Retail Group 8.27 11.20 1.05 0.30 -0.52 8.60 0.93 6.70 0.83 Metro Inc 38.73 11.30 1.05 0.40 -0.40 5.00 0.70 5.20 0.72 Empire 33.58 16.40 1.21 0.30 -0.52 6.50 0.81 3.80 0.58 Herbalife 15.94 3.50 0.54 0.40 -0.40 1.40 0.15 8.20 0.91 Metcash 23.63 7.40 0.87 0.30 -0.52 6.50 0.81 13.40 1.13 Lawson 10.85 5.40 0.73 0.20 -0.70 5.60 0.75 5.90 0.77 Kesko 54.59 12.30 1.09 0.20 -0.70 5.40 0.73 3.20 0.51 Stater Bros. holdings 2.95 3.70 0.57 0.00 0.00 0.00 0.00 0.00 0.00

www.roberts.cmc.edu 22 Sustainability Reporting of the World's Largest Food Retail Companies 70 Log MarketValue #Name?

60 R2 = 0.4575

Overall PSI Scores PSI Overall 20

0 00.511.522.5 Log Sales ($B)

60 R2 = 0.3486

Overall PSI Scores PSI Overall 20

0 0 0.5 1 1.5 2 Log Assets ($B)

www.roberts.cmc.edu 23 Sustainability Reporting of the World's Largest Food Retail Companies 70

60 R2 = 0.1592

Overall PSI Scores PSI Overall 20

0 - 0.8 - 0.6 - 0.4 - 0.2 0 0.2 0.4 0.6 0.8 Log Profits ($B)

2 50 R = 0.1931

Overall PSI Scores PSI Overall 20

0 0 0.5 1 1.5 2 Log Market Value ($B)

www.roberts.cmc.edu 24 Sustainability Reporting of the World's Largest Food Retail Companies Number of Explicit Numerical Goals Reported

Ahold 5 Carrefour 4 Colruyt 3 Delhaize Group 2 Empire 4 Grupo Pão de Açúcar 5 J Sainsbury 4 Jeronimo Martins 5 Kesko 1 Kroger 4 Metro AG 4 Metro Inc 4 Safeway 3 Seven & I Holdings 3 Supervalu 1 Tesco Plc 2 Wesfarmers 2 Whole Foods Market 1 Wm Morrison Supermarkets 5 Woolworths 7

0 5 10 15 20 25 30 35 40 45 50 55 60 65

Topics reported: Companies reporting: Energy used (total) Ahold

Carrefour

Colruyt

Delhaize Group

Empire

J Sainsbury

Jeronimo Martins

Kesko

Kroger

Metro AG

Metro Inc

Seven & I Holdings

www.roberts.cmc.edu 25 Sustainability Reporting of the World's Largest Food Retail Companies Topics reported: Companies reporting: Energy used (total) Whole Foods Market Environmental expenses and investments Woolworths Greenhouse gases (or CO2 equivalents), total Ahold

Carrefour

Colruyt

Delhaize Group

Empire

Grupo Pão de Açúcar

Jeronimo Martins

Metro AG

Safeway

Seven & I Holdings

Tesco Plc

Wm Morrison Supermarkets

Woolworths Recordable incident/accident rate Kroger

Wesfarmers

Wm Morrison Supermarkets

Woolworths Renewable energy used Ahold

Colruyt

Grupo Pão de Açúcar

J Sainsbury

Metro AG

Safeway

Wm Morrison Supermarkets Social community investment Metro Inc

Woolworths Waste (hazardous) produced Ahold

Carrefour

Empire

www.roberts.cmc.edu 26 Sustainability Reporting of the World's Largest Food Retail Companies Topics reported: Companies reporting: Waste (hazardous) produced Metro AG

Tesco Plc

Woolworths Waste (solid) disposed of Ahold

Empire

Grupo Pão de Açúcar

J Sainsbury

Jeronimo Martins

Kroger

Metro Inc

Safeway

Wm Morrison Supermarkets

Woolworths Waste recycled: solid waste Carrefour

Grupo Pão de Açúcar

Jeronimo Martins

Kroger

Metro Inc

Seven & I Holdings

Supervalu

Wesfarmers Water used Grupo Pão de Açúcar

J Sainsbury

Jeronimo Martins

Wm Morrison Supermarkets

Woolworths

www.roberts.cmc.edu 27 Sustainability Reporting of the World's Largest Food Retail Companies Number of Topics Showing Performance Improvement Over Previous Year Data

Ahold 9 Carrefour 8 China Resources Enterprise 1 Delhaize Group 13 Empire 7 Grupo Pão de Açúcar 12 Herbalife 1 J Sainsbury 7 Jeronimo Martins 8 Kesko 5 Kroger 9 Metro AG 3 Metro Inc 3 Safeway 5 Seven & I Holdings 7 Shoprite Holdings 1 Supervalu 4 Sysco 4 Tesco Plc 7 Wesfarmers 8 Whole Foods Market 5 Wm Morrison Supermarkets 5 Woolworths 11

0 5 10 15 20 25 30 35 40 45 50 55 60 65

Topics reported: Companies reporting: Community development Ahold

Delhaize Group

J Sainsbury

Wesfarmers Community education Delhaize Group

Grupo Pão de Açúcar Customer wellness and nutrition Ahold

Delhaize Group

J Sainsbury

www.roberts.cmc.edu 28 Sustainability Reporting of the World's Largest Food Retail Companies Topics reported: Companies reporting: Customer wellness and nutrition Metro Inc

Seven & I Holdings

Wesfarmers

Woolworths Employee satisfaction surveys Metro AG

Wesfarmers Employee turnover rate Delhaize Group

Wm Morrison Supermarkets

Woolworths Employee volunteerism Grupo Pão de Açúcar

Safeway

Whole Foods Market Energy used (total) Ahold

Carrefour

China Resources Enterprise

Delhaize Group

Empire

Grupo Pão de Açúcar

J Sainsbury

Jeronimo Martins

Kesko

Kroger

Safeway

Seven & I Holdings

Supervalu

Sysco

Tesco Plc

Whole Foods Market

Woolworths Environmental expenses and investments Grupo Pão de Açúcar

Wesfarmers Green food purchasing

www.roberts.cmc.edu 29 Sustainability Reporting of the World's Largest Food Retail Companies Topics reported: Companies reporting: Green food purchasing Empire

Kesko

Kroger Greenhouse gases (or CO2 equivalents), total Ahold

Carrefour

Delhaize Group

Empire

Grupo Pão de Açúcar

Herbalife

Kesko

Kroger

Safeway

Supervalu

Tesco Plc

Wm Morrison Supermarkets

Woolworths Lost workday case rate Carrefour

Delhaize Group

Grupo Pão de Açúcar

Jeronimo Martins

Seven & I Holdings

Woolworths Occupational health and safety protection Delhaize Group

Jeronimo Martins

Kroger

Metro Inc

Safeway

Seven & I Holdings

Sysco

Tesco Plc

Wesfarmers

Woolworths Recordable incident/accident rate Delhaize Group

www.roberts.cmc.edu 30 Sustainability Reporting of the World's Largest Food Retail Companies Topics reported: Companies reporting: Recordable incident/accident rate Grupo Pão de Açúcar

J Sainsbury

Jeronimo Martins

Kroger

Metro Inc

Seven & I Holdings

Sysco

Tesco Plc

Wesfarmers

Wm Morrison Supermarkets Renewable energy used Empire

Jeronimo Martins

Kroger

Whole Foods Market Social community investment Delhaize Group

Grupo Pão de Açúcar

Shoprite Holdings

Woolworths Waste (hazardous) produced Ahold

Carrefour

Empire

Tesco Plc Waste (hazardous) released to the environment Empire Waste (office) recycled Carrefour

Grupo Pão de Açúcar

Seven & I Holdings Waste (solid) disposed of Ahold

Delhaize Group

Empire

Grupo Pão de Açúcar

J Sainsbury

www.roberts.cmc.edu 31 Sustainability Reporting of the World's Largest Food Retail Companies Topics reported: Companies reporting: Waste (solid) disposed of Jeronimo Martins

Kroger

Supervalu

Whole Foods Market

Woolworths Waste recycled: solid waste Ahold

Carrefour

Delhaize Group

Grupo Pão de Açúcar

J Sainsbury

Jeronimo Martins

Kesko

Kroger

Supervalu

Wesfarmers

Woolworths Water used Ahold

Carrefour

J Sainsbury

Jeronimo Martins

Kroger

Metro AG

Safeway

Tesco Plc

Wesfarmers

Whole Foods Market

Wm Morrison Supermarkets

Woolworths Women in management Ahold

Carrefour

Delhaize Group

Grupo Pão de Açúcar

Kesko

Metro AG

www.roberts.cmc.edu 32 Sustainability Reporting of the World's Largest Food Retail Companies Topics reported: Companies reporting: Women in management Seven & I Holdings

Sysco

Tesco Plc

Wm Morrison Supermarkets

Woolworths

www.roberts.cmc.edu 33 Sustainability Reporting of the World's Largest Food Retail Companies Number of Topics in which Performance was Better than Sector Average*

Ahold 1 Carrefour 1 China Resources Enterprise 1 Delhaize Group 2 George Weston 1 Grupo Pão de Açúcar 4 Jeronimo Martins 1 Kesko 1 Kroger 1 Metro Inc 1 Safeway 2 Seven & I Holdings 1 Shoprite Holdings 1 Stater Bros. holdings 1 Supervalu 1 Sysco 1 Tesco Plc 2 Wesfarmers 2 Whole Foods Market 1 Woolworths 3

0 5 10 15 20 25 30 35 40 45 50 55 60 65

Topics reported: Companies reporting: Environmental expenses and investments China Resources Enterprise

Grupo Pão de Açúcar

Wesfarmers

Woolworths Greenhouse gases (or CO2 equivalents), total Tesco Plc Renewable energy used Delhaize Group

Grupo Pão de Açúcar

Safeway

Whole Foods Market

www.roberts.cmc.edu 34 Sustainability Reporting of the World's Largest Food Retail Companies Topics reported: Companies reporting:

Woolworths Social community investment Ahold

Carrefour

Delhaize Group

George Weston

Grupo Pão de Açúcar

Jeronimo Martins

Kesko

Kroger

Metro Inc

Safeway

Seven & I Holdings

Shoprite Holdings

Stater Bros. holdings

Supervalu

Sysco

Tesco Plc

Wesfarmers

Woolworths Waste (office) recycled Grupo Pão de Açúcar

www.roberts.cmc.edu 35 Sustainability Reporting of the World's Largest Food Retail Companies A- Ahold

Ahold is one of the leaders in the Food Retail sector. It covers most of the topics in the PSI Sustainability Management Section, Environmental Quantitative data, and, Social Qualitative data. However, there is definite room for improvement concerning the company's Social Quantitative scores. Notably, Ahold looks to the future of its sustainability reporting more so than many other companies in the sector. It reports five specific numerical goals. For example, Ahold has the goal of reducing CO2 per square meter of sales area by 20% by 2015 against a baseline of 55kg.

Overall Grade: A- Environmental Grade: A- Social Grade: A-

E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance

Comparison with sector averages Source of points Distribution of points

76 77 ESA 51 53 S 29 E 27 51% Ahold E 49% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Ahold covers the majority of the topics covered by the Pacific Sustanability Index. The main area improvement for the company includes its environmental management and Accounting systems, which are not reported. In addition, there should be more focus on the company's environmental labeling practices, to achieve a higher PSI score. This area is especially important to the sector as a whole, and thus require greater attention. The company's focus on its environmental management structue is commendable, as well as the supplier screening process for ethical and environmental procurment. Providing labeling for these practices would benefit consumers.

Topics Percent Coverage Environmental visionary statement 100 Environmental impediments and challenges 100 Environmental policy statement 100 Climate change/global warming 100 Habitat/ecosystem conservation 100 Biodiversity 0 Green purchasing 100 Environmental education 100

www.roberts.cmc.edu 36 Sustainability Reporting of the World's Largest Food Retail Companies Environmental management structure 100 Environmental management system 0 Environmental accounting 0 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 50 Workforce profile: gender 100 Workforce profile: ethnicities/race 50 Emergency preparedness program 0 Third-party validation 100 Employment for individuals with disabilities 100 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 0 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100

Environmental Topics Ahold reports its energy consumption, water used, recycling, waste disposal, hazardous waste production, and greenhouse gas production very thoroughly. This is achieved through goals such as the the company's comprehensive waste-management programs in place at each operating company, and the goal of reducing CO2 per square meter of sales area by 20% by 2015 against a baseline of 55kg.

www.roberts.cmc.edu 37 Sustainability Reporting of the World's Largest Food Retail Companies Topics Percent Coverage Energy used (total) 85.71 Renewable energy used 28.57 Water used 71.43 Waste recycled: solid waste 42.86 Waste (office) recycled 0.00 Waste (solid) disposed of 71.43 Waste (hazardous) produced 85.71 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 14.29 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 85.71 Green food purchasing 80.00

Social and Human Rights Topics While decently strong in social qualitative, Ahold needs to do a better job quantifying this information to receive points for Social Quantitative. Ahold also needs to establish a better system for monitoring human rights conditions.

Topics Percent Coverage Anti-corruption practices 14.29 Bribery 14.29 Political contributions 14.29 Degrading treatment or punishment of employees 50.00 Elimination of discrimination in respect to employment and 14.29 occupation Free association and collective bargaining of employees 14.29 Fair compensation of employees 14.29 Elimination of all forms of forced and compulsory labor 14.29 Reasonable working hours 14.29 Effective abolition of child labor 14.29 Community development 100.00 Employee satisfaction surveys 80.00

www.roberts.cmc.edu 38 Sustainability Reporting of the World's Largest Food Retail Companies Community education 80.00 Occupational health and safety protection 40.00 Employee volunteerism 40.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 42.86 Employee turnover rate 0.00 Women in management 100.00 Sexual harassment 14.29 Customer wellness and nutrition 100.00

www.roberts.cmc.edu 39 Sustainability Reporting of the World's Largest Food Retail Companies A Carrefour

Carrefour ranks near the top of the sector in its overall sustainability reporting. Although all of the PSI topics are covered fairly well, each one could be improved at least somewhat. The overall organization of Carrefour's sustainability report is concise, clear, and easily understood. Division of the report into obvious sections such as "Approach and Strategy" or "Environment" are especially helpful in navigating the report. There's a great deal of contextualized information, as well as total amounts for different reporting areas.

Overall Grade: A Environmental Grade: A Social Grade: A-

Comparison with sector averages Source of points Distribution of points

88 73 62 ESA 51 S 33 E 27 50% Carrefour E 50% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Carrefour's depth in its sustainability reporting is impressive. However, the company's failure to report its workforce profile in ethnicity and race is something that could easily be improved upon for communicating the company's diversity measures. Already, the company reports the workforce profile in gender, as well as discussing initiatives for its workforce profile in age. Sustainable procurment practices are obviously a priority for the company, as reflected by its initiatives in locally grown organic food, animal welfare, sustainable seafood, and green purchasing. Some initiatives include Forest Stewardship Council certified wood and the introduction of a sutainable fishing policy with the Marine Stewardship Council. The company also ensures that this information is provided to its consumers by its environmental labeling focus.

www.roberts.cmc.edu 40 Sustainability Reporting of the World's Largest Food Retail Companies Environmental management structure 50 Environmental management system 100 Environmental accounting 0 Stakeholder consultation 100 Social visionary statement 0 Social impediments and challenges 100 Social policy statement 50 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 50 Workforce profile: age 50 Workforce profile: gender 100 Workforce profile: ethnicities/race 0 Emergency preparedness program 100 Third-party validation 100 Employment for individuals with disabilities 100 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 50

Environmental Topics Carrefour heavily reports on energy and water usage, waste recycling, hazardous waste production, and greenhouse gas production. The company could improve its reporting on other environmental quantitative data, especially renewable energy used and waste disposal. The company has a separate policy, just for waste management, that includes three levels of action: preventing waste generation, optimal recycling of store waste, and encouraging customers to sort and recycle, to achieve maximal effectiveness.

www.roberts.cmc.edu 41 Sustainability Reporting of the World's Largest Food Retail Companies Topics Percent Coverage Energy used (total) 85.71 Renewable energy used 14.29 Water used 71.43 Waste recycled: solid waste 85.71 Waste (office) recycled 28.57 Waste (solid) disposed of 28.57 Waste (hazardous) produced 85.71 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 85.71 Green food purchasing 80.00

Social and Human Rights Topics Carrefour had impressive policies and initiatives that are intended to promote diversity, especially its programs committed to encouraging youth employment. Carrefour can improve its score by supplying a recordable accident rate and by making human rights policies more explicit.

Topics Percent Coverage Anti-corruption practices 50.00 Bribery 0.00 Political contributions 50.00 Degrading treatment or punishment of employees 64.29 Elimination of discrimination in respect to employment and 28.57 occupation Free association and collective bargaining of employees 14.29 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 50.00 Reasonable working hours 0.00 Effective abolition of child labor 50.00 Community development 80.00 Employee satisfaction surveys 40.00

www.roberts.cmc.edu 42 Sustainability Reporting of the World's Largest Food Retail Companies Community education 40.00 Occupational health and safety protection 80.00 Employee volunteerism 40.00 Recordable incident/accident rate 14.29 Lost workday case rate 57.14 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 57.14 Employee turnover rate 28.57 Women in management 100.00 Sexual harassment 50.00 Customer wellness and nutrition 80.00

www.roberts.cmc.edu 43 Sustainability Reporting of the World's Largest Food Retail Companies D- Cencosud

Cencosud has room for a great deal of improvement in its sustainability reporting. There is very little obvious commitment to sustainability management, no environmental quantitative data, and no accessible Corporate Governance document. Thus, there was very little scorable information available to include in the PSI score for the company.

Overall Grade: D- Environmental Grade: F Social Grade: D-

Comparison with sector averages Source of points Distribution of points

E 12 ESA 11 17% 3 2 0 0 Cencosud S E 83% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Cencosud's reporting on its Sustainability Management Topics is sparse: there is only information for and Environmental Visionary Statement and Social Visionary Statement. However, this is grounds to begin to foster a greater emphasis on corporate sustainability for the company in the future.

Topics Percent Coverage Environmental visionary statement 50 Environmental impediments and challenges 0 Environmental policy statement 0 Climate change/global warming 0 Habitat/ecosystem conservation 0 Biodiversity 0 Green purchasing 0 Environmental education 0 Environmental management structure 0 Environmental management system 0 Environmental accounting 0 Stakeholder consultation 0

www.roberts.cmc.edu 44 Sustainability Reporting of the World's Largest Food Retail Companies Social visionary statement 100 Social impediments and challenges 0 Social policy statement 0 Code of conduct or business ethics 0 Supplier screening based on social or environmental performance/ 0 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 50 Locally grown organic food 0 Environmental labelling 0 Animal Welfare 0 Sustainable Seafood 0 Report contact person 0

Environmental Topics The company provides absolutely no quantitative data for its Environmental Quantiative scoring topics. Some areas are addressed briefly, however, much more emphasis much be placed on providing quantitative information to support these discussions of environmental qualitative data throughout the report.

Topics Percent Coverage Energy used (total) 0.00 Renewable energy used 0.00 Water used 0.00 Waste recycled: solid waste 14.29 Waste (office) recycled 0.00 Waste (solid) disposed of 0.00 Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00

www.roberts.cmc.edu 45 Sustainability Reporting of the World's Largest Food Retail Companies Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 0.00 Green food purchasing 0.00

Social and Human Rights Topics Cencosud's poor performance in these three catagories mainly derives from their lack of transparency and reporting. Although it appears that they have a Corporate Governance document, it is not viewable and therefor no points can be granted. This is most likley the reason for Cencosud's poor performance in the Huma Right's topic area. Cencosud's score could be radically improved by ensuring that the Corporate Governance document is accessible and that human rights policies that are upheld by the company are put into writing.

Topics Percent Coverage Anti-corruption practices 0.00 Bribery 0.00 Political contributions 0.00 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 0.00 occupation Free association and collective bargaining of employees 0.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 0.00 Community development 40.00 Employee satisfaction surveys 0.00 Community education 40.00 Occupational health and safety protection 0.00 Employee volunteerism 40.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00

www.roberts.cmc.edu 46 Sustainability Reporting of the World's Largest Food Retail Companies Social community investment 0.00 Employee turnover rate 0.00 Women in management 0.00 Sexual harassment 0.00 Customer wellness and nutrition 40.00

www.roberts.cmc.edu 47 Sustainability Reporting of the World's Largest Food Retail Companies C- China Resources Enterprise

China Resources Enterprise has the beginnings of a strong sustainability reporting initiative By increasing Sustainability Management reporting beyond basics such as environmental and social visionary statements, the company could achieve progress by initiating environmental management systems and environmental accounting. Furthermore, providing quantitative data to support its demonstrated commitment to environmental sustainability would also increase its PSI score. By increasing the scope of its social reporting that is already in place, by giving total amounts of community investment aside from amounts for specific projects, the company also has the ability to easily improve its PSI score.

Overall Grade: C- Environmental Grade: C- Social Grade: D+

Comparison with sector averages Source of points Distribution of points

41 38 ESA S 16 14 8 China 46% E 2 Resources E 54% EI SI ER SR EP SP 0255075100

Sustainability Management Topics China Resources Enterprise has a strong basis for the future of its corporate sustainability reporting, as seen in its Sustainability Management Topics. With clear Environmental and Social Visionary and Policy Statements, as well as environmental management systems in place, the company will be able to move towards more thorough corporate sustainability reporting. Establishing an Environmental Management Structure or reporting environmental accounting would be ways to improve the company's PSI score. Verifying this through third party validation would also substantiate the corporate sustainability report for the company.

www.roberts.cmc.edu 48 Sustainability Reporting of the World's Largest Food Retail Companies Environmental management structure 0 Environmental management system 100 Environmental accounting 0 Stakeholder consultation 50 Social visionary statement 100 Social impediments and challenges 0 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 0 Animal Welfare 0 Sustainable Seafood 0 Report contact person 50

Environmental Topics Although China Resources Enterprise discusses many of the Environmental Quantitative PSI topics, the company fails to provide any quantitative data. If the company were to provide more data, it would greatly increase its PSI score.

Topics Percent Coverage Energy used (total) 28.57 Renewable energy used 0.00 Water used 14.29 Waste recycled: solid waste 14.29

www.roberts.cmc.edu 49 Sustainability Reporting of the World's Largest Food Retail Companies Waste (office) recycled 0.00 Waste (solid) disposed of 14.29 Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 42.86 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 14.29 Green food purchasing 40.00

Social and Human Rights Topics China Resources Enterprise's poor performance in these catagories is due to the minimal information they provide on their website. The scope of topics discussed on their website also needs to be increased. For example, rather than giving small examples of community development it would be better if overarching community giving was provided as well. Also, it is interesting to note that while they do reference the establishment of workplace saftey policies, each business unit is allowed to develop its own policies which results in no uniform coroporate policy.

www.roberts.cmc.edu 50 Sustainability Reporting of the World's Largest Food Retail Companies Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 0.00 Employee turnover rate 0.00 Women in management 0.00 Sexual harassment 0.00 Customer wellness and nutrition 80.00

www.roberts.cmc.edu 51 Sustainability Reporting of the World's Largest Food Retail Companies C Colruyt

Not yet completed

Overall Grade: C Environmental Grade: C+ Social Grade: C

Comparison with sector averages Source of points Distribution of points

59 ESA S 54 27 18 E 6 48% 0 Colruyt E 52% EI SI ER SR EP SP 0255075100

Sustainability Management Topics

Topics Percent Coverage Environmental visionary statement 100 Environmental impediments and challenges 0 Environmental policy statement 100 Climate change/global warming 100 Habitat/ecosystem conservation 50 Biodiversity 50 Green purchasing 100 Environmental education 100 Environmental management structure 0 Environmental management system 0 Environmental accounting 0 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100

www.roberts.cmc.edu 52 Sustainability Reporting of the World's Largest Food Retail Companies Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 100 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 0 Sustainable Seafood 50 Report contact person 50

Environmental Topics notes on colruyt for commentary(damini): they mention a lot of initiatives and what they do; however thye could have done better if they had given more quantitative data.

Topics Percent Coverage Energy used (total) 28.57 Renewable energy used 28.57 Water used 28.57 Waste recycled: solid waste 28.57 Waste (office) recycled 0.00 Waste (solid) disposed of 14.29 Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 28.57 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 42.86 Green food purchasing 40.00

www.roberts.cmc.edu 53 Sustainability Reporting of the World's Largest Food Retail Companies Social and Human Rights Topics Like many other companies, Colruyt failed to quantify most of their social performance. Their score come be improved by providing numerical values for the activities covered by the social qualitative topic area that it is obvious they are already doing.

Topics Percent Coverage Anti-corruption practices 0.00 Bribery 0.00 Political contributions 0.00 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 0.00 occupation Free association and collective bargaining of employees 0.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 14.29 Community development 40.00 Employee satisfaction surveys 0.00 Community education 80.00 Occupational health and safety protection 80.00 Employee volunteerism 0.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 0.00 Employee turnover rate 0.00 Women in management 0.00 Sexual harassment 14.29 Customer wellness and nutrition 40.00

www.roberts.cmc.edu 54 Sustainability Reporting of the World's Largest Food Retail Companies A+ Delhaize Group

Delhaize group provides not only a great deal of information on its sustainability reporting, but also, in a clearly organized, concise format. The company reports extensive Sustainability Management practices, Environmental Qualitatitive data, and anti-corruption practices. The company is obviously committed to tracking its long term progress, as reflect through previous quantiative data for environmental and social reporting.

Overall Grade: A+ Environmental Grade: A Social Grade: A

Comparison with sector averages Source of points Distribution of points

88 77 65 53 ESA 46 S E 23 Delhaize Group 53% 47% E EI SI ER SR EP SP 0255075100

Sustainability Management Topics Delhaize Group provides extensive Sustainability Management reporting. However, the company does not report on its eco-friendly purchasing practices, which would be an easily incorporated area, considering the company does include information on its locally grown organic food, animal welfare, and sustainable seafood. Furthermore, an age profile of workers would improve the company's reporting on promotion of diversity.

www.roberts.cmc.edu 55 Sustainability Reporting of the World's Largest Food Retail Companies Environmental accounting 0 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 50 Workforce profile: ethnicities/race 100 Emergency preparedness program 0 Third-party validation 100 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100

Environmental Topics Delhaize group's reporting on Environmental Quantitative data is especially impressive. There is a great deal of quantiative information for many scoring topics, including greenhouse gas emissions and energy usage. To further improve its PSI score, the company could also committ to more future goals in areas such as reducing waste, or using more renewable energy.

Topics Percent Coverage Energy used (total) 85.71 Renewable energy used 71.43 Water used 57.14 Waste recycled: solid waste 71.43 Waste (office) recycled 0.00

www.roberts.cmc.edu 56 Sustainability Reporting of the World's Largest Food Retail Companies Waste (solid) disposed of 57.14 Waste (hazardous) produced 57.14 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 28.57 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 85.71 Green food purchasing 60.00

Social and Human Rights Topics Delhaize group had very impressive anti-corruption practices and an impressive corruption monitoring infrastructure to ensure that company's code of conduct is effectively upheld. Delhaize also did a very good job providing information to compare their social performance and improvements over the years. Their human rights score could be improved by making sure that initiatives are carried out to reinforce all human rights policies.

Topics Percent Coverage Anti-corruption practices 50.00 Bribery 50.00 Political contributions 50.00 Degrading treatment or punishment of employees 50.00 Elimination of discrimination in respect to employment and 64.29 occupation Free association and collective bargaining of employees 14.29 Fair compensation of employees 50.00 Elimination of all forms of forced and compulsory labor 14.29 Reasonable working hours 14.29 Effective abolition of child labor 14.29 Community development 100.00 Employee satisfaction surveys 80.00 Community education 100.00 Occupational health and safety protection 100.00 Employee volunteerism 40.00 Recordable incident/accident rate 71.43 Lost workday case rate 71.43

www.roberts.cmc.edu 57 Sustainability Reporting of the World's Largest Food Retail Companies Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 85.71 Employee turnover rate 71.43 Women in management 80.00 Sexual harassment 50.00 Customer wellness and nutrition 100.00

www.roberts.cmc.edu 58 Sustainability Reporting of the World's Largest Food Retail Companies B- Empire

Empire has a demonsrated commitment to sustainability. However, the company could be more transparent in its anti-discrimination measures and attempts to create a diverse workforce. Furthermore, although many Ennvironmental Quantitative topics are addressed, there is little information to substantiate much of this information. Still, the company is obviously committed to sustainable procurment practices, as demonstrated by its Sustainable Fisheries Partnership, and participation in the Global Social Compliance Program and Consumer Goods Forum Deforestation Initiative. The company introduced 50 eco-label (Marine Stewardship Council and Best Aquacultural Practices) sustainable seafood products. Also, the company has devoted itself to two notable goals for December 31, 2013: to reduce landfill waste by 30% and Greenhouse Gas emissions by 15% . The company's social sustainability is the most under -reported category, and would definitely improve the company's PSI score if it was more adequately reported. Including quantitative information for injury and accident rates or employee turnover would be good starting points, as well ad adoption of more policies to ensure human rights within the company.

Overall Grade: B- Environmental Grade: B+ Social Grade: D+

Comparison with sector averages Source of points Distribution of points

S 76 ESA 38 37 28% 31 15 4 E Empire E 72% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Empire Company Limited provides a considerable amount of information regarding its Sustainability Management practices. However, the company definitely needs to include more information on its workforce profile, in ethnicity/race, gender, and age. Furthermore, to improve the company's PSI score, more hiring practices for disabled individuals should be included in reporitng. Sustainable sourcing is obviously a priority for the company, as seen through programs such as the Sustainable Fisheries Partnership, and participation in the Global Social Compliance Program and Consumer Goods Forum Deforestation Initiative. The company introduced 50 eco-label (Marine Stewardship Council and Best Aquacultural Practices) sustainable seafood products.

Topics Percent Coverage Environmental visionary statement 100 Environmental impediments and challenges 100 Environmental policy statement 100 Climate change/global warming 100

www.roberts.cmc.edu 59 Sustainability Reporting of the World's Largest Food Retail Companies Habitat/ecosystem conservation 100 Biodiversity 100 Green purchasing 100 Environmental education 100 Environmental management structure 0 Environmental management system 0 Environmental accounting 0 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 0 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 0

Environmental Topics Although the company addresses most of the Environmental Quantitative topics of the PSI score, the company lacks quantiaative data to support much of this discussion. The company does provide a generally thorugh view of the topics through context and goals, as well as implied improvement over previous years. However, more quantitative data must be included. The company sets two commendable goals for December 31, 2013: to reduce landfill waste by 30% and Greenhouse Gas emissions by 15% .

www.roberts.cmc.edu 60 Sustainability Reporting of the World's Largest Food Retail Companies Topics Percent Coverage Energy used (total) 57.14 Renewable energy used 28.57 Water used 0.00 Waste recycled: solid waste 42.86 Waste (office) recycled 0.00 Waste (solid) disposed of 57.14 Waste (hazardous) produced 57.14 Waste (hazardous) released to the environment 42.86 Notices of violation (environmental) 0.00 Environmental expenses and investments 14.29 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 57.14 Green food purchasing 100.00

Social and Human Rights Topics Empire reports very little Social Qualitative information, and absolutely no Social Quantitative information. The company could greatly improve its PSI score by including more of this information in its sustainability reporting. Furthermore, its Human Rights policies are significantly lacking in areas such as harassment, bribery, treatment of employees and hiring practices.

www.roberts.cmc.edu 61 Sustainability Reporting of the World's Largest Food Retail Companies Employee satisfaction surveys 0.00 Community education 40.00 Occupational health and safety protection 20.00 Employee volunteerism 0.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 14.29 Employee turnover rate 0.00 Women in management 0.00 Sexual harassment 0.00 Customer wellness and nutrition 80.00

www.roberts.cmc.edu 62 Sustainability Reporting of the World's Largest Food Retail Companies D- George Weston

George Weston's sustainability reporting is not very thorough. The most reported topic is Sustainability Management, which only provides information funadmental aspects from this scoring section, such as Visionary and Policy Statements, and a Code of Conduct. There is no Environmental Quantitative data available. Furthermore, the company's social reporting is not very transparent and could also be improved considerably.

Overall Grade: D- Environmental Grade: D- Social Grade: D

Comparison with sector averages Source of points Distribution of points

E 15 14 ESA 9 21% 4 0 0 George Weston S E 79 % EI SI ER SR EP SP 0255075100

Sustainability Management Topics George Weston's Sustainability Management reporting is very basic. The company only provides information on fundamental sustainability reporting topics such as an Environmental Visionary and Policy Statement and a Code of Conduct. Although this information is foundational, it serves as a starting point for the company to improve upon its sustainability reporting efforts in the future.

Topics Percent Coverage Environmental visionary statement 50 Environmental impediments and challenges 0 Environmental policy statement 50 Climate change/global warming 0 Habitat/ecosystem conservation 0 Biodiversity 0 Green purchasing 0 Environmental education 0 Environmental management structure 0 Environmental management system 0 Environmental accounting 0

www.roberts.cmc.edu 63 Sustainability Reporting of the World's Largest Food Retail Companies Stakeholder consultation 50 Social visionary statement 100 Social impediments and challenges 0 Social policy statement 0 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 0 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 0 Locally grown organic food 0 Environmental labelling 0 Animal Welfare 0 Sustainable Seafood 0 Report contact person 0

Environmental Topics George Weston does not provdie any information on Environemtnal Quantiative topics, and should provide this information in the future in order to improve its PSI score.

Topics Percent Coverage Energy used (total) 0.00 Renewable energy used 0.00 Water used 0.00 Waste recycled: solid waste 0.00 Waste (office) recycled 0.00 Waste (solid) disposed of 0.00 Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00

www.roberts.cmc.edu 64 Sustainability Reporting of the World's Largest Food Retail Companies Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 0.00 Green food purchasing 0.00

Social and Human Rights Topics George Weston's performance was very weak in all three of these topic areas. To achieve a better score they simply must provide more trasnparent information regarding their performance for the public.

Topics Percent Coverage Anti-corruption practices 50.00 Bribery 0.00 Political contributions 0.00 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 14.29 occupation Free association and collective bargaining of employees 0.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 0.00 Community development 40.00 Employee satisfaction surveys 0.00 Community education 20.00 Occupational health and safety protection 0.00 Employee volunteerism 0.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 42.86 Employee turnover rate 0.00 Women in management 0.00

www.roberts.cmc.edu 65 Sustainability Reporting of the World's Largest Food Retail Companies Sexual harassment 14.29 Customer wellness and nutrition 0.00

www.roberts.cmc.edu 66 Sustainability Reporting of the World's Largest Food Retail Companies A+ Grupo Pão de Açúcar

Grupo Pao de Acucar is extremely thorough in its Sustainability Management Reporting, however, could still improve its PSI score by reporting its workforce profile diversity. The Quantitative Environmental data is well- reported,with clearly labled and coherently contextualized graphs and charts. Furthermore, unlike most other companies in the sector, there is substantial social quantitative information. However, the Human Rights PSI score could be improved with a greater focus on enforcing the policies adopted.

Overall Grade: A+ Environmental Grade: A+ Social Grade: A+

Comparison with sector averages Source of points Distribution of points

94 81 72 57 ESA 42 S E 35 Grupo Pão de 51% Açúcar 49% E EI SI ER SR EP SP 0255075100

Sustainability Management Topics Grupo Pao de Acucar provides a substantially thorough report on its Sustainability Management Topics. The company could easily improve its PSI score by including the workforce profile for ethncity and race along with its profile on gender and age that are already reported. With already a clear commitment to sustainable procurement practices, greater efforts towars environmental labeling would also be an area for improvement. The company's report is also especially well-organized, easy to navigate, and provides clear, concise information.

www.roberts.cmc.edu 67 Sustainability Reporting of the World's Largest Food Retail Companies Environmental accounting 100 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 50 Workforce profile: age 100 Workforce profile: gender 100 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 100 Employment for individuals with disabilities 100 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 0 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100

Environmental Topics Grupo Pao de Acucar's reporting of Environmental Quantiative topics is both thorugh and easy to understand. With clearly labeled and coherently contextualized graphs and charts, the information is both easy to understand and conceptualized. In addition, although the effort is not necessarily an aspect of any PSI socring point, the company's efforts to encourage the usage of reusable bags and decrease plastic bags is commendable in that the company is attempting to eradicate free distribution of plastic bags at the cash register.

Topics Percent Coverage Energy used (total) 71.43 Renewable energy used 57.14 Water used 71.43 Waste recycled: solid waste 85.71

www.roberts.cmc.edu 68 Sustainability Reporting of the World's Largest Food Retail Companies Waste (office) recycled 71.43 Waste (solid) disposed of 85.71 Waste (hazardous) produced 14.29 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 71.43 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 85.71 Green food purchasing 40.00

Social and Human Rights Topics Grupo Pao de Acucar did an impressive job in the social quantitative topic area relative to other food retail companies. Their human rights score could be improved by making sure that they are actively taking measures to ensure that the policies outlined in the code of conduct are being upheld.

Topics Percent Coverage Anti-corruption practices 64.29 Bribery 14.29 Political contributions 28.57 Degrading treatment or punishment of employees 50.00 Elimination of discrimination in respect to employment and 64.29 occupation Free association and collective bargaining of employees 14.29 Fair compensation of employees 50.00 Elimination of all forms of forced and compulsory labor 64.29 Reasonable working hours 14.29 Effective abolition of child labor 64.29 Community development 80.00 Employee satisfaction surveys 0.00 Community education 100.00 Occupational health and safety protection 80.00 Employee volunteerism 100.00 Recordable incident/accident rate 71.43 Lost workday case rate 71.43

www.roberts.cmc.edu 69 Sustainability Reporting of the World's Largest Food Retail Companies Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 85.71 Employee turnover rate 57.14 Women in management 100.00 Sexual harassment 50.00 Customer wellness and nutrition 0.00

www.roberts.cmc.edu 70 Sustainability Reporting of the World's Largest Food Retail Companies D+ Herbalife

Herbalife's sustainability reporting is very basic. Although most areas are somewhat reported, there is a lack of depth thoroughness through out the company's sustainability reporting initiatives. There is no Environmental Quantitative information at all, and this greatly affects the company's PSI score for this area. Although there is a basic Code of Conduct, Herbalife should expand the topics covered in this document and ensure that the topics covered are more thoroughly reported.

Overall Grade: D+ Environmental Grade: D Social Grade: D+

Comparison with sector averages Source of points Distribution of points

26 ESA 15 18 17 E 12 8 S 40% Herbalif e 60% E EI SI ER SR EP SP 0255075100

Sustainability Management Topics Overall, Herbalife's Sustainability Management reporting is quite basic. Most of the information is provided through Environmental and Social Visionary statements, and a Code of Conduct. Aside from this however, the company could improve its PSI score a great deal if it reported more Sustainability Management topics in the future.

Topics Percent Coverage Environmental visionary statement 100 Environmental impediments and challenges 0 Environmental policy statement 0 Climate change/global warming 0 Habitat/ecosystem conservation 0 Biodiversity 0 Green purchasing 0 Environmental education 100 Environmental management structure 0 Environmental management system 0 Environmental accounting 0

www.roberts.cmc.edu 71 Sustainability Reporting of the World's Largest Food Retail Companies Stakeholder consultation 0 Social visionary statement 100 Social impediments and challenges 0 Social policy statement 0 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 0 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 0 Locally grown organic food 0 Environmental labelling 0 Animal Welfare 0 Sustainable Seafood 0 Report contact person 0

Environmental Topics Herbalife does not provide any quantiative information whatsoever for its Environmental Quantiative reporting. By doing so in the future, the company could substantiate its discussion of these areas addersed in its reporting, while simultaneously increasing its PSI score. The company has been commended for its Leadership in Energy and Environmental Design (LEED).

Topics Percent Coverage Energy used (total) 28.57 Renewable energy used 0.00 Water used 28.57 Waste recycled: solid waste 14.29 Waste (office) recycled 0.00 Waste (solid) disposed of 0.00

www.roberts.cmc.edu 72 Sustainability Reporting of the World's Largest Food Retail Companies Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 14.29 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 28.57 Green food purchasing 80.00

Social and Human Rights Topics Herbalife needs to provide more information about their social initiatives to improve their score. Human rights policies also need to be more explicitly stated to receive points.

Topics Percent Coverage Anti-corruption practices 50.00 Bribery 14.29 Political contributions 14.29 Degrading treatment or punishment of employees 14.29 Elimination of discrimination in respect to employment and 14.29 occupation Free association and collective bargaining of employees 0.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 0.00 Community development 80.00 Employee satisfaction surveys 0.00 Community education 0.00 Occupational health and safety protection 20.00 Employee volunteerism 20.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 0.00

www.roberts.cmc.edu 73 Sustainability Reporting of the World's Largest Food Retail Companies Employee turnover rate 0.00 Women in management 0.00 Sexual harassment 14.29 Customer wellness and nutrition 80.00

www.roberts.cmc.edu 74 Sustainability Reporting of the World's Largest Food Retail Companies B J Sainsbury

J Sanisbury provides a great deal of information in its sustainability report in a well-organized format. It could improve its Sustainability Management reporting by including information on the diversity of its workforce, as well as its green purchasing practices. There is a clear lack of Environmental Quantitative data, but the company is committed to sending zero wastes to landfills by 2011. The lack of a Code of Conduct greatly decreases the social performance of the company, and including one would greatly improve its Human Rights score.

Overall Grade: B Environmental Grade: B+ Social Grade: B-

Comparison with sector averages Source of points Distribution of points

88 65 ESA S 33 28 44% E 15 15 J Sainsbury

E 56% EI SI ER SR EP SP 0255075100

Sustainability Management Topics J Sainsbury provides an extensive report on its Sustainability Management Topics. The company could still improve its score if it reported its workforce's ethnic/racial and gender makeup, in addition to its already reported age composition. Green purchasing, along with sustainable procurment through local/organic food, animal welfare, and sustainable seafood are obvious priorities, especially as reflected through the company's environmental labeling initiatives. The company is the largest UK retailer in Fairtrade products by value, thus also reflecting the relative importance of supplier screening. Still, including third party assurance of the company's sustainability reporting is definitely an area for improvement and for a higher PSI score.

www.roberts.cmc.edu 75 Sustainability Reporting of the World's Largest Food Retail Companies Environmental management structure 50 Environmental management system 100 Environmental accounting 0 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 100 Workforce profile: gender 0 Workforce profile: ethnicities/race 50 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 100 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 50

Environmental Topics Despite the fact that the company addresses almost all of the areas for Environmental Quantitative Topics, it fails to provide substantiating quantiative data for almost every topic. The company's zero waste to landfill goal by 2011 deserves recognition, especially considering that the company diverts 85% of its waste currently.

www.roberts.cmc.edu 76 Sustainability Reporting of the World's Largest Food Retail Companies Topics Percent Coverage Energy used (total) 57.14 Renewable energy used 42.86 Water used 57.14 Waste recycled: solid waste 42.86 Waste (office) recycled 14.29 Waste (solid) disposed of 71.43 Waste (hazardous) produced 28.57 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 14.29 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 14.29 Green food purchasing 20.00

Social and Human Rights Topics J Sainbury could greatly improve their score by having a code of conduct that outlines human rights policies available online.

www.roberts.cmc.edu 77 Sustainability Reporting of the World's Largest Food Retail Companies Occupational health and safety protection 80.00 Employee volunteerism 80.00 Recordable incident/accident rate 28.57 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 28.57 Employee turnover rate 0.00 Women in management 0.00 Sexual harassment 0.00 Customer wellness and nutrition 100.00

www.roberts.cmc.edu 78 Sustainability Reporting of the World's Largest Food Retail Companies B Jeronimo Martins

Jeronimo Martins could increase its PSI score by discussing its initiatives to employ a diverse workforce. Also, the company could provide even more detailed information surrounding its sustainable procurment and green purchasing practices. There is little quantitative data for past years in the Environmental Quantitative section, although some data is present. A more transparent approach to policy adaption in the Human Rights area of scoring would also increase the company's PSI score.

Overall Grade: B Environmental Grade: B+ Social Grade: B-

Comparison with sector averages Source of points Distribution of points

76 54 49 ESA S 39 19 17 Jeronimo 47% E Martins E 53% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Jeronimo Martins can improve its PSI score through reporting its workforce ethnicity/race, along with its workforce's anti-gender and age discrimination initiatives. Already, the company has a fairly thorough report of its Sustainability Management practices. For animal welfare and seafood sustainability, the company could also include more information to accompany its locally/organic food reporting practices.

www.roberts.cmc.edu 79 Sustainability Reporting of the World's Largest Food Retail Companies Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 0 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 50 Workforce profile: age 50 Workforce profile: gender 50 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 50 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 0 Sustainable Seafood 0 Report contact person 0

Environmental Topics The company provides quantiative data for many of its Environmental Quantitative reporting topics. However, by including more information from past years, not only could more previous quantative data points be earned, but also, improvement over previous points as well. The company's Greenhouse Gas emissions reporting is very thorough, in providing context through Scope 1, 2, and 3.

Topics Percent Coverage Energy used (total) 71.43 Renewable energy used 42.86 Water used 57.14 Waste recycled: solid waste 71.43 Waste (office) recycled 0.00 Waste (solid) disposed of 57.14

www.roberts.cmc.edu 80 Sustainability Reporting of the World's Largest Food Retail Companies Waste (hazardous) produced 28.57 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 57.14 Green food purchasing 40.00

Social and Human Rights Topics Jernimo Martins could improve their score in the human rights section by explicitly stating their policies, rather than just hinting at them. For example, it appears that they reject compulsory labor, but in order to receive a point for discussion the actual policy must be verbalized.

Topics Percent Coverage Anti-corruption practices 50.00 Bribery 14.29 Political contributions 14.29 Degrading treatment or punishment of employees 14.29 Elimination of discrimination in respect to employment and 64.29 occupation Free association and collective bargaining of employees 14.29 Fair compensation of employees 14.29 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 14.29 Community development 40.00 Employee satisfaction surveys 40.00 Community education 40.00 Occupational health and safety protection 100.00 Employee volunteerism 40.00 Recordable incident/accident rate 71.43 Lost workday case rate 71.43 Health and safety citations 0.00 Health and safety fines 0.00

www.roberts.cmc.edu 81 Sustainability Reporting of the World's Largest Food Retail Companies Social community investment 57.14 Employee turnover rate 0.00 Women in management 20.00 Sexual harassment 0.00 Customer wellness and nutrition 40.00

www.roberts.cmc.edu 82 Sustainability Reporting of the World's Largest Food Retail Companies A Kesko

Kesko reports by far some of the most information compared to any other company in the sector. However, its report is not as organized or easy to navigate as it could be considering the amount of information reported. The company contextualizes a great deal of its quantitative data by region, type, etc. However, in many cases, it fails to report an overall amount to be scored as current /previous data in a PSI score. Furthermore, to improve its PSI score for Human Rights, it should focus more upon its own initiatives and policy reinforcment/monitoring rather than that of its suppliers.

Overall Grade: A Environmental Grade: A- Social Grade: A

Comparison with sector averages Source of points Distribution of points

96 91

50 ESA 40 31 S E 19 Kesko 54% 46% E EI SI ER SR EP SP 0255075100

Sustainability Management Topics Kesko's Sustainability Management reporting is extremely thorough. One of the only area's for improvement is through more detailed discussion of enironmental accounting and supplier screening practices. If the company included information on its environmental education initiativies, it would receive a perfect PSI score for Sustainability Management. Although not a topic of the PSI Index, Kesko is also contributing to sustainable development, using guidelines and standards from the Green Building Council Finland, as well as the British BREEAM and American LEED in building and contracting its stores. Furthermore, the Environmental Management Structure at Kesko is highly developed with a variety of specialties and focuses, from the Steering Group for Responsible Purchasing to the Corporate Responsibility Advisory Board.

Topics Percent Coverage Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100 Environmental visionary statement 100 Environmental impediments and challenges 100 Environmental policy statement 100

www.roberts.cmc.edu 83 Sustainability Reporting of the World's Largest Food Retail Companies Climate change/global warming 100 Habitat/ecosystem conservation 100 Biodiversity 100 Green purchasing 100 Environmental education 0 Environmental management structure 100 Environmental management system 100 Environmental accounting 50 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 50 supplier management Health and safety, or social organizational structure 100 Workforce profile: age 100 Workforce profile: gender 100 Workforce profile: ethnicities/race 100 Emergency preparedness program 100 Third-party validation 100 Employment for individuals with disabilities 100 Employee training for career development 100

Environmental Topics Kesko provides substantial reporting on its Environmental Quantitative topics. However, this area could still be improved upon by providing more quantitative data, especially for Greenhouse Gas emissions and waste recycling. There is a great deal of quantitaitive information in the report. However, much of it is highly fragmented and contextualized, without any total amounts for the company as a whole. Consolidating this information would increase the company's PSI score. However, the company should retain its specific data as well, in that it offers excellent context. Kesko's 92% waste recovery rate for its companies in Finland deserves recognition.

www.roberts.cmc.edu 84 Sustainability Reporting of the World's Largest Food Retail Companies Topics Percent Coverage Green food purchasing 100.00 Energy used (total) 85.71 Renewable energy used 14.29 Water used 42.86 Waste recycled: solid waste 28.57 Waste (office) recycled 0.00 Waste (solid) disposed of 57.14 Waste (hazardous) produced 42.86 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 28.57 Environmental expenses and investments 14.29 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 28.57

Social and Human Rights Topics Kesko has the ability to make a few very small changes and see a drastic improvement in their score. For exmaple, rather than only providing the employee turnover rate for each individual country they need to provide the overall turnover rate. The overall injury rate and lost workdays also needs to be provided for all countries of operation, rather than exclusively for Finland. Kesko must also discuss its own human rights efforts and policies, rather than the human rights policies it requires from its suppliers. Although, it is likley that Kesko upholds the purchasing principles it requires for its suppliers, the companies own policies must be explicitly stated.

Topics Percent Coverage Customer wellness and nutrition 40.00 Anti-corruption practices 64.29 Bribery 50.00 Political contributions 50.00 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 14.29 occupation Free association and collective bargaining of employees 64.29 Fair compensation of employees 14.29 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00

www.roberts.cmc.edu 85 Sustainability Reporting of the World's Largest Food Retail Companies Effective abolition of child labor 14.29 Community development 80.00 Employee satisfaction surveys 80.00 Community education 80.00 Occupational health and safety protection 80.00 Employee volunteerism 0.00 Recordable incident/accident rate 14.29 Lost workday case rate 14.29 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 71.43 Employee turnover rate 28.57 Women in management 80.00 Sexual harassment 0.00

www.roberts.cmc.edu 86 Sustainability Reporting of the World's Largest Food Retail Companies B+ Kroger

Kroger is comprehensive in its Sustainability Management reporting, and provides information clearly and concisely. However, there is very little quantiative data to support the company's commitment to the environment. The company does demonstrate an obvious emphasis on environmental sustainability, especially over the years, but data for improvement over previous years is lacking. Still, the company does demonstrate impressive safety initiatives, and reduction of accidents over time.

Overall Grade: B+ Environmental Grade: A- Social Grade: B

Comparison with sector averages Source of points Distribution of points

55 46 ESA S 36 27 29 46% E Kroger E 54% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Kroger's reporting of its Sustainability Management is largely comprehensive. However, the company's PSI score would improve with a greater focus on reporting the diversity of the workforce's composition, from age, gender, and ethnic background. In addition, a greater focus on environmental management and accounting, as assured by a third party source, would also increase the company's PSI score. The company is obviously committed to locally grown products Fair Trade, which is thus reflected in its PSI score. Recently the company has more than doubled its Fair Trade Certified products. Furthermorethe company promotes sourcing sustainable seafood, with 100% of top 20 wild-caught species from fisheries approved by the Marine Stewardship Council.

www.roberts.cmc.edu 87 Sustainability Reporting of the World's Largest Food Retail Companies Environmental management structure 100 Environmental management system 0 Environmental accounting 0 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 0 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 50 Workforce profile: age 50 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100

Environmental Topics Kroger reports many initiatives in its Environmental Quantiative/Qualitative topics. However, the quantiative information is especially lacking, and if provided, would greatly improve the company's PSI score. Many topics cite improvement over previous years, but lack current and previous data to back up this claim. In adition, Koger has reduced its overall in store energy consumption by 31% by the end of 2011, and also, company-wide, saved 2.34 billion kilowatt hours of electricity.

www.roberts.cmc.edu 88 Sustainability Reporting of the World's Largest Food Retail Companies Topics Percent Coverage Energy used (total) 71.43 Renewable energy used 42.86 Water used 71.43 Waste recycled: solid waste 57.14 Waste (office) recycled 0.00 Waste (solid) disposed of 57.14 Waste (hazardous) produced 14.29 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 57.14 Green food purchasing 60.00

Social and Human Rights Topics Kroger had very impressive and unparelled safety initiatives. They also should be appalauded for their effective reduction of accidents.

Topics Percent Coverage Anti-corruption practices 50.00 Bribery 50.00 Political contributions 64.29 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 50.00 occupation Free association and collective bargaining of employees 50.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 0.00 Community development 80.00 Employee satisfaction surveys 0.00 Community education 40.00

www.roberts.cmc.edu 89 Sustainability Reporting of the World's Largest Food Retail Companies Occupational health and safety protection 100.00 Employee volunteerism 40.00 Recordable incident/accident rate 85.71 Lost workday case rate 14.29 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 57.14 Employee turnover rate 0.00 Women in management 80.00 Sexual harassment 50.00 Customer wellness and nutrition 80.00

www.roberts.cmc.edu 90 Sustainability Reporting of the World's Largest Food Retail Companies D Lawson

Lawson only provides very basic information in its sustainability reporting initiatives. There is no Environmental Quantitative data, and the company only discusses briefly its waste and recycling practices. There is little evidence of Lawson's commitment to the community either, through eduction, service, or customer wellness.

Overall Grade: D Environmental Grade: D- Social Grade: D+

Comparison with sector averages Source of points Distribution of points

E 24 ESA 15 15 8 27% 3 0 Law son S E 73 % EI SI ER SR EP SP 0255075100

Sustainability Management Topics In its Sustainability Management Reporting, Lawson only provides very basic information: Environmental and Social Visionary Statements and a Code of Conduct. This is definitely a starting point to build further sutainability reporting from in the future, however, Lawson has not demonstrated substantail Sustainability Management reporting thus far.

Topics Percent Coverage Locally grown organic food 0 Environmental labelling 0 Animal Welfare 0 Sustainable Seafood 0 Report contact person 0 Environmental visionary statement 100 Environmental impediments and challenges 0 Environmental policy statement 100 Climate change/global warming 0 Habitat/ecosystem conservation 0 Biodiversity 0

www.roberts.cmc.edu 91 Sustainability Reporting of the World's Largest Food Retail Companies Green purchasing 0 Environmental education 0 Environmental management structure 0 Environmental management system 0 Environmental accounting 0 Stakeholder consultation 50 Social visionary statement 100 Social impediments and challenges 0 Social policy statement 0 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 0 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 0

Environmental Topics The only topic that Lawson covers in its Environmental Quantitative or Qualitative reporting is that of its waste and recycling practices. However, even for this area, the company does not provide any quantitative data, goals, etc. to substantiate its reporting.

Topics Percent Coverage Green food purchasing 0.00 Energy used (total) 0.00 Renewable energy used 0.00 Water used 0.00 Waste recycled: solid waste 14.29 Waste (office) recycled 0.00 Waste (solid) disposed of 14.29

www.roberts.cmc.edu 92 Sustainability Reporting of the World's Largest Food Retail Companies Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 0.00

Social and Human Rights Topics Lawson could easily improve their human rights section score by making sure that all of their policies are outlined and provided online. Lawson also needs to imprve their commitment to community development, community education, and customer wellness and nutrition to even have a chance at being competitive in the social qualitative topic area.

Topics Percent Coverage Customer wellness and nutrition 0.00 Anti-corruption practices 50.00 Bribery 50.00 Political contributions 50.00 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 50.00 occupation Free association and collective bargaining of employees 0.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 0.00 Community development 40.00 Employee satisfaction surveys 0.00 Community education 0.00 Occupational health and safety protection 20.00 Employee volunteerism 40.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00

www.roberts.cmc.edu 93 Sustainability Reporting of the World's Largest Food Retail Companies Health and safety fines 0.00 Social community investment 0.00 Employee turnover rate 0.00 Women in management 0.00 Sexual harassment 0.00

www.roberts.cmc.edu 94 Sustainability Reporting of the World's Largest Food Retail Companies C Metcash

Metcash can improve its overall PSI score by including information to compliment the reporting already present in its Sustainability Management section, such as reporting on local/organic food alongside its policies in place already surrounding animal welfare and seafood sustainability. Furthermore, the company should include more information on its environmental quantitative data to increase its overall PSI score considerably.

Overall Grade: C Environmental Grade: C Social Grade: C-

Comparison with sector averages Source of points Distribution of points

63 ESA S 27 23 45% 15 15 E 0 Metc as h E 55% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Metcash could easily improve its PSI score by including information on its locally or organically grown food, in its addition to its already reported stance on animal welfare and seafood sustainability. Furthermore, in expanding its more socialy-focused reporting, focusing on triaining employees as well as ensuring that they are not discriminated against by race, age, or gender would also improve the company's PSI score. The company's strongest points are its sustainability management and "pro-labeling" stance of its Sustainable Supply Chain Policy.

Topics Percent Coverage Locally grown organic food 0 Environmental labelling 50 Animal Welfare 100 Sustainable Seafood 100 Environmental visionary statement 100 Environmental impediments and challenges 0 Environmental policy statement 100 Climate change/global warming 50 Habitat/ecosystem conservation 0 Biodiversity 100

www.roberts.cmc.edu 95 Sustainability Reporting of the World's Largest Food Retail Companies Green purchasing 100 Environmental education 0 Environmental management structure 50 Environmental management system 100 Environmental accounting 100 Stakeholder consultation 50 Social visionary statement 100 Social impediments and challenges 0 Social policy statement 0 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 50 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 0

Environmental Topics Metcash does not provide any quantiative information regarding its environmental quantiative data, nor does it thoroughly address any of the topics in this section of the PSI. It could improve its reporting and PSI score if it were to do so in the future. Perhaps the most notable asepct of its environmental reporting is that the company is part of the Carbon Disclosure Project, Dow Jones Sustainability Index, National Packaging Covenant/Australina Packaging Covenant, and National Greenouseand Energy Reporting.

Topics Percent Coverage Green food purchasing 20.00 Energy used (total) 28.57 Renewable energy used 0.00 Water used 14.29 Waste recycled: solid waste 14.29 Waste (office) recycled 0.00

www.roberts.cmc.edu 96 Sustainability Reporting of the World's Largest Food Retail Companies Waste (solid) disposed of 14.29 Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 14.29 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 28.57

Social and Human Rights Topics Simlar to other companies, Metcash's performance was weak because little information was provided online about the companies social efforts and actions. Their score could also be improved by implementing a monitoring system for human rights policies.

Topics Percent Coverage Customer wellness and nutrition 0.00 Anti-corruption practices 14.29 Bribery 14.29 Political contributions 14.29 Degrading treatment or punishment of employees 14.29 Elimination of discrimination in respect to employment and 14.29 occupation Free association and collective bargaining of employees 0.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 14.29 Effective abolition of child labor 0.00 Community development 20.00 Employee satisfaction surveys 0.00 Community education 0.00 Occupational health and safety protection 40.00 Employee volunteerism 20.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00

www.roberts.cmc.edu 97 Sustainability Reporting of the World's Largest Food Retail Companies Health and safety fines 0.00 Social community investment 0.00 Employee turnover rate 0.00 Women in management 40.00 Sexual harassment 14.29

www.roberts.cmc.edu 98 Sustainability Reporting of the World's Largest Food Retail Companies A- Metro AG

Metro AG is very thorough in its sustainability reporting, especially in comprehensively discussing most aspects of the PSI Index for Sustainability Management, providing considerable Environmental Quantitative information,

Overall Grade: A- Environmental Grade: A- Social Grade: B+

Comparison with sector averages Source of points Distribution of points

97 77 52 ESA S 48 21 48% E 8 Metro A G E 52% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Metro AG scores very well on the PSI index for Sustainability Management. The main areas for improvement including reporting its workforce's ethnic/racial makeup, as well as providing more detailed accounting of environmental expenditures. Notably, Oekom Research, a leading rating agency in the field of sustainable investments, name the company a sustainably managed business and awared the company Prime Status.Also, the company established a group-wide purchasing policy for fish to protect global fish stocks, reflecting the company's commitment to biodiversity and ecosystems. Furthermore, in 2012, the company initiated its "Go Sustainable" program in 2012 to further support sustainability in its business

www.roberts.cmc.edu 99 Sustainability Reporting of the World's Largest Food Retail Companies Environmental accounting 50 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 50 Workforce profile: age 100 Workforce profile: gender 100 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 50 Employment for individuals with disabilities 100 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100

Environmental Topics Metro AG's reporting of its Environmental Quantiative Data is quite impressive. There is substantial quantitative data to backup claims made by Metro AG regarding its Environmental Qualitative commitment. The group's participation in the Global Carbon Disclosure Leadership Index is one way in which the company establishes its stance on Greenhouse Gas Emissions. The company's reporting of its parameters such as energy and waste are clear and concise, as well as specific in that there is a great deal of context given to better understand where the company stands in its efforts.

Topics Percent Coverage Energy used (total) 71.43 Renewable energy used 28.57 Water used 71.43 Waste recycled: solid waste 57.14

www.roberts.cmc.edu 100 Sustainability Reporting of the World's Largest Food Retail Companies Waste (office) recycled 0.00 Waste (solid) disposed of 57.14 Waste (hazardous) produced 71.43 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 71.43 Green food purchasing 80.00

Social and Human Rights Topics Metro AG has thorough reporting of its Social Qualitative and Social Quantitative data, as well as considerable quantitative data to support its claims in these areas. However, in comparison, its commitment to human rights could be more substantial. There is a lack of quantitative compliance indication in all areas, and very little monitoring. Some important aspects of human rights have not been included either, including sexual harassment, degrading treatment and punishment of employees, and bribery. Many of the policies are simply stated, but not supported by actions to reinforce the policies.

Topics Percent Coverage Anti-corruption practices 64.29 Bribery 0.00 Political contributions 50.00 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 14.29 occupation Free association and collective bargaining of employees 14.29 Fair compensation of employees 14.29 Elimination of all forms of forced and compulsory labor 14.29 Reasonable working hours 0.00 Effective abolition of child labor 14.29 Community development 40.00 Employee satisfaction surveys 100.00 Community education 40.00 Occupational health and safety protection 80.00 Employee volunteerism 0.00

www.roberts.cmc.edu 101 Sustainability Reporting of the World's Largest Food Retail Companies Recordable incident/accident rate 57.14 Lost workday case rate 28.57 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 0.00 Employee turnover rate 57.14 Women in management 100.00 Sexual harassment 0.00 Customer wellness and nutrition 40.00

www.roberts.cmc.edu 102 Sustainability Reporting of the World's Largest Food Retail Companies B Metro Inc

Metro AG should focus its Sustainability Management reporting more heavily on not only reflection of a diverse workforce, but also an environmental management system or environmental accounting practices. The company still demonstrates a commitment to the environment in that it encourages consumers to stop using plastic bags. Nonetheless, the company must report more quantitative environmental data to improve its overall PSI score. The company does have a strong performance in the Social Qualitative area, however, there should be a stronger focus on its Social Quantitative data and Human Rights policies

Overall Grade: B Environmental Grade: B- Social Grade: B-

Comparison with sector averages Source of points Distribution of points

76 ESA 58 S 34 40 E 21 51% 4 Metro Inc E 49% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Metro Inc. could easily improve its PSI score by focusing more heavily upon ensuring that it provides more information surrounding the diversity of its workforce, and initiatives/actions that it takes to promote this practice. Furthermore, if the company provided reporting on its environmental management system (ISO standards),as well as its environmental accounting practices, the company would increase its PSI score.

www.roberts.cmc.edu 103 Sustainability Reporting of the World's Largest Food Retail Companies Environmental accounting 0 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 50 Workforce profile: age 0 Workforce profile: gender 50 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 50 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 50 Sustainable Seafood 100 Report contact person 0

Environmental Topics A notable, albeit un-reported parameter of the PSI Index, is the company's commitment to decrease plastic bag usage. This effort in turn reduces waste from the company's consumers. The company thus far has reduced plastic bag distribution by 75%, which it has achieved by adhering to the Voluntary Code of Best Practices for the Use of Shoping Bags. The company instead sells 12 million reusable bags made from 100% post-consumer recycled content. However, the company lacks any information on its environmental quantitative data. To improve its PSI socre, the company must provide quantiative information to substantiate its claims in this area.

Topics Percent Coverage Energy used (total) 57.14 Renewable energy used 0.00 Water used 0.00 Waste recycled: solid waste 57.14

www.roberts.cmc.edu 104 Sustainability Reporting of the World's Largest Food Retail Companies Waste (office) recycled 14.29 Waste (solid) disposed of 42.86 Waste (hazardous) produced 14.29 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 14.29 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 42.86 Green food purchasing 80.00

Social and Human Rights Topics Metro Inc's strong Social Qualitative performance was hampered by their weak Social Quantitative and Human Rights performance. Improvements in these two areas could greatlt imprve their overall score.

Topics Percent Coverage Anti-corruption practices 14.29 Bribery 0.00 Political contributions 0.00 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 14.29 occupation Free association and collective bargaining of employees 14.29 Fair compensation of employees 14.29 Elimination of all forms of forced and compulsory labor 14.29 Reasonable working hours 0.00 Effective abolition of child labor 0.00 Community development 80.00 Employee satisfaction surveys 40.00 Community education 80.00 Occupational health and safety protection 60.00 Employee volunteerism 0.00 Recordable incident/accident rate 42.86 Lost workday case rate 0.00 Health and safety citations 0.00

www.roberts.cmc.edu 105 Sustainability Reporting of the World's Largest Food Retail Companies Health and safety fines 0.00 Social community investment 71.43 Employee turnover rate 0.00 Women in management 80.00 Sexual harassment 14.29 Customer wellness and nutrition 100.00

www.roberts.cmc.edu 106 Sustainability Reporting of the World's Largest Food Retail Companies B+ Safeway

Safeway demonstrates an obvious concern for the community, especially through its JumpStart and Healthy Measures initiatives. Furthermore, the company demonstrates an obvious commitment to sustainable sourcing, as seen through Green Peace's ranking of the company as #1 in Supermarket Seafood Sutainability. Unfortunately, despite the company's commitment to the environment and the community, there was little quantitative data to back up these claims. For this reason, the company's overall PSI suffered. In the future, Safeway should focus on including more quantitative data.

Overall Grade: B+ Environmental Grade: B Social Grade: A-

Comparison with sector averages Source of points Distribution of points

76 62 65 ESA E 33 35 S 15 Safew ay 56% 44% E EI SI ER SR EP SP 0255075100

Sustainability Management Topics The main areas where Safeway could improve its Sustainability Management PSI score include environmental management, accounting, and third party validation. However, its commitment to sustainable sourcing and biodiversity is evident as the company is ranked #1 on Green Peacae's top grocer in Supermarket Seafood Sustainability.

www.roberts.cmc.edu 107 Sustainability Reporting of the World's Largest Food Retail Companies Environmental accounting 0 Stakeholder consultation 50 Social visionary statement 100 Social impediments and challenges 0 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 100 Workforce profile: age 0 Workforce profile: gender 100 Workforce profile: ethnicities/race 50 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 50 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 0

Environmental Topics Safeway provides considerable information supporting its Environmental Quantiative and Qualitative reporting. However, the company could greatly increase its PSI score if it provided quantiative data (current, previous) to substantiate its claims. Still, the company's zero waste goals and and 19 solar-powered stores is commendable.

Topics Percent Coverage Energy used (total) 42.86 Renewable energy used 71.43 Water used 28.57 Waste recycled: solid waste 42.86 Waste (office) recycled 14.29

www.roberts.cmc.edu 108 Sustainability Reporting of the World's Largest Food Retail Companies Waste (solid) disposed of 42.86 Waste (hazardous) produced 14.29 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 57.14 Green food purchasing 40.00

Social and Human Rights Topics Safeway should be applauded for its efforts to promote health and wellness, specifically their JumpStart and Healthy measures initiatives. Like most other retail food companies, they fell short at quantifying their social impacts and as a result had a weak score in the Social Quantitative section.

Topics Percent Coverage Anti-corruption practices 50.00 Bribery 50.00 Political contributions 50.00 Degrading treatment or punishment of employees 50.00 Elimination of discrimination in respect to employment and 50.00 occupation Free association and collective bargaining of employees 50.00 Fair compensation of employees 50.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 50.00 Effective abolition of child labor 0.00 Community development 80.00 Employee satisfaction surveys 0.00 Community education 80.00 Occupational health and safety protection 60.00 Employee volunteerism 100.00 Recordable incident/accident rate 14.29 Lost workday case rate 14.29 Health and safety citations 0.00

www.roberts.cmc.edu 109 Sustainability Reporting of the World's Largest Food Retail Companies Health and safety fines 0.00 Social community investment 71.43 Employee turnover rate 0.00 Women in management 60.00 Sexual harassment 50.00 Customer wellness and nutrition 80.00

www.roberts.cmc.edu 110 Sustainability Reporting of the World's Largest Food Retail Companies A- Seven & I Holdings

Seven and I Holdings provides a great deal of information in its sustainability reporitng initiatives. However, this information is somewhat disorganized, difficult to navigate, and not concise. Much of the quantitative information reported is provided for different groups or operations. This is beneficial to the PSI score in a contextual aspect, however, the company should focus on improving this aspect of its sustainability reporting by consolidating it into total amounts. Also, the PSI score could easily be improved by identifying individuals who hold positions in the company's environmental management structure.

Overall Grade: A- Environmental Grade: B- Social Grade: A+

Comparison with sector averages Source of points Distribution of points

81 68 70 ESA E 52 36 Seven & I S 35% 8 Holdings E 65% EI SI ER SR EP SP 0255075100

Sustainability Management Topics In addition to providing information on local/organic food, Seven and I Holdings could increase its PSI score by reporting information on animal welfare and sustainable seafood procurment. Furthermore, identifying the individuals whol hold positions in its environmental management structure or providing detailed information on its environmental accounting would also increase its PSI score. By launching the Tropical Forest Conservation Projec twith the International Tropical Timber Organization, the company clearly demonstrates its commitment to a low carbon society and biodiversity conservation, and toward developing environmentally friendly stores.

Topics Percent Coverage Environmental impediments and challenges 100 Environmental policy statement 100 Climate change/global warming 100 Habitat/ecosystem conservation 100 Biodiversity 100 Green purchasing 100 Environmental education 100 Environmental management structure 50

www.roberts.cmc.edu 111 Sustainability Reporting of the World's Largest Food Retail Companies Environmental management system 100 Environmental accounting 0 Stakeholder consultation 0 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 50 Workforce profile: age 0 Workforce profile: gender 100 Workforce profile: ethnicities/race 50 Emergency preparedness program 100 Third-party validation 50 Employment for individuals with disabilities 100 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 0 Sustainable Seafood 0 Report contact person 0 Environmental visionary statement 100

Environmental Topics Seven and I Holdings reports a great deal of segmented information for context on its Environmental Quantiative data. However, the company must consolidate this information into group-wide amounts in order to receive a higher score for its Environmental Qualitative reporting, making its reporting more transparent and easily understood. Notably, the company has installed 209 solar panels on stores and 3191 LED lights, as well as opened 64 eco-friendly, energy efficient stores.

www.roberts.cmc.edu 112 Sustainability Reporting of the World's Largest Food Retail Companies Topics Percent Coverage Energy used (total) 57.14 Renewable energy used 14.29 Water used 57.14 Waste recycled: solid waste 42.86 Waste (office) recycled 28.57 Waste (solid) disposed of 28.57 Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 14.29 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 71.43 Green food purchasing 40.00

Social and Human Rights Topics Seven and I Holdings could improve their Human Rights score by monitoring the policies that it has in place.

Topics Percent Coverage Anti-corruption practices 64.29 Bribery 14.29 Political contributions 14.29 Degrading treatment or punishment of employees 64.29 Elimination of discrimination in respect to employment and 50.00 occupation Free association and collective bargaining of employees 50.00 Fair compensation of employees 64.29 Elimination of all forms of forced and compulsory labor 14.29 Reasonable working hours 14.29 Effective abolition of child labor 14.29 Community development 80.00 Employee satisfaction surveys 40.00 Community education 80.00

www.roberts.cmc.edu 113 Sustainability Reporting of the World's Largest Food Retail Companies Occupational health and safety protection 100.00 Employee volunteerism 80.00 Recordable incident/accident rate 71.43 Lost workday case rate 71.43 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 57.14 Employee turnover rate 0.00 Women in management 60.00 Sexual harassment 64.29 Customer wellness and nutrition 60.00

www.roberts.cmc.edu 114 Sustainability Reporting of the World's Largest Food Retail Companies C Shoprite Holdings

Shoprite holdings has sparsely reports any Sustainability Management topics, fails to provide any Environmental Quantitative data, and by outlining policies for human rights more clearly in a code of conduct. Currently, Shoprite Holding's report is well-organized and clear, but lacks a great deal of information.

Overall Grade: C Environmental Grade: D+ Social Grade: C+

Comparison with sector averages Source of points Distribution of points

E ESA 54 32 31 21 13 Shoprite 30% 0 S Holdings E 70 % EI SI ER SR EP SP 0255075100

Sustainability Management Topics Shoprite Holdings could substantial improve its PSI score by improving its Sustainability Management reporting. An Environemtnal Visionary statement would be an easily added amendment to the report, as well as including information on the company's environmental management system, environmental accounting, and third party validation. Furthermore, the company should dedicate more attention to reporting its workforce diversity in the future.

Topics Percent Coverage Environmental visionary statement 0 Environmental impediments and challenges 0 Environmental policy statement 100 Climate change/global warming 100 Habitat/ecosystem conservation 0 Biodiversity 0 Green purchasing 0 Environmental education 0 Environmental management structure 50 Environmental management system 0 Environmental accounting 0

www.roberts.cmc.edu 115 Sustainability Reporting of the World's Largest Food Retail Companies Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 0 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 100 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 100 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 0 Sustainable Seafood 0 Report contact person 0

Environmental Topics Shoprite Holdings does not provide any quantiative data to support its Environmental Quantitative reporting. To improve its PSI score, the company should report more information from this area. Overall, much of its environmental reporting is fairly vague and could be more specific in communicating the company's goals and objectives.

Topics Percent Coverage Energy used (total) 14.29 Renewable energy used 0.00 Water used 14.29 Waste recycled: solid waste 14.29 Waste (office) recycled 0.00 Waste (solid) disposed of 14.29

www.roberts.cmc.edu 116 Sustainability Reporting of the World's Largest Food Retail Companies Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 14.29 Green food purchasing 40.00

Social and Human Rights Topics Shoprite can improve its score in the human rights section by making sure that the policies that it likley does have in place are actually outlined in the code of conduct and ethics.

Topics Percent Coverage Anti-corruption practices 14.29 Bribery 0.00 Political contributions 14.29 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 64.29 occupation Free association and collective bargaining of employees 28.57 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 0.00 Community development 80.00 Employee satisfaction surveys 0.00 Community education 40.00 Occupational health and safety protection 80.00 Employee volunteerism 0.00 Recordable incident/accident rate 14.29 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 71.43

www.roberts.cmc.edu 117 Sustainability Reporting of the World's Largest Food Retail Companies Employee turnover rate 57.14 Women in management 0.00 Sexual harassment 0.00 Customer wellness and nutrition 40.00

www.roberts.cmc.edu 118 Sustainability Reporting of the World's Largest Food Retail Companies D- Stater Bros. holdings

Stater Bros. currently lacks any form of Sustainability Management, aside from a Social Visionary Statement. There is no Environmental Quantitative data reported. There is an apparent commitment to the community from Stater Bros. website; however, much is needed to improve the company's PSI score.

Overall Grade: D- Environmental Grade: F Social Grade: D-

Comparison with sector averages Source of points Distribution of points

E 8 8 ESA 2 Stater Bros. 0% 0 0 0 holdings E S EI SI ER SR EP SP 10 0 % 0255075100

Sustainability Management Topics Stater Bros. only reports information on its Social Visionary Statement, and thus, needs to improve its Sustainability Management reporting to be much more thorough to improve its PSI score.

Topics Percent Coverage Locally grown organic food 0 Environmental labelling 0 Animal Welfare 0 Sustainable Seafood 0 Environmental visionary statement 0 Environmental impediments and challenges 0 Environmental policy statement 0 Climate change/global warming 0 Habitat/ecosystem conservation 0 Biodiversity 0 Green purchasing 0 Environmental education 0 Environmental management structure 0

www.roberts.cmc.edu 119 Sustainability Reporting of the World's Largest Food Retail Companies Environmental management system 0 Environmental accounting 0 Stakeholder consultation 0 Social visionary statement 0 Social impediments and challenges 0 Social policy statement 100 Code of conduct or business ethics 0 Supplier screening based on social or environmental performance/ 0 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 0

Environmental Topics Stater Bros. does not provide any environmental quantitative or qualitative information. Therefore, to increase its PSI score, it must do so in the future.

Topics Percent Coverage Green food purchasing 0.00 Energy used (total) 0.00 Renewable energy used 0.00 Water used 0.00 Waste recycled: solid waste 0.00 Waste (office) recycled 0.00 Waste (solid) disposed of 0.00 Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00

www.roberts.cmc.edu 120 Sustainability Reporting of the World's Largest Food Retail Companies Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 0.00

Social and Human Rights Topics Stater Bro's disappointing performance was mainly because it's online site is very poor compared to its competitors. With increased transparency Stater Bro's will see an improvement in its scores.

Topics Percent Coverage Customer wellness and nutrition 0.00 Anti-corruption practices 0.00 Bribery 0.00 Political contributions 0.00 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 14.29 occupation Free association and collective bargaining of employees 0.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 0.00 Community development 40.00 Employee satisfaction surveys 0.00 Community education 20.00 Occupational health and safety protection 0.00 Employee volunteerism 0.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 42.86 Employee turnover rate 0.00 Women in management 0.00 Sexual harassment 0.00

www.roberts.cmc.edu 121 Sustainability Reporting of the World's Largest Food Retail Companies www.roberts.cmc.edu 122 Sustainability Reporting of the World's Largest Food Retail Companies B- Supervalu

Supervalu demonstrates an overall commitment to the environment and community. The company could definitely improve upon its sustainabilty management practices by focusing more on biodiversity and ecosystem conservation, in relation to its sustainable sourcing practices. As is with many companies in the sector, the company's score would also be improved if the company provided as detailed quantiative data reporting as it does for its waste, recycling, and Greenhouse Gas emissions.

Overall Grade: B- Environmental Grade: C+ Social Grade: C+

Comparison with sector averages Source of points Distribution of points

53 ESA 46 38 S 30 E 15 19 51% Supervalu E 49% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Although Supervalu has demonstrated a clear commitment to its Sustainability Management, much improvement could be made. The company could focus more heavily on biodiversity and ecosystem conservation, especially in relating to its animal welfare and sustainable seafood sourcing practices. Also, a more detailed workforce diversity profile in age, race, and gender would benefit the company's reporting.

www.roberts.cmc.edu 123 Sustainability Reporting of the World's Largest Food Retail Companies Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 0 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 50 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 50 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100

Environmental Topics Supervalu provides very thorough information in its waste and recycling , as well as Greenhouse Gas emissions. Environmental Quantiative Reporting. Furthermore, its goal of 90% waste recycling for 300 stores by March 2013 is highly comendable. Still, the company could greatly improve its PSI score if it were to provide more quantiative data for its other environmental reporting intitiatives. For its Greenhouse Gas emissions, the company's 2012 goal for reducing carbon emisisons from a 2007 baseline is notable.

Topics Percent Coverage Energy used (total) 28.57 Renewable energy used 14.29 Water used 0.00 Waste recycled: solid waste 85.71 Waste (office) recycled 0.00 Waste (solid) disposed of 71.43

www.roberts.cmc.edu 124 Sustainability Reporting of the World's Largest Food Retail Companies Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 14.29 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 71.43 Green food purchasing 40.00

Social and Human Rights Topics Supervalu had very impressive and thorough human rights policies. Their definitions also are very good in that they ensure that the human rights issues are not ambiguous. But, they do need an explicit policy against child labor and for reasonable and fair working hours.

Topics Percent Coverage Anti-corruption practices 14.29 Bribery 14.29 Political contributions 50.00 Degrading treatment or punishment of employees 50.00 Elimination of discrimination in respect to employment and 50.00 occupation Free association and collective bargaining of employees 14.29 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 0.00 Community development 80.00 Employee satisfaction surveys 0.00 Community education 20.00 Occupational health and safety protection 20.00 Employee volunteerism 80.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00

www.roberts.cmc.edu 125 Sustainability Reporting of the World's Largest Food Retail Companies Social community investment 42.86 Employee turnover rate 0.00 Women in management 0.00 Sexual harassment 50.00 Customer wellness and nutrition 40.00

www.roberts.cmc.edu 126 Sustainability Reporting of the World's Largest Food Retail Companies C+ Sysco

Sysco has a foundation for sustainability reporting that can be developed greatly. The company can expand upon its current Sustainability Management reporting by including more information on areeas such as environmental management systems, environmental accounting, and third party validation. For its Environmental Quantitative data, Sysco reports its energy usage very thoroughly. The company should consider doing so with the remainder of the topics in the Environmental Quantiative scoring section to improve the overall PSI score. Along the same lines, increasing Social Quantitative data reporting would be the best way to improve the company's PSI score from this area of reporting as well.

Overall Grade: C+ Environmental Grade: C- Social Grade: B-

Comparison with sector averages Source of points Distribution of points

E 65 ESA 41 37 16 21 S 33% 4 Sysco E 67% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Sysco could improve its PSI score by focusing on areas such as environmental management systems, environmental accounting, and third party validation. In addition, a greater emphasis on the company's commitment to biodiversity and ecosystem preservation would also improve the company's PSI score. Already, the company has expressed commitment to animal welfare efforts, and continues to move forward on sustainable seafood, alongside the Marine Stewardship Council's Principles and Criteria for Sustainable Fishing.

www.roberts.cmc.edu 127 Sustainability Reporting of the World's Largest Food Retail Companies Environmental management structure 0 Environmental management system 0 Environmental accounting 0 Stakeholder consultation 50 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 50 Workforce profile: age 0 Workforce profile: gender 100 Workforce profile: ethnicities/race 100 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 50 Report contact person 0

Environmental Topics Sysco thoroughly reports its energy use; however, the company does not continue this trend throughout the remainder of its Environmental Qualitative reporting. If the company does so, it would greatly improve the PSI score overall and for Environmental Quantitative data.

Topics Percent Coverage Energy used (total) 71.43 Renewable energy used 0.00 Water used 14.29 Waste recycled: solid waste 0.00

www.roberts.cmc.edu 128 Sustainability Reporting of the World's Largest Food Retail Companies Waste (office) recycled 0.00 Waste (solid) disposed of 14.29 Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 14.29 Green food purchasing 40.00

Social and Human Rights Topics The largest improvement that Sysco could make would be to quantify their social performance.

Topics Percent Coverage Anti-corruption practices 0.00 Bribery 0.00 Political contributions 0.00 Degrading treatment or punishment of employees 50.00 Elimination of discrimination in respect to employment and 50.00 occupation Free association and collective bargaining of employees 0.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 0.00 Community development 80.00 Employee satisfaction surveys 0.00 Community education 80.00 Occupational health and safety protection 100.00 Employee volunteerism 40.00 Recordable incident/accident rate 28.57 Lost workday case rate 0.00 Health and safety citations 0.00

www.roberts.cmc.edu 129 Sustainability Reporting of the World's Largest Food Retail Companies Health and safety fines 0.00 Social community investment 42.86 Employee turnover rate 14.29 Women in management 60.00 Sexual harassment 50.00 Customer wellness and nutrition 40.00

www.roberts.cmc.edu 130 Sustainability Reporting of the World's Largest Food Retail Companies A Tesco Plc

Tesco provides a great deal of sustainability reporting iformation, especially in its Sustainability Management practices, with little room for improvement for this area. The company addresses many Environmental Quantitative topics, but fails to substantiate this information with any quantiative data. Tesco clearly elucidates its policies in its Human Rights reporting, and can improve further by quantifying its social initiatives.

Overall Grade: A Environmental Grade: B+ Social Grade: A

Comparison with sector averages Source of points Distribution of points

91 92 65 ESA 32 31 E 23 S Tesco Plc 56% 44% E EI SI ER SR EP SP 0255075100

Sustainability Management Topics Tescos' Sustainability Management reporting is extremely thorough. The only real area for improvement is through environmental accounting and stating explicit workforce profile distribution for ethnicities and races.

www.roberts.cmc.edu 131 Sustainability Reporting of the World's Largest Food Retail Companies Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 100 Workforce profile: age 50 Workforce profile: gender 100 Workforce profile: ethnicities/race 50 Emergency preparedness program 100 Third-party validation 100 Employment for individuals with disabilities 100 Employee training for career development 100 Locally grown organic food 50 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100 Environmental visionary statement 100

Environmental Topics Tesco's report addresses many Environmental Quantitative topics. However, the company fails to provide any quantitative data too substantiate its information.

Topics Percent Coverage Energy used (total) 42.86 Renewable energy used 28.57 Water used 28.57 Waste recycled: solid waste 14.29 Waste (office) recycled 0.00 Waste (solid) disposed of 28.57 Waste (hazardous) produced 57.14 Waste (hazardous) released to the environment 0.00

www.roberts.cmc.edu 132 Sustainability Reporting of the World's Largest Food Retail Companies Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 100.00 Green food purchasing 80.00

Social and Human Rights Topics Tesco performed very well in the human rights section because policies were very clear and conscise. The next improvement that Tesco could make would be to quantify their social actions.

Topics Percent Coverage Anti-corruption practices 50.00 Bribery 50.00 Political contributions 50.00 Degrading treatment or punishment of employees 50.00 Elimination of discrimination in respect to employment and 50.00 occupation Free association and collective bargaining of employees 50.00 Fair compensation of employees 50.00 Elimination of all forms of forced and compulsory labor 50.00 Reasonable working hours 50.00 Effective abolition of child labor 50.00 Community development 0.00 Employee satisfaction surveys 20.00 Community education 40.00 Occupational health and safety protection 60.00 Employee volunteerism 40.00 Recordable incident/accident rate 57.14 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 42.86 Employee turnover rate 0.00 Women in management 60.00

www.roberts.cmc.edu 133 Sustainability Reporting of the World's Largest Food Retail Companies Sexual harassment 50.00 Customer wellness and nutrition 40.00

www.roberts.cmc.edu 134 Sustainability Reporting of the World's Largest Food Retail Companies A Wesfarmers

Wesfarmers provides substantial Sustainability Management reportng. It could still improve this aspect of its PSI score through reporting more habitat/ecosystem conservation information. Furthermore, the Environmental Quantitative reporting very thorough, especially as it is contextualized through different operations and groups. esfarmers does report its non-compliance/prosecutions, with the total number being zero, for eviolation of environmental regulations. Social Quantitative reporting could improve, however, the company scored highly on Social Qualitative information due to context provided for many points.

Overall Grade: A Environmental Grade: A- Social Grade: A

Comparison with sector averages Source of points Distribution of points

81 74 66 57 ESA 42 E 19 S Wesfarmers 56% 44% E EI SI ER SR EP SP 0255075100

Sustainability Management Topics Wesfarmers provides substantial Sustainability Management reporting. The most obviously acheivable areas for improvement include reporting on habitat/ecosystem conservation (in addition to already reported information on biodiversity, sustainable seafood, and animal welfare), as well as providing more thorough information regarding stakeholder engagement. The company provides detailed environmental expenditures per company within the group

Topics Percent Coverage Environmental impediments and challenges 0 Environmental policy statement 100 Climate change/global warming 100 Habitat/ecosystem conservation 0 Biodiversity 100 Green purchasing 100 Environmental education 100 Environmental management structure 50 Environmental management system 100 Environmental accounting 100

www.roberts.cmc.edu 135 Sustainability Reporting of the World's Largest Food Retail Companies Stakeholder consultation 0 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 50 Workforce profile: age 0 Workforce profile: gender 100 Workforce profile: ethnicities/race 100 Emergency preparedness program 100 Third-party validation 100 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 0 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100 Environmental visionary statement 100

Environmental Topics Wesfarmers has extremely detailed Environmental Quantiative reporting. Not only is the information broken down by company's within the group providing context for most of its quantiative reporting, but also, the company focuses heavily upon provides context such as Scope 1,2, and 3 for its Greenhouse Gas emissions. Also notable, the company is part of the Carbon Disclosure Project, and projects to contribute $30million to the Coal 21 Fund that researches low emission coal technolgies. Although rare across the sector in general, Wesfarmers does report its non-compliance/prosecutions, with the total number being zero, for eviolation of environmental regulations.

Topics Percent Coverage Energy used (total) 57.14 Renewable energy used 14.29 Water used 71.43 Waste recycled: solid waste 85.71

www.roberts.cmc.edu 136 Sustainability Reporting of the World's Largest Food Retail Companies Waste (office) recycled 0.00 Waste (solid) disposed of 57.14 Waste (hazardous) produced 28.57 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 28.57 Environmental expenses and investments 85.71 Fines (environmental) 28.57 Greenhouse gases (or CO2 equivalents), total 57.14 Green food purchasing 80.00

Social and Human Rights Topics Wesfarmers scored well in the social qualitative section because they did a very good job providing context for everything. Their score could be improved through qauntification and by making sure that all of the human rights policies that are scored are listed in their code of conduct.

Topics Percent Coverage Anti-corruption practices 50.00 Bribery 50.00 Political contributions 50.00 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 50.00 occupation Free association and collective bargaining of employees 64.29 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 50.00 Reasonable working hours 0.00 Effective abolition of child labor 50.00 Community development 100.00 Employee satisfaction surveys 60.00 Community education 40.00 Occupational health and safety protection 100.00 Employee volunteerism 80.00 Recordable incident/accident rate 71.43 Lost workday case rate 57.14

www.roberts.cmc.edu 137 Sustainability Reporting of the World's Largest Food Retail Companies Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 14.29 Employee turnover rate 0.00 Women in management 80.00 Sexual harassment 50.00 Customer wellness and nutrition 100.00

www.roberts.cmc.edu 138 Sustainability Reporting of the World's Largest Food Retail Companies B Whole Foods Market

Whole Foods is obviously and clearly committed to sustainability. Its sustainability reporting initiatives reflect this, however, there are many small aditions that could be made to its sustainability reporting that would increase its PSI score, such as reporting the diversity of its workforce, or providing more information quantiative information on its substantial renewable energy initiatives in the future. Furthermore, the company's social reporting initiatives could be improved by addressing more topics in its Code of Conduct and quantifying its commitment to reducing injuries and accidents, as well as other data for the social aspect of its reporting.

Overall Grade: B Environmental Grade: B+ Social Grade: C

Comparison with sector averages Source of points Distribution of points

S 46 ESA 31 29 23 38% 13 Whole Foods E Market E 62% EI SI ER SR EP SP 0255075100

Sustainability Management Topics Whole Foods market demonstrates a clear commitment to SustainabilityManagement topics. However, the company could easily improve its score by focusing more heavily upon its commitment to a diverse workforce composition, through promotion of hiring practices to decrease age, gender, race, and disability discrimination. Furthermore, it seems as though reporting on an environmental management system and third party validation of the sustainability report would be easily achievable targets for the company. The company is very concerned with sustainable procurement, such as the Marine Stewardship Council's certified sustainable seafood, and its 5-Step Animal Welfare Rating system as part of the Global Animal

www.roberts.cmc.edu 139 Sustainability Reporting of the World's Largest Food Retail Companies Environmental management structure 50 Environmental management system 0 Environmental accounting 50 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 0 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 100 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100

Environmental Topics Whold Foods fails to provide substantial quantiative data supporting its Environmental Quantitative data. However, to improve its PSI score, the company should consider doing so in the future. The company focuses heavily on its alternative/renewable energy commitment, with its investment in wind energy helping the company to avoid 551,000metric tons of carbon dioxide pollution. 100% of the electriciy used in stores has been offset by renewable energy credits since 2006.

www.roberts.cmc.edu 140 Sustainability Reporting of the World's Largest Food Retail Companies Topics Percent Coverage Energy used (total) 57.14 Renewable energy used 71.43 Water used 28.57 Waste recycled: solid waste 42.86 Waste (office) recycled 0.00 Waste (solid) disposed of 42.86 Waste (hazardous) produced 14.29 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 28.57 Green food purchasing 80.00

Social and Human Rights Topics Whole Foods has the potential to increase their social qualitative, social quantitative, and human rights score drastcially through increased reporting on the topics scored in these sections. While it is clear that Whole Foods likley has strong human rights policy, many points for this section were not granted due to the lack of an explicit adoption of human rights policies. It would be beneficial to add these to the Code of Business Conduct that already exists. Community investments, recordable accidents, and lost workdays also needs to be quantified for social quantitaive points to be granted.

Topics Percent Coverage Anti-corruption practices 0.00 Bribery 50.00 Political contributions 50.00 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 0.00 occupation Free association and collective bargaining of employees 0.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 0.00

www.roberts.cmc.edu 141 Sustainability Reporting of the World's Largest Food Retail Companies Community development 80.00 Employee satisfaction surveys 0.00 Community education 40.00 Occupational health and safety protection 40.00 Employee volunteerism 100.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 0.00 Employee turnover rate 0.00 Women in management 0.00 Sexual harassment 50.00 Customer wellness and nutrition 40.00

www.roberts.cmc.edu 142 Sustainability Reporting of the World's Largest Food Retail Companies A- Wm Morrison Supermarkets

The company has considerably sustainability reporting initiatives. Although there is environmental quantitative data avialable, there is room for improvement in providing more still. A comendable goal that the company discusses is to reduce oeprational carbon emissions by 30% by 2020 from a 2005 baseline and has implemented an "Energywise" campaign to reward energy saving stores in 2012. More Social Quantitative data could be included, especially in lost workday rates and social community investment, to increase the company's overall PSI score.

Overall Grade: A- Environmental Grade: B+ Social Grade: A-

Comparison with sector averages Source of points Distribution of points

91 72 58 ESA 35 35 S E 12 Wm Morrison 54% 46% Supermarkets E EI SI ER SR EP SP 0255075100

Sustainability Management Topics WM Morrison already provides substantial information surrounding its Sustainability Management initiatives. However, the company could further improve its reporting by focusing on a few social aspects. These areas include an accessible Code of Conduct and a greater focus on workforce diversity initiatives (age and disability). The company clearly focuses on health and safety in the workplace, reporting a decreasing tred in accident rates since 1999, through initiatives such as the Management Board's Joiint Health and Safety Executive of Director's guidance 'Leading Health and Safety at Work" The company also implemented a BS OHSAS 18001: 2007 Occupational Health and Safety Management System. The company also demonstrates a sizeable commitment sustainable sourcing through FairTrade, palm oil sourcing through the Roundtable on Sustainable Palm Oil, and timber purchasing through support of certification like the Forest Stewardship Council.

www.roberts.cmc.edu 143 Sustainability Reporting of the World's Largest Food Retail Companies Environmental education 100 Environmental management structure 100 Environmental management system 50 Environmental accounting 0 Stakeholder consultation 100 Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 0 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 50 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 100 Third-party validation 100 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100

Environmental Topics WM Morrison has room for improvement in its PSI score on Environmental Quantitative Reporting. Although the company does provide quantiative data for a number of areas, its score could still greatly improve. The company has an ambitious target to reduce oeprational carbon emissions by 30% by 2020 from a 2005 baseline and has implemented an "Energywise" campaign to reward energy saving stores in 2012.

www.roberts.cmc.edu 144 Sustainability Reporting of the World's Largest Food Retail Companies Topics Percent Coverage Energy used (total) 14.29 Renewable energy used 28.57 Water used 42.86 Waste recycled: solid waste 28.57 Waste (office) recycled 0.00 Waste (solid) disposed of 57.14 Waste (hazardous) produced 14.29 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 14.29 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 85.71 Green food purchasing 80.00

Social and Human Rights Topics Overall, WM Morrison had very strong performance in these sections. Their iniatives and actions to promote the number of women in management positions and to reduce accidents is especially admirable. Some areas that WM Morrison could alter to improve their score in these sections is to include the lost workday case rate and quantify their overall social community invesements.

Topics Percent Coverage Anti-corruption practices 50.00 Bribery 50.00 Political contributions 0.00 Degrading treatment or punishment of employees 50.00 Elimination of discrimination in respect to employment and 50.00 occupation Free association and collective bargaining of employees 50.00 Fair compensation of employees 50.00 Elimination of all forms of forced and compulsory labor 50.00 Reasonable working hours 50.00 Effective abolition of child labor 50.00 Community development 80.00

www.roberts.cmc.edu 145 Sustainability Reporting of the World's Largest Food Retail Companies Employee satisfaction surveys 40.00 Community education 80.00 Occupational health and safety protection 40.00 Employee volunteerism 0.00 Recordable incident/accident rate 85.71 Lost workday case rate 0.00 Health and safety citations 28.57 Health and safety fines 0.00 Social community investment 14.29 Employee turnover rate 42.86 Women in management 100.00 Sexual harassment 50.00 Customer wellness and nutrition 80.00

www.roberts.cmc.edu 146 Sustainability Reporting of the World's Largest Food Retail Companies A+ Woolworths

Woolsworths has an obvious commitment to environmental and social sustainability, as demonstrated by its extensive Sustainability Management information, Environmental Quantitative data, and social community investment. Especially in a difficult economic time, the company managed to increase its community giving by 71.60%. The company's obvious commitment has also been recognized by the Dow Jones Sustainabiliy Index for the World and Asia/Pacific, and by an A+ rating from the GRI Index as well.

Overall Grade: A+ Environmental Grade: A Social Grade: A+

Comparison with sector averages Source of points Distribution of points

88 92 77 ESA 53 48 E 27 S Woolw orths 56% 44% E EI SI ER SR EP SP 0255075100

Sustainability Management Topics Woolsworths has substantial Sustainability Management reporting. It could further improve its PSI score, however, through focusing on improving reporting on its environmental management system. It has been recognized for its efforts by the Dow Jones Sustainability Index for the World and Asia/Pacific indexes. It also received an A+ rating from the Global Reporting Initiative for its sustainability reporting practices.

Topics Percent Coverage Environmental impediments and challenges 100 Environmental policy statement 100 Climate change/global warming 100 Habitat/ecosystem conservation 50 Biodiversity 100 Green purchasing 100 Environmental education 100 Environmental management structure 100 Environmental management system 0 Environmental accounting 50 Stakeholder consultation 100

www.roberts.cmc.edu 147 Sustainability Reporting of the World's Largest Food Retail Companies Social visionary statement 100 Social impediments and challenges 100 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 100 supplier management Health and safety, or social organizational structure 100 Workforce profile: age 50 Workforce profile: gender 100 Workforce profile: ethnicities/race 100 Emergency preparedness program 50 Third-party validation 100 Employment for individuals with disabilities 100 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 100 Animal Welfare 100 Sustainable Seafood 100 Report contact person 100 Environmental visionary statement 100

Environmental Topics The company provides extensive Environmental Quantiative data. Especially, its $55.7 million in energy efficiency across the business is notable. Furthermore, through efforts suh as this investment, the company projects a 10.9% decrease in carbon emissions in 2011 with business as usual projections. The company managed to divert 213,105 tonnes from landfills as well.

Topics Percent Coverage Energy used (total) 71.43 Renewable energy used 42.86 Water used 85.71 Waste recycled: solid waste 71.43 Waste (office) recycled 0.00 Waste (solid) disposed of 57.14

www.roberts.cmc.edu 148 Sustainability Reporting of the World's Largest Food Retail Companies Waste (hazardous) produced 28.57 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00 Environmental expenses and investments 71.43 Fines (environmental) 28.57 Greenhouse gases (or CO2 equivalents), total 85.71 Green food purchasing 40.00

Social and Human Rights Topics Woolworths also had a very solid performance in the social qualitative and human rights topic areas. The one area that could use improvement is the Social Quantitative section, specifically the reporting of accident rates and the overall lost workday rate. These values need to be made more explicit and quantified, rather than just discussed. Woolworth's should be applauded though for it's 71.6% increase in local communities invesments escpecially during such a difficult economic time when most other companies have not had an improvement in this particular area.

Topics Percent Coverage Anti-corruption practices 50.00 Bribery 50.00 Political contributions 14.29 Degrading treatment or punishment of employees 50.00 Elimination of discrimination in respect to employment and 64.29 occupation Free association and collective bargaining of employees 50.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 50.00 Reasonable working hours 50.00 Effective abolition of child labor 50.00 Community development 80.00 Employee satisfaction surveys 40.00 Community education 40.00 Occupational health and safety protection 100.00 Employee volunteerism 60.00 Recordable incident/accident rate 42.86 Lost workday case rate 71.43

www.roberts.cmc.edu 149 Sustainability Reporting of the World's Largest Food Retail Companies Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 100.00 Employee turnover rate 57.14 Women in management 100.00 Sexual harassment 50.00 Customer wellness and nutrition 100.00

www.roberts.cmc.edu 150 Sustainability Reporting of the World's Largest Food Retail Companies D X5 Retail Group

X5 Retail group currently has the foundations of sustainability reporting. The company addresses some fundamental areas in Sustainability Management, Environmental Quantitative Data, and Social Quantitative data. However, increasing the scope and thoroughness of the report as well as quantifying more information would improve the PSI score.

Overall Grade: D Environmental Grade: D- Social Grade: D

Comparison with sector averages Source of points Distribution of points

E 31 ESA 12 6 27% 2 0 0 X5 Retail Group S E 73 % EI SI ER SR EP SP 0255075100

Sustainability Management Topics X5 Retail Group has the basis for improved Sustainability Management reporting in the future. However, there is much for the company to still improve upon.

Topics Percent Coverage Environmental visionary statement 100 Environmental impediments and challenges 0 Environmental policy statement 0 Climate change/global warming 0 Habitat/ecosystem conservation 0 Biodiversity 0 Green purchasing 0 Environmental education 0 Environmental management structure 0 Environmental management system 0 Environmental accounting 0 Stakeholder consultation 0 Social visionary statement 100

www.roberts.cmc.edu 151 Sustainability Reporting of the World's Largest Food Retail Companies Social impediments and challenges 0 Social policy statement 100 Code of conduct or business ethics 100 Supplier screening based on social or environmental performance/ 0 supplier management Health and safety, or social organizational structure 0 Workforce profile: age 0 Workforce profile: gender 0 Workforce profile: ethnicities/race 0 Emergency preparedness program 0 Third-party validation 0 Employment for individuals with disabilities 0 Employee training for career development 100 Locally grown organic food 100 Environmental labelling 0 Animal Welfare 0 Sustainable Seafood 0 Report contact person 0

Environmental Topics X5 Retail group only mentions its energy usage, but fails to even discuss any other area related to Environmental Quantitative or Environmental Qualitative reporting in its report. Thus, more coverage of these areas and quantiative data would improve the company's PSI score.

Topics Percent Coverage Energy used (total) 14.29 Renewable energy used 0.00 Water used 0.00 Waste recycled: solid waste 0.00 Waste (office) recycled 0.00 Waste (solid) disposed of 0.00 Waste (hazardous) produced 0.00 Waste (hazardous) released to the environment 0.00 Notices of violation (environmental) 0.00

www.roberts.cmc.edu 152 Sustainability Reporting of the World's Largest Food Retail Companies Environmental expenses and investments 0.00 Fines (environmental) 0.00 Greenhouse gases (or CO2 equivalents), total 0.00 Green food purchasing 0.00

Social and Human Rights Topics

Topics Percent Coverage Anti-corruption practices 0.00 Bribery 0.00 Political contributions 0.00 Degrading treatment or punishment of employees 0.00 Elimination of discrimination in respect to employment and 0.00 occupation Free association and collective bargaining of employees 0.00 Fair compensation of employees 0.00 Elimination of all forms of forced and compulsory labor 0.00 Reasonable working hours 0.00 Effective abolition of child labor 0.00 Community development 40.00 Employee satisfaction surveys 0.00 Community education 40.00 Occupational health and safety protection 0.00 Employee volunteerism 0.00 Recordable incident/accident rate 0.00 Lost workday case rate 0.00 Health and safety citations 0.00 Health and safety fines 0.00 Social community investment 0.00 Employee turnover rate 0.00 Women in management 0.00 Sexual harassment 0.00 Customer wellness and nutrition 0.00

www.roberts.cmc.edu 153 Sustainability Reporting of the World's Largest Food Retail Companies www.roberts.cmc.edu 154 Sustainability Reporting of the World's Largest Food Retail Companies EI 1 Report contact person 4 Discussion -Discussion: identifies the person specifically designated to Initiatives/Actions answer questions about the report or sustainability issues. Investor relations or public relations contact representatives are not valid contacts for this question. -Initiatives/actions: to facilitate such contact, i.e. providing email address, phone number, or a link for feedback and questions. Links: 2 Environmental visionary statement 5 Discussion -Discussion: includes a clear visionary statement expressing an Initiatives/Actions organizational commitment to good environmental performance. -Initiatives/actions: include measures to fulfill that commitment. Links: 3 Environmental impediments and challenges 6 Discussion -Discussion: of impediments and challenges faced by the Initiatives/Actions organization in attempting to realize its environmental vision and commitments. -Initiatives/actions: include measures to overcome them. Links: 4 Environmental policy statement 9 Discussion -Discussion: includes a formal statement of the organization's Initiatives/Actions environmental policy or plan. -Initiatives/actions: include a description of how the policy is being implemented. Links: 5 Climate change/global warming 10 Discussion -Discussion: of the organization's position on climate change Initiatives/Actions and/or global warming. -Initiatives/actions: include measures taken by the organization to decrease its contribution to climate change. Links: 6 Habitat/ecosystem conservation 11 Discussion -Discussion: of the organization's position on conserving Initiatives/Actions natural ecosystems and habitat. -Initiatives/actions: taken to increase conservation of natural ecosystems either associated with or separate from the organization's business activities. Links: Appendix 1: PSI Questionnaire, Page 1 of 17 www.roberts.cmc.edu 155 Sustainability Reporting of the World's Largest Food Retail Companies 7 Biodiversity 12 Discussion -Discussion: of the organization's position on biodiversity. Initiatives/Actions -Initiatives/actions: taken by to the organization to foster biodiversity. Links: 8 Green purchasing 13 Discussion -Discussion: about preferential purchasing of eco-friendly Initiatives/Actions (non-polluting, recycled, recyclable, etc.) products. -Initiatives/actions: taken to implement such purchasing. Links: 9 Environmental education 16 Discussion -Discussion: of efforts to promote environmental education Initiatives/Actions and awareness of employees, the general public, or children. -Initiatives/actions: taken to provide such education. Links: 10 Environmental management structure 19 Discussion -Discussion: of the organization's environmental management Initiatives/Actions structure or staffing. -Initiatives/actions: include identification of individuals currently holding the staff positions. Links: 11 Environmental management system 20 Discussion -Discussion: includes a statement of adoption of ISO 14001 or Initiatives/Actions other formal environmental management system. -Initiatives/actions: include information on the extent to which the system has been implemented. Links: 12 Environmental accounting 21 Discussion -Discussion: of environmental expenditures. Initiatives/Actions -Initiatives/actions: include detailed accounting of such expenditures. Links: 13 Stakeholder consultation 23 Discussion -Discussion: of consultation and dialogue with stakeholders Initiatives/Actions about the organization's environmental aspects or impacts. -Initiatives/actions: include identification of specific consultation activities. Links: 14 Environmental labelling 259 Discussion Efforts to label products that are environmentally-friendly. Initiatives/Actions Links:

Appendix 1: PSI Questionnaire, Page 2 of 17 www.roberts.cmc.edu 156 Sustainability Reporting of the World's Largest Food Retail Companies 15 Locally grown organic food 316 Discussion -Discussion: the city has implemented a program to encourage Initiatives/Actions the use of locally grown organic food in all city facilities including schools. -Initiatives/actions: the city has a numerical goal for the percentage of locally grown organic foods used and a stated time frame for achieving it. Links: 16 Animal Welfare 374 Discussion -Discussion: Description of practices to ensure humane Initiatives/Actions treatment of animals and to avoid any form of unnecessary torture. -Initiative: Action taken to ensure animal welfare. Links: 17 Sustainable Seafood 375 Discussion -Discussion: Measures to ensure seafood is from sustainably Initiatives/Actions managed seafood farms that do not disrupt biodiversity or exploit resources. -Initiative: Action taken to ensure sustainable seafood. Links: SI 1 Workforce profile: ethnicities/race 17 Discussion -Discussion: of racial or ethnic distribution of workforce. Initiatives/Actions -Initiatives/actions: taken to avoid racial or ethnic discrimination. Links: 2 Workforce profile: gender 18 Discussion -Discussion: of gender distribution of workforce. Initiatives/Actions -Initiatives/actions: taken to avoid gender discrimination and achieve appropriate balance Links: 3 Social visionary statement 42 Discussion -Discussion: includes a clear visionary statement expressing an Initiatives/Actions organizational commitment to good social performance. -Initiatives/actions: include measures taken to fulfill that commitment. Links:

Appendix 1: PSI Questionnaire, Page 3 of 17 www.roberts.cmc.edu 157 Sustainability Reporting of the World's Largest Food Retail Companies 4 Social impediments and challenges 43 Discussion Discussion: of impediments and challenges faced by the Initiatives/Actions organization in attempting to realize its social vision and commitments. Initiatives/actions: include measures taken to overcome them. Links: 5 Social policy statement 45 Discussion -Discussion: includes a formal statement of the company's Initiatives/Actions social policy or plan. -Initiatives/actions: include a description of how the policy is being implemented. Links: 6 Code of conduct or business ethics 47 Discussion -Discussion: includes a formal organizational code of conduct Initiatives/Actions or of ethical behavior. -Initiatives/actions: include measures to assure that the code of conduct is followed. Links: 7 Supplier screening based on social or environmental 49 Discussion performance/ supplier management -Discussion: or description of procedures to evaluate and Initiatives/Actions select suppliers on their ability to meet the requirements of the company's social or environmental policy and principles. -Initiatives/actions: include measures to implement or assure such screening or selection. Links: 8 Health and safety, or social organizational structure 51 Discussion -Discussion: of organizational structure or staffing for Initiatives/Actions ensuring health and safety or social responsibility. -Initiatives/actions: include identification of the individuals currently holding the staff positions. Links: 9 Workforce profile: age 52 Discussion -Discussion: of age distribution of workforce. Initiatives/Actions -Initiatives/actions: include measures taken to avoid age discrimination or to encourage a balanced age structure. Links:

Appendix 1: PSI Questionnaire, Page 4 of 17 www.roberts.cmc.edu 158 Sustainability Reporting of the World's Largest Food Retail Companies 10 Emergency preparedness program 53 Discussion -Discussion: of emergency preparedness programs to prepare Initiatives/Actions employees or the public to cope with potential emergencies at the organization's facilities. -Initiatives/actions: include measures taken to implement such programs. Links: 11 Third-party validation 54 Discussion -Discussion: of the value (or lack thereof) of third-party Initiatives/Actions auditing or validation. -Initiatives/actions: include formal auditing or validation by a qualified external third-party source. Links: 12 Employment for individuals with disabilities 80 Discussion -Discussion: of appropriate actions to accommodate Initiatives/Actions employees with disabilities. -Initiatives/actions: taken to implement such accommodations. Links: 13 Employee training for career development 82 Discussion -Discussion: of training, skills and learning programs Initiatives/Actions appropriate to support employees' upward mobility. -Initiatives/actions: taken to implement such training. Links: ER 1 Green food purchasing 166 Discussion Amount of food purchases come from local or organic Initiatives/Actions sources, sustainable farms, or sustainable fisheries. Context Improvement Over Previous Links: ER

Appendix 1: PSI Questionnaire, Page 5 of 17 www.roberts.cmc.edu 159 Sustainability Reporting of the World's Largest Food Retail Companies 1 Greenhouse gases (or CO2 equivalents), total 83 Discussion The sum of all greenhouse gases released, which could include Context CO2, CH4 (methane), N2O (nitrous oxide), SF6 (Sulphur hexafluoride), PFCs (Perfluorocarbons) and HFCs Goal (hydrofluorocarbons). Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links: 2 Fines (environmental) 40 Discussion Government imposed fines for environmental infractions. Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links:

Appendix 1: PSI Questionnaire, Page 6 of 17 www.roberts.cmc.edu 160 Sustainability Reporting of the World's Largest Food Retail Companies 3 Environmental expenses and investments 39 Discussion An accounting of money spent or invested specifically to Context decrease environmental damage or to benefit the environment. Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links: 4 Notices of violation (environmental) 38 Discussion Notices of violation (NOVs) for environmental infractions. Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links:

Appendix 1: PSI Questionnaire, Page 7 of 17 www.roberts.cmc.edu 161 Sustainability Reporting of the World's Largest Food Retail Companies 5 Waste (hazardous) released to the environment 37 Discussion Amounts of hazardous materials released into the Context environment, total (TRI, PRTR, HAP (Hazardous Air Pollutants), and similar indices), may include mercury or Goal lead. Depending on the nationality of the organization, this Current Period Quantitative Data could be labeled "TRI" (Toxic Release Inventory), "substance releases," or something else. Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links: 6 Waste (hazardous) produced 35 Discussion Sum of all hazardous materials remaining after production, Context irrespective of final disposition. Hazardous wastes include items identified as TRI, PRTR, HAP (Hazardous Air Goal Pollutants), and similar indices, and may include mercury or Current Period Quantitative Data lead. Depending on the nationality of the organization, this could be labeled "TRI" (Toxic Release Inventory,) "substance Previous Quantitative Data releases" , or something else. Improvement Over Previous Year Data Values Units

Links:

Appendix 1: PSI Questionnaire, Page 8 of 17 www.roberts.cmc.edu 162 Sustainability Reporting of the World's Largest Food Retail Companies 7 Waste (solid) disposed of 34 Discussion Includes solid hazardous and non-hazardous waste landfilled, Context incinerated, or transferred. Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links: 8 Waste (office) recycled 32 Discussion Office recycling of paper, cardboard, metal, or plastic. Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links:

Appendix 1: PSI Questionnaire, Page 9 of 17 www.roberts.cmc.edu 163 Sustainability Reporting of the World's Largest Food Retail Companies 9 Waste recycled: solid waste 30 Discussion Sum of all solid waste recycled, including hazardous waste. Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links: 10 Water used 29 Discussion Sum of all water used during operations. Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links:

Appendix 1: PSI Questionnaire, Page 10 of 17 www.roberts.cmc.edu 164 Sustainability Reporting of the World's Largest Food Retail Companies 11 Renewable energy used 27 Discussion Energy used from renewable sources such as wind, solar, Context hydroelectric, or other renewable sources. Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links: 12 Energy used (total) 26 Discussion Sum of the energy used by the organization in all different Context forms, including electricity, fuel, natural gas and others. Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links: SR 1 Customer wellness and nutrition 196 Discussion Efforts to help improve the user's wellness and nutrition, Initiatives/Actions including food safety. Context Improvement Over Previous Links:

Appendix 1: PSI Questionnaire, Page 11 of 17 www.roberts.cmc.edu 165 Sustainability Reporting of the World's Largest Food Retail Companies 2 Women in management 2 Discussion Relative numbers of women in management. Initiatives/Actions Context Improvement Over Previous Links: 3 Employee volunteerism 72 Discussion Efforts to promote employee volunteerism in social or Initiatives/Actions environmental projects. Context Improvement Over Previous Links: 4 Occupational health and safety protection 70 Discussion Efforts to provide a safe and healthy working environment at Initiatives/Actions all sites. Context Improvement Over Previous Links: 5 Community education 68 Discussion Efforts to support education in the communities where the Initiatives/Actions company is located. Context Improvement Over Previous Links: 6 Employee satisfaction surveys 67 Discussion Surveys to monitor employee satisfaction. Initiatives/Actions Context Improvement Over Previous Links: 7 Community development 66 Discussion Efforts to participate in social activities that improve the Initiatives/Actions quality of life of communities including that of indigenous people, where the organization operates. Context Improvement Over Previous Links: SR

Appendix 1: PSI Questionnaire, Page 12 of 17 www.roberts.cmc.edu 166 Sustainability Reporting of the World's Largest Food Retail Companies 1 Employee turnover rate 3 Discussion Annual employee turnover rate. Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links: 2 Social community investment 81 Discussion Amount of money spent on community outreach, including Context education grants, donations, and relief effort funds. Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links:

Appendix 1: PSI Questionnaire, Page 13 of 17 www.roberts.cmc.edu 167 Sustainability Reporting of the World's Largest Food Retail Companies 3 Health and safety fines 77 Discussion Fines levied against a company for health and safety violations. Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links: 4 Health and safety citations 76 Discussion Number of health and safety citations or notices of violation. Context If it is stated that there were none, check lines 1,2,3, 4, and 6. Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links:

Appendix 1: PSI Questionnaire, Page 14 of 17 www.roberts.cmc.edu 168 Sustainability Reporting of the World's Largest Food Retail Companies 5 Lost workday case rate 75 Discussion Number of employee injuries or illnesses that resulted in one Context or more lost workdays. Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links: 6 Recordable incident/accident rate 74 Discussion Number of employee incidents or accidents, such as: “total Context case incident rate,” “incident rate,” or "accident rate." Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Units

Links: SR 1 Sexual harassment 1 Adoption of Policy Rejection of any form of sexual harassment. Action to Reinforce Policy Monitoring Quantiative Indication of Compliance

Links:

Appendix 1: PSI Questionnaire, Page 15 of 17 www.roberts.cmc.edu 169 Sustainability Reporting of the World's Largest Food Retail Companies 2 Effective abolition of child labor 65 Adoption of Policy Rejection of illegal child labor by the company or its affiliates. Action to Reinforce Policy Monitoring Quantiative Indication of Compliance

Links: 3 Reasonable working hours 64 Adoption of Policy Compliance with applicable laws and industry standards on Action to Reinforce Policy working hours, including overtime. Monitoring Quantiative Indication of Compliance

Links: 4 Elimination of all forms of forced and compulsory labor 63 Adoption of Policy Assurance that all employees enter employment with the Action to Reinforce Policy company of their own free will, not by compulsion. Monitoring Quantiative Indication of Compliance

Links: 5 Fair compensation of employees 62 Adoption of Policy Assurance that wages paid meet or exceed legal or industry Action to Reinforce Policy minimum standard. Monitoring Quantiative Indication of Compliance

Links: 6 Free association and collective bargaining of employees 61 Adoption of Policy Efforts to respect the right of employees to form and join Action to Reinforce Policy trade unions of their choice and to bargain collectively. Monitoring Quantiative Indication of Compliance

Links: 7 Elimination of discrimination in respect to employment 60 Adoption of Policy and occupation Action to Reinforce Policy Commitment not to engage in any kind of discrimination based on ethnicity, caste, religion, disability, sex, age, sexual Monitoring orientation, union membership, or political affiliation in hiring practices or employee treatment. Quantiative Indication of Compliance

Links:

Appendix 1: PSI Questionnaire, Page 16 of 17 www.roberts.cmc.edu 170 Sustainability Reporting of the World's Largest Food Retail Companies 8 Degrading treatment or punishment of employees 59 Adoption of Policy Commitment to oppose any corporal/hard labor punishment, Action to Reinforce Policy mental/physical coercion, or verbal abuse. Monitoring Quantiative Indication of Compliance

Links: 9 Political contributions 7 Adoption of Policy Policy about political contributions. Action to Reinforce Policy Monitoring Quantiative Indication of Compliance

Links: 10 Bribery 8 Adoption of Policy Rejection of bribery Action to Reinforce Policy Monitoring Quantiative Indication of Compliance

Links: 11 Anti-corruption practices 58 Adoption of Policy Efforts to uphold the highest standards of business ethics and Action to Reinforce Policy integrity. May be found under a Code of Conduct. Monitoring Quantiative Indication of Compliance

Links:

Appendix 1: PSI Questionnaire, Page 17 of 17 www.roberts.cmc.edu 171 Sustainability Reporting of the World's Largest Food Retail Companies Ahold, Carrefour, Cencosud, China R esou rces Ent erpri se, Col r uyt,

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Claremont McKenna College HerbalifeClaremont McKenna College, a member, J of theSainsbury Claremont Colleges, is a highly selective,, independent,Jeronim coeducational, o Martinsresidential, undergraduate, liberal Kesko arts college with a curricular, Kroger emphasis on economics, government,, Lawson and public , The Claremont Colleges Metcash, Metro AG, Metro Inc, found only at much larger universities. The consortium members include Claremont McKenna College, Harvey Mudd College, Pitzer College, Pomona College, Scripps College, Keck Graduate Institute of Applied Life Sciences, and the Clremont Graduate University which—includes the Peter F. Drucker and Masatoshi Ito Graduate School of Safeway,Management. Seven & I Holdings, Shoprite Holdings,Contact Informatio Stater'sn Bros Inc., Supervalu, Dr. J. Emil Morhardt, Director, Phone: 909-621-8190, email: [email protected] Elgeritte Adidjaja, Research Fellow, Phone: 909-621-8698, email: [email protected] SyscoRoberts Environmental, Tesco Center, Claremont McKenna, Wesfarmers College, 925 N. Mills Avenue, Claremont, CA, 91711-5916, Whol USA. e Foods Market , W m Morrison Supermarkets, Woolworths, and X5 Ret a i l G rou p