Corporate Responsibility Review 2019 Introduction a View from Our Chairman, Stephen Rubin 3

Pentland Group Corporate Responsibility Review 2019 Introduction A view from our Chairman, Stephen Rubin 3

Who we are 5

UN Global Compact 9

2019: a year in review 11 This Pentland Group Corporate Responsibility Review evaluates the progress we made in 2019, Corporate Responsibility and outlines our plans for 2020. at Pentland Brands Limited You can view our previous Positive Business strategy 18 Corporate Responsibility Brands with purpose 19 reviews here. Our footprint 32

Our future 44

Corporate Responsibility at JD Sports Fashion plc People 51

Energy and the environment 56

Ethical sourcing 61

The JD Foundation 64

2 A view from our Chairman, Stephen Rubin

Looking back at 2019, it is clear that the business performance benchmarks and working towards its broader The Rubin Foundation continued to support charities context for corporate responsibility has changed ambition for all its existing global operations to be powered focused on climate change, inequality and education. considerably. Building a sustainable business has by renewable energy by 2025. The Foundation continued to support the Pentland never been more important to our stakeholders - Centre for Sustainability at Lancaster University, Our people remain at the heart of what we do, and our our people, our partners and our consumers. funding disadvantaged young entrepreneurs through employees play a vital role in our success. Pentland Brands The Princes Trust and a public policy scholarship for As one of the original members of the UN Global continues to champion diversity and inclusion (D&I), developing countries with UCL. The JD Foundation Compact, and continued advocate of the UN with three D&I networks in the UK and a working group continued to support charities working with Sustainable Development Goals, I am pleased with in Asia playing a vital part in shaping its initiatives. In disadvantaged young people in the UK focused on the progress of our businesses in supporting and September 2019, it celebrated its third Global Inclusion mental health and homelessness. Pentland Brands fulfilling our sustainability ambitions in 2019. Week, which saw employees come together to discuss continued to support charity partners in communities ideas for improvement. Pentland Brands Limited accelerated its Positive where they operate working to help disadvantaged Business strategy, sharing plans and ambitions A key focus area for our businesses is to maintain an ethical young people through empowerment and sport. to take action for people and our planet. This new supply chain where people are treated fairly, honestly and I am proud of the progress our businesses have made direction is driven by employees, who are passionate with respect. Both Pentland Brands and JD have evolved in 2019 and I am confident in their ability to build on and like-minded individuals, and believe in building their approaches to ethical sourcing, with Pentland Brands this in the years to come. Together, we will continue a better future for the world we live in. obtaining ‘achiever’ level with the Ethical Trading Initiative to take action for the causes that we believe in, working (ETI) and JD introducing its new Code of Practice, to JD Sports Fashion Plc continues to recognise the together to make a difference and create a positive ensure all products created by its brands and suppliers importance of protecting the environment and environmental and social impact. I look forward are manufactured in safe and fair conditions. minimising the impact of its operations. It has to sharing our progress with you. taken steps to advance its reputation as a sustainable The Group continued to give back to those in need Stephen Rubin organisation by participating in environmental during the year in a number of different ways. Chairman, Pentland Group

3 COVID-19

While this report is a reflection You can read more about on 2019, we acknowledge that the Pentland Brands’ response impact of COVID-19 on our corporate to COVID-19 here. responsibility activities has been You can read more about JDs’ extensive and far-reaching and will response to COVID-19 here. continue through 2020 and beyond. Our priority remains the wellbeing of our people, partners, customers and consumers, alongside building a sustainable business.

4 Who we are

5 About Pentland Group

We are a family-owned business Brands, Pentland Retail and that owns and invests in companies Pentland Investments. Pentland to create value for stakeholders. Investments

We take a long-term view on Pentland Brands Through our Pentland Investments developing and positioning our Our Pentland Brands division is division, we are a shareholder in brands, we are passionate about the name behind some of the world’s companies such as Hunter Boot our people and committed to best sports, outdoor and lifestyle Ltd and Tracksmith. We also invest being good corporate citizens. brands. These include Speedo, in businesses across a number of Berghaus, Canterbury of New different industries. Pentland Group employs over Zealand, ellesse, Endura, SeaVees, 50,000 people and has annual Included in this Corporate KangaROOS and Mitre. sales of $6.4 billion. Responsibility review are businesses with an annual revenue of over £500 Pentland Retail million, in which Pentland Group How we work Our retail division comprises the owns a majority share. The scope is Our businesses are changing activities of JD Sports Fashion plc, therefore Pentland Brands Limited rapidly, but our people and our the UK’s leading retailer of branded and JD Sports Fashion plc. values remain at the heart of sportswear, fashion and outdoor what we do. We have three clothing and equipment, in which business divisions: Pentland Pentland Group holds a 55% share.

6 Our story

Pentland Group took its first steps Honesty, respect, and hard work as the Liverpool Shoe Company run through all that we do. in 1932. Founded by Minnie and Our focus is building long- Berko Rubin, what began as a small term, sustainable businesses shoe business expanded until we that adapt to the changing were both a manufacturer and environment. We aim to make a wholesaler of footwear. a positive impact through our As a family-owned company, doing businesses, our products, our business responsibly has been services and our communities. important to us from the beginning. Our Business Standards set out our expectations for ourselves, our partners and our suppliers to ensure that we continue to do business in the right way.

7 Our approach

We believe in doing the right thing, We partner with NGOs, academics not the easy thing – as individuals and others in our industry to and as an organisation. That create change for the better and means doing business ethically, give back to our communities. supporting our people, minimising our impact on the environment and partnering with others to drive our sustainability agenda.

All Group companies, in which we hold 50% or more equity, are required to comply with our policies and we use our influence to help others increase their impact where we can.

8 Topic UN Global Compact Principle Location in our report

UN Global Compact Human rights 1. Businesses should support and 32, 61 respect the protection of internationally proclaimed human rights; and 2. make sure that they are not complicit 32, 61 in human rights abuses

Labour 3. Businesses should uphold the freedom 32, 61 We are a signatory of the UN Global of association and the effective recognition Compact and fully support its ten of the right to collective bargaining; principles on human rights, labour, 4. the elimination of all forms of forced 32, 62 environment and anti-corruption. and compulsory labour; This report details the contribution 5. the effective abolition of child 32, 62 our business divisions have made to labour; and each of the ten principles in 2019. 6. the elimination of discrimination in 39, 50 respect of employment and occupation

Environment 7. Businesses should support a 42, 55 precautionary approach to environmental challenges; 8. undertake initiatives to promote 42, 55 greater environmental responsibility; and 9. encourage the development and diffusion 42, 55 of environmentally friendly technologies

Anti-corruption 10. Businesses should work against 32, 50 corruption in all its forms, including extortion and bribery

9 UN Global Compact

We are committed to supporting the UN Sustainable Development Goals, which address the global challenges faced by our planet. We have selected the eight goals where we believe we can make the biggest difference.

10 2019: a year in review

2019 saw progress across our business divisions in areas covering sustainability, social impact and supply chain. Here are some highlights.

11 Pentland Brands Limited

Nurturing brands Leaving a positive with purpose footprint • Speedo championed diversity and • Pentland Brands progressed to level • It also pushed ahead with its inclusion through its sponsorship ‘achiever’ with the Ethical Trading sustainability agenda, building a programme, pledging to support Initiative (ETI), for strengthening sustainable materials library for Paralympic teams in Tokyo 2021 and its approach to ethical trade its tier two footwear suppliers renewing its sponsorship of Team through NGO collaboration, multi- and rolling out 100% recyclable GB at the next Invictus Games. stakeholder initiative representation packaging across six of its and monitoring for improvement. brands’ e-commerce websites. • Endura established its 1 Million Trees initiative – a pledge to • The business hosted a Global plant one million trees each year Inclusion Week, celebrating what in a bid to make a difference to it means to be a diverse business global warming. and starting the conversation about how we can do more in this area.

12 Pentland Brands Limited

Collaborating and connecting • Pentland Brands set up a Sustainability Steering committee and working group to drive sustainability initiatives across the business.

• It continued to collaborate with its charity partners, working towards its goals of inspiring 5,000 young people across the UK to get involved in sport and empowering 10,000 women in disadvantaged communities by 2021.

13 JD Sports Fashion plc

People Energy and • JD takes a holistic approach to environment promote health and wellbeing • JD has advanced its reputation as through its different business a sustainable organisation through areas. 2019 saw the introduction participation with RE100 (the of Wellbeing Champions; 161 world’s most influential companies, individuals selected and trained committed to 100% renewable on how to spot signs of modern power) to demonstrate its public slavery and how to support commitment to renewable energy. employees experiencing mental health difficulties.

• JDs’ training strategy has been developed to allow First Aid and Mental Health First Aid training to be available to all employees.

14 JD Sports Fashion plc

Ethical sourcing The JD Foundation • 2019 saw the introduction of JD’s • The JD Foundation supports Code of Practice, encompassing charities working with its policies in a concise document disadvantaged young people for its suppliers and brands in the UK. In 2019 it supported to ensure all products are 18 charities with a focus on manufactured in conditions physical health, mental health that are fair and safe. and homelessness.

• From October 2019 to March 2020, 2.1 million products were made from sustainable materials.

15 Reducing our footprint Year on Year

2017 - 18 tCO2 2018 - 19 tCO2 We aim to minimise our impact on total 38, 330 total 32, 464 the environment. We report our greenhouse gas emissions at Group Elec 33, 713 Elec 27, 706 level in line with the requirements of Gas 4, 617 Gas 4, 758 the Carbon Reduction Commitment Energy Efficiency scheme. This includes emissions from the energy we use in Pentland Brands’ offices and distribution centres and in the operations and retail stores run by JD Sports Fashion plc in the UK.

In 2019, Pentland Group’s carbon footprint decreased by around 15% compared to 2018, from 38,330 tonnes to 32,464 tonnes. This is the result of a drive to reduce emissions across the Group. Change vs Last Year total -15% 16 The Pentland Centre for Sustainability in Business

The Pentland Centre for Sustainability This science communications event, in Business at Lancaster University focussed on the global impact of was founded in 2015. The Group Arctic Change, involves scientists continues to sponsor the centre which and climate activists camping at supports innovative sustainability a prominent location in Davos, research to find practical solutions to and interacting with delegates social and environmental challenges. at the WEF annual meeting.

2019 saw the Centre continue its The Centre has also continued to focus on bringing robust research enhance business understanding insights to bear informing board-level of the financial impacts from development of business sustainability climate risks and participate in strategies. A highlight was informing research into sustainable supply sustainability dialogues at the World chain management. Economic Forum (WEF), during which it continued its established Arctic Basecamp at Davos event.

17 Corporate responsibility at Pentland Brands Limited

A positive business, taking action for people and our planet.

18 Corporate responsibility at Pentland Brands Limited

In 2019, Pentland Brands decided In essence, it means… to take an accelerated approach Owning its footprint • Operating sustainably, taking to building a positive business. • Focusing on wellbeing, creating positive action to reduce its diverse, inclusive and green It spoke to people across its impact on the world we live in. workplaces in which its organisation, analysed the efforts • Having a positive impact on its people can be at their best. of similar businesses and looked employees, partners, communities Having a transparent supply closely at its operations to work and consumers. chain where workers are out what it could change. The result empowered. Delivering on is its Positive Business strategy; Which in practice, equates to… its environmental targets. three targeted pillars setting out its ambitions in the areas they believe Building purpose- they can make the biggest difference. Circularity and led brands collaboration Positive Business means that • Building brands that sell products working ethically, transparently and Partnering with industry bodies, to support health, wellbeing and sustainably is the responsibility of academic institutions and charities confidence with products that are the entire organisation. By focusing to develop its industry expertise. made sustainably and enhance, on impact, it has created a plan Innovating for success and not not diminish, the communities that will allow Pentland Brands being afraid of change if it in which they operate. to achieve results faster, together. means improvement.

19 Brands with purpose

Pentland Brands’ purpose is ‘building brands for the world to love, generation after generation’.

Here’s a snapshot of how its brands have brought its Positive Business ambitions to life.

20 Speedo

Supporting people Speedo is proud to take an inclusive In support of its inclusive strategy, approach to sponsorship, supporting Speedo will champion swimmers athletes from a variety of backgrounds competing in the Tokyo Paralympic and championing their passion for the Games in 2021. The brand will pool. The brand recently announced support several teams as part of its plans to renew its role as official Team Speedo, as well as providing swimwear provider for Team UK as access to elite swimwear to part of the next Invictus Games; the allow unsponsored Olympic and international sporting competition Paralympic nations to compete. undertaken by wounded, injured or Since signing five-time Paralympic sick military service personnel. The gold medal winner Ellie Simmonds partnership will not only see Team as a brand ambassador in 2019, UK competitors kitted out with Speedo Speedo has continued to demonstrate Fastskin performance swimwear its belief that swimming should be for the main event in 2021, it will accessible to everyone – whatever also support hopefuls with gear for unique challenges they may face qualification and training events in along the way. the lead up to the Games.

21 Speedo

Protecting our planet Our oceans are at risk of being manufacturing by-products and contaminated by debris created from even carpet into first grade nylon single-use plastics. This poses a very fabric – creating a functional fabric real threat to marine life, as well as that’s also kind to the planet. human safety, water consumption The brand ensure that environmentally and climate change. friendly fabrics featured in its Speedo loves the water and believes collaboration with House Of Holland. it should be protected. This is a belief that is reflected in its products – H20 Active, its environmentally friendly fitness range, is created from 78% ECONYL® yarn. ECONYL is an innovative regenerated fibre which turns waste from fishing nets,

22 Berghaus

Supporting people Berghaus continues to encourage during winter callouts by donating people of all genders and backgrounds thousands of pounds worth of to improve their wellbeing by escaping waterproof and insulated jackets outdoors. Most recently, the brand from its specialist range. hosted the ‘Women In Adventure’ Berghaus is also working with speaker series at Kendal Mountain ex-professional rugby player Ed Festival, the UK’s main event for Jackson, supporting his most recent outdoor enthusiasts. Speakers expedition in which he became the included inspirational paraclimber, first person affected by quadriplegia Anoushé Hussain, and the Ice to summit the highest trekking peak Maidens, the first all-female team in Nepal. The brand will continue to cross Antarctica unsupported. working in partnership with Ed to In December 2019, Berghaus was adapt and create kit to support his proud to keep ambulance crews in future expeditions. the North East of England warm

23 Berghaus

Protecting our planet Berghaus creates products that are Berghaus is continuing to work to built to last and loved by people all reduce the environmental impact of over the world. To encourage people its products. Following a thorough to love their Berghaus products review of its range, and how it could throughout their lifetime, the brand be made more sustainably, the offers a product lifetime guarantee brand has committed that its t-shirt – committing to fix or replace any collection will be 100% organic item with a fault or defect within cotton by Spring/Summer 2021. its expected product lifetime. This You can find out more about how provides an alternative solution to Berghaus has been working to make clothing being sent to landfill and its products more sustainable on polluting the environment. It also page 37. gives consumers the option to fix their items rather than purchase new ones, saving materials and being kinder to the environment.

24 Canterbury

In celebration of the Rugby World As part of the campaign, the brand Cup 2019, Canterbury launched the introduced its #BePartOfGood ‘Be Part Of It’ campaign. Centered charity initiative, with Canterbury around togetherness in the rugby donating over £10,000 worth of community, the campaign brought rugby kit to schools to support together professional players, referees inclusivity in the game and encourage and fans of all ages and genders – more children to get active. demonstrating Canterbury’s belief that In partnership with the Rugby no individual is greater than the team. Football Union (RFU), Canterbury Celebrating inclusion in all its forms, continued its support of the All the campaign inspired community School programme. The programme spirit by depicting a wide array of invites schools to participate in rugby lovers standing shoulder to workshops to design a new school shoulder with players and officials to rugby kit. Canterbury turns the highlight that everyone can play their students’ drawings into kits worn part in the sport. by the school’s rugby team.

25 Endura

Supporting people Protecting our planet Endura stands for cycling, helping In a move to take action for the planet, aficionados and amateurs alike Endura has committed to planting one push physical boundaries every million trees annually. For its first project, day. The brand collaborated with Endura will work to restore mangroves in London-based bicycle manufacturer the Maputo Bay region of Mozambique. Brompton, to encourage Londoners Endura will help local communities to to cycle to work. With roughly 4 restore, replant and protect these vital million people commuting in London forest systems. It’s Endura’s ambition every year, Endura supported the to go above and beyond to create kit 80,000 Londoners beating the rush that has a minimal impact on the planet. on their bikes - helping them become The brand removed the water repellant fitter, smarter and healthier by compound PFC from its production taking part in the cycling revolution processes in Autumn 2018, so its latest sweeping cities across the world. generation of fabrics are PFC-free. As part of this commitment, Endura has put in place long-term measures to ensure its cycling ranges are made sustainably while maintaining the same high quality.

26 ellesse

Supporting people ellesse believes in bringing the Each style was branded with the best out of everybody effortlessly. statement ‘Me By Me’ in three Working with its global partners languages and encouraged women to be inclusive in style, pricing to express their uniqueness and gender, ellesse believes that through their style. celebrating diversity is crucial The brand also supports British to its success. wheelchair tennis player Alfie This year ellesse collaborated Hewett and will continue to work with Foot Locker to create the closely with him on his journey to ‘Me By Me’ collection for women. the Tokyo Paralympics in 2021. Embracing female identity in all its forms, the collection celebrated female empowerment.

27 ellesse

Protecting our planet Alongside supporting people to be at ellesse also collaborated with ASOS their best, ellesse has made inroads to produce a sustainable product into developing sustainable products. range specifically for the high In collaboration with its apparel street retailer. Created in both partner, the brand has developed men’s and women’s styles, the ‘Sustainable Tech’ - a selection of products were made from recycled apparel made from recycled fabrics, polyester. Plastic bottles and which will be part of its main range textile waste were used to create in Autumn/Winter 2020. new fibres, which saves water and reduces greenhouse gas emissions.

28 Kickers*

Supporting people Protecting our planet Kickers continues to prioritise Kickers is continuing to look at how it diversity and inclusion by making can reduce its environmental impact. its classic styles gender neutral, The brand undertook a review of its expanding its unisex range and ‘Back To School’ range to work out using models that inspire body how it could improve its materials. As positivity in its flagship campaigns. a result, it has switched all its cotton laces to BCI Cotton, approved by the Kickers will also partner to support Better Cotton Initiative. Its leather The Magic Breakfast Club which comes from tanneries accredited provides school breakfasts to by the Leather Working Group and disadvantaged children in the UK, the brand has also swapped its and the Young Women’s Trust polyester footwear linings to recycled which supports women aged 18-30 PET. Kickers is in the process of to get into work. transitioning to using 98% recycled material in all its sock linings for footwear, which will be implemented from Spring/Summer 2021.

*UK footwear license 29 Mitre

Two centuries of team spirit In 2019, Mitre was proud to Mitre continues to support the support the Homeless World Cup Walking Football Association, a Foundation – a pioneering charity unique sport for men and women which uses football to help change over 50 looking to play football in the lives of those living on the a safe and social environment. It’s streets. The brand donated 640 also supporting local charities in sets of training kit and 64 training Nottingham where the brand’s HQ is balls for all the teams taking part, based, donating footballs to causes plus 100 balls for the tournament. supporting disadvantaged children.

30 SeaVees

Supporting people Protecting our planet SeaVees is a timeless sneaker brand SeaVees believes nothing is more important for all people, and it is proud to than community and is committed to bettering celebrate its core values of equality, its shoes, people and the environment by inclusivity and diversity. A highlight ensuring that sustainability is integral to its was its collaboration with fashion business plans. Under the ‘1% For The Planet’ designer Trina Turk for its Pride initiative, it donates 1% of its gross sales collection, which was launched value to environmental causes. during Pride month in the USA. SeaVees is also bringing its sustainability Proceeds from the shoes sold via ambitions to life through its products. the SeaVees website and flagship Launched for Spring/Summer 2020, SeaVees store were donated to the Pride has created its first and almost completely Pacific Foundation - an organisation recycled men’s and women’s capsule collection, local to the brand’s office in Santa SeaChange. The brand is partnering with Barbara - that provides services for SeaTrees, a charity that helps fight climate the LGBTQ+ community. change by regenerating ocean ecosystems, to restore one foot of Californian kelp forest for every pair of SeaChange shoes sold.

31 Footprint Distribution and retail

Branded products / products to support Licensee our business / licensed products With suppliers in 22 countries around the world, Pentland Brands recognises that the impact of its supply chain is significant and far-reaching. It closely Product manufacturing monitors each stage of its production process, analysing how it can use its influence to protect people and the environment throughout the entirety of the product life cycle. Materials and components

Chemicals and dyes

Raw materials, farming and agriculture

32 An empowered, transparent and ethical supply chain

Pentland Brands is committed to • Child labour and doing business ethically, with a focus youngworker policy on supporting the environment and • Migrant worker policy communities in which it operates. It is working hard to tackle the risks • Homeworking policy of modern slavery and it strives to The Pentland Brands corporate protect rights and improve conditions responsibility team reports directly for everyone in its supply chain. to a member of its executive team All Pentland Brands tier 1 and works closely with the wider suppliers are required to sign its executive team to provide advice, Supplier Agreement and Corporate guidance and expertise in all supply Responsibility Charter to commit to chain-related issues. Our Standards in protecting people More information about how and the planet. Pentland Brands has Pentland Brands is working to create detailed policies in place to protect an empowered, transparent and vulnerable workers in its supply ethical supply chain can be found in chain, which are available on the its 2019 Modern Slavery report. Pentland Brands website:

33 Working with suppliers

Pentland Brands owns one factory in Scotland, through the Endura brand, and it co-owns four factories: three in Sri Lanka and one in Vietnam. It engages with its suppliers and partners to ensure working conditions are safe and that workers are paid fairly and treated with respect.

It is transparent about who it sources from because it means the factories are accountable for their standards and it can work in a way that’s both open and constructive. Pentland Brands publishes a list of the tier 1 suppliers that manufacture its products on its website.

Sourcing country 34 Working with suppliers

For its owned brands, Pentland Pentland Brands conducts regular Facilitating Brands sources directly from audits for all its tier 1 suppliers, to improvement 182 factories. For its licensed ensure compliance with its Our brands, it works with the licensee Standards. These audits are performed to influence conditions in their by a combination of certified third- sourcing factories. For both owned party audit providers, its corporate Supplier Training and licensee suppliers, Pentland responsibility team and other questionnaire Brands aims to provide maximum organisations, such as Better Work. support by stationing corporate responsibility officers in and around its sourcing locations. Initial Regular It has an established factory review audit audits process, which means that it is able to carry out monitoring from when it first considers working with a new supplier and regularly for the duration of the partnership.

35 Taking action Audits in 2019

If an issue is identified, the Pentland In 2019, Pentland Brands conducted You can find out more about the Brands corporate responsibility team 134 audits, compared with 104 in types and locations of the Pentland works with the factory to analyse 2018. Nine of these were part of Brands assessments, including the root cause, remedy the issue the Better Work programme. It details of issues remediated and and make lasting improvements to also carried out 17 Initiative for how they are supporting their working conditions in line with Our Compliance and Sustainability (ICS) suppliers, in the auditing section Standards. It recognises the impact audits as part of its joint venture of the Pentland Brands Positive that terminating a relationship with the Lacoste Group. Business report. with a supplier could have on The increase in audits is a result of their workforce so, where possible, changes in its internal corporate they avoid doing so. If a factory responsibility processes and consistently fails to comply with its procedures to increase audit Our Standards, Pentland Brands frequency, more information on will exit relationships responsibly, which can be found in the Pentland following the ACT Responsible Exit Brands Audit policy. It has also policy to minimise any negative onboarded new factories as a result impact on the factory employees. of bringing the production of ellesse apparel back in-house.

36 Ethical Trading Initiative (ETI)

Founded in 1998, the ETI is the Pentland Brands has aligned its “Responsible businesses have huge leverage in leading membership organisation work with the ETI principles by the countries they source from, enabling them to promoting respect for workers’ rights focusing on its purchasing practices, collaborate with national and local stakeholders, across the globe. Pentland Group has raising employee awareness of including governments, trade unions, NGOs been a member of the ETI since 1998 the signs of modern slavery and and other businesses, to drive change, ensure and since then, we’ve worked with developing its dedicated corporate labour laws are observed and workers’ rights are them to promote respect for workers’ responsibility resource. protected. ETI members are expected to work rights across the globe. with their suppliers to ensure the ETI Base Code is understood, applied, and observed, to drive In 2019, Pentland Brands was rated continuous improvement in working conditions, as ‘achiever’ level by the ETI, from to push for greater transparency within their a previous ‘improver’ level. It was supply chains to enable them to better identify, able to demonstrate an uplift in and mitigate the risk of modern slavery, and to factory activities beyond auditing, act quickly to remedy modern slavery wherever supporting its suppliers in delivering it is discovered.” its ethical principles, and a strong level of senior support. Ethical Trading Initiative

37 Materials

Pentland Brands maps its supply chain so it can better understand and manage Tier 1 – product assembly social and environmental risks. Its supply chain is made up of four tiers: Tier 2 – materials and components

Tier 3 – chemicals

Tier 4 - raw materials

38 Sourcing responsibly

Pentland Brands is committed to (LWG) and encourages its suppliers purchasing all its materials from to source leather from tanneries credible sources and it has clear awarded a LWG gold, silver or bronze policies for putting this into practice. certification. It also ensures that all down used in Berghaus jackets is The Pentland Brands Ethical certified to the Responsible Down Materials policy outlines its Standard (RDS); sourced from a standards for sourcing raw materials selection of nominated farms with responsibly, including materials high animal welfare requirements. derived from animals such as skins, down and feathers. It encourages You can find out more about how all its suppliers to source their Pentland Brands is using accredited materials in line with industry suppliers on page 44 of the Pentland best practice on animal welfare. Brands Positive Business report.

Consequently, Pentland Brands favours suppliers with sourcing accreditations. It is a member of the Leather Working Group

39 Creating a positive workplace

The Pentland Brands ambition is to create workplaces where people feel welcomed, supported and encouraged to grow and contribute. Since launching its new manifesto and business principles in 2018, Pentland Brands has focused on helping its people understand the specific behaviours that can bring its principles to life. It’s not just ‘what’ is achieved, it’s ‘how’ it is achieved.

Over 750 of its people across the UK, Asia and US participated in a ‘Living our Principles’ workshop and, to bring the Pentland story to life, it also embedded the session into other areas of its employee life cycle, including induction sessions for new starters.

40 Championing diversity and inclusion

The Pentland Brands D&I steering Through the feedback and guidance committee and network continues of the people in the diversity to play a vital part in shaping its and inclusion network, Pentland diversity and inclusion agenda. It Brands reshaped its support for now has three D&I networks in the people returning to work after UK, as well as a volunteer working a period of long-term leave, group in Asia. Its four focus areas including updated guidelines are gender, ethnicity, unconscious and resources for managers. bias and inclusion, which formed You can find out more about how the framework of the Pentland Pentland Brands is supporting Brands D&I strategy. diversity and inclusion across its Pentland Brands believes in raising employee experience on page 50 awareness of the importance of of its Positive Business report. inclusion by involving its people in shaping its initiatives.

41 Talking about mental health

Pentland Brands partners with Unmind, to support mental health and wellbeing at work, 20.5% of people registered on Unmind and in 2019 rolled out its Unmind support tool globally.

15,582 minutes of programmes listened to

174% increase in usage between July and December

42 Reducing environmental impact

Pentland Brands is committed order to reduce its carbon footprint 80% post-consumer waste as to delivering on its targets for in its offices and distribution packaging for products purchased reducing waste, water and carbon centres. It is also developing a via its brands’ ecommerce websites, emissions. It believes that every CO2 baseline for its global replacing plastic shipping bags. This individual can make an impact – workplaces as well as shipping, change will reduce the amount of which is why Pentland Brands is operations and business travel, plastic it ships by 27 tonnes every year looking at how it can reduce its so it can more effectively measure (or nearly a million plastic bottles). footprint across all its operations. and manage its emissions. The packaging, which is 100% Workplaces Packaging recyclable and retains a premium quality, is now used by its brands Its UK offices are working Pentland Brands is taking its first including Canterbury of New Zealand, towards using 100% renewable steps towards using sustainable ellesse, Berghaus, Kickers and energy. It has also removed packaging, with the ultimate aim Boxfresh. Pentland Brands will roll single-use plastics from many of making its packaging recycled, this out to Speedo and Mitre in 2020. of its offices and uses LED recyclable or compostable across lighting to save energy. its entire portfolio of brands. You can find out more about how Pentland Brands is looking to make Pentland Brands tracks its In 2019, Pentland Brands all its packaging sustainable in its greenhouse gas emissions in introduced boxes made from Positive Business report.

43 Our future

Pentland Brands believes that success is a team game, and in order to support people and our planet, it must work together so it can improve its future for generations to come. To do this, Pentland Brands, more than ever, is collaborating with other businesses, charities, NGOs, academic institutions and partners to learn, grow and take action.

44 A force for good

As a business, Pentland Brands The Pentland Brands Charitable gives at least 1% of its net profit, Giving policy, which was after tax, to charitable causes established in 2018, helps it every year. This includes financial co-ordinate its approach to donations, pro bono support and giving back and provides its donated products. people with guidelines for how to get the most out of their At the heart of its business is the personal fundraising activities. belief that it has a responsibility to play its part in being a force You can find out more about how for good. Its brands are designed Pentland Brands people have to build health, wellbeing and given back to their communities confidence, through which it in its Positive Business report. aims to make a positive impact.

45 Supporting our charity partners

Pentland Brands works with four slums in Mumbai, India. This year, global charity partners, with the aim Pentland Brands collaborated on of supporting causes that resonate the ‘Fit For The Future’ project, with its business. Its targets for improving the wellbeing and making a difference are: employability skills of young people in Bhiwandi, Mumbai. It has • Helping 10,000 women from supported around 40 young people disadvantaged backgrounds in to develop their skills to access jobs. our sourcing markets to reach their potential The British Council • Inspiring 5,000 young people Pentland Brands supports the in the UK to be more active development of online learning Its charity partners are: resources that enable more young people, especially women, in United Purpose Thailand to access the craft sector. In 2019, its ‘Crafting Futures’ Pentland Brands works with United programme supported over 100 Purpose to support a project which artisans in Thailand to develop uses sport to teach employability business knowledge and expertise skills to young people living in in the design and textiles industry. 46 Supporting our charity partners

Panathlon Pentland Brands is helping Pentland Brands will be Panathlon expand its swim supporting sports festivals and programme to support over 5,000 outreach programmes in four UK disabled swimmers. This year, it locations: Blackburn, London, collaborated with Panathlon to Nottingham and Sunderland. host 39 swimming competitions In 2019, over 90 Pentland Brands across the UK, with 1,757 volunteers helped SportInspired children and 379 young leaders to host inclusive sports participating – a 17% increase on programmes for local schools in the original target. London and Sunderland, giving over 400 primary school children SportInspired the opportunity to discover a Working to tackle childhood sport they love. obesity in disadvantaged You can find out more about communities, SportInspired Pentland Brands charity partners creates fun and inclusive sports in its Positive Business report. programmes or schools.

47 Collaborating for better

Pentland Group and Pentland

Brands work with a number of Pentland Group not-for-profit organisations that Ethical Trading Initiative (ETI) – share our goal of being a socially forging an alliance to improve the and environmentally responsible lives of workers around the world. businesses. We are active members AFIRM – a collaborative effort and supporters of the following: to reduce the use and impact of harmful substances in the apparel and footwear supply chain.

In Kind Direct – for many years, Pentland Group has partnered with In Kind Direct to help channel surplus stock to good causes. In 2019, products worth an estimated retail value of over £100,000 were donated to 522 charities via In Kind Direct.

48 Collaborating for better

Pentland Group and Pentland Brands work with a number of Pentland Brands not-for-profit organisations that Action, Collaboration, share our goal of being a socially Transformation (ACT) – bringing and environmentally responsible together brands, retailers, businesses. We are active members manufacturers and trade unions to and supporters of the following: address the issue of living wages in the textile and garment supply chain.

Sustainable Apparel Coalition (SAC) - developing tools to improve and standardise the reporting of environmental impact across supply chains.

The Microfibre Consortium – developing practical solutions for the textile industry to minimise microfibre release to the environment from textile manufacturing and product life cycle.

49 Corporate responsibility at JD Sports Fashion plc

50 Corporate responsibility at JD Sports Fashion

Approach People JD Sports Fashion plc takes The talented individuals working environmental and social within JD are integral to its responsibility very seriously. It continued success. As the Group is always seeking ways in which expands globally, so does the it can reduce its impact on the network of people who operate in environment and protect and accordance with its company values increase the wellbeing of the and standards. Most recently, it has people with whom it engages focused on the recruitment, wellbeing with at all levels of the business, and development of its people. internally and externally. JD is committed to promoting In working towards its business policies which are designed to objectives, it aims to act in a ensure that employees and those responsible and ethical manner who seek to work for the Group are with all stakeholders, including treated equally regardless of gender, suppliers, employees and of marital status, sexual orientation, course, its customers. age, race, religion, ethnic or social origin or disability.

51 Corporate responsibility at JD Sports Fashion

Wellbeing Employee wellbeing is very JD is looking expand this important to JD and it has taken initiative further throughout all a holistic approach to promote areas of our business in 2020. it across the business. JD also works to promote 2019 saw the introduction of physical and mental wellbeing. Wellbeing Champions within the First Aid and Mental Health Group. 161 individuals were selected First Aid training is available to and trained on how to spot signs all employees. Its partnerships of modern slavery and how to with external bodies provide support employees who are having access to additional support mental health difficulties. Wellbeing to employees regarding their Champions are fully trained in emotional, physical, vocational modern slavery awareness and are and financial wellbeing. at the forefront of supporting the You can find out more about business’ communication on this. how JD is supporting wellbeing in its latest annual report.

52 Corporate responsibility at JD Sports Fashion

Learning and development A vital component of the JD strategy Alongside this, JD has delivered is its commitment to employee capability and behavioural skills development, with a focus on both training to a further 1,500 employees. internal progression and providing Overall, almost 4.5 million minutes talent with the best resources and of e-learning were completed. knowledge to excel in their careers. JD is also focusing on developing Its learning strategies provide leaders. A further 58 people colleagues with access to a blend completed the 16-week Management of e-learning, face-to-face tuition Development Programme and eight and experiential learning. Its people completed the Leadership international network of training Development Programme aimed at facilities has hosted a broad range leaders wishing to further develop of courses, providing tuition their skills. and accreditation for 433 newly appointed store managers and almost 1,000 supervisors.

53 Corporate responsibility at JD Sports Fashion

Health and safety JD is fully committed to continuous • A free, confidential support service health and safety improvement run by The Retail Trust that aids across all areas of its business to emotional and financial wellbeing. protect colleagues, customers and • A web based, online induction other stakeholders. It recently and training programme ensuring reviewed and revised its Group every colleague has the competence, Health and Safety Policy to reflect understanding and awareness to organisational and business changes. work safely and at minimum risk. JD demonstrates its commitment • Quarterly Group, and monthly to health and safety through distribution centre health and active leadership, promoting best safety committee meetings, practice and by setting specific and facilitating colleague engagement measurable targets each year. in health and safety, with everyone Its approach includes: having the opportunity to raise safety concerns through their • Providing health checks and committee representatives. support for employees via Occupational Health. 54 Corporate responsibility at JD Sports Fashion

Stores Distribution centres JD has received health and safety In 2019, JD was proud to maintain input into all its new and refitted the British Safety Council ‘Five stores, from the initial design Star’ accreditation, for the through to opening. Its health and third successive year, for safety safety team conducts its own audit management at its Kingsway programmes to ensure the highest Distribution Centre, demonstrating safety standards are maintained an ongoing commitment to both during the construction phase of excellent health and safety standards all its shop-fit projects. and continuous improvement.

You can find out more about JD’s approach to health and safety in its latest annual report.

55 Energy and the environment

JD recognises the importance of JD retained its high ‘B’ score, protecting the environment and is outperforming the wider committed to carrying out activities European sector average score with due consideration of its by two grades. Participation in environmental impact. the CDP enables the Group to benchmark performance against Independent verification of JD’s industry peers, ensuring its continued progress on managing strategy on carbon reduction is and reducing its environmental independently reviewed against footprint was provided by the Carbon comparable businesses. Disclosure Project (CDP) report.

56 Environmental, social governance (ESG)

After the JD Group’s FTSE100 entry • Continuing its progress on moving in 2019, it made a further commitment JD European stores to 100% ‘Green to improve its sustainability and Energy’ usage, consistent with its environmental performance by current policy in the UK and Republic establishing an ESG committee. The of Ireland. JD aims to reach 100% committee will determine its future renewable electricity use for its ESG strategy, monitor adherence to its European operations by 2022, with existing standards and oversee plans the ambition for all existing global for the introduction of a new ‘ESG operations to be renewable by 2025. and Sustainability Policy Framework’ • Relaunching its corporate website, during 2020. which is a reference point for ESG JD achievements include: statements, achievements and strategy, to enable greater transparency on its • Advancing its reputation as a practices and progress. sustainable organisation through participating in environmental performance benchmarks, such as RE100; the world’s most influential companies committed to 100% renewable power.

57 Customer packaging

JD continues to believe that Where local authorities permit the encouraging the re-use of bags donation of bag-levy income, JD is the most effective way to donates all proceeds from carrier reduce overall plastic usage. Its bags charges (both voluntarily, JD fascia is known for its high and bags covered by the levy) to quality, durable drawstring the JD Foundation. You can find duffle bags, the re-use of which out more about the work of the JD is visually evident from the high Foundation on page 64. street to high school.

To encourage customer consideration of the necessity of bag use, JD voluntarily charges for the use/sale of drawstring-bags.

58 Recycling Tonnes of Recycled Cardboard at Kingsway DC

Wherever possible, plastic or cardboard (its major packaging constituent) is removed at the earliest source within the core supply chain. In 2019, the amount 5491 of cardboard recycled increased to 5,491

tonnes (4,756 tonnes in 2018). 4756

JD has outsourced its waste management 4174 on-site to a third-party supplier, which 3993 has enabled new initiatives such as re- processing used hangers and reducing waste streams through finding different solutions for these materials.

In 2019, 98.6% of waste was diverted

from landfill, compared to 98% in 2018. 1638 1322

2015 2016 2017 2018 2019 2020

59 Sustainability in private label manufacturing

JD recognises the need for From October 2019 to March responsible sourcing, and this 2020, the implementation of includes making sustainability an the research and subsequent integral part of its private label strategy resulted in 2.1 million production, from conception to products being available for sale, end product and beyond. surpassing this original target.

The initial target, set in June The target for 2020 is 4 million 2019, was for upwards of two products to be made from million products to be made sustainable materials. from sustainable materials, You can find out more about sustainably grown cotton and/ how JD is promoting sustainable or recycled polyester. manufacturing in its latest annual report.

60 Ethical sourcing

2019 saw the introduction of the The Group continues to new JD Group Code of Practice, review its policies on ethical encompassing its policies into sourcing on a regular basis. a concise document to ensure It continuously assesses consistency for manufacturing factory ethical and quality suppliers and brands. The policy management and works states that the people working with suppliers to improve for JD suppliers are to be treated conditions in its factories. with respect and their health, safety and basic human rights must be protected and promoted.

61 Modern slavery Supply chain

Following the formation of a new UK JD has continued to map its • 243 Agents Modern Slavery committee, 2019-2020 supply chain to the 4th tier. (2019: 158 Agents) has been a milestone within JD’s UK This strategy requires continual • 494 Factories operations. With the collaboration of engagement with its partners as (2019: 355 factories) third-party contractors, it has been the manufacturing chains beyond able to standardise its policies across first tier will often change due to • 25 Sourcing Countries external partners, leading to better demand and capacity. (2019: 20 Sourcing Countries) understanding of the UK supply chain • 1st Tier = CMT Site (Factory) The transparency map is available and work towards integration to the on the JD plc website. This map JD Group Modern Slavery programme. • 2nd Tier = Mill details the city locations of all JD has joined the apparel protocol • 3rd Tier = Dye House four tiers of the private label and is working closely with the manufacturing supply chain. • 4th Tier = Print House GLAA (Gangmasters Labour Abuse Authority). JD is committed to working with the GLAA over the coming months to improve its understanding and processes and work to eradicate modern slavery in its UK operations.

62 Audit status 2020 vs. 2019

The protection of workers in the JD No Audit required supply chain is paramount and it will continue to have zero tolerance to critical issues identified by JD personnel 3rd party Audit in date or third-party auditors relating to a safe working environment. Critical issues are defined as an issue that impacts workers Audit required causing hardship or harm.

86% of the factories used by JD are audited by third-party accredited audit 2019 companies, as shown in the graph below. The 86% represents 100% of the 2020 0 20 40 60 80 100 factories where an audit is required.

You can find out more about how JD is supporting ethical sourcing in its latest annual report.

63 Changing lives, saving lives: the JD Foundation

The mission of the JD Foundation Duffle Bag and all carrier bags across is to support charities working with the JD Group are transferred to the disadvantaged young people in the UK. JD Foundation. The Foundation supported 18 charities From October 2015 to January 2020, in 2019 with a focus on physical health, the JD Foundation raised £3 million, mental health and homelessness. with 93% of funds donated to charities. The JD Foundation is a registered All monies raised (excluding fees) are charity, founded by JD Sports Fashion distributed amongst the chosen charity plc in October 2015. 100% of the net partners, with a small reserve left for proceeds from the sale of the iconic JD emergency funding.

64 CORPORATE AND SOCIAL RESPONSIBILITY 107

CARDIAC RISK IN THE YOUNG THE WELLSPRING SALFORD FOUNDATION CARDIAC RISK With donations from the Foundation, The Wellspring charity are a resource center The Inspired to Aspire mentoring Cardiac Risk in the Young (CRY) has been for homeless and disadvantaged people, programme is to enable students to able to hold ten screening days during 2019, opening 365 days a year, offering different discover the skills and attitudes needed to 823 with 823 young people screened and 22 services available such as housing referrals, successfully transition from education into being referred for full cardiac evaluation. health services or educational courses. the world of work. YOUNG PEOPLE Chosen charities for 2019 The Foundation actively promote a SCREENED IN circular economy with product donations; consisting of outdoor jackets, thermals and 2019 underwear, to toiletries that the Foundation 52 encourage employees who travel to bring home from hotel stays. NUMBER OF

OUTDOOR WEEKEND 2019 JD EMPLOYEES The JD Foundation recognises the The Foundation held their importance of being a sustainable The Wellspring WHO HAVE second outdoor charity event charity, and wants to develop long- The Wellspring charity is a in June 2019 in partnership with resource centre for homeless VOLUNTEERED term relationships with charities Mountain Rescue England & who are making a difference. Wales,and disadvantaged at the Holcombe people, Moor opening 365 days a year, offering Here are just some of the charities Training Camp near Bury. Nine of thedifferent Foundation’s services availablechosen charitiessuch that the Foundation supported wereas housing invited referrals, to attend health with the in 2019. youngservices people or educational they support. courses. 608 The weekend was attended NUMBER OF byThe over Foundation 40 Mountain actively Rescue Volunteers,promotes a theircircular search economy and STUDENTS WHO rescuewith product dogs, anddonations was alsoincluding HAVE RECIEVED supportedoutdoor jackets, by the thermals, Group Executiveunderwear Chairman and toiletries. and a MENTORING number of the Foundation BUDDIES OF THE BIRCHES Trustees. Buddies of the Birches is a registered charity bringing together parents, carers, children and staff connected with The Birches School; a specialist support school. 2019 saw an additional donation from the 14 65 Foundation to fund the new outside area for one of the schools most complex classes. SCHOOLS TAKEN PART

The Foundation attended the Inspired to Aspire event at MediaCity UK, with the Greater Manchester mayor, Andy Burnham, and other local businesses.

106FOUNDATIO Chosen charities for 2019

Cardiac Risk in Salford Foundation Buddies of the Young (CRY) The Inspired to Aspire mentoring the Birches programme enables students to Buddies of the Birches is a registered With donations from the discover the skills and attitudes charity bringing together parents, Foundation, Cardiac Risk in the needed to successfully transition carers, children and staff connected Young (CRY) has been able to from education into the world of with The Birches School; a specialist hold ten screening days during work. The Foundation attended support school. 2019 saw an additional 2019, with 823 young people the Inspired to Aspire event with donation from the Foundation to fund screened and 22 being referred local businesses to support the the new outside area for one of the for full cardiac evaluation. mentoring process. schools most complex classes.

In 2019 JD undertook a social impact assessment to evaluate the impact of the work being carried out by its charity partners. You can read the report here.