Making Progress Together Pentland Group Corporate Responsibility Review Contents 01 About us Our portfolio and global reach 02 An introduction from our Chairman 03 Our approach Our standards and corporate responsibility 04 Product sustainability Materials, design, restricted substances, shipping and surplus 05 Environment Energy and emissions, waste and recycling, water consumption and natural resources 06 Ethical trade Our standards, process and collaboration 07 Our people Engagement, talent, diversity and health and safety 08 Community Charitable giving, fundraising, volunteering and product donations 01 About us Pentland Group plc is a family-owned, global brand management company with wholesale and retail businesses in sports, outdoor and fashion. Founded in 1932 in Liverpool by Our brands include the current Chairman’s parents, Pentland started as a wholesaler of Pentland Brands shoes, and has grown into one of the largest private companies in the UK, employing 19,000 people. Pentland is a member of the Institute of Family Business, and in 2014 its consolidated global turnover was $3 billion. In 2014, Pentland Group won Top European Family Business of the Year Our retail division comprises JD Sports at the European Families in Business Fashion plc, one of the UK’s leading Awards 2014. retailers of aspirational branded sportswear, fashion wear and outdoor clothing and equipment. We hold a 58% Our portfolio share in the company. Our brand management division, JD Sports Fashion plc Pentland Brands, is made up of 13 world-class sports, outdoor and fashion brands. In 2014, Great Place to Work® named Pentland Brands as the 8th best large company to work for in the UK, Founded and 18th in the list of best large workplaces in Europe. in 1932 We also invest in other businesses in a variety of industries. 03 UN Global Compact: Our products are sold in 200 countries across Europe, the Americas, Asia, the Middle East, Africa and Australasia Ten Principles Our reach What this review covers Human Rights 01 Businesses should support and respect the protection Ethical trade, Our products are sold in 200 countries This review sets out our approach of internationally proclaimed human rights; and Page 25 across Europe, the Americas, Asia, the to being a responsible business and Middle East, Africa and Australasia. gives an overview of our corporate 02 make sure that they are not complicit in human Our people, responsibility activities in 2014. It covers rights abuses. Page 31 Pentland Group and Pentland Brands the companies and brands we wholly are headquartered in London. own. It also includes some information Pentland Brands also has UK offices in about JD Sports Fashion, in which Nottingham, Reddish, Sunderland and we hold majority ownership but do not Labour 03 Businesses should uphold the freedom of association Ethical trade, Wakefield, as well as distribution centres exercise direct management control. and the effective recognition of the right to collective Page 25 in Blackburn, Sunderland and Wakefield. JD Sports Fashion reports separately bargaining; In mainland Europe, we have a presence on its corporate responsibility Our approach, in France and Germany, and in North activities through its own Annual 04 the elimination of all forms of forced and Page 09 America we have offices in the USA Report and Accounts. compulsory labour; and Canada. This review is our 2014 Communication 05 the effective abolition of child labour; and As one of the pioneers of footwear on Progress to the United Nations sourcing in Asia, we have a significant Global Compact (UNGC), an initiative for 06 the elimination of discrimination in respect presence in Hong Kong, plus offices in businesses committed to aligning their of employment and occupation. Australia, China, India, Indonesia, Japan, work and strategy with ten universally New Zealand, Thailand and Vietnam. accepted principles in human rights, labour, the environment and anti- corruption. As a participant in the UNGC, Environment 07 Businesses should support a precautionary approach Environment we report every year on our progress in to environmental challenges; Page 21 each area. 08 undertake initiatives to promote greater environmental responsibility; and Product sustainability, 09 encourage the development and diffusion of Page 15 environmentally friendly technologies. Anti-Corruption 10 Businesses should work against corruption in all its Our approach, forms, including extortion and bribery. Page 09 Pentland Distribution 04 05 An introduction 02 from our Chairman 2014 was a remarkable year for Our global, independent corporate Pentland. Pentland Group was responsibility team supports and nominated Top European Family advises our whole group, and we Business of the Year at the European have a long history of collaborating Families in Business Awards. with others to improve factory working conditions, reducing our impact on the Pentland Brands earned a place in environment and making our products the top 10 Great Place to Work® Best more sustainable. This is a fundamental Workplaces in the UK, and the top 20 part of how we do business. in Europe. I am proud of the way we have People are at the heart of our business committed to doing business responsibly. and they always have been. We work We hold ourselves to high standards hard to create a working environment that of ethics and corporate responsibility, inspires and nurtures, and one where including that of a signatory to the everyone feels welcome to contribute United Nations Global Compact. We are ideas on how we can do things better. delighted to renew our commitment to this initiative and its Ten Principles, which set Doing business better, and more a clear framework on how business can responsibly, is a top priority for us, help to address the world’s prevailing and and is deeply ingrained in our environmental issues. day-to-day operations. R. Stephen Rubin Chairman Pentland Group plc 07 Our approach 03 We believe in doing business responsibly, and we expect everyone who works for Pentland Group to do business the right way. Our standards In 2014, we revisited our business 02 standards and made our commitments clear on: How we work with our customers and other 01 business partners How we treat our people, and how we expect them to behave 04 How we make our 03 operations environmentally efficient How our manufacturing partners should treat the people who make We learn from our products ! We require all Group companies in each other by which we hold 50% or more of the 05 share capital to have policies and procedures that help them meet sharing successes these standards. How we do business ethically and with integrity 09 Our corporate responsibility priorities Pentland Brands’ corporate responsibility Each brand has people responsible for delivering work focuses on four areas: product sustainability, environmental efficiency, corporate responsibility programmes ethical trade, and community and charity. 01 02 03 04 Managing our corporate responsibility activities Product Environmental Ethical Community sustainability efficiency trade and charity Pentland Group Chairman Stephen Rubin takes a strong personal interest in our corporate responsibility activities. In 2003 he was appointed an Officer of the Order To reduce the To reduce the To conduct To contribute of the British Empire (OBE) for services to impact of our impact of our business honestly, positively to the business and human rights. products throughout business operations fairly and with communities in their life cycles respect for people, which we operate Pentland Brands’ corporate responsibility their dignity and team is based in London, Hong Kong and their rights Shenzhen, and manages global corporate Objective responsibility initiatives with colleagues Every year, our brands monitor and across the business. Each brand measure their corporate responsibility has people responsible for delivering performance using tools such as the corporate responsibility programmes, Sustainable Apparel Coalition’s Higg and we learn from each other by sharing Index (see Product sustainability, page successes and information about projects 15) and the Fair Factories Clearinghouse – for example, at our biannual Corporate (see Ethical trade, page 25). We have Materials Energy use Robust ethical Charity Responsibility Forum. All Pentland Group also developed our own internal tool, the trade processes partnerships companies manage their own corporate Corporate Responsibility Scorecard, to Packaging Business travel responsibility activities, supported by the help our brands ensure their corporate Long-term Fundraising Pentland Brands corporate responsibility responsibility activities are in line with Restricted Waste and relationships activities team where necessary. good practice across the business. substances recycling Sustainable Employee Supply chain Water use improvements to volunteering environmental working conditions footprint Product Focus Area donations Product end of life 10 11 Everyone who works for Pentland has a role to play in Working with others making sure we meet our corporate responsibility objectives Collaboration is an invaluable part of In 2015, we will establish the Pentland our corporate responsibility activities. Scholarship which will enable individuals We work with industry groups, academic from the Global South to participate in institutions and non-governmental the newly created Global Public Policy organisations to make sure we are aware and Management Masters by University