22 November 2011

The Manager Companies Australian Securities Exchange Limited Company Announcements Office Level 4 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

RE: Woolworths Limited – Corporate Responsibility Report 2011

Attached is a copy of the Woolworths Limited Corporate Responsibility Report for 2011.

For and on behalf of WOOLWORTHS LIMITED

PETER J HORTON Group General Counsel and Company Secretary

For personal use only use personal For

Corporate Responsibility Report 2011

Closer every day. For personal use only use personal For Woolworths Limited Corporate Responsibility Report 2011

CONTENTS Key Indicators – 2011 2 Statement from the CEO and CEO Designate 4 Understanding our Stakeholders and What is Important to Them 6 Issues of Public Interest 8 Our Business 10 Responsible Retailing 12 Our Community 20 Our Environment 24 Our People 34 Our Approach to Corporate Responsibility and Sustainability 49 Independent Assurance Statement 51 United Nations Global Compact 54 Global Reporting Initiative 55 Store and Trading Area Analysis 57 Glossary 58

Company Directory 59 For personal use only use personal For

www.woolworthslimited.com.au ABN 88 000 014 675 Scope of Awards and Report Recognition

Unless otherwise stated, ——Woolworths Supermarkets ——Association of Chartered ——Woolworths and CHEP won this report covers all of our is Australia’s most valuable Certified Accountants the 2011 NZ Environmental operations in Australia and brand, valued at $7.59 billion (ACCA) Australia and and Packaging Award for New Zealand for the 2011 by Brand Finance in New Zealand Sustainability Supply Chain Influence on financial year (1 July 2010 accordance with the Reporting Awards 2010: Best Packaging Systems with our to 30 June 2011). Data for International Organization for Report in the Retail Sector. reusable produce crates. Croma (our electronics joint Standardizations’ (ISO) ——Carbon Disclosure Project venture with Tata in India International Standard on (CDP) Carbon Disclosure which provides wholesale Brand Valuation. Leadership Index 2010: one services to 64 stores) is only ——2010 Manukau Business of seven Australian companies, included in the Our Business Excellence Awards: the and the only Australian and Our People sections Accident Compensation retailer, to be listed. (excluding Safety). Data Corporation (ACC) Workplace ——Woolworths Limited is listed for global sourcing offices Safety Award was won by in the Dow Jones Sustainability in Hong Kong and China is Progressive Enterprises Index in both the World and only included in the Our People Limited (NZ) for leadership Asia/Pacific Indexes. We’re section (excluding Safety). demonstrated by senior also ranked as a Sustainability With only 25% ownership management, their passion Leader in the Food and Drug and no operational control to make ‘Progressive’ a safer Retailers Sector. of Gage Road Brewery, there place for our team, customers is no information reported and contractors, as well as the for this business. speed at which the business had turned around its

performance and culture. For personal use only use personal For

1 Woolworths Limited Corporate Responsibility Report 2011

Key Indicators – 2011

RECONCILIATION ACTION PLAN EBIT Woolworths launched its Reconciliation Action Plan in June 2011 to advance $3,276.4m opportunities for Indigenous Australians. CARBON INTENSITY (T CO2-E/$ MILLION EBIT)

2011 881

2010 956

2009 981

Energy Intensity (MJ/m 2) Relationships Opportunities Respect Reporting 3,178 3,092 3,006 The plan is a practical pathway towards greater inclusiveness in the Company, leading towards our long-term goal to have a workforce that represents Australia’s diverse population. 2009 2010 2011 The four key pillars in the plan are relationships, respect,

opportunities and reporting. Note: Supermarkets Australia, Stationary Energy For personal use only use personal For

2 LOST TIME INJURY FREQUENCY RATE (LTIFR) EMPLOYEES RECEIVING PAID MATERNITY LEAVE

1,545 1,436 15.77 12.08 1,080 8.51

2009 2010 2011 2009 2010 2011

COMMUNITY INVESTMENT ($ MILLION)

2011 62.3

2010 36.3

2009 27.5

WATER SAVINGS (ML) DEVELOPING TALENT

180 For personal use only use personal For $60m 2009 318 invested in learning and 2010 342 development training. 2011

3 Woolworths Limited Corporate Responsibility Report 2011

Statement from the CEO and CEO Designate

“I’m enormously proud of what we have achieved at Woolworths Limited and firmly believe we have the team in place to achieve even greater things in the future.”

In 2011, Woolworths continued represented and paving the way for areas we know we can improve 400,000 direct shareholders, to take a strong lead in corporate other retailers to follow and adopt on but we work hard to strike a we offer long-term, sustainable responsibility and made excellent more sustainable working practices. balance and to operate in a fair, value creation (increasing progress towards the achievement Woolworths Limited is a diverse open and conscientious manner dividends by 6.1% this year). of our sustainability targets. and complex organisation that – ever mindful of the broader And as a community neighbour Both domestically and globally, touches the lives of literally resonance of our decisions. we do our best to be a shoulder Woolworths is quietly earning millions of people either as Woolworths is a company I am to lean on in a crisis and make respect and recognition for the customers, investors, suppliers, very proud of and one that I know a positive difference every day integrity and depth of its corporate employees or members of the has an overall positive impact on (contributing $62.3 million responsibility programs, and communities in which we operate. society. As an employer of more to the community including through our close association with We do our utmost to provide the than 190,000 people, we strive to $21.5 million in emergency relief, global organisations such as The very best choice, value, quality provide security and opportunity including the Queensland floods Consumer Goods Forum and the and service possible and to deliver for them to realise their potential and Christchurch earthquake).

United Nations Global Compact these as responsibly as we can. (spending $60 million this year There are many achievements For personal use only use personal For Network, we are at the forefront Of course, as a highly visible, on training and development). in this year’s Corporate of debate and central to the diverse and consumer-facing As a customer of many thousands Responsibility Report. positive change taking place in business, we fully accept and of suppliers, we aim to be Of particular note are the launch critical areas such as ethical welcome scrutiny. Undoubtedly, collaborative, fair and focused of our Reconciliation Action Plan, sourcing. Working collaboratively the scale and breadth of our on mutual benefit (further a 30% reduction in Lost Time with the world’s best retail business activities attract criticism advancing our Fresh Food Futures Injury Frequency, the launch of organisation, Woolworths is from time to time. We fully program during the year to an industry leading sustainable actively ensuring that Australian acknowledge that we don’t always improve agricultural sustainability). fish and seafood policy and a 10.9% and New Zealand interests are get it right and there are many As an investment for more than reduction in carbon emissions.

4 My congratulations go to all our My commitment to Woolworths’ For example, since 2007 we have stakeholders, we will continue employees who have helped drive Corporate Responsibility agenda invested $55.7 million in energy to drive positive change for our these important changes and is integral to my vision for the efficiency projects right across our business, our community and demonstrate Woolworths’ long-term success of this company. business – an investment that will our society. leadership. I have been a staunch advocate on realise approximately $93 million Embedding sustainable principles key areas of responsible retailing, in savings by 2015. On every remains a key focus for our particularly in relation to measure, our efforts are certainly organisation and, as I hand the responsible service of alcohol, paying dividends. CEO baton onto Grant O’Brien, during my time leading our liquor I am very pleased our Corporate I am extremely confident he will business and I know first hand how Responsibility Report has once Grant O’Brien uphold those principles and lead important it is to use your size and again achieved an A+ rating from Incoming CEO the next generation of Woolworths scale to make a positive difference the Global Reporting Initiative, towards a more sustainable and to constantly raise the bar. reflecting our ongoing commitment retail future. I am also aware of the fact that to transparent and accountable For personal use only use personal For good corporate responsibility reporting practices. equals good business management, Woolworths has achieved a great with a very real return on our deal but there are many more investment. opportunities open to us. By listening closely to our Michael Luscombe customers and working Outgoing CEO collaboratively with our Woolworths is a signatory of the United Nations Global Compact and a member of the Global Compact Network Australia.

5 Woolworths Limited Corporate Responsibility Report 2011

Understanding our Stakeholders and What is Important to Them

The following stakeholders are critical to our business and influence our decision making.

Stakeholder group Our engagement in 2011 What they told us they expect Customers We monitor consumer sentiment and issues impacting on shopping behaviour Value for money, choice, quality, through continuous qualitative research with focus groups and reviews of issues good service and healthy options. online, in social media and through our Customer Contact Centre. New products and brands are tested through concept clinics and workshops; we explore consumer reaction through online communities and quantitative research with our online panel of shoppers. Supermarket specific focus studies are undertaken where certain stores are placed on the customer feedback program and the Store Manager reviews ratings and verbatim feedback and follows up directly with all customers who require feedback.

The Customer Contact Centre receives feedback via phone, email, online and The most common queries or in-store. Our systems monitor and track customer feedback and our responses feedback to our Contact Centre to feedback. The goal is to respond to all our customers within 24 hours. are regarding products, general queries and customer service.

Investors Quarterly investor briefings, Annual General Meeting (AGM) open to all shareholders, Competitive returns on their investor call centre service, direct contact in writing with our CEO, Chairman and investment. Company Secretary and an email contact page on the Investor Centre on the Received 318 written submissions website. from shareholders for the November 2010 AGM, with the most frequently raised topics being executive remuneration, gaming, shareholder incentives and Australian products.

Submitted reports to the Carbon Disclosure Project on Carbon Disclosure and Disclosure on risk identification Water Disclosure. and mitigation in areas of climate change and water.

Employees Focused on developing, building and diversifying the capability of our people Professional development and for current and future opportunities. Invested over $60 million in learning and training, career opportunities development initiatives. Training programs include mentoring, networking, and a safe and healthy workplace. cross-divisional learning opportunities and targeted leadership programs. Launched Reconciliation Action Plan to advance opportunities for Indigenous Australians. Regular employee engagement surveys are conducted, with staff in Progressive Enterprises Limited, Dick Smith and Liquor surveyed in 2011.

Suppliersonly use personal For Hold regular planning meetings or develop Shared Objective Plans with our largest Fair treatment, the opportunity to suppliers in Supermarkets and BIG W. develop long-term trade relationships, Quarterly supplier newsletters on Trading and on Logistics, and a dedicated secure and ready access to, and prompt vendor website providing up-to-date trading information for better planning and responses from, our people who more effective use of resources. deal with them. Annual trading performance measurement program and awards event to recognise innovation and celebrate partnerships. Supplier of the Year in 2010/11 was Coca-Cola Amatil Pty Ltd. The winner of the $100,000 Fresh Food Grant in 2010/11, awarded for a sustainable product, packaging or process, was Beak and Johnson Pty Ltd.

6 Stakeholder group Our engagement in 2011 What they told us they expect Communities Woolworths is committed to supporting quality, grassroots initiatives with Be good neighbours and invest sustainable outcomes. This is done by supporting partnerships with community in local communities. organisations and charities in four core areas: ——Health and wellbeing ——Sustainability and environment ——Education and employment ——Rural and regional

Governments and regulators Woolworths engages with government and regulatory officials regarding emerging Compliance with laws and current retail, business and employment issues and economic, social and and regulations. environmental policy matters.

In 2011, Woolworths lodged 19 formal submissions to state and federal government Proactive engagement in inquiries in Australia and New Zealand. These submissions can be viewed at public policy discussions www.woolworthslimited.com.au and constructive advice.

Non-government organisations During the year, we continued our dialogue and engagement with many NGOs, Leadership on sustainable and (NGOs) some examples are: ethical sourcing by influencing ——Drinkwise Australia, which promotes a responsible and safer drinking culture. our supply chain. ——Anaphylaxis Australia and Diabetes Queensland on food allergens Clearly communicated policies and nutrition. and principles on issues of interest to society. ——Sustainable Fisheries Partnership Foundation, Marine Stewardship Council and Taronga Conservation Society on our Sustainable Seafood Targeting our investment to sourcing strategy. adoption of sustainable farming methods and capacity building ——Landcare Australia on sustainable agriculture and food production. in the sector through supporting ——Nuffield, Primary Industry Education Foundation, Primary Industries Centre education and training. for Science Education, Australian Rural Leadership Foundation on building capacity and leadership in the primary industry sector. ——Foodbank and other food relief charities on food provision to those in the community in need of assistance. ——WWF and Roundtable for Sustainable Palm Oil (RSPO) on implementation

of our Sustainable Palm Oil policy. For personal use only use personal For

7 Woolworths Limited Corporate Responsibility Report 2011

Issues of Public Interest

Cost Competition Liquor Gaming of living and farm- retailing gate prices

Our response Our response Our response Our response Inflation across a range of Woolworths supports strong As a responsible retailer The ALH Group, a joint venture utilities and living costs has competition in the retail market. of alcoholic beverages, between Woolworths Limited grown considerably since Competition keeps prices low Woolworths goes beyond and the Bruce Mathieson mid-2010, significantly for customers and drives regulatory compliance with Group, is committed to dampening consumer demand improvements in products, a strict set of processes and providing responsible gaming and slowing the retail economy. range and services. Increasing procedures that govern all in our venues. The Group In Australia, there have been competition has been present in aspects of our liquor operations acknowledges that problem very large increases in electricity all categories in which Woolworths to help protect individuals gambling is a serious and water charges. These operates. In supermarkets, the and society from the harm community concern. increases have hurt families entry of global retailer Costco, caused by excessive alcohol ALH complies with all applicable and those people on fixed or as well as the continued growth consumption. responsible gambling legislative low incomes, such as pensioners and improvement from Coles, Our processes include annual requirements and participates and self-funded retirees. ALDI and the Metcash IGA audits of licensing and in many government gambling Woolworths is committed to group, has increased discounting responsible service compliance, working groups to assist in bringing downward pressure activity. Retailers have also taken our ID25 policy for serving identifying and developing on prices in both Supermarkets full advantage of the high alcohol, point of sale campaigns appropriate responsible and BIG W. We have continued Australian dollar to pass through and a range of measures to gambling initiatives. cost savings in better prices. our campaign in Woolworths’ better manage alcohol related ALH’s objective, supported by Supermarkets to reduce shelf Woolworths has developed strong issues in some communities. our Hotel and Gaming Charter, prices on thousands of products. long-term direct relationships with In specific communities, is for the Group’s facilities to be We have also adjusted the prices producers and suppliers across the Woolworths has worked with enjoyed as a social recreation across our private label ranges primary industries sector. Some local community representatives by responsible individuals who to ensure they meet or beat pricing action initiated by other to adjust the liquor range and choose to use them in a safe branded product. Private retailers, for example private label eliminate problem products and supportive environment. label has proven to be a key milk reductions, has caused such as cask wine. ALH also supports voluntary alternative for families looking considerable concern among initiatives that allow individuals for value when shopping, and suppliers that long-term to better exercise control over the range has increased in profitability will be impacted. their spending. Australia and New Zealand. Whilst Woolworths did not initiate In many key categories, such as this pricing we took the decision foodonly use personal For and consumer electronics, to match it so that we continued to consistent price deflation has offer our customers competitive been the norm and reported to prices. A Federal Parliamentary the market by many retailers, Inquiry has been held to consider which has benefited consumers. these issues. Woolworths has participated fully in the Inquiry process, and has argued that delivering value to consumers has to be balanced with a sustainable return for the producer.

8 Use of Food imports Food waste palm oil and import 97.3% of fresh fruit and protections vegetables sold in our stores was Our response Our response Our response grown in Australia. Woolworths is a member of Woolworths is committed to Woolworths has a target of the Roundtable on Sustainable giving preference to domestic zero food waste by 2015. All Palm Oil and has committed sourcing for our fresh produce. efforts are made to sell the food to use only certified sustainable We have hundreds of direct and products in our stores, and palm oil by 2015 for all private trading relationships with the where products cannot be sold, label products. very best fruit, vegetable and our first choice is to donate meat farmers and growers in surplus fresh food to local food 2m+ Woolworths has commenced meals from food donated listing palm oil and derivatives Australia and New Zealand. relief organisations. In 2011, greater than 5% on pack In 2011, in our Australian we donated enough food to to food relief charity labelling for all private label Supermarkets, 100% of our produce over two million meals. partners. products to facilitate customer fresh meat was sourced from We are also implementing choice. We have also introduced Australian producers and other diversion programs sustainably-sourced palm 97.3% by weight (96.5% by for composting and waste oil for our in-store bakery value) of our fresh fruit and to energy. products. vegetables was grown in Australia. In 2011, in our New Zealand Supermarkets, 100% of our fresh chicken, pork and lamb, and 90% of fresh beef, were

sourced from New Zealand. For personal use only use personal For

9 Woolworths Limited Corporate Responsibility Report 2011

Our Business

Since 1924, Woolworths Limited has grown from a single store in Sydney’s Pitt Street into Number of shareholders a company with stores in most metropolitan and regional areas of Australia and New Zealand. In 2011, we celebrate our 87th year in retailing. 414,591 Woolworths has been listed on the Australian Securities Exchange since 1993, under the Number of employee shareholders code WOW. 45,000+ Total number of employees 190,723

171,416 employees in Australia. 19,104 employees in New Zealand. 203 employees in India and China.

For personal use only use personal For th

20in global retailing, based on sales revenue – highest ranking Australian retailer.

10 Our Market Share in New Acquisitions Average number of weekly customers Food Retailing During 2011, Woolworths Woolworths is the largest acquired Magnet Mart in the Australian retailer, by sales Australian Capital Territory revenue; however, competition in and Flatman’s Home Timber food and grocery retailing is strong and Hardware in Victoria, and the Australian consumer has as part of its growth into the 27m benefited from competitive pricing Home Improvement sector. in some staple products. Roy In May 2011, we completed the Number of retail stores Morgan research showed that acquisition of the Cellarmasters 72.5% of weekly spending on fruit Group, which will accelerate and vegetables takes place outside growth in the liquor industry of a Woolworths store. through new and enhanced capabilities in production, operational services and private 3,241 label supply chain, enabling the Company to serve a new Sales revenue customer segment in the direct marketing channel.

Direct economic Indirect economic contribution contribution $54.1b $6.3b $101b EBIT in wages and benefits for our indirect contribution to employees, 5.0% increase from 2010. the Australian economy. $2.0b 686,000+ $3.3b in taxes to the government. full-time equivalent jobs. Net Profit After Tax $62.3m $711m investment in local communities, contribution to Australian economy

a 71.6% increase. from construction expenditure. $2.1b For personal use only use personal For Global ranking of supermarket chains with stores in Australia 2009 (52 weeks) ranking Costco Wholesale Corp (USA) 7 Aldi Einkauf GmbH & Co oHG (Germany) 8 Woolworths Limited 20 Wesfarmers Limited (owns Coles supermarkets) 23

Source: Deloitte, Global Powers of Retailing 2011.

11 Woolworths Limited Corporate Responsibility Report 2011

Responsible Retailing

We believe in earning our customers’ trust and respect by acting responsibly both inside and outside our stores and enabling them to make informed choices.

Buy and sell responsibly.

Sourceonly use personal For sustainably and ethically. Ensure quality and safety. Deliver value and choice for customers with focus on health and wellbeing.

12 Health and Wellbeing Woolworths’ Macro Wholefoods on the dangers of secondary Market range has increased to supply of alcohol to minors. Woolworths is committed to more than 220 products under the Woolworths continues to helping customers make informed Organic, Gluten Free, Free Range, participate with police, local health, ethical and environmental Natural and Mini Macro ranges. councils and community groups decisions when buying Woolworths in initiatives to tackle problem 265t brands. We do not want to dictate salt removed from Responsible Selling drinking. After extensive what customers should and community consultation, in-store bakery bread. shouldn’t eat but we can help them Selling alcohol responsibly we have implemented measures to make more informed decisions that include the removal of lower for themselves and their families. As a responsible retailer of alcoholic beverages, we go beyond regulatory priced wine products for sale in Woolworths is a member of the compliance with a strict set of some communities and voluntarily Australian Federal Government’s processes and procedures that reducing trading hours. Food and Health Dialogue, which govern all aspects of our liquor Woolworths has approximately works with industry on a range operations to help protect 514 licensed stores involved in of voluntary reformulation of individuals and society from local liquor accords, where commonly consumed foods, the harm caused by excessive licensees and other stakeholders including bread and cereals. alcohol consumption. take action to improve safety and The Daily Intake Guide (DIG) was All Woolworths Liquor Group staff reduce alcohol-related anti-social created to give customers more are trained in Responsible Service behaviour. Commitment to these information about the pre-packaged of Alcohol and regular refreshers accords involved an estimated food and drink they buy and of this training occurs. Compliance $468,000 in wages and 15,420 consume. The DIG front-of-pack with responsible service and labour hours to attend local labelling provides a simple graphic licensing is assessed in annual liquor accords. showing the energy, fat, saturated audits of our licensed outlets. Our Charter for ranging alcohol fat, sugars and sodium content as in our stores includes 10 principles a proportion of the recommended To limit the risk of selling alcohol that we assess any alcoholic or daily intake amount. to underage customers, or to people supplying them, we continue to alcohol branded products against, Already more than 65% of private apply the ID25 policy, which before considering them for sale. label products have the DIG requires staff to ask customers These principles send a strong thumbnails and Woolworths for identification if they appear message against products that has committed to front-of-pack to be aged 25 or younger. The target minors or encourage nutritional information labelling ‘Don’t buy it for them’ point of irresponsible drinking. on 100% of our private label sale campaign provides awareness products by June 2012.

Our Charter for ranging alcohol in our stores Principle 1 Principle 2 Principle 3 Principle 4 Principle 5 The product should not The product should not The product should not have The products should not draw The product should not have the potential to appeal have an appearance that could an appearance which may lead any association with drug encourage illegal or to minors. potentially lead to confusion to confusion about its alcoholic culture, narcotics or other illicit immoderate consumption

For personal use only use personal For with confectionery or soft drinks. nature or strength. drugs or drug paraphernalia. such as binge drinking, drunkenness or drink‑driving.

Principle 6 Principle 7 Principle 8 Principle 9 Principle 10 The product should not The product should not The product should not feature The product should not Ready to drink products suggest any association suggest that consumption imagery or language that suggest that any physical containing more than two with dangerous, violent, can lead to social, sporting could be deemed offensive on or mental health benefit standard drinks per single aggressive or antisocial or sexual success. cultural, religious, ethnic or can be obtained by serve container will not be behaviour. gender grounds. consumption. ranged by Woolworths Liquor Group.

13 Woolworths Limited Corporate Responsibility Report 2011

Responsible Retailing

Responsible service The ALH Group works with David Ethical Sourcing of Gaming Schwarz, a well known former AFL footballer and reformed Labour conditions The ALH Group continues problem gambler, as its Responsible in our supply chain to be committed to providing Gambling Ambassador. David 71.5% responsible gaming in its venues. provides employee education and Woolworths is committed to audit completions in ALH is aware that problem customer awareness about the upholding human rights, not only 2011 of factories making gambling is a serious community importance of ‘being honest with with respect to its own employees Woolworths branded concern and that the Productivity yourself about your gambling’. but also in its supply chain, and (1) products. Commission report into gambling it has an Ethical Sourcing Policy (June 2010) estimated that between Responsible Buying which includes four key risk areas: 0.5% and 1% of adult Australians bribery and corruption; labour are problem gamblers. Woolworths publicly undertakes rights; working conditions; and to deal fairly, act reasonably, and environmental compliance. The Industry, government, community to negotiate outcomes with all its policy is available on our website. and individuals have a shared trade partners. We are committed Woolworths is also a signatory responsibility for the promotion, to fair dealings with our partners to the United Nations Global development and practice of while seeking the best deal for our Compact (UNGC). UNGC responsible gambling. ALH wants customers. This is written into our signatories embrace, support to ensure its hotels provide a corporate Code of Conduct. and enact, within their spheres safe and supportive environment of influence, a set of core values where its customers make Across our business, we abide in the areas of human rights, informed decisions about gambling. by voluntary codes of conduct labour standards, the environment in supplier trading relationships. ALH complies with all applicable and anti-corruption. We were a founding member responsible gambling legislative of the voluntary Produce and Our policy is based on International requirements in each state and Grocery Industry Code of Labour Organisation (ILO) participates in many state and local Conduct, promoting fair trading conventions and the principles government gambling working practices and building better of the United Nations Universal groups to assist in identifying and business relationships. Declaration of Human Rights. developing appropriate responsible gambling initiatives.

Our Hotel and Gaming Charter – We strive to provide a safe and friendly environment in which all customers can socialise and enjoy themselves in a good atmosphere. – We provide good value, good quality meals and family friendly dining experiences. – We restrict gaming room access to adults and ensure gaming rooms are screened or separated from other areas of the hotel, so as to not attract children. – We ensure responsible service of alcohol and provision of gaming, by making sure management and staff adhere to all applicable rules and regulations and are trained to encourage and promote responsibility.

– We believe we have a shared responsibility, along with individuals, governments, families and the community, For personal use only use personal For to prevent harm. – We actively support campaigns that warn of the dangers of drinking and gambling to excess and that inform people where to get help. – We ensure that ATMs provided for the convenience of all patrons are in a safe, central location and not in gaming areas. – We are committed to introducing voluntary pre-commitment – a system that helps players stick to their limit by nominating spending or time limits on gaming machines.

(1) – We do not engage in promotions that could encourage irresponsible drinking or gambling or that are directed Factories in high risk regions at minors or vulnerable groups. and emerging economies.

14 All Woolworths’ suppliers are Suppliers are categorised as expected to comply with ‘approved’, ‘conditionally approved’ requirements of our policy, which or ‘at risk’ depending on the is complemented by a compliance audit outcome and compliance audit program predominantly for with policy requirements. suppliers of our own branded Our approach is to work with products. Audits are conducted suppliers to help improve their by experienced third-party labour and environmental certification bodies. All audit practices no matter which criteria have been assessed category they are in. according to the level of risk The most common area of and categorised as critical and non-conformance is in safety and non-critical non-conformances. health, and working hours. Non-critical is further categorised Woolworths is an active member as ‘high’ or ‘low’ in severity. of the Global Social Compliance Areas of significant risk deemed Program (www.gscpnet.com), to be critical include specific a multi-stakeholder program criteria relating to child labour, aimed at delivering a shared, imprisoned or bonded labour, consistent approach for health and safety, or bribery and continuously improving working corruption. Breach of any specific and environmental conditions critical criterion will result in a across all categories and sectors. request for immediate resolution or corrective action by the supplier.

Audit results Audit results – Factory classifications in 2011 – Corrective actions raised in 2011 Approved 42% Critical 2% Conditionally approved 54% Non-critical high 75% At risk 4% Non-critical low 23%

Note: As at 12 September 2011.

Woolworths works with suppliers to address any issues that are identified in ethical audits. During the audit of an apparel factory, an incident of child labour was reported. Seven local students were found to be working in the factory during their summer vacation. The children were aged from 13 to 15 and had sought work during their For personal use only use personal For free time. The factory employed the children as temporary staff, they did not sign labour contracts and could come and go freely. The factory’s management addressed this issue by paying out the underage workers with relevant wages, and establishing business rules prohibiting underage workers from working in the factory.

15 Woolworths Limited Corporate Responsibility Report 2011

Responsible Retailing

Animal welfare Our free-range pork range has Genetically modified foods increased significantly in the We are committed to continually past 12 months. However, we are Woolworths is absolutely improving animal welfare constrained by supply as industry committed to food quality standards in our supply chain builds its supply capacity. and safety. We also know that in line with expectations of our customers expect food 52% Free-range pork is now available of fresh pork is estimated our customers. labelling and advertising to in 513 (or 61%) of our Australian to be produced in sow be clear and accurate. Woolworths’ approach to animal Supermarkets. Primo brand stall free conditions welfare is monitored through the RSPCA Approved pork is stocked Woolworths is committed to – to increase to 66% Woolworths Quality Assurance in 240 stores in New South Wales, meeting very high standards, by end-2012 and 94% (WQA) program. All vendors Australian Capital Territory and through: by end-2013. supplying private label products Victoria, the Plantagenet brand is ——A standard policy of avoiding to Woolworths are required to stocked in 36 stores in Western genetically modified (GM) participate in the program and Australia and the Riverview material in our private to meet our standards and are Farms brand has now been label food range; Fairtrade Australia and New audited by third-party added to 246 stores in South ——Requiring suppliers to declare Zealand awarded Woolworths certification bodies. Australia and Victoria. GM ingredients; Mordialloc, in Melbourne, Our animal welfare criteria Free-range and barn-laid eggs ——If GM ingredients are declared, the Most Fairtrade Friendly encompass whole-of-chain continue to grow in sales in working with suppliers to practices, including farm, Major Supermarket Award, Australian Supermarkets, replace the GM ingredients; transport, saleyard and but 59.8% of egg sales by volume after it was nominated by ——Contractually binding all processing, and set clear objectives are still caged eggs. This was a our customers. Woolworths suppliers to adhere to agreed that require verification by trained reduction of 2.6% compared to Balmain, in Sydney, was voted product specifications and not auditors in order for industries 2010. Our Select branded eggs changing any ingredients Leichhardt’s Most Fairtrade to supply livestock products are only free-range and barn-laid without our consent; and Friendly Supermarket. to Woolworths. The criteria and most caged eggs sales are currently cover poultry meat, in Home Brand. ——Complying with all relevant eggs, pork, sheep and beef. national, state and territory We continue to work closely with Fairtrade food standards. our trade partners, supply chain, Woolworths also fully complies certification bodies and industry The demand for Fairtrade with the Food Standards Australia experts to help ensure that our Certified™ products has steadily Fairtrade Certified™ products New Zealand prescribed all carry the Fairtrade Label. standards, procedures and increased in recent years and our mandatory labelling requirements practices are in keeping with supermarkets range a number of for GM foods. These standards the community’s expectations. Fairtrade Certified™ products in recognise the possibility of

tea, coffee and chocolate categories. unintentional minor traces For personal use only use personal For

16 of GM material to be present and In New Zealand, 100% of the fresh On-pack labelling of palm oil in all therefore don’t require labelling chicken, pork and lamb sold in Woolworths private label products if there is an unintentional trace Countdown stores is produced is progressing, and as of August We are a of less than 1% of an ingredient. in New Zealand, whilst 90% of 2011, 46% of our private label member of Under these standards, Woolworths beef is produced locally. products that we know include has had no private label products palm oil are labelled as containing the Roundtable labelled with GM ingredients in Palm oil palm oil. the last year. However, to ensure Woolworths will be submitting its Woolworths is committed to on Sustainable we are absolutely correct with first annual report to the RSPO sourcing only Roundtable on our labelling, we do not use the and will be declaring that an Sustainable Palm Oil (RSPO) Palm Oil. term ‘GM-free’ or ‘genetically estimated 4,400 tonnes of palm certified sustainable palm oil by engineered-free’, because it is oil was used in our private label 2015 for all Woolworths private not possible to give an absolute food and in-store bakery products. label products. The Consumer Goods Forum guarantee that there could never Certified Sustainable Palm Oil Woolworths is a member of be such an unintentional, minor Woolworths has been conscious will be sourced for use in our The Consumer Goods Forum and trace of GM material. We also of concerns about the impact that in-store bakeries from late 2011, a signatory to its Board resolution acknowledge we are unable to the growing demand for palm oil with an estimated 450 tonnes to achieve zero net deforestation give an absolute guarantee that is having on rainforest areas in being used each year. through the consumer goods supply all stock feed used in the supply South-East Asia, West Africa chain by 2020 through sourcing and South America. Deforestation chain is completely GM free. commodities like palm oil, soya, beef, in Indonesia is threatening the paper and board in a sustainable survival of many native species Sustainable Sourcing fashion. The Consumer Goods Forum and the draining of peatlands is is a global industry network that brings contributing to climate change. Local fresh produce together the CEOs of global retailers Palm oil is an efficient crop with Woolworths supports Australian and consumer brand owners with significantly higher yields of oil per farmers by sourcing local fresh combined sales of EUR 2.1 trillion. hectare than soya beans, rapeseed produce. In our Australian or sunflowers. On 5% of the world’s Supermarkets in 2011, 97.3% vegetable oil farmland it produces of fresh fruit and vegetables by 38% of output, more than any weight (and 96.5% by value) was other oil crop, and any substitute grown in Australia. Woolworths would need more land(1). Therefore, only sells Australian produced banning the use of palm oil could fresh meat, and sells 7% of the cause more deforestation as other beef and 15% of the lamb oil crops have considerably less produced in Australia. yield per hectare.

Growth for animal welfare products (Supermarkets Australia)

Percentage increase Percentage increase Percentage of total For personal use only use personal For of volumes of volumes category of volumes in in 2010 (%) in 2011 (%) 2011 (%) Free-range chicken (Macro meat) 66.8 35.0 12.8 Free-range chicken (Macro deli) 359.1 212.9 2.3 Free-range eggs 51.5 12.8 27.6 Barn-laid eggs 138.2 8.7 10.7 Organic Macro meat 21.4 36.4 0.9*

All previous reporting has been based on the value of sales. Trends in volumes are reported this year. (1) * Percentage of category estimated from sales. The Economist, 24 June 2010.

17 Woolworths Limited Corporate Responsibility Report 2011

Responsible Retailing

PEFC certified Select toilet tissue. FSC certified outdoor furniture from the Patio by Jamie Durie range at BIG W.

Timber, pulp and paper Fish and seafood Council (MSC) standards (or For farmed seafood, our aim is certified to equivalent schemes to have all the products certified Woolworths is committed to Global consumption of fish is at that comply with the United sustainable by credible third party purchasing timber, pulp and a record high. There has been Nations Food and Agriculture certification schemes by 2015. paper from legal, well managed a seven-fold increase in global Code of Conduct for Responsible The certification schemes or sustainable sources. We are fishing volumes over the past Fisheries and International Social recognised by Woolworths progressively working through 50 or so years – from 19 million and Environmental Accreditation at this time are: our range of products and tonnes in 1950 to about and Labelling guidelines for (1) ——The Global GAP Aquaculture; revising specifications for 142 million tonnes in 2008 . certification standards). purchasing of these products. ——The Global Aquaculture Demand for fish and seafood is We recognise that certification Alliance; and Our Select facial tissues, toilet increasing as our customers takes time and resources and tissue and kitchen towels are all look for healthier options and, we will work with our suppliers ——The Aquaculture Stewardship Programme for the Endorsement in response to this demand, we to achieve this goal. Council. of Forest Certification (PEFC) want to grow our seafood business. We may add other certification certified. The pulp is sourced While we are working towards Woolworths is a successful food schemes to this list based on from Brazil, Chile, Canada and our long-term goal, we will: retailer committed to providing advice from experts in aquaculture Australia and the product is ——Increase our existing MSC quality fresh food at affordable fisheries management. certified products available made in Australia. prices. We want to remain in our stores; Our Policy is available on our Our copy paper used internally is successful in food retailing website www.woolworths.com.au/ certified by the Forest Stewardship long into the future. ——Partner with experts in this sustainableseafood field to have our range assessed Council (FSC) mixed source and Our business prosperity depends for sustainability based on our catalogue paper in Australia on the availability of a secure and objective and credible scientific is PEFC certified. continued supply of quality fresh information and evidence; BIG W retails exclusively an food offer to our customers. Our aim is ——Communicate the sustainability FSC-certified outdoor furniture Sustainable seafood is part of this to ensure that of our products to our brand, ‘Patio by Jamie Durie’. equation and we want to be part customers; and all our seafood Our home improvement business, of the solution in promoting Masters, has a detailed wood For personal use only use personal For sustainable seafood choices. ——Where the assessments show products come procurement policy available concerns with fisheries, assist Our long-term goal is to have all on www.masters.com.au, suppliers to develop improvement from sustainable our wild-caught seafood range with its first store opened plans and adopt more certified to Marine Stewardship sources. in September 2011. sustainable fishing practices.

(1) United Nations (UN) Food and Agriculture Organisation (FAO) State of the World’s Fisheries and Aquaculture report, 2010.

18 Feature: Feature: any Masters products with FSC logo showing. Select MSC products canned tuna, salmon and frozen fish range images + MSC logo.

MSC certified Select tinned and frozen fish.

Quality Assurance, labels, care instructions, ——Home Brand Lemon Flavoured Product Safety, environmental and country Crumbed Fish 500g – Information and of origin claims are correct, undeclared allergen; properly verified and described ——Home Brand Fruity Rings 585g Labelling in a way that does not mislead our – metal contamination; and customers or the general public. The Quality Assurance (QA) ——Almond Kernels 750g – function is an integral part of salmonella detected. the Woolworths Limited business Product Recalls Apparel and General Merchandise with over 70 staff engaged in Woolworths conducts consumer recalls in 2011: quality assurance activities in product safety recalls in line with Australia, New Zealand and Asia. ——Dick Smith: DSE brand 7 inch the Food Standards Australia and portable DVD player model Private label, fresh food and New Zealand (FSANZ) Product numbers G7152 and G7153 – exclusive brand products sold Recall Protocol and the Australian internal lithium-ion rechargeable in Australia and New Zealand Competition and Consumer battery may overheat; are governed by a comprehensive Commission (ACCC) Product ——BIG W: Tinkers Pull-A-Long process which ensures we meet Recall Guidelines. Protecting our Snake & Dog – dropping the all regulatory and Woolworths’ customers from potential product product some parts may break requirements. safety hazards is very important off into small pieces; Assessments are completed to us. Many product recalls are throughout the life of the product, initiated by suppliers when they ——BIG W: Tinkers Wooden Toy which includes evaluation at become aware of safety issues or Animal Car – dropping the concept, pre-production, artwork, by our quality assurance team product some parts may break production, pre-shipment and as a result of compliance checks off into small pieces; on-shelf stages. of products. ——BIG W: Pink Sugar Sundresses Product packaging and labelling Woolworths has comprehensive – beading on dresses found to for our own brands are assessed processes for conducting recalls have sharp points and edges;

at various stages of product in a speedy and efficient manner. and For personal use only use personal For development to ensure compliance Food and liquor recalls in 2011: ——BIG W and Supermarkets: with regulatory requirements. Abode and Home Collection ——Home Brand Frozen Mini Products are assessed to ensure Oscillating Fan Heater – Vegetable Spring Rolls 12PK all required warnings, age grade manufacturing assembly fault. 600g – undeclared allergen; recommendations, measurements,

19 Woolworths Limited Corporate Responsibility Report 2011

Our Community

Woolworths Limited has the simple philosophy of demonstrating corporate leadership by doing the right thing. Our community investment aims to create a positive impact for both the community

and the business. For personal use only use personal For $62.3m was contributed to the community in 2011.

20 Our Community Our Programs Working with schools and Investment Strategy Indigenous kids in the area, the Fresh Food Rescue program encourages attendance through live link-ups with some Target Focus area: Sustainability/ $13.5m of the Australian Rules football Health and Wellbeing We have a target of the equivalent players in Melbourne. The cash. of 1% of pre-tax profits going Woolworths has a proud record curriculum was developed by our towards supporting our of food donation in partnership community partner and endorsed communities. Our businesses with food relief organisations in by the Northern Territory achieve this by supporting Australia and New Zealand. Department of Education. As organisations, programs and We work with many food relief well as financial support of the $25.0m initiatives in our core focus charities that collect food from pilot, Dick Smith leveraged its leverage. areas in a manner that is relevant our stores and provide meals for relationship with suppliers to to their business objectives, people in need in our communities. organise interactive white boards strengths and skills. Organisations that collect from for the participating schools. our stores include Foodbank, Focus of our investment OzHarvest, SecondBite, FareShare, Fresh Food Future $6.7m Churchlands, House of Hope and in kind. Our initiatives are governed The Salvation Army. Focus area: Rural and Regional by four priority focus areas. Communities/ Sustainability Each of our businesses will and Environment address these focus areas in Fresh Food Kids Hospital The United Nations Food and ways that relate to their Appeal Agriculture Organisation (UNFAO) customers and key stakeholders. Focus area: Health and Wellbeing $17.1m estimates that feeding a global The priority focus areas are: Thanks to the generosity of our population that is projected to in staff and ——Sustainability and environment; customers and commitment of reach 9.1 billion in 2050 would management time. ——Health and wellbeing; our staff, $9,063,176 was raised require a 70% increase in food ——Education and employment; for the Woolworths Fresh Food production. The UNFAO and Kids Hospital Appeal in 2011. projections indicate that 90% These funds will help children’s of the gains in production needed ——Rural and regional hospitals and children’s wards will be achieved by increasing yield communities. around Australia. growth and cropping intensity on existing farmlands rather than Evaluating and reporting Technologies in the by increasing the amount of land our community investment Territory brought under agricultural production(1). Woolworths Limited is an active Focus area: Education and member of the London Benchmark The challenge of boosting crop Employment Group (LBG). The LBG provides yields is made more pressing by a process for measuring, Through its partnership with climate change. In Australia, benchmarking and reporting our Richmond Football Club’s there is the additional concern of investments, with transparency Tigers in the Community the ageing of the farm population Grab a piece of fruit and donate to in Australia and New Zealand. program, Dick Smith supported which has been evident in official Woolworths Fresh Food Kids Hospital Appeal. an education pilot Technologies statistics in Australia since 1981(2). For more information, go to in the Territory. The pilot aimed www.lbg-australia.com Our Fresh Food Future program to increase attainment levels in aims to contribute to developing

six schools in Alice Springs. For personal use only use personal For

A snapshot of the causes we supported in 2011 Fresh Food Kids Hospital Appeal $9,063,176 Fresh Food Future Program $2,282,837 (1) How to Feed the World in 2050 was the BIG W Big Heart Appeal $1,331,764 theme of the UN Food and Agriculture Employee Matching Award Scheme $86,796 Organisation’s (FAO) expert forum in Muirfield High School taking part in Head Office – Charity of the Month $648,958 October 2009. the Art4Agriculture Archibull Prize. (2) Stock donations – food and emergency relief $2,250,201 Garnaut & Helali 1999.

21 Woolworths Limited Corporate Responsibility Report 2011

Our Community

solutions for these challenges and Foundations for the Future and the carbon footprint of NSW, every year Woolworths it reaffirms our commitment to We have commissioned a of farming businesses. has offered 30 young Australians investing in the future of rural the opportunity to attend the comprehensive study in food Sustainable fisheries Australia and food security. security and future of food Woolworths Agricultural In 2011, we invested and Fresh Food Future draws together production in Australia. The Business Scholarship program. committed to investing a total of a number of initiatives to address study will investigate major In 2011, $140,000 was invested $110,000 in partnerships focusing two main objectives: impacts on food production and in this program. on promoting sustainable fishing. help us understand the overall The 12-day course at the ——The advancement of Woolworths partnered with policy landscape and the competing Woolworths support office in agricultural sustainability; and Sustainable Fisheries Partnership interests which impact the food north-west Sydney gives ——Building leadership capacity Foundation, a US-based not-for- production, future demands and participants valuable insights in the sector. profit promoting sustainable consumer preferences, quality, into key issues and opportunities fishing and Taronga Conservation Fresh Food Future has four supply availability and prices. on the business of agriculture from Society’s Fish4Life campaign to program areas which help direct academics, Woolworths’ business raise community and consumer our initiatives and investment. Powering Productivity leaders and other industry experts. These are: In partnership with Landcare awareness with regard to sustainable seafood consumption. Investing in Youth Studentship ——Foundations for the Future – Australia, Woolworths has invested We also provided a grant of program includes research to support over $6.5 million to support over $25,000 to Northern Prawn sound policy development. 150 projects around Australia Woolworths funded $38,000 since 2007. Landcare oversees the Fishery Industry group for one participant in this program ——Powering Productivity – focuses progress of the projects and works to help them achieve Marine run by the Rural Industries on adoption of sustainable to communicate the outcomes Stewardship Council certification. Research and Development agriculture practices and with the broader industry. For more information, refer to Corporation. The studentship increasing production capacity. the Fish and Seafood section in offers, the undergraduate student ——Leaders for the Future – focuses Sustainable horticulture Responsible Retailing on page 18. financial support and a mentor on supporting training, capacity projects Leaders for the Future who can provide valuable career building and leadership in the In 2011, we committed a total advice. Under the program we rural sector. investment of $724,000 supporting Woolworths Agricultural offer relevant industry placements ——Consumer Connections – sustainable agriculture in the Business Scholarships to gain experience in the student’s provides our customers the horticulture sector across Australia. Since 2007, in partnership with chosen field of study. information they need to make The projects funded improved the University of Western Sydney

more sustainable choices. water use, nutrient management and the Royal Agriculture Society For personal use only use personal For

Cassia Ferguson, from Mudgee, was one of 30 young people to take part Outgoing CEO Michael Luscombe presents a cheque in the Woolworths Agricultural Business Scholarship Program. for $15.8m for the Salvation Army’s Flood Appeal.

22 2,247t of food, equivalent to 2,027,900 meals, Across New Zealand (left) and Australia (centre) our operations were affected by extreme weather events and earthquakes. donated to food relief In the aftermath of the earthquake, Auckland based staff don Canterbury colours in solidarity with those people affected (right). charity partners.

Art4Agriculture Archibull Prize management skills and techniques supermarket customers and team During 2011, Australia and New in the primary production sector. members to the Pike River Miners’ Art4Agriculture provides Zealand were struck by significant These scholarships give Australian Trust Fund. The funds raised secondary school students with natural disasters, including flooding citizens the opportunity to study supported the families of the agricultural and environmental in Queensland and Victoria, farming practices in New Zealand, miners lost at the Pike River awareness through art, creativity Cyclone Yasi in Queensland and Europe, Asia and the Americas coal mine. and teamwork. Woolworths has earthquakes in Christchurch. and those countries best suited been a sponsor of the program In Christchurch’s time of need These events provided challenges to the scholar. for the past two years, providing following the series of devastating to the communities we operate $15,000 in funding in 2011. Consumer Connections earthquakes, Countdown helped in, our customers, employees raise funds for the Salvation Army Primary Industry Centre for Our partnership with and suppliers, but also led to an to support those communities Science Education (PICSE) Art4Agriculture and Taronga outpouring of support from the affected. Customers and team Conservation Society’s Fish4Life public, businesses and government. In partnership with PICSE we members gave generously and campaign are designed to help In Australia, our staff and promote agricultural sciences as over NZ$735,000 was raised. increase consumer awareness customers, through BIG W, part of the secondary school Progressive Enterprises also about sustainable food and Dick Smith and Woolworths curriculum. We provided $68,000 contributed NZ$100,000 towards agriculture. We will continue Supermarkets, donated in support of this program. PICSE the Salvation Army Canterbury to develop more targeted $10,377,916. Woolworths’ judged and awarded the Science Earthquake Appeal. Investigation Awards during partnerships and campaigns own contribution was a further September 2011. in the coming years $7,900,000, with an additional Overseas emergency relief $250,000 donated by ALH. Australian Rural Leadership Emergency Relief for and general aid A total contribution of $18,527,916 Foundation was donated to the Salvation Army Oxfam Australia is our official Natural Disasters flood appeal to families in need of Woolworths has been a long-term partner in the case of overseas immediate financial assistance, supporter of the Australian Rural Australian emergency relief natural disasters. Oxfam Australia financial counselling and long-term Leadership Foundation, funding has the experience and knowledge one scholarship annually. In 2011, The Salvation Army is our official community rebuilding projects. partner in the case of domestic required to run community we provided one scholarship to the Our customers and staff in New natural disasters. During a severe programs in developing countries, value of $55,000. The Foundation Zealand and Australia, through domestic disaster, such as including an understanding of the is committed to enhancing the Supermarkets and Dick Smith, bushfires and floods, our stores political situations and the ability nation’s social, economic and raised over NZ$1.48 million for also mobilise in-kind support and to ensure funds are monitored environmental viability and the Salvation Army Canterbury resources for their communities. and go to the intended recipients. resilience. To this end, it provides During 2011, $14,587 was donated Earthquake Appeal. leadership programs for individuals, Woolworths Limited businesses to Oxfam. As a business we hope that we never businesses, communities and will only channel donations face these situations again, but nature organisations that have a through the Company’s appeals. is unpredictable. We will remain commitment to rural, regional Impact of emergency relief prepared to implement our programs, and remote Australia. New Zealand emergency on community investment ($m) whether it is providing an avenue For personal use only use personal For relief $ (million) Nuffield Australia Farming for donations or ensuring our stores 10 36.30 Scholarships In the face of a series of natural are stocked to meet the needs of our customers in affected areas. Woolworths is a Nuffield sponsor disasters and the tragic events 10 36.37 and we funded one Scholarship of the Pike River Mine disaster, 11 40.83 the team at Progressive in 2011 to the value of $52,800. 11 62.31 Nuffield Australia provides a Enterprises reacted quickly scholarship scheme with the to the needs of the community. Total (Excl Emergency Relief) 98 objective to increase practical Over NZ$235,000 was raised Total farming knowledge and through donations from

23 Woolworths Limited Corporate Responsibility Report 2011

Our Environment

Woolworths’ Sustainability Strategy 2007-2015 Resource efficiency 2010 2011 has set the main targets and commitments for (1) Carbon intensity (t CO2-e/$m EBIT) 956 881 the business. Ongoing investment and dedication Energy intensity (GJ/$m EBIT)(2) 3,497 3,325 to achieve targets and monitor results show that Water intensity (kL/$m EBIT) 586 560 Woolworths continues to focus on improving its Waste intensity (T/$m EBIT) 48 45

efficiency and performance. For personal use only use personal For

24 CLIMATE CHANGE ENERGY EFFICIENCY Through investment in energy 137,979 MWh of efficiency and low carbon electricity saved this year – a result technology, Woolworths is of energy efficient minimising its impact on technology installed climate change and its exposure prior to the end to carbon pricing. of 2011.

EMISSIONS 10.9% 29.2% 342m reduction reduction litres

of carbon emissions in 2011, achieved in vehicle fleet saved through water compared to business-as- carbon emissions. efficient equipment usual projections. and rainwater harvesting. $55.7 2.94m 4,978 million litres tonnes

has been invested in energy of biodiesel made from of food waste, from efficiency since 2007, which waste tallow and oil used 69 Supermarkets, sent For personal use only use personal For will deliver approximately by Logistics fleet. to EarthPower, generating $93 million in savings by 2015. 1,593 MWh of electricity.

(1) (2) Scope 1 and 2 emissions only, Energy from stationary sources. from stationary energy sources.

25 Woolworths Limited Corporate Responsibility Report 2011

Our Environment

Summary of performance against sustainability targets and commitments

Target Progress status Comments

2010 2011

CO2-e emissions reduction from facilities

Overall 40% CO2-e reduction by 2015 (on projected growth levels), 10.9% reduction in carbon emissions, compared bringing our emissions back to 2006 levels. to our original projected growth emissions for 2010.

Build all new Woolworths Supermarkets opening from September 2008 to conform to our sustainable design guidelines to minimise energy use and environmental impacts.

Achieve 25% reduction in CO2-e emissions per square metre for new 22.8% reduction in carbon emissions per square metre, sustainable store designs compared with business-as-usual designs. compared to business-as-usual Supermarkets in 2008.

CO2-e emissions reduction from transport Establish accurate baseline data in 2008 for all modes of transport.

Establish a forum with major transport suppliers to develop a low carbon strategy for our third party distribution network. Conduct a comprehensive study on biodiesel availability in Australia, including quality, vehicle compatibility and cost impacts. Trial the use of hybrid powered trucks for home deliveries.

25% reduction of CO2-e emissions per carton delivered by Woolworths owned 16.3% reduction in emissions achieved to date. trucks by 2012.

30% reduction on 2006 levels in CO2-e emissions from company car fleet 29.2% estimated reduction in emissions when of 3,100 cars (dependent on mix of car size and fuels chosen) by 2010. comparing 2011 emissions per vehicle and using baseline fleet numbers of 3,100 vehicles. Water efficiency Develop a more complete baseline of water usage.

Roll out the Water Wise project nationally for all our Supermarkets.

Reduce water use by at least 200 million litres a year by 2010. Estimated 317 million litres of water saved in Australian Supermarkets in 2011. Ethical sourcing Develop and implement an ethical sourcing policy.

Identify sustainable sourcing gaps and develop appropriate policies. Sustainable seafood strategy now complements For personal use only use personal For the palm oil policy and paper certification position. Conduct staff training and capacity building for our buying teams Ethical sourcing, environmental claims and sustainability to help them understand issues and types of third party certification required issues for product development are covered in the from suppliers. Buying Skills Development Program.

In progress Target Exceeded Cancelled

Completed Delayed

26 Target Progress status Comments

2010 2011 Packaging Establish a supplier forum to work together on more sustainable packaging. Supplier and industry forum held on harmonisation of eco-labelling. Establish more comprehensive baseline data for packaging of private label Packaging categorisation has been conducted products, including information on materials consumption, local/imported for private label and exclusive brands. origin, recycled content and recyclability. Review private label procurement policy and supplier guidelines. Sustainable packaging guidelines were finalised and are in use for packaging reviews. Conduct an audit of compliance with the ECOPP and ISO 14021 for private label products. Trial the use of PIQET for private label products.

Report annually to the National Packaging Covenant (NPC) and Corporate Responsibility Reports delivered each year. Woolworths Corporate Responsibility Report. NPC now superseded by Australian Packaging Covenant, which also includes annual reporting. Provide training to 50 suppliers by 2008. Sustainable Packaging Specialist will work with staff and vendors on implementing sustainable packaging options. Use PIQET to evaluate 20 private label products by 2010.

Continue to replace waxed cardboard and foam boxes with reusable Use of crates reduced cardboard box usage by an plastic crates where possible, with a targeted increase of 1.7 million estimated 42.4 million boxes in 2011. to 3.4 million crates. Waste minimisation Identify organics recycling technologies similar to EarthPower for Comprehensive assessment conducted on organic recycling source separated food waste from supermarkets outside waste processing technologies and facilities. Priorities Sydney and determine commercial feasibility. have been set for diversion programs and trials have commenced. Implement a waste audit program for all stores and distribution centres.

Continue phasing out polystyrene. Small reduction in polystyrene recycling, use continues to be minimal. Implement a staff education program to encourage greater recovery of plastic and cardboard.

For personal use only use personal For Eliminate food waste from the general waste stream by 2015 5,173 tonnes of food waste diverted to composting (where receiving facilities are available). and waste to energy facilities, and 2,247 tonnes of fit for consumption food diverted to food relief agencies. Reduce amount of plastic in the general waste stream to less than N/A No waste audits completed in 2011. 1% by weight by 2010. Reduce amount of cardboard in the general waste stream to less than N/A No waste audits completed in 2011. 1% by weight by 2010.

27 Woolworths Limited Corporate Responsibility Report 2011

Our Environment

Climate Change ——Achieve 25% reduction in CO2‑e commenced 37 new projects emissions per square metre for in 2011, which reduced electricity Why is this material new sustainable store designs use by 18,842 MWh and reduced to our business? compared with business‑as‑ carbon emissions by 18,113 tonnes usual designs. during the year. 10.9% Climate variability and more Energy efficient and low carbon lower carbon emissions frequent extreme weather Transport technology continues to be achieved in 2011, conditions can affect the ——Reduce CO2‑e emissions per implemented in existing and compared to business- productivity of our suppliers. carton delivered by Woolworths new stores. Project CO2, the Extreme weather events, like owned trucks by 25% by 2012. as-usual projections. retrofitting of energy efficient flooding, cyclones and bushfires, ——Reduce CO2‑e emissions from equipment in existing stores, can also cause disruptions to company car fleet of 3,100 cars has continued. Dan Murphy’s supply and affect food by 30% by 2010. and BWS stores are being affordability. trialled with similar technology The Australian Government’s Our 2011 performance from Project CO2. proposed carbon price will affect $55.7 For 2011, our total carbon Reflective roof surfacing and the business with pass-through million has been improved air conditioning controls costs from upstream, for example emissions in Australia and New invested in energy are being implemented in BIG W energy supplies and cost of goods, Zealand were 4.09 Mt, remaining stores and energy management efficiency since 2007, and downstream costs such as the same as the previous year, systems are being installed in which will deliver landfill levies. Woolworths has despite the business continuing Dick Smith, Dan Murphy’s, approximately positioned itself through to grow. The static level of BWS and Petrol stores. $93 million in significant investment in low emissions occurred through savings by 2015. carbon technology to minimise ongoing investment in energy the effect of a carbon price. efficiency, the changing to Renewable energy refrigerants with a lower global The two photovoltaic systems warming potential and through What is our commitment? at Petrol sites in Hume and improvements in logistics. Belconnen in the Australian In summary, our commitments Capital Territory generated and targets are: Facilities 84,087 kWh, reducing carbon Facilities Emissions from our facilities emissions by 90 tonnes. ——Reduce our CO2-e emissions totalled 3.42 Mt in 2011, which by 40% by 2015 (from projected is a 1.4% reduction in emissions growth levels), bringing our compared to the previous year. emissions back to 2006-07 levels. The Group Engineering Team

Total emissions from facilities (million tonnes of CO2-e) Emissions from Woolworths-owned fleet (g CO2-e/carbon delivered)

4.5 07 117

For personal use only use personal For 08 116

4.0 09 109 10 106 -e ( million s) Actual Emissions 11 98 3.5 Business-as-usual 2015 Target CO tonnes

3.0 2007 2008 2009 2010 2011 2012 2013 2014 2015

28 Emissions from facilities (tonnes of CO2-e) Scope 1 Scope 2 Scope 3 Total ALH Group 18,533 236,557 31,045 286,135 BIG W 7,045 183,434 36,109 226,588 BWS 1,914 62,863 9,181 73,958 22.8% Corporate 659 36,858 7,338 44,855 lower carbon emissions Dan Murphy’s 1,045 40,388 5,860 47,293 generated per square Dick Smith 259 32,548 4,942 37,749 metre floor space by Dick Smith NZ 0 1,296 171 1,467 new Supermarkets built Fabcot 0 17,084 2,663 19,747 in Australia in 2011, Home Improvement 214 4,498 667 5,379 compared to stores Langton’s 24 249 35 308 built in 2008. Logistics 972 126,775 18,377 146,125 Progressive Enterprises Limited 76,895 35,840 22,692 135,427 Petrol 1,130 38,712 5,473 45,315 Statewide Independent Wholesalers 910 1,973 135 3,018 Supermarkets Australia 238,596 1,706,609 391,028 2,336,233 34% Thomas Dux 6 5,343 806 6,156 reduction in energy Grand total 348,202 2,531,027 536,523 3,415,752 use achieved by BIG W Inverell, compared to a business-as-usual store.

Emissions from company cars (tonnes of CO2-e) Country 2007 2008 2009 2010 2011 Australia 20,314 21,670 19,719 18,362 18,041 New Zealand 3,050 3,838 2,451 2,415 2,135 Total 23,364 25,508 22,170 20,777 20,176

Transport emissions by use (tonnes CO2-e) End Use New Zealand Australia Business travel 2,604 19,899 Home delivery 943 Victorian logistics fleet 18,653 Logistics third party rail 52,974 Logistics third party road 23,786 544,783 Trolley collection 12,898

Total emissions by source – New Zealand Total emissions by source – Australia For personal use only use personal For

Electricity purchased 25.6% Electricity purchased 72.7% Fuel combustion (stationary) <0.1% Fuel combustion (stationary) <0.1% Fuel combustion (transport) 16.1% Fuel combustion (transport) 16.5% Gas combustion (stationary) 1.3% Gas combustion (stationary) 0.3% Refrigerant loss 45.9% Refrigerant loss 6.6% Waste to land ll 11.1% Waste to land ll 3.9%

29 Woolworths Limited Corporate Responsibility Report 2011

Our Environment

Transport The company car fleet conversion Water to diesel and hybrid options is The Woolworths owned logistics now 93% complete, but due to Why is this material fleet has continued to reduce fuel acquisitions and growth in the to our business? use and emissions through business the fleet is 20.7% larger 16.3% improved consolidation of loads, than our baseline. As with any resource used by reduction in carbon network optimisation and the Woolworths, it makes good emissions per carton transition to biodiesel made business sense for us to use delivered has been from waste material. Other Emissions water efficiently. This reduces achieved this year, Total emissions from Woolworths’ Ozone depleting substances both costs and exposure to risks company car fleet have reduced where water may have restricted compared to the Total emissions of ozone depleting baseline year. by 13.6%, compared to our 2007 supply. As a retailer of fresh food, baseline. This is a reduction of substances were 35.7 tonnes from we depend upon productivity and 3,188 tonnes of carbon emissions, refrigerant gas loss, primarily R22 reliable supply from Australian or the equivalent of taking from air conditioning. Emissions farmers. Sustainable use of water 741 vehicles off the road. in 2011 increased by 45%, in the supply chain is critical for 29.2% compared to the previous year. food security. reduction achieved Total carbon emissions by division (tonnes CO2-e) in company car fleet emissions (based on ALH Group BIG W emission per vehicle and BWS a fleet of 3,100 vehicles). Corporate Dan Murphy's Dick Smith Dick Smith NZ Fabcot Home Improvement Langton's Logistics Progressive Enterprises Limited Petrol Statewide Independent Wholesalers Supermarkets Australia Thomas Dux 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

Electricity use (MWh)

ALH Group BIG W BWS 2009 Corporate 2010 Dan Murphy's 2011 Dick Smith Dick Smith NZ Fabcot For personal use only use personal For Home Improvement Langton's Logistics Progressive Enterprises Limited Petrol Statewide Independent Wholesalers Supermarkets Australia Thomas Dux 0 500,000 1,000,000 1,500,000 2,000,000

30 Most of our stores are located in the development of a water footprint Our Liquor division implemented a shopping centres and we are billed module for horticultural suppliers, project to reduce the weight of glass for water through lease outgoings. with the module complementing used in the bottles of 17 of our With only 16% of our Supermarkets the carbon calculator tool that was private label wine products. The individually metered, our total also developed with funding from reduction in the individual weight water use is extrapolated from Woolworths. of bottles ranged from 70 grams 317 million litres of water metered data. to 140 grams, and when comparing estimated as saved All water supplied to and Packaging this reduction to the volumes sold discharged from Woolworths’ since the changes, we have estimated through water efficient stores and sites is managed by Why is this material a 854 tonne saving in glass use. equipment in Australian licensed water authorities. to our business? Supermarkets. We draw no water directly from Packaging serves a critical role in Waste and Recycling bores, rivers, or other natural protecting products in transport, sources. We treat wastewater Why is this material during handling, on shelves and for reuse in irrigation at one of to our business? when our customers take the our Supermarkets, a requirement products home. With thousands Woolworths prides itself on being of the development approval. of private label and exclusive brand an efficient business throughout the 25 products there are opportunities whole of its supply chain. This focus million litres of What is our commitment? to ensure that the packaging we on efficiency helps us reduce waste, rainwater harvested improve the profitability of the In summary, our commitment and use is ‘fit for purpose’ and uses at Sydney and Wyong business and provide benefits to target is: materials efficiently. regional distribution customers through lower prices. ——Reduce water use by 200 million centres. What is our commitment? litres a year by 2010. What is our commitment? In summary, our commitments Annual water savings from Our 2011 performance and targets are: In summary, our commitments Water Wise Project (ML) and targets are: All of our targets were achieved in ——Increase the number of reusable 08 44 ——Zero food waste in the waste previous years, but we continue to produce crates to 3.4 million; stream by 2015 (where facilities 09 172 monitor water use and the ongoing ——Review private label procurement are available); 10 302 savings from investment in water policies and supplier guidelines; ——Identify organics recycling efficient fittings, equipment and ——Establish more comprehensive 11 317 technologies for recycling food infrastructure. baseline data for packaging of waste from Supermarkets 98 For 2011, we have estimated private label; and Plastic bags issued per customer outside Sydney, and determine the water use in our Australian transaction (Supermarkets ——Review the packaging of 50% commercial feasibility; Supermarkets to be 1.83 GL and of our existing private label Australia only) ——Implement a waste audit average water use per Supermarket products by 2015. 08 1.97 continued to decrease. program for all stores and distribution centres; 09 1.87 Another large scale rainwater Our 2011 performance harvesting project was installed ——Increase the number of Sydney 10 1.75 at our Melbourne National We finalised our sustainable stores using EarthPower from 11 1.81 Distribution Centre in Mulgrave. packaging guidelines and will use 53 to 100 by 2010; and 98 The Hawthorn Football Club them to review the packaging of new ——Reduce the amount of invested in this infrastructure, and existing private label products. cardboard and plastic in the with Woolworths providing the To ensure compliance with these general waste stream to less roofing for rainwater capture and commitments, we have recruited than 1%, by weight, by 2010. land for installing tanks. The water a Sustainable Packaging Specialist is used to irrigate the Club’s nearby to conduct the reviews on packaging For personal use only use personal For Our 2011 performance training oval and in residential areas. and identify opportunities for improvement. The business continues to reduce Our focus for water has shifted waste within the business. Waste further towards the supply chain, A project has also been completed to landfill from Supermarkets in particularly to the farmers who on identifying all of the packaging Australia and New Zealand produce the food the business and systems used by private label and reduced by 0.7%, whilst recycling our customers rely on. The Fresh exclusive brands. Using sales volumes increased by 2.7%. Food Future program includes volumes, priorities have been set Waste volumes are now available grants and funding to a range of for reviewing certain packaging for BIG W and will be reported suppliers. One example is funding types, products and suppliers. in the future.

31 Woolworths Limited Corporate Responsibility Report 2011

Our Environment

Food waste We will continue to minimise waste and, where products cannot Our target of zero food waste to be sold, our first choice will be one landfill by 2015 continues to be of our diversion programs. 213,105 a key driver in the business. A comprehensive assessment tonnes of material Woolworths is constantly looking diverted from landfill. was conducted on all opportunities for opportunities to avoid food for diverting food waste from waste and we will continue to Australian Supermarkets to review how we manage our stock. beneficial reuse, whether to Focused efforts have successfully farmers for stock feed or led to reduced food waste in our composting, commercial diversion programs, which include composting, and waste to energy. energy generation and food rescue. One of the opportunities identified led to a trial in Adelaide with the diversion of organic waste material from nine stores to a commercial Waste disposal and recycling – New Zealand composting facility, with 194 tonnes of food waste diverted in eight months. Supported by staff training and regular reporting, this trial will expand to include over 30 stores.

Cardboard 55.8% Waste to land ll (PEL) 41.7% Waste audits Plastic lm 2.5% A waste audit program was implemented for Supermarkets in 2009, but no waste audits were conducted during 2011.

Electronic waste

Waste disposal and recycling – Australia Through our membership of Product Stewardship Australia Cardboard 53.5% we have been an active participant Waste to land ll in the consultation with the (Supermarkets and BIG W) 42.0% Federal Department of Plastic lm 2.1% Sustainability, Environment, Food waste to composting Water, Population and and energy 1.6% Communities on the development Food charity 0.7% of appropriate legislation for Polystyrene 0.0% an end-of-life recycling program Waxed Cardboard 0.0% for televisions and computers. Other (including glass and commingled recycling) 0.1%

Waste disposal and recycling – Australia and New Zealand

For personal use only use personal For Cardboard 53.8% Waste to land ll (Supermarkets and BIG W) 42.0% Plastic lm 2.1% Food waste to composting and energy 1.4% Food charity 0.6% Polystyrene 0.0% Waxed Cardboard 0.0% Other (including glass and commingled recycling) 0.1%

32 Eco Ambassador 55,560 tonnes of paper to produce reported differed to those reported Program and was a 2.6% reduction in paper in the Corporate Responsibility use compared to the previous year. Report as the latter includes all Our Eco Ambassador Program The Australian catalogues refrigerants and Scope 3 trains staff on sustainability and continue to be produced on emissions. All emission how to engage their co-workers Programme for the Endorsement calculations complied with the 2,477 kg of mobile phones, in sustainable work practices. of Forestry Certification (PEFC, methodology set by NGER. The Program continues to be www.pefc.org) certified paper, 106,131 printer successful in our Australian which promotes sustainable forest Spills consumables Supermarkets division, with a management. (including cartridges) calendar of environmental events In 2011, there were eight incidents and 1,656 kg of now used to engage all staff Biodiversity of spills at Woolworths Petrol batteries recycled on sustainability initiatives. sites, with three of these requiring at Dick Smith. BIG W Active participation has occurred Of the 104 property development notifications to a regulatory body. in Clean Up Australia Day, Earth projects that were completed, The largest spill was an estimated issued satchels in Hour, World Environment Day under construction or in planning 1,300 litres of unleaded petrol at stores for the recycling and National Tree Day. during 2011, biodiversity our site in Gunghalin, ACT. of 881 mobile phones, assessments were only required Emergency services and regulators An internal review has been which generated for 12 of these projects. Seven attended the site, clean-up was conducted to identify opportunities $1,554 in donations Vegetation Management Plans implemented and the incident to expand the Program further. have been prepared to minimise investigated, identifying the to cerebral palsy the impacts to any threatened cause and corrective actions charities. Paper Use species, habitats for threatened issued to the fuel carrier. Office paper use in our support species or ecological communities. offices was 51,396 reams of paper, Fines an 18.4% reduction compared to Environmental There were no significant the previous year. We have Compliance environmental incidents that completed the transfer to FSC 38.9 incurred monetary fines for certified office paper for all Regulatory reporting million clothes hangers Woolworths. Australian businesses (excluding were reused and Woolworths Limited submitted ALH) and total office paper use for reports for the Energy Efficiency recycled by BIG W. the divisions supplied by this Opportunities (EEO) Act and the contract was 416,641 reams. National Greenhouse and Energy In 2011, the Woolworths business Reporting (NGER) Act. The divisions of Supermarkets, BIG W, 2010 EEO report is available at Dick Smith and Dan Murphy’s www.woolworthslimited.com.au. distributed 862.2 million The second NGER report for the catalogues in Australia. In New Company was submitted before Zealand, our Supermarkets and 31 October 2010 and covered the Dick Smith issued 133.4 million Scope 1 and 2 emissions for the catalogues. This combined 2010 financial year. The emissions quantity of catalogues required

Materials diverted from landfill (tonnes) 2007 2008 2009 2010 2011 Australia Food waste to composting and energy 4,860 5,354 5,785 5,948 5,173 Food to charity 700 1,251 1,354 3,069 2,247 For personal use only use personal For Cardboard 147,189 165,908 167,787 170,585 175,518 Plastic film 6,055 6,057 6,207 6,956 6,807 Polystyrene – 589 99 98 81 Other – 220 604 312 323 Total (Australia) 158,804 179,379 181,836 186,968 190,149

New Zealand Cardboard – 20,547 19,105 20,559 21,987 Plastic film – 641 – – 969 Total (Group) 158,804 200,567 200,941 207,527 213,105

33 Woolworths Limited Corporate Responsibility Report 2011

Our People

Woolworths’ key people focus is on ‘developing talent – realising potential’. The Company remains one of the largest employers in Australasia with

over 190,000 team members. For personal use only use personal For

34 Employee Capability COMPANY FOCUS

As our organisation continues to change and grow, our focus has remained on developing, building and diversifying the capability of our people for Our key people current and future opportunities. In addition, developing our female team members and tapping into under-utilised talent groups continues to be focus is on a key objective. ‘developing Over the last 12 months, we invested over $60 million in learning and development initiatives across the organisation. Our training programs talent – realising are built on the foundation of our Leadership Qualities to help drive the desired behaviours from our teams. Some of these programs include: potential’. mentoring, networking sessions, cross-divisional learning opportunities, targeted leadership programs for our management and executive teams and special project work. We are proud that in 2011, 47% of our new Executive appointments and 73% of our new Future Leader appointments were internal candidates(1).

WORKFORCE 43,000 new employees 30%decrease 47%decrease commenced work in Lost Time Injury in discrimination claims in Woolworths Frequency Rate. lodged in discrimination businesses. tribunals.

DEVELOPING TALENT

For personal use only use personal For $60m 47% invested of Executive appointments were in learning and internal candidates. development training.

(1) Woolworths paid employees only.

35 Woolworths Limited Corporate Responsibility Report 2011

Our People

At Woolworths, we are committed to protecting the safety, health and welfare of our employees, customers, contractors, visitors and the community. Safety is a key aspect of our business and underpins all operational activity.

Safety and Health Our 2011 performance by the Woolworths Management Culture/Leadership/ Board and Executive Leadership Recognition Our vision for safety at Woolworths In 2011, we achieved a reduced Team in February 2010. The is ‘Destination ZERO’ – zero harm Lost Time Injury Frequency Rate Strategy resulted in the agreement Safety Leadership to our people, environment and (LTIFR) of 8.51, 30% lower than of four key imperatives that were (Safety Code) community. We will do this by 2010. Unfortunately, we missed finalised and rolled out during encouraging people at all levels our target of 8.0 by 6%. In addition, 2011. The four key strategic In April 2011, the Safety Leadership of the organisation to actively care we experienced an 11% reduction imperatives are: (Safety Code) program was about their own safety and the in the number of our customers ——Recruitment and induction; released, which is a program that safety of others. We are passionate injured in our stores compared outlines the businesses’ non- about safety and its integration to 2010. ——Non-trading area standards; negotiable commitments to safety into the way we do business. ——Safety leadership; and and provides a framework in which Destination ZERO is supported Prosecutions ——Safety communication. to make decisions (positive and by the following principles: negative consequences) based on The Victorian WorkCover behaviours and safety outcomes. ——We will make safety personal; Authority has issued separate Key Risk Working Groups The three critical safety messages ——No task is so urgent and no proceedings against Woolworths Our Safety Health & Executive that are delivered by this program service so important that we Limited in relation to: Committee (SHEC) has taken are: cannot take time to do it safely; ——An incident that occurred at a risk-based approach aimed at ——Our Safety Definition; ——We will aim to improve the the Westfield Shopping Centre, delivering a step change in the quality of life, now and for Southlands on 23 November safety performance of our ——Our Safety Code; and future generations; 2008; and businesses. The SHEC has ——Our Safety Behaviours. ——We are responsible for: ——An incident that occurred at the formed sub-committees referred Eastlands Shopping Centre, to as the ‘Key Risk Working ——Our own safety and health; Ringwood on 17 November 2008. Groups’ (KRWG) that will ——The safety and health of develop strategies to minimise our co-workers, customers, our businesses’ key safety risks. contractors and visitors; and Strategy ——We will recognise and The first key risk working promote excellence in safety Key strategic imperatives groups are targeting manual and health performance. The Woolworths Safety and task injury reduction.

Health Strategy was developed For personal use only use personal For

36 Woolworths Limited occupational disease rate (OCDR) results from 2009-2011 KPI 2009 2010 2011 Occupational disease rate (per 200,000 hours worked) 1.27 1.12 1.28 % change on previous year (15)% (12)% 14%

Excludes ALH Group, Progressive Enterprises Limited (PEL) and Dick Smith NZ. 74% reduction in Lost Time Divisional LTIFR results for 2011 Injury Frequency Rate % change on last in the Petrol division. Per Million Hrs Per 200,000 Hrs financial year Supermarkets 9.94 1.99 (22) Logistics 12.41 2.48 (30) BIG W 5.23 1.05 (36) Dick Smith 5.63 1.13 (25) Langtons 0 0 0 BWS 9.16 1.83 (49) Dan Murphy’s 6.23 1.25 (53) Petrol 1.06 0.21 (74) Progressive Enterprises Limited 5.71 1.14 (57) Thomas Dux 12.65 2.53 21 Corporate 1.91 0.38 48 Woolworths Group 8.51 1.70 (30)

Excludes ALH Group, Masters and Danks.

Woolworths Limited LTIFR results from 2009-2011 09 15.77

For personal use only use personal For 09 3.15 10 12.08 10 2.42 11 8.51 11 1.70

LTIFR (million hours worked)* LTIFR (200,000 hours worked) *Excludes ALH Group, Masters and Danks.

37 Woolworths Limited Corporate Responsibility Report 2011

Our People

CEO Safety Award communication, hazard and risk Monitoring management, incident reporting The CEO Safety Award was and analysis and safety leadership. Benchmarking awarded to the Petrol division These include Drive 4 Life (driver We benchmark ourselves against in 2010. The award recognises education), Move 4 Life (manual a mix of both international excellence in safety leadership task) and Safety the Woolworths retailers and companies in heavy and the criteria that the award Way (leading through safety). industry. In the 2010 Citigroup is judged on includes results, In addition, employees receive Global Markets Safety Spotlight innovation, leadership and training through standard report, which is a comprehensive ‘winning the hearts and minds’ operating procedures where report reviewing the safety of our frontline staff. safety requirements are integrated performance of ASX-listed Petrol achieved a 74% reduction and part of the way we do the task. companies, Woolworths was in its Lost Time Injury Frequency highlighted for its improvement Rate and demonstrated a high Move Smart Stay Safe in the logistics business. level of visible leadership (manual task injury commitment. Through engagement with employees and launching prevention) Pulse ‘Stop Think Safety’ it has made ‘Move Smart Stay Safe’ (MSSS) In 2011, the Company commenced safety personal and visible is a manual task injury prevention a roll out across most divisions throughout its operations. education program that has been of the electronic system PULSE, developed to complement our which is used to capture Safety Progressive Enterprises businesses’ existing manual task Hazards, Incidents and Limited Awards injury prevention strategies. Investigations. The PULSE MSSS was initially developed system will enable Woolworths Progressive Enterprises Limited for the Supermarket business to to produce intelligence reports Some of the staff now working won the ACC Workplace Safety mitigate the key manual task risks that will highlight trends in our in stores following their Award at the 2010 Manukau participation in the innovative within our stores. This program safety performance and provide Business Excellence Awards Woolworths Indigenous has evolved from its original Woolworths with the ability to Pre-employment Program. in New Zealand. format – a DVD and fact sheet better manage corrective actions – to an interactive online training to closure. Training program. The program is aimed at raising the awareness Education and training of manual task hazards and to Comprehensive training and provide our staff with a structured assistance programs are risk mitigation process. conducted for safety and health

Other safety and health key performance indicators 2009 – 2011 KPI 2009 2010 2011 Employee work-related fatalities ZERO ZERO ZERO Contractor fatalities ZERO ZERO ZERO *Other fatalities 1 2 1 % change in LTI frequency rate (16)% (23)% (30)% % change in new claim frequency rate (4)% 2% 1% % change in customer claims 10% (7)% (11)% % change in hours lost as a result of an injury in the last 12 months 2% (5)% 14%

Excludes ALH Group, Masters and Danks. * Customers/visitors. For personal use only use personal For Assistance programs Education/ Prevention/ Program recipients training Counselling risk control Treatment Workers YES YES YES YES Workers’ families NO YES YES YES Expatriate family members Community YES YES YES YES In-store radio and Customers involved Customers involved print messages in trauma in injury

38 Inclusive Workplace aim to have a 33% representation In 2011: of women at Board level and within ——615 of our Australian employees Woolworths is committed to an our senior executive group by 2015. identified themselves as inclusive workplace that embraces There are a number of objectives Indigenous (an increase and promotes diversity. We value, in place to work towards our vision, of 294 from 2010)(3). respect and leverage the unique which includes: 54% ——Approximately 280 people contributions of people with diverse of our workforce ——Continue to incrementally attended pre-employment backgrounds and experiences, are women. grow the number of women programs, run in collaboration to provide exceptional customer performing senior roles; with Indigenous communities service to an equally diverse and employment groups. community. ——Continue to create programs that prepare women to take 167 participants of these We have a public commitment on senior roles within the programs were made offers of to a diversity policy which applies business both in operational employment with Woolworths, to the Board of Directors, all and specialist support areas; with 92 people still in pre- 27. 8% employees of Woolworths Limited of our leadership roles and employment programs. and its subsidiary companies. are held by women. ——Ensure that leadership ——Our labour turnover percentage programs constitute 50% for people with Indigenous Multicultural diversity women participants. heritage is higher than average (3) We recognise that our employees at 54% . Our goal is for it to be no higher than our total average represent the customers that we Indigenous serve and in turn we celebrate labour turnover. the diversity that exists in our We continue to focus on building ——Some of our pre-employment organisation. We foster a culture relationships with Indigenous programs have had far higher where people treat each other with communities and targeted employee retention rates than dignity, courtesy and respect and Indigenous pre-employment this average. programs. ensure employees are prepared We have focused on delivering to act quickly and responsibly to Reconciliation Action Plan employment outcomes which have address any behaviour that does (RAP) assisted the long-term unemployed not align with these values or our We launched our RAP in June to return to work. The success of Leadership Qualities. 2011. The RAP is our formal this program has been sustained We recorded a 47% decrease in commitment to assisting in closing with mentor support which has discrimination claims lodged in the gap between Indigenous and been critical for staff retention. discrimination tribunals (both non-Indigenous people. As one of In addition, cultural awareness (1) state and federal) during 2011 . the largest employers in Australia, training has also been run for Ten claims were lodged compared we recognise the practical management teams supporting with 19 in 2010. None of these contribution we can make in this Indigenous employment initiatives. claims were lodged by an employee area. We have also signed an agreement who had recorded that they were with the Australian Indigenous of Indigenous heritage. Indigenous employment Minority Supply Council to look Pre-employment programs are for opportunities to work with The Woolworths Limited Reconciliation Action Plan artwork, produced by Gender balance designed to provide Indigenous Indigenous suppliers of both Gilimbaa, represents creation of Australian job seekers with a solid goods and services. country and the connection of people Women constitute 54% of our pathway into productive long-term through trade. workforce. We continue to focus employment within the retail Disability on the progress of gender diversity, sector. The past 12 months has particularly in leadership roles. seen the recruitment, placement We record the number of people In 2004, 16.7% of leadership roles and mentoring of unemployed who identify themselves as having

For personal use only use personal For in Woolworths Limited were held Indigenous Australians in a disability. Currently, this number by women. By comparison in 2011, Woolworths Supermarkets, is 567 in Australia(3). Our labour (1) turnover for this group is 25%(3). Excludes Cellarmasters, Hong Kong 27.8% of our leadership roles are BIG W, Dick Smith, Dan Murphy’s, and India. (2) held by women . BWS and Logistics. These We are currently reviewing with (2) We have agreed to become an programs have seen an increased the Australian Disability Network Excludes PEL, Dick Smith NZ, early adopter of the new Australian retention rate and a number of the impact of the Disability (Access Hong Kong, Danks, Becks, Gunns, India and Cellarmasters. Securities Exchange Corporate candidates promoted within the to Premises – Buildings) Standards year of commencement. (3) Governance guidelines for diversity. that commenced operation in Excludes PEL, ALH Group, India, As part of this commitment, we May 2011, on our staff and Hong Kong, Danks, Becks, Gunns, customers with disability. BMH and Cellarmasters.

39 Woolworths Limited Corporate Responsibility Report 2011

Our People

During 2010, we partnered with Recruitment Retention and engagement Workfocus, the National Disability Recruitment Coordinator We source candidates through Close monitoring of labour turnover appointed by the Federal a variety of channels to ensure (LTO) provides us with trend Government, to identify we locate those best suited to the information which helps us identify opportunities for disability role and company. During 2011, opportunities to better engage and employment. Through this more than 43,000 employees retain talent. partnership we have employed commenced work with Woolworths Woolworths Liquor Group, BIG W, 119 people with disability for 2011. businesses, with 66.5% of these Progressive Enterprises Limited employees aged under 25(1). Of the and Consumer Electronics (India) Human rights new executives we have appointed have recorded a reduction in LTO during 2010, 16% had international when compared to the same time Woolworths is committed to work experience bringing diversity last year. With the exception of upholding the human rights of of experience to our leadership these four divisions, an increase its employees and is a signatory teams. We have continued to in LTO of 2.1%(2) was recorded to the United Nations Global appoint both internal and external across all divisions during 2011, Compact. UNGC signatories female talent to fill a number of key when compared to the same embrace, support and enact, roles including: Senior Business time last year. Managers, Regional Managers within their spheres of influence, To help retain our employees, and Regional Property Developers. a set of core values in the areas we offer a range of financial and of human rights, labour standards, The Woolworths Graduate non-financial employee benefits. (1) the environment and anti- Program continues to be a These include professional Excludes PEL, ALH Group, Hong Kong, corruption. As part of the key source of talent. Open to development options, access to India, Dick Smith NZ, Cellarmasters, Company’s sphere of influence, Danks, Becks, Gunns and BMH in 2011. existing employees in their final flexible work arrangements, paid Woolworths is also committed year of a tertiary qualification, maternity leave and a range of (2) to upholding human rights 2011 data includes Woolworths, it provides tailored job rotations health and wellbeing programs. ALH Group, PEL and India, where through its supply chain (refer and development experiences 2010 data did not include ALH Group. Ethical Sourcing, page 14). in the graduate’s chosen field.

Workforce by employment type Board by age 2011 – Headcount Female Male Total 2011 Female Male Total Full-time 26,280 34,458 60,738 <25 0 Part-time 46,742 24,484 71,226 25-<35 0 Casual 30,022 27,809 57,831 35-<45 0 Total 103,044 86,751 189,795 45-<55 1 2 3 55-<65 1 2 3 Excludes Cellarmasters. >65 5 5 Total 2 9 11

Workforce by state/country 2011 – Headcount Female Male Total Australian Capital Territory 1,273 1,542 2,815 New South Wales 28,330 24,111 52,441 Executive Leadership Team by age Northern Territory 1,033 797 1,830 2011 Female Male Total Queensland 21,623 16,340 37,963 <25 0 Southonly use personal For Australia 6,186 5,920 12,106 25-<35 0 Tasmania 2,611 1,724 4,335 35-<45 2 2 Victoria 22,200 21,022 43,222 45-<55 4 15 19 Western Australia 8,673 6,168 14,841 55-<65 5 5 New Zealand 10,729 8,375 19,104 >65 1 1 India 18 73 91 Total 4 23 27 Hong Kong 64 48 112 Total 103,044 86,120 188,860

Excludes Cellarmasters, Danks, Becks, Gunns and Blue Mountains Hardware (BMH).

40 Workforce by age ratio 2010 2011 Female % Male % Total % Female % Male % Total % <25 38.2 48.6 42.9 37.6 47.5 42.1 25 - <35 19.4 24.4 21.7 19.5 24.8 21.9 35 - <45 17.9 13.3 15.8 17.5 13.5 15.7 45 - <55 16.4 8.7 12.9 16.6 8.9 13.1 55 - <65 7.6 4.4 6.1 8.0 4.6 6.5 >65 0.7 0.6 0.7 0.8 0.7 0.8 Total 100.0 100.0 100.0 100.0 100.0 100.0

Excludes Dick Smith NZ, Cellarmasters, Danks, Becks, Gunns and BMH.

Workforce by division by gender 2010 Total 2011 Female 2011 Male 2011 Total Supermarkets 110,774 62,692 48,612 111,304 BIG W 23,526 15,444 7,269 22,713 Logistics 7,611 1,200 6,383 7,583 Petrol 2,950 1,580 1,478 3,058 Liquor 3,959 1,405 2,809 4,214 Corporate 1,882 969 1,040 2,009 Thomas Dux 444 209 236 445 Dick Smith 4,240 1,129 2,931 4,060 Masters 56 114 174 288 Dick Smith NZ 911 221 674 895 Progressive Enterprises Limited 18,256 10,508 7,701 18,209 Hong Kong 93 64 48 112 India 84 18 73 91 Danks – 303 632 935 ALH Group 13,279 7,188 6,691 13,879 Cellarmasters – 357 571 928 Total 188,065 103,401 87,322 190,723

Females by employment category Full time % Part time % Casual % Total % Senior Executives 25.5 91.7 0.0 27.8 Senior managers 23.8 90.2 100.0 25.5 Managers 38.9 75.2 50.0 40.4 Office/support employees 51.6 73.7 57.5 56.2 Store employees 53.3 67.2 53.1 59.1 Distribution employees 12.4 26.6 17.2 16.1 Tradespeople & apprentices 8.5 21.0 6.2 9.4 Total 41.8 66.2 51.9 54.1

Excludes PEL, Dick Smith NZ, Hong Kong, BMH, Gunns, Becks, India and Cellarmasters.

For personal use only use personal For Ratio of basic salary of male to female by employment category Australia Salary ($) Ratio Non-managerial female average of annualised $47,872 98.1% Non-managerial male average of annualised $49,578 101.6% Average of annualised $48,796 Managerial female average of annualised $70,239 93.2% Managerial male average of annualised $78,556 104.2% Average of annualised $75,380

Excludes ALH Group, PEL, Dick Smith NZ, Hong Kong, BMH, Gunns, India and Cellarmasters.

41 Woolworths Limited Corporate Responsibility Report 2011

Our People

Flexible work options Engagement Promoting from within Flexible work options tailored As we undergo significant growth Building internal capability is to individual needs have proven and transition, improving employee a key enabler to deliver the right to be an important factor in engagement is critical for our skills and capability to meet our 1,545 retaining people as their work- business. We have continued strategic objectives. employees received life balance needs evolve. The to develop new and improved Our diverse operations provide paid maternity leave. number of part-time roles at communication methods, employees an unusually broad Woolworths accounts for 37.5% supporting line managers and range of careers within the one (1) of the total workforce . Females their teams through successful company. Work experience in constitute the highest number of transformation. multiple divisions is a common part-time employees, with 45.4% Our employee engagement surveys characteristic of a Woolworths’ of female employees working on continue to be a useful tool to help career. 8.9% of Executives moved (1) a part-time basis . monitor our current workforce across divisions (90 people) in and their engagement levels within 2010, compared to 7.2% the Parental leave the organisation. As surveys are previous year(3). run biannually for each division, We continue to offer paid maternity We have also promoted a number during 2011 we surveyed over leave to eligible employees, which of talented internal women into 31,000 employees in PEL, Dick includes six weeks paid maternity senior line management positions Smith and Liquor with an average leave, two weeks return-to-work within the organisation. Some of response rate of 31%. The survey bonus and up to 104 weeks parental these roles include: Head of results identified an increase in leave. This entitlement is in addition Buying & Marketing (Dick Smith), employees’ rational and emotional to the Australian Government’s National Operations Manager – commitment to the team and to Paid Parental Leave Scheme which Food & Liquor (Logistics), Area their manager, compared to the was introduced in January 2011. Manager (Supermarkets) and divisions surveyed in 2010. Senior Property Manager During the 2011 financial year, Social media has emerged as (Corporate). 1,545 employees accessed paid (1) a new way of communicating, maternity leave out of a total Long service is valued. Many Excludes Cellarmasters. sharing and learning. Our new of 2,201 employees who took employees have had long service, (2) employee website, AllYours, Excludes PEL, ALH Group, Cellarmasters, parental leave(2). We are pleased including our newly appointed commenced our journey down India, Hong Kong, Danks, Becks, Gunns, to have retained all executive CEO Grant O’Brien, who has and BMH. the social media pathway and we women who were due to return spent over 24 years with (3) now have over 75,000 employees from parental leave in the 2011 Woolworths. While 16% of Includes all Woolworths paid Executives registered across the organisation. only. financial year. all employees have more than

Training on human rights Employee turnover by region policies and procedures Total turnover % Labour turnover 2011 Female Male Total Female % Male % Total % Recorded training attendances 140,248 Australian Capital Territory 594 657 1,251 45.8 42.7 44.1 Total hours 518,060 New South Wales 5,948 6,215 12,163 21.0 25.6 23.2 Northern Territory 582 561 1,143 60.2 72.2 65.5 Excludes PEL, ALH Group,

For personal use only use personal For Queensland 6,822 5,788 12,610 31.1 34.7 32.7 Dick Smith NZ, Hong Kong, India, Danks, South Australia 1,725 1,878 3,603 27.8 31.1 29.4 Becks, Gunns, BMH and Cellarmasters. Tasmania 569 483 1,052 21.5 27.4 23.8 Victoria 4,865 5,397 10,262 21.8 25.5 23.6 Western Australia 3,500 3,060 6,560 40.5 49.2 44.1 New Zealand 2,700 2,444 5,144 25.5 31.6 28.1 India 2 11 13 12.0 15.5 14.9 Hong Kong 13 20 33 21.6 40.5 30.1 Total 27,320 26,514 53,834 26.5 30.7 28.5

Excludes Danks, Becks, Gunns, BMH, Dick Smith NZ and Cellarmasters.

42 10 years of service(1), 46% of One of our most important New employees by division Executives have been with the priorities remains the development 2011 Female Male Total Company for 10 years or more(2). of young Australians. We are Supermarkets 16,220 14,881 31,101 In addition, over 6,100 past and proud that our Supermarket BIG W 3,722 2,827 6,549 present employees are members division has one of the largest Logistics 119 1,009 1,128 (3) of the 25 Year Club . groups of apprentices and trainees Petrol 530 493 1,023 The nature of retailing means a in Australia. Liquor 543 1,095 1,638 high proportion of our team join Other training examples include: Corporate 59 68 127 on a casual basis, while still at ——The 12-month Future Leader Thomas Dux 76 56 132 school. A range of pathways are Program targeted at managers Dick Smith 351 814 1,165 available to allow these new early in their careers and IT 13 20 33 employees to build their careers, designed to develop leadership Home Improvement 71 72 143 develop their skills and then skills to position participants Total 21,704 21,335 43,039 convert to permanent for future promotion; Excludes PEL, ALH Group, Hong Kong, India, Dick Smith NZ, Cellarmasters, Danks, Becks, employment. Programs include ——The 18-month Engaging Gunns and BMH. school-based and certificate Leaders Program targeted at traineeships and apprenticeships. leaders who have the potential New employees by age A number of pathways exist to move into executive positions for store staff to progress to in the future; the 18-month 2011 Female Male Total management roles, including Human Resources Strategic <25 13,663 14,937 28,600 the Store Management Trainee Development Program; 25-<35 3,612 3,781 7,393 Program and the Woolworths the 18-month Buying Skills 35-<45 2,558 1,541 4,099 Graduate Program. Development Program; 45-<55 1,521 720 2,241 the Day-to-Day Management 55-<65 335 337 672 >65 15 19 34 Developing Talent Program, which provides core Total 21,704 21,335 43,039 management principles and Training and development is targeted at new frontline Excludes PEL, ALH Group, Hong Kong, India, Dick Smith NZ, Cellarmasters, Danks, Becks, In 2011, we invested over managers; and Gunns and BMH. $60 million in learning and ——Personal Leadership, which development training. This enables employees to develop New employees by state spanned core training programs, insights into their leadership training for new employees and styles and develops personal 2011 Female Male Total leadership programs for managers effectiveness and resilience. Australian Capital Territory 557 656 1,213 and executives. New South Wales 5,903 6,027 11,930 Northern Territory 678 630 1,308 Queensland 4,893 4,203 9,096 South Australia 1,616 1,729 3,345 Tasmania 405 353 758 Victoria 4,264 4,880 9,144 Western Australia 3,388 2,857 6,245 Total 21,704 21,335 43,039

Excludes PEL, ALH Group, Hong Kong, Dick Smith, NZ, Cellarmasters, Danks, Becks, Gunns and BMH.

Employee turnover by age

Total turnover % Labour turnover For personal use only use personal For 2011 Female Male Total Female % Male % Total % <25 15,452 16,066 31,518 39.2 38.5 38.9 (1) 25-<35 5,280 6,337 11,617 26.6 30.0 28.4 Excludes Dick Smith NZ, Danks, Becks, Gunns, BMH and Cellarmasters. 35-<45 3,316 2,279 5,595 18.3 19.9 18.9 (2) 45-<55 2,181 1,101 3,282 12.9 14.7 13.5 Includes all Woolworths paid executives 55-<65 941 601 1,542 11.8 15.6 13.0 only. >65 150 130 280 20.2 22.6 21.3 (3) Total 27,320 26,514 53,834 26.5 30.7 28.5 Includes full-time, part-time Woolworths, PEL, Dick Smith NZ, Hong Kong and India. Excludes Dick Smith NZ, Danks, Becks, Gunns, BMH and Cellarmasters.

43 Woolworths Limited Corporate Responsibility Report 2011

Our People

Parental leave Number of employees Number of who accessed parental leave during 2011 employees returned Employee turnover from parental leave while on parental 2011 Paid Unpaid Total during 2011 leave during 2011 Male 0 14 14 12 1 Female 1,545 642 2,187 1,738 307 Total 1,545 656 2,201 1,750 308

Excludes PEL, ALH Group, Cellarmasters, India, Hong Kong, Danks, Becks, Gunns and BMH.

25 year club % Number New inductees 2011 10.7 663 Current serving 53.7 3,311 Old Woolworthians 31.6 1,952 Resigned < 55 years old 4.0 246 Total 100 6,172

Includes full-time and part-time employees in Woolworths, ALH Group, PEL, Dick Smith NZ, Hong Kong and India.

Training participation

Training attendances 2010 2011 % Change Induction 71,311 100,768 41.3 Trainees & apprentices (indentured) 5,060 4,607 (8.9) Systems & general training 308,798 1,379,472 346.7 Management development 7,270 7,700 5.9 Executive development 685 591 (13.7)

Note: Significant increase in training figures resulted from improvement in recording training. This includes on job and off job induction. 120 = MGSM Students 118 = Exec 360’s

Training attendances – gender Female Male Induction 47,078 40,758 Trainees & apprentices (indentured) 1,554 2,898 Systems & general training 801,340 558,399 Management development 3,332 4,368 Executive development 192 399

Training attendances – employment type Casual Part-time Full-time Induction 43,947 30,194 13,695 Trainees & apprentices (indentured) – 252 4,200 Systems & general training 381,255 575,903 402,581 Management development 352 1,784 5,564 Executive development – 4 587

Induction data excludes PEL. Training participation data excludes ALH Group. For personal use only use personal For

Code of Conduct training 2010 trained 2010 % trained 2011 trained 2011 % trained ALH Group 19 0.1% 13,879 100.0 Progressive Enterprises Limited 5,200 28.5% 15,740 86.4 Woolworths Group 129,293 83.1% 142,407 91.5 Total 134,512 71.9% 172,026 91.6

All training data on this page excludes Dick Smith NZ, Hong Kong, BMH, Gunns, Becks, India and Cellarmasters.

44 Graduate program ——Leadership development accordance with regulations and programs which foster mentoring legislation include: The Woolworths Graduate relationships within function or ——Trade practices training; Program offers employees career division or across the broader ——Responsible Service of Alcohol opportunities during their business; and transition from tertiary studies (RSA) – which we deliver in 91.6% to full-time employment. Those ——The Executive Leadership all states, even those where of our employees who have either recently graduated Team’s active role in we are not legislatively received training in or are in their final year of tertiary mentoring talent. required to do so; the Code of Conduct. studies are eligible to apply; we To provide additional informal ——Safety training; currently have 56 employees learning opportunities, we ——Fire safety training ; participating. continue to run a range of ——Food safety training; The retention of graduates is networking activities. These particularly high – with over include: ——Sale of tobacco training; and 87.4% of participants staying ——The Chief Executive Officer ——Weights and measures training. with the Company. Network Forum, which provides young leaders with a forum to Health and Wellbeing Macquarie Graduate School discuss and debate key business and community issues in an of Management (MGSM) Showing care and commitment informal setting with the CEO; to our employees’ health and Our academic programs through and wellbeing continues to build our partnership with MGSM are ——Senior management forums. employee engagement and designed to broaden thinking and reinforces our commitment expose employees with future Compliance training to health and safety. management potential to Through the executive health contemporary business thinking Woolworths operates in an check program, there has been beyond the Company. In 2011, environment which carries many an improvement in cholesterol, there were 120 employees enrolled compliance risks; however, with glucose levels and blood pressure in study programs. clear boundaries, strong support, levels against both the Australian leadership and guidance, our norm and last year’s figures. people can focus on what they Mentoring and networking Woolworths is currently do best. Mentoring is one way our people participating in the Victorian Woolworths’ 11 Leadership can actively drive their own Government’s WorkHealth Qualities provide a consistent and development. By partnering with initiative. The initiative targets clear understanding of expected more experienced executives, the relationship between chronic employee behaviours. These employees can build knowledge, disease and workplace injury, qualities are outlined in the Code develop their skills and support using the workplace as a setting of Conduct, for which 91.6%(1) of their own career growth. Specific to educate workers about the risk employees have received training recent initiatives include: of developing chronic disease, (an increase from 71.9% last year). and to empower line managers ——Cross-divisional mentoring Examples of training that enable to value worker health as a key for Executives;

employees to operate in to successful business. For personal use only use personal For

(1) Excludes Dick Smith NZ, Hong Kong, Gunns, Becks, BMH, India and Cellarmasters.

45 Woolworths Limited Corporate Responsibility Report 2011

Our People

Commencing in March 2011, more Rewarding Performance than 400 employees have already and Remuneration participated. In partnership with Nicabate, we launched a QUIT Leadership and Smoking program through the performance culture employee website “AllYours” where employees receive discounts Key to our success is the alignment on Nicabate products and regular of our leadership behaviour and updates and advice via email. culture with our business strategy. Since commencing in May 2011, The Leadership Qualities provide we have had 225 employees a framework with clear expectations participate in this program. for all of our team and are a key A range of other initiatives continue, focus of consideration when making including our partnerships with management appointments. MBF, Fitness First and Weight As part of our ongoing HR Watchers to enable employees framework, the Leadership to access discounted membership Qualities have been incorporated rates. At our support offices in in all activities including Pennant Hills and Norwest, Recruitment, Performance employees are encouraged to Appraisal, Succession, participate in flu vaccination Remuneration and Career and Red Cross blood donation & Development. programs. Performance development Employee Assistance All salaried employees complete Program an annual performance review Woolworths offers employees and with their managers based on key their immediate families access to performance indicators (KPIs) an Employee Assistance Program developed after the Company’s which enables access to a business plans have been set. confidential counselling service The outcome of the review is free of charge. During the year, reflected in the employee’s 1,256 employees used the service, annual remuneration review with 62% of referrals for personal, and Short Term Incentive Plan non-work related reasons. (STIP).

Share purchase plan 2011 – 2012 SPP Final uptake 16,107 15.3% STIP eligible employees 2,685 15.3%

Salaried employees 13,422 15.3% For personal use only use personal For

Liability for defined benefit obligation June 11 June 10 As at $m $m Defined benefit obligation (2,104) (1,837) Fair value of assets 2,016 1,753 Liability for defined benefit obligation (88) (84)

46 Non-salaried staff members after-tax income. Participation receive a review during and at the is entirely voluntary. Under the conclusion of their probation period. 2011 plan, 16,107 employees participated. We now have Remuneration approximately 45,000 employee shareholders. Woolworths continues to provide market competitive benefits and Superannuation remuneration. Our remuneration structure includes fixed and Woolworths Limited makes variable, performance-based superannuation contributions components, depending on the for employees of the Company employee’s position. to certain Company sponsored A range of incentive programs are superannuation funds at rates designed to support attraction, set out in Trust Deeds and Rules retention and a culture of governing these funds and in performance. Part-time employees accordance with legislative have access to the same general requirements. benefits as their full-time Extracts from the Company’s counterparts on a pro-rata basis. 2011 Annual Report covering the Other benefits include a staff Woolworths Group Superannuation discount card, access to the Plan’s (WGSP) financial position Woolworths Employee Credit are shown in the table opposite. Union and discounted private More details are available in health insurance. Notes to the Financial Statements (Note 23) contained in the Share purchase plan Annual Report. The Woolworths Share Purchase Recognition Plan plays an important role in encouraging employees to build an Recognition of our high achievers, ownership stake in the business. who have gone above and beyond Under the plan, an annual their everyday work, is an invitation allows participating important part of our company employees to acquire Woolworths culture. The annual Woolworths shares using pre-tax rather than Heroes Program recognises

Enterprise Agreement (EBA) employees % 2010 % 2011 ALH 0.1 0.0 PEL 28.5 31.5 WOW 83.1 84.5 Total 71.9 73.1

Excludes Dick Smith NZ, Hong Kong, India, Cellarmasters, Danks, Becks, Gunns and BMH. There is a notable difference in the definition of

an EBA employee in Australia compared to New Zealand. For PEL, union membership = 5,729. For personal use only use personal For Annual performance reviews Female % Male % Total % ALH Group 9.2 14.4 11.7 Progressive Enterprises Limited 16.2 23.2 19.2 Woolworths Group 11.2 18.8 14.7 Total 11.6 18.8 14.9

Only salaried employees complete annual performance reviews. Excludes Dick Smith NZ, Hong Kong, Danks, Becks, Gunns, BMH, India and Cellarmasters.

47 Woolworths Limited Corporate Responsibility Report 2011

Our People

73.1% of our workforce covered by enterprise agreements.

outstanding contributors to ——Certificate III of the Year; Young National Executive of our business, community and ——Certificate IV of the Year; the Year: Mitch Proestos, Store environment. This year we also Manager Woolworths Noosa. ——Graduate of the Year; and recognised Company Legends, people who assisted in communities ——Trainee Buyer/Planner affected by natural disasters over of the Year.

the past 12 months. The Joe Berry Award is an For personal use only use personal For Established in 1995, the Paul external competition Simons Award is an annual acknowledging and recognising program that recognises the outstanding young (35 years and development of young people under) achievers in retail. Some within the Company. Participants of the country’s most prominent are nominated from all divisions retail and supplier managers have won this competition, which began (1) and a winner is selected in each Excludes Dick Smith NZ, Hong Kong, of the following categories: in 1986. Woolworths had one India, Cellarmasters, Danks, Becks, finalist in the Joe Berry 2011 Gunns and BMH. ——Apprentice of the Year;

48 Our Approach to Corporate Responsibility and Sustainability

Woolworths Limited has made commitments and implemented strategies to position itself as a leader in corporate responsibility. To always be a responsible and sustainable business, our commitments must be supported at all levels of the business.

We focus on issues that are material Exchange (ASX) Corporate are available in our 2011 Annual non-trading divisions develop to our business and aim to achieve Governance Council’s Corporate Report and on our website. individual risk management alignment with overall business Governance Principles and The Board views its ongoing plans using a common risk rating objectives, manage our risk and Recommendations with 2010 support of the highest standards methodology. Divisional risks are take advantage of emerging trends Amendments (second edition). of corporate governance as then rolled up into an indicative and opportunities. Our Directors are committed to fundamental to its commitment group risk profile, which is then ethical conduct by the Company. to business integrity and reviewed by the Management Mainstreaming corporate Relevant documents outlining our professionalism in all its activities. Board, tabled and reviewed at responsibility in our corporate governance framework It regularly reviews the practices the Board off-site, and formally reported to the Audit, Risk business are publicly available at www. and standards governing its woolworthslimited.com.au. composition, independence Management and Compliance Key strategies within the business Additional information about the and effectiveness, and the Committee. detail our corporate responsibility Woolworths corporate governance accountability and compensation The Risk Steering Group, a group- priorities. The Destination ZERO framework is available in the of its directors and senior executives. level management committee, safety strategy, Sustainability Corporate Governance Statement The Board has established a meets regularly through the year Strategy 2007-2015 and in our 2011 Annual Report. number of committees to support to review and discuss material Community Investment Strategy it in matters that require more business risk reports. There is also assist in providing the direction Board of Directors intensive review. More a wide range of operational risk and focus for practices, policies information on Board committees, management programs across the The Board of Directors is and investment. their roles and responsibilities can Company, including safety and accountable to shareholders be found in the Annual Report health, product safety, compliance, for the Company’s performance Governance framework 2011 and the Company’s website. sustainability, IT security, project and its responsibilities include management, WOW Care, business Corporate responsibility and Corporate governance is at the core Woolworths’ corporate governance continuity and risk financing. of Woolworths’ and the Board’s practices. The Board’s principal sustainability performance is approach to the enhancement reported to the Board on a objective is to maintain and Senior management of shareholder value and the increase shareholder value while monthly basis, whilst greater protection of shareholder funds. ensuring Woolworths’ overall details are provided in quarterly Woolworths’ safety culture is a Integral to shareholder value is activities are properly managed. presentations to the Board on key daily consideration for all staff. performance indicators, emerging protecting and enhancing our The Board of Directors has The effectiveness of our safety issues and reputation. reputation and this is why the 11 Directors, eight being Non- and health vision, principles, For personal use only use personal For Board oversees the Company’s executive Directors, including policy, standards, initiatives approach to corporate the Chairman and three Executive Risk management and procedures is evaluated responsibility and sustainability. Directors, the Managing Director framework during the monthly meetings The Woolworths corporate and Chief Executive Officer, the of the Safety and Health Executive Woolworths has an enterprise- governance framework meets the Finance Director and the Chief Committee, which is comprised wide risk management framework relevant regulatory requirements Executive Officer-designate. of divisional management and to effectively identify and manage in Australia along with established Key details for each Director, chaired by the CEO. its material business risks. As part best practice standards. As a listed including qualifications, special Progress on our targets and of the company-wide strategic Australian company, Woolworths responsibilities and other commitments in the Sustainability planning process, all trading and follows the Australian Securities directorships of listed companies, Strategy are monitored by the

49 Woolworths Limited Corporate Responsibility Report 2011

Our Approach to Corporate Responsibility and Sustainability

Sustainability Executive ——Guy Salmon The Code of Conduct provides cash donations to political parties; Committee, which is chaired Executive Director, Ecologic guidance on our commitment to however, we do permit attendance by the CEO and attended by the Foundation, New Zealand; the highest legal, moral and ethical as business observers at political Directors and General Managers ——Bob Welsh standards in our dealings with conferences which may require of trading and support divisions. CEO, VicSuper customers, suppliers, employees an admission fee. Woolworths (until December 2010); and and local communities. adheres to all relevant political disclosure laws and regulations Divisional level ——Leann Wilson The Code of Conduct clearly details expected behaviours in and strives to make contributions Every employee is responsible Strategic Relationships how we engage with vendors and in a bi-partisan manner. for safety and health and they Manager, Department of also employees’ responsibility in In 2011, we contributed (for are supported by specialist Education, Employment declaring conflicts of interest. attendance to conferences and advice from Safety, Health & and Workplace Relations. The Code of Conduct was updated other functions) $55,190 to the Environment (SH&E) personnel. to formally include content on the Australian Labor Party and Woolworths’ workforce is Transparency and reporting “Speak Up” whistle-blower $60,750 to Coalition parties represented in formal joint Woolworths has company policies program so that all new employees (Liberal Party and the Nationals) management-worker health and and practices that meet high levels receive this information. For more across Australia. Woolworths safety committees. These safety of disclosure and compliance. information, refer to page 45 in did not make political donations teams operate in the workplace As a large business, with global Our People section. in New Zealand. and their functions are formalised investors, we receive many through charters, procedures The Code of Conduct is supported requests for disclosure so we rely and legislative requirements by processes like our vendor Privacy policy upon the Company’s Corporate dispute resolution and incident where applicable. Woolworths is committed to Responsibility Report to address escalation process which is Sustainability Coordinators and meeting the National Privacy most of these queries. communicated through our essential support staff implement Principles for the Fair Handling Woolworths uses the globally vendor website and Vendor Guide. sustainability initiatives in key of Personal Information, which recognised reporting framework businesses and logistics. Business Review conducts sets standards for the collection, developed by the Global Reporting analysis reviews in response to use, disclosure, access, storage and Initiative (GRI). The GRI specific requests by management. destruction of personal Corporate Responsibility reporting framework sets out the Reviews conducted by Business information that we collect as Panel principles and indicators that Review, in 2011, included specific part of our business operations. organisations can use to measure supplier product pricing trends, Woolworths continues to seek Our respect for our customer’s and report their economic, lost time injury reporting, service advice and new perspectives on right to privacy of their personal environmental, and social contractor charging behaviour and corporate responsibility from an information is paramount. We performance. This report was stock loss analysis. Trading and advisory panel of Australian and have a general privacy policy prepared in line with the G3.1 support divisions are assessed New Zealand leaders in this field. and a number of product specific Guidelines. as required. Our CEO and senior management privacy policies covering various Woolworths reported to the have engaged with the panel and aspects of our business. Our Carbon Disclosure Project (CDP), obtained fresh insights into Political donations privacy policy is available on both on carbon disclosure and key strategies. all our websites. water disclosure. The CDP is an Recent Federal and State During the past year, the panel investor driven disclosure Government elections continue to In line with our focus on continuous has consisted of: initiative enabling companies to offer an ever-changing policy and improvement, we are currently ——Stephen Dunne report on risk identification and political landscape. Woolworths reviewing the implications of the MD, AMP Capital Investors; mitigation processes related to prepares for legislative and proposed Australian Privacy ——Dr Cassandra Goldie climate change and water security. regulatory reforms through direct Principles which are designed engagement with political parties to replace the current National CEO, The Australian Council Woolworths also participates in in Australia and New Zealand. Privacy Principles. of Social Service; the Dow Jones Sustainability Our policy is to not make outright ——Dr Simon Longstaff Index, a global index that tracks

Executiveonly use personal For Director, St James the financial performance of Ethics Centre (Panel Chair); leading sustainability-driven Corporate Responsibility Panel meetings in 2011 companies. ——Sam Mostyn Meeting Agenda items Non-executive Director and 11 August 2010 Responsible Service of Gaming Board Member for a number Anti-corruption 6 December 2010 Greening the Supply Chain; of companies and organisations; Woolworths’ Code of Conduct Sustainable Supply Chain Certifications ——Dermot O’Gorman is the cornerstone for how we and Consumer Products CEO, WWF Australia; expect our employees to work 18 March 2011 Cost of Living and Competition; and represent the Company. Reconciliation Action Plan

50

Independent Assurance Statement For personal use only use personal For

51 Woolworths Limited Corporate Responsibility Report 2011

Independent Assurance Statement For personal use only use personal For

52 For personal use only use personal For

53 Woolworths Limited Corporate Responsibility Report 2011

United Nations Global Compact

Woolworths Limited addresses the 10 accepted principles of the UNGC in the following manner.

Principles Actions

Human Rights Principle 1 Ethical Sourcing Policy and audit program, Pages 14-15 Protection of Human Rights Principle 2 Ethical Sourcing Policy and audit program, Pages 14-15 No Complicity in Human Rights Abuse

Labour Principle 3 Ethical Sourcing Policy and audit program, Pages 14-15 Freedom of Association and Collective Bargaining Freedom of Association and Union Engagement, Page 48 Principle 4 Ethical Sourcing Policy and audit program, Pages 14-15 Elimination of Forced and Compulsory Labour Principle 5 Ethical Sourcing Policy and audit program, Pages 14-15 Abolition of Child Labour Principle 6 Diversity and equal opportunity, Pages 39-40 Elimination of Discrimination

Environment Principle 7 No explicit reference to precautionary approach. Precautionary Approach Approach to risk management, Page 49 Principle 8 Environment, Pages 24-33 Environmental Responsibility Principle 9 Technology addressing climate change, water conservation, Environmentally Friendly Technologies transport and packaging, Pages 28-31

Anti-Corruption Principle 10 Anti-corruption, Page 50

Work Against Corruption For personal use only use personal For

54 Global Reporting Initiative

The Woolworths Limited annual corporate responsibility reports are prepared in accordance with the Global Reporting Initiatives (GRI) Sustainable Reporting Guidelines (G3.1). This index contains a summary of the guidelines indicators that have been reported on, and where they were reported; a more comprehensive index is found at www.woolworthslimited.com.au.

GRI Description Page GRI Description Page 1.1 Statement from the Chairman and CEO 4-5 Disclosure on Economic Management Approach 1.2 Key impacts, risks, and opportunities 2-5, 49-50 EC1 Direct economic value generated and distributed 11, 20-21, 2.1 Name of the organisation Front cover AR ii-iii, 18-19 Financial implications of climate change 28 2.2 Primary brands, products, and/or services 1, 11-19 EC2 Defined benefit plan obligations 46-47, AR 101 2.3 Operational structure of the organisation 1, 11, AR 156-159 EC3 Significant financial assistance received from government GRI Index 2.4 Location of organisation’s headquarters 59 EC4 Ratios of standard entry level wage compared to local 46 2.5 Number of countries where the organisation operates 1, 10 EC5 minimum wage 2.6 Nature of ownership and legal form 10, AR 167 EC6 Policy on locally-based suppliers 17 2.7 Markets served 10-11, 57, AR 42 EC7 Procedures for local hiring 40-43, GRI Index 2.8 Scale of the reporting organisation 10-11, 34-35 EC8 Infrastructure investments and services for public benefit 20-23 2.9 Significant changes during the reporting period 11, AR 14-16 EC9 Indirect economic impacts 11, 21-23 2.10 Awards 1 Disclosure on Environmental Management Approach 3.1 Reporting period 1 EN1 Materials used by weight or volume 17, 31, 33 Date of most recent previous report 10-11 3.2 EN2 Percentage of materials used that are recycled input 31, GRI Index 3.3 Reporting cycle Annual materials 3.4 Contact point for the report Contact details, 59 EN3 Direct energy consumption by primary energy source 28-30 3.5 Process for defining report content 8-9, 50 EN4 Indirect energy consumption by primary source 28-30 3.6 Boundary of the report 1 EN5 Energy saved due to conservation and efficiency 28-30 improvements 3.7 Limitations on the scope or boundary 1 EN6 Initiatives to provide energy-efficient products 28 Data measurement techniques Where relevant 3.9 and services 3.10 Explanation of restatements Nil EN7 Initiatives to reduce indirect energy consumption 28-30 3.11 Significant changes from previous reporting periods Nil EN8 Total water withdrawal by source 30-31 3.12 Table of Standard Disclosures 55-56 EN9 Water sources significantly affected by withdrawal 3.13 External assurance for the report 51-53 of water 30-31 4.1 Governance structure of the organisation 49, AR 69-76 EN10 Percentage and total volume of water recycled 4.2 Chair of the highest governance body 49 and reused 30-31, GRI Index 4.3 Independent and/or non-executive members 49 EN11 Location and size of land owned near areas of high 4.4 Mechanisms for providing recommendations 49-50, AR 79, biodiversity value 33, GRI Index to the Board GRI Index EN12 Description of significant impacts on biodiversity 4.5 Linkage between compensation and performance AR 46-51 in protected areas 33, GRI Index 4.6 Avoiding conflicts of interest AR 71 EN13 Habitats protected or restored 33, GRI Index 4.7 Determining the qualifications and expertise 49, AR 71 EN14 Managing impacts on biodiversity 17-18, 33 of the Board EN15 IUCN Red List species 33, GRI Index 4.8 Mission statements, values and code of conduct 14-15, 24-27, 36, 50, EN16 Total direct and indirect greenhouse gas emissions 28-30 AR 77-79 EN17 Other relevant indirect greenhouse gas emissions 28-30 4.9 Management of performance 49-50, AR 77 EN18 Initiatives to reduce greenhouse gas emissions 28-30 4.10 Performance evaluation AR 46-51, 64-66 EN19 Emissions of ozone-depleting substances 30 4.11 Addressing precautionary principle 28 EN20 NOx, SOx, and other significant air emissions by type 4.12 External corporate responsibility charters 14-15, 21, 33, 50 and weight GRI Index

For personal use only use personal For 4.13 Memberships in associations 15, 21, 32, 39, 40 EN21 Total water discharge by quality and destination 30-31 4.14 List of engaged stakeholders 6-7 EN22 Total weight of waste by type and disposal method 33 4.15 Basis for identification and selection of stakeholders 6-7 EN23 Total number and volume of significant spills 33 4.16 Approaches to stakeholders 6-7 EN24 Hazardous wastes 33 4.17 Key topics and concerns for stakeholders 6-9 EN26 Mitigating impacts of products and services 17-18, 31 EN28 Non-compliance with environmental laws 33 NOTE: Woolworths Limited Annual Report 2011 (AR); Online GRI Index (GRI); EN29 Impacts of transporting products and other goods 30 Indicators not reported were deemed not material.

55 Woolworths Limited Corporate Responsibility Report 2011

Global Reporting Initiative

GRI Description Page GRI Description Page Disclosure on Labour Management Approach Disclosure on Society Management Approach LA1 Total workforce 40-41 SO1 Operations with implemented local community 13-14, 20-23 LA2 Employee turnover 42-43 engagement programs LA3 Benefits for full-time employees 46-47 SO2 Analysis of business units for risks related to corruption 50, GRI Index LA4 Collective bargaining agreements 48 SO3 Employees trained in anti-corruption policies 44-45, 50 LA5 Minimum notice periods for significant operational changes 48 SO4 Actions taken in response to incidents of corruption 50 LA6 Workforce represented in joint management-worker health 36, 48, GRI SO5 Participation in public policy development 7 and safety committees Index SO6 Financial and in-kind contributions to political parties 50 LA7 Rates of injury, occupational diseases, lost days, 37, GRI Index SO7 Legal actions for anti-competitive behaviour GRI Index and absenteeism SO8 Non-compliance with laws and regulations 33, 36 LA8 Education, training and risk-control programs regarding 38, 45-46 SO9 Significant potential or actual negative impacts 13-14 serious diseases on local communities LA9 Health and safety topics covered in formal agreements 36-38, SO10 Prevention and mitigation measures for significant impacts 13-14 with trade unions GRI Index on local communities LA10 Average hours of training per year per employee 44 LA11 Career and skills management 43-45 Disclosure on Product Responsibility Management Approach LA12 Employee performance and career management reviews 47 PR1 Life cycle stages of products and services 13, 19 LA13 Governance bodies and breakdown of employees relating 40 PR2 Non-compliance regarding health and safety impacts 19 to diversity of products LA14 Ratio of basic salary of men to women by employee category 41 PR3 Product and service information 19 LA15 Return to work and retention rates after parental leave 44 PR4 Non-compliance regarding product and service information 19 PR5 Practices related to customer satisfaction 6 Disclosure on Human Rights Management Approach PR6 Programs for adherence to laws, standards, and voluntary 13, 14, 19 HR1 Significant investment agreements that include human GRI Index codes related to marketing rights clauses PR7 Non-compliance with regulations and voluntary codes Nil HR2 Supplier screening on human rights 14-15 concerning marketing HR3 Employee training on human rights 42 PR8 Complaints regarding breaches of customer privacy 50 HR4 Total number of incidents of discrimination and actions taken 39 PR9 Monetary value of significant fines GRI Index HR5 Risks to right to exercise freedom of association and 14-15, 48 collective bargaining HR6 Risks of incidents of child labour 14-15, 48 HR7 Risks of incidents of forced or compulsory labour 14-15, 48 HR9 Incidents involving rights of Indigenous people 40 HR10 Human rights reviews and impact assessments conducted 40 on operations

HR11 Grievances related to human rights 40 For personal use only use personal For

56 Store and Trading Area Analysis

Stores (number) 2011 2010 2009 2008 2007 Supermarkets NSW & ACT 255 248 241 234 237 Queensland 194 189 186 177 168 Victoria 203 200 192 187 183 South Australia & Northern Territory 76 74 72 72 72 Western Australia 83 83 82 81 79 Tasmania 29 29 29 29 27 Supermarkets in Australia 840 823 802 780 766 Supermarkets in New Zealand 156 152 149 149 149 Total Supermarkets 996 975 951 929 915

Thomas Dux 11 11 3 1 – Freestanding Liquor 305 281 256 233 212 ALH Group Retail Outlets 488 480 463 434 424 Caltex / WOW Petrol 132 132 133 133 134 WOW Petrol – Australia 449 429 409 389 371 WOW Petrol – New Zealand – 22 22 22 22 Total Supermarket Division 2,381 2,330 2,237 2,141 2,078

General Merchandise BIG W 165 161 156 151 142 Dick Smith Electronics 390 394 349 310 277 Tandy 4 22 87 106 123 Total General Merchandise 559 577 592 567 542

Hotels (ALH Group) (includes eight clubs) 282 284 280 271 263 Danks (Home Improvement Retail) 19 8 – – – Total Group 3,241 3,199 3,109 2,979 2,883

2011 2010 2009 2008 2007 Area (sqm) Supermarkets (Australia) 2,202,620 2,127,195 2,037,680 1,945,641 1,848,792 Supermarkets (New Zealand) 333,274 325,256 303,889 296,549 291,092 General Merchandise 1,086,082 1,061,934 1,038,561 989,767 930,288

Sales per square metre Supermarkets (Australia) 15,894.9 15,764.3 15,641.1 14,934.0 14,570.6 Supermarkets (New Zealand) 14,949.6 14,548.0 14,820.4 14,634.1 14,382.5

General Merchandise 5,241.0 5,389.8 5,588.3 5,295.9 5,106.2 For personal use only use personal For

57 Woolworths Limited Corporate Responsibility Report 2011

Glossary

Australian Competition and Foodbank Mt Scope 2 emissions Consumer Commission (ACCC) Foodbank is a not-for-profit, A million tonnes or megatonnes, Indirect greenhouse gas emissions ACCC is an independent non-denominational organisation equates to one billion kilograms. from the generation of purchased Commonwealth statutory that sources and distributes food electricity, heat, cooling or steam. MWh authority responsible for promoting and grocery industry donations Purchased electricity is defined competition and fair trade in the to welfare agencies that feed the Megawatt hours is a unit of as electricity that is purchased marketplace to benefit consumers, hungry. Foodbank is Australia’s measurement for electricity use, or otherwise brought into the business and the community. largest hunger relief organisation. referring to the amount of organisational boundary of www.accc.gov.au www.foodbank.com.au electricity needed to supply power the entity. to 1,000 homes for one hour. Australian Packaging Covenant Food Standards Australia Scope 3 emissions National Greenhouse and (APC) New Zealand (FSANZ) Other indirect greenhouse gas Energy Reporting (NGER) APC is a voluntary initiative by FSANZ is the statutory agency emissions that are a consequence Act 2007 Commonwealth Government and that develops food standards. of a company’s activities, but that industry to reduce the effects of www.foodstandards.gov.au NGER establishes a national arise from sources that are owned packaging on the environment. It is framework for Australian or controlled by others. Scope 3, Forest Stewardship Council designed to minimise the corporations to report greenhouse like Scope 2, is a category of (FSC) environmental impacts arising gas emissions, reductions, removals indirect emissions and covers all from the disposal of used FSC is an independent, not-for- and offsets, and energy other indirect emissions from packaging, conserve resources profit organisation established consumption and production. sources that are not owned or through better design and to promote the responsible www.climatechange.gov.au/reporting/ controlled by a company, but that production processes and facilitate management of the world’s forests. publications/index.html occur as a result of its activities. the reuse and recycling of used www.fsc.org or Examples include emissions from Product Stewardship Australia packaging materials. www.fscaustralia.org.au waste disposed to landfill. (PSA) www.packagingcovenant.org.au Global warming potential Product Stewardship Australia Carbon dioxide equivalent (GWP) Limited (PSA) is a not-for-profit, (CO2-e) The index used to translate the industry-led organisation working A standard measure used to level of emissions of various gases on permanent solutions to recover compare the emissions from into a common measure without and recycle consumer electronics various greenhouse gases based directly calculating the changes in an environmentally sound upon their global warming in atmospheric concentrations. manner. PSA is membership based potential (GWP). For example, one and is developing national solutions Greenhouse gases tonne of methane emissions is for end-of-life (or obsolete) equivalent to 21 tonnes of carbon Gases that absorb infrared electronic and electrical products dioxide emissions. radiation in the atmosphere. on behalf of its members. Dick The six greenhouse gases under Smith is a member of PSA. EBIT the Kyoto Protocol are: carbon www.productstewardship.asn.au

Earnings Before Interest and Tax dioxide, methane (CH4 ), nitrous Program for the Endorsement – total earnings before provisions oxide (N2O), halogenated of Forest Certification are deducted. This measures a fluorocarbons (HCFCs), ozone (PEFC) Council company’s performance and is (O3 ), perfluorinated carbons often used in preference to net (PFCs) and hydrofluorocarbons The PEFC Council is an profit as it excludes the effects of (HFCs). independent, non‑profit borrowings and tax benefits and organisation that promotes kt adjustments. sustainably managed forests A kilotonne is equal to one through independent third party EEO Act million kilograms. certification.www.pefc.org The Energy Efficiency

For personal use only use personal For Lost Time Injury (LTI) Opportunities Act 2006 (Australia) Scope 1 emissions took effect on 1 July 2006 (with an An LTI is defined as an injury or Direct greenhouse gas emissions amendment in March 2007). It illness that resulted in an employee from sources owned or controlled aims to improve the identification, being unable to work a full by a company, such as combustion assessment and reporting of energy scheduled shift (other than the shift facilities (e.g. generators) and efficiency opportunities by large on which the injury occurred). combustion of fuels in company- owned or company-controlled energy using businesses. www. ML energyefficiencyopportunities.gov.au transportation (e.g. cars, Megalitres or million litres. trucks, etc.).

58 Company Directory

Woolworths Limited Danks Principal registered office in Australia Web: www.danks.com.au 1 Woolworths Way Bella Vista NSW 2153 ALH Group Pty Ltd Tel: (02) 8885 0000 Registered Office Web: www.woolworthslimited.com.au 1 Woolworths Way Bella Vista NSW 2153 BIG W Tel: (02) 8885 0000 Web: www.bigw.com.au Web: www.alhgroup.com.au

National Supermarkets Victorian Office Ground Floor Web: www.woolworths.com.au 16-20 Claremont Street South Yarra VIC 3141 Woolworths Petrol Tel: (03) 9829 1000 Tel: 1300 655 055 Web: www.woolworthspetrol.com.au Queensland Office Level 1 BWS 152 Oxford Street Bulimba QLD 4171 Web: www.beerwinespirits.com.au Tel: (07) 3909 4800 Dan Murphy’s Company Secretary 789 Heidelberg Road Peter Horton Alphington VIC 3078 Tel: (03) 9497 3388 Fax: (03) 9497 2782 Share Registrar Web: www.danmurphys.com.au Computershare Investor Services Pty Limited Level 4 Dick Smith/Tandy 60 Carrington Street Sydney NSW 2000 2 Davidson Street Chullora NSW 2190 Tel: 1300 368 664 Fax: (02) 8234 5050 Tel: (02) 9642 9100 Web: www.computershare.com.au Fax: (02) 9642 9111 Web: www.dicksmith.com.au For more information about this report, contact: Progressive Enterprises Limited Group Manager, Corporate Responsibility – Community and Sustainability 80 Favona Road Armineh Mardirossian – at Mangere 2024 Auckland New Zealand [email protected] Tel: +64 (9) 275 2788 Fax: +64 (9) 275 3074 Web: www.progressive.co.nz For media enquiries: [email protected] Cellarmasters For general customer enquiries: Tel: 1300 767 969

For personal use only use personal For Web: www.cellarmasters.com.au [email protected] Masters Home Improvement Web: www.masters.com.au

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Woolworths Limited Corporate Responsibility Report 2011 For personal use only use personal For

FSC Logo Pacesetter Coated is an FSC Certified paper, which ensures that all virgin pulp is derived from well-managed forests and controlled sources. It contains elemental chlorine free bleached pulp and is manufactured by an ISO 14001 certified mill.

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