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For Personal Use Only Use Personal For 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 Corporate Responsibility Report 2011 Closer every day. For personal use only 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 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 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 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 $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 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 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
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