Pentland Group Corporate Responsibility Review 2020 Introduction A view from our Chairman, Stephen Rubin 3

Who we are 5

UN Global Compact 9

2020: a year in review 11 This Pentland Group Corporate Responsibility review evaluates COVID-19 15 the progress we’ve made during Partners and memberships 16 the period January to December 2020 and outlines our plans Corporate Responsibility for 2021. at Pentland Brands Limited It has been approved by the Positive Business 20 Pentland Group Board. Governance 21 You can view our previous Corporate Responsibility People 24 reviews here. Planet 32 Corporate Responsibility at JD Sports Fashion plc Governance 40

People 42

Planet 51 2 A view from our Chairman, Stephen Rubin

2020 has been one of the most challenging a small way by making donations to some Speedo UK announced its partnership with years in many of our memories. As a family of the incredible organisations providing the Black Swimming Association, to address business with people at its heart, our priority critical medical care and essentials to those barriers faced by ethnic minority groups in throughout the global pandemic has been most in need. the water, and Kickers launched its Change protecting our employees, partners, and Starts Here platform, which saw it join forces In 2020, the Black Lives Matter movement those working in our supply chain, while with UK charity Show Racism The Red Card. highlighted the inequalities faced by continuing to run our business to support In solidarity with the BLM movement, JD many people from ethnic minority groups, our consumers. also announced a new partnership with particularly those in the black community. Blueprint for All, which supports the growth Both Pentland Brands and JD Sports While we have always been proud of our of a more inclusive society. Fashion plc build products to support health, diverse and inclusive culture, 2020 was an wellbeing and confidence. During extended opportunity for our teams to reflect and The JD Foundation, which supports charities periods of restrictions, their brands not only challenge themselves to do more. Pentland working with disadvantaged young people in kept millions of global consumers healthy, Brands celebrated Global Inclusion Week the UK, supported 18 charities in 2020 with active and entertained, but also offered by committing to build a business where a focus on mental health and homelessness product discounts and provided personal everyone is welcomed, supported and and has now donated £3.1 million since its protective equipment to support frontline encouraged to grow and contribute. These launch in 2015. workers. We supported the global efforts in ambitions are also shared by its brands;

3 While the pandemic was a dominating force providing solutions to some of the world’s Development Goals (SDGs) and we remain in 2020, it was important for us not to lose most prevalent challenges. We first opened committed to playing our part to achieve sight of the climate crisis and the role we the Pentland Centre for Sustainability in them by 2030. play in helping to protect our planet. Both Business at Lancaster University in 2015. I am confident that we will continue to build Pentland Brands and JD have increased the In 2020 we committed to sponsoring the on our corporate responsibility commitments sustainability credentials of their products Centre until 2025 and welcomed Professor and I look forward to sharing our progress through materials choices, innovation and Jan Bebbington as its new Director. We also with you. partnerships. Canterbury recently released celebrated a decade of funding disadvantaged the most sustainable British & Irish Lions young entrepreneurs through The Prince’s Stephen Rubin journey ever, made from 100% recycled Trust and five years of offering the Pentland Chairman polyester. JD achieved ‘zero waste to landfill’ Churchill Scholarship in collaboration with status for its UK distribution centre, and University College London (UCL). continues to re-use, repurpose and recycle We continue to support the UN Sustainable across all of its operations, from sourcing Development Goals (SDGs) which through to packaging. address the global social, economic and The Rubin Foundation Charitable Trust environmental challenges we face. 2020 continues to support charities focused on marked the fifth year of the UN Sustainable

4 Who we are

5 About Pentland Group

We are a privately-owned family SeaVees, KangaROOS, Mitre and business that owns and invests How we work Red or Dead. It is the UK licensee in companies to create value for Our businesses are changing for Kickers and has a joint stakeholders. rapidly, but our people and venture partnership for Lacoste our values remain at the heart footwear. It also manages the We take a long-term view on of what we do. We have three Fitco business. developing and positioning business divisions: Pentland our brands, we are passionate Brands, Pentland Retail and about our people and committed JD Sports Pentland Investments. to being good corporate citizens. Fashion plc Pentland Group employs over Pentland Brands Pentland Group holds a 51.89% share in JD, the UK’s leading 50,000 people worldwide. Our Pentland Brands division retailer of branded sportswear, is the name behind some of the fashion and outdoor clothing world’s best sports, outdoor and equipment. JD is listed on and lifestyle brands. It owns the London Stock Exchange and Speedo, Berghaus, Canterbury is managed as an independent of New Zealand, ellesse, Endura, operation by the JD Board of Directors.

6

About Pentland Group

revenue of over £500 million Pentland and in which Pentland Group Investments owns a majority share; Pentland Through our Pentland Brands Limited and JD Sports Investments division, Fashion plc. we are a shareholder For more information, in companies such as visit our website. Tracksmith, Ugly Drinks and Vanarama.

Included in this Corporate Responsibility review are businesses with an annual

7 Our approach

We believe in doing the right increase their impact where we thing, not the easy thing – can. Our Standards set out as individuals and as an clear expectations of our people organisation. That means doing and partners, whether they are business ethically, supporting distributors, licensees, suppliers our people, minimising our or affiliates that we work with. impact on the environment and We partner with NGOs, partnering with others to drive academics and others in our our sustainability agenda. industry to create change for All Group companies, in the better and give back to our which we hold 50% or more communities. equity, are required to comply with our policies and we use our influence to help others

8 UN Global Compact

We are a signatory of the UN Global Compact and fully support its ten principles on human rights, labour, environment and anti-corruption. This report details the contribution our business divisions have made to each of the ten principles in 2020.

We remain committed to supporting the UN Sustainable Development Goals, which address the global challenges we face. We have selected the eight goals where we believe we can make the biggest difference.

9 World Economic Forum (WEF) Stakeholder Capitalism Metrics

This report is aligned with the WEF-recommended approach to sustainability reporting created by the International Business Council (IBC). It evaluates progress around metrics organised under four pillars: Principles of governance, People, Planet and Prosperity.

Metric SDG Location in our report Principles of 8, 10, 13 21, 40 governance People 3, 5, 8, 10 24, 42 Planet 9, 12, 13 32, 51 Prosperity 9, 10 16, 17

10 2020: a year in review

11 2020: a year in review

2020 saw progress across our business divisions in areas including sustainability, social impact and supply chain transparency. Here are some highlights.

12 2020: a year in review

campaign and Berghaus • Brands across the portfolio Pentland Brands expanded its diverse roster are increasing their uses of • Pentland Brands celebrated of ambassadors. sustainable materials. Speedo Global Inclusion Week developed its PowerFlex • During the global pandemic, 2020 by renewing its collective eco range, which uses fibres the brands also put their commitment to stay relevant made from ocean waste such principles into action - from to diverse consumers across as fishing nets. Canterbury helping consumers stay active the globe. As an employer, unveiled the latest British & at home to offering discounted it is taking steps to support Irish Lions shirt to be worn products for key workers. gender and racial equality by for the 2021 tour, which is increasing representation at • Endura planted its first one made from 100% recycled all levels of its business. million trees since launching its polyester and the most ‘1 Million Trees’ campaign at the sustainable in the Lions’ • Its brands continued to beginning of 2020. Pentland history. champion diversity and Brands has committed to its inclusion through their brands planting a further campaigns, products and 5 million trees in 2021. innovations. Speedo unveiled its ‘Made for Everyone’

13 JD Sports Fashion plc

• JD achieved a ‘Leadership’ largest cotton sustainability grade of A- within the CDP programme in the world. In ‘Climate Change’ assessment, 2020, JD produced 22% of its which looks at how companies cotton (or 3.7 million garments) are working to reduce through the BCI programme. greenhouse gas emissions • JD has been approved to take and combat climate change. on over 1,200 colleagues as JD out-performed its sector part of the UK government’s benchmark score by three Kickstart scheme. Available grades. to people on Universal Credit • During the last quarter of 2020, between the ages of 16 and 24, JD became members of The the Kickstart scheme enables Better Cotton Initiative (BCI). the most vulnerable individuals The BCI is a global, not-for- to enter the world of work to profit organisation and the gather vital skills and training.

14 COVID-19

During the ongoing COVID-19 Given the improved visibility on Red Cross, China pandemic, Pentland Group’s UK restrictions lifting, we have Medicins Sans Frontiers number one priority has been now stopped and have repaid all the health and wellbeing of our Government support received Trussell Trust employees, those working for our since the start of the crisis. London North West partners and within our supply This decision was taken in the University Healthcare Trust chain, and the communities in context of financial resilience which we operate, while also National Emergencies Trust within Pentland Group and the keeping our business running for greater confidence we now have our partners and consumers. Pentland Brands and JD have as our businesses emerge from taken a number of actions during With the closure of retail, gyms the crisis. the crisis to protect their people, and pools significantly impacting communities and those working During the pandemic, we also revenue over the past 12 months, within their supply chains. donated to support the work of we were grateful to access More information can be found some incredible organisations Government support so we in the Pentland Brands Positive that were funding critical medical could protect as many UK jobs Business report and the care, protecting vulnerable as possible across the Pentland JD annual report. people and providing essentials. Group owned businesses.

15

Partners and memberships

In 2020, sustainability expert The Pentland Centre Professor Jan Bebbington was for Sustainability appointed to the role of Pentland in Business Centre Director. Jan has dedicated her academic career to focusing on Pentland Group continues to support how organisations can contribute to the Pentland Centre for Sustainability sustainable development through in Business at Lancaster University, accounting and reporting activities. which it founded in 2015. The Centre carries out research to find practical solutions to social and environmental challenges.

16 Partners and memberships

University College In Kind Direct The Prince’s Trust London (UCL) During 2020, In Kind Direct supported Pentland Group supports The Prince’s over 3,200 UK charities, ensuring over Trust Enterprise Programme, which Pentland Group offers an annual 200,000 people each week had access to provides young entrepreneurs with scholarship for a graduate from the life’s essential products. Where we are the learning, mentoring and funding Southern Hemisphere at University unable to transform our brand products opportunities to start their own College London. The Pentland Churchill into something new, we donate them to In businesses. Scholarship offers the opportunity to Kind Direct, which distributes them to UK study at UCL’s Department of Political More information on the charities, charities that need them. Science and New York University Wagner academic institutions and organisations to become an Executive Master of Public that Pentland Group supports can be Administration. The purpose of the found on its website. scholarship is for delegates to continue to live in their country of origin and work to improve conditions for local communities. In 2020/2021 the scholarship was awarded to both Alphious Cole of Sierra Leone and Mathabo Mosia of South Africa.

17 Pentland Brands Limited

18 1. Building brands with Positive purpose business Our brands lead the way in making a difference, helping us maximise our positive impact.

Pentland Brands strives to make all its decisions in line 2. Owning our footprint with its business principle ‘in good conscience’. In 2020, it We make a positive accelerated its strategy to be impact on the world a positive business, targeting around us, minimising its actions across three distinct our environmental impact pillars. and supporting the communities in which More information on the we operate. Pentland Brands Positive Business strategy can be found in the Pentland Brands Positive 3. Promoting circularity Business report. and collaboration

We strive to embed circular processes and collaborate to create positive change.

19 Governance

Pentland Brands’ governing purpose is ‘building brands for the world to love, generation after generation’. It behaves in a way that upholds its principles as it believes that this is instrumental to its long-term success.

20 Governance Positive business governance structure

As a business, Pentland Brands CEO & Executive team has dedicated teams, leaders In Good Conscience and committees to help put its forum, led by Supply principles into practice. Chain President Supply Chain President All committees are overseen by the Pentland Brands

Executive team. Positive Business Director Representatives from CR, Legal, Sourcing & Supply Chain Corporate responsibility team

Brands Supply chain Charity partners

Information on key business decisions and any resulting stakeholder engagement at Pentland Brands during 2020 can be found in its Section 172 statement. 21 Ethical behaviour Ethical trade governance structure

Pentland Brands has a robust Every 2 weeks Every 4-6 weeks Every quarter governance process for issues Supply Chain relating to supply chain, human In Good Conscience Forum Risk Committee Executive meeting rights and ethical behaviour. Its team of experts work together to evaluate risks and opportunities Supply Chain President* Supply Chain President* Chief Operating Officer* and make coherent, data-driven decisions. Supply Chain Supply Chain Exec plus Good governance for ethical Operations Director Representatives from representatives from issues is also promoted through all functions including CR, Legal, Sourcing compulsory all-employee training supply chain and Supply Chain programmes and regular social Logistics Director audits. More information can be found in the Pentland Brands Positive Business report. Positive Business Director

CEO and Executive team*

Executive team member 22 People

Pentland Brands’ global teams are united by mutual respect, a desire to develop the business and a focus on inclusion.

23 Diversity and inclusion

Pentland Brands is working Pentland Brands recognises that diversity and to level the playing field, by Focus areas: inclusion is a broad topic, encompassing a range building diversity and inclusion Positive: D&I is powered of important issues. Its aim is to improve the into everything it does - from by people and brands representation of women and people from ethnic recruitment processes to brand minority groups in Director level roles, which it Inclusive: everyone feels campaigns. plans to do through a combination of continued a true sense of belonging succession planning, talent pipeline development Diversity and Diverse: striving for better and external recruitment. representation across the More information can be found in the latest inclusion business to reflect diverse Pentland Brands Gender Pay Gap report. framework consumers. Purpose: to build a business where everyone is welcomed, Target representation supported and encouraged to – Directors grow and contribute. Women Ethnic minority groups

Current 34% 10%

By end 43% 15% of 2022

24 Health and wellbeing

Pentland Brands has a number of tools to help its people be at their best. It offers all employees unlimited access to online programmes such as Unmind to support mental wellbeing. It also offers confidential 24/7 access to counsellors and information specialists in the areas of emotional, health, management, legal, debt, elder and younger care and financial.

25 Learning and development

As well as working across Pentland Brands provides different brands and projects, development resources around Pentland Brands offers topics including peer to peer employees a range of learning mentoring, videos and useful and development opportunities, guides to aid self-directed on-the-job experiences and learning. In 2020, it launched support to help its people make a new unlimited LinkedIn a positive contribution to Learning offering, designed the business. to help its people develop their skills autonomously and in a way that works for them.

26 Modern slavery

Modern slavery is unacceptable. Pentland Brands strives to build Key sourcing facts a fair, ethical and transparent • 164 tier one suppliers supply chain and has policies, manufacturing in 19 regions risk assessments and committees • 31 tier two nominated fabric that help put this into practice. suppliers manufacturing in Pentland Brands has committed 7 regions to work hard to protect rights • 103 audits in 2020 and improve working conditions for everyone in its supply chain. More information about the Pentland Brands supply chain model can be viewed here. Its tier 1 and tier 2 supplier lists are also available on its website.

More information about the actions Pentland Brands is taking to address the complex issue of modern slavery is available in its latest Modern Slavery report.

27 Charity

Pentland Brands channels its charity support through Headline numbers global charity partnerships, 1% of net profit after tax donated brand community initiatives to charitable causes and employee volunteering 31 loans given to support small programmes. business owners in emerging Goals markets, creating 24 new jobs 6,500 brand products donated to • Inspiring young people charity to be more active £11,000+ donated to local • Empowering disadvantaged communities through its communities employee Charity Network • Reducing our environmental impact

28 Partners

SportInspired Panathlon The British Council Tackling childhood obesity in Providing sporting opportunities for over Supporting economic empowerment disadvantaged communities 17,500 young people with disabilities every through educational opportunities. through fun and inclusive sports year. programmes for schools. Partners

United Purpose Lendwithcare Saturday Club Trust Striving to end poverty and inequality Helping entrepreneurs in emerging Giving young people in the UK a chance across the globe. markets to establish or expand their to attend a masterclass across a variety of businesses through a series of small loans. topics and discover a subject they love.

More information on Pentland Brands’ charity partnerships can be found in its Positive Business report.

30 Planet

Pentland Brands is taking steps to ensure it creates a positive impact on the planet. Its target is to reduce its carbon emissions by 25% by 2025, as part of its long-term ambition to become carbon neutral.

31 Planet

The closure of UK offices in 2020 due UK operations Greenhouse to COVID-19 restrictions, meant that CO2 Pentland Brands is working gas emissions emissions from electricity and gas were to minimise its footprint across The gross greenhouse gas significantly reduced compared to 2019. its operations. All its UK offices (GHG) emissions for Pentland use 100% renewable energy. Brands, reportable under SECR Greenhouse gas Other energy saving initiatives legislation during the period 1st emissions across its locations include: January 2020 to 31st December Emissions Source 2020 % Share 2020, are 2,994 tonnes of carbon (tCO2e) • LED lighting at various dioxide equivalent (tCO2e). UK locations The reporting methodology Fuel Combustion: 1,575 52.6% • Solar panels at its has changed since 2019, due to Natural Gas changes in legislation and an Nottingham office Fuel Combustion: 124 4.2% increase in scope to include the Transport • Electric vehicle charging points Endura operations. Year-on-year at its London, Nottingham and comparisons will be presented Consumed Electricity 1,294 43.2% Sunderland offices in the next annual Corporate Total Emissions 2,994 100.0% Responsibility review. (tCO2e) Supply chain

Pentland Brands is working to materials such as polyester emit Average carbon reduction reduce the environmental impact 21% more CO2 by material (CO2e) of its operations, which it measures than recycled polyester, with Polyester vs recycled using the Higg Index as part of its nylon also releasing 45% more polyester – 21% membership of the Sustainable CO2 than its recycled Apparel Coalition (SAC). alternative. Polyamide (nylon) vs recycled polyamide – 45% As a result, brands across Sustainable the portfolio are increasing Conventional cotton materials the recycled content in their vs organic cotton – 10% products. This includes Speedo’s In 2020, Pentland Brands reviewed Average water reduction PowerFlex eco range and the water and carbon footprint by material (m3) of a selection of its materials Canterbury’s latest British & using the Higg Index. The review Irish Lions jersey, which is made Polyester analysed where the business can from 100% recycled polyester. vs recycled polyester – 25% reduce its CO2 emissions and Pentland Brands intends to expand this study year-on- Polyamide (nylon) water consumption. The results vs recycled polyamide – -12% demonstrated that common year so it can continue to make informed decisions about its Conventional cotton fabric usage. vs organic cotton – 87%

33

Production

Pentland Brands prioritises working with materials suppliers which have MADEKIND™ accreditations in sustainability, for the planet chemicals management and MADEKIND™ was created for manufacturing. Berghaus to demonstrate the sustainability credentials of its Preferred supplier products. To be MADEKIND™, a product has to fit one of accredidations* a number of sustainability criteria, Fabrics Trims Footwear* including containing more than 50% recycled or bio-based content, bluesign® 63% 14% N/A more than 90% bluesign® approved fabric or being made with certified oekotex® 82% 93% N/A sustainable down or cotton. standard 100 Between Autumn Winter 20 and Leather N/A N/A 100% Autumn Winter 21, Berghaus increased the number of Working MADEKIND™ products in its Group range by 34%. one or more 92% 97% 100% of the above

*all brands excluding Endura and Speedo North America 34

Nature and biodiversity

Pentland Brands is taking steps which thrive in most conditions In 2019, Product Development support the conservation and and protect biodiversity. Local teams at Pentland Brands protection of ecosystems in line people are hired to support switched all plastic shipping with its ambition to create the reforestation activities and bags used across the brands’ a positive footprint. benefit from the increased soil ecommerce websites to FSC fertility for crops. certified packaging made from Brands planting 80% post-consumer waste. This Reducing single- change reduced the amount 5 million trees of plastic shipped in 2020 by Endura accelerated its use plastic 27 tonnes, or nearly one sustainability ambitions by Pentland Brands avoids million plastic bottles. planting 1 million trees in using single-use plastic where 2020 and Pentland Brands possible, due to its negative has committed to its brands impact on oceans and marine planting a further 5 million life. It is working to reduce trees in 2021. The brands the prevalence of single-use will work with Eden plastics in our packaging and Reforestation Projects across our brand products. to plant mangrove trees,

35

Reducing single-use plastic

Among other initiatives, Kickers Kickers takes has also swapped all polyester plastic out of mesh linings to recycled PET. the playground Kickers won ‘Best Sustainable Kickers has removed all Initiative of the Year’ at the unnecessary packaging from Drapers Footwear Awards 2020 its products such as shoe sticks, for re-engineering its existing card dividers and excess tissue styles to be more environmentally paper. In 2020, the brand saved friendly. approximately 340,000 shoe sticks, which would measure a distance of 34km end-to-end.

36 Reducing single-use plastic

93% of Speedo’s 2020 watershorts Speedo targets are made from recycled fabrics and sustainable the remaining 7% are produced from a fabric that uses an environmentally swimming friendly method of dyeing that results in less water, energy and chemicals. When it comes to recycling, even a small change can make a big Speedo also increased the recycled difference. Speedo’s PowerFlex eco PET content in a selection of goggle range uses ECONYL® and REPET cases from 50% to 70%, which will yarn, which is made from ocean reduce our virgin plastic usage by waste, including fishing nets. All 23.2 tons per year. the packaging, including swing tags, By 2024, Speedo’s ambition is strings, kimbles and bags, are fully that 100% of its swimwear and recyclable and made from recycled packaging will be produced with materials. more sustainable materials. Speedo has reduced the size of For more information on how swing tags and swapped the material Pentland Brands is building to 40% recycled content. This small sustainable products, view its change will save 3,792 tonnes of latest Positive Business report. virgin fibre – which equals 64,461 trees in one year.

37 JD Sports Fashion plc

38 JD Sports Fashion plc

JD’s ESG Committee has shared Governance its 2020 achievements and 2021 Prior to JD’s entry into the FTSE objectives with its leading 100, the Board began a formal brands, outlining its progress Environmental Social Governance and encouraging its suppliers (ESG) engagement process, to increase the disclosure of leading to a step-change in its information relating to their commitment to provide greater own environmental progress. transparency and performance data.

As part of its FTSE 100 entry, JD founded its ESG committee to determine ESG-related strategy, corporate risk assessment and monitoring of ESG performance across JD’s fascias and territories.

39 JD Sports Fashion plc

provides assurance that its private label Ethical sourcing products are manufactured within safe Approximately 90% of the products sold and fair conditions. The Ethical Code of by JD are sourced from its international Practice applies to everything the business brand partners, with the remaining 10% does and forms part of the contract for derived from the Group’s own sourcing JD’s partners. It states that the people of goods. JD introduced its Ethical Code working for its suppliers are to be treated of Practice in 2019, encompassing with respect, and their health and safety its policies into a concise document and basic human rights must be protected for its manufacturing suppliers and and promoted. The JD Code of Conduct brands. It has made further updates and is included in this document which follows improvements in 2020/21 to ensure that the International Labour Organisation its policies reflect the latest best practice (ILO) minimum standards. on human rights, worker welfare, To find out more about JD’s Ethical Code and health and safety issues. of Practice, visit its corporate website JD’s Ethical Code of Practice establishes at https://www.jdplc.com/code-of- the procedure for protecting workers and practice.

40 People Inclusivity

The talented individuals working JD is absolutely committed to topics such as equality, diversity, at JD are integral to its continued promoting policies which ensure biases and cultural intelligence. success. JD strives to attract, retain that colleagues and customers Alongside the introduction of and develop the very best talent at are treated equally regardless of Diversity & Inclusion forums, it all levels of its organisation. ethnicity, social origin, gender, remains committed to engage, sexual orientation, disability or age. learn and promote dialogue around JD aims to create a workplace in potentially sensitive subjects in which everyone is safe; supported Following the tragic death of order to improve understanding and and respected; treated fairly and taken George Floyd in the United States, awareness throughout the business. care of, listened to, and motivated JD worked with its teams around to achieve their full potential. It is the world and with both the JD In addition, a series of videos committed to achieving excellence Foundation and the Finish Line have been created, highlighting in the areas of health and safety and Youth Foundation to ensure that it individual experiences of diversity the protection of its colleagues in plays an integral part in addressing and inclusivity. These have been their working environment. all forms of discrimination in distributed via JD’s people platform, society. JD4U, to emphasise the importance JD’s goal is to provide opportunities, of the campaign to all colleagues support and guidance to its colleagues JD has launched an Inclusivity and drive engagement at all levels. all over the world, whilst promoting Campaign which will support The videos have generated over inclusivity, social mobility and mutual its promise to educate and train 40,000 views by employees. respect. its people, with a focus on key

41 People

Gender Analysis Male Female Total % Male % Female Plc Board 5 2 7 71% 29% The breakdown of the Plc Board and the JD Group as a whole by gender Senior 409 150 559 73% 27% as at the end of the financial period Managers ended 30 January 2021 is as follows: Other 30,003 30,484 60,487 50% 50% employees

42 People

department focused on four key areas: Digital learning during Apprenticeships Leadership, Brands, Operations and COVID-19 Over the last few years, JD has worked Technology. alongside internal and external JD’s online e-learning platform played The JD Learning and Development team stakeholders to promote apprenticeships a crucial part in the accelerated adoption is experienced in delivering training as a development opportunity across the of digital learning. An example of this solutions to support a broad range of organisation. was the rollout of the COVID-19 module initiatives. Their greatest achievement in to 39,554 colleagues across the UK & To date, 45 apprentices have completed 2020 was the number of virtual sessions Europe; achieving a company record for their apprenticeships successfully and delivered as a result of restrictions the highest number of participants to 66 are currently studying programmes due to COVID-19. The team conducted a single course. The module ensured a such as Management, HR, Data Analytics, 364 virtual courses, attended by 1,202 consistent message was communicated Retail, Accountancy, Digital Marketing, delegates across the business (including across the business, enhancing awareness Software Development, Quantity 216 courses internationally, reaching and helping to keep both colleagues and Surveying and many more. 894 attendees). 94% of attendees agreed customers safe. that virtual courses allowed for effective Globally, JD employees have access to Learning & learning and the quality of training almost 800 courses, tailored to support their Development was maintained. specific job role, with 8.4 million hours of In 2020, JD’s Learning and Development learning completed throughout 2020.

43 People

Kickstart Scheme JD recognises that young people are the future. In 2020 the business was approved to take on over 1,200 colleagues as part of the UK government’s Kickstart scheme.

Available to people on Universal Credit between the ages of 16 and 24, the Kickstart scheme enables the most vulnerable individuals to enter the world of work to gather vital skills and training (from both JD and the Prince’s Trust). JD’s Kickstart selection process will have a particular focus on attracting individuals from disadvantaged backgrounds, who may otherwise have been displaced further from the employment market due to COVID-19.

44 People

Supply Chain JD continues to map its supply chain across tiers 1-4, which requires ongoing engagement with its partners.

• 1st Tier = CMT Site (Factory • 2nd Tier = Mill • 3rd Tier = Dye House • 4th Tier = Print House

Summary of partners in 2019 - 2020 • 176 Agents in 2020 V 243 Agents in 2019 • 496 factories in 2020 V 355 factories in 2019 • 21 Sourcing Countries 2020 V 25 Sourcing Countries in 2019

Further data on auditing and sourcing data can be viewed in the JD annual report. 45 People

agencies and businesses to report Modern Slavery concerns and get help and advice. Modern Slavery is a constantly The UNSEEN Modern Slavery changing, multi-faceted topic that Helpline is included in JD’s latest can impact any sector or community. Ethical Code of Practice. Accordingly, it is important to During 2020, international travel understand new trends emerging restrictions meant that overseas from those involved in labour auditing was not permitted, either exploitation and modern slavery. by JD or external third parties. JD has partnered with UNSEEN JD has mitigated this risk by UK to support its UK Modern continuing to work with its suppliers Slavery Helpline and Resource on factory standards, including Centre. This vital resource provides rectification of non-compliance 24/7 access and assistance for issues via remote management. victims, the public, statutory

46 Ethical trade governance structure

No of Employees: 108 Key People: No of Employees: 111 Training: Head of Sourcing Training: Key People: 3 • Modern Slavery QA & Ethics • Modern Slavery HR Manager • Spot the signs Head of HR Operations • Spot the signs Supply Chain Manager • Mental Health Snr Group • Mental Health Site Security Manager • First Aid Security Manager • First Aid • GDPR Distribution Logistics

Welfare Strategic Critical Welfare Champion Response Response Champions Sponsor Team Team

ROLE Key management ROLE ROLE ROLE stakeholders to ensure the To alert Directors of To provide support to To provide first line documented escalation the wider business and Welfare Champions and support to collegues process is followed in to notify / liaise with provide first line advice consultation with the authorities as appropriate critical response team

47 JD Foundation

The JD Foundation is a registered community-based initiatives in charity, founded by the JD Group addition to nationwide charities in October 2015. Its mission is to tackling mental health, youth support charities working with homelessness and unemployment. disadvantaged young people in The Foundation also supports the UK. charities which provide help to families dealing with undiagnosed The Foundation supported 18 heart conditions, terminal illness charities in 2020 with a focus on and bereavement. mental health and homelessness. In early 2020, JD agreed a new charity partnership with City £3.1 million Hearts, who support victims of donated since 2015 modern slavery to thrive in their communities. The Foundation also supports the Bright Futures Chosen charities Employment programme. for 2020 The Foundation’s chosen charity partners support a number of

48 Employee choice partnership

In September 2020 the Foundation announced a new two-year Employee Choice Partnership with Blueprint for All (formerly Stephen Lawrence Charitable Trust). In support of the #BlackLivesMatter movement, £62,500 was pledged towards the eradication of racism. A number of charities aligned with this mission were shortlisted with colleagues voting for their preferred partnership. Three other charities were awarded grants in this process - Show Racism the Red Card, BLAM UK CIC and the Anthony Walker Foundation.

More information on JD’s charity partnerships can be found in its annual report.

49 Planet

JD recognises its responsibility to contribute towards reducing the impact of climate change and remains fully supportive of the United Nations ‘Paris Agreement’ adopted in 2016.

Over the past two years JD has re-purposed and relaunched its corporate website, providing detailed explanations and case studies highlighting its environmental progress.

50 Climate change Carbon emissions JD remains committed to presenting data reflecting energy usage and carbon footprint.

2021 (UK 2021 & ROI) 2021 (Int) (Total) Responsible energy procurement (including manufacture of products), Energy Usage 71,254,598 88,928,909 160,183,507 and usage remains integral to JD’s and non-merchandise suppliers, – Electricity efforts to help limit global warming. including but not limited to product (kWh) JD requires all of its subsidiaries transport and delivery. and suppliers (regardless of Energy Usage 14,184,165 12,810,388 26,994,553 Scope One and Two emissions territory) to mirror its commitment – Natural Gas reduction targets: By 2035, JD will towards minimising the impact (kWh) achieve an absolute reduction of of climate change. 67.2%* vs our 2019/20 base year. Total Energy 85,438,763 101,739,297 187,178,060 JD’s management of carbon Use (kWh) Scope Three emission reduction emissions is delineated into two target: By 2035, JD will achieve an Carbon 20,152 30,757 50,909 categories: absolute reduction of 67.2%* vs its Emissions 1) Scope One and Scope Two - 2019/20 base year. (Tonnes ‘directly controlled’ operations CO2e) * subject to final data validation within Group-owned infrastructure Intensity 32.7 57.4 44.2 checks and external specialist (e.g. JD’s warehouse and in-store metric: review. energy usage) Location based 2) Scope Three - the operations and emissions activities of merchandise suppliers (kgCO2e/m2) 51 Water consumption and biodiversity

JD recognises that its largest • Continuing its ‘Sustainability water footprint is via its supply flag’ assessment process for chain and its own operational use. its own-brand manufactured garments. This ensures that Recently, JD has progressed by: JD’s private label products and • Submitting its first ever suppliers have been subject to response to the CDP ‘Water reviews and compliance criteria Security’ survey, achieving designed to reduce its impact a ‘B’ grade score. on the environment.

• Reducing its use of virgin polyester and increasing its use of Responsibly Sourced Cotton (‘sustainable cotton’). Sustainable cotton ensures; i) that farmers are trained on methods of water reduction ii) that farms are economically irrigated and iii) the receipt and payment of fair wages to workers. 52 Sustainable sourcing

JD began the journey to integrate 22% of its cotton through the BCI sustainability into its private label Joining the Better programme. This equates to 3.7 business in 2019 - from conception Cotton Initiative million garments, representing 492 to end product and beyond. (BCI) metric tonnes of ‘Better Cotton’, which is grown via methods For its footwear and accessories During the last quarter of 2020, that protect and restore the brands, JD provides a ‘supplier JD became members of the Better environment, whilst improving manual’ including policies on Cotton Initiative (BCI). The BCI is farmers’ livelihoods. JD’s sourcing modern slavery, procurement and a global, not-for-profit organisation of Better Cotton in 2020 saved an environmental footprint reduction. and the largest cotton sustainability estimated 279 million litres of water This also includes standards to be programme in the world. BCI exists whilst generating over €80,000 of met with regards to chemical usage. to make global cotton production additional profit for BCI-licensed For leather manufactured goods, the better for the people that produce it, farmers. Group requires suppliers to be signed the environment in which it grows, up to the Leather Working Group and to invest within the future of the JD has committed to sourcing (LWG) standards. cotton industry. 80% of its cotton through the BCI by 2022, by converting 13 million During the first period of JD’s BCI garments to sustainable cotton. membership (2020), JD produced

53 Circular economies

JD is committed to an internal The JD Development team analyses align to its waste-elimination circular economy model to minimise the feedback associated with principles within their own landfill waste across its business. products returned by its customers businesses. These partners So far, it has achieved ‘zero waste to identify any common issues include Africa Shoes, which to landfill’ certification for its UK which can be corrected for future exports branded second-hand distribution centre, and continues to production cycles. These design products to local vendors in re-use, repurpose and recycle across changes and corrections help Africa, Sole Responsibility, all of its operations – from sourcing to limit the volume of customer which resells clothing and through to packaging. returns, which reduces carbon footwear diverted from landfill, emissions. and Carbon Resources, which Designing out specialises in the refurbishment Keeping materials and repair of tents and waste equipment to extend the JD’s products are designed with in use lives of these products. sustainability in mind from the JD has developed a supply chain outset, using high quality material to support the environment by and dyes, laser-cutting and brushing keeping products and materials of the fabric during manufacture. in use for as long as possible. These best practice measures extend To enable this, JD has identified the life of its products. supply chain partners able to

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