INSPIRING THROUGH CO-OPERATION Sustainability Report 2011 Our co-operative difference The Co-operative Group stands Our purpose, vision and aims apart from other major businesses in Our purpose is: Our aims are: the UK as an organisation which is To serve our members by carrying on • o T be a commercially successful business owned, not by investor shareholders, business as a co-operative in accordance • To meet the needs of our customers and but by over 7.2 million individual with co-operative Values and Principles. the communities we serve members and in the region of 80 • To respond to our members and share Our vision is: Independent Co-operative Societies. our profits To build a better society by excelling in • To be an ethical leader Our business practice is guided everything we do. by the Values and Principles of the • To be an exemplary employer Co-operative Movement: • To inspire others through co-operation. Values Our business model How we are governed Co-operatives are based on the values of We are in business to serve our members Our members elect representatives to self-help, self-responsibility, democracy, and their communities, and our business is oversee the business. The Group Board is equality, equity and solidarity. In the run for their benefit. We listen to member entirely non-executive and consists of tradition of their founders, co-operative opinions and integrate these into our 20 directors, 15 of whom are elected from members believe in the ethical values of business activities and our social and our regional boards, while the remaining honesty, openness, social responsibility campaign agenda. five are elected from Independent and caring for others. Co-operative Societies. Each year one- Individual members of the Group exercise third of Board members are required to democratic control by serving on its Principles seek re-election. 48 area committees and seven regional The co-operative principles are guidelines boards, or by voting in elections, by Three subsidiary boards are responsible by which co-operatives put their values attending twice-yearly members meetings for our major business units – The into practice. They are: held throughout the country or by Co-operative Food, The Co-operative • Voluntary and open membership participating in other consultation initiatives. Banking Group and Co-operative Specialist Businesses. • Democratic member control Our profits are shared with each member, • Member economic participation in proportion to their level of trade with The Group Board is responsible for the • Autonomy and independence us over the year. Our member democracy long-term success of the Group. It elects, • Education, training and information model offers individuals the opportunity and is led by, the Group Chair, a non- to play a direct role in the future direction executive director of the business, and it • Co-operation between co-operatives of the Group. Active members may stand appoints the Group Chief Executive, who • Concern for community. for election to their area committees; area has direct responsibility for the Group on committee members are in turn elected a day-to-day basis and is accountable to to regional boards and ultimately to the the Board for the financial and operational Group Board. performance of the Group. 1 Angel Square 1 Angel Square, pictured on the front the construction industry’s BREEAM cover, is The Co-operative’s new flagship measurement rating of ‘outstanding’. office building in Manchester City Centre. The building is the single largest It is on budget and on schedule to open embodiment of The Co-operative in October 2012. brand, and the first phase of NOMA1, It sets a new benchmark for a sustainable regeneration programme environmentally sound commercial that will breathe new life into a 24-acre construction and will be one of only a few area of the city centre. buildings worldwide, to achieve 1 www.noma53.com 1 About this Report 104 Expert commentary 2 Chair’s overview 105 Independent assurance statement Contents 3 Chief Executive’s overview 113 Scope of Report and 4 Executive summary target summary 6 The Co-operative at a glance 7 Managing sustainability Social responsibility Ecological sustainability Delivering value UK community investment Climate change Democratic control Page 12 Page 50 Page 76 International development Waste and packaging Supporting co-operatives and human rights Page 59 Page 82 Page 16 Water Economic impact Animal welfare Page 63 Page 85 Page 24 Biodiversity Employees Diet and health Page 65 Page 88 Page 29 Chemicals Customers Responsible finance Page 71 Page 96 Page 33 Public policy Social inclusion Page 100 Page 39 Inspiring young people Page 44 About this Report Within The Co-operative Group we have of 16 separate instances of public policy produced an annual ‘warts and all’ intervention on sustainability matters, an Sustainability Report every year since 1997, activity we believe is vital for businesses setting new standards for reporting over leading in sustainability. the last 15 years. Over that time we have The Report is aligned with the Global reported on our performance, both good and Reporting Initiative’s G3.1 Guidelines, bad, against more than 1,000 targets and achieving an A+ application level. Indeed, this Report continues to demonstrate our we were the first UK bank and food retailer This Report is all about commitment to openness and honesty. to produce a report to an A+ level. “ trust... For me, that’s what The 2011 Report is split into 18 sections All data and commentary are assured by co-operative ownership and detailing performance on our most Two Tomorrows in accordance with the co-operative wealth creation material sustainability issues. Within each AA1000 Assurance Standard (2008). is all about.” section, we have established performance (Jonathon Porritt’s commentary, indicators against which we set and report The title of this Report Inspiring through page 104) on targets (most of which are derived co-operation is intended to convey how In the light of increasingly from our Ethical Plan E.P. ) and where co-operation can play a vital role in appropriate we provide four years’ worth delivering societal benefits in a sustainable “ challenging economic times, of comparable data1. and long-term manner. This theme runs the way The Co-operative through the Report and ‘In focus’ case delivers transparency will In line with our commitment to transparency, studies provide the reader with many again come to the fore.” this Report includes over 40 performance examples of co-operation in action. (Assurance statement, page 105) benchmarks, allowing the reader to make sense of our performance relative to 1 A longer data record is available via previous Reports, which can others. And the Report contains details be downloaded at: www.co-operative.co.uk/sustainabilityreport The Co-operative Group Sustainability Report 2011 1 Chair’s overview Chair’s overview A sustainable commitment Co-operatives Our members, rather than shareholders 2012 is the United Nations International own the business and maintain its Year of Co-operatives and we have governance. This enables us to make launched a raft of important initiatives to decisions for the long term, rather than ensure the year leaves long-term legacies being knocked off course by the short- to secure the future of co-operation. Chief term priorities of investors. It ensures that One of those we can be most proud of we not only remain true to our ethical Executive’s is the Global Co-operative Development commitments and social goals as we work Fund, in co-operation with the International our way through this recession, but has Co-operative Alliance. We have once again Our commitment remains to seen us increase our commitment. overview be the most ethical retailer taken a leadership position in promoting “ and financial services provider In 2011 we invited our customers (and Co-operation worldwide, providing loans potential customers) to ‘Join the Revolution’. and start-up money to get initiatives off on the UK high street.” the ground that will encourage self-help, We made it clear that we were proud of responsibility and the fostering of strong our radical heritage. Communities need communities for decades ahead. our support. Poverty needs addressing Despite a challenging economic backdrop, at home and abroad. Climate change there is no let up in our pursuit of Taking stock must be tackled. Young people need to be sustainability. Our co-operative model is inspired. And co-operation itself must have Although we have much to celebrate Executive structured to put the interests of member- investment if it is to grow and flourish. in 2011, we must recognise that customers at the heart of our business 2012 will be another challenging year strategy and our members don’t just want This Report sets out how we have for us commercially. summary us to be sustainability leaders, they expect it. performed in meeting the targets we set for ourselves within our new Ethical However, sometimes it is good to step No business has been left immune from Plan. We have now set revised targets back from our immediate concerns and the squeeze on individual finances, rising – challenging but realistic – for the next remind ourselves of just how much we unemployment, and people’s worries over The Co-operative at a glance three years. Our commitment remains to have achieved in recent years. job security; indeed, we saw a downturn in be the most ethical retailer and financial sales and profits in 2011 compared to the We have a brand that has been radically services provider on the UK high street. exceptional performance we had achieved rejuvenated. We have a membership that in 2010. has grown substantially. Our sales and Leading the way profits are double what they were in 2007.