Pentland Group Corporate Responsibility Review 2019 Introduction A view from our Chairman, Stephen Rubin 3 Who we are 5 UN Global Compact 9 2019: a year in review 11 This Pentland Group Corporate Responsibility Review evaluates the progress we made in 2019, Corporate Responsibility and outlines our plans for 2020. at Pentland Brands Limited You can view our previous Positive Business strategy 18 Corporate Responsibility Brands with purpose 19 reviews here. Our footprint 32 Our future 44 Corporate Responsibility at JD Sports Fashion plc People 51 Energy and the environment 56 Ethical sourcing 61 The JD Foundation 64 2 A view from our Chairman, Stephen Rubin Looking back at 2019, it is clear that the business performance benchmarks and working towards its broader The Rubin Foundation continued to support charities context for corporate responsibility has changed ambition for all its existing global operations to be powered focused on climate change, inequality and education. considerably. Building a sustainable business has by renewable energy by 2025. The Foundation continued to support the Pentland never been more important to our stakeholders - Centre for Sustainability at Lancaster University, Our people remain at the heart of what we do, and our our people, our partners and our consumers. funding disadvantaged young entrepreneurs through employees play a vital role in our success. Pentland Brands The Princes Trust and a public policy scholarship for As one of the original members of the UN Global continues to champion diversity and inclusion (D&I), developing countries with UCL. The JD Foundation Compact, and continued advocate of the UN with three D&I networks in the UK and a working group continued to support charities working with Sustainable Development Goals, I am pleased with in Asia playing a vital part in shaping its initiatives. In disadvantaged young people in the UK focused on the progress of our businesses in supporting and September 2019, it celebrated its third Global Inclusion mental health and homelessness. Pentland Brands fulfilling our sustainability ambitions in 2019. Week, which saw employees come together to discuss continued to support charity partners in communities ideas for improvement. Pentland Brands Limited accelerated its Positive where they operate working to help disadvantaged Business strategy, sharing plans and ambitions A key focus area for our businesses is to maintain an ethical young people through empowerment and sport. to take action for people and our planet. This new supply chain where people are treated fairly, honestly and I am proud of the progress our businesses have made direction is driven by employees, who are passionate with respect. Both Pentland Brands and JD have evolved in 2019 and I am confident in their ability to build on and like-minded individuals, and believe in building their approaches to ethical sourcing, with Pentland Brands this in the years to come. Together, we will continue a better future for the world we live in. obtaining ‘achiever’ level with the Ethical Trading Initiative to take action for the causes that we believe in, working (ETI) and JD introducing its new Code of Practice, to JD Sports Fashion Plc continues to recognise the together to make a difference and create a positive ensure all products created by its brands and suppliers importance of protecting the environment and environmental and social impact. I look forward are manufactured in safe and fair conditions. minimising the impact of its operations. It has to sharing our progress with you. taken steps to advance its reputation as a sustainable The Group continued to give back to those in need Stephen Rubin organisation by participating in environmental during the year in a number of different ways. Chairman, Pentland Group 3 COVID-19 While this report is a reflection You can read more about on 2019, we acknowledge that the Pentland Brands’ response impact of COVID-19 on our corporate to COVID-19 here. responsibility activities has been You can read more about JDs’ extensive and far-reaching and will response to COVID-19 here. continue through 2020 and beyond. Our priority remains the wellbeing of our people, partners, customers and consumers, alongside building a sustainable business. 4 Who we are 5 About Pentland Group We are a family-owned business Brands, Pentland Retail and that owns and invests in companies Pentland Investments. Pentland to create value for stakeholders. Investments We take a long-term view on Pentland Brands Through our Pentland Investments developing and positioning our Our Pentland Brands division is division, we are a shareholder in brands, we are passionate about the name behind some of the world’s companies such as Hunter Boot our people and committed to best sports, outdoor and lifestyle Ltd and Tracksmith. We also invest being good corporate citizens. brands. These include Speedo, in businesses across a number of Berghaus, Canterbury of New different industries. Pentland Group employs over Zealand, ellesse, Endura, SeaVees, 50,000 people and has annual Included in this Corporate KangaROOS and Mitre. sales of $6.4 billion. Responsibility review are businesses with an annual revenue of over £500 Pentland Retail million, in which Pentland Group How we work Our retail division comprises the owns a majority share. The scope is Our businesses are changing activities of JD Sports Fashion plc, therefore Pentland Brands Limited rapidly, but our people and our the UK’s leading retailer of branded and JD Sports Fashion plc. values remain at the heart of sportswear, fashion and outdoor what we do. We have three clothing and equipment, in which business divisions: Pentland Pentland Group holds a 55% share. 6 Our story Pentland Group took its first steps Honesty, respect, and hard work as the Liverpool Shoe Company run through all that we do. in 1932. Founded by Minnie and Our focus is building long- Berko Rubin, what began as a small term, sustainable businesses shoe business expanded until we that adapt to the changing were both a manufacturer and environment. We aim to make a wholesaler of footwear. a positive impact through our As a family-owned company, doing businesses, our products, our business responsibly has been services and our communities. important to us from the beginning. Our Business Standards set out our expectations for ourselves, our partners and our suppliers to ensure that we continue to do business in the right way. 7 Our approach We believe in doing the right thing, We partner with NGOs, academics not the easy thing – as individuals and others in our industry to and as an organisation. That create change for the better and means doing business ethically, give back to our communities. supporting our people, minimising our impact on the environment and partnering with others to drive our sustainability agenda. All Group companies, in which we hold 50% or more equity, are required to comply with our policies and we use our influence to help others increase their impact where we can. 8 Topic UN Global Compact Principle Location in our report UN Global Compact Human rights 1. Businesses should support and 32, 61 respect the protection of internationally proclaimed human rights; and 2. make sure that they are not complicit 32, 61 in human rights abuses Labour 3. Businesses should uphold the freedom 32, 61 We are a signatory of the UN Global of association and the effective recognition Compact and fully support its ten of the right to collective bargaining; principles on human rights, labour, 4. the elimination of all forms of forced 32, 62 environment and anti-corruption. and compulsory labour; This report details the contribution 5. the effective abolition of child 32, 62 our business divisions have made to labour; and each of the ten principles in 2019. 6. the elimination of discrimination in 39, 50 respect of employment and occupation Environment 7. Businesses should support a 42, 55 precautionary approach to environmental challenges; 8. undertake initiatives to promote 42, 55 greater environmental responsibility; and 9. encourage the development and diffusion 42, 55 of environmentally friendly technologies Anti-corruption 10. Businesses should work against 32, 50 corruption in all its forms, including extortion and bribery 9 UN Global Compact We are committed to supporting the UN Sustainable Development Goals, which address the global challenges faced by our planet. We have selected the eight goals where we believe we can make the biggest difference. 10 2019: a year in review 2019 saw progress across our business divisions in areas covering sustainability, social impact and supply chain. Here are some highlights. 11 Pentland Brands Limited Nurturing brands Leaving a positive with purpose footprint • Speedo championed diversity and • Pentland Brands progressed to level • It also pushed ahead with its inclusion through its sponsorship ‘achiever’ with the Ethical Trading sustainability agenda, building a programme, pledging to support Initiative (ETI), for strengthening sustainable materials library for Paralympic teams in Tokyo 2021 and its approach to ethical trade its tier two footwear suppliers renewing its sponsorship of Team through NGO collaboration, multi- and rolling out 100% recyclable GB at the next Invictus Games. stakeholder initiative representation packaging across six of its and monitoring for improvement. brands’ e-commerce websites. • Endura established its 1 Million Trees initiative – a pledge to • The business hosted a Global plant one million trees each year Inclusion Week, celebrating what in a bid to make a difference to it means to be a diverse business global warming. and starting the conversation about how we can do more in this area. 12 Pentland Brands Limited Collaborating and connecting • Pentland Brands set up a Sustainability Steering committee and working group to drive sustainability initiatives across the business. • It continued to collaborate with its charity partners, working towards its goals of inspiring 5,000 young people across the UK to get involved in sport and empowering 10,000 women in disadvantaged communities by 2021.