1 J Sainsbury plc Values update 2019/20 Sainsbury’s Sustainability Update 2019/20 2 Welcome J Sainsbury plc Sustainability Update 2019/20 Welcome Helping customers live well for less has been at the heart of what we do for 150 years, since John James and Mary Ann Sainsbury opened Contents the doors of our first shop in Drury Lane in 1869. Welcome. 2 We employ 172,000 colleagues who work hard A message from our Chief Executive Officer ..............3 every day to make our customers’ lives easier Our 2020 Sustainability Plan ............................4 and provide them with great products, quality and service. Our priorities ...........................................6 Our customers care about wide-ranging, Our values make us different. .8 complex issues that impact them and our A message from our Director of Sainsbury’s Brand ......19 wider world. They trust us to be a responsible business, whether that’s by supporting the Sustainable Development Goals. .20 communities we serve and source from, Governance ...........................................21 managing our environmental impacts or contributing to a healthier, more inclusive Performance scorecard ................................23 society. Our values underpin everything we do as a business and help us strengthen relationships with all our stakeholders. They enable us to build trust, reduce operating costs, mitigate risks and attract and retain talent. This is an update on progress against our Sustainability Plan, which is structured around our values. Find out more at www.about.sainsburys.co.uk/ making-a-difference 3 A message from our Chief Executive Officer J Sainsbury plc Sustainability Update 2019/20 Driving lasting, positive change On conclusion of our 2020 I’m proud to say that our focus on giving per cent against our 2005 baseline, having Sustainability Plan and customers high quality food at good value achieved our 2020 reduction target a year remains as true today as it was over 150 ahead of schedule and announced an announcement of our bold new years ago when we opened our doors on industry-leading target to halve our use of Net Zero by 2040 ambition, Drury Lane. In that time, we’ve remained plastic packaging by 2025. Chief Executive Officer Mike true to our values, allowing us to drive lasting, positive change in the communities We continue to make progress on our Coupe reflects on our values, ambition to be the most inclusive retailer which have been our guiding we serve and source from. The scale of our business means we can make an important where people love to work and shop. From framework for sustainability contribution to sustainable development in setting corporate objectives to increase over the past decade. the UK and internationally. female and Black, Asian and Minority Ethnic colleagues in senior roles, to becoming This year we announced our bold new signatories of the Social Mobility and Time 172,000 sustainability plan - to become Net Zero to Change pledges, we continue to strive colleagues across our own operations by 2040 and we to be a great place to work. This year we have committed to investing £1 billion over also updated our Human Rights policy, the next twenty years to achieve this. We we recognise our customers want to be 87+ will use the £1 billion investment to support confident that we source with integrity and countries we source our own-brand seven commitments that focus on reducing that the people in our supply chains who products from carbon emissions, food waste, plastic make, grow or sell our products are treated packaging, water usage and increasing fairly and their human rights respected. recycling, biodiversity and healthy & sustainable diets. We will report on our This past year also saw the celebration of 28 million+ our milestone 150th Birthday. We wanted customer transactions every week progress every six months using science- based targets,working with the Carbon to mark the anniversary by making a Trust and the CDP. positive difference in our communities, so we gave all our colleagues the opportunity Our values and sustainability activities to volunteer during work time for a local protect our brands so that customers, charity or community initiative. In total over suppliers and stakeholders continue to 35,000 colleagues pledged to volunteer, with trust us. As I look back at my time with over 2,400 community projects carried out, Sainsbury’s, we have made tremendous 19 per cent of these being environmentally- progress in sustainability and you’ll find based projects. To support our customers many examples of our achievements to live healthier lives, we have invested over and current activities across our five £187 million into Active Kids to date and values, detailed in this report. Having this year ran 70 Active Kids holiday clubs respect for our environment is one of which had 23,000 children attending during our core values and this year we cut the summer months. Along with our long- our absolute carbon emissions by 42 standing charity partnerships, this reflects how we sit at the heart of our communities and play a broader role in society overall. As we look to the future, we know that climate change is at the top of our colleagues’ and our customers’ minds, therefore it’s time to push ourselves further, with our new commitments, so that we can help everyone live well today and into the future. Mike Coupe Chief Executive Officer 4 Our 2020 Sustainability Plan J Sainsbury plc Sustainability Update 2019/20 Our 2020 Sustainability Plan Delivering on our 2020 Highlights commitments of our 2020 Our purpose is to help our customers live commitments well for less, now and in the future and to help them get the most out of life, no matter how much money or time they have. Our customers care about wide-ranging, complex issues that impact them and our wider world and they expect us to be a responsible, sustainable business, whether that’s by supporting the communities we serve and source from, managing our environmental impact or contributing to a Making a positive healthier and more inclusive society. Living healthier lives difference to our To this end, in January 2020 we announced our new commitment to invest £1 billion community over 20 years to become Net Zero across our Offering customers nutritious and healthy Generating positive impact in the own operations by no later than 2040. food and encouraging active lifestyles communities we serve and source from, When we launched our 2020 Sustainability We committed that our customers could locally and globally Plan in 2011, we set out five clear values and always choose nutritious and healthy food We committed to support our local gave ourselves 20 deliberately stretching when they shop with us and that we would communities in relevant and impactful commitments which gave us a clear focus to encourage kids to live a healthy, balanced ways and donate over £400 million to formalise our activities. lifestyle. charitable causes by 2020. Our five values were to help our customers, colleagues and suppliers to live healthier lives; make a positive difference to our communities; source with integrity; have respect for our environment; and create 22% £359 million¹ a great place to work for our colleagues. red traffic light labels on our own-brand cumulative charitable investment generated In 2015, approaching the halfway point products (2020 target: 21 per cent) across our programmes (2020 target: £400 of our 2020 timescale and following the million) launch of our 2014 business strategy, we took the opportunity to review our 2020 £187 million Sustainability Plan. total investment in our Active Kids scheme Through our customers and colleagues, we As a result, we updated our commitments, (2020 target: £200 million) have generated over £359 million to make a removing those which were no longer positive difference to the communities we relevant and adding challenging new ones serve. In addition, we supported over 35,000 to have the most positive impact. This gave We are continuing to reduce the percentage of our colleagues who pledged to work with us a refreshed focus as we moved forward charities and community groups across the to 2020. of red traffic labels on own-brand products and reformulate to reduce salt, sugar, UK through our 150 Days of Community Our 2020 Sustainability Plan has been our fat and saturated fat in order to help our programme to celebrate our Company’s guide for building a sustainable future, customers eat and live well. 150th birthday. ensuring we focused our efforts to make the greatest difference and we are proud We are also supporting customers with of what we have achieved over the past food allergies and intolerances by creating decade. We have learnt a lot in the process personalised allergen profiles online via food and taken lessons from where we have hit search platform FoodMaestro. our targets and where we have not. We continue to invest in our Active Kids This helped to inform how we can make a scheme and launched summer holiday greater impact moving forward and where clubs to offer activities to kids of all abilities we need to collaborate with industry and during the long summer break. partners to contribute to tackling some of the big challenges such as climate change. ¹ Includes funds raised for good causes from corporate donations, carrier bags, colleague and customer fundraising and charity partnerships. 5 Our 2020 Sustainability Plan J Sainsbury plc Sustainability Update 2019/20 Sourcing with Respect for our Great place integrity environment to work Building resilient supply chains by sourcing Reducing emissions, water use and waste Being an inclusive employer where products ethically and sustainably. across our value chain colleagues love to work We committed to sourcing our key raw We committed to reduce our operational We committed to being an employer where materials sustainably to an independent food waste and to work with our customers colleagues love to work and to having standard and that our own-brand fish would to help them reduce theirs, putting both an inclusive workforce which offers good be independently certified as sustainable.