Corporate responsibility review 2012/13 Wm Morrison Supermarkets PLC More of what matters Overview Corporate responsibility review 2012/13 Brief introduction to Morrisons Food is at the heart of Morrisons history 1899 Stall opens in Bradford 2006 Safeway conversion Market programme complete what we do and we are 1958 First town centre shop 2007 Morrisons moves to opens in Bradford a new Head Office passionate about it. 1961 First supermarket 2008 Smaller format store opens in Bradford is launched in Scotland Perhaps not surprising 1967 Morrisons becomes 2009 Morrisons opens Farm a public company at Dumfries House 1976 Morrisons opens 2011 First convenience for a food retailer, produce depot, store launched Cutler Heights 2011 Morrisons acquires but what is unusual 1977 Takeover of Whelan FlowerWorld Discount stores 2011 Morrisons acquires 1980 Morrisons opens online retailer is the way our business Farmers Boy Kiddicare 1988 Morrisons opens 2011 Morrisons opens is structured. distribution centre Bridgwater distribution at Wakefield centre 1998 Morrisons opens 2012 Morrisons opens distribution centre, Grimsby seafood Our 2012/13 Year Gadbrook Park manufacturing site 1999 100th store opens 2012 Morrisons acquires Turnover in centenary year meat manufacturing bn 2000 First store opens site, Winsford £18.1 in Wales 2012 Morrisons launches 2001 Morrisons joins online with Morrisons Cellar Profit before tax FTSE 100 m 2004 First store opens 2013 Morrisons joins forces £879 in Scotland with online retailer 2004 Safeway becomes part Lakeland of the Morrisons family 2013 Morrisons acquires Corporation m 2005 Morrisons acquires Blockbuster and tax paid £243 Rathbone’s bakery HMV stores to operation expand convenience 2005 Morrisons acquires (post 2012/13 Year) Like-for-like sales % and expands abattoir 53 week vs 53 week basis (2.1 ) in Turriff Stores Where possible we source locally, buy direct 498 and manufacture at our own sites. We distribute Colleagues to stores through our own network. This gives us close control over provenance, freshness 129,000 and reduces waste, which means we can offer Customers m fantastic food at affordable prices. each week 11 Over the 2012/13 financial year, we opened 17 new stores, nine convenience stores, invested See our Facebook in two new manufacturing sites and launched Visit – facebook.com/Morrisons online. We remain the UK’s fourth largest See our Twitter supermarket by retail sales as well as the second Visit – twitter.com/Morrisons largest fresh food manufacturer. We pride ourselves Cover image Alison Cowan, fishmonger, Retford. Winner of our 2012 internal craft skills on the quality of the fresh food we prepare in store competition ‘Mastercraft’. Morrisons has over 1,000 academy trained fishmongers and more craft trained people than any other UK food retailer. and serve over 11 million customers each week. Overview Friendly people Making great food Affordable What’s in our Review For everyone Governance Scope of the Review Contents Introduction to Morrisons 1 What’s in our Review 2 Chief Executive’s statement 3 Responsible retailing 4 Our business model 6 Highlights in 2012/13 Friendly people 8 Introduction 10 Recruitment 10 Developing talent 14 Sharing our skills 14 Employer of choice Steven Butts 16 Retirement Saver Corporate Responsibility 16 Equality and diversity policy 16 Ethics and conduct This is Morrisons seventh Corporate Responsibility Review. 17 Health and safety It reports on the progress from our financial year (53 weeks ended 3 February 2013) unless otherwise stated. Making great food Our corporate responsibility programme ensures we operate 18 Introduction in a way that is right for our customers, colleagues and suppliers, 18 The Morrisons farming programme whilst making a positive contribution to society and taking good 20 2012 British farm sourcing care of the environment. 23 Developing and promoting sustainable food supply 24 Environmental sustainability This document is divided into four sections: ‘friendly people’, 25 Food supply sustainability and security ‘making great food’, ‘affordable’, ‘for everyone’. Each section details 26 Buying the right ingredients our progress on key material issues for the business including 31 End-to-end product quality and supplier assurance updates on commitments, KPIs and future plans. It doesn’t cover all 33 Healthy choices the work we do, but gives an overview of our key activity. Affordable If you would like to comment on our corporate responsibility 36 Introduction programme, the Review itself or any of the issues we highlight 36 M savers please drop us a line at [email protected] 39 Avoiding food waste 43 Packaging This Review should be read in conjunction with our annual report 43 Customer recycling and financial statements 2012/13 which can also be found online. 44 Carrier bags 45 Reducing operational carbon emissions See our Review 50 Logistics Visit – morrisons.co.uk/cr For everyone See our Annual report and financial statements Visit – morrisons.co.uk/corporate/ar2013 52 Introduction 52 More of what matters locally 55 Let’s Grow 59 Save the Children Governance 62 About our corporate responsibility programme 63 Board of Directors, Management Board and Corporate Compliance and Responsibility Committee 64 Stakeholder engagement 66 Independent Assurance Statement 68 Commitments and associated KPIs 1 Overview Corporate responsibility review 2012/13 Chief Executive’s statement Friendly people making great food affordable for everyone Dalton Philips Chief Executive In our stores, we’re bringing our passion for ‘great food’ to life. In one of the toughest trading years Across our estate, we’re highlighting our fresh credentials with in a generation, we made good the roll out of our Fresh Formats concept. We’ve expanded and enhanced our fresh range and opened up more of our counters to progress in driving our corporate showcase our craft skills, offering customers a different, engaging shopping experience, with more Morrisons Academy trained skilled responsibility agenda. This Review craft specialists. shares the highlights and reports We’ve also improved our range across the rest of the store, against our commitments, as we build introducing NuMe which gives customers a greater choice of healthier pre-prepared products, without compromising on taste our business around more of what or price. We’ve gone out into communities to talk to customers matters: ‘friendly people making about our new healthy alternatives, providing information and free health checks as an incentive to make the switch. great food affordable for everyone’. In this challenging economic climate, it’s even more important Great shopkeeping starts with ‘friendly people’ delivering fantastic to us that we offer customers great food that’s ‘affordable’. customer service. The investments we’ve made for our colleagues Our unique business model, focused on buying, making and in training, skills development and support in the workplace moving a high proportion of the products we sell, is central to were recognised by a range of external awards, from The Grocer’s reducing both our costs and waste. Despite business growth, Employer of the Year Award for the third year in a row, to our we’ve successfully lowered our carbon emissions for another National Award for Excellence for Talent & Skills from Business year and remain on track for our 2020 target. in the Community. High quality, affordable fresh food prepared with skill and care As a food focused retailer, we pride ourselves on ‘making great is something that we want to be available ‘for everyone’. It’s more food’. The end of our financial year coincided with the discovery than just selling food in our stores; it means sharing our skills of horsemeat contamination in the European food supply chain. and passion with the wider community. Our established ‘Let’s Whilst we received a lot of positive coverage for our clean bill of Grow’ programme continues to educate and stimulate young health, it’s essential that we remain vigilant and that customers can people in growing and eating fresh food. We’re delighted that continue to trust the quality and provenance of the food they buy. it received a ‘Big Tick’ and was highly commended in the National Business in the Community Awards. The educational benefit We’ve reinforced our commitment to ‘making’ even more of the it provides, as well as the interest it encourages in fresh food, food we sell, maintaining direct relationships with our primary is very important to us. suppliers, and supporting responsible sourcing. Over the past year, we introduced new meat packing and seafood processing Last year I wrote that we are proud of what makes us different. facilities and started expanding our Colne abattoir and Wakefield This year we will be making that a central and more visible part bakery sites. of our communication. With our customers and our stakeholders, we will be sharing more of what matters. Fresh British sourced food remains a priority for us, with our annual farming conference providing the ideal forum to work in partnership with our suppliers to ‘Keep Britain Farming’. We’re also actively encouraging responsible fishing, both at home and abroad, to ensure the integrity of our sourcing practices is as high as the quality of the seafood we sell. 2 Overview Friendly people Making great food Affordable For everyone Responsible retailing Governance Food with thought Martyn Jones Group Corporate Services Director During the year we addressed issues such as how we structure and We have again had our Review communicate our commitments. We looked at key performance independently assured by Two measures, strengthening the governance of our programme through our Management Board and Corporate Compliance and Tomorrows in accordance with Responsibility Committee and better integration with our wider AA1000AS (2008). The Independent corporate communication. Assurance Statement commenting Essentially our programme remains very much on track. For clarity, we have summarised our commitments and specific key performance on the report and elements of our indicators at the end of the Review in the same format as previous years.