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GOOD BUSINESS JOURNEY

This paper is made with 90% sugar cane waste sourced from previously
disadvantaged local suppliers, and 10% wood fibre from sustainable
forests. It supports our Good business journey goals of protecting the
environment and empowering our people.

THEGOODBUSINESSJOURNEYREPORT2010

CHAIRMANSSTATEMENT

In2007weconsolidatedandacceleratedourprevioussustainabilityeffortsunderourgoodbusinessjourney
programmewhichbroughttogetherourphilosophythatthetruesustainabilityofacompanyisreliantonitsown
continuousperformanceandasustainablesocietyandenvironment.Wefurtherbelievethatalltheelementsof
economicgrowth,transformation,socialdevelopment,theenvironmentandclimatechange,caneitherforma
viciousorvirtuouscircle.TheGoodbusinessjourneyaimstoensurewedriveavirtuouscirclethatwillbenefitall
ofourstakeholders.
Thebusinesscase
WeconsidertheGoodbusinessjourneyasakeytoenhancingourbrandwhilebeingcognizantoftheimpactsof
ourbusinessonsocietyandtheenvironment.Wehaverealisedoverthepastfewyearsthatourfocusonsocial
andenvironmentalissuescandriveinnovationandoperationalefficienciesinourbusiness.
Ourcustomerresearchshowsgrowingawarenessoftheprogramme,andhighlevelsofsupportforitsobjectives.
Inparticular,customersincreasinglywanttounderstandwhereproductscomefrom,andbecertainthatthese
aresourcedethicallyandwithoutharmtotheenvironment.Werecognisethatourcustomersplayanimportant
roleinhelpingusmakeadifferencetoourcommunitiesandenvironmentandwearecommittedtoproviding
themwithasmuchinformationandassistanceaspossible.
Internally,sustainabilityisoneofoursevenvalues,andwemeasureemployeeunderstandingandbackingforour
goodbusinessjourneyprogrammethroughourannualpeoplesurvey,whichhasshownhighlevelsofsupport.
Somethingwecannotmeasurehowever,istheinnovationandenthusiasmofemployeesacrosstheorganization
inintegratingsustainabilitythinkingintotheirdailyjobs,andbringingnewprojectstolifethathavechangedthe
wayweoperateasanorganisation.
Wearecontinuingtoworktobuildouremployeesknowledgearoundsustainabilitytoenablethemtohelp
colleaguesandcustomersunderstandtheirimpactsanddrivetheGoodbusinessjourneymessagesinthe
workplaceandathome.Anexampleofthishasbeenanenergysavingcampaignacrossthebusiness,whichhas
helpedemployeesreduceenergyusageinstoresandintheirhomes.
Experiencehasshownthatmostsustainabilitychallengescannotbesolvedbyonecompanyactingalone,andwe
areexcitedaboutthesupportwehavereceivedfromoursuppliersinimplementingprogrammeslikefarmingfor
thefuture,andthemanythingswehavelearntfromtheirefforts.Wevealsoseenbusinessrelationshipswith
companieslikeABSAandEngendevelopintoexpansionsofoursocialandenvironmentalinitiativeswiththe
expandedEduplantprogrammeandrecyclingatEngenservicestationstwoclearexamples.
Progressandchallenges
Wearepleasedwiththerecognitionthatwehavereceivedfromanumberofourstakeholdergroupsandwewill
workhardtosustaintheseefforts.Inparticular,beingchosenasafinalistforthethirdconsecutiveyearfor
internationalresponsibleretaileroftheyearandbeingrankedsecondintheCarbonDisclosureProjectLeadership
indexinSouthAfricareinforcesourconsistencyandsustainabilityprogress.
Someofourhighlightsfortheyearincludethelaunchofourfarmingforthefutureprogrammethatisimproving
soilandwaterresourcesacrossourproduceagriculturalbase;asuccessfulpilotofcustomerrecyclingfacilitiesat
Engenservicestations;asignificantimprovementinourBEEscoreandshiftfromlevel6tolevel5;andthe
expansionofourEduplantprogrammeinconjunctionwithABSAandEngen.

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THEGOODBUSINESSJOURNEYREPORT2010

Wehavecontinuedtoreducewateruse,aswellasdevelopinganumberofprogrammestomeasureandreduce
waterusageandimprovewastewatermanagementinoursupplychain.Wealsocontinuetooffsetallourdirect
waterusagethroughWWFswaterneutralprogramme.
Energyusagehasdecreasedby18%fromour2004benchmark,andwehavesuccessfullyrolledoutnewlighting
andenergymeasurementtechnologies,aswellasretrofittingrefrigerationtechnologiesandreviewing
distributionmethodstomeetour30%relativereductiontargetfor2012.
Wehavereducedourfoodspackagingby660tonstodate,aswellasincreasingtheamountofpackagingthatis
recyclable,andoursalesofreusablebags.Ourwastetolandfillratiocontinuestoapproachthetargetofzerowe
havesetfor2012.
DuringtheyearwecontributedR314mtoarangeofcharityorganisationsaspartofourcommitmentto
communityupliftment.Ourcommunityfocushasbeenonaddressingtwoofourcountryskeychallengesfood
securityandeducationviaourEduplantandMySchoolprogrammesandthedistributionofsurplusfood.
Wehaveexperienceddifficultywithachievingsomeofourtargets,forinstance,salesoforganicproducts,our
preferentialprocurementtargetsandprogressonpackagingreductions,whichweneedtobalancewithkeeping
foodwasteduetodamagelow.ThecontinuingdifficultiesinthetextileindustryinSouthAfricaareanotherarea
ofconcerntous.Weareconfidentthatwearemakinggoodprogressbutalsonotetheareasrequiringattention,
particularlysomeofourenvironmentalandtransformationtargets.
Goodbusinessjourneymeasurementandgovernance
Atacorporatelevel,wearesatisfiedwiththeprogressthebusinesshasmadeouroverallscorefor2010against
ouroneyeartargetsis84%(midyear:76%),thefirsttimethatwehaveachievedover80%.Thescoreof71%
againstourfiveyearobjectives(midyear:63%)ispleasing,althoughweknowthatweneedtoaccelerateour
progresstomeetthe2012targets.Ourcomprehensivemeasurementandtrackingsystemiswellembeddedin
thebusinessandprogressmeasurementsaredonetwiceperannum.Thesescoresreflectourprogressasan
organisationtowardsthestatedtargets,atbothacorporateandkeyindicatorlevel(i.e.transformation,
economic,governance,socialandenvironmental).Wealsotrackprogressbybusinessunitsagainsteachofthe
indicators,andhaveincludedgoodbusinessjourneyperformancemeasuresinthescorecardsofourteams.
Anassuranceframeworkisinplaceandaninternalauditcoverageplanhasbeencompletedforthegoodbusiness
journeyinareaswhereexternalverificationisnotavailable.ExternalverificationofourcarbonfootprintandBEE
statuswasalsocompletedasasteptowardsabroaderassuranceprocess.
Thegoodbusinessjourneyprocessisalsointegratedstronglyintothecompanysriskmodel,andagoodbusiness
journeyriskprofileisreviewedannuallybytheSustainabilityCommittee,whichplaysanimportantoversightrole
inensuringstructuresandpoliciesareinplacetoalloweffectivedeliveryofourgoodbusinessjourneytargetsby
management.
Lookingforward
Althoughwerecognisethebroadnatureofourgoodbusinessjourneyprogramme(over200targetsset)isa
strength,wewillhoneinonafewfocusareas:
Reductioninenergyusage,withinthebroaderclimatechangecontext;improvingthebroaderimpactofour
supplychainactivitiesonwaterresources;recyclabilityofpackagingandtheprovisionofrecyclingfacilities;
workingwithoursupplierstopromotesustainablefarmingmethods,thatencouragebiodiversity;andbuilding
ourworkforceandsupplychaintorepresentthetransformationimperativesinourcountry.

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THEGOODBUSINESSJOURNEYREPORT2010

Wehavelearntmuchaboutissuesthataffecttheenvironmentandsocietysinceweannouncedourgood
businessjourneyprogrammeinApril2007,andcontinuetolearnmoreeveryday,asmoreandmoreinformation
ontheissuesbecomeavailable.
Wealwaysthoughtofour2012targetsasthefirststepinamuchlongerjourney,andhavebeenworkinghardto
refineourfocusareas,andaddnewtargetstoourprogramme.

HIGHLIGHTSANDRECOGNITION

KEYSUSTAINABILITYINDICATORS

Indicator

2010

2009

2008

Revenue

R23.7bn

R21.9bn

R21.8bn

Returnonequity(ROE)

39.4%

26.3%

27.6%

AdjustedHeadlineEarningspershare(EPS)

157.2

126.0

115

Sharepriceappreciation

1225

275

(1120)

Foodmarketshare

8.3%

8.5%

9.2%

Clothing,footwearandaccessoriesmarketshare 15.3%

14.4%

15.3%

Goodbusinessjourneyindexoverallscore

84%

79%

77%

CustomertrackingstudyregardingGood
businessjourneyelements

26%

24.9%

21%

Numberofpermanentemployees

18977

17551

18568

Trainingandskillsdevelopmentscore(outof15) 10.3

7.7

10.5

Employmentequityscore(outof15)

10.6

9.8

9.8

Preferentialprocurementscore(outof20)

10.4

5.7

2.4

Corporatesocialinvestmentcontribution(Rm)

R314m

R292m

R267m

Energy(reductioninrelativeconsumptionfrom 18%
benchmark)

12%

10%

Carbonfootprint(totaltonsofCO2)

408627

356133

11.5%

5%

452311

Water(reductioninrelativeconsumptionfrom 26%

Progress

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THEGOODBUSINESSJOURNEYREPORT2010

benchmark)

(stores)

Healthandsafetynumberofinjuriesonduty 693

551

511

Foodspackagingreduction(towards20%
reductionby2012)

6.6%

3.3%

Benchmar
kyear

InclusioninJSESRIindex

BUSINESSRECOGNITION

Woolworthswasrankedsecondoutofthetop100companiesinSouthAfricaontheClimateChangeDisclosure

LeadershipIndexbytheCarbonDisclosureProject,aglobalinitiativetoencouragecompaniestodisclosetheir
greenhousegasemissions.(Firstinthelowimpactcategoryin2008).
WinneroftheretailcategoryintheSouthAfricanCarbonLeadershipAwards2010.
FinalistintheAgriculturecategoryforthe2010MailandGuardianGreeningtheFutureawardsforour
FarmingfortheFutureprogramme.
WoolworthswaschosenasafinalistintheESGcategoryatthe6thannualAfricanAccessNationalBusiness
Awards2010.
Woolworthswaschosenasafinalistinthe2010SANEAEnergyawardsintheCategory:EnergyProjectAward
2010.
In2008WoolworthswasnamedInternationalResponsibleRetaileroftheYearattheWorldRetailCongress.In
2009and2010wewereshortlistedagainasoneofthefinalistsforthisprestigiousaward.
WoolworthswasagainincludedintheJSESociallyresponsibleinvestment(SRI)indexfor2009/10andwas
namedasoneoftheindexbestperformers.
WoolworthsClothingfirstasthemostfashionableclothingretailerTheSundayTimesTopBrandssurvey,
WoolworthsFoodwastheoverallwinnerandWoolworthsClothingclaimedfourthplaceinthe2009AskAfrika
OrangeIndexserviceexcellenceawards.Thissurveyiswidelyregardedasthelargestserviceexcellence
benchmarkinSouthAfrica.
WoolworthsTastemagazinewonGoldforcustommagazineoftheyearintheAdmagawards
WHLAnnualreportfortheyearendedJune2009hasonceagainbeenratedasExcellentintheE&YExcellence
inCorporateReportingawards

STAKEHOLDERENGAGEMENT

Stakeholderengagementisintegraltothewaywedobusiness,andunderstandingtheinterestsandexpectations
ofourstakeholdersplaysacrucialroleindeepeningandextendingourrelationships.
WoolworthsstrivestobeSouthAfricasleadingretailbrand,offeringmerchandisethatisremarkablyaffordable
withauniquecombinationofquality,value,innovationandstyle.Woolworthscustomersareattheheartofthe
retailstrategythatdrivesallmerchandisingandsellingdecisions.
Understandingcustomerneedsiscriticaltoprovidingtherightproductattherighttimeinthespecificstore
wherecustomersexpecttofindwhattheyarelookingfor.Woolworthshasover3.8millioncustomers,andthe
insightsfromourcustomersenrichoursegmentationmodelanddrivenewopportunities.Duringtheyear

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THEGOODBUSINESSJOURNEYREPORT2010

customershavegivenusinsightintotheirperceptionofourvalueofferingandpromotions,assistingour
segmentationstrategy.
Woolworthsiscommittedtomeetingcustomersneedsateverylevelandwemonitorcustomersatisfaction
throughoutthebusinessusingvariousmechanisms.
Improvedcustomerunderstandinghasledtobetterprofilingandcataloguingofstores,withanincreasingly
segmentedoffer.Workisalsobeingdonetodriveasubbrandreviewtomakeeachbrandsimpler,clearerand
bettersegmented.
Wewillbeintroducingatieredloyaltyprogramme,whichwillbedesignedto:
Buildmoreprofitablelongtermrelationshipswithmoreofourcustomers
Rewardandretainourloyalcustomers.

Employeeunderstandingandbackingforourgoodbusinessjourneyprogrammeismeasuredthroughourannual
peoplesurvey,whichhasshownhighlevelsofsupport.Somethingwecannotmeasurehowever,istheinnovation
andenthusiasmofemployeesacrossthebusinessinintegratingsustainabilitythinkingintotheirdailyjobs,and
bringingnewprojectstolifethathavechangedthewayweoperate.
Wecontinuetobuildouremployeesknowledgearoundsustainabilitytoenablethemtohelpcolleaguesand
customersunderstandtheirimpactsanddrivetheGoodbusinessjourneymessagesintheworkplaceandat
home.
Maintainingandgrowingourcredibilityamongshareholdersandthebroaderinvestmentcommunityisakey
objective.Thisisdonebyprovidingrelevant,timeousandtransparentcommunicationusingavarietyofdifferent
mediatoallowfarreachingaccesstoinformation,ensuringallourshareholdersenjoyathoroughunderstanding
ofourperformanceandstrategygoingforward.Wehavemadeparticulareffortoverthelastfinancialyearto
engagewith,andupdateinvestorswhoarefocusedonEnvironment,socialandgovernanceissues,onour
progress.
RaisingtheprofileofthekeysustainabilityissuesinSouthAfricaisanintegralpartofWoolworthscommitmentto
theGoodbusinessjourney.Woolworthsongoingengagementwiththemediahasbeenanimportantaspectof
managingthecompanyscorporatereputationaswellasraisingawarenessofkeysustainabilityissues.
Experiencehasshownthatmostsustainabilitychallengescannotbesolvedbyonecompanyactingalone,andwe
areexcitedaboutthesupportwehavereceivedfromoursuppliersandspecialistnonprofitorganisationsin
implementingprogrammeslikefarmingforthefuture,andthemanythingswehavelearntfromtheirefforts.
Thesesustainabilityinitiativeshavebeenanaturalextensionofthelongstandingpartnershipswesharewithour
suppliers,andhaveallowedustoformulateunique,andoftenfarmspecific,responsestobiodiversity,
transformationandotherobjectives.
Woolworthsoperatesatightlyintegratednetworkofsuppliers,toensureexactingqualitystandardsandforms
longlastingrelationshipswithitssuppliers.ConformancetotheWoolworthssuppliercodeofbusinessprinciples
isaprerequisitetoensuresocialandenvironmentalresponsibilityacrossthesupplychain.
Woolworthsalsopartnerswithabroadrangeofnonprofitorganisationsacrossarangeofenvironmental,social
andtransformationissues.ThisincludestheWorldwideFundforNature(WWF),ConservationInternational,Food
&TreesforAfricaandHeartbeat,amongstothers.
Thefollowingspreadillustratesourstakeholderengagementprogrammeinmoredetail:

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stakeholderengagementwhatweredoing

Ourstakeholders

Whyweengage

Issuesonwhichweengage
include:

Customers

Inorderto:

consumerpreferences;

understandourcustomer
needs;

consumercomplaintsand
issues;and

enhancetheWoolworths
brand;and
growrevenue.

Howweengage

Ourresponse

Electronicandpersonal
engagementwith

ongoingproductdevelopment
andinnovation;

businessfocusonkeyissues,for
exampleavailability,product
theGoodbusinessjourney. instoreticketing,labellingand
choice,storelocationandservice;
packaging
and
focusgroupsanddiscussions;
adoptingmethodsof
deskresearch;
communicationtomeetcustomer
customersurveys,mystery
preferences.
shoppingsurveys;

customersincluding:

socialmedia
marketingcommunication,
advertisinganddirectcustomer
mail;and
Woolworthscallcentres.
Employeesandserviceproviders:

Inorderto:

individuals;
collective;

sharerelevantinformation
andgetinputandfeedback;

independentcontractors;and

attractandretaintalent;

serviceproviders.

developahighperformance
organisation;

improvecompetenceand
skills;

Woolworthsvisionand
values;
businessstrategy;
businessissues,
developmentsandnew

ongoingdirectandindirect
Ongoingreviewof:
engagementelectronic,verbal employeehealthandsafety
andwritten;
programmes,forexample,
research/peoplesurvey;
HIV/Aidsprogrammes;

communicationandinvolvementemployeedevelopment,
remunerationandbenefits;
productsandcampaignsthat forums;and
affectemployees;
regular,formalcommunication, communicationandits
includingtelevisionbroadcasts,
effectiveness;and
employeedevelopment
publicationsandteammeetings.
programmes;and
relevantbusinessissues,for

optimisedeliveryandservice;
employeeconcernsand
and
issues.
enhancepeoplessenseof

exampleshrinkage

valueandcommitment.

Shareholders:

Tocreate:

businessperformance;

individual;and
institutional.

aninformedperceptionof
Woolworths;

businessexpectationsand
strategy;and

moreaccurateexpectations;

economic,socialand
environmentalconcerns.

apositiveinvestment
environment;
approvalforcorporate
actions.

international.

individual,documentedanalysts
meetings;and

local;and

biannualanalystsresults
review;

reporting,includingtheannual
report,sustainabilityreport,
webcamandwebsiteupdates.

valueinthebusiness;and

Suppliers:

annualgeneralmeeting/general revisedreportingformatsas
deemednecessary.
meetings;

issuesthatposearisktothe ongoingelectronicandpersonal reviewofproductoffering;and


Woolworths
productwhichfurthersthe
engagement,includingsupplier regularenvironmentalandsocial
ambitionsoftheGoodbusiness businessand/orbrand;
conferencesandsuppliervisits; responsibilityaudits.
journey;
productdevelopment;
and

Todeliver:

newandinnovativeproduct;
consistentqualityand
standards;and
conformancetoWoolworths
supplier

environmentalandsocial
responsibility

bestpracticeresearchand
internationalbenchmarking.

standards;and
theGoodbusinessjourney.

businessprinciples.

businessissues;

Franchisees:

Inorderto:

local;and

ensureaconsistentcustomer initiatives;and
experience;
opportunities.
growrevenue;and

international.

buildandextendthereachof
theWoolworthsbrand.
Governmentdepartmentsof:

Inorderto:

Tradeandindustry(dti);

discussissuesofmutual
concern;

ongoingelectronicandpersonalreviewingourprocessesfor
engagement,includingmeetings, managingthebusiness.
anannualfranchiseconference
andregularfranchisebuying
weeks.
franchiseesatisfactionsurveys.

tradeandindustrypolicyon ongoingelectronicandpersonal consolidationofcombinedretail


sector
positionsasinputtogovernment;
engagement;
development,tradeissues
sharingofinformationon

Labour;
Agriculture;
Wateraffairsandforestry
(DWAF);

optimiseopportunitiesand
minimise
risksofregulation:and

anticipateandassess
Environmentalaffairsandtourism potentialpolicyand
(Deat);
regulatoryimpact.
Health;and

andgrowth;

draftingofsubmissions;

labourmarketissues
regardingflexibility,skills,

consolidationofinformation;
participationinresearch;

minimumstandards,labour meetingswithgovernment
relations;
officialsandministers;and
foodstandardsand
Nedlac.
agriculturalissues;

businesspracticewith
government;and
revisionofprocessestobecome
compliant.

consumercreditand
protectionissues;

Education.

education;and
transformationandthe
Goodbusinessjourney.

Organisedbusiness:

Inorderto:

tradeandindustrypolicy;

BUSA;

gainsupportandleverageon
issuesof

crime;

RetailersAssociation;

ConsumerCreditAssociation;and commoninterest;and
NationalBusinessInitiative(NBI). getinsightintootherbusiness
andsector

approaches.

labourmarketregulations;
textilesandclothing
procurementpolicies;
consumercreditand
protectionregulations;
and
sustainability.

ongoingelectronicandpersonal refinementandshiftingof
positionstoaccommodate
engagement;
broaderinterests;
meetings;
participationinBusinessAgainst
negotiations;and
Crimeinitiative;
draftingandinputto
coordinationofretailinputto
documentation.
textileandclothingissues;and
participationinspecific
initiatives,forexampletheNBIs
EnergyAccord.

Unionsandcollectiveemployee
structures

Toengageoncollective
employmentissues.

including:

wagesandtermsand
conditionsofemployment
(UPNonly);

internalcommunicationsforums;
and

verificationofunion
membership;

SACCAWUandCOSATU.

retailissues;and

textilesandclothingissues.

ongoingelectronicandpersonal abetterunderstandingand
responsetoemployeeconcerns;
engagement;
and
meetings;and
revisionofremunerationand
participationinCCMA,Nedlac benefitspolicies.
andotherlabourmarket

institutions.

Media:

Inorderto:

businessissues;

business;

influencestakeholder
perceptions;

consumerissues;

consumer;and
trade.

ongoingelectronicandpersonal ongoingreviewandchallenging
engagement;
ofbusinesspractices;

improvedtransparency;and
macroeconomicissuesthat interviews;
buildtheWoolworthsbrands; affectretail;and
newsreleases;and
improvedinformationprovision.
and
productinformation.
publications,includingprinted
marketthebusinessand
materialandelectronicformaton

products.
websites.

NGOsandcommunityorganisations Tocontributetothesocietyin
whichwetrade,
including:

theGoodbusinessjourney; ongoingelectronicandpersonal ongoingmodificationsto


productstrategyandrange;
engagement;and
educationandcapacity

Food&TreesforAfrica;

buildingonrelevant

Heartbeat;

communityissues,for
examplenutrition;

AssociationofDieticians(ADSA);
SouthAfricanAssociationforFood
Science
andTechnology(SAAFoST);

HIV/Aidsawareness;and
inputtoourproduct
strategyandrange.

jointprojects.

modificationofHIV/Aids
strategy;and
greatertransparencyand
communication,forexample
labelling.

Consumerpressuregroups;
ConsumerGoodsCouncilofSA
(CGCSA);and
Environmentalorganisations
including:WWF,Conservation
InternationalandtheLandmark
Foundation.

THEGOODBUSINESSJOURNEYREPORT2010

GOVERNANCEANDECONOMIC
COMMITMENTSANDPROGRESS
Ourgovernancefocusincludesthemeasurement,governance,riskprofileandassuranceprocessaroundthe
Goodbusinessjourney,andourapproachtosustainabilityreporting.
OureconomicfocusincludesourcontributiontotheSouthAfricaneconomy,localsourcing,responsiblelending
andourstoreexpansionprogramme.
WoolworthsisaproudSouthAfricanbusinesswithalongtraditionofqualityandinnovationinSouthAfrica.
Commitment

2010

2009

By2012

Netgrowthin
corporatestores

22

31

n/a

Netgrowthin
(41)
franchisestores
Ethicsprogramme Codeapprovedbythe
Board.

Draftcodeprepared.
Ethicsbenchmark
ParticipatedinCorporate establishedin
Ethicsindicatormanaged employeesurvey
bytheEthicsInstituteof
SA

Fullimplementationand
awarenessprogrammerolled
out

GOVERNANCECOMMITMENT

Thegroupiscommittedtothehighestlevelofcorporategovernanceandtheimplementationofeffective
structures,policiesandpracticesthatimprovecorporategovernanceandcreatesustainablevalueforour
shareholdersandotherstakeholders.
Throughtheblendofdisciplineswithinthecorporategovernancedepartmenttheboardandmanagementare
supportedinembeddingbestgovernanceprinciplesandpracticesthroughoutthegroup.
Theboardisoftheopinionthatthegroupcurrentlycomplieswithallsignificantrequirementsincorporatedinthe
CodeofCorporatePracticesandConductassetoutintheKingIIReportandtheJSEListingsRequirements,andis
workingtowardsmeetingtherecommendationsofKingIII.
Thesustainabilitycommittee,aformalsubcommitteeoftheWoolworthsHoldingsboard,integratestheworkof
thetransformationcommitteeandtheoutputsoftheWoolworthsTrust,providingasinglepointofviewand
directionforallWoolworthssustainabilityfocusareas.Thecommitteeischairedbyanindependentnon
executivedirectorandmeetsquarterlytooverseeprogressinachievingallaspectsoftheGoodbusinessjourney
programme.TheChiefexecutiveofficerandManagingDirector:Foodsaremembersofthecommittee,together
withtwoindependentdirectors,oneofwhomchairsthetransformationboardcommittee.Thecommitteehas
consideredthecontentsofthisreport.
Progresstowardsmeeting2012targetsandtherelatedoneyeargoals,ismonitoredatanoperationallevel
throughthesustainabilityandtransformationintegrationcommittee,chairedbytheChiefexecutiveofficer.
Belowthis,anintegratedGoodbusinessjourneygovernancesystemisinplaceincorporatingstrategysetting,
delivery,communicationandreviewofperformanceintermsoftheprogramme.
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THEGOODBUSINESSJOURNEYREPORT2010

AcompleteboardevaluationisconductedoftheWoolworthsHoldingsboardanditssubcommitteeseverytwo
years.Areportisalsopreparedonanannualbasisforeachcommitteetoconfirmthatithascompliedwithits
termsofreference.
TheGoodbusinessjourneyindexhasbeenreviewedduringthecurrentyeartoensuretheongoingapplicabilityof
thesophisticatedweightedsystemwhichprioritisesall200plusindicatorsandprovidesascoreacrosseachpillar
oftheGoodbusinessjourney,aswellasforeachbusinessunitinachievingtheirspecifictargets.Theindexscore
isacrucialtoolindrivingchangesinbehaviourinthebusinessunitsaswellasprovidingcomparablescorecard
dataandmonitoringprogresstooneandfiveyeartargets.

PROGRESSMEASUREMENT2010

Thetotalsustainabilitymeasurementscorefor2010is84%(2009:79%).Thisshowsthatgoodprogresshasbeen
made,butthatthereareanumberofinstancesinwhichtargetsfor2010havenotbeenmet.Wehadset80%as
abenchmarkforgoodperformanceandareexcitedtoscoreabovethatbenchmarkforthefirsttimesincewe
beganmeasuringourprogress.
The2012scoreof67%(2009:61%)isbynecessitylowerthanthe2009score,becausemorestringenttargets
applyformanyofthemeasures,butshowsgoodprogressthreeyearsintothefiveyearprogramme.
Thebiggestchallengesliewithinthetransformationandenvironmentfactors.
Thescoresperfactorareshownbelow.

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THEGOODBUSINESSJOURNEYREPORT2010

INTEGRATEDSUSTAINABILITYREPORTING

Woolworthsregardsitssustainabilityreportingprocessasavaluableopportunitytoengagewithitsstakeholder
groupsandtorespondtoissuesthathavebeenraised.
Thefocusforoursustainabilityreportingistoprovidereaderswithanoverviewofthecontextforhighlightsand
challengesoftheGoodbusinessjourneyprogress,aswellasourfutureobjectives.Thissustainabilityreportisthe
successortothe2009reportandfocuseslargelyonSouthAfricanownedoperations,aswellasincluding
informationonourAustraliansubsidiary,CountryRoad,anditscorporateresponsibilityprogramme.Therehave
beennosignificantchangesinaccountingstandardsregardingsustainabilityreporting.
TherecommendationsofKingIIIandtheG3guidelinesoftheGlobalReportingInitiative(GRI)formthebasisfor
thisreportcycle,andananalysisofthegroupscompliancewiththeseguidelinesappearsintheGRIIndex.

ASSURANCE
WoolworthsinternalauditteamhasauditedselectedGoodbusinessjourneyindicatorsduring2010andwill
continuethisprocesstwiceperannum.Theindicatorsformingpartoftheprogrammehavebeenclassifiedinto
threecategories:
thosethatarealreadyexternallyverified;
thosethatcouldbeexternallyverified/audited;and
thosethatrequireinternalauditing.

ForthefinalcategorytheWoolworthsinternalauditteamhasafouryearplaninplacetocoverallindicators,
focusingontheprocessesfollowedtomeasuredataandtrackchanges.
TheinternalauditframeworkhasaddedarobustoversightmechanismtotheGoodbusinessjourney
measurementprocessandispartofaprocesstopreparethebusinessforexternalassuranceinthenextfinancial
year.
OurBEEstatushasbeenassuredbyBEEVerificationAgencyCCforthe2010financialyear.Throughtheexternal
assurancereceivedfromtheagency,wehavebeenassessedasalevel5contributor.
Wehavealsoundertakenalimitedexternalverificationofourcarbonfootprintdatainconjunctionwiththe
GlobalCarbonExchange,andtheirassurancestatementcanbefoundundercarbonfootprint.

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THEGOODBUSINESSJOURNEYREPORT2010

KEYSUSTAINABILITYRISKS
Thekeyrisksassociatedwiththeachievementofthe2012Goodbusinessjourneytargetsandrelatedmitigating
actionswerereviewedduringthecurrentyear,andareidentifiedasfollows:

ExposureHIGH
Reasonbasedonkey

metrics
TheGBJ2012and Keyshiftsinthe
sustainabilityfocusofa
beyondstrategy:
numberof
notbeingableto
internationalretailers.
maintain
sustainability
leadership
%relativereduction
Inabilityto
from2004benchmark
achieveenergy
vs.2010targetof20%
targetsand
associatedcosts energytariffincreases

Inabilitytomeet
Foodspackaging
reductionof20%
by2012and
ensuringfoods
packaging
recyclability

Retainingthe
majorityof
clothingsourcing
intheregion
reputationalrisk

Waterscarcity
andqualityissues

Actionstoaddressperformance

Areductionof600tons
ofpackagingvs.2010
targetof1000tons
Recyclingprogram
availableat8sites.

Localsourcing%target
now50%sourcingfrom

theregionin2012

Waterscarcitykeyissue
forSouthAfricaasover
90%catchments
alreadyoverallocated.
Climatechangeimpacts
cancreatefurther
pressuresataregional
level

Woolworthsispartofthewaythrougha
strategydevelopmentprocess.
Wecontinuallybenchmarklocaland
internationalretailers.

Therolloutoftechnologies(meteringonline
andautomatedlighting)hasbeenaccelerated.
Introducednewpilottechnologiesaround
refrigerationandairconditioning.
Recentlylaunchedanenergyawareness
campaigninstores.
Focusingoninclusionofrecycledcontent,
ensuringrecyclabilityofthecontainers,
makingsurerecyclingsymbolsareon
containers,andtheeducationofcustomers
aboutrecycling,
Furtherrolloutofrecyclingfacilitiesinsecond
halfof2010.
Workingwithkeylocalsupplierstoensurea
sustainablelocalvaluechaininkeylines.
IncreasingsourcingfromLesotho,Swaziland
andMauritius.

Waterneutralitycommitmentandreductions
achievedtodate.
Installingwatermetersinallstores.
Workingwithsupplierstoensuretheyare
waterefficientandmanagingwastewater
properly.

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THEGOODBUSINESSJOURNEYREPORT2010

Reasonbasedonkey
ExposureMEDIUM
metrics

2012targetsales
Inabilityto
organiccotton
achieveOrganic
2012targetsales
andfreerange
organicandfree
foodsalesand
rangefood
organicclothing
2012farmingfor
sales
thefuturetarget

2009/10targetfor
sustainablefibres
Dataintegrity:

Actionstoaddressperformance

Anumberofthe
GBJmeasureshad
notpreviouslybeen
measuredbythe

business.

LaunchedtheSAorganiccottonpipeline.
Investigatingthereplacementofconventional
cottonwithbetterorfairtradebasedcotton.
Increasingtheinclusionofothersustainablefibres
suchasbambooinproductmix.
Promotingfarmingforthefutureproduceand
earthfriendlycleaningrangeasnewproduct
innovationcommitmentsthatarefundamentally
changingourproductoffering.
TheonlineGBJmeasurementsystemhasbeen
improved.
ThefinalisationoftheMeteringonlinetechnology
hasimproveddataaroundenergyandwater.
AthreeyearauditplanforGBJisinplace,witha
viewtopreparingthebusinessforexternal
assurance.

Reasonbasedonkey
ExposureLOW
metrics



Internal financial Afocusoncost
reductionhas
constraints:
resultedinsome

GBJinitiativesnot
beingpursuedby
thebusiness.
Toensure
Exclusionstothe
consistencyand
Goodbusiness
credibilityofthe
journey
Goodbusiness
programme:
journey
Brandedproducts
programme,all
aspectsof
Woolworths
businessshouldbe
involved.

Actionstoaddressperformance

Costsavingprojectsaresubmittedtothe
investmentcommitteetosecurefunding.
Broaderbusinesscasedevelopmentforother
projectsisbeingpursuedwiththebusinessunits.

Investigatinghowtoincorporatebrandedproducts
withintheambitofthesuppliercodeanditsaudit
process,toensurealevelofconsistency.
Opportunitiestopartnerwithbrandson
sustainabilityissuestobeinvestigated.

Page|10

THEGOODBUSINESSJOURNEYREPORT2010

Competitioncommissioninquiry
Woolworthsiscommittedtofaircompetitionprinciples.
TheretailindustryinSouthAfricaandaroundtheworldisfiercelycompetitive.Weareatpainstoensurethatour
practicesdrivethebestpricesforourqualitystandards.
WoolworthswillcontinuetocooperatewiththeCommissionandawaitstheoutcomeofitsinvestigation.

VALUESANDETHICS
During2009sustainabilitybuildforabetterfuturewaslaunchedastheseventhWoolworthsvalue,
entrenchingitsimportanceintheculturalfabricoftheorganisation,andjoiningqualityandstyle,value,service,
innovation,integrityandenergyasthecompassfordecisionmakingatWoolworths.
TherevisedWoolworthscodeofethicswasalsoapprovedduring2010.
WoolworthsparticipatedinacorporateethicsresearchprogrammerunbytheEthicsInstitute.Furtherinternal
awarenessandresearchwasdoneviaastaffcultureandvaluessurveythatsetabenchmarkforethicsawareness,
againstwhichimprovementtargetshavebeenset.
Asacompanywehaveazerotolerancepolicytowardsfraud,theft,corruptionoranysimilarillegalbehaviour.
Fraudandshrinkage
Wewilltakedisciplinaryactionagainstanyemployeewhoisinvolvedin,orassistswithcommittingfraud,theft
andcorruption.Intermsofthecompanysdisciplinarycode,involvementintheseactsisadismissibleoffence.
WecontinuetopromotetheTipoffsAnonymouslinerunbyDeloitteandtherewardsforinformationwhich
leadstosuccessfulpreventionsoffraudandshrinkage.

CONTRIBUTIONTOTHESOUTHAFRICANECONOMY

WoolworthscontinuestocreatewealthacrossabroadspectrumoftheSouthAfricaneconomy,atthemost
fundamentallevelbygeneratingdirectemploymentandcareeropportunitiesforover20000peopleand
indirectly,manymorethroughourmanufacturingandprocessingnetworkaswellasassistingtobringsmallscale
suppliersintothevaluechain.
Woolworthshasdoneacountryoforiginassessmentinordertoconfirmthat95%ofthefoodthatitsellsisSouth
AfricaninoriginasignificantcontributiontotheSouthAfricaneconomy,especiallytheagriculturalsector.
Woolworthsreiteratedthecompanyscommitmenttobuyingasmuchproductlocallyaspossible.Thevast
majorityofgoodssoldinourstores,byvolume,aremanufacturedinSouthAfricaandwecontinuetoencourage
localmanufacturingwhereverpossible.
Wewillonlyconsidersourcingabroadwherelocalorregionalsupplierpartnersareunabletoprovidetheideal
quality,valueandinnovationthatourcustomersexpect.
Woolworthsisalsowellplacedtodriveenterprisedevelopmentprojectsandhassetupteamsdevotedto
workingmorecloselywithemergingsuppliers,furthersupportingSouthAfricanbusinessesfirstasacrucialpart
ofourindirecteconomiccontribution.

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THEGOODBUSINESSJOURNEYREPORT2010

Woolworthsexpansionprogrammehasmovedtoafocusonstoreextensionsandmodernisations.Weare
introducingtheconceptofasuperwooliesinFoodthroughconvertingandexpandingexistingstores,whichwill
offeracomprehensivecatalogueoffooditemsaswellashouseholdandhomebasics.
Thecurrentfootprintincludes:378stores
Woolworthscontinuestosupport160franchiseoperationsinSouthAfrica,selectedAfricancountriesandthe
MiddleEast.
AdetailedreviewoftheWoolworthsgovernancestructureandprocessescanbefoundinthegovernancesection
ofthe2010annualreport.

CaseStudyCreatingjobsanddrivingeconomicdevelopment
RecruitmentconsultantandentrepreneurCikizwaNqolobesayssheoweshersuccesstoWoolworthseffortsto
empowerblackandblackwomenentrepreneurs.
NqolobecutherteethinWoolworthsHRdepartment,andthenin2006tooktheplungetostartherown
recruitmentconsultancy.ShewasappointedasapreferredsuppliertoWoolworthsandidentifiedasoneof
Woolworthsenterprisedevelopmentprogrammebeneficiaries.
CikizwaofIndimaRecruitment,says,ItsbeenaquitearidefromGugulethutowhereIamtoday.Woolworths
hasreallybeenamazing,firstasanemployerandthenasachampionofmyentrepreneurialjourney.Woolworths
isadedicatedclient,financialsponsorandbusinessadviserallrolledintoone.Imeetwiththemonaregularbasis
todiscussIndimasprogressandplanstogrowandsustainmybusinessintothefuture.
ZinziMgolodela,WoolworthsHeadofTransformationsays,Aswedowithothercarefullyidentifiedaspiring
entrepreneurs,webeganbyhelpingNqolobedrawupacomprehensivebusinessplanthatclearlymappedher
businessgrowth.Thenwefocusedonensuringshehadthebusiness,tools,skillsandsupportnecessarytotake
offasastartupbusiness.Wecontinuetostandbyherasshegrowsherbusiness.Wereextremelyproudofhow
hardshesworkedandhowwellshesdone.
AnillustrationofhersuccessisthatoverthecourseofayearIndimagrewfrommanaging5toover20
contractorsintheITsector(75%growth).

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THEGOODBUSINESSJOURNEYREPORT2010

VALUEADDEDSTATEMENT

2010

Valueadded
Less:Costofsales
Costofservicesandotheroperating
expenses

Distributionofwealth:

toemployeesassalaries,wagesandother
benefits
togovernmentasincometax(including
deferredtax)
tolendersasfinancecosts
toshareholders
depreciationandamortisation
earningsretained

10%

23,744

15,656

2,888

5,200

2,858

2009

22,372

14,501

2,706

5,165

55.0% 2,689

%
52.1%

491
9.4% 546
10.6%
151
2.9% 281
5.4%
718
13.8% 1,399
27.1%
442
8.5% 401
7.8%
540
10.4% 151
2.9%

5,200

5,165

2010

9%

14%

55%
3%
9%

Page|13

THEGOODBUSINESSJOURNEYREPORT2010

TRANSFORMATIONANDCSI

COMMITMENTSANDPROGRESS

Commitment
2010

2009

By2012

OverallBEElevel

Level5(56.93)

Level6(46.5)

Level4(65+)

Equityownership

3.57

4.7

6.5

Managementcontrol

9.03

7.3

EmploymentEquity

10.59

9.8

11

Skillsdevelopment

10.25

7.7.

15

Preferentialprocurement

10.44

5.7

13

Enterprisedevelopment

8.05

6.3

11

Socioeconomicdevelopment

TotalCSIcontribution

R314m

R292m

R300m

Surplusproductdistributed

R283m

R262m

N/A

Educatorsbenefitingfromthe
Eduplantprogramme

8000

5000

N/A

ThetransformationpillaroftheGoodbusinessjourneyembracesthedtisbroadbasedblackeconomic
empowerment(BBBEE)scorecardframework,including:equityownership,managementcontrol,employment
equity,skillsdevelopment,preferentialprocurement,enterprisedevelopmentandsocioeconomicdevelopment.
BBBEEisoverlaidontheWoolworthsstrategytoensuremeaningfulandsustainableempowermentendeavours.
ToenabletheimplementationofBBBEE,Woolworthstookanintegratedandmultiprongedapproachtoshifting
theorganisationalculture,mainlydrivenbychangeleadershipinitiatives.
TheBoardtransformationcommitteeassiststheBoardinensuringthatthereareappropriatestrategies,policies
andprocessesinplaceinordertodrivetransformation.
BEEVerificationAgencyCCwasappointedasthecompanysverificationagencyforthe2010financialyear.
Throughtheexternalassurancereceivedfromtheagency,wehaveachieveda56.93%score,alevel5
achievement,improvingfrom46.5%inJune2009.
DetailsontheindividualsectionsoftheBEEscorecardfollowbelow.

BEEEMPLOYEESHAREOWNERSHIPSCHEME

TheBEEemployeeshareownershipschemewasestablishedinJuly2007toacceleratetransformationinitiatives
byspreadingequityownershipmorebroadlyacrossWoolworths,transferringa10%holdingtoWoolworths
employees.Theschemealsoprovidesaretentionincentivetoemployees.
Aboardoftrustees,withamajorityofemployeerepresentatives,hasbeenestablished,chairedbyDolly
Mokgatle,andthetrusteesmettwiceduringtheyearwithfullattendanceatbothmeetings.Thetrustees
exercisedthevotingrightsofthepreferencesharesatallthegeneralmeetingsheldbyWoolworths.Duringthe

Page|14

THEGOODBUSINESSJOURNEYREPORT2010

yearthetrusteesalsoheldtheirfirstImbizoforbeneficiaries,whichwaswellattendedandwhichreceivedvery
positivefeedback.
EmployeeturnoverintheretailsectorandamongstemployeesbenefitingfromtheBEEemployeeshare
ownershipschemehadadverselyaffectedtheWoolworthsownershipstatus,buthasdecreasedsignificantlyin
thelastfinancialyear.AttheendofJune2010,therewere8706beneficiariesparticipatinginthescheme.
OurBEEemployeeshareownershipschemeearnedapercentageofthedividendspaidouttoordinary
shareholdersandduringtheyearthebeneficiariesoftheschemereceivedR16.3m,anincreaseof67%onthe
previousyear.TheschemehaspaidatotalofR37.8mindividendstodate.Thefullbenefitsofthescheme
becomeduein2015.

MANAGEMENTCONTROL

Woolworthscontinuestofocusonrepresentivityofblacknonexecutivedirectorsandseniorexecutivesthrough
successionplanningandtalentmanagementprocessesandthemanagementcontrolscorehasimprovedfrom7
to9.03accordingly.

EMPLOYMENTEQUITY

DiversityofworkforceandcompliancewiththeEmploymentEquityActarecriticalforthetransformationof
Woolworths.Thisisembeddedandalignedtothebusinessstrategy,successionplanning,talentmanagement
processesandemployeeengagement.
DuringtheyearWoolworthswentthroughaDirectorGeneralreviewofemploymentequityprogresswiththe
departmentofLabour,whichhighlightedtheneedtofocusonAfricanrepresentationatseniormanagementlevel
anddisabilityrepresentation.
TherehasbeenextensiveworkdonetoensureintegratedandsustainableEmploymentEquity(EE)Act
complianceacrossthebusinessviadiversitycommitteesinallbusinessunits.
Thesecommitteesaremeeting,onaverage,onamonthlybasis.Themandateofthesecommitteeshasbeenwell
definedthroughongoingtrainingofdiversitycommitteemembers;LetsTalk!isasuccessfulengagement
methodologyatalldiversitycommitteemeetingstoensurecompliancewiththeEEAct.Someofthemajor
benefitsoftheLetsTalk!methodologyareeffectiveengagement,escalationofEEissues,drivingaccountability
andensuringatwowayfeedbackprocess.ThecontinuousimprovementofIntegratedPerformanceManagement
(IPM)hasnowseenBEEand/ortransformationincludedinindividualemployeesperformancegoals.Individual
goalscoupledwithaneffectivetrackingandmeasurementcapability,contributeinembeddingBEEasawayof
workingthatisintegraltobusinessstrategy.

SKILLSDEVELOPMENTTRAINING

Ourlearninganddevelopmentfocusisondevelopingandbuildingcompetencerelatingtoboth
leadership/managementandtechnicalorfunctionalskills.Learninganddevelopmentcontinuestobeakey
enablerforthedevelopmentofablacktalentpipelineforkeyrolesinthebusiness.

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THEGOODBUSINESSJOURNEYREPORT2010

WoolworthsdriveslearninganddevelopmentthroughtheWoolworthsAcademyframework,whichisstructured
inawaytoguideeachlearnertoundertakeapathofprogressivelearning,andincludes:
775employeesareonaccreditedlearnershipprogrammes(4%oftotalemployees),leadingtoanational

qualificationregisteredwiththeSouthAfricanQualificationsFramework.Thishasincreasedfrom366
employeesin2009;
6AccreditedSkillsprogrammesarerunningthroughSupplyChainandFoods;and
5Traineeprogrammesacrossthebusiness.

Skillsdevelopmentperformancehasimprovedagainst2009,butisstillunderperformingagainsttheWoolworths
targetfortheyear.
Totalspendonblackemployeesincreasedsignificantlyfromthelastfinancialyear.

PREFERENTIALPROCUREMENTANDENTERPRISEDEVELOPMENT

Woolworthsiscommittedtosupportingexistingsupplierstoimprovetheirempowermentcredentialsand
introducingsmall,medium,blackownedandblackwomenownedsupplierstothebusiness.
Thepreferentialprocurementscorehasimproveddramatically(5.7to10.44thisfinancialyear)duetofocused
effortsbythebusinessunitstogetholdofsuppliercredentials,wellstructuredcentralprocurementRFP
processeswhichemphasiseBEEcredentials,andsupportforsuppliersintheirownverificationprocesses.
WoolworthsEnterpriseDevelopmentstrategicaimsaretoaddressthechallengesfacingsmallblackowned
businessesbyassistingthesebusinessesinmovingfrombeingsurvivalisttobeingsustainable.Keytothisis
providingtheseenterpriseswithbusinessopportunities.
Furthermore,inlinewiththeWoolworthsstrategyofbuildinglongtermrelationshipswithitssuppliersand
partners,wefocusourEDeffortsonemergingorganisationsinourgreatersupplychain.Woolworthsenterprise
developmentstrategyrestsonfourpillars,allofwhichwebelieveareessentialtohelpanemergingentrepreneur
orsmallbusinesstogrowintoasustainableentity.
Thefourpillarsarefinancialassistance(includingshorterpaymentterms),guaranteedbusiness,apackageof
supportwhichincludesmentorship,targetedupskillingandtheassistanceofexternalexperts.Inordertobeable
todeliverthemaximumbenefittoourEDbeneficiarieswewillpartnerwithorganisationsthatcanfurther
complementourcontributions.CurrentlyWoolworthshaspartnershipswith:
OldMutualMasizaneFundandIlimaConsultants.ThisisadevelopmentinitiativesetupbyOldMutualaimed

atsupportingnationaleconomictransformationthroughenterprisedevelopment,withafocusonwomen
ownedbusinesses;capacitybuilding&skillsdevelopmentandfinancialeducation.
saiblSouthAfricanInternationalBusinessLinkages.Thisisabusinesslinkageprogrambuildingthe
competitivenessofblackenterprisesthroughimprovementsinmanagement,productivityandquality,anduse
ofmoderntechnology,andlinkingthemtodomesticandinternationalmarketsinsustainablebusiness
relationships.
Variousindependentconsultants.

Inthecurrentyearwehaveassisted32(2009:25)blackownedcompaniessupplyingproductsandservicesto
variousbusinessunits.
WeseeourEDstrategyasaninvestmentinthefutureofourbusinesssupplychain,thewidereconomyandthe
societyinwhichweoperate.
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THEGOODBUSINESSJOURNEYREPORT2010

CaseStudyClothingbank
TheClothingBankwasestablishedbytwolikemindedandaccomplishedwomenin2009.TraceyGilmoreand
TraceyChambersshareapassionformakingarealandmeaningfuldifferencetothelivesofimpoverishedwomen
withinSouthAfrica,anditwasthiscommitmentthatdrovethemtoestablishTheClothingBankcreatinga
seamlesssupplychainbeentheretailindustryanddisadvantagedcommunities.
TheannualclothingexcessintheSouthAfricanretailindustryisestimatedatavalueofR200R900million.These
excesses,whicharenormalintheretailindustry,couldbeusedefficientlytobenefitNPOs,disadvantaged
communitiesandtheirpeople.

OnceintroducedtoTheClothingBank,Woolworthsimmediatelyunderstoodthevaluethatitcouldbringby
supportingthesesocialentrepreneurs(currentlyover60womenareinvolvedintheprogramme).Woolworths
donatedR5millioninclothingforthefirstyear(2010).WoolworthsiscommittedtohelpingTheClothingBank,
andisdoingsothroughitsdedicatedEnterpriseDevelopmentdivision.

HowtheClothingBankoperates
TheclothingcollectedbytheClothingBankismanagedinthreeways:
Soldtotheunemployedwomenintheirtradertrainingprogramme.
GiventopartnerNPOs,welfareinstitutionsandgovernmentalserviceswhoidentifytheneedsofcommunities
atgrassrootslevel.
Storedandutilisedtoensureimmediateresponsefordisasterrelief.

CaseStudyEnterprisedevelopment:Strandveldtea
WoolworthscontinuestodemonstrateitscommitmenttosocioeconomictransformationandspecificallyBroad
basedBlackEconomicEmpowerment(BBBEE)inSouthAfricabysupportingsmall,local,communitybased
enterprises.OneofthelatestprojectstobenefitistheStrandveldTeaFarmersAssociation,whichisnowgrowing
premiumfinerooibosteaforWoolworths.

ItsoneoftheprojectsthathasgrownoutofthepartnershipbetweenWoolworthsandtheShellFoundation,a
U.K.basedcharitythattacklesglobaldevelopmentchallengesbyhelpingsmallbusinessesinpoorerregions
aroundtheworld.WithTheBetterTradingCompany,ShellFoundationsdevelopmentpartners,astudywas
commissionedthatshowedrooibosproductionwouldhavelessimpactrelativetootherfarmingactivitiesinthe
Elimarea,italsosuggestedwaysinwhichrooibosfarmingcouldrestorebiodiversityinareasalreadyimpactedby
alienvegetation.
Theintroductionofrooibosfarmingisalsohavingapositiveeffectonthelocalcommunity,whichwasestablished
asaMoravianMissionStationin1824,isstillasmall,picturesquecountryvillagewhere,untilrecentlymost
economicactivityrevolvedaroundsubsistencefarmingandthethatchingtrade.Theystartedsmall,plantingonly
10hectaresin2006,expandingto20thefollowingyear,thendoublingthatagaintheyearafter.

Injustfouryearstheirhardworkwithassistanceintermsofinvestmentandtechnicalexpertisehaspaidoff,
astheprojectproducesexportqualityrooiboswhilecreatingjobopportunitiesandgeneratingrevenueforthe
peopleofElim.Itsalsobenefitingtheenvironment,asthefarmersremovedensealienbushwhenplanting
rooibos.Therooibosinhibitsregrowthofthealiens,butnottheindigenousfynbos.Inordertopreservethe
fynbos,planting,weedingandharvestingoftherooiboscropisdonebyhand.Inadditiontocultivatingrooibos,
localfarmershavealsofoundemploymenthelpinganearbyfarmerharvestfynbosforexport.

Page|17

THEGOODBUSINESSJOURNEYREPORT2010

CSI

TheWoolworthsCSIstrategyisalignedbothtoourcorebusinessstrategyandtothestatednationaldevelopment
prioritiesoftheSouthAfricangovernment.
Akeyfocusofallthetrustsactivitiesistobuildcapacityinourcommunitiestoencourageandsupportour
beneficiariesinbecomingselfreliant.Inparticularwearecommittedtocontributingtoeducationbyaddressing
foodsecurityandnutritionandtheneedsoforphansandvulnerablechildren.TheWoolworthsTrustismanaged
byaboardoftrusteeswhooverseeourcoreactivitiesinlinewithourCSIpolicy.

SURPLUSFOODANDCLOTHINGDONATIONS

WoolworthsiscommittedtousingitssurplusproductstocontributeineradicationofpovertyinSouthAfrica.
Eachyear,Woolworthsgivesawaymillionsofrandsworthofitsclothesandsurplusfoodtounderprivileged
SouthAfricans.ThesurplusfoodispastitsSellBydatebutbeforeitsBestBeforeandUseBydates.Most
surplusfoodandsomesurplusclothingaredistributedbyWoolworthstolocalcharities.
R279mworthofgoodsweredonatedbyWoolworthstoneedycharitiesin2010(2009:R262m).Note:These
figuresrepresentthecosttocompany,nottheretailpriceoftheitems.

FOODSECURITYINSCHOOLS

ThroughourmajorsponsorshipoftheEduPlantprogrammewe,togetherwithAbsaandEngen,assistSouth
Africanschoolsindevelopingpermaculturefoodgardens.In2010,8000educatorsbenefitedfromparticipatingin
theEduPlantprogramme,coordinatedbyFood&TreesforAfrica.ThisistheTrustsflagshipfoodsecurityand
educationalinitiativeandprovidessustainablefoodsecuritythroughfoodgardenstoschoolcommunities.The
projectcurrentlyreceivesinexcessofR1.5mayearfromtheWoolworthsTrust.
ThroughtheEduPlantprogramme,schoolsdevelopfoodgardensusingpermaculturetechniques.Inharmony
withnature,EduPlantschoolsgrowvegetables,fruit,herbsandmedicinalplants.Theseschoolsprovidefoodfor
hungryschoolchildrenandthecommunitiesaroundthem.
ThroughtheirparticipationintheEduPlantprogramme,thousandsofschoolsacrossthecountryhavebecome
championsofcommunitydevelopment;promotingfoodsecurity,improvednutritionandselfreliance.
Inthesecondhalfof2010Woolworths,togetherwithABSA,willbefundingapilotprojectinSiyakhanafood
gardeninBezuidenhoutparkinJohannesburg.TheSiyakhanaFoodgardenisaprojectoftheUniversityof
Witwatersrandandithastheobjectiveofimprovingavailabilityandaccessibilityofnutritiousfoodandproviding
educationtothesurroundingcommunitiesonproducingtheirownfood.
RecordnumberofEducatorsreachedthroughEduPlantworkshopsandrecordnumberofEduPlantentriesin
2010
The2010EduPlantworkshopshavebeenagreatsuccess.ThisyeartheprogrammewelcomesEngen,Absaand
theWoolworthsTrustasthefundingpartners.Theyaregrowinganddevelopingthisnationalschoolgreeningand
foodgardeningprogramme,foundedandcoordinatedbyFTFA,thatisnowinits16thyear.
Arecordnumberofover8000delegatesattendedthe72educatorworkshopsrunacrossSouthAfricaanda
recordnumberofover580schoolshavesubmittedentryformsforthecompetitionthisyear.

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THEGOODBUSINESSJOURNEYREPORT2010

IMPROVINGEDUCATION

ThroughMySchoolandMakingtheDifferencethroughDesignandMakingtheDifferencethroughNutrition,
WoolworthscontributestotheimprovementofeducationinSouthAfricanschools.
WehavecontributedmorethanR100mtodatetoMySchoolonbehalfofourcustomers.In20092010alonewe
contributedR27mtotheMySchoolprogrammethroughover500000activeMySchoolsupporters.The
contributionshavesupportedmorethan10000schools,manyinimpoverishedareasaroundthecountry.
TheprojectalsoincludesMyVillageandMyPlanet,whichsupportselectedcharitiesandenvironmental
organisations.
Atotalof1900schoolsarebenefitingfromWoolworthsMakingtheDifferencethroughNutritionorDesign
schoolinitiatives.In20092010WoolworthsextendedtheMakingtheDifferenceprogrammetoincludeclass
lessonsfocusingonnutrition,exerciseand"FarmingfortheFuture".
ORPHANEDANDVULNERABLECHILDREN

TheWoolworthsTrustiscommittedtoplayingaroleinthenationalefforttosupportorphanedandvulnerable
childreninSouthAfrica.Webelieveinstrengtheningfamilies,communitiesandschoolcommunitiessothatthey
arebetterabletocareforthem.
TheWoolworthsTrustpartnerswithHeartbeattopromoteandenablecommunitycarefororphanedand
vulnerablechildren.3000orphanedandvulnerablechildrenareabletostayintheirowncommunitiesasaresult
ofHeartbeat.
During2010wecontinuedoursupporttotheEmthonjeniareainMpumalangaandenteredthesecondyearofa
projectintheJoziniareaofKwaZuluNatal.Theprojectwillprovide12nongovernmentalorganisations(NGOs)
withtheopportunitytoparticipateinatrainingandmentoringprogrammewithHeartbeatovera24month
period.TheobjectiveistoenabletheseNGOstoprovidethenecessarysupporttotheorphanedandvulnerable
childreninthisparticularlyneedyarea.ItwillextendthereachofHeartbeattoafurther2000childreninthis
area.
STAFFGIVING

Woolworthsstoresareencouragedtosupportsocialdevelopmentprojects,schoolsandcharitiesintheirlocal
communities.TheWoolworthsTrustmatchesthefundsraisedbystoreswithcontributionsofuptoR4000per
storeperyear.Inaddition,storeshavetheirowncommunitygivingprogrammesdistributingsurplusfoodand
clothestolocalcharities.ThroughWorkingWonders,anemployeerecognitionprogrammeforcommunitywork,
Woolworthsalsoencouragesandsupportsemployeeswhoareinvolvedinmeetingsocialchallengesintheir
communities.

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THEGOODBUSINESSJOURNEYREPORT2010

CaseStudyWorkingwonderswinners:
JamaKatanganaisbeingrecognisedbecauseofhisdedicationandcommitmenttotheorganisationNants'Ingqayi
(NAD).TheorganisationhelpstoenrichthelivesofthecommunityofLanga.NADhelpsenrichthiscommunityby
supportingallkindsofartsactivitiesfromtheatretocommunityjazzjams.Theyprovideskillsaswellashelping
youngandoldexpressthemselvesartisticallyand,throughthat,toleadbetterlives.Jamaspendsagreatdealof
hisfreetimeworkingwiththemandmakessurethatitreachesasmanypeopleaspossible.Hehasrecentlybeen
veryinvolvedinenablingagroupofchildrenfromNADtoprovideentertainmentalongthefanwalkaspartofthe
WorldCupactivities.InadditiontothewonderfulworkthatJamaisdoinginhiscommunityheisalsoawonderful
assettohisdepartmentandasstatedbyhislinemanager'HeisarealWoolworthsambassador,whogets
involvedwherehishelpisneededwithoutanyexpectationofremunerationorreward.'
ArleneNewmanisbeingrecognisedbecauseofherdedicationandcommitmenttomakingadifferenceinthe
livesofmanyanimalsandinparticularforhersupportandinvolvementwiththeorganisationAdoptAPet.She
collectspetfood,towels,blanketsandmonetarydonationsfromherITcolleaguesforAdoptAPet,aswellas
booksforTheEmmaAnimalRescueSociety(TEARS).Shebelievesstronglythatanimalscannothelpthemselves
andtheyhavesomuchlovetogiveandalltheyaskforinreturnislove,awarmbed,foodandwater.Her
workspaceisusuallysurroundedbylargebagsoffoodandbooksthatshehastocallAdoptAPettocomeand
collectfromher.ArleneisnotonlymakingadifferencetoAdoptAPetsheisalsoawonderfulassettoher
departmentandagreatWoolworthsambassador.
CaseStudyHabitatforHumanityBuild

InNovember2009Woolworthshelditsfirstannualcharitytriathlon.Manystaffmembers,theirfamiliesandour
suppliersran,swamandcycledtoraisemoneyforHabitatforHumanity.HabitatforHumanityInternationalisa
nonprofit,housingorganizationthatoperatesasaworldwideministryseekingtoprovidesimple,decentand
affordablehousingtocommunities,inneed,throughouttheworld.
From1216April2010WoolworthsteamsbuilteighthousesforfamiliesinMfuleniTownship,CapeTownfrom
thefundsraisedbythetriathlon.ThesecondcharitytriathlonwilltakeplaceinNovember2010.

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THEGOODBUSINESSJOURNEYREPORT2010

SOCIAL
COMMITMENTSANDPROGRESS

Commitment
2010
2009
By2012
Numberof
employees
18977
17551
n/a
Conversionofpart
timerstoflexible40
hours
36%
16%
n/a
Unionmembership 26%
30%
n/a
Labourturnover
(Management)
13%
12%
10%
Numberofinjuries
onduty
693
551
n/a
Fullcompliancewith
suppliercode:Foods 95.5%
94%
95.5%
Fullcompliancewith
suppliercode:
Clothing
89%
84%
90%

OursocialpillarincludesafocusonWoolworthspeopleinitiatives,socialconditionsinoursupplybase,product
labelingandhealthandsafety.

PEOPLE

Woolworthsisanaspirationalandmodernretailbrandwithastrongvaluebasedculturethatpermeates
employeerelationsandassiststodrivehighperformance;thereforeweareabletodeliversustainableand
profitablegrowththroughourPeople.
Ourintegratedpeoplestrategy,whichisbuiltonthephilosophyofcreatinganinspiringworkplace,isthe
foundationofthecompanystrategicplanandiscriticaltomotivatingandrewardingtherightemployeeactions
andbehaviourinordertoeffectivelyexecutebusinessplans.
TheobjectivesofthePeopleStrategyare:

Tobuildemployeeengagement;
ToestablishnonnegotiablecommitmenttoEE;
Todevelopcapability,successionandcareerpathways;
Toestablishaperformancemotivatedculture;
Toenhancevaluesbasedleadership;and
Toattractoutstandingtalent.

In2009/10wemadesignificantstridestowardsestablishingaleadingemploymentvaluepropositionthroughthe
implementationofanintegratedpeopleandrewardstrategy.Thekeyachievementsfor2009/10were:

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THEGOODBUSINESSJOURNEYREPORT2010

StoreStaffEmploymentProposition
Prospectiveandcurrentemployeesareattractedandretainedbythevaluebasedculturewhichformsthe
bedrockofthebusiness.Fromthefinancialyear2008/2009to2009/2010staffturnoverincorporatestores
decreasedby8%asaresultoftheimprovementsmadeinstrengtheningthestaffemploymentvalueproposition,
whichincluded:
Increasingstabilitythroughensuringmoreguaranteedhoursforourstorestaff.Thiswasachievedthroughthe

conversationofflexible28hourcontractstoflexible40hourcontracts.Onthe30thofJune2010,37%ofstaff
wereconvertedtoflexible40contracts.
Successfullytriallingavariablepayschemein4storesforallstorestaff.Theschemehasbeenimplemented
nationallyasatJuly2010.
MergingtheAlexanderForbesprovidentfundwiththeWoolworthsGroupRetirementfundallowing
approximately4000staffemployeesincorporatestorestoreceivethesamegroupriskbenefitsincludedinthe
WoolworthsGroupRetirementFund,
Increasingthefuneralbenefitatnoextracosttotheemployees.

ShortTermIncentives
Shorttermincentivesincludingthecorporateshorttermincentivescheme,theregionalmanagerandcorporate
storesgainshareschemeandthesupplychaingainshareschemeperformedasplannedrewardingparticipants
forsuccessfulperformance.
Employeeengagement
Woolworthsemployeerelationsstrategyremainsfocusedondevelopingandmaintainingsoundoneonone
relationshipswithallstaff,whichwefirmlybelieveisinthebestinterestsofourpeople.Industrynormsare
reviewedonaregularbasistoensurethatWoolworthsremunerationremainscompetitiveandmarketrelated.
LetsTalkisanengagementtoolthatprovidesemployeeswiththeplatformtobeheardandtotrackdailyactions
relativetotheoperatingandtradingplan.Asatyearend80%ofheadofficeandover50%ofstoreshave
implementedthemethodologywhichhastranslatedintoimprovedperformance.
PeopleSurvey
TheemployeeopinionsurveyknownasLetsAskwasdeployedinstorestomeasureengagement,the
effectivenessofourpeoplestrategiesandleadership.Overalltherewas2.1%improvementinperformance.
Notableshiftsincluded
3%improvementinCulture&Leadership
3%improvementinStakeholderEngagement:
8%improvementinReward&Recognition:

Recruitment
Overthepastyearasolidplatformhasbeenestablishedfromwhichwecanbuildourpositionasthepreferred
employerwithinretail.Afullreviewofrecruitmentandselectionpolicy,processandmetricshasbeencompleted
andtherehasbeenafocusonbuildingrecruitmentandselectioncompetenceinHRandLineManagers.The
developmentofalternativesourcingchannelshasalsocontributedtoasignificantdecreaseinrecruitmentcosts
acrossthebusiness.

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THEGOODBUSINESSJOURNEYREPORT2010

HeadOfficeRestructure
Inordertopositionthebusinesstoeffectivelydeliverthestrategygoingforward,anorganisationwidestructure
alignmentprocesswascompletedatheadoffice.Thekeyoutcomesofthisprocessweresimplerleaner
structures,withclearaccountabilityalignedtothedeliveryofthebusinessstrategy.Theintentwasalsoto
structuretobuildsuccessionandincreasedcapability.Keyfocusareasthroughthestructurealignmentprocess
weretheretentionofkeyskillsandcommitmenttoemploymentequity.
EmploymentEquity
Employmentequityhascontinuedtobeakeybusinessfocusin2009/10withaspecificfocusonestablishingan
EEtalentpipelineinlinewithourstrategyofdevelopingandprogressingEEtalentthroughthebusiness.The
launchofourgraduateprogramme,GrowthAcademy,incollaborationwiththeW&RSSetaandtheUniversityof
StellenboschBusinessSchoolinFebruary2010wasgroundbreakingwithintheretailsector,andisasignificant
steptowardsenablingthisstrategy.Inordertobuildaculturethatenablestransformation,anewDiversity
workshopwaspiloted,andwillberolledoutacrossthebusinessinthenewfinancialyear.
SkillsDevelopment
Developmentoftherequisiteskillstodeliverourstrategybothintheshortandlongertermremainedakeyfocus
areaforthebusinessandthenumbersoflearnersparticipatinginformalisedLearnerships,Skillsprogrammesand
Traineeprogrammeshasincreasedsteadily.ThelaunchoftheGrowthAcademyaswellasaCorporateStoresand
RealEstateDevelopmentCertificateinBusinessPracticefundedbytheW&RSetaandruninpartnershipwiththe
TripleLLearningAcademywerehighlightsfortheyear.RetailAcademy,whichfocusesonthedevelopmentof
middletoseniormanagement,continuedtoruninpartnershipwithUCTGraduateSchoolofBusiness.Inaddition,
therewasalsoacontinuedfocusongeneralupskillingandbuildingofretailmerchantskills.Thelearningcentres
atAdderleyStreetinCapeTown,RosebankinJohannesburg,andWestvilleinKZNhaveallcomeonstreamto
acceleratethedevelopmentofretailskillsbyprovidingfocusedandaccreditedcoursesrequiredformodern
retail.

SUPPLIERRELATIONS

Alloursuppliers,serviceprovidersandfranchisees,whatevertheirlocation,areboundbytheWoolworthsCode
ofBusinessPrinciples.Alloursuppliersareregularlyassessedagainstit.
Thismeansthatthequalityoftheirworkmanshiphastobethehighest,theirworkforcehastobetreatedfairly,
andthatanynegativeimpacttheiroperationsmighthaveontheenvironmentisminimised.
Clothings2010compliancetargetwas90%,but89%wasachieved,agoodimprovementfrom2009,butstill
slightlybelowourobjective,largelyduetochallengesintheengagementofinternationalsuppliers.
Foodtargeteda95%compliancewiththesuppliercodeofBusinessPrinciplesfor2010andachieved95,5%
complianceoveratwoyearauditcycle.
The2010winnersareFairCapeandBakkavor
Bakkavorisreceivinganawardfortheirwatersavinginitiatives,theirecofriendlywaterheatinginstallation,and
theuseoffilteredfactorywastewatertoirrigatenearbyfarmland.
FairCapeisreceivinganawardfortheircarbonfootprintingstudy,andfortheirplantorecoverfatsandoilsfrom
theirwastewatertogeneratepower.

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THEGOODBUSINESSJOURNEYREPORT2010

CaseStudyWooliesrecognisessuppliersfortheircommitmenttoprotectingtheenvironment
TheStewardshipAwardswerecreatedtorecogniseWoolworthssupplierswhoaretakingtheleadinusingnatural
resourcesefficientlyandwhoarehelpingtobuildpeopleandcommunities.
Toenter,thesupplierssubmitareportoutliningtheirenvironmentalandsocioeconomicperformanceandentries
arereviewedbyapanelofenvironmentalexperts.

PRODUCTSAFETYANDLABELING

Woolworthsiscommittedtomaintainingthehighestpossiblelevelsofproductsafetythroughoutthebusiness.
Productdesignandmanufacturearealwaysassessedagainststringentsafetystandards.
Foodsafetyiscriticaltothebusinessandmechanismsareinplacetoensurethatconsumersareofferedproduct
whichhasundergonethoroughtestingandrigidprocesscontroltoensureitisassafeaspossible.Processes
includeroutinechecks:
theWoolworthsappointedindependentSANAS(SouthAfricanNationalAccreditationSystem)accreditedfood

laboratoryrunsroutinechecksforanypotentiallyharmfulmicroorganismsandpathogens.Italsoroutinely
monitorspesticideresiduelevelsonfreshproduceandheavymetallevelsinfreshfish;and
anindependentauditingorganisation,InternationalBritanniaLimited(IBL),conductsfourhygieneauditsayear
ineachofourstoreswherefoodiscookedtoensurethatgoodfoodhandlingroutinesareinplace.

Woolworthshasarobustproductrecallprocessinplace,wherebyproductsposingasafetyriskareremovedfrom
theshelfwithintwohoursoftherespectiveexecutivebeingmadeawareoftherisk.
Woolworthslabellingpolicyensuresthatcustomersaregivensufficientaccurateinformationtoallowthemto
makeinformedbuyingdecisions.Woolworthsclothingisfullycompliantwithgovernmentrequirementsinterms
oflabellingwhich,inadditiontolistingthecountryoforigin,requiredetailsoffibrecontentandcareinstructions
plustheimporterscodeforimportedlinesorthemanufacturerstaxpayernumberforlocalgoods.
AllWoolworthsfoodlabelscontaindetailedinformationoningredients,nutritionalvaluesandallergens.
WoolworthshasanopinpolicyinKidswear,toensurewekeepchildrensafeandfreefrommetalcontaminants.

OCCUPATIONALHEALTHANDSAFETYANDSECURITY

AllWoolworthsbuildingsaredesignedwithinstringenthealthandsafetyguidelinesandwithemployeeand
customerwellbeingasaprimaryconsideration.Jointworker/managementhealthandsafetycommitteesarein
place.PreventionisanimportantaspectofWoolworthshealthandsafetyproceduresandthecompanysupports
ongoingcommunicationintheworkplace,particularlyaroundsafeworkingpracticesinhighriskareassuchas
storesandthedistributioncentres.
Woolworthscurrentlyemploys14occupationalhealthpractitionerstodeliveracomprehensiveoccupational
healthandwellnessprogrammewhichincludesanemployeeassistanceprogramme(EAP).Thisprogramme
providesconfidentialcounselingforpersonalorbusinesscrisesaswellaslifestylecounselingtoemployeesto
helpthemmanagehealthrelatedissues.
Ongoingvigilanceandadeterminationtoputthesafetyofourstaffandcustomersattheforefrontofourstores
securitymanagementprocesshavebeencriticaltocontainingcrimeduringtheyeararmedrobberieshave,
however,stayedthesameasthepreviousyearat18.Fortunatelynodeathsorseriousinjurieswererecorded.

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THEGOODBUSINESSJOURNEYREPORT2010

Injuriesonduty

Numberofinjuries

July2009toJune2010

693

July2008toJune2009

551

July2007toJune2008

511

July2006toJune2007

751

July2005toJune2006

637

July2004toJune2005

687

HIV/AIDS

HIV/AIDSisregardedasapotentialthreatwhichcanbemanagedandmonitoredwiththeappropriateleadership,
strategicplanning,implementationofcosteffectiveandsustainablemeasures,tomanagetheimpactsonthe
organisationanditsemployees.
ActivitiesandAccomplishments:
ReviewoftheWoolworthsHIV/Aidsstrategyinlinewiththeorganisation'sstrategy.
WoolworthshasacomprehensiveEmployeeAssistanceProgramme(EAP)whichencouragesemployees/

peoplewhoareaffectedorinfectedbyHIVtocomeforwardforconfidentialcounselingandsupport.
AllWoolworthsemployeeshaveaccesstofreetreatmentandcare.TheClinicalManagementProgram,(100%

Companyfunded)offerstreatmentandotherbenefitstotheHIVpositiveemployeeswhodonotqualifyfor
membershipoftheWooltruHealthcareFund.ThosebelongingtotheHealthcareFundcanaccesstreatmentvia
thefund.
WoolworthsiscurrentlylaunchingatestingcampaigninlinewiththeGovernment'sNationalHCT(HIV
counselingandTesting)campaign.ThisincludesaWellnesscomponent.ThesetestsincludeHIV,Diabetic,
Cholesterol,BodyMassIndexandBloodPressureScreening).
HIV/AidsawarenesswithinstoresandHeadOfficecontinues,andsomeindividualstoreshavetheirownHIV
awarenesscommitteesthatarrangeHIV/Aidsrelatedawarenessactivities.Thiswillbereinforcedbytheone
ononeeducationthattakesplacewiththeHIVscreeningtest.
WoolworthsalsocontributestobettermanagementofissuessuchasHIV/Aidsintheworkplaceinpartnership
withorganisationssuchastheSouthAfricanBusinessCoalitiononHIV/Aids.
WoolworthsalsosupportsnationalcampaignssuchasWorldAidsDayandthe16DaysofActivismCampaign
fornoViolenceAgainstWomenandChildren,breastcancerandsubstanceabuseawareness.

Thechallengesahead
EncouragingallemployeestoknowtheirHIVstatusbytakingpartintheHCTCampaign;
EncouragingemployeestoconfidentiallyreportcasestotheClinicalManagementProgramme,Wooltru

HealthcareFundHIVProgrammeorWoolworthsHealthServicestoensureaccesstosupportandinformation;
Planningforsustainable,costeffectiveinterventionsintotheorganisationtakingthefollowingkeyfactorsinto
account:

PuteffectivemeasuresinplacetoreducethefinancialimpactoftheHIV/Aidsepidemiconthe
organisation

Introducecosteffective,sustainableinterventionsthatsupporttheorganisationalstrategy.

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THEGOODBUSINESSJOURNEYREPORT2010

ENVIRONMENT
COMMITMENTSANDPROGRESS
Ourkeyinitiativesundertheenvironmentalpillarofourprogrammeincludeorganicandfreerangeproducts,
healthyeatingchoices,protectionofbiodiversity,animalwelfare,watermanagement,wastemanagementand
thereductionofpackaging.Wecontinuetopromoteenvironmentallysoundfarmingmethods,therebyensuring
thatourconventionalproducefarmersmigratetoenvironmentallysensitivefarmingmethodsandorganic
production.
Commitment

2010

2009

By2012

Relativewaterreductionstores

27.3%

12%

30%relativereduction

Waterreductionheadoffice
complex
Organicfoodsales

24%

20%(restated)

30%reduction

R631m

R500m

R1billion

Organicandsustainablefibre
clothingsales

R608m

R400m

R1billion

Farmingforthefuturecompliance
levels

68.4%

Benchmarkyear

85%

Woolworthswinesuppliers
membershipofBiodiversityand
WineInitiative(BWI)

70%

55%

100%

Foodspackagingreduction

660tons

320tons

2000(20%reduction)

Recyclabilityoffoodspackaging

66%

50%

90%

Recycledcontentinfoods
packaging

24%

23%

25%

Recyclingsymbolsonfoods
packaging

83%

79%

90%

Reusablebagssales(no.ofbags)

920000

900000

1000000

Reductioninplasticbagsalesper
transaction(benchmark1.33)

.995

1.17

Woolworthsrecyclingfacilities

0(ExceptforCFL
recyclingin
store)

50

%wastetolandfillfrom
distributionoperations

16%

33%

(excludingfarmingforthefuture)

SUSTAINABLEAGRICULTUREANDMANAGEMENTOFBIODIVERSITY

SouthAfricahasthethirdhighestlevelofbiodiversityintheworld,butagricultureanditsimpacts,areofthe
mostsignificantthreatstonaturalresourcesandbiodiversityinSouthAfrica.
Overthepastdecadeithasbecomeclearthatwhilethecurrentapproachtofarmingproducescheapfoodin
abundanceitalsocarrieshiddencostsforthehealthoftheplanetanditspeople.Yearsofecosystemdegradation

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THEGOODBUSINESSJOURNEYREPORT2010

inSouthAfricasagriculturallandscapeshasresultedindepletedsoils,barrenlandsandpoisonedwaterways,
risinginputcostsandgreenhousegasemissions,andincreasingruralpoverty.
Thissituationisdrivingamovetowardstheconceptofsustainabilityinfarmingpractices,agriculturewhichcan
protectsoilsandwatersupply,nourishpeople,supportrurallivelihoodsandhelpcommunitiescopewitha
changingclimate.Thisconceptcentresontheneedtobuildfarmproductivityandprofitabilityinawaythat
protectsthenaturalresourcesonthefarmandsocialwellbeingensuringthattheagriculturalsectorcanmeet
worldfooddemands,enhancerurallivelihoodsandunderpinstableeconomicsystems.
Woolworthsanditssuppliersarededicatedtosellingproductsthatdonotcauseharmtothenaturalworldinthe
waytheyaremade,andwearefocusedonworkingwithoursupplierstoimprovefarmingpractices.
WWFasaStrategicPartnerinAgriculture
WWFisaleaderinunderstandingandmitigatingtheimpactsofkeydriversofbiodiversitylossincluding
agriculture.InSouthAfrica,theyhaveinvestedinsustainablefarmmanagementtechniquesandtoolsforlarge
andsmallgrowersinarangeofcommoditiesandcurrentlymanageseveralproductspecificsustainability
initiatives,includingtheBiodiversity&WineInitiative,theSustainableSugarFarmManagementSystemandthe
establishmentofGreenChoice,inpartnershipwithConservationInternational,aimedatpromotingwiseresource
usethroughoutthefoodsupplychain.
Weareestablishingacollaborativeprojectwhichassistsinenhancingtheenvironmentalbenefits,and
acceleratingtheadoptionlevels,oftheFFFBetterManagementPracticesacrosstheWoolworthssupplybase.The
highimpactdairysectorhasbeenidentifiedasagoodstartingpointforputtingthiscollaborationbetweenWWF
andWoolworthsintopractice.
WWFwillplayanimportantroleinverifyingtheprogressandresultsachievedundertheFFFprogramme,aswell
asprovidingspecialistknowledgeandexperienceacrossarangeofbiodiversityandwaterareas.Woolworthswill
partiallyfundWWFssustainableagriculturework,aspartofthecollaborationbetweentheentities.
Woolworthsbroaderresponseincludes:
takinggeneticallymodified(GM)ingredientsoutofourfoodwhereverpossible.AnyGMingredientsremaining

areclearlylabeledwhichmeanscustomerscanmakeinformedchoiceswhileshopping;and
sellingonlybadgerfriendlyhoney.
onlysourcingwoodwhichisrecycledorindependentlycertifiedascomingfromapprovedsustainablesources,

e.g.ForestStewardshipCouncil(FSC);
sellingnoproductorbyproductofthreatenedspecies;
workingonasustainablesolutionforpotatofarmersintheSandveld;
requiringWoolworthswinefarmersintheCapeFloralKingdomtobemembersoftheIntegratedProductionof

Wine(IPW)programmeandtheBiodiversityandWineInitiative(BWI),overtime;
shiftingconventionalfarmerstoadoptenvironmentallysensitivefarmingpracticesreducingtheirimpacton

theenvironment,throughthefarmingforthefutureprogramme(seebelow);and
supportingpredatorfriendlyfarming.Weareagainstindiscriminateformsofpredatormanagementthatcause
pain,distressordeathtopredators.Weareworkingcloselywithoursupplybase,universities,theDepartment
ofAgriculturesresearchfarmsandanumberofotherexpertsinthisfield,includingtheLandmarkFoundation,
toimplementguidelineswhichsetoutethicalpredatorcontrolmeasures.Thefoodsteamisalsoactively
involvedinanAnatoliansheepdogadoptionprogrammesponsoredbytheWoolworthsTrust.

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THEGOODBUSINESSJOURNEYREPORT2010

Fishingforthefuture
WoolworthsFishingfortheFutureinitiativeisaguaranteetocustomersthatourseafoodis:responsiblysourced,
legallycaughtandhasfulltraceability.
WearepartneringwiththeSouthAfricanSustainableSeafoodInitiative(SASSI)andusetheirred/amber/green
colourcodingsystemtoindicatethreatenedspecies.
Woolworthshasalsorecentlyintroducedanewgourmetfishselectionsustainablywildcaught,MSC(Marine
StewardshipCouncil)certifiedAlaskansalmonfillets,mackerelsmoked&pepperedfilletsandherringfillets,and
sustainablyfarmedtroutsmokedfillets.TheMSCcertificationcomplementsthelocalSASSIprogramme,and
extendsourcoverageforimportedandfarmedfishspecies.
PalmOil
WoolworthsisthefirstSouthAfricancompanytobecomeamemberoftheRoundtableonSustainablePalmOil
(RSPO).TheRSPO,aglobalorganisation,hasdevelopedasetofstandardscalledthePrinciples&Criteria(P&C)
thatdefinethepracticesforsustainablepalmoilproduction.Thesestandardsaddressthelegal,economic,
environmentalandsocialrequirementsofproducingsustainablepalmoil.
Currently,themajorityofpalmoilisproducedinMalaysiaandIndonesia,andaccordingtotheRSPO,these
countriesaccountfor83percentofproduction.Oilpalmisgrownmostoftenonnewlyclearedrainforestorpeat
swampforestsratherthanonalreadydegradedorabandonedagriculturallandsomethingtheRSPOisclosely
monitoringandworkingtoend.Inbothcountries,thenumberofcriticallyendangeredandthreatenedland
mammalshasincreasedsignificantly.
TheRSPOunitesstakeholdersfromsevensectorsofthepalmoilindustrypalmoilproducers,palmoilprocessors
ortraders,consumergoodsmanufacturers,retailers,banksandinvestors,environmentalornatureconservation
NGOsandsocialordevelopmentalNGOstodevelopandimplementglobalstandardsforsustainablepalmoil.
Woolworths,whichusessome600tonsofpalmoileachyearinitsproducts,hasjoinedtheRSPOinorderto
promoteandraiseawarenessoftheneedforsustainablepalmoilproduction.Thiscommitmentincludes
purchasingcertifiedsustainablepalmoilcertificatesforthetonsofpalmoilusedinWoolworthsfoodsandbeauty
products.BybuyingtheseGreenPalmcertificatesWoolworthsiscontributingtoRSPOeffortstoincentivise
IndonesianandMalaysianpalmoilproducerstobecomecertifiedsustainableproducers.Woolworthshasalso
undertakentoreplacepalmoilwithalternativeswherepossibleandhasfurthercommittedtousingonlycertified
sustainablepalmoilby2015.

FARMINGFORTHEFUTURE

Togetherwithourfarmers,werepioneeringanewapproachtogrowingfoodsustainablyandinharmonywith
naturesothatSouthAfricasfarmswillbeabletoprovideenoughfoodforfuturegenerationswithout
compromisingqualityoraddingtothecost.WecallitFarmingfortheFuture.
FarmingfortheFutureisaholisticapproachthatmanagestheentirefarmingprocesssystematically.Itallstarts
withbuildingandmaintainingthesoil,because,asanyfarmerwilltellyou,ittakesgoodsoiltoproducegood
food.
Healthysoilisbetterabletoretainwater,soitneedslessirrigationandwateruseisreduced.Italsoneedsfewer
chemicalinterventions,whichmeansfarmersonlyusesyntheticfertilisersorherbicideswhenneeded.

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THEGOODBUSINESSJOURNEYREPORT2010

Fewerchemicalsmeanlesschemicalrunoff,which,alongwithlesssoilerosionandlossoftopsoil,helps
maintainwaterqualityandbiodiversity.Farmersalsouseintegratedpestmanagementprinciplesinorderto
reducerelianceonchemicalpesticidesandherbicidesandencouragebiodiversity.Allthefarmerswhogrow
produceforusarejoiningusonthisjourney,andby2012allourlocallygrownfreshproduce(otherthan
organicallycertifiedproduce)willbegrownthisway.Somekeyprogressduringtheyear.

96farmswereauditedlastyearaspartoftheprogrammeoverthelastyear;
theWWcompliancetargetforthisyearbasedonturnoverwas57%,while68.4%wasachieved;
23horticulturesuppliersarebeingintroducedtotheprogramme;and
RecentFFFcustomerresearchshowedthatahighpercentageofcustomersunderstandtheprogrammefully
(54%).

FarmingfortheFutureinaction
FlipNel,whosefarmhasbeensupplyingWoolieswithtomatoes,peppersandotherfreshvegetablesforyears,
hasbeenoutsincedawn,runningjustafewofthehundredsofcheckshedoesroutinelytomakesurehiscrops
aregettingjusttherightamountofwaterandfertilisertheyneed.FlipwasoneofthefirstWooliesfarmersto
adoptFarmingfortheFuture.Hesseenforhimselfhowfarmingthiswayimprovessoilandwaterqualityand
cutswateruse.Hesalsoseenhowthenewmethodshavebroughtmorebirdsandinsectsbacktothefarm,and
howtheyrehelpingtokeepinsectsthatcoulddamagehiscropundercontrol.Healsoloveshearingthebirds
singingasheheadstothefieldsinthemorning.

WATER

Overthecourseofthecurrentyearincreasingattentionhasbeenfocusedonwaterscarcityandqualityaskey
issuesforSouthAfricasdevelopment.SouthAfricaisawaterscarcecountry.Inaddition,thequalityofourwater
isincreasinglythreatened,inpartbyindustrialandagriculturalactivity.
ThemajorityofSouthAfricaswaterresourceisusedinfarmingirrigation,andWoolworths,asamajorsupplierof
freshproduce,hastoplayaroleinwaterconservation.AccordingtoWWFSAthestressplacedonSouthAfricas
scarcewaterresourceshasresultedinmorethan84%ofmainstreamfreshwaterecosystemsbeingclassifiedas
threatenedinarecentnationalsurvey.
Wearedeeplycommittedtobeingpartofthesolutionandhavealonghistoryofworkingwithoursuppliersto
influencechange.Wewillcontinuetoensurethatourbusinessandsupplychainactivityconservesourprecious
waterresources.
Woolworthshascommittedtoreducingwaterusageandmanagingwastewaterandwatereffluent.Allsuppliers
whomakefabricforourclothesadheretoverystrictstandards.Nomaterials,dyesorchemicalsusedinthe
productionofWoolworthsclothingortextilesposeanunacceptablerisktohealthortotheenvironment
duringtheirmanufactureordisposal.Wecontinuetoentrenchourstrictcodeofconductregardingdyes
(includingtheremovalofAzodyes),chemicalsandwatermanagementinoursupplychain.
Woolworthsprogrammeincludesthefollowingmeasures:
Woolworthsmeasurestheamountofwaterusedbysuppliersandworkswiththemtoreducewateruseand

improvewaterwastemanagementduringgrowing,productionandmanufacture;
withintheFoodsunitthisworkincludesthereductionofpesticides,fertilisersandwaterusage;
WoolworthsfreshproducefarmershaveadheredtoEurepgapfarmingpracticesfornearlyadecade.Eurepgap
(nowknownasGlobalgap)isaninternationallyrecognisedstandardforsafeandsustainableagriculture,
settingguidelinesforenvironmentalandlabourstandardsaswellasproductsafety;
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THEGOODBUSINESSJOURNEYREPORT2010

Woolworthsisthecountrysleadingretailerincertifiedorganicfreshproduce,whichisgrownwithouttheuse

ofartificialchemicals,suchasherbicidesandpesticides,anddoesnotreleasepotentiallyharmfulchemicals
intowatersupplies;
Woolworthsisalsoworkingwithourconventionalfarmerstohelpthemincorporatemoreresponsiblefarming
practicesintothewaytheyfarminordertoestablishathrivingandsustainablemicrobialpopulationinthesoil
throughthefarmingforthefutureprogramme;
wecompletedawatertrialwith66foodsupplierswhichhashighlightedissueswithrunoffwater(intorivers
andaquifers)fromirrigationpractices,andwastewaterfromfarmprocessingandareworkingwiththeGlobal
CompactandtheGermanDevelopmentAgency(GTZ)tofurtheranalysewaterusageinagricultureand
developmethodsforreduction;
WoolworthsisworkingwiththeCouncilforScientificandIndustrialResearch(CSIR)toidentifySouthAfrican
arableareasthatarelikelytostrugglewithwaterscarcityduetotheimpactsofclimatechangeandto
incorporatethisthinkinginitssupplychainstrategy;
wearecommittedtowaterconservationeducation,especiallyassistingtoeducateoursupplychainand
providevaluablewatersavingstipstobothcustomersandemployees;and
weareworkingonresearchingandunderstandingthewaterfootprintofselectedpriorityproducts.

Waterneutrality
WoolworthsistheonlyretailertoformpartoftheWorldWideFundforNatures(WWF)WaterNeutralScheme.
Thescheme,launchedinassociationwiththegovernmentsWorkingforWaterprogramme,encourages
corporatestobecomewaterneutral.Theprogrammehasmultipleobjectivesofreducingtheimpactofinvasive
alienplantsonourwatersupplies,improvingtheproductivepotentialofland,restoringbiodiversityand
ecosystemsfunctionaswellascreatingjobsandeconomicempowerment.
Woolworthsiswaterneutralbyeliminatinginvasivewaterthirstyalienplantsonsupplierfarmsandinprotected
areas,suchastheTankwaKarooNationalPark.TheprojectwillreleaseenoughwaterintoSouthAfricaswater
systemtooffsetthewaterusedbyWoolworthsoperationseachyear,ultimatelymakingthecompanywater
neutral.Woolworthswillalsofundthetrainingandemploymentofworkerswhowillremovealienplants,thereby
creatingemploymentaswellasmanagingitsenvironmentalimpactsresponsibly.Theprojectisa20year
commitment.
AccordingtoWWFapproximately7%ofSouthAfricasaverageannualrunoffisusedbyalienandinvasiveplants.
Byassistingtoeliminatetheseplants,Woolworthsmakesameaningfulcontributiontowardsconservingwater
resourceswellintothefuture.
Realestate
Whenevaluatingnewrealestateopportunities,Woolworthsconsidersifthedesignofthepropertyenablesthe
efficientuseofwaterandwaterwaste.Thisincludes:

storageanduseofrecycledandgreywatersystems,retainingasmuchwateronsiteaspossibleforreuse;
useofindigenousshrubsandgroundcovers,minimisingirrigationneeds;
stormwatermanagementallowingrainwatertobestoredandused;and
pulsemetresinplacetoimprovewatermeasurementandmonitoring.

SuchmeasureshavealreadybeenimplementedatthedistributioncentreinMidrand.
Headofficefacilitieshaveshowna24%decreaseinwaterusagefromour2008benchmarkandwehavealso
achieveda27%reductioninrelativeusageinstores(2008benchmark:122kl/m2).Thisissignificant,notonlyfor
conservation,butalsoasclearproofthatsustainabilitycandelivercostsavings.

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THEGOODBUSINESSJOURNEYREPORT2010

Farmingforthefutureandwater
Farmingforthefuturemeasuresthewaterrequiredfortheplantandirrigationisusedonlyifandwhenrequired.
Earlyindicationsshowasignificantwatersaving.Theconservativeuseofchemicalsalsopreventsfertilisersand
pesticidesfrompossiblefreshwatercontamination.
Werepleasedtosayby2012allourlocallygrownfreshproduce(otherthanorganicallycertifiedproduce)willbe
grownthisway.
Thefarmingforthefutureauditresultshaveagainhighlightedtheneedforustofocusonwaterconsumptionand
wastewatermanagementintheFoodssupplychain.TheprojectwiththeGermanDevelopmentAgency(GTZ)
focusingonwastewatermanagementin66foodspackhousesisgoingtobeextendedtowineanddairysuppliers.
Woolworthssuppliersefforts
LaMotteproducesredwines(GrandRougeMerlotandGrandRougeCabernetSauvignon/ShirazReserve)for

Woolworthsaswellaspotteddisaplants.LaMottehasacertifiedenvironmentalmanagementsystemand
reducedtheirrelativewaterusageperlitreofwineby41%inthelastfinancialyearfroma2004benchmark.
KimberlyClarkSouthAfricaachieveda10%reductionintotalwaterusageinthelastfinancialyear.

BothsuppliersarepreviouswinnersofWoolworthsecoefficiencyawardthatrecognisessuppliersforexcellence
insustainablebusinesspractice.

ANIMALWELFARE,ORGANICANDFREERANGE

Woolworthshasalwayshadclearguidelinesonanimalwelfare.Theseinclude:
anNSPCAapprovedAnimalWelfareCodeofPractice;and
insistencethatallanimalsdestinedforstoresmustberearedhumanelyandtreatedfairlyinaccordancewith

ourcodeabattoirsareregularlyauditedbyaWoolworthstechnologist.

Woolworthswasalsoheavilyinvolvedinthedevelopmentandlaunchofbadgerfriendlyhoney,predatorfriendly
farmingandsustainablefishingpractices.
Wedonotpermit:
animaltestingwehaveneveraskedorcommissionedourprivatelabelhealthandbeautysuppliersto

conducttestingonanimals.Ouranimalwelfarepolicyrequiresthatsuppliersdidnotuseanyrawmaterials
testedonanimalsafter1January2001;
productsmadefromrealfur;
sellingofwholeeggsfromcagedbirds;
ourhealthandbeautysuppliersofourprivatelabeltouseingredientsthatarebyproductsofthefood
industry;and
theuseofduckfeatheranddownthatisnotabyproductofthefoodindustryinhomeware.

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THEGOODBUSINESSJOURNEYREPORT2010

WoolworthsentireprivatelabelrangeoftoiletriesandcosmeticshasbeenapprovedbyBeautyWithoutCruelty
(BWC).
WoolworthsextensiveEarthFriendlyrangeofhouseholdcleaningandpersonalcareproductsaremadewith

naturallyderived,plantbased,biodegradableingredientsandcontainnopetrochemicalsandnoartificial
colours.EveryproductcarriestheendorsementofBeautyWithoutCrueltyandWoolworthshasused
recyclablebottleswhichthemselvesaremadefromatleast30%recycledmaterials.
Woolworthsiscommittedtoaddressingtheissueofmulesingofwoolproducingmerinosheep.Mulesingisthe
surgicalremovalofstripsofwoolbearingwrinkleskinfromaroundthebreechofasheep.Mulesingisa
commonpracticeinAustraliaasawaytoreducetheincidenceofflystrikeonMerinosheep.Althoughmulesing
isnotpractisedinSouthAfrica,WoolworthswillcontinuetomonitorlocalSouthAfricansupplierstoensure
thattheyconformtothepositionstatementmandatedbyCapeWoolsSA.

Freerangeeggs
Woolworthsisproudtohavebeenthefirstmajorlocalretailertostopsellingwholeeggsfromhenskeptincages
in2004onlywholefreerangeeggsaresoldinWoolworthsstores.Weremaintheonlymajorlocalretailerto
haveachievedthis.
FreerangeeggproductioninSouthAfricaisregulatedbytheAgriculturalProductStandardsAct.Woolworths
freerangeeggsupplierfarmersarefullycompliantwiththeregulatoryrequirementsandtherequirementsfor
freerangeproductionasstipulatedbytheSouthAfricanPoultryAssociation.Ourfreerangefarmersareaudited
regularlytoensureadherencetoourstrictstandards.
Ourfreerangehensenjoyaccesstoamplefoodandwater,sunshineandshade,theoutdoorsandprotective
shelters.Theyarefedagrainbaseddietthatcontainsnoanimalbyproducts.
Thefirsthundredfoodlinesmadewithfreerangeeggswillappearonourcountersinthelastquarterof2010
withseventymoreappearingin2011.Wewillbechanging"factorybyfactory"asthisiscontrollableandwecan
guaranteeintegrity.
Organicproducts
WoolworthsoffersSouthAfricanconsumersthewidestrangeofcertifiedorganicproducts,frompastaand
peanutbuttertoTshirtsandtowels.InFebruary2008welaunchedover100neworganicgrocerylineswhich
caterforbothbasicgroceryneedsandthemorespecialisedtastesofthecontemporarycook.Therangeincludes
jams,pastasandpastasauces,rice,condiments,oils,beans,breakfastcereals,biscuits,teas,coffees,juices,nuts,
chocolatesandmore.Thishasmadeiteasierthaneverforshopperstoleadamorecomprehensiveorganic
lifestyle.
Woolworthsbeganitsorganiccottonjourneyin2004andhassteadilyincreaseditsuseoforganicallygrown
cottonoverthepastsixyears.Woolworthsoffersacomprehensivecollectionoforganiccottonproductsin
childrens,mensandwomensouterwearandsleepwear,babyclothing,towelsandbedding.
in2010ourorganicandfreerangefoodsaleswereoverR500m;
organicclothingsaleswereconsiderablyhigherthan2009sales,andoverR400moforganiccottonsaleswere

achieved,stillbelowthetargetwehavesetforourselvesfortheyear;
wenowsellonlyfreerangelamb,atthesamepricepointasconventionallambwassoldat;and
wehavesetinternalsalestargetsforitemsmadefromothersustainablefibres,includingsoya,bambooand
organicwool.

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THEGOODBUSINESSJOURNEYREPORT2010

Sustainablefibres
Drivinginnovationinclothingcontinuedtobeastrongfocus.Theuseoforganiccottoninclothingincreasedand
garmentswithboth100%organiccottonandclothingwithapercentageoforganiccottonremainapopular
choiceamongcustomers.Arangeofbambooproducts,anaturalandsustainablefibre,wasintroducedin
womensouterwearin2008.WoolworthsisthefirstSouthAfricanretailertoofferorganicwoolandhas
introducedmensformaltrousersmadefromorganicwool.Arangeofbambootowelsandwoodenproductsfrom
sustainablymanagedforestsareavailableinhomeware.
Alongwithorganicwool,bambooisoneofthesustainablefibreswereusingtodriveinnovationinclothingand
homewareproducts.
Bambooisnotonlythefastestgrowingplantintheworld,itdoesntneedfertilizersorpesticides,andhasno
naturalenemies.Itsimplyspendsitstimegrowing.Anditactuallyhelpsimprovesoilquality.
Itisantimicrobialandabsorbsmoisturethreetofourtimesbetterthancotton;italsonaturallywicksthat
moistureawaysothatitevaporatesquickly,aperfectfitfortowels.
AwholerangeofWoolworthsduvetsarefilledwithplasticbottles.Strongerthanvirginfibre,thisspecially
designedfibremadefromrecycledplasticbottlesmakesourcushions,pillowsandduvetsbeautifullyfluffyand
resilient.Byusingsuchfibre,weresavingalmost500000plasticbottlesayearfromgoingtolandfill.
In2009Woolworthsintroducedthefirst100%SouthAfricanorganiccottongarmentsforsummer.TherangeofT
shirtsforbothmenandwomenisbeingmadefromSouthAfricasfirstcommercialscaleorganiccottoncrop,
whichwasharvestedlastyearinLimpopo.Theplantingofthese22hectareswaspartofamultiyearpilotproject
whichinvolvedWoolworths,theOrganicExchange,ComMark,CottonSAandtheAgriculturalResearchCouncils
InstituteforIndustrialCrops.Withthisimpressivelistofassociates,Woolworthshasproducedanexcitingand
fashionablerangethatisenvironmentallyconsciousandecologicallysound.
AccordingtotheOrganicExchange,conventionallygrowncottonconsumesapproximately25%oftheinsecticides
andover10%ofthepesticidesusedintheworld.Organiccotton,ontheotherhand,isproducedusingonly
naturalcompostandpestmanagementtechniques,makingitmuchhealthierfortheenvironmentandsaferfor
farmworkers.
CasestudycafMoshi
AllWCafsserveonlyorganiccoffeemadefromAfricanArabicabeans,becausewebelieveinsupportingAfricas
farmersandalsobecausetheyrethebestArabicabeansintheworld.
ThesebeanshavetravelledfromasmallorganiccoffeefarminTanzania,wherelocalfarmersrelyontraditional,
sustainablemethodswhichareinharmonywithnature.Thecoffeematuresslowly,shadedbytalltrees,before
beinghandpicked.

PACKAGING
Woolworthsiscommittedtoreducingpackagingtotheminimumnecessarytoprotect,informandpromotethe
product.Thisreductionissupportedbyanintensivecustomereducationprogrammeandworkingwithour
partnerstopromoterecyclingfacilities.
Reduce
Wehavesettargetstoreducepackagingtolittlemorethantheessentialrequirementsofproductprotectionand
information,specifically:
reduceclothingpackagingbymorethanathird;
reducefoodpackagingby20%;

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THEGOODBUSINESSJOURNEYREPORT2010

decreasefoodplasticbagusagebyencouragingcustomerstousereusablebags;and
reduceclothingplasticbagusagewherepossible.

Infoodwehavesavedover660tonsofpackagingagainstthetargetssetin2008byanalysingthepackagingin1
400linesoffood,specificallybyweighingover200000tonsoffood.
Recycleandreuse
Wehavesetcleartargetsforrecyclingandreuse.Theseinclude:

includingrecycledmaterialinproductpackaging;
restrictingpackagingmaterialstothosethatcanberecycledlocallyandrationalisetypesofplastic;
puttingsymbolsonplasticpackagingtohelpcustomersandrecyclerseasilyidentifypackagingforsorting;
involvingandinfluencingthepackagingindustrytodevelopmoresustainablematerials;and
recyclingallstoreequipmentincludingfoodtraysandhangers.

Progresstodate:
24%oftheproductlinesinfoodcurrentlycontainrecycledpackagingmaterials.Wherepossible,thesleeveson

readymademeals,dipsandotherfoodproductsaremadefromcardboardwhichhas80%recycledpaper
content;
Woolworthscontinuestoseekrawmaterialthatisindependentlycertifiedascomingfromapproved
sustainablesources(e.g.materialcertifiedbytheForestStewardshipCouncilFSC);and
over83%ofourfoodlineshavesymbolsontheplasticpackagingtohelpcustomersandrecyclerseasily
identifypackagingforresorting.

Woolworthsshiftsrangeofwineintoplasticbottles
FromlateAugustWoolworthsshiftedtwoofitsentrylevelwinesfromglassbottlesintoPETwinebottles
manufacturedbyMondi.Thiswillresultinashiftofcloseon100000bottleschanginginthispilot.
ThelightweightPETwinebottlereducesshippingweightandcarbonemissions.Itsalsoshatterproof,eliminating
stocklossthroughbreakage,andis100%recyclable.
Thebottlehasseveral"green"benefits:anoverallreductioninshippingweightandthereforecarbonemissions
asits80%lighterthana750mlglassbottle;lessenergyconsumptioninitsmanufacture,comparedtoglass;and
itssmallersizeresultsinsavingsinbothtransportationcostsandstoragespace.
ThePETbottleisan"activepackage"thatblocksoxygenfromoutsideessentialforwinestorageandalso
scavengestheoxygendissolvedinwineandcaughtintheheadspace.Ithasthesametransparencyandaesthetic
appealasglass,butonhandlingit,itslighterweightandsofterfeelbecomeapparent.
CaseStudyWoolworthslaunchesshoesmadefromrecycledmaterial
AspartofitsGoodbusinessjourney,Woolworthsiscommittedtofindingnewwaystorecycle,reuseandre
purposematerialsthatmightotherwisegotolandfill.Thelatestinnovationonethatssuretofindfavourwith
ecoconsciousparentsisarangeofchildrensshoesmadefromrecycledmaterials.Theuppersandlacesof
WoolworthsnewEcoWalkmatesRecycledareproducedfromfibremadefromrecycledplastic:theuppersfrom
plasticcratesandthelacesfromPETbottles,whilethesolescontain80percentnaturalrubberand20percent
recycledrubber.Theeyelets(nickelfree,inkeepingwithWoolworthsnonickelpolicy)arefashionedfrom
aluminiummostlyrecycledfromcooldrinkcans,tinsandaircraftparts,alongwithanelementofnew
aluminium.

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THEGOODBUSINESSJOURNEYREPORT2010

RECYCLING

Woolworthscommittedtointroducinganationwideprogrammesupportingtherecyclingofourcustomers
waste.StepstoachievethisincludedWesternCapeinstorecommunicationaroundthenearestmunicipal
recyclingfacilitytoeachWoolworthsstore,andaprogrammeinselectedstorestocollectCFLlightbulbsfrom
customersandrecyclethese.Duringthecurrentyearwemadesubstantialprogressinmeetingourinitial
commitment.
CaseStudyOfferingcustomersconvenientrecyclingfacilities
LastOctober,Woolworths,alongwithpartnersEngenandNampakbegantriallingrecyclingfacilitiesateight
EngenservicestationsinthegreaterCapeTownregion.
ThepilothasofferedWesternCaperesidentstheconvenienceofdroppingofftheirglass,paper,plasticand
cardboardforrecyclingwhilefillinguptheirvehiclesorshoppingatselectedWoolworthsFoodstopsandEngen
convenienceshops.
Therecyclingprojectcontinuestobewellsupportedbycustomers,withover110tonsofrecyclablematerials
havingbeencollectedfromthe8pilotsitesin9months,andthefrequencyofcollectionshavingbeenincreased
atallsites.
WerenowplanningtoinstallrecyclingfacilitiesatanadditionalfiftyEngensitesnationallyoverthenextsix
months,usinglargerrecyclingfacilities,currentlybeingmanufacturedinSouthAfrica.Customerresearchshowed
that89%ofcustomersviewedWoolworthsmorefavourablyasaresultoftheinitiative.
RecyclingfacilitiesatselectedfoodstandalonestoreswillalsobetrialledfromSeptember2010.

PLASTICBAGUSAGEANDREUSABLEBAGS

Woolworthsiscommittedtoreducingplasticbagusageasawayofreducingitsimpactontheenvironment,
savingcostsandassistingcustomerstosavecostsaswell.Woolworthscustomersareparticularlyencouragedto
usereusableshoppingbags,therebyreducingthenumberofnewshoppingbagsthatneedtobemade.
ThesehavecreatedanopportunityforWoolworthstopreservetheenvironmentaswellassupportenterprise
development.
Woolworthstworeusablebagsuppliers,Isikhwama,basedinMaitland,CapeTown,andGusco,basedin
Uitenhague,employ300semiskilledandunskilledpeoplewhowerepreviouslyoutofworkbetweenthem.
Reusablebagsalescontinuetobestrongwithover920000bagssold,andanumberofnewdesignslaunched.
Ascanbeseenbythegraphbelow,plasticbagsalesdeclineddramaticallyfollowingtheintroductionoftheplastic
baglevy,butayearonyearincreasehasfollowedsince.
Relativeplasticshoppingbagsaleshavealsodecreasedsignificantlyoverthelastfinancialyear.The25%
reductiontarget(of1.0)hadbeensetfor2012,offa2007benchmarkof1.3plasticbagspertransaction,with
.995alreadybeingachievedduringthecurrentyear.
Woolworthsgreencarriersfoodbagsaremadefrom55%recycledplastic,harvestedfrompostindustrialwaste,
requiringfewernonrenewableresourcesthanwouldbeusedtoproducebagsmadeentirelyfromvirginmaterial.
Theshoppingbagsusedforclothingandgeneralmerchandisealsocontain35%recycledmaterialwhichisalso
harvestedfrompostindustrialwaste,withatargetof100%recycledbagsby2012.

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THEGOODBUSINESSJOURNEYREPORT2010

WoolworthsrecyclesallhangersthroughHangermanwhocollectsallunwantedplastichangersfromstores,sorts
andcleansthem(usingaworkforcethatincludesmanydisabledworkers)andsellsthembacktoclothing
suppliersatadiscount.Wehavebeenabletoincorporateasmuchas50%recycledmaterialinmanyofourplastic
clotheshangersandwemakesomeofournewplastichangersoutofolddamagedones.
Ourentirefleetoftrolleysandallinstoreshoppingbasketswillbemadefromrecycledmaterial86%ofthis
fleetiscurrentlymadefromrecycledmaterial,frompostindustrialsources.
Over30%ofourinstoresignageismadefromrecycledmaterialboardmadefromrecycledfibreandvirginpulp
aviable,ecologicalalternativetothestandardplasticcommonlyusedinsignage,bothfullyrecyclableand
repulpable.Inadditionthechemicalsusedinproductionareallwaterbased.

HEALTHYEATINGANDLIFESTYLEPROGRAMMES
TheGoodFoodJourneyisthenamewevegiventoourongoingquesttoofferSouthAfricafoodthatsbetterfor
ourcustomers,betterfortheenvironmentandbetterforthepeoplewhoproduceit.Itencompasseseverything
fromnotusingadditivesliketartrazineandMSGinourfoods,switchingtomorenaturalflavourants,andoffering
moreorganicandfreerangechoices,tocaringforthewelfareofanimalsandpromotinghealthyeatingaspartof
ahealthylifestyle.
Woolworthspioneeredthepracticeofdatemarking(sellbyandbestbeforeorusebydates)inSouth

Africa,givingcustomersanindicationofwhenfoodwouldbeatitsbest;
thecompanyfocusesonavoidingtheuseofunnecessaryadditives(includingpreservatives)infoods;
WoolworthsdoesnotsellwholeeggsfromcagedhensandourexclusiverangeofAyrshiredairyproductsin

additiontoallfreshmilkisguaranteedfreeofrBSTgrowthhormones;
inrecentyearsWoolworthshasremovedhydrogenatedvegetableoils(HVOs)fromitsfreshpreparedfoodand

hasremovedover35tonsofsalt(basedonaverageannualsales),primarilyfromitsbreads,cerealsandcold
meats,andsome79tonsofsugarfromitschilled100%fruitjuicesandnectars;
Woolworthsoffersyoghurtsmadewithnaturalflavoursandcolours,containingnoaddedpreservativesandno
artificialsweeteners.Inaddition,allWoolworthsyoghurtsaremadewithrBSThormonefreemilk.Woolworths
yoghurtscontainexclusiveHOWARUprobioticculturestohelpstimulatetheimmunesystemandassistin
lactosedigestion;

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THEGOODBUSINESSJOURNEYREPORT2010

Woolworthsactivelyremovesandavoidstheuseofallergensandotheringredientsofconcerntocustomers,

wherepossible.NotartrazineoranyformofglutamatemaybeusedtoproduceWoolworthsfoods;
WoolworthswasthefirstSouthAfricanretailertoremoveaspartamefromitsfoods.Woolworthshasalso
removedthesweetenerssaccharinandcyclamatefromitsownbrandfoods.
WoolworthspioneeredallergenlabelinginSouthAfricabyintroducingnutlogosandacontainssection
(laterchangedtotheallergensection)onproductlabels;and
wherewecandoso,wewillprovidechoicewithinourrangesforcustomerswhowishtoavoidparticular
ingredients,e.g.specificglutenfreeproducts,mealsolutionsnotcontaininggarlic,etc.

Removalofazodyes
FromApril2010Woolworthsbrandedfoodsnolongercontainazodyes,atypeofartificialcolorantfrequently
usedtocoloursweetsandotherbrightlycolouredfoodstuffs.
ItslargelyduetorequestsfromcustomersthatWoolworthshasremovedazodyes.
TheremovalofallazodyeshasbeenthebiggeststepwevetakensinceweremovedtartrazineandMSGfromour
Woolworthsbrandedfoods.
ProductswhereazodyeshavebeenremovedincludecandycoatedEastereggs,jellysweets(includingjellybeans,
winegums,rondosandwigglyworms),aswellascupcakesandfruitnectarsquashdrinks.

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THEGOODBUSINESSJOURNEYREPORT2010

CLIMATECHANGEANDENERGY

COMMITMENTSANDPROGRESS

Commitment
2010
2009
By2012
Reducerelativecarbonfootprintby30%by:
reducingrelative
18%relativereduction
12%relativereduction
30%relativereduction
electricityusageby30%
regionalfoodsourcing
Wesourceover95%ofourfoodfromSouthAfrica,basedoncountryoforigin
labeling.
restrictingairfreightof
Wehaveidentifiedthatlessthan0.1%ofourfoodisairfreightedandensurethat
ourfoodproducts
weonlyusethisformoftransportwherelocalalternativesarenotavailable.
reducingrelative
SeeSustainabletransportstrategyanddistributableunit(DU)measuresbelow
transportemissionsby
.
20%
DU/litre
8.93
8.56
9.7
DU/km
4.16
3.98
4.44
Refrigeration
FirstCO2refrigerant
Newpilotrefrigeration Rolloutnewrefrigeration
pilotstorelaunched.
technologyrolledoutto technologyretrofittoall
largestoresin2010/11.
newstores.
Ecofridgetruck
refrigerationlaunched.
Frozenfoodsdisplayed
Wasteheat,recycled
inclosedrefrigeration
fromtherefrigeration
cabinetsthishasbeen
system,ispumpedback
thepracticeforovera
intothefoodmarket,
decade,reducing
helpingtomaintain
energyusageinthe
comfortabletrading
freezers.
conditions.
Therefrigerationin
Woolworths
distributioncentrein
Gautengrunsonan
ammoniaglycolmix
whichhaszeroglobal
warmingpotential.
Lighting
Theelectricalprofilesof
Alllightfittingsinstores Automatedlightingrollout
complete.
allstores,depotsand
changedtoenergy
officesaremonitored
efficientfittings.
remotelytoensurethat
Changedtoelectronic
lightingandair
ballasts,inplaceof
conditioningunitsare
magneticchokesin
managedinthemost
stores,depotsand
efficientway.
offices,resultingina
15%savinginlighting
Automatedlight
costs.
switchingequipment
hasbeeninstalledinour
Woolworthsonlysells
top140storestoensure
energyefficientlight
thatlightsdonot
bulbsandoffers
remainonafterhours.
recyclingfacilitiesfor
theseinselectedstores.

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THEGOODBUSINESSJOURNEYREPORT2010

Trialedrangeofnewstore Launchourgreeneststore
Greenelements
todatebyend2010,and
designandtechnology
includedinthe
putplaninplacetomake
specificationsofallnew initiativesinDCsand
allfacilitiesmoreenergy
stores.
stores.
efficient.
Finalisinggreeneststore
todateforlaunchend
October2010Palmyra
Road,CapeTown.
Solarheatinginstallations Investigatecleanenergy
Cleanenergy
Solarheatingusedto
commitmentsappropriate
supplementheatingin atMidRandDC.
toourbusinessinthelight
newgreenstores.
ofnewlegislation.
Wastetoenergymodels
beinginvestigated.
Allconventionalfarmers
FFFresearchcompleted
Workwithsoilscientists FarmingfortheFuture
meetFFFstandards.
withover100produce
toregularlymonitorour (FFF)programme
suppliers.
launched.
farmerssoil
sustainability,increasing
itsCO2absorption
abilities

Thepastyearhasseenevengreaterfocusonclimatechangeandenergyissues,bothinternationallyandinSouth
Africa,followingwhatwasformanyanunsatisfactoryoutcometotheCopenhagennegotiations,andsignificant
energytariffincreaseslocally.
GreenStores

Woolworthsrecognisesthatclimatechangeisamajorissuethataffectstheretailsectorbothdirectlythroughthe
operationswerunandindirectlythroughoursupplychainsandtheuseofourproductsandservicesby
customers.ClimatechangeposesbothrisksandopportunitiestoallpartsofthebusinesssectorandWoolworths
believesinplayingitspartinincreasingenergyefficiencyandreducingcarbonemissionstotheatmosphereas
oneofthefourpillarsoftheGoodbusinessjourney.

CARBONMANAGEMENTPROGRAMME

Woolworthsiscommittedtoengagingwithournationalgovernmentandcivilsocietyorganisationstodevelop

policiesandmeasuresthatwillprovideanenablingframeworkforthebusinesssectortocontributeeffectively
tobuildingalowcarboneconomy.
Woolworthssupportslongtermregulatoryactionaroundthesettingofclearmediumandlongtermemission
reductiontargets,aswellasadoptinggoalsandincentivesforrenewableenergyproduction.
Wewillengagewithoursuppliers,staffandcustomerstocreateanunderstandingoftherisksand
opportunitiesofclimateimpacts.
Woolworthshasconductedawarenessprogrammes,campaignsandpresentationsatstoresforthelast25
yearstoeducatestaffaboutefficientuseofenergy,andanewprogrammewaslaunchedinearly2010,witha
newenergysavingmascotSparky.
Woolworthscarbonfootprinthasbeencompletedandverifiedbyexternalexperts.
Woolworthsiscommittedtoreducingitsrelativecarbonfootprintby30%by2012(benchmarkApril2007).
Woolworthswillcontinuetoassesstheviabilityofprocuringenergyfromcleansources.

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THEGOODBUSINESSJOURNEYREPORT2010

Productsandservicesempoweringourcustomers
Mobilisingourcustomerstomakelowcarbonchoicesintheirlifestylesisthemostambitiouspartofour

overallcarbonstrategy.
Wepromote30Cwashingtemperaturesforclothingandsellarangeofdetergentsthatallowsforwashingat
lowtemperatures.Thisisanimportantstepbecausearound75%ofthecarbonfootprintofclothingcanresult
fromwashing,dryingandironing.

Woolworthsmembershipsandawards
WoolworthssignedtheEnergyEfficiencyAccordwiththeMinisterofMineralsandEnergyin2006andis

workingtowardsachievingtheNationalEnergyEfficiencyStrategytargets;
WoolworthswaschosenasthewinneroftheretailcategoryintheSouthAfricanCarbonLeadershipAwards
2010
WoolworthswasrankedsecondoverallintheCarbonDisclosureLeadershipindexaspartofthe2009Carbon
DisclosureProjectforSouthAfrica.(Wewererankedfirstinthelowcarboncategoryin2008.)

SUSTAINABLETRANSPORTSTRATEGY

Wehavelookedatourentiredistributionprocesstomakeitassociallyandenvironmentallyresponsibleas
possible.Someofourinitiativesinclude:
ArouteoptimisationprojectinconjunctionwiththeImperialgrouphasresultedinareductionofkmstraveled

andcostsavings;
Woolworthsisrunningapioneeringprojectthatseesa5%recycledcookingoiladdedtothefuelmixusedin

95%ofWoolworthstrucks.Theresultingfuelmixemitssubstantiallylessgreenhousegasessuchascarbon
dioxidethantraditionalfuelssuchasdieselandpetrol,resultinginasavingof1500tonsofCO2perannum;
reducingfuelconsumptionthroughtheuseofEuro5technologyinconjunctionwithImperial.5newvehicles
arebeingusedtotrialthisprogramme.Euro4technologyisonlyrequiredby2014intermsofcurrentSA
legislation.TheEuro5trucksarebeingequippedwithBluetectechnologywith80%fewerparticlesand60%
lessnitrousoxideanda25%fuelsaving,estimatedat600000litresofdieselperyear;
improvingrefrigerationthroughtheecofridgeproject.Byusingnitrogenrefrigerationinourfleet,we
estimateanapproximatesavingof3000tonsofCO2perannum,throughdieselreductions,aswellas
efficiencybenefitsandnoisereductions.Thefirstfourunitsarecurrentlyontheroad;
Woolworthsusesreusableplasticlugstotransportproducttoandfromourstores,ratherthancardboard
boxes.Theselugsarerecyclableandreduceourconsumptionofnaturalpaperbasedresources;and
transitpackagingthatusedtoprotectclothesduringtransport,aswellhangersarecollectedbystoresand
sentbacktothedistributioncentresforrecycling.

AnillustrationofWoolworthscommitmenttosustainabilityateverylevelofthebusinessistheWoolworths
Midranddistributioncentre(DC).Everyaspectofthedesignandconstructionofthe78000m2facilityhasbeen
subjecttoscrutinyfromasocialandenvironmentalperspective,ensuringthatWoolworthsminimisestheimpact
onthesurroundingenvironmentandcommunities.

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THEGOODBUSINESSJOURNEYREPORT2010

ENERGYUSAGE

Totalenergyusageforallcorporatestores,headofficebuildingsanddistributioncentres:319440317kWh
(2009:294152197kWh).Thesefiguresarenotdirectlycomparableduetotheincreaseinnumberofstoresyear
onyear;hencearelativemeasureofkilowatthourpersquaremetreismonitored.
Ourrelativeenergyusagewas533kWh/m2for2010(2009:576kWh/m2).Thisisan18%decreasefromthe2004
benchmark,attributedlargelytothelighting,designandrefrigerationtechnologiesdescribedabove,and
awarenesscampaignstoencourageemployeestouselessenergy.Weintroducedanewawarenessprogramme
tohelpourstaffmemberstosaveenergyatworkandathome,andourenergymascotSparkyhasbecomea
popularfigureinourstoressystemwithhisenergysavingtips.

CARBONFOOTPRINT

Acarbonfootprintcalculationwasconductedonheadofficebuildings,distributioncentresandcorporatestores
byWoolworthsandindependentlyverifiedbyGlobalCarbonexchangeusingtheGreenhouseGasProtocol
CorporateAccountingandReportingStandard.
Totalemissionsare11%higherinthisreportthanforthepreviousyear.
TheScope1and2emissionsonlyarealso11%higherinthisreport.
Thekeyreasonsforthismaybeattributedtothefollowing:
theopeningofnewstores,especiallyfoodstandalonestoreswhichhaveafarhigherkWh/m2oftradingspace

thananaveragefulllinestoreandstorerefurbishmentsandexpansions;and
theongoingexpansionofcategoriesofScope3emissioninthecurrentfootprint.

Page|41

THEGOODBUSINESSJOURNEYREPORT2010

Comparativeinformation:

Scope

Source

Scope1

Companyownedvehicles
Stationaryfuels

Fugitiveemissions
Subtotalscope1
Scope2
Electricityusage
Subtotalscope2
Subtotalscope1

and2
Scope3
Employeecommute

2007
Companytotal
(CO2eqtons)
27872.00
455.70

Reportingyear
2008
2009
Companytotal(CO2eq Companytotal(CO2eq
tons)
tons)
32378.20
68.79
228.90
293.26

20896.60
49224.30
290466.00
290466.00
339690.30

26275.60
58882.70
288229.10
288229.10
347111.80

27343.78
27705.83
329023.53
329023.53
384435.19

DidNotReport
(DNR)
2288.00

32554.70

31119.00

1923.10

7434.73

Businesstravelcarrental

DNR

DNR

90.50

Businesstraveltaxis
(inclshuttle)

DNR

DNR

23.84

Distribution(3rdparty)

DNR

22248.50

24507.71

Water

DNR

DNR

117.67

DNR

4317.40

4582.24

N/A
341978.30
DNR
341978.30

61043.70
408627.40
DNR
408627.40

67875.69
452310.88
17610
469920.88

Businesstravelflights

Waste(materialslife
cycle)
Subtotalscope3
SubtotalSA

CountryRoad

Total

GREENSTORES

Woolworthshasdevelopedasustainablebuildingstrategywhichincludesalistofprinciplesandexamplesofhow
theycouldbepracticallyapplied.Allprofessionalteamsinvolvedinourbuildingdevelopmentsarerequiredtouse
theseguidelinesinbuildingdesignanddevelopment.
Woolworthsconsidersthefollowingmeasureswhenconsideringnewrealestateopportunities:

naturalventilationincludingopenablewindowstoofficesandcrossventilation;
energyefficientlightingandtheuseofaBuildingManagementSystemforlightswitching;
solarpoweredwaterheating;
reuseheatgeneratedbyplantandmachinerytoheatbuildingsincoldperiodsoftheyear;
LEDlightingforexteriorsigns;
CO2refrigerationsystem;
underfloorheatinginthefoodmarketusingwasteheatandheatpumpsandheatreclaimsystemforfood
marketandcooling;
naturallightingviaexhaustextractionvents;

Page|42

THEGOODBUSINESSJOURNEYREPORT2010

reductioninspotlightingandfluorescentlightingasaresultofdaylightusage;
greywaterrecyclingsystem;
dualflushtoilets;
electronicpulsemetersinstalledonallwatermeters;
recyclingfacilitiesforcustomers;and
cardboardshelvingandbulkheads.

WesupporttheactivitiesoftheGreenBuildingCouncil,andwillbeinvestigatinghavingourfacilities
independentlyassessed,inlinewiththedevelopmentoftheGreenstarretailratingtools.

IndependentVerificationStatement
TotheBoardofDirectorsandManagementofWoolworths(Pty)Ltd
Introduction:
GlobalCarbonExchange("GCX")wasengagedbyWoolworths(Pty)Ltd("Woolworths")toperforman
independent,limitedlevelverificationoftheWoolworths'GreenhouseGas(GHG)emissionsinventoryassertion
("theAssertion"),fortheperiodJanuarytoDecember2009.ThisinventorywascalculatedbyFutureMeasureand
wasreportedonintheWoolworths'GreenhouseGasEmissionsReport2009(Draftdated22May,withrevisions
dated18June)("theReport*).TheVerificationwasperformedbetween17May2010and18June2010.
Objectives,PerformanceCriteriaandScope
TheISO140643InternationalStandardguidedtheverificationperformedbyGCX.
TheAssertionverifiedwasforthefollowing:
Thatthe2009GHGinventoryforWoolworthswasdevelopedinaccordancewithcommonindustrypractice,

includingtheWRIWBCSDGHGProtocolCorporateAccountingStandards.
ThatthecalculatedGHGemissionsfor2009were452311tonnesofCO2e.

TheverificationtaskwastoformanopinionatalimitedlevelofassuranceabouttheaboveAssertion,regarding:
ConformancewiththegeneralrequirementsoftheGHGProtocolCorporateAccountingStandard.
Reasonablenessofthecalculatedemissionsinventoryfor2009.

Page|43

THEGOODBUSINESSJOURNEYREPORT2010

COUNTRYROAD

BACKGROUND

CountryRoadwasestablishedin1974andhasevolvedintooneofAustraliasbestknownlifestylebrands,
offeringcustomersarangeofownbrandproductsinWomenswear,Menswear,Childrenswear,Babywear,
AccessoriesandHomeware.RoadCountryiscommittedtoexcellentqualityandprovidingcustomerswith
productsthatarefashionable,stylish,spirited,smartandprofessional.
Thecompanyemploys2200peopleandoperates66firststoresacrossAustraliaandNewZealand(56and10
respectively),84concessionoutletsand7secondstoresinAustralia.CountryRoadoperatesanadditional16
concessionstoresinWoolworthsstoresandtwostandalonestoresinSouthAfrica.Withthe2009launchofits
newbrandTrenerybrand,18TreneryconcessionstoreshavebeenopenedinWoolworthsstoresand9stand
aloneTrenerystoresinAustraliaandNewZealand.

CSRHIGHLIGHTSFORTHEYEAR

Inthe2008/9CSRReview,CountyRoadcommittedtoachievingtheoutcomeslistedbelowin2009/10.Weare
pleasedtoreportthateachofthesehasbeenachieved.

establishstatefundraisingcommitteestofurtherengageemployees;
launchKitetimewithRedkitetoincreaseemployeevolunteering;
launchacommunitypartnershipinNewZealand(withRedCross);
consolidateourrelationshipwithRedCrosstosupporttheirReduce,Reuse,Recyclephilosophy;
reduceourenvironmentalimpact,byachievingour2yearNationalPackagingCovenantActionPlan;
measureenvironmentalimprovementsandfurtherminimiseourcarbonoutputsinlinewithlegislative
guidelines;
ensurevendorsaresignatoriestotheCountryRoadCodeofLabourPractice;and
ensurecompliancetoourlabourauditstrategyofthevendorbasetomanagerisk.

Additional2009/10milestonesinclude:
launchedFashionTrade,aclothingexchangeprogrammethatraisesmoneyforRedCrossandreducestextiles

wastetolandfillbyrewardingourcustomers;
developeda3yearCSRstrategy,measuresandtargetsaimedatenhancingoursupporttothecommunityand

minimisingourdirectimpactontheenvironment;
increasedemployeeandcustomerfundraisingandreusablecottonbagsales;
launchedfirstcommunitypartnershipinNewZealand,withRedCross;
launchedSustainablePackagingPolicyandGuidelinefordesignersandsuppliers;
undertookcarbonassessment,whichreportedgoodreductionintotalcarbonfootprint(against2007/8
baseline);
achieveda3.9rating(outof5)forfirstCountryRoadAustralianPackagingCovenantAnnualReport;
receivedaFairandFlexibleEmployerRecognitionAwardfromWorkforceVictoria;
becameaCitySwitchSignatory,committingtoimproveheadofficeenergyefficiency;and
launchedanEnvironmentalCodeofPracticefortheDyeing,PrintingandFinishingofGoodssuppliedto
CountryRoad.

Page|44

THEGOODBUSINESSJOURNEYREPORT2010

CSRstrategyandphilosophy
CountryRoadsphilosophyandpracticeshaveconsistentlydemonstratedacommitmenttoresponsiblebusiness.
In2008,CountryRoadlaunchedaninternalCSRFramework,theCRSEE,whichencompassesthefollowingvision:
CorporateandSocialResponsibilityatCountryRoadisabouttakingaconsideredapproachtothewaywe
conductbusiness.Throughourbrandandpeople,wewillinnovateandcreatesocial,ethicalandenvironmental
changesintheworldwelive.
TheCRSEEFrameworkconsistsorfourfocalareas:thecommunity,theenvironment,ethicalsourcingandour
people.
In2009/10,3yearmeasuresandtargetswereestablishedwiththeaimtodriveperformanceineacharea,and
willbeintegratedintotheCorporateStrategyanddivisionalplansin2010/11.
Stakeholderengagement
Understandingandrespondingtotheexpectationsofourstakeholderscustomers,employees,shareholdersand
othersisintegraltohowwedobusiness.
In2009/10,wedevelopedastakeholderengagementframework,whichaimstoimprovesustainability
communication(internallyandexternally)andriskmanagementandidentifynewinnovativeideas,byactively
seekinginputfromkeystakeholdersonourCSRstrategyandprocesses.Thisengagementincludes:
anemployeeopinionsurveywhichincludesquestionsonCSR;and
annualmarketresearch,whichincludesanumberofquestionsaboutcustomerviewsonCSR.

COMMUNITYENGAGEMENT

CountryRoadiscommittedtosupportingthecommunitiesinwhichweoperate.TheCompanyhasaCommunity
Policyinplace,whichoffersemployeesvolunteeringleaveandtheopportunitytoparticipateinworkplacegiving.
Inaddition,theCompanyprovidesasignificantannualcorporatesocialinvestment,whichiscomparabletoour
industrycounterpartsandguidedbyouremployeescommunitypriorities.

Aftersupportingachildrenscharitywasidentifiedasthetopcommunitypriorityforouremployees,Country
Roadenteredintoa3yearpartnershipwithRedkitein2008,oneofAustraliasleadingchildhoodcancersupport
charities.
AstheMajorProgrammePartneroftheRedbag,CountryRoadwillinvest$330,000overthreeyearstofundthe
RedbagProgramme,whichprovidesspecialsupportpackstofamiliesatdiagnosis.
Partofthesefundsareprovidedthroughemployeeandcustomerfundraisingthelatterconsistingofprofits
fromthesaleofourreusablecottonbagsandgoldcoindonationsfromcustomerswhohavetheirChristmas
presentswrappedinstore.

Page|45

THEGOODBUSINESSJOURNEYREPORT2010

In2009/10,totaldonationstoRedkiteincreased6.8%,duetoanincreaseinemployeeandcustomerfundraising.
SummaryCSI

Measure

TotalinvestmenttoRedkite
CorporatedonationtoRedCrossHaitiAppeal
CorporatedonationforDoxacadetssuits
Productdonations
No.Redbagspacked

RedCrossFashionTrade

2009/10Actual

$131,845
$10,000
$4,992
$129,187
600

2009/10
Target
$118,000

N/A

2008/9Actual

$123,396

$132,457
195

In2010,CountryRoadandRedCrosspartneredtolaunchFashionTrade,aclothingdonationprogrammethat
aimstoraisemoneyforthecommunityandreducelandfill,byencouragingcustomerstorecycletheirpreloved
clothingandaccessories.Customersdonateclothingoraccessories(thatincludeatleastoneprelovedCountry
RoadorTreneryitem)toRedCrossretailstores,andreceivea$10discountcardthattheycanredeemwhenthey
spendover$50atCountryRoadstores.RedCrossinAustraliaandNewZealandreportthatthemajorityofthe
itemshavebeenofexcellentqualitywhichincreasesthelikelihoodofresale:theunderlyingpurposeofFashion
Trade.
ThePartnershipisalsoourfirstformalcommunitypartnershipinNewZealandandhasreceivedaphenomenal
responsefromourNewZealandemployeesalreadywithafriendlycottonbagsalecompetitionemerging
betweenstores.
ThePartnershipalsooffersarangeofvolunteering,mentoringandfundraisingopportunitiesforCountryRoad
employeesinbothcountries,throughRedCrossretailstoresandvariousothercommunityprogrammes
includingdisasterrelief,schoolnutritioninitiativesaswellasyouthandAboriginalandTorresStraitIslander
programmes.

Page|46

THEGOODBUSINESSJOURNEYREPORT2010

MySchoolSouthAfrica
AllCountryRoadandTrenerystandalonestoresandconcessionsinSouthAfricaparticipateinMySchool,runby
Woolworths,allowingcustomerstousetheirMySchoolsupportercardswhenevertheymakeapurchase.Country
RoadorWoolworthsthendonatesasmallpercentageofeachpurchasetothecustomer'schosenschoolor
charity.SincethelaunchofCountryRoadsfirststandalonestoreinDecember2009,theCompanyhas
contributedR41,284(A$5,898)toSouthAfricanschoolsandcharitiesviaMySchool.
Volunteering&WorkplaceGiving
DuetoincreasingparticipationinfundraisingactivitiesbyCountryRoadretailteams,CommunityCommittees
havebeenformalisedineachStateandNewZealand.Theseteamswillberesponsibleforleadingfundraising,
volunteeringandotherrelatedeventswithretailteams.
Volunteeringnumbersincreasedin2009/10,duetotheimplementationofKitetime,aRedkiteinitiativewhich
encouragesemployeestotakeanhouroffworktospendtimewiththeirlovedonesandinturn,makeadonation
toRedkiteinAustraliaorRedCrossinNewZealand.However,thenumberofemployeesparticipatinginongoing
workplacegivingremainslow,soincreasingparticipationwillbeafocusin2010/11.

PEOPLESTRATEGY

CountryRoadremainscommittedtoattractingandretaininganinspired,committedandhighperforming
workforce,whileprovidingahealthyandsafeworkingenvironment.SuccessthroughPeopleformsthebasisof
theCompanyStrategicPlanandperformanceagainstPeoplemeasuresisassessedquarterlybytheExecutive
Committee.
DefiningcareerpathsforstaffwithinCountryRoadisakeyfocus.NumberofInternalAppointmentsisakey
measurecapturedwithinthestrategicplanandreportedonaquarterlybasis.Formalsuccessionplanning
meetingsareconductedbiannuallycoveringstoremanagementpositionsthroughtoexecutivelevel.In2009/10
15employeeswereselectedtoparticipateintheManagementDevelopmentProgrammeand12wereselectedto
jointheLeadershipDevelopmentProgramme.
EveryemployeeworkingatCountryRoadparticipatesinaperformancebasedincentiveprogrammefromstore
teammembers,storemanagers,headofficethroughtotheexecutiveteam.CountryRoadprovidesapaid
ParentalLeaveschemeoffiveweeks'paywithafurtherbonusonreturntoworkofthreeweeks'paywithmany
flexibleworkingoptionsavailableonreturn.FurthermanyCountryRoademployeesaccessfairandflexiblework
practices.

In2009/10CountryRoadreceivedaSpecialCommendationattheVictorianGovernmentFairandFlexible
EmployerAwards,forourinnovativeapproachtofairandflexibleworkpractices.
CountryRoaddemonstratesourcommitmenttoprovidingandmaintainingasafeandhealthyenvironmentfor
anyonewhoassociateswithusstaff,customers,ourcontractors,suppliersandvisitors.Weregardcompliance

Page|47

THEGOODBUSINESSJOURNEYREPORT2010

withlegalrequirementsasanabsoluteminimumstandard.Ourgoalistoactivelypromotewellbeingandsafety
bymaintainingtheveryhighestsafetystandards.
EqualEmploymentOpportunityappliestoallemploymentpracticesincludingrecruitment,selection,promotion,
redundancy,conditionsofemployment,traininganddevelopment.EachyearCountryRoadsubmitsanEqual
OpportunityforWomenintheWorkplaceAgency(EOWA)reportandinaccordancewiththeguidelines,we
reportonthefollowingareas:

CountryRoadspoliciesandconditionsofservice;
HRstatisticalinformation,e.g.labourturnoverreports;
reviewoftheworkplaceprofile;and
EmployeeOpinionSurveyresults.

Bothin2008/9and2009/10,86%oftheCountryRoadworkforcewerewomen

ENVIRONMENTSTRATEGY

CountryRoadiscommittedtounderstanding,managingand,wherepossible,reducingtheenvironmentalimpacts
ofouroperations.ThisenablestheCompanytoaddresstheexpectationsofourcustomersandemployees
maintainingtrustinourbrandandprotectshareholders'interests,byrespondingproactivelytoachanging
regulatoryenvironment.
Theenvironmentstrategyaimstoreduceimpactsinthreefocusareas:packagingandwaste;energyuseand
carbonemissions;andresponsiblesourcing.TheseareaswereselectedduetotheextentoftheCompanysdirect
impactanditsabilitytoreducetheirimpact.AlthoughwaterisnotacorematerialimpactforCountryRoaddue
totherelativelylowlevelsweutiliseweareimplementingmeasurestobettertrackandreduceconsumption
wherepossible.
Packaging&Waste
In2008,CountryRoadbecameaSignatorytotheAustralianPackagingCovenant(APC),anationalinitiative
betweenthegovernmentandpackagingsupplychain,focusedonreducingtheamountofusedpackagingthat
reachedlandfill.AsanAPCSignatory,CountryRoadsubmittedadetailed2yearActionPlan(20082010),which
included18performanceindicatorsfocusedonthefollowing:reviewingourconsumerpackaging;workingwith
ourvendorstoimprovethesustainabilitycredentialsofourpackagedgoodsinHomewareandAccessories;and
reviewingimprovingourapparelpackagingwherefeasible.
78%oftheActionPlanwascompletedin2009(theresultsofwhicharesummarisedintheCountryRoad2008/9
CRSEEReview)andtheremaining22%wascompletedin2009/10.2009/10achievementsinclude:
aSustainablePackagingPolicyandGuidewasdevelopedinlinewiththeAustralianPackagingCovenant

SustainablePackagingGuidelinesandhasbeencommunicatedtodesignteamsandproductvendors,inthe
aimtointegratesustainabilityprinciplesintopackagingdesign;
whendevelopingshippingcartonsforCountryRoadsnewonlinestore,weworkedwiththeproduction
companyonthesustainableprofileoftheseboxes.Alloftheboxesaremadefromrecycledmaterialandare
fullyrecyclable;
aninternalauditdeterminedthat92%ofCountryRoadstakehomepackagedgoodsarerecyclableand95%of
storesrecyclecardboardand42%ofcentrestoreshaveaccesstoplasticrecyclingfacilities;
aplasticbagrecyclingprogrammewassuccessfullypilotedinsixcentrestores;
reusablecottonbagsalesincreased107%,resultingina$17,759donationtoRedkite;

Page|48

THEGOODBUSINESSJOURNEYREPORT2010

reusablebagswereintroducedintoNewZealandstores,ofwhichprofits($1per$5bag)willbedonatedto

NewZealandRedCross;
theheadofficerecyclingrateremainedthesameaslastyear,at43%(upfrom32%2008baseline);
acomprehensivewasteauditwasundertakenforstripstores,whichhasprovidedadetailedbaselinefortotal
stripstorewaste,aswellasthewastepackagingandrecyclingbreakdown.actionstoimprovewaste
managementhavebeenidentifiedandwillbeimplementedin2010/11;
aprocesstoimprovehangerreuseandrecyclingisbeingimplementedbyourSourcing,SupplyChainand
OperationsDivisionstobuildonthesuccessfulpilotproject,whichreduced4.6tonsofplasticfromreaching
landfill;and
alltakehomeconsumerpackagingthatisrecyclablecontinuestobelabeledtosupportcustomerawareness
aboutrecyclingandCountryRoadpublicdocumentsareprintedoneitherFSC,orPEFCVcertifiedpaper.

Energyandcarbon
AsecondcarbonauditwascompletedforCountryRoadin2009/10,showingpositiveprogressagainstthe
Companys2007/8baselineresults.OpportunitiestofurtherimprovetheCompanysenergyefficiencyandreduce
directcarbonemissionshavebeenidentifiedandwillbeexploredfurtherin2010/11.Measuresandtargetsto
improveenergyefficiencyandreducecarbonemissionswerealsodevelopedin2009/10andwillbeintegrated
intorelevantdivisionalplansin2010/11.Resultswillbereviewedbytheboardannually.
Tosupporttheachievementofthesetargets,CountryRoadrecentlysigneduptoCitySwitchaleadinglocal
governmentprogrammethatsupportscompaniestoimproveofficeenergyefficiency.
ResponsibleProcurement&SustainableRawMaterials
WoolSourcing:CountryRoadhastakenaproactiveapproachtowardssourcingasustainablesupplyofnon
mulesedwool,byengaginginongoingconsultationwithwoolindustrygroupsandrelevantindustrybodies.
CountryRoadiscommittedtogeneratingrealchangeinthisarea,byencouragingtheadoptionofcommercial
alternativestocurrentindustrypractices.Ourwinter2010LambswoolandMerinokeyvolumeprogrammesfor
bothCountryRoadandTrenerybrands,weresourcedfrombothnonmulesedandceasedmulesedwooltop.
Movingforward,weaimtoworkwiththeindustrytofeasiblyandincrementallyincreasetheproportionofour
woolproductsthatcomefromnonmulesedsources.
Officesupplies:CountryRoadprocuresthemajorityofitsofficesuppliesfromCorporateExpress,whowasnamed
the2008SustainableCompanyoftheYearatthe8thAnnualAustralianSustainabilityAwards,andoffersabroad
rangeofEarthSaverproducts.In2009/10,51%oftheproductswepurchasedfromCorporateExpresswere
fromtheEarthSaverrange.
Paperuse:AsurveyofCountryRoadsAustralianandNewZealandpaperuserevealedthatweused
approximately30,600kgofofficepaperin2009/10,21%ofwhichwas50%recycledpaper.Sincethesurvey,the
proportionof50%recycledpaperhasincreasedto39%oftotalofficepaperuse.Thechangeresultedina
reductionof2.3tonsofvirginpaper.
Water:Watertankswithacapacityof39,000litreswereinstalledatheadofficein2008,whichsaved600,000
litresofwaterin2009/10(up50%from401,000litresin2008/9).

Page|49

THEGOODBUSINESSJOURNEYREPORT2010

ETHICALTRADESTRATEGY

CountryRoadsourcesclothingandaccessoriesfromvariouscountries.Indoingso,theCompanyconsidersthe
socialandethicalimplicationsofthemanufactureofCountryRoadproducts.TheCompanysapproachto
addressingthisistoimplementandauditlabourstandardsforproductvendorsandincrementallyintegrate
environmentalstandardsforproductvendorsandsustainabilityprinciplesintootherprocurementareas.
HumanRights&Labourstandardsforvendors
AllCountryRoadprimaryvendorsarerequiredtobesignatorytotheCountryRoadCodeofLabourPractice
(CoLP).TheCoLPisbasedontheInternationalLabourOrganisation(ILO)conventions.Signedcodesare
consistentlymonitoredandupdatedbyourSourcingDepartmentandthemajorityofvendorsareaudited
annuallyagainsttheCoLPbyathirdparty.
EnvironmentalandChemicalstandardsforvendors
In2009/10,CountryRoadlaunchedtheEnvironmentalCodeofPractice(ECoP)fortheDyeing,Printingand
FinishingofGoodssuppliedtoCountryRoad,whichaimstoensurethatwithinexistingtechnology,nomaterials,
dyesorchemicalsusedintheproductionofgarments,fabrics,leatherand/ortextilerelatedproductspresentan
unacceptablerisktohealthortheenvironmentduringtheirmanufacture,useordisposal.Primaryvendorswillbe
requiredtobesignatorytotheECoPandprimaryvendorswillberesponsibleforensuringthatboththeirown
facilitiesandthoseoftheirthirdpartysuppliersareadheringtotheECoP.
ProductSafety
CountryRoadhasanobligationtoensurethatallproductsofferedforsaleareassafeascanreasonablybe
possibleforthepurposeofwhichtheyareintendedandmustcomplywithcurrentAustralian&NewZealand
legislationaswellasworld'sbestpracticeasfaraspossible.

FOCUSFOR2010/11

In2010/11,CountryRoadaimstointegrateits3yearCRSEEStrategyintothebusinessandenhancestakeholder
communicationtoemployeesandcustomersinameaningfulandgenuineway.IneachspecificCSRfocalarea,
theCompanyaimstoachievethefollowing:
Community
increaseemployeeandcustomerfundraisingandvolunteeringthroughCommunityCommitteesandtheCRSEE

RetailAward;
continuefinancialcommitmenttoRedkiteandundertakeapartnershipreview;
growFashionTrade,byincreasingthenumberofqualityitemsdonatedtoRedCrossinAustraliaandNew
Zealandand,inturn,increasetheirretailrevenue;and
continueMySchoolcontributionsinSouthAfrica.

EthicalTrade
RollouttheCountryRoadECoPtoallprimarymanufacturingvendors.

Page|50

THEGOODBUSINESSJOURNEYREPORT2010

Environment

implementplantoincreaseenergyefficiencyinstores,andatheadofficethroughCitySwitch;
submitsecondPackagingandWasteActionPlantotheAustralianPackagingCovenant;
maintainpositiononmulesing;and
increaseresponsibleprocurement.

Page|51

THEGOODBUSINESSJOURNEYREPORT2010

GRIINDEX

Good
business
Assurance
Priority
journey
I=Interna
(High=6, reportsection
l
Medium= orAnnual
E=Externa Statu 5,
report(AR)
GRIrefno l
s
Low=3/4) reference
EC1,EC9
E
M
AR

Factor
description
Economic

Subitem
description
Economic
value

Financial
implications

Understandingand EC9
describingsignificant
indirecteconomic
impacts
(e.g.multiplier
effects)
Boardstructure
4.14.3,
4.7,LA13

Governance Governance
structures

Issuedescription
Economicvalue
generatedand
distributed
disclosureof
informationrelating
todirecteconomic
impact
EC1
Payingsuppliers,
includingpenalty
arrangements
LA1
Comparisonof
standardentrylevel
wagetoSAminimum
wage
Localprocurement EC6

1.2

Mandatefor
sustainabilityand
staffawareness

1.1

Governanceof
sustainability

4.14.4

4.9,4.10

AR

SocialReport

Governance
andEconomic
Report
Climate
Changeand
EnergyReport
Governance
andEconomic
Report

AR
Governance
andEconomic
Report
Governance
andEconomic
Report
Stakeholder
Engagement
Governance
andEconomic
Report

Page|52

THEGOODBUSINESSJOURNEYREPORT2010

Risk
Riskmanagement
management

1.2

1.2

4.144.17

4.12,4.14
4.17,SO5
4.12,4.14,
SO5
SO6

4.8,S02

Managingthe
interfacebetween
risk
Stakeholder Stakeholder
engagement engagementata
businessunitlevel

Stakeholder
engagement

Engagementwith
government

Managingpolitical
donations
Ethicsand
Adherencetothe
organisational Woolworths
integrity

I
I

Sustainability Timelyand
reporting
appropriate
reporting

3.13.8,
3.11

3.13.6

Accounting
andauditing
Accounting
andauditing

3.13

N/A

3.13

N/A

N/A
Disclosureof
financialinformation
overandabovethe
IFRSrequirements

Accessibilityof
2.7
financialinformation
Compliancewith
SO2

Compliance
and
enforcement

Alignmentof
Woolworths
sustainability
reportingtoGRI
Assurance/verificatio
nofsustainability
dataand
Accountingand
auditing
Regulationoftheuse
ofexternalauditors
intheprovisionof
nonauditservices

Integrated

Companywide
SO8,4.12,
compliancewith
4.13EN28,
lawsandregulations PR9

Integrated

N/A

H
H
L
M

AR
Governance
andEconomic
Report
Governance
andEconomic
Report
Stakeholder
Engagement
Stakeholder
Engagement
Stakeholder
Engagement
AR
AR
Governance
andEconomic
Report
AR
Governance
andEconomic
Report
Governance
andEconomic
Report

Governance
andEconomic
Report
AR

AR

AR

AR

AR

AR

SocialReport

Page|53

THEGOODBUSINESSJOURNEYREPORT2010

sustainability sustainability
requirements requirements
forsuppliers integratingrevised
codeofbusiness
principles,
environmentalbest
practicesandBEE
requirements

Social

SocialReport

SocialReport

SocialReport

SocialReport

SocialReport

SocialReport

SocialReport
Transformatio
nReport

SocialReport
Transformatio
nReport

SocialReport

AR

AR

Stakeholder
Engagement

SocialReport

SocialReport

SocialReport

L
L

SocialReport
SocialReport

SocialReport

I
LA45,
HR5

Communicationwith LA45,
employees
HR5

Preventionof
discrimination

HR4,HR10

Workforceprofile

LA12

Discipline

HR5

Performance
andtalent
retention

Employee

LA11/12,
4.14

Trainingfor
functionaland
advanced

LA11/12

Appropriate

LA12

Business
restructuring

LA5

Rewardand
recognition

Linkagesbetween
executivepay

4.5

Employee

Structuresto
manage
employee
relations

Freedomof
association

LA3,EC3,
EC5
Sustainability Systems/trainingfor HR11,
leadership
sustainability
EN26
management

I
I

Workplace
health&
safety

Health&safety
safeconditions

LA67

Health&safety

LA6

Health&safety

LA6

Employee
wellbeing

Health&safety
LA6
LA8
Counsellingor
psychological
supportforthosein
need
Employeewellbeing EN26
workplace
environment

I
I

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THEGOODBUSINESSJOURNEYREPORT2010

Chronic
illnesses

Social
conditionsin
supplychain
Sustainable
products

(buildingdesign)
HIV/Aidsfor
employees

LA8

LA8

HR2,HR6,
HR7

Innovationwrt
sustainability

EN26

Fairtradelabels
andproducts
Nutrition

PR3

PR6

Responsiblelending
practices
Responsibleinterest
bearingproduct
terms
Responsibledebt
collection
Treatmentof
customers

PR6,PR9

PR6,PR9

PR6,PR9

PR5

PR1

PR1

PR3

PR3

PR4

PR4

PR6

PR6

PR6

Otherchronic
illnesses
Socialconditionsin
thesupplychain

Customer
satisfaction

Productsafety Safetyinproduct
design

Safetyinproduct
manufacture
Product
Compliantlabelling
labelling
ofWoolworths
products

Nutritional
information
Productrecall Productrecall(red
alert)

Productrecall(red
alert)response
Ethical
Transparency,truth
advertising
Sustainability Representationof
content
sustainability
concept

Representationof

SocialReport

SocialReport

SocialReport

Chairman's
Statement
andvarious
sectionsof
GoodBusiness
Journey
Report

Environment
Report
Environment
Report
AR

AR

AR

AR
Stakeholder
Engagement
SocialReport

SocialReport

SocialReport

L
L

Environment
Report
SocialReport

SocialReport

Stakeholder
Engegement
Stakeholder
Engegement

Stakeholder

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THEGOODBUSINESSJOURNEYREPORT2010

sustainability
concept

Recognitionas
marketleaderin
sustainability
Transformation Consumer/use Consumerprivacy
rprivacy

Compliancewith
consumerdata
protectionlegislation
andregulations

Sustainability
research

Equity
Transferofeconomic
ownership
interesttoblack
people

Management Empowermentat
control
boardandexecutive
level

Employment Improvediversityof
Woolworthspeople
equityand
diversity

Developleadership
capacityfor
employment

Developskills
pipeline

Skills
Transformation
development

Accreditationof
Woolworthslearning
programmes

Establishcentresof
learning

Preferential DevelopBEEsupplier
partnerstoprovide
(BEE)
procurement coreproductfor
Woolworths

Enterprise
Enterprise
development developmentin
valuechain

Socio
Levelofcontribution
economic
tosocial
development development

Spendingonsocial
development

DivisionalCSIor
community

Engagement
PR8,PR9

PR8,PR9

PR8

EC9

LA13

LA1314

LA1112

LA1112

LA10/11,
HR4,EC7
LA11

LA10,11

EC6

HR1
EC6

SO1

SO1

SO1

Highlightsand
Recognition

L
L

Stakeholder
Engagement
AR

Transformatio
nReport

Transformatio
nReport

Transformatio
nReport

Transformatio
nReport
Transformatio
nReport
SocialReport

SocialReport

Transformatio
nReport

Transformatio
nReport

SocialReport

SocialReport

SocialReport

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THEGOODBUSINESSJOURNEYREPORT2010

Environment

Wastefrom
selling
operations

Wastefrom
selling
operations

Waste
packaging

Waste
marketing

development
support
Educational
programmes
conductedthrough
MySchool
Enhancecustomer
awarenessonwaste
management
Decreaseplasticbag
usageby
encouraging
customerstousere
usablebags
Useofrecycled
materialinplastic
bags
Useofrecycled
materialintrolleys
andshopping
baskets
Recyclingandreuse
ofplastichangers
Integratedwaste
managementin
stores
Reduceclothing,
generalmerchandise
andfoodpackaging
Packagingmaterials
thatcanberecycled
Useofrecycled
materialinproduct
packaging
Symbolson
packagingtoassist
consumerstosort
recyclablematerial
Compostable
packagingsolutions
Reducepaperused
inFinancialServices
Managingwaste
frommarketing
material
Reuseandrecycling
of
visual/merchandisin
gmaterial

PR6

EN22

EN2

EN1,EN2

EN2

EN2

EN6,EN28,
SOI

EN26

EN2,
EN26/27
EN2

EN1,EN2,
EN20

EN2,EN26

EN15

EN22

EN22

SocialReport

Environment
Report

Environment
Report

Environment
Report

Environment
Report

Environment
Report

Environment
Report

Environment
Report

Environment
Report
Environment
Report

Environment
Report

Environment
Report
Environment
Report
Environment
Report

L
M

Environment
Report

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THEGOODBUSINESSJOURNEYREPORT2010

EN21,
EN29

EN26

WasteIT
products&
consumables

Recycledorreused
otherITequipment

Reductionorreuse
ofITconsumable
itemsprinter
cartridges

Reductionorreuse
ofITconsumable
itemspaper

SafedisposalofIT
productsthatareof
ahazardousnature
Carbon
Reduceenergyusage
emissions
withinWWs

EN22,
EN26

EN22,
EN26
EN2

EN2

EN24

EN3,EN5/6

EN18,
EN29

Directfossilfuel
reduction(transport
emissions)
Directfossilfuel
reduction(effective
fleetmanagement)

Directfossilfuel
reduction(regional
sourcingand
reductionof
airfreight)
Qualityofair Improveairquality
throughuseof
paintswithlow
levelsofharmful
solvents

Improveairquality
throughplantingof
trees

Reduceharmful
impactof
refrigerantsforboth

EN2,EN26,
EN29

EN18,
EN29

EN11,EN1
4,EN26

EN19/20

EN19/20

EN19/20

Wastefrom
operations

Removewasteto
landfillfrom
distributioncentres
Recyclingfacilitiesin
newcorporate
buildings
Recycledorreused
PCequipment

Directfossilfuel
reduction

Environment
Report

Environment
Report

Environment
Report

Environment
Report
Environment
Report

Environment
Report

Environment
Report

Climate
Changeand
EnergyReport
Climate
Changeand
EnergyReport
Climate
Changeand
EnergyReport
Climate
Changeand
EnergyReport
Climate
Changeand
EnergyReport

Climate
Changeand
EnergyReport

Climate
Changeand
EnergyReport
Climate
Changeand
EnergyReport

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THEGOODBUSINESSJOURNEYREPORT2010

ambientandchilled
coolingsystems
Waterusage Managementof
waterusageof
operationsthrough
recycling/reuseand
treatment

Workwithsuppliers
toreducewater
usedandimprove
watermanagement
(effluent)duringthe
growing,production
andmanufactureof
ourproducts
Biodiversity
Sourcewoodfrom
sustainablesources

Sourcefishfrom
approvedsources
only

Evaluatefibresfrom
sustainable
sources(e.g.
bamboo,hempand
soyaproducts)

Reduceimpactof
lambproductionon
naturalbiodiversity
(includingresolving
wildlife/human
conflicts)

Noproductsorby
productfrom
threatenedspecies

Developsustainable
solutionforpotato
farmersinSandveld

EncourageWWwine
farmersinCape
floralkingdomtobe
partofBiodiversity
andWineinitiative
(BWI)

Ensurethatpaper
andboardcome
fromthemost
sustainablesources
Organicand Increaseorganicand
freerange
freerangefood,

EN8,EN10,
EN21,
EN26

EN10,
EN21

EN14,
EN26
EN14,
EN26

I
E

EN14,
EN26

EN14,
EN26

EN14,
EN26

EN14,
EN26

EN14,
EN26

EN14,
EN26

EN14,
EN26

Environment
Report

Environment
Report

Environment
Report
Environment
Report

Environment
Report

Environment
Report

Environment
Report

Environment
Report

Environment
Report

Environment
Report

Environment
Report

Page|59

THEGOODBUSINESSJOURNEYREPORT2010

locallyproduced
wherepossible

Increaseorganic
cottonsales(total
organic)

Developorganic
cottonpipelineinSA
Promote
Improve
environmental environmentally
performance soundconditionsin
thesupplybase
amongst
suppliers
ExtendECO

EN14,
EN26

EN14,
EN26
EN26

E
E

EN26

Environment
Report

Environment
Report
Environment
Report

Environment
Report

Environment
Report

Environment
Report

Environment
Report

Environment
Report

Efficiencyawards
programmetoall
suppliers

Setupmodel
greenfactories
withselected
suppliers

EN26

Establishasupplier
bestpractice
network

(blank)

Animal
welfare

Noiselevels

Adhereto
EN15
WoolworthsCodeof
animalwelfare
EN26
Manageorreduce
excessivenoise
levels

Page|60