Professional Documents
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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.
Page|1
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.
Page|2
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
Page|3
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
Page|4
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:
Page|5
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;
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.
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:
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.
Page|6
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.
Page|8
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.
Page|9
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.
Page|11
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).
Page|12
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.
Page|15
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.
Page|16
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.
Page|18
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.
Page|19
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.
Page|20
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:
Page|21
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.
Page|24
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
Page|26
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;
Page|29
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
Page|54
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
Page|55
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
Page|56
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
Page|57
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
Page|58
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