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what does sustainability mean to woolworths?
Doing the right thing by our business – reducing risk, protecting our reputation, looking after our people, our customers, our shareholders and the resources that our business depends on. Our aim is to have a responsible and sustainable business today and long into the future. A business that is: – profitable – looks after its people – provides service, quality, value for money and choice to our customers – deals fairly and with integrity with suppliers – invests in the community – protects the environment and natural resources that sustain our business
1m $36.3m invested in local communities 2 .082.065 employees 419.7b $3. in the 2010 Deloitte Touche Tohmatsu Global Powers of Retailing report (based on annual sales revenue) 3. and 3rd in Asia Pacific.about woolworths Retail brands in Australia and New Zealand Ranked 26th globally.304 shareholders 2010 Sales Revenue was 2010 EBIT was $51.199 stores in Australia and New Zealand 188.
woolworths limited brands ALH Group 3 .
4 .commitment to transparency – We report our ESG performance annually in accordance with Global Reporting Initiative (GRI) guidelines and our reports are independently verified – Our 2009 and 2010 reports have achieved GRI A+ rating for completeness of disclosure – Association of Chartered Certified Accountants (ACCA) awarded our CR reports as best report in the retail sector for the past two years – Signatory of the United Nations Global Compact (UNGC) Woolworths is a signatory of the United Nations Global Compact and a member of the Global Compact Network Australia.
water. going beyond regulatory compliance – Responsible service of gaming and revenue from poker machines 5 . food waste – Sustainable consumption vs business growth – is it possible to have prosperity without growth? – Supply chain efficiencies to manage cost of doing business and deliver value to our customers – electricity/carbon. sustainable food production. waste and packaging costs – Responding to the expectations of the “ethical/green” consumer – turning the potential in this segment to real sales – New store developments and community opposition in some cases – Responsible retailing of alcohol.what is material to our business? – Competition in the retail sector and issues relating to cost of living – delivering value for money to our customers – Food security.
000 employees. with turnover requiring the recruitment of 38.what is material to our business? – Staff/talent retention – Over 188.000 employees – Continued commitment to promoting from within – 46% of Executives have been with the company more than 10 years – Gender balance in senior levels of management – 54% of employees are women and 27% of our leadership positions are held by women – Committed to have 33% representation of women as Non-executive Directors on the board 6 .
appropriate resourcing and performance monitoring – Special Committees of senior management monitor implementation progress on Health and Safety and Sustainability objectives: – Safety and Health Executive Committee – Sustainability Executive Committee 7 .integration and implementation Integration in mainstream business frameworks – Board Charter and responsibility – Risk Management framework – Strategic Planning framework Implementation Oversight and Performance Review – Senior management has overall responsibility to ensure implementation of our key initiatives and targets.
2010 performance employee retention – With the introduction of the Modern Award. Supermarkets are paying between 2–6% above the standard entry level minimum wage – Invested over $63 million in learning and development initiatives 113 graduates have been recruited since 2005. with a retention rate of 93% 8 .
27 25 43 50 59 13 9 0 9 . particularly in leadership roles Gender Ratio by Employment Level – Female 2010 % Senior Executives Senior Managers Managers Office/Support Employees Store Employees Distribution Employees Tradespeople and Apprentices Plant Employees Note: 2010 Data does not include DSE NZ.2010 performance gender balance 54% of our workforce are women and we continue to focus on the progress of gender diversity.
000 hours worked) 10 08 08 09 09 10 .34 (target for FY10 was 10) – LTIFR target for FY11 is 8 Woolworths Limited LTIFR Results 2008–2010 18.86 15.2010 performance safety – Achieved a 34% reduction in Lost Time Injury Frequency Rate (LTIFR).07 LTIFR (million hours worked) LTIFR (200. down to 10.71 3.34 10 2.14 10.77 3.
sustainability strategy 2007–2015 Targets and commitments 40% reduction in carbon emissions on projected growth levels by 2015. bringing emissions back to 2006 levels 25% Up to reduction in carbon emissions per carton delivered by Woolworths-owned trucks by 2012 30% reduction in carbon emissions from our company fleet by 2010 (from 2006 fleet emissions) 200m litres Reduce water usage by at least 200m litres a year by 2010 zero food waste to landfill by 2015 Implement ethical and sustainable sourcing policies 11 .
0 3.5 3.0 Actual emissions (Mt) Business as usual 2015 Target 12 .000 tonnes (13%) lower than projected business-as-usual emissions – 51 green supermarkets have been constructed.4% since 2007 – Carbon emissions from company car fleet reduced by 11. up from 4.1% or equivalent of taking 602 cars off the road Total Emissions from Facilities 2006–2010 (Million Tonnes of CO2-e) 5.09 Mt.0 Millions tonnes CO2-e 4. reducing carbon emissions per square metre by more than 25% – Logistics carbon emissions per carton delivered reduced by 9.5 4.05 Mt from last year – Carbon emissions from electricity use and refrigerant loss from facilities is 500.2010 performance energy use and carbon emissions – Total carbon emissions of 4.5 2.0 2.
3 13 .1 34.1 2010 208.2 71.7 38.0 55.9 2.0 63.2 3.0 673.9 48.751.4 2010 3.0 940.2 67.7 981.0 Per $M EBIT 2009 3.9 4.4 56.7 585.496.6 4.2010 performance energy use and carbon emissions Resource Intensity Per $M Sales 2009 Energy Intensity (GJ/$M) Carbon Intensity (T CO2-e/$M) Water Intensity (kL/$M) Waste Intensity (T/$M) Recycling Intensity (T/$M) 213.
19 14 .40 4108 1.30 1.20 09 3484 3459 02 03 04 05 06 07 08 09 10 3421 02 03 04 05 06 07 10 1.24 1.33 3786 1.38 3930 1.43 4188 1.21 08 3590 1.2010 performance energy use and carbon emissions Energy use per square metre of trading area 20% Reduction FY02 to FY10 Carbon emissions per square metre of trading area 17% Reduction FY02 to FY10 4283 1.
45 million litres of rainwater Annual water saving 08 44 09 10 172 302 Annual water saving (ML) 15 . captured 16. operating at Distribution Centres in Minchinbury and Wyong.2010 performance water – Water Wise Project. flow restrictors and water efficient fittings. has delivered an estimated saving of 302 million litres of water in 2010 – Surpassed our 200 million litre target – Two large scale rainwater harvesting projects.
printer consumables and batteries through Dick Smith stores Recycling volumes 08 200.941 10 207.9 tonnes – Almost 60% of our waste material is diverted from landfill through recycling and beneficial reuse – Recycled an estimated 28.528 Material Recycled (T) 16 .2010 performance waste and recycling – Total volume of material recycled or diverted from landfill increased by 2.7 million clothes hangers at BIG W – Recycled mobile phones and accessories.8% to 207.527.567 09 200.
ethical and sustainable sourcing Responding to consumer concerns regarding: – child labour and working conditions in developing countries – animal welfare – depleting natural resources – deforestation and impact on animal habitat 17 .
ethical and sustainable sourcing Labour conditions and social compliance – Our policy is based on ILO conventions – All suppliers are expected to comply with the policy – We have a third party auditing program for suppliers of our own brands – The most common area of non-conformance is working hours and living wages Ethical Audit Program Audit Results – Factory Classification in 2010 Approved Conditionally Approved At Risk Audit Results – Number of Corrective Actions Raised in 2010 Critical High Low 2% 78% 20% 18 6% 72% 22% .
3 0.3 35.8 Percentage Percentage increase of total in sales category in 2010* sales in 2010 % % 30.4 2.8 Product Free range chicken (Macro meat) Free range chicken (Macro deli) Free range eggs Barn laid eggs Organic Macro meat * Percentage increase based on increased sales from previous financial year.7 25.6 n/a 32. 19 .8 15 11 10.8 11.0 16.1 263.ethical and sustainable sourcing Sales Growth for Free Range Products Percentage increase in sales in 2009* % 33.0 20.
ethical and sustainable sourcing – Select eggs are free range or barn laid – Discontinued caged eggs in Select at the end of 2009 – Clear signage and shelf layout in stores to differentiate free range. we sold free range pork in 272 stores in Australia 20 . barn laid and caged eggs – Caged eggs still represent 49. By the end of 2011 this will have increased to 42% In 2010.8% of our total egg sales by value – 36% of all fresh pork that is supplied to Woolworths is produced from pigs born to sows that have been reared in a sow stall free environment.
ethical and sustainable sourcing Palm Oil – Not using palm oil where there are healthier alternatives – 95% of our Select brand products do not contain palm oil – Membership to Roundtable on Sustainable Palm Oil (RSPO) – Clear labelling of palm oil – Moving to certified sustainable palm oil for all our own brands by 2015 Timber. pulp and paper – Select brand tissues. toilet paper and kitchen towels are all PEFC certified – Our catalogues are PEFC certified – The copy paper we use in our offices is FSC certified – We are working on a timber sourcing policy for our home improvement business FSC – Forest Stewardship Council PEFC – Program for Endorsement of Forest Certification 21 . pulp and paper – We aim to source certified sustainable timber.
catching methods and other risk issues are being considered in the review process 22 .ethical and sustainable sourcing Fish sourcing – Review of our range is underway – Delisting of three overfished species from our fresh range – tuna – swordfish – orange roughy – More Marine Stewardship Council certified products will also be ranged in the new year By-catch.
key challenges What are the main future challenges? 23 .
questions ? .
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