woolworths limited environment, social and governance briefing

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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

what does sustainability mean to woolworths?

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2010 Sales Revenue was

$51.7b419,304shareholders

2010 EBIT was

$3,082.1m$36.3m invested in local communities

about woolworths

Ranked 26th globally, and 3rd in Asia Pacific, in the 2010 Deloitte Touche Tohmatsu Global Powers of Retailing report (based on annual sales revenue)

Retail brands in Australia and New Zealand

3,199 stores in Australia and New Zealand

188,065 employees

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woolworths limited brands

ALH Group

– 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)

commitment to transparency

Woolworths is a signatory of the United Nations Global Compact and a member of the Global Compact Network Australia.

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– Competition in the retail sector and issues relating to cost of living – delivering value for money to our customers

– Food security, sustainable food production, 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, water, 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, going beyond regulatory compliance– Responsible service of gaming and revenue from poker machines

what is material to our business?

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– Staff/talent retention – Over 188,000 employees, with turnover requiring the recruitment

of 38,000 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

what is material to our business?

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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, 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

integration and implementation

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– 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

2010 performance employee retention 113 graduates

have been recruited since 2005, with a retention rate of 93%

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2010 performance gender balance

54% of our workforce are women and we continue to focus on the progress of gender diversity, particularly in leadership roles

Gender Ratio by Employment Level – Female

2010 %

Senior Executives 27

Senior Managers 25

Managers 43

Office/Support Employees 50

Store Employees 59

Distribution Employees 13

Tradespeople and Apprentices 9

Plant Employees 0

Note: 2010 Data does not include DSE NZ.

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2010 performance safety

– Achieved a 34% reduction in Lost Time Injury Frequency Rate (LTIFR), down to 10.34 (target for FY10 was 10)

– LTIFR target for FY11 is 8

Woolworths Limited LTIFR Results 2008–2010

10 1009090808

10.34

2.073.14

15.71

3.77

18.86

LTIFR (million hours worked)

LTIFR (200,000 hours worked)

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sustainability strategy 2007–2015

zero food wasteto landfill by 2015

200m litres Reduce water usage by at least 200m litres a year by 2010

Implement ethical and sustainable sourcing policies

25% reduction in carbon emissions per carton delivered by Woolworths-owned trucks by 2012

40% reduction in carbon emissions on projected growth levels by 2015, bringing emissions back to 2006 levels

Up to

30% reduction in carbon emissions from our company fleet by 2010(from 2006 fleet emissions)

Targets and commitments

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– Total carbon emissions of 4.09 Mt, up from 4.05 Mt from last year– Carbon emissions from electricity use and refrigerant loss from facilities

is 500,000 tonnes (13%) lower than projected business-as-usual emissions– 51 green supermarkets have been constructed, reducing carbon emissions

per square metre by more than 25%– Logistics carbon emissions per carton delivered reduced by 9.4% since 2007– Carbon emissions from company car fleet reduced by 11.1% or equivalent

of taking 602 cars off the road

2010 performance energy use and carbon emissions

Total Emissions from Facilities 2006–2010 (Million Tonnes of CO2-e)

Actual emissions (Mt)

Business as usual

2015 Target

5.0

4.5

4.0

3.5

Mill

ions

tonn

es C

O2-e

3.0

2.5

2.0

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Resource Intensity

Per $M Sales Per $M EBIT

2009 2010 2009 2010

Energy Intensity (GJ/$M) 213.0 208.4 3,751.7 3,496.0

Carbon Intensity (T CO2-e/$M) 55.7 56.1 981.0 940.7

Water Intensity (kL/$M) 38.2 34.9 673.0 585.9

Waste Intensity (T/$M) 3.6 2.9 63.2 48.2

Recycling Intensity (T/$M) 4.1 4.0 71.4 67.3


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Energy use per square metre of trading area Carbon emissions per square metre of trading area

09 1008

3459

3484

3421

06 0705

3786

3930

3590

03 0402

4188

4283

4108

0.000000

611.857143

1223.714286

1835.571429

2447.428571

3059.285714

3671.142857

4283.000000

20% Reduction FY02 to FY10

09 1008

1.201.21

1.19

06 0705

1.301.33

1.24

03 0402

1.401.43

1.38

0.000000

0.204286

0.408571

0.612857

0.817143

1.021428

1.225714

1.430000

17% Reduction FY02 to FY10

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– 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, operating at Distribution

Centres in Minchinbury and Wyong, captured 16.45 million litres of rainwater

2010 performance water

Annual water saving

09 1008

172

44

302

Annual water saving (ML)

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– Total volume of material recycled or diverted from landfill increased by 2.8% to 207,527.9 tonnes– Almost 60% of our waste material is diverted from landfill through recycling and beneficial reuse– Recycled an estimated 28.7 million clothes hangers at BIG W– Recycled mobile phones and accessories, printer consumables and batteries through

Dick Smith stores

2010 performance waste and recycling

Recycling volumes

09 1008

200,94

1

200,56

7

207,52

8

Material Recycled (T)

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Responding to consumer concerns regarding: – child labour and working conditions in developing countries– animal welfare– depleting natural resources– deforestation and impact on animal habitat

ethical and sustainable sourcing

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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 6%

Conditionally Approved 72%

At Risk 22%

Audit Results – Number of Corrective Actions Raised in 2010

Critical 2%

High 78%

Low 20%

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Sales Growth for Free Range Products

Percentage Percentage Percentage increase increase of total in sales in sales category in 2009* in 2010* sales in 2010 Product % % %

Free range chicken (Macro meat) 33.6 30.1 16.4

Free range chicken (Macro deli) n/a 263.8 2.3

Free range eggs 32.0 15 35.8

Barn laid eggs 20.7 11 11.3

Organic Macro meat 25.8 10.0 0.8

* Percentage increase based on increased sales from previous financial year.

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– 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, barn laid and caged eggs– Caged eggs still represent 49.8% 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. By the end of 2011 this will have increased to 42%

In 2010, we sold free range pork in 272 stores in Australia

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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– We aim to source certified sustainable 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 businessFSC – Forest Stewardship Council PEFC – Program for Endorsement of Forest Certification


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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, catching methods and other risk issues are being considered in the review process

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key challenges

What are the main future challenges?

questions

?

woolworths limited environment, social and governance briefing · – staff/talent retention –...

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