Sustainability Report 2009 - The Co-operative

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Diversity Social inclusion Ethical finance Diet and health Animal welfare International development and human rights Community investment Social responsibility Animal welfare Indicators Sales of products from animals reared to higher welfare assurance standards Sales of accredited toiletry and household products Targets 2009 Extend the range of chicken products accredited to The Co-operative Elmwood higher welfare standards to include barbeque chicken and other processed and cooked chicken products (page 31). Complete the switch to free-range egg ingredients in all prepared own-brand products containing egg (page 31). Introduce a web-based database that records key animal welfare indicators, by flock, on all Elmwood chicken supplier farms (page 32). target achieved on track Targets 2010 close to target behind schedule target not achieved • Implement Elmwood standards across own-brand fresh and frozen pork and sausage ranges. • Extend the range of turkey products accredited to the Elmwood standard. • Further extend the range of chicken products accredited to Elmwood standards. Background Over 800 million broiler chickens 1 and 9.3 million pigs 2 are produced in the UK every year. In addition, there are around 30 million hens involved in egg production 3 . To sustain this level of production, most modern farms operate intensive systems. Factors such as price still remain the priority for many food shoppers; however, a growing number are concerned about intensive production methods and seek to support products that guarantee higher standards of animal welfare. Testing of cosmetic products or ingredients on animals ended in the UK in 1998. In the EU, the Seventh Amendment of the EU Cosmetics Directive banned animal testing of finished cosmetic products and cosmetic ingredients from March 2009. However, the practice is continued elsewhere in the world, and the sale of animal-tested products in the UK will not be fully phased out until 2013. Materiality and strategy The Co-operative Food Ethical Policy sets out member-endorsed animal welfare commitments including those relating to higher animal welfare standards and the opposition to animal testing. Animal welfare is an integral part of the customer-mandated Ethical Policy and Ethical Engagement Policy for banking and investments; both identify animal testing, the fur trade, intensive farming and blood sports as issues of concern. Achievements 1990 Announces that no own-brand toiletry products, or ingredients, will contain items tested on animals after 1985. 1994 First retailer to adopt the RSPCA Freedom Food scheme, which seeks to improve welfare standards for animals at all stages of the food chain. 1998 First retailer to be awarded right to use the new international cruelty-free ‘rabbit and stars’ symbol on toiletry packaging. 2004 First grocery retailer to be accredited to the BUAV Humane Household Products Standard. 2008 Received CIWF ‘Good Egg’ Award for phase-out of branded cage shell eggs and for commitment to go free-range on all own-brand products containing egg by 2010 4 . Received the RSPCA’s inaugural ‘Lifetime Achievement’ Award for longstanding commitment to animal welfare 5 . 2009 Received the RSPCA ‘People’s Choice Supermarket’ Award. Assurance of food production The Co-operative Food sells in the region of 800 own-brand fresh, and 50 own-brand frozen 6 , meat and poultry lines. In the main, basic animal welfare is assured via farm assurance standards 7 , which are sometimes signified 8 by a Red Tractor Mark or Quality Standard Mark 9 . For a number of products, the business supports higher animal welfare standards via schemes such as RSPCA Freedom Food accreditation, free-range, organic production and its own Elmwood standards and traditional breed production (details of which are available in the online version of this Report ). Freedom Food sales Elmwood sales Number of lines Estimated total sales 2006 49 £17m 10 2007 90 £28m 11 2008 109 £51m 12 2009 107 £54m 13 Number of lines Estimated total sales 2008 66 £38m 2009 108 £57m Additional standards are designated in relation to live animal transport and slaughter. Livestock can only be transported for a maximum of six hours. This is thought to be the lowest maximum transportation time allowed by any major national food retailer. All livestock reared for own-brand products must be pre-stunned prior to slaughter, in accordance with the Humane Slaughter Association species codes of practice 14 . 30 The Co-operative Group Sustainability Report 2009
Independent third-party auditors are used to check compliance with the requirements of the various industry-led standards 15 . In addition, the Technical team undertakes meat and poultry inspections – some 151 in 2009 (2008: 155). Although these focus primarily on product quality, safety and legality; where appropriate, animal welfare matters are considered (eg, lairage conditions at abattoirs). Additionally, 23 farm inspections were undertaken specifically in relation to animal welfare matters (2008: 23). Food production Total own-brand fresh meat, poultry and fish sales by value 16 5% 5% 7% 7% 1% 1% 24% 24% Beef Beef Chicken 17 Chicken Bacon Bacon Fish 18 8% Fish Pork 8% Pork 0 2 4 6 8 Sausage 10 12 11% 11% 2004 2.4 Sausage Lamb Lamb Turkey 2005 3.6 Turkey 2006 20% 4.2 24% 20% 2007 4.0 24% 2008 4.1 2009 3.7 Total own-brand dairy sales by value 10% Total own-brand meat, poultry and fish sales by value Milk Total 0 own-brand 3meat, poultry 6and fish sales 9 by value Cheese, 12 butter, 15 yogurts and desserts 2004 6.0 Eggs 2005 8.4 2006 10.2 31% 2007 10.2 2008 10.4 2009 14.5 59% Total own-brand frozen meat, poultry and fish sales by value 2% 1% Fish 2% 7% Total own-brand dairy sales by value 1% Fish Beef 7% 45% Beef Sausage 10% 45% Sausage Turkey 10% Turkey Lamb Lamb Chicken 17% Chicken Pork 17% Pork Milk and egg production 18% 18% Since 2008, the sale of all caged eggs Total own-brand frozen meat, poultry and 19 in The Co-operative Food fish sales by value stores Total has own-brand been prohibited, frozen meat, and, poultry on and this fish basis, sales sales by value of free-range shell eggs (Freedom Food and organic accredited) account for 100% of branded and own-branded sales. All own-brand freerange eggs are Freedom Food accredited, which stipulates lower outdoor stocking densities (a maximum of 1,000 birds per hectare) than conventional 0 free-range 3 outdoor 6 standards 9 (a maximum 12 of 15 2,500 birds per hectare) 20 . Organic standards offer enhanced animal-welfare provision, including the prohibition of mutilations, such as beak trimming. Only free-range eggs are used as ingredients in own-brand prepared product lines (eg, quiche). All non-organic, own-brand fresh milk sold in 2009 was assured under the National Dairy Farm Assured Scheme and is produced by dairy cattle with access to outdoor pasture. The remainder of milk sold was certified as organic by the Soil Association. Organic milk production specifies that cattle must spend the majority of their lives outside and be fed on a grass-based diet. Own-brand shell egg and fresh milk sales as proportion of total shell egg and fresh milk sales 21 % of sales 2006 2007 2008 2009 Shell eggs 88% 71% 94% 95% Fresh milk 10% 10% 88% 90% 89% 91% Milk Milk Cheese, butter, Cheese, yogurts and butter, desserts yogurts Eggs and desserts Shell egg and milk sales (own-brand, fresh) (%) Eggs 2006 2007 2008 2009 2006 2007 2008 2009 0 20 40 60 80 100 31% Shell eggs 31% Fresh milk Welfare standard Country of origin Total own-brand dairy sales by value Total own-brand dairy sales by value Freedom Food free-range Base-level Farm Assurance Standard Organic (Organic Farmers and Growers) UK Poultry production 74 16 10 59% 86 59% Organic (Soil Association) 0 20 The Co-operative 40 Group Sustainability 60 Report 80 2009 31 100 85 91 14 15 98 98 98 98 Base-level Farm Assurance Standard (National Dairy Farm Assured) All standard range, fresh and frozen whole chicken and all standard, plain, fresh and frozen chicken portions are produced to The Co-operative’s own Elmwood higher welfare standards. During 2009, the range of products accredited to Elmwood standards was extended to include further prepared products, eg, barbeque products (April) and breaded products (September). These standards exceed conventional farm assurance standards by stipulating lower stocking densities, higher minimum slaughter age and environmental enrichment 22 . Elmwood standards stipulate, unlike conventional and Freedom Food standards, that birds are provided with natural light 23 and, unlike conventional standards, are fed a vegetarian, high-cereal diet. In 2009, all premium-range fresh chicken (whole and pieces) was accredited to the Freedom Food free-range standard, sourced from birds with daytime access to range outdoors for at least half their lifetime, and stipulating a higher minimum slaughter age than conventional standards 24 . Elmwood turkey standards were introduced during Easter 2009 (own-brand fresh and frozen whole turkeys) and extended during Christmas 2009 (to own-brand fresh and frozen turkey crowns). These standards exceed conventional farm assurance standards and stipulate lower stocking densities, environmental enrichment, and a higher minimum age at slaughter. Although 9 2 2 2 2 Social responsibility Community investment International development and human rights Animal welfare Diet and health Ethical finance Social inclusion Diversity
Page 1 and 2: Sustainability Report 2009 Focus on
Page 3 and 4: The Co-operative Group Sustainabili
Page 5 and 6: prioritising community investment a
Page 7 and 8: “There is a tide in the affairs o
Page 9 and 10: About this Report Target attainment
Page 11 and 12: Mechanisms that influence materiali
Page 13 and 14: distinct team within The Co-operati
Page 15 and 16: • the organisation includes the p
Page 17 and 18: Community investment Indicators Com
Page 19 and 20: Employee volunteering 14 Number of
Page 21 and 22: International development and human
Page 23 and 24: 000 400000 500000 The Co-operative
Page 25 and 26: Completion of improvement actions i
Page 27 and 28: One Big Idea competition In Novembe
Page 29 and 30: employed from the local population.
Page 31: Read more in this Report • The Co
Page 35 and 36: Beef production All own-brand fresh
Page 37 and 38: The Co-operative Asset Management o
Page 39 and 40: Achievements 1986 In the absence of
Page 41 and 42: Community involvement Food educatio
Page 43 and 44: to be considered in the provision o
Page 45 and 46: Ethical and sustainability engageme
Page 47 and 48: Ethics and sustainability overseas
Page 49 and 50: Social inclusion Indicators Access
Page 51 and 52: intended to enable UK consumers to
Page 53 and 54: Diversity Indicators Gender Ethnici
Page 55 and 56: The Trading Group and CFS are holde
Page 57 and 58: The Co-operative Asset Management -
Page 59 and 60: Climate change Indicators Energy: c
Page 61 and 62: Total net CO 2 emissions from energ
Page 63 and 64: Decrease 2006-2009: 40% Decrease Th
Page 65 and 66: Carbon footprinting In 2007/08, The
Page 67 and 68: Bank finance for renewable energy I
Page 69 and 70: Oil sands consist of oil trapped in
Page 71 and 72: Waste and packaging Indicators Wast
Page 73 and 74: 2007 2008 2009 140,766 r 134,798 r
Page 75 and 76: • 212 tonnes of tyres, oil and pa
Page 77 and 78: Biodiversity Indicators MSC-certifi
Page 79 and 80: Total percentage of own-brand fores
Page 81 and 82: Tillington Hills apple crush, part
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Yes 88% No 12% InSight customer fee
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Examples of decisions taken on chem
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The Co-operative Farms’ use of ch
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Focus on delivering value Contents
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Member economic involvement Share o
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Activism Democratically active memb
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The Co-operative Enterprise Hub: fi
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2,057.3 2,057.3 1,271.5 1,271.5 57.
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British sourced, traditional Hampsh
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Employees Indicators Employee engag
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were in perceptions that: colleague
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CFS has developed, delivered or sup
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esult of greater awareness of the e
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8 2006 figure comprises The Co-oper
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A range of drivers impact on custom
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Complaints received by other custom
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Public policy ‘influence and acti
Page 117 and 118:
Trade and business association memb
Page 119 and 120:
Independent assurance statement Sco
Page 121 and 122:
Reporting in accordance with the GR
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Recognition Social responsibility
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