Sustainability Report 2009 - The Co-operative

Chief Executive’s overview
Chief Executive’s overview
2009 at a glance
Commentary
Sustainable Development Policy
Mergers and acquisition
“Despite the background of the worst recession in over
60 years, we have continued our rigorous pursuit of
sustainability and maintained our support for the many
groups and individuals made even more vulnerable by
the economic climate.”
2009 at a glance
2009 saw exciting and unprecedented change at The
Co-operative, as we brought Somerfield, Britannia and two
co-operative societies into our family of businesses. Our expanded
food business can now claim its rightful place amongst the ‘Big
5’ food retailers in the UK, whilst the merger of The Co-operative
Financial Services and Britannia has created a stronger, more
diverse offering in the financial services industry.
Our Values and Principles and, in turn, the reputation they have
earned us with our customers and members, have provided us
with considerable strength at a time of weak confidence in
business. The ‘flight to trust’ saw current account openings at
The Co-operative Bank increase by some 38% in 2009, whilst
sustained growth has continued in like-for-like Food sales.
Such factors contributed to The Co-operative reporting excellent
figures, with gross sales up 31% to £13.7bn. Profit before
payments to and on behalf of members – equivalent to pretax
profits in a plc – rose by 85% to £402m. These would be
impressive figures in a normal year, but are exceptional in the
midst of a severe recession and in a period of significant change.
In what was a transformational year for The Co-operative,
maintaining our leading approach to sustainable development
has been paramount. I am delighted to report another year
of impressive achievements in relation to our social and
environmental priorities, which accompany the business’s strong
financial performance.
As a co-operative business, the notion of responsiveness is
hard-wired into our very being and we continue to consult our
members and customers on the identification of our priorities for
sustainable development. 2009 saw a revised customer-mandated
Ethical Policy launched by The Co-operative Bank, complete with
additional agenda-shaping positions in the areas of international
development, animal welfare and the environment. A new
member-endorsed Community Plan was launched in early 2009,
January 2009
February 2009
April 2009
July 2009
About this Report
Plan Bee campaign launches, highlighting
the decline of the honeybee population. The
Co-operative becomes the first UK retailer to
prohibit the use of neonicotinoid chemicals
on own-brand fresh produce (page 80).
The Co-operative completes
its £1.57bn acquisition of
Somerfield, creating the fifth
largest operator in the UK
grocery market (page 6).
Elections to regional Values &
Principles Committees conclude and
Co-operative Group Board elections
take place, following changes to
democratic structures (page 89).
‘Truth about Youth’ grants scheme
launches, run by The Co-operative
Foundation, to challenge and
change negative perceptions
of young people (page 17).
Sustainability management
J F M A M J J
February 2009
As part of the biggest rebrand in UK retailing
history, £10m national brand advertising
campaign launches, focusing on The
Co-operative’s ethical approach to business
(page 110).
February 2009
The Co-operative Community Plan launches, following
consultation with more than 50,000 members and
customers (page 15). The Co-operative Bank launches
its revised Ethical Policy, updated for the fifth time in line
with a record 80,000 customers’ views (page 40).
Business merger/acquisition Social responsibility Ecological sustainability Delivering value
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The Co-operative Group Sustainability Report 2009