WoolWorths holdings limited 2013 good BUsiness JoUrneY report

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setting out Our customers remain our most important stakeholders and are the most passionat and most vocal in their engagement with us During the year we directed more than R500 million to a range of charity organisations as part of our commitment to food security and education – most of this through our store-based donations to local charities of past-sell by date, but still fresh food. Partners and beneficiaries have included our EduPlant, Making the Difference and MySchool programmes as well as the recipients of our surplus food and clothing, such as the Clothing Bank. We also doubled the amount of funding allocated to our Enterprise Development partners. Overall we have made good progress on our Good Business Journey targets – our overall score for 2013 is 90 % Another highlight was the launch of a multi-faceted partnership with the World Wide Fund for Nature South Africa (WWF-SA) – the first initiative of its kind for African retail. The partnership aims to drive collaboration across the supply chain towards greater sustainability in sourcing and consumption. Overall we have made good progress on our Good Business Journey targets – our overall score for 2013 is 90% and we have achieved a score of 72% against our 2015 objectives. The most important challenges faced by the group during 2013 related to internal transformation and ethical sourcing – both issues that received a high level of engagement in the media from a number of stakeholders. Our commitment to meeting our employment equity targets met with quite some controversy. We fully believe that we can both achieve our targets and offer growth to high calibre people from all sectors of our country. We import much of our clothing from Asia, and despite a string of reports of unacceptable industrial practice in the East, we were able to hold our heads up high. We have rigid codes of practice in place throughout our supply chain, in South Africa and beyond. Further, whilst the meat scandal in the UK, and the subsequent reports on similar integrity challenges in South Africa did not affect our business directly, it again confirmed the importance of our ethical sourcing and traceability. We have though increased the very stringent supplier code of conduct, and put more regular audits in place. Since the start of our Good Business Journey we have shifted our thinking from the direct impacts of WHL’s business to our entire value chain. As a group we have the ability to control our supply chain, to trace products back to source and to influence how these products are being produced. To support this work, we continue to do lifecycle research on our products – all to improve our understanding of supply issues. In the same vein, we are in a position to educate and influence our customers and change their buying behaviour. We can do this, for example, by incentivising our customers through our loyalty programmes toward buying products with sustainability features. In the coming year, we plan to launch a green rewards component as part of the WRewards loyalty programme. Our customer research around our campaigns and initiatives such as 50/50 inserts and 3Talk appearances, as well as tracking studies, show a growing awareness of the Good Business Journey and our conservation objectives. Our customers remain our most important stakeholders and are the most passionate and most vocal in their engagement with us (see page 20 for more detail about all our stakeholders) 1 . They interact with us increasingly through social media channels, and are a key source of fresh ideas and priorities for the business. We see these interactions as opportunities to improve our business, to bring innovation and to better understand what is important to our customers. Our group is expanding and we need to align the Country Road group and our business in Africa with the Good Business Journey values and priorities. We believe we can continue to do good business by doing business in a good way, and bring real value to all our stakeholders. SN Susman Chairman I Moir Group chief executive officer 1 Stakeholder Engagement section can be found on page 20 2013 GOOD BUSINESS JOURNEY / WHL 13
SETTING OUT MANAGING SUSTAINABILITY SUSTAINABILITY CONTEXT WWF’s Latest Living planet Report raises further alarms about the ability of our planet to supply food and other ecosystem services to a growing population, and emphasises the need for resource efficiency and biodiversity protection. The retail sector specifically continues to be under the microscope in terms of its direct and especially supply chain, impacts. In a year that was marked by public concerns around meat sourcing, and a number of tragedies in the global textiles sector in Bangladesh, issues around traceability, ethical sourcing and responsible sourcing of commodities are material risks for the sector. Mitigating these risks requires the types of long term partnerships with suppliers that Woolworths has been built on. In South Africa, this is overlaid by the need to alleviate poverty and create jobs, to improve education and grow the number of skilled people ready to join the economy, whilst labour unrest and concerns about corruption continue. Environmental challenges include energy supply stability and costs, water scarcity and quality issues, and a host of agricultural concerns including security of land tenure, GMO uncertainty and a declining number of farmers, all of which affect food security and prices, putting pressure on South African consumers. Unpredictable climate-related events are putting even more strain on this food production system. The National Development Plan creates a strong vision for resolving many of these challenges, and Woolworths needs to understand our influence as a diversified retailer, and apply our value chain approach to finding solutions in partnership with our stakeholders. Our consumers continue to show a strong interest in environmentally responsible and ethical sourcing, and we need to increasingly provide such product choices to them, without a significant premium. Our consumers continue to show a strong interest in environmentally responsible and ethical sourcing, and we need to increasingly provide such product choices to them, without a significant premium. WHL 14 / 2013 GOOD BUSINESS JOURNEY
Page 1 and 2: Woolworths Holdings Limited 2013 GO
Page 4 and 5: CONTENTS 4 Setting out 6 10 10 10 1
Page 7 and 8: setting out KEY SUSTAINABILITY INDI
Page 9 and 10: setting out How we’re rated Woolw
Page 11 and 12: setting out ABOUT US Woolworths Hol
Page 13: setting out CEO/Chairman’s Statem
Page 17 and 18: SETTInG out GOVERNANCE OF SUSTAINAB
Page 19 and 20: SETTING OUT CONTRIBUTION TO THE SOU
Page 21 and 22: SETTInG out STAKEHOLDER ENGAGEMENT
Page 23 and 24: SETTInG out STAKEHOLDER WHY WE ENGA
Page 25 and 26: SETTInG out STAKEHOLDER WHY WE ENGA
Page 27 and 28: SETTInG out CASE STUDY: WOOLWORTHS
Page 29 and 30: SETTInG out GROWING OUR EMPLOYEE UN
Page 31 and 32: CASE STUDY: WOOLWORTHS AND WWF-SA
Page 33 and 34: transformation and corporate social
Page 35 and 36: Transformation and corporate social
Page 41 and 42: CASE STUDY: CHILD SAFETY Every year
Page 45 and 46: CASE STUDY: WOOLWORTHS MAKING THE D
Page 47 and 48: social 49 Our People 54 Our Custome
Page 49 and 50: Social social Entrench a culture wh
Page 51 and 52: Social formal and informal developm
Page 53 and 54: Social EMPLOYMENT BRAND Building ou
Page 55 and 56: Social Our customers OUR GOOD FOOD
Page 57 and 58: Social CASE STUDY - Food safety and
Page 59 and 60: Social our SUPPLIERs Woolworths wor
Page 61 and 62: We remain dedicated to selling prod
Page 63 and 64: ENVIRONMENT Our key initiatives und
Page 65 and 66:
Environment SUSTAINABLE AGRICULTURE
Page 67 and 68:
Environment CASE STUDY: GREENPAK Gr
Page 70 and 71:
Environment FISHING FOR THE FUTURE
Page 73 and 74:
Environment CASE STUDY: UTZ CERTIFI
Page 75 and 76:
Environment WATER South Africa is a
Page 77 and 78:
Environment WASTE By using recycled
Page 79 and 80:
Environment STORE OPERATIONS Woolwo
Page 81:
climate change and energy 84 Carbon
Page 84 and 85:
Commitment and progress Commitment
Page 86 and 87:
climate change and energy engines,
Page 88 and 89:
climate change and energy GREEN BUI
Page 90 and 91:
Comparatvie information Scope Sourc
Page 92 and 93:
Woolworths, Winter 2013
Page 94 and 95:
the broader whl group Africa GDP gr
Page 96 and 97:
the broader whl group COUNTRY ROAD
Page 98 and 99:
the broader whl group Saving Water
Page 100:
Summary of Work Performed Set out b
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