WOL232 Investor Pres Final

8/8/2019 WOL232 Investor Pres Final

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woolworths limited environment,social and governance brie ng



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Doing the right thing by our business– reducing risk, protecting our reputation, looking a ter our people, our

customers, our shareholders and the resources that our business depends on.

Our aim is to have a responsible and sustainable business todayand long into the uture. A business that is:– pro table– looks a ter its people– provides service, quality, value or money and choice to our customers– deals airly and with integrity with suppliers– invests in the community– protects the environment and natural resources that sustain

our business

what does sustainabilitymean to woolworths?



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2010 SalesRevenue was

$51.7b419,304shareholders

2010 EBIT was

$3,082.1m$36.3minvested in localcommunities

about woolworths

Ranked 26thglobally, and 3rd inAsia Paci c, in the2010 Deloitte Touche TohmatsuGlobal Powers of Retailingreport(based on annual sales revenue)

Retail brands inAustralia andNew Zealand

3,199stores in Australiaand New Zealand

188,065employees



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woolworths limitedbrands



– We report our ESG per ormance annually in accordance withGlobal Reporting Initiative (GRI) guidelines and our reports areindependently veri ed

– Our 2009 and 2010 reports have achieved GRI A+ rating or completeness

o disclosure– Association o Chartered Certi ed Accountants (ACCA) awarded ourCR reports as best report in the retail sector or the past two years

– Signatory o the United Nations Global Compact (UNGC)

commitment totransparency

Woolworths is asignatory o the UnitedNations Global Compactand a member o the Global CompactNetwork Australia.

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

– Food security, sustainable ood production, ood waste– Sustainable consumption vs business growth – is it possible to have

prosperity without growth?– Supply chain e ciencies to manage cost o doing business and deliver

value to our customers – electricity/carbon, water, waste and packaging costs– Responding to the expectations o the “ethical/green” consumer

– turning the potential in this segment to real sales– New store developments and community opposition in some cases– Responsible retailing o alcohol, going beyond regulatory compliance– Responsible service o gaming and revenue rom poker machines

what is material toour business?



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

o 38,000 employees– Continued commitment to promoting rom within

– 46% o Executives have been with the company more than 10 years

– Gender balance in senior levels o management– 54% o employees are women and 27% o our leadership positions

are held by women– Committed to have 33% representation o women

as Non-executive Directors on the board

what is material toour business?



Integration in mainstream business rameworks– Board Charter and responsibility– Risk Management ramework – Strategic Planning ramework

Implementation Oversight and Per ormance Review– Senior management has overall responsibility to ensure implementation o our

key initiatives and targets, appropriate resourcing and per ormance monitoring– Special Committees o senior management monitor implementation progress

on Health and Sa ety and Sustainability objectives:– Sa ety and Health Executive Committee– Sustainability Executive Committee

integrationand implementation



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– With the introduction o the Modern Award,Supermarkets are paying between 2–6% abovethe standard entry level minimum wage

– Invested over $63 million in learning and

development initiatives

2010 per ormanceemployee retention 113 graduates

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



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2010 per ormancegender balance

54% o our work orce are women and we continue to ocuson the progress o gender diversity, particularly in leadership roles

Gender Ratio by Employment Level – Female

2010%

Senior Executives 27

Senior Managers 25

Managers 43

Ofce/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 per ormancesa ety

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

– LTIFR target or FY11 is 8

Woolworths Limited LTIFR Results 2008–2010

1 0

1 0

0 9

0 9

0 8

0 8

1 0

. 3 4

2 . 0

7 3

. 1 4

1 5

. 7 1

3 . 7

7

1 8

. 8 6

LTIFR (million hours worked)

LTIFR (200,000 hours worked)



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sustainability strategy2007–2015

zero ood wasteto land ll by 2015

200m litresReduce water usage by at least200m litres a year by 2010

Implement ethical andsustainable sourcing policies

25%reduction in carbon emissionsper carton delivered byWoolworths-owned trucksby 2012

40%reduction in carbon emissionson projected growth levels by2015, bringing emissions back to 2006 levels

Up to

30%reduction in carbon emissions

rom our company eet by 2010( rom 2006 eet emissions)

Targets and commitments



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– Total carbon emissions o 4.09 Mt, up rom 4.05 Mt rom last year– Carbon emissions rom electricity use and re rigerant loss rom acilities

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 rom company car eet reduced by 11.1% or equivalent

o taking 602 cars of the road

2010 per ormanceenergy use and carbon emissions

Total Emissions rom Facilities 2006–2010 (Million Tonnes o CO 2-e)

Actual emissions (Mt)Business as usual2015 Target

5.0

4.5

4.0

3.5

M i l l i o n s t o n n e s

C O

2 - 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 CO 2-e/$M) 55.7 56.1 981.0 940.7Water Intensity (kL/$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 o trading area Carbon emissions per square metre o trading area

0 9

1 0

0 8

3 4 5 9

3 4 8 4

3 4 2 1

0 6

0 7

0 5

3 7 8 6

3 9 3 0

3 5 9 0

0 3

0 4

0 2

4 1 8 8

4 2 8 3

4 1 0 8

20% Reduction FY02 to FY10

0 9

1 0

0 8

1 . 2

0

1 . 2

1

1 . 1

9

0 6

0 7

0 5

1 . 3

0

1 . 3

3

1 . 2

4

0 3

0 4

0 2

1 . 4

0

1 . 4

3

1 . 3

8

17% Reduction FY02 to FY10



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– Total volume o material recycled or diverted rom land ll increased by 2.8% to 207,527.9 tonnes– Almost 60% o our waste material is diverted rom land ll through recycling and bene cial 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 per ormancewaste and recycling

Recycling volumes

0 9

1 0

0 8

2 0 0

, 9 4 1

2 0 0

, 5 6 7

2 0 7

, 5 2 8

Material Recycled (T)



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Responding to consumer concerns regarding:– child labour and working conditions in developing countries– animal wel are– depleting natural resources– de orestation and impact on animal habitat

ethical andsustainable 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 or suppliers o our own brands– The most common area o non-con ormance is working hours and living wages

Ethical Audit Program


Audit Results – Factory Classifcation in 2010

Approved 6%

Conditionally Approved 72%

At Risk 22%

Audit Results – Number o Corrective Actions Raised in 2010

Critical 2%

High 78%

Low 20%



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Sales Growth or Free Range Products

Percentage Percentage Percentageincrease increase o totalin sales in sales category

in 2009* in 2010* sales in 2010Product % % %

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 rom previous nancial year.



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– Select eggs are ree range or barn laid– Discontinued caged eggs in Select at the end o 2009– Clear signage and shel layout in stores to diferentiate

ree range, barn laid and caged eggs

– Caged eggs still represent 49.8% o our totalegg sales by value

– 36% o all resh pork that is supplied to Woolworths isproduced rom pigs born to sows that have been rearedin a sow stall ree environment. By the end o 2011 thiswill have increased to 42%

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



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Palm Oil– Not using palm oil where there are healthier alternatives– 95% o our Select brand products do not contain palm oil– Membership to Roundtable on Sustainable Palm Oil (RSPO)– Clear labelling o palm oil– Moving to certi ed sustainable palm oil or all our own brands by 2015

Timber, pulp and paper– We aim to source certi ed sustainable timber, pulp and paper

– Select brand tissues, toilet paper and kitchen towels are all PEFC certi ed– Our catalogues are PEFC certi ed– The copy paper we use in our o ces is FSC certi ed– We are working on a timber sourcing policy or our home

improvement businessFSC – Forest Stewardship CouncilPEFC – Program or Endorsement o Forest Certi cation




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Fish sourcing– Review o our range is underway– Delisting o three over shed species rom our resh range

– tuna– sword sh– orange roughy

– More Marine Stewardship Council certi ed productswill also be ranged in the new year


By-catch, catching methodsand other risk issues are beingconsidered in the review process



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key challenges

What are the main uture challenges?



questions

?

WOL232 Investor Pres Final

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