Corporate responsibility report 2014 - Woolworths Group

Page created by Patrick Leon
 
CONTINUE READING
Corporate responsibility report 2014 - Woolworths Group
corporate responsibility report
             2014
Corporate responsibility report 2014 - Woolworths Group
Corporate responsibility report 2014 - Woolworths Group
Woolworths Limited
is the 2014 global leader
in the Dow Jones
Sustainability Indices
for the food and staples
retailing sector

Woolworths Limited was the first Australian retailer to be recognised
as a global leader in the Dow Jones Sustainability Indices, achieving
this for the second consecutive year.

CONTENTS
Our Corporate Responsibility                          Woolworths Liquor Group                      25        United Nations Global Compact                53
Balance Sheet                       2                 New Zealand Supermarkets                     28        Global Reporting Initiative                  54
CEO’s Statement                     4                 General Merchandise                          30        Independent Assurance Statement              57
A Great Place to Shop               6                 Hotels                                       32        Store and Trading Area Analysis              59
A Great Place to Work              12                 Home Improvement                             34        Glossary                                     60
A Great Partner in the Community   16                 Sustainability Metrics and Progress          36        Company Directory                            61
A Great Place to Invest            20                 Workplace Metrics                            44
Australian Supermarkets and Petrol 22                 Governance                                   51

Scope of Report
Unless otherwise stated, this report covers all of our operations in Australia and New Zealand for the 2014 financial year (1 July 2013 to 29 June 2014). Data
for global sourcing offices in Hong Kong and China is only included in the Workplace Metrics section (excluding Safety). With only 25% ownership and no
operational control of Gage Road Brewery and 50% ownership of the Quantium Group, there is no information reported for these businesses.

                                                                                                   Corporate Responsibility Report 2014 | 1
Corporate responsibility report 2014 - Woolworths Group
Our Corporate Responsibility
Balance Sheet
A Great                                         A Great
Place to                                        Place to

Shop                                            Work
29.4m
Customers on average per week across
                                                198,642
                                                Employees
the Group

3.1%                                            75,923
                                                Young employees1
Reduction in average prices for customers

                                                2,156
in Australian Supermarkets

$750m                                           Indigenous Australian employees

                                                3,615
More than $750 million in savings for
our customers from key promotional
campaigns in Australian Supermarkets
                                                Employees with a disability

100%
Fresh meat sold in Australian Supermarkets
                                                33%
are sourced from Australia                      Senior management are women

96%                                             10.37%
                                                Lost Time Injury Frequency Rate,
Fresh fruit and vegetables sold in Australian
Supermarkets are sourced from Australia         a 14.7% decrease on 2013.

                                                1   Under 25 years of age

2 | WOOLWORTHS LIMITED
Corporate responsibility report 2014 - Woolworths Group
A Great                                        A Great
Partner in the                                 Place to

Community                                      Invest
$47.6m
Invested in community partners
                                               $1.7bn
                                               Dividends paid to investors, many of whom
                                               are mum and dad investors

$7.2m
Worth of educational equipment delivered       $114bn
to schools through Earn & Learn                Indirect contribution to Australian economy

$5.5m
Raised in response to bushfires and drought
                                               20% reduction
                                               Food waste, from stores

NZ$1.2m
Raised in the Countdown Kids Hospital Appeal
                                               $162m
                                               Estimated savings from energy efficiency

1.8m
Meals made from food donations
                                               $2.4bn
                                               Paid in taxes

                                                           Corporate Responsibility Report 2014 | 3
Corporate responsibility report 2014 - Woolworths Group
CEO’s Statement
This year Woolworths Limited celebrates 90 years in
business. Over the years we have survived and grown
because we have successfully adapted to what our
customers want. We have ensured our company works
efficiently and uses its resources with a mind to the future.
Grant O’Brien

                                                                                           A Great place to shop
                                                                                           In the past year, Australian Supermarkets’
                                                                                           customers benefited from deflation in
                                                                                           average prices of 3.1%. Over the past
                                                                                           five years, households saved on average
                                                                                           $2,200 due to this drop in the real price
                                                                                           of food and non-alcoholic beverages
                                                                                           (based on an average basket spend).
                                                                                           Local sourcing is important to us and our
                                                                                           customers. In Australia, all our fresh meat
                                                                                           and 96% of our fresh fruit and vegetables
                                                                                           are produced by Australian farmers.
                                                                                           In New Zealand, the figures are similar.
                                                                                           We have appointed local sourcing managers
                                                                                           in each state to help local producers
                                                                                           get their products on the shelves of their
                                                                                           local stores.
                                                                                           We have partnered with fresh food
                                                                                           campaigner Jamie Oliver to help us inspire
                                                                                           a healthier Australia. We want to get
                                                                                           Australians cooking with fresh food, and
                                                                                           together with Jamie we are giving them
                                                                                           the tools to do that.

This year Woolworths Limited celebrates   This is in Woolworths’ DNA, and as CEO           We also want the products we sell to be
90 years in business. Over the years we   it makes me proud to lead a company with         produced safely and humanely. By the end
have survived and grown because we        strong values at its core.                       of 2014, all fresh chicken sold in our stores
have successfully adapted to what our                                                      will be of RSPCA or equivalent approved
                                          It is as a result of these values and our        standard. We lead Australian supermarkets
customers want. We have ensured our
                                          performance that Dow Jones has named             in phasing out caged eggs from our stores
company works efficiently and uses its
                                          us global leader in the food and staples         by the end of 2018. In the ACT, we no longer
resources with a mind to the future.
                                          retailing sector of its Sustainability Indices   sell any cage-produced eggs. On the ethical
One of our six core values is that        for the second year in a row.                    sourcing front, we signed the Accord on
‘we always do the right thing’ for our                                                     Bangladesh Fire and Building Safety and
                                          This report shows how Woolworths is a
customers, our suppliers, our staff,                                                       worked with the not-for-profit sector on our
                                          great place to shop and to work, a great
our communities and our shareholders.                                                      Uzbek cotton policy.
                                          supporter of our communities and a great
                                          business in which to invest.

4 | WOOLWORTHS LIMITED
Corporate responsibility report 2014 - Woolworths Group
More than

                                             $750m
                                             In savings for our
                                                                                            198,642
                                                                                            Employees, making us the second
                                             customers from key                             largest private sector employer in
                                             promotional campaigns                          Australia and one of the largest in
                                             in Australian Supermarkets                     New Zealand

                                             $47.6m
                                             In community investment, including
                                                                                            $1.7bn
                                                                                            Paid in dividends to shareholders
                                             $7.2 million from Woolworths
                                             Supermarkets’ Earn & Learn program

A Great place to work                        A Great partner in the community               A Great place to invest
We employ more than 198,000 people,          Our community investment in the past           The Dow Jones Sustainability Indices (DJSI)
making us the second-largest private         year totalled more than $47.6 million,         recognises our targets and progress to cut
sector employer in Australia and one of      including Woolworths Supermarkets’             energy use, refrigerant losses and food
the largest in New Zealand.                  $7.2 million Earn & Learn program, which       waste sent to landfill.
                                             aims to support schools with the learning
We employ almost 76,000 people under                                                        Since 2009, we have invested $112 million in
                                             equipment they need.
the age of 25. This year we celebrated the                                                  energy efficiency and will save an estimated
contribution that Woolworths makes as an     We continue to work with The Salvation         $162 million in operational costs by 2015.
employer of young people. We partnered       Army as our official partner to help           Carbon emissions from our buildings
with News Corp Australia and some of         people in need following natural disasters.    are 18.7% lower than forecast and these
Australia’s largest employers to join with   After the NSW bushfires last October,          efficiencies mean we have the equivalent
the Prime Minister, the Hon Tony Abbott,     Woolworths matched customer donations          of 300 of our supermarkets operating as
to discuss what business can do to further   to raise more than $4.5 million. We also       carbon neutral.
develop our young people.                    supported drought-affected communities
                                                                                            More to do
                                             in Queensland and NSW with $950,000
When it comes to providing a diverse and                                                    I am pleased with the progress we made
                                             in donations.
inclusive workplace our commitment is                                                       this year. While these achievements are
clear. We have 2,156 of our employees        In New Zealand, the Countdown Food             excellent, there is always more to do. I look
identifying themselves as Indigenous         Rescue program donated more than               forward to taking further steps to ensure
Australians and 3,615 employees working      NZ$3.4 million of groceries to food bank       our customers, staff, communities and
with a disability.                           charity partners including The Salvation       investors continue to come along with us
                                             Army, Kaibosh, Fair Food and 0800              as we drive positive changes for all.
During the year, we invested $30 million
                                             Hungry. As part of food rescue, two-thirds
in more than 900,000 hours of staff                                                         I would also like to take the opportunity
                                             of our Australian supermarkets partner
training. Last year, we developed an                                                        to thank our stakeholders who have been
                                             with local farmers to collect waste food for
online learning solution, Retail Edge,                                                      part of the Woolworths journey over
                                             stock feed or on-farm composting.
that includes Certificates III and IV in                                                    90 years. We could not have achieved our
Retail Management as a pathway for           We take our role as a responsible              successes without your steadfast support
our accelerated Fastrack program.            retailer seriously. ALH Group has a clear      and commitment.
                                             commitment to be Australia’s most
                                             responsible hotel and gaming operator by
                                             proudly going above and beyond what is
                                             required by legislation. Woolworths Liquor
                                             Group has developed the ‘Our Community,
                                             Our Commitment’ Charter which sets out
                                             our shared responsibility with the community
                                             on the responsible service of alcohol.

                                                                                            Corporate Responsibility Report 2014 | 5
Corporate responsibility report 2014 - Woolworths Group
A Great Place to

Shop
                                                                               Our recent offer of a loaf of bread for as
                                                                               little as 85 cents shows how we provide our
                                                                               customers with better prices.
                                                                               This trend of customers saving through
                                                                               lower prices has continued for up to five
                                                                               years. Across the retail industry, customers
                                                                               have saved the equivalent of more than
                                                                               $17 billion, through the difference between
                                                                               inflation and the increase in food and
                                                                               non-alcoholic beverage prices.
                                                                               This fall in the real price of food and
                                                                               non-alcoholic beverages over the past five
                                                                               years equates to a total average household
                                                                               saving of more than $2,200 (based on an
                                                                               average basket spend).

29.4m                         Our customers tell us they want value for        Healthy food choices
                              money, healthy food choices, to buy locally      Customers are asking us to help them
                              sourced products and that our products are       make healthier choices, so we have
Customers served on average   ethically sourced.                               partnered with global healthy food
each week across the group                                                     campaigner Jamie Oliver, who inspires
                              Value For Money                                  people to cook and eat better food at

3,231
                              The Australian retail market is fiercely         affordable prices.
                              competitive and customers have been
                              benefiting from real price decreases over        Jamie has helped us encourage our
Retail stores                 the short and long term.                         customers to buy and eat fresh food in a
                                                                               number of ways. ‘Jamie’s Table’ is a range

7.9m
                              Across our brands we have used a range of
                                                                               of recipes for easy, healthy meals, which
                              promotional campaigns to provide value to
                                                                               encourage the use of fresh ingredients.
                              our customers in 2014. Woolworths’ ‘More
                                                                               These recipes are found on cards in
                              Savings Every Day’, Dan Murphy’s ‘Lowest
Everyday Rewards +                                                             store or online, where they are even
                              Liquor Price Guarantee’, Countdown’s

1.9m
                                                                               accompanied by a ‘how to’ video.
                              ‘Price Lockdown’ and BIG W’s ‘Lowest Price
                              Guarantee’ are just some of the offers           The ‘Created with Jamie’ range of easy-to-
Onecard members               that have delivered savings to customers.        cook meals includes fresh Australian meat
                                                                               and seafood, where most of the hard work
                              Australian Supermarkets’ customers have
More than                                                                      has already been done for our customers.
                              benefited this year from lower average prices,

$1.2bn
Online sales, up 50%
                              as reflected by average price deflation of
                              3.1%. Our ‘More Savings Every Day’ key
                              promotional campaigns, including Every Day
                              Value, Extra Specials and Big Savers, have
on the previous year          delivered savings of more than $750 million
                              to our customers.
6 | WOOLWORTHS LIMITED
Corporate responsibility report 2014 - Woolworths Group
3.1%
                                                              Average prices are 3.1% lower
                                                                                                                    $17bn
                                                                                                                    In the past five years, customers
                                                              in Australian Supermarkets                            have saved the equivalent of
                                                              than last year                                        $17 billion on the difference between
                                                                                                                    inflation (2.6%) and the increase in

                                                              $445
                                                                                                                    the prices of food and non-alcoholic
                                                                                                                    beverages (1.3%)2
                                                              Average annual household saving
                                                              over the past five years2

$2,200
Total household savings over
the past five years due to the
drop in the real price of food
and non‑alcoholic beverages2

$750m
Customers have saved more
than $750 million through
key promotional campaigns in
Australian Supermarkets

The ‘Jamie’s Garden’ sticker album and                        Since the launch last year, we have worked            Nutrition labelling gets healthier
collectable stickers, built on our previous                   with Nutrition Australia to cut portion               In June, we were the first Australian
popular collectables campaigns, are                           sizes, limit added sugars and increase the            retailer to adopt the Federal
introducing kids to information on healthy                    amount of wholegrain, dietary fibre and               Government’s voluntary Health
nutrition, fresh ingredients and the origin                   core food content in snacks.                          Star Rating Scheme as part of our
of food. Mini greenhouses and seed                                                                                  response to customers’ preferences
                                                              Product reformulation improvement
packets even encouraged kids to try                                                                                 and our commitment to inspiring a
                                                              is high on our list. In Australia, we are
and grow their own fruit and vegetables.                                                                            healthier Australia.
                                                              working with the Federal Government
Through the Jamie Oliver campaign, we                         and public health groups through the Food             This star rating allows customers to make
sold an additional 4.33 million items of                      & Health Dialogue to provide healthier                quick and easy informed choices about
produce compared to the same period                           choices for consumers. In New Zealand,                the nutrition of a packaged product. We
last year, and increased the demand for                       we are working with HeartSafe NZ.                     are putting star ratings on our own brands
Australian grown produce. Our customers                                                                             including Homebrand, Select, Macro,
                                                              We are reducing salt, sugar and saturated
spent an additional 7% on produce per visit.                                                                        Gold and Created with Jamie products.
                                                              fats, improving consumer messaging and
We have partnered with Nutrition                              cutting portion sizing – in particular in             Our customer research shows that
Australia to make it easier for people                        bread, cereals, simmer sauces, processed              72% prefer the government-approved
to buy nutritious snacks in the Healthier                     meats, soups, savoury pies, potato crisps,            Health Star Rating and 74% say the
Bites section of our food stores. This line                   savoury crackers and cheese.                          ratings will influence their purchases.
has more than 130 different individually
                                                              We are also continuing to eliminate
portioned snacks that meet Nutrition
                                                              artificial colours, flavours, MSG and
Australia’s healthy snack criteria.
                                                              preservatives (including sodium benzoate)
                                                              from our own brands.

2	Source: Response to Competition Review Issues Paper. Based on the difference between inflation and the increase
  in the price of food and non-alcoholic beverages.                                                                 Corporate Responsibility Report 2014 | 7
Corporate responsibility report 2014 - Woolworths Group
A Great Place to Shop

Supporting local growers                       During the year we also made significant                                                                         Fresh
In the past year, we signed partnerships       commitments to the dairy industry. We
                                                                                                                                                                Australian Sourced (%)                                                                                                    New Zealand sourced (%)
worth millions of dollars to Australian        signed long-term contracts to produce                                                                            (for Australian Supermarkets)                                                                                             (for New Zealand Supermarke
producers of fruit, vegetables and milk.       Woolworths Select milk, with several
These have created hundreds of jobs and        dairy processors around Australia. These

                                                                                                                                                                100

                                                                                                                                                                                                                                                                                          100

                                                                                                                                                                                                                                                                                                                         99
                                                                                                                                                                                               97

                                                                                                                                                                                                                       96

                                                                                                                                                                                                                                                                                                                                      96
provided businesses with the confidence        contracts, for up to ten years, give dairy

                                                                                                                                                                                                                                                                                                                                                   4
to invest in new plant and equipment.          farmers and milk processors long-term

                                                                                                                                                                                                                                                                                                                                                   85
                                                                                                                                                                                                                                                                                          Fresh chicken, pork and lamb
                                               certainty that allows them to invest in their
A highlight was a new partnership with SPC

                                                                                                                                                                                                                       Fresh fruit and vegetables

                                                                                                                                                                                                                                                    Fresh fish and seafood 61
                                               businesses with confidence.

                                                                                                                                                                                                                                                                                                                                                   Fresh fruit and vegetables
Ardmona for SPC to produce all Own Brand

                                                                                                                                                                                               Fresh bakery products
canned fruit products. As a result, 13 lines   We also successfully launched our first
of Select canned fruit will replace lines      Farmers’ Own brand of milk, with the
imported from Thailand and South Africa.       milk sourced directly from farmers in the

                                                                                                                                                                Fresh meat
                                               Manning Valley, NSW. After an initial

                                                                                                                                                                                                                                                                                                                                      Fresh beef
                                                                                                                                                                                                                                                                                                                         Fresh fish
This means that all our Own Brand canned
                                               trial of supplying three varieties of milk
apples, pears, peaches and apricots will be
                                               to eight local stores and 12 stores in
Australian-sourced, saving 50,000 trees in
                                               Sydney, this product is now available in
Victoria’s Goulburn Valley and benefiting
                                               all NSW Woolworths supermarkets. We
118 fruit growers.
                                               have also introduced Farmers’ Own in all
Since the announcements, customers have        WA stores using milk from farms in the                                                                           Fresh
supported our Australian canned fruit,         Margaret River and will roll out the product
with a 48% sales increase Australia‑wide.      using milk fromAustralian
                                                                 farms in Sourced
                                                                           Victoria(%)
                                                                                    and                                                                         New Zealand sourced (%)
                                                               (for Australian Supermarkets)                                                                    (for New Zealand Supermarkets)
This peaked at 124% in fruit-growing           Queensland before the end of 2015.
areas such as Mooroopna, the site of SPC’s
                                                                  100

                                                                                                                                                                100

                                               Our Local Sourcing Managers have been                                                                                                           99
                                                                               97

                                                                                                       96

                                                                                                                                                                                                                       96
processing plant.
                                               working with small suppliers to deliver their

                                                                                                                                                                                                                                                    4
                                                                                                                                                                                                                                                    85
For vegetable growers and processors in        products to new customers, whether at
                                                                                                                                                                Fresh chicken, pork and lamb

Tasmania and western NSW, the past year        a few local stores or to a large number of
                                                                                                       Fresh fruit and vegetables

                                                                                                                                    Fresh fish and seafood 61

                                                                                                                                                                                                                                                    Fresh fruit and vegetables
brought good news. We signed a contract        stores in many states. Companies like East
                                                                               Fresh bakery products

with Simplot Australia to provide all our      Coast Beverages from the Central Coast
Select frozen vegetables. This will benefit    (NSW), BD Farms from Adelaide (SA) and
155 growers who are now planting a further     the Queensland Yoghurt Company on the
                                                                  Fresh meat

650 hectares of peas, onions, carrots, corn,   Sunshine Coast (Qld) are now selling more
                                                                                                                                                                                                                       Fresh beef
                                                                                                                                                                                               Fresh fish

green beans, broccoli, cauliflower and         of their products locally and nationally.
brussel sprouts.

Groceries
Branded and Own Brand                          Branded and Own Brand                                                                                            Own Brand – % Australian Sourced
– % Stock Keeping Units (SKU)3                 – % Sales                                                                                                        Own Brand – % Australian Sourced
                                                                                                                                                                                                                        86.2
                                                                                                                                                                                                                       86.2

                                                                                                                                                                                                                                                      79.7
                                                                                                                                                                                                                                                     79.7
                                                                                                                                                                                                75.9

                                                                                                                                                                                                                                                                                  75.8
                                                                                                                                                                                               75.9

                                                                                                                                                                                                                                                                                 75.8
                                                                                                                                                                  70.7
                                                                                                                                                                 70.7
                                                                                                                                                                  Homebrand
                                                                                                                                                                 Homebrand

  Homebrand                  1.3%                 Homebrand                                                                   3.2%
  Select                     3.5%                 Select                                                                      5.1%
                                                                                                                                                                                                                        Macro
                                                                                                                                                                                                Select

                                                                                                                                                                                                                       Macro

                                                                                                                                                                                                                                                                                  Total

  Macro                      0.8%                 Macro                                                                       1.5%
                                                                                                                                                                                                                                                      Gold
                                                                                                                                                                                               Select

                                                                                                                                                                                                                                                                                 Total
                                                                                                                                                                                                                                                     Gold

  Gold                       0.2%                 Gold                                                                        0.1%
  Branded                   94.2%                 Branded                                                                    90.1%

                                               3 Calculated using different criteria to 2013
8 | WOOLWORTHS LIMITED                         4	Excludes produce that is not grown in commercial quantities in New Zealand, e.g. bananas, pineapples, taro and table grapes
cage free eggs
                                                                                                     Woolworths is the first
                                                                                                     Australian retailer to
                                                                                                     commit to the phasing out
                                                                                                     of cage-produced eggs.

                                                                                                     37.4%
                                                                                                     free-range eggs
Sales growth for animal welfare products (Australian Supermarkets)
                                        Percentage          Percentage         Percentage of
                                         increase of         increase of    total category of
                                    volumes in 2013     volumes in 2014     volumes in 2014
                                                (%)                 (%)                  (%)
Macro free-range chicken                       30.8                  23.0                9.7
Free-range eggs                                 9.5                   9.8               37.4
Barn-laid eggs                                  8.4                   0.4               10.0
Organic eggs                                   60.9                   0.9                2.6
                                                                                                     10.0%
                                                                                                     barn-laid eggs
Value with values                               More than half the eggs sold in
Just as customers have told us that they        Woolworths supermarkets are now
want healthier choices, they have also been     cage-free (free-range, barn-laid or organic
clear that they want ‘value with values’ –      eggs), and sales of cage-produced eggs
that is, they want value for money when         continue to fall each year.
they shop and they want this done ethically.
                                                Chicken meat: All fresh chicken meat sold
Animal welfare                                  in our stores by the end of 2014 will come
All our Own Brand products will be produced
to high standards of animal welfare.
                                                from RSPCA approved (or equivalent)
                                                farms. Chicken used as an ingredient in
                                                                                                     2.6%
                                                                                                     Organic eggs
                                                Own Brand products will also be sourced
Animal welfare is important to our
                                                from RSPCA approved (or equivalent)
customers, so we work closely with
                                                farms by the end of 2018.
our suppliers to improve the welfare of
animals used in our Own Brand products.         Our Macro brand chicken meat is either
Customers increasingly want food                certified to animal welfare criteria of Free
– particularly chicken, eggs and pork –         Range Egg and Poultry Australia (FREPA) or
produced from livestock reared to high          the Australian Certified Organic Standard.
standards of animal welfare.
                                                Pork: All our fresh pork meat is sourced
Eggs: Woolworths is the first Australian        from farms that only use gestation stalls
retailer to commit to phasing out cage-         for less than 10% of a sow’s gestation
produced eggs, and we will phase these          period. We are also on target to extend
out and stop using them as ingredients          free-range pork to all our stores by the
in our Own Brand products by December           end of this year.
2018. Since we announced our intention
to phase out cage-produced eggs,
535 of our supermarkets no longer sell
cage-produced eggs.

5	As at 8th October 2014                                                                        Corporate Responsibility Report 2014 | 9
A Great Place to Shop

    Woolworths sold more than
    6,600 tonnes of MSC and
    sustainable aquaculture
    certified fish and seafood

Sustainable seafood
All our fish and seafood will come from
sustainable sources.
Our long-term goal is to have all our
wild-caught seafood sourced from fisheries
certified to Marine Stewardship Council
(MSC) standard or equivalent.
For farmed seafood, we aim to have all the
products certified as sustainable through
credible third-party certification schemes      Palm oil: This year, we used 5,737 tonnes       These certification schemes aim for better
by next year.                                   of palm oil in our Australian Supermarkets      prices and decent working conditions for
We do not use harmful catch methods such        Own Brand food products. Almost                 farmers and workers in the developing
as fish aggregation devices (FADs) for tuna     two‑thirds of this was certified sustainable    world. We offer our customers a wide
harvesting. All our Own Brand canned tuna       under the identity-preserved, segregated        range of certified products in our Own
on shelves will be FAD free from early 2015.    or mass‑balance certification models,           Brand as well as other popular brands in
FADs increase bycatch which occurs when         compared to less then 10% in the previous       the tea, coffee and chocolate categories.
species other than the targeted tuna are        year. The balance of the non-certified
                                                                                                We also have a long-established ethical
caught accidently in fishing nets.              palm oil will be covered by the purchase of
                                                                                                sourcing policy, which enacts the
                                                GreenPalm certificates. (These certificates
Our high volume product lines have been                                                         International Labour Organisation (ILO)
                                                are sold on the GreenPalm Market and
assessed by the Sustainable Fisheries                                                           conventions and the UN Global Compact’s
                                                the full value is returned to the RSPO
Partnership (SFP) based on sustainable                                                          core values of human rights, labour
                                                producer to re-invest in sustainable
sourcing criteria. The SFP’s assessments led                                                    standards, the environment and
                                                palm‑oil production.)
to Woolworths delisting a number of species                                                     anti-corruption.
considered under pressure from overfishing      Our customers have told us they want
                                                                                                We expect all our suppliers to comply
and other impacts.                              to know when palm oil is used in our
                                                                                                with our ethical sourcing policy, which
                                                products, so we are labelling all the oils
SFP’s assessments are based on scientific                                                       has a compliance audit program for
                                                used in our products. At present, almost
evidence, independently conducted and                                                           factories making our Own Brand products.
                                                half (48%) of our Own Brand food
transparent. The assessment methodology,                                                        Experienced third-party certification
                                                products that use palm oil have it listed
results and sustainability ratings are                                                          bodies conduct these audits for us and
                                                as an ingredient.
publicly available on SFP’s website at                                                          rate factories as approved, conditionally
fishsource.org.                                 Woolworths is a member of the Roundtable        approved or at risk. Factories at risk or
                                                on Sustainable Palm Oil (RSPO) and use          with critical corrective actions can’t start
Deforestation                                   their sustainability certification standards.   production for Woolworths until they take
Our Own Brand products will have zero net                                                       corrective action and resolve critical issues.
deforestation by 2020.                          Better conditions for workers in our
                                                supply chain
Deforestation is a major global problem,        We uphold human rights for our employees
with tropical forest destruction estimated      and those working in our supply chain.
to cause about 20% of greenhouse gas
emissions. Deforestation also interrupts        Public concerns about working conditions
the water cycle and contributes to soil loss.   for small farmers and workers in the
Because of this, we aim to have zero net        developing world in areas such as tea,
deforestation impact from our Own Brand         coffee and cocoa production have created
products within six years.                      a growing market for independently
                                                certified products such as FairtradeTM,
                                                Rainforest Alliance and UTZ certified.
10 | WOOLWORTHS LIMITED
Paper and timber

     Own Brand                      copy paper                                   catalogue paper                    outdoor furniture

   100%                         441,512                                                         100%
      of Own Brand
    (including Select
    and Homebrand)
tissues, toilet paper and
                              We procured 441,512 reams
                             of copy paper for use in our
                                Australian businesses
                                                                                                                        100%
     kitchen towels
                                                                           of our catalogue paper                    All ‘patio by Jamie Durie’
                                                                            used in Australia and                      outdoor furniture
                                                                                New Zealand                                sold at BIG W

                                 and all were from
                                sustainably managed
                            sources certified by the Forest
                              Stewardship Council (FSC)

                                                                                 catalogues,
                                                                                                916m
                                                                            weighing 49,729 tonnes                   comes from sustainably
                                                                                                                        managed sources
                                                                                                                       certified by the FSC
                                                                                    sourced from
                                                                                sustainably managed
     sourced from                                                                 sources certified
 third-party certified                                                           by the Program for
 sustainable sources                                                             the Endorsement of

                                  0.5%
                                                                                Forest Council (PEFC)

                                    reduction in
                                   office paper use

                                                              Tonnes of certified tea,
                                                              coffee and chocolate
                                                              3,615

                                                                          Rainforest Alliance

                                                                                                2,834
                                                              Fairtrade

                                                                          805

                                                                                                UTZ

                                                                                                        Corporate Responsibility Report 2014 | 11
A Great Place to

Work
woolworths people are     Woolworths is one of the largest               to young job seekers, which included
special because...        employers in Australia and New Zealand.        that all experience is good experience,
                          We provide our employees with a                don’t underestimate the value of
                          great place to work, and a diverse and         communication and prepare and research
                          supportive work environment.                   for job interviews.
                          Woolworths is inclusive                        During the year we also relaunched our
                          Diversity and inclusion are essential to our   careers website, wowcareers.com.au,
                          continued growth and success, and we are       providing a vastly improved job search
                          committed to fostering and sustaining an       function and compatibility with mobile
                          inclusive and flexible workplace.              devices. Job seekers who access the site
                                                                         can find out key information about the
                          One of our values is that ‘we always do
                                                                         business, career opportunities and our
                          the right thing’, which includes that we
                                                                         graduate program.
                          are all responsible for providing a working
                          environment where everyone is treated          More women at the top
                          with dignity, courtesy and respect. Our        This year, we have reached 33%
                          employees should feel comfortable in           representation of women at Board level
                          their workplace, regardless of their gender,   and three levels below – meeting this target
                          age, ethnicity, beliefs, disability, sexual    a year earlier than planned.
                          orientation or gender identity.
                                                                         To reach this target, we have focused
                          More younger people                            on more flexible work for employees,
                          Woolworths is proud of its role as one of      50:50 attendance on all training
                          the largest employers of young Australians     programs, graduate recruitment,
                          and New Zealanders. We employ more than        and gender reporting.
                          75,000 young people and we will continue
                                                                         Of the 123 executive women appointed
                          to provide opportunities for new generations
                                                                         during the year, many are in roles
                          as they start their careers.
                                                                         such as general manager – marketing,
                          During the year we partnered with News         strategic marketing manager, senior
                          Corp Australia to deliver the Generation       property manager, strategy manager
                          Success initiative, which enables young        and finance manager.
                          people to talk to some of Australia’s
                                                                         Grant O’Brien continues to be a member
                          largest companies about improving job
                                                                         of the Male Champions of Change,
                          opportunities for their generation.
                                                                         a group of 22 CEOs committed to
                          Young employees from these companies           increasing the number of senior females
                          participated in a roundtable with              in Australian leadership.
                          their CEO’s and the Prime Minister,
                          Tony Abbott. Participants discussed the
                          challenges faced by young job seekers
                          and by their employers. This enthusiastic
                          group of young people provided advice

12 | WOOLWORTHS LIMITED
We are the

                                       2nd
                                       Largest private sector employer                         179,796
                                       in Australia                                            Australians

                                       Woolworths employs

                                       1.5%                                                    18,660
                                                                                               New Zealanders
                                       Of Australia’s total workforce
                                                                                               Including

                                       198,642
                                                                                               75,923 young people (under 25)
                                                                                               17,885 older workers (over 55)

                                       Employees

33%
Women comprise 33% of Board
members and managers up to three
levels below

2,156
Indigenous Australian Employees
(1.2% of Woolworths’ Australian
workforce)

3,129
Maori or Pacific Islander employees
(1.6% of total Woolworths workforce)
                                       Prime Minister Tony Abbott with participants of Generation Success.

3,615
People with a disability (1.8% of
                                       More Indigenous employment
                                       Our Reconciliation Action Plan aims to
                                       close the gap between Indigenous and
                                                                                               Other pathways to employment include
                                                                                               internships and a graduate program.
                                                                                               Hannah Pehi, winner of the Generation
                                       non-Indigenous Australians through                      One ‘CEO for the Day’ competition,
Woolworths’ Australian workforce)      employment. In this year’s employee                     completed an internship and gained
                                       engagement survey, 2,156 employees                      full‑time employment with Woolworths.
                                       identified themselves as Indigenous.
                                                                                               We are a member of Supply Nation, a body
                                       We are working with external partners on                dedicated to growing diversity within the
                                       pre-employment programs in communities                  supply chain. We use the teleconferencing
                                       to create the best opportunities for                    service provided by Message Stick, a
                                       potential employees to gain retail skills               business certified by Supply Nation.
                                       and prepare to enter the workforce.
                                                                                               Woolworths also supports Indigenous
                                       Over the past few years, our partnerships               suppliers such as Kalano Farm, a commercial
                                       with organisations such as Diversity                    tomato growing operation in the Northern
                                       Dimensions and Globally Make A Difference               Territory, which supplies our supermarkets
                                       have delivered employment opportunities                 and is a past recipient of funding from our
                                       for almost 900 Indigenous workers.                      Fresh Food Future program.

                                                                                              Corporate Responsibility Report 2014 | 13
A Great Place to Work

                                                                                                     900,000
                                                                                                     Over 900,000 hours of online,
                                                                                                     classroom and on-the-job
                                                                                                     training sessions, across more
                                                                                                     than 1,000 courses6

                                                                                                     $30m
                                                                                                     More than $30 million7
                                                                                                     invested in training staff

                                                                                                     509
                                                                                                     Apprentice butchers and
                                                                                                     bakers trained

More jobs for people with disabilities         More career development                               We have developed a Woolworths Limited
One of our priorities is continuing to         ‘We never stop learning’ is one of                    Leadership Profile and launched it across
support people with a disability to            Woolworths’ core values, and all                      the company, identifying the six behaviours
find jobs. We have introduced a new            employees are expected to take personal               required for leadership success.
recruitment system and, to make sure           responsibility for improving and developing
                                                                                                     Training and development
it’s disability friendly, we have asked the    themselves and each other. We provide
                                                                                                     Fastrack: During the past two years,
Australian Network for Disability to review    a mix of learning opportunities, including
                                                                                                     218 employees have participated in the
the application process.                       coaching and conversations, everyday
                                                                                                     Fastrack program for future managers
                                               experiences and formal training.
This year, 3,615 employees voluntarily                                                               and leaders. In the August 2014 intake
declared they had a disability through         Online tools encourage all staff to                   of 114 employees for the nine-month
our annual employee engagement survey,         participate in training, plan and track               cross-business course, 42% were women.
an increase of 554 from 2013.                  their development, and engage with their
                                                                                                     Management and leadership
                                               managers and talent development teams
We continue to be a gold member of the                                                               development: The Leadership Edge
                                               to help achieve their goals.
Australian Network on Disability and our                                                             program began this year for 121 operational
Group Head of Safety and Health is a           Investment in development spans core                  leaders across all businesses. Modules
member of the board of this organisation.      training programs, training for new                   include peer coaching, on-the-job
We recently took on an intern through a        employees and leadership programs                     assignments and face-to-face training
‘step up’ program – helped by the Australian   for managers and executives.                          through a values-based approach.
Network on Disability – and as a result the
                                                                                                     Graduate program: Graduates are
intern has been offered a job.
                                                                                                     supported through on- and off-the-job
More experience                                                                                      training for two or three years. This year’s
We also employ almost 17,900 workers,                                                                46 graduates joined the 44 already in
aged over of 55 years. We leverage the                                                               the program.
unique contributions and experience
of these employees to meet the needs
of our customers. We actively recruit
older workers and advertise on the
olderworkers.com.au website.

                                               6	Excluding ALH Group, The Wine Quarter, Pinnacle, EziBuy, Home Timber and Hardware Distribution Centre
                                                 award employees, Global Sourcing, Retail FM, and New Zealand Supermarkets employees
                                               7	Excluding, The Wine Quarter, Pinnacle, EziBuy, Home Timber and Hardware Distribution Centre award
14 | WOOLWORTHS LIMITED                          employees, Global Sourcing, Retail FM, and New Zealand Supermarkets employees
More care for our people
Our employees expect to work in a safe        More staff development                   online and in off-the-job workshops to
environment and for us to provide them        through Retail Edge                      help them increase the effectiveness
with the training and equipment they need     Last year, we developed an online        of their retail skills, gain merchant
to conduct their work safely. We require      learning solution, Retail Edge, which    skills and gain customer service
our employees to report all incidents,        enables employees to use flexible        experience. We have found that Retail
whether near misses or those which result     accredited training when it suits them   Edge gives employees more flexibility
in an injury, so we can address the cause     in any location.                         to learn and collaborate across all
and ensure they receive the required                                                   our divisions. So far, 1,343 employees
treatment and can return to work.             We see nationally accredited training
                                                                                       have taken part.
                                              as a core part of developing retail
At the time of preparing this report our      skills throughout Australia and          This year, the Retail Edge program
Lost Time Injury Frequency Rate (LTIFR)       we offer traineeships to people          was recognised internally, receiving
was 10.37%, a decrease on the restated        who want to advance their skills in      the Jack Shewmaker Innovation
rate we reported for 2013.                    retailing and providing exceptional      Encouragement Award.
All Good                                      customer experiences.
                                                                                       The program has also been recognised
We are encouraging employees to               The Retail Edge program includes         in the retail industry through trainer
make healthy life decisions by providing      Certificates III and IV in Retail        excellence and finalist nominations in
information and building a culture that       Management, and it’s a pathway into      the Australian HR Awards – Best Use
promotes healthier behaviours. The key        our accelerated Fastrack program.        of Technology, and Best Learning and
strategies of the program are to:             We aim to have 10,000 of our             Development Strategy categories, and
·· encourage employees to understand          employees participate in Retail Edge     for the National Learn X Impact awards.
   their health through face-to-face or       during the next five years.
   online health assessments
                                              The program’s WOW Learning Zone
·· educate employees on their health          recognises people’s existing retail
   and give options on how that might         skills and experiences through online
   be different                               learning programs. Trainees learn
·· support an employee when they
   choose to use available programs.
Our wellbeing program, All Good, has
extended beyond the initial pilot within
the Supermarkets group, with elements
introduced to other divisions. We have
seen positive results too: a group of
employees saw their aggregate ‘bio-age’
drop 1.9 years through the program.
(Bio‑age is a person’s body-age in contrast
to their actual age – an unhealthy person’s
bio-age may be 60 years compared with
their actual age of 45 years.)
Other positive behaviours resulting from
the program were better nutrition, more
exercise and less smoking. We have
found this change doesn’t stop with the
individual but also influences others
around them to live healthier lives. More
than 8,000 employees are enrolled in the
wellbeing program, and many are making
significant changes in their lives.

                                                                                       Corporate Responsibility Report 2014 | 15
A Great Partner in the

Community
                                                                    Woolworths connects with millions of
                                                                    customers, in stores and online, each week.
                                                                    This, along with our more than 198,000
                                                                    employees, gives us the opportunity to
                                                                    raise funds for, partner with, and support
                                                                    community groups that our customers,
                                                                    employees and suppliers are engaged with.
                                                                    Our community investment strategy
                                                                    and key focus areas for our business
                                                                    divisions help us prioritise our support and
                                                                    ensure that our community partnerships
                                                                    and investment:
                                                                    ·· are relevant to our core businesses
                                                                    ·· meet community expectations, and
                                                                    ·· win support from customers
                                                                       and employees.
                                                                    In 2014, we invested the equivalent
                                                                    of $47.6 million in our community
                                                                    partnerships and programs.

   Thank you                                                        The Salvation Army
                                                                    Droughts, floods, bushfires – all or some of
   We want to thank all our customers for their                     these natural disasters hit Australians and
   amazing support of our fundraising initiatives.                  New Zealanders each year. We have worked
                                                                    with The Salvation Army since 2010 as
                                                                    our official partner to respond quickly and
                                                                    appropriately to people needing help with

0.85%
                                Our target                          food, shelter and clothing in the wake of
                                                                    natural disasters.
                                We are aiming to contribute the
                                equivalent of at least 1% of        After the NSW bushfires last October,
Of pre-tax profit contributed   pre‑tax profit to the communities   Woolworths and our customers raised
to the community (excluding     in which we operate.                money for The Salvos’ bushfire relief appeal.
funds donated by customers                                          During the appeal, Woolworths matched
and employees)                                                      customer donations dollar‑for‑dollar, raising
                                We are doing this by supporting     a total of $4,560,700.
                                organisations, programs
                                and initiatives in ways that are
                                relevant to their business aims,
                                strengths and skills.

16 | WOOLWORTHS LIMITED
In 2014, we invested the                      This was done through

                                              $20.9m                                        $4.9m
equivalent of

$47.6m
To support our community partners
                                              Our cash donation                             In kind

                                              $15.6m                                        $6.2m
and programs

                                              From customers and employees                  Employees and management time

Droughts also brought out the best in         We support a number of annual
Woolworths’ customers, who donated            fundraising events including the ‘Put your
more than $350,000 to our drought appeal      foot down’ walks and the ‘Best Things in
for farmers in Queensland and NSW.            Life’ dinners. The Avner Foundation is also
We matched this dollar for dollar, and        supported by Coca-Cola Amatil through
also donated $250,000 in food and fuel        sales of specially marked Deep Spring
vouchers, so the total amount raised was      water sold exclusively at Woolworths
more than $950,000.                           supermarkets.
Avner Nahmani Pancreatic                      This year, our CEO Grant O’Brien and
Cancer Foundation                             senior executives participated in a
Woolworths and its suppliers have             300 kilometre bike ride over three days
supported the Avner Nahmani Pancreatic        to raise awareness and funds for the
Cancer Foundation since the passing of        foundation and Tour de Cure.
our much loved former colleague and the
                                              We are grateful to our suppliers for
establishment of the foundation in 2008.
                                              supporting the Avner Nahmani Pancreatic
The Avner Foundation is the only              Cancer Foundation.
foundation in Australia exclusively focused
on pancreatic cancer research and seeks
to break through 40 years of minimal
progress by doubling the number of people
who survive pancreatic cancer by 2020.

                                                                                            Corporate Responsibility Report 2014 | 17
A Great Partner in the Community

                                                                       Foodbank
                                                                       We are working with Australia’s largest
                                                                       hunger relief organisation, Foodbank,
                                                                       to help Australians who don’t have
                                                                       enough to eat.
                                                                       During the year, we gave 1,147 tonnes
                                                                       of food to Foodbank, which provided
                                                                       1.5 million meals. Foodbank estimates our
                                                                       contribution created more than $26 million
                                                                       worth of ‘social return on investment’.
                                                                       Social return goes beyond feeding people
                                                                       this week or this month – it is the value
                                                                       of the wider benefits from the services
                                                                       Woolworths provides. Foodbank’s research
                                                                       shows that providing food helps improve
                                                                       people’s emotional wellbeing, their
                                                                       self-worth and social relationships,
                                                                       academic achievement and general
                                                                       standard of living.

   Woolworths donations
   to Foodbank in 2013–14
   During the year, we gave
   1,147 tonnes of food to Foodbank,
   which provided 1.5 million
   meals. Foodbank estimates our
   contribution created more than
   $26 million worth of ‘social return
   on investment’.
                                              1,146,890kg
                                                   $26.4m               1,529,200
                                                   social return              meals

     Food
  Donated        NSW            Vic        Qld          SA           WA            NT               Tas
       kg       227,430       194,075    294,061       97,169      246,360       40,583            47,212

18 | WOOLWORTHS LIMITED
Earn & Learn                                  Working with our suppliers
Woolworths ran the Earn & Learn program       We listen to our suppliers and work
for the third time last year, delivering      collaboratively with them because good          “Woolworths is quite
$7.2 million of educational equipment.        and fair supplier relationships ensure good      pragmatic and understands
Across Australia 13,148 schools and           services. Our customers also expect us to        that they have to deliver
early learning centres redeemed their         deliver value and source locally.                outcomes for suppliers
Woolworths Earn & Learn points for new                                                         to get the outcomes
                                              In the Advantage Group’s (advantagegroup.
educational equipment – in fact more than
400,000 items of new equipment were
                                              com) independent supplier survey, our            Woolworths also wants to
                                              overall performance ranking improved from        achieve. They understand
delivered as a result of the program.
                                              fourth in 2013 to third in 2014. The survey
                                                                                               those outcomes have to
Equipment categories that were popular        included more than 1,000 responses from
with primary and high schools were            213 suppliers and the retailers included         be sustainable.”
mathematics, English and science, arts &      ALDI, Coles, Foodland, FoodWorks,
crafts, robotics, sport, music and dance.     Metcash, Costco, SPAR, Target, Kmart,
                                              BIG W, Drake Food Markets, Harris Farm,
Early learning centres redeemed their
                                              Ritchies, Priceline and Woolworths.
Woolworths Earn & Learn points for
equipment for younger children, including
resources for arts & crafts, sand and water
play, construction and sports.

                                                                                            $7.2m
                                                                                            Of educational equipment delivered

                                                                                            13,148
                                                                                            Schools and early learning centres
                                                                                            redeemed their Woolworths
                                                                                            Earn & Learn points for new
                                                                                            educational equipment

                                                                                            400,000+
                                                                                            Items of new educational equipment
                                                                                            were delivered

                                                                                            Corporate Responsibility Report 2014 | 19
A Great Place to

Invest
Financial performance                   Two of our core values, ‘Every cent           We have invested in many technologies

$60.8bn
                                        counts’ and ‘Doing the right thing’ need      to reach these savings, including:
                                        not be mutually exclusive. High standards     1. carbon dioxide refrigerants used
                                        in Corporate Responsibility can help              in more than 120 Australian and
Sales from continuing operations        increase returns to our investors.                New Zealand supermarkets
up 3.9% or 5.9% on a normalised         Global leader for second                      2. energy-efficient refrigeration cases
52 week basis8                          consecutive year                                  with high-efficiency fans, LED lighting,
                                        For the second consecutive year, the              better glass-door de-fogging,

$3,775.2m
                                        Dow Jones Sustainability Indices (DJSI) and       glass doors on dairy cases, lids on
                                        RobecoSAM rated Woolworths Limited as             island freezers
                                        the world’s industry group leader for the     3. LED lighting in produce areas and
EBIT from continuing operations         food and staples retailing sector.                grocery aisles
before significant items9 up 3.3% or
5.3% on a normalised 52 week basis8     We are very pleased to be recognised          4. heat reclaim from refrigeration
                                        for the high sustainability standards             compressors to heat stores

$2,451.7m
                                        we have set and achieved. Each year,          5. improved control systems for
                                        more than 3,000 companies worldwide               air‑conditioning and lighting.
                                        are invited to take part in RobecoSAM’s
                                        analysis of financially material economic,    Setting high standards
NPAT from continuing operations
                                        environmental and social practices.           in our new stores
before significant items9 up 4.2% or
                                                                                      In June in Sydney’s Double Bay, we
6.1% on a normalised 52 week basis8     Reducing our cost                             opened one of Australia’s most modern
                                        of doing business                             supermarkets, with a walk-in cheese room,
Ranked 15th in global retailing         We drive for efficiency all the time and,     fresh barista coffee, a pizza bar and a
(based on 2012 sales revenue), the      in line with our core value of ‘every cent    sushi bar.
highest ranking Australian retailer10   counts’, we aim not to waste energy
                                        and food. As a result, we have targets        Less obvious to the customer are the
                                        to reduce energy use, refrigerant losses      supermarket’s high standards in energy
                                        and food waste sent to landfill.              and carbon efficiency, including those
                                                                                      listed previously, plus LED lighting in all
                                        Since 2009, we have invested                  trading areas. We expect to save 110MWh
                                        approximately $112 million in energy          of electricity, more than 4% of the store’s
                                        efficiency and saved an estimated             annual usage, by using LED lighting for
                                        $162 million in operational costs.            aisle lights, down lights, display lights and
                                                                                      graphic panels.

                                                                                      8  Full year growth has been adjusted to remove the
                                                                                         53rd week in the 2013 financial year
                                                                                      9	Refer to page 35 of the 2014 Annual Report for
                                                                                         more information
                                                                                      10 Deloitte, Global Powers of Retailing 2014:
20 | WOOLWORTHS LIMITED                                                                  Retail Beyond begins
$114bn
                                          Return to families & impact
                                          on the Australian economy

                                          $7.3bn
                                          Paid in wages and benefits
                                                                                        And 775,000 jobs is the indirect
                                                                                        contribution to Australia’s economy
                                                                                        (flow-on in economy from value of
                                          to employees                                  sales and construction spend)

                                          $1.7bn
                                          Paid in dividends to shareholders
                                                                                        $162m
                                                                                        Savings from energy
                                                                                        efficiency measures

Food waste
Our investors can be assured that our value of ‘Every cent counts’ extends through to the end of our supply chain,
where we minimise waste.
Our main target is no food waste to landfill by next year. We are doing this through avoiding waste, supporting food
rescue, partnering with farmers, commercial composting and alternative waste treatment.

       1.                       2.                         3.                        4.                         5.
    avoiding                donating to               working with            commercial-grade             alternative
   food waste                charities                  Farmers                  compost                 waste treatment

  through efficient          More than 670              two-thirds of                More than               95 Australian
 ordering and stock           australian               our australian             200 australian           Supermarkets sent
    management               supermarkets           supermarkets partner           supermarkets                more than
                               donated               with local farmers          sent an estimated
                                                     to collect produce

                           1,381t
                                                    and bakery waste for
                                                                                                          5,800t
                                                                                8,700t
                                                    stock feed or on-farm
                                                         composting
                                                                                                           of food waste to
                                of food
                                                                                                         Earth Power in Sydney
                                                                                  of FOOD WASTE
                                                      this diverts over

and improving supply

                                                   26,000t
   chain efficiency
                                                                                                            Converting this
  to deliver fresher           generating                                         to commercial              material into
 products to stores            more than                                          composting in              fertiliser and
                                                        of FOOD WASTE              most states               green energy

    and using new
technology to reduce                                 and SAVEs MORE THAN

                                                         $8m
  wastage of items
  produced in-store

                            1.8m
                                                          IN WASTE
                                                        SERVICE COSTS

                            meals
                                                                                       Corporate Responsibility Report 2014 | 21
Australian Supermarkets
and Petrol
Woolworths is Australia’s largest supermarket chain, operating
931 supermarkets and 502 Woolworths-owned petrol sites
across Australia. We rely on the 117,000 staff in our stores
and support offices to provide our customers with superior
service, range, value and convenience.

Progress against objectives
1.	First choice for fresh food                         A Great place to                                A Great place to
· We grew our fresh market share,                           shop                                            work
   in line with our strategy to be first
   choice in fresh food.                   In a competitive retail environment,             Our supermarkets provide employment
· We improved our supply chain to          Woolworths is committed to providing             and career opportunities for Australians
   provide fresher produce to our          better value, a better offer and better access   across all states and territories, in
   customers and reduce waste.             for our customers. Our stores and online         metropolitan and regional areas and
                                           offers allow more and more Australians           across all age groups. During the year we
2.	Unbeatable value
                                           to buy their favourite products at a great       opened 34 (net) new stores and created
· Key promotional campaigns
                                           price. We served an average of 21.1 million      jobs for more than 3,200 people, including
  generated savings of more than
                                           customers a week, who benefited from             more than 1,800 younger employees.
  $750 million for our customers.
                                           average price deflation (3.1%) and savings
                                                                                            We also opened 20 new (net) petrol sites
3.	Online retailing                        from key promotional campaigns (more
                                                                                            during the year, creating 96 new jobs.
· Woolworths Online continues to           than $750 million).
  lead the way in the retail grocery                                                        Woolworths Petrol continues to be one of
                                           Along with value, we offer our customers
  and alcohol category, with 2014 online                                                    the company’s leaders in safety standards
                                           a broad range of Australian-produced
  sales increasing more than 40%                                                            and performance, with the lowest Lost
                                           foods in our Fresh and Own Brand offers.
  and over 3 million items delivered to                                                     Time Injury Frequency Rate (LTIFR) in all
                                           We are proud that 96% of our fresh fruit
  customers each week.                                                                      of our trading divisions.
                                           and vegetables and all of our fresh meat is
4.	Customer insights transforming          sourced from Australian farmers. Almost
  our business                             76% of our Own Brand grocery products
· We are using data to refine our          are made in Australia.
  store layouts and ranges to meet                                                                    A Great partner in
                                           We have committed to responsible
  our customers’ evolving needs.                                                                       the community
                                           sourcing, animal welfare and supporting
5.	Innovative offer                        local farmers. Many of these topics are
                                           covered earlier in this report.                  This year, Woolworths Supermarkets
· We engaged families and created
                                                                                            contributed approximately $37.2 million to
   customer loyalty through our
                                                                                            community causes and partners, including
   Collectables campaigns – ‘Aussie
                                                                                            direct donations, stock, and employee and
   Animals’, ‘DreamWorks Heroes’
                                                                                            customer contributions.
   and ‘Jamie’s Garden’.
                                                                                            Our supermarkets continue to be a focal
                                                                                            point for many communities, providing
                                                                                            opportunities for us to raise funds
                                                                                            for causes that are important to our
                                                                                            customers and staff. During the year, we
                                                                                            encouraged employees in each state to
                                                                                            nominate and support a major fundraising
                                                                                            program for a charity of their choice.

22 | WOOLWORTHS LIMITED
$48,236m
                                                      Our stores picked the following charities to support in their states:
                                                      State              Charity                                                       Contribution

Sales  11                                             NSW/ACT            Variety, the children’s charity                                $598,000
                                                      QLD                Children’s Hospital Foundation                               $3,950,000

$3,368m
EBIT11
                                                      VIC/TAS
                                                      SA/NT
                                                                         Royal Children’s Hospital Foundation
                                                                         Royal Flying Doctor Service
                                                                                                                                       $500,000
                                                                                                                                        $104,000
                                                      WA                 Telethon                                                       $250,000

931
Supermarkets
                                                      Woolworths Earn & Learn: The Earn
                                                      & Learn program ran for the third time
                                                      last year, delivering $7.2 million of
                                                                                                      Jamie Oliver’s Ministry of Food: Our
                                                                                                      partnership with Jamie Oliver connected
                                                                                                      us to a fellow iconic brand that has a
                                                      educational equipment to schools and            strong message on eating fresh, healthy

502
                                                      early learning centres. Schools could           food. With the Ministry of Food we
                                                      redeem Woolworths Earn & Learn points           supported the Food Revolution Day, a
                                                      for resources they needed, whether for          world record attempt to run the largest
Woolworths owned petrol sites                         mathematics, science, English, art, music       cooking class, where children learnt how
                                                      or sports.                                      to make a healthy dish – Jamie’s Rainbow

117,415
                                                                                                      Salad Wrap.
                                                      Taronga Zoo: Woolworths’ partnership
                                                      with the Taronga Conservation Society           Fresh Food Future program: With our Fresh
                                                      Australia began with our three-year,            Food Future program, we aim to help our
Employees                                             $1.9 million investment in the Great            agriculture sector with challenges such as
                                                      Southern Ocean precinct and the Fish For        climate change and attracting talented people
                                                      Good program. Taronga Zoo also helped           to the sector. Since 2007, we have invested
                                                      us with the wildly popular ‘Aussie Animals’     more than $10 million in this program, with
                                                      collectable cards promotion.                    our trusted partners such as Landcare
                                                                                                      Australia, Royal Agricultural Society of NSW,
                                                                                                      Australian Rural Leadership Foundation,
                                                                                                      Nuffield Australia and many more.

11	Sales and EBIT are combined for Australian Food,
   Liquor and Petrol                                                                                 Corporate Responsibility Report 2014 | 23
$37m
                                        The Fresh Food Future program has
                                        two main aims:
                                                                                                     A Great place to
                                        1. growing more with less through advancing                      invest
Estimated savings in operating              farming innovation, productivity and long-
costs this year                             term sustainability, and                     One of our core values is ‘every cent

40,000t
                                        2. n  urturing talent by supporting the         counts’. Maximising business efficiency
                                             next generation of farmers and              and minimising waste are key ways for
                                             industry leaders.                           the business to reduce costs. This allows
Of food waste directed from landfill,                                                    us to return savings to our customers and
                                        Since 2007, we have invested $6.6 million
saving more than $8 million                                                              dividends to our shareholders.
                                        through Landcare Australia to help
                                        Australian farmers grow more with less.          Investment in energy efficiency and
                                        The program has funded more than                 low-carbon technology has occurred
                                        190 projects around Australia to encourage       across the company, but as Australian
                                        innovation and efficiency, reduce input          Supermarkets accounts for more than
                                        costs and increase productivity and              60% of our energy use, we have focused
                                        long‑term sustainability.                        on innovation in refrigeration, air
                                        bstreetsmart: Woolworths Petrol has              conditioning and lighting. We estimate
                                        partnered with bstreetsmart to support           we will save more than $37 million in
                                        road safety and responsible driving              operating costs this year as a result.
                                        education. bstreetsmart is the inspiring         Removing food waste from the business
                                        initiative of the trauma service at              is a key target, and present opportunities
                                        Westmead Hospital, which sees a                  for reducing costs. Australian
                                        disproportionate number of people                Supermarkets has food waste diversion
                                        aged 15 to 30 years injured through              programs which have diverted more than
                                        road accidents.                                  40,000 tonnes of food waste from landfill,
                                        bstreetsmart promotes safe behaviour as          saving more than $8 million in costs.
                                        drivers, riders and passengers to people
                                        in this age group, to cut their fatality and
                                        injury rates.
                                        Through the generosity of our customers
                                        and the support of our staff, this year
                                        we raised more than $175,000 for
                                        the program.

24 | WOOLWORTHS LIMITED
Woolworths
Liquor Group
Woolworths Liquor Group now has three
distinct formats: Dan Murphy’s (Destination),
BWS (Convenience), and The Wine Quarter
(consolidates our Online and Direct offers).

Progress against objectives                                                                   Responsible marketing
1. Continuing to evolve Dan Murphy’s                                                          Last year, we signed the Alcohol Beverages
                                                          A Great place to                    Advertising Code (ABAC) to formalise our
· We continue to expand our footprint as                       shop
   Australia’s premier liquor destination,                                                    existing undertaking to abide by the ABAC
   opening 11 Dan Murphy’s.                                                                   adjudication process and to ensure that
                                              DrinkWise Australia                             our advertising complies with the code.
· 	Total Dan Murphy’s stores now              Woolworths Liquor Group (WLG)
   number 186.                                contributes to programs run by DrinkWise,       Our charter for selling alcohol has been
                                              an independent, not-for-profit organisation     active for a number of years and includes
2. Developing the BWS brand and                                                               10 principles on which we assess any
                                              that promotes healthier and safer drinking
  convenience offer                                                                           alcoholic or alcohol-branded products
                                              through national information campaigns.
· We continued to grow BWS, Australia’s                                                       before considering them for sale. These
                                              DrinkWise is founded on industry
  largest liquor retailer, opening 36 (net)                                                   principles send a strong message against
                                              leadership and community partnerships.
  new stores in the year.                                                                     products that target minors or encourage
· Total network now 1,216 stores.             This year, the DrinkWise campaign on            irresponsible drinking.
                                              ‘how to drink properly’ reached more
3.	Maintaining leadership in online and       than 90% of 18 to 24 year olds (see
  direct via The Wine Quarter                 howtodrinkproperly.com). The Federal
· danmurphys.com.au further embedded          Government audited the DrinkWise labelling
  its position as the premier Australian      project to raise awareness about alcohol                   A Great place to
  online liquor destination, being the        consumption and pregnancy. We are pleased                       work
  most visited liquor website in Australia.   that the audit found high rates of compliance
  Online sales increased more than 55%        among buyers of WLG Exclusive Brand             We expanded this year, opening 11 new
  with a number of new features added         products. WLG also includes DrinkWise’s         Dan Murphy’s stores and 36 (net) new BWS
  to the website, including enhanced          ‘Get the Facts’ pictogram on retail brand and   stores, creating an estimated 300 jobs.
  delivery options and new customer           Pinnacle product advertising.
  recommendation functionality.                                                               Responsible service of alcohol
                                              Australia’s drinking culture is changing        Our standards for responsibly retailing
4. Increasing own and exclusive brand         for the better, according to last year’s        liquor go beyond regulatory compliance
  penetration through Pinnacle Drinks         Australian Institute of Health and              – all WLG staff must be trained in
· We are providing customers with             Welfare’s National Drug Strategy                responsible service of alcohol. Staff
  enhanced ranges as we continue to build     Household Survey.                               complete regular refresher training
  our own and exclusive brand portfolio.                                                      courses, and Woolworths’ compliance
                                              Younger Australians are continuing to delay     with responsible service and licensing
                                              their first alcoholic drink. The age when       is assessed in annual audits of our

1,402
                                              they first drink alcohol rose from 14.4 to      licensed outlets.
                                              15.7 years between 1998 and 2013. Fewer
                                              12 to 17 year olds are drinking alcohol – the
Stores                                        proportion not drinking rose from 64% to
                                              72% between 2010 and 2013.

5,993
Employees
                                                                                              Corporate Responsibility Report 2014 | 25
You can also read