Corporate Responsibility Review 2020 - Pentland Group
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Pentland Group Corporate Responsibility Review 2020
Introduction
A view from our Chairman, Stephen Rubin 3
Who we are 5
UN Global Compact 9
2020: a year in review 11
This Pentland Group Corporate
Responsibility review evaluates COVID-19 15
the progress we’ve made during Partners and memberships 16
the period January to December
2020 and outlines our plans Corporate Responsibility
for 2021.
at Pentland Brands Limited
It has been approved by the
Positive Business 20
Pentland Group Board.
Governance 21
You can view our previous
Corporate Responsibility People 24
reviews here.
Planet 32
Corporate Responsibility
at JD Sports Fashion plc
Governance 40
People 42
Planet 51
2
A view from our Chairman,
Stephen Rubin
2020 has been one of the most challenging a small way by making donations to some Speedo UK announced its partnership with
years in many of our memories. As a family of the incredible organisations providing the Black Swimming Association, to address
business with people at its heart, our priority critical medical care and essentials to those barriers faced by ethnic minority groups in
throughout the global pandemic has been most in need. the water, and Kickers launched its Change
protecting our employees, partners, and Starts Here platform, which saw it join forces
In 2020, the Black Lives Matter movement
those working in our supply chain, while with UK charity Show Racism The Red Card.
highlighted the inequalities faced by
continuing to run our business to support In solidarity with the BLM movement, JD
many people from ethnic minority groups,
our consumers. also announced a new partnership with
particularly those in the black community.
Blueprint for All, which supports the growth
Both Pentland Brands and JD Sports While we have always been proud of our
of a more inclusive society.
Fashion plc build products to support health, diverse and inclusive culture, 2020 was an
wellbeing and confidence. During extended opportunity for our teams to reflect and The JD Foundation, which supports charities
periods of restrictions, their brands not only challenge themselves to do more. Pentland working with disadvantaged young people in
kept millions of global consumers healthy, Brands celebrated Global Inclusion Week the UK, supported 18 charities in 2020 with
active and entertained, but also offered by committing to build a business where a focus on mental health and homelessness
product discounts and provided personal everyone is welcomed, supported and and has now donated £3.1 million since its
protective equipment to support frontline encouraged to grow and contribute. These launch in 2015.
workers. We supported the global efforts in ambitions are also shared by its brands;
3
While the pandemic was a dominating force providing solutions to some of the world’s Development Goals (SDGs) and we remain
in 2020, it was important for us not to lose most prevalent challenges. We first opened committed to playing our part to achieve
sight of the climate crisis and the role we the Pentland Centre for Sustainability in them by 2030.
play in helping to protect our planet. Both Business at Lancaster University in 2015.
I am confident that we will continue to build
Pentland Brands and JD have increased the In 2020 we committed to sponsoring the
on our corporate responsibility commitments
sustainability credentials of their products Centre until 2025 and welcomed Professor
and I look forward to sharing our progress
through materials choices, innovation and Jan Bebbington as its new Director. We also
with you.
partnerships. Canterbury recently released celebrated a decade of funding disadvantaged
the most sustainable British & Irish Lions young entrepreneurs through The Prince’s Stephen Rubin
journey ever, made from 100% recycled Trust and five years of offering the Pentland Chairman
polyester. JD achieved ‘zero waste to landfill’ Churchill Scholarship in collaboration with
status for its UK distribution centre, and University College London (UCL).
continues to re-use, repurpose and recycle
We continue to support the UN Sustainable
across all of its operations, from sourcing
Development Goals (SDGs) which
through to packaging.
address the global social, economic and
The Rubin Foundation Charitable Trust environmental challenges we face. 2020
continues to support charities focused on marked the fifth year of the UN Sustainable
4
Who we are
5
About Pentland Group
We are a privately-owned family
How we work SeaVees, KangaROOS, Mitre and
business that owns and invests Red or Dead. It is the UK licensee
in companies to create value for Our businesses are changing for Kickers and has a joint
stakeholders. rapidly, but our people and venture partnership for Lacoste
our values remain at the heart footwear. It also manages the
We take a long-term view on
of what we do. We have three Fitco business.
developing and positioning
business divisions: Pentland
our brands, we are passionate
Brands, Pentland Retail and JD Sports
about our people and committed
to being good corporate citizens.
Pentland Investments.
Fashion plc
Pentland Group employs over Pentland Brands Pentland Group holds a 51.89%
50,000 people worldwide. share in JD, the UK’s leading
Our Pentland Brands division
retailer of branded sportswear,
is the name behind some of the
fashion and outdoor clothing
world’s best sports, outdoor
and equipment. JD is listed on
and lifestyle brands. It owns
the London Stock Exchange and
Speedo, Berghaus, Canterbury
is managed as an independent
of New Zealand, ellesse, Endura,
operation by the JD Board
of Directors.
6
About Pentland Group
Pentland revenue of over £500 million
and in which Pentland Group
Investments owns a majority share; Pentland
Through our Pentland Brands Limited and JD Sports
Investments division, Fashion plc.
we are a shareholder For more information,
in companies such as visit our website.
Tracksmith, Ugly Drinks
and Vanarama.
Included in this Corporate
Responsibility review are
businesses with an annual
7
Our approach
We believe in doing the right increase their impact where we
thing, not the easy thing – can. Our Standards set out
as individuals and as an clear expectations of our people
organisation. That means doing and partners, whether they are
business ethically, supporting distributors, licensees, suppliers
our people, minimising our or affiliates that we work with.
impact on the environment and
We partner with NGOs,
partnering with others to drive
academics and others in our
our sustainability agenda.
industry to create change for
All Group companies, in the better and give back to our
which we hold 50% or more communities.
equity, are required to comply
with our policies and we use
our influence to help others
8
UN Global Compact
We are a signatory of the UN Global
Compact and fully support its ten
principles on human rights, labour,
environment and anti-corruption.
This report details the contribution
our business divisions have made to
each of the ten principles in 2020.
We remain committed to supporting
the UN Sustainable Development
Goals, which address the global
challenges we face. We have selected
the eight goals where we believe we
can make the biggest difference.
9
World Economic Forum
(WEF) Stakeholder
Capitalism Metrics
This report is aligned with the
WEF-recommended approach to
sustainability reporting created by
the International Business Council
(IBC). It evaluates progress around
metrics organised under four pillars:
Principles of governance, People,
Planet and Prosperity.
Metric SDG Location
in our
report
Principles of 8, 10, 13 21, 40
governance
People 3, 5, 8, 10 24, 42
Planet 9, 12, 13 32, 51
Prosperity 9, 10 16, 17
102020: a year in review
112020: a year in review
2020 saw progress across our business
divisions in areas including sustainability,
social impact and supply chain
transparency. Here are some highlights.
122020: a year in review
Pentland Brands campaign and Berghaus • Brands across the portfolio
expanded its diverse roster are increasing their uses of
• Pentland Brands celebrated of ambassadors. sustainable materials. Speedo
Global Inclusion Week developed its PowerFlex
• During the global pandemic,
2020 by renewing its collective eco range, which uses fibres
the brands also put their
commitment to stay relevant made from ocean waste such
principles into action - from
to diverse consumers across as fishing nets. Canterbury
helping consumers stay active
the globe. As an employer, unveiled the latest British &
at home to offering discounted
it is taking steps to support Irish Lions shirt to be worn
products for key workers.
gender and racial equality by for the 2021 tour, which is
increasing representation at • Endura planted its first one made from 100% recycled
all levels of its business. million trees since launching its polyester and the most
‘1 Million Trees’ campaign at the sustainable in the Lions’
• Its brands continued to
beginning of 2020. Pentland history.
champion diversity and
Brands has committed to its
inclusion through their
brands planting a further
campaigns, products and
5 million trees in 2021.
innovations. Speedo unveiled
its ‘Made for Everyone’
13JD Sports Fashion plc
• JD achieved a ‘Leadership’ largest cotton sustainability
grade of A- within the CDP programme in the world. In
‘Climate Change’ assessment, 2020, JD produced 22% of its
which looks at how companies cotton (or 3.7 million garments)
are working to reduce through the BCI programme.
greenhouse gas emissions
• JD has been approved to take
and combat climate change.
on over 1,200 colleagues as
JD out-performed its sector
part of the UK government’s
benchmark score by three
Kickstart scheme. Available
grades.
to people on Universal Credit
• During the last quarter of 2020, between the ages of 16 and 24,
JD became members of The the Kickstart scheme enables
Better Cotton Initiative (BCI). the most vulnerable individuals
The BCI is a global, not-for- to enter the world of work to
profit organisation and the gather vital skills and training.
14COVID-19
During the ongoing COVID-19 Given the improved visibility on Red Cross, China
pandemic, Pentland Group’s UK restrictions lifting, we have
Medicins Sans Frontiers
number one priority has been now stopped and have repaid all
the health and wellbeing of our Government support received Trussell Trust
employees, those working for our since the start of the crisis.
London North West
partners and within our supply
This decision was taken in the University Healthcare Trust
chain, and the communities in
context of financial resilience
which we operate, while also National Emergencies Trust
within Pentland Group and the
keeping our business running for
greater confidence we now have Pentland Brands and JD have
our partners and consumers.
as our businesses emerge from taken a number of actions during
With the closure of retail, gyms the crisis. the crisis to protect their people,
and pools significantly impacting communities and those working
During the pandemic, we also
revenue over the past 12 months, within their supply chains.
donated to support the work of
we were grateful to access More information can be found
some incredible organisations
Government support so we in the Pentland Brands Positive
that were funding critical medical
could protect as many UK jobs Business report and the
care, protecting vulnerable
as possible across the Pentland JD annual report.
people and providing essentials.
Group owned businesses.
15Partners and memberships
The Pentland Centre In 2020, sustainability expert
Professor Jan Bebbington was
for Sustainability appointed to the role of Pentland
in Business Centre Director. Jan has dedicated
her academic career to focusing on
Pentland Group continues to support how organisations can contribute to
the Pentland Centre for Sustainability sustainable development through
in Business at Lancaster University, accounting and reporting activities.
which it founded in 2015. The Centre
carries out research to find practical
solutions to social and environmental
challenges.
16Partners and memberships
University College In Kind Direct The Prince’s Trust
London (UCL) During 2020, In Kind Direct supported Pentland Group supports The Prince’s
over 3,200 UK charities, ensuring over Trust Enterprise Programme, which
Pentland Group offers an annual
200,000 people each week had access to provides young entrepreneurs with
scholarship for a graduate from the
life’s essential products. Where we are the learning, mentoring and funding
Southern Hemisphere at University
unable to transform our brand products opportunities to start their own
College London. The Pentland Churchill
into something new, we donate them to In businesses.
Scholarship offers the opportunity to
Kind Direct, which distributes them to UK More information on the charities,
study at UCL’s Department of Political
charities that need them. academic institutions and organisations
Science and New York University Wagner
to become an Executive Master of Public that Pentland Group supports can be
Administration. The purpose of the found on its website.
scholarship is for delegates to continue to
live in their country of origin and work to
improve conditions for local communities.
In 2020/2021 the scholarship was awarded
to both Alphious Cole of Sierra Leone and
Mathabo Mosia of South Africa.
17Pentland Brands Limited
18Positive 1. Building brands with
purpose
business Our brands lead the way
in making a difference,
helping us maximise our
positive impact.
Pentland Brands strives to
make all its decisions in line 2. Owning our footprint
with its business principle ‘in
good conscience’. In 2020, it We make a positive
accelerated its strategy to be impact on the world
a positive business, targeting around us, minimising
its actions across three distinct our environmental impact
pillars. and supporting the
communities in which
More information on the
we operate.
Pentland Brands Positive
Business strategy can be found
in the Pentland Brands Positive 3. Promoting circularity
Business report. and collaboration
We strive to embed
circular processes and
collaborate to create
positive change.
19Governance
Pentland Brands’ governing
purpose is ‘building brands for
the world to love, generation after
generation’. It behaves in a way
that upholds its principles as it
believes that this is instrumental
to its long-term success.
20Governance Positive business governance structure
As a business, Pentland Brands
CEO & Executive team
has dedicated teams, leaders In Good Conscience
and committees to help put its forum, led by Supply
principles into practice. Chain President
Supply Chain President
All committees are overseen
by the Pentland Brands
Executive team. Positive Business Director
Representatives from CR,
Legal, Sourcing & Supply
Chain
Corporate responsibility team
Brands Supply chain Charity partners
Information on key business decisions and any resulting stakeholder engagement
at Pentland Brands during 2020 can be found in its Section 172 statement.
21Ethical behaviour Ethical trade governance structure
Pentland Brands has a robust Every 2 weeks Every 4-6 weeks Every quarter
governance process for issues
relating to supply chain, human Supply Chain
In Good Conscience Forum Risk Committee
Executive meeting
rights and ethical behaviour. Its
team of experts work together to
evaluate risks and opportunities Supply Chain President* Supply Chain President* Chief Operating Officer*
and make coherent, data-driven
decisions.
Supply Chain
Good governance for ethical Supply Chain Exec plus
Operations Director Representatives from
issues is also promoted through representatives from
all functions including
CR, Legal, Sourcing
compulsory all-employee training supply chain
Logistics Director and Supply Chain
programmes and regular social
audits. More information can be
found in the Pentland Brands
Positive Business report. Positive Business Director
CEO and Executive team*
Executive team member
22People
Pentland Brands’ global
teams are united by mutual
respect, a desire to develop
the business and a focus on
inclusion.
23Diversity and
inclusion
Pentland Brands is working
Focus areas: Pentland Brands recognises that diversity and
to level the playing field, by inclusion is a broad topic, encompassing a range
building diversity and inclusion Positive: D&I is powered of important issues. Its aim is to improve the
into everything it does - from by people and brands representation of women and people from ethnic
recruitment processes to brand minority groups in Director level roles, which it
Inclusive: everyone feels
campaigns. plans to do through a combination of continued
a true sense of belonging
succession planning, talent pipeline development
Diversity and Diverse: striving for better and external recruitment.
inclusion representation across the
More information can be found in the latest
business to reflect diverse
framework consumers.
Pentland Brands Gender Pay Gap report.
Purpose: to build a business
where everyone is welcomed, Target representation
supported and encouraged to – Directors
grow and contribute.
Women Ethnic minority groups
Current 34% 10%
By end 43% 15%
of 2022
24Health and
wellbeing
Pentland Brands has a number
of tools to help its people be at
their best. It offers all employees
unlimited access to online
programmes such as Unmind
to support mental wellbeing.
It also offers confidential 24/7
access to counsellors and
information specialists in the
areas of emotional, health,
management, legal, debt, elder
and younger care and financial.
25Learning and
development
As well as working across Pentland Brands provides
different brands and projects, development resources around
Pentland Brands offers topics including peer to peer
employees a range of learning mentoring, videos and useful
and development opportunities, guides to aid self-directed
on-the-job experiences and learning. In 2020, it launched
support to help its people make a new unlimited LinkedIn
a positive contribution to Learning offering, designed
the business. to help its people develop
their skills autonomously and
in a way that works for them.
26Modern slavery
Modern slavery is unacceptable.
Key sourcing facts
Pentland Brands strives to build
a fair, ethical and transparent • 164 tier one suppliers
supply chain and has policies, manufacturing in 19 regions
risk assessments and committees
• 31 tier two nominated fabric
that help put this into practice.
suppliers manufacturing in
Pentland Brands has committed 7 regions
to work hard to protect rights
• 103 audits in 2020
and improve working conditions
for everyone in its supply chain. More information about the
Pentland Brands supply chain
model can be viewed here. Its
tier 1 and tier 2 supplier lists
are also available on its website.
More information about the
actions Pentland Brands is taking
to address the complex issue of
modern slavery is available in its
latest Modern Slavery report.
27Charity
Pentland Brands channels
Headline numbers
its charity support through
global charity partnerships, 1% of net profit after tax donated
brand community initiatives to charitable causes
and employee volunteering
31 loans given to support small
programmes.
business owners in emerging
Goals markets, creating 24 new jobs
6,500 brand products donated to
• Inspiring young people
charity
to be more active
£11,000+ donated to local
• Empowering disadvantaged
communities through its
communities
employee Charity Network
• Reducing our environmental
impact
28Partners SportInspired Panathlon The British Council Tackling childhood obesity in Providing sporting opportunities for over Supporting economic empowerment disadvantaged communities 17,500 young people with disabilities every through educational opportunities. through fun and inclusive sports year. programmes for schools.
Partners
United Purpose Lendwithcare Saturday Club Trust
Striving to end poverty and inequality Helping entrepreneurs in emerging Giving young people in the UK a chance
across the globe. markets to establish or expand their to attend a masterclass across a variety of
businesses through a series of small loans. topics and discover a subject they love.
More information on Pentland Brands’
charity partnerships can be found in its
Positive Business report.
30Planet
Pentland Brands is taking
steps to ensure it creates a
positive impact on the planet.
Its target is to reduce its
carbon emissions by 25% by
2025, as part of its long-term
ambition to become carbon
neutral.
31Planet
UK operations Greenhouse The closure of UK offices in 2020 due
to COVID-19 restrictions, meant that CO2
Pentland Brands is working gas emissions emissions from electricity and gas were
to minimise its footprint across significantly reduced compared to 2019.
The gross greenhouse gas
its operations. All its UK offices
Greenhouse gas
(GHG) emissions for Pentland
use 100% renewable energy.
Brands, reportable under SECR
Other energy saving initiatives legislation during the period 1st emissions
across its locations include: January 2020 to 31st December
Emissions Source 2020 % Share
2020, are 2,994 tonnes of carbon
• LED lighting at various (tCO2e)
dioxide equivalent (tCO2e).
UK locations The reporting methodology Fuel Combustion: 1,575 52.6%
• Solar panels at its has changed since 2019, due to Natural Gas
Nottingham office changes in legislation and an
Fuel Combustion: 124 4.2%
increase in scope to include the
• Electric vehicle charging points Transport
Endura operations. Year-on-year
at its London, Nottingham and comparisons will be presented Consumed Electricity 1,294 43.2%
Sunderland offices in the next annual Corporate
Total Emissions 2,994 100.0%
Responsibility review.
(tCO2e)Supply chain
Pentland Brands is working to materials such as polyester emit Average carbon reduction
reduce the environmental impact 21% more CO2 by material (CO2e)
of its operations, which it measures than recycled polyester, with
Polyester vs recycled
using the Higg Index as part of its nylon also releasing 45% more
polyester – 21%
membership of the Sustainable CO2 than its recycled
Apparel Coalition (SAC). alternative. Polyamide (nylon)
vs recycled polyamide – 45%
Sustainable As a result, brands across
the portfolio are increasing Conventional cotton
materials the recycled content in their vs organic cotton – 10%
products. This includes Speedo’s
In 2020, Pentland Brands reviewed Average water reduction
PowerFlex eco range and
the water and carbon footprint by material (m3)
Canterbury’s latest British &
of a selection of its materials
Irish Lions jersey, which is made Polyester
using the Higg Index. The review
from 100% recycled polyester. vs recycled polyester – 25%
analysed where the business can
Pentland Brands intends to
reduce its CO2 emissions and Polyamide (nylon)
expand this study year-on-
water consumption. The results vs recycled polyamide – -12%
year so it can continue to make
demonstrated that common
informed decisions about its Conventional cotton
fabric usage. vs organic cotton – 87%
33Production
Pentland Brands prioritises working
MADEKIND™
with materials suppliers which have
accreditations in sustainability, for the planet
chemicals management and MADEKIND™ was created for
manufacturing. Berghaus to demonstrate the
sustainability credentials of its
Preferred supplier products. To be MADEKIND™,
accredidations*
a product has to fit one of
a number of sustainability criteria,
including containing more than
Fabrics Trims Footwear*
50% recycled or bio-based content,
bluesign® 63% 14% N/A more than 90% bluesign® approved
fabric or being made with certified
sustainable down or cotton.
oekotex® 82% 93% N/A
standard 100 Between Autumn Winter 20 and
Autumn Winter 21, Berghaus
Leather N/A N/A 100%
increased the number of
Working
MADEKIND™ products in its
Group range by 34%.
one or more 92% 97% 100%
of the above
*all brands excluding Endura and Speedo North America 34Nature and
biodiversity
Pentland Brands is taking steps which thrive in most conditions In 2019, Product Development
support the conservation and and protect biodiversity. Local teams at Pentland Brands
protection of ecosystems in line people are hired to support switched all plastic shipping
with its ambition to create the reforestation activities and bags used across the brands’
a positive footprint. benefit from the increased soil ecommerce websites to FSC
fertility for crops. certified packaging made from
Brands planting 80% post-consumer waste. This
5 million trees Reducing single- change reduced the amount
Endura accelerated its
use plastic of plastic shipped in 2020 by
27 tonnes, or nearly one
sustainability ambitions by Pentland Brands avoids million plastic bottles.
planting 1 million trees in using single-use plastic where
2020 and Pentland Brands possible, due to its negative
has committed to its brands impact on oceans and marine
planting a further 5 million life. It is working to reduce
trees in 2021. The brands the prevalence of single-use
will work with Eden plastics in our packaging and
Reforestation Projects across our brand products.
to plant mangrove trees,
35Reducing
single-use plastic
Kickers takes Among other initiatives, Kickers
has also swapped all polyester
plastic out of mesh linings to recycled PET.
the playground Kickers won ‘Best Sustainable
Kickers has removed all Initiative of the Year’ at the
unnecessary packaging from Drapers Footwear Awards 2020
its products such as shoe sticks, for re-engineering its existing
card dividers and excess tissue styles to be more environmentally
paper. In 2020, the brand saved friendly.
approximately 340,000 shoe
sticks, which would measure a
distance of 34km end-to-end.
36Reducing
single-use plastic
Speedo targets 93% of Speedo’s 2020 watershorts
are made from recycled fabrics and
sustainable the remaining 7% are produced from
swimming
a fabric that uses an environmentally
friendly method of dyeing that results
in less water, energy and chemicals.
When it comes to recycling, even
a small change can make a big Speedo also increased the recycled
difference. Speedo’s PowerFlex eco PET content in a selection of goggle
range uses ECONYL® and REPET cases from 50% to 70%, which will
yarn, which is made from ocean reduce our virgin plastic usage by
waste, including fishing nets. All 23.2 tons per year.
the packaging, including swing tags,
By 2024, Speedo’s ambition is
strings, kimbles and bags, are fully
that 100% of its swimwear and
recyclable and made from recycled
packaging will be produced with
materials.
more sustainable materials.
Speedo has reduced the size of
For more information on how
swing tags and swapped the material
Pentland Brands is building
to 40% recycled content. This small
sustainable products, view its
change will save 3,792 tonnes of
latest Positive Business report.
virgin fibre – which equals 64,461
trees in one year.
37JD Sports Fashion plc
38JD Sports Fashion plc
Governance JD’s ESG Committee has shared
its 2020 achievements and 2021
Prior to JD’s entry into the FTSE objectives with its leading
100, the Board began a formal brands, outlining its progress
Environmental Social Governance and encouraging its suppliers
(ESG) engagement process, to increase the disclosure of
leading to a step-change in its information relating to their
commitment to provide greater own environmental progress.
transparency and performance
data.
As part of its FTSE 100 entry,
JD founded its ESG committee
to determine ESG-related strategy,
corporate risk assessment and
monitoring of ESG performance
across JD’s fascias and territories.
39JD Sports Fashion plc
Ethical sourcing provides assurance that its private label
products are manufactured within safe
Approximately 90% of the products sold and fair conditions. The Ethical Code of
by JD are sourced from its international Practice applies to everything the business
brand partners, with the remaining 10% does and forms part of the contract for
derived from the Group’s own sourcing JD’s partners. It states that the people
of goods. JD introduced its Ethical Code working for its suppliers are to be treated
of Practice in 2019, encompassing with respect, and their health and safety
its policies into a concise document and basic human rights must be protected
for its manufacturing suppliers and and promoted. The JD Code of Conduct
brands. It has made further updates and is included in this document which follows
improvements in 2020/21 to ensure that the International Labour Organisation
its policies reflect the latest best practice (ILO) minimum standards.
on human rights, worker welfare,
To find out more about JD’s Ethical Code
and health and safety issues.
of Practice, visit its corporate website
JD’s Ethical Code of Practice establishes at https://www.jdplc.com/code-of-
the procedure for protecting workers and practice.
40People Inclusivity
The talented individuals working JD is absolutely committed to topics such as equality, diversity,
at JD are integral to its continued promoting policies which ensure biases and cultural intelligence.
success. JD strives to attract, retain that colleagues and customers Alongside the introduction of
and develop the very best talent at are treated equally regardless of Diversity & Inclusion forums, it
all levels of its organisation. ethnicity, social origin, gender, remains committed to engage,
sexual orientation, disability or age. learn and promote dialogue around
JD aims to create a workplace in
potentially sensitive subjects in
which everyone is safe; supported Following the tragic death of
order to improve understanding and
and respected; treated fairly and taken George Floyd in the United States,
awareness throughout the business.
care of, listened to, and motivated JD worked with its teams around
to achieve their full potential. It is the world and with both the JD In addition, a series of videos
committed to achieving excellence Foundation and the Finish Line have been created, highlighting
in the areas of health and safety and Youth Foundation to ensure that it individual experiences of diversity
the protection of its colleagues in plays an integral part in addressing and inclusivity. These have been
their working environment. all forms of discrimination in distributed via JD’s people platform,
society. JD4U, to emphasise the importance
JD’s goal is to provide opportunities,
of the campaign to all colleagues
support and guidance to its colleagues JD has launched an Inclusivity
and drive engagement at all levels.
all over the world, whilst promoting Campaign which will support
The videos have generated over
inclusivity, social mobility and mutual its promise to educate and train
40,000 views by employees.
respect. its people, with a focus on key
41People
Gender Analysis Male Female Total % Male % Female
Plc Board 5 2 7 71% 29%
The breakdown of the Plc Board and
the JD Group as a whole by gender Senior 409 150 559 73% 27%
as at the end of the financial period Managers
ended 30 January 2021 is as follows:
Other 30,003 30,484 60,487 50% 50%
employees
42People
Digital learning during Apprenticeships department focused on four key areas:
Leadership, Brands, Operations and
COVID-19 Over the last few years, JD has worked Technology.
alongside internal and external
JD’s online e-learning platform played The JD Learning and Development team
stakeholders to promote apprenticeships
a crucial part in the accelerated adoption is experienced in delivering training
as a development opportunity across the
of digital learning. An example of this solutions to support a broad range of
organisation.
was the rollout of the COVID-19 module initiatives. Their greatest achievement in
to 39,554 colleagues across the UK & To date, 45 apprentices have completed 2020 was the number of virtual sessions
Europe; achieving a company record for their apprenticeships successfully and delivered as a result of restrictions
the highest number of participants to 66 are currently studying programmes due to COVID-19. The team conducted
a single course. The module ensured a such as Management, HR, Data Analytics, 364 virtual courses, attended by 1,202
consistent message was communicated Retail, Accountancy, Digital Marketing, delegates across the business (including
across the business, enhancing awareness Software Development, Quantity 216 courses internationally, reaching
and helping to keep both colleagues and Surveying and many more. 894 attendees). 94% of attendees agreed
customers safe. that virtual courses allowed for effective
Globally, JD employees have access to
Learning & learning and the quality of training
almost 800 courses, tailored to support their Development was maintained.
specific job role, with 8.4 million hours of
In 2020, JD’s Learning and Development
learning completed throughout 2020.
43People
Kickstart Scheme
JD recognises that young people are the
future. In 2020 the business was approved
to take on over 1,200 colleagues as part of
the UK government’s Kickstart scheme.
Available to people on Universal Credit
between the ages of 16 and 24, the
Kickstart scheme enables the most
vulnerable individuals to enter the world
of work to gather vital skills and training
(from both JD and the Prince’s Trust).
JD’s Kickstart selection process will have
a particular focus on attracting individuals
from disadvantaged backgrounds, who
may otherwise have been displaced further
from the employment market due
to COVID-19.
44People
Supply Chain
JD continues to map its supply
chain across tiers 1-4, which
requires ongoing engagement
with its partners.
• 1st Tier = CMT Site (Factory
• 2nd Tier = Mill
• 3rd Tier = Dye House
• 4th Tier = Print House
Summary of partners
in 2019 - 2020
• 176 Agents in 2020 V 243 Agents in 2019
• 496 factories in 2020 V 355 factories in 2019
• 21 Sourcing Countries 2020 V 25
Sourcing Countries in 2019
Further data on auditing and sourcing data can be viewed in the JD annual report. 45People
Modern Slavery agencies and businesses to report
concerns and get help and advice.
Modern Slavery is a constantly The UNSEEN Modern Slavery
changing, multi-faceted topic that Helpline is included in JD’s latest
can impact any sector or community. Ethical Code of Practice.
Accordingly, it is important to
During 2020, international travel
understand new trends emerging
restrictions meant that overseas
from those involved in labour
auditing was not permitted, either
exploitation and modern slavery.
by JD or external third parties.
JD has partnered with UNSEEN JD has mitigated this risk by
UK to support its UK Modern continuing to work with its suppliers
Slavery Helpline and Resource on factory standards, including
Centre. This vital resource provides rectification of non-compliance
24/7 access and assistance for issues via remote management.
victims, the public, statutory
46Ethical trade governance structure
No of Employees: 108 Key People:
No of Employees: 111
Training: Head of Sourcing
Training: Key People: 3
• Modern Slavery QA & Ethics
• Modern Slavery HR Manager
• Spot the signs Head of HR Operations
• Spot the signs Supply Chain Manager
• Mental Health Snr Group
• Mental Health Site Security Manager
• First Aid Security Manager
• First Aid
• GDPR Distribution Logistics
Welfare Strategic Critical
Welfare
Champion Response Response
Champions
Sponsor Team Team
ROLE
Key management ROLE
ROLE
ROLE stakeholders to ensure the To alert Directors of
To provide support to
To provide first line documented escalation the wider business and
Welfare Champions and
support to collegues process is followed in to notify / liaise with
provide first line advice
consultation with the authorities as appropriate
critical response team
47JD Foundation
The JD Foundation is a registered community-based initiatives in
charity, founded by the JD Group addition to nationwide charities
in October 2015. Its mission is to tackling mental health, youth
support charities working with homelessness and unemployment.
disadvantaged young people in The Foundation also supports
the UK. charities which provide help to
families dealing with undiagnosed
The Foundation supported 18
heart conditions, terminal illness
charities in 2020 with a focus on
and bereavement.
mental health and homelessness.
In early 2020, JD agreed a new
£3.1 million charity partnership with City
Hearts, who support victims of
donated since 2015 modern slavery to thrive in their
communities. The Foundation also
Chosen charities
supports the Bright Futures
Employment programme.
for 2020
The Foundation’s chosen charity
partners support a number of
48Employee choice
partnership
In September 2020 the Foundation
announced a new two-year Employee
Choice Partnership with Blueprint
for All (formerly Stephen Lawrence
Charitable Trust). In support of
the #BlackLivesMatter movement,
£62,500 was pledged towards the
eradication of racism. A number of
charities aligned with this mission
were shortlisted with colleagues
voting for their preferred partnership.
Three other charities were awarded
grants in this process - Show Racism
the Red Card, BLAM UK CIC and
the Anthony Walker Foundation.
More information on JD’s charity
partnerships can be found in its
annual report.
49Planet
JD recognises its responsibility
to contribute towards reducing
the impact of climate change and
remains fully supportive of the
United Nations ‘Paris Agreement’
adopted in 2016.
Over the past two years JD has
re-purposed and relaunched its
corporate website, providing
detailed explanations and
case studies highlighting its
environmental progress.
50Climate change Carbon emissions
JD remains committed to presenting data reflecting
energy usage and carbon footprint.
2021 (UK 2021
& ROI) 2021 (Int) (Total)
Responsible energy procurement (including manufacture of products),
Energy Usage 71,254,598 88,928,909 160,183,507
and usage remains integral to JD’s and non-merchandise suppliers,
– Electricity
efforts to help limit global warming. including but not limited to product
(kWh)
JD requires all of its subsidiaries transport and delivery.
and suppliers (regardless of Energy Usage 14,184,165 12,810,388 26,994,553
Scope One and Two emissions
territory) to mirror its commitment – Natural Gas
reduction targets: By 2035, JD will
towards minimising the impact (kWh)
achieve an absolute reduction of
of climate change. Total Energy 85,438,763 101,739,297 187,178,060
67.2%* vs our 2019/20 base year.
JD’s management of carbon Use (kWh)
Scope Three emission reduction
emissions is delineated into two Carbon 20,152 30,757 50,909
target: By 2035, JD will achieve an
categories: Emissions
absolute reduction of 67.2%* vs its
1) Scope One and Scope Two - 2019/20 base year. (Tonnes
‘directly controlled’ operations CO2e)
* subject to final data validation
within Group-owned infrastructure Intensity 32.7 57.4 44.2
checks and external specialist
(e.g. JD’s warehouse and in-store metric:
review.
energy usage) Location
based
2) Scope Three - the operations and
emissions
activities of merchandise suppliers
(kgCO2e/m2)
51Water consumption
and biodiversity
JD recognises that its largest • Continuing its ‘Sustainability
water footprint is via its supply flag’ assessment process for
chain and its own operational use. its own-brand manufactured
garments. This ensures that
Recently, JD has progressed by:
JD’s private label products and
• Submitting its first ever suppliers have been subject to
response to the CDP ‘Water reviews and compliance criteria
Security’ survey, achieving designed to reduce its impact
a ‘B’ grade score. on the environment.
• Reducing its use of virgin
polyester and increasing its
use of Responsibly Sourced
Cotton (‘sustainable cotton’).
Sustainable cotton ensures;
i) that farmers are trained on
methods of water reduction
ii) that farms are economically
irrigated and iii) the receipt
and payment of fair wages to
workers.
52Sustainable
sourcing
JD began the journey to integrate
Joining the Better 22% of its cotton through the BCI
sustainability into its private label programme. This equates to 3.7
business in 2019 - from conception Cotton Initiative million garments, representing 492
to end product and beyond. (BCI) metric tonnes of ‘Better Cotton’,
which is grown via methods
For its footwear and accessories During the last quarter of 2020, that protect and restore the
brands, JD provides a ‘supplier JD became members of the Better environment, whilst improving
manual’ including policies on Cotton Initiative (BCI). The BCI is farmers’ livelihoods. JD’s sourcing
modern slavery, procurement and a global, not-for-profit organisation of Better Cotton in 2020 saved an
environmental footprint reduction. and the largest cotton sustainability estimated 279 million litres of water
This also includes standards to be programme in the world. BCI exists whilst generating over €80,000 of
met with regards to chemical usage. to make global cotton production additional profit for BCI-licensed
For leather manufactured goods, the better for the people that produce it, farmers.
Group requires suppliers to be signed the environment in which it grows,
up to the Leather Working Group and to invest within the future of the JD has committed to sourcing
(LWG) standards. cotton industry. 80% of its cotton through the BCI
by 2022, by converting 13 million
During the first period of JD’s BCI garments to sustainable cotton.
membership (2020), JD produced
53Circular economies
JD is committed to an internal The JD Development team analyses align to its waste-elimination
circular economy model to minimise the feedback associated with principles within their own
landfill waste across its business. products returned by its customers businesses. These partners
So far, it has achieved ‘zero waste to identify any common issues include Africa Shoes, which
to landfill’ certification for its UK which can be corrected for future exports branded second-hand
distribution centre, and continues to production cycles. These design products to local vendors in
re-use, repurpose and recycle across changes and corrections help Africa, Sole Responsibility,
all of its operations – from sourcing to limit the volume of customer which resells clothing and
through to packaging. returns, which reduces carbon footwear diverted from landfill,
emissions. and Carbon Resources, which
Designing out specialises in the refurbishment
waste Keeping materials and repair of tents and
JD’s products are designed with
in use equipment to extend the
lives of these products.
sustainability in mind from the JD has developed a supply chain
outset, using high quality material to support the environment by
and dyes, laser-cutting and brushing keeping products and materials
of the fabric during manufacture. in use for as long as possible.
These best practice measures extend To enable this, JD has identified
the life of its products. supply chain partners able to
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