Sainsbury's Sustainability Update 2019/20
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1 J Sainsbury plc Values update 2019/20 Sainsbury’s Sustainability Update 2019/20
2 Welcome J Sainsbury plc Sustainability Update 2019/20
Welcome
Helping customers live well for less has been
at the heart of what we do for 150 years, since
John James and Mary Ann Sainsbury opened
Contents
the doors of our first shop in Drury Lane in
1869. Welcome. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
We employ 172,000 colleagues who work hard A message from our Chief Executive Officer. . . . . . . . . . . . . . 3
every day to make our customers’ lives easier Our 2020 Sustainability Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
and provide them with great products, quality
and service. Our priorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Our customers care about wide-ranging, Our values make us different. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
complex issues that impact them and our A message from our Director of Sainsbury’s Brand . . . . . . 19
wider world. They trust us to be a responsible
business, whether that’s by supporting the Sustainable Development Goals. . . . . . . . . . . . . . . . . . . . . . . . 20
communities we serve and source from, Governance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
managing our environmental impacts or
contributing to a healthier, more inclusive Performance scorecard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
society.
Our values underpin everything we do as a
business and help us strengthen relationships
with all our stakeholders. They enable us to
build trust, reduce operating costs, mitigate
risks and attract and retain talent.
This is an update on progress against our
Sustainability Plan, which is structured around
our values.
Find out more at
www.about.sainsburys.co.uk/
making-a-difference
3 A message from our Chief Executive Officer J Sainsbury plc Sustainability Update 2019/20
Driving lasting,
positive change
On conclusion of our 2020 I’m proud to say that our focus on giving per cent against our 2005 baseline, having
Sustainability Plan and customers high quality food at good value achieved our 2020 reduction target a year
remains as true today as it was over 150 ahead of schedule and announced an
announcement of our bold new years ago when we opened our doors on industry-leading target to halve our use of
Net Zero by 2040 ambition, Drury Lane. In that time, we’ve remained plastic packaging by 2025.
Chief Executive Officer Mike true to our values, allowing us to drive
We continue to make progress on our
Coupe reflects on our values, lasting, positive change in the communities
ambition to be the most inclusive retailer
which have been our guiding we serve and source from. The scale of our
business means we can make an important where people love to work and shop. From
framework for sustainability contribution to sustainable development in setting corporate objectives to increase
over the past decade. the UK and internationally. female and Black, Asian and Minority Ethnic
colleagues in senior roles, to becoming
172,000
This year we announced our bold new signatories of the Social Mobility and Time
sustainability plan - to become Net Zero to Change pledges, we continue to strive
colleagues across our own operations by 2040 and we to be a great place to work. This year we
have committed to investing £1 billion over also updated our Human Rights policy,
87+
the next twenty years to achieve this. We we recognise our customers want to be
will use the £1 billion investment to support confident that we source with integrity and
countries we source our own-brand seven commitments that focus on reducing that the people in our supply chains who
products from carbon emissions, food waste, plastic make, grow or sell our products are treated
packaging, water usage and increasing fairly and their human rights respected.
28 million+
recycling, biodiversity and healthy &
sustainable diets. We will report on our This past year also saw the celebration of
progress every six months using science- our milestone 150th Birthday. We wanted
customer transactions every week to mark the anniversary by making a
based targets,working with the Carbon
Trust and the CDP. positive difference in our communities, so
we gave all our colleagues the opportunity
Our values and sustainability activities to volunteer during work time for a local
protect our brands so that customers, charity or community initiative. In total over
suppliers and stakeholders continue to 35,000 colleagues pledged to volunteer, with
trust us. As I look back at my time with over 2,400 community projects carried out,
Sainsbury’s, we have made tremendous 19 per cent of these being environmentally-
progress in sustainability and you’ll find based projects. To support our customers
many examples of our achievements to live healthier lives, we have invested over
and current activities across our five £187 million into Active Kids to date and
values, detailed in this report. Having this year ran 70 Active Kids holiday clubs
respect for our environment is one of which had 23,000 children attending during
our core values and this year we cut the summer months. Along with our long-
our absolute carbon emissions by 42 standing charity partnerships, this reflects
how we sit at the heart of our communities
and play a broader role in society overall.
As we look to the future, we know that
climate change is at the top of our
colleagues’ and our customers’ minds,
therefore it’s time to push ourselves further,
with our new commitments, so that we can
help everyone live well today and into the
future.
Mike Coupe
Chief Executive Officer
4 Our 2020 Sustainability Plan J Sainsbury plc Sustainability Update 2019/20
Our 2020
Sustainability Plan
Delivering
on our 2020 Highlights
commitments of our 2020
Our purpose is to help our customers live
well for less, now and in the future and
commitments
to help them get the most out of life, no
matter how much money or time they have.
Our customers care about wide-ranging,
complex issues that impact them and our
wider world and they expect us to be a
responsible, sustainable business, whether
that’s by supporting the communities
we serve and source from, managing our
environmental impact or contributing to a Living Making a positive
healthier and more inclusive society.
healthier lives difference to our
To this end, in January 2020 we announced
our new commitment to invest £1 billion
community
over 20 years to become Net Zero across our Offering customers nutritious and healthy Generating positive impact in the
own operations by no later than 2040. food and encouraging active lifestyles communities we serve and source from,
When we launched our 2020 Sustainability We committed that our customers could locally and globally
Plan in 2011, we set out five clear values and always choose nutritious and healthy food We committed to support our local
gave ourselves 20 deliberately stretching when they shop with us and that we would communities in relevant and impactful
commitments which gave us a clear focus to encourage kids to live a healthy, balanced ways and donate over £400 million to
formalise our activities. lifestyle. charitable causes by 2020.
Our five values were to help our customers,
colleagues and suppliers to live healthier
22%
lives; make a positive difference to our
communities; source with integrity; have
respect for our environment; and create £359 million¹
a great place to work for our colleagues. red traffic light labels on our own-brand cumulative charitable investment generated
In 2015, approaching the halfway point products (2020 target: 21 per cent) across our programmes (2020 target: £400
of our 2020 timescale and following the
million)
£187 million
launch of our 2014 business strategy, we
took the opportunity to review our 2020
Sustainability Plan.
total investment in our Active Kids scheme Through our customers and colleagues, we
As a result, we updated our commitments, (2020 target: £200 million) have generated over £359 million to make a
removing those which were no longer positive difference to the communities we
relevant and adding challenging new ones serve. In addition, we supported over 35,000
to have the most positive impact. This gave of our colleagues who pledged to work with
us a refreshed focus as we moved forward We are continuing to reduce the percentage
of red traffic labels on own-brand products charities and community groups across the
to 2020.
and reformulate to reduce salt, sugar, UK through our 150 Days of Community
Our 2020 Sustainability Plan has been our fat and saturated fat in order to help our programme to celebrate our Company’s
guide for building a sustainable future, customers eat and live well. 150th birthday.
ensuring we focused our efforts to make
the greatest difference and we are proud We are also supporting customers with
of what we have achieved over the past food allergies and intolerances by creating
decade. We have learnt a lot in the process personalised allergen profiles online via food
and taken lessons from where we have hit search platform FoodMaestro.
our targets and where we have not.
We continue to invest in our Active Kids
This helped to inform how we can make a scheme and launched summer holiday
greater impact moving forward and where clubs to offer activities to kids of all abilities
we need to collaborate with industry and during the long summer break.
partners to contribute to tackling some of
the big challenges such as climate change.
¹ Includes funds raised for good causes from corporate donations, carrier bags, colleague and customer fundraising and charity partnerships.
5 Our 2020 Sustainability Plan J Sainsbury plc Sustainability Update 2019/20
Sourcing with Respect for our Great place
integrity environment to work
Building resilient supply chains by sourcing Reducing emissions, water use and waste Being an inclusive employer where
products ethically and sustainably. across our value chain colleagues love to work
We committed to sourcing our key raw We committed to reduce our operational We committed to being an employer where
materials sustainably to an independent food waste and to work with our customers colleagues love to work and to having
standard and that our own-brand fish would to help them reduce theirs, putting both an inclusive workforce which offers good
be independently certified as sustainable. to positive use. We also said we would employment opportunities to all members
We committed to selling products that reduce our own-brand packaging and our of the community. We also committed to
are fairly traded and to invest in the operational carbon emissions. Through investing in the training and development of
sustainability of the suppliers, farmers, robust water stewardship, we committed our colleagues.
growers and workers within our supply to address and manage all areas of water
chains internationally, as well as investing vulnerability.
in the future of British farming and be the
leading retailer for British produce. We also
committed to sourcing our meat, poultry,
£9.30 per hour4
eggs and dairy products from suppliers who
adhere to independently verified animal 92%³ colleague reward (2020 target: standard
colleague reward greater than National
health and welfare outcomes. stores with Food Donation Partners for Living Wage)
surplus food (2020 target: 100 per cent)
6.7%
99.1%² 42% per cent colleague reward is greater than
absolute greenhouse gas emissions National Living Wage (2020 target: standard
palm oil used in our products is sourced
reduction (2020 target: 30 per cent) colleague reward greater than National
to an independent sustainability standard
Living Wage)
(2020 target: 100 per cent)
We continue to support the delivery of
100% Courtauld 2025/Champions 12.3 by reducing
operational food waste and are making year
We are recognised as a great place to work,
demonstrated by maintaining our Gold
farmed seafood independently certified as on year progress to increase the number accreditation from Investors in People for
sustainable (2020 target: 100 per cent) of stores with food donation partners. We the 4th year running. We have continued
are really proud of our achievements in to broaden our training and development
reducing greenhouse gas emissions and offer to our colleagues and our ‘Leading@
We are proud of our track record on water use in our operations. This year we Sainsbury’s’ development programmes
sustainably farmed fish and have made received a CDP A rating for our climate support individuals to develop the skills
significant progress to ensure we limit the change disclosure for the sixth year and leadership capability to transition to a
contribution to global deforestation from running, the only UK food retailer to achieve management role.
our own-brand products. We will continue this score for this length of time. We will
to actively collaborate with suppliers, our continue to introduce proven technologies
partners and industry experts to ensure that to achieve further reductions in these areas
we source from sustainable sources. in order to reach our goal of being Net Zero
in our own operations by 2040.
² Based on 2019 calendar year.
³ We have sent zero operational waste to landfill since 2013.
4
Per hour base rate of pay in Sainsbury’s stores. National Living Wage rate (25+) effective dates: April 2018, April 2019 and April 2020.
6 Our priorities J Sainsbury plc Sustainability Update 2019/20
Our
priorities
To deliver our purpose and engaged and we measure this twice a and we raised £29 million this year for
vision we will focus on seven year through our colleague engagement local and national causes. As part of our
survey. We retained our Gold accreditation 150th birthday, we launched 150 Days of
strategic priorities which are from Investors in People (IIP) for the fourth Community and over 35,000 colleagues
designed to ensure we continue consecutive time over 10 years, despite the pledged their time to volunteer during
to give our customers what level of change in the business. working hours for over 2,400 local
they want in a rapidly changing We have made good progress with our
community projects. For more information
retail marketplace while on how our colleagues support the
inclusivity agenda. We are a Disability communities we serve, see pages 10-11.
also delivering value for our Confident Leader for our work on disability
shareholders. and inclusivity and, looking ahead, we aim We are committed to complying with
to increase our employment of Black, Asian laws and regulations and set high ethical
and Minority Ethnic (BAME) representation standards for our colleagues and suppliers.
These priorities are: to be at senior manager level. We also aim to We expect all colleagues to abide by our
competitive on price; to increase the percentage of colleagues Ethical Conduct Policy, covering areas
offer distinctive products who agree with the statement ‘I feel I am including anti-bribery and corruption,
and categories; to provide able to be myself at work’ in our colleague conflicts of interest, suppliers, fraud and
engagement survey. whistleblowing. Training on these policies
personalised and seamless is provided to colleagues in the commercial
physical and digital divisions as part of their inductions and then
experiences; to be fast, friendly annually. This year we also updated policies
and convenient; to drive and processes for our suppliers to gain a
efficiency to reinvest; to be a better understanding of risk, and updated
our Human Rights policy which can also be
place where we all love to work found on our corporate website.
and to be Net Zero in our own
operations by 2040. Alongside our community investment,
we make positive economic contributions
through our supply chain, our market-
leading pay for colleagues and our
responsible approach to tax, contributing
£2.1 billion in taxes borne and collected this
We continue to work on our gender pay
year.
balance across the business and have
further reduced our gender pay gap by 1.6
Be a place
per cent to 10.5 per cent this year, while our
median gender pay gap remains at 3.8 per
cent. Female representation at Board level
where we all is 33 per cent and female representation at
senior levels has increased to 35 per cent
by the year end. Across the entire business,
love to work female representation is 54.6 per cent. There
are 94,992 women and 78,983 men and the
remaining colleagues did not identify as
either women or men. We are committed
Sainsbury’s is an inclusive to achieving our aspirational target of 40
employer where colleagues love per cent female representation in senior
to work and are encouraged to positions by 2021. For more information,
develop their skills and fulfil see our Gender Pay Report on our corporate
website.
their potential.
In this complex retail environment, excellent
Being a company that people love to work
leadership of our store teams is crucial.
for means being an inclusive employer
We have an award winning leadership
where colleagues are encouraged to
programme for store colleagues and
develop their skills and fulfil their potential.
managers. We are also focused on ensuring
It’s about playing an active role in our
that more junior colleagues can develop
communities and about having high ethical
their skills and progress and measure
standards that we and our suppliers adhere
the number of colleagues enrolled on
to.
an apprenticeship programme and the
It is important for the long-term success completion rate for those apprenticeships.
of the business that our colleagues remain
We play an active role in local communities
7 Our priorities J Sainsbury plc Sustainability Update 2019/20
billion litres since 2005. We have committed
to minimise the use of water in our own
operations, driving towards water neutral
by 2040. We were the first
Net Zero by retailer to achieve
zero waste to
2040 landfill and we
Living well means living plan to reduce food
sustainably and we have
committed to invest £1 billion waste by 50 per
over 20 years to become Net
Zero across all our operations by
In 2005 we were the first retailer to
introduce multiple traffic light labelling on
cent by 2030
the front of our own-brand packaging and
2040. we have reduced the number of red traffic
lights since 2015. Through reformulation, We will also increase the use of recycling in
We have seven key areas of focus and we
97 per cent of our own-brand products our own operations and make it easier for
will report progress against each of them at
meet Public Health England’s salt reduction our customers and colleagues to recycle. All
our interim results in November.
targets and we have reduced the amount our plastic hangers are made from 100 per
of sugar across soft drinks, ice cream, cent recycled materials and last year we
cereals and more by over 20 per cent since recycled 300 tonnes of them. As we move
We have committed 2015. As part of our Net Zero commitment
we will continue to develop healthy, tasty
forward we will expand recycling facilities at
our stores to help customers recycle metal
to invest £1 billion nutritious food for our customers and
expand our popular meat alternative range.
cans, glass, plastic, paper, clothing and
other materials.
over 20 years
to become Net We have
Zero across our committed to
operations by 2040 reduce our use of
We are the only UK food retailer to receive plastic packaging
an A rating in the Climate Disclosure Project
for six consecutive years. We are proud to by 50% by 2025
have achieved a 42 per cent reduction in
carbon emissions over fifteen years, despite
a 46 per cent increase in our estate. We have We have committed to reduce our use
committed to reduce carbon emissions of plastic packaging by 50 per cent by Finally, we will ensure that the impact of our
within our own operations to Net Zero 2025 and then go further. We were the operations is net positive for biodiversity. We
greenhouse gas emissions, increasing the first retailer to remove plastic bags from have planted nearly four million trees in
use of renewable energy. our produce aisles and bakery counters; partnership with the Woodland Trust since
customers now use their own bags or buy 2004 and we expect to plant more than 1.5
a reusable and recyclable bag made from million trees by 2025. 99.1 per cent of the
a recycled plastic bottle. Among a large palm oil used in our products is sustainably
number of initiatives, we removed plastic sourced as is all our farmed seafood.
bags from online deliveries and reduced the
weight of plastic used in milk and water
packaging.
We were the first retailer to
achieve zero waste to landfill
and we plan to reduce food
waste by 50 per cent by
2030. Most of our stores
redistribute good
quality food safely to
local charities and
community groups
through our food
donation partnerships.
We were also the first retailer to achieve
The Carbon Trust Water Standard in 2017
as well as this past year achieving the
Climate Disclosure Project A rating for
water disclosure. We achieved our 2020
water reduction targets early, saving one
8 Our values make us different J Sainsbury plc Sustainability Update 2019/20
We take our responsibility to help our increasing vegetables in our customers’
customers eat healthily, seriously, whatever diets and guarantees at least one of the
their budget. From making the everyday recommended five a day. In 2019, 13 new
options a healthier choice or innovating Love Your Veg products launched, including
to bring healthier products to market, butternut squash and lentil lasagne
customers can always choose nutritious which contains three of your five a day.
and healthy food when shopping with
Living us. We aim to provide customers with the
information, incentives and rewards to 43%
healthier lives encourage those healthier choices.
healthy products sold as a proportion
of total sales volume, up from 38%
Making everyday in 2018/191 (2020 target: 45 per cent)
products healthier
Related UN Sustainable Development Goals We also continue to support the Food
We have an ongoing programme of Foundation’s Peas Please Initiative, which
reformulation, reducing sugar, salt and makes a pledge for more veg. In 2019, 18.8
saturated fat from our own brand products, per cent of the total own-brand food volume
without compromising on quality or sold at Sainsbury’s was vegetables and 100
taste for our customers. We have been per cent of our promotional space had at
reducing sugar for a number of years and least one vegetable option.
We help our customers to live continue to make strong progress within
key categories outlined by Public Health
well and living well starts with England’s Childhood Obesity Plan. We have Innovating for healthier
healthy eating. achieved over 20 per cent sugar tonnage choices
reduction since 2015, as well as not having
characters on any of our children’s breakfast We continue to innovate in our product
cereals. We have also removed sugar across ranges to provide customers with new
key categories like ice creams, bakery and healthier choices. We outperform the market
biscuits. in meat alternative, plant based food ranges,
and this year we introduced Plant Pioneers
We have a long history of providing clear to our own-brand offer, providing innovative
nutritional information, and were the first and delicious options to customers following
UK supermarket to introduce the pioneering flexitarian or plant based diets. We added
multiple traffic light (MTL) system in 2005, 26 new products across the fresh, frozen
going beyond government requirements and ambient categories, this includes our
at that time, and continue to do so. Vegan Fishless Fish Fingers which contain
We ensure that our products are algae oil and provide customers who do not
consume oily fish, with a source of Omega 3.
accurately
and simply
labelled,
providing
nutritional claims
on our products to
help customers easily access
the nutrient benefits of the product,
including fibre and protein. We restrict We also have products to help customers
nutrition and health claims on any get enough of key vitamins in their diet,
own-brand product with a red MTL including our Super Mushrooms fortified
(except where naturally occurring), and with B12 and Vitamin D or our Scottish
we continue to reformulate to reduce Salmon with additional Omega-3.
the number of red traffic lights across our
ranges. This year we also extended our Little Ones
range. The first 1000 days in a child’s life
Our prepared foods range has a wide are vital to development and the products
choice of fruit and vegetable portions, available across this range have been
helping our customers increase specifically designed to ensure that children
their consumption easily and in are well equipped to grow and live healthy
different ways. Our Love Your Veg lives. All of our Little Ones savoury pouches
range emphasises the benefits of contain one of your five a day, and we also
¹ The proportion of products in our customers’ baskets that are defined as healthy, based on category specific
criteria.
9 Our values make us different J Sainsbury plc Sustainability Update 2019/20
created scratch cooking weaning recipes
which are available on our website.
FMCG companies, several local public
health organisations, as well as academia 23,076
including The University of Oxford. Number of children who took part
Through our involvement in the Livestock, in our Active Kids holiday clubs
Environment and People (LEAP) project
with The University of Oxford, we were In 2019 we ran 70 Active Kids holiday clubs
the first UK supermarket to trial selling in locations across England and Wales, with
meat-alternative products in meat aisles. attendance from over 23,000 children, and
we offered 5000 free places to families who
96% were in need. The clubs provided a healthy
lunch and snacks, and a wide range of
increase in sales of volume of low activities from fencing and circus skills to
alcohol wine (2020 target: 100 per cent) tennis and quick cricket.
Helping customers who We are committed to promoting healthier
wish to make healthier lifestyles to our customers and continue to
strive to ensure that all promotions, adverts,
choices incentives and product placements, both
in-store and online, are offered responsibly.
We understand many of our customers Whilst great progress has been made, we’re
want to make healthier choices and we aim aware there’s still much more that can be
to support customers make their healthier done and we actively participate in industry
lifestyles more achievable. working groups to drive forward the health
agenda. Through our membership with the
We have an ongoing commitment to provide
Institute of Grocery Distribution, we work
clear nutritional labelling for our customers,
with other retailers and manufacturers in
both on pack and when shopping online,
Nutrition and Healthy Sustainable
and previously launched an online tool with
Diets working groups. We continue
Food Maestro, enabling those with allergies
to be members of Drink Aware
or intolerances to identify the suitability of
and are members of the British
different products when shopping online.
Nutrition Foundation.
Inspiring kids to live
healthier lives
As part of our commitment to encourage
kids to live a healthy, balanced lifestyle,
we continue to provide our Active Kids
scheme. Active Kids was first introduced in
2005, donating equipment and experiences
We have also utilised Nectar to offer points to clubs and schools across the UK, with
to reward fruit and vegetable purchases investment reaching over £187 million this
and worked with Disney to run a campaign year.
which incentivised customers to buy
healthier products including mini fruits, by
offering additional promotional cards in
return. Sales of promotional fruits increased
£187m
by more than 250 per cent over the three Total investment in our Active Kids
week period. scheme (2020 target: £200 million)
We have also supported campaigns such as
Veg Power’s ‘Eat Them to Defeat Them’ to In 2018, the scheme was reappraised and
inspire healthier choices. Active Kids holiday clubs were introduced,
following research from the ukactive Net Zero by
2040
Research Institute revealing that there
Collaborating for our are significant reductions in children’s
customers cardiorespiratory fitness over the summer
holidays, with the decrease being more
pronounced amongst children in the most As part of our Net Zero by 2040
We collaborate with a variety of commitment, we will develop and deliver
deprived areas. This alarming statistic,
stakeholders to transform the shopping healthy and sustainable diets for all.
coupled with the guidelines announced in
experience for customers across the
the government’s Obesity Plan for Action Our priorities are designed to ensure we
UK. In 2019, we became a partner of the
which called for half an hour of a child’s continue to give our customers what
Collaboration for Healthier Lives (CHL) UK,
daily recommended activity to be delivered they want in a rapidly changing retail
an initiative with the Consumer Goods
beyond the school gates, were motivation marketplace, while also driving value for
Forum. This programme is designed to
enough to focus our attention on the our shareholders.
encourage healthier living across the two
summer months.
London boroughs taking part in the initial
trial period, Lambeth and Southwark, and
is supported by some of the UK’s largest
10 Our values make us different J Sainsbury plc Sustainability Update 2019/20
Communities we whilst our colleagues in Marske-by-the-Sea
threw a celebration for the older residents
serve of their area to help combat loneliness,
with dancers from Strictly Come Dancing
Our colleagues are key to supporting providing entertainment.
the communities we serve. Through our In Bath, one of our stores became the UK’s
Making a
fundraising and volunteering programmes, first sign language store; our colleagues
our colleagues have the opportunity to were taught basic UK sign language by a
positive
fundraise and volunteer their time to local local signing school, Oscar-winning actress
good causes. This year we ran our 150 Days Rachel Shenton, and store colleague
difference to our
of Community volunteering programme to Sam Book. The store sign was changed
celebrate our 150th birthday. to ‘Signsbury’s’ with helpful visual guides
community
placed throughout the store.
150 Days of Community
To celebrate our 150th birthday, colleagues
from across the business were given the
“
Related UN Sustainable Development Goals “The whole experience of working
opportunity to dedicate some of their work with the Sainsbury’s Bybrook team
time to volunteer in their communities. has been truly amazing, and the
Over 35,000 colleagues pledged their time benefits to our young people have
to support a local project, either individually been immense. Our partnership has
or in teams, in the 150 day span from May – done absolute wonders for raising our
October 2019. profile within the local community.
In total we had 2,456 projects approved, The support from everyone, from the
Our long-term business success which included over 1,200 Sainsbury’s stores store manager John and everyone
relies on resilient, thriving and almost 500 Argos stores committed from the staff that have helped out at
communities in the UK and to a local project. The volunteering different times, has been incredible
and on behalf of everyone at the
internationally. projects covered a wide array of areas,
Caldecott Foundation I want to say a
with 19 per cent being environmentally
Sainsbury’s is a place-based business. based projects, 14 per cent focussing on massive thanks.”
We have presence in thousands of schools and young people, and 14 per cent
communities across the country through supporting with community care projects.
our supermarkets, convenience stores, Jeremy Evans
90%
store support centres and depots, as well as Lead Teacher, The Caldecott School
sourcing from over 87 countries across the
globe. Whether it’s the communities we
stores taking part in 150 Days of
serve or the communities we source from,
we aim to have a positive impact on these Community volunteering programme Collaborating for
communities, with the help of our partners greater impact
and colleagues, in order to make a positive A few standout projects were given extra
difference. financial support in order help to create Last year, we celebrated 25 years of
a lasting impact on the community. The partnership with The Royal British Legion
Bybrook Store supported The Caldecott Poppy Appeal. During that time we have
Foundation to build a sensory
garden for children with
autism,11 Our values make us different J Sainsbury plc Sustainability Update 2019/20
raised an estimated £40 million through across 92 per cent of our Sainsbury’s and workers in developing countries to
Poppy Appeal collections in store and the stores. These partnerships include The give them a better chance of building
sales of products. Felix Project and The Trussell Trust. a sustainable future for themselves,
their families and their communities.
To commemorate our longstanding
partnership with The Royal British Legion, 92%
tea parties were held at Sainsbury’s
Chichester and Preston in-store cafes ahead stores with Food Donation
£29m
of Remembrance Sunday, bringing together Partners, up from 87 per cent in generated for charities and communities
veterans and members of the Armed Forces 2018/19 (2020 target: 100 per cent) this year, bringing the total investment to
community. £359 million1 (2020 target: £400 million)
Limited edition bouquets were developed We have proudly been working with The
and sold in-store and online, raising £44,000 Felix Project since 2016. These partners We recognise that we have a vital role to
for the Poppy Appeal. One of our oldest collect surplus food from 24 of our stores play in supporting our farmers, growers
colleagues, Des Burnand, 91, was presented and our online distribution centre, whilst and suppliers across the world, and we
with a bouquet at the Chichester tea a number of our colleagues have also aim to increase transparency between
party, dedicated to his father who served volunteered at their London facilities. We the communities we source and the
in the First World War as an infantryman. also work closely with The Trussell Trust, communities we serve.
hosting 256 permanent collection points
In 2010, we set up the APECAFEQ sun dried
£3.4m
in our stores for their network, supporting
customers to donate an average of 1.6 community coffee project in the town of
million meals a year. Quinchia in Riserlda, Colombia. The project
raised for the Royal British Legion this year aims to enhance the positive impact of our
To support our Christmas food and toy trade and better meet the needs of this
donation campaign, Help Brighten a Million farming community. We committed to
We have a long history of working with food Christmases, in addition to the ongoing pay 2 cents/lb over the Fairtrade price for
banks and community donation schemes store collection points that colleagues coffee purchased from this co-operative,
to support our local communities. We are and customers can donate at, Sainsbury’s with a total investment of $30,000 into
a founding member of FareShare which opened the first Giving Store. The pop- the community over the nine years of this
began in 1994, and continue to work with up store in London was a store with a project, supporting the community to invest
them to redistribute surplus food, indirectly difference, giving customers the opportunity in the construction of a greenhouse and
supporting 11,000 charities and community to shop for others. The store provided a drying tunnels.
projects across the UK. family-friendly ‘Dickensian’ experience,
and was stocked with priority items for To find out more about how we work with
This year we trialled a tech solution with our farmers, growers and suppliers, see our
FareShare, an app called FareShare Go, in foodbanks and charities at Christmas. All
items were donated to the North Paddington Sourcing with Integrity section.
10 stores across the country. The trial saw
a total donation of 5,463kg of surplus food, Foodbank.
the equivalent of over 13,000 meals, and we
are continuing to explore how a technical
solution to support our redistribution Communities we
programme can work on a larger scale.
source from
Through our Food Donation Programme,
we work with over 1,300 organisations As well as the communities we serve, we
which have over 2,250 partnerships aim to make a positive impact on the
communities we source from. One way we
support these communities is through our
long-standing partnership with Comic Relief.
Since 1999, we have raised over £130 million,
which goes towards supporting people both
in the UK and internationally.
Be a place
where we all
love to work
Playing an active role in our communities
is huge part of our strategic priority of
being a place we all love to work.
Our priorities are designed to ensure we
Our key activities to support fundraising continue to give our customers what
include selling red noses and merchandise, they want in a rapidly changing retail
colleague fundraising and partnerships with marketplace, while also driving value for
multiple brands. Through our partnership, our shareholders.
we also support farmers and workers in
challenged value chains through the Fair
Development Fund, set up in 2007. It has
helped us engage with growers, farmers
1
Includes funds raised for good causes from corporate donations, carrier bags, colleague and customer fundraising and charity
partnerships.12 Our values make us different J Sainsbury plc Sustainability Update 2019/20
corporate website. Responsible fishing
Prevention, identification and remediation
of modern slavery is an issue that requires We continue to lead the way in sourcing fish
collaboration across stakeholders and responsibly from both wild capture fisheries
government involvement is essential. and farms. 100 per cent of our farmed
Sainsbury’s met with newly-appointed fish sources are independently certified
Sourcing with
independent Anti-Slavery Commissioner to a recognised best aquaculture practice
Dame Sara Thornton to share our individual standard and 82.3 per cent of our wild
integrity
and collaborative work to date. caught fish and seafood are certified to the
Marine Stewardship Council (MSC) standard.
“
Where fisheries are not yet certified, we
are engaged with our suppliers in order to
achieve certification in the shortest possible
“I met with major retailers in the timescale through structured fishery
Related UN Sustainable Development Goals improvement programmes.
wake of Operation Fort, the UK’s
largest modern slavery case, to assess We continue to support Project UK, which is
how they are responding to human working towards meeting the MSC standard
rights risks in their supply chains. I for a number of species, including scallops,
was particularly encouraged by the monkfish and langoustines, to deliver a
approach of some businesses who sustainable future for these UK fisheries, as
were innovating and experimenting well as a number of international fisheries
With over 48,000 Sainsbury’s with new tools and technologies improvement projects. We also support a
and I have highlighted this as good
branded products sourced from practice. Sainsbury’s Modern Slavery
number of organisations driving responsible
practice through pre-competitive
over 87 countries, we have a Risk Assessment tool, which uses collaboration and innovation such as the
vital role to play in supporting data analytics to provide a dynamic Global Dialogue on Seafood Traceability,
our farmers, growers and assessment of multiple tiers of its Fisheries Innovation Scotland, Aquaculture
suppliers across the world. supply chains, is a good example of Stewardship Council and Global Seafood
this.” Assurances.
Our approach is to work collaboratively
to tackle climate change, reduce the Dame Sara Thornton
Independent Anti-Slavery Commissioner
environmental impact of our raw materials,
advance respect for human rights across our
Sustainable general
supply chain and improve the livelihoods of merchandise and
our farmers, growers and suppliers. Whether clothing
it’s our people, animals or the environment,
we aim to have equivalent standards As one of the largest general merchandise
wherever we source from in the world. and clothing retailers in the UK, we can
make a real difference. We have focused
on driving transparency through updating
Protecting Human our Tu website with key sustainability facts
Rights about our business and plans for the future.
Our vision is to be the most trusted retailer
where people love to work and shop, which 76%
includes treating people fairly wherever of our cotton is sourced more
they are in our business and supply sustainably through the Better
chain. This year, to build on our Cotton Initiative, up from 68% in
sustainable sourcing programme, 2018/19 (2020 target: 100 per cent)
we have supported suppliers to
gain a better understanding of
risk areas. We have embedded We are utilising more recycled
a robust labour provider materials in our ranges, with 20
certification scheme, called per cent of our women’s denim
Clearview¹, for all agencies range now using REPREVE®
providing labour into our high quality, 100 per cent
depots, and we also worked recycled polyester made from
with Stronger Together² to post-consumer plastic bottles,
provide classroom training pre-consumer industrial waste
for our property team and or a hybrid blend of both. Our
key suppliers. Sleep More Sustainable bedding
range uses REKOOP® DNA tagged
We updated our Human recycled polyester, which is produced
Rights Policy, making a public from post-consumer plastic bottles.
commitment to the United Nations
Women’s Empowerment Principles and UN
Guiding Principles on Business and Human
Rights, and revised our sustainable sourcing
policy to include the key global issue of
responsible recruitment and environmental
protection. For our Human Rights Policy and 3
The Sainsbury’s Foundation is the name Sainsbury’s
Modern Slavery Statement, please visit our gives to its not-for-profit initiatives including its
Sainsbury’s Fairly Traded programme. The Sainsbury’s
Foundation is a trading name only. All Sainsbury’s
¹ https://www.clearviewassurance.com/ Foundation funds are ring-fenced by Sainsbury’s and
² https://www.stronger2gether.org/ applied for social and/or charitable purposes.13 Our values make us different J Sainsbury plc Sustainability Update 2019/20
Trading for a fairer more of our palm oil is certified sustainable
future
each year. One of the major problems with
deforestation is where other buyers do not
Improving animal
source certified sustainable palm oil. To health and welfare
We support farmers and workers directly address this we have been working with
through our Sainsbury’s Fairly Traded other retailers on the Palm Oil Transparency We know that animal health and welfare
programmes. Sainsbury’s Fairly Traded Coalition (POTC) to engage suppliers and matters to our customers and we regularly
Programme was launched in 2017 with the traders on the issue in order to minimise review the practices of our farmers and
ambition to support the sustainability, the impact concerning deforestation suppliers. We have recently moved to
resilience and efficiency of suppliers, and land change, and promote receiving outcomes data direct from
farmers and producers within our East sustainable sourcing across the industry, suppliers across chicken, beef, lamb, pork,
African tea supply chains. We source our turkey, eggs and dairy. Utilising data
99.1%
Sainsbury’s Fairly Traded tea from producer dashboards we can gain key insights and
groups in Rwanda, Kenya and Malawi, and engage suppliers to drive improvements.
as one of the most popular beverages in
the world it provides a huge opportunity to palm oil sourced to an independent
make a real difference by working directly sustainability standard1
with our tea farmers. (2020 target: 100 per cent)
In 2019, one of our Technical Managers Through the Retailer Cocoa Collaboration,
visited Malawi to explore the projects that we have committed to support the Cocoa
have been co-funded by the Sainsbury’s & Forests Initiative (CFI) and the eight core
Fairly Traded Social Premium, which famers commitments. This year we have been
can use to invest in their businesses and progressing our CFI actions through the
communities. trader assessment process and by engaging
with our cocoa supply chain partners to
“
ensure progress is being made against
their individual CFI Action Plans. We are
We’re encouraged by the progress our
also working as part of the Consumer
farmers have made and continue to support
“I felt immensely proud of what they Goods Forum (CGF) Forest Positive Coalition
them by working with experts in animal
had achieved with the funding, and to of Action to accelerate efforts to remove
health & welfare, sharing best practice
be a part of Sainsbury’s in providing commodity-driven deforestation from our
and supporting research in this field. We’re
such a strong foundation for their supply chains.
committed to ensuring the highest possible
future. Every penny has been well standards of animal welfare, it’s what our
spent after careful consideration of customers expect from us and it’s why
what would have the greatest impact we are the UK’s biggest retailer of RSPCA
on improving lives and businesses. Assured products and of MSC certified
It was great seeing how we could seafood products.2
improve so many lives, hand-in-hand
with creating great products for our
customers. Considering that there is Working closely with
more funding on the way, I am excited
to see the next phase.” our Farmer Development
Groups
John Owles Our Agriculture team works closely with
Sainsbury’s In-Country Category Technical our Farmer Development Groups in order to
Manager build resilient and sustainable value chains.
We continue to support the protection This year we launched our Integrated
of woodland and biodiversity in the Beef Programme, with farmers from our
The Sainsbury’s Foundation Advisory UK, and since our partnership began in Dairy and Beef Development Groups. The
Board3, comprised of external experts 2004, we have raised £9.8 million for the programme will change how we source
and Sainsbury’s colleagues, oversees the Woodland Trust and planted 3.9 million our beef over the coming years, and will
activities in our Fairly Traded programme, native trees. This year to celebrate our create a more stable and financially secure
which are decided on democratically 150th Birthday, a tree was planted for supply chain for our farmers by providing a
within producer communities. For more every Sainsbury’s colleague, including the confirmed outlet and price for their animals,
information please see our Fairly Traded creation of 150 woods with landowners allowing for forward planning and the
Progress Report on our corporate website. and farmers. We also provided colleagues confidence to invest in their businesses.
with tree seeds to plant themselves.
This year we also trialled our Kinermony
493,750
range, produced from an integrated supply
Protecting forests chain. The range is a uniquely sourced, fully
traceable and renowned breed of Aberdeen
With many of the world’s tropical forests at number of trees planted in partnership Angus beef with historic ties to the
risk, we have a long history of collaborating with the Woodland Trust this Sainsbury’s family. We also continue to be a
with others to progress greater sustainable past year, 3.9 million since 2004. key partner in the North Highland Initiative
sourcing of palm oil, cocoa, soy and timber (NHI) project to support rural communities
globally. in the far north of Scotland, working with
over 100 small family farmers and crofters
We use palm oil in a variety of our own-
supplying cattle into our North Highland
brand products and are proud that 99.1
range.
per cent of our palm oil is sustainably
sourced to an independent standard. We We are working closely with our lamb
are continuing to seek new ways to ensure farmers via our Taste the Difference (TtD)
¹ Based on 2019 calendar year
2
Based on the number of MSC labelled products14 Our values make us different J Sainsbury plc Sustainability Update 2019/20
initiative. Within this scheme we aim with NIAB and AC Goathams focused on keynote speaker, with attendees including
to build open and resilient relationships understanding and measuring soil health. our farmers, growers, suppliers, academics
with our farmers and share best practice and industry stakeholders.
to improve quality and consistency.
The initiative was created to ensure a Backing British Farming
sustainable and futureproof supply of the Collaborating on global
TtD range and allows us to support over 800
Welsh hill farmers.
goals
We also continue to work closely with our With a growing population and our planet’s
Dairy Development Group, paying our dairy resources being pushed to their limits, we
farmers a fair price through our cost of are focusing our efforts where we can make
production model. This provides a ring- the greatest difference. We believe that
fenced supply which has continued to see industry collaboration is the only way to
benefits such as higher health and welfare address domestic and global issues at the
outcomes, and improved efficiency and speed and scale required. We have a strong
business sustainability. track record of partnering to help address
global challenges and drive change in our
value chains. We are currently involved in
Sustainable crops many industry collaborations, including:
As a UK retailer, we are proud to support • Better Cotton Initiative
We have been working closely with our British farmers and growers. This year
growers through Crop Action Groups (CAG) we returned as a principal sponsor for • Ethical Trading Initiative
since 2006, and we’re proud to say that the Linking Environment and Farming (LEAF)’s
• Roundtable on Sustainable Palm Oil UK
number, size and reach of these groups has Open Farm Sunday, for the fourth year.
grown considerably over this time. We are The event saw 365 British farms opening • Roundtable for Sustainable Soya
currently running CAGs across over 30 crop their gates to over 250,000 visitors, and
areas, this covers the UK as well as other we funded sustainable farming posters • Retailer Palm Oil Group and Retail Soy
countries and regions, including Spain, for farmers to display on the day. We Group
South Africa and South America. also continue to support LEAF’s Farmer • World Cocoa Foundation
Time initiative (formerly known
We also work with our as FaceTime a Farmer). The
growers via Grower programme continues to gain
Interaction Groups momentum and has seen
(GIGs), which are around 9,000 pupils chatting
forums to get growers virtually to farmers from their
of different crops classrooms.
together to identify new
thinking and advance We held our annual Farming
best practice. Working Conference this year, and
with our orchard crop were delighted to welcome
suppliers, we recently Emma Howard Boyd, Chair of The
held a GIG in partnership Environment Agency as our
Net Zero Be a place
by 2040 where we
all love to
work
As part of our Net Zero by 2040
commitments, we will ensure that the
impact of our operations is net positive
for biodiversity. Whilst having high ethical
standards that we and our suppliers
adhere to is a huge part of our strategic
priority of being a place where we all love
to work.
Our priorities are designed to ensure we
continue to give our customers what
they want in a rapidly changing retail
marketplace, while also driving value for
our shareholders.15 Our values make us different J Sainsbury plc Sustainability Update 2019/20
“
We will be setting science-based targets
for emissions reductions and will be a Net
Zero business across our own operations by
“Sainsbury’s endorsement of Aerofoils 2040. We are really proud of the progress
has established this unique product we have made so far, achieving a 42 per
as the industry gold standard in cent absolute reduction in the last 15 years
energy saving technology. As one despite our estate increasing by 46 per cent
Respect for our of the fastest-growing “green tech”
companies in the UK, it’s great that
over the same timeframe.
environment Aerofoil Energy has been part of
Sainsbury’s drive towards a more Improving Air Quality
sustainable retail future.”
We recognise the impact of the vehicle
Paul McAndrew emissions on air quality and human
Founder and CEO of Aerofoil Energy health and continue to trial and roll out
Related UN Sustainable Development Goals
new technologies to minimise emissions
across our fleet. We have been working
with Imperial College London on our
electric van trials, which have given us vital
Climate change and resource data on the operational considerations
scarcity are complex, global of running refrigerated, electric vans.
We’re now looking to extend the trial and
challenges, which affect every have one of our click and collect hubs
part of our business. running entirely on electric vans by the
To grow our business sustainably, we are end of the 2020/21 financial year. We also
cutting carbon, maximising energy and have a strategy in place for when electric
water efficiency, reducing packaging and vans become more widely available that
keeping food waste at a minimum. will enable us to transition at speed.
Net Zero by 2040 42%
absolute reduction in carbon emissions
As part of our Net Zero by 2040 plan, we against our 2005 baseline, achieved a year
have committed to investing £1 billion over early (2020 target: 30 per cent reduction)
twenty years towards becoming a Net Zero Over the past 12 months we’ve been
business across our own operations by developing our own smart building solution,
2040, aligned to the highest ambitions of and to date, we have over 220 stores with
the Paris Climate Change Agreement. The fully connected lighting controls, through
investment will enable Sainsbury’s to fulfil this platform. This has enabled us to help
Scope one and Scope two emissions, putting save 991,000 kWh. We have also continued
the business on course to reach Net Zero our programme of LED replacement lighting
a decade ahead of the UK government’s this year, which with our work on aerofoils
deadlines, and we are working with and water saving taps has seen an
suppliers to set their own ambitious Net investment of over £6.5 million. For our
Zero commitments, in line with the Paris greenhouse gas emission disclosure
Agreement goals. We will provide clear, please see our Annual Report.
frequent disclosures on our progress, and as
signatories of Task Force on Climate-related
Financial Disclosures (TCFD), we will use CDP A rating
scenario modelling to further assess the for our climate change
impact of current and emerging climate disclosure, the only UK food
change on our business model and strategy. retailer to achieve an A rating
for six consecutive years
Cutting carbon
emissions
Setting science
This year we continued to rollout Aerofoil based targets
technology across Sainsbury’s stores,
celebrating our 400,000th fitting in March. Science-based targets seek to deliver
This milestone fitting meant that all on the commitment made by
convenience stores and supermarkets are international leaders to meet the
now fitted with this innovative energy goals of the Paris agreement - to
saving technology. Aerofoil Formula 1 limit global warming to well-below
technology prevents cold air from leaving 2°C, above pre-industrial levels
the cabinet and directing it back into the and pursue efforts to limit warming
fridge, this reduces energy consumption by to 1.5°C. We have signed up to setting a
15%, keeping aisles warmer and reducing science-based target with the Science Based
food waste by maintaining products at their Targets initiative (SBTi) and have worked
optimal temperature. As a result, Aerofoil with the Carbon Trust to map and assess
equipped fridges are delivering carbon Scope 1, 2 and 3 emissions.
savings of almost 9,000 tCO2e per year16 Our values make us different J Sainsbury plc Sustainability Update 2019/20
Reducing, reusing and purchase a reusable and recyclable bag
made from recycled plastic bottles.
Collaborating on global
recycling challenges
Through our facilities we help our This year we held an Environmental Science
customers reduce their waste and put it Conference in partnership with the Natural
to positive use, helping customers recycle Environment Research Council (NERC) in
unwanted clothing, metal cans, glass, order to have collaborative discussions
plastic, paper and other materials at our on key themes; air quality, biodiversity,
managed recycling facilities in 274 stores plastics, soil health and water quality,
nationwide. This year we trialled Deposit with 175 attendees across our suppliers,
Return Schemes with our reverse vending academics, research councils, government
machines. Customers could recycle plastic, officials and industry stakeholders. We have
metal cans and glass drink containers in also responded pro-actively to government
exchange for a 5p per item coupon towards consultations, including the Environment
their shopping. Customer uptake proved As members of WRAP’s UK Plastic Pact, we Bill, welcoming impending legislation which
positive and we’re now looking at how these are collaborating to eliminate unnecessary are bringing focus on the global challenges
trials can be scaled up. single-use packaging by 2025 and working of today.
We support the UN Sustainable towards all plastic packaging being 100 per
Development Goal 12.3 to halve food cent reusable, recyclable or compostable by
waste by 2030 and are a signatory to the 2023, as well as containing at least 30 per
Courtauld Commitment to cut food waste cent recycled content by 2022.
by 20 per cent by 2025. We are committed
to supporting the delivery of these
targets by working to reduce operational Saving water
food waste and put it to positive use.
We have sent no food to landfill since
2013 and 92 per cent of our stores have
Food Donation Partners for surplus food.
92%
stores with Food Donation Partners up from
87 per cent in 2018/19 (2020 target: 100%)
Pledging to cut plastic
Net Zero by
Packaging helps us deliver fresh,
undamaged produce, but we know that it
can have a negative impact on our planet.
Respecting our environment is one of our
core values and therefore reducing plastic
across all our stores and supply chain is one
Having reached our water reduction target 2040
years ahead of schedule, we went beyond
of our absolute priorities. This is why we our 2020 target this year, achieving a 33 As part of our Net Zero plan we have
were the UK’s first major retailer to make a per cent absolute water reduction. We are made the following commitments;
significant commitment to reduce plastic, continuing to drive efficiency across the • Reduce greenhouse gas emissions
pledging to cut plastic by 50% by 2025. business, and are proud to have received from our own operations to Net Zero
a CDP A rating for our water disclosure
this year. Our engineering teams are • Minimise the use of water in our own
currently in the process of rolling out low operations, driving towards water
flow taps in our washrooms and reviewing neutral
solutions for our food preparation areas.
• Increase the use of recycling in our
own operations and make it easier
33% for customers and our colleagues to
recycle
absolute water reduction against our
• Reduce our use of plastic packaging
2005 baseline1 (2020 target: 30 per cent)
by 50% by 2025 and then go further
As part of this commitment, Sainsbury’s • Reduce food waste by 50% by 2030
achieved a 4 per cent reduction of primary
plastic packaging in 2019. We removed,
reduced and replaced plastic packaging
CDP A rating Our priorities are designed to ensure we
continue to give our customers what
they want in a rapidly changing retail
across various categories and improved for our water disclosure
marketplace, while also driving value for
recyclability by replacing 1,200 tonnes of our shareholders.
own-brand packaging with recyclable
alternatives. In September we removed all
plastic produce bags from our bakery and
produce aisles, becoming the first retailer to
do so, customers now have the option to
¹ Excludes Argos to be consistent with prior year disclosure. Absolute water reduction including Argos for 2019/20 is 30%.You can also read
