Closer every day. Corporate Responsibility Report 2011 - Woolworths Group

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Closer every day. Corporate Responsibility Report 2011 - Woolworths Group
Corporate Responsibility
Report 2011

Closer every day.
Closer every day. Corporate Responsibility Report 2011 - Woolworths Group
Woolworths Limited Corporate Responsibility Report 2011

CONTENTS
Key Indicators – 2011                                     2
Statement from the CEO
and CEO Designate                                         4
Understanding our Stakeholders
and What is Important to Them                             6
Issues of Public Interest                                 8
Our Business                                          10
Responsible Retailing                                 12
Our Community                                         20
Our Environment                                       24
Our People                                            34
Our Approach to Corporate
Responsibility and Sustainability                     49
Independent Assurance
Statement                                             51
United Nations Global Compact                         54
Global Reporting Initiative                           55
Store and Trading Area Analysis                       57
Glossary                                              58
Company Directory                                     59

www.woolworthslimited.com.au
ABN 88 000 014 675
Closer every day. Corporate Responsibility Report 2011 - Woolworths Group
Scope of                          Awards and
Report                            Recognition
Unless otherwise stated,          —— Woolworths Supermarkets           —— Association of Chartered          —— Woolworths and CHEP won
this report covers all of our        is Australia’s most valuable         Certified Accountants                the 2011 NZ Environmental
operations in Australia and          brand, valued at $7.59 billion       (ACCA) Australia and                 and Packaging Award for
New Zealand for the 2011             by Brand Finance in                  New Zealand Sustainability           Supply Chain Influence on
financial year (1 July 2010          accordance with the                  Reporting Awards 2010: Best          Packaging Systems with our
to 30 June 2011). Data for           International Organization for       Report in the Retail Sector.         reusable produce crates.
Croma (our electronics joint         Standardizations’ (ISO)           —— Carbon Disclosure Project
venture with Tata in India           International Standard on            (CDP) Carbon Disclosure
which provides wholesale             Brand Valuation.                     Leadership Index 2010: one
services to 64 stores) is only    —— 2010 Manukau Business                of seven Australian companies,
included in the Our Business         Excellence Awards: the               and the only Australian
and Our People sections              Accident Compensation                retailer, to be listed.
(excluding Safety). Data             Corporation (ACC) Workplace       —— Woolworths Limited is listed
for global sourcing offices          Safety Award was won by              in the Dow Jones Sustainability
in Hong Kong and China is            Progressive Enterprises              Index in both the World and
only included in the Our People      Limited (NZ) for leadership          Asia/Pacific Indexes. We’re
section (excluding Safety).          demonstrated by senior               also ranked as a Sustainability
With only 25% ownership              management, their passion            Leader in the Food and Drug
and no operational control           to make ‘Progressive’ a safer        Retailers Sector.
of Gage Road Brewery, there          place for our team, customers
is no information reported           and contractors, as well as the
for this business.                   speed at which the business
                                     had turned around its
                                     performance and culture.

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Closer every day. Corporate Responsibility Report 2011 - Woolworths Group
Woolworths Limited Corporate Responsibility Report 2011

Key Indicators
– 2011
RECONCILIATION ACTION PLAN                                            EBIT

Woolworths launched its
Reconciliation Action Plan
in June 2011 to advance
                                                                      $3,276.4m
opportunities for Indigenous
Australians.                                                          CARBON INTENSITY (T CO2 -E/$ MILLION EBIT)

                                                                        2011                                        881

                                                                        2010                                            956
                                      Opportunities
    Relationships

                                                                        2009                                              981
                                                          Reporting
                     Respect

                                                                      Energy Intensity (MJ/m2)

                                                                               3,178              3,092                 3,006

The plan is a practical pathway towards greater inclusiveness
in the Company, leading towards our long-term goal to have
a workforce that represents Australia’s diverse population.
                                                                               2009                2010                 2011
The four key pillars in the plan are relationships, respect,
opportunities and reporting.                                          Note: Supermarkets Australia, Stationary Energy

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Closer every day. Corporate Responsibility Report 2011 - Woolworths Group
LOST TIME INJURY FREQUENCY RATE (LTIFR)   EMPLOYEES RECEIVING PAID MATERNITY LEAVE

                                                                         1,545
                                                          1,436
     15.77
                12.08                             1,080
                            8.51

     2009        2010       2011                  2009    2010           2011

                                          COMMUNITY INVESTMENT ($ MILLION)

                                           2011                                  62.3

                                           2010                   36.3

                                           2009           27.5

                                          $60m
WATER SAVINGS (ML)                        DEVELOPING TALENT

  180
               318                        invested in learning and
                               342
  2009

                2010                      development training.
                                   2011

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Closer every day. Corporate Responsibility Report 2011 - Woolworths Group
Woolworths Limited Corporate Responsibility Report 2011

Statement from
the CEO and
CEO Designate

“I’m enormously proud of what
we have achieved at Woolworths
Limited and firmly believe we have
the team in place to achieve even
greater things in the future.”

In 2011, Woolworths continued                 represented and paving the way for      areas we know we can improve            400,000 direct shareholders,
to take a strong lead in corporate            other retailers to follow and adopt     on but we work hard to strike a         we offer long-term, sustainable
responsibility and made excellent             more sustainable working practices.     balance and to operate in a fair,       value creation (increasing
progress towards the achievement              Woolworths Limited is a diverse         open and conscientious manner           dividends by 6.1% this year).
of our sustainability targets.                and complex organisation that           – ever mindful of the broader           And as a community neighbour
Both domestically and globally,               touches the lives of literally          resonance of our decisions.             we do our best to be a shoulder
Woolworths is quietly earning                 millions of people either as            Woolworths is a company I am            to lean on in a crisis and make
respect and recognition for the               customers, investors, suppliers,        very proud of and one that I know       a positive difference every day
integrity and depth of its corporate          employees or members of the             has an overall positive impact on       (contributing $62.3 million
responsibility programs, and                  communities in which we operate.        society. As an employer of more         to the community including
through our close association with            We do our utmost to provide the         than 190,000 people, we strive to       $21.5 million in emergency relief,
global organisations such as The              very best choice, value, quality        provide security and opportunity        including the Queensland floods
Consumer Goods Forum and the                  and service possible and to deliver     for them to realise their potential     and Christchurch earthquake).
United Nations Global Compact                 these as responsibly as we can.         (spending $60 million this year         There are many achievements
Network, we are at the forefront              Of course, as a highly visible,         on training and development).           in this year’s Corporate
of debate and central to the                  diverse and consumer-facing             As a customer of many thousands         Responsibility Report.
positive change taking place in               business, we fully accept and           of suppliers, we aim to be              Of particular note are the launch
critical areas such as ethical                welcome scrutiny. Undoubtedly,          collaborative, fair and focused         of our Reconciliation Action Plan,
sourcing. Working collaboratively             the scale and breadth of our            on mutual benefit (further              a 30% reduction in Lost Time
with the world’s best retail                  business activities attract criticism   advancing our Fresh Food Futures        Injury Frequency, the launch of
organisation, Woolworths is                   from time to time. We fully             program during the year to              an industry leading sustainable
actively ensuring that Australian             acknowledge that we don’t always        improve agricultural sustainability).   fish and seafood policy and a 10.9%
and New Zealand interests are                 get it right and there are many         As an investment for more than          reduction in carbon emissions.

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Closer every day. Corporate Responsibility Report 2011 - Woolworths Group
My congratulations go to all our    My commitment to Woolworths’           For example, since 2007 we have        stakeholders, we will continue
employees who have helped drive     Corporate Responsibility agenda        invested $55.7 million in energy       to drive positive change for our
these important changes and         is integral to my vision for the       efficiency projects right across our   business, our community and
demonstrate Woolworths’             long-term success of this company.     business – an investment that will     our society.
leadership.                         I have been a staunch advocate on      realise approximately $93 million
Embedding sustainable principles    key areas of responsible retailing,    in savings by 2015. On every
remains a key focus for our         particularly in relation to            measure, our efforts are certainly
organisation and, as I hand the     responsible service of alcohol,        paying dividends.
CEO baton onto Grant O’Brien,       during my time leading our liquor      I am very pleased our Corporate
I am extremely confident he will    business and I know first hand how     Responsibility Report has once
                                    important it is to use your size and                                          Grant O’Brien
uphold those principles and lead                                           again achieved an A+ rating from
                                    scale to make a positive difference                                           Incoming CEO
the next generation of Woolworths                                          the Global Reporting Initiative,
towards a more sustainable          and to constantly raise the bar.       reflecting our ongoing commitment
retail future.                      I am also aware of the fact that       to transparent and accountable
                                    good corporate responsibility          reporting practices.
                                    equals good business management,       Woolworths has achieved a great
                                    with a very real return on our         deal but there are many more
                                    investment.                            opportunities open to us.
                                                                           By listening closely to our
Michael Luscombe                                                           customers and working
Outgoing CEO                                                               collaboratively with our               Woolworths is a signatory of the United
                                                                                                                  Nations Global Compact and a member
                                                                                                                  of the Global Compact Network Australia.

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Closer every day. Corporate Responsibility Report 2011 - Woolworths Group
Woolworths Limited Corporate Responsibility Report 2011

Understanding our Stakeholders
and What is Important to Them
The following stakeholders are critical to our business and influence our decision making.

Stakeholder group                               Our engagement in 2011                                                                 What they told us they expect
Customers                                       We monitor consumer sentiment and issues impacting on shopping behaviour               Value for money, choice, quality,
                                                through continuous qualitative research with focus groups and reviews of issues        good service and healthy options.
                                                online, in social media and through our Customer Contact Centre.
                                                New products and brands are tested through concept clinics and workshops; we
                                                explore consumer reaction through online communities and quantitative research
                                                with our online panel of shoppers.
                                                Supermarket specific focus studies are undertaken where certain stores are placed
                                                on the customer feedback program and the Store Manager reviews ratings and
                                                verbatim feedback and follows up directly with all customers who require feedback.

                                                The Customer Contact Centre receives feedback via phone, email, online and             The most common queries or
                                                in-store. Our systems monitor and track customer feedback and our responses            feedback to our Contact Centre
                                                to feedback. The goal is to respond to all our customers within 24 hours.              are regarding products, general
                                                                                                                                       queries and customer service.

Investors                                       Quarterly investor briefings, Annual General Meeting (AGM) open to all shareholders,   Competitive returns on their
                                                investor call centre service, direct contact in writing with our CEO, Chairman and     investment.
                                                Company Secretary and an email contact page on the Investor Centre on the              Received 318 written submissions
                                                website.                                                                               from shareholders for the November
                                                                                                                                       2010 AGM, with the most frequently
                                                                                                                                       raised topics being executive
                                                                                                                                       remuneration, gaming, shareholder
                                                                                                                                       incentives and Australian products.

                                                Submitted reports to the Carbon Disclosure Project on Carbon Disclosure and            Disclosure on risk identification
                                                Water Disclosure.                                                                      and mitigation in areas of climate
                                                                                                                                       change and water.

Employees                                       Focused on developing, building and diversifying the capability of our people          Professional development and
                                                for current and future opportunities. Invested over $60 million in learning and        training, career opportunities
                                                development initiatives. Training programs include mentoring, networking,              and a safe and healthy workplace.
                                                cross-divisional learning opportunities and targeted leadership programs.
                                                Launched Reconciliation Action Plan to advance opportunities for Indigenous
                                                Australians.
                                                Regular employee engagement surveys are conducted, with staff in Progressive
                                                Enterprises Limited, Dick Smith and Liquor surveyed in 2011.

Suppliers                                       Hold regular planning meetings or develop Shared Objective Plans with our largest      Fair treatment, the opportunity to
                                                suppliers in Supermarkets and BIG W.                                                   develop long-term trade relationships,
                                                Quarterly supplier newsletters on Trading and on Logistics, and a dedicated secure     and ready access to, and prompt
                                                vendor website providing up-to-date trading information for better planning and        responses from, our people who
                                                more effective use of resources.                                                       deal with them.
                                                Annual trading performance measurement program and awards event to recognise
                                                innovation and celebrate partnerships. Supplier of the Year in 2010/11 was Coca-Cola
                                                Amatil Pty Ltd. The winner of the $100,000 Fresh Food Grant in 2010/11, awarded for
                                                a sustainable product, packaging or process, was Beak and Johnson Pty Ltd.

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Closer every day. Corporate Responsibility Report 2011 - Woolworths Group
Stakeholder group              Our engagement in 2011                                                             What they told us they expect
Communities                    Woolworths is committed to supporting quality, grassroots initiatives with         Be good neighbours and invest
                               sustainable outcomes. This is done by supporting partnerships with community       in local communities.
                               organisations and charities in four core areas:
                               —— Health and wellbeing
                               —— Sustainability and environment
                               —— Education and employment
                               —— Rural and regional

Governments and regulators     Woolworths engages with government and regulatory officials regarding emerging     Compliance with laws
                               and current retail, business and employment issues and economic, social and        and regulations.
                               environmental policy matters.

                               In 2011, Woolworths lodged 19 formal submissions to state and federal government   Proactive engagement in
                               inquiries in Australia and New Zealand. These submissions can be viewed at         public policy discussions
                               www.woolworthslimited.com.au                                                       and constructive advice.

Non-government organisations   During the year, we continued our dialogue and engagement with many NGOs,          Leadership on sustainable and
(NGOs)                         some examples are:                                                                 ethical sourcing by influencing
                               —— Drinkwise Australia, which promotes a responsible and safer drinking culture.   our supply chain.
                               —— Anaphylaxis Australia and Diabetes Queensland on food allergens                 Clearly communicated policies
                                  and nutrition.                                                                  and principles on issues of
                                                                                                                  interest to society.
                               —— Sustainable Fisheries Partnership Foundation, Marine Stewardship Council
                                  and Taronga Conservation Society on our Sustainable Seafood                     Targeting our investment to
                                  sourcing strategy.                                                              adoption of sustainable farming
                                                                                                                  methods and capacity building
                               —— Landcare Australia on sustainable agriculture and food production.
                                                                                                                  in the sector through supporting
                               —— Nuffield, Primary Industry Education Foundation, Primary Industries Centre      education and training.
                                  for Science Education, Australian Rural Leadership Foundation on building
                                  capacity and leadership in the primary industry sector.
                               —— Foodbank and other food relief charities on food provision to those in the
                                  community in need of assistance.
                               —— WWF and Roundtable for Sustainable Palm Oil (RSPO) on implementation
                                  of our Sustainable Palm Oil policy.

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Closer every day. Corporate Responsibility Report 2011 - Woolworths Group
Woolworths Limited Corporate Responsibility Report 2011

Issues of
Public Interest

    Cost                                        Competition                            Liquor                             Gaming
    of living                                   and farm-                              retailing
                                                gate prices
    Our response                                Our response                           Our response                       Our response
    Inflation across a range of                 Woolworths supports strong             As a responsible retailer          The ALH Group, a joint venture
    utilities and living costs has              competition in the retail market.      of alcoholic beverages,            between Woolworths Limited
    grown considerably since                    Competition keeps prices low           Woolworths goes beyond             and the Bruce Mathieson
    mid-2010, significantly                     for customers and drives               regulatory compliance with         Group, is committed to
    dampening consumer demand                   improvements in products,              a strict set of processes and      providing responsible gaming
    and slowing the retail economy.             range and services. Increasing         procedures that govern all         in our venues. The Group
    In Australia, there have been               competition has been present in        aspects of our liquor operations   acknowledges that problem
    very large increases in electricity         all categories in which Woolworths     to help protect individuals        gambling is a serious
    and water charges. These                    operates. In supermarkets, the         and society from the harm          community concern.
    increases have hurt families                entry of global retailer Costco,       caused by excessive alcohol        ALH complies with all applicable
    and those people on fixed or                as well as the continued growth        consumption.                       responsible gambling legislative
    low incomes, such as pensioners             and improvement from Coles,            Our processes include annual       requirements and participates
    and self-funded retirees.                   ALDI and the Metcash IGA               audits of licensing and            in many government gambling
    Woolworths is committed to                  group, has increased discounting       responsible service compliance,    working groups to assist in
    bringing downward pressure                  activity. Retailers have also taken    our ID25 policy for serving        identifying and developing
    on prices in both Supermarkets              full advantage of the high             alcohol, point of sale campaigns   appropriate responsible
    and BIG W. We have continued                Australian dollar to pass through      and a range of measures to         gambling initiatives.
    our campaign in Woolworths’                 cost savings in better prices.         better manage alcohol related      ALH’s objective, supported by
    Supermarkets to reduce shelf                Woolworths has developed strong        issues in some communities.        our Hotel and Gaming Charter,
    prices on thousands of products.            long-term direct relationships with    In specific communities,           is for the Group’s facilities to be
    We have also adjusted the prices            producers and suppliers across the     Woolworths has worked with         enjoyed as a social recreation
    across our private label ranges             primary industries sector. Some        local community representatives    by responsible individuals who
    to ensure they meet or beat                 pricing action initiated by other      to adjust the liquor range and     choose to use them in a safe
    branded product. Private                    retailers, for example private label   eliminate problem products         and supportive environment.
    label has proven to be a key                milk reductions, has caused            such as cask wine.                 ALH also supports voluntary
    alternative for families looking            considerable concern among                                                initiatives that allow individuals
    for value when shopping, and                suppliers that long-term                                                  to better exercise control over
    the range has increased in                  profitability will be impacted.                                           their spending.
    Australia and New Zealand.                  Whilst Woolworths did not initiate
    In many key categories, such as             this pricing we took the decision
    food and consumer electronics,              to match it so that we continued to
    consistent price deflation has              offer our customers competitive
    been the norm and reported to               prices. A Federal Parliamentary
    the market by many retailers,               Inquiry has been held to consider
    which has benefited consumers.              these issues. Woolworths has
                                                participated fully in the Inquiry
                                                process, and has argued that
                                                delivering value to consumers has
                                                to be balanced with a sustainable
                                                return for the producer.

8
Use of
palm oil
                                    Food imports Food waste
                                    and import
                                    protections
                                                                                                          97.3%
                                                                                                          of fresh fruit and
                                                                                                          vegetables sold
                                                                                                          in our stores was
Our response                        Our response                      Our response                        grown in Australia.
Woolworths is a member of           Woolworths is committed to        Woolworths has a target of

                                                                                                          2m+
the Roundtable on Sustainable       giving preference to domestic     zero food waste by 2015. All
Palm Oil and has committed          sourcing for our fresh produce.   efforts are made to sell the food
to use only certified sustainable   We have hundreds of direct        and products in our stores, and
palm oil by 2015 for all private    trading relationships with the    where products cannot be sold,
label products.                     very best fruit, vegetable and    our first choice is to donate
                                    meat farmers and growers in       surplus fresh food to local food
Woolworths has commenced
                                    Australia and New Zealand.        relief organisations. In 2011,
                                                                                                          meals from food donated
listing palm oil and derivatives
greater than 5% on pack             In 2011, in our Australian        we donated enough food to           to food relief charity
labelling for all private label     Supermarkets, 100% of our         produce over two million meals.     partners.
products to facilitate customer     fresh meat was sourced from       We are also implementing
choice. We have also introduced     Australian producers and          other diversion programs
sustainably-sourced palm            97.3% by weight (96.5% by         for composting and waste
oil for our in-store bakery         value) of our fresh fruit and     to energy.
products.                           vegetables was grown in
                                    Australia.
                                    In 2011, in our New Zealand
                                    Supermarkets, 100% of our
                                    fresh chicken, pork and lamb,
                                    and 90% of fresh beef, were
                                    sourced from New Zealand.

                                                                                                                                9
Woolworths Limited Corporate Responsibility Report 2011

Our
Business

Since 1924, Woolworths Limited has grown

                                                          414,591
from a single store in Sydney’s Pitt Street into          Number of shareholders
a company with stores in most metropolitan
and regional areas of Australia and New Zealand.
In 2011, we celebrate our 87th year in retailing.
Woolworths has been listed on the Australian
Securities Exchange since 1993, under the

                                                          45,000+
                                                          Number of employee shareholders
code WOW.

                                                          190,723
                                                          Total number of employees

                                                          171,416 employees in Australia.
                                                          19,104 employees in New Zealand.
                                                          203 employees in India and China.

                                                           20                         th
                                                            in global retailing, based on
                                                            sales revenue – highest ranking
                                                            Australian retailer.

10
Our Market Share in                             New Acquisitions

                                                                                      27m
Food Retailing                                                                        Average number of weekly customers
                                                During 2011, Woolworths
Woolworths is the largest                       acquired Magnet Mart in the
Australian retailer, by sales                   Australian Capital Territory
revenue; however, competition in                and Flatman’s Home Timber
food and grocery retailing is strong            and Hardware in Victoria,
and the Australian consumer has                 as part of its growth into the
benefited from competitive pricing              Home Improvement sector.

                                                                                      3,241
in some staple products. Roy                    In May 2011, we completed the         Number of retail stores
Morgan research showed that                     acquisition of the Cellarmasters
72.5% of weekly spending on fruit               Group, which will accelerate
and vegetables takes place outside              growth in the liquor industry
of a Woolworths store.                          through new and enhanced
                                                capabilities in production,
                                                operational services and private
                                                label supply chain, enabling

                                                                                      $54.1b
                                                the Company to serve a new            Sales revenue
                                                customer segment in the
                                                direct marketing channel.

Direct economic                                 Indirect economic
contribution                                    contribution

$6.3b                                           $101b
                                                                                      $3.3b
                                                                                      EBIT
in wages and benefits for our                   indirect contribution to
employees, 5.0% increase from 2010.             the Australian economy.

$2.0b
in taxes to the government.
                                                686,000+
                                                full-time equivalent jobs.

                                                                                      $2.1b
                                                                                      Net Profit After Tax

$62.3m
investment in local communities,
                                                $711m
                                                contribution to Australian economy
a 71.6% increase.                               from construction expenditure.

Global ranking of supermarket chains with stores in Australia
                                                                             2009
                                                                        (52 weeks)
                                                                           ranking
Costco Wholesale Corp (USA)                                                       7
Aldi Einkauf GmbH & Co oHG (Germany)                                              8
Woolworths Limited                                                               20
Wesfarmers Limited (owns Coles supermarkets)                                     23

Source: Deloitte, Global Powers of Retailing 2011.

                                                                                                                       11
Woolworths Limited Corporate Responsibility Report 2011

Responsible
Retailing

We believe in earning our customers’ trust
and respect by acting responsibly both inside
and outside our stores and enabling them
to make informed choices.

     Buy and sell responsibly.
     Source sustainably and ethically.
     Ensure quality and safety.
     Deliver value and choice for customers
     with focus on health and wellbeing.
12
265t
Health and Wellbeing                    Woolworths’ Macro Wholefoods                   on the dangers of secondary
                                        Market range has increased to                  supply of alcohol to minors.
Woolworths is committed to              more than 220 products under the               Woolworths continues to
helping customers make informed         Organic, Gluten Free, Free Range,              participate with police, local
health, ethical and environmental       Natural and Mini Macro ranges.                 councils and community groups
decisions when buying Woolworths
brands. We do not want to dictate
                                                                                       in initiatives to tackle problem                 salt removed from
what customers should and
                                        Responsible Selling                            drinking. After extensive
                                                                                                                                        in-store bakery bread.
                                                                                       community consultation,
shouldn’t eat but we can help them      Selling alcohol responsibly                    we have implemented measures
to make more informed decisions
                                        As a responsible retailer of alcoholic         that include the removal of lower
for themselves and their families.
                                        beverages, we go beyond regulatory             priced wine products for sale in
Woolworths is a member of the                                                          some communities and voluntarily
                                        compliance with a strict set of
Australian Federal Government’s                                                        reducing trading hours.
                                        processes and procedures that
Food and Health Dialogue, which
                                        govern all aspects of our liquor               Woolworths has approximately
works with industry on a range
                                        operations to help protect                     514 licensed stores involved in
of voluntary reformulation of
                                        individuals and society from                   local liquor accords, where
commonly consumed foods,
                                        the harm caused by excessive                   licensees and other stakeholders
including bread and cereals.
                                        alcohol consumption.                           take action to improve safety and
The Daily Intake Guide (DIG) was                                                       reduce alcohol-related anti-social
                                        All Woolworths Liquor Group staff
created to give customers more                                                         behaviour. Commitment to these
                                        are trained in Responsible Service
information about the pre-packaged                                                     accords involved an estimated
                                        of Alcohol and regular refreshers
food and drink they buy and                                                            $468,000 in wages and 15,420
                                        of this training occurs. Compliance
consume. The DIG front-of-pack                                                         labour hours to attend local
                                        with responsible service and
labelling provides a simple graphic                                                    liquor accords.
                                        licensing is assessed in annual
showing the energy, fat, saturated
                                        audits of our licensed outlets.                Our Charter for ranging alcohol
fat, sugars and sodium content as
                                        To limit the risk of selling alcohol           in our stores includes 10 principles
a proportion of the recommended
                                        to underage customers, or to people            that we assess any alcoholic or
daily intake amount.
                                        supplying them, we continue to                 alcohol branded products against,
Already more than 65% of private                                                       before considering them for sale.
                                        apply the ID25 policy, which
label products have the DIG                                                            These principles send a strong
                                        requires staff to ask customers
thumbnails and Woolworths                                                              message against products that
                                        for identification if they appear
has committed to front-of-pack                                                         target minors or encourage
                                        to be aged 25 or younger. The
nutritional information labelling                                                      irresponsible drinking.
                                        ‘Don’t buy it for them’ point of
on 100% of our private label
                                        sale campaign provides awareness
products by June 2012.

Our Charter for ranging alcohol in our stores
Principle 1                    Principle 2                          Principle 3                        Principle 4                           Principle 5
The product should not         The product should not               The product should not have        The products should not draw          The product should not
have the potential to appeal   have an appearance that could        an appearance which may lead       any association with drug             encourage illegal or
to minors.                     potentially lead to confusion        to confusion about its alcoholic   culture, narcotics or other illicit   immoderate consumption
                               with confectionery or soft drinks.   nature or strength.                drugs or drug paraphernalia.          such as binge drinking,
                                                                                                                                             drunkenness or drink‑driving.

Principle 6                    Principle 7                          Principle 8                        Principle 9                           Principle 10
The product should not         The product should not               The product should not feature     The product should not                Ready to drink products
suggest any association        suggest that consumption             imagery or language that           suggest that any physical             containing more than two
with dangerous, violent,       can lead to social, sporting         could be deemed offensive on       or mental health benefit              standard drinks per single
aggressive or antisocial       or sexual success.                   cultural, religious, ethnic or     can be obtained by                    serve container will not be
behaviour.                                                          gender grounds.                    consumption.                          ranged by Woolworths
                                                                                                                                             Liquor Group.

                                                                                                                                                                             13
Woolworths Limited Corporate Responsibility Report 2011

Responsible Retailing

71.5%
                                              Responsible service                          The ALH Group works with David              Ethical Sourcing
                                                                                           Schwarz, a well known former
                                              of Gaming                                    AFL footballer and reformed                 Labour conditions
                                              The ALH Group continues                      problem gambler, as its Responsible         in our supply chain
                                               to be committed to providing                Gambling Ambassador. David
                                                                                                                                       Woolworths is committed to
   audit completions in                       responsible gaming in its venues.            provides employee education and
                                                                                                                                       upholding human rights, not only
                                              ALH is aware that problem                    customer awareness about the
2011 of factories making                      gambling is a serious community              importance of ‘being honest with            with respect to its own employees
  Woolworths branded                          concern and that the Productivity            yourself about your gambling’.              but also in its supply chain, and
              products.(1)                    Commission report into gambling                                                          it has an Ethical Sourcing Policy
                                                                                                                                       which includes four key risk areas:
                                              (June 2010) estimated that between           Responsible Buying                          bribery and corruption; labour
                                              0.5% and 1% of adult Australians
                                              are problem gamblers.                        Woolworths publicly undertakes              rights; working conditions; and
                                                                                           to deal fairly, act reasonably, and         environmental compliance. The
                                              Industry, government, community
                                                                                           to negotiate outcomes with all its          policy is available on our website.
                                              and individuals have a shared
                                                                                           trade partners. We are committed            Woolworths is also a signatory
                                              responsibility for the promotion,
                                                                                           to fair dealings with our partners          to the United Nations Global
                                              development and practice of
                                                                                           while seeking the best deal for our         Compact (UNGC). UNGC
                                              responsible gambling. ALH wants
                                                                                           customers. This is written into our         signatories embrace, support
                                              to ensure its hotels provide a
                                                                                           corporate Code of Conduct.                  and enact, within their spheres
                                              safe and supportive environment
                                                                                                                                       of influence, a set of core values
                                              where its customers make                     Across our business, we abide
                                                                                                                                       in the areas of human rights,
                                              informed decisions about gambling.           by voluntary codes of conduct
                                                                                                                                       labour standards, the environment
                                                                                           in supplier trading relationships.
                                              ALH complies with all applicable                                                         and anti-corruption.
                                                                                           We were a founding member
                                              responsible gambling legislative
                                                                                           of the voluntary Produce and                Our policy is based on International
                                              requirements in each state and
                                                                                           Grocery Industry Code of                    Labour Organisation (ILO)
                                              participates in many state and local
                                                                                           Conduct, promoting fair trading             conventions and the principles
                                              government gambling working
                                                                                           practices and building better               of the United Nations Universal
                                              groups to assist in identifying and
                                                                                           business relationships.                     Declaration of Human Rights.
                                              developing appropriate responsible
                                              gambling initiatives.

                                              Our Hotel and Gaming Charter
                                              –      We strive to provide a safe and friendly environment in which all customers can socialise and enjoy themselves
                                                     in a good atmosphere.
                                              –      We provide good value, good quality meals and family friendly dining experiences.
                                              –      We restrict gaming room access to adults and ensure gaming rooms are screened or separated from other areas
                                                     of the hotel, so as to not attract children.
                                              –      We ensure responsible service of alcohol and provision of gaming, by making sure management and staff adhere
                                                     to all applicable rules and regulations and are trained to encourage and promote responsibility.
                                              –      We believe we have a shared responsibility, along with individuals, governments, families and the community,
                                                     to prevent harm.
                                              –      We actively support campaigns that warn of the dangers of drinking and gambling to excess and that inform
                                                     people where to get help.
                                              –      We ensure that ATMs provided for the convenience of all patrons are in a safe, central location and not in gaming areas.
                                              –      We are committed to introducing voluntary pre-commitment – a system that helps players stick to their limit
                                                     by nominating spending or time limits on gaming machines.
(1)                                           –      We do not engage in promotions that could encourage irresponsible drinking or gambling or that are directed
Factories in high risk regions                       at minors or vulnerable groups.
and emerging economies.

14
All Woolworths’ suppliers are             Suppliers are categorised as
expected to comply with                   ‘approved’, ‘conditionally approved’
requirements of our policy, which         or ‘at risk’ depending on the
is complemented by a compliance           audit outcome and compliance
audit program predominantly for           with policy requirements.
suppliers of our own branded              Our approach is to work with
products. Audits are conducted            suppliers to help improve their
by experienced third-party                labour and environmental
certification bodies. All audit           practices no matter which
criteria have been assessed               category they are in.
according to the level of risk            The most common area of
and categorised as critical and           non-conformance is in safety and
non-critical non-conformances.            health, and working hours.
Non-critical is further categorised
                                          Woolworths is an active member
as ‘high’ or ‘low’ in severity.
                                          of the Global Social Compliance
Areas of significant risk deemed          Program (www.gscpnet.com),
to be critical include specific           a multi-stakeholder program
criteria relating to child labour,        aimed at delivering a shared,
imprisoned or bonded labour,              consistent approach for
health and safety, or bribery and         continuously improving working
corruption. Breach of any specific        and environmental conditions
critical criterion will result in a       across all categories and sectors.
request for immediate resolution
or corrective action by the supplier.

Audit results                             Audit results
– Factory classifications in 2011         – Corrective actions raised in 2011
Approved                            42%   Critical                               2%
Conditionally approved              54%   Non-critical high                     75%
At risk                              4%   Non-critical low                      23%

Note: As at 12 September 2011.

Woolworths works with suppliers to address any
issues that are identified in ethical audits. During
the audit of an apparel factory, an incident of
child labour was reported. Seven local students
were found to be working in the factory during
their summer vacation. The children were aged
from 13 to 15 and had sought work during their
free time. The factory employed the children as
temporary staff, they did not sign labour contracts
and could come and go freely.
The factory’s management addressed this issue
by paying out the underage workers with relevant
wages, and establishing business rules prohibiting
underage workers from working in the factory.

                                                                                      15
Woolworths Limited Corporate Responsibility Report 2011

Responsible Retailing

       52%
                                                Animal welfare                         Our free-range pork range has           Genetically modified foods
                                                                                       increased significantly in the
                                                We are committed to continually        past 12 months. However, we are         Woolworths is absolutely
                                                improving animal welfare               constrained by supply as industry       committed to food quality
                                                standards in our supply chain          builds its supply capacity.             and safety. We also know that
                                                in line with expectations of                                                   our customers expect food
of fresh pork is estimated                      our customers.
                                                                                       Free-range pork is now available
                                                                                                                               labelling and advertising to
    to be produced in sow                       Woolworths’ approach to animal
                                                                                       in 513 (or 61%) of our Australian
                                                                                       Supermarkets. Primo brand
                                                                                                                               be clear and accurate.
      stall free conditions                     welfare is monitored through the       RSPCA Approved pork is stocked          Woolworths is committed to
      – to increase to 66%                      Woolworths Quality Assurance           in 240 stores in New South Wales,       meeting very high standards,
    by end-2012 and 94%                         (WQA) program. All vendors             Australian Capital Territory and        through:
              by end-2013.                      supplying private label products
                                                to Woolworths are required to
                                                                                       Victoria, the Plantagenet brand is      —— A standard policy of avoiding
                                                                                       stocked in 36 stores in Western            genetically modified (GM)
                                                participate in the program and         Australia and the Riverview                material in our private
                                                to meet our standards and are          Farms brand has now been                   label food range;
Fairtrade Australia and New                     audited by third-party                  added to 246 stores in South           —— Requiring suppliers to declare
Zealand awarded Woolworths                      certification bodies.                  Australia and Victoria.                    GM ingredients;
   Mordialloc, in Melbourne,                    Our animal welfare criteria            Free-range and barn-laid eggs           —— If GM ingredients are declared,
 the Most Fairtrade Friendly                    encompass whole-of-chain               continue to grow in sales in               working with suppliers to
 Major Supermarket Award,                       practices, including farm,             Australian Supermarkets,                   replace the GM ingredients;
                                                transport, saleyard and
    after it was nominated by                                                          but 59.8% of egg sales by volume
                                                                                                                               —— Contractually binding all
                                                processing, and set clear objectives   are still caged eggs. This was a
  our customers. Woolworths                     that require verification by trained                                              suppliers to adhere to agreed
                                                                                       reduction of 2.6% compared to
Balmain, in Sydney, was voted                   auditors in order for industries                                                  product specifications and not
                                                                                       2010. Our Select branded eggs
 Leichhardt’s Most Fairtrade                    to supply livestock products           are only free-range and barn-laid
                                                                                                                                  changing any ingredients
       Friendly Supermarket.                    to Woolworths. The criteria                                                       without our consent; and
                                                                                       and most caged eggs sales are
                                                currently cover poultry meat,          in Home Brand.                          —— Complying with all relevant
                                                eggs, pork, sheep and beef.                                                       national, state and territory
                                                We continue to work closely with                                                  food standards.
                                                                                       Fairtrade
                                                our trade partners, supply chain,                                              Woolworths also fully complies
                                                certification bodies and industry      The demand for Fairtrade                with the Food Standards Australia
                                                experts to help ensure that our        Certified™ products has steadily        New Zealand prescribed
             Fairtrade Certified™ products
               all carry the Fairtrade Label.   standards, procedures and              increased in recent years and our       mandatory labelling requirements
                                                practices are in keeping with          supermarkets range a number of          for GM foods. These standards
                                                the community’s expectations.          Fairtrade Certified™ products in        recognise the possibility of
                                                                                       tea, coffee and chocolate categories.   unintentional minor traces

16
of GM material to be present and                In New Zealand, 100% of the fresh               On-pack labelling of palm oil in all
therefore don’t require labelling
if there is an unintentional trace
                                                chicken, pork and lamb sold in
                                                Countdown stores is produced
                                                                                                Woolworths private label products
                                                                                                is progressing, and as of August          We are a
of less than 1% of an ingredient.               in New Zealand, whilst 90% of
                                                beef is produced locally.
                                                                                                2011, 46% of our private label
                                                                                                products that we know include
                                                                                                                                          member of
                                                                                                                                          the Roundtable
Under these standards, Woolworths
has had no private label products                                                               palm oil are labelled as containing
                                                                                                palm oil.
                                                                                                                                          on Sustainable
labelled with GM ingredients in                 Palm oil
the last year. However, to ensure                                                               Woolworths will be submitting its
                                                Woolworths is committed to
we are absolutely correct with
our labelling, we do not use the
                                                sourcing only Roundtable on
                                                Sustainable Palm Oil (RSPO)
                                                                                                first annual report to the RSPO
                                                                                                and will be declaring that an             Palm Oil.
term ‘GM-free’ or ‘genetically                                                                  estimated 4,400 tonnes of palm
                                                certified sustainable palm oil by
engineered-free’, because it is                                                                 oil was used in our private label
                                                2015 for all Woolworths private
not possible to give an absolute                                                                food and in-store bakery products.        The Consumer Goods Forum
                                                label products.
guarantee that there could never                                                                Certified Sustainable Palm Oil
                                                Woolworths has been conscious                                                             Woolworths is a member of
be such an unintentional, minor                                                                 will be sourced for use in our
                                                of concerns about the impact that                                                         The Consumer Goods Forum and
trace of GM material. We also                                                                   in-store bakeries from late 2011,
                                                the growing demand for palm oil                                                           a signatory to its Board resolution
acknowledge we are unable to                                                                    with an estimated 450 tonnes
                                                is having on rainforest areas in                                                          to achieve zero net deforestation
give an absolute guarantee that                                                                 being used each year.
                                                South-East Asia, West Africa                                                              through the consumer goods supply
all stock feed used in the supply
                                                                                                                                          chain by 2020 through sourcing
chain is completely GM free.                    and South America. Deforestation
                                                                                                                                          commodities like palm oil, soya, beef,
                                                in Indonesia is threatening the
                                                                                                                                          paper and board in a sustainable
                                                survival of many native species
Sustainable Sourcing                            and the draining of peatlands is
                                                                                                                                          fashion. The Consumer Goods Forum
                                                                                                                                          is a global industry network that brings
Local fresh produce                             contributing to climate change.
                                                                                                                                          together the CEOs of global retailers
                                                Palm oil is an efficient crop with                                                        and consumer brand owners with
Woolworths supports Australian
                                                significantly higher yields of oil per                                                    combined sales of EUR 2.1 trillion.
farmers by sourcing local fresh
                                                hectare than soya beans, rapeseed
produce. In our Australian
                                                or sunflowers. On 5% of the world’s
Supermarkets in 2011, 97.3%
                                                vegetable oil farmland it produces
of fresh fruit and vegetables by
                                                38% of output, more than any
weight (and 96.5% by value) was
                                                other oil crop, and any substitute
grown in Australia. Woolworths
                                                would need more land(1). Therefore,
only sells Australian produced
                                                banning the use of palm oil could
fresh meat, and sells 7% of the
                                                cause more deforestation as other
beef and 15% of the lamb
                                                oil crops have considerably less
produced in Australia.
                                                yield per hectare.

Growth for animal welfare products (Supermarkets Australia)

                                                       Percentage increase            Percentage increase           Percentage of total
                                                               of volumes                      of volumes        category of volumes in
                                                              in 2010 (%)                     in 2011 (%)                      2011 (%)
Free-range chicken (Macro meat)                                         66.8                              35.0                    12.8
Free-range chicken (Macro deli)                                        359.1                             212.9                     2.3
Free-range eggs                                                         51.5                              12.8                    27.6
Barn-laid eggs                                                         138.2                               8.7                    10.7
Organic Macro meat                                                      21.4                              36.4                     0.9*

All previous reporting has been based on the value of sales. Trends in volumes are reported this year.                                    (1)
* Percentage of category estimated from sales.                                                                                            The Economist, 24 June 2010.

                                                                                                                                                                                17
Woolworths Limited Corporate Responsibility Report 2011

Responsible Retailing

PEFC certified Select toilet tissue.          FSC certified outdoor furniture from the Patio by Jamie Durie range at BIG W.

Timber, pulp and paper                        Fish and seafood                               Council (MSC) standards (or            For farmed seafood, our aim is
                                                                                             certified to equivalent schemes        to have all the products certified
Woolworths is committed to                    Global consumption of fish is at               that comply with the United            sustainable by credible third party
purchasing timber, pulp and                   a record high. There has been                  Nations Food and Agriculture           certification schemes by 2015.
paper from legal, well managed                a seven-fold increase in global                Code of Conduct for Responsible        The certification schemes
or sustainable sources. We are                fishing volumes over the past                  Fisheries and International Social     recognised by Woolworths
progressively working through                 50 or so years – from 19 million               and Environmental Accreditation        at this time are:
our range of products and                     tonnes in 1950 to about                        and Labelling guidelines for
revising specifications for                   142 million tonnes in 2008(1).                                                        —— The Global GAP Aquaculture;
                                                                                             certification standards).
purchasing of these products.                 Demand for fish and seafood is                                                        —— The Global Aquaculture
                                                                                             We recognise that certification
Our Select facial tissues, toilet             increasing as our customers                                                              Alliance; and
                                                                                             takes time and resources and
tissue and kitchen towels are all             look for healthier options and,                we will work with our suppliers        —— The Aquaculture Stewardship
Programme for the Endorsement                 in response to this demand, we                 to achieve this goal.                     Council.
of Forest Certification (PEFC)                want to grow our seafood business.
                                                                                             While we are working towards           We may add other certification
certified. The pulp is sourced                Woolworths is a successful food                our long-term goal, we will:           schemes to this list based on
from Brazil, Chile, Canada and                retailer committed to providing                                                       advice from experts in aquaculture
Australia and the product is                                                                 —— Increase our existing MSC
                                              quality fresh food at affordable                                                      fisheries management.
made in Australia.                                                                              certified products available
                                              prices. We want to remain
                                                                                                in our stores;                      Our Policy is available on our
Our copy paper used internally is             successful in food retailing
                                                                                                                                    website www.woolworths.com.au/
certified by the Forest Stewardship           long into the future.                          —— Partner with experts in this
                                                                                                                                    sustainableseafood
Council (FSC) mixed source and                                                                  field to have our range assessed
                                              Our business prosperity depends
our catalogue paper in Australia                                                                for sustainability based on
                                              on the availability of a secure and
is PEFC certified.                            continued supply of quality fresh
                                                                                                objective and credible scientific
                                                                                                information and evidence;           Our aim is
                                                                                                                                    to ensure that
BIG W retails exclusively an                  food offer to our customers.
FSC-certified outdoor furniture                                                              —— Communicate the sustainability
                                              Sustainable seafood is part of this
brand, ‘Patio by Jamie Durie’.
Our home improvement business,
                                              equation and we want to be part
                                                                                                of our products to our
                                                                                                customers; and                      all our seafood
                                                                                                                                    products come
                                              of the solution in promoting
Masters, has a detailed wood                  sustainable seafood choices.                   —— Where the assessments show
procurement policy available
on www.masters.com.au,
                                              Our long-term goal is to have all
                                                                                                concerns with fisheries, assist
                                                                                                suppliers to develop improvement    from sustainable
                                                                                                                                    sources.
                                              our wild-caught seafood range
with its first store opened                                                                     plans and adopt more
                                              certified to Marine Stewardship
in September 2011.                                                                              sustainable fishing practices.

(1)
United Nations (UN) Food and
Agriculture Organisation (FAO)
State of the World’s Fisheries
and Aquaculture report, 2010.

18
Feature:                                                                             Feature:
any Masters products with FSC logo showing.                                          Select MSC products canned tuna, salmon and frozen fish range images
                                                                                     + MSC logo.

MSC certified Select tinned and frozen fish.

Quality Assurance,                             labels, care instructions,            —— Home Brand Lemon Flavoured
                                               environmental and country                Crumbed Fish 500g –
Product Safety,                                of origin claims are correct,            undeclared allergen;
Information and                                properly verified and described       —— Home Brand Fruity Rings 585g
Labelling                                      in a way that does not mislead our       – metal contamination; and
The Quality Assurance (QA)                     customers or the general public.
                                                                                     —— Almond Kernels 750g –
function is an integral part of                                                         salmonella detected.
the Woolworths Limited business                Product Recalls                       Apparel and General Merchandise
with over 70 staff engaged in
                                               Woolworths conducts consumer          recalls in 2011:
quality assurance activities in
                                               product safety recalls in line with   —— Dick Smith: DSE brand 7 inch
Australia, New Zealand and Asia.
                                               the Food Standards Australia and         portable DVD player model
Private label, fresh food and                  New Zealand (FSANZ) Product              numbers G7152 and G7153 –
exclusive brand products sold                  Recall Protocol and the Australian       internal lithium-ion rechargeable
in Australia and New Zealand                   Competition and Consumer                 battery may overheat;
are governed by a comprehensive                Commission (ACCC) Product
process which ensures we meet                                                        —— BIG W: Tinkers Pull-A-Long
                                               Recall Guidelines. Protecting our
all regulatory and Woolworths’                                                          Snake & Dog – dropping the
                                               customers from potential product
requirements.                                                                           product some parts may break
                                               safety hazards is very important
                                                                                        off into small pieces;
Assessments are completed                      to us. Many product recalls are
throughout the life of the product,            initiated by suppliers when they      —— BIG W: Tinkers Wooden Toy
which includes evaluation at                   become aware of safety issues or         Animal Car – dropping the
concept, pre-production, artwork,              by our quality assurance team            product some parts may break
production, pre-shipment and                   as a result of compliance checks         off into small pieces;
on-shelf stages.                               of products.                          —— BIG W: Pink Sugar Sundresses
Product packaging and labelling                Woolworths has comprehensive             – beading on dresses found to
for our own brands are assessed                processes for conducting recalls         have sharp points and edges;
at various stages of product                   in a speedy and efficient manner.        and
development to ensure compliance               Food and liquor recalls in 2011:      —— BIG W and Supermarkets:
with regulatory requirements.                                                           Abode and Home Collection
                                               —— Home Brand Frozen Mini
Products are assessed to ensure                                                         Oscillating Fan Heater –
                                                  Vegetable Spring Rolls 12PK
all required warnings, age grade                                                        manufacturing assembly fault.
                                                  600g – undeclared allergen;
recommendations, measurements,

                                                                                                                                                        19
Woolworths Limited Corporate Responsibility Report 2011

Our
Community
Woolworths Limited has the simple philosophy
of demonstrating corporate leadership by doing
the right thing. Our community investment aims
to create a positive impact for both the community
and the business.

     $62.3m
     was contributed to
     the community in 2011.

20
$13.5m
Our Community                        Our Programs                         Working with schools and
Investment Strategy                  Fresh Food Rescue
                                                                          Indigenous kids in the area, the
                                                                          program encourages attendance
Target                               Focus area: Sustainability/
                                                                          through live link-ups with some
                                                                          of the Australian Rules football
We have a target of the equivalent   Health and Wellbeing
                                                                          players in Melbourne. The
                                                                                                                   cash.
of 1% of pre-tax profits going       Woolworths has a proud record

                                                                                                                   $25.0m
                                                                          curriculum was developed by our
towards supporting our               of food donation in partnership      community partner and endorsed
communities. Our businesses          with food relief organisations in    by the Northern Territory
achieve this by supporting           Australia and New Zealand.           Department of Education. As
organisations, programs and          We work with many food relief        well as financial support of the
initiatives in our core focus        charities that collect food from     pilot, Dick Smith leveraged its          leverage.
areas in a manner that is relevant   our stores and provide meals for     relationship with suppliers to

                                                                                                                   $6.7m
to their business objectives,        people in need in our communities.   organise interactive white boards
strengths and skills.                Organisations that collect from      for the participating schools.
                                     our stores include Foodbank,
Focus of our investment              OzHarvest, SecondBite, FareShare,
                                                                          Fresh Food Future
                                     Churchlands, House of Hope and
Our initiatives are governed         The Salvation Army.                  Focus area: Rural and Regional
                                                                                                                   in kind.
by four priority focus areas.

                                                                                                                   $17.1m
                                                                          Communities/ Sustainability
Each of our businesses will                                               and Environment
address these focus areas in
                                     Fresh Food Kids Hospital
ways that relate to their            Appeal                               The United Nations Food and
                                                                          Agriculture Organisation (UNFAO)
customers and key stakeholders.      Focus area: Health and Wellbeing     estimates that feeding a global
The priority focus areas are:
                                     Thanks to the generosity of our      population that is projected to
                                                                                                                   in staff and
—— Sustainability and environment;   customers and commitment of          reach 9.1 billion in 2050 would          management time.
—— Health and wellbeing;             our staff, $9,063,176 was raised     require a 70% increase in food
—— Education and employment;         for the Woolworths Fresh Food        production. The UNFAO
   and                               Kids Hospital Appeal in 2011.        projections indicate that 90%
                                     These funds will help children’s     of the gains in production needed
—— Rural and regional
                                     hospitals and children’s wards       will be achieved by increasing yield
   communities.
                                     around Australia.                    growth and cropping intensity
                                                                          on existing farmlands rather than
Evaluating and reporting             Technologies in the                  by increasing the amount of land
our community investment             Territory                            brought under agricultural
                                                                          production(1).
Woolworths Limited is an active
                                     Focus area: Education and            The challenge of boosting crop
member of the London Benchmark
                                     Employment                           yields is made more pressing by
Group (LBG). The LBG provides
a process for measuring,             Through its partnership with         climate change. In Australia,
benchmarking and reporting our       Richmond Football Club’s             there is the additional concern of
investments, with transparency       Tigers in the Community              the ageing of the farm population        Grab a piece of fruit and donate to
in Australia and New Zealand.        program, Dick Smith supported        which has been evident in official       Woolworths Fresh Food Kids Hospital Appeal.
                                     an education pilot Technologies      statistics in Australia since 1981(2).
For more information, go to
                                     in the Territory. The pilot aimed    Our Fresh Food Future program
www.lbg-australia.com
                                     to increase attainment levels in     aims to contribute to developing
                                     six schools in Alice Springs.

A snapshot of the causes we supported in 2011
Fresh Food Kids Hospital Appeal                              $9,063,176
Fresh Food Future Program                                    $2,282,837   (1)
                                                                          How to Feed the World in 2050 was the
BIG W Big Heart Appeal                                       $1,331,764   theme of the UN Food and Agriculture
Employee Matching Award Scheme                                  $86,796   Organisation’s (FAO) expert forum in     Muirfield High School taking part in
                                                                          October 2009.                            the Art4Agriculture Archibull Prize.
Head Office – Charity of the Month                            $648,958
                                                                          (2)
Stock donations – food and emergency relief                  $2,250,201   Garnaut & Helali 1999.

                                                                                                                                                           21
Woolworths Limited Corporate Responsibility Report 2011

Our Community

solutions for these challenges and            Foundations for the Future                and the carbon footprint                    of NSW, every year Woolworths
it reaffirms our commitment to                We have commissioned a                    of farming businesses.                      has offered 30 young Australians
investing in the future of rural              comprehensive study in food                                                           the opportunity to attend the
                                                                                        Sustainable fisheries
Australia and food security.                  security and future of food                                                           Woolworths Agricultural
                                                                                        In 2011, we invested and                    Business Scholarship program.
Fresh Food Future draws together              production in Australia. The
                                                                                        committed to investing a total of           In 2011, $140,000 was invested
a number of initiatives to address            study will investigate major
                                                                                        $110,000 in partnerships focusing           in this program.
two main objectives:                          impacts on food production and
                                                                                        on promoting sustainable fishing.
—— The advancement of                         help us understand the overall                                                        The 12-day course at the
                                                                                        Woolworths partnered with
   agricultural sustainability; and           policy landscape and the competing                                                    Woolworths support office in
                                                                                        Sustainable Fisheries Partnership
                                              interests which impact the food                                                       north-west Sydney gives
—— Building leadership capacity                                                         Foundation, a US-based not-for-
                                              production, future demands and                                                        participants valuable insights
   in the sector.                                                                       profit promoting sustainable
                                              consumer preferences, quality,                                                        into key issues and opportunities
Fresh Food Future has four                                                              fishing and Taronga Conservation
                                              supply availability and prices.                                                       on the business of agriculture from
program areas which help direct                                                         Society’s Fish4Life campaign to
                                                                                                                                    academics, Woolworths’ business
our initiatives and investment.               Powering Productivity                     raise community and consumer
                                                                                                                                    leaders and other industry experts.
These are:                                    In partnership with Landcare              awareness with regard to
                                              Australia, Woolworths has invested        sustainable seafood consumption.            Investing in Youth Studentship
—— Foundations for the Future –
                                              over $6.5 million to support over         We also provided a grant of                 program
   includes research to support
                                              150 projects around Australia             $25,000 to Northern Prawn                   Woolworths funded $38,000
   sound policy development.
                                              since 2007. Landcare oversees the         Fishery Industry group                      for one participant in this program
—— Powering Productivity – focuses                                                      to help them achieve Marine
                                              progress of the projects and works                                                    run by the Rural Industries
   on adoption of sustainable                                                           Stewardship Council certification.
                                              to communicate the outcomes                                                           Research and Development
   agriculture practices and                                                            For more information, refer to
                                              with the broader industry.                                                            Corporation. The studentship
   increasing production capacity.                                                      the Fish and Seafood section in             offers, the undergraduate student
—— Leaders for the Future – focuses           Sustainable horticulture                  Responsible Retailing on page 18.           financial support and a mentor
   on supporting training, capacity           projects
                                                                                        Leaders for the Future                      who can provide valuable career
   building and leadership in the             In 2011, we committed a total                                                         advice. Under the program we
   rural sector.                              investment of $724,000 supporting         Woolworths Agricultural                     offer relevant industry placements
—— Consumer Connections –                     sustainable agriculture in the            Business Scholarships                       to gain experience in the student’s
   provides our customers the                 horticulture sector across Australia.     Since 2007, in partnership with             chosen field of study.
   information they need to make              The projects funded improved              the University of Western Sydney
   more sustainable choices.                  water use, nutrient management            and the Royal Agriculture Society

Cassia Ferguson, from Mudgee, was one of 30 young people to take part                 Outgoing CEO Michael Luscombe presents a cheque
in the Woolworths Agricultural Business Scholarship Program.                          for $15.8m for the Salvation Army’s Flood Appeal.

22
2,247t
                                                                                                                                              of food, equivalent
                                                                                                                                              to 2,027,900 meals,
Across New Zealand (left) and Australia (centre) our operations were affected by extreme weather events and earthquakes.                      donated to food relief
In the aftermath of the earthquake, Auckland based staff don Canterbury colours in solidarity with those people affected (right).             charity partners.
Art4Agriculture Archibull Prize                management skills and techniques                supermarket customers and team
                                                                                                                                              During 2011, Australia and New
Art4Agriculture provides                       in the primary production sector.               members to the Pike River Miners’
                                                                                                                                              Zealand were struck by significant
secondary school students with                 These scholarships give Australian              Trust Fund. The funds raised
                                                                                                                                              natural disasters, including flooding
agricultural and environmental                 citizens the opportunity to study               supported the families of the
                                                                                                                                              in Queensland and Victoria,
awareness through art, creativity              farming practices in New Zealand,               miners lost at the Pike River
                                                                                                                                              Cyclone Yasi in Queensland and
and teamwork. Woolworths has                   Europe, Asia and the Americas                   coal mine.
                                                                                                                                              earthquakes in Christchurch.
been a sponsor of the program                  and those countries best suited                 In Christchurch’s time of need                 These events provided challenges
for the past two years, providing              to the scholar.                                 following the series of devastating            to the communities we operate
$15,000 in funding in 2011.                    Consumer Connections                            earthquakes, Countdown helped                  in, our customers, employees
                                                                                               raise funds for the Salvation Army             and suppliers, but also led to an
Primary Industry Centre for                    Our partnership with
                                                                                               to support those communities                   outpouring of support from the
Science Education (PICSE)                      Art4Agriculture and Taronga
                                                                                               affected. Customers and team                   public, businesses and government.
In partnership with PICSE we                   Conservation Society’s Fish4Life
                                                                                               members gave generously and
promote agricultural sciences as               campaign are designed to help                                                                  In Australia, our staff and
                                                                                               over NZ$735,000 was raised.
part of the secondary school                   increase consumer awareness                                                                    customers, through BIG W,
                                                                                               Progressive Enterprises also
curriculum. We provided $68,000                about sustainable food and                                                                     Dick Smith and Woolworths
                                                                                               contributed NZ$100,000 towards
in support of this program. PICSE              agriculture. We will continue                                                                  Supermarkets, donated
                                                                                               the Salvation Army Canterbury
judged and awarded the Science                 to develop more targeted                                                                       $10,377,916. Woolworths’
                                                                                               Earthquake Appeal.
Investigation Awards during                    partnerships and campaigns                                                                     own contribution was a further
September 2011.                                in the coming years                                                                            $7,900,000, with an additional
                                                                                               Overseas emergency relief                      $250,000 donated by ALH.
Australian Rural Leadership
                                               Emergency Relief for                            and general aid                                A total contribution of $18,527,916
Foundation                                                                                                                                    was donated to the Salvation Army
                                               Natural Disasters                               Oxfam Australia is our official
                                                                                                                                              flood appeal to families in need of
Woolworths has been a long-term                                                                partner in the case of overseas
supporter of the Australian Rural              Australian emergency relief                                                                    immediate financial assistance,
                                                                                               natural disasters. Oxfam Australia
Leadership Foundation, funding                                                                                                                financial counselling and long-term
                                               The Salvation Army is our official              has the experience and knowledge
one scholarship annually. In 2011,                                                                                                            community rebuilding projects.
                                               partner in the case of domestic                 required to run community
we provided one scholarship to the                                                             programs in developing countries,              Our customers and staff in New
value of $55,000. The Foundation               natural disasters. During a severe
                                                                                               including an understanding of the              Zealand and Australia, through
is committed to enhancing the                  domestic disaster, such as
                                                                                               political situations and the ability           Supermarkets and Dick Smith,
nation’s social, economic and                  bushfires and floods, our stores
                                                                                               to ensure funds are monitored                  raised over NZ$1.48 million for
environmental viability and                    also mobilise in-kind support and
                                                                                               and go to the intended recipients.             the Salvation Army Canterbury
resilience. To this end, it provides           resources for their communities.
                                                                                               During 2011, $14,587 was donated               Earthquake Appeal.
leadership programs for individuals,           Woolworths Limited businesses
                                               will only channel donations                     to Oxfam.                                      As a business we hope that we never
businesses, communities and
                                               through the Company’s appeals.                                                                 face these situations again, but nature
organisations that have a
                                                                                                                                              is unpredictable. We will remain
commitment to rural, regional                                                                  Impact of emergency relief                     prepared to implement our programs,
and remote Australia.                          New Zealand emergency                           on community investment ($m)                   whether it is providing an avenue
Nuffield Australia Farming
                                               relief                                                            $ (million)
                                                                                                                                              for donations or ensuring our stores
                                                                                                10                   36.30                    are stocked to meet the needs of our
Scholarships                                   In the face of a series of natural
                                               disasters and the tragic events                  10                   36.37                    customers in affected areas.
Woolworths is a Nuffield sponsor
and we funded one Scholarship                  of the Pike River Mine disaster,                 11                      40.83
in 2011 to the value of $52,800.               the team at Progressive
                                                                                                11                                   62.31
Nuffield Australia provides a                  Enterprises reacted quickly
scholarship scheme with the                    to the needs of the community.                        Total (Excl Emergency Relief)       98
objective to increase practical                Over NZ$235,000 was raised                            Total
farming knowledge and                          through donations from

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