Countdown Sustainability Report 2019

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Countdown Sustainability Report 2019
Countdown
Sustainability
Report 2019
Countdown Sustainability Report 2019
CONTENTS

Introduction from Natalie Davis...............................................................Page 2
Countdown’s 2020 commitments.............................................................Page 4
Performance Highlights.............................................................................Page 6
People..........................................................................................................Page 8
Planet.........................................................................................................Page 24
Prosperity................................................................................................ Page 40

ABOUT THIS REPORT:

This is Countdown’s fifth New Zealand                        and in 2017 we launched our new                             Report has been independently
Sustainability Report. Statistics are for                    Corporate Responsibility Strategy 2020.                     reviewed; other data and statements
the year ended 30 June 2019, unless                                                                                      have been internally reviewed.
                                                             The purpose of this report is to set
otherwise specified.
                                                             out our achievements and challenges                         For the full 2019 Woolworths
Countdown has had a strong                                   for our New Zealand customers and                           Sustainability Report please visit
sustainability plan in place since 2007,                     stakeholders. Data included in the                          www.woolworthsgroup.com.au
                                                             Woolworths Group Sustainability
Countdown Sustainability Report 2019
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                                                                                                                                                                               HIGHLIGHTS              2    PEOPLE                     3      PLANET                        4     PROSPERITY          3

    Welcome to Countdown’s                                                                                                                         We’re here to make a
    2019 Sustainability Report.                                                                                                                    difference to Kiwis’ lives
    We’re serious about sustainability because       or others might need a bit of help, but also to   In early 2019, the Colmar Brunton           Tēnā koutou, tēnā koutou, tēnā                 We’ve listened, and are strongly committed           of the solutions for issues like the climate
    with almost three million New Zealanders         understand how to support their teammates         Corporate Reputation Index showed that      koutou katoa.                                  to doing what we can, wherever we can, to            emergency are shared. We need to move
    visiting our 180 stores each week, doing the     when they need it most.                           our Countdown business had moved to                                                        remove it.                                           quickly and make changes at scale and we
                                                                                                                                                   It’s my great pleasure to share with you
    right thing for the environment, our people                                                        11th place out of 50 of New Zealand’s top                                                                                                       recognise that to do that, we need to play
                                                     We’re continuing to make sure we’re                                                           Countdown’s work over the last year            I’d like to thank our entire team of 18,400
    and the communities we operate in, is a huge                                                       corporates - up from 43rd in 2015. I’m                                                                                                          our part by working with other businesses
                                                     providing working environments where our                                                      towards creating a more sustainable future     Kiwis for their commitment to our
    part of our commitment to making Kiwis’                                                            immensely proud that our customers are                                                                                                          to make a collective change. There is so
                                                     team can bring their whole selves to work                                                     for Aotearoa.                                  communities and to our environment.
    lives a little better every day.                                                                   seeing our changes for the better, and                                                                                                          much at stake and the impacts if we don’t
                                                     - regardless of their age, gender, religion,                                                                                                 With friends and family across Aotearoa,
                                                                                                       at the forefront of this are our greatest   I am particularly proud of what we have                                                             take action are undeniable.
    I am privileged to lead a team of 18,400         ethnicity or sexual orientation - and were                                                                                                   it matters to all of us that we work for a
                                                                                                       ambassadors – our team.                     done to raise the profile of health and
    Kiwis who care deeply for each other and         immensely proud to gain our Rainbow Tick                                                                                                     business that’s committed to playing an              We are proud of our achievements to date,
                                                                                                                                                   safety in our business. Keeping our team,
    their communities.                               certification in late 2018.                       There is much more to do, and we look                                                      active role in keeping our country beautiful         but we know this work is ongoing and will
                                                                                                                                                   our visitors and our customers safe is an
                                                                                                       forward to continuing to partner with our                                                  for future generations.                              require the focus and efforts of many to
    This year, we have continued to increase our     We are delivering programmes and policies                                                     absolute priority and we are working hard
                                                                                                       customers, our suppliers, and community                                                                                                         protect this place we call home.
    focus on safety in the business, including our   that make Countdown a great place to work                                                     to embed a strong safety culture. This work    We remain focused on our response to the
                                                                                                       organisations across NZ, to contribute
    first business-wide ‘Stop for Safety’ huddles,   and to develop skills and careers. Our Store                                                  is underpinned by care and a commitment        climate crisis. We’re making our stores more         Nāu te rourou, nāku te rourou,
                                                                                                       to building a more sustainable future for
    where our teams discussed how they could         Manager in Training programme creates                                                         to promote the wellbeing of everyone who       energy efficient and cutting refrigeration           ka ora ai te iwi.
                                                                                                       Aotearoa. Please enjoy Countdown’s 2019
    contribute to building a safer workplace.        great leaders within our business, like our                                                   works for, or interacts with our business.     gas emissions by introducing new CO2
                                                                                                       Sustainability Report.
    We also provided our team with simple tools      new Countdown Huntly Store Manager,                                                                                                          based systems. We are seeing progress
                                                                                                                                                   Removing single use plastic bags from our
    they could use, to reach out to those who        Jaqueline Jones. Our graduate programme                                                                                                      in making our logistics operations more
                                                                                                                                                   checkouts and online service, two and a half
    may be suffering from mental health issues       attracts fantastic young talent like Annabelle                                                                                               efficient, and are of course continuing
                                                                                                                                                   months ahead of schedule and nine months                                                            Kiri Hannifin
    through our ‘I am here’ programme.               Cole, and our Workplace Flexibility Policy                                                                                                   with our work to divert food waste to
                                                                                                                                                   ahead of legislation, was an outstanding                                                            General Manager Corporate Affairs, Safety
                                                     encourages our team to work around their          Natalie Davis                                                                              landfill through food rescue and diversion
    Hundreds of our team have already taken the                                                                                                    achievement. Kiwis embraced the change                                                              and Sustainability
                                                     busy lives.                                       Managing Director                                                                          programmes in 100 per cent of our stores.
    opportunity to not only recognise when they                                                                                                    wholeheartedly, but have been clear that
                                                                                                                                                   there’s still much more to be done to tackle   But there is still so much more to do.
                                                                                                                                                   the unnecessary proliferation of plastic.      We are a small country. Many, if not all,
Countdown Sustainability Report 2019
4       COUNTDOWN SUSTAINABILITY REPORT 2019

                                                PEOPLE: Encouraging                                    PLANET: For a healthy                               PROSPERITY: Founded
                                                diversity                                              Aotearoa New Zealand                                on trusted relationships

    Countdown’s

    2020
                                                      Ensuring gender equity                                 Moving to a                                           Working with our

                                                  1
                                                                                                             circular economy                                      business partners

                                                                                                        9                                                   15
                                                      At least 40 per cent of executive and
                                                      senior manager positions to be held
                                                      by women.                                              Towards zero food waste                               We will engage fairly and equitably with our
                                                                                                             going to landfill.                                    suppliers, making fact-based decisions and

                                                  2
                                                                                                                                                                   seeking regular feedback directly and through
                                                      No salary wage gap between male and female

                                                                                                       10
                                                                                                                                                                   independent supplier surveys .

                                                                                                                                                            16
                                                      employees of equivalent positions on a per-
                                                                                                             Improve the recyclability of our own

    Commitments
                                                      hour rate at all levels of the company, with a
                                                      step-change improvement in closing any gaps            brand packaging and contribute to the                 We will focus on a best practice
                                                      by the end of FY17.                                    circular economy.                                     compliance system according to the
                                                                                                                                                                   Global Compliance Programme. We will
                                                                                                                                                                   collaborate with peak organisations to
                                                                                                                                                                   improve workers lives.

                                                      Embracing our diversity                                Source environmentally

                                                  3
    In 2017 we launched our Corporate
                                                      100 per cent of those responsible for hiring           sustainable commodities
    Responsibility Strategy 2020, which                                                                                                                            Giving back to the

                                                                                                       11
                                                      new team members to have completed

    brings focus, resources and energy to             unconscious bias training.                             Source key raw materials and commodities              communities in which
                                                                                                             to an independent standard by 2020.

                                                  4
                                                                                                                                                                   we operate
    Countdown’s sustainability agenda.                                                                       We will raise awareness of sustainably

                                                                                                                                                            17
                                                      Continue the focus on driving cultural
                                                                                                             sourced products.

                                                                                                       12
                                                      diversity, with a commitment that by 2020
    We have assigned targets under the                the Countdown team will truly reflect the
                                                                                                                                                                   We will invest the equivalent of one per
                                                                                                                                                                   cent of a three year rolling average of total
    pillars of People, Planet and Prosperity.         communities we serve.                                  Achieve net zero supply chain deforestation
                                                                                                             for ‘high impact’ commodities in our own
                                                                                                                                                                   Countdown Earnings Before Interest and
                                                                                                                                                                   Tax (EBIT) into community partnerships
    These provide a framework for                                                                            brand products, such as palm oil, timber,
                                                                                                                                                                   and programmes.
                                                                                                             pulp and paper, and packaging.

                                                                                                                                                            18
    our engagement with customers,                    A focus on growing our team

                                                  5
                                                                                                                                                                   We will publicly report social impact
    communities, suppliers and our team.              We will develop the careers of the                                                                           to quantify the positive change we are
    They also set out our commitment to               Countdown team with a focus on youth.                  Action on                                             creating with a focus on health, economic
                                                                                                                                                                   development and emergency relief.
                                                                                                             emissions

                                                                                                       13
    minimise the environmental impact of

                                                  6
    our operations.                                   We will continue to develop employment
                                                      policies appropriate to our New Zealand team
                                                                                                             Reduce Countdown’s carbon emissions to
                                                                                                             10 per cent below 2015 levels.
                                                      to provide a supportive work environment.                                                                    Creating shared value
                                                                                                                                                                   with our customers

                                                                                                       14                                                   19
                                                                                                             Innovate with natural refrigerants and
                                                                                                             reduce refrigerant leakage in our stores              We will achieve leading customer
                                                      Creating opportunities for all

                                                  7
                                                                                                             by 15 per cent of CO2 equivalent below                satisfaction scores.
                                                                                                             2015 levels.

                                                                                                                                                            20
                                                      We are committed to maintaining a workplace
                                                      that safeguards the health and wellbeing of
                                                      our people, customers and visitors.                                                                          We will support and inform our customers

                                                  8
                                                                                                                                                                   to help them to make healthier choices.

                                                      Achieve Rainbow Tick certification
                                                      in New Zealand, demonstrating our
                                                      commitment to LGBTI inclusion.
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    Sustainability
    Report
    Snapshot 2019

    + 18,400 team members                         + Increased the number       + Achieved Rainbow                    + Bought 21 million kilos
                                                    of women in senior           Tick accreditation                    of meat and 54 million
    + Reduced carbon                                leadership roles to 35%                                            free-range eggs from
         emissions by 13.9%                                                    + Reduced refrigerant                   Kiwi farmers
                                                  + Donated $6.9 million of      leakage by 28%
    + 338 million single-use                        food through Countdown                                           + Removed a further 8.8
         plastic carrier bags                       Food Rescue                + Launched New Zealand’s                tonnes of sugar and 7.4
         gone from Aotearoa’s                                                    first Be Accessible                   tonnes of salt from our
         waste stream                             + Provided $2.2 million in     accredited supermarket                own brand products
                                                    community donations
    1   Refer to appendix for GRI Index.
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                                                    HIGHLIGHTS    2   PEOPLE   3   PLANET   4   PROSPERITY   9

    People –
    encouraging
    diversity
    We employ an incredibly diverse
    team of more than 18,400 Kiwis
    across our stores, distribution
    centres, meat and seafood plants
    and support offices. Our people
    are a reflection of Aotearoa and we
    believe that our diversity - whether
    that’s age, gender, religion, race
    or sexual orientation - should be
    nurtured, grown and celebrated.

    Team                         Rainbow Tick
    members                      Accredited

    18,400
    Women in                     Team
    leadership roles             under 25

    35%                          5,979
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                                                                                                                                                                         HIGHLIGHTS                2    PEOPLE                   3    PLANET                4      PROSPERITY        11

     Working towards                                                                                                                      Store training programme
                                                                                                                                          delivers female leaders                                                                                     “I really enjoy

     gender equality                                                                                                                      Our most recently appointed Store
                                                                                                                                          Manager, Jacqueline Jones, comes from
                                                                                                                                          a family of strong women and her journey
                                                                                                                                                                                                                                                       mentoring other
                                                                                                                                                                                                                                                       female store
                                                                                                                                                                                                                                                       managers and I
                                                                                                                                          to her management is largely due to
     Achieving gender equality across our team and embracing our                                                                          her grandmother.
                                                                                                                                                                                                                                                       always encourage
     diversity is not only the right thing to do, it’s also hugely beneficial                                                                                                                                                                          women to take
                                                                                                                                          “She had to fight hard to get where she
     to our business and the decisions we make each day.                                                                                  got to. Listening to what she had to give up                                                                 the next step and
                                                                                                                                          because she was a woman made me realise                                                                      take risks.”
                                                                                                                                          how much fairness was not a part of her                                                                       Tanya Lawrence, Countdown
                                                                                                                                          life. It made me want to strive to be seen                                                                    Cambridge Store Manager
                                                                                                                                          and treated as an equal.”
                                                                                                                                          Jacqueline is proud to be leading the
                                                                                                                                          way for other women with leadership
                                                                                                                                          aspirations throughout our business. After
                                                                                                                                          completing the Women in Leadership and
                                                                                                                                          Store Manager in Training programmes,
                                                                                                                                          she is now a few months into a new role
                                                                                                                                          managing Countdown Huntly with a team of
                                                                                                                                          91 people.
                                                                                               “Growing someone’s                                                                                     Challenging biases in                    helped us lay foundations
                                                                                                                                          As a senior female leader, Jaqueline says
                                                                                                confidence and helping                                                                                succession planning                      for a more diverse way of
                                                                                                                                          she’s keen to show women who may be
                                                                                                them to become who                        holding themselves back out of fear or                                                               thinking and leading. By
                                                                                                they aspire to be is not                  uncertainty that taking on a leadership role                We have also started to                  challenging our own biases in
                                                                                                only very rewarding,                      is entirely possible. “I can use the tools that I           challenge perceptions and                supply chain, 50 per cent of
                                                                                                                                          am lucky enough to be given in my role and
                                                                                                but is also what I think                  use them to guide and develop my team,”
                                                                                                                                                                                                      biases in our talent and                 the typically male-dominated
                                                                                                should be a key part of                   she says.                                                   succession planning processes            senior distribution centre
                                                                                                any leader’s role.”                       Supporting other women into leadership
                                                                                                                                                                                                      and decisions. The Inclusive             operational leadership roles
                                                                                                  Jacqueline Jones, Countdown             roles is also a passion of Countdown                        Leadership and Whole                     are now held by women.
                                                                                                  Huntly Store Manager                    Cambridge Store Manager Tanya Lawrence,                     Brained Thinking workshops
                                                                                                                                          who was awarded Countdown’s Store                           that were delivered across
                                                                                                                                          Manager of the Year title for the second
                                                                                                                                          time in 2018. “I really enjoy mentoring                     Store Operations and Supply
                                                                                                                                          other female store managers and I always                    Chain late last year, have
                                             Women in leadership                                                                          encourage women to take the next step and
                                                                                                                                          take risks - assuring them that they don’t
                                             Women make up 56 per cent of                    After canvassing our team, self-confidence   need to know everything to do the next
             COMMITMENT 1                    Countdown’s total team and hold roles           was raised as a significant hurdle as well   role. It’s so rewarding seeing how these
             At least 40 per cent of         right across the spectrum of our company.       as perceptions of potential gender bias      women have progressed in their careers
             executive and senior                                                                                                                                                             Our salary wage gap is currently 1.46 per
                                             We are committed to attracting and              for certain roles, feelings of imbalance     over the years, knowing that I have been
             manager positions to                                                                                                                                                             cent. This continues to be considerably
             be held by women.               retaining female talent at all levels whether   between work and home commitments,           involved in helping them to achieve their           lower than New Zealand’s national gender                     COMMITMENT 2
                                             that’s as part of our graduate programme,       and concerns around support and              dreams,” says Tanya.                                pay gap, which in June 2019 was 9.3 per cent                 No salary wage gap
                                             working in our stores, or in our senior         development opportunities.                                                                                                                                    between male and
                                                                                                                                                                                              according to Statistics New Zealand.                         female employees of
                                             leadership team.
                                                                                             In response, we developed a Women            Closing the gap                                     We are committed to reducing this gap to
                                                                                                                                                                                                                                                           equivalent positions on
                                                                                                                                                                                                                                                           a per-hour rate at all
                                             Over the last year, the number of women         in Leadership programme, which is                                                                zero. Not only is this the right thing to do,                levels of the company,
                                             at General Manager level and above has          designed to help women in our business       At Countdown, we’re committed to                                                                                 with a step-change
                                                                                                                                                                                              but this continuous commitment to pay                        improvement in closing
                                             increased from 50 per cent in FY18 to 63        feel empowered and supported in their        providing an inclusive and diverse                  parity has a positive impact on motivating                   any gaps by the end
                                             per cent. The overall number of senior          development and career goals. More           workplace, where our team is treated fairly,                                                                     of FY17.
                                                                                                                                                                                              and retaining our current team, and makes
                                             roles held by women in our business has         than 300 women across our stores and         and that extends to being paid fairly for           Countdown an attractive place to work for
                                             increased from 32.7 per cent in FY18 to 35      supply chain are already benefiting from     the work they do. We believe that team              people who may be looking to join our team.
                                             per cent in FY19.                               the series of programme workshops,           members who have the same skills and role
                                                                                             designed to develop leadership capability    shouldn’t be paid any differently because of
                                             Over the last year, we’ve also been working
                                                                                             and confidence, and also provide a great     their gender.
                                             to understand the barriers women are
                                                                                             opportunity to network.
                                             facing in our leadership pipeline.
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     Celebrating
     our diversity
     We’re one of the largest employers in the country and we’re fortunate that our
     team reflects the broad range of ethnicities, cultures and backgrounds that make
     up New Zealand’s population. By working to celebrate our differences and seeing
     them as one of our greatest assets, we can create better experiences for our
     team, our customers and our communities every day.

                                                                                                                                      Inclusive workplaces                            inevitable that young women may face
                                                                                                                                                                                      these issues as they start their careers.
                                                                                                                                      This year we rolled out our inclusive           The New Zealand Young Women’s Festival
                                                                                                                                      leadership programme, aimed at                  Wāhine Kākano was established to give
                                                                                                                                      addressing any unconscious biases our           women aged 16-22 the tools they need to
                                                                                                                                      hiring teams may have - something that          navigate their first jobs, tackle issues they
                                                                                                                                      can have a big impact on the diversity of       may face and empower women to stand up
                                          Our store teams are a reflection of            Over the last year, we’ve supported events
             COMMITMENT 3                                                                                                             our teams. To date, 377 team members            for their rights.                                  COMMITMENT 4
                                          the communities we serve. We are               that celebrate the wide range of cultures
             100 per cent of those                                                                                                    have taken part in the programme. While                                                            Continue the focus
                                          incredibly proud of our diversity and take     and ethnicities that call New Zealand                                                        As an employer that supports women in
             responsible for hiring                                                                                                                                                                                                      on driving cultural
             new team members             opportunities to celebrate the richness it     home. Importantly, this has also given       we continue to roll out this training to new    the workplace, Countdown was proud                 diversity, with a
             to have completed            brings. Diversity not only helps us make       our teams an opportunity to share more       leaders, we’ll also be looking at how well it   to once again sponsor Wāhine Kākano                commitment that by
             unconscious bias                                                                                                                                                                                                            2020 the Countdown
             training.                    better business decisions but it also brings   about themselves, their traditions and       has been embedded across our business           for 2019. Countdown’s General Manager              team will truly reflect
                                          new ideas and opportunities, and fosters       their culture. These events have included    and what difference it is making to             Corporate Affairs, Safety and Sustainability,      the communities we
                                                                                                                                      hiring decisions.                                                                                  serve.
                                          respectful and inclusive workplaces. For       Samoan Language Week, Maori Language                                                         Kiri Hannifin, was invited to speak on a
                                          our customers, it also makes our stores a      Week, the end of Ramadan, Diwali and                                                         panel that focused on sustainability and the
                                          great place to shop.                           Chinese New Year.                            Wāhine Kākano 2019                              future of work. Throughout the festival,
                                                                                                                                                                                      topics like bias in the workplace, closing
                                                                                                                                      With issues such as gender inequality,          New Zealand’s gender and ethnic pay gaps,
                                                                                                                                      sexual harassment and discrimination still      and navigating life after finishing school and
                                                                                                                                      prevalent in a number of workplaces, it’s       university were also covered.
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     Promoting the use                           further embed Māori language, culture and    “It’s great to be helping to encourage
                                                 values across our business – starting with   more use of te reo in Aotearoa - it’s
     of te reo Māori in                          our support office.                          such a beautiful language that deserves
     our business                                We have been increasingly weaving te
                                                                                              our respect and protection. In my role I
                                                                                              interact with a wide range of stakeholders
                                                 reo Māori into store and workplace
     The Māori language is a taonga that                                                      throughout New Zealand and regularly use
                                                 communications. We also introduced
     Countdown is proud to help protect by                                                    Māori greetings and words. Taking part in
                                                 Te Reo classes for a number of our support
     supporting its use across our business.                                                  these sessions has further ensured that I’m
                                                 office team. Led by experienced tutor
                                                                                              not just using them correctly, but also have
     Earlier this year, the Government pledged   Apimaera Thomas, attendees also learn
                                                                                              a deeper understanding of their meaning.”
     to ensure one million people in Aotearoa    about tikanga Māori. The weekly classes
                                                                                              says sustainability team member,
     can speak basic te reo Māori by 2040.       have been a hit with those taking part,
                                                                                              Charlotte Haycock.
     While the majority of our stores already    allowing team to further hone their skills
     feature bilingual signage; we wanted to     and nail the basics like pronunciation and
                                                 greetings. Ka rawe!

                                                                                                                                                                                                       “ Some New Zealanders believe that people
                                                                                                                                                                                                         speaking other languages are somehow
                                                                                                                                                                                                         less important. We wanted to change
                                                                                                                                                                                                         that. Through the bag, we’re helping to
                                                                                                                                                                                                         make using different languages a common
                                                                                                                                                                                                         occurrence when meeting new people.”
                                                                                                                                                                                                         Te Ahi group spokesperson, Jordan Smith

                                                 “Te reo Māori is more than just a language, it is
                                                  understanding a way of life. When learning te reo,                                         Student-designed World                           The World Shopper bag, designed                 Countdown helped Te Ahi throughout the
                                                                                                                                                                                              and developed by the college’s Young            manufacturing and merchandising process
                                                  you are not only learning syntax and vocab, you are                                        Shopper bag a hit with                           Enterprise Scheme group Te Ahi (The             to bring their reusable bag business idea

                                                  learning tikanga particular to Māori and in doing so,                                      Countdown customers                              Fire), not only celebrated New Zealand’s        to life and stocked the bag in five central
                                                                                                                                                                                              diverse population and cultures but also        Auckland stores in late 2018.
                                                  you learn of the richness of a people. This in turn can                                    Year 12 students from Auckland’s St              taught Kiwi shoppers how to say hello
                                                                                                                                                                                              in 18 different languages. The students
                                                  impact and further enrich one’s own wellbeing and                                          Mary’s College took cultural awareness to
                                                                                                                                             a stylish new level, with their self-designed,   wanted the bags to help New Zealanders
                                                  life. Kia kaha tātou ki te kōrero Māori.”                                                  reusable bag rapidly selling out at a select     with new ways to greet people and as such
                                                                                                                                             range of Countdown stores.                       grow our acceptance of other cultures.
                                                  Apimaera Thomas
Countdown Sustainability Report 2019
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     Developing
                                                                                                                                     SEEDS has been running since early 2018
                                                                                                                                     in partnership with ServiceIQ. The number
                                                                                                                                     of students participating in the programme
                                                                                                                                                                                    “I’ve been impressed by the
     our team
                                                                                                                                     has increased from 273 in 2018, to 333
                                                                                                                                     in 2019. Students taking part in the            amount of support the store
                                                                                                                                     programme not only gain practical skills
                                                                                                                                     and knowledge, but are also able to make
                                                                                                                                                                                     management team gives to
     We know that if we want to continue to attract young, talented                                                                  informed decisions about future career          apprentices. Despite being
                                                                                                                                     opportunities at Countdown. Our stores
     people to work at Countdown, we need to provide great career
                                                                                                                                     also benefit, with store managers able to
                                                                                                                                                                                     really busy, they are always
     pathways and the support our team needs to succeed.                                                                             identify great, local talent.                   there to offer encouragement
                                                                                                                                                                                     and advice - that’s very
                                                                                                                                     Butchery apprentice
                                                                                                                                                                                     helpful when you’re starting
                                                                                                                                     a cut above the rest
                                                                                                                                                                                     out in a new career. With
                                                                                                                                     Countdown Mailer Street Butchery                their support, I’m looking
                                                                                                                                     Manager, Tristan Fraser, didn’t start his
                                                                                                                                     career in butchery, but is certainly well on    forward to completing my
                                                                                                                                     the way to establishing one with help           apprenticeship this year.”
                                                                                                                                     from Countdown.
                                                                                                                                                                                        Tristan Fraser, Butchery apprentice
                                                                                                                                     Tristan is in his third year of Countdown’s
                                                                                                                                     apprenticeship programme, which offers
                                                                                                                                     team members the opportunity to earn
                                                                                                                                     while they learn through a butchery or
                                                                                                                                     bakery apprenticeship in our stores. The
                                                                                                                                     apprenticeships are run with support from
                                                                                                                                     Competenz and allow participants to gain
                                                                                                                                     internationally recognised qualifications.
                                                                                                                                     Over the last year, 11 of our team have
                                                                                                                                     completed apprenticeships and 99 are
                                                                                                                                     currently working towards completing
                                                                                                                                     their butchery or bakery apprenticeship.
                                                                                                        Team
                                                                                                        under 25                     Tristan, who came to work for Countdown
                                                                                                                                     after eight years working in and then

                                                                                                        5,979
                                                                                                                                     managing a hunting and fishing store,
                                                                                                                                     has easily transitioned into his new role
                                                                                                                                     managing a team of four across the Mailer
                                                                                                                                     Street meat and seafood team.
                                                                                                                                     “Butchery is something I’m really
                                                                                                                                     passionate about and it’s been really great
                                                                                                                                     learning the tools of the trade by working
                                                                                                                                     alongside the experts. It’s humbling the
                                                                                                                                     amount of time they are willing to spend in
                                            Countdown careers                                                                        teaching me the finer cuts.”
             COMMITMENT 5
                                                                                           centres, meat and seafood plants and      The support for apprentices goes beyond
             We will develop                Whether it’s working in our stores around
                                                                                           support office.                           being taught by the experts. For Tristan,
             the careers of the             school or university studies, completing
             Countdown team                                                                                                          the store management team have also
                                            an apprenticeship or being a part of
             with a focus on                                                               An important part of attracting young     been great to work with.
             youth.                         our SEEDs or graduate programmes,
                                                                                           people to work with Countdown is
                                            Countdown continues to provide
                                                                                           giving them an insight into how diverse
                                            hundreds of young Kiwis with their first job
                                                                                           careers within our business can be. Our
                                            and a great start to their careers.
                                                                                           SEEDS (Students Entering Employment
                                            We’re proud to employ 5,979 New                Developing Skills) programme, which
                                            Zealanders who are 25 years old or             brings secondary school students into
                                            younger across our stores, distribution        stores one day a week over 10 weeks, is
                                                                                           designed to do just that.
18         COUNTDOWN SUSTAINABILITY REPORT 2019                                                                                                                          1    PERFORMANCE
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                                                                                                                                                   Policies for our people                        childcare pickups, and at times that work      fantastic for a number of his team, who
          “ I am proud to work for an                                                                                                                                                             for them and their employer.                   have worked with flexibility for some time
                                                                                                                                                   We know that all our team members make                                                        but now in a more supported way.
            organisation that is aware                                                                                                             a choice every day to give their time to us.
                                                                                                                                                                                                  For our office-based team, we know having
                                                                                                                                                                                                  flexibility at work is really important.       “In the buying team we’re conscious
            of the impact it has and                                                                                                               Because of that, we have a responsibility to   Not only does it help increase their work      that many of our people at times either
                                                                                                                                                   ensure we create a workplace that allows       satisfaction and make Countdown a great        need, or would like, to drop off or pick
            that does its best to utilise                                                                                                          our team to be who they are and bring          place to work, many of our team also say it    up their children from school. Others like
            its resources and makes                                                                                                                their whole selves to work. We want each       makes them more productive.                    to be involved in their children’s sporting
                                                                                                                                                   of our team members to feel supported                                                         endeavours which means managing
            Kiwis lives a little better                                                                                                            and valued and also to be proud to work        In early 2019 our new group-wide
                                                                                                                                                                                                                                                 their time flexibly and not necessarily
                                                                                                                                                                                                  Flexibility Policy was launched, giving our
            every day. Countdown                                                                                                                   for Countdown.
                                                                                                                                                                                                  office-based team the freedom and tools
                                                                                                                                                                                                                                                 the standard 9-5. To help, we recently
                                                                                                                                                                                                                                                 changed all of our team meetings to be
            really cares about its team                                                                                                            Making flexibility work                        to work in a way that works for them and
                                                                                                                                                                                                                                                 within school hours,” says Scott Davidson,
                                                                                                                                                                                                  the business. As part of the launch for this
            and communities and is                                                                                                                                                                policy, our team have been encouraged
                                                                                                                                                                                                                                                 General Manager Merchandise.
                                                                                                                                                   Changes in technology and lifestyle have
            passionate about doing                                                                                                                 meant that the ways people work are
                                                                                                                                                                                                  to consider a range of flexible working        Because of their process and service
                                                                                                                                                                                                  options and look at what might work best       driven nature, the Flexibility Policy will
            the right thing.”                                                                                                                      changing significantly. Many people are
                                                                                                                                                                                                  for them and their team.                       look a little different in our stores. We’re
                                                                                                                                                   now able to do their jobs from almost
            Annabelle Cole, Countdown graduate                                                                                                                                                                                                   looking at how this might work to make
                                                                                                                                                   anywhere, giving them more freedom to          General Manager Merchandise, Scott
                                                                                                                                                                                                                                                 sure workplace flexibility can be an option
                                                                                                                                                   work around things like traffic, school and    Davidson, says the policy has been
                                                                                                                                                                                                                                                 for teams right across our business.

                                                                                                                                                       “This policy allows
     From fashion to food                             “After finishing university, I wanted to       competitive advantages that can come
                                                                                                                                                        our team to maintain
                                                      work for an organisation that would see        from developing adaptable supply chains
     Our graduate programme continues to              the strengths I could bring to a role, and     - something that is paying dividends in her        their contribution to
     attract hundreds of applicants each year.        also be prepared to invest in me and offer     graduate role in logistics.
     In early 2019, we were excited to welcome        new opportunities. As someone who is                                                              important business
                                                                                                     “Our business is constantly adapting and
     13 new graduates who are now working             also passionate about social responsibility,
                                                                                                     changing to give our customers our best            matters, but also
     across a range of departments and                I wanted to find an organisation that
                                                                                                     every day. Working with our team and
     projects as well as developing their skills in   aligned with my own beliefs and that
                                                                                                     suppliers to get the right products, in the
                                                                                                                                                        provides flexibility                                                                                   COMMITMENT 6
                                                      constantly strives to do better every
     areas related to their own career interests.
                                                      day. Countdown’s graduate programme
                                                                                                     right place, at the right time, with good          for personal and                                                                                       We will continue to
                                                                                                     prices, can be a challenge. It has been                                                                                                                   develop employment
     For a fashion design graduate, the               aligned with what I wanted out of an
                                                                                                     really pārekareka seeing how dedicated
                                                                                                                                                        family choices.”                                                                                       policies appropriate
     supermarket industry wouldn’t seem like          organisation and a role.”                                                                                                                                                                                to our New Zealand
     a likely first choice when starting a career.                                                   our team is and how hard they work to get           Scott Davidson, GM Merchandise                                                                        team to provide a
                                                                                                                                                                                                                                                               supportive work
     However for 2019 Countdown Graduate              Annabelle’s studies led her to look at         the most out of every day.”                                                                                                                               environment.
     Annabelle Cole, who has a passion for            both the potential future of the New
     supply chain management and logistics, it        Zealand apparel industry as well as how
     was exactly that.                                it has adapted to globalisation. Doing
                                                      this work has driven her interest in the
20   COUNTDOWN SUSTAINABILITY REPORT 2019                                                                                                                   1    PERFORMANCE
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                                                                                                                                      Charting a better path
                                                                                                                                      for road safety
                                                                                                                                                                                         “I Am Here is a really simple
                                                                                                                                      While the overall number of crashes                 method anyone can adopt to
                                                                                                                                      involving trucks has decreased significantly
                                                                                                                                      over the last decade, according to the              support someone who may
                                                                                                                                      Ministry of Transport deaths from crashes
                                                                                                                                                                                          need help. There are no wrong
                                                                                                                                      involving trucks still makes up around 20
                                                                                                                                      per cent of the total road toll.                    questions. It’s empowering
                                                                                                                                      Our supply chain team works closely with            and safe and focused on
                                                                                                                                      freight suppliers to ensure we’re keeping
                                                                                                                                      truck drivers, customers and other road
                                                                                                                                                                                          fostering a culture of care.”
                                                                                                                                      users safe as they travel the country                 Kiri Hannifin, GM Corporate Affairs,
                                                                                                                                      delivering goods into our stores and                  Safety and Sustainability
                                                                                                                                      distribution centres.
                                                                                                                                      Underpinning this is our Transport Safety
                                                                                                                                      Charter, which plots Countdown’s safety
                                                                                                                                      ambitions over the next 10 years and is
                                                                                                                                      already seeing some positive changes in
                                                                                                                                      the freight industry. The Charter gives
                                                                                                                                      our freight and supply chain partners a
                                                                                                                                      clear overview of our expectations when
                                                                                                                                      it comes to safety, and it allows us to work
                                                                                                                                      alongside them to make fleet changes that
                                                                                                                                      will help keep our team, their team and
                                                                                                                                      other Kiwis safe on our roads.
                                                                                                                                      Our secondary freight contracts specify
                                                                                                                                      mandatory safety features including
                                                                                                                                      eyelid monitoring fatigue alerting system,
                                                                                                                                      24/7 speed monitoring, park-brake alarms,
                                                                                                                                      fleet age, electronic braking systems
                                                                                                                                      and under-run protection. Over the next
                                                                                                                                      year, we’ll be working with our primary
                                        Keeping our team and                              Stop for Safety                             freight carriers to make similar changes,
                                        customers safe                                    In March 2019, we held our first
                                                                                                                                      as well as improving safety at our store
          COMMITMENT 7                                                                                                                delivery points.
                                                                                          company-wide ‘Stop for Safety’ team
          We are committed              We have an absolute responsibility to our
          to maintaining a                                                                huddle. Across Aotearoa, all 18,400 of
          workplace that
                                        team and our customers to make sure they
                                                                                          our team, as well as our contractors and    I Am Here                                       Over the last year we have been working          “Some of us can navigate these times
          safeguards the health         all get home safely. This is a priority for our
          and wellbeing of our                                                            service providers, stopped work to focus                                                   to continue to remove the stigma                  on our own, but most of us need some
                                        business and something we focus on each                                                       New Zealand is experiencing a mental
          people, customers                                                               on what each of us could do to build the                                                   surrounding mental health issues and              help and that’s something Kiwis aren’t
          and visitors.                 and every day.                                                                                health crisis. Last year, the number of
                                                                                          safest workplace in the country. It’s a                                                    create a working environment where our            that great at admitting. Sadly, there is still
                                        Like most companies, we’re not immune             big deal to stop a company of our size      people who took their own lives was the        team feel comfortable speaking up when            completely unjustified stigma attached to
                                        to workplace accidents. The hugely varied         in its tracks – but it’s an indication of   highest since records began, which was         they are struggling, and know they will get       mental health and that puts us off letting
                                        environments our team work in means that          how seriously we are taking safety in our   the fourth year in a row that number has       the support they need.                            people know we are finding life tough.
                                        there is no one-size-fits-all solution when       business. The giant team huddle gave        increased. Our youth suicide rates are                                                           Knowing what to do for the people we care
                                        it comes to health and safety. For example,       everyone an opportunity to reflect on       among the highest in the OECD with young       In February 2019, we launched I Am Here
                                                                                                                                                                                                                                       about is hard. None of us want to say the
                                        keeping our team safe in our distribution         our current health and safety practices     men most at risk.                              - an online training course to help team
                                                                                                                                                                                                                                       wrong thing or make it worse. I Am Here
                                        centres is a different challenge to keeping       and what we can all do to keep safe.                                                       become confident in recognising when
                                                                                                                                      Given mental illness affects one in five New                                                     is a really simple method anyone can adopt
                                        team and customers safe in our stores.                                                                                                       someone may be in need and providing
                                                                                                                                      Zealanders, we know that many of our                                                             to support someone who may need help.”
                                                                                                                                                                                     them with support. Since launching the
                                        We know that one of the best ways we can                                                      team are experiencing or will experience                                                         says Kiri.
                                                                                                                                                                                     programme, more than 600 members of
                                        prevent accidents at work is by putting                                                       mental distress. It’s an issue we are taking   our team have taken part in the training.
                                        safety at the centre of everything we do                                                      seriously as a business. Improving the
                                        and by ensuring our team know that if                                                         mental health of our nation is something       General Manager Corporate Affairs, Safety
                                        something can’t be done safely, then it can’t                                                 that all of us, including business, can play   and Sustainability, Kiri Hannifin, says most
                                        be done at all.                                                                               a role in.                                     people in their lives will experience some
                                                                                                                                                                                     form of mental distress.
22         COUNTDOWN SUSTAINABILITY REPORT 2019                                                                                                                            1   PERFORMANCE
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     Creating more                                   New Countdown Hāwera                          Changes across the store include:

     accessible supermarkets                         accessible for all                            • A visual alarm system for emergencies
                                                                                                     and an EVAC chair for wheelchairs at the
     With three million customers each week,         When Countdown’s Hāwera store                   emergency exit
     the needs of our customers go beyond            reopened in May 2019, it came with a few      • Contrasting colours for doors and reduced
     what they want to see on our shelves.           extra features beyond a more expansive          natural light in the entry area to avoid glare
     It’s also about creating store environments     fresh produce department and energy             for visually impaired customers
     that make shopping easy, regardless of          efficient fixtures and fittings.
     their abilities.                                                                              • Wider aisles have been designed to
                                                     Thanks to mobility and accessibility            provide space for wheelchairs, mobility
     Over the last year, we have continued           being at the heart of the store’s redesign,     scooters and prams
     working with a range of community               Countdown Hāwera proudly became
     stakeholder groups to not only change how       New Zealand’s first ‘Be. Accessible’          • Team areas have been designed to cater
     we develop our new stores, but also to look     accredited supermarket, helping all New         for a range of mobility needs
     at how we can create better experiences for     Zealanders feel welcome when they shop        • Wider mobility car parks which are
     customers and team who have disabilities        with us.                                        clearly marked in blue, dedicated
     or need a bit of extra help.                                                                    mobility scooter parking, and a safe and
                                                     During the store’s significant
     Countdown first introduced Quiet Hours          refurbishment, our team worked                  easy path to the store entrance from
     in April 2018 in Countdown Marton, and          alongside Be. Accessible to ensure the          mobility car parks
     now eight stores hold regular shopping          store was more user-friendly, accessible      • Two mobility scooters owned by the
     times where lights are dimmed, sounds are       and inclusive for customers and team            store, which can be loaned to customers
     reduced and there is minimal movement           members with disabilities.                      to use while shopping designated drop-
     on the shop floor for an hour. This creates                                                     off zone for taxis and vans.
     an optimal shopping environment for
     customers with autism spectrum disorders,
     as well as others who can struggle with
     the traditionally busy supermarket
     environment. Plans are underway for
     several more stores throughout the
     country to start their own Quiet Hours over
     the next six months.
     In early 2019, a number of our Dunedin
     stores became the first to test a new
     mobility car park monitoring app - Access
     Aware. Developed by CCS Disability Action,
     the app is designed to report the misuse of
     mobility car parks in real time and help keep                                                                                                    Love is Love
     mobility parks free for when people need
     them most.                                                                                                                                       Countdown was proud to achieve              Countdown was also proud to be a
     The app is being trialed in our four Dunedin                                                                                                     Rainbow Tick certification in November      key sponsor of RainbowYOUTH’s 30th
                                                                                                                                                      2018 - a milestone that was celebrated by   birthday, a charitable organisation
                                                                                                                                                                                                                                                 COMMITMENT 8
     stores. We’ll look at customer and team
                                                                                                                                                      our teams throughout New Zealand.           working with queer and gender diverse          Achieve Rainbow
     feedback as well as the number of reports                                                                                                                                                                                                   Tick certification
     received so we can consider rolling out the                                                                                                                                                  youth to provide peer support, drop-           in New Zealand,
                                                                                                                                                      To mark the occasion, our team was asked
     technology across other stores.                                                                                                                                                              in centres, resources, professional            demonstrating our
                                                                                                                                                      to share why having the Rainbow Tick                                                       commitment to
                                                                                                                                                                                                  development courses and counselling.
                                                                                                                                                      matters. We were flooded with responses                                                    LGBTI inclusion.
                                                     “Supermarket shopping is                                                                         about how the Rainbow Tick was an           Now that the Rainbow Tick has been
                                                      a basic task that everyone                                                                      important part of creating a safe, non-     achieved, the focus is on maintaining the
                                                                                                                                                      judgmental, inclusive and empowering        accreditation. Over the next year, we will
                                                      should be able to do with                                                                       workplace for our team - regardless of      be looking to encourage greater visibility
                                                      ease. The Hāwera store is a                                                                     who they are and who they love.             of our LGBTI team across our business as
                                                                                                                                                                                                  well as continuing to hold focus groups
                                                      great example of creating a                                                                     Team were also encouraged to enter a
                                                                                                                                                                                                  to ensure we’re meeting the needs of our
                                                                                                                                                      cake decorating competition. We received
                                                      supermarket and a workplace                                                                     entries from right across the business –
                                                                                                                                                                                                  team and supporting efforts to be even
                                                                                                                                                                                                  more inclusive and diverse.
                                                      that can cater to everyone                                                                      from our distribution centres and stores
                                                                                                                                                      to our support office – with Countdown
                                                      regardless of ability.”                                                                         pride clearly on display.

                                                      Neville Pulman, Be. Accessible
24   COUNTDOWN SUSTAINABILITY REPORT 2019                1   PERFORMANCE
                                                             HIGHLIGHTS    2   PEOPLE   3   PLANET   4   PROSPERITY   25

     Planet –
     for a healthy
     Aotearoa
     New Zealand
     We want to find new and
     innovative ways to protect
     our precious environment
     for generations to come.
     We’re committed to reducing
     our emissions and using more
     sustainable products and
     materials. We’re also looking
     at any opportunities to use,
     waste and pollute less.

      Reduction in                Reduction in
      carbon emissions            refrigerant leakage

      13.9%
      Certified paper, pulp
                                  28%
                                 Food rescue donations

      91%
      and timber

                                 $6.9M
26         COUNTDOWN SUSTAINABILITY REPORT 2019                                                                                                                      1     PERFORMANCE
                                                                                                                                                                           HIGHLIGHTS             2    PEOPLE                   3     PLANET      4     PROSPERITY        27

     Zeroing in on                                                                                                                                  “The relationships we

     food waste                                                                                                                                      have with the local store
                                                                                                                                                     teams and the wider
     Globally, one third of all food produced is wasted, and according to Love Food Hate Waste,                                                      Countdown business
     collectively New Zealanders throw out more than 157,000 tonnes of food each year in their                                                       have been hugely
     homes. Not only is this hugely detrimental to the environment, creating greenhouse gases as                                                     beneficial to our local
     food rots in landfills, but it’s also unacceptable given the number of children and families in our
                                                                                                                                                     communities in need.”
     country going hungry each day.
                                                                                                                                                      John Paine, Food Impact Director,
                                                                                                                                                      Good Neighbour, Tauranga

             TOTAL FOOD
             DONATED THROUGH
             FOOD RESCUE:                      $6.97MILLION

       FOOD DONATED TO                               FOOD DONATED TO                                        FOOD DONATED
       THE SALVATION ARMY: ȥ                         OTHER FOOD RESCUE AND                                  TO FARMERS:
                                                     FOODBANK CHARITIES:

       $2.33                                         $2.87                                                  $1.77
             MILLION                                      MILLION                                                 MILLION                       Supporting Good                              social enterprise providing training and
                                                                                                                                                                                             mentoring to help transform lives. It also
                                                                                                                                                Neighbour to get cooking                     means rescued food can now be turned
                                                                                                                                                                                             into snacks and sold for catering purposes        COMMITMENT 9
                                                                                                                                                Good Neighbour in Tauranga has been          by people who are unemployed or are               Towards zero food
     In 2017, we publicly stated our goal to        To ensure we’re also financially              In addition to Food Rescue, we are            working with Countdown to rescue food                                                          waste going to landfill.
                                                                                                                                                                                             seeking new skills.
     work towards zero food waste going to          contributing to building a sustainable        working on a project towards zero food        that would have otherwise gone to waste
     landfill. As a food business, it will always   food rescue sector, our Countdown Food        waste through better waste management         since 2015. Good Neighbour currently         “Unfortunately demand for food assistance
     be a challenge but it’s one that we’re up      Rescue Partners Contestable Fund has          in our stores and reducing our stock loss.    rescues 450 tonnes of surplus food each      isn’t slowing down and as a charitable
     for and working hard on.                       seen more than $435,000 donated to our        While just 0.42 per cent of our total sales   year from our stores and distributes it      organisation our resources are often
                                                    charity partners over the last three years.   is wasted, work is currently underway         to 55 community organisations across         stretched thin. Countdown’s support
     Our food rescue and food waste diversion
                                                                                                  to help understand what opportunities         Tauranga who are working to alleviate food   of Good Neighbour Kitchen is helping
     programmes continue play a key role in         This year, the majority of the $165,000
                                                                                                  we have to reduce this even further, and      insecurity and hunger in the region.         us move to a more sustainable social
     reducing surplus food going to landfill.       awarded went towards helping our
                                                                                                  move towards zero food waste to landfill.                                                  enterprise model, where ultimately we
     100 per cent of our Countdown stores           partners expand their operations, whether                                                   Countdown has also helped support
                                                                                                  This work is being funded in part by the                                                   will be able to rescue more food and feed
     have food diversion in place, where            that’s buying a new vehicle to transport                                                    Good Neighbour through its Food Rescue
                                                                                                  Ministry for the Environment’s Waste                                                       more people in need. We look forward to
     surplus food is donated to charity             products, building a kitchen or hiring                                                      Partners Contestable Fund. The $45,000
                                                                                                  Minimisation Fund.                                                                         seeing how the food rescue sector evolves
     partners like The Salvation Army for           more team.                                                                                  in funding to date has been used to help     in the future,” says John Paine, Food
     people in need, or to farmers as scraps to                                                                                                 set up a new commercial kitchen, which       Impact Director, Good Neighbour.
     feed their livestock.                                                                                                                      opened in June 2019. The Kitchen is a
28   COUNTDOWN SUSTAINABILITY REPORT 2019                                                                                                                     1    PERFORMANCE
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                                                                                        packaging. They are expected to
                                                                                        be rolled out in 30 of our stores by the
                                                                                        end of 2019.
                                                                                                                                                                                                                                    “This is something
                                               Plastic removed
                                               since early 2018                       • We’ve started using recycled PET
                                                                                                                                                                                                                                     Countdown needs to do to
                                                                                        instead of virgin plastic for some of our                                                                                                    meet the ongoing demands
                                                                                        own brand products like bottled water
                                                                                                                                                                                                                                     of its customers when it

                                               117T
                                                                                        and bakery items. This helps reduce
                                                                                        the need for virgin plastic and provides                                                                                                     comes to packaging. It’s
                                                                                        a market for these types of recycled
                                                                                        products in New Zealand.                                                                                                                     great to have been able to
                                               Single-use plastic
                                                                                                                                                                                                                                     play a role in Countdown’s
                                               carrier bags                           Trialing traps for litter                                                                                                                      work to reduce its impact
                                               diverted from
                                               New Zealands                           Our store car parks, back-of-store areas                                                                                                       on the environment.
                                               waste stream

                                               338M
                                                                                      and distribution centres see a lot of foot                                                                                                     Knowing that my work is
                                                                                      and product traffic with customers visiting
                                                                                      our stores and deliveries being made to                                                                                                        contributing to a better
                                                                                      ensure our shelves are always stocked.                                                                                                         planet for future generations
                                                                                      Because of this, pieces of rubbish and litter
                                                                                      often end up outside and blown into nearby                                                                                                     is really exciting!”
                                                                                      stormwater drains before it can be picked                                                                                                     Jefferson Damayo, Packaging Specialist
                                                                                      up and properly disposed of.
                                                                                      We have recently begun a trial of
                                                                                      Stormwater360’s LittaTraps at our Auckland
                                                                                      distribution centre and Countdown Takapuna
                                                                                      store to help prevent litter ending up in our
                                                                                      waterways. The trial, which will be completed
                                                                                      in 2019, will allow us to see how effective the
                                                                                      traps are and whether they are something we
                                                                                      can introduce at more of our stores.

                                                                                      Haere rā to the plastic bag
                                                                                      After announcing in late 2017 that we would
                                                                                      be phasing out single-use plastic carrier
                                                                                      bags at the checkout and online by the end
                                                                                      of 2018, our team worked incredibly hard to       Ministry funds help                         and preventing waste. We want to find              materials, recyclability of packaging, and
                                    The war on plastic                                ensure we met our deadline.
                                                                                                                                        reduce waste
                                                                                                                                                                                    better alternatives to plastic in particular,      specific logos and artwork relating to
                                                                                                                                                                                    but before that, we need to know what              recyclability which gives us a really good
                                                                                      During the phase out, our store teams                                                         we’re using and why, particularly as we’re         understanding of what we need to do.”
     COMMITMENT 10                  Colmar Brunton’s 2018 Better Futures
                                                                                      were proud advocates and their passion            In late 2018, Countdown was delighted to    committed to using 100 per cent reusable,
                                    research report showed that the build up of                                                                                                                                                        Councils throughout New Zealand have a
     Improve the                                                                      clearly had an impact on our customers            be awarded Waste Minimisation funding       recyclable or compostable packaging in our
     recyclability of our           plastic in the environment was the number                                                                                                                                                          range of different recycling capabilities,
                                                                                      who started using their reusable bags             from the Ministry for the Environment       own brands by 2025 or earlier.
     Own Brand packaging            one concern for New Zealanders – jumping up                                                                                                                                                        which means that packaging that can be
     and contribute to the                                                            well ahead of our full phase-out. On 15           towards a project focused on further
     circular economy
                                    nine places from the previous year’s report.                                                                                                    In early 2019, we worked with a packaging          recycled in one part of the country cannot
                                                                                      October 2018, more than two months                reducing food waste, identifying positive
                                    As global consumer demand for less plastic        ahead of schedule and nine months ahead           changes to make to our own brand            specialist to audit our entire own brand           be recycled somewhere else. Looking at
                                    has increased, so too has the pressure on our     of legislation, we were proud to announce         packaging, and investigating circular       packaging. This looked at the recyclability        which packaging options have the best
                                    business here in Aotearoa to make changes for     Countdown was the first supermarket               economy opportunities within our            of the packaging currently being used and          ability to be processed within our current
                                    the better. Over the last year, we’ve delivered   brand in New Zealand to be single-use             operations. The project is expected to      identified areas where environmentally-            domestic infrastructure was also an
                                    some positive results:                                                                              be completed by early 2020.                 beneficial changes could be made in the            important focus of the audit.
                                                                                      plastic carrier bag free at our checkouts
                                                                                                                                                                                    short, medium and long-term.
                                    • Continued to remove plastic and packaging       and online shopping service. This has                                                                                                            Jefferson says that while 2025 seems far
                                      from our produce section, with more than        meant 338 million single use plastic bags         Taking a hard look at our                   “These types of audits help establish a            away for a lot of people, it’s actually an
                                      117 tonnes of plastic and over 70 tonnes of     have been prevented from entering the                                                         baseline that can then be used to identify         incredibly short timeframe if Countdown
                                      cardboard taken out since early 2018.           waste stream this year.                           own brand packaging                         and pinpoint important and underlying              is going to meet its commitment to make
                                                                                                                                                                                    issues to tackle,” says Packaging Specialist       packaging changes.
                                    • Rolled out misting units for fresh produce      Almost 90 per cent of our customers are           For many products, packaging can serve      Jefferson Damayo. “It’s captured data
                                      in five of our stores, allowing it to be        already bringing their own bags when              a vital purpose like keeping food safe      such as various packaging types, packaging
                                      displayed without unnecessary plastic and       they shop with us, so thanks Aotearoa for
                                                                                      getting behind us!
30    COUNTDOWN SUSTAINABILITY REPORT 2019                                                                                                              1    PERFORMANCE
                                                                                                                                                             HIGHLIGHTS            2    PEOPLE                    3    PLANET                     4    PROSPERITY             31

     Sourcing
     sustainably                                                                                                                                                  Over the last
                                                                                                                                                                  year, we’ve
                                                                                                                                                                  worked with
                                                                                                                                                                  Kiwi farmers
                                                                                                                                                                  to supply our
                                                                                                                                                                  stores with:

                                                                                                                                 21                               82                             54                                  2
                                                                                                                                 million                          million                        million                             millon
                                                                                                                                 kilos                            litres                         free-range                          kilos
                                                                                                                                 of fresh         of fresh                                       eggs                                of fresh
                                                                                                                                 New Zealand milk.                                                                                   New Zealand
                                                                                                                                 beef, lamb, pork                                                                                    fish
                                                                                                                                 and chicken

                                                                                                                                 Free farmed fresh pork                       “We know that animal welfare and                  that what they grow or produce, we will
                                                                                                                                                                              knowing animals are well cared for is really      buy. A great example of this is our recent
                                                                                                                                 Our customers regularly tell us that they    important for Kiwi customers, and we’ve           work with Canterbury wheat growers, who
                                                                                                                                 want to buy products from local farms that   always taken this approach to our farming         had been struggling for a number of years
                                                                                                                                 meet high animal welfare standards.          business. We’re delighted to be able to           with low wheat prices.
                                                                                                                                                                              supply more free farmed fresh pork to
                                                                                                                                 For a number of years, we have been                                                            In July 2018, we announced that all our
                                                                                                                                                                              Kiwi’s, and importantly make it accessible
                                                                                                                                 working with Steve Stern and his team                                                          in-store baked bread and rolls are now
                                                                                                                                                                              right across the country.” Steve Sterne,
                                                                                                                                 at Patoa Farms to offer free farmed                                                            being made from Canterbury-grown
                                         We know how important it is for Kiwi        our organic Braeburn apples grown by                                                     Patoa Farms.
                                                                                                                                 fresh pork in a number of our stores.                                                          wheat, giving New Zealand’s local wheat
                                         shoppers to buy fresh, locally-grown        Bostock in the Hawkes Bay, we’re really
                                                                                                                                 Patoa Farms, based in Hawarden, North                                                          industry a significant economic boost.
         COMMITMENT 11
                                         produce. We work with more than 1,200       proud to work directly with a wide range
                                                                                                                                 Canterbury, has been free farming pork       Canterbury wheat                                  The multi-year commitment sures up the
                                         Kiwi farmers to stock our supermarkets,     of local growers.
                                                                                                                                                                                                                                whole supply chain, and allows growers
         Source key raw                  as well as hundreds of Kiwi growers
                                                                                     For products that come from further
                                                                                                                                 since 1988 and is independently certified    forthe win                                        to reinvest in their businesses and look at
         materials and
                                         for a wide range of delicious fresh fruit                                               by the SPCA.
         commodities to an                                                           afield, we’re continuing to ensure we’re                                                                                                   other opportunities to make the most of
         independent standard            and vegetables.                                                                          In October 2018, we were pleased            Having great working relationships with
                                                                                     sourcing from sustainable sources that                                                                                                     their land.
         by 2020. We will
                                                                                                                                 to announce that 100 per cent of all         our local growers and farmers is not only
         raise awareness of              Over the past year, we have had a strong    have been independently verified. 100
         sustainably sourced                                                                                                     Countdown’s fresh pork nationwide would      great for our customers, but it also gives
                                         focus on local producers, and sharing       per cent of all our own brand tea, sugar
         products.                                                                                                               be Patoa Farms free farmed pork, making      our business a better understanding of the
                                         their stories with our customers. Whether   and chocolate is sustainably sourced from
                                                                                                                                 animal welfare considerations a more         challenges they face.
                                         it’s lettuce from Sutherlands Produce       vendors that have been independently
                                         in Ramarama, Auckland, our sweetcorn        certified by groups including Fairtrade,    widely available choice for consumers.       Where possible, we’re working to find
                                         from the McPhail family in Gisborne, or     Rainforest Alliance and UTZ.                                                             opportunities to give our suppliers the
                                                                                                                                                                              ability to plan for the long-term, knowing
32         COUNTDOWN SUSTAINABILITY REPORT 2019                                                                                                                       1    PERFORMANCE
                                                                                                                                                                           HIGHLIGHTS            2    PEOPLE                     3     PLANET                     4    PROSPERITY              33

     Cage-free eggs                              prints a Countdown logo and code on each           “The quality, safety and integrity of
                                                 egg at the farm, right after being laid and        the products we sell on our shelves is
      The demand for free-range and barn         before packaging, ensuring full traceability       paramount to us, and by stamping our

                                                                                                                                                        “We’re delighted
     eggs shows no sign of slowing down,         from farm to plate.                                eggs we want to provide that next level of
     increasing by 50 per cent in the last                                                          traceability for our customers too. We have
     couple of years. More and more
     customers want to know how the eggs
                                                 We were the first national retailer to
                                                 announce we will move to barn-laid or free
                                                                                                    always audited our own brand egg suppliers
                                                                                                    and over the last two years we have also
                                                                                                                                                         to be partnering
     they are cracking into a pan, pot or bowl
     have been produced and how hens have
                                                 range eggs on-shelf by the end of 2024
                                                 in the North Island and 2025 in the South
                                                                                                    audited all free range eggs that we stock            with Countdown
     been cared for.                             Island. Additionally, we have committed
                                                                                                    on our shelves, and independently verified
                                                                                                    traceability from the farm right through             to offer more
                                                 to selling only free range and barn eggs in
     To help our customers make informed         our own brand labels by the end of 2022.
                                                                                                    the supply chain. We are proud to be giving
                                                                                                    customers that extra assurance that our
                                                                                                                                                         Kiwis the chance
                                                                                                                                                         to try our organic
     decisions about the eggs they buy, we       This commitment is supported by our Egg
     introduced traceability stamps on all our                                                      eggs are verified as free range and that
                                                 Producers Programme, which began in
     own brand eggs in early 2019. The new
     stamp uses food grade ink, which is safe
                                                 2016 and aims to help farmers reach the
                                                 extra 150 million free range and barn eggs
                                                                                                    their journey is traceable.” Nikhil Sawant,
                                                                                                    Countdown’s Head of Perishables                      Braeburn apples.”
     to eat and doesn’t affect the egg, and      needed each year by our target dates.                                                                     John Bostock, owner of BOSTOCK
                                                                                                                                                           New Zealand.

                                                                                         “Our customers
                                                                                          want to know
                                                                                          where their food
                                                                                          comes from,
                                                                                          particularly if
                                                                                          their purchasing
                                                                                          decision is
                                                                                          based on animal
                                                                                          welfare.”                                               Apples go organic                          move to certified organic Braeburn is a            Palm Oil
                                                                                                                                                                                             major play to help make organic produce
                                                                                                                                                  In April 2019, Countdown became            more affordable and accessible for Kiwis.          The impact of palm oil production on
                                                                                                Nikhil Sawant, Head of Perishables
                                                                                                                                                  the first national New Zealand             “Growing healthy premium produce in                the environment is an ongoing concern
                                                                                                                                                  supermarket retailer to offer only 100     partnership with nature is our priority.           for our business as it is for many of our
                                                                                                                                                  per cent organic Braeburn apples at        We want to leave the rivers and land in a          customers. We are continuing to work
                                                                                                                                                  supermarkets nationwide, rather than the   good condition for future generations.             on ensuring both our food and non-food
                                                                                                                                                  conventionally-grown variety.              We started our grower journey as                   products use palm oil that is certified by
                                                                                                                                                                                             conventional farmers and after having              the Roundtable on Sustainable Palm Oil
                                                                                                                                                  According to the 2018 New Zealand
                                                                                                                                                                                             young children and seeing the liberal use          (RSPO), of which we’re a member.
                                                                                                                                                  Organic Sector Market Report,
                                                                                                                                                  commissioned by Organics Aotearoa          of pesticides and artificial substances, like      We want our customers to be able to
                                                                                                                                                  NZ, eight out of ten New Zealanders buy    many of our customers, we had concerns             make informed choices when they shop
                                                                                                                                                  organic products at least fortnightly.     and this encouraged us to start looking            with us, which is why where palm oil is
                                                                                                                                                  In fact at Countdown, the demand for       for healthier alternatives. In 1996 we             used as an ingredient in any of our own
                                                                                                                                                  organics is growing at more than twice     converted our farm to organic and now              brand products, we clearly label it as ‘palm
                                                                                                                                                  the speed of the conventional market.      we export to more than 20 countries                oil’ on the packaging. 100 per cent of the
                                                                                                                                                                                             around the world.” John Bostock, owner             palm oil in our own brand food products
                                                                                                                                                  With more than five million apples sold    of BOSTOCK New Zealand.                            is RSPO certified.
                                                                                                                                                  each year and Braeburn being one of the
                                                                                                                                                  most popular varieties, the decision to
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