Listening and responding - Morrisons Corporate
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Listening and
responding
Wm Morrison Supermarkets PLC
Corporate Responsibility Report 2018/19
Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
About this report
This is Morrisons 13th Corporate Strategy and approach
Our focus areas
Responsibility Report. It reports About this report 2
on our corporate responsibility Supporting Authenticity, Reducing, reusing and Reducing waste
We are food makers and shopkeepers 3
Farm to fork sustainability 4
programme progress and activity British farmers provenance and safety recycling plastic and emissions
Chief Executive introduction 5
from the previous financial year. 2018/19 customer insight survey 6
What we’ve achieved in 2018/19 8
This Report should be read together with our
Understanding our changing world 9
2018/19 Annual Report and Financial Statements,
Our corporate responsibility strategy 10
which can be found at:
www.morrisons-corporate.com/investor-centre Working towards a global agenda 11
Selected KPIs within this year’s Report have Our focus areas
been independently assured by our auditors p 12 p 14 p 16 p 18 Supporting British farmers 12
PricewaterhouseCoopers LLP using ISAE 3000 Ensuring food safety, quality and provenance 14
(revised). The assurance statement can be found Reducing, reusing and recycling the plastic we use 16
on page 41 of this Report. Reducing Our Sourcing Supply chain working
Reducing operational general waste and carbon emissions 18
food waste colleagues responsibly conditions
Why corporate responsibility matters Reducing food waste 20
to Morrisons Looking after our colleagues 22
It’s about doing the right thing for our customers, Sourcing responsibly 24
colleagues, suppliers, shareholders, society and Ensuring fair working conditions for workers in our 26
supply chain
the environment. Doing so ensures we remain an
efficient and competitive business. Making it easier for our customers to live healthier lives 28
Making a positive difference to the communities we serve 30
Creating a meaningful corporate responsibility
programme ensures transparency amongst our Why it matters to Morrisons
p 20 p 22 p 24 p 26
stakeholders and adds value to our business. Ongoing engagement with our stakeholders 32
If you would like to comment on our corporate Embedding sustainability into our business 33
responsibility programme, the report itself or any Healthy
of the issues we highlight, please drop us a line at eating Communities Performance summary
cr@morrisonsplc.co.uk Our focus areas in detail 34
Assurance
Assurance statement 41
KPIs assured and basis of preparation 43
p 28 p 30
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 2
Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
We are foodmakers and shopkeepers
We are a British born and bred,
value-led grocer. We have grown
from a market stall to the UK’s fourth
18 4.8%
largest supermarket group with
494 stores. We’re both food makers 494
9
and shopkeepers, which makes us LFL
£406m
Established in sales increase
different from our competitors. manufacturing
stores
sites
Our focus on fresh food is supported by our
‘farm to fork’ business model. We buy many of our
fresh products directly from farmers and fishermen, 1899 distribution
centres
underlying profit
before tax
process through our own manufacturing sites and
abattoirs and distribute through our own network,
9,000
the only British supermarket to do so. This gives us
more control over the provenance and quality of
12m
the food we sell in our stores. We have more skilled
specialists on hand to prepare fresh food in store trained butchers, bakers
than any other retailer, with over 9,000 fully trained and fishmongers
100,000+
craftspeople including butchers, bakers, fishmongers customers in store
and online each week
and cheesemongers.
Every week, 12 million customers pass through colleagues
our doors and shop online, and more than 100,000
colleagues across the business work hard each day
to deliver a great service. Our aim is to give our
customers more of what matters to them, offering
great quality food at low prices.
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 3
Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Our value chain Chief Executive introduction Customer insight survey Highlights Global context The SDGs Strategy
Farm to fork sustainability
How we create value
What we rely on
NATURAL RESOURCES FINANCIAL RESOURCES PHYSICAL RESOURCES OUR EXPERTS OUR PEOPLE OUR SUPPLIERS OUR COMMUNITIES
Our value chain
18 75%
We own 18 fresh food of store colleagues
manufacturing sites are from the
across the UK local area
Buy Make Move Sell Consume
We work with thousands of suppliers both We own 18 fresh food manufacturing sites Products are moved through our national Our skilled butchers, bakers, cheesemongers Our colleagues work hard to minimise waste
in the UK and internationally to source food across the UK, including our own abattoirs, distribution network of 1,450 trailers from and fishmongers provide a unique Market every day. It makes commercial sense and
commodities as well as finished products. where 8,000 skilled colleagues process and manufacturing sites to our stores. Street experience for our customers, selling we know that our customers really care
We set high standards for the products we create the fresh products our customers Our stores are serviced by seven regional and fresh British produce on our counters. about this too.
buy to ensure they are sourced and produced see on our shelves. one national distribution centres. The specialists are on hand to advise customers At the outset of any product design, detailed
responsibly, to a high quality with safety always Owning our own manufacturing sites gives Through the use of state-of-the-art technology on how best to store, prepare and cook the consideration is given to the lifecycle of a
in mind. us greater control of waste, makes the in our lorries, route optimisation, increasing food we sell and will prepare only the amount product and its packaging so that it is fit for
We’re committed to buying fresh British supply chain shorter and creates efficiencies, trailer size and planning we are able to reduce that customers need, which helps to reduce purpose but also minimises materials, uses
produce where possible and directly from minimising our environmental impact and miles and the environmental impact of our food waste in the home. recycled content where possible and can be
UK farmers and suppliers, contributing to the ensuring authenticity, provenance and safety products and services, as well as getting fresh Our store colleagues reflect the local easily recycled.
UK economy. We work with our suppliers to of our products. products into our stores faster. community we serve, with 75% of colleagues We provide recycling facilities for our
keep them sustainable. from the local area. We support and train our customers at the front of our stores and car
Through our Wonky Veg range, we’ve relaxed colleagues to ensure they provide the best parks and provide information on packaging
cosmetic specifications on fresh fruit and customer service and can build fulfilling careers to customers on how to reduce food waste
vegetables helping suppliers to reduce within the organisation. in the home.
on-farm waste. Any edible unsold food within our stores
and sites is effectively redistributed to our
partner organisations.
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 4
Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Our value chain Chief Executive introduction Customer insight survey Highlights Global context The SDGs Strategy
Listening and learning from our customers
The Morrisons turnaround is well on track with We remain committed to providing clear and Our innovative For Farmers range, where part of
growth in sales, profit and customer satisfaction. accurate labelling to our customers so they can make the retail price goes directly back to farmers, has
This is underpinned by our core purpose: to make informed choices that are right for them. We know generated an additional £12m income for farmers
and provide food we’re all proud of, where everyone’s just how important this is for customers who wish to since it launched in 2015.
effort is worthwhile, so more and more people can avoid certain ingredients, which is why we have gone In our stores, we continue to develop ‘Morrisons
afford to enjoy eating well. beyond current legislative requirements to ensure Makes it’ as a standalone brand, which is authentically
This core purpose guides everything we do. It is that all of our in-store produced products that British fresh food, made by our skilled team of food
integral to our Corporate Responsibility programme, are pre-packed contain allergy advice on the label. makers. We have ‘Morrisons Makes it’ fresh items
which is responding to the issues that matter most We’ve also developed new eLearning allergen across all of Market Street and have expanded our
to our customers. modules for all colleagues in store. range of locally sourced products with another 140
Our annual customer insight survey provides ‘Reducing, recycling and reusing plastic’ now forms local foodmakers selling their products in our stores.
valuable feedback on corporate responsibility issues one of our ten key focus areas for the Corporate Listening and responding doesn’t stop at our survey.
and helps us to shape our approach. The top three Responsibility programme. Our ambition is to be It’s what we do everyday as we continue to offer
issues are unchanged from last year and demonstrate a leading corporate in the fight to keep plastic in the great value and quality products to our customers.
the fundamental and enduring importance to our economy and out of the environment, to be a beacon As a result, we have developed new and popular
customers of food safety, supporting British farmers, of good practice for other companies, and to help ranges over the last year such as our Too Good to
and reducing plastic waste. The full results of this more and more customers live their lives with less Waste boxes, V Taste vegan range and Little Kitchen,
survey can be found on page 6 of this Report. reliance on plastic. our healthy and balanced children’s ready meals.
Food safety is our paramount concern. Being both Over the last year, 9,000 tonnes of Morrisons Thank you once again to all colleagues for making
a fresh food manufacturer and a retailer means branded plastic packaging has been eliminated this happen.
we have more control and traceability of our or made widely recyclable. We removed 174m plastic
“Listening and responding supply chain than our competitors. We’re driving produce bags for loose produce, replacing them
with paper bags. We also introduced a paper carrier
David Potts
is what we do everyday as continuous improvements in food safety across
our manufacturing operations through our Culture bag option to stores. This bag is sustainably sourced,
Chief Executive
we continue to offer great of Excellence audit programme, which has now made in the UK and has a lower carbon footprint than
our reusable plastic bags. We estimate this move will
value and quality products completed its third year.
avoid an estimated 1,300 tonnes of plastic a year.
to our customers.” We continue to be British farming’s biggest direct
supermarket customer. We sell 100% Morrisons
David Potts branded fresh meat, milk and eggs in our stores.
Chief Executive Our commitment to British farming was recognised
at the 2018 Food and Farming Awards where we were
awarded Retailer of the Year.
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 5
Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Our value chain Chief Executive introduction Customer insight survey Highlights Global context The SDGs Strategy
Listening to our customers
Listening and responding is central in helping to determine where we focus
our responsible business work. For the fourth year running we asked our customers for feedback.
We ask for feedback from our customers
The top 10 issues that matter most to our customers 1
on various responsible business issues.
In early 2019, 4,000 customers were asked “Maintain and improve where
to complete our online survey. 1 ENSURING FOOD SAFETY possible all present standards,
keeping to honest labelling and
In the exercise, customers were shown several environmental health standards.”
sets of statements and with each set they are asked =2 SUPPORTING BRITISH FARMERS
to select the options they consider to be the most
and least important. This provides each statement =2 REDUCING PLASTIC PACKAGING
with a score out of 100 based on its importance.
Morrisons customer
This year, we reviewed the list of issues in our
survey to ensure that we are using customer friendly 4 ENSURING ANIMAL WELFARE
language. We also included three new issues: 2
Helping farmers to reduce their emissions; selling 5 SELLING BRITISH PRODUCTS “The paper bags have been
vegan and plant-based products; and providing
accessible environments for customers with
a great introduction, keep it up
additional needs. 6 REDUCING PACKAGING WASTE and continue decreasing the
The top 10 issues most important to our customers
amount of unnecessary plastic
have remained relatively consistent with our 2017/18 particularly for fruit and veg.”
7 TRADING FAIRLY WITH SUPPLIERS
survey results. Ensuring animal welfare and selling
British products have moved up two places and
trading fairly with suppliers moving up three places. 8 REDUCING FOOD WASTE Morrisons customer
9 SELLING LOCALLY SOURCED PRODUCTS
10 LOOKING AFTER EMPLOYEES
0 105 210
4,000
regular customers
were surveyed
(7,001 2017/18)
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 6
Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Our value chain Chief Executive introduction Customer insight survey Highlights Global context The SDGs Strategy
Listening to our customers
The top issues
1 =2 =2 4 5
ENSURING SUPPORTING REDUCING ENSURING SELLING
FOOD SAFETY BRITISH FARMERS PLASTIC PACKAGING ANIMAL WELFARE BRITISH PRODUCTS
Robust processes and clear labelling Working closely and supporting their Helping customers to live with less plastic High standards within our supply chain Increasing the amount of British products
Trust is really important to our customers. businesses Customers want to see less plastic in our There has been increased scrutiny of we offer
They expect us to be transparent Our customers are passionate about stores and on our products. They continue practices in the meat and dairy sector in By buying homegrown products
with the products we sell, producing supporting British farming. They believe to be concerned with the environmental recent years. Our customers want to know customers are reassured that
them to the highest standards. in the high production standards and health impacts that the meat and dairy products they buy it has been produced to
Following the recent Pret a Manger of British products, they want to of plastics and have been produced to high animal welfare high standards and they
case on allergen labelling, support the local economy, reduce want us to standards, where all farm animals are well are supporting the
customers rightly want clear and food miles and keep supply chains do more. cared for and treated with compassion British economy.
transparent labelling. They also short and transparent. They care throughout their lives. They are also
want clear traceability back about British farming and they want concerned with animal testing on products.
to source. the British farming industry to thrive.
6 7 8 9 10
REDUCING TRADING FAIRLY REDUCING SELLING LOCALLY LOOKING AFTER
PACKAGING WASTE WITH SUPPLIERS FOOD WASTE SOURCED PRODUCTS EMPLOYEES
Using only what is necessary and recycling A good working relationship Ensuring good food is never wasted Supporting the local communities Happy, engaged colleagues provide great
Customers want it to be fit for purpose, Customers want to know we are acting Customers want us to reduce food waste and businesses surrounding our stores customer service
recyclable and made from recycled material as a responsible retailer, treating suppliers and where possible redistribute edible Our customers want us to stock their Customer service is driven by our
wherever possible. They want us to reduce fairly and with respect. They expect us to surplus to those that need it. They want favourite local products and brands. colleagues. Providing them with the right
the amount of packaging waste in our pay a fair price for the products we buy and us to work with our suppliers to help They want us to source as locally as training and support, treating them fairly
operations and in their homes. ensure a good working relationship. them reduce farm waste, through process possible and give them the option to and with respect has a positive impact on
improvement or by selling new products purchase products which support small their engagement and their interaction with
such as ‘Wonky Veg’ . They are increasingly suppliers and the local economy. customers and ultimately the service they
interested in ‘nose-to-tail’ eating. They also give our customers.
want us to help them reduce food waste
in their homes.
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 7
Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Our value chain Chief Executive introduction Customer insight survey Highlights Global context The SDGs Strategy
What we’ve achieved in 2018/19
CIWF V Taste 1,300
Good Egg
Award
45%
reduction in operational
£12m+
given to farmers
vegan range
launched tonnes of plastic saved
following the launch of our paper
carbon emissions through For Farmers range carrier bag
for our free range (2005 baseline) since launch in 2015
egg commitment
173m 100%
Retailer
of the
Year
£3.6m 3.4m
meals donated to charities and
plastic produce fresh British Morrisons branded raised for charity partner
community groups through
bags removed meat, milk and eggs CLIC Sargent
Food and Farming surplus food redistribution
from stores sold in our stores (2017/18: £3m)
Awards (2017/18: 1.5m meals)
£5.5m 2.45bn 9,000
tonnes of plastic
81% 140
donated to local causes through calories removed removed or made widely recyclable new local food makers
Morrisons Foundation from Morrisons branded recyclable from Morrisons branded selling products
(2017/18: £10m) products Morrisons branded plastic packaging in our stores
products
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 8
Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Our value chain Chief Executive introduction Customer insight survey Highlights Global context The SDGs Strategy
Understanding our changing world
It’s important that we recognise
Regulatory requirements Climate change and Population growth
and respond to the global challenges resource scarcity and urbanisation
The EU Non Financial Reporting Directive
and trends that society faces. requires companies to disclose relevant, useful Climate change is a direct result of human The world’s population is expected to reach over
From climate change and the finite resources of our information that is necessary to understand activity, from population growth, demand and nine billion people by 2050. It is also predicted
planet upon which we all depend on, to the human their development, performance, position consumption patterns increasing emissions into we will see a shift in the way the world lives,
rights of workers who produce the products we sell, and the impact of their activity. These include the atmosphere. It is already affecting the way moving from rural areas in favour of urban.
we understand the role we can play as a responsible environmental; social and employee matters; we live today, we see this through severe weather These changes could have potential impacts
business to respond to these challenges. respect of human rights; and anti-corruption patterns, rising temperatures and sea levels causing environmentally, socially and economically.
and bribery matters. The Modern Slavery Act food and resource scarcity and devastation Business impact:
requires commercial organisations supplying to communities. • Food security
goods or services to prepare and publish an • Increased agricultural production
Business impact:
annual Slavery and Human Trafficking Statement. • Security of food supply • Industrial adaptation
Business impact: • Loss of food quality through changing climate patterns • Pressure on finite resources
• Financial repercussions • Food price inflation • Price increases
• Reputational impact • Loss of livelihoods for Morrisons suppliers • Greater number of customers
• Stakeholder scrutiny and engagement • New markets • Increase in store openings
• Changing buying habits
Human rights Increasing transparency Demand for responsible goods Data security
As a business, we are accountable for ensuring Our stakeholders rightly expect us to be Customer awareness and demand for responsibly Customer and colleague privacy is extremely
that the human rights of the people that transparent about how we operate. They want made goods continues to grow. It’s our important. They rightly want to know exactly
make and sell our products are protected. access to our policies on topical issues and responsibility to ensure that the decisions we take what kind of information we collect and how
This includes fair working conditions, health and information on how strategic decisions are made about how we operate and where we buy from it’s used. It’s important that we are transparent
safety in the workplace, equal treatment and and how we are responding to business challenges. are made with care. It’s about taking responsibility about the data we keep, and the policies and
respect for the diverse communities in which Business impact: for as many stages of the production and supply procedures we have in place in order to ensure
we operate. • Reputational impact chain as we are able to control or influence. information security.
Business impact: • Stakeholder scrutiny and engagement Business impact: Business impact:
• Reputational impact • Change in productivity • Poorly managed supply chains and • Legal repercussions
• Exploitation of vulnerable workers in our management systems • Reputational impact
supply chain • Illegal activity • Poorly managed management systems
• Liability for illegal activity • Security of supply • Cost implications
• Poor quality goods • Robust management systems
• Greater transparency
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 9
Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Our value chain Chief Executive introduction Customer insight survey Highlights Global context The SDGs Strategy
Working towards a global agenda
Collaboration is the key to ensuring sustainable change.
Why is it important?
Our focus areas Our focus areas Our focus areas
The UN Sustainable Development Goals officially • Communities • Helping British suppliers • Helping British suppliers
came into force in 2015. The Goals universally • Our colleagues • Sourcing responsibly • Sourcing responsibly
apply to all and aim to end all forms of poverty,
fight inequalities, and tackle climate change on a
global scale. These Goals can’t be realised without
participation from all sectors including business.
We recognise the importance of these Goals
and the true value of collaboration in order to Our focus areas Our focus areas Our focus areas
create change. • Helping British suppliers • Reduce carbon and waste • Healthy customers
At Morrisons, we want to address these global • Sourcing responsibly • Reduce carbon and waste
challenges in a meaningful way that is relevant and • Healthy customers • Reduce food waste
• Communities • Sourcing responsibly
aligned to our business strategy. We’ve reviewed
our focus areas and ensured we are aligned to as
many Goals as possible. As the use of the Goals
develops we will adapt and build connections
Our focus areas Our focus areas Our focus areas
so that we stay connected to best practice
• Authenticity, provenance • Supplier working conditions • Helping British suppliers
where possible.
and safety • Our colleagues • Sourcing responsibly
• Our colleagues • Reduce carbon and waste
• Healthy customers
Our focus areas Our focus areas Our focus areas
• Our colleagues • Communities • Helping British suppliers
• Our colleagues • Sourcing responsibly
• Supplier working conditions • Reduce carbon and waste
Our focus areas Our focus areas
• Our colleagues • Reduce carbon and waste
• Reduce food waste
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 10Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Our value chain Chief Executive introduction Customer insight survey Highlights Global context The SDGs Strategy
Our Corporate Responsibility strategy
This Report provides details on our progress against our ten key focus areas, the challenges and opportunities
and how we are aligning to our customer insight survey results and towards a global agenda.
Supporting Authenticity, provenance Reducing, reusing and Reducing waste Reducing
British farmers and safety recycling plastic and emissions food waste
NEW
Working with our suppliers to Traceability and integrity Changing the way we Reducing operational impact Following the food waste
keep them competitive, profitable of the products we buy. use plastics on our products and creating efficiencies. hierarchy to reduce, reuse
and sustainable. and in our operations. and recycle.
p 12 p 14 p 16 p 18 p 20
Looking after our Sourcing Supply chain working Helping customers to live Supporting local
colleagues responsibly conditions healthier lives communities
Train, engage and retain Working with our suppliers to Protection of workers’ rights Helping our customers to make Supporting causes that
our people to provide great improve how they source their products and good relationships healthier choices. matter to our customers
customer service. with sustainability in mind. with suppliers. and colleagues.
p 22 p 24 p 26 p 28 p 30
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 11Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Supporting British Food safety Plastics Carbon and waste Food waste Our colleagues Source responsibly Supplier working conditions Healthier lifestyles Communities
Supporting British farmers
We know our customers care about OUR COMMITMENTS AND PERFORMANCE SUMMARY
buying affordable British products. Our approach
British farming is also essential to our We buy animals and whole crops direct from
£12m
British farmers.
business as it keeps supply chains
short and efficient. CIWF Good Egg Owning our own abattoirs, manufacturing and
It’s important that we support suppliers
Award packing facilities enables us to utilise the whole
animal and all of the crop, meaning farmers get
to create affordable and high quality Donated to a fair price and we’re reducing waste.
products for our customers. 100% fresh farmers through Our Farming Programme also works with
Morrisons branded meat, milk and eggs For Farmers range producers to promote profitable, responsible
100%
farming through collaboration and supply
are sourced from British farms. (2017/18: £9m raised)
chain initiatives.
British
own brand Retailer
fresh meat, milk of the Year at the “We are delighted that Morrisons will
and eggs Food and Farming be investing in Arla UK 360 across its
entire Arla milk supply meaning around
Awards 200 farmers will benefit from their
additional support.”
UN Sustainable Development Goals alignment
Arthur Fearnall
Board of Directors, Arla
All own brand
fresh shell eggs will be
Customer insight survey 2018/19 ranking
cage free by 2022
2 SUPPORTING BRITISH FARMERS (2017/18: 2nd) and ingredients by 2025
4 ANIMAL WELFARE (2017/18: 6th)
5 SELLING BRITISH PRODUCTS (2017/18: 7th)
9 SELLING LOCALLY SOURCED PRODUCTS (2017/18: 9th)
17 REDUCING ANTIBIOTICS IN FARMING (2017/18: 12th)
24 HELPING FARMERS TO REDUCE ON-FARM
EMISSIONS NEW
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 12Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Supporting British Food safety Plastics Carbon and waste Food waste Our colleagues Source responsibly Supplier working conditions Healthier lifestyles Communities
Supporting British farmers
continued
2018/19 activity Red Tractor standards Antibiotic use in farming We have upgraded our bolt-on audits for Red
All Morrisons branded fresh meat and milk is assured The UK livestock industry has reduced the amount Tractor Pork to include a requirement to provide
Morrisons farming programme more enrichment materials above the current Red
to Red Tractor standards which is the largest of antibiotics it uses by 40%. In our own supply chain,
We buy directly from 3,500 British farmers and food standards scheme in the UK covering animal as of 2019, no pigs coming to our abattoirs for our Tractor standard.
growers and we’re the only retailer with our own welfare, food safety, traceability and environmental fresh pork range have received a ‘critically important
livestock buyers. This gives us unique insight into the Dairy beef
protection. We are also members of the Red Tractor antibiotic’; other species groups only use ‘critical’
issues affecting farm production. Working with farmers, we process reared dairy bulls
Boards for Poultry and Produce, contributing to the antibiotics as a treatment of last resort. We monitor
through our abattoirs, preventing calves being killed
Our farming programme covers a broad range of ongoing development of standards for these species. antibiotic use in all species groups.
at birth or exported live for continental veal markets.
issues to keep British products competitive and farm We stand by the Responsible Use of Medicines in
360 scheme We have placed over 20,000 cattle on farm since the
businesses sustainable. We meet supply chain farming Agriculture Alliance’s definition of routine use of
We are the first retailer to sign 100% of our fresh scheme started in 2016. We are taking part in a best
groups in each sector regularly to discuss practical antibiotics and have asked our supply chain to ensure
milk supply to Arla UK’s 360 scheme, committing practice project for dairy beef rearing with the Royal
issues affecting suppliers and their concerns for they are not routinely using antibiotics when they are
to supporting high standards in animal welfare, Agricultural University and run a ‘best practice’ birth
the future. not needed.
environmental management, staff development to finish working group with our milk supplier, Arla,
Local Foodmakers and regional ranges and business resilience. The programme includes We are members of the British Retail Consortium’s calf company Buitelaar, Woodheads and Morrisons.
Our Local Foodmakers campaign searches for the veterinary support and mentoring as well as delivering working group on antimicrobial resistance and Recognition
best local suppliers and their products to stock in best practice standards in grazing, recycling of farm the IGD’s Strategic Steering Group for controlling Our activity to promote, support and strengthen
our stores. This allows customers to buy more local waste and using artificial intelligence in animal care. antibiotic use in the food supply chain. British farming was recognised by our receiving
food which is made within 35 miles of their local
Sponsorship Shorthorn beef ‘Retailer of the Year’ at the Food and Farming Awards
store. The campaign has introduced 140 new Local
For the second year running, we supported #Farm24 The British Shorthorn was once a protected rare breed. at the House of Commons in November 2018.
Foodmakers and 680 new products to Morrisons
online and through our social media channels. This We found from our research that the meat eating We received a ‘Good Egg Award’ from Compassion
stores across the UK.
year the event received over five million impressions quality of this breed was high. By offering to pay in World Farming in June 2018 for our work in bringing
We continue to promote regional ranges from on the day in its aim to increase awareness of the a premium for the British Shorthorn, this encouraged forward our commitment to only use eggs from
South West beef to Yorkshire pork and Welsh lamb British farming industry. farmers to invest in it. Shorthorn beef is now well hens not grown in cages. We also moved into Tier 2
to Scottish mackerel. We have opened business established in our ‘Best’ range and we continue in the 2018 Business Benchmark for the Farm Animal
opportunities for breeds and farm areas as part of to work with the society to grow breed numbers. Welfare survey.
our Best ranges including Hampshire pork, Dartmoor PROMOTING BRITISH FARMING We met a large group of our Shorthorn producers
lamb and ‘Bee Friendly’ Yorkshire eggs. We worked in Autumn 2018 to work through the challenge of
with Traditional Norfolk Poultry to launch a new We continue to sell 100% fresh British own brand antibiotic recording and measurements for the sector.
Marbury Red turkey for Christmas 2018. meat and milk in our stores throughout the year.
Supporting British farming contributes Animal welfare
to the UK economy, it means we’re Environmental enrichment WHAT’S NEXT
closer to source allowing us to secure
Environmental enrichment materials help animals
the best suppliers creating brand Continued environmental
integrity and trust amongst our
and birds express their normal rooting and nesting
behaviours. We have started research trials in the enrichment work into 2019-20
stakeholders.
broiler and laying hen sector to explore which Relaunch of regional ranges
enrichment materials would work better for birds,
in what quantities and why. Continued Local Foodmaker events
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 13Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Supporting British Food safety Plastics Carbon and waste Food waste Our colleagues Source responsibly Supplier working conditions Healthier lifestyles Communities
Ensuring food safety, quality and provenance
It is a priority that our products and OUR COMMITMENTS AND PERFORMANCE SUMMARY
services meet stringent food safety and Our approach
3rd year
legal standards. We set high standards for our own brand
This significantly reduces risk and meets All labels on our suppliers, manufacturing sites and stores to
ensure the delivery of safe and legal products
customer expectation for quality and value. pre-packed in-store that meet the demands of our customers.
We must source from suppliers we know produced products of Culture of All manufacturing sites of Morrisons own
and trust, providing clear transparency and contain allergy Excellence programme brand food and drink must meet our food
manufacturing standard and maintain
traceability back to source. advice on the label in manufacturing certification against the British Retail
(excluding single ingredient Consortium (BRC) Global Standard for Food
unprocessed meat) Safety, which is internationally recognised.
5,000+
supplier visits
by our ‘at source’
produce experts
UN Sustainable Development Goals alignment
Customer insight survey 2018/19 ranking
4th year
1 ENSURING FOOD SAFETY (2017/18 1st)
below FSA’s
retailer target on
15 ACCURATE PRODUCT LABELLING (2017/18: 16th)
campylobacter levels Allergens training
rolled out to all
colleagues in store
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 14Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Supporting British Food safety Plastics Carbon and waste Food waste Our colleagues Source responsibly Supplier working conditions Healthier lifestyles Communities
Ensuring food safety, quality and provenance
continued
2018/19 activity International ‘at source’ teams In 2018, we responded to FIIN recommendations Audits were completed at all 18 manufacturing sites
We have a team of ‘at source’ produce experts to up-weight our surveillance testing of organic with a 10% increase in colleague engagement seen
Traceability to farm products, oils, rice, wine and coffee. from 2017 to 2018 and the overall score increasing
helping us to work more effectively with farmers
Every fresh Morrisons branded meat product can in Spain, Chile, Holland, South Africa and Peru. year on year from 71 to 72%.
be traced back to source. Unique codes on packs Acrylamide
In 2018/19, our ‘at source’ team conducted over All sites are now working on their 2019 action plans
refer to the manufacturing site where it was Acrylamide is a chemical substance formed when
5,000 supplier visits. to further improve their site’s food safety and
processed and the farms that supplied the livestock. starchy foods, such as potatoes and bread, are
Recipe management cooked at high temperatures above 120°C. We have quality culture.
Campylobacter updated our Technical Policy for Acrylamide Control,
All Market Street recipes are being entered onto BRC Standard Version 8 which launched 1st February
Since 2013, we have been working hard to reduce Morrisons’ Recipe system. As well as improving to reflect legislation that came into force in April 2019 now also includes a clause covering food safety
campylobacter levels in fresh own brand chicken. the control of recipes, the system increases the 2018, and have verified that affected suppliers comply culture and sites are required to be taking action to
We have worked with our suppliers to implement robustness of the process to ensure allergens present with the new standards. We have worked with improve. Having been auditing, measuring and putting
a detailed Campylobacter Action Plan which has are correctly declared on product labels. It also stakeholders in Market Street and Cafe to ensure we actions in place to drive improvement since 2016 our
successfully reduced campylobacter levels in provides nutritional content and full ingredients lists are meeting legal duties and can show that acrylamide sites are in a great place to demonstrate compliance
our chickens. for each product. levels are as low as reasonably achievable. to this new clause.
Overall for 2018 only 0.4% of our chickens had the Horizon scanning
The Food Industry Intelligence Network (FIIN) Morrisons Supplier Microbiology Forum
higher levels of contamination from a total of 498
We are active members of the expert Technical We maintain an active horizon scanning programme. Our group of food safety experts, brought
chickens tested.
Steering Group which evaluates the ‘big picture’ Since January, this scrutiny has identified issues in together from of our supply base and our own
of all participant’s testing activity, addresses the industry including fraudulent treatment of low in-house expertise, have continued to share best
the vulnerability of specific categories and issues grade tuna to upgrade its visual appearance, illegal practices, identify industry issues and emerging
formal recommendations for increased vigilance. pesticides in tea, celery leaf in parsley and undeclared microbiological risks.
sugar addition to apple juice. This has allowed us
The forum has developed several valuable guidance
to determine our exposure to the issue and take
documents for our suppliers on practical food safety,
corrective action.
ALLERGEN INFORMATION including determination of safe shelf lives and on
Safe and legal compliance in store maintenance and monitoring of factory hygiene,
We have seen significant increased All of our in-store produced products We have also developed a new We are working with the Food Standards Agency which have been well-received by our supplier base.
awareness of allergens amongst our that are pre-packed contain allergy simplified procedure for managing (FSA) on Regulating our Future, which is a strategy
customers and colleagues as a result advice on the label (excluding single allergens which has been introduced to improve the way food businesses are regulated.
of the high profile Pret a Manger ingredient unprocessed meat). into store staff rooms. Within our The current model of food inspections is one size
case in 2018. We have developed a new eLearning Bakery department, ‘What Good
fits all. The FSA wants a flexible, risk-based approach
module for our stores on Allergens Looks Like’ modules have been
that is fit for the future and takes into account the
and Unauthorised ingredients. introduced to help prevent
changes in the food industry, such as online retailers 2019/20 AND BEYOND
mis-labelling incidents.
and food delivery services.
All Morrisons Market Street products,
Culture of Excellence
made in store will be entered on to the recipe
We ran the Culture of Excellence Audit programme management system
for the third year in manufacturing to access our
current food safety and quality culture and drive Continued work to reduce campylobacter levels
continuous improvement.
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 15Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Supporting British Food safety Plastics Carbon and waste Food waste Our colleagues Source responsibly Supplier working conditions Healthier lifestyles Communities
Reducing, reusing and recycling the plastic we use
Plastic has many useful properties OUR COMMITMENTS AND PERFORMANCE SUMMARY
across a number of industries. In food Our approach
174m
retail, it can play an important part in We have a responsibility to do the right
protecting and prolonging the shelf life of PEFC certified reusable thing for our customers. It’s important we’re
a product, helping to significantly reduce paper carrier bag moving towards a circular plastics economy
model; reducing, reusing and recycling
food waste. launch announced plastic produce where possible.
However, we know our industry needs bags removed Our ambition is to be a leading corporate
to urgently change the way it produces, in the fight to keep plastic in the economy
and out of the environment, to be an example
600
uses and disposes of plastic. By 2050, there of what good looks like to other corporates
will be more plastic in the ocean than fish. and to help more and more customers live
Stakeholder pressure to act on plastic their lives with less reliance on plastic.
continues to grow. The Government’s tonnes of unrecyclable
recent 25 year Environmental Plan and
Waste and Resources strategy has a clear
polystyrene removed from
focus on plastic waste and producer Morrisons branded products
responsibility.
9,000
UN Sustainable Development Goals alignment tonnes of plastic
removed or made widely
recyclable
“Morrisons’ work to reduce plastic
is a great example of how well the
81%
Customer insight survey 2018/19 ranking
company is serving its stakeholders and
2 REDUCING PLASTIC PACKAGING (2017/18 3rd) contributing to the UK Plastics PACT.”
Marcus Gover
6 REDUCING PACKAGING WASTE (2017/18: 4th)
Morrisons branded CEO, WRAP
18
plastic packaging is
ENCOURAGING RECYCLING (2017/18: 15th)
recyclable by weight
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 16Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Supporting British Food safety Plastics Carbon and waste Food waste Our colleagues Source responsibly Supplier working conditions Healthier lifestyles Communities
Reducing, reusing and recycling the plastic we use
continued
2018/19 focus branded suppliers on suitable alternatives to plastic Tackling marine litter External recognition
straws on cartons. Abandoned, lost and discarded fishing gear constitutes Morrisons was ranked the best for recyclable
Over the last year, 9,000 tonnes of Morrisons brand
In 2018/19 we trialled increasing the number of loose around 10% of all marine litter and continues to be packaging by the consumer group Which? following
primary packaging has been removed or made
fruit and vegetables on Market Street in three stores. a challenge for the fishing sector. We continue to an investigation into the recyclability of plastic
widely recyclable. be supporting members of the Global Ghost Gear packaging at supermarkets.
Working with WRAP and Defra, we’ve analysed
UK Plastic PACT the overall environmental impact of this initiative. Initiative which is helping to understand this issue and In July 2018, The British Growers Association
Morrisons was a founder member of the UK Plastics In addition to this trial, we’ve also have removed are engaging with stakeholders to help understand how published a survey on the packaging of fresh produce
PACT, a collaborative commitment which joins up plastic wrap from fresh swede, British summer season we can introduce best practice in our supply chains. in UK food retail. The survey used data from British
all stakeholders in the plastics system – businesses, cucumbers, asparagus and rhubarb. Grower’s Produce View market intelligence survey
Government, local authorities, environmental providing an independent overview of fresh fruit
organisations, and the wider public to ensure that and vegetable packaging type by category and
all plastic packaging will be recyclable, reusable or HELPING OUR CUSTOMERS TO REDUCE AND RECYCLE retailer. Findings from this survey revealed Morrisons
compostable by 2025. Within the Plastics PACT we over-trades in loose compared to its share of
Recycling information Carrier bags Reuse and refill the market.
are active members of Single Use Plastics, Citizens
Currently, 81% of Morrisons branded Alongside the removal of the To help our customers reduce
Engagement and Reporting working groups. Morrisons was placed 2nd out of 10 UK supermarkets
products are recyclable by weight. 5p plastic carrier bag, which has single use plastic on Market Street,
Details of our Plastics PACT commitments can be ‘Widely Recycled’ Morrisons branded removed 192m plastic bags per year, customers are able to bring their own in a survey conducted by the Environmental
found on page 35. products have increased by 3%. in early 2019 we also announced reusable containers to our Butchery Investigation Agency and Greenpeace on supermarket
We have also seen a reduction in the launch of our paper carrier bag and Fishmonger counters. plastics. The survey, believed to be the largest ever
Reducing the amount of plastic we use on ‘Recycle with carrier bags at larger option. These bags are 100% PEFC conducted among UK retailers, ranks supermarkets
our products We are trialling an initiative where
stores’ by 3% following our decision accredited, suitable for reuse and can based on the volume of single-use plastic packaging
customers can use refillable/reusable
25% reduction by 2025 to remove single use carrier bags ultimately be recycled at kerbside. they put into the market, their targets to reduce
containers at our Nuts, Seeds and
We announced our target to reduce own brand primary from our stores. For a full breakdown plastic packaging, and their approach to tackling
Loose produce paper bags Dried Fruit in two stores.
plastic packaging by 25% by 2025 against a 2017 baseline. of our plastic use, please refer to plastic pollution across their supply chains.
We have removed plastic bags We offer customers the option to
We will achieve this through a variety of methods page 35 of this Report. for loose fruit and vegetables and refill their water bottles in our stores
including packaging optimisation, ‘right-weighting’ It is a requirement that all own brand replaced them with paper bags in and have installed drinking fountains
or removal of unnecessary materials and innovation packaging must now carry On Pack all stores. This removes 174m plastic into our new stores to make this even
as well as concentrated and compressed packaging. Recycling Label (OPRL) labelling to bags, which is the equivalent of 269 easier. We promote this service in our
In 2018/19, we achieved a 5% like-for-like reduction in help our customers to easily identify tonnes of plastic. stores and on the mobile app, Refill.
plastic use. what can and can’t be recycled. Reverse vending machines #LeedsByExample
Removing problematic plastics We’ve also introduced new front- We are trialling reverse vending We were part of a behaviour change
WHAT’S NEXT?
of-pack recycling logos for plastic machines for plastic bottles and
We have removed expanded polystyrene across initiative called #LeedsByExample,
packaging suitable for products that drinks cans in three of our stores. Continued removal of problematic plastic
all Morrisons branded food and drinks products. which aimed to increase recycling of
can either be recycled at kerbside or Customers receive Morrisons More to complete target
During 2019, we will continue to phase out remaining on-the-go food and drink packaging
at recycling points in store. card points or can choose to donate
black plastic, expanded polystyrene and rigid PVC in the city of Leeds. Findings from Reduction of unnecessary plastic
across all our products. the cash alternative to our charity this initiative will be shared with
partner, CLIC Sargent for each Government to see how the most To increase visibility of OPRL on our products
We no longer sell boxed plastic straws or provide free container brought back. successful elements can replicated
plastic drinking straws to our customers in our cafes into other UK cities and towns.
Increase recyclability and recycled
or barista bars. This has removed over 65m plastic content in our products
straws from our stores. We’re working with Morrisons
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 17Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Supporting British Food safety Plastics Carbon and waste Food waste Our colleagues Source responsibly Supplier working conditions Healthier lifestyles Communities
Reducing operational general waste and carbon emissions
Climate change significantly affects OUR COMMITMENTS AND PERFORMANCE SUMMARY
our business through its impacts on Our approach
99.5%
agricultural yields, food prices and supply. We were the first major supermarket to be
awarded the Carbon Trust standard in 2008
It’s important that we minimise based on a range of activity at the time which
environmental risks to our business, we continue to this day.
protect natural capital and create store waste diverted Reducing our impact is part of good
efficiencies. As a food maker it is also from landfill shopkeeping. It makes sense not only from
an environmental perspective, it also ensures
important that we show respect and
efficiency throughout our operations.
value for the food we serve to our
customers, whilst operating efficient
supply chains. Energy efficient fridge
45% doors fitted in new and
refurbished stores
reduction in operational
carbon emissions
(2005 baseline)
UN Sustainable Development Goals alignment
Continued rollout
of CO2 refrigeration
“Corporates have a significant role to
Customer insight survey 2018/19 ranking play on climate change. It’s good to see
that Morrisons have taken a long term
5 REDUCING PACKAGING WASTE (2017/18: 4th) view and are now looking to align their
carbon emissions to climate change by
15 ENCOURAGING RECYCLING (2017/18: 15th) following a science based pathway.”
21 REDUCING OUR CARBON FOOTPRINT (2017/18: 18th)
Voltage optimisation Mark Reynolds
and LED lighting rollout Carbon Trust
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 18Contents Strategy and approach Our focus areas Why it matters Performance summary Assurance
Supporting British Food safety Plastics Carbon and waste Food waste Our colleagues Source responsibly Supplier working conditions Healthier lifestyles Communities
Reducing operational general waste and carbon emissions
continued
2018/19 activity Trim control Logistics • New fleet investment: This year we have replaced
We have installed trim heat control boxes to our Within logistics, we are undertaking a number 50 units with the latest Euro 6 technology, these
Voltage optimisation and LED new units have shown a much-improved miles
frozen cases in six stores, with a plan to rollout to of activities designed to reduce the distance we
We are rolling out voltage optimisation units a further 200 stores in 2019/20. Trim heaters have travel and the fuel we burn while delivering food to to the gallon. Over two thirds of the fleet is now
and LED lighting upgrades across retail, logistics been fitted to frozen food cabinets of both full and our stores. equipped with this latest technology.
and manufacturing. We have installed voltage half glass door cabinets. The heaters reduce power • Network efficiency: Between sites, we have
optimisation units at 46 stores where we are achieving These initiatives include:
consumption when installed, reducing the demand awarded the transport operations for our National
approximately 4% savings in electricity consumption. for heat around the frozen glass doors. • Trip reduction: By increasing the use of Double Distribution centre to Eddie Stobart Ltd. Working in
We have also upgraded lighting from fluorescent Deck trailers and maximising the vehicle fill on our partnership we have been able to increase the
to LED or improved lighting control in 46 stores. Remote monitoring Extended Length trailers we have been able to efficiency of inter-depot transport leading to better
Additionally, LED lighting is upgraded through our We have set up two remote functions to control reduce the number of trips we make to stores to use of trucks and trailers on the roads.
store fresh look programme. energy usage across our refrigeration and heating deliver the same volume. We continue to be the
ventilation and air conditioning systems in retail. largest operator of extended trailers in the UK and Waste in stores
Refrigeration are actively seeking partners who operate similar We aim for zero waste direct to landfill in our
The teams use real-time data and asset alarms to solve
34 stores across the estate now have fridges fitted issues quickly, have close control of performance and assets to support our operations. stores. We operate a strong reduction and recycling
with doors to reduce energy consumption, with usage and trial new ways to save energy. This allow us • Driving styles: By using our vehicle telematics programme treating waste as a resource and work
estimated energy savings of around 30-40%. We will to move towards predictive maintenance and remove system we have improved the average miles to with our waste contractors to maximise reprocessing.
continue to rollout fridges with doors in new and wasted effort for our colleagues. the gallon of our drivers by reducing harsh braking,
refurbished stores where possible. Alongside fridge 2018/19 store waste and recycling breakdown
acceleration and engine idling time. Material Tonnes
doors, we replaced full refrigeration with more
efficient equipment in 21 stores as part of our store Card 102,921
refurbishment programme. We also have 26 stores Confidential paper 535
SCIENCE-BASED TARGET
with full CO2 refrigeration. Mixed plastics 6,797
We need to take urgent action Our stakeholders want us to continue way to reduce operational impact Animal by-product (ABP) 4,357
Shelf edge technology on climate change. to reduce our impact and align to and demonstrates our commitment Light tubes 1
We have installed shelf edge technology in five science-based metrics. Following the to contribute to the global goals set Oil 4,002
According to the UN, without
of our stores. Devices are fitted to open fronted significant action the increase in the success of our reduction target to out in the Paris Agreement in 2015 to Other recyclables 3
fridges, one of the largest energy using appliances world’s average surface temperature reduce operational carbon emissions keep a global temperature rise this Diverted trade waste 55,725
in store. The device is an aerodynamically-profiled is likely to surpass 3 degrees by 30% by 2020 (2005 baseline), which century well below 2 degrees above Total recycled/reprocessed waste (99.5%) 174,341
blade drawing the cold air curtain back into the centigrade this century. has seen a reduction of 45%, we have pre-industrial levels and to pursue
Landfill (0.5%) 1,003
fridge, reducing cold-air spill, energy consumption been working with the Carbon Trust efforts to limit the temperature
We are already seeing the effects Total waste produced 175,344
and improving aisle temperatures. We are expecting to set a science-based target. increase even further to 1.5 degrees.
of climate change in every country,
energy savings of between 10 – 15% through the use A carbon emissions target is defined From a business case perspective
Oceans are warming, snow and ice
it also makes sense, as it builds NEXT STEPS
of this technology. Trials are in place to monitor the have diminished and sea levels have as science-based if it is in line with the
success of this technology with the view to installing scale of reductions required to keep resilience for our business, creates
risen. As a result, we continue to Science based target launch
across our estate. global temperature increase well efficiencies and drives innovation.
see extreme weather conditions,
loss of biodiversity and wildlife and below 2°C compared to pre-industrial We will announce further details of Continued CO2 refrigeration installation
increases in food insecurity typically temperatures. We believe that setting our new target on our website later
a science-based target to reduce our in the year. Improved supplier relationships: control over usage
affecting the world’s poorest regions.
direct emissions creates a meaningful and trialling new ways to reduce consumption
Wm Morrison Supermarkets PLC Corporate Responsibility Report 2018/19 19You can also read
