TRANSFORMATION UNDERWAY - PLAN A REPORT 2018 - Marks and Spencer corporate

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TRANSFORMATION UNDERWAY - PLAN A REPORT 2018 - Marks and Spencer corporate
TRANSFORMATION
   UNDERWAY

    PL AN A REPORT
          2018
TRANSFORMATION UNDERWAY - PLAN A REPORT 2018 - Marks and Spencer corporate
OVERVIEW   PLAN A   WELLBEING   COMMUNITY   PLANET   ABOUT PLAN A   FRAMEWORKS AND ASSURANCE                                               M&S PLAN A REPORT 2018     01

                                                                                       INTRODUCTION

                  Our customers’ world is changing fast.
             They are living through a period of great political,
                     social and technological change.
                                   THEY’RE LOOKING FOR ORGANISATIONS THEY CAN TRUST TO OFFER LEADERSHIP, NOW AND IN THE FUTURE.
                                  MARKS & SPENCER HAS BEEN AT THE FOREFRONT OF SOCIAL CHANGE FOR 134 YEARS, AND WE’RE DETERMINED
                                                            TO PLAY A LEADING ROLE IN THE YEARS AHEAD.

OVERVIEW                                         PILLAR 3: PLANET                                                                 GROUP PERFORMANCE
01	
   Introduction                                  24	    Introduction

                                                                                                                                  81,000
01 Group performance                             25 - 26	
                                                         Inspiring our customers                   GROUP REVENUE            KPI   EMPLOYEES WORLDWIDE

02	
   Chief Executive’s introduction

PLAN A
                                                 27	    M&S greenhouse gas emissions
                                                 28 - 29	
                                                         Energy consumption and sourcing
                                                                                                   £10.7bn
                                                 29 - 30	
                                                         Refrigeration                             +0.7%
03 - 05	Introducing Plan A 2025
                                                 30	    Store climate adaptation
06 - 07	 Helping to make M&S special again                                                       GROUP PROFIT BEFORE TAX         EMPLOYEE ENGAGEMENT SCORE
                                                 30      Supply chain greenhouse gas emissions                              KPI

                                                                                                  £66.8m                          82%
08	      How we create value
                                                 31	    Zero waste in M&S operations
09 - 10	 Our commitment to human rights
                                                 32	    Water consumption
11	      Performance summary                                                                     -62.1%                          +2% on LY
                                                 32 - 34	
                                                         Supply chain raw materials
PILLAR 1: WELLBEING                              34	    Suppliers
                                                                                                  GROUP PROFIT BEFORE TAX   KPI   NUMBER OF SUPPLIERS GLOBALLY   CO2e EMISSIONS NET

                                                                                                                                  2,100                          Zero
12 Introduction                                  ABOUT PLAN A                                     AND ADJUSTED ITEMS

13 Healthy food products
14	
   Clothing & Home products
                                                 35 - 36	
                                                 37
                                                         Understanding this report
                                                         Stakeholder relationships
                                                                                                  £580.9m                                                                               tonnes
14	
   How we sell                                                                                    -5.4%
                                                 38 - 39	
                                                         Governance
15	
   Colleague wellbeing                                                                                                                                           CO2e GROSS
                                                 40      Jonathon Porritt’s letter

                                                                                                                                                                 430,000
15	
   Supply chain wellbeing
                                                 40	    Human Rights Stakeholder Advisory
                                                         Group                                                                                                                            tonnes
PILLAR 2: COMMUNITY
16	    Introduction
                                                 41	    Independent recognition                                                                                 -10%
17 - 18	
        Connecting with communities              FRAMEWORKS AND ASSURANCE                                                                                        PER 1,000 SQ FT

                                                                                                                                                                 23
18 - 19	
        Skills and employment                    42 - 43	
                                                         UN SDGs, GRI and Global Compact
19 - 21	
        Inclusive business                       44 - 45	
                                                         Independent assurance statement                                                                                  tonnes
21 - 23	
        Human rights
                                                                                                                                                                 -4%
	
TRANSFORMATION UNDERWAY - PLAN A REPORT 2018 - Marks and Spencer corporate
OVERVIEW    PLAN A     WELLBEING     COMMUNITY     PLANET    ABOUT PLAN A      FRAMEWORKS AND ASSURANCE                                                     M&S PLAN A REPORT 2018    02

                                                                                       CHIEF EXECUTIVE’S INTRODUCTION

                                              WE ARE LISTENING TO OUR CUSTOMERS

THE FIRST YEAR OF PLAN A 2025
                                                                                                                                                                         WHAT CUSTOMERS HAVE TOLD US

Every aspect of the retail sector is being disrupted.   So when we updated Plan A in June 2017, we              We also engaged directly with our employees, with
The shift to online shopping, the focus on price,       shaped it around three bold goals to be achieved        our stores getting stuck into new community              –	How customers define themselves
the growing importance of services rather than          by 2025: to help 10 million people live happier         projects. More than 90% of our colleagues who               Customers now define themselves more
physical products, the rising use of automation         and healthier lives; to help transform 1,000            took part in these projects told us this made them          in terms of attitude than age. We can
and robotics, the personalisation of products –         communities; to become a zero-waste business.           feel more engaged with the business.                        help them get the most out of life,
no shortage of challenges.                              One year on from launch, these goals seem even                                                                      no matter how young or old they are.
                                                                                                                No illusions here: we’re a very down to earth
                                                        more relevant, and we’ve made steady progress
And that means we have to keep on transforming                                                                  retailer, and I would describe these achievements        – Meaningful connections
                                                        towards them.
business, in a timely and cost-effective way, even                                                              as no more than small steps along the road. But            Customers want more meaningful
as we put the highest priority on our strong social,    But for me, success is about more than the              they’ve given us some real momentum around                 connections with other people and
ethical and environmental values. Plan A 2025 is at     number of commitments we’ve met. It’s about             engagement. We’ve known for a long time that we            with the world around them.
the very heart of what we’re doing here. It’s helping   the bigger picture – engaging our customers             had to do better in addressing these challenges,
us to stay relevant with our customers as they seek                                                                                                                      – Making a difference
                                                        and integrating Plan A 2025 into how we do              without putting all our energy into technical
greater value, quality and ethical performance                                                                                                                             Customers want us to make it easier for
                                                        business. And on both these strategic fronts            delivery, internal target-setting and so on.
from retailers.                                                                                                                                                            them to do the right thing and make
                                                        we’ve also made progress, though I’m the first
                                                                                                                The past year has been incredibly fluid – politically,     a difference.
                                                        to acknowledge that things do not always move
We’re proud of the fact that Plan A is regarded so                                                              economically, socially, technologically and
                                                        as fast as we would like.                                                                                        – Tackling injustice
highly by our external stakeholders – which keeps                                                               environmentally. And I think we can pretty much
                                                                                                                                                                           They’re increasingly aware of injustice,
the pressure on us to keep on raising our game!         In June 2017, we launched a major customer              guarantee that it’s going to stay that way for the
                                                                                                                                                                           particularly at a local level, and these
But it also matters enormously to me that our           engagement programme to share our Plan A story          foreseeable future.
                                                                                                                                                                           issues are the ones customers also feel
people, throughout the company, have come to            in-store, via our digital retail channels and social
                                                                                                                But one thing is clearer now than ever before: in          empowered to tackle.
recognise Plan A as a critical part of our purpose,     media. The response from our customers was
                                                                                                                this turbulent and volatile world, Plan A 2025
vital to the way we’re seen by our customers.           hugely encouraging – for example, we achieved                                                                    – Scrutinising businesses
                                                                                                                provides the deep social purpose we need to
                                                        our highest ever ‘open’ rate for an email telling the                                                              Customers expect that businesses will
And vital too for our shareholders, enabling us to                                                              ‘anchor’ the M&S brand for customers and
                                                        story of what our stores are doing in their local                                                                  be highly scrutinised to ensure they do
redefine our cost base, driving out waste in all its                                                            colleagues alike, giving practical expression to
                                                        communities. This was sent to six million Sparks                                                                   the right thing – but also hope that
forms from our operations and supply chains.                                                                    the enduring values that underpin everything
                                                        card customers.                                                                                                    retailers will use their power to promote
It’s also future-proofing our business model in                                                                 this company does.
                                                                                                                                                                           wider changes for good in society.
anticipation of rapid shifts in social expectations,
regulation, investors’ appetite for risk, market                                                                                                                         – The quality of products
competition – and even changing weather                                                                                                                                    Our customers value quality – they really
patterns.                                                                                                                                                                  care about how products are made.

                                                                                                                STEVE ROWE CHIEF EXECUTIVE

     We remain committed to the Principles of the UN Global Compact
TRANSFORMATION UNDERWAY - PLAN A REPORT 2018 - Marks and Spencer corporate
OVERVIEW    PLAN A    WELLBEING   COMMUNITY   PLANET    ABOUT PLAN A   FRAMEWORKS AND ASSURANCE                                                      M&S PLAN A REPORT 2018    03

                                                                           SUSTAINABLE BUSINESS DIRECTOR’S OVERVIEW

                                                                    INTRODUCING PLAN A 2025

“Plan A 2025 moves us on another step towards                                                           WHY PLAN A 2025 AND WHY NOW?

  becoming a sustainable business.”                                                                      We launched Plan A 2025 in June last year.
                                                                                                         Our Plan A 2020 commitments were coming to
                                                                                                                                                               Many communities will take this transformation
                                                                                                                                                               in their stride, but for some, losing the traditional
MIKE BARRY SUSTAINABLE BUSINESS DIRECTOR                                                                 their conclusion and we were clear that our future    high street shops that have anchored the community
                                                                                                         activities needed more ambition, a faster pace        for decades presents a significant social challenge.
                                                                                                         and greater scale. It was important for us to put
                                                                                                                                                               Transparency, once a matter of choice for some
                                                                                                         our customers at the heart of our thinking and
                                                                                                                                                               businesses, is increasingly becoming a basic social
                                                                                                         so we designed Plan A 2025 to meet their future
                                                                                                                                                               expectation, prompting greater public debate
                                  THE THREE PILLARS OF PLAN A 2025                                       needs. We recognised that after 10 years of
                                                                                                                                                               and accelerating action on issues such as the
                                                                                                         incremental change, we needed to become more
                                                                                                                                                               gender pay gap and modern slavery. An equally
                                                                                                         disruptive and transformative; that we needed
                                                                                                                                                               vociferous national debate has been sparked by
    NOURISHING                          TRANSFORMING                    CARING FOR                       to imagine the world in 2025 and change our
                                                                                                                                                               Sir David Attenborough’s Blue Planet II documentary
                                                                                                         business accordingly, rather than focusing on
    OUR WELLBEING                       LIVES AND                       THE PLANET                       the next two or three years.
                                                                                                                                                               series, which highlighted man-made threats to the
                                        COMMUNITIES                     WE ALL SHARE                                                                           world’s oceans, such as overfishing, acidification,
                                                                                                         After extensive consultation during 2016 and 2017,    and most significantly, our use of plastic.
    We believe that taking care of      We believe we can achieve       We believe we should leave       we crystallised the latest version of Plan A under
                                                                                                                                                               If all these issues were not enough to deal with, the
    ourselves is the first step to       more together than we can       the planet better than we        three pillars, supporting three main goals: helping
                                                                                                                                                               retail industry is also experiencing rapid change
    helping the people around us.       on our own.                     found it.                        10 million people live happier, healthier lives;
                                                                                                                                                               and M&S has embarked on a new transformational
                                                                                                         transforming 1,000 communities; and becoming
                                                                                                                                                               business strategy. Launched in November 2017,
                                                                                                         a zero-waste business (see left).
                                                                                                                                                               this focuses on taking three steps: restore the
                                                                                                         The past year has shown that the future social and    basics; shape the future; and (within the next four
                                                                                                         environmental issues we anticipated and set out       years) make M&S special again. You can read more
                                                                                                         to address in Plan A, are now playing out in our      about how Plan A will support each of these steps
                                                                                                         customers’ lives, in government regulation and        on pages 6 and 7. We are accelerating our plans
                                                                                                         in business.                                          to make M&S special again through sustainable,
                                                                                                                                                               profitable growth as a business that makes a
                                                                                                         2017 saw the introduction of a new sugar tax,
                                                                                                                                                               positive impact on our customers’ wellbeing,
                                                                                                         heightened media focus on the NHS, and a
                                                                                                                                                               communities and the planet. Plan A has always
                                                                                                         growing incidence of mental illness – all of which
      OUR GOAL                             OUR GOAL                      OUR GOAL                                                                              provided a bridge between our customers’
                                                                                                         show how the debate about caring for a growing,
                                                                                                                                                               lives and M&S. Through Plan A we anticipate and
      Our goal is to help                  Our goal is to help           Our goal is to become           ageing population is fast becoming part of
                                                                                                                                                               respond to the shifting forces that shape our
      10 million people live               transform 1,000               a zero-waste business.          our customers’ lives. Similarly, the widely
                                                                                                                                                               customers’ lives: we spot and reduce emerging
      happier, healthier lives.            communities.                                                  reported demise of traditional high street
                                                                                                                                                               risks; we find new ways to satisfy their needs and
                                                                                                         retail, points towards a very different future
                                                                                                                                                               support their aspirations. The insights we’ve gained
                                                                                                         for local communities.
                                                                                                                                                               have inspired Plan A 2025.
TRANSFORMATION UNDERWAY - PLAN A REPORT 2018 - Marks and Spencer corporate
OVERVIEW      PLAN A   WELLBEING    COMMUNITY      PLANET    ABOUT PLAN A      FRAMEWORKS AND ASSURANCE                                                         M&S PLAN A REPORT 2018   04

                                                                     SUSTAINABLE BUSINESS DIRECTOR’S OVERVIEW CONTINUED

WHAT STAKEHOLDERS HAVE TOLD US                         WHAT’S DIFFERENT ABOUT PLAN A 2025?
                                                       The aims of Plan A 2025 are to:                         Achieve a science-based target to accelerate             By 2025, every factory producing products for us
 – How we can impact people’s lifestyles                                                                       our shift to a low carbon business                       will be systemically improving its environmental
                                                       Be the world’s leading retailer on engaging
   M&S can play a bigger role in enabling more                                                                 The new plan includes a bold new (approved)              and ethical performance.
                                                       and supporting customers in sustainable living
   sustainable, healthy lifestyles.                                                                            science-based target to further improve the
                                                       Our customers want us to help them live more                                                                     Ensure our 50 key raw materials (80% by
 – Our focus                                                                                                   efficiency of our own operations as well as cutting
                                                       sustainably and we’ve made good progress over                                                                    volume of what we use) come from a
   Plan A 2025 must focus on our customers                                                                     13.3m tonnes of CO2e from our wider value chain.
                                                       the past 10 years. However, there is much more                                                                   sustainable source
   and be integrated into our brand purpose.                                                                   We will also continue to invest in carbon offsets
                                                       we can do and Plan A 2025 will see us fully                                                                      Many of the raw materials we use today come
 – Future areas of interest
                                                                                                               for our own operations in order to remain
                                                       integrate sustainability into our brand and                                                                      from more sustainable sources. With Plan A 2025,
   There are big opportunities to be explored in                                                               carbon neutral.
                                                       deliver a step change in the way we engage                                                                       we are extending our commitment to a much
   the circular and sharing economies.                 and support our customers.                              Champion human rights by taking a lead on                greater range of the raw materials we use. We are
 – The importance of sustainability                                                                            addressing in-work poverty, modern day slavery           setting a goal that 100% of the key raw materials
                                                       Help 10 million people live happier and
   We must continue to focus on incorporating                                                                  and an inclusive society                                 we sell will come from sources respecting people,
   sustainability in our supply chain. Key issues      healthier lives
                                                                                                               Plan A 2025 sees a decisive step change on social        communities, planet and animal welfare.
   include living wage, conserving water and           We will extend the work we’ve done on our food
                                                                                                               issues. We have worked hard to manage ethical
   improving communities. We should also               products to our clothing, home and beauty                                                                        Be a circular business generating zero waste
                                                                                                               compliance over the last decade, but now we’re
   focus on more sustainable packaging.                offers too. We will have a particular focus on                                                                   Since 2012, we have been zero waste to landfill
                                                                                                               setting more aspirational goals to respect and
 – The importance of local communities                 addressing issues of mental wellbeing, ensuring                                                                  across our own operations in the UK and Republic
                                                                                                               positively impact individual human rights in all
   We should use our significant physical retail       people are connected and happy as well as                                                                        of Ireland. Plan A 2025 sets a bold new goal to be a
                                                                                                               that we do.
   presence to play a greater role in connecting       physically healthier. We will also work hard to                                                                  zero-waste business across all that we do – our
   initiatives at a local level.                       ensure we support our customers and colleagues          Ensure 100% of our products address 100% of              operations, our supply chains and of course when
 – How we can improve our communication                with cancer, heart disease, dementia and mental         their material social and environmental impacts          our customers come to remove packaging and
   We should increase collaborations,                  health issues.                                          We have an existing commitment that every one            use our products. This includes designing our
   partnerships and advocacy to ensure the                                                                     of the 3 billion food, clothing, home and beauty         products and packaging to underpin the creation
                                                       Help transform 1,000 communities
   M&S voice is heard more clearly.                                                                            products we sell every year has at least one Plan A      of a circular economy in the markets we serve.
                                                       We have a long tradition of our stores, offices
 – The example we need to set
                                                                                                               attribute by 2020. An attribute being, for example,
                                                       and warehouses supporting their neighbouring
   We’re expected to be transparent and are                                                                    Fairtrade certified tea or coffee or FSC certified
                                                       communities. In Plan A 2025, we are going to bring
   encouraged to talk even more frankly about                                                                  timber in furniture. We believe it’s vital that Plan A
                                                       together these many individual activities to
   the challenges we face and our failures.                                                                    should apply to everything we sell and not be a
                                                       ensure that our stores are able to help play a
                                                                                                               niche ‘ethical range’ in the corner of a store.
 – How Plan A will need to adapt                       transformative role in the communities we serve,
   Plan A 2025 must set a consistent direction of      many of which face enormous challenges.                 Ensure 100% of factories are on a sustainability
   travel – towards becoming a truly sustainable                                                               ladder with 50% of our products coming from
   retailer, for example – but will also need to       Be a leader on transparency
                                                                                                               our highest Gold Standard
   evolve in response to a changing world.             Over the past two years, we have published digital
                                                                                                               Currently, every factory that supplies M&S food
 – The role of responsible businesses                  transparency maps identifying all the factories
                                                                                                               is on a Bronze/Silver/Gold sustainability ladder to
   Responsible companies should develop social         that produce food, clothing, home and beauty
                                                                                                               drive measurable improvements in its social and
   and environmental targets that support              products for us. With Plan A 2025, we’ll add
                                                                                                               environmental performance. We are now making
   the overall aims of the UN Sustainable              information on the raw material sources we use
                                                                                                               the same commitment for factories producing
   Development Goals.                                  and also translate this into ‘on product’ information
                                                                                                               our clothing, home and beauty products as well
                                                       to help guide our customers’ decision making.
                                                                                                               as factories and suppliers to our Property Division.
TRANSFORMATION UNDERWAY - PLAN A REPORT 2018 - Marks and Spencer corporate
OVERVIEW     PLAN A     WELLBEING   COMMUNITY      PLANET     ABOUT PLAN A   FRAMEWORKS AND ASSURANCE                                                      M&S PLAN A REPORT 2018   05

                                                                     SUSTAINABLE BUSINESS DIRECTOR’S OVERVIEW CONTINUED

                                                                                                                                                                      Read more about the Plan A Committee on page 39

LOOKING BACK OVER THE FIRST YEAR OF PLAN A 2025
Key highlights                                         We’re making good progress with our community        Plan A 2025 progress so far                           In 2017, we launched a new internal Governance
In June 2017, we celebrated 10 years of Plan A         transformation programme. Having listened closely    Since we launched Plan A 2025 in June 2017, we’ve     process for Plan A, which centres on a single
under the banner of Making Every Moment Special        to the needs of the 10 pilot communities, we now     made steady progress, but clearly, an eight-year      Plan A Committee in place of the previous
in the Community. Thousands of M&S colleagues          have detailed action plans and a measurement         transformation plan for a business of our scale       two-tier approach. This new Committee reports
across the UK and ROI volunteered to help              system in place focused on the areas of education    and complexity was never going to deliver             into the overall Operating Committee (see page 39
hundreds of community projects. Throughout             & employability and social wellbeing. We are also    immediate results. Out of our 100 commitments,        for further details). Throughout the year, we’ve
the year our stores raised over £1m for local          playing an active role with the Business in the      we’ve achieved two (on International Marks &          worked closely with our Governance and Internal
charities of the year, we distributed over a million   Community Place leadership team. This activity       Start and Franchise Reward Forums) and 48 are         Audit colleagues to improve our governance
meals to local organisations near our stores,          is shaping the way we’ll deliver a number of our     satisfactorily On plan. Thirty-seven are shown as     process, including the sign-off procedures for
and 130,000 customers voted for 25 community           other people and communities commitments             Not started because they don’t yet have a defined     this report.
energy schemes to receive funding from                 – on inclusion, wellbeing, employability and         delivery plan, but in many cases the groundwork
                                                                                                                                                                  The year ahead for Plan A
M&S Energy.                                            volunteering. For our commitments on sustainable     is underway. Thirteen commitments are reported
                                                                                                                                                                  The first stage of restoring the basics will be
                                                       sourcing, we’ve been working with others             as Behind plan. Some of these, such as UK & ROI
In August, our Clothing & Home colleagues                                                                                                                         delivered by the time we report next year.
                                                       and are encouraged to see that more than             energy efficiency and Clothing & Home fleet
launched a range of Sustainable selvedge                                                                                                                          These include key actions to inform our customers
                                                       60 companies have joined us by signing up to the     efficiency, are being affected by the way our
denim jeans. Like much of our cotton, these jeans                                                                                                                 about Plan A product attributes and on rewarding
                                                       statement of support for the Cerrado Manifesto,      business is growing. More energy intensive food
support the Better Cotton Initiative but also score                                                                                                               choices of healthier food.
                                                       calling for sustainable soy production.              footage is disguising progress on energy efficiency
21 using the Jeanologia Environmental Impact
                                                                                                            and the shift to online sales is slowing Clothing     We’ll also be within touching distance of achieving
Measurement, which classifies low impact as being      Action on plastic
                                                                                                            & Home fleet efficiency figures. Others that          our longer-running commitments on Product
anything under a score of 33. These are probably       In April 2018, we became a founding member of
                                                                                                            are Behind plan are dependent on us finding           Plan A attributes, energy efficiency, food waste
the most sustainable items of clothing that M&S        the UK Plastics Pact to ‘transform the UK plastic
                                                                                                            innovative, cost-effective ways to implement          and zero deforestation, which are all due for
has ever sold.                                         packaging sector’ and in addition to our Plan A
                                                                                                            them. Overall, we’re where we planned to be at        completion in 2020.
                                                       2025 commitments we announced plans to
In September, we announced that M&S is the first                                                            this stage, but have a lot more work to do over
                                                       replace 75 million items of plastic cutlery and                                                            Finally, we’ll need to stay alert to new and
major food retailer to have all its milk producing                                                          the next 12 months.
                                                       2 million plastic straws and remove plastic from                                                           developing issues and to track how changes in
dairy farms assured by the RSPCA for animal
                                                       450 million tea bags.                                Governance                                            the wider retail marketplace impact on our plans.
welfare. Milk was the first of our raw materials
                                                                                                            Plan A 2025 was co-created by colleagues and
to feature on our interactive supplier map.
                                                                                                            leaders from across M&S, who collectively signed
The theme of Plan A 2025 is transformation                                                                  up to our ambitious targets. In addition, we
and a number of specific commitments are                                                                    identified the need to simplify and strengthen
disproportionately important for us in                                                                      Plan A governance, taking into account the impact
understanding how we achieve greater                                                                        of our business-wide transformative plan and new
scale and impact.                                                                                           leaders joining the business.                         MIKE BARRY SUSTAINABLE BUSINESS DIRECTOR

To engage our customers we’re putting Plan A                                                                We invested time in anchoring the foundations of
at the heart of our Food and Clothing & Home                                                                Plan A 2025, to ensure clear accountability and
brand strategies for the next three years, while                                                            responsibility for every commitment – only then
also testing many different approaches to local                                                             did we proceed to the delivery phase.
engagement and the use of digital tools to
connect with customers.
TRANSFORMATION UNDERWAY - PLAN A REPORT 2018 - Marks and Spencer corporate
OVERVIEW    PLAN A    WELLBEING   COMMUNITY    PLANET      ABOUT PLAN A   FRAMEWORKS AND ASSURANCE                                                 M&S PLAN A REPORT 2018   06

                                                                                 PLAN A 2025 & OUR STRATEGY

                                           HELPING TO MAKE M&S SPECIAL AGAIN

                              TRANSFORMATION TIMEFRAME

STARTING AFRESH                                                                                         STEP ONE
In November 2017, we launched a new plan to accelerate
the transformation of our business with the aim of
                                                                                                        RESTORING THE BASICS                                                                 1

making M&S special again through sustainable, profitable
growth that delivers value for customers, colleagues,                                                   Over the next 12-18 months we want to build on    CUSTOMERS
shareholders, communities and planet alike.                                                             the legacy of over 10 years of Plan A progress.
                                                                                                                                                          – Bringing Plan A product attributes to life
                                                                                                        We want our customers to choose M&S products        Showcasing the M&S difference of how we
We have always recognised that our sustainability
                                                                                                        and services because they’re informed about         source our products.
activities have to be central to how we do business.
We have to make sure that Plan A 2025 is aligned                                                        the healthier and more sustainable options
                                                                                                                                                          – A bigger role for Plan A in communication
with our Business Transformation Plan. We are in the                                                    we offer.
                                                                                                                                                            Both in how we market our brands and
process of ensuring that Plan A is aligned with this                                                    We need our colleagues to be fully involved in      drive innovation to meet the needs of
new corporate strategy.                                                                                 developing and promoting the business.              our customers.
                                                                                                        And we need to find ways for our operations and   – Building trust
                                                                                                        supply chains to become even more efficient.        Reducing risks through robust governance,
                                                                                                                                                            systems, compliance and partnerships.

                                                                                                                                                          COLLEAGUES
                                                                                                                                                          – Using Plan A for even greater engagement
                                                                                                                                                            To build our relationships with the
                                                                                                                                                            communities around us and contribute to
                                                                                                                                                            the development of an inclusive business
                                                                                                                                                            able to attract the best talent.

                                                                                                                                                          EFFICIENCY
                                                                           STEP THREE                                                                     – Driving down costs by cutting waste
                                                                                                                                                            Through focusing on energy and food waste.
                                            STEP TWO
                                                                        MAKING
                                                                                                                                                          – Reducing risks and increasing productivity
                                                                      M&S SPECIAL
          STEP ONE                       SHAPING                                                                                                            By working with suppliers to address the
                                                                                                                                                            challenges of plastic waste, packaging
       RESTORING                        THE FUTURE                                                                                                          and climate change.
       THE BASICS

2017                                                           2021
TRANSFORMATION UNDERWAY - PLAN A REPORT 2018 - Marks and Spencer corporate
OVERVIEW     PLAN A   WELLBEING   COMMUNITY      PLANET    ABOUT PLAN A   FRAMEWORKS AND ASSURANCE                                                 M&S PLAN A REPORT 2018       07

                                                                        HELPING TO MAKE M&S SPECIAL AGAIN CONTINUED

STEP TWO                                                                                                 STEP THREE
                                                                                                                                                                                                          3
SHAPING THE FUTURE                                                                           2
                                                                                                         MAKING M&S SPECIAL
These are actions which we’re already               CUSTOMERS                                            By 2022, our Plan A 2025 commitments will       CUSTOMERS
piloting and testing today, ready to roll out                                                            be a platform of excellence, providing an M&S
                                                    –	Plan A attracts new customers                                                                     – Plan A allows us to move into new markets
in 2-3 years’ time.                                                                                      difference to all our products and services.
                                                       By providing evidence of a contemporary                                                             New products and services meeting the social
Together, they will represent the next step to         and ethical brand, appealing to a wide range      This will inspire the development of new          and environmental needs of our customers.
a more digital, technology-enabled business            of new and existing customers.                    products and services.
                                                                                                                                                         – Engagement
that reflects and values customers’ lifestyles.
                                                    – Transparency                                       As well as addressing today’s risks, we want      Engaged customers, clear about the steps
This will be a phase where we take newly              Demonstration of our ethical and                   to evolve an approach which automatically         they can take to make a positive difference.
founded innovations, efficiencies and                 environmental standards in action, visible         responds to any new emerging social and
loyalties to create a business for the future.        to all.                                            environmental challenges.                       COLLEAGUES
                                                                                                                                                         – An employer of choice
                                                    COLLEAGUES
                                                                                                                                                           Regarded for our values, skills and innovation.
                                                    – An engaged, skilled and inclusive workforce
                                                      Scaling-up our activities on transforming                                                          EFFICIENCY
                                                      communities and meeting new benchmarks
                                                                                                                                                         – Zero waste, carbon neutral supply chains
                                                      of equality in the workplace.
                                                                                                                                                           Suppliers and business partners adopt
                                                                                                                                                           M&S’s zero waste, carbon neutral culture.
                                                    EFFICIENCY
                                                                                                                                                         – Sustainable products
                                                    – Leaner supply chains and franchises
                                                                                                                                                           Products that exceed customers’
                                                      Supplier Sustainability Scorecards being
                                                                                                                                                           expectations while also creating a fairer
                                                      extended to all supply chains and efficiency
                                                                                                                                                           and sustainable world.
                                                      benchmarks to key franchises.
                                                    – Sustainably designed products
                                                      Designed to give the best customer
                                                      experience and with the least social and
                                                      environmental impact.
TRANSFORMATION UNDERWAY - PLAN A REPORT 2018 - Marks and Spencer corporate
OVERVIEW    PLAN A   WELLBEING      COMMUNITY       PLANET     ABOUT PLAN A      FRAMEWORKS AND ASSURANCE                                                       M&S PLAN A REPORT 2018   08

                                                                                 OUR RESOURCES AND RELATIONSHIPS

                                                                  HOW WE CREATE VALUE

The M&S difference is a way
                                                             FINANCIAL
of doing business that creates                                                                     A
                                                                                                                                       COMMITMENTS ON
                                                                                                                                       MARKETING M&S PLAN A
                                                                                                                                                                  WASTE TO LANDFILL
                                                             Generating returns for              – Plan A marketing
value for us and our investors,
                                                                                                                                                                  tonnes

                                                                                                                                                                  ZERO
                                                                                                                                       PRODUCT QUALITIES
                                                             our stakeholders through            – Zero waste and efficiency
and across all the resources
and relationships on which
                                                             effective management
                                                             of our financial resources.                                               3
we depend.                                                   PRODUCTS & CHANNELS                   A
                                                                                                                                       FOOD FROM SILVER LEVEL     CLOTHING & HOME
                                                             Maintaining our channels           – Sustainable Food suppliers          SUSTAINABILITY FACTORIES   FACTORY PLAN A

                                                                                                                                       63%
                                                                                                                                                                  COMMITMENTS
We aim to create long-term value through                     and supply chain infrastructure     – Sustainable Clothing &                        +7%
the effective management of resources and
relationships. We manage these in line with
our core values of Inspiration, Innovation,
                                                             to meet customer demand.              Home suppliers
                                                                                                                                                                  3
Integrity and being In touch.                                INTELLECTUAL CAPITAL                  A
                                                                                                                                       PLAN A 2025                HEALTHIER FOOD
These values run through everything we do                     trengthening our brand
                                                             S                                   – Plan A activities                   COMMITMENTS                SALES % TO TOTAL

                                                                                                                                       100                        43%
– they help us make the M&S difference of                    through creation and protection     – Healthier food
making M&S special through the products                      of our intellectual property.
and services we offer our customers in the
UK and internationally.
                                                             PEOPLE                                A
                                                                                                                                       UK NON-DEMOGRAPHIC         PEOPLE HELPED BY
                                                              eveloping our employees
                                                             D                                   – Inclusion and diversity             PAY GAP                    MARKS & START THIS YEAR

                                                                                                                                       1.5%                       3,600
                                                             and their knowledge.                – Training and development
                                                                                                 – Marks & Start work experience

                                                             STAKEHOLDERS                          A
                                                                                                                                       DONATED OR RAISED FOR      HOURS OF COMMUNITY
                                                              uilding and nurturing
                                                             B                                   – Sustainable Retail Advisory Board   COMMUNITY PROGRAMMES       VOLUNTEERING

                                                                                                                                       £25.7m 30,500
                                                             relationships with our customers    – Community partners and projects
                                                             and suppliers, and in the           – Supplier Exchange best practice
                                                             communities in which we operate.      programme

                                                             NATURAL RESOURCES                     A
                                                                                                                                       RESPONSIBLY SOURCED        RESPONSIBLY SOURCED
                                                             Sourcing responsibly                – Carbon neutral operations           COTTON                     PALM OIL

                                                                                                                                       77%                        100%
                                                             and using natural resources         – Zero waste                                    +28%
                                                             efficiently.                        – Responsibly sourced raw materials
TRANSFORMATION UNDERWAY - PLAN A REPORT 2018 - Marks and Spencer corporate
OVERVIEW            PLAN A          WELLBEING         COMMUNITY                  PLANET     ABOUT PLAN A   FRAMEWORKS AND ASSURANCE                                                      M&S PLAN A REPORT 2018    09

                                                                                                                           FOCUS ON: HUMAN RIGHTS

                                                         OUR COMMITMENT TO HUMAN RIGHTS
HOW IMPORTANT (SALIENT) HUMAN RIGHTS ISSUES CONNECT TO OUR ACTIVITIES                                                                      OUR APPROACH                                           EMBEDDING HUMAN RIGHTS INTO
                                                                                                                                                                                                  HOW WE DO BUSINESS
                                                                                                                                           At M&S, we have a long history of respecting
                                                                                                                                           human rights in the UK and standing up for those       In 2016 and 2017, we published two separate
                                                                                                                                           values internationally. Our commitment to human        human rights reports which described our
                                                                                                                                           rights is reinforced in our Human Rights Policy        approach in detail and explained how it connected
                                                                         FOST E
                                                                               R     ING                                                   and Code of Ethics and Behaviours and for all          to our seven salient issues and to a further
                                                                                              IN                                           suppliers and business partners in our Global          four on which we’ve adopted a watching-brief.
                                                                                                CL                                         Sourcing Principles. We strive to be a fair partner    We illustrated this relationship with the diagram
                                                     K AND E CON                                  US
                                                 WOR             OM                                          I                             by paying a fair price to suppliers, supporting        you can see on the left-hand side of this page.
                                            E NT                    IC                                                                     local communities and ensuring good working

                                                                                                             VE
                                          C                                               GR                                                                                                      This report provides an update on our progress
                                     DE                    SALIENT                               O                                         conditions for everyone working in our business
                                8:

                                                                                                                 SO
                                                                                                                                                                                                  against the human rights targets published in
                                                                                                                                           and supply chains. We are committed to building

                                                                                                                   CI
                                                                                                                                                                                                  the 2017 Human Rights report and our Plan A

                                                                                                 W
                            G

                                                                                                                                           our employees’ and suppliers’ knowledge and

                                                                                                     TH
                           SD
                       Y

                                                                                                                      ET
                                                                                                                                                                                                  2025 update.
                    RT

                                                                                                                                           awareness on human rights, encouraging them

                                                                                                                      Y
                OVE

                                           Freedom of
                                                                                                                                           to speak up about any concerns without fear
                                           association
                                                           Forced labour Discrimination
                                                                                                                                           of retribution.                                           Read more on human rights on page 39
      IN-WORK P

                                                                                                                                           GOVERNANCE
                                                                                                                                           Central to our approach is a robust governance          RAISING AWARENESS –
                                     Health                           Water &
                                     & safety
                                                    Working hours
                                                                     sanitation
                                                                                  Living wages                                             structure. Directors of each business area,             FLAGSHIP INTERNATIONAL HUMAN
                                                                                                                                           supported by a business area Human Rights               RIGHTS CONFERENCE
          KL ING

                                                         WATCHING                                                                          practitioner, are responsible for ensuring effective
                                                                                                                                           human rights and modern slavery risk assessment         In January 2018, we held our first
                                                                                                                                           and due diligence activity. Our Human Rights            international Forced Labour and Human
       TAC

                                                                                                                                           Practitioner Committee reports to a Human Rights        Rights conference in Delhi, with 250 attendees
                                                                                  Customer                                                 and Modern Slavery Steering Group, which is also        from our sourcing offices, franchise partners,
                                     Child labour     Land rights   Secure work
                                                                                   security
                                                                                                                                           informed by our independent Human Rights                suppliers, business partners and Indian
                                                                                                                                           Advisory Stakeholder Group.                             retail joint venture. This event set out to help
                                                                                                                                                                                                   attendees understand and manage modern
                                                                                                                  Y

                                                                                                                                           To strengthen our governance, Oxfam is helping          slavery risks in their operations and wider
                                                                                                                 ER

                                                                                                               V                           us to assess the impact of our sourcing practices       supply chains. External speakers included
                                                                                                         S   LA                            on human rights in our UK food supply base              Coca-Cola, BT, Unseen and representatives
                                                                                             R       N                                     and footwear supply chains in India. We have also       from the Indian, UK and Australian
                                          T AK                                            DE
                                                 I NG T               MO                                                                   relaunched our grievance reporting process with         governments. At the event we also launched
                                                        H E L E AD ON                                                                      plans to improve how reports are managed and            a new International Forced Labour Toolkit
                                                                                                                                           followed-up.                                            for Suppliers and Partners, which we are keen
                                                                                                                                                                                                   to develop with stakeholder feedback.

                                                     or more information on UN Human Rights Salient issues, see:
                                                    F
                                                    ungpreporting.org/resources/salient-human-rights-issues/
OVERVIEW     PLAN A     WELLBEING   COMMUNITY      PLANET     ABOUT PLAN A     FRAMEWORKS AND ASSURANCE                                                    M&S PLAN A REPORT 2018     10

                                                                             OUR COMMITMENT TO HUMAN RIGHTS CONTINUED

TAKING THE LEAD ON MODERN SLAVERY                        FOSTERING AN INCLUSIVE SOCIETY                         DECENT WORK
                                                                                                                                                                       READ MORE
Our 2018 Modern Slavery Statement highlights             Our aim is to create a culture of inclusion across     All our human rights work is underpinned by our
the ways in which we’ve made improvements.               M&S so that people from all backgrounds can join       continued commitment to decent work, ensuring
                                                                                                                                                                       Health & safety                           p15
These cover policies, risk assessment, due               the workforce, reach their potential and feel valued   good working conditions for everyone working
diligence and collaborative action on                    for being themselves. We want to encourage             in our business and supply chains. We use many
understanding the prevalence of recruitment fees,        suppliers and business partners to do the same.        sources of data to inform our human rights
                                                                                                                                                                       Discrimination                            p19
increasing demand for responsible recruitment,           Consistent research shows that diverse businesses      approach, including the ethical audit results shared
identifying responsible recruiters and ensuring the      perform better – through innovation, better            on the Sedex database (see page 23). We are
voices of victims are heard and the intelligence         decision making, and attracting and keeping great      currently reviewing the ethical assessment
                                                                                                                                                                       Freedom of association                    p22
learnt and acted upon.                                   people. Consequently, they’re likely to be more        methodology to make it more sensitive to human
                                                         financially successful, to increase market share       rights issues. We aim to share our findings in next
TACKLING IN-WORK POVERTY                                 and capture new markets.                               year’s report. We know that there is a greater need
                                                                                                                                                                       Forced labour                             p22
                                                                                                                for transparency when human rights stakeholders
This year, we held an in-work poverty roundtable         M&S has a long-established track-record for
                                                                                                                and campaigners raise concerns about issues in
to define it and understand the likelihood of where      diversity and inclusion and we’ve been recognised
                                                                                                                our supply chain, both in terms of being open
it occurs. Financial awareness and support were          in the Times Top 50 Employers for women for                                                                   Working hours                             p22
                                                                                                                about the issue raised and making public the
identified as key interventions that M&S could           the last eight years. We first introduced our
                                                                                                                details of our response and resolution. As of last
make. As a result, we are launching a microsite to       Board Diversity Policy in 2012 which includes a
                                                                                                                year, our Plan A website summarises the key
increase basic understanding for UK employees            commitment to at least 30% female representation.                                                             Living wage                               p22
                                                                                                                third-party challenges we’ve received since 2014.
on how to manage finances and where to get               We run four employee-led networks on gender,
external expertise if they need it.                      ethnicity (BAME), sexual orientation (LGBT) and
                                                         health conditions. This year, we also held our          SECURING SAFE AND DECENT                              Water and sanitation                      p33
We’re reviewing ways to expand supply chain                                                                      WORK IN BANGLADESH
                                                         second Diversity and Inclusion festival, engaging
financial literacy training and our regional
                                                         thousands of colleagues across M&S. In February         Bangladesh is a key sourcing country for
teams have completed some detailed wage
                                                         2018, we published our gender pay gap (see              M&S Clothing & Home products and we are
investigations. Through the Ethical Trading Initiative
                                                         page 21) which is lower than both the UK and            committed to ensuring the safety of workers
Bangladesh Social Dialogue programme, we are
                                                         retail industry average. This is positive but the       in our supply chain there. We were early
supporting the development of better workplace
                                                         issues at play are complicated and we’ve                signatories to the 2013 Bangladesh Accord
industrial relations by training both management
                                                         committed to closing key gaps over the next             which has made significant improvements in
and workers’ representatives to communicate more
                                                         few years. Gender programmes in our supply              building safety and fundamentally changed the
effectively. In our food supply chain, we participate
                                                         chains have also been continued. These include:         mindset of the Bangladeshi factory owners and
in the Malawi 2020 Tea Coalition which is reducing
                                                         Emerging leaders which encourages both women            the Employers’ Associations. It has also been
the gap between actual earnings and a living
                                                         and men to become confident leaders; and                successful in promoting women as training
wage for smallholder growers by improving
                                                         programmes with the Indian British High                 case handlers and providing a leading example
productivity and quality. Around a fifth of these
                                                         Commission, Change Alliance and Business for            of a strong, effective grievance system. By
smallholder growers have benefited and 65% of
                                                         Social responsibilities HerProject, which are           November 2017, 90% of original issues had been
them are women.
                                                         addressing sexual harassment. We have also              remediated, 82% of original and new issues were
In our UK logistics supply chains, we’ve identified      formed a new partnership with Work Opportunities        remediated and our individual progress was               Read more on human rights
significant human rights risks associated with courier   for Women (WOW) and the UK government’s                 93%. We’ve re-signed the Bangladesh Transition
drivers. Over the last 12 months we’ve worked with       Department for International Development to             Accord to ensure a timely smooth handover
DPD our largest partner and will be sharing this         map where women workers are located and                 of the responsibility of the Accord to a national        Read more on the Modern Slavery Act
learning with other courier service providers.           support their development.                              regularity authority after May 2018.
OVERVIEW                                     PLAN A               WELLBEING       COMMUNITY         PLANET                 ABOUT PLAN A                                  FRAMEWORKS AND ASSURANCE                                                                                                         M&S PLAN A REPORT 2018                                                11

                                                                                                                                                                                                 PLAN A 2025

                                                                                                                           PERFORMANCE SUMMARY
WELLBEING                                                                 PAGES 13–15                        COMMUNITY                                                           PAGES 17–23                        PLANET                                                                                                                                                                     PAGES 25–34
                                             NOT STARTED

                                                           NOT ACHIEVED

                                                                          BEHIND PLAN

                                                                                        ON PLAN

                                                                                                  ACHIEVED

                                                                                                                                                    NOT STARTED

                                                                                                                                                                  NOT ACHIEVED

                                                                                                                                                                                 BEHIND PLAN

                                                                                                                                                                                               ON PLAN

                                                                                                                                                                                                         ACHIEVED

                                                                                                                                                                                                                                                         NOT STARTED

                                                                                                                                                                                                                                                                       NOT ACHIEVED

                                                                                                                                                                                                                                                                                      BEHIND PLAN

                                                                                                                                                                                                                                                                                                    ON PLAN

                                                                                                                                                                                                                                                                                                              ACHIEVED

                                                                                                                                                                                                                                                                                                                                                                  NOT STARTED

                                                                                                                                                                                                                                                                                                                                                                                NOT ACHIEVED

                                                                                                                                                                                                                                                                                                                                                                                                BEHIND PLAN

                                                                                                                                                                                                                                                                                                                                                                                                              ON PLAN

                                                                                                                                                                                                                                                                                                                                                                                                                        ACHIEVED
                                                                                                              CONNECTING WITH
HEALTHY FOOD PRODUCTS                                                                                         COMMUNITIES                                                                                           INSPIRING OUR CUSTOMERS                                                                              SUPPLY CHAIN GHG EMISSIONS
Improved indulgent food**                                                                                     UK community space**                                                                                  Product Plan A attributes**                                                                          Science-based target footprint**
Calorie-cap single portion food**                                                                             Volunteering**                                                                                        Supply chain transparency**                                                                          Clothing & Home air freight
50% healthier food**                                                                                          Education partnership                                                                                 Sustainable design toolkit                                                                           Sustainable animal protein
Vegetarian options                                                                                            All food eaten by people**                                                                            Labelled sustainable products                                                                        Food supplier climate plans
Destination of choice (food)                                                                                  Supporting local fundraising                                                                          Reward customers (sustainability)
                                                                                                                                                                                                                                                                                                                         ZERO WASTE IN M&S OPERATIONS
CLOTHING & HOME PRODUCTS                                                                                      Helping transform communities**                                                                       Recyclable packaging**
                                                                                                                                                                                                                                                                                                                         Zero landfill**
                                                                                                              Town centre regeneration                                                                              Clothing reuse and recycling**
Clothing health attributes                                                                                                                                                                                                                                                                                               Food waste (reduction)**
                                                                                                              Community entrepreneur award                                                                          Clothing & Home recycled materials
HOW WE SELL                                                                                                                                                                                                                                                                                                              Food waste (halve)**
                                                                                                              Food artisan strategy                                                                                 Clothing & Home repair services
                                                                                                                                                                                                                                                                                                                         Reused shop fit-out
Rewarding customers (health)**                                                                                Community donations**                                                                                 Clothing & Home circular
                                                                                                                                                                                                                                                                                                                         Construction waste
Franchise confectionary tillpoints                                                                            Social dividend                                                                                       economy standards
Wellbeing advice to customers                                                                                 M&S Energy                                                                                            Food waste (digital campaign)                                                                        SUPPLY CHAIN RAW MATERIALS
£25m for health causes**                                                                                                                                                                                            Food waste (household top 10)                                                                        Sustainable cotton**
                                                                                                              SKILLS AND EMPLOYMENT
COLLEAGUE WELLBEING                                                                                           Skills gap research                                                                                   M&S GREENHOUSE GAS EMISSIONS                                                                         Zero deforestation**
Colleague wellbeing framework                                                                                                                                                                                       Science-based target emissions**                                                                     M&S Farming for the Future**
                                                                                                              Next generation technologies**
Colleague health assessment**                                                                                                                                                                                       Carbon neutral operations**                                                                          Soil health
                                                                                                              International Marks & Start
Wellbeing in employability                                                                                                                                                                                                                                                                                               Forever Fish**
                                                                                                              Marks & Start
Mental health training                                                                                                                                                                                              ENERGY CONSUMPTION AND SOURCING                                                                      Responsibly sourced raw materials**
                                                                                                              INCLUSIVE BUSINESS                                                                                    UK and ROI energy efficiency**                                                                       Supplier water stewardship
Health and safety data**
                                                                                                              Retail accessibility benchmark                                                                        International energy efficiency**                                                                    Clothing & Home animal welfare
SUPPLY CHAIN WELLBEING                                                                                                                                                                                              Renewable electricity**
                                                                                                              Inclusion Strategy                                                                                                                                                                                         Construction and shop fit
Franchise/supplier wellbeing
                                                                                                              Inclusive Design Standards                                                                            Biomethane**                                                                                         Plan A attributes
                                                                                                              Diversity                                                                                             Renewable peak-energy management
                                                                                                                                                                                                                                                                                                                         SUPPLIERS
                                                                                                              Senior management diversity                                                                           Clothing & Home fuel efficiency**
COMMITMENT PERFORMANCE SUMMARY                                                                                                                                                                                                                                                                                           Sustainable Food factories**
                                                                                                              Gender equality programme                                                                             Food fuel efficiency**
                                                                                                                                                                                                                                                                                                                         Sustainable Clothing & Home factories
               5                                                                                              Colleague social mobility
                                                                                                                                                                                                                    REFRIGERATION                                                                                        Sustainable Clothing & Home processing
                                                                                                              Colleague gender pay gap**
                                                                                                                                                                                                                    Store refrigeration (emissions)**                                                                    Clothing & Home supplier water
                                                                                                              Colleague diversity pay gap
                                                                                                                                                                                                                    Store refrigeration (HFCs)**                                                                         efficiency**
                                                                                                              Supplier gender diversity                                                                                                                                                                                  Sustainable Property suppliers
                                                                                                              HUMAN RIGHTS                                                                                          STORE CLIMATE ADAPTATION
                                     1                                                                        Oxfam human rights programme**                                                                        Store climate adaptation
                                                                                                              Raising human rights concerns
4                                                                                                             Anti-slavery**
                                                                                 Total                        Supplier worker representation
                                                                          commitments                         Franchise Reward Forums
                                         1 Not started                                              37        In-work poverty
                        3                2 Not achieved                                                  0    Supplier worker payments
                                                                                                              Living wage
                                         3 Behind plan                                               13
                                                                                                              Global Community Programme**
                                         4 On plan                                                  48        Supplier feedback
                                         5 Achieved                                                  2        Supplier ethical audits
** Assured by DNV GL
OVERVIEW   PLAN A   WELLBEING   COMMUNITY    PLANET    ABOUT PLAN A   FRAMEWORKS AND ASSURANCE                                         M&S PLAN A REPORT 2018   12

                                        PILLAR 1                                                            OUR GOAL
                                                                                                            IS TO HELP 10 MILLION PEOPLE

            WELLBEING
                                                                                                            LIVE HAPPIER, HEALTHIER LIVES

                                                                                                            HEADLINE TARGETS
                                                                                                            – By 2019, we’ll incentivise and reward our
                                                                                                              customers for making healthier choices.
                                                                                                            – By 2022, 50% of our global Food sales
                                                                                                              will come from healthier products.
We believe that taking care of ourselves is the first step to helping the people around us.
           As a society, we need to re-balance our diet to eat more healthy food.                           – By December 2018, M&S single serve
                                                                                                              portion sizes of snacks, confectionery
It’s not only obesity that’s a challenge but what comes with it in terms of increased heart
                                                                                                              and ice cream will contain no more than
                                 disease and type 2 diabetes.                                                 250 calories.
                                                                                                            – Between 2017 and 2025, we’ll help to
                                                                                                              make a positive difference to people
                                                         TARGET FOR HEALTHIER                                 who are affected by either cancer, heart
                                                         FOOD SALES BY 2022                                   disease, mental health, loneliness or

                                                         50%
                                                                                                              dementia by helping to raise £25m for
                                                                                                              charities that support these causes.
                                                                                                            – By 2022, we’ll enable our M&S colleagues
                                                                                                              worldwide to complete a health risk
                                                                                                              assessment, including health checks,
                                                                                                              where appropriate. We’ll use this data
                                                                                 TARGET FOR DONATIONS TO      to tailor our interventions/advice and
                                                                                 WELLBEING CAUSES BY 2025

                                                                                 £25m
                                                                                                              report annually on progress.

                                                                                                            IN THIS SECTION
                                                                                                            Healthy food products                         13
                                                                                                            Clothing & Home products                      14
                                                                                                            How we sell                                   14
                                                                                                            Colleague wellbeing                           15
                                                                                                            Supply chain wellbeing                        15
OVERVIEW   PLAN A   WELLBEING   COMMUNITY      PLANET    ABOUT PLAN A   FRAMEWORKS AND ASSURANCE                                                  M&S PLAN A REPORT 2018     13

                                                                                             PILLAR 1: WELLBEING CONTINUED                                                                  PROGRESS KEY

                                                                                                                                                                                                  1     2      3   4   5

                                                                                                                                                                                            1   Not started
                                                                                                                                                                                            2   Not achieved
                                                                                                                                                                                            3   Behind plan
                                                                                                                                                                                            4   On plan
                                                                                                                                                                                            5   Achieved

                                                                                                  HEALTHY FOOD PRODUCTS

    IMPROVED INDULGENT FOOD**                                                                                     DESTINATION OF CHOICE (FOOD)                        50% HEALTHIER FOOD**

    Aim                                                        Examples of areas where we have achieved           Aim                                                 Aim
    By 2019, our indulgent M&S Food categories                 calorie reductions include a 13% reduction in      By 2020, we’ll rationalise our number of health     By 2022, 50% of our global Food sales will
    will have 20% fewer calories, saturated fat                single ice creams and a 12% reduction across       brands and simplify our on-pack messages in         come from healthier products.
    and total^ sugar in total compared to 2017.                our most popular café cakes.                       order to maintain M&S Food being the destination
                                                                                                                                                                      Progress
                                                                                                                  of choice for healthy food for our customers as
    Progress                                                   However, we’re still in the process of                                                                 As of April 2018, 43% of M&S Food sales came
                                                                                                                  shown by the overall results from nutritional
    As of March 2018, we have reduced total                    developing our plans to reach these ambitious                                                          from healthier products. This percentage
                                                                                                                  benchmarking, number of healthy products
    calories by 4%, saturated fat by 7% and total              20% reduction targets by 31 March 2019.                                                                excludes non-M&S brands, wine and
                                                                                                                  within a category and market trends analysis.
    sugar by 5% across the top 10 indulgent                                                                                                                           hospitality lines, but includes any healthy or
    categories that contribute most to UK diets.                                                                  Progress                                            healthier food and drink product, such as
    This is based on a progressive measurement                 TARGET CALORIE REDUCTION IN M&S FOOD               This year, we’ve simplified our health brands and   those labelled as Eat Well.
    rolled-up from October 2016.                               BY 2019                                            health offering by bringing them all together

                                                               20%
                                                                                                                  under the Eat Well sunflower logo. Our ‘Count
                                                                                                                  on Us’ and ‘Balanced For You’ ranges focus on
                                                                                                                  calorie management; other on-pack labelling
    ^ Originally published as an ‘added’ in error.                                                                highlights specific diet choices, such as
                                                                                                                  vegetarian, vegan, gluten-free, vitamin D and       CALORIE-CAP SINGLE PORTION FOOD**
                                                                                                                  no added sugar. As a result, we have removed
    VEGETARIAN OPTIONS                                                                                            other M&S health brands, such as Active Health
                                                                                                                  and Guilt Free Snacking.                            Aim
                                                                                                                  We continue to benchmark the nutritional            By December 2018, M&S single serve portion
    Aim                                                                                                                                                               sizes of snacks, confectionery and ice cream
    By 2020, we’ll have grown a comprehensive                                                                     content and health qualities of M&S food and
                                                                                                                  drinks and use this information each time we        will contain no more than 250 calories.
    range of vegetable-based protein convenient
    meal solutions and components for cooking.                                                                    review a product’s recipe.                          Progress
                                                                                                                  82% of M&S Food meets the Department of             As of April 2018, 75% of our single serve
    Progress                                                                                                                                                          portions of snacks, confectionery and
    As of April 2018, we have launched a new range                                                                Health’s 2017 salt targets and we have improved
                                                                                                                  the nutritional content of benchmarked lines        ice cream have no more than 250 calories
    of vegetable-based protein alternatives,                                                                                                                          per pack. We have launched 15 new portion-
    including soya mince, soya chunks, marinated                                                                  by increasing Eat Well choices and five-a-day
                                                                                                                  content as well as offering vegetarian, vegan       controlled biscuits, cereal bar and chocolate
    tofu and a tofu-based salad – none of which                                                                                                                       lines, all with less than 250 calories, and
    were available in our baseline year of 2016.                                                                  and gluten-free options.
                                                                                                                                                                      made all our single choc-ices, ice cream
    We have also relaunched our vegetarian range                                                                  We are still developing our plan to define and      cones and bars less than 250 calories.
    with 12 plant-based meat alternative dishes.                                                                  measure Destination of Choice.
    We are still working with our suppliers and
    chefs to expand choice.

** Assured by DNV GL
OVERVIEW    PLAN A   WELLBEING    COMMUNITY       PLANET     ABOUT PLAN A   FRAMEWORKS AND ASSURANCE                                                    M&S PLAN A REPORT 2018     14

                                                                                      PILLAR 1: WELLBEING CONTINUED                                                                     PROGRESS KEY

                                                                                                                                                                                              1     2      3   4   5

                                                                                                                                                                                        1   Not started
                                                                                                                                                                                        2   Not achieved
                                                                                                                                                                                        3   Behind plan
                                                                                                                                                                                        4   On plan
                                                                                                                                                                                        5   Achieved

       CLOTHING & HOME PRODUCTS                                                                                             HOW WE SELL

    CLOTHING HEALTH ATTRIBUTES                           WELLBEING ADVICE TO CUSTOMERS                       REWARDING CUSTOMERS (HEALTH)**

    Aim                                                  Aim                                                 Aim                                               Progress
    By 2025, 20% of all M&S clothing will have a         By 2020, we will extend our health and              By 2019, we’ll incentivise and reward our         This year, we’ve developed a programme of
    special Plan A health or wellbeing attribute         wellbeing advice to our customers to help           customers for making healthier choices.           future in-store and Sparks card activities to
    (e.g. SkinKind™ accessories and specialist/          them live happier, healthier lives.                                                                   help people make healthier choices.
    adapted clothing).
                                                         Progress
    Progress                                             This year, we’ve published more wellbeing
    We already have a small number of special            advice for customers online, including blogs        £25M FOR HEALTH CAUSES**
    Plan A health or wellbeing attributes.               about: alcohol consumption; the impact of
                                                         processed foods; healthy food trends; and
    As of April 2018, 8% of the volume of M&S                                                                Aim                                               Fundraising activities included Breast Cancer
                                                         plant-based diet options.
    clothing items sold worldwide had one of                                                                 Between 2017 and 2025, we’ll help to make a       Awareness Month, Fashion Targets Breast
    these attributes.                                    We’ve also conducted small trials of face-to-       positive difference to people who are affected    Cancer for Breast Cancer Now, Sparks Card
                                                         face Health MOT interviews in stores.               by either cancer, heart disease, mental health,   donations and Charity Christmas cards.
                                                                                                             loneliness or dementia by helping to raise
                                                                                                                                                               For the eighth year running, M&S Cafés, Food
                                                                                                             £25m for charities that support these causes.
                                                             ee more https://corporate.marksandspencer.
                                                            S                                                                                                  Halls and Simply Foods stores participated in
                       PERCENTAGE OF                        com/blog                                         Progress                                          Macmillan Cancer Support’s World’s Biggest
                       CLOTHING WITH PLAN A                                                                  This year we’ve supported a number of charities   Coffee Morning, which together with activities
                       ATTRIBUTE BY 2025                                                                     who address cancer, heart disease, mental         throughout the year, raised £3.5m. This total

                       20%
                                                                                                             health, loneliness or dementia, raising £7.4m     included over £1.5m raised by our colleagues
                                                         FRANCHISE CONFECTIONERY                             towards our £25m target.                          and Macmillan volunteers in our stores
                                                         TILLPOINTS                                                                                            (last year £1.2m).

                                                         Aim                                                 ANNUAL FUNDRAISING FOR
                                                                                                             MACMILLAN CANCER SUPPORT
                                                         By 2021, we’ll work with our franchise partners

                                                                                                             £3.5m
                                                         to remove confectionery from tillpoints
                                                         in all key franchise partner operated M&S
                                                         stores worldwide (excluding petrol station
                                                         forecourts).

** Assured by DNV GL
OVERVIEW     PLAN A    WELLBEING        COMMUNITY     PLANET       ABOUT PLAN A    FRAMEWORKS AND ASSURANCE                                                   M&S PLAN A REPORT 2018      15

                                                                                            PILLAR 1: WELLBEING CONTINUED                                                                      PROGRESS KEY

                                                                                                                                                                                                     1     2      3   4    5

                                                                                                                                                                                               1   Not started
                                                                                                                                                                                               2   Not achieved
                                                                                                                                                                                               3   Behind plan
                                                                                                                                                                                               4   On plan
                                                                                                                                                                                               5   Achieved

                                                                                                                                                                               SUPPLY CHAIN WELLBEING
                                         COLLEAGUE WELLBEING (ALSO A SALIENT HUMAN RIGHTS ISSUE)                                                                         (ALSO A SALIENT HUMAN RIGHTS ISSUE)

    COLLEAGUE WELLBEING FRAMEWORK                         COLLEAGUE HEALTH ASSESSMENT**                              WELLBEING IN EMPLOYABILITY

    Aim                                                  Aim                                                         Aim
    By 2019, we’ll launch an independently               By 2022, we’ll enable our M&S colleagues                    By 2022, health and wellbeing learning
    benchmarked retail industry leading health           worldwide to complete a health risk assessment,             and support will be included in all our
    and wellbeing framework, providing support           including health checks, where appropriate.                 employability programmes worldwide.
    to M&S colleagues worldwide on physical and          We’ll use this data to tailor our interventions/
    mental health as well as nutrition and wellbeing.    advice and report annually on progress.
    Progress                                                                                                         MENTAL HEALTH TRAINING
    Since we launched this commitment, further
    research has shown that robust, independent
    benchmarks for retail industry wellbeing                                                                         Aim
    frameworks are not readily available. These                                                                      By 2022, we’ll offer training on mental health
    could be established, but we believe it’s more                                                                   to M&S colleagues in our offices, stores and
    important to focus our efforts on improving                                                                      warehouses worldwide.
    wellbeing outcomes for our colleagues.
    To reflect this change of emphasis and
    allow time for delivery, we’ve updated the            HEALTH & SAFETY DATA**
    wording of this commitment to read:
    By 2020, we’ll launch an improved health and
    wellbeing framework, providing support to            Aim                                                       Progress
    M&S colleagues worldwide on physical and             We will continue to report on our UK and ROI              In addition to UK and ROI data below, internal
    mental health as well as social wellbeing.           health and safety data and extend to owned                reporting is also taking place for our
                                                         international operations from 2020.                       International operations in Greece, Czech
                                                                                                                   Republic and joint venture in India, but is             FRANCHISE/SUPPLIER WELLBEING
                                                                                                                   currently only available in a different format.

                                                         2017/18 UK AND ROI HEALTH AND SAFETY**                                                                            Aim
                                                         RIDDOR injury rate per 100,000 employees                     Fatal    Specified   Over 3 or 7 days      Total     By 2019, we’ll define our expectations
                                                         M&S UK retail                                                   0           25             130 (7)      155       on nutrition and physical and mental
                                                         2016/17 HSE UK retail benchmark                              0.11           48             172 (7)      220       wellbeing for our franchise partners and
                                                                                                                                                                           direct suppliers and by 2022 launch a
                                                         M&S NI retail                                                   0           74             148 (3)      222
                                                                                                                                                                           range of initiatives, including health checks
                                                         M&S ROI retail                                                  0           38             193 (3)      231
                                                                                                                                                                           where appropriate, to enable them to tailor
                                                         M&S warehouse                                                   0           52             262 (7)      314       their interventions and advice. We’ll report
                                                         2016/17 HSE UK warehouse benchmark                           1.42          325           1,252 (7)     1,577      annually on progress.

** Assured by DNV GL
OVERVIEW   PLAN A   WELLBEING   COMMUNITY   PLANET   ABOUT PLAN A   FRAMEWORKS AND ASSURANCE                                           M&S PLAN A REPORT 2018   16

                                      PILLAR 2                                                           OUR GOAL
                                                                                                         IS TO HELP TRANSFORM

     COMMUNITY
                                                                                                         1,000 COMMUNITIES

                                                                                                         HEADLINE TARGETS
                                                                                                         – By 2020, in 10 locations we will have
                                                                                                           completed programmes that aim to
                                                                                                           secure meaningful economic, social
                                                                                                           and environmental benefits in the
           We believe we can achieve more together than we can on our own.                                 communities around our stores and
       Throughout our 134 year history, we’ve supported our local communities.                             beyond. We’ll build on our insights and
                                                                                                           roll out programmes in 100 further
       We know that working with our customers to support vibrant communities
                                                                                                           locations in the UK and internationally
                        is essential for our own future success.                                           by 2023, then share our learnings with
                                                                                                           1,000 locations by 2025.
                                                                                                         – By 2025, 50% of our full line M&S operated
                                                                                                           stores and offices in the UK will have space
                                                                                                           available for community groups, charities
                                                                           TARGET NUMBER OF HOURS
                                                                                                           and local interest groups to use.
                                                                           OF PAID COLLEAGUE COMMUNITY   – Between 2017 and 2025, we’ll support
                                                                           VOLUNTEERING BY 2025

                                                                           1m
                                                                                                           M&S colleagues worldwide to provide one
                                                                                                           million hours of work-time community
                                                                                                           volunteering.
                                                                                                         – By 2025, we want all edible surplus food
                                                                                                           from M&S stores, key franchises and direct
                                                                                                           M&S Food suppliers worldwide to be
                                                                                                           diverted for human consumption.

                                                                                                         IN THIS SECTION
                                                                                                         Connecting with communities                  17
                                                                                                         Skills and employment                        18
                                                                                                         Inclusive business                           19
                                                                                                         Human rights                                 21
OVERVIEW    PLAN A   WELLBEING    COMMUNITY     PLANET    ABOUT PLAN A   FRAMEWORKS AND ASSURANCE                                                      M&S PLAN A REPORT 2018     17

                                                                                    PILLAR 2: COMMUNITY CONTINUED                                                                      PROGRESS KEY

                                                                                                                                                                                             1     2      3   4   5

                                                                                                                                                                                       1   Not started
                                                                                                                                                                                       2   Not achieved
                                                                                                                                                                                       3   Behind plan
                                                                                                                                                                                       4   On plan
                                                                                                                                                                                       5   Achieved

                                                                                    CONNECTING WITH COMMUNITIES

    ALL FOOD EATEN BY PEOPLE**                         EDUCATION PARTNERSHIP                              SUPPORTING LOCAL FUNDRAISING

    Aim                                                Aim                                                Aim                                                Progress
    By 2025, we want all edible surplus food           By 2020, we’ll launch an education programme       Between 2017 and 2025, we aim for M&S              This year, 502 of our stores in the UK and ROI
    from M&S stores, key franchises and direct         in the UK in partnership with others to promote    operated and key franchise stores worldwide        have adopted a charity of the year and helped
    M&S Food suppliers worldwide to be diverted        the importance of wellbeing, employability and     to make a positive difference to their local       to raise over £1m for local and national charities
    for human consumption.                             sustainability in schools and colleges.            community by supporting local charities            working in the local community. In addition,
                                                                                                          through fundraising, volunteering and              514 stores have donated surplus food to local
    Progress                                           Progress
                                                                                                          product donations.                                 charities as well as contributing most of the
    See the Food waste (reduction) commitment          Having commissioned research, in 2018/19 we
                                                                                                                                                             30,534 hours of work-time volunteering.
    on page 31 for progress at UK M&S stores.          plan to develop content focused on selected
                                                       aspects of health and wellbeing, employability     RAISED FOR CHARITY IN THE UK AND ROI               M&S stores in our joint venture in India also

                                                                                                          £1.2m
                                                       and sustainability. This content will then                                                            raised in excess of £40,000 supporting two
    VOLUNTEERING**                                     be trialled in schools connected to our                                                               main charities of CRY (Child Rights & You)
                                                       ‘Helping transform communities’ commitment.                                                           and OGAAN Cancer Foundation.
                                                       If successful we intend to make this content
                                                       available to other schools and colleges
    Aim
                                                       in 2019/20.
    Between 2017 and 2025, we’ll support M&S
                                                                                                          HELPING TRANSFORM COMMUNITIES**
    colleagues worldwide to provide one million
    hours of work-time community volunteering.
    Progress                                           UK COMMUNITY SPACE**                               Aim                                                Progress
    In 2017/18, we provided at least 30,534 hours                                                         By 2020, in 10 locations we will have completed    This year, we’ve met representatives from
    of work-time volunteering, including our                                                              programmes that aim to secure meaningful           communities to find out what they want us to
    Making Every Moment Special in the                 Aim                                                economic, social and environmental benefits        achieve in their local area. There have been
    Community event, which was run across              By 2025, 50% of our full line M&S operated         in the communities around our stores and           differences from one area to another, but it is
    the UK and ROI in June 2017.                       stores and offices in the UK will have space       beyond. We’ll build on our insights and roll out   clear that ‘education and employability’ and
                                                       available for community groups, charities and      programmes in 100 further locations in the         ‘social wellbeing’ should be our two priorities.
                                                       local interest groups to use.                      UK and internationally by 2023, then share
                                                                                                                                                             We’re now planning a series of trials to test
                                                                                                          our learnings with 1,000 locations by 2025.
                                                       Progress                                                                                              different approaches.
                                                       Our aim is that by 2025, around half of our
                                                       larger stores in the UK will regularly provide
                                                       space for the use of community groups,
                                                       charities and local interest groups. We’ve         “The kids are bored and they fight for something to do.
                                                       started to research the best ways of providing       They need something else to focus on.”
                                                       this space and the number of M&S stores that
                                                       already do so.                                      MEMBER OF THE COMMUNITY LIVERPOOL

** Assured by DNV GL
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