WOOLWORTHS HOLDINGS LIMITED - 2019 Good Business Journey Report - Woolworths Holdings ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
WOOLWORTHS HOLDINGS LIMITED
2019 Good Business Journey Report
START
M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
This report is interactive.
NAVIGATING
Navigation tools are at the top right of each page and throughout the report:
OUR REPORT
Home Video Go to page
Back to contents page Internet required within document
IN COMMITMENT TO OUR
GOOD BUSINESS JOURNEY, THIS REPORT
IS ONLY AVAILABLE DIGITALLY.
Click to download or update to
the latest Adobe Acrobat Reader
Access additional Interactive indicator Print
information on More detailed content
the web can be found
DOWNLOAD ADOBE ACROBAT
Access to the internet is required for
Website content and Download functionality
WHL 3 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 4
M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
GOVERNANCE FO RWARD - LO O KI N G STATEM E NTS
The Sustainability Committee, a sub-committee of the Certain statements in this report may constitute forward
OUR GOOD BUSINESS
Woolworths Holdings Board, has oversight of the Group’s looking statements which, by their nature, involve risk
sustainability strategy. The committee is chaired by a non- and uncertainty because they relate to future events
executive director and meets twice a year to review the and circumstances that may be beyond the Group’s control.
JOURNEY REPORT
The directors, therefore, advise readers to use caution
progress of the Good Business Journey programme, as well
regarding interpreting any forward-looking statements in
as to approve strategic matters arising for continuity of the the report.
programme. The Group Chief Executive Officer and the
Woolworths SA Chief Executive Officer are members of the
committee, together with three independent directors.
These independent directors each have significant expertise
and experience in a range of corporate sustainability
issues. The David Jones and Country Road Group Executive
This is the 2019 annual sustainability report of Woolworths Holdings Limited (WHL or the Group). APPROVAL AND ASSURANCE
Committees review Good Business Journey progress on a
The report covers the 53 weeks ended 30 June 2019 and provides an overview of our The Group has always looked at obtaining independent
regular basis as well. Both the David Jones and Country
Good Business Journey. opinion on our progress as a crucial part of gaining and
Road Group Boards also receive Good Business Journey
progress updates at each Board meeting. maintaining credibility with our stakeholders.
Ernst & Young Inc. (EY) has been engaged, for the
ninth consecutive year, to perform a limited assurance
engagement for certain quantitative information contained
in this current report as follows:
SCOPE AND BOUNDARY OF REPORTING FRAMEWORK
THIS REPORT • Water usage for Woolworths head office, stores, and
As with our 2019 Integrated Report, we have considered 2019 SUSTAINABILITY REPORTING SUITE distribution centres
The companies covered by this report are Woolworths, the application of the six capitals (as recommended by the
Complementing the Good Business Journey Report are a • Percentage of Woolworths branded fashion, beauty
Country Road Group, and David Jones. The report is aimed International Integrated Reporting Council) in our thinking
number of other reports targeted at specific stakeholders. and homeware locally sourced
at providing an overview of our sustainability strategy and about sustainability. Where this report predominantly covers
progress to date, as well as future plans. It is intended to the aspects related to human, social and relationship, and
be read in conjunction with the 2019 Integrated Annual natural capitals, the Integrated Annual Report offers details THESE REPORTS ARE THE:
Report and the 2019 Annual Financial Statements, as a about financial, manufactured, and intellectual capitals. This • Integrated Annual Report, which provides an overview of See EY’s 2019 independent assurance report
compendium of our strategy and performance. We follow report references the GRI Standards. The detailed GRI index the Group’s performance, value created for stakeholders,
a robust risk assessment approach to determine our risks can be found at www.woolworthsholdings.co.za. WHL is a contribution to society, and how the Group’s strategy,
governance, and performance add to the creation of Various other verifications and assurances by a range
across all focus areas as well as key stakeholder groupings. signatory to the UN Global Compact, and this report also
value over the short-, medium-, and long-term of audit, technical, and scientific experts are obtained
The principles that underlie the precautionary approach serves as our Communication on Progress (COP). We have
• A nnual Financial Statements, providing a more detailed over different aspects of our Good Business Journey.
inform our governance and enterprise risk framework as also aligned to the UN Sustainable Development Goals
understanding of the financial aspects of our business These are documented in an assurance summary in an
well as our strategy. With respect to our sustainability (SDGs), as well as national development priorities of all the
• S ummarised Remuneration Report, providing key features appendix to this report.
impacts, risk registers are developed for key business areas countries we operate in. The report also applies the King IV™
to ensure that all identified risks are documented, weighted principles. We welcome any feedback on our programme of the Remuneration Report
according to the agreed risk assessment method, and and reporting. Contact details for this purpose can be found The Integrated Annual Report and Annual Financial
at the end of the report. Statements, and Summarised Remuneration Report See Assurance Summary
action plans are identified to mitigate the risk.
are available online on our corporate website,
www.woolworthsholdings.co.za
Various appendices to this report, including a glossary, We feel that the combination of verification and
Icons used throughout this report other supporting documents and compliance information assurance processes provides coverage for all our
not included in these reports can be accessed on our material focus areas.
corporate website, www.woolworthsholdings.co.za
People & Social Health Sustainable Ethical Waste Water Energy &
Transformation Development & Wellness Farming Sourcing Climate Change
THE SUSTAINABILITY COMMITTEE HAS REVIEWED
The contents of this 2019 Good Business Journey Report are broadly comparable with that of the 2018 Good Business Journey Report. AND RECOMMENDED THE GOOD BUSINESS JOURNEY
See 2019 sustainability reporting suite REPORT TO THE BOARD FOR APPROVAL.
WHL 5 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 6
M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
Q U I C K ACC E S S TO S ECTI O N S
1 15 29
MANAGING PEOPLE AND SOCIAL
SUSTAINABILITY TRANSFORMATION DEVELOPMENT
43 53 67
HEALTH AND ETHICAL SUSTAINABLE
WELLNESS SOURCING FARMING
77 91 103
ENERGY AND
WASTE WATER CLIMATE CHANGE
WHL 7 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 8
M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
SUSTAINABILITY
COMMITTEE CHAIRMAN KEY MATTERS DISCUSSED BY
& GROUP CEO’S REPORT THE SUSTAINABILITY COMMITTEE
Now in its 12th year, our Good Business Journey (GBJ) continues We continue to make progress on the responsible sourcing of The Sustainability Committee (the committee) ensures that the sustainability strategy positions the Group as
to grow from strength to strength and is entrenched at the our key commodities such as cotton, timber, viscose, leather, a leader in responsible retailing in the countries in which it trades. It further oversees that the sustainability
heart of our Group. The ethos behind it, though, goes back soy, cocoa, and palm oil. This year, we were also proud to initiatives and objectives are effectively integrated into the business and that the Group operates in an
to the very beginning of the Woolworths business. We achieve a milestone, in that 100% of Woolworths’ food and environmentally responsible manner. Details of the committee composition and attendance at meetings are
have always been driven by a strong set of values and the pet food lines are currently GMO free. included in the Integrated Report, while the committee‘s terms of reference are available on our website at
recognition that we can only be successful if we address the Our people, customers, and local communities are the engine www.woolworthsholdings.co.za.
sustainability of our business across the entire value chain, that drive our business. During the year, David Jones launched
from within our own operations to our supply chain, our its Reconciliation Action Plan, a two-year strategic and KEY MATTERS DISCUSSED DURING THE YEAR:
customers, our community and our products. operational management framework approach to bridging
• Reviewed the Group’s sustainable development (Good Business Journey) strategy and performance
This can be challenging, particularly in the complex global actual and perceived gaps between Aboriginal and Torres
context within which we operate. There are concerns about Strait Islander peoples and non-indigenous employees, • D
iscussed contextualisation of the Group’s 2020 water target, taking into account the wide variety of
the carrying capacity of our planet, particularly with regards customers, and communities. work the Group is undertaking with regard to water stewardship, quality, and efficiency
to its ability to provide food and essential ecosystem services The Group contributed over R852 million towards corporate • C
onsidered customer feedback on their perceptions of the Good Business Journey with particular reference
to a growing population. The accelerating impacts of climate social investment causes. R83 million was contributed through to packaging
change are becoming increasingly visible, and the extreme the MySchool MyVillage MyPlanet programme and R611 million • Monitored the roll-out and implementation of our zero packaging waste to landfill vision and commitments
weather events related to it have not been experienced at in surplus food was donated to those in need. The annual • C
onsidered feedback on various local and internal stakeholder engagements as well as the ongoing
this scale and frequency before. This is putting additional Witchery White Shirt campaign raised A$1.7 million for the partnerships in initiatives to remain at the forefront of sustainability
strain on our food production systems and our globalised Ovarian Cancer Research Foundation. Furthermore, we
supply chains. At the same time, our customers’ perceptions • Monitored international developments in sustainable fibres and the Group’s ethical sourcing strategy
spent over R146 million in skills development initiatives for our
around health and wellness are changing, as more and more employees. Through the implementation of our GBJ we have • M
onitored the restructuring of the regional sustainability team in Australia and alignment of the Australian
people are shifting to healthier lifestyle choices, which, in turn, achieved R1 424 million in operational and process savings group’s programme with that of the Good Business Journey
impacts their purchasing decisions. This is coupled with the to date. • C
onsidered assurance coverage of the Good Business Journey focus areas and appointed the report’s
continuing focus on plastic and packaging. Operating in South assurance service provider
We are immensely proud of the recognition we have
Africa, we are also deeply conscious of our role in the broader
received over the last year for our GBJ performance and
community, particularly in these stressed economic times.
related reporting, including our inclusion in the Dow Jones Topics related to people and transformation, employee health and wellness, and social development were
Looking back on the past year, we continued delivering Sustainability Index and FTSE4Good Emerging Index Series. discussed by the Social and Ethics Committee during the year. Further information on these topics is provided
on our ambition of zero packaging waste to landfill via
in the Social and Ethics Committee Report.
a number of initiatives across the various companies in
LOOKING AHEAD
the Group. A significant development was Woolworths
rolling out plastic-shopper-bag-free stores supported by Our vision is to be one of the world’s most responsible
See Integrated Report
the development of new, low-cost reusable bags as an retailers, and embedding the GBJ remains one of our key
alternative to the traditional plastic bag. The business also strategic focus areas. We aim to continue to do business in See Social and Ethics Committee Report
removed plastic straws and cutlery from stores as well as the most transparent and ethical way possible, managing our
plastic-stemmed earbuds. Numerous other projects are in environmental and social impacts in our value chain. This aligns
the works to deliver the ambitious target. At the same time, to our Woolworths Holdings values, and is nothing less than
it is important to note that we are not on this packaging what our stakeholders expect. “WE BELIEVE WE CAN CONTINUE TO DO GOOD
journey alone and continue to collaborate with a variety of
stakeholders on a range of issues. Simon Susman
BUSINESS BY DOING BUSINESS IN A GOOD WAY,
The sustainable sourcing of our products was a key focus Chairman, Sustainability Committee CREATING REAL VALUE FOR OUR STAKEHOLDERS.”
area during the year. As part of our commitment towards
increasing transparency with our customers, both Country – Simon Susman, Chairman, Sustainability Committee
Ian Moir
Road Group and David Jones published their supplier lists and
Group Chief Executive Officer
signed the Bangladesh Accord on Fire and Building Safety.
WHL 1 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 2
M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
A TRIBUTE TO
SIMON SUSMAN
From Hubert Brody, Deputy Chairman
It is with great gratitude that we say farewell to
Simon Susman at our 2019 Annual General Meeting.
SIMON WAS ALSO
PARTICULARLY
INSTRUMENTAL
Simon has been part of Woolworths for almost 40 years and his contribution to the Group has been
invaluable. Notably, he was the architect and driving force behind our very successful Food business and
IN INSPIRING AND
further held a number of top executive positions in the Group before becoming the Chief Executive in 2000. IMPLEMENTING OUR
Simon was also particularly instrumental in inspiring and implementing our Good Business Journey.
Through this programme, the Group continually strives to do business in a way that is deeply
GOOD BUSINESS
sustainable, both socially and environmentally. JOURNEY. THROUGH
Simon will become Honorary President upon conclusion of the 2019 WHL Annual General Meeting, where
he will step down as a director. He will provide support and advice to the Board and continue his
THIS PROGRAMME, THE
deep association with the Group by devoting his time to the continued advancement of GROUP CONTINUALLY
WHL’s participation in civil and corporate society.
On behalf of the Board, management and all our employees, we wish to extend our deepest
STRIVES TO DO BUSINESS
thanks and appreciation to Simon for the passion and wisdom that he has shared with us and for IN A WAY THAT IS
building Woolworths into a company that is deeply rooted in values, passionately delivers on
sustainability, and brings real value to all stakeholders. DEEPLY SUSTAINABLE,
BOTH SOCIALLY AND
ENVIRONMENTALLY.
WHL 3 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 4
M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
HIGHLIGHTS & ACHIEVEMENTS
(JULY 2018 – JUNE 2019)
David Jones and Country Woolworths wins a Legends of Empowerment David Jones and Country
David Jones launches its Reconciliation Action Plan, a two- Road Group hold a Good Award at the 2019 Top Empowerment Awards. Road Group announced
year strategic and operational management framework. Business Journey focus week as two of 12 leading
at head office to increase representatives on the APCO
employee awareness and Collective Action Group,
engagement on sustainability. charged with overseeing the
progress of Australia’s 2025
Woolworths launches National Packaging Targets.
a new plant-based
protein range of foods.
Woolworths rolls out additional
Woolworths’ WBeauty joins plastic-bag-free Food stores and
forces with make-up maestro to Politix switches from plastic bags
Mimco celebrates ‘Sustainability Woolworths removes the stars, Sir John, to launch a to recyclable paper bags.
Week’, highlighting its efforts in Witchery donates A$1.7 million to the plastic-stemmed 10-piece, cruelty-free, and 100%
designing more sustainable products. Ovarian Cancer Research Foundation. earbuds from stores. vegan make-up collection.
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
MySchool MyVillage MyPlanet Woolworths
receives three International Woolworths Palmyra store receives a 6-star rating David Jones and Country Road Group become removes plastic
Loyalty Magazine Awards, from the GBCSA, the highest rating possible. signatories to the Bangladesh Accord on Fire and cutlery and straws
including the Best Corporate Building Safety, and, as part of their commitment from stores.
Social Responsibility Initiative towards increasing transparency with customers,
Linked to Loyalty Award. Woolworths Waterstone publish their supplier lists.
store receives a 4-star Woolworths pies
rating from the Green become the very
Building Council of first South African
made food products Country Road Group launches a collection made from traceable and verifiable
South Africa (GBCSA).
containing certified Australian merino wool and introduces a range of men’s ‘low water wash’ denim.
sustainable palm oil.
David Jones and Country Road Group host the first See full list of awards, recognition, highlights
Woolworths trials a plastic-bag-free Food Australian Packaging Covenant Organisation (APCO) and achievements for the year
store and rolls out low-cost reusable bags. Clothing Fashion and Footwear Industry Roundtable.
WHL 5 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 6
M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
ABOUT THE
WHL GROUP
Woolworths Holdings Limited (WHL) is a southern hemisphere retail Group that has been listed on the Johannesburg Stock
Exchange Limited (JSE) since 1997. It is one of the top JSE-listed companies and has a market capitalisation of R51.3 billion as at
30 June 2019. Approximately 41% of revenue is derived from Australian operations. The Group trades through three operating
subsidiaries, which include Woolworths Proprietary Limited (Woolworths or WSA), Country Road Group Proprietary Limited
(Country Road Group or CRG), and David Jones Proprietary Limited (David Jones or DJ), acquired as of 1 August 2014 and
formerly listed on the Australian Securities Exchange (ASX). Woolworths Financial Services Proprietary Limited (WFS) is a joint
venture with Absa Bank, which holds the controlling interest.
From an operating perspective, Woolworths is the biggest contributor to Group turnover and profit and thus has the largest
sustainability impact across the Group.
58.9%
PROFILE Leading South African Group turnover (including
retailer offering a range of concession sales)
primarily private label products
OFFERING A selected range
of quality fashion, beauty, 75.3% Group adjusted profit
before interest and tax
homeware, and food products.
TRADING SPACE
Financial services are provided
733 000 m2
through Woolworths Financial
Services (WFS) 90.0% of targets achieved on
sustainability scorecard
PROFILE One of Australia’s
leading premium department
27.1% Group turnover (including
concession sales)
stores
OFFERING Leading international 6.7% Group adjusted profit
before interest and tax
and local brands with a private
RADING SPACE
T
label clothing, homeware, and
475 000 m2
food offering
83.0% of targets achieved on
sustainability scorecard
14.0%
Group turnover (including
concession sales)
PROFILE Leading Australian
speciality retailer
OFFERING Stylish, high-quality
18.0% Group adjusted profit
before interest and tax
apparel, accessories,
TRADING SPACE
footwear, and homeware
121 000 m2
84.0% of targets achieved on
sustainability scorecard
On a comparable 52-week basis as at
30 June 2019.
WHL 7 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 8
M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
OVERVIEW OF THE GOOD BUSINESS JOURNEY
OUR VISION IS TO BE ONE OF THE WORLD’S MOST RESPONSIBLE RETAILERS
GOOD BUSINESS The Good Business Journey facilitates our vision to be one of the world’s most responsible retailers. It is our Group-wide plan to make a difference for our people, our communities, and for the environment.
JOURNEY STRATEGY Embedding the Good Business Journey is one of the WHL Group’s strategic focus areas.
See more information on the Group’s strategic focus areas in the Integrated Report
Our material issues ultimately inform and influence our Good Business Journey strategy and focus areas. In order to identify our material issues, each year, we consider the operating and sustainability context, the results of stakeholder engagement, as well as our strategic risks.
WHL GROUP The Group has identified talent and change management and responsible retailing as material issues at a macro level. These issues are further broken down in our Good Business Journey and are addressed through the related eight focus areas and are reported on in this report.
MATERIAL ISSUES
See more information on the Group’s macro-level material issues in the Integrated Report
GOOD BUSINESS
JOURNEY FOCUS
AREAS
People & Transformation Social Development Health & Wellness Sustainable Farming Ethical Sourcing Waste Water Energy & Climate Change
We need to create a safe To address the risks to
and healthy working To manage our ethical We need to reduce the our business from climate
As a responsible We need to contribute A constant supply of
WHY THE FOCUS Organisational diversity environment to enable sourcing risk, we need to amount of waste sent to change, we need to ensure
corporate citizen we need to a sustainable food clean water is essential to
AREAS AND and transformation are employees to thrive. As a create better lives for workers landfill across our value chain, that appropriate adaptation
to contribute to meeting the system, actively managing our value chain, from the
MATERIAL ISSUES ARE important for enabling Food retailer, we should in our supply chain and and drive a market for and mitigation actions are
economic and societal needs environmental impacts and the growing of commodities to
IMPORTANT TO THE effective delivery of our inspire our customers to contribute to increasing recycled materials by using taken across our value chain
of the communities where welfare and dignity of animals the manufacture and sale of
WHL GROUP business strategy. make healthy choices by demand for responsibly them in our operations, to manage and reduce
we operate. in our supply chain. our products.
providing a wide range of sourced commodities. packaging, and products. energy consumption and
healthy food options. carbon emissions.
WHL GROUP GOOD
BUSINESS JOURNEY
Refer to People and Contribute R3.5 billion to our Have at least one sustainability attribute for all directly Responsible sourcing of all key Phase out single-use plastic Save 500 billion litres of Halve our energy impact
GOALS AND
Transformation chapter communities by 2020. sourced products by 2020. commodities by 2020. shopping bags by 2020. water by 2020. by 2020 and source all our
COMMITMENTS
All our packaging will be energy from renewables
reusable or recyclable by 2030.
by 2022.
Refer to People and Progress is varied across Energy impact: Exceeded target
PROGRESS TO DATE On track Progress is varied across the Group On track Water target is being reframed
Transformation chapter the commodities Renewable energy: On track
Each of our focus areas has specific strategies, management approaches, related goals and targets, all of which are discussed further in this report, along with our performance during the year and any challenges faced.
To ensure consistency across our operations, each business unit has a sustainability scorecard against which they are measured twice per annum. This scorecard includes a set of relevant Good Business Journey objectives, targets, and key performance indicators
aligned to these eight focus areas and Group goals and commitments. These sustainability scorecards are rolled up to a company level and Group level to assess the performance of the Group against the Good Business Journey goals and commitments.
WHL 9 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 10
M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
SUSTAINABILITY RISKS
As a fashion, beauty, home, and food retailer, we are faced with sustainability risks that may impact
our business, both in our direct operations and in our value chain. Our response to these risks is managed
through our Good Business Journey.
BRAND REPUTATION
• Inability to meet stakeholder expectations for reducing and positively influencing environmental and social impacts in our value chain
• Inability to meet publicly stated Good Business Journey Group goals and commitments
CLIMATE CHANGE WATER QUALITY WASTE ETHICAL
AND ENERGY AND SCARCITY TO LANDFILL SOURCING
OUR CONCERNS OUR CONCERNS OUR CONCERNS OUR CONCERNS
• Failure to reduce carbon emissions and adapt to and mitigate • Food security and food price inflation • Lack of widely available recycling infrastructure and technology • Increasing expectations for transparency and traceability in the
against physical climate change impacts • Contamination of available water resources through pollution • Availability of cost-effective alternatives supply chain
• Threat to supply and quality of raw materials • Persistent drought • Balancing the need for packaging to minimise spoilage against • Increasing requirements to manage third-party social and
• Food security and food price inflation • Threat to supply and quality of raw materials increasing expectations for packaging reduction environmental risk and animal welfare in the supply chain
• Climate change impacts on seasonality and buying patterns • Increasing cost of doing business • Non-compliance with applicable laws and regulations • Balancing increasing legislative requirements for supply chain
• Increasing cost of doing business • Failing infrastructure localisation with the quality, cost, and availability of goods in the
• Availability of electricity rest of Africa
• Failing infrastructure
RELATED GBJ FOCUS AREAS RELATED GBJ FOCUS AREAS RELATED GBJ FOCUS AREAS RELATED GBJ FOCUS AREAS
Sustainable Farming Energy & Climate Change Sustainable Farming Water Waste Sustainable Farming Ethical Sourcing
MITIGATIONS MITIGATIONS MITIGATIONS MITIGATIONS
• A chievement of 2020 goal to halve our energy impact • Implementation of water efficiency initiatives in our direct operations • C ommitment to achieving our vision of zero packaging waste • Commitment to responsible sourcing of all key commodities by 2020
• Commitment to sourcing all energy from renewables by 2030 • Implementation of Woolworths’ Farming for the Future programme to landfill • Publication by Country Road Group and David Jones of their
• Implementation of energy-efficiency initiatives in our • Implementation of the green factories programme with • Phase out of single-use plastic shopping bags and introduction of supplier lists
direct operations Woolworths’ suppliers low-cost reusable bags • Mandatory compliance by suppliers with our Codes of Conducts
• Solar photovoltaic installations across the Group • Implementation of a detox strategy to remove harmful chemicals • Proactive stakeholder engagement with the packaging and and Good Business Journey-related position statements
• Implementation of Woolworths’ Farming for the Future programme from clothing manufacture recycling industries • Sourcing commodities through recognised international certification
• Implementation of the green factories programme with • Involvement in water stewardship projects in key Woolworths • Trialling sustainable packaging options and verification programmes
Woolworths’ suppliers sourcing regions • Recycling of waste from direct operations • O ngoing training of staff and suppliers on ethical sourcing topics
• Optimisation of Woolworths’ delivery footprint • Product innovation • Provision of customer takeback facilities at Woolworths stores • Proactive stakeholder engagement with governments and regulators
• Donation of surplus food and clothing to charities
• Inclusion of clear on-pack recycling labelling
WHL 11 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 12M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
OUR VALUE CHAIN OUR STAKEHOLDERS
As a diversified-product retailer in food, fashion, beauty, and home with a global footprint, we We engage with our stakeholders and shareholders to understand what matters most to them and how we
recognise the significant challenges associated with the complexity of working within a multi-tiered can deliver a sustainability strategy that allows us to meet their expectations without compromising our
and geographically dispersed supply chain. value proposition as a business.
Our material issues, risks, and impacts are spread across our entire value chain, which spans from
raw material production to customers and the end-uses of our products. The WHL Group is committed to that these engagements facilitate value of stakeholder engagement. Our
developing and sustaining quality, creation so that they are beneficial to stakeholders, their interests, and
long-term relationships with all our key the Group and our stakeholders. level of influence in the Group’s
stakeholders, including our employees, The Board is committed to stakeholder operations will vary according to
customers, suppliers, communities, engagement with the interactions, geographical location, business
OUR VALUE CHAIN business partners, unions, NGOs, monitoring and implementation of area, and the nature of their interest;
academia, industry bodies, government, stakeholder engagement being the manner, level and extent of our
regulators, and the media, among the responsibility of respective engagements are driven by their
others. Our stakeholder relationships management teams in the Group. The influence, interests, expectations, and
Communities
help foster an environment that helps us Social and Ethics Committee annually concerns. These relationships are
Environment build on the growth and prosperity of reviews the Group’s self-assessment depicted in the graph below.
Economy
our Group. Our philosophy is to engage
authentically, openly and inclusively with
our stakeholders, allowing us to better
understand and benefit from their Shareholders Customers
insights, concerns, and priorities and to Debt Funders
Components seek areas of potential partnerships,
Agriculture Suppliers & Processors WHL operations Customers mitigate risks to the business, and Government
and Regulators Suppliers
create mutual trust and respect. Media
Employees
Level of influence
This is integral to the ongoing, daily Business Partners
Raw material Processing Buying Purchasing management of the Group and key
production
Production Logistics/distribution Market influence to identifying the material issues that Competitors
Function NGOs and Activists
Packaging Retailing Use and disposal have the potential to significantly Unions
of goods impact our performance and Industry Bodies
Auditing Core business
functions sustainability. We ensure our
engagements are based around issues Communities
that are both salient for the business
and aligned to national priorities, and
Level of interest in WHL activities
With an understanding of our value chain, we are able to adopt a systems-thinking-based approach to addressing our
material issues and risks. We demonstrate in each chapter of this report where in our value chain each of our eight Good In the appendices to this report, a full table is included where we have listed our key stakeholder groupings; their material
Business Journey focus areas and related material issues and risks is relevant. needs, expectations, and concerns; and how we create value for them.
Read more on the supply chain in the Ethical Sourcing chapter See Stakeholder Engagement
WHL 13 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 14M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
Q U I C K ACC E S S TO S ECTI O N S
PEOPLE AND
TRANSFORMATION 17
SUMMARY
OF RESULTS
STRATEGY &
18
MANAGEMENT APPROACH
“Central to who we are as a Group is our commitment to our
customers and our people. Therefore, our focus on our people is 19 23
at the forefront of driving a successful Group strategy.” TALENT DEVELOPMENT
AND RETENTION
TRANSFORMATION,
DIVERSITY, AND INCLUSION
– Melanie Naidu, Group Head of Human Resources
27
TRANSFORMATION IN
THE SUPPLY CHAIN
WHL 15 / 2019 GOOD BUSINESS JOURNEY REPORT Azania Mqayi at the Woolworths Palmyra store coffee cart. 2019 GOOD BUSINESS JOURNEY REPORT / WHL 16M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
SUMMARY STRATEGY AND
OF RESULTS MANAGEMENT APPROACH
Group Employee Headcount STRATEGY Woolworths SA CEO, was established in 2016 as a
vehicle to deliver a modern and connected people
The Vision of WHL is to be one of the world’s most
experience to our employees. As part of this,
responsible retailers. This vision reflects our deep
Woolworths South Africa launched refreshed values in
46 831
commitment to doing good business for our customers,
2017, and we continue to engage across the business to
our employees and our planet. Our Group purpose of
ensure that every employee understands the role they
adding quality to life for our customers and our people is
play in bringing these values to life. In the last year, we
WHL reflected by the fact that our commitment to our customers
also successfully piloted an employee app called
and our people is central to who we are. Our Group
‘MyWoolies’ as part of building a modern and connected
people strategy ensures that we create a unique employee
culture in the business.
experience to deliver an exceptional customer experience.
We have regional people strategies with Group oversight
and through this, we are able to deliver this compelling IN AUSTRALIA, OUR REGIONAL PEOPLE STRATEGY IS
value proposition. ACHIEVED THROUGH ENSURING THAT WE ENCOURAGE:
33 621 Woolworths
5 601
Country Road Group
7 609David Jones
As a Group, it is important for us to ensure that we employ
and invest in people who share our purpose and values
and have the capability to grow the business into the future.
• A
more integrated and sophisticated approach to culture,
values, talent development, succession management,
leadership development, team member experience, and
To this end, it remains critical that we embed and drive an employee relations
Employee Value Proposition that will continue to attract, • Inclusivity and diversity through making sure that
engage, and retain the best, diverse talent required to our employees are given a voice. The first regional
deliver our Group strategy. engagement survey was implemented for David Jones
Our Group people strategy is, therefore, sharply focused and Country Road Group. This is aligned to the regional
on ensuring that we create an environment in which our people strategy of focusing on understanding workplace
Woolworths Supplier and Enterprise people can thrive and add value to the business. culture in order to build an inclusive workplace
Development programme • A
dding value so our customers, our people, our partners,
and our communities know what we stand for through a
shared values roll-out
• Building a culture of collaboration
MANAGEMENT APPROACH
Our values inform and underpin the way we do business
across the Group. We have continued to entrench a
values-based culture across all our operating entities as IMPACT IN THE VALUE CHAIN
an anchor for our brand, our people and customer
R308.4M experiences, and, ultimately, as a key contributor to our
organisational sustainability into the future. Communities
46
Environment WHL
operations
Procurement spend with supplier In conjunction with this, building future-focused Economy
450
development beneficiaries capabilities among our leadership remains a key priority
throughout the Group to enable sustainability of our
SED beneficiaries Suppliers &
2018: R246M values-based culture. Customers Processors
2018: 49 2017: NR* Youth appointed In South Africa, the Connected People Council, a
2017: 48 *not reported in 2017 at Woolworths collective forum of senior executives chaired by the
WHL 17 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 18M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
TALENT DEVELOPMENT
AND RETENTION
Having the best talent in the industry We understand that attracting,
in the regions in which we operate is developing, and retaining talented
key to our success. At the same time, employees is critical to delivering
competition for talented employees is our strategy and, therefore, we CASE STUDY
intensifying. Talent development, talent remain passionate and committed
management, and succession planning to sustainable transformation and
YOUTH EMPLOYMENT SERVICE (YES): WOOLWORTHS SOUTH AFRICA
are, therefore, vital. Our integrated steadfast in our belief that skills Woolworths is committed to making a difference in South Africa and has been involved in making a
and streamlined talent management development is a key enabler of this. difference through education by participating in various initiatives like internships, graduate programmes,
and succession planning engagement We are also clear in that delivery career exhibitions, and work experience opportunities for unemployed youth and people with disabilities. In
sessions and processes have allowed of transformation through skills March 2018, we became one of the companies partnering with YES (Youth Employment Services) – a CEO-led
us to focus on talent across the Group development requires us to extend government initiative launched by President Cyril Ramaphosa aimed at providing one million youth with work
in a more focused and impactful beyond skills development within the experience and helping them gain valuable skills. In the last year, we have collaborated closely with YES and
manner, with the appropriate level Group, and includes us playing a a number of external partners to build an understanding of how to implement YES within the Woolworths
of strategic oversight. In addition, role in enabling education, capacity The Woolworths HR environment. Participating in YES has also offered us the opportunity to place learners in entry-level roles and
our continued focus on leadership building, and skills development Learning and Development to build a pipeline of ready-now skilled people for core/scarce roles.
development to build leaders now and targeted at improving the employability team was named the best YES employees have been inducted at various Woolworths facilities across the country. At stores, our
into the future is part of creating an of graduates from various institutions. HR team in South Africa YES employees will be rotated around the store at approximately three monthly intervals to ensure they
environment that attracts, develops This, ultimately, improves the calibre of for 2018 by the Institute of experience the complete retail life cycle. They will attend functional and technical training specific to their
and retains the best talent. our future talent pipeline. People Management job role and will attend life skills and financial wellness workshops. Each head-office-based employee will
receive a personal development plan based on their specific role, which ranges from visual merchandiser to
marketing assistant and graphic designer.
Training spend Approximately 450 young people have been offered this opportunity through Woolworths to date.
R121.6M Woolworths
R15.6M
Country Road Group
R9.4MDavid Jones
TALENT DEVELOPMENT IN SOUTH AFRICA
Given that our business model depends on specialist skills which are not always readily available in the market, skills
development is a key anchor for our talent strategy as well as our employment equity and diversity strategies. Within
Woolworths South Africa, the focus is on human capital transformation, specifically employment equity and skills Woolworths YES employees. From left to right: Nadine Poggenpoel, Lungisa Mjanyelwa, Tara Louw, Warren De Kock, Yonela Gozini,
Anastacia Hendricks, Terri Groenewald.
development, and we build skills for the company and the country.
WHL 19 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 20M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
THE A+ FINANCE TALENT DEVELOPMENT IN AUSTRALIA INDUSTRY-BASED WORKPLACE EXPOSURE
ACADEMY: WOOLWORTHS One of the key challenges highlighted in 2019 was the need to have a
SOUTH AFRICA consistent approach and view of talent across the Group. In addressing SOUTH AFRICA AUSTRALIA
Aspiring chartered accountants are this, the key focuses for 2019 have been to optimise and streamline the
Annually, we offer opportunities ranging from bursaries Witchery collaborates with the RMIT University in Melbourne
now able to complete their three talent and succession process to ensure that talent engagement sessions
for students to co-op student placements, workplace to offer a work placement programme for selected visual
years of articles at Woolworths. The are objective, strategic, and outcomes driven. Embedding a culture of
experience programmes for Sector Education and Training merchandising students. Country Road offers 12-month
Woolworths Finance Department, as regular talent discussions that are owned and prioritised by the leaders
Authority (SETA) unemployed graduates, through to job graduate positions for students to be mentored by Country
part of an initiative undertaken by of the organisation remains central to the people strategy. We have also
placement. In the last year, we offered 251 employee Road’s visual merchandising team.
the A+ Finance Academy, has been continued rolling out the values conversations throughout the organisation
dependent bursaries amounting to R5 million. We also
accredited by the South African Institute as a priority.
hosted 102 co-op students for workplace experience,
of Chartered Accountants (SAICA) as a 57 of whom were employed thereafter on long-term
Training Outside of Public Practice (TOPP) contracts of at least 12 months.
training office. This is a realisation of our
Finance People Strategy to grow our Through the Woolworths’ Inside Retail programme, we REMUNERATION
own talent and provides an opportunity collaborate in developing TVET college lecturers’ capacity The Group‘s remuneration philosophy is to ensure
for our own people who desire to forge LABOUR TURNOVER by providing them with industry-based workplace that employees are rewarded appropriately for their
careers as chartered accountants, exposure. Last year, 29 lecturers were immersed for five contribution to the execution of the Group strategy.
The labour turnover rate for WHL was 21.2% (WSA: 20.6%; DJ: 24.4%;
to do their qualifying articles without days in the dynamic world of retail, which then translates An integral component of the Employee Value Proposition,
CRG: 21.7%) including stores, corporate offices and supply chain, an
having to leave the business. In addition, into more up-to-date and relevant content being shared the Remuneration Policy has been designed so that it
overall decrease of 3.4% from last year.
employees who may not have had with their students. (This excludes the SETA-funded lecturer will continue to attract, engage, retain, and motivate
the opportunity to complete tertiary development programme where we hosted 24 lecturers the right, diverse talent required to deliver sustainable
studies will now be able to complete a over five days at no additional expense to us.) profit growth.
Learnership through Woolworths Finance
to obtain their NQF 3 Level Accounting
Technician South Africa Certificate.
21.2% WHL
21.7%
Country Road Group
The Remuneration Policy is designed to achieve alignment
between the Group‘s business strategy and the behaviours
of all employees against the values of the Group. The
The qualification is the South African policy recognises and rewards individual responsibility,
Institute of Chartered Accountant’s performance, and behaviour in the achievement of the
102
entry- to mid-level designation that 2018: 24.7% 2018: 23% business areas’ goals. This policy applies to all Group
helps learners move from being unskilled 2017: 25.5% 2017: 27.3% employees, and participation in short- and long-term
and unqualified to being respected incentive schemes is dependent on an individual‘s role and
accountancy professionals. Both these co-op students on learnerships level within the Group.
at Woolworths
24.4%
programmes enable employees to
20.6%
The Remuneration Policy and the implementation thereof
develop the relevant skills for accounting are focused on achieving a fair and sustainable balance
competency in the workplace. between guaranteed pay, short-term incentives, long-term
Woolworths David Jones incentives, and retention schemes for these employees. The
fair and responsible application of the Remuneration Policy
2018: 23% 2018: 33% (on a Group-wide basis) is guided by the King IV™ principles
Woolworths has been
relating to fair and responsible remuneration, which have
R5M
accredited by the South 2017: 23.7% 2017: 31.8%
been adopted by the WHL Group.
African Institute of Chartered
Accountants (SAICA) as a TOPP
training office for prospective worth of employee dependent
Chartered Accountants See Group Employee Information bursaries offered See Remuneration Report
WHL 21 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 22M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
TRANSFORMATION,
DIVERSITY, AND INCLUSION
WHL is committed to respecting human rights, which includes EMPLOYMENT EQUITY PEOPLE LIVING WITH DISABILITIES
ensuring that all employees and others connected with our Employment equity remains a key focus of the Group’s Through BBBEE legislation, the Department of Trade and Industry (dti) has recommended a target that 2% of
business are treated with dignity and respect. We value transformation agenda for Woolworths South Africa. the company workforce be black people with disabilities. In South Africa, our strategic approach to people
diversity and inclusion and are committed to non-sexism and Currently, historically disadvantaged South Africans (HDSA) with disabilities is aligned with our people and transformation strategies and the national skills development
non-racism across our policies, practices, and daily operations. represent 95.8% of total Woolworths permanent employees, strategy. The implementation of this strategy is being carried out in partnership with the Wholesale and
It is important for us as a Group to continue to focus on our of which 62.1% are in middle to top management positions. Retail SETA. We currently have 569 people with disabilities (2018: 638) working for Woolworths.
transformation initiatives and evolve them so that we are Women represent 64% of HDSA permanent employees.
experienced as a truly transformed employer. Ensuring we We have 12 HDSA members at top management in
have a workplace and environment where all our employees Woolworths SA, comprising executive directors on the
feel welcomed, where they believe and know they are Board and members of the executive committee. Of these,
treated fairly and are not discriminated against, is a critical 54.4% are black and 45% are female, with 27.3% being
part of creating an environment where our people can thrive black female. TRANSFORMATION, DIVERSITY, AND INCLUSION IN AUSTRALIA
and be part of growing a sustainable business. In Australia, transformation focuses on supporting Aboriginal and Torres Strait Islander peoples, including those currently
In addition to our overarching commitment to transformation, working for the business and those seeking employment, as well as customers. Compulsory Equal Employment Opportunity
diversity, and inclusion, each region has a key focus for (EEO) training is completed by all new employees to increase awareness of these issues, and David Jones has implemented
transformation that is determined by the context and a Reconciliation Action Plan.
environment in which it operates. As a Group, we continue
to support these region-specific strategies. Gender parity
95.8%
remains a focus across the Group. EMPLOYMENT EQUITY AND GENDER EQUALITY IN AUSTRALIA
Both Country Road Group and David Jones are committed to equal opportunity in the workplace for all regardless of age,
career status, disability, industrial activity, physical features, political belief or activity, pregnancy, race, religion, gender, or sexual
HDSA breakdown of Woolworths preference. The two companies adhere to the Workplace Gender Equality Agency compliance-based report, based on the
permanent employees 2012 Gender Equality Act of Australia, and have submitted annual reports detailing female representation in the workplace for
FY2019 as:
TRANSFORMATION, DIVERSITY, AND
INCLUSION IN SOUTH AFRICA
In South Africa, we are all tasked with implementing a Proportion of women:
workplace Black Economic Empowerment (BEE) strategy,
in response to the national Broad-Based Black Economic
Empowerment (BBBEE) legislation, including the application
of the BEE Codes of Good Practice of 2013. Within this
context, in Woolworths South Africa, the focus from a people
perspective is on human capital transformation, specifically
Employment Equity and Skills Development.
Compliance with BEE legislation ensures that Woolworths
continues to contribute meaningfully towards national priorities
to transform the industries in which we operate, to make the
economy more inclusive. For the 2018 financial year, Woolworths
36% male
64%
female
88%
Country Road Group
77%
David Jones
attained a Level 7 contributor level as independently assessed
in September 2018 (assessment conducted in arrears).
See 2018 BEE Certificate See Group Employee Information See Group Employee Information
WHL 23 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 24M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
EMPLOYEE ENGAGEMENT
We recognise that our people
CASE STUDY are one of our key stakeholders in
building a sustainable business and,
DAVID JONES RECONCILIATION as such, our strategic intent is to
ACTION PLAN (RAP) build a culture of ongoing leader-led
engagement. In addition, in each
As one of Australia’s oldest companies, David Jones has recognised of the entities we regularly conduct
the role they can play in promoting reconciliation between company-wide employee opinion
Australia’s First Nations peoples and the broader community. surveys to inform our understanding
The David Jones Reconciliation Action Plan (RAP) was launched to of how our people experience
inform the strategic and operational management framework for working for us, how we measure
their approach to bridging actual and perceived gaps between against their expectations, and
Aboriginal and Torres Strait Islander peoples and non-indigenous where we can improve. In this past
employee and customer communities. The core tenants of this plan financial year, Country Road Group
are focused on: and David Jones launched the Shape
• N urturing mutually beneficial relationships with Aboriginal Our Culture regional survey. The
and Torres Strait Islander communities, peoples and participation rate was 58% with an
organisations, to ensure that our contribution towards overall engagement score of 66%.
reconciliation is made in a culturally safe manner that helps
to create meaningful change
UNION MEMBERSHIP
• P romoting and celebrating the richness of Aboriginal and
Torres Strait Islander cultures, values, and histories in a manner As a signatory to the United Nations
that respectfully connects our employees and customers with Global Compact, we subscribe to
Aboriginal and Torres Strait Islander communities freedom of association and the
effective recognition of the right to
• E nsuring that Aboriginal and Torres Strait Islander peoples and collective bargaining. This is also
businesses have access to the same opportunities as non- translated in our Supplier Codes
indigenous people and businesses of Conduct across the Group. In
• T racking progress and reporting with the goal of establishing a 2019, Woolworths union membership
solid baseline and then reporting how we are tracking against was 2.86% (2018: 3.33%).
our RAP commitments to ensure that the same discipline and
governance that applies to our Good Business Journey applies
to the management of our RAP
A RAP working group has been established to implement the
various elements of the plan. This plan is the foundation for a future
regional plan, inclusive of WHL Australia, and going forward, we
will be rescoping to regionalise it for increased scale and impact.
See David Jones Reconciliation Action Plan 2018 – 2020
Children celebrating the richness of Aboriginal and Torres Strait Islander cultures, values and histories.
WHL 25 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 26M A N AG I N G P E O P LE A N D SOCIAL H E A LTH A N D ETH I C A L S U STA I N A B LE WA STE WATE R E N E RGY A N D
S U STA I N A B I LIT Y TR A N S FO R M ATI O N D E V E LO PM E NT W E LLN E S S S O U RC I N G FA R M I N G C LI M ATE C H A N G E
TRANSFORMATION IN
THE SUPPLY CHAIN
SUPPLY CHAIN TRANSFORMATION
As a contribution to the broader country vision
of inclusive economic growth and a Woolworths’ CASE STUDY
commercial imperative of building a diverse
supplier base, Woolworths has a Supplier HEADBYTE RETAIL
and Enterprise Development (SED) programme.
In June 2018, in a focused initiative to build local skills and support the development of a small-to-medium
The programme intent is to remove barriers
enterprise, Woolworths entered into a three-year Supplier Development agreement with Headbyte Retail.
for emerging black and black women-owned
businesses to enter into our supplier base. At the Headbyte Retail is a 100% black-owned company which offers expert skills and services specialising in
heart of it is the unlocking of market opportunities enterprise application and technology solutions. They aim to help people grow and businesses to succeed,
for small and medium black and black women- and consist of a group of senior technical resources who have a proven track record of providing specialist
owned enterprises and further providing capital skills and support in technologies that Woolworths relies on to do day-to-day business. The ethos and motto
and relevant capacity building to deliver to of Headbyte Retail resonates with Woolworths’ values and the IT strategic objective of building a retail
supplier expectations. Woolworths is on a technology centre of excellence.
46 R2.7BN
purpose-led journey to transform entrepreneurial The Woolworths team, spanning Transformation Office, Governance, IT Leadership and Management,
passion and energy into sustainable, local, black Finance, Legal, and HR supported Headbyte by facilitating partnership agreements with best-of-breed
businesses absorbed in our supply chain. In the partners, helping define the business operating model, and constituting a steering committee to mentor
financial year under review, suppliers on the in revenues contributed and guide Headbyte’s business development.
• We contributed over R2 billion towards Supplier and Enterprise to black and black Headbyte Retail is a proud BBBEE Level 1 contributor to South African businesses with a strong CSI presence
revenues of small and medium enterprises Development programme women owned suppliers through various academic and developmental initiatives.
participating in our supplier base Thanks to the partnership agreement, Headbyte Retail was able to secure international work
• We contributed R2.7 billion in revenues to opportunities and to offer similar services to other retailers, thereby supporting the joint vision of local
black and black women-owned suppliers skills development.
in our supplier base Over the past year, Headbyte Retail has grown by 62.5% with respect to headcount and over the coming
• The 46 beneficiaries of our SED programme years aims to employ up to 50 people.
have grown from a total revenue of R246 million
at the beginning of the period to R293 million
by year end as a result of tailor-made support
provided by Woolworths and its partners
After more than 10 years on this journey,
Woolworths prides itself in ongoing learnings
from the successes and failures of small
businesses in different sectors of the economy.
All these learnings are being consolidated LOOKING AHEAD: PEOPLE AND TRANSFORMATION
into a future programme that will step up our
contribution to inclusive and sustainable
economic growth through small, medium and It is important for us a Group to continue to focus on our transformation initiatives and evolve these so that we are
R2BN+ R60.5M
micro enterprises (SMME) development in the experienced as a truly transformed employer.
new year. Within this context, the Group will continue to embed our shared values and focus on leadership development to enable an
inclusive culture that is appreciative of diversity. In addition, as a Group, we will continue to support the regions to identify
towards revenues of non-cash grant to transformation opportunities and implement region-specific transformation strategies, with a particular focus in South Africa
See 2018 BEE Certificate participating SMEs The Clothing Bank being the new BEE codes.
WHL 27 / 2019 GOOD BUSINESS JOURNEY REPORT 2019 GOOD BUSINESS JOURNEY REPORT / WHL 28You can also read
