Professional Documents
Culture Documents
Esg Event 2021
Esg Event 2021
Esg Event 2021
17 June 2021
Our purpose
Our strategy
Simon Roberts
CEO
Our purpose
Driven by our
passion for
food, together
we serve and
help every
customer
• Better value and innovation • Customer and profit focus • Structurally lower operating
• Underpinned by buying • Supporting the core food costs to fuel investment in
benefits and lower cost business the core
to serve • Cutting complexity and
increasing pace of execution
Urgent action need to keep 1 million species face We need to meet the food
global warming below 1.5°c extinction within decades 2 needs of a population which
The global food industry Ecosystems have declined will reach 9.7bn 4
accounts for ¼ of the world’s in size by 47% compared to Over 1 in 3 adults are
emissions 1 natural baselines 3 overweight or obese, while
Deforestation in the 1 in 9 are malnourished 2
Amazon at the highest rates
since 2008 2
NGOs Investors
Government Campaigners
Colleagues Suppliers
Environment Bill HFSS regulations Food waste DRS for England, Proposals on EPR Ban on the sale of
– Royal Assent mandatory reporting Wales & Northern for bulky waste new petrol, diesel
Ireland and hybrid vehicles
Plastic levy
National food introduced Extended producer
strategy published responsibility National Living
Wage increase
Deposit return
New WEEE Regulations scheme in Scotland Biodiversity
came into force net gain expected
Increase in the
Modern Slavery Climate Change Levy
Act amendment
TCFD to become
mandatory
Ban in use of
red diesel
Plastic packaging
Carbon footprint
Diversity & Inclusion (ops & supply chain)
Human Rights Health &
Sourcing British Biodiversity Food waste wellbeing
Importance Product trust
(animal welfare)
Sustainable
sourcing
to stakeholders Colleague
Pay & development
Soil health, erosion, Supporting Reward Colleague
rotation good causes Traceability safety Sustainable fish
Pesticides Antibiotic
Water resistance
Reduce Scope 1 & 2 emissions Reduce food waste Reduce our use of plastic Sourcing with integrity and
to Net Zero by 2040 by 50% by 2030 packaging by 50% by 2025 delivering a Net positive
Reduce Scope 3 emissions and increase recycling impact of operations on
by 30% by 2030 biodiversity
01 02 03 04 05
• Better value and innovation • Customer and profit focus • Structurally lower operating
• Underpinned by buying • Supporting the core food costs to fuel investment in
benefits and lower cost business the core
to serve • Cutting complexity and
increasing pace of execution
Operating Board
Steering Group
Jo Harlow Martin Scicluna Simon Roberts Keith Weed
Chair of the Chairman Group CEO Non Executive
CR&S Committee Director
Non Executive
Commitment Working Groups Director
Remuneration-linked
Priority Commitment targets
Plan for Better for the Stretching targets set for
Better planet Carbon reduction Scope 1, 2
& 3 and Plastic reduction
Operational KPIs Financial KPIs
• Grocery market share performance • UPBT growth Better for Maintain strong colleague
everyone engagement and
• Strong customer satisfaction scores • 200bp+ reduction in retail operating stretching targets set for
costs to sales senior representation
• Maintain strong colleague
engagement and improve • Dependable retail free cash flow
representation £500m pa average
• Deliver our Plan for Better targets1 • Increase return on capital employed
Good
Doing
financial
financially
Focus on returns . . .
well . . .
Doing WELL profit
CAN WILL
OR Go together
Go together
Improving with doing well with purpose
Doing GOOD the world for the world
I’d like to cut my footprint, but My kids should eat more fruit and veg,
I have no ideas what foods are but by 7pm I’ve given up arguing and if it
better for the planet... goes in the bin that doesn’t help anyone.
If we all ate
the Eatwell Guide,
we’d reduce
Better for you, greenhouse gases
by 31%
A diet that’s is better for the A diet that’s
better for planet better for
our bodies the planet
The Eatwell
Guide
Sources: Scarborough P et al (2016), Carbon Trust (2016); BDA One Blue Dot Report, (2020), Sheelbeek P et al (2020)
ESG Event June 2021 26
ESG Event June 2021 27
What does it mean?
We make eating well Healthier, tastier,
affordable, easy more sustainable food
and the best thing you’ve ever tasted cooked at home, enjoyed together
Helping everyone eat Helping everyone eat Helping everyone eat Helping everyone eat
more healthily and better by ensuring you better by making exciting, better by reducing the
sustainably don’t have to innovative and better environmental impact
compromise on quality, quality food accessible of our business
no matter your budget to all
Unhealthy
Healthy sales
Baseline 2025
FY19/20 Target*
* Food and soft drink sales. Excludes infant foods and alcohol sales
Progress on this metric, alongside the criteria for healthy sales is publicly available on our corporate website here
ESG Event June 2021 40
Making the food mix
more sustainable and healthy
Average Sainsbury’s basket The Eatwell Guide
2020/21
Oils & Spreads
Discretionary 1%
Dairy & Alts
14% 27% Fruit & Veg 8% 40% Fruit & Veg
Oils & Spreads 2% 12%
Proteins
16% 38%
Proteins Carbohydrates
Disclosure on average customer baskets is publicly available on our corporate website here
Average customer basket analysis relative to the Eatwell Guide is shown for a sub-set of 100,000 primary shoppers representing ≥25% share of
grocery wallet. In line with the Eatwell Guide, this is based on weight of sales (tonnage). Excludes beer, wine and spirits & composite dishes.
*Scarborough, et al 2016
ESG Event June 2021 41
Innovating to encourage
greater protein diversity
10%
meat free options available*
• >60 own-brand options from
total ‘protein’ and diverse sources
‘dairy’ tonnage
• Shelf space increased by
sold was from 40% for chilled plant-based
plant-based meat alternatives
choices*
(2019/20)
Absolute target
Net Zero reduction of
by 2040 30%
by 2030
3% 97%
of our of our
carbon footprint carbon footprint
Investing £1 billion
to become net zero by 2040
ESG Event June 2021 47
We have a clear plan to reduce our emissions
32% 36%
Delivery vehicles, Electricity Energy Renewable
Alternative
fuels logistics, fuels efficiency energy
Removal of HFCs
Integrated Heating and
Cooling systems
40,000
down down
950 11% 3%
841
tCO2e 818
reduction
needed per year
NET
ZERO
2018/19 2019/20 2020/21 2040
Baseline
ESG Event June 2021 49
Targeting engineering innovation
through collaboration
What role can living buildings How do we generate What Zero/Low Carbon
play in our estate? energy efficient transport solutions can
heating and work for us?
How can cooling solutions?
we optimise our
energy demand at
depots to support
our electric
refrigerated fleet?
by 2040 30%
by 2030
3% 97%
of our of our
carbon footprint carbon footprint
General
Merchandise 4m Home &
Measuring the impact
15% Personal
& Clothing Dairy Packaged Care
2018 / 2019
Baseline
ESG Event June 2021 52
Scope 3 reduction will require
a tailored approach across supply chains
Beef Feed related
Fuel &
Electricity related
Chicken
Animal related
5% 5% Feed related 15%
Manure
45% Fertiliser Manure 70 %
Feed
related
related related related
Proton-based feed:
65-75% smaller carbon footprint
by 2040 30%
by 2030
3% 97%
of our of our
carbon footprint carbon footprint
Investing £1 billion
to become net zero by 2040
ESG Event June 2021 55
Food Waste
Ruth Cranston
Group Head of
Corporate Responsibility
& Sustainability
Global impact of food waste
13 1 in 9 8% $940bn
of all food goes hungry of greenhouse gas Economic
is wasted around the world emissions losses per year
2016
Waste less, Save
more campaign, to help
customers reduce food
Started our food First retailer to send Began working with waste in their homes First Whole Chain
donation programme zero waste to landfill the Felix Project Food Waste
Reduction Plan
began
Value Manufacturing
Primary Production & Logistics Retail Household Total
Chain
(%/mt)
Food
10m
waste
tonnage
16% + 15% + 3% + 66% = tonnes
2018 140m
GHG
emissions
66% + 15% + 4% + 15% = tonnes
CO2e
Includes Packaging + Logistics Includes Transport + Cooking
Upcoming Mandatory
Food Waste reporting
Microbeads removed Joined the First retailer to remove First retailer to roll
from own brand Plastics Pact black plastic trays out the Flexible
products Plastic Fund
recycling trial into all
our stores
Remove and Replace Achieve average 30% 100% of our own brand Reduce plastic
difficult to recycle recycled content plastic packaging to packaging by 50%
plastics including across our own brand be reusable, recyclable
black plastic, PVC and plastic packaging or compostable
Polystyrene across
our own brand plastic
packaging
• 35 million plastic • Plastic packaging of • Polystyrene pizza • Working with • Removed single use
overlids from cream steaks by 70% bases with recyclable Prevented plastic bags for loose
pots board Ocean Plastic to turn fruit and veg, saving
• Plastic content in plastic collected from 489 tonnes of plastic
• 18.5 million plastic pancake shakers • Plastic with wooden the coast into per year.
straws from juice by 86% cutlery in Food to Go packaging
cartons
• Single use plastic
bags from online
deliveries
• Plastic wrap from tea Light weighting • Moving over 859 This week we are rolling Partnering with UKRI
boxes plastic across million teabags a out our flexible plastic to trial an end to
household and fresh year from plastic to recycling scheme into end reuse / refill
• Plastic from razors categories including: plant-based sealing all 520 supermarkets solution
• Film from swedes material
• Water bottles
• Plastic trays from • Barn eggs moved
• Milk packaging from plastic to pulp
baby corn
• Meat, fish and • Toilet Roll plastic to
• Lids from olive pots poultry trays
and yogurt pots paper overwrap
• Film from chips and
crisps
1998 2004 2006 2008 2010 2012 2014 2016 2018 2020
On Sea On Land
Fishing vessel Fishing Seasonal Satellite Isotopic assessment Centralised platform
satellite tracking licences closures monitoring at SKU Level for reporting
Fishing Marine Pre-emptive Focus on specific
log books protected areas risk commodities
Avocados
Reducing Improving
fresh water biodiversity
usage and animal wellbeing
ESG Event June 2021 80
The human rights context
Providing
500m Mostly Living on
around
small-scale farmers, below
smallholder cultivating less than
$2 35%
households
globally 5 acres a day
of the world’s
food
FAO estimates
ESG Event June 2021 81
Our commitment to championing human rights
Worker
voice
Modern
Government's
Saliency & Commitments slavery
Collaboration ‘Good
risk & targets reporting
Work Plan’
requirements
2015 2017
Inspiring Leadership
Development Programme
all our senior leaders
Turned the Olympic Launched First published
Park Orange and began Leading@Sainsbury’s ethnicity pay
our partnership with Development programmes gap report
the British Paralympic
association
Launched our new colleague
engagement survey
£5.36-
£7.20
(age-based)
£9.50
MARCH
SEPT 2021
2016
National
Living Wage £8.91
APRIL
(23 and over) 2021
‘Real’ £9.50
Living Wage NOVEMBER
2020
Rates relate to Sainsbury’s retail colleagues ESG Event June 2021 86
We employ a truly diverse workforce
13.8%
53% ethnically 9%
diverse over
female 60 years old
Operating
Board 8%
40% under
20 years old
female
3.5% 2.4%
identify as disabled
LGBT+
Over
31 Typically
different
1,200 1,000
apprenticeship retail colleagues a
schemes across the year join colleagues live on
business Leading@Sainsbury’s apprenticeships
4 NED
colleague
listening
groups
each year
Online pulse survey 3 times per year
ESG Event June 2021 91
Looking Ahead,
COP26
Rt Hon Alok Sharma
COP26 President
Fireside chat & Q&A
Summary
Simon Roberts
CEO
Sustainability is fully integrated into our strategy
• Better value and innovation • Customer and profit focus • Structurally lower operating
• Underpinned by buying • Supporting the core food costs to fuel investment in
benefits and lower cost business the core
to serve • Cutting complexity and
increasing pace of execution
01 02 03 04 05