Esg Event 2021

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Sainsbury's ESG Event

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

ESG Event June 2021 3


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

Know and serve our


Environmental and social
customers better, use
sustainability at our core
the power of Nectar

ESG Event June 2021 4


The world faces many challenges

Climate change Biodiversity loss A growing population

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

1 OurWorldInData, Poore,& Nemecek 3 IPBES report


2 WWF Triple Challenge 4 UN World Population Prospects 2019 ESG Event June 2021 5
We have a strong track record in taking action
2013
Achieved our zero
Began work
food waste to Signed up to
with the landfill target Launched our Plastics Pact
apprenticeship
Woodland Trust scheme commitments
2007
Launched the 2011 2015
Fair Development 2009 Joined the Celebrated 20 years of 2019
fund with Moved to cage Round Table on partnership with The
Comic Relief free shell eggs Responsible Soy Royal British Legion

2004 2006 2008 2010 2012 2014 2016 2018 2020

2005 2009 2013 2015


So Organic First UK retailer All fresh pork Launched our
launched to use RSPO is British scholarship
certified palm oil programmes in
First launched partnership with Largest RSPCA 2020
Sainsbury’s first 100th MSC certified
RSPCA products Food Retail Industry product launched assured retailer Launched our
– Chicken Challenge Fund Net Zero plan
project in Malawi 100% MSC certified
and DRC haddock and cod

ESG Event June 2021 6


We’re listening and adapting

NGOs Investors
Government Campaigners

Customers Research &


Academics

Colleagues Suppliers

ESG Event June 2021 7


Delivering for our customers

75% Sustainability is becoming a much bigger


part of my life and so I am starting
of the public to actively think and look for better ways
agree that if we don’t change the way we live in to live to benefit the environment
the next 10 years, the state of the planet will put
the survival of future generations in jeopardy 1
Greener Living’ is very
44% important to me and vital for
the future of our planet,
of shoppers however sometimes it’s hard to
say that they ‘try to only buy from companies do. I try my best but it’s hard to
who are socially and environmentally responsible’ 2 be ‘green’ in everything you do

91% Living sustainably is an


of shoppers important part of my life but
claim that ‘It is of utmost importance to I'm well aware that I could do a
follow a healthy balanced diet’ 3 lot more if I had the time
1 Source: Food Grocery Health & Wellness 2 Source: YouGov
3 Source: IGD Health, Nutrition and Ethics monthly shopper update ESG Event June 2021 8
Delivering for our colleagues

81% Addressing sustainability and


the environment is our most
of colleagues worthwhile challenge yet!
highly engaged 1

40% Great to know we are taking real


responsibility for our impact on
society and environment. We've got
of colleagues
say that they ‘are hearing such an ability to make a difference
too little about sustainability’ 1

I'd love to see us be even


65% bolder on what we do for
the environment
of people
around the world want to work
for an organisation with a
powerful social conscience 2

1 Source: Sainsbury's We're Listening survey


2 Source: PWC report The Future of Work ESG Event June 2021 9
Engaging with Government and NGOs
2021 2022 2023 2024 2025 beyond 2025

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

ESG Event June 2021 10


Materiality informs our approach

High Our focus

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

Peat / growing medium Skilled labour in Farm Productivity


the supply chain
Low High
Impact
ESG Event June 2021 11
Healthy & Reduce carbon Minimise use Championing Community &
sustainable diets emissions of water human rights Partnerships

Skills and An inclusive place


Reduce food waste Increase recycling
opportunities for all to work and shop

Reduce use of Sustainable sourcing


plastic packaging & biodiversity

ESG Event June 2021 12


We have made bold commitments
to drive positive change
Healthy &
sustainable diets
At least 83% healthy and
better for you sales
tonnage by 2025

Reduction in Reduction in Reduction in Sustainable sourcing


Carbon emissions Food waste plastic packaging & biodiversity

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

Championing Community & Skills and An inclusive place


human rights Partnerships opportunities for all to work and shop
Committed to championing Leave a measurable positive Ahead of national rates, at Committed to achieving our
human rights impact on the communities least 75% of our colleagues diverse leadership
we serve and source from on an apprenticeship will representation targets
successfully complete by 2024
their programme

ESG Event June 2021 13


Our commitment to taking action

01 02 03 04 05

Integrate ESG Actively listen Set bold Clear Committed to


into strategy to our targets and be accountability collaboration to
and purpose stakeholders transparent in and action solve shared
to drive the our reporting across the whole challenges
change required business

ESG Event June 2021 14


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

Know and serve our


Environmental and social
customers better, use
sustainability at our core
the power of Nectar

ESG Day June 2021 15


Governance
Martin Scicluna
Chairman of the Board
Governance
PLC Board

CR&S Committee Corporate Responsibility


& Sustainability Committee

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

Environmental Social Health

ESG Event June 2021 17


Strategy, performance and accountability

Embedding SASB disclosure


TCFD

Reporting every Board level


6 months training

ESG Event June 2021 18


Long-term remuneration targets
linked directly to delivering on our priorities

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

1 Carbon and Plastic reduction targets


ESG Event June 2021 19
Sustainability at
the heart of our brands
Mark Given
Chief Marketing Officer
Sustainability at the heart of all our brands

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

10 years ago Today Future

ESG Event June 2021 21


We are at our best when we are at
the heart of Britain’s relationship with food

1890s 1940s 1970s 1980s 2000s


Safe food Rationing Dinner parties World food Informal eating
for all for all the rise of science journey of discovery popularised

ESG Event June 2021 22


Insight ...

Our relationship with


food is broken
(and it’s taking its toll)

ESG Event June 2021 23


Health

6 only 27% £6bn 30%


recipes of people cost to NHS of children
in most British meet their 5 a day 2
every year leave primary school
families’ repertoire 1
to tackle obesity 3
overweight or obese 4

We will face increasing regulation in this area


1 Source: The Independent 2 Source: NDNS, Gov.uk
3 Source: National Food Strategy 4 Source: NHS Digital, 2020 ESG Event June 2021 24
Customers need our help

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.

I should eat more veg, but I


don’t know how to cook it!

I know I should buy organic,


but it’s always so expensive.

I know I need to eat more healthily, but


healthy food always seems so joyless.

ESG Event June 2021 25


We know that a diet that’s better for us
is also better for the planet

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 better


Because all of us could eat a little better
No matter how much time or money people have

ESG Event June 2021 28


Bringing our new promise to life

Helping everyone eat better


Eat Better Better Value Accessible Innovation Plan for Better

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

ESG Event June 2021 29


Better, one plate at a time
Helping everyone eat better is a big ambition. But big doesn’t have
to be daunting.
We don’t have to find the silver bullet that will fix it all. Because the
truth is, there isn’t one. Eating better comes in all different sizes.
And real change comes about bit by bit, plate by plate. Each step
might seem small, but if we bring everyone along, the change will
be massive.
A campaign of bitesize steps everyone can get on board with:
from big campaigns, to social challenges, recipes to nectar points
everything we do will be nudging the nation to better bit by bit.
We’re on a mission to help everyone eat better one bowl, one glass,
one plate at a time.

ESG Event June 2021 30


ESG Event June 2021 31
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ESG Event June 2021 35
Healthy,
Sustainable Diets
Nilani Sritharan
Healthy Living Manager
A strong track record in health
20% sugar
Pioneered reduction
colour-coded among our top
nutrition labelling Relaunched with 60 new & 5 contributing
on front of pack. improved lines categories
2017
Introduced
calorie labelling
to own-label
alcohol

2000 2005 2010 2015 2020

2002 Calorie labelling 2016


First Retailer to introduce in our Café since Only major
a ‘Free From’ category. 2011 supermarket
to stop BOGOF
multibuys
First retailer
to disclose
vegetable
sales
2006
No sweets or
confectionery at
supermarket
checkouts

ESG Event June 2021 37


Whilst helpful, the HFSS model
isn’t the best measure of health

HFSS (unhealthy) Non-HFSS (healthy)

ESG Event June 2021 38


We have created a model
that encourages healthier choices

Unhealthy Better for you Healthy

Unhealthy

ESG Event June 2021 39


Target: at least 83% Healthy and Better For You
sales by 2025
Target:
Baseline:
80.3% 83.1%+ Target to grow branded and own brand:
26.3% 1. Healthy sales
24.7%
2. Better for you sales
Better for you 56.8%
55.6% sales Measured in volumetric sales (tonnes)

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

Dairy & Alts 15%


26% Carbohydrates

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

• >2,700 plant-based and

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)

* Branded & own-brand, excludes composite dishes


ESG Event June 2021 42
Encouraging healthy and sustainable diets
is key to our Food First strategy
Innovation and Value Incentives
Reformulation

ESG Event June 2021 43


Partnering to drive sector change

ESG Event June 2021 44


Reducing our
Carbon Footprint
Patrick Dunne
Director of Property and Procurement
Rhian Bartlett
Food Commercial Director
Leading record on reducing carbon emissions

47% reduction Invested £320m


in carbon emissions in in 3,100 initiatives
the last 17 years in the last 10 years

15% energy reduction


from fitting Aerofoils in fridges

CDP A rating 237 stores


for 7 years have solar PV panels

ESG Event June 2021 46


We have set ambitious Science Based Targets

Scope 1 & 2 Scope 3


Our operations Upstream and downstream

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

Testing and trialling


alternative fuels and
17% 15% LED in 100% of
supermarkets by end
Increasing Solar
PV panels across the
electric vehicles Refrigeration Heating of 2021 estate

Removal of HFCs
Integrated Heating and
Cooling systems

ESG Event June 2021 48


We are ahead of our trajectory
to hit Net Zero in our own operations by 2040

Scope 1 & 2 GHG annual emissions


(tonnes, 000s)

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?

ESG Event June 2021 50


We have set ambitious Science Based Targets

Scope 1 & 2 Scope 3


Our operations Upstream and downstream
Absolute target
Net Zero reduction of

by 2040 30%
by 2030

3% 97%
of our of our
carbon footprint carbon footprint

ESG Event June 2021 51


Taking action
to reduce Scope 3 emissions by 30%
Identifying our hotspots Driving the reductions
27m
tCO2e
Fuel 13m
45%

General
Merchandise 4m Home &
Measuring the impact
15% Personal
& Clothing Dairy Packaged Care

Food 11m 24% 18% 15% 13% 8% 8% 5% 3%


(fresh and 40%
Food Services
grocery) Meat, Fish Produce Frozen Impulse Beers Wines
& Poultry & Meal and Spirits
Solutions Food to Go

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

30% 15% 10% OPPORTUNITY


Fuel & Electricity
related LED lighting;
OPPORTUNITY renewables –
Anaerobically 5% biomass, solar
digest slurry Animal
related

OPPORTUNITY OPPORTUNITY OPPORTUNITY OPPORTUNITY


Reduce enteric Optimise nitrogen Lower protein diets Breeds with higher
methane emissions usage Sustainable feed egg laying yield
(eg food additives) Protected urea

ESG Event June 2021 53


Collaborating to drive impact: React-First

Proton-based feed:
65-75% smaller carbon footprint

ESG Event June 2021 54


We have set ambitious Science Based Targets

Scope 1 & 2 Scope 3


Our operations Upstream and downstream
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 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

Source: World ResourcesInstitute(WRI).


ESG Event June 2021 57
Tackling food waste
has been a long-standing priority
Founding 2016 Supported the roll out of
Member of First major grocer to the first UK-wide Community £3m donation to
FareShare 2014 phase out multi-buys Fridge Network FareShare
First supermarket powered
by food waste 2016
Founding signatory
to the Courtauld
Commitment 2025

1998 2013 2016 2017 2020

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

ESG Event June 2021 58


Target to reduce food waste by 50% by 2030
Suppliers Operations Customers

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

Source: WRAP (2018, 2020)


ESG Event June 2021 59
Our approach
Global National Local

Target Measure Act

ESG Event June 2021 60


Acting to tackle food waste
with suppliers and customers
Supplier Life Product Inspiring
engagement optimisation specifications customers

ESG Event June 2021 61


How we are reducing food waste
in our operations
Total food surplus Human redistribution Animal feed Anaerobic digestion food waste
(unit) (unit) (unit) (unit)
up up
down 19% 5% down
11% 1,861 7,932 16%
40,759 7,582 31,615 down
36,337
1,562 26,544 50%
15,808

2019/20 2020/21 2019/20 2020/21 2019/20 2020/21 2019/20 2020/21 2030/31


target

1. Decrease 2. Increase 3. Increase = OUTPUT


Operational surplus Human redistribution Distribution as Reduced
animal feed Anaerobic digestion food waste

ESG Event June 2021 62


What’s next

Operations Suppliers Customers

Upcoming Mandatory
Food Waste reporting

Source: WRAP (2017)


ESG Event June 2021 63
Reducing our use
of plastic packaging
Claire Hughes
Director of Product & Innovation
Key milestones
Signed up to Replaced plastic cotton First retailer to remove
the Courtauld bud stems with a single use plastic bags
agreement biodegradable stems from loose produce

2005 2013 2017 2018 2019 2021

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

ESG Event June 2021 65


Headline target:
reduce plastic packaging by 50% by 2025
Our packaging targets
2019-2021 2022 2023 2025

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

ESG Event June 2021 66


To reach our target we need to

Remove Reduce Replace Recycle Reuse / Refill


completely weight of with an by making it options for
where we can packaging alternative easy for customers
material where customers
feasible after use

ESG Event June 2021 67


Plastic reduction trajectory
60,000 tonnes of plastic packaging
needs to be removed to hit our target by 2025
120,000
114,463 117,959 down
30,000 30,000 50%
tonnes tonnes
60,000
Own brand Branded

CY 2018 CY 2019 CY 2020 2025


Over 60% 40% Working with Baseline target
scoped with needs to key suppliers
a clear plan be scoped 3% net plastic increase in 2020
to deliver due to increased sales of pre-packed
items during the pandemic

ESG Event June 2021 68


What we’ve achieved so far

Remove Reduce Replace Recycle Reuse / Refill

• 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

ESG Event June 2021 69


What’s next

Remove Reduce Replace Recycle Reuse / Refill

• 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

ESG Event June 2021 70


Collaboration is key
In order to succeed we need to collaborate with government,
coalitions, retailers, manufacturers and customers to drive change

ESG Event June 2021 71


Sustainable
Supply Chains
& Human Rights
Judith Batchelar
Special Advisor on CR&S
Our global supply network

Supplier site concentration


High 75+ 20+
Medium countries countries
Low food GM

ESG Event June 2021 73


Our track record in promoting
sustainable supply chains
Only UK company to be ranked
Founder as a Sustainability Leader in Founding
member Began work Food and Staples Retailing members of the
Ethical Trading with the within the Dow Jones Forest Positive
Initiative Woodland Trust Sustainability Indices Coalition of Action
2007 2009 2017
Sainsbury’s Fair Support to the Marine Stewardship
development fund smallholder farmers Council best supermarket
launched with in our Malawi tea in the world for
Comic Relief supply chain sustainable fish

1998 2004 2006 2008 2010 2012 2014 2016 2018 2020

2000 2005 2007 2009 2011 2013 2017


Adopted Marine Founder First farmer First retailer Sustainability Bangladesh Accord Signed the Cerrado
Stewardship Council member SEDEX development to use RSPO and corporate Manifesto to tackle
(MSC) standard (Supplier group dairy certified palm oil responsibility deforestation in one of
Ethical Data targets launched the most biodiverse
regions in Brazil Founding members
Exchange )
of the Soy
Transparency
Coalition
2017
Modern Slavery
Risk Tool

ESG Event June 2021 74


Our progress on certification
Target Results (20/21) Certifications
100% key materials sourced Timber 100% 65% (Group)
to an independent 92% (Sainsbury's)
sustainability standard
Palm 100% 99%

Soy 100% 42%

Cotton 100% 89%

Bananas 100% 100%

Ground Coffee 100% 100%

Tea 100% 100%


100% seafood sales Wild Seafood 100% 76%
independently certified
as sustainable Farmed Seafood 100% 100%

ESG Event June 2021 75


Working beyond compliance

Global primary forest loss


Annual rate in million hectares
7
6
5
4
3
2
1
0
2002 2005 2010 2015 2020

We need to work towards suppliers who are deforestation-free across


their entire business, not simply the volumes they provide us
Source: Global Forest Watch
ESG Event June 2021 76
Collective action to
accelerate efforts to remove deforestation

Clear and aligned asks to One version Reporting and


suppliers and traders of the truth Transparency

ESG Event June 2021 77


New technologies
unlock an unprecedented level of visibility

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

ESG Event June 2021 78


Biodiversity - our ‘Earth Engine’

Global biodiversity risk by country Global biodiversity risk - Avocados

Avocados

Regional biodiversity risk - Avocados


Biodiversity risk by commodity
ESG Event June 2021 79
Tackling risks and
developing sustainable products

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

What we have done: What we are doing:


Training and
upskilling

Worker
voice

Fair Investing in Benchmarks


Development Fund Our Supply Chains

ESG Event June 2021 82


What’s next?

Modern
Government's
Saliency & Commitments slavery
Collaboration ‘Good
risk & targets reporting
Work Plan’
requirements

ESG Event June 2021 83


Our People
Agenda
Deborah Dorman
Director of Group HR
We always focus on
doing the right thing for our people
You Can - Working with Winning Team –
key partners to attract changes to T&Cs -
First colleague talent from disadvantaged £110m investment
values launched backgrounds
2013 2021
Launched Great Place to First published gender 2015 & 2019 New
Work Groups replacing pay gap report Values
Colleague Councils launch

2010 2012 2014 2016 2018 2020

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

ESG Event June 2021 85


Significant investments in colleague pay
Pension and colleague
discount equivalent of 54p
- plus location and skills pay

£7.66 £8.00 £9.20 £9.30 £9.50


SEPT SEPT SEPT MARCH MARCH
2016 2017 2018 2020 2021

Winning Team > £100m investment in pay and


changes to T&Cs 3 recognition payments
£110m investment (equivalent to 42p)

£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+

All data based on declarations in our


People systems as a % of total workforce
ESG Event June 2021 87
We have a holistic approach to inclusion
Transparency, reporting & targets Talent, development & education
9.7% 0.4%
Mean Mean
Gender Ethnicity
Pay Gap 2020 Pay Gap 2020

Leadership representation targets


Senior Leadership Senior Leadership
Target today by 2024
Female 38% 50%
Ethnically diverse 8% 12%
Black 1.3% 3%

ESG Event June 2021 88


We support our colleagues to learn and grow

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

ESG Event June 2021 89


Engaged colleagues give greater customer service

81% 90% 87%


Engagement recommend trust us to do the
our products right thing for
customers

ESG Event June 2021 90


Actively listening to our colleagues

740 colleague forums. Engagement survey


CEO meets national once a year
Regular CEO and Op Board Yam Jams, group 4 x a year
and 83,900 active members

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

Know and serve our


Environmental and social
customers better, use
sustainability at our core
the power of Nectar

ESG Event June 2021 95


Our commitment to taking action

01 02 03 04 05

Integrate ESG Actively listen Set bold Clear Committed to


into strategy to our targets and be accountability collaboration to
and purpose stakeholders transparent in and action solve shared
to drive the our reporting across the whole challenges
change required business

ESG Event June 2021 96


Breakout groups
• Pre-assigned breakout sessions will commence from 1pm
• You will have already received a personalised schedule and Zoom details
• If you have any questions or problems, please contact
Investor.relations2@sainsburys.co.uk

ESG Event June 2021 97


Sainsbury's ESG Event
17 June 2021

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