Professional Documents
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Kingfisher PLC Responsible Business Report - 2020-21
Kingfisher PLC Responsible Business Report - 2020-21
Our World
Responsible Business Report
2020/21
1 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
the year and explains our response to the challenging 26 Towards peat-free gardening
27 Customers
circumstances created by the Covid-19 pandemic. 28 Our Sustainable Home Products
29 Our Sustainable Home Products principles
We also publish a detailed performance data appendix with 30 Our sustainable products
35 Removing harmful chemicals
further information on our performance and progress against 36 Reducing impacts from plastic
targets. Our appendix includes details of how our reporting 37 Designing more sustainable packaging
38 Communities
aligns with external frameworks such as the United Nations 39 Our network of local foundations
Global Compact, the United Nations Sustainable Development 41 Partnering to increase our impact
Goals and the Sustainability Accounting Standards Board 42 Getting our colleagues involved
44 If Walls Could Talk
(SASB). See performance data appendix 2020/21. 45 Our Responsible Business Fundamentals
62 Assurance statement
2 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
About Kingfisher
Portugal
3
Other international Other international Spain Turkey*
19% 14% 28 140
£2,291m £141m
1 B&Q UK & Ireland 301, Screwfix UK & Ireland 722. † Total, not full-time equivalent.
2 Castorama 93, Brico Dépôt 121. ‡ The sale of our business in Russia was completed
* Turkey joint venture not consolidated. on 30 September 2020.
3 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
2020/21 was an unprecedented Business priorities, applying our experience, the the Rainforest Alliance we will be investing in progress. We expect to exceed our target to
strength of our teams, and our scale to achieve a projects to protect, restore and enable the reach one million people by 2025, and have now
year, one in which almost every
positive impact. responsible management of tropical forests increased our ambition to two million.
aspect of our personal and in some of the countries at most risk of
professional lives was disrupted. deforestation. During 2021/22, we expect to make further
Becoming a more inclusive company progress on our Responsible Business priorities
I would like to express my thanks to all and I look forward to updating you on the results
colleagues for their extraordinary achievements Our ambition is to create an inclusive and Making greener, healthier homes of our efforts next year.
during this time. They have kept our businesses diverse environment across Kingfisher. We affordable
running efficiently, approaching the many truly believe that being diverse and having Thierry Garnier
challenges with grit, determination, sensitivity differences, enriches our company and makes When customers shop in one of our stores, Chief Executive Officer
and commitment. As a result of their efforts, us better. We know how important this is to we want them to have certainty that they are
we made substantial strategic, operational and colleagues and to our stakeholders. getting great products at competitive prices
financial progress, and we’re coming out of which have been responsibly sourced and have
the Covid crisis a stronger business. It is both We have more to do to become truly a low or positive environmental impact. So I’m
humbling and inspiring to be part of this team. representative of the communities in which we pleased to report that 42% of our sales this
operate, and to help us get there, our Board year came from products that help create a
approved our ‘Inclusion and Diversity’ strategy more sustainable home – from LED lighting and
Responsible Business – a strategic in 2020. Each of our retail banners has now chemical-free gardening products, to water-
priority developed an inclusivity action plan, setting out efficient taps and energy-efficient power tools.
the steps we’ll take.
It is sobering to consider that despite the enormity
of the Covid crisis, it is just one among many Fixing unfit housing in our communities
social, economic and environmental challenges. Helping tackle climate change
Our recent research report, ‘If Walls Could Talk’,
Issues such as climate change, inequality, mental The urgency of the environmental crisis shows that millions of people across Europe are
health and housing standards – to name a few – all continues to intensify. We have already cut living in unfit housing, and this has been made
require urgent action. We are committed to playing operational carbon emissions by 27% since worse by the pandemic. To fulfil our purpose to
our part, and at the heart of our strategic plan, 2016/17. As a result, we’ve reviewed our science- make better homes accessible for everyone, we
Powered by Kingfisher, there is a commitment based carbon reduction target, and have need to help change this.
to lead the industry in Responsible Business committed to make the investments needed
practices. This is prioritised at the highest levels to align it with the 1.5°C scenario set out in the We are committed to make better homes
of our business, with our Board-level Responsible Paris Climate Agreement. accessible for everyone. Since 2016/17, we have
Business Committee and our Group Executive supported 791,000 people whose housing needs
Committee (GE) overseeing our efforts. We’ve been committed to responsible sourcing are greatest, to help them have a home that
of wood and paper for 30 years. Now, we are they can feel proud of. Our charity partnerships
Despite the upheaval of last year, we have going further, aiming to be ‘Forest Positive’ and the launch of our network of charitable
made strong progress across our Responsible by 2025. Through our new partnership with foundations will help us further accelerate our Thierry Garnier,
Chief Executive Officer,
Kingfisher plc
4 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Responding to the
Covid-19 pandemic
We introduced guidance for colleagues working We have also repaid furlough payments
from home to help them look after their health (£25 million) and business rates relief in the UK
and wellbeing as well as ensuring they had the and Republic of Ireland (foregoing £105 million),
right equipment to be able to work effectively. the Bank of England’s Covid Corporate Financing
Facility (CCFF) (£600 million) and the Pret
We also introduced new and more frequent garanti par l’Etat in France (€600 million).
communication, to keep everyone engaged and
informed. This included regular Chief Executive
Officer (CEO) and Group Executive vlogs, weekly
“Throughout this challenging
leader messages and e-newsletters, meetings time, we have remained
of the Kingfisher Colleague Forum (see page 16)
and our annual engagement survey which committed to making
focused on our response to the pandemic and the right decisions for
whether colleagues felt well supported.
colleagues, customers and
communities, focusing
Operating responsibly
on keeping people safe,
We adjusted our approach to remuneration
where necessary during the pandemic to
donating personal protective
support colleagues and safeguard the business. equipment and supporting
We reduced senior management pay for the
those most in need.”
Group Executive for three months, and for Thierry Garnier,
the CEO and CFO for four months, during Chief Executive Officer of Kingfisher plc
the early stages of the pandemic to reflect
the challenging business environment. In
addition, there was no bonus paid for 2019/20
performance for the CEO and CFO. Fees for
non-executive directors were also reduced for
six months.
Celebrating 30 years of
Responsible Business
1991
Published our first
1998
First UK retailer to label
2011
Founding partner to the
2012
Net Positive strategy
2018
First net zero energy
2019
Set 2˚C science-based
responsible timber and cut VOCs in paint. Ellen MacArthur Foundation, launched, committing Screwfix outlet opened targets approved by the
policy at B&Q and were pioneering circular to a restorative in Peterborough, total of Science Based Target
a founding member of ©
economy approaches. impact by 2050. 10 net zero stores in the initiative.
the WWF 1995+ Group. MINIMAL Group in 2020.
VOC CONTENT 0% to 0.29%
VOCs. (Volatile Organic
Compounds) contribute
to atmospheric
pollution.
We have been working on Our priorities have been informed by research Responsible Business governance More detail about our approach to governance
with our customers, our materiality assessment and our Responsible Business policies is
Responsible Business issues for
(see page 61) and external frameworks such as Underpinning our strategy, we have strong included on page 57.
nearly three decades, helping to the UN Sustainable Development Goals. They Responsible Business governance processes,
pioneer new approaches, from reflect our most significant impacts and the informed by stakeholder engagement and our
the responsible sourcing of wood areas where we have the opportunity to make a materiality process. The UN Sustainable Development
and paper, to innovative charitable significant positive difference. Goals
partnerships and creating more Our Responsible Business Committee (RBC)
We have set ambitious targets for each priority which met for the first time in 2020, leads and We support the UN Sustainable Development
sustainable products for our Goals that provide a framework for
and established key performance indicators oversees delivery of our Responsible Business
customers. (KPIs) to help drive progress. strategy. The RBC is a Committee of the Board governments, business and civil society to work
and is chaired by non-executive director Sophie together to end poverty, fight inequality and
We are committed on playing our part in the big Our targets and measurement approach have Gasperment. Its members are our CEO, a stop climate change by 2030.
challenges facing us today, such as Covid-19, been developed with sustainability organisation second non-executive director, our Chief Offer
climate change and inequality. We want to play Bioregional, who are experts in the development & Sourcing Officer, our Chief People Officer We have reviewed our progress and strategy
our part in helping tackle these challenges of sustainable communities and in measuring and a banner CEO. The Committee’s role is against the UN Sustainable Development
– enabling our customers and communities and monitoring sustainability performance. integral to setting the ambition, facilitating and Goals and have identified the priority goals for
to have better, more sustainable homes and monitoring Kingfisher’s Responsible Business our business. For more information see our
helping to protect our forests and our planet for Details on scope and calculations are included in strategy. The Committee met twice during the performance data appendix.
the future. our data collection methodology. year to review progress on our key priorities and
Environmental, Social and Governance (ESG)
risks and plans to meet three times in 2021. Reporting standards and disclosure
Four key priorities Our Responsible Business
Fundamentals We have a three-year Responsible Business plan We align with a number of external disclosure
Our Responsible Business strategy focuses on for the Group and have worked with our Group initiatives including CDP, the Workforce
the four priorities where we can best use our Our priorities are underpinned by our functions and banners to integrate Responsible Disclosure Initiative (WDI), the Global Reporting
experience, scale and influence to bring about commitment to our Responsible Business Business actions into their three-year plans. We Initiative (GRI), and Task Force on Climate-
positive change in our business, communities, Fundamentals – the many issues and impacts have a central Responsible Business team, led Related Financial Disclosure (TCFD).
supply chain and beyond: we need to measure and manage to ensure by our Group Director of Corporate Affairs with
we continue to operate responsibly across subject experts in our Group functions and a From this year, we are further aligning our
— Colleagues: becoming a more inclusive our business. We have clear policies in each Responsible Business lead in each banner. reporting with the Sustainability Accounting
company. of these areas, from health and safety to Standards Board (SASB) standards for Multiline
— Planet: helping to tackle climate change and responsible sourcing, cyber security and data To encourage focus on our Responsible and Speciality Retailers and Distributors. We
create more forests than we use. protection, and ethical conduct, to ensure we Business priorities, in FY 20/21, for the first now publish a SASB Index with our Responsible
— Customers: helping to make greener, take a consistent best practice approach across time, we linked a portion of our colleague bonus Business Report showing where relevant data
healthier homes affordable. our banners. programme to our performance against our and disclosures can be found. We publish a GRI
— Communities: fighting to fix bad housing. key Responsible Business priorities, and will index on our website.
continue to do so in FY 21/22.
8 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
* This Report summarises progress against targets for our four key priorities. Further detail and other targets are covered in our data appendix.
9 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Colleagues
We will be a more
inclusive company
We will become a more inclusive
company and one that better Our targets
reflects the customers and — Develop an inclusivity action
communities we serve. Our plan for each of our banners and
colleagues will feel empowered to Group functions in 2020/21.
be themselves, will feel at home — Improve gender balance in
with us, building skills, progressing management in 2020/21.
their careers and sharing in
— Provide five million hours of skills
our success.
for life learning by 2025.
We recognise that we have more to do
to become truly representative of the
communities in which we operate and to
Our progress
meet the expectations of our colleagues Developed a Group-wide Inclusion and
and customers. Our ambition is to create an Diversity strategy and action plan, with
inclusive and diverse environment across each banner building its own inclusion and
Kingfisher. We believe this adds business diversity plan.
value and helps create positive outcomes for
colleagues, customers and communities. Gender balance improved at Board
level from 38% to 44% with a slight
Inclusion is not just about valuing diversity – it improvement in all managers from 35%
encompasses all the things we do to create a to 36%. We have set new targets for 2025,
culture and workplace where everyone feels see page 11.
valued and respected, can be themselves and
reach their potential. Colleagues completed 3.27 million hours
of training during 2020/21. From 2021, we
Following the launch of our Powered by will increase focus on youth employability
Kingfisher strategy, we have developed a new and social mobility.
People and Culture plan (see page 10) including
a Group-wide Inclusion and Diversity strategy
and action plan.
10 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Our Group-wide Inclusion and These provided a forum for colleagues to areas of representation to reflect where we are of good practices on all aspects of inclusion
share their experiences, including the impact of today and the varying societal and legislative and diversity across our banners and provide
Diversity strategy and action plan
stereotypes and bias in the workplace. Our CEO, environments in which we operate. opportunities to share information and
is focused on four themes (see Chief People Officer and Group Executive were lessons learned.
graphic). It was developed by our actively involved in this process. Our new targets to improve gender balance in
People and Culture taskforce, a 2025 are: During 2021/22, we’ll focus on further listening
cross-section of representatives Drawing on our Group strategy, each banner — Increase women in senior leadership to 35%. sessions to understand colleagues’ lived
from around the business and has built its own inclusion and diversity plan — Increase women in management roles to 40%. experiences at work, increased internal and
specific to its market and demographic. At customer communications on diversity,
included input from colleagues via
B&Q this process has involved a culture review See page 13 for our performance on gender embedding inclusion in recruitment practices
‘listening sessions’. carried out by a consultancy, Green Park, which balance during 2020/21. including use of balanced shortlists, removing
included interviews and focus groups involving bias in people processes, and training for
colleagues from across the business. We have tied the results to leadership incentives. managers and leaders.
We will also establish an Inclusion Advisory
We have targets across the Kingfisher group on Board sponsored by a member of our Group
gender balance and localised targets on other Executive. This will encourage the adoption
Castorama Poland has been a signatory to How are we doing on diversity and
the Responsible Business Forum’s Diversity inclusion? Gender balance
Charter since 2013, committing to equal rights % of female colleagues based on
and respect for all colleagues. During 2020/21, Our data shows that our workforce is largely headcount
it has been working with the Forum to develop gender balanced overall but that women
best practice standards for protecting the are under-represented at senior levels of
2018/19 2019/20 2020/21
wellbeing of LGBTQ+ people in the workplace. executive leadership.
It will also be participating in the national Total workforce 42% 42% 43%
Diversity In Check benchmark, enabling it We have one board member from an ethnic
All management 36% 35% 36%
to compare its progress on diversity and minority. We do not currently collect data on
inclusion with other companies. Castorama ethnic diversity in our workforce. This is due to Senior 23% 24% 23%
Poland already offers equal benefits to regulatory restrictions in some of our markets. management *
partners in same-sex relationships as well as In 2021/22, we will be improving our data on
Group Executive 18% 17% 17%
running diversity training for colleagues and ethnic diversity in the UK to enable us to set a
having a non-discrimination policy that covers target and report progress from 2022/23. Board of 55% 38% 44%
recruitment, promotion, development and Directors
training processes. We will include questions on the inclusiveness
of our culture in our annual colleague Senior management includes Group
survey, shared with the Board, so we can Executive members, banner board
monitor colleagues’ feedback on how they directors and heads of department.
experience our progress and enable us to Executive directors are members of
derive a baseline from which we can set an our Group Executive.
improvement target.
Our latest gender pay report (2020)
shows a median pay gap of 2.0% (2019:
1.1%) and mean pay gap of 10.1% (2018/19:
10.6%) for all UK Group and retail banner
employees. It shows a bonus pay gap
Gender balance: of 50.0% median (2019: 14.6%) and
women in management 46.5% mean (2019: 39.9%). These gaps
reflect the higher pay for our senior
Learning and development At B&Q we have created a comprehensive suite Screwfix, already an employer provider of
of online learning, ‘Grow in B&Q’, which includes apprenticeships, is now developing its own Retail Supporting young people in France
Our commitment to learning and development sessions on useful business behaviours and Level 3 and 4 apprenticeship programmes with
helps to build skills for life for all colleagues. We skills, and has expanded to help colleagues who 381 enrolled so far. To date, over 85% of their At Castorama and Brico Dépôt France
offer a range of opportunities for colleagues to have found themselves working remotely and apprentices have been successfully promoted we partner with universities and business
learn new skills and keep improving and growing virtually. This includes webinars and resources since completing the programme. schools to recruit apprentices for store-
– building skills for life. Powered by our Learning on working in a virtual world, stress busting, based undergraduate and master’s
and Development teams across the Group, we ways to deal with angry children and coping Over 850 colleagues are completing degree placements. During the year,
have extended our virtual learning opportunities as a parent working from home. Essential apprenticeships at B&Q covering 28 subjects Brico Dépôt France doubled the number
during 2020/21 to enable training to continue management skills for first line managers are from retail management to digital marketing. It of apprentices it employed from 274 to
during the pandemic. Colleagues completed over brought to life in a programme delivered to has also transferred £300,000 in Apprenticeship 549, recognising the disproportionate
3.27 million hours of training during 2020/21. around 300 people. Levy Funds to The Solent Apprenticeship Hub, impact the pandemic was having on young
Transfer to Transform scheme, to support 12 people. This included developing some
In the UK, we launched our MYLO (My Learning Our product training offer includes physical trade apprentices at local small and medium bespoke training sessions for apprentices
Online) learning management system, giving and digital learning experiences to enable businesses in the Solent area. in partnership with a national training
colleagues access to a wealth of online learning store colleagues to learn about our ranges centre. Castorama France has 534
resources available 24/7, allowing them to learn and gain insights into customer needs and key In Romania, Brico Dépôt has begun a new apprentices.
at a time and place that suits them. In addition, home improvement projects. In 2020/21, we partnership with a vocational school, enabling
our focus on mental health and wellbeing has delivered virtual sessions to support the launch students on vocational courses relevant to Our French banners are also partnering
seen over 10,000 colleagues complete an online of the new kitchen range in France and Poland. the retail sector to complete internships at with Nos Quartiers ont des Talents (NQT),
mental health awareness course as well as Across the Group, over 14,500 colleagues have our stores. an association that supports young
having access to other resources to promote accessed our digital product training modules. graduates living in disadvantaged urban
wellbeing during the Covid crisis.
“Being on the apprenticeship areas to find employment. Some of our
senior colleagues are working with the
At Screwfix, our Learning for Life programme Support for youth employment programme has helped me young people as mentors, helping them to
is helping colleagues build skills that support gain confidence and providing networking
them in their day-to-day lives. It includes From 2021, we will focus on initiatives that
gain confidence as a woman opportunities as well as careers advice.
training modules focusing on good financial support youth employability and social mobility. in the home improvement
management, maths and English skills, We aim to report on our progress in this area
digital awareness and career development. from next year. world. I have developed
In partnership with Google Digital Garage, from a sales advisor to a
Screwfix has also held a series of business and Existing programmes include our apprenticeship
career skills webinars. schemes that help colleagues to gain section manager in 3 years.”
new qualifications and can support youth Melanie Gill, 21 years old, Section Manager in
In Castorama Poland, our team has developed employment and promote social mobility. We Vandoeuvre, Castorama France
a new programme for aspiring section leaders offered over 2,300 apprenticeships across
which has seen over 300 colleagues benefit Kingfisher in 2020/21.
from 1-2-1 coaching sessions.
15 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Planet
We will be Forest Positive and
help tackle climate change
Forests are vital for the health of
our planet, our communities and our Our targets
homes. Yet today deforestation and — 100% responsibly sourced wood
forest degradation are continuing at and paper for our products and
alarming rates. catalogues by 2020/21.
Becoming
Forest Positive
Forest Positive
management of tropical forests in key regions
at most risk of deforestation.
19 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
85% responsibly sourced wood 100% of catalogue paper in all retail banners met Our responsibly sourced wood and paper by category 2020/21
and paper our responsible purchasing criteria in 2020/21 number SKUs (products) purchased
(2019/20: 100%).
491
In 2020/21, we expanded our data collection
Verifiable
to include our banners in Poland, Romania and Improvements to our data collection process recycled material
have highlighted a number of challenges 15,872
Spain and Screwfix. Our data shows that around 2%
FSC-certified
81% of the wood and paper used in products relating to the availability of compliant wood 64%
sourced (per number SKUs purchased) during and paper in some markets, as well as a need
the year met our responsible purchasing for more training and communication with local
criteria. This equates to 85% of the value of buying teams. We will continue working with our
our goods for resale (GFR) wood products banners to address these challenges in 2021/22.
purchased in the financial year.
We are working towards all packaging made
8,602
Last year, our data covered three banners: B&Q, from paper and board to be certified as
PEFC-certified
Castorama France and Brico Dépôt France. sustainably sourced by 2025, as part of our (includes endorsed
In 2020/21, these three banners reached 91% sustainable packaging strategy. See page 37. schemes) 34%
responsibly sourced wood and paper compared
with 94% the previous year. We disclosed our performance through CDP
Forest and received a rating of B in relation to
timber. We were not able to participate in 2019
due to issues with our data collection process.
We aim to increase our score over time as
we develop our Forest Positive commitment.
We scored D in relation to cattle products and
expect to see an improvement in this score as “We are working
we progress our work on leather sourcing. See towards all paper and
page 60 for more details on CDP.
board packaging to be
See our performance data appendix for more
detailed data.
certified as sustainably
sourced by 2025.”
85%
You can read more about our process for
collecting wood and paper data in our data
collection methodology.
of wood and paper in our products
is from proven, well-managed 100%
forests or recycled sources* of catalogue paper meets our
responsible sourcing criteria
* 85% of the value of our goods for resale (GFR) wood products purchased
in the financial year meets our responsible purchasing criteria.
21 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
13 chemicals.
Committed to ambitious
climate change targets
Climate change is one of the – a campaign led by the Science Based Targets Our carbon emissions (scope 1 and 2 market-based)
initiative (SBTi) in partnership with the UN Global thousand tonnes CO2e from property and transport
biggest challenges of our time. We
Compact and the We Mean Business coalition.
want to support global efforts to New target 2025/26 176.0
reach net zero emissions by 2050 We disclose our performance on climate change 2020/21 205.8
at the latest. and participate in various external benchmarks. 2019/20 228.1
This includes the CDP Climate Change disclosure
Our original carbon targets were approved by initiative for which we received a score of A- in 2020. 2018/19 232.8
emissions from our direct operations by 38% Brico Dépôt France 6.6%
by 2025 compared with a 2016/17 baseline Brico Dépôt Iberia 0.2%
(scope 1 and 2); and Brico Dépôt Romania 2.6%
— achieve a 40% reduction (per million pounds Castorama France 6.6%
(£) turnover) from purchased goods and Castorama Poland 37.8%
services and use of sold products, by 2025
Screwfix 10.5%
from a 2017/18 baseline (scope 3).
European DIY Retail Association home and We also retrofit improvements where we can 2019/20 124
the Global Home Improvement Network see opportunities to reduce energy use. This 2018/19 135
representing 214 companies), to discuss includes redesigning the heating systems in two
2017/18 134
climate change. We are supporting them large UK distribution centres to provide warmth
to conduct research as a step towards to colleagues on the packing benches more 2016/17 140
adopting a climate roadmap and engaging efficiently.
their member companies.
On-site renewables are helping us to make
Race to Zero is an initiative of the United further reductions in our footprint. We’ve
Nations Framework Convention on installed solar PV panels on 24 stores, offices
Climate Change (UNFCCC), supported and distribution centres, have biomass boilers
by the World Business Council for supplying two distribution centres and one
Sustainable Development (WBCSD). head office building, and air source heat pump
systems at 130 locations. This investment
in renewables is generating 7.5 million kWh
per year and delivering over £1.3 million pa
in financial benefit including energy cost
reductions each year.
Tackling carbon in the supply chain “We’re working with Our scope 3 emissions 2020/21
thousand tonnes (%)
Almost 50% of our carbon footprint comes our suppliers to reduce
from the sourcing and manufacture of our carbon emissions of the
products. We’re working with suppliers to 50%
reduce this through the sustainable sourcing highest carbon-producing 7,974,514
38% Purchased goods
of raw materials and by encouraging
improvements in their manufacturing. This
products, including peat, 6,088,352 & services
Use of sold
includes a focus on the highest carbon- cement, ceramics and products
producing products such as peat, cement,
ceramics and plastics.
plastics.”
Integrating more recycled material is one
way we can cut carbon emissions and we are
exploring ways to do this for the plastic we use,
as well as for textile and for the board used in 9%
1,494,877
kitchen and flooring products. Downstream
transportation
Cement is a particularly carbon intensive 3% & distribution
518,058
product and we are engaging with suppliers Other (detail breakdown below)
on how we can reduce the footprint of the
bagged cement products we sell. We are 0.92% Upstream transportation and distribution
focusing on reducing the clinker-to-cement 0.90% End of life treatment of sold products
ratio (clinker is a binding component in cement, 0.41% Employee commuting
produced through a chemical reaction 0.34% Capital goods
which leads to significant carbon emissions) 0.23% Fuel-and-energy-related activities (not included in scope 1 or 2)
and improving energy efficiency in the 0.14% Upstream leased assets
manufacturing process.
50% 0.13% Business travel
0.09% Waste generated in operations
Read about our work on plastics on page 36 of our carbon footprint comes from 0.04% Investments
and peat-free compost on page 26. the manufacture of our products 0.03% Downstream leased assets
We calculated our full scope 3 carbon footprint in 2016/17; the split between the categories is shown above. The scope
3 chart includes reporting on the majority of our own operations for 2020/21 (see our data appendix for details). We
have also updated the emissions from customer use of sold products this year. The remaining categories use 2016/17
baseline year data. The baseline year for purchased goods and services is 2017/18; we are not yet able to report an
update on emissions from our supply chain but are reviewing currently.
26 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Peatlands are an important and using coir and other ingredients to replace peat. given the volume of plants we sell and will
It is competitively priced so that price is not a require innovation to identify high-quality
unique habitat and store twice
barrier to customers in their purchase decision. alternative materials that are widely available;
as much carbon as the world’s nevertheless it is something we are working to
forests. However, huge areas of We expected to start phasing out our peat achieve. Our data in this area is incomplete but
peatland have been destroyed, containing bagged growing media products we’re committed to leading the market in this.
with the use of peat in horticulture during the year but progress was slowed by the
a contributing factor. Moving to pandemic which significantly increased demand
for compost while disrupting some key supply
peat-free gardening is one of Inspiring pollinator-friendly gardens
chains. This meant we continued to sell our
the biggest contributions our previous ranges for longer.
industry can make towards tackling Nature has been an inspiration to many during
climate change. Completely peat-free compost now comprises the pandemic and B&Q teamed up with Butterfly
over a quarter of all compost sold in the UK, Conservation to encourage customers to return
For almost 30 years, we have been working Ireland, France and Poland (based on litres). the favour.
to remove peat from our products in the UK. Non-peat ingredients accounted for 52% of
This has involved working closely with our all bagged growing media ranges in 2020/21 As a lead sponsor of the Big Butterfly Count
suppliers and growers to develop, test and (2019/20: 41%). 2020 in the UK, B&Q encouraged customers
refine our own range of peat-free products. to get involved in citizen science by counting
Completely removing peat can be challenging In 2021/22, we expect to see an improvement the butterflies that visited their garden. They
since availability of replacement ingredients in the peat-free content of our own exclusive also included help and advice on butterfly and
in sufficient volumes varies hugely across our brand (OEB) composts, with the exception of pollinator-friendly plants on diy.com, through social
markets and there has been scepticism among ericaceous compost, as we introduce new peat- media, direct email communications and in stores.
customers and parts of the industry about free combinations whilst selling through existing
peat-free solutions, though this is changing. OEB peat-containing composts. Butterfly Conservation reported that over 111,800
Peat-free alternatives have historically also people took part in the Big Butterfly Count 2020.
been less affordable for consumers. In 2023 B&Q, the banner selling by far the
largest volume of growing media (77% of
We are committed to ensuring the widespread total sales sold by all banners), will become
availability of peat-free products that perform 100% peat-free across its bagged growing “In 2023 B&Q, the banner
just as well as peat-based alternatives, so that media range.
consumers can make responsible gardening selling by far the largest
choices, no matter their budget. volume of growing media,
Collaborating with our plant suppliers
We launched our new GoodHome high-quality will become 100% peat-free
We’re also working with our plant suppliers to
100% peat-free compost in B&Q and
Castorama France in early 2020. This is phase out the use of peat in our pot and pack
across its bagged growing
formulated to provide an effective compost bedding and hardy plants. This is challenging media range.”
27 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Customers
We will help make greener,
healthier homes affordable
We want to make sustainable living
easy and affordable for our millions Our target
of customers. — 50% of sales to be from our
Sustainable Home Products by
A greener, healthier home is one that is well
the end of 2020/21.
insulated, energy efficient and affordable to
run. It uses fewer and more planet-friendly
and long-lasting materials, is free from harmful
chemicals and is fitted out with quality, long-
Our progress
lasting products made in ways that are better 42% of Group sales were from products
for people and the planet. Outside the home that help create a more sustainable home
in people’s gardens, this will include beautiful, in 2020/21. This is a 100% increase since
naturally grown plants that provide food and 2011/12, when our target was set, and
shelter for birds and wildlife. means a substantial proportion of our
product range meets our Sustainable
Our customer research shows that people Home Product standards. Some of our
aspire to have a sustainable home, but they banners exceeded our target, including
often find it complicated or expensive to B&Q who reached 55% of sales from
achieve. We want to change this. Sustainable Home Products. We are now
working to update our target for 2025.
Using our industry best practice Sustainable
Home Product guidelines, we’re embedding See the following page for more detail.
sustainability into our ranges so that customers
will be able to choose any product they want
and be confident it is as sustainable as possible.
More sustainable
used in the development of our the previous year. This generated £5.13 billion for — Innovative products with the potential to have a big positive impact.
own exclusive product brand the business, an increase of 66% over the last
five years.
(OEB) ranges, alongside price,
quality, form and function. Exceed
We were disappointed not to meet our
When we improve a product’s — Products that significantly improve the sustainability of our
longstanding target of 50% of sales to be from
customers’ homes.
sustainability, we do not Sustainable Home Products by the end of
compromise on any of the other 2020/21, but pleased at the progress we have
made on integrating sustainability into our Expect
core design principles. — Products with a sustainable feature or benefit.
purchasing decisions since our target was first
set almost a decade ago. — The minimum standard for our Sustainable Home Products.
Our industry-leading Sustainable Home
Product guidelines, developed with experts Today, more of our lighting is LED, more of Not yet a SHP
Less sustainable
Bioregional, help us improve the performance our paint is water based and more of our taps — These products should be improved so they meet our standard.
of our ranges. Every product is examined to are water efficient. We have removed ortho
assess whether it is sustainable, based on phthalates from new vinyl flooring products,
the guidelines. To be considered sustainable, and discontinued metaldehyde slug pellets and Watch list
a product must meet at least one criteria products containing glyphosate. A total of 11% — Features or products that cannot be sustainable.
at ‘Expect’ level or higher and not meet any of sales enabled customers to create safer, — Should be phased out from our ranges.
‘Watch list’ criteria. healthier homes and connect with nature. We
are now working to update our target for 2025.
The guidelines are reviewed and updated
every year to reflect changes in technology
and improved understanding of environmental Sustainable Home Products
impacts. We make our guidelines easy to use % of retail sales
and publish them on our website. We hope
Target 2020/21 50%
that by sharing our approach and what we’ve
learned so far, we can help encourage change 2020/21 42%
across our industry. 2019/20 37%
2018/19 34%
2017/18 33%
2016/17 29%
29 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Integrating recycled materials into our products can Our GoodHome range of electric heaters are energy
help to reduce waste and increase demand for recycled efficient and use smart technology. This means they can
materials and reduce carbon emissions. We have a be programmed to come on only when needed. They
number of products that already contain recycled plastic also learn from customer behaviour over time, enabling
including our range of Magnusson and Mac Allister them to predict when heating is and isn’t needed, further
toolboxes made with over 50% post-consumer recycled improving efficiency. To complement our product range,
plastic. We’ve also added more recycled plastic to garden we offer energy efficiency services in some retail
furniture and outdoor storage boxes. When using recycled banners such as Castorama France’s free installation
materials, we never compromise on price and quality service for loft insulation, and support government
and expect them to perform just as well as non-recycled schemes subsidising home energy efficiency
alternatives. improvements.
We aim to integrate circular principles into product Our focus on energy-efficient and energy-saving
design using our Principles for Circular Product Design, products helps us reduce our scope 3 carbon emissions;
developed with sustainability experts Bioregional. read more on page 25.
We’re improving water efficiency across our ranges to help Cork is harvested from cork oak trees from forests
customers save money, water and energy. Our kitchen and around the Mediterranean that support a wealth of wildlife.
bathroom basin taps, for example, now include aerating Harvesting the cork is a traditional and skilled operation.
regulators to make them more water efficient. Aeration It does not harm the tree, which will grow back its bark
mixes water with air and regulates pressure, providing a layer over nine years. Each tree can be harvested many
good customer experience even with low pressure. Most times, making cork a very renewable resource. But as more
of our taps now have a maximum flow of 8 litres per minute wine bottles have screw caps, demand for cork has fallen,
as standard compared with up to 12 in previous ranges. We putting the cork oak forests at risk. Finding more uses for
are also working to improve water efficiency in our hand- cork can help to keep demand up and protect these forests.
held shower range which now meet our Sustainable Home Naturally insulating, light and decay resistant, we use cork
Product standards for water efficiency. in a range of products including flooring, insulation and
memo boards.
We want all customers to enjoy a help us track high-priority vendors and Phasing out phthalates, PFCs and process with other members, to make it easier
their products. This will improve how we halogenated flame retardants for suppliers to respond to multiple information
safe and healthy home, free from
monitor compliance with our transparency requests.
harmful chemicals. We are working requirements and chemicals policies as well as We have a large supply chain and product range,
with suppliers to identify and tracking supplier training. so we use a risk-based approach to prioritise In Europe, we collaborate through the NGO
phase out chemicals of concern chemicals for phase out. ChemSec’s business working group and have
ahead of regulation. Improving co-founded GC3 Europe, launching in early 2021.
chemicals management also helps Surveillance testing Our current focus is on removing phthalates,
PFCs and halogenated flame retardants from
to protect workers in our supply We use surveillance testing to confirm our OEBs by 2025. These are chemicals known Equipping our suppliers and colleagues
chain and the environment. that products meet our requirements and to be harmful to people or the environment, for
monitor progress on phasing out our priority which safer alternatives are available and which We train suppliers and provide advice and support
By 2025/26, we aim to: substances. Testing helps us to identify are most likely to be found in our priority supply to help them to strengthen their chemicals
— achieve transparency of harmful chemicals common challenges and informs supplier chains: textiles, plastics and chemical products management system, phase out priority
in key supply chains; training. Our approach is to test a sample (such as glues, paints and cleaning products). chemicals during manufacturing, and engage
— phase out the highest priority hazardous and of products in each category and use their own supply chain. Suppliers are identified for
high-risk chemicals of concern; and the findings to calculate a representative During 2020/21, we removed phthalate training using a risk-based approach.
— introduce five green substances. compliance rate for each product category. plasticisers from the power cords in our Erbauer
power tool range. We are also in the process of During the year, training was restricted by the
We have made progress on surveillance testing removing halogen flame retardants from this pandemic but we were able to run a training
A more transparent supply chain for textiles, testing 80 of the highest-risk range and substituting with safer alternatives. session on our chemical management standards
products in our textiles ranges. We found that We have worked with bathroom accessory for around 100 textile suppliers in China. Over 95%
For high-risk product categories, we specify over 93% were free from phthalates, PFCs and vendors to remove PFCs from shower curtains passed the exam following the training.
which chemicals should not be used or can only halogenated flame retardants and are working and with safety boot vendors to remove
be used in quantities below a set threshold. We with suppliers to phase out these chemicals phthalates. Feedback from suppliers shows our approach is
have detailed Restricted Substances Lists (RSL) from the remaining products. We are also aligned with other retailers and brands. One third
and guidance for categories such as textiles, developing our surveillance testing for plastics, of suppliers already have advanced knowledge
footwear and accessories. We communicate focusing on product lines such as power tools. Unlocking the potential of green in sustainable chemical management from other
these to suppliers via tender processes and chemistry retailers and brands.
regularly review and update them. As well as intentional use of chemicals by
suppliers, products may contain ‘unintentional’ Our target is to introduce five green chemical We train colleagues on our approach, so they
Increasing the transparency of chemicals chemicals, due to contamination during alternatives by 2025 – safer alternatives for can communicate our expectations to suppliers.
use is a complex and ongoing process since the manufacturing process. Surveillance potentially harmful substances. In 2021/22, we will train colleagues in our retail
even similar products may contain different testing enables us to check for unintentional banners to help them implement our chemicals
chemicals according to the materials, suppliers, chemicals use. We have a process to find and We are active members of the US-based Green roadmap and track progress.
sub-contractors or manufacturing sites fix the root cause of contaminations when Chemistry & Commerce Council (GC3) and
used. We will be piloting a new chemicals they occur. part of their GC3 Retailer Leadership Council. We are reducing chemicals use through our work
management software system in 2021, to We have aligned our chemicals transparency on sustainable materials, see pages 21 and 36.
36 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
We want to reduce the amount are working with suppliers to help develop
the recycled plastic supply chain. Previously
of plastic used in our products
our efforts have focused on use of recycled
and packaging and to ensure that polypropylene but we are now exploring
any plastic we do use has a lower opportunities to integrate recycled Acrylonitrile
environmental footprint. butadiene styrene (ABS) and polycarbonate
plastics.
We focus on: increasing our use of recycled
plastics, phasing out harmful chemicals used in We have strict quality standards to ensure
some types of plastics (see page 35); switching that recycled plastic does not contain harmful
to alternative materials; and designing products chemicals. These specify the types of recycled
and packaging to use plastic more efficiently. plastic that can be used and require suppliers to
We’ve also trained our design teams in the UK achieve third-party certification or to carry out
and France to design our plastic products to be regular product testing.
more easily recyclable.
We are members of the Green Recycled Plastic
Read more on packaging, page 37. Supply Chain Joint Working Group (GRPG)
in China which is working to develop shared
standards on use of recycled plastic.
Developing the recycled plastics
supply chain
Packaging protects our products Our targets are: We’re also developing alternatives to cable ties
in store and in transit but can — At least 30% recycled content in plastic used for some product packaging which are A sustainable packaging
packaging by 2022. often made from PVC or nylon and difficult transformation at Screwfix
have a significant impact on the — Phase out non-recyclable plastic to recycle.
environment. packaging such as PVC and expanded Screwfix has started a programme to
polystyrene by 2022. transform its packaging, increasing use
We have reviewed our packaging strategy for — Reduce plastic packaging by 25% (by Addressing impacts from transit of recycled and recyclable materials
OEB products during 2020/21 and introduced weight) by 2025. packaging and reducing plastic. The first products
new targets to help us increase our use of — All paper and board used in packaging to be to use the new packaging are its own
recycled plastic, ensure wood and paper certified sustainably sourced by 2025. Transit packaging is used to protect products brand LAP range of electrical switches
complies with our sustainable sourcing policy, being transported to stores and distribution and sockets, around 120 products. The
design out single use plastic and reduce We are improving the data we collect on our centres. However, when products are over packaging has been totally redesigned
packaging waste. packaging and materials use to enable us to packaged fewer can be transported in each to eliminate plastic and replace it with
track progress and develop an action plan. load, increasing costs and carbon emissions. certified sustainably sourced cardboard.
Equally, if not enough packaging is used, Further ranges will be switched to the
We are also exploring whether changes to products may be damaged, increasing waste. new packaging in 2021/22.
the way we source our packaging can help us
achieve our targets and track compliance with We are holding ‘transit packaging surgeries’ Screwfix is working with its vendor
our policies. We will be running a pilot during bringing together the different stakeholders base to implement the changes and will
2021, which will see us sourcing packaging involved to find solutions to these problems. require all vendor branded products to
materials, printing and production for key Three sessions have been held so far with our comply with the new requirements by
products directly, rather than via our vendors. logistics team, transit suppliers, packaging December 2024.
RECYCLE designers and vendors to identify opportunities
to improve transit packaging and reduce its
Developing alternatives to blister packs environmental impacts.
Communities
We will fight to fix
bad housing
We will fight to fix bad housing –
donating our products, expertise, Our targets
funding and time to help more — Help more than one million
than one million people whose people whose housing needs are
housing needs are greatest in the greatest by 2025.
communities we serve. — Provide over 20,000 colleague
volunteering hours to support
Everyone wants their home to be safe, warm
housing and home improvement
and welcoming. If those needs aren’t met it is
projects in 2020/21.
distressing. Yet millions of people across Europe
still live in homes which are unfit – too small,
too dark, too cold, too damp – or experience
homelessness. This can have a devastating
Our progress
impact on confidence, health and future We supported over 1,100 projects and
prospects. We want to help. donated £5.5 million with a further
£2.7 million donated by colleagues and
Through our charity partnerships, our customers. Since 2016/17 we have
fundraising and volunteering and our new reached 791,000 people, well on our way
network of in-country charitable foundations, towards our goal of one million by 2025.
we support projects that improve housing and As a result, we have increased our target
community spaces for those that need it most. and now aim to help at least two million
people by 2025.
In 2020, we saw Covid-19 exacerbate
inequalities across our communities and have Planned colleague volunteering activities
a profound impact on our relationship with our could not take place due to Covid-19 and
homes. We have responded through direct people’s safety taking priority, so we were
support for those on the frontline through not able to meet our volunteering target.
our donations of PPE (see page 4), as well
as significantly increasing our community See the following page for more detail.
investment activities.
39 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Fundacja Castorama (Foundation Castorama Brico Dépôt France is also supporting the
Poland) supported the renovation of the ‘Brico bus’, a mobile DIY service unit which visits
Psychotherapeutic Center in Pszczyna, which disadvantaged communities around the country
runs a range of services to help vulnerable to help them improve their housing.
40 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Our banners partner with leading Partnering with Habitat for Humanity
organisations working to tackle in Romania
homelessness and improve housing Brico Dépôt Romania, is working with Habitat
and support for vulnerable people. for Humanity to support families who have been
severely affected by Covid-19. This includes
making micro loans to help people struggling
Supporting Shelter in the UK during the pandemic to fix up their housing.
In addition, we launched our first financing
In the UK, B&Q supports the housing and campaign supporting 10 national charities.
homelessness charity Shelter. Our partnership
focuses on helping people who have been
through very difficult experiences to have a “Every day our team
home where they can feel safe and secure. We of specialist DIY Skills
fund a team of nine specialist DIY Skills Advisers
who provide practical home improvement Advisers see the difference
assistance to people who’ve experienced or are that even modest home
at risk of homelessness. This has benefited over
1,196 households since the partnership began. improvements can have
We provided funding to promote a series of
digital advice films, helping Shelter reach more
on people’s happiness
than 60,000 people. levels. With B&Q’s ongoing
support, we can continue to
Taking action in France provide hands-on help and
In France, our Brico Dépôt banner continued basic DIY training to even
its partnership with Fondation Abbé Pierre and more people – equipping
supported Communauté Jeunesse “Femmes
Solidarités 91” which provides emergency them with the confidence
accommodation and support to female victims and skills to create a home
of domestic violence and their children.
where they feel happy
Our partnership with the Red Cross continues and safe.”
to support local emergency response in the
UK, France and Poland. In 2020/21, this included Polly Neate,
support to help those affected by serious Chief Executive of Shelter
flooding in the south of France.
42 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
+£8 million
Community gifts and investment Fundraising and other leverage
£1.5 million). This includes cash donations,
employee time and in-kind contributions, with
product donations valued at cost price. This is community contribution
equivalent to 0.70% of underlying pre-tax profits Community investment: details of company giving 2020/21*
in 2020/21 £ thousands
(2019/20: 0.26%).
£68
Value of employee time 1%
At least 442,000 people directly benefited from
our community contributions, bringing the total
£855
to 791,000 since 2016/17. We expect to reach Management costs † £2,991
16%
our target of one million by 2025 ahead of In-kind contributions
schedule and, as a result, we have increased our 54%
Our Responsible
45 Our Responsible Business Fundamentals
46 Safety at work
47 Human rights and ethical sourcing
Safety at work
Every colleague should be able We audit our stores against our mandatory How did we perform in 2020/21?
minimum health and safety standards and each
to do their job in a safe working
retail banner has an action plan to address areas Our total employee accident rate (number of
environment. Our Group Safety for improvement. all work-related accidents per 100,000 full-time
and Compliance Risk Officer equivalent employees) was 9,484 (2019/20:
oversees our approach to health 11,183). The reduction is due to the impact of
and safety, implementing policies store closures during national lockdowns.
and procedures to make sure Operating safely during the pandemic
There were no work-related fatalities. However, a
we’re meeting high standards During the pandemic we implemented COVID Risk Assessments are regularly colleague at B&Q died after suddenly becoming
across the business. additional strict safety measures to protect updated as advice changes. Similar unwell and falling in one of our stores.
our customers and colleagues. These measures are also in place at our distribution
In 2020/21, much of our focus has been on have included: and fulfilment centres, and training has been There were no health and safety related
ensuring that we implement strict Covid safety — The provision of gloves, visors and masks provided to colleagues to help support and prosecutions or fines during the year.
measures in our stores and operations to to colleagues. implement these changes to their work
protect colleagues and customers, see box. — Limiting the number of customers in store. environment. Employee accident rate
— Safe queuing before entering the store Number of ‘all work-related’
and floor navigational markers to help We’re regularly checking and auditing our
accidents per 100,000 full-time
Clear standards and reporting systems enforce social distancing. stores to make sure our health, hygiene and
— Sanitiser stations throughout the store. safety rules are implemented and working
equivalent employees
We have a Senior Management Safety — Perspex screens at paint mixing and effectively. 2020/21 9,484
Committee in each retail banner and a network timber cutting stations, in showrooms and 2019/20 11,183
of safety professionals. at checkouts. During national lockdowns and restrictions,
2018/19 10,018
— Encouraging contactless or card payments we have also supported our colleagues
We have Group health and safety management wherever possible. working at home. This included wellbeing 2017/18 10,689
standards to ensure we take a consistent support, individual working from home 2016/17 12,196
approach to occupational health and safety ergonomic assessments, and providing
management across our locations. Our Group- additional IT and ergonomic equipment to
wide accident management reporting system colleagues who needed it.
tracks accidents (including minor accidents)
and near misses and helps us to identify
the root causes of accidents and reduce
safety risks. A Health & Safety dashboard,
summarising performance at each retail banner,
is regularly reviewed by the Group Executive
and the Board.
47 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
We respect human rights and take Our Supply Chain Workplace Standards We identified 10 salient issues. These are: We also carried out a detailed risk and gap
explain the ethical standards we require from — Modern slavery. assessment to ensure we understand where
steps to protect the rights of our
suppliers, and our Ethical Sourcing and Supplier — Child/underage labour. salient risks are most likely to appear in our
employees, workers in our supply Workplace Ethical and Environmental Assurance — Freedom of association/collective bargaining. supply chain and business, and that we are
chain and others affected by our (SWEEA) Policy requires all high-risk production — Health and safety. addressing and prioritising these. This included
business activities. sites of finished goods for resale (GFR) to have a — Wages/working hours. consideration of emerging risks such as those
valid ethical audit at least every two years. — Land rights. related to the Covid-19 pandemic.
We recognise that managing and mitigating — Depletion of natural resources.
human rights risks and upholding human rights is We support a number of external initiatives that — Air, water and land pollution. This work has confirmed that the most
a shared responsibility and we work with others, aim to protect and promote human rights and — Impacts of climate change. significant human rights risks for our business
including suppliers, peers, industry bodies, improve standards in the retail supply chain. For — Discrimination. are found in our GFR supply chain, including
NGOs and governments, to address salient example, we are a signatory to ‘Better Retail, at the raw material extraction and product
issues and raise standards. Better World’, the British Retail Consortium manufacturing stages.
(BRC) commitments on the UN Sustainable
More detailed information on our policies and Development Goals, and a member of the UN
our approach to human rights and modern Global Compact, see our data appendix.
slavery risks in our supply chain, is published Partnering with Slave Free Alliance on modern slavery
in our Modern Slavery Act Transparency The majority of our ethical sourcing work
Statement. focuses on direct suppliers. However, we aim Modern slavery is a complex issue and — Extend provision for training on modern
to influence standards in our extended supply collaboration with others in the retail slavery risks for colleagues.
Read about our Code of Conduct and chain, including among raw material suppliers. sector and beyond is key to raising — Strengthen supplier engagement and
whistleblowing process on page 51. Read about our approach in relation to wood awareness and creating change. communication, to reinforce policy
and paper (page 20) and leather (page 21). requirements.
To help strengthen our capabilities, we — Conduct deep dives into high-risk
Our policies and approach are working with Slave Free Alliance materials’ supply chains beyond ‘finished
Identifying our salient human rights (SFA), a social enterprise developed by product’ level.
Our Human Rights Policy sets out our issues anti-slavery charity Hope for Justice. — Increase checks on suppliers, including
commitment to respect human rights, in line The Alliance works with victims, law ethical audits and spot checks.
with international agreements and guidelines We want to make sure we prioritise and manage enforcement agencies and businesses
including: the United Nations Guiding Principles our salient human rights issues. These are the to help bring about a slavery-free During 2021/22, we will be working with
on Business and Human Rights; the International human rights at risk of the most severe negative supply chain. SFA to implement their recommendations,
Bill of Human Rights (which includes the impact through our activities. including running training for colleagues and
Universal Declaration of Human Rights); the During 2020, they undertook a gap suppliers. Read more in our Modern Slavery
UN Global Compact; the International Labour During 2020, we worked with a consulting analysis covering our policies, risk Act Transparency Statement.
Organisation’s Declaration on Fundamental partner to identify our salient human rights assessment processes, due diligence and
Principles and Rights at Work; the Children’s issues, across our business and supply chains, training provision. They made a number of
Rights and Business Principles; and UN as defined by the UN Guiding Principles recommendations for strengthening our
conventions on the elimination of discrimination. Reporting Framework. approach, which included:
48 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Monitoring compliance through Audit results in 2020/21 Supplier production sites – GFR (goods for resale) 2020/21
ethical audits by audit grade %
3%
Grade 1
We check supplier compliance with our Top five non-conformances by
standards through ethical audits, targeting category (goods for resale) 2% 2%
Business critical Grade 2
suppliers in the highest-risk countries, sectors 3%
and locations. The majority of non-conformances relate Grade 3
to health and safety, which include fire
The audit reviews suppliers’ performance and safety issues such as provision of fire
identifies any instances of non-conformance extinguishers and number of fire exits.
with our standards relating to labour standards Other common non-conformances
and human rights, health and safety, business include working hours, wages and
ethics and environmental performance. benefits, and environmental factors.
We want to design out waste from Our work on packaging redesign, use of Waste recycled %
recycled plastic and product repair services
our operations, find new ways to Target 2025/26 90%
also help to reduce waste, see page 37.
reuse and recycle resources and 2020/21 69%
help our customers to do the same. 2019/20 70%
We are committed to achieving Closing the loop on packaging waste 2018/19 76%
zero waste to landfill and 90% of
We’re always looking for new ways to turn 2017/18 76%
waste recycled.
waste into products. A great example is 2016/17 77%
one of the plastic film products sold by
Screwfix and B&Q for use in construction
Cutting waste to landfill Waste diverted from landfill %
projects. It contains recycled plastic that
We are engaging our stores and waste comes from polythene packaging waste Target 2025/26 100%
management contractors to improve recycling collected from our UK distribution centres. 2020/21 85%
rates and reduce waste. Our updated contracts 2019/20 87%
with waste management contractors in the UK
2018/19 88%
and France now include our waste reduction 69% waste recycled
and recycling commitments. From 2021, we will 2017/18 90%
hold quarterly meetings with contractors to In 2020/21, we generated 176,600 tonnes of 2016/17 90%
review progress against these. In France, we waste, a decrease of 4% year on year, compared
have monthly waste scorecards for our stores to an increase in like-for-like sales of over 7%.
to encourage improvements. This reduction in waste generated is partly Waste recycling and disposal 2020/21
due to store closures in 2020 as a result of the thousand tonnes
We are also helping customers to reduce, reuse pandemic. Our recycling rate was 69% (2019/20: 26
Waste disposed
and recycle by introducing take-back and 70%) and we diverted 85% of waste from landfill to landfill
15%
recycling schemes in some stores. This can (2019/20: 87%).
reduce waste to landfill, increase recycling of
materials that aren’t consistently covered by We were disappointed not to meet our zero
29
kerbside schemes and enable more circular waste to landfill target by our target date 122
Waste disposed
Waste recycled 69%
use of resources. In the UK, B&Q is installing of 2020 but will keep working towards this 16% to incineration
recycling units for small electrical products, commitment going forwards. We expect to
batteries and light bulbs in all stores, exceeding see improvements in 2021/22 as we increase
regulatory requirements. B&Q also takes back engagement with our waste management
old plastic plant pots for recycling in some contractors and update our waste contracts in
stores. In France, we have permanent collection other markets.
points in some stores for old paint pots and
paint waste.
51 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Ethical conduct
We expect everyone working with in sensitive areas of the business received The Audit Committee of the Board of Directors Communicating our Code to
a fair competition training module. By April receives regular updates on the outcomes colleagues and suppliers
us to carry out our business fairly
2021, 74,000 colleagues had completed the from our internal audits, whistleblowing reports
and with complete integrity. We do refresher module. and the outcome of internal investigations. During 2021/22, on top of the Code of Conduct
not tolerate bribery or corruption. Statistics and trends will be monitored by the refresher training, we will be running an
The training covers our integrity principles, how retail banners’ Local Ethics and Compliance awareness campaign to highlight our integrity
to report concerns via the Kingfisher Speak Up Committees. standards and encourage colleagues to use our
Our Code of Conduct channel and other topics in line with our Code Speak Up channel to report concerns or raise
of Conduct. Different modules are available In 2020/21, we launched a new third-party due questions. This includes videos from members
Our Code of Conduct helps to promote a to store and office colleagues, tailored to the diligence tool for goods not for resale vendors of our Group Executive to reinforce the
culture where transparency, honesty and specific integrity risks they may encounter. We to integrate and strengthen our due diligence importance we place on integrity.
fairness are the norm. It sets out our personal also provide additional Market Abuse Regulation process in areas such as anti-bribery and
and shared responsibilities for meeting high training for colleagues in higher-risk roles. corruption, sanctions and conflict of interest. We embed the requirements of our Code of
ethical standards. It states that all employees Conduct into our procurement processes and
have a duty to report any potential breaches supplier contracts. Potential new suppliers are
of the Code. Our Code forms part of the Strengthening our governance Raising concerns and whistleblowing informed during the tender process of our Code
contractual terms and conditions for all new processes procedures of Conduct, policies and ethical requirements so
employees. they can take these into account when quoting
During 2020/21, we established our Group We encourage employees to ask questions to provide products or services.
The Code includes sections on: sustainability; Ethics and Compliance Committee to help or raise concerns via their line manager or
ethical behaviour; working with third parties; ensure good governance of compliance-related member of the Legal and Compliance team. We also operate a whistleblowing service for
modern slavery; anti-bribery and corruption; activities across the Group. It is chaired by the They can also report any concerns via our suppliers.
gifts and hospitality; and conflicts of interest, Kingfisher Chief Financial Officer and meets independent Speak Up channel or get advice via
amongst others. We operate an online approval at least four times a year. Other members a dedicated email address. We raise awareness
and reporting procedure for hospitality and gifts. include our Chief People Officer, Group General of the hotline via our Code of Conduct training.
Counsel, Internal Audit and Risk Director, and
You can read our Code of Conduct on Group Head of Compliance. Reports are investigated and if an employee is
our website. found to have breached our Code of Conduct,
Our compliance network, including a Local appropriate disciplinary action is taken. The
Compliance Officer in each retail banner, helps number of open and resolved cases and the
Embedding our standards us implement our Code. During 2020/21, we outcomes are reported to the Audit Committee
started the establishment of a Local Ethics and of the Board of Directors. We will be introducing
All new joiners are required to complete Code Compliance Committee in each of our retail new training for colleagues in charge of
of Conduct training, which includes our anti- banners to help further embed our policies. investigations during 2021/22.
bribery and corruption policies. In 2020/21, over
35,000 colleagues also completed a Code of Our internal audit function monitors compliance In 2020/21, there were 168 cases opened of
Conduct refresher module, launched during among businesses to the Code requirements, which 160 were investigated and closed during
the year, and over 3,000 colleagues working using a risk-based approach to plan their work. the year.
52 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Cyber-attacks and security security standards. Our policies, standards external audit of our systems. Our European Cyber security is included in our induction
and associated controls framework are aligned card payments processes are also designed to training for all colleagues, including contractors.
incidents are a growing risk to all
to international standards such as ISO 27001 meet the requirements of the standard. In 2020/21, we also launched more detailed
businesses. We are very mindful and the NIST Framework and comply with the cyber security awareness training covering how
of these risks and have designed General Data Protection Regulation (GDPR) and We have cyber security insurance which was to identify and guard against cyber threats such
processes and controls to protect other relevant regulations. renewed in 2020. The renewal process involves as phishing. This is now being rolled out.
the data entrusted to us and our our insurers reviewing our protections and
business operations. All colleagues New IT solutions go through a ‘Secure By controls.
Design’ process to ensure they are secure
have a role to play in protecting
and compliant with applicable regulations
data and guarding against cyber and adhere to our security standards when Working with others
security threats. deployed. As part of our IT controls framework,
we regularly test our IT processes to confirm Suppliers must confirm that they comply with
In 2020/21, we further strengthened our that they meet our standards and, if any risk our cyber security policies, and this requirement
security procedures, monitoring and training areas are identified, we put in place a mitigation is integrated into our supplier contracts.
in light of the increased risks resulting from plan and monitor progress against this. Contractors completing IT development work
the pandemic including more colleagues are contractually required to train their staff on
working from home and a significant increase We conduct regular impact assessments cyber security.
in online sales. of cyber threats facing Kingfisher and take
appropriate steps as needed. We participate in industry and government
forums to ensure we remain aware of the latest
Cyber security: our approach cyber threats and to share best practices.
Internal and external audit This includes the Cyber Security Information
Our Information Security and Risk Director Sharing Partnership (CiSP), a joint industry and
develops and implements our approach to Our security policies, standards, IT processes government initiative set up to exchange cyber
cyber and information security based on and governance frameworks are regularly threat information in real time, and working with
industry best practice. Our Chief Information reviewed by an independent audit team. In the British Retail Consortium on data security
Officer oversees our approach to cyber the last two years this has included external and regulatory topics.
security and reports directly to our Chief auditors carrying out a cyber security audit
Executive Officer. and an audit of our use of cloud services.
Review and audit findings are reported to the Training our colleagues
The Board of Directors receives regular updates Audit Committee of the Kingfisher Board of
on cyber security risks and processes, at least Directors. We communicate our policies and remind all
every six months. colleagues to keep security top of mind through
Our systems and processing of card payments our training and awareness campaigns. During
Our Group Information Security and Acceptable in the UK are certified compliant with PCI DSS, 2020/21, we developed guidance on cyber
Use Policy is approved by our Group Executive the worldwide Payment Card Industry Data security when working from home and provided
and supported by a suite of more detailed Security Standard. This involves an annual regular tips and reminders to colleagues.
53 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Data protection
We hold customer, colleague and supplier In certain cases, individuals have the right to
data and have a responsibility to collect, use access, rectify and delete any data we hold
and store it responsibly in line with national on them. We’ve implemented a process for
regulation and the EU General Data Protection customers and colleagues to exercise their
Regulation (GDPR). rights; relevant information can be found in
our privacy notice here.
Our approach includes strong policies on data
management and training for our people. Our All new joiners are required to complete
Group Data Protection Officer oversees our data protection training. In addition, we
approach to data protection and reports to the roll out annual refresher training on data
Group General Counsel. We also have a data protection and the GDPR to all colleagues
protection lead in each market to help implement across the Group. During 2020/21, 35,000
our standards in line with local requirements. colleagues completed the refresher training;
by the end of March 2021, 74,000 colleagues
Key policies include our Data Protection Policy had completed the training.
and Record Keeping Policy, supported by a
suite of more detailed standards. Our Data Under the GDPR, we’re required to report
Protection Policy and Data Protection Standard certain types of data breaches to the
are published on our website. We update our relevant regulator, such as the Information
policies regularly. Commissioner’s Office in the UK, and the
affected individuals. We provide training to
For any process at Group or banner level explain to our colleagues how to recognise
that may involve handling personal data, and and what to do if a data breach happens.
is likely to result in a high risk to individuals,
colleagues are required to complete a data Our Data Protection team investigates all
protection impact assessment. Suppliers that personal data breaches reported to them
process personal data on behalf of Kingfisher to mitigate risks and determine if notification
must confirm that they comply with our data to the affected individuals and regulators is
and security policies, and this requirement is required.
integrated into our supplier contracts.
54 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Public policy
We interact with regulators and We follow government guidelines in relation Which trade associations do we
to employing former public officials (the Examples from 2020/21 work with?
government officials in our markets
‘revolving-door’).
and at EU level. We give our views 1. Apprenticeships: Screwfix’s ‘Trade Sometimes we engage with policymakers via
on proposed legislation and inform Apprentice’ competition celebrates trade associations and industry groups. This can
the development of policies that Working with lobbying companies tradespeople at the start of their increase the impact of our policy messages.
will impact our business and the careers. This year, in a session hosted Relationships with trade associations in the UK,
We work with a number of external lobbying by the UK Apprentices Minister Ireland, France and Brussels are overseen by
retail sector. companies, which are all members of and the competition finalists, the our Group Director of Corporate Affairs and, in
recognised self-regulatory organisations such apprentices shared their experiences other markets, by the relevant local CEO.
We also engage on sustainability topics, as the Association of Professional Political of the pandemic and its impact on their
supporting measures that incentivise Consultants in the UK and the European Public training, mental health and uptake of Our memberships include:
sustainable business practice and encourage Affairs Consultancies’ Association (EPACA) renewable and green technologies by — EU: EDRA/GHIN (the European DIY Retail
investment in sustainable business and in the EU and are governed by their codes of trade professionals. Association home and the Global Home
innovation; see opposite for examples conduct. The lobbying companies we use in Improvement Network) and EuroCommerce.
from 2020/21. the EU are also listed on the EU Transparency 2. Brexit: In 2020/21 we continued to — UK: The British Retail Consortium (BRC),
Register. implement our Brexit contingency Confederation of British Industry (CBI), and
planning. Priority areas included customs the GC100 – the Association of General
Our approach and standards and product regulation, environmental Counsel and Company Secretaries working in
Which issues did we prioritise in standards, and requirements for plant FTSE 100 Companies.
Our Group Director of Corporate Affairs 2020/21? passporting and plant health safety — France: The French Association of Private
manages our public policy activities and checks. Our Government Affairs Businesses (AFEP), and the French
reports to a member of our Group Executive. Our public policy priorities during 2020/21 Manager chairs the British Retail Federation of DIY Retailers (FMB).
The Board of Directors reviews the key primarily focused on the response to the Consortium’s Brexit working group. — Ireland: Irish Business and Employers
aspects of our public policy activity at least pandemic. Other priorities included: preparing Confederation (IBEC), Retail
twice a year. for the new Trade and Cooperation Agreement 3. Home energy efficiency: In 2020/21 the Excellence Ireland.
(TCA) after Brexit; changes to property taxes French Government’s ‘MaPrimeRénov’ — Poland: The Polish Confederation of Private
All our public policy work must meet the ethical (UK and Poland); deforestation; domestic energy scheme, which provides funding for Employers and the Polish Organisation of
standards set out in our Code of Conduct and efficiency; and housing policy. domestic energy efficiency projects, Commerce & Distribution (POHID).
our Group Corporate Affairs Policy and reflect was expanded and made available to — Portugal: Portuguese Association of Retail
our public sustainability commitments. We are all households. We supported this as Companies (APED).
registered on the EU Transparency Register of a direct way for customers to claim — Spain: Association of Distributors of Hardware
lobbying activities. government funding to complete home and DIY (ADFB).
energy efficiency projects. Castorama — Turkey: Chain Stores Association (KMD),
In line with EU and UK corporate governance France has a dedicated section on its Turkish Industry and Business Association
best practice and as stated in our Code of website to encourage customers to (TÜSİAD).
Conduct, it is our policy not to make donations participate.
directly to political parties or politicians.
56 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Pensions
The Kingfisher Pension Scheme a financial impact on investment performance. The KPS also offers participants in its Money
They are encouraged to engage with Purchase scheme the opportunity to select an
(KPS) manages the pensions
investee companies on these issues, including Ethical Fund for their pension. This fund aims
of past and present employees. exercising voting rights where appropriate. to provide long-term growth by investing in the
The Scheme is open to all UK shares of companies that meet a set of ethical
employees with the same Investment managers must disclose their criteria.
benefits offered to all employed, investment approach to the KPS and state
whether this integrates ESG factors. The Trustees have also decided to
irrespective of seniority or
introduce a tool which will provide members
length of service. The Scheme is with greater visibility of their underlying
governed by a Trustee Board that Investments investments. It will allow members the
is gender diverse and consists of opportunity to provide their views directly
independent, member nominated The KPS Trustees have explored opportunities to the investment managers on how they
to invest in specific funds that support believe votes, in respect of shareholder
and employer nominated Trustee
progress on sustainability issues, such as resolutions relating to those companies,
Directors. renewable energy. Existing investments include should be cast.
a £15 million stake in a global farmland fund
Reflecting the Trustees’ commitment to which invests in farmland operated according
sustainability, the KPS integrates responsible to sustainable farming methods and a £20
“The Kingfisher Pension
investment principles into its work and million investment in a global renewable Scheme Trustees take
communicates with stakeholders on its energy fund.
approach to environmental, social and into account the potential
governance (ESG) issues. The Trustees take into account the potential risks and opportunities
risks and opportunities associated with climate
change and the transition to a low carbon associated with climate
Principles economy. The investment strategy for their change and the transition
passive equity holdings aims to hedge climate
Investment decisions of the KPS are governed change risk by prioritising companies who to a low carbon economy.”
by the Scheme’s Statement of Investment invest in low carbon innovation and reducing
Principles (SIP). This sets out the KPS’s investment in carbon intensive industries.
commitment to act as a responsible investor The Trustees have also decided to switch
and states the Trustee Board’s belief that all the underlying fund of the Diversified Return
companies should be run in a responsible way. Fund to the Legal and General Future World
Multi-Asset Fund which provides enhanced
Investment managers acting on behalf ESG integration. Around 98% of the Money
of the KPS are required to take account Purchase membership is in the default
of environmental, social and governance strategy which consists of 50% Passive Equity
considerations (“ESG”) where these may have Fund and 50% Diversified Return Fund.
57 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
We’ve embedded Responsible We have a three-year Responsible Business Our Responsible Business network brings “The Responsible
plan for the Group and have worked with our together colleagues from our Offer &
Business into our governance Business Committee’s
Group functions to integrate Responsible Sourcing, sustainability, procurement, logistics,
and management structures to
enable progress against our goals
Business actions into their three-year plans. brand, investor relations, customer and role is to support and
This is reviewed by the Group Executive and marketing teams and our banners to share
and targets. the Kingfisher Board of Directors twice a year. ideas and best practices. The network usually oversee delivery of how
meets twice a year in person as well as
through regular webinars, with presentation
Kingfisher operates as
Executive oversight Embedding Responsible Business and discussion on a range of topics, from a Responsible Business.
Our new Responsible Business Committee Our central Responsible Business team, led
climate change to forests to human rights.
In-person meetings were not possible during
Promoting ownership of
(RBC) leads and oversees delivery of by our Group Director of Corporate Affairs, is 2020/21 due to the pandemic but we held our Responsible Business
our Responsible Business strategy. The responsible for developing strategy, targets, monthly webinars on key topics.
Committee’s role includes supporting setting governance and reporting and communication strategy by colleagues
the ambition, facilitating and monitoring on Responsible Business. across the group, setting
Kingfisher’s Responsible Business strategy. Integrating Responsible Business
We have Responsible Business experts in performance measures
ambitious targets,
The RBC is a Committee of the Kingfisher our Group functions who are responsible for monitoring impact and
Board and is chaired by non-executive director driving and embedding Responsible Business To encourage focus on our Responsible
Sophie Gasperment. Its members are our CEO, practices. For example, within our Offer & Business priorities, in FY 20/21, for the first progress against our four
a second non-executive director, our Chief Sourcing function, they embed sustainability time, we linked a portion of our colleague Responsible Business
Offer & Sourcing Officer, our Chief People into our own exclusive product brand ranges bonus programme to our performance against
Officer and a banner CEO, currently our and support banners as a centre of excellence. our key Responsible Business priorities, and priorities, as well as
Screwfix CEO.
Each of our banners has appointed a
will continue to do so in FY 21/22. ensuring underpinning
The Committee met twice during the year Responsible Business lead to oversee our The details of this bonus and the pay-out for fundamentals are in place,
to review progress on our key priorities and efforts at market level. They are supported 2020/21 are summarised in our Annual Report
Environmental, Social and Governance (ESG) by our central team and the sustainability and Accounts, page 97.
are key areas of focus for
risks and will meet three times in 2021. The experts within Group functions. Banners are the Committee.”
Board receives regular updates about our integrating Responsible Business actions
Sophie Gasperment,
performance and sustainability risks and into their three-year plans, setting out how
Chair of the Responsible Business Committee
reviews our Responsible Business KPIs each they will progress towards our targets. We
quarter as part of its governance dashboard. will be further developing our approach to
Responsible Business governance in our
banners during 2021/22.
58 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Suppliers
How is our performance rated?
We collaborate with suppliers on Responsible
Business issues including through our product We participate in many external benchmarks and indices. In 2020/21, these included:
development and engage with them on our
approach to ethical sourcing and our Code of
Conduct. See pages 47 and 51. MSCI-ESG CDP Forests
We received a AAA ESG rating for our ability We disclosed our performance through
to manage ESG issues (2019/20: AAA). This CDP Forest and received a rating of B in
NGOs and industry partners is the highest possible score, achieved by relation to timber (2019/20: not scored).
3% of companies. We scored D in relation to cattle products
We partner with many NGOs, other businesses (2019/20: not scored) and expect to see an
and specialist organisations to learn from their improvement in this score as we progress
insights and address Responsible Business ISS ESG our work on leather sourcing.
challenges. Examples are included on pages 12, We received a corporate rating of B- (good)
19 and 41. (2019/20: B-).
Workforce Disclosure Initiative
Organisations we work with include: Aldersgate We received a score of 66%, above the DISCLOSURE INSIGHT ACTION
Group, Bioregional, Business Disability Forum, Sustainalytics sector average of 60%.
Centre for European Reform, Fondation Abbé We scored 9.7 (negligible risk). We rank 1st
Pierre, FSC, Green Alliance, Rainforest Alliance out of 40 in home improvement retail and
– Forest Allies, Shelter, Slave Free Alliance and 2nd out of 428 in the wider retailing sector. FTSE4Good Index
Stonewall. We are listed in this index with a rating of
4.4 out of 5 (strong performance) (2019/20:
For more information on how we engage our CDP Climate Change 4.4). This puts us in the 95th percentile.
stakeholders, see our 2020/21 Annual Report We disclosed our climate change
and Accounts. performance through CDP Climate Change
and received a rating of A- (2019/20: A-). Forest 500 (Global Canopy
This puts us in the leadership category, Programme)
among the top 28% of companies in our Identifies and ranks the most influential
sector globally. companies and institutions in the forest risk
commodity supply chain. We ranked 11th
out of 67 retailers with a score of 40%.
61 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Material issues
Our materiality assessment helps The final matrix identifies several high-priority Materiality matrix Colleagues Planet Customers Communities Fundamentals
issues including product sustainability, climate
us to identify our most important
change, human rights, and wood and forestry.
Responsible Business issues, risks Issues such as wellbeing, health and safety,
and opportunities, taking into data privacy and security, and diversity and
account business priorities and inclusion, have increased in priority since Product Climate
the views of our stakeholders. last year. sustainability change
It informs how we focus our
The governance of our Responsible Business
resources, and what information Human rights
Wood and
programme, including how we establish and forestry
we choose to include in our uphold clear, transparent and accountable
Responsible Business reporting. governance structures, is explained in further
Chemicals
detail on page 57. Packaging
and plastics
Supply chain Wellbeing,
Materiality refresh We have strategies in place to manage our traceability health and
most material issues. safety
We updated our assessment during 2019 and Raw
early 2020. The priority issues from a business materials
Data privacy
perspective were identified through an internal Community and security Diversity and
workshop. This gathered input from a range engagement inclusion
of internal stakeholders including colleagues and investment
from our sustainability teams and key functions.
Expert consultants conducted interviews
with 20 external stakeholders including Product
quality
investors, peers, supply chain stakeholders, Training and
NGOs and trade associations. These two development
inputs were combined to develop our draft
matrix (published in our previous Responsible Accessibility
Business Report).
Waste in
Stakeholder interest
operations
In early 2021 our matrix was reviewed by
our consultants, in light of the impact of the
pandemic and other events during 2020. They
made a number of recommendations for
adjusting our matrix and their findings were
reviewed by a group of internal stakeholders
from our Group functions. Medium High
Business impact
62 Kingfisher Responsible Business Report 2020/21 Introduction Colleagues Planet Customers Communities Fundamentals Assurance
Assurance statement
Independent Limited Assurance Report to the Directors of Kingfisher plc
Kingfisher plc (“Kingfisher”) commissioned DNV Business Assurance Services UK Limited (“DNV”,
“us” or “we”) to conduct a limited assurance engagement over Selected Information presented in
their Responsible Business Report 2020/21 and the Performance Data Appendix 2020/21 (together
the “Report”) for the reporting year ended 31 January 2021.
Standard and level of assurance Basis of Our Conclusion Our competence, independence and Responsibilities of the Directors of
quality control Kingfisher and DNV
We performed a limited assurance engagement We are required to plan and perform our work in
in accordance with the International Standard on order to consider the risk of material misstatement DNV established policies and procedures are The Directors of Kingfisher have sole
Assurance Engagements (ISAE) 3000 Revised – of the Selected Information; our work included, but designed to ensure that DNV, its personnel responsibility for:
‘Assurance Engagements other than Audits and was not restricted to: and, where applicable, others are subject — Preparing and presenting the Selected
Reviews of Historical Financial Information’, issued — Conducting remote interviews with Kingfisher to independence requirements (including Information in accordance with the Criteria;
by the International Auditing and Assurance management to obtain an understanding of the personnel of other entities of DNV) and maintain — Designing, implementing and maintaining
Standards Board. This standard requires that we key processes, systems and controls in place to independence where required by relevant effective internal controls over the information
comply with ethical requirements and plan and generate, aggregate and report the Selected ethical requirements. DNV conducts climate risk and data, resulting in the preparation of the
perform the assurance engagement to obtain Information; analysis of Kingfisher’s property portfolio, which Selected Information that is free from material
limited assurance. — Remote meetings with teams from two retail does not conflict with the scope of this work. misstatements;
banners, Screwfix and Castorama France, to This engagement work was carried out by an — Measuring and reporting the Selected
DNV applies its own management standards review processes and systems for preparing retail independent team of sustainability assurance Information based on their established
and compliance policies for quality control, banner level data consolidated at Group level. We professionals. Our multi-disciplinary team Criteria; and
in accordance with ISO/IEC 17021-1:2015 – were free to select retail banners and they were consisted of professionals with a combination — Contents and statements contained within the
Conformity Assessment Requirements for chosen on the basis of materiality and frequency of environmental and sustainability assurance Report and the Criteria.
bodies providing audit and certification of of audit visit over the past three years; experience.
management systems, and accordingly maintains — Remote meetings with head office personnel to Our responsibility is to plan and perform our
a comprehensive system of quality control review processes and systems for preparing and Inherent limitations work to obtain limited assurance about whether
including documented policies and procedures consolidating Group level data; the Selected Information has been prepared
regarding compliance with ethical requirements, — Additional testing was undertaken on the following All assurance engagements are subject in accordance with the Criteria and to report
professional standards and applicable legal and due to material errors found in our initial sample to inherent limitations as selective testing to Kingfisher in the form of an Independent
regulatory requirements. testing at banner level: (sampling) may not detect errors, fraud or other Limited Assurance Conclusion, based on the
• Gender diversity data – Kingfisher corrected irregularities. Non-financial data may be subject work performed and the evidence obtained. We
The procedures performed in a limited assurance the data at banner level and subsequent checks to greater inherent uncertainty than financial have not been responsible for the preparation of
engagement vary in nature and timing from, and at two other banners identified no further issues; data, given the nature and methods used for the Report.
are less in extent than for, a reasonable assurance • Community investment data – Kingfisher calculating, estimating and determining such
engagement; and the level of assurance obtained undertook additional checks at banners, and data. The selection of different, but acceptable, DNV Business Assurance
is substantially lower than the assurance that data for four banners was updated; measurement techniques may result in different Services UK Limited
would have been obtained had a reasonable — Performing limited substantive testing on a quantifications between different entities. London, UK
assurance engagement been performed. We selective basis of the Selected Information to 15 June 2021
planned and performed our work to obtain the check that data had been appropriately measured, Our assurance relies on the premise that
evidence we considered sufficient to provide recorded, collated and reported; the data and information provided to us
a basis for Our Conclusion, so that the risk of — Reviewing whether Kingfisher followed its stated by Kingfisher have been provided in good
this conclusion being in error is reduced but not process in the Criteria to determine progress faith. DNV expressly disclaims any liability or
reduced to very low. towards its Sustainability Targets; co-responsibility for any decision a person or
— Assessing the appropriateness of the Criteria for an entity may make based on this Assurance
the Selected Information; Statement. DNV Business Assurance
— Reviewing that the evidence, measurements and DNV Business Assurance Services
their scope provided to us by Kingfisher for the UK Limited is part of DNV–Business
Selected Information is prepared in line with the Assurance, a global provider of
Criteria; and certification, verification, assessment and
— Reading the Report and narrative accompanying training services, helping customers to
the Selected Information within it with regard to build sustainable business performance.
the Criteria. www.dnv.co.uk/BetterAssurance
64 Kingfisher Responsible Business Report 2020/21
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