Taking good care for tomorrow
Corporate Responsibility
Review 2010/11
Introduction
Morrisons – About us
Contents
1
2
4
Chief Executive’s statement
Responsible retailing
3 Stakeholder engagement
Business
5 Championing British farming
6 Meet our farmers
7 Sourcing with integrity
8Fair working conditions
9Focused on the things that
matter
10Creating opportunities
11Achieved today
12Society
13Making it easier to eat healthily
14Working together
15Promoting fresh food in the
community
16Good neighbours
17Achieved today
18Environment
19Making the most of our food
20Reducing and recycling
trade waste
21Helping customers to reduce
and recycle
22Reducing carbon emissions
23 Refrigeration
24Effective logistics
25Achieved today
Scope of this Review
This document reports primarily on progress
in our corporate responsibility programme from
our financial year (1 Feb 2010 to the end of
Jan 2011) unless otherwise stated. More details
can be found online.
Food is at the heart of what we do and we are passionate
about it. Perhaps not surprising for a food retailer, but what
is unusual is the way our business is structured.
Uniquely, we source and process most of the fresh food we
sell through our own manufacturing and packing facilities.
This gives us close control over provenance and quality
and means that we are able to provide fantastic food at
affordable prices.
With 439 stores, we are the UK’s fourth largest supermarket
as well as the second largest food manufacturer. We serve
11 million customers each week, preparing more fresh food
in-store than any other major UK food retailer.
Different and better than ever
A sample of awards from 2010
Retail Employer
of the Year
Best Green Educational
Project for ‘Let’s Grow’
Visit www.morrisons.co.uk/today
Wm Morrison Supermarkets PLC
Compassion in World Farming
Most Improved Supermarket
National Training Awards
Best Large Employer
Large End User of the Year,
Refrigeration Innovation and
Collaboration Awards
Multiple Retailer of the Year
Carbon Trust Standard
Store Manager of the Year,
Fresh Produce Retailer
of the Year and Meat Retailer
of the Year.
1
Chief Executive’s statement
‘Different and Better than Ever’
At Morrisons, we think that access to
affordable fresh food should be a right,
not a privilege. Everyone should be able to
buy high-quality, fresh food and eat well.
Walk into any one of our stores and you can
purchase fresh meat, fish and produce to make
balanced meals for less than £1 per person.
Dalton Philips
Chief Executive
Our business model is different and allows
us to be streamlined and flexible to the
needs of our customers as well as reducing
unnecessary waste and costs. We pass the
benefit on to our customers through the
prices we charge at the till.
One of our greatest challenges is how we
continue to serve our customers fantastic
affordable food in a competitive market against
a backdrop of complex and often interlinked
sustainability issues.
This Review is a summary of some of the
work we undertake to ensure that in going
about our business, we meet our customers’
expectations of corporate responsibility.
We see the commitments we have made as an
investment in our future. We’re certainly not
going to claim we have all the answers, so we
also flag some of the challenges and explain
our approach to addressing them.
439
stores.
11 million
customers per week.
132,000
Our responsibility focus is on food. Sounds
simple doesn’t it? However, when you consider
that we have over 35,000 products in a typical
store and 132,000 people involved in buying,
making, moving and selling that food it
inevitably gets more complicated.
So what have we been up to over the last
year and where are we going? In terms of our
products we’ve focused even more keenly
on how we support customers to make
healthy choices. To underline this, we’ve
signed up to the Government’s Public Health
Responsibility Deal.
industry by sharing best practice and helping
to develop products that our customers
can enjoy.
I’m delighted that our Let’s Grow campaign
was recognised as the Best Green Education
Project by the Green Awards. Having
completed its third year, the programme
continues to support pupils and teachers by
helping them to grow their own fresh food.
We’ve invested heavily in training to support
our people and give our customers an even
better shopping experience. This year we will
be the UK’s largest provider of apprenticeships.
In addition, over the last year we’ve trained
48,000 colleagues to a nationally recognised
qualification in retail skills.
Our long term commitment to carbon
emissions reduction continues on track.
Our work was recognised this year with
a series of awards. We were the leading
supermarket in the ENDS Carbon FTSE CDP
Index for Carbon Management and received
four Cooling Industry Awards for our
refrigeration programme.
Despite the complexity, what it adds up to is, in
fact, relatively simple. It’s trust. Our customers
trust that we will find the right balance, acting
responsibly and, at the same time, offer great
food at a fair price.
By helping customers to make healthier and
greener choices we’re also making it easier
for them to play their part.
I said at the outset that we are different.
I believe that in many ways our differences
make us better able to tackle sustainability
issues. However, we recognise there is more
to do. As a business we are reinforcing our
differences because we believe it makes us
better. The challenge I have set out for our
business is to be better than ever.
We’ve worked even harder on being a leading
supporter of British farming. In addition to our
commitment to fresh British meat, milk and
produce the Morrisons Farming Programme is
now delivering tangible results; supporting the
employees.
Morrisons CR Review 2010/11
2
Responsible retailing
At Morrisons, we care about where our food comes from,
how it is produced, the people who make it and how it is
moved and sold. We want our customers to be confident
that food bought at Morrisons is food they can trust.
Food for thought
Martyn Jones
Group Corporate Services Director
About this Review
This Review highlights some of the many
activities we undertake as part of our
corporate responsibility programme.
We feature a range of relevant issues from
across our business. It does not cover all of
the work we do but instead gives the reader
an overview of the progress we are making –
as well as highlighting areas in which we aim
to make further improvements in the future.
Performance management
and governance
Targets are an important part of driving
and measuring progress. In 2010 we set out
commitments for the second major phase
of our corporate responsibility programme.
We report our progress in this Review and
online. Responsibility for those commitments
rests with key members of our Management
Board and is also reported to our Corporate
Compliance and Responsibility Committee.
In some ways we are a relatively
straightforward business. We buy, make, move
and sell food. Much of the complexity comes
from the scale of our operation because we
sell to 11 million people every week.
Our continual challenge is to provide quality
food at a fair price through supply chains
which are sustainable over the long term.
Quality and affordability are part and parcel of
what we offer every day. The difficulty is that
sometimes, in relation to sustainability, there
are tensions between competing issues and
conflicting views of different stakeholders as
to what is the ‘right’ thing to do. Our approach
to responsible business means that we can
tackle these issues more effectively.
Our ‘Business’ programme is concerned with
how we buy, make and sell food. In championing
British farming, for example, we shorten our
supply chains, support our national and local
economy and are buying into standards that
people trust. Our programme also ensures
that we apply similar standards and ensure
responsible sourcing whoever we buy from
and whatever we buy on a global basis. Making
and selling food, with great service, requires
extensive investment in people. Our strategy
to continually develop our people through
industry-leading training is helping us to
differentiate ourselves in the sector.
‘Society’ is where we share our passion for
fresh healthy food with our shoppers and the
wider community. We’ve focused a great deal
of time and attention on providing advice and
support for customers on fresh food
preparation, nutrition and healthy eating
options through our website, social media,
customer magazines and in store. Our point of
difference is that our colleagues have a wealth
of experience and knowledge about food,
particularly our experts on our Market Street
counters. We’ve taken this a stage further
through campaigns like Let’s Grow, which
enables us to encourage the next generation
to think about where food comes from,
understand its value more clearly and share
this knowledge with others.
‘Environment’ is centred on how we manage
food, operate efficiently and reduce waste.
Where we make, package, move and store
food we have to ensure the effective use of
resources. These issues aren’t just important
in our business, they are universal in their
application. As well as our own extensive
carbon and waste reduction programmes, we
are also helping customers to play their part,
whether that be through the latest packaging
innovation or by reducing food waste with
our Great Taste, Less Waste Campaign.
“In some ways we are a relatively straightforward
business. We buy, make, move and sell food. Much of
the complexity comes from the scale of our operation
because we sell to 11 million people every week.”
Wm Morrison Supermarkets PLC
3
Responsible retailing – continued
Stakeholder engagement
Our Values
Our Values are at the heart of everything
we do, defining what we expect of each
other and what our customers can expect
of us. Our Values help us to shape our
corporate responsibility commitments.
Stakeholder engagement is vital to ensuring our approach to
sustainable business is both relevant and effective. It enables
us to identify issues and opportunities, respond to changing
needs and adhere to best practice by incorporating different
views and feedback into our business operation.
Can do
Can do is about making things happen.
It’s about getting the job done and
delivering results. It’s about being
positive and rising to a challenge.
Suppliers
Customers
One team
One team is about working together to
reach a common goal. It’s about keeping
our promises, building trust and respect,
and valuing each other’s contribution.
Investors
Government
Bringing the best out of our people
Bringing the best out of our people is
about developing ourselves and those
around us. It’s about constantly learning
so we can improve the way we work and
the experience we give our customers.
Community
NGOs
Employees
Great selling and service
Great selling and service is about delivering
a great experience for our customers.
It’s about sharing our knowledge and
know-how and always striving to do better.
Great shopkeeping
Great shopkeeping is about setting high
standards and taking care of every detail.
It’s about having pride in our work and
making quality our top priority.
Fresh thinking
Fresh thinking is about finding new
and better ways of working. It’s about
greater awareness, asking questions
and coming up with bright ideas that
give us the edge.
All of our stakeholders recognise the
importance of sustainable business. Each
group has their own particular focus.
Employees – want good working conditions,
job security and satisfaction and opportunities
to develop a career.
Customers – want quality products at a fair
price with good service.
NGOs – (Non-Governmental Organisations)
ask us to follow their advice, change or adapt
the way we operate.
Communities – are where our operations
have the most immediate impact. They
require us to be a good neighbour and bring
employment and investment.
Investors – expect a good return on their
money and that we grow, find opportunities
and mitigate risks.
Government – sets the rules and regulations
but also asks for support to deliver
government policy.
Suppliers – want our custom, a reliable
trading relationship and the best price.
See some of the things that stakeholders say about us throughout our Review.
Morrisons CR Review 2010/11
4
Business
Our approach
Most British supermarkets rely heavily on
third party companies throughout their
supply chain. This reduces control over the
way their food is sourced and produced.
At Morrisons, we do things differently.
We run our own production facilities and
buy fresh food directly from British farmers
we know and trust. We are also farmers in
our own right. Through our ‘vertically
integrated’ business model, we have direct
control over the production and supply of
food than other supermarkets do.
We want to help our customers enjoy great quality,
fresh food. So at Morrisons, our business isn’t just
about getting food in and out of stores as fast as
possible. It’s about taking responsibility for every
stage of the production and supply chain, from the
farmer’s field all the way to the customer’s plate.
What’s more, our care for food doesn’t
end once it arrives in our supermarkets.
We have more trained butchers, bakers,
fishmongers and other food professionals
on hand than in any other supermarket. So
we don’t just sell food; we offer traditional
craft skills and expert advice so that
customers can really make the most of it.
By cutting out the middleman and staying
in direct control of our supply chain,
we keep unnecessary costs down and get
quality fresh food onto our shelves faster.
So we can give our customers the freshest,
best quality food possible, at a great price,
and prepared in a way that they will enjoy.
We think this is a responsible way of doing
business. This section of the Review
highlights some of the work we’re doing
to build on this approach and explains why.
The starting point for the food that we buy
or make has to be quality. Then we must be
able to buy it in sufficient quantity at a price
that our customers can afford. But this is far
from the whole story.
Where we can we will source British food
first. This is why the vast majority of our
produce and all of our fresh beef, lamb,
pork, poultry and milk is British. Being
closer to source means we are well
placed to ensure these products are
responsibly produced. This means that
their environmental impact is properly
managed, workers’ rights are upheld,
animal welfare standards are maintained
and suppliers are treated as partners.
Customers also want choice and availability
all year round. In practice, this means that
we also sell food that comes from around
the world. Our challenge is to make sure
the high standards we set are applied
globally, not just at home.
Wm Morrison Supermarkets PLC
We’ve long recognised the issue of climate
change and have a leading emissions reduction
programme. However, this is only part of the
solution because, for example, at the start of
the supply chain we also need to ensure that
we aren’t adding to deforestation through
the sourcing of key commodities such as
palm oil or soy. This is why we are changing
products so that they only contain palm oil
from certified sustainable sources.
We know there is always more to do. It is
not the case that you could ever say ‘we’ve
done this’. Corporate responsibility is about
continuous improvement. We keep ever
vigilant and strive for best practice at home
and overseas. By upholding these standards
we will ensure our customers can trust that
the food we sell is food with thought.
5
Business – continued
Championing British farming
We believe that great quality food starts
with great farming. As one of the UK’s
biggest food retailers, with close working
relationships with suppliers all over the
country, we’re supporting the long term
viability of British farming and making
sure the industry is innovative, competitive
and sustainable.
The Morrisons
Farming Programme
Now in its second year, the aim of the
Programme is to help build a British
farming industry that is able to feed
future generations and save costs, whilst
minimising its impact on the environment.
All of this leads to a better deal for our
customers as we help to drive down costs
without creating more burden for our
farmer suppliers.
The Morrisons Farm
at Dumfries House
Our business approach is based on getting
as close to the source of food as possible
– so it seemed like a natural step to have
our own farm. As well as rearing cattle
and sheep, the 1,000-acre farm in Ayrshire,
Scotland aims to deliver best practice in
sustainable farming on a practical level.
Farm research
Morrisons is working with universities and
other research institutions in the UK to
investigate new and more effective methods
of production. All our research is led by
experts, but ideas come from many sources:
from the farmers themselves, from people
in our own business and from our own farm.
Following substantial restoration, the farm
is now ready to become a base to trial new
farm projects. Current projects include
calculating the carbon footprint of the farm
through a full sustainability audit and a
breeding initiative designed to improve
farm productivity.
We launched 12 new research projects over
the last year. For example, we commissioned
the UK’s first independent report into
renewable energy options for dairy farms.
“ We have set ourselves the challenge
of making the Morrisons Farm both
commercially and environmentally
sustainable. By sharing whatever we
learn with our fellow farmers there’s real
potential to benefit farm businesses.
“
The report suggested that renewable energy
has the potential to cut dairy farm electricity
costs by a third and offers farmers the chance
to generate and capture energy that can be
sold back to the grid, creating a new source
of income.
Dalton Philips
Chief Executive
Morrisons CR Review 2010/11
6
Business – continued
Meet our farmers
Our business is built on strong, long-lasting working
relationships with great British farmers all over the
country. Here are just a few of them.
Visit w ww.morrisons.co.uk/our-suppliers
David Westwood
“ We’ve got a good
Mark Strawson
Strawsons Leeks, Newark, Nottinghamshire
Mark Strawson is the third generation of the
family to work on the farm. Since he started,
the Strawson farm has diversified from
potatoes and cereals into other crops
including leeks and carrots. The family is also
committed to promoting biodiversity and
encouraging wildlife to prosper on their land.
It’s a way of working that has helped them
become LEAF Marque accredited.
Morrisons over 20 years
ago. We’ve maintained
this close relationship
over the years and speak
to Morrisons nearly every
day about how the crop
is progressing.
“
David Westwood
Wm Morrison Supermarkets PLC
“ Working with Morrisons is refreshingly
simple. In my opinion they have an
industry-leading approach to sourcing
quality British food.
“
“ We started working with
David Brass
David Brass
Meg Bank Farm, Cumbria
On Meg Bank farm, hens have acres of
woodland and grassy glades, enabling them
to forage on land that is rich in clover, wild
flowers and herbs. David’s dedication to
producing free range eggs has seen his farm
named Poultry Farmer of the Year at the
Farmers Weekly Awards.
relationship with
Morrisons and we’ve
been working with them
for more than 15 years.
They appreciate the fact
that farmers have to
deal with something
as unpredictable as
the weather.
“
Westwood Rhubarb Growers, West Yorkshire
David Westwood has been supplying
Morrisons with rhubarb for over 20 years
from his family run farms in West Yorkshire.
David is part of a long legacy of rhubarb
growers. His great-great-grandfather and
great-great-uncle were some of the first
rhubarb growers in the mid 1800s.
Mark Strawson
7
Business – continued
Sourcing with integrity
One of our farming stakeholders is Compassion in World
Farming. They work with the industry to monitor and
promote welfare-based farming systems. In 2010, they gave
us an award for the continual improvements we have made
working with livestock farming suppliers.
Free range eggs
From a sourcing perspective there are numerous
issues that we carefully consider. Many of the
issues are complex and stakeholders are not all
in agreement about how best to tackle them.
Description
Issues
Our ongoing response and last year’s activity
Livestock
Fresh beef,
lamb, pork
and poultry
Concerns over
welfare, extended
supply chain and
land use
All of our fresh meat and poultry is British – supporting British
farmers and working to further enhance welfare standards.
Dairy
Fresh milk
Concerns over
extended supply
chain, welfare, and
prices paid to
farmers
All of our fresh milk is British. We do not operate a dedicated supply
pool which we believe is fairer because all of the farmers our
processors buy from get a premium rather than a ‘select few’.
One example of our responsible approach
to farming is the way we source eggs.
From 2010, we became the first top-four
retailer in the UK to switch to 100% British
free range for own brand eggs. Morrisons
sells more than 10 million eggs every week,
so this switch will make a substantial
difference to the welfare of laying hens
throughout the UK.
We also introduced an ‘Online Egg Tracker’
to our own brand Nature's Nest range.
Each egg comes stamped with a special
code, allowing customers to trace the egg’s
provenance and find out about the farm
where it was laid.
Over the year, we’ve made great strides
by introducing free range eggs into other
own brand products, including all of our
ready meals, pasta, quiche, mini eggs and
scotch eggs and in 2011 our mayonnaise.
All of the eggs used in our in-store cafes
are now also free range.
Where we are able to influence the supply chain
we do so by balancing economic, environmental
and social considerations as well as the interests
of our customers, shareholders and suppliers.
We gave our processors longer term contracts to guarantee income
over a settled period.
We undertook a major research project into renewable energy options
for dairy farmers through our Research Farming Programme.
Fish
Fish sourcing
Concerns over
sustainability
but increased
interested from
customers as a
healthy option
Enhanced sourcing policy. Fish counters certified under the Marine
Stewardship Council chain of custody programme with species such
as Cape Hake, Mackerel, Dover Sole and Wild Alaskan Salmon
certified under the scheme.
We encourage customers to buy different types of fish and joined the
Sustainable Seafood Coalition to promote this and clearer labelling.
We moved our tinned tuna policy in line with our fresh sourcing so
that all own brand fish will either be pole and line caught or from
Fish Aggregating Device (FAD) free fisheries.
Palm oil
Soy
Commodity
sourcing
Commodity
sourcing
Concerns over
deforestation and
biodiversity
We progressed our policy to move to 100% certified (RSPO) palm oil.
By 2015 we will use fully segregated palm oil in own brand products.
Concerns over
deforestation and
biodiversity
We are undertaking more detailed analysis where soy is used in our
products.
All new products now have to support an RSPO certified palm oil supply
chain system.
We are supporting WWF’s call to work with a certification system
under the Round Table for Responsible Soy. We have not yet committed
to sourcing under the system until we can assess the impact –
particularly on UK farmers (the majority – around 80% – is used for
animal feed).
We have committed to research under our Farming Programme to
look at alternatives to soy used in feed in relevant livestock farming.
Timber
Commodity
sourcing
Concerns over
deforestation and
biodiversity
We have a longstanding commitment to manufacture all own brand
timber-based products (such as paper and garden furniture) from
FSC or equivalent sources.
Morrisons CR Review 2010/11
8
Business – continued
Fair working conditions
By building strong, long term relationships with our external
suppliers and auditing them regularly, we maintain the same high
standards and aim to develop good working practices across our
entire supply chain. This drives best practice and improves
conditions for workers at home and abroad.
We audit suppliers of Morrisons own brand
products through our Fair Working Conditions
(FWC) programme. We make sure that our
suppliers comply with our Ethical Trading
Code and monitor their employees’ general
health, well-being and satisfaction. All our
audits are carried out independently.
We choose candidates for audit based on a
risk-assessment process. This means that we
focus on areas where there may be concern –
such as emerging markets, or labour intensive
sectors such as agriculture. In the past year,
for example, we looked carefully at Indian and
Kenyan tea gardens, our UK meat and poultry
supplier base and packers of prepared food
products. Instead of simply relying on factory
documentation or information from
employers, our audit approach is based
on the views of employees themselves.
Although we normally audit external
suppliers, one of our main focuses this
year was on our own manufacturing sites.
Our independent FWC assessments have
now been successfully completed at most
of our own facilities ensuring we apply
the same high standards across the board.
See
www.fairworkingconditions.ie
“The traditional checklist/box-ticking approach alone
does not provide a reliable insight into the real working
conditions; a vital source of information is overlooked
– employee experience. Fair Working Conditions is
fundamentally changing ethical auditing by promoting
employee engagement.”
Dermot Kenny
Fair Working Conditions
Wm Morrison Supermarkets PLC
9
Business – continued
Focused on the things that matter
In Market Street we have more highly
trained and experienced colleagues
with craft skills on hand than any other
supermarket. Whether our customers are
looking for recipe ideas, advice about what’s
in season, or a certain cut of meat for their
family Sunday roast, our expert staff will be
happy to help. We’re able to respond quickly
to changes in demand, which means we can
cut down on unnecessary waste while giving
more of our customers what they want.
Our success in offering great food expertise to our customers
depends on our colleagues, so we’ve made sure that we have
some of the most motivated, talented and skilled employees in
food retail. We strive to create a rewarding working environment
in which people have the opportunity to develop new abilities,
achieve career ambitions and realise their full potential.
The Morrisons Academy
The award-winning Morrisons Academy
provides a suite of training and development
tools to bring out the best in our people
at all stages in their career.
The academy is built on strong partnerships
with leading academic accrediting, training
and development providers.
On the shop floor, the opportunities begin
immediately. New store recruits can achieve
a QCF Level 2 Retail Skills qualification
(equivalent to 5 GCSEs at grade C level or
above) while doing their day job. Last year
nearly 48,000 colleagues were successfully
accredited with this nationally recognised
qualification.
“ The best thing about being
a butcher for Morrisons is
that we offer the full traditional
butcher’s shop service. We don’t
just sell meat, we offer advice
and help on how to cook it.
“
Brian Hill
Morrisons butcher
1 million
training days delivered to our people
in 2010/11.
In 2010, the standard set by our Academy was
recognised externally at the National Training
Awards, winning the top prize. The judges
praised our training best practice, the
Academy’s unique scale and our exceptional
commitment to embedding the programme
right across our stores. This means better
opportunities for our people and a better
service for Morrisons customers.
48,000
colleagues trained in Retail Skills
QCF Level 2.
18,000
apprentices will be trained in 2011
(largest apprenticeship provider in the UK).
Management training
At management level, our Coaching for
Performance Programme draws on learning
from the world of sport to help our business
leaders maximise the potential and
performance of their teams. More than
1,000 of our senior leaders will take part
in the programme in the next 12 months.
At the top floor, our Advanced Leadership
Programme prepares our senior management
team to be the executive directors of the
future. In 2010, 20 senior managers joined this
programme and three of them have recently
progressed to the Management Board.
95% of our Store General Managers are
promoted from within and 30% of our Senior
Management Team started on the shop floor.
Our approach to recognising talent, rewarding
hard work and creating opportunities for
progression saw productivity increase by
7%, labour turnover decrease by 6% and
a 0.3% fall in absence. All of this contributes
to a higher level of service and expertise in
our stores.
Morrisons CR Review 2010/11
10
Business – continued
Creating opportunities
We are proud to have
a diverse workforce
Diversity means that our employees reflect
the communities in which we operate. This
means that we are better able to serve our
local customers and are more likely to
meet their expectations. We are turning
our attention ever more keenly to ensuring
that our workplace provides equal
opportunity for all.
An employer of choice offers better customer service
In 2010, we opened 14 new stores, creating 3,500 jobs.
As well as investing in the skills of our people, we believe
that it is important that our employees are representative
of the communities in which we operate.
“ Big problems require
big solutions.
Partnerships between
large corporates and
social enterprise are
the way to help society
work and do business
for good.
One example is our new programme
to unlock the talent of women working
at Morrisons. We’ve set ourselves the
target to ensure that we have at least
30% female representation in our Senior
Management Group within three years
(13% by February 2011).
This year we launched the Morrisons
Manufacturing Sponsored Degree
Programme – a programme for 18-year-old
school leavers that aims to create the
manufacturing business leaders of
the future.
The programme gives students a chance
to earn a competitive salary while receiving
vocational training without paying
university fees. While working in Morrisons
manufacturing business, students will
also study for a BSc (Hons) in Management
and Business at Bradford University.
It’s an approach that gives students the
chance to gain industry-relevant skills that
are aligned with our business objectives.
As part of our commitment to being a good
employer and an active member of the
community, we want to create job opportunities
for people who might otherwise find it a
challenge to find employment. Our aim in
2011/12 is to give up to 10% of new jobs
at our new stores to vulnerable people.
Last year we set up a working partnership
with CREATE, an award-winning Leeds-based
charity supporting disadvantaged people.
“ This initiative will help give
disadvantaged people to
get their lives back on track.
We look forward to taking
this approach nationally
and we would encourage
other British businesses
to join us in this initiative.
“
Helping school leavers
“
Why? Because it’s the right thing to
do and it will help us to accelerate
growth in our business. Women have
an increasingly important position
as consumers and companies with
a higher proportion of women on
their Boards outperform competitors.
Norman Pickavance
Group HR Director
Wm Morrison Supermarkets PLC
Gary Stott
CREATE Foundation
Through our association with CREATE, we’ve
already started to recruit and train people
from homeless backgrounds. The jobs we’re
providing will get their lives back on track and
create loyal and committed team members.
It’s our aim to provide 1,000 jobs through
our partnership with CREATE over the next
three years.
New starters taking part in the scheme
receive three months of training, both in
the classroom and on-the-job, leading to
a QCF Level 1. Successful applicants will
then become fully employed by Morrisons,
and given the opportunity either to gain
an QCF Level 2 in Retail Skills, or take up
an apprenticeship to learn a craft skill – for
example, as a baker, butcher or fishmonger.
11
Business – continued
Achieved
Responsible
sourcing
Be a leading
supporter of
British farming
Raise standards in
the supply chain
Positively influence
sustainability within
our supply chain
Avoid harm to
vulnerable natural
habitats and wild
native species
Target
Commitment
Update
Establish applied farm research
programme.
Implement Farm Programme initiatives.
• Reports published on renewable energy
in the dairy sector, cross-breeding and
free range hen activity.
Share research projects and experience from
Morrisons Farm at Dumfries House with the
farming industry.
Extend 100% British pledge.
Introduce more 100% British fresh own
brand lines.
500 own brand suppliers to achieve
Morrisons ‘Gold Standard’ for quality
of supply by 2013.
Set a ‘Gold’ standard to identify leadership
in quality of supply.
600 site audits for Ethical Trading Code
compliance to be completed by 2013.
Enhance animal welfare policies and
auditing processes by 2013.
Apply auditing on a risk rated basis and using
priority indicators.
We will work with our suppliers to
ensure that 100% of the palm oil used
in our own brand products is sourced
through a Roundtable for Sustainable
Palm Oil (RSPO) recognised supply
chain system by 2015.
No product/ingredient from areas
subject to unregulated deforestation.
Through product specification and supplier
auditing ensure procurement from sources able
to be maintained in the long term, or able to
regenerate with intervention, support and
careful management.
No sourcing of raw materials or ingredients from
areas of recognised ecological or environmental
value and proven to be at risk of long term harm.
Work with recognised, independent third parties
and suppliers to gain independent certification
and accreditation.
100,000 colleagues trained to
nationally recognised qualification
by 2011.
• Developed the standard in line with
Morrisons Values.
• Focus on manufacturing in 2010.
• Review completed for all major livestock
groups in 2010.
Sustainable seafood policies to apply
universally across all own brand ranges
by 2013.
Excellence in
selling: Our people
Delivering
sector-leading
training and skills
development
• New workstreams established. Four
reports to be published in 2011/12.
• Further commitments to British food,
with new lines including all British
sausages.
• Currently rolling out with suppliers.
• First retailer to introduce CCTV into
abattoirs.
• Suppliers notified, new products now
must comply with an RSPO endorsed
system.
• Own manufactured products compliant
by end of 2011.
• Focus on soy in 2011/12 with supply
chain analysis and farming research
(in relation to soy alternatives for
livestock).
• Joined Round Table for Responsible Soy.
• Application of policy to tinned tuna and
freshly prepared food (e.g. sandwiches
and salads) in line with fresh so that it is
pole and line caught or from FAD free
fisheries by the end of 2013.
Further develop Fresh Food Academy to provide
nationally recognised qualifications,
apprenticeships and skills training programmes.
Build colleague stability and retention through
engagement with Vision and Values.
Application of our Values across the business.
• Over 48,000 colleagues trained.
• Over 1 million training days provided.
• Morrisons is now the largest provider
of apprenticeships in the UK.
• Labour turnover reduced by 6%.
Commentary on targets
Our responsible ‘Business’ targets are a non-exhaustive set of
commitments that we believe capture material issues that relate
to how we operate in terms of buying products (sourcing) and then
how we best prepare and support our people to sell them. This is in
addition to the regulatory framework, best industry standards and
responsible commercial trading which would be expected of
us as a major UK retailer. We do this because, as well as being
environmentally and socially responsible, there are clear benefits
for customers and our business today and in the future.
Morrisons CR Review 2010/11
12
Society
Our approach
We depend on the communities which are
home to our stores, so it is in our interest
to ensure that we maximise the value
we provide for them. That means being
a good employer, a good neighbour and
an active part of the community.
Equally, we can have an impact on
our customers’ behaviour, so it can
sometimes be important for us to take
a lead in helping those who shop with
us to make positive, healthy choices.
Morrisons has a range of initiatives to
help fulfil these responsibilities. This
section of the Review includes details
of some of them.
Food is part and parcel of our society. What we eat and drink
has a direct affect on our health and well-being and our stores
are part of the neighbourhood. We see this as an opportunity
to make a difference.
How do we do it? It comes back to food; after
all we are a food business. This includes
promoting healthier eating as an essential
part of daily life.
For all our success, we know there is much
more we can do. We are reviewing our work
this year as we look to play an even more
active and positive role in our communities.
We don’t dictate to our customers what
they should and shouldn’t do. Ultimately,
customers will exercise their choice, but
we can make it more attractive to eat fresh
and healthy food by making it affordable
and accessible.
Whilst supermarkets are sometimes criticised
for promoting ‘unhealthy’ food, at Morrisons,
over the last year, we have always had a
minimum of 50 promotions on fresh produce
every week.
These include promotions on items such
as stew packs, which make eating healthily
not only more affordable but also more
convenient. We can do this because we
buy most of our produce direct from growers
and pack it in our own facilities.
We’ve taken our ‘passion for produce’ into
the community with our hugely successful
Let’s Grow campaign which has reached
over half the schoolchildren in Britain.
We touch the lives of 11 million shoppers a week.
That is 11 million people and, in most cases, also their
families. Add to that the communities in which our
shops are based and our employees and you start to
capture the effect our business can have at a social level.
Wm Morrison Supermarkets PLC
13
Society – continued
Making it easier to eat healthily
Helping customers achieve
healthy, balanced lifestyles
We want our customers to know that
eating healthily doesn’t have to be time
consuming, costly or complicated,
so we provide a raft of help and advice.
As well as consistently driving up the quality of our food, we also
want to make it easy for our customers to make healthy choices.
Last year, we set out a number of commitments on health and
well-being and we’ve been making steady progress towards
achieving our goals. Here are a few examples.
One great example is the healthy eating
page on our website.
The effect of the guidance and further work
with our suppliers has been to reduce the salt
and saturated fat content of products without
compromising on taste.
Here customers can find useful tips
covering everything from how to cut down
on salt, to advice about starting your day
with a healthy breakfast. We also provide
an explanation of our front of pack (GDA)
nutrition labelling.
For example, last year we reduced the
saturated fat in all of our own brand crisps
by 75%. Our baked crisps have only 5%
of GDA.
With our published recipes also containing
detailed nutrition information they can help
customers plan a balanced diet.
We provide similar information in-store
with recipe cards and in our free Morrisons
magazine.
See w ww.morrisons.co.uk/
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Providing nutritional advice
and information for customers
We clearly display nutritional information
on the front of all relevant pre-packed food
and drink products. This includes the amount
of calories, fat, saturated fat, sugar and salt
per serving alongside their contribution as a
percentage to the guideline daily amounts.
Over the last year, we have also extended and
reformulated our ‘Eat Smart’ (low and lower
fat) range and developed new products such
as our crustless quiche, which has 60% less
fat than our standard range.
We are establishing similar details for our
Market Street products which are made and
prepared fresh in-store each day, including
our pizzas, sandwiches, bread and cakes
as well as on our Deli Café menus.
Cutting down on salt and fat
We have developed detailed guidance on
the nutrient composition (fat, salt and sugar)
of our own brand food. Our suppliers and
developers must make sure that, as well as
complying with all the relevant legislation,
any products they supply to us have credible
nutritional information in line with our best
practice guidance.
95%
of the FSA’s 2010 salt category reduction
targets have been met.
e
gazin
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62 mo
Morrisons CR Review 2010/11
14
Society – continued
Working together
Some issues are best addressed when business and government
work in partnership. Whilst competition drives progress,
collaboration can deliver a wider social impact.
It was on this basis that we signed up to the
Department of Health’s Responsibility Deal,
which was launched in early 2011, with
pledges on food, alcohol, health at work and
physical activity. Our commitments build on
the longstanding approach we have taken to
promoting healthy lifestyles. We believe we
can offer expertise and leadership to help
bring about positive change.
“ We are signing these pledges
because we are committed to
making healthy choices easier
and more affordable.
“
Martyn Jones
Group Corporate Services Director
We have signed up to all the relevant pledges
and will report on our progress. These
pledges are based on the following core
commitments. We:
•recognise that we have a vital role
to play in improving people’s health;
•will encourage and enable people
to adopt a healthier diet;
•will foster a culture of responsible
drinking, which will help people to
drink within guidelines;
•will encourage and assist people to
become more physically active; and
•will actively support our workforce
to lead healthier lives.
Treating alcohol
responsibly
Alcohol is a product for adults. It can
be enjoyed socially but it can also be a
cause of harm. We want our customers
to be able to choose to enjoy quality
alcohol products responsibly and at
a sensible price.
Task 25
We take our legal responsibilities with
regard to selling alcohol very seriously.
Task 25 is our scheme to help us make
sure we never sell alcohol to people
under the legal drinking age.
Under Task 25, any member of staff
who believes that a customer wishing
to purchase alcohol may be under the age
of 25 will ask that customer to provide
recognised proof of age documentation.
Offering our customers choice
We ensure that our range includes a good
choice of low-alcohol products. We do not
stock products that could unduly appeal
to people under the age of 18.
Sensible pricing
Morrisons set a policy of not selling
alcohol below the rate of duty plus VAT
over two years ago. We proposed this as
a wider policy to the Government in June
2010. Since then the Government has
implemented this policy and made it
a legal requirement for all UK retailers.
“The Responsibility Deal is a significant development
bringing together industry, the Government and
campaign groups to help promote healthy eating
and drinking habits.”
Andrew Opie
Food Director at the British Retail Consortium
Wm Morrison Supermarkets PLC
For the first time this gives the Government
a lever to get a guaranteed floor price
for alcohol sales.
15
Society – continued
Promoting fresh food
in the community
Let’s Grow
At Morrisons, we believe one of the best ways to encourage
healthier eating is to promote a better understanding of real
cooking and fresh ingredients.
Highlights from our last
three years:
5 million
school children have access
to gardening equipment.
14 million carrots
grown by schools taking part
in Let's Grow.
450,000
people can be fed with the amount of
potatoes grown by Let’s Grow schools.
Let’s Grow has continued to develop.
The programme now has:
Having completed its third year, Let’s Grow
currently has 18,417 schools registered,
with 67% of all primary schools and 47%
of all secondary schools in the UK actively
taking part.
• increased communications to strengthen
relationships with teachers.
• a n enhanced catalogue – introducing
living plants and cookery equipment;
• e ven more technical resources available
to teachers;
• o
pportunities for schools to visit
Morrisons stores and farms to further
their education; and
As well as schools, nurseries and registered
childminders can now also join the campaign.
See w ww.morrisons.co.uk/letsgrow
Let’s Grow and Cook
Alongside the Let’s Grow gardening
equipment available in the catalogue,
last year we also trialled Let’s Grow
and Cook programme kits in 40 schools
throughout the UK.
Each of the programme kits contained
a teacher’s classroom pack, recipe cards,
cook-along guides, learning posters,
kitchen essentials and Morrisons gift
vouchers. In addition, we offered a
25% discount off the price of selected
recipe ingredients within our stores.
“ I am passionate about encouraging
schools to teach children about
where their food comes from.
It was wonderful to visit Over
Primary School’s gardening club
and hear about them growing
their own carrots, potatoes and
even strawberries.
“
There is growing concern that many children
have little understanding or interest in the
story of fresh food and the importance of
eating well. That’s why we created Let’s
Grow – a community benefit programme
designed to help reconnect people with
food, inspire children to follow a healthier
lifestyle and get them excited about
fresh produce.
Rt Hon. Jim Paice MP
Minister for Agriculture and Food
Morrisons CR Review 2010/11
16
Society – continued
Good neighbours
Supporting people with
terminal illnesses
Under our Raise a Smile campaign, we
support one national charity every year.
In 2010, our colleagues nominated Help
the Hospices as our charity of the year.
Help the Hospices works with children and
adults living with a life-limiting or terminal
illness. The charity twinned each of our
stores with a local hospice, which meant
the money raised in each of our stores
directly helps our local communities.
Thanks to the fantastic generosity of our
customers and colleagues, we raised over
£1.3 million for the charity.
Being good neighbours. At Morrisons we have a range of
valuable skills and expertise, not to mention heaps of enthusiasm,
to offer the communities in which we operate. Here are just a few
of the ways we’ve been making a difference during the past year.
Improving local communities
The CSV Action Earth campaign challenges
local communities to find ways in which they
can protect and enhance their environment,
improve their quality of life and safeguard
the environment for future generations.
We have supported the campaign for the
last four years.
Our support has helped the charity
provide many small grants to local
voluntary and community groups.
These grants go towards purchasing tools,
equipment and materials needed for
projects that make a positive difference
to their community and environment.
Some of the highlights of our
four-year partnership include:
3,470
projects registered in the UK
13,000
new trees planted
18,000
bags of litter collected
+63,000
volunteers have been directly involved
Supporting ethical products
At Morrisons, we support the work of the
One Foundation by stocking its products
within our stores. 100% of their profits go
towards funding vital projects by providing
sustainable clean water supplies, HIV/AIDS
counselling and testing, nutrition, hygiene
and sanitation facilities.
By buying One products, Morrisons
customers have so far funded 12 vegetable
gardens, a sanitation block, eight HIV
testing days and 34 water PlayPumps,
providing over 68,000 people with access
to a sustainable supply of free, clean
drinking water and crop irrigation in Africa.
Wm Morrison Supermarkets PLC
“The partnership with Morrisons has been a huge success
and we are absolutely delighted to have raised over
£1.3 million for hospice care. This is a fantastic achievement
and is testament to the dedication of Morrisons’ colleagues,
who have really taken the hospice cause to their hearts.”
David Praill
Chief Executive, Help the Hospices
17
Society – continued
Achieved
Target
Commitment
Update
Develop nutritional policies and adopt best
practice to provide useful and relevant
advice for customers.
Develop and provide information to help
with education on what we eat and drink.
•Continued development – over 95% of
product categories meet FSA 2010 salt
reduction targets.
Health and
well-being
Contributing to food
education to support
healthy, balanced
lifestyles
Give support and guidance for achieving
healthy, balanced lifestyles to customers
and colleagues.
Manage policy development and
implementation for own brand products
on health and nutrition issues related
to matters such as salt and saturated
fat reduction.
•Launched a minimum ‘50’ fruit and
vegetable promotion guarantee.
•Signed up to the Government’s Public
Health Responsibility Deal, including
all the core commitments. We:
•recognise that we have a vital role
to play in improving people’s health;
•will encourage and enable people
to adopt a healthier diet;
•will foster a culture of responsible
drinking, which will help people to
drink within guidelines;
•will encourage and assist people to
become more physically active; and
•will actively support our workforce
to lead healthier lives.
Community
Investment
Supporting the
development of fresh
food know-how and
cooking confidence
Develop the ‘Let’s Grow’ scheme to increase
participants’ skills and knowledge.
Build food skills knowledge by enabling
practical expertise and advice.
• 18,417 schools registered.
• Let’s Grow and Cook trialled in
40 schools.
• Won Best Green Education Award
in 2010.
Support national and local good causes for
community benefit.
Establish ‘Raise a Smile’ brand to
encourage support for charity fundraising.
• Raised £1.3 million for Help the Hospices
and numerous local causes through our
stores; for example, £0.4 million for the
Pakistan Flood Appeal.
Commentary on targets
Our responsible ‘Society’ targets are a broad set of objectives that
we believe demonstrate our real commitment to addressing health
and well-being and extending our positive influence in the communities
in which we operate. These targets are non-exhaustive and indicative
of our intention constantly to improve our social responsibility
performance. They are in addition to the regulatory framework,
best industry standards and responsible commercial trading which
would be expected of us as a major UK retailer. In other words,
it is all the work we do on top of what might be expected. We do so
because as well as being socially responsible, there are clear benefits
for customers, communities and our business today and in the future.
Morrisons CR Review 2010/11
18
Environment
Our approach
We recognise that it is important to our
business, as well as society at large, to play
our part in protecting the environment.
Climate change, resource depletion,
waste and pollution affect us all.
As well as protecting the natural
environment, reducing the impact of our
operations can produce cost benefits by
improving efficiency, allowing us to be
more competitive in the marketplace.
We have made good progress in many key
areas. This section of the Review outlines
some of the measures we have taken over
the last year to improve our environmental
performance further, focusing in particular
on our stores where the majority of our
impact is created.
As one of the UK’s biggest supermarkets and a major food
producer, we have a significant environmental footprint.
We work constantly to reduce our impact and help our
customers to play their part.
Our environmental considerations fall mainly
into two parts. First, is all that we do to
ensure food is produced, moved and sold with
minimal waste and help customers reduce,
reuse and recycle. This is about making the
most of food.
Second, is the major issue of carbon emissions
reduction, which is a key overarching
benchmark for environmental performance.
When people think of emissions, they tend
to think of energy, but in fact refrigeration,
transport and waste are also significant
factors. Increasingly, attention is turning
to carbon in the wider supply chain, which
commentators highlight as being the greatest
challenge. We agree, but from a practical
point of view we believe strongly that our
focus should remain on our direct emissions
where we can exert the most control.
Our business model means that we own
a greater part of the supply chain than other
supermarkets. Our emissions programme
(and the efficiencies we gain from the extent
of our network) means that there are inherent
carbon benefits from the way we are set up
to operate.
Wider supply chain issues, emissions
associated with agriculture, global food
supply and water use all present challenges
that we will have to tackle as an industry,
working with government at all levels. Clearer
scientific research, like that undertaken in our
Farm Research Programme, will be an
important part of this collaboration.
1st
placed supermarket in the 2010 ENDS
Carbon FTSE CDP Carbon Strategy Index.
1st
supermarket to be awarded the
Carbon Trust Standard.
Wm Morrison Supermarkets PLC
All new stores are benchmarked under the BRE Environmental Assessment Method (BREEAM).
19
Environment – continued
Making the most of our food
Too much of the food produced in the UK ends up as waste.
At Morrisons, we minimise waste through better food
management and close control throughout our vertically
integrated supply chain.
Food waste – FareShare scheme
Meat
Our policy, at every stage in the supply
chain, is to minimise food waste. In 2010,
we joined forces with the community food
network FareShare. FareShare aims to
tackle two of the most urgent issues that
face the UK – food poverty and food
waste. By working with our suppliers, they
redistribute any surplus food that can’t be
sold to a community-based network of
organisations working with the most
vulnerable people in society.
Instead of buying cuts of meat, we buy the
whole animal; we buy the pig not the pork
chop. As a result of the great relationships
that we have built with farmers, our buyers
can buy British cattle, lambs and pigs and then
transport the livestock to one of our own
abattoirs. We are then able to use every
single cut of meat.
This food encourages disadvantaged
people into an environment (such as
hostels, day centres and night shelters)
where they can receive appropriate
support. It also enables these organisations
to focus their funds on other services, such
as housing advice, training and medical
support, which in turn help people rebuild
their lives.
Large cuts of meat, called primals, are
transported to our stores where our trained
butchers can expertly prepare smaller cuts
exactly how customers want them. We also
supply our own food preparation sites to
make our own pies, sausages, cooked meats
and other products.
It all adds up to a better deal for farmers,
great quality food, less waste and efficient
use of valuable resources. Our customers
gain the benefits of quality at a keen price.
“ It’s great that Morrisons has asked
their manufacturers to redirect
their own brand surplus food to
FareShare so that we can use it to
feed disadvantaged people. We hope
that many of them will take this
opportunity to make sure that good
food isn’t wasted and we look forward
to continuing to work together to
fight food poverty and support local
communities throughout the UK.
“
Lindsay Boswell
Chief Executive
FareShare
Produce
As with fresh meat, we buy most of our
fruit and vegetables direct from the farmer.
The vast majority of the vegetables we sell
throughout the year are British. When in
season we are 100% British for strawberries,
carrots, broccoli, swede, cauliflower, peas,
cabbage, onions, potatoes, parsnips
and sprouts.
Produce going through our own pack houses
is washed, sorted and graded so that it arrives
in store quickly and as fresh as possible.
We buy whole crops from farmers and
can utilise all of the food we buy.
Take, for example, the great British potato.
Other supermarkets ask a third party to
pack certain sizes for them, to a certain
specification based largely on how it looks
rather than how it tastes. We take smaller
potatoes out of the load and sell them as
baby roasters or, if really small, as animal
feed. Out-grades with skin blemishes or odd
shapes can be sold in value packs. Nothing
is thrown away.
For a given tonnage of potatoes we can
make use of 20% more of the crop than
other supermarkets. Farmers sell their
whole crop, customers save money and
we reduce food waste.
Morrisons CR Review 2010/11
20
Environment – continued
Reducing and recycling trade waste
At Morrisons we work hard to reduce the amount of packaging
we use and recycle as much of our own waste as we can.
82%
Is packaging bad?
of waste in our stores is recycled.
Packaging is not in itself ‘bad’. Packaging
actually has a positive impact, reducing food
waste by extending shelf life and protecting
food in transit. When you consider the energy
and resources used to make food and the
greenhouse gases produced when it spoils,
it’s clear that protecting food has to be
a priority.
Recyclopedia to Recycle Now
We recognise that customers can find the
myriad of labelling confusing and that this
can reduce the likelihood of them recycling
packaging. With this in mind we’ve been
moving our recycling labelling from
‘Recyclopedia’ to the On Pack Recycling
Labelling scheme to help customers make
the right recycling choices.
As part of our Great Taste, Less Waste
campaign, we introduced the Morrisons
‘Keep it Fresh’ test, which scrutinises the
use of packaging against set criteria. It’s not
always obvious what makes ‘good’ packaging.
Take, for example, the humble cucumber.
Adding 1.5 grammes of film may seem
unnecessary but can extend its life from
three to 14 days (before it goes dull, limp
and most people won’t eat it).
Reducing impact
Where the use of packaging is necessary,
our in-house technologists work closely with
our trading colleagues to offer advice on how
to reduce the environmental impact of the
packaging for new (and existing) product lines.
Key performance indicators
Store waste analysis
Total waste generated
Year
2009/10
2008/09
192,846 tonnes 188,643 tonnes
(including new
(including new
stores)
stores)
2010/11
188,376 tonnes
(including new
stores)
2007/08
2006/07
187,773 tonnes 198,500 tonnes
(including new
(including new
stores)
stores)
Waste per store
Year
Tonnes per store
Diversion per store
Landfill per store
Waste stream
Cardboard/paper
Plastics
Other recovered
Recycled total
Waste to landfill
2010/11
2009/10
2008/09
2007/08
2006/07
439 stores
439 tonnes
360 tonnes
79 tonnes
422 stores
447 tonnes
346 tonnes
101 tonnes
382 stores
493 tonnes
361 tonnes
132 tonnes
375 stores
501 tonnes
358 tonnes
142 tonnes
368 stores
539 tonnes
386 tonnes
154 tonnes
Tonnes
%
112,961 71
Tonnes
%
109,685 75
Tonnes
%
112,787 82
%
Tonnes
119,000 84
13,000 9
8,015 5
8,261 6
6
8,436 6
28,008 19
17,472 13
14,656 11
10,000 7
158,004 82
145,953 77
137,867 73
134,378 72
142,000 72
34,842 18
42,690 23
50,509 27
53,395 28
56,500 28
Wm Morrison Supermarkets PLC
• O
ver the last year alone we’ve cut nearly
4,000 tonnes of packaging from our
products. For example, by replacing
the punnet lids with a sealed film across
a variety of our strawberry lines we have
saved 138 tonnes.
• W
e have saved a further 100 tonnes by
reducing the thickness of the film on our
loose fruit and vegetable easypick bags.
• W
e have increased the levels of recycled
plastic in our packaging. For example, the
higher recycled content of our mince and
sausage trays has saved the carbon
reduction equivalent of over 290 tonnes
of packaging.
• T he redesign of our café sandwich trays
from foamed plastic to card has improved
recyclability and saved over 42 tonnes.
%
111,286 83
37,029 23
* Shaded area above is all material that is recycled.
7,608
Tonnes
In 2010, we signed up to the second phase
of the Courtauld Commitment, alongside
other retailers, collectively to reduce the
carbon impact of packaging in the food retail
sector, by 10% by the end of 2012. This
means we have committed to reducing our
packaging by weight, increasing the amount
of packaging that can be recycled and
increasing the recycled content.
0%
store waste direct to landfill by 2013.
21
Environment – continued
Helping customers to reduce and recycle
Here are just some
highlights of what we
achieved last year:
225 tonnes
of Christmas cards collected from our
Christmas card recycling scheme.
300 tonnes
of batteries recycled in our customer
collection scheme.
5,179 tonnes
of cooking oil was collected to be used
for biofuels.
Helping customers to recycle
Increasing the amount of packaging that
we recycle ourselves is important, but we
also have a responsibility to encourage our
customers to recycle the packaging they
take home with them when they shop with
us. The most efficient and effective way for
customers to recycle it is through council
operated kerbside recycling schemes.
However, we recognise that, at present, there
is not a unified system and that some of our
customers benefit from having the chance
to recycle when they come to our stores.
Helping customers reduce
food waste
We’ve highlighted how our business model
significantly reduces waste as food is
transported through the supply chain,
but a lot of food waste happens at our
customers’ homes. WRAP reports that
consumers spend £12 billion a year buying
and then throwing away good food.
8.3 million tonnes of household food and
drink waste is generated every year in the
UK. Most of this could be avoided.
Through the Courtauld Commitment,
we’re supporting WRAP’s collective target
to reduce household food and drinks waste
by 4% by the end of 2012. Overall, this
will help to avoid an estimated 1.2 million
tonnes of CO2e and save consumers
£800 million.
Our Great Taste, Less Waste campaign has
a number of elements that we use to help
customers to prevent waste and enjoy the
food they buy from us.
‘More meals for your money’ provides
customers with simple and nutritious
recipe ideas which include advice on how
to make the most of leftovers. These are
available through our customer magazine,
recipe cards in stores and a dedicated
section on our website. During 2010, we
expanded the campaign by launching an
interactive Facebook page, more focused
point-of-sale materials and a feature series
in the bi-monthly Morrisons magazine.
See w ww.morrisons.co.uk/
GreatTasteLessWaste
‘Best Kept’ labels have been successfully
introduced on fresh produce packaging
on the front of pack to show clearly how
best to keep them in the home so that they
taste better and last longer. Did you know,
for example, that tomatoes are best kept
at room temperature? 83% of us store
them in the fridge.
We added to this simple concept this
year by rolling out the labelling on more
produce and printing advice on our easy
pick bags used for loose items.
Research shows that 55% of customers
throw away food before they need to.
We’ve provided more advice on pack for
customers about when they can freeze
fresh produce and the potential impact of
freezing and defrosting on ‘best before’
and ‘use by’ dates.
To help, where possible, we aim to provide
customers with facilities to recycle paper,
aluminium, glass, clothing, carrier bags and
certain types of plastics. By the end of 2010,
we had increased the number of collection
banks to over 4,200 across 346 stores and
274 council districts.
In 2010, we designed and rolled out
Morrisons textile banks to support our charity
of the year and the Salvation Army from sales
of old clothing. By the end of 2010 we placed
over 100 banks in our store car parks.
Morrisons CR Review 2010/11
22
Environment – continued
Reducing carbon emissions
• P
eterborough Stanground concept store
(due for completion this year) will be our
latest ‘eco-store’ and will trial technologies
including an air-source pump for heating,
Emissions by type (%)
1
6 7
5
4
3
2
1. Electricity 2. Gas 3. Haulage 4. Waste 5. Employees
work travel 6. Business miles 7. Refrigeration 30%
target to reduce operational carbon
emissions by 2020.
Wm Morrison Supermarkets PLC
56%
9%
10%
3%
3%
1%
18%
Other projects
From stores to manufacturing, logistics and
our people, we’re always looking at ways to
reduce emissions.
• N
ew lighting at manufacturing and
logistics sites (with a survey to look at
more) will save around 11,200t CO2e by
introducing energy-efficient lighting.
• M
ajor employee awareness campaign
We’re delivering our third major carbon
awareness programme in 2011 to get
colleagues on board to contribute to our
reduction target.
The graph below shows the steady
progress that we are making,
even as we grow our business.
Total carbon footprint
(t CO2e/yr)
2005
2006
2007
2008
2009
1,417,376
•V
entilation control – by balancing the
amount of air being brought into stores
and the amount of CO2e produced by its
occupants, it is estimated we will save
12,200t CO2e on electricity alone, with
additional savings made on the gas used
to heat the incoming air.
• L
ED lighting on chilled display cabinets
Installing low-power display lighting into
cabinets will give us savings of 11,400t CO2e.
1,418,697
• V
oltage optimisation – reducing incoming
voltage to a lower value can save up to
7% of total store energy demand. We’re
trialling this in 50 sites in 2011, aiming
to save around 6,300t CO2e, with a view
to rolling this out across our entire estate.
a fully natural-refrigerant refrigeration
system, solar panels and full-LED lighting.
1,498,255
Our stores are one important area where
we are targeting savings. Our work on
refrigeration is central to this (see page 23)
but we also have other exciting plans for
our stores this year.
1,457,098
Store carbon reduction projects
1,549,089
“
Tom Delay
Chief Executive, Carbon Trust
Our ambitious carbon reduction plan will see us reduce our total
operational footprint by 30% by 2020 (from a 2005 baseline).
We aim to achieve this despite the new stores, manufacturing
and distribution centres that we continue to build. This means
that, as we grow with each successive year, we have to work even
harder to keep on track.
1,603,273
“ We are pleased to see
Morrisons working to
achieve its bold targets for
the reduction of its carbon
footprint. The company
has shown particular
commitment and leadership
in addressing the problem
of greenhouse gas
emissions from refrigerant
leakage – a key issue for the
food retail sector.
2010
Emissions figures have been updated to be aligned
with the Greenhouse Gas Protocol, developed by
the World Resources Institute and World Business
Council for Sustainable Development. They have
been updated with the latest electricity and waste
conversion factors issued by DEFRA. SKM Enviros
(Environmental Consulting)
23
Environment – continued
Refrigeration
Cooling Industry Awards
• Large End User of the Year
• Small End User of the Year (Rathbones)
• Environmental Collaboration of the
Year (Morrisons & WR Refrigeration for
setting up the National CO2 Refrigeration
Academy)
• Refrigeration Innovation of the Year
(Morrisons & Arctic Circle Portable
CO2 Plant).
“ Morrisons… has made rapid
progress in the past year on
its refrigeration programme,
introducing new carbon
dioxide plant, cracking
down on leakage, delivering
a hydrocarbon integral
specification and setting
out to reduce energy
consumption.
“
Judge’s comment,
Cooling Industry Awards 2010
Refrigeration is a big environmental issue for supermarkets.
It is a really important component in keeping our food fresh
and preventing waste, but the gases used in the refrigeration
equipment have very high greenhouse gas emission factors.
That means that a small amount of leakage is equivalent
to a large amount of carbon dioxide being released into
the atmosphere. We’ve made reducing the impact of our
refrigeration central to our carbon reduction strategy.
In the last three years we’ve invested over
£100 million in new and replacement systems.
The net effect is that, since our 2005 baseline,
we’ve reduced direct refrigeration emissions by
over 40%. We’re not finished yet.
Refrigerant types vary and have different
effects. We’ve focused on replacing the more
harmful gases with more environmentally
friendly ones. More modern systems use
carbon dioxide as the refrigerant because its
global warming potential is far less than that
of other gases. Over 70 stores were fitted with
CO2 based central plant units in 2010, giving
greater coverage than any other supermarket.
More are planned in 2011.
We set up a joint venture, the Natural
Refrigerant Technology Centre, based in
Hereford. The aim of the facility is to put
the best available natural refrigerant equipment
through detailed analysis to ensure it’s up to
the task.
This approach has led to some real
innovations. We’ve developed equipment
that is, in effect, a portable CO2 plant. It can
service a whole store by being ‘plugged in’
whilst we refurbish or refit existing equipment.
This won Refrigeration Innovation of the Year
in 2010.
We’ve also had to look beyond just the
equipment. A lack of suitably trained
engineers to service the machinery has been
an issue. We’ve helped to address this by
developing industry-leading training for all
our engineers to help them to maintain the
efficiency of our equipment and further
reduce emissions.
Our work featured prominently in a best
practice case study conducted and published
by the Carbon Trust in 2010. We also picked
up the Refrigeration & Air Conditioning
Cooling Industry ‘Large End User of the
Year’ Award.
Morrisons CR Review 2010/11
24
Environment – continued
Effective logistics
The Morrisons distribution fleet is vital to our supply chain and
gives us flexibility in how we move products from suppliers to
Regional Distribution Centres and from our food manufacturing
sites to our stores.
illustration to be
placed here
Over the last 12 months, we’ve gone even
further in supporting our target to reduce
company emissions by 30% by 2020. Despite
continued growth, we’ve reduced our
haulage emissions once again, through better
fuel efficiency in our modern fleet, driver
training and the effective management of
our road miles.
In 2010/2011, the increased use of double
deck trailers saved us 4.1 million kms. These
streamlined, supersize trailers enable us to
transport up to 80% more volume per trip.
The goal for this year, with an additional 44
double decks in the fleet, is to save a further
83,000 kms per week. This would equate to
an annual saving of 4.3 million kms.
90% of our current fleet utilises the latest
Euro 5 engine emissions technology. This is
an increase of 13.8% compared with January
2010 and we anticipate that 100% of the
fleet will be Euro 5 compliant by the end of
2011. Euro 5 engines help to limit nitrogen
oxides (NOx) emissions.
We have a new initiative on trial to further
reduce our fuel consumption. We are rolling
out across our network the use of mains
500,000km
saved through efficient transport planning.
Wm Morrison Supermarkets PLC
power for our refrigerated trailers,
rather than using diesel. Over the next
year, we expect this programme to save
up to 400,000 litres of diesel.
In logistics, we measure route planning
efficiency in terms of how many cases
per kilometre we are able to move. Over
the last two years we have increased the
number of cases per km by 12.7%.
Following our successful completion of
Sittingbourne in the South East we’re now
fully underway with the construction of our
new distribution centre in Bridgwater in the
South West. As well as delivering greater
transport efficiency to our network we are
also working to make Bridgwater one of the
greenest sites we have ever built. Some of
the environmentally friendly features include
extensive coverage of solar panels, rain water
recycling, LED lights that dim when no
movement is detected and recycling across
all areas of the site. When operational from
Autumn 2011, we anticipate that Bridgwater
will be one of the most energy efficient
distribution centres in Europe.
25
Environment – continued
Achieved
Target
Commitment
Update
Enabling customers to
reduce food waste
Further development of
‘Great Taste Less Waste’
campaign.
Research, development, packaging, storage and cooking advice.
• Extended communication via
in-store magazine, website and
social media.
Reduce the carbon
impact of our
packaging
Reduction in the carbon
impact of our packaging
by 10% by the end of
2012.
Packaging to be ‘best fit for purpose’, considering:
– weight saving
– type of material
– recycled content
– recyclability.
• Saved over 4,000 tonnes in 2010.
Diversion of waste to
landfill
Zero waste direct to
landfill from stores
by 2013.
Collection and processing back of store waste through a national
waste management framework.
• Achieved original target of 50%
reduction (by volume).
Diversion of supply chain waste for processing through
Anaerobic Digestion.
• On target to achieve zero waste
direct to landfill target.
Waste prevention
Minimising waste from our own supply chain.
Carbon management
Emissions reduction
30% absolute reduction
(CO2e) by 2020 (2005
baseline).
Contributing to a low carbon economy:
Refrigeration efficiency:
– convert to CO2 (natural refrigerant)
50 more stores planned in 2011.
– install Heat Reclaim technology
60 more stores planned in 2011.
– implement store refrigeration energy efficiency programme
100 more stores planned in 2011.
Energy efficiency:
– roll out Combined Heat & Power (CHP) to new stores, where
efficient to do so
40 stores completed. No new
planned expansion.
– further development of renewable energy sources and projects
Extensive photovoltaic coverage at
Bridgwater as part of a programme
to make it one of the most
environmentally friendly RDCs
in Europe.
– improve lighting in-store
Feasibility study of LED lighting to be
rolled out through stores following on
from pilot at Halifax store.
Resource efficiency:
– conversion of waste to energy through Anaerobic Digestion
– continue carbon awareness programme
Extended engineering feasibility
study underway.
Launch of ‘Summer of Savings’
campaign with EDF in May 2011.
Commentary on targets
Our responsible ‘Environmental’ targets are formed from a nonexhaustive set of commitments that we believe capture material issues
that relate to waste prevention and reduction and climate change. This
is in addition to the regulatory framework, best industry standards and
responsible commercial trading which would be expected of us as a
major UK retailer. In other words, as with our ‘Business’ and
‘Society’ targets it is all the work we do on top of what might be
expected. The efficiencies we gain provide clear benefits for
customers and our business today and in the future. Critically, our
wider carbon emissions programme is part of a recognised collective
response to the global issue of climate change.
Morrisons CR Review 2010/11
Contact us:
Corporate Responsibility
Corporate Services
Wm Morrison Supermarkets PLC
Hilmore House
Gain Lane
Bradford
BD3 7DL
Telephone: 0845 611 5000
Find out more about our approach
to CR, our policies, targets and to
view previous reports:
Visit www.morrisons.co.uk/today
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