GOOD BUSINESS JOURNEY UPDATE: April 2013 Good Business journey: Retail sector What are the key issues for a diversified retailer operating in South Africa? • To highlight 6 key areas • Sustainable farming • Water • Energy • Waste • Social development • Transformation • To increase focus on the life cycle of our products • To deliver through product • To increase communication to customers, staff and other stakeholders Increase focus on the lifecycle of our products: Food Impacts on water, soil, biodiversity Waste Recycling Water- why is it important to Woolworths? • Increased cost of water and wastewater treatment • Cost of quality (food safety) • Cost of interrupted supply • Pressure is on us to start taking responsibility • Right thing to do Woolworths and water • Our commitment: 40% relative reduction by 2015 • Committed to: – Reducing water usage and managing waste water – Reducing water effluent in the supply chain Woolworths and water • Storage and use of recycled and grey water systems, retaining as much water on site as possible for re-use. • Rain water harvesting • Use of indigenous shrubs and ground covers, minimising irrigation needs. • Water pulse metres • Head office water treatment plant - 75 000 litres of municipal water a day saving Woolworths and water • Work with suppliers to reduce water used and improve waste water management during the growing, production and manufacture of our products • Entrench our strict code of conduct regarding dyes (including the removal of Azodyes), chemicals and water management in our supply chain. • Clothing audits and standards • Completed a water trial with 66 food suppliers - highlighted issues with runoff water, with GIZ to further analyse water usage in agriculture and develop methods for reduction. Woolworths and water • Water footprinting – understanding how much water is used in producing key products • Water balance programme with WWF • CDP water disclosure project Sustainable farming • Context: As a food retailer, Agriculture uses over 70% of water in SA and has massive impacts on SA’s unique biodiversity • Our commitment: Work with our suppliers and WWF to improve farming practices in South Africa to ensure food security and protect water and soil resources • Farming for the Future • Biodiversity - specific commitments on key issues Farming for the Future The latest audits of Woolworths 15 largest fruit and vegetable • growers, show: • an average 20% reduction in the use of synthetic fertilizers; • an average increase of 34% in compost use per kg produce produced; • a 3% increase in soil carbon; • water use was reduced by 720.9 million m3 over the past three years which represents a 16% drop in water usage • an 18% reduction in fossil fuel use; • sustainable pest management techniques, such as integrated pest management, has resulted in a substantial initial decrease – in the region of 50% – in the usage of pesticides and herbicides, as well as an increase in biodiversity. MILK LCA Life Cycle Assessment