Chairman Woolworths sustainability
committee & Independent non-executive
director and CEO respectively.
the Good business journey
In our Good business journey report last year, we noted that our focus for 2008 would be to embed the Good business journey as a way of working into the business and to measure our delivery against our 1 and 5 year goals and targets.
An extremely comprehensive measurement and tracking system has been developed and in January, the first measurement was taken, 6 months into the year, followed by a final measurement for the entire financial year in July.
These scores reflect our progress as an organisation towards the stated 5 year targets and 1 year goals, at both a corporate and key indicator level (ie. transformation, economic, governance, social and environmental). We are also able to track progress by business unit against each of the indicators for which they are responsible.
Both the detail at business unit and indicator level and the ability to provide a single score for the business every 6 months, are invaluable in ensuring that good progress is being made and that we will ultimately be able to deliver our stated 2012 targets.
At a corporate level, we are satisfied with the progress the business has made – our overall score for 2008 against our 1 year target is 77% (mid year: 49%), just 4 points short of what we had deemed would be ‘good’ performance. The score of 62% against our 5 year objectives (mid year: 36%) is pleasing, although we know that the achievement of the last 20% will be the most difficult and we need to continue to progress at this rate in the year ahead if we are to meet the 2012 targets.
Our ability to agree clearly defined targets and to measure performance against these targets is, we believe, critical to the delivery of the Good business journey, driving the entire business towards a single end goal. This momentum requires that the individual business units embed issues of sustainability deep into their ways of working and constant reviews of progress with the business unit heads entrench the Good business journey even further.
One of the requirements of a comprehensive measurement system is verification – ensuring consistency of data and reporting practices. The entire Good business journey index has been reviewed from an audit perspective, resulting in three clear categories of verification: (i) existing external verification in place; (ii) external verification to be implemented; and (iii) internal audit required.
A detailed roll-out plan is being developed to put external verification in place where it is deemed necessary and is not currently conducted.
Trial internal audits have been conducted across food packaging, our supply chain and the real estate Good business journey. The findings from these trial audits will be used to make the measurement system even more robust and improve the quality of the data. The assurance framework has now been signed off and an internal audit coverage plan has been completed for the Good business journey.
A risk profile for the Good business journey has also been completed and is detailed in this report. This profile will be updated and reported to the sustainability committee biannually.
Our customers have given us feedback that we don’t communicate our Good business journey achievements and we’ve been working hard at improving this. Examples of some of the signage and messaging that has gone up in our stores can be found on the opening pages of the different sections of this report.
We’re increasing the frequency and reach of this communication and also tracking our customers’ awareness of the Good business journey. We know that our customers play a vital role in helping us to make a difference to our planet and our world and we need to give them as much information and assistance as possible.
We’ve also committed to improving our staff knowledge of the Good business journey and we’ve trialled the introduction of “Good business journey champs” in stores in the Western Cape. In many instances, these champs are really making a difference, helping colleagues and customers understand their impacts and driving the Good business journey messages deeper into our stores and communities. The pilot is being evaluated and will be rolled out nationally in the coming year.
We are delighted to be able to include a report from Country Road, our Australian business, on their approach to corporate social responsibility. We are in the process of aligning the measurement criteria for their sustainability journey, which will be incorporated into the Woolworths Good business journey index in the coming year.
2009 focus
In addition to continued good progress against our 2012 objectives, we have identified 2 areas for special focus during the year: packaging and energy usage. We believe that Woolworths can make a significant contribution to wider change in these two areas. Having implemented corporate measurements for water use during the year, we will also grow our understanding of the broader impact of our activities on water resources.
Overall, we are confident that we are making good progress but also note the areas requiring attention, particularly some of our environmental and transformation indicators. This report highlights some of the key achievements during the year, as well as providing a recap on the journey thus far.
Finally, we have been delighted with the recognition the Good business journey has received. Being named international responsible retailer of the year against significant international competition was a highlight for the business but, equally, it presents an ongoing challenge to all of us to sustain these efforts.
In summary, accelerating transformation, driving social development, protecting the environment and addressing climate change, the pillars of our Good business journey, resonate with our deepest values and add far deeper dimensions to the goods and services we offer our customers.
Brian Frost
Chairman Woolworths sustainability committee
and independent non-executive director
Simon Susman
Chief executive officer