A Shared Passion CORPORATE SOCIAL RESPONSIBILITY SUMMARY 2010
Read our full CSR report at www.johnlewispartnership.co.uk/ csrreports
ABOUT US The John Lewis Partnership is the UK’s largest and longest-lasting employee-owned business. Between them, our 70,000 permanent Partners share in the benefits and profits of a business with a turnover of £7.4 billion in 2009.
Our values and principles remain a powerful driver on our continuous journey to be a more sustainable business. Our business takes a long-term view, operating in the interests of not just those who work for us now, but those who will follow in the future.
CHARLIE MAYFIELD
Chairman, John Lewis Partnership
Our business comprises: 8 John Lewis department stores, 2 one John Lewis at home store, a John Lewis Home outlet and johnlewis.com 31 Waitrose supermarkets and 2 online shopping services available via waitrose.com ur direct services company O Greenbee offers insurance, phone and broadband, and travel ur 4,000-acre Leckford Estate O in Hampshire, including a farm, plant nursery and water gardens Our manufacturing business, Herbert Parkinson, in Lancashire, which manufactures own-brand furnishings, fabrics and curtains for John Lewis.
The Partnership was ahead of its time in recognising that commercial success depended on showing the highest level of good citizenship in its behaviour within the community. Our founder’s ideals, set out in our Constitution, are the inspiration behind our approach to corporate social responsibility (CSR) and shape the principles we apply.
What makes us different The Partnership is commercial and competitive, but our co-ownership business model gives us three significant advantages. It allows us to: take a long-term view. We can build lasting, mutually beneficial relationships with suppliers, customers and neighbours because we don’t have to deliver short-term returns for shareholders. the value of co-ownership. Partners have worthwhile maximise and fulfilling employment, which generates loyalty, pride, job satisfaction, knowledge and empowerment. We recognise their role as co-owners and advocates of the Partnership, and work hard to harness their shared passion for the way we do things. act in the interests of society. We aim to act with integrity and courtesy, behave as a good corporate citizen and contribute to the communities where we operate.
Our CSR communications We know we don’t have all the answers, but we remain committed to telling all those with an interest in our CSR performance how we are doing against the commitments we have set ourselves and the external standards we aspire to. We aim to be clear about our priorities and aspirations, open and balanced about our position and our beliefs, and honest and transparent about the challenges we face. This summary report complements our full CSR report, which covers our operational activities from autumn 2009 to summer 2010.
Read our full CSR report at www.johnlewispartnership.co.uk/ csrreports
2
OUR KEY ISSUES As a large, national business, we face a wide range of differing challenges in relation to our social, environmental and ethical impacts. In order to determine where we should focus our efforts, we assess and prioritise each issue against set criteria and utilise the views of both internal and external stakeholders. Our most material issues include: and retaining people of ability and integrity, employing who support our business principles of honesty, respect and encouragement
OUR HIGHLIGHTS • Waitrose named UK’s most compassionate supermarket 2009/10. • John Lewis achieved its target to sell 100% FSC-certified garden furniture. • Charitable and community contributions of £7.9 million. • The 10th anniversary of our Golden Jubilee Trust charity secondment scheme.
our Partners and customers as agents for change for engaging sustainable living
• Waitrose and John Lewis exceeding shop energy efficiency targets.
fairly with our suppliers and selling responsibly sourced, dealing quality products
• Achieved BREEAM ‘Very Good’ rating and Considerate Constructors Scheme ‘Beyond compliance’ performance at Waitrose Wellington.
a positive difference to the communities where we making do business and adapting to climate change responding the impact of our built operations minimising waste generated by our operations and increasing the reducing proportion of waste that can be used as a resource.
OUR CHALLENGES During the next decade, we are looking to double the size of our business but at the same time, we have also committed to delivering absolute reductions in our operational emissions. Therefore one real challenge is for us to decouple business growth from our emissions (page 7). As part of our growth ambitions, we are exploring a number of new routes to market for our products. For example, Waitrose is trialling partnerships with Welcome Break, Shell and Boots to reach more customers in the food-to-go sector. As part of our due diligence in establishing such partnerships, we work to ensure that we are satisfied that the
third party is committed to conducting its business in an economically, environmentally and socially responsible way. This is an area where we wish to strengthen our approach further, by developing the assessment of new business partnerships and investment opportunities in relation to CSR. During the year, we created a new division, Partnership Services, to provide simple and efficient shared services for Partners and to support business success. This is an example of the types of changes required internally to develop our business. In order to improve efficiency and effectiveness over the long term, posts may be declared redundant or terms of
• Reduced emissions from transport by 6.3% relative to £million sales since 2005/06. • Activity mobilised through our Partners in Sport programme has supported 5,000 Partners via branch funding bids in the last 12 months and, to date, 160 Partners have been involved in coach training.
employment changed. However, the Partnership’s point of difference in such circumstances is our commitment to make every effort to provide Partners with continued employment in the business. Our supply chain also presents particular challenges, such as the sourcing of Certified Sustainable Palm Oil and unravelling the complexities of our cotton supply chain (page 5), while the implementation of a new Partnership-wide strategy to enable us to better assess the value and impacts of our community activity (page 6) will also require considerable effort.
3
A shared passion through
OUR PEOPLE
We are committed to providing worthwhile and satisfying employment in a successful business.
OUR COMMITMENTS By working in partnership, we: take responsibility for our business success by delivering the right experience for our customers and generating profits for us all to share build relationships Powered by our Principles of honesty, respect and encouragement create real influence over our working lives by taking opportunities to develop ourselves, balance work and life priorities, and support others.
60,000 15%
PARTNER ENGAGEMENT As a democratic business, we share the details of our major decisions with Partners. Our democratic network of elected councils, committees and forums gives Partners a real say in our decision-making processes. We also conduct an annual Partner Survey, which in 2009 gathered the views of 90% of our workforce.
4
OUR PARTNER STRATEGY
Our Partner Strategy, which defines our three Partner Commitments (above), will enable us to make our Partners’ experience of the Partnership increasingly relevant, consistent, rewarding and effective. The latest Partner Survey, in May 2010, featured 10 new questions that will help us to gauge how we are measuring up to our new Commitments.
Partners participating in our 2009 Partner Survey
Share of salary given to all Partners as a Bonus in 2009/10
REWARD, BENEFITS AND SUPPORT
TALENT
The wide range of benefits we offer is designed to help Partners to balance their work and home lives, and stay committed to long-term careers with us. For example, the Partnership offers competitive pay and a share of our profits, in the form of an annual Bonus, invests significantly in the provision of subsidised group leisure activities and provides access to discounted offers. We also provide a number of support services, from financial assistance to medical services and legal advice to internal independent advisors.
We want our Partners to share their passion, confidence and knowledge, and believe that a skilled and motivated workforce will help to drive business success. We have worked to clarify and communicate internally the distinctive requirements of leadership in our co-owned business. Our desire over the next year is to fully embed this model and adopt a modified version for all Partners in the organisation. Read our full CSR report online at www.johnlewispartnership. co.uk/csrreports
100%
A shared passion for
OUR CUSTOMERS, PRODUCTS AND SUPPLIERS
All our fresh chicken, beef, pork, milk, eggs and cream are British
100%
FSC-certified garden furniture in John Lewis
We are committed to dealing fairly with our suppliers and selling responsibly sourced, quality products.
CUSTOMERS
Great customer service is something that we take pride in and that our customers value. Reflecting this, Waitrose and John Lewis topped a number of independent consumer polls.
OUR Key aims Sell quality products, supported by our ethical and environmental standards and policies. Ensure all own-brand suppliers are registered on Sedex and risk-assess our supplier base to prioritise independent audits. Pre-agree terms of payment, and pay promptly and fairly. For full details of Waitrose’s and John Lewis’ divisional commitments and targets for increasing the sustainability of our products, see our full CSR report online at www.johnlewispartnership.co.uk/csrreports
5
We are keen to explore opportunities to increase our engagement with customers on sustainability issues. In 2010, John Lewis intends to update its customer communication to demonstrate more clearly the care it takes in selecting products and the work undertaken within its supply chain and local communities. Waitrose similarly aims to review its current communications with an aim to develop a more integrated approach.
PRODUCTS
Both John Lewis and Waitrose support British suppliers whenever possible. Our sourcing policies adhere to certification and verification schemes. For example, we have agreed to use only Certified Sustainable Palm Oil in Waitrose own-brand products by the end of 2012 and, having met our target to use 100% Forest Stewardship Council (FSC) certified wood in garden furniture sold in John
Lewis, we have now committed to ensure that 50% of indoor furniture ranges will be FSCcertified by 2015. Waitrose holds a strong position in sustainable agriculture, while John Lewis holds a leading position in other areas, such as stocking the most energy-efficient electrical appliances and promoting best-in-class televisions via a Voluntary Retailer Initiative.
SUPPLIERS
We treat all those in our supply chain honestly and fairly. All our own-brand suppliers must commit to our Responsible Sourcing Code of Practice and both our selling divisions have Responsible Sourcing programmes that monitor standards on workers’ rights. As well as supporting schemes such as Fairtrade and Traidcraft, we contribute to sustainable development through our Waitrose and John Lewis Foundations, which aim to support and service communities where our products are sourced. Read our full CSR report online at www.johnlewispartnership. co.uk/csrreports
A shared passion for
OUR COMMUNITIES We are committed to making a positive difference to the communities where we do business.
OUR Key aims Develop a Partnership community vision and strategy, and better measure the outputs and impacts of our community investment. Contribute at least 1% of pre-tax profits to community initiatives. Provide support to overseas disasters through the British Red Cross. Increase the number of Golden Jubilee Trust secondments in line with business growth.
2.59%
Share of pre-tax profits donated to charitable and community initiatives
LOCAL COMMUNITIES
When considering the location for a new shop, we explore all potential aspects and impacts, from transport to architecture to public safety, with local authorities and developers. We also engage with community groups to ensure our shops suit their surroundings, offer long-term value and attract local people into rewarding, fulfilling jobs. The communities where we operate benefit from the many ways in which we support local charities and community groups.
OUR COMMUNITY STRATEGY
In 2009/10, our charitable and community contributions totalled £7.9 million, which is equivalent to 2.59% of our pre-tax profits. Although many and varied, our community programmes have evolved in an organic way so, since May 2010, we have been working on a Partnership-wide strategy. This work will enable us to more clearly define what community means to our Partners and our business, agree a framework for all our community activity, and find better ways to evaluate and report its value and impacts.
Photograph by Dave Francis, www.skydiveweston.com
PARTNER-LED ACTIVITIES
Our community programmes offer opportunities for our Partners to mobilise others behind good causes. • John Lewis’ 2010 Charity of the Year, Beating Bowel Cancer, benefitted from a charity fundraising week in April 2010, which featured everything from abseiling to fashion shows to leg-waxing. • Corporate Partners raised more than £31,000 when fundraising for their 2009 Charity of the Year, the Alzheimer’s Society. •W aitrose’s Community Matters scheme donated over £2.5 million in 2009/10 to more than 8,000 worthy causes.
PARTNER VOLUNTEERING
By volunteering, our Partners can use their skills to meet the needs of their communities and also get the chance to develop new skills. Through our flagship scheme, the Golden Jubilee Trust, Partners volunteered 21,399 hours to UK charities. In total, 441 Partners have given over 181,500 hours to more than 400 UK charities since it was established in April 2000, and to celebrate its 10-year anniversary, we are providing an additional £50,000 to the Trust to fund 10 additional secondments this year. Read our full CSR report online at www.johnlewispartnership. co.uk/csrreports
6
A shared passion for
OUR ENVIRONMENT We are committed to reducing our impact on the environment and promoting good environmental practice.
OUR Key aims Deliver an absolute reduction in our operational CO2e emissions. Reduce energy-related transport CO2e emissions from shop deliveries. Halve the impact of Waitrose’s refrigeration and cooling direct CO2e emissions by 2012. Achieve at least a ‘Very Good’ BREEAM rating on all new shops. Register all construction sites with the Considerate Constructors Scheme. Meet our waste and recycling targets. Continue to improve our energy efficiency, source 100% of our electricity from green sources and consider all forms of renewable energy for shops and head offices.
6.3% 52%
Reduction in relative transport CO2e emissions since 2005/06
Proportion of operational waste diverted from landfill in 2009/10
‘Very Good’
BREEAM rating achieved at Waitrose Wellington, as well as Considerate Constructors Scheme ‘Beyond compliance’ performance
100%
Partnership purchased electricity derived from certified ‘green’ sources
CARBON EMISSIONS
We have reduced our CO2e (CO2 equivalent) emissions, relative to the size of our business, by 30% since 2001/02 but in 2009/10, we committed to making an absolute reduction in our emissions, and started developing a carbon footprint reduction programme to deliver this objective. We have also been working to assess the embedded carbon in a range of products.
TRANSPORT AND DISTRIBUTION
Relative to turnover, we improved our fleet’s CO2e emissions by 2.4% since last year. We continue to seek opportunities to improve efficiencies and reduce our emissions. As part of a long-term policy, we are also exploring and
trialling low-carbon alternative fuels such as Pure Plant Oil and biomethane.
RESPONSIBLE DEVELOPMENT
In February 2010, we launched a new Responsible Development Framework. It builds on our previous Sustainable Construction Framework and includes targets and guidance for the development, refurbishment and extension of shops, offices and warehouses.
ENERGY USE
Through a Partnership-wide energy management programme that incorporates new technology, Energy Awareness Manuals and automatic meter readers, both Waitrose (22%) and John Lewis
(23%) exceeded targets to improve shop energy efficiency by 20%. This helped the Partnership to achieve the Carbon Trust Standard – an independent endorsement of our achievements in carbon reduction.
REFRIGERATION
In 2009/10, Waitrose’s average refrigeration and cooling direct emissions fell by 26% in relative terms. Waitrose also completed a five-year programme to phase out HCFC refrigerants, introduced a new refrigeration system that uses a water- and propane-based natural refrigerant and undertook an extensive leaks prevention programme.
WASTE, RECYCLING AND PACK AGING
We continue to increase the proportion of our operational waste that is diverted from landfill. This extends to waste generated during the construction, extension and refurbishment of shops, from paint cans to timber and metal to food waste. Both Waitrose and John Lewis are also committed to delivering reductions in product packaging. Read our full CSR report online at www.johnlewispartnership. co.uk/csrreports
7
WORKING AND ENGAGING WITH OTHERS The ability of the John Lewis Partnership to take a long-term view, along with its unique ownership structure, means that the business has the potential to push its current CSR programme further and faster to deliver a truly sustainable business. The ambition to decouple the growth of the business from its carbon emissions is the first, important step towards this end goal. The challenge is to match the ambition around carbon with other aspects of the current CSR programme. This will ensure that the Partnership delivers sustainability for all the people it touches, both now, and for the next 50 years to come. Dr. Sally Uren Deputy Chief Executive, Forum for the Future
As a responsible retailer, we respect the interests of our stakeholders and take their needs seriously. Through ongoing, open dialogue, we strive to build strong long-term relationships with them. In doing so, we aim to increase our responsiveness to their concerns, reduce our impacts and balance the Partnership’s competitiveness, profitability and sustainability. We have recently begun to review our stakeholder engagement activities to prioritise our existing relationships and to consider the need for developing new ones. Through this process, we have identified seven stakeholder groups on which our continued success is dependent (see diagram). We recognise the role these stakeholder groups can play in our decision making on the direction of our CSR strategy. We also continue to work with a range of organisations, forming strategic partnerships and alliances. These relationships help to support the delivery of our CSR commitments.
Further information about CSR at the John Lewis Partnership can be found at: www.johnlewispartnership.co.uk/ ourresponsibilities If you have any comments regarding this report, please contact: Gemma Lacey Head of Corporate Social Responsibility John Lewis Partnership Partnership House, Carlisle Place London SW1P 1BX Email: csr@johnlewis.co.uk Design and copywriting: Flag Date of publication: 08/10 Printed on revive Pure White Uncoated FSC certified as containing 100% post-consumer reclaimed material a recycled grade containing 100% post-consumer waste. Both mill and printer are accredited with ISO 14001 environmental management standard. The pulp used in this product is bleached using an Elemental ChlorineFree process.
For example, since 2007, Forum for the Future has helped us to benchmark our leadership position on products and services, supplier relations and community impacts; improve our governance arrangements and our environmental performance; assess our indirect transport impacts; and develop our Responsible Development Framework.
• we are a member of the Corporate Leaders Group on Climate Change • our Chairman Charlie Mayfield is a commissioner for the UK Commission on Employment and Skills • the Partnership has been closely involved with Business in the Community for many years, and is represented on several leadership teams and programmes. We recognise that we can’t tackle the challenges in this area in isolation but that by working in partnership with others, our shared passions will help to make the Partnership a more sustainable business.
PARTNERS • Education and awareness regarding sustainability.
MEDIA • Our progress on the CSR agenda. • Comparisons with competitors and peers.
• Employee satisfaction.
customers
• Long-term future of the company and its impact and sustainability.
• Customer satisfaction.
• Business change and job security.
• Quality and value.
• Business principles and democracy.
• Sustainable products and services.
LOCAL COMMUNITIES • Acceptability of development/building projects and support for their community needs.
SUPPLIERS
OUR Stakeholders’ KEY ISSUES
NGOS AND CAMPAIGN GROUPS
Read our full CSR report at www.johnlewispartnership.co.uk/ csrreports
Senior leaders across our business have also taken on leading advocacy roles to make progress in areas of importance to our business. For example:
• Increasing the sustainability of their products and their companies. • Long-term relationships. • Fair treatment and pricing.
GOVERNMENT AND REGULATORS
• Establishment of mutually beneficial relationships.
• Information sharing, particularly on our co-ownership model.
•E nvironmental protection, social and economic development.
•C ompliance and shaping future regulation.
•S ustainability of raw materials. •S upply chain labour standards.
•S kills, economic development and employment opportunities. • Minimising environmental impact. •L abour standards and worker exploitation.