More of what matters

Transcription

Corporate responsibility review 2012/13
Wm Morrison Supermarkets PLC
More of what matters
Overview
Brief introduction to Morrisons
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.
Morrisons history
1899
1958
1961
1967
1976
1977
1980
1988
1998
Our 2012/13 Year
Turnover
Profit before tax
Corporation
tax paid
Like-for-like sales
53 week vs 53 week basis
Stores
Colleagues
Customers
each week
£18.1bn
£879m
£243m
(2.1%)
498
129,000
11m
See our Facebook
Visit – facebook.com/Morrisons
See our Twitter
Visit – twitter.com/Morrisons
Cover image
Alison Cowan, fishmonger, Retford. Winner of our 2012 internal craft skills
competition ‘Mastercraft’. Morrisons has over 1,000 academy trained
fishmongers and more craft trained people than any other UK food retailer.
1999
2000
2001
2004
2004
2005
2005
Stall opens in Bradford
Market
First town centre shop
opens in Bradford
First supermarket
opens in Bradford
Morrisons becomes
a public company
Morrisons opens
produce depot,
Cutler Heights
Takeover of Whelan
Discount stores
Morrisons opens
Farmers Boy
Morrisons opens
distribution centre
at Wakefield
Morrisons opens
distribution centre,
Gadbrook Park
100th store opens
in centenary year
First store opens
in Wales
Morrisons joins
FTSE 100
First store opens
in Scotland
Safeway becomes part
of the Morrisons family
Morrisons acquires
Rathbone’s bakery
operation
Morrisons acquires
and expands abattoir
in Turriff
2006
2007
2008
2009
2011
2011
2011
2011
2012
2012
2012
2013
2013
Safeway conversion
programme complete
Morrisons moves to
a new Head Office
Smaller format store
is launched in Scotland
Morrisons opens Farm
at Dumfries House
First convenience
store launched
Morrisons acquires
FlowerWorld
Morrisons acquires
online retailer
Kiddicare
Morrisons opens
Bridgwater distribution
centre
Morrisons opens
Grimsby seafood
manufacturing site
Morrisons acquires
meat manufacturing
site, Winsford
Morrisons launches
online with Morrisons
Cellar
Morrisons joins forces
with online retailer
Lakeland
Morrisons acquires
Blockbuster and
HMV stores to
expand convenience
(post 2012/13 Year)
Where possible we source locally, buy direct
and manufacture at our own sites. We distribute
to stores through our own network. This gives
us close control over provenance, freshness
and reduces waste, which means we can offer
fantastic food at affordable prices.
Over the 2012/13 financial year, we opened
17 new stores, nine convenience stores, invested
in two new manufacturing sites and launched
online. We remain the UK’s fourth largest
supermarket by retail sales as well as the second
largest fresh food manufacturer. We pride ourselves
on the quality of the fresh food we prepare in store
and serve over 11 million customers each week.
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
What’s in our Review
Scope of the Review
Contents
Introduction to Morrisons
1
What’s in our Review
2 Chief Executive’s statement
3 Responsible retailing
4 Our business model
6 Highlights in 2012/13
Steven Butts
Corporate Responsibility
This is Morrisons seventh Corporate Responsibility Review.
It reports on the progress from our financial year (53 weeks
ended 3 February 2013) unless otherwise stated.
Our corporate responsibility programme ensures we operate
in a way that is right for our customers, colleagues and suppliers,
whilst making a positive contribution to society and taking good
care of the environment.
This document is divided into four sections: ‘friendly people’,
‘making great food’, ‘affordable’, ‘for everyone’. Each section details
our progress on key material issues for the business including
updates on commitments, KPIs and future plans. It doesn’t cover all
the work we do, but gives an overview of our key activity.
If you would like to comment on our corporate responsibility
programme, the Review itself or any of the issues we highlight
please drop us a line at [email protected]
This Review should be read in conjunction with our annual report
and financial statements 2012/13 which can also be found online.
See our Review
Visit – morrisons.co.uk/cr
See our Annual report and financial statements
Visit – morrisons.co.uk/corporate/ar2013
Friendly people
8 Introduction
10 Recruitment
10 Developing talent
14 Sharing our skills
14 Employer of choice
16 Retirement Saver
16 Equality and diversity policy
16 Ethics and conduct
17 Health and safety
Making great food
18 Introduction
18 The Morrisons farming programme
20 2012 British farm sourcing
23 Developing and promoting sustainable food supply
24 Environmental sustainability
25 Food supply sustainability and security
26 Buying the right ingredients
31 End-to-end product quality and supplier assurance
33 Healthy choices
Affordable
36 Introduction
36 M savers
39 Avoiding food waste
43 Packaging
43 Customer recycling
44 Carrier bags
45 Reducing operational carbon emissions
50 Logistics
For everyone
52 Introduction
52 More of what matters locally
55 Let’s Grow
59 Save the Children
Governance
62 About our corporate responsibility programme
63 Board of Directors, Management Board and Corporate
Compliance and Responsibility Committee
64 Stakeholder engagement
66 Independent Assurance Statement
68 Commitments and associated KPIs
1
Overview
Chief Executive’s statement
Friendly people making great
food affordable for everyone
Dalton Philips
Chief Executive
In one of the toughest trading years
in a generation, we made good
progress in driving our corporate
responsibility agenda. This Review
shares the highlights and reports
against our commitments, as we build
our business around more of what
matters: ‘friendly people making
great food affordable for everyone’.
Great shopkeeping starts with ‘friendly people’ delivering fantastic
customer service. The investments we’ve made for our colleagues
in training, skills development and support in the workplace
were recognised by a range of external awards, from The Grocer’s
Employer of the Year Award for the third year in a row, to our
National Award for Excellence for Talent & Skills from Business
in the Community.
As a food focused retailer, we pride ourselves on ‘making great
food’. The end of our financial year coincided with the discovery
of horsemeat contamination in the European food supply chain.
Whilst we received a lot of positive coverage for our clean bill of
health, it’s essential that we remain vigilant and that customers can
continue to trust the quality and provenance of the food they buy.
We’ve reinforced our commitment to ‘making’ even more of the
food we sell, maintaining direct relationships with our primary
suppliers, and supporting responsible sourcing. Over the past
year, we introduced new meat packing and seafood processing
facilities and started expanding our Colne abattoir and Wakefield
bakery sites.
Fresh British sourced food remains a priority for us, with our
annual farming conference providing the ideal forum to work
in partnership with our suppliers to ‘Keep Britain Farming’.
We’re also actively encouraging responsible fishing, both at
home and abroad, to ensure the integrity of our sourcing
practices is as high as the quality of the seafood we sell.
2
In our stores, we’re bringing our passion for ‘great food’ to life.
Across our estate, we’re highlighting our fresh credentials with
the roll out of our Fresh Formats concept. We’ve expanded and
enhanced our fresh range and opened up more of our counters to
showcase our craft skills, offering customers a different, engaging
shopping experience, with more Morrisons Academy trained skilled
craft specialists.
We’ve also improved our range across the rest of the store,
introducing NuMe which gives customers a greater choice of
healthier pre-prepared products, without compromising on taste
or price. We’ve gone out into communities to talk to customers
about our new healthy alternatives, providing information and
free health checks as an incentive to make the switch.
In this challenging economic climate, it’s even more important
to us that we offer customers great food that’s ‘affordable’.
Our unique business model, focused on buying, making and
moving a high proportion of the products we sell, is central to
reducing both our costs and waste. Despite business growth,
we’ve successfully lowered our carbon emissions for another
year and remain on track for our 2020 target.
High quality, affordable fresh food prepared with skill and care
is something that we want to be available ‘for everyone’. It’s more
than just selling food in our stores; it means sharing our skills
and passion with the wider community. Our established ‘Let’s
Grow’ programme continues to educate and stimulate young
people in growing and eating fresh food. We’re delighted that
it received a ‘Big Tick’ and was highly commended in the National
Business in the Community Awards. The educational benefit
it provides, as well as the interest it encourages in fresh food,
is very important to us.
Last year I wrote that we are proud of what makes us different.
This year we will be making that a central and more visible part
of our communication. With our customers and our stakeholders,
we will be sharing more of what matters.
Responsible retailing
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
Food with thought
Martyn Jones
Group Corporate Services Director
We have again had our Review
independently assured by Two
Tomorrows in accordance with
AA1000AS (2008). The Independent
Assurance Statement commenting
on the report and elements of our
responsible business programme is
set out in full on pages 66 and 67.
During the year we addressed issues such as how we structure and
communicate our commitments. We looked at key performance
measures, strengthening the governance of our programme
through our Management Board and Corporate Compliance and
Responsibility Committee and better integration with our wider
corporate communication.
We took a great deal from the experience of external verification
last year. This was positively received by stakeholders who
recognised that this further improved the quality and accuracy
of our reporting and gave us useful management feedback.
In particular, this year we’ve included new details on how we are
working on end-to-end supplier quality and assurance, fish sourcing
developments, improvements to our policy for products derived
from timber and a significant step on our palm oil ingredient
sourcing. We’ve also provided more information on technical
support for British farming suppliers and our second major
update on our support for the Public Health Responsibility Deal.
It’s helped us to revise and shape our corporate responsibility
programme and this year’s Review. We formalised the process
to determine the relative materiality of issues that we deal with.
This in turn helped with decisions on where to focus resource
and coverage.
Essentially our programme remains very much on track. For clarity,
we have summarised our commitments and specific key performance
indicators at the end of the Review in the same format as previous
years. In the body of the document we’ve provided the detail and
case studies to demonstrate progress, highlight challenges and
address requests for further information from key stakeholders.
Building on last year’s Management Board Member interviews
and site visits, Two Tomorrows, this year, interviewed various senior
colleagues over a three day period, including our Chairman. They
undertook site visits and further senior management interviews at
our Willow Green distribution centre, Grimsby fish processing plant
and our St Alban’s Fresh Format store. Finally, Two Tomorrows
requested evidence for claims made and key statistics used in
this Review.
Over 2.7m
customers visit our Fresh Format
stores each week.
3
Overview
Our business model –
doing more of what matters
What we do
Where we do it
Our business model is underpinned by
the manufacturing and sourcing of great
food, sold across our stores by our friendly
people – put simply we make, we buy,
we move and we sell.
We operate throughout the UK so
we’re closer to our suppliers and
customers – the people who matter.
Morrisons has grown from a market stall in Bradford to the
UK’s fourth largest supermarket group with c500 stores
including 12 Morrisons M local convenience stores.
We employ 129,000 people across our business, including
over 5,000 trained butchers, bakers and fishmongers.
We have over 600 lorries and 150,000 trolleys.
Each of our stores (including convenience) has its own Market
Street, complete with trained colleagues using their craft skills
to bring fresh products to our customers, prepared just the
way they like it. Every day in store we bake 128,000 loaves,
fillet 5,000 fish and make 11,500 sandwiches. We make
more fresh food in store than any other supermarket.
Key
Head office
Online head office
Distribution centres
Manufacturing
M local
Supermarkets
58
Scotland
90
We have always cared about the origin of our food. In the
1960s we began sourcing our meat from Woodhead Brothers,
a company which became part of the Morrisons family
in 1991. We are now the UK’s second largest fresh food
manufacturer and our vertical integration gives us both
transparency over our supply chain and the flexibility to
run industry leading promotions to support our profitability.
North
99
Our business model has evolved to reflect the changing
demands of today’s consumer, in particular ‘when, where
and how’ they shop. We continue to invest in the convenience
market. We have made progress with our multi-channel offer,
with Kiddicare and Morrisons Cellar, and the development
of our online food proposition.
Our head office, logistics and distribution teams support
our stores and we continuously invest in technology.
Our Evolve programme has helped us increase efficiency
by making sure we have the right systems in place to
deliver continuous improvement across our operations.
Midlands
85
70
84
South-East
South Central
South West
Who we are
We are ‘friendly people making great
food affordable for everyone’.
This Review provides details from
a responsible business perspective
about who we are and what we are
doing to deliver more of what matters.
4
We are proud to be a British Group and close to both our
customers and suppliers.
We are continuing to grow so that we can reach even more
customers. In 2013/14 we plan to open 20 stores and increase
our convenience store portfolio to 100. Our continued store
roll out means we’re creating local jobs across the UK.
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
How we do it differently
We provide great service to our customers by
offering the best value fresh food, prepared
in-store by our experts. We are unique
because of the transparency of our supply
chain and our focus on traditional crafts.
How we’re building on
Fresh
Value
Service
Fresh
more of what matters
Value
• fresh food – from field to fork,
catch to kitchen in hours
• made from scratch in store every day
• vertical integration – we own the supply
chain and we source locally
• we guarantee our fresh credentials
• honest prices – affordable for everyone
• transparent promotions
• great availability
We price our food honestly to offer the best value to
our customers. Our vertical integration allows us to drive
efficiencies and quickly pass savings on to customers.
e for our
valu
sh
g
a
n
si
Max
im
i
e
alu
V
s
lder
ho
re
Fre
sh
In Market Street our customers can see their food being
prepared. Even our Morrisons M local stores have
Market Street made products giving customers
the same great fresh food.
Service
Service
• craft skills in store – see and
taste the food on Market Street
• friendly people, offering the
best advice and service
• knowledgeable HOT service
(Hello, Offer, Thank)
We pride ourselves on our in-store craft skills.
We have over 5,000 trained butchers, bakers
and fishmongers preparing food and delivering
exactly what our customers want, tailored to
suit local markets.
5
Business highlights
Highlights in 2012/13
February 2012
Giving us greater control over the quality,
value and supply of products, we acquired
Winsford meat processing plant, part of
the Vion Group, supplying pre-packed
pork and lamb products. This allowed
us to increase our in house meat production
in an already outperforming category.
August 2012
Our award winning Let’s Grow programme
returned for its fifth year. We developed
it further by reaching out to the wider
community, giving local people the
opportunity to grow and harvest their
own crops.
6
March 2012
Farmers and agricultural suppliers from
across the country attended our Farming
Conference. Held at the Yorkshire
Showground, the Conference discussed
how we can work even better with our
farmers to deliver great fresh food at
affordable prices.
September 2012
We became the first UK supermarket
with its own seafood processing plant by
opening our Grimsby manufacturing site.
Part of our wider growth plan, Grimsby,
once fully operational, will aim to further
reduce the time from catch to kitchen.
April 2012
We announced a new pension scheme
for colleagues, providing a guaranteed
sum when colleagues choose to retire.
In addition, we started work with leading
independent financial expert and TV
personality Alvin Hall, to put in place a
three year programme of financial advice
and support for all our colleagues.
October 2012
In an effort to help UK HGV drivers follow
a healthier lifestyle, we piloted a series
of initiatives at truck stops throughout
the UK. This included providing individual
health checks, dietary advice and healthy
alternatives to traditional meals.
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
May 2012
Mastercraft, our colleague competition
to find the best craftspeople from across
our business, was back for its third year.
Building on last year’s competition,
Mastercraft 2012 saw the best butchers,
bakers, cheesemongers, fishmongers,
flower shop, produce, cake shop and
wine advisor colleagues compete for
the Mastercraft title.
November 2012
We hit our target to raise £4m by the end of
our 2012/13 financial year for our charity
partner, Save the Children. Funds raised
will help towards their Families and Schools
Together programme, making a real and
lasting difference to children in the UK.
June 2012
We launched our new healthier eating
range, NuMe, replacing Eat Smart.
Developed by our professional chefs and
nutritional experts the range spans over
300 items. Clear iconography on our
NuMe packs simplifies the nutritional
information of each product.
December 2012
Research reveals that more than one in
ten families start Christmas planning in
September in order to combat the financial
impact of the festive season. To help those
struggling we pulled together a Christmas
dinner shopping list to feed a family of
eight for just £20.
July 2012
The Grocer Gold Awards recognises
the ‘best of the best’ in grocery retail
for service, initiative and commitment.
We took home five awards, including
Employer of the Year for the third year
in a row.
January 2013
We announced plans to open even more
M local convenience stores throughout
2013. M locals focus on offering more
fresh food than any other convenience
stores. Ranges within each store have been
carefully tailored to suit the needs of its
neighbourhood location and typically stock
over 100 lines of fresh fruit and vegetables.
7
Friendly people
Friendly people
2012 Awards
Our people are at the forefront of
everything we do. Having the right
people is a key differentiator, allowing
us to deliver excellent customer service
and meet our strategic objectives. At
Morrisons, we aim to create long term
partnerships by giving colleagues the
time, qualifications and support needed
to grow and develop their skills.
The Grocer Gold
Awards 2012
Training Journal
Awards 2012
Grocer of the Year
Employer of the Year
Grocer 33 – Service
Grocer 33 – Availability
Hidden Hero of the Year
Gold Award
Special recognition for our
commitment to training
“Morrisons ticked all the criteria” and
cited our commitment to “offering
customers the best possible service”
by ensuring our colleagues feel
rewarded and motivated.
Judges comments
Highlights
Labour turnover
Employee stability
People progressing from
the shop floor to managerial
positions in 2012/13
Colleagues participating
in the annual colleague
Climate Survey
Colleague engagement
increased by
12 months to 31 January 2013.
12 months to 31 January 2013 measured as colleagues
with more than one year’s service.
3
3 February 2013, compared with 31 January 2012.
4
From Climate Survey March 2012 to year end Pulse Survey.
1
2
8
15.0%
87.0%
1,205
1
2
3
93.0%
6.2%
4
Food & Drink
Federation
Awards 2012
Developing Skills Award
“Morrisons provides a very innovative
and thorough approach to developing
skills throughout the chain – from
school to senior management.”
Judges comments
Winner of Best Coaching Programme
“The scale of what Morrisons set out to
do was immense and reached all levels
of the organisation, and customers,
with remarkable business results.”
Judges comments
Yorkshire & Humber
Regional Awards
for Training and
Apprenticeships 2012
Top 100
Apprenticeship Employer
Top 100 Apprenticeship Employer 2012
“Apprenticeships develop the workforce
of tomorrow, whilst giving people
the skills they need to succeed in
employment. To be named a Top 100
Apprenticeship Employer is a sign
of excellence and these companies
should feel incredibly proud of what
they’ve achieved.”
Judges comments
Business in
the Community
Awards 2012
Workplace Talent and
Skills National Award
Business in the Community Regional
and National Big Tick in the Workplace
Talent and Skills category
“Congratulations to Morrisons, this is
a wonderful result. BITC could not be
more delighted that all your commitment
and hard work in developing your
people, and delivering the Morrisons
Academy has been recognised.”
Stephen Howard
Chief Executive,
Business in the Community
National
Apprenticeship Awards
2012
Employer of the Year,
Regional winner
“Apprenticeships and skills development
bring so many benefits, allowing
employers to tap into new raw talent,
up-skill their staff and grow their
businesses.”
Sue Price
National Apprentiship Service
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
Morrisons people
9
Friendly people
Friendly people – continued
Developing talent
Talented people are our greatest asset and the way we train our
colleagues helps us deliver better customer service. We bring the
best out of our people by providing opportunities for continuous
development and improvement.
A career at Morrisons starts with the ‘Best First Day’. Developed
further over the last year, this is a comprehensive induction to the
Morrisons vision, culture and Values. Each colleague’s progression
after joining the business includes regular feedback, supplemented
by more formal performance reviews.
Our colleagues also receive training through the Morrisons Academy,
our company wide overarching development programme.
We have over 1,000 fishmongers in our stores.
Our Values
Can do
Getting things done
One team
Working well together
Bringing the best out of our people
We’re constantly learning and looking
to improve on where we are
The Morrisons Academy gives colleagues at all stages of their
career the opportunity to build skills, whatever their ambition
may be. This is built on strong partnerships with leading academic
training and development providers.
“Developing our people is a way
of life. It’s enabled Morrisons to
build the successful business it is
today and it’s what will ensure we
continue to grow in the future.”
Fiona Phillips
Morrisons Academy
Great selling and service
We love to sell and serve
Great shopkeeping
Setting the standard in all areas
of our business
Fresh thinking
Always looking for new and better
ways of doing things
Recruitment
The majority of our new colleagues come from the local community.
For stores, for example, this typically means around 75% come
from the local area and over half will be previously unemployed.
Stores provide flexible work opportunities for a wide range of
people from different backgrounds. We offer specialist positions
as well as entry level jobs, qualifications and prospects so that our
people can build a career.
Over the year, we continued to open more facilities, offering
new positions within the Company. By the financial year end
we had opened 17 new stores, nine new convenience stores
and two new manufacturing facilities.
To find out more about careers at Morrisons
Visit – morrisons.co.uk/corporate/jobs
10
232 butchery and bakery apprentices graduated in 2012.
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
Apprenticeship Minister
joins us at Billingsgate
The Minister for apprenticeships,
Matt Hancock, visited one of our
fishmonger training sessions as
part of National Apprenticeship
Week just after our financial year.
During a later Parliamentary
debate he said: “It has been a
great National Apprenticeship
Week so far. At 5.30 this morning I was learning from Morrisons
apprentices how to fillet fish, and what brilliant apprentices they
are. We need to increase quality throughout the apprenticeship
system so that all apprentices can be as good as the very best
at MBDA, Morrisons and Rolls-Royce...”
What did the Academy deliver in 2012?
Awards
The Academy has become known throughout the retail industry and
beyond as a leading authority in training and development. Last year,
we received a number of awards based on its progress and specific
activity during the year, including from Training Journal, Business
in the Community, National Apprenticeship Service (RAFTA’s) and
we were once again named a Top 100 Apprenticeship Employer.
Core training and up-skilling
To date over 110,000 colleagues have taken up the opportunity
to complete a Level 2 qualification with 50% of these colleagues not
previously having qualifications at this level.
We maintained our position as the largest apprenticeship provider
in the UK with 11,000 colleagues graduating this year with a Level 2
Intermediate Apprenticeship.
Colleagues at our new Fresh Format stores received specific training
focusing on excellence in preparation and customer service to
support the enhanced layout of the retail space, product range
and services. Dean Clough Cookery School now deliver our new
store food based team builds.
Morrisons offers its managers and supervisors the opportunity
to attend masterclasses with specialists. The one day masterclasses
are held by industry leading experts in a variety of locations which
are relevant to specific sectors. Examples include fish managers
attending training at the iconic home of fish, Billingsgate Market,
and butchery managers attending training at the Morrisons Farm
at Dumfries House. Masterclasses now include, meat, fish, deli,
produce and floristry.
Training and skills development is available across all parts of
our business. In manufacturing, we helped 5,500 colleagues get
closer to understanding what great food looks like through our
pinnacle food quality standard. We also now offer colleagues
in manufacturing, logistics and supply chain the opportunity
to complete Level 2 Intermediate and Level 3 Advanced
Apprenticeships in Business Improvement Techniques.
“ The last few years have seen a lot
of changes in the way we work,
but we’ve made sure we keep great
customer service at the forefront
of everything we do.”
Paul Finch
Store Manager, Cheadle Heath
The craft skills of our colleagues on Market Street are a genuine
point of difference to our main competitors. Last year 232 butchery
and bakery apprentices graduated from their programme. We are
planning to increase the number of craft skills apprenticeships to
around 300 in 2013.
We also launched a Level 3 Advanced Apprenticeship in Retail
Management with over 6,000 managers, supervisors and colleagues
aiming to achieve the qualification level during the coming year.
The Prime Minister endorses
Feeding Britain’s Future
23,500
Colleagues completed a Level
2 Diploma in Retail Skills/
Customer Service
750,000+
Training days delivered across
the year to our colleagues*
* 602,000 of these training days are the first three months
for new retail colleagues undertaking in-house training.
To launch the new IGD youth employment initiative, Feeding
Britain’s Future, we took our Meat Specialist Roy Craven
and Larkfield Meat Manager, Annie Sylvester, to showcase
their skills in Downing Street. The Prime Minister said:
“I was delighted to host an event in Downing Street today
which brought together employers and young people,
helping to inspire the next generation of Britain’s food
industry. 10,000 young people will now have the opportunity
to experience the industry first hand, encouraging them
to develop the skills needed to ensure that Britain remains
a global leader and producer”.
11
Friendly people
“ The Future Business Leaders
programme has allowed me to
take a different perspective entirely,
looking at all business matters rather
than just thinking about my own
area. I’ve learnt a huge amount
about others and myself.”
Nicola Hartley
Meat Manufacturing
Sharon Logie, Cake Shop Mastercraft Champion.
Mastercraft
We pride ourselves on our craft skills and in September we
held Morrisons second Mastercraft competition. This year,
the competition was expanded and butchers, bakers, fishmongers,
cheesemongers, wine advisers, produce specialists, cake
shop colleagues and florists were all invited to compete.
The competition saw a number of challenges including live product
knowledge tests, demonstration of craft skills, and for our wine
advisers blind taste tests. Following a number of qualifying rounds,
48 finalists were invited to a live finalé where they demonstrated
their skills in our busy head office. The winners of each category
were invited to take part in specially arranged European industry
visits to learn more about their crafts so that they could bring
what they had learnt back to their stores.
This is a great way of engaging with colleagues who are truly
passionate about their trades and provides a springboard from
which they can add to their knowledge and skill set, often
opening up career progression opportunities.
“ We showcase our knowledge in
stores every day and Mastercraft
really celebrates that.”
Lee Smith
Mastercraft Produce Winner 2012
Leadership development
Alongside our apprenticeship programmes, we inducted our
largest ever cohort of graduates. We currently have 74 graduates
on our tailored training programme and will recruit an additional
122 in 2013. They have a great opportunity to spend time within
different parts of the business and build up a great breadth of
experience from undertaking hands on roles through to supporting
Board Member projects.
Working in partnership with Bradford University we currently have
25 people on a sponsored degree programme, which is designed
to help people gain real life work experience whilst at the same
time growing their academic knowledge.
We have continued our accelerated development programme
for future business leaders from within. Our future leaders
programme supports individuals to identify their motivations,
career ambitions, strengths and development areas in order to
create a specific personal development plan. To date 20% of
the 125 initial participants have had positive career progression.
As part of future leaders, participants work in a group with a
third sector or charity partner. The charity provide teams with
an operational issue they would like help to resolve. The team
have one week working in the community with the charity
and make recommendations. The first pilot of this programme
was held in 2012 with excellent feedback from both learners
and community groups.
Morrisons gives Select
Committee evidence
We appeared before the Business, Innovation & Skills
Committee inquiry into apprenticeships – explaining the way
we run our apprenticeship scheme and how we up-skill
colleagues in local communities. We challenged the negative
view of modern apprenticeships and commented on our
training ability to provide a pathway and a career ladder
to colleagues. We also mentioned other training we provide
including MBAs and debt-free degrees.
12
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
The Morrisons Academy –
looking ahead in 2013
This year we are focusing on the Academy as one of our key points
of difference, further developing our suite of training opportunities
to support people to move from unemployed to employed and
then through their career once in the workplace. Training and
development will focus on key priorities for the business to extend
and support our points of difference and key brand messages.
We have identified three key priorities.
Our 2012 Mastercraft winners.
“ I’m very keen to progress and
contribute as much as I can to the
future success of Morrisons while
realising my personal ambitions.”
Jamie Hulley
Group Wide Graduate Programme
The Morrisons Way
The Morrisons Way was developed in 2012, to translate our Values
into action. We worked on creating behaviours that exemplify what
has made us successful today whilst weaving in others that will help
us to be fit for the future, focusing in on ‘how’ we do ‘what’ we do.
We are using the Morrisons Way to help define and measure
performance in our personal development review process,
to help us give useful feedback about how we get things done.
We ran workshops during the year to help colleagues explore
what the Morrisons Way means for them and how they can
better lead their teams.
Skills and qualifications development
We’re increasing the number of craft skills qualifications,
developing a full suite of qualifications across all divisions
from shop floor to top floor (including pre-employment
training) and extending our programme of craft masterclasses.
We’re going to broaden colleague’s product knowledge through a
new training initiative called ‘Word on the Street’. This programme
is designed to build on our Department Advisor packs and enhance
colleagues’ confidence through product knowledge, product
tastings and perfect partner recommendations. All of which
are designed to create the ‘complete’ shopping experience for
our customers.
Leadership and coaching
Through the recently established Centre of Coaching Excellence
we’re bringing the best of our people with advanced programmes,
and developing our leaders of the future.
Management talent development
It’s vital that we nurture talent and give colleagues who show
potential the chance to move to the next level. This includes
our management trainees and graduate programmes and we
will focus our attention on more tailored support that offers
the best opportunity for people to excel.
Honest
We tell it like it is
Edge
We show grit and determination
Ambition
We create and seize opportunities
Respectful
We care for each other; everyone counts
Trusting
We achieve more together
Service
We serve and delight our customers
23,500 colleagues trained in retail skill/customer service in 2012.
13
Friendly people
Sharing our skills
Employer of choice
We want our stores to be truly part of the communities they serve.
We are committed to growing our people to build a loyal and
committed workforce, which provides the basis of a strong
Morrisons culture and increased social mobility. We also want
communities to benefit from our growth plans by creating
opportunities.
We are passionate about providing a great place to work for our
colleagues, which in turn provides a better experience for our
customers. We are proud to have won the Grocer Gold ‘Employer
of Year Award’ for the third time in a row and the Retail Week
‘Employer of the Year’ for the second year.
Feeding Britain’s Future
Last year we provided over 700 unemployed young people (16-24)
with a three day work placement to support IGD’s Feeding Britain’s
Future week, including CV writing and interviewing skills and work
experience within Morrisons stores. This resulted in 19.3% of
trainees gaining permanent employment with us, well above the
Government’s current output of 3% through the Back to Work
Programme which can last up to six months. This year we intend
to increase this to 1,000 unemployed people, including placements
in our manufacturing and logistics sites.
Our Club
This year we’re helping to get people who have been disadvantaged
in society into work. With youth unemployment at around 1m, this
is life changing work and something we can be extremely proud of.
One of the ways we are doing this is through ‘Our Club’ – a pre
employment programme to support unemployed young people to
get into the workplace. We’re working with the Centre for Coaching
Excellence, other large employers and suppliers to help young
people start their career.
“What matters most to me is the
positive difference we make to
the communities we operate in.
We’re doing more to support
the unemployed with Our Club,
giving young people real skills
and real hope for the future.”
The current economic conditions are challenging for our colleagues
and this year we launched ‘Save your Dough’ (a money saving
initiative), featuring finance expert and TV personality Alvin Hall.
The scheme has been received positively, with over 45,000
colleagues saying it has helped them manage and improve
their finances.
We know the importance of communicating with our colleagues
so that they know what’s going on at Morrisons. Our teams receive
regular updates through our Fresh News magazine and colleague
communication boards.
The health and wellbeing of our colleagues is key to a happy
workforce. As well as increasing healthy food options at
our sites for our colleagues we have a comprehensive in-house
occupational health service. Through this we offered all staff
free flu vaccinations and delivered over 18,000 in the 2012/13
flu season.
We also offer bespoke services such as physiotherapy to
colleagues in manufacturing and logistics where more manual
labour is required.
Absence and sickness are important metrics which are closely
monitored. Our absence rate is around 3.7% and sickness rate
as low as 3.5%.
Nick Rowe
Morrisons Academy
Store community engagement
In 2013, we’re going to deliver more of what matters locally.
We’re creating a community champion in all of our main estate
stores and we will be adding an enhanced re-designed community
board to shout about all of the work colleagues and customers
do in their local community.
We expanded our Mastercraft competition in 2012.
14
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
We have won The Grocer’s Employer of the Year Award for the third year in a row.
We listen to what our people tell us and colleague suggestions
have played a key role shaping our strategic objectives and
engagement strategy.
Formal feedback is important. Our annual Climate Survey is
supported by quarterly Pulse Surveys. These ensure we regularly
measure employee engagement. This year, our response rate for
our Climate Survey was 93% and our year-on-year engagement
levels have increased by 6.2%.
We’ve listened to the feedback we’ve received through our surveys
and taken action to improve the way we work. In 2012 this
included adding extra hours back into our checkouts as a direct
result of colleague feedback. We’ve also supported our managers
with training to enable them to deliver better personal
development reviews.
Deputy Prime Minister supported
Morrisons work with 16–24 year olds
During the launch of the Deputy
Prime Minister’s £1bn youth
contract, Rt Hon Nick Clegg
MP welcomed Morrisons
spearheading an initiative to
get unskilled young people
back in to work. Morrisons
jointly formed the 16–24 Alliance
to help young people develop the confidence and experience
needed to gain a job and launch themselves into a career.
Nick Clegg said: “Morrisons and the 16-24 group of companies
are showing great leadership in coming forward and working
with the Government’s Youth Contract”.
We’ll do more in 2013 to unlock ideas originating from our teams
and enable colleagues to play a bigger role. We recognise that the
people closest to our customers can contribute more to improve
the way we work. Once again we will share the results from our
annual Climate Survey with everyone and support each local
team’s development of their action plan.
It’s about creating a great place to work, with higher support
and high challenge. We’re committed to continuing this work,
ensuring we deliver more of what matters to our people.
15
Friendly people
Retirement Saver
Equality and diversity policy
At the end of their careers, our colleagues celebrate their Best
Last Day. We then continue to support and keep in touch with
them through the M Retirement Plus scheme.
Equality and diversity at Morrisons is about respecting difference.
We will treat all colleagues, customers, job applicants, contractors,
suppliers and visitors fairly, equally and with respect and value
the diverse skills and talent that different individuals can bring
to our Company.
This year, against a backdrop of significant pension changes, we
introduced our ground breaking Retirement Saver pension scheme.
The improved scheme is designed to be more straight forward
and will provide a predictable pension pot when colleagues
choose to retire, a significant improvement on the existing defined
contribution plan.
We pride ourselves in being different. This is underpinned by our
desire to promote equality and diversity. We recruit, train and work
with people from all sections of society and value the different
skills, ideas and experiences they can bring to our business.
The scheme is open to all permanent employees and we will
manage and underwrite the investment to produce a guaranteed
fund upon retirement, delivering a predictable pension pot for
employees irrespective of fund performance.
At Morrisons, we will not tolerate any form of discrimination,
victimisation, bullying or harassment on account of an individual’s
difference. In addition to our business values, legislation also exists
to legally protect the rights of individuals on the grounds of sex
(including pregnancy), sexual orientation, religion or belief, marital
status (including civil partnership status), age, race (including
ethnic or national origin, colour or nationality) or disability.
In addition, a colleague will not be treated less favourably on
account of working part time, being on a fixed term contract
or being a trade union member.
Providing a trustworthy predictable pension is our way of showing
commitment to colleagues throughout their career and into
retirement. We believe this approach sets us apart and will
encourage colleagues to stay with us for the long term.
Ongoing training and development of managers and colleagues
linked to our Values, as well as actively putting this policy and
procedure into practice, supports a culture which is equal as
well as diverse.
The cash balance scheme, which is relatively unusual in the UK,
shares the risk of being in the pension scheme between Morrisons
and its employees. We will guarantee the pension pot payable at
retirement when members typically purchase an annuity.
Pensions Minister visits Manchester
The Pensions Minister, Steve Webb, visited our store in
Openshaw to talk to colleagues about the Retirement
Saver launch. The Minister commented that
our Retirement Saver scheme is an example of best practice
amongst the industry.
Women in Business initiative
Morrisons was one of the first major businesses to respond
to the Lord Davies review into women on boards. We continue
to support the progression of women into senior roles in
our business.
In 2011 we committed to increasing the female representation
on the Company’s Senior Management Group from 13% to 30%
by 2014.
We made progress on this commitment in 2012 and now have
22% representation at this level (an increase of 2% on last year)
with women represented at senior management level across
all divisions.
This year we have increased our intake onto the Pearls programme
from 80 to 106, providing talented women with external
networking and development opportunities.
16
Ethics and conduct
Whistleblowing and standards
We are committed to conducting our operations to the highest
standards. To help us achieve this, we encourage all colleagues
to be aware of their working environment and the actions of
other employees and third parties around them.
‘Tell Us’ allows colleagues to raise any concerns they have about
practices that may affect the business and our reputation such
as fraud, damage to property, bribery, breaches of health and
safety law, breaches of food safety law, unethical behaviour,
or environmental damage.
‘Tell Us’ operates through an independent third party, is completely
confidential and can be anonymous to encourage participation.
Bribery and corruption
We run our Company honestly and will not tolerate bribery or
corruption from any of our colleagues in any of our dealings or
relationships. We have systems in place to prevent bribery and
corruption and meet the law in the UK (specifically the Bribery
Act 2010) and everywhere we operate.
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
“Since 1999 we have achieved a
downward trend in colleague
accidents throughout our Group.
The aim for us is to ensure this
continues despite our expansion.
Over the year, we have improved
our management systems, reporting
methods and in house training
so we can continue to meet the
highest standards.”
Phillip Taylor
Health and Safety
Rate of colleague accidents (per 100,000 colleagues*)
Health and safety
We are committed to achieving the highest standards of health and
safety at work across the Company through a process of continuous
improvement in both practice and performance. Since 1999 we have
established a downward trend in accident rates despite a rapidly
growing business in terms of both size and complexity. However,
we recognise that the only way to continue with this is through
colleague engagement.
We benchmark our performance against competitor organisations
and against those companies in wider industry who are recognised
as having world class safety management systems. We actively
participate in benchmarking forums and are represented on industry
and professional bodies.
During 2012 we achieved a reduction year-on-year of 15.8%
in the rate of total colleague accidents.
Rate of colleague accidents
40,000
35,000
Last year we reported that we were building a top down and bottom
up approach to the management of safety in our manufacturing
division. As a key initiative we introduced near miss reporting into
manufacturing in early 2012. As a result, we have seen the numbers
of reports made rise from 60 in that month to 1,003 a year later
(January 2013) achieving an average of 544 per month with a formal
close out rate of 82%.
30,000
25,000
20,000
15,000
10,000
5,000
0
01
02
03
04
05
06
07
08
09
10
11
12
* Reportable and non-reportable accidents
(including agency workers and contractors)
Establishment of near miss reporting month-on-month
in the manufacturing division during 2012
1,200
1,003
Our target remains to achieve an accident rate reduction of 20%
in total colleague accidents and 30% in reportable accidents
(under RIDDOR) over the three year period 2011 to 2013.
In 2012 we moved our Group health and safety management system
in line with the international standard OHSAS 18001, we believe this
will lead to improvement in both practice and performance.
As part of our process of equipping our managers with the tools
they need to effectively manage health and safety, we provided
training to over 3,500 managers and supervisors in our retail division.
925
1,000
Health and safety commitments in 2013
We will continue to work towards our accident rate target,
utilising the OHSAS 18001 management system to support
our reduction framework.
824
800
728
585
600
485
574
400
528
We will improve our information gathering and trend analysis
to more effectively use and target our resources.
452
256
200
60
108
0
F
M
A
M
J
J
A
S
O
N
D
J
Colleagues working wholly or mainly in open food preparation areas
within our stores will be provided with new slip resistant footwear.
15.8%
Year-on-year reduction
in the rate of total
colleague accidents
3,500
Managers and supervisors
trained in retail health
and safety
Near miss reporting has been introduced into manufacturing in 2012.
17
Making great food
Making great food
Within the context of our responsible
business programme ‘making great food’
means working with our suppliers on
improving social and environmental
performance.
It requires innovation, quality
management and careful control
throughout our manufacturing business.
In store and in the home we help
customers by providing a wide
variety of choice, specialist advice
and practical guidance.
The Morrisons farming programme
Provenance
Morrisons takes pride in the provenance and production of our
food. Operating as a leading food manufacturer as well as a major
British retailer means that we source the vast majority of our inputs
for Morrisons branded products from British farmers.
British sourcing is important for a number of reasons. It adds to
the national economy, bolsters agricultural industries and supports
rural communities. It also means that we are closer to source
because we have shorter supply chains.
We know that our customers have confidence in British food and
so we are committed to ensuring that British farming is our major
marketplace, remains buoyant and continues to develop.
We continue to lead the market through our major commitment
to fresh British meat by sourcing all Morrisons brand labelled
unprocessed beef, lamb, pork and chicken from British farmers.
See our farming website
Visit – morrisons.co.uk/farming
Fourth year of Morrisons expert led farming
programme
Comprehensive support for the Government’s
Public Health Responsibility Deal
Successful launch of healthy eating range, NuMe
Industry leading results for our ‘Challenge 25’
age restricted sales policy
We buy directly from British farmers.
18
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
The right ingredients
19
Making great food
Making great food – continued
2012 British farm sourcing
Where we differ from competitors is most evident when it comes
to sourcing and processing our own fresh meat. To give an idea
of scale here are some facts and figures for the year.
Lamb
As with beef we process our own fresh lamb direct from suppliers.
During the year, we purchased over 718,000 animals from British
farms for sale as fresh Morrisons branded meat.
Beef
We process fresh beef from our three abattoirs located across
the country. During the year, we made over 153,000 livestock
purchases for supply into store.
Pork
We continue to be one of the biggest supporters of British pork
with over 1.2m pigs purchased direct from suppliers in 2012.
English Beef & Lamb Executive (EBLEX) suggests that the UK
is only just over 50% self sufficient in pork and yet we buy all
of our fresh Morrisons branded pork from British farmers.
In 2012 we launched our traditional beef range to sell as a
premium range in store. British breeds of cattle such as the
Shorthorn, Angus and Hereford are popular breeds for producing
high quality beef and are well suited for the British climate.
An independent report ‘Bringing Home the Bacon’ commissioned
by the Centre for Research on Socio-Cultural Change (CRESC)
and published in June 2012 highlighted the benefits our supply
chain ethos provides to the industry.
Farm to store
Our senior livestock manager, Michael Winchester, at Fosses Farm, which supplies us with
beef cattle. We are able to buy animals directly and process the meat at one of our abattoirs
such as at Colne (pictured). Large cuts of meat, called primals, are transported through our
own network to our Market Street butchers ready for preparation for customers.
20
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
“Our challenge working with
our farming suppliers is to keep
British food as first choice for our
customers where possible. As the
food market becomes even more
globalised the challenge is becoming
greater. Our farming programme
is part of our commitment to a
competitive, profitable and
sustainable farming industry.”
David Evans
Agriculture
Morrisons pig supplier, Hallikeld Farm.
“ The Morrisons model aligns the
interests of firm, supply chain and
society. Morrisons runs its vertically
integrated processing plants at full
capacity and proves the benefits of
plant loading with demand stabilised.
The firm increases margins, reduces
transaction costs and controls quality.
Society gains through reduced import
dependence, stable employment and
the capacity to address animal
welfare and climate change.”
Whilst some stakeholders have been critical of our change we
believe it properly responds to our customers’ demands for a
competitively priced, quality range of products. Even so, to put
this into perspective, over 95% (by weight) of all the fresh meat
we purchase (when we take into account these brands) will remain
British sourced. That remains a level of commitment that is unique
in the marketplace compared to our competitors.
The rationale for creating Hemsley’s and Market Deals in branding
terms was to clearly differentiate these products from Morrisons own
brand fresh meat products where our customers have an expectation
and understanding that they will be supplied by British farmers.
Chicken
We have successfully embedded the higher welfare regime we
introduced in 2011 for all UK sourced housed chickens. The system
that applies across our standard fresh range requires a minimum
higher welfare regime that includes natural light, bales, pecking
objects and perches. Free range and organic chickens have
additional welfare and environmental requirements.
CRESC Report
‘Bringing Home the Bacon’
During the year, the new EU welfare directive (that affects 15% of
pork meat we import for hams and bacon) was fully applied across
our supply base.
As well as selling offal in our stores we are now beginning exports
of pig offal to the Far East. We are offering wider customer choice,
utilising more of the carcass and also reducing waste.
Hemsley’s and Market Deals
During the year we introduced two exclusive brands to our stores
for meat products; called ‘Hemsley’s’ and ‘Market Deals’. This
group of products offers customers who are on a tight budget a
lower cost alternative to our standard Morrisons branded products.
The major difference to our own brand products is that they may
be sourced from outside the UK and if so are labelled as such.
Suppliers are carefully chosen and must utilise farm assurance
schemes that we recognise, operating to clearly defined production
and welfare standards.
Our standard fresh chicken now has higher welfare requirements.
First Minister welcomes
Farmers Boy investment
We announced that a new grant of £635,000 secured from
the Welsh Government’s Economic Growth Fund helped
us create up to 90 jobs at our Farmers Boy Deeside facility.
The First Minister of Wales publicly welcomed the investment.
The grant formed part of a £6.4m development programme
at the facility, which has enabled us to start producing ready
to eat chicken meals as well as sliced meats. The plant supplies
our stores across the country.
21
Making great food
Communicating our points of difference to customers in store.
Eggs
All of our fresh eggs are supplied by British farms. We retained
the Nature’s Nest system for free range but will look at measures
during 2013 to retain the benefit of encouraging hens to roam
but with more flexibility for farmers on the type of cover required.
Currently the scheme requires specific types of tree cover.
During the year we agreed to support dairy farmers, through
our processors, with a premium of 6p per litre for milk supply
for a limited time following a period where key input costs such
as feed had increased significantly. We agreed that we would work
with the dairy industry to find a longer term solution and a more
transparent pricing mechanism.
In 2012, we responded to customer demand for a less expensive
option for fresh eggs. We now sell M savers eggs from hens housed
in enriched cages as well as our higher welfare Nature’s Nest free
range eggs.
Subsequently, through the Morrison Farming Programme,
we have already delivered a significant project that will benefit
dairy farmers supplying into our own brand cheese supply chain.
Working through First Milk we have created a pricing structure
that will help farmers to plan for the longer term and better
manage market price volatility.
Whilst some stakeholders responded negatively, the option to
choose free range or caged eggs in store essentially has remained
the same. Our view is that changing enriched caged eggs into our
own brand allows us to take greater control of the egg supply chain,
drive better welfare standards overall and help customers who are
on a tighter budget.
All eggs used as an ingredient in Morrisons own brand products
must be from hens housed in enriched cages as a minimum,
and from free range systems wherever possible.
Many of our products, such as fresh pasta, sandwiches and quiches,
are made using free range eggs, in addition to eggs served in
our customer cafés. Products are clearly labelled to inform
customer choice.
Dairy
We continue to source all our fresh milk from British farmers
and work closely with our milk processors to develop a more
sustainable industry.
22
Produce
Morrisons buys around £310m of vegetables and fruit from British
farmers annually. Much of this is bought direct and transported to
be washed and packed in our own produce plants. British grown
vegetables such as potatoes and carrots are purchased as whole
crops. This is good news for the farmer who only needs to find one
buyer and is not left with rejects.
The weather in 2012 caused major problems for everyone in
the produce supply chain with quality issues and lower yields.
We agreed to further adapt specifications within the available
grades and sold more ‘knobbly’ products through our M savers
range to ensure perfectly good vegetables were available to buy.
Payment terms to farmers remained the same pre-adaptation.
We also accepted smaller broccoli, leeks and swedes in our
standard vegetable range and courgettes that were lightly marked
by wind and rain.
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
British farming – developing and
promoting sustainable food supply
The Morrisons Farming Programme undertook a number of events
and projects designed to support a sustainable British agriculture
industry capable of supplying quality and affordable food for
future generations.
Morrisons Farming Conference
We held our first major farming conference in March 2012.
Farmers from across the country joined us at the Yorkshire
Showground to debate how best to ‘Keep Britain Farming’.
Broadcaster and food expert, Jay Rayner, was given unique access
to talk confidentially to our suppliers and present findings to the
conference. In the main suppliers’ views were positive and we were
able to use the exercise to inform the Farming Programme’s work
stream and try to address specific areas where there were issues.
Scotsheep at the Morrisons Farm at Dumfries House
HRH The Prince of Wales joined over 8,000 people at the
Scotsheep event at our Dumfries House Farm in June 2012.
This was an excellent opportunity for us to open the doors
to Dumfries House and share progress with fellow farmers.
We are now in the second year of activity as a Scottish Sheep
Strategy Focus Farm with the red meat industry body, Quality
Meat Scotland (QMS), and we took part in trials to test the
breeding performance of rams measured through the quality
of their progeny. All of the sheep are processed at our own plant
at Turriff in Scotland with the lamb sold in our stores. QMS helps
us share the results of this activity with other farmers in Scotland.
Visiting farmers were also able to see another applied research
project underway at the farm. Some of our cattle were wearing
‘smart collars’ that send information to the farm manager on
important health and welfare factors affecting the animal.
Morrisons Open Farm Sunday.
Open Farm Sunday
We worked closely with a major chicken supplier to open one
of their farms to the public. We saw this as an excellent opportunity
to educate consumers and undertake insight into people’s attitudes
to food production and in particular for comments about how
Morrisons standard chickens are raised under our higher welfare
system.
We used an independent consumer research company to carry
out interviews with visitors to the farm in Norfolk. The key findings
were positive shifts pre to post interview. Discussion included the
amount of natural light in chicken barns, views of overall welfare of
the chickens and an increase in numbers willing to pay more if they
knew chickens were well looked after.
Animal well-being progress
Animal welfare is one of the important ethical issues that concern
our customers. We work across all our supply chains and production
systems to ensure that we continuously understand and develop
animal well-being. As our customers have different shopping
requirements around welfare standards, we cover a range of clearly
labelled products.
• Chicken
– Environmental enrichment – The University of Bristol
delivered their second applied research study following
previous analysis of the benefits of enrichment in sheds
housing broiler chickens. The results complemented their
earlier work establishing that the use of enrichment objects
such as natural daylight, perches and pecking objects does
improve bird well-being.
– Wet litter management – Many chicken farmers continue
to cite the quality of litter as a key determining factor in
maintaining and improving bird health. To help them we
provided teaching tools including a new guide and workbook
that can be used for training staff who work in the industry.
Morrisons on the road at Scotsheep.
23
Making great food
• Eggs
– Hen health management – Working with the University of
Bristol we produced an illustrated guide giving information on
best practice techniques to further improve the health of hens
raised in free range systems. As a follow up to this we have
commissioned two related projects to be completed in 2013.
• Milk
– Dairy cow housing – The challenge of creating the best
environment for a productive and profitable dairy cow comes
up at most of our farmer group meetings. To help farmers
considering building new or upgrading existing housing we
collaborated with Arla farmers and DairyCo, the industry
body, to produce ‘Dairy Housing – a best practice guide’.
Managing the environment is an important part of work with
our farming suppliers as we recognise the challenge in producing
affordable quality food for future generations whilst protecting
the valuable resources in our environment.
Renewable energy
We published the second in a planned series of independent
guidebooks aimed at helping farmers make the right investment
in renewable energy options.
The guide was written with input from farmers at every stage
of the editorial process. By working together we’ve been able
to draw on the very latest thinking about dairy buildings on a
global stage whilst keeping firmly focused on the needs of the
British dairy farmer.
‘Energy in Farming’ looks at a range of technologies which can work
across the farming spectrum with sections for dairy, poultry, arable
and red meat producers. The new guide also includes farm case
studies of wind, solar, solar thermal, hydro, heat pump, biomass
boiler and anaerobic digestion technologies.
Over 5,000 copies of the guide have been distributed free
of charge to dairy farmers.
Each study looks at the grants available, practicality of installation,
carbon dioxide reductions and the all important cost savings to
the farm business.
– Neospora – Another project developed at the request
of our dairy farmers was to investigate the prevalence of
Neospora (a parasite driven disease) that affects both
dairy cows and cattle.
Farmers believed the disease was on the increase and wanted
more practical information to help them tackle it on their farms.
The result was a collaboration with experts at the Moredun
Research Institute and a landmark study revealing Neospora
is affecting more farms than previously thought. The cost
to the British dairy industry alone is around £45m a year.*
We have shared our findings with stakeholder organisations
including Defra and National Farmers Union to support calls
for investment to develop an effective vaccine that can help
eradicate the disease.
A copy of the guide has been distributed to over 10,000
British farmers.
DfID Minister visits Winsford
Department for International Development Minister and
Winsford MP, Stephen O’Brien, visited our Winsford meat
manufacturing site to take a tour and meet colleagues as
part of his constituency work. He has a manufacturing
background himself, and took a detailed interest in our
plans for the future.
* Milk from 500 dairy herds across GB was tested as part of the project suggesting
Neospora was present in more than half. A financial model developed by Animal
Health and Veterinary Laboratories Agency (AHVLA) calculated the cost of
Neospora in an average 121 cow herd was £3,000.
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British farming –
environmental sustainability
Carbon footprint
We are working with our suppliers to monitor the carbon footprint
of key fresh supply chains. In 2012 this covered dairy, poultry
and eggs. Our approach on greenhouse gas emissions is to track
progress against Government targets and use the on-farm data
to help benchmark and improve.
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Waste in farming
Many think of waste as the food or products that may be discarded
at store or in the home. More significant waste is actually generated
in the supply chain. Our programme helps us to establish where
and what we can do about it. This year we focussed on inefficient
use of feed in some of our supply chains.
In response we developed a project in our Beef Improvement
Group to measure feed efficiency in beef cattle. Feed efficiency
in cattle is genetically linked so it is possible to incorporate these
measurements as part of a breeding programme.
Sustainable soya use in animal production
Taking on board the views of farming stakeholders we moved
away from a requirement that our standard (non-organic) poultry
suppliers had to use non-GM soya for animal feed. The policy
applied only to poultry and was out of kilter with other animal
farming supply. We announced the change at our farming
conference. Other retailers have now adopted this approach.
The change was not made in isolation. We have started to more
actively monitor soya meal used for feed in our supply chains.
We are now working with our suppliers to look at alternate protein
sources. Part of our soya monitoring records the proportion of the
total protein in the diet that is derived from soybean meal and from
alternate sources. Feed protein derived from soya for our egg
producers is approximately 50%. For fresh chicken this figure
increases to around 59%.
Part of this workstream has been a project on our farm at Dumfries
House looking at becoming self sufficient in feed proteins.
This involves planting a high protein crop based on red clover.
The project commenced in 2012 and will be completed in 2014.
Food supply sustainability and security
Market risk management
Market volatility continues to pose a severe challenge to many
dairy businesses. It was estimated that the cost of dairy feed price
volatility in 2012 was in the order of £700m. Many farmers wanted
to know more about how they could deal with this volatility and
if there were tools that they could use to better manage the risk.
Our Dairy Group established that its best course of action was
to develop its own programme. Eight farmers agreed to trial our
first risk management workshop.
Produce supplier, Strawsons Farm.
Farm workers health and safety
Farming, according to the Health and Safety Executive (HSE), is the
UK’s most dangerous working environment.
We wanted to play our part in helping make farming a safer industry.
‘Farm Safety by Numbers’ identifies the eight most common ways
where people can come to harm on the farm. It’s coupled with a
series of stick on signs for farmers to place in their workplace
acting as reminders about staying safe.
Once again we worked in collaboration with other agencies and
organisations to develop the work including our fellow members
of the NFU Farm Safety Partnership and the HSE who reviewed
and approved the content.
For Morrisons Farm research
Visit – morrisons.co.uk/farming
English Food and Farming Partnership (EFFP) brought in a group
of experts and worked with the farmers to determine what would
work best for their dairy farm businesses.
The initial results revealed that there is potential to establish
guidance. This has led to a further project that will be completed
in 2013. As with all our applied research we will try and find
a practical toolset for use in the industry.
25
Making great food
Quay to store
Ocean Fish own and operate a number of vessels that supply Morrisons. Here, the ‘Asthore’
(pictured) is berthed at Penzance at the end of the sardine season and is soon to be registered
under the Seafish Responsible Fishing Scheme which we are backing. This year we opened a new
fish manufacturing facility in Grimsby which will process fish in the North-East ready for onward
travel direct into our stores.
Buying the right ingredients
We take great care over what we buy and from where. Our
preference is to keep it simple and buy from people we know and
trust, use our own facilities wherever possible and keep the supply
chain as short as we are able.
When it comes to more diverse global purchasing, where we
can we try to positively influence the marketplace to encourage
responsible sourcing of key ingredients, commodities and
finished products.
There are a number of issues that have attracted specific attention
in the food retail sector over recent years. This section of our
Review highlights wider sourcing issues that are of particular
interest to our stakeholders.
Seafood
In many of our stores the fresh seafood counter is one of the
first things our customers see. It’s a major part of our fresh food
experience in Market Street and we have over 1,000 Academy
trained fishmongers on hand across the business. Over the year
we have around 50 different types of fresh fish available to buy.
26
Behind this there are significant challenges to ensure that seafood
is brought to store from responsible supply chains. It means
that for the fish we sell we minimise the impact on the marine
environment by verifying sufficient stock from the fisheries we
buy from. We check the capture method to see what impact it
may have, ensure there is proper management of the fishery
and that this is followed. Finally, we want to ensure credible
certification to verify and validate that these challenges are met.
Over the last year we have redeveloped our seafood sourcing
policy to use a carefully constructed selection process, we now
use independent third party data and advice so that we ensure
we are taking an active position to minimise our impacts.
The policy restructure currently includes wild capture fish,
farmed fish and bait fish.
We’re committed to working with other key strategic partners to
act collaboratively on wider industry matters. We maintained our
active membership and participation of the Sustainable Seafood
Coalition and became a founding partner (and the first UK food
retailer) to join the Global Sustainable Seafood Initiative which has
been set up to deliver a three year benchmark of 75 global seafood
certification schemes. We’re also working with the Seafish Industry
Authority to improve health and safety conditions for fishermen
because of the unacceptable level of fatality and injury onboard
fishing vessels. We’ve taken the vice-chair of GlobalGAP’s
Aquaculture Technical Committee and we’re a member of the
Seafish Training Advisory Group.
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As demonstrable support for a number of our key initiatives
in 2012 we made a commitment that we would work with our
suppliers to ensure that all of our UK wild caught and landed
seafood would come from Seafish Responsible Fishing Scheme
(RFS) boats. The RFS was developed to raise standards in the
catching sector and was created in response to the needs of the
seafood supply chain to demonstrate their commitment to the
responsible sourcing of seafood. RFS covers fishing practices,
vessel criteria, crew competence and environmental
considerations.
We identified 525 boats that provide us with seafood and we
are aiming for them to be audited and certified over the coming
year. We think it will help the UK fleet both to demonstrate
their commitment to customer concerns over fishing practice
but will also improve conditions for fishermen in a challenging
environment.
With more dedicated expert resource we’ve also been able to
select development and improvement programmes to support,
ranging from research into scallop fishing in the English Channel,
fishery improvement programmes in Asia and to roll out RFS
auditing and certification in Sri Lanka.
In relation to Morrisons own brand canned tuna, we’ve continued
to work with suppliers to move towards the commitment we made
so that after the end of 2013 we would only buy tuna that is either
pole and line caught or sourced from vessels that have not caught
tuna using aggregation devices.
Another topical issue from the year included concerns over
stocking levels of mackerel from waters around the UK. We are
taking an active part in the discussion in the industry and at a
governmental level. We are keeping this under close review.
As a significant step, underlining our strategic view that we aim
to manage and own as much of our own supply chain as we can,
we established a new manufacturing facility in Grimsby to process
fresh fish. On site, we fillet and portion a wide variety of seafood
bought direct and then, through our own distribution network,
we are able to sell quality product to our customers at affordable
prices and on site, with more control over inputs we can to further
minimise waste.
Palm oil harvesting.
Palm oil
Stakeholders remain concerned over the use of palm oil and its
derivatives in many products. This stems from the way palm oil
plantations have been created, in some cases, replacing valuable
primary forests with the resultant loss of biodiversity and
threatening people’s livelihoods. In contrast, it is widely recognised
that palm oil is a valuable commodity for developing countries
with high yields and efficient growth when well managed.
Alongside many other companies we have supported a responsible
supply chain system backed by WWF and administered through the
Roundtable on Sustainable Palm Oil (RSPO). The RSPO network
continues to grow and we have maintained our membership and
encouraged our suppliers to also support this supply chain system.
We requested, as part of our specification for supplier products,
that any product containing palm oil or key derivatives must
come from one of the RSPO certified systems. The initial step for
companies is to buy palm oil certificates which provide valuable
funding to ensure the continued expansion of managed plantations.
We surveyed our suppliers three times during the year and have
confirmation that, as required, they will all have bought into the
RSPO certification scheme as a minimum before the end of 2013.
“We’ve built on our responsible
seafood sourcing policy this year
by working with key stakeholders
such as the Sustainable Fisheries
Partnership to add informed
external guidance into our
programme.”
Huw Thomas
Fisheries and Aquaculture
In 2011 our own manufacturing sites first bought RSPO trading
certificates corresponding to the remaining palm oil we use in our
own made products. We did so again in 2012 and will do the same
in 2013. Our challenge remains to move to fully segregated oil
and derivatives as they become more widely available.
We’ve also continued to re-label own brand products that contain
palm oil so that they clearly state on pack ‘palm oil’ instead of
a more generic ‘vegetable oil’ description. We do not have any
current plans to provide any messaging on pack that the products
contain certified palm oil.
27
Making great food
Soya
The growth of soya plantations fed by increasing global demand
has had significant impact on natural habitats, particularly in
South America. Like palm oil the issue is now one of encouraging
effective and responsible management.
Alongside many other businesses we have been supportive
of certification systems such as that managed by the Forest
Stewardship Council (FSC). In store, the higher volume lines
of relevant products such as own brand tissues and toilet
rolls, household wipes and tissues as well as greeting cards
are all FSC certified.
Whilst we are members of the Round Table on Responsible
Soy (RTRS) we have not made a time bound commitment that
ties suppliers to the RTRS system. We recognise that there
is stakeholder pressure to do so based on the argument that
it would stimulate the market and encourage growers to buy
into the system.
We undertook a review during 2012 in relevant categories to
see where there were opportunities to increase FSC or equivalent
coverage given the increased range of products that we believed
our commitment should apply to.
It is an issue we are keeping under review and welcome comments
and feedback on the matter, but there is some counter concern in
the marketplace, particularly from the farming community. This is
because most soya (around 80%) in the UK presents itself in animal
feed and the issue is that it could increase input costs for a sector
already under strain.
We announced last year that one way we could positively
contribute was to undertake action through our Farming
Programme to reduce reliance on soya in animal feed by finding
alternative proteins. We undertook our first year of work by
trialling the growth of alternative crops at our farm at Dumfries
House. We were not able to establish a clear and effective growth
pattern but will continue with the programme during 2013.
Timber
We have a long term commitment to selling own brand products
that use timber from certified supply chain systems as their
source. This ensures careful management of forests and prevents
unregulated deforestation, which is a significant factor in climate
change and the reduction of biodiversity.
Managed forestry for timber-based products.
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As a result we have tightened our policy with a more specific aim.
All products with an FSC certification must remain within that
scheme and by 2015 all wood and wood based products should be
FSC (or equivalent) certified. The effect will be to increase coverage
of responsibly sourced material for any relevant product.
This allows us to cycle through relevant buying years between
now and 2015 and take measured steps towards a more
encompassing policy.
Fairtrade
We support Fairtrade with a variety of products in store in a
wide range of key categories. Fairtrade is one of the most well
established ethical brands and remains popular with customers.
Fairtrade standards cover social and gender issues, environmental
issues as well as an economic framework regarding pricing for
suppliers in developing countries.
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Our programme continues to minimise the occurrence of pesticide
residues, is helping to phase out more hazardous variants,
promotes bio-pesticides and is encouraging best practice around
the world. In the EU, limits are set on how much residue can legally
remain in food. These limits are called Maximum Residue Levels
(MRLs) and in the UK are regulated by the Chemical Regulation
Directorate. Pesticide MRLs are not safety limits but are based
on good agricultural practice and are usually well below the
levels that would be of concern for people’s health.
We have a comprehensive residue testing programme aimed
at crops and countries where residues are more likely to be
found. Our facilities test for over 450 types of chemical on
340 selected samples. In 2012, only 1.5% of samples exceeded
the relevant MRL (below the retail average). 28% of samples
had no detectable residues.
Flowers
In 2011, we acquired Flower World, further extending our credentials
in fresh flowers and strengthening our vertical integration strategy.
Flower World is one of the leading independent flower importers
and distributors in the UK and prides itself on having strong
working relationships with both growers and farmers.
All of our UK and European flower growers are required to have
membership to one of the following certification schemes:
• MPS (Floriculture Environmental Programme);
• BOPP (The British Ornamental Plant Producers’ Certification
Scheme); and
• GlobalGAP.
Suppliers outside of the EU are regularly visited by Flower World
to ensure we maintain high standards throughout our global
supply chain.
GM
We do not use genetically modified ingredients (including additives
and processing aids) in any of our own brand products. We have
a comprehensive and continuous product sampling programme
in place to help monitor this.
Similar to many of our competitors we do not prevent suppliers
from using animal feed that may be derived from GM crops for use
in the supply chain for meat and dairy products (unless it’s organic
where there is a strict prohibition). GM animal feed must be
authorised for use by the European Food Safety Authority after
proper risk assessment.
Pesticides
Pesticides are a range of products and chemicals that are designed
to protect plants. When correctly used, pesticides protect crops
from insects, weeds and diseases, prevent contamination in storage
and safeguard human health by stopping crops being contaminated
by fungi.
We carefully manage the use of pesticides on fresh fruit and
vegetables through a risk assessment process. This process controls
risk for workers, the environment and consumers. This is especially
important for control of produce that comes from outside the EU.
Through our programme we keep current technical issues under
review. Of current interest to stakeholders is the issue of potential
harm to bee populations from pesticides. Bees are important from
both a biodiversity standpoint and for natural pollination. Having
taken action in 2011 by revising our controlled pesticide list to
exclude chemicals that may harm bees, in 2012 we monitored
the start of a process for a potential ban in Europe of certain
neonicotinoids. These are a specific range of insecticides that have
been linked by campaigners to colony collapse disorder of bee
populations. We will ensure through our programme that our
suppliers are compliant with any regulatory framework emanating
from Europe.
Fair Working Conditions
Since 2007, our commitment to promoting best employment
practices throughout our wider supply chain and associated
auditing programme has been undertaken by an independent
third party, Fair Working Conditions. Fair Working Conditions
audits examine evidence based general employment conditions
on an individual site-by-site basis set against our contractual
requirements of our suppliers to operate in accordance with
our ethical trading code.
The code encourages best practice as well as compliance in relation
to fundamental employment principles including appropriate
working hours, fair wages, freedom of association, occupational
health and safety, no discrimination, forced labour or child labour.
Fair Working Conditions working practice emphasises a focus
on employee engagement. With supporting documentation and
a developed understanding of genuine employee sentiment, a
balanced approach is taken in order to identify both negatives
and positives and, where appropriate, followed by correction
and reaffirmation respectively.
In 2012, Fair Working Conditions conducted over 300 on-site
supplier inspections on our behalf in more than 20 countries.
Where site visits are undertaken they are based on a risk assessment
structure so that we direct attention on areas of greater risk or
new areas of engagement. In addition to continued audits in China,
Turkey, Greece, Spain, Kenya, UK, Thailand and Vietnam, 2012
saw Fair Working Conditions achieve a broader geographic reach.
Regions not previously visited were added to the programme,
namely: Italy, Croatia, Romania, Czech Republic, Slovakia,
Switzerland, Belgium, Netherlands, Mexico, Belize, Egypt,
Morocco, Swaziland and Canada.
29
Making great food
• In Belize, the standards we found were generally good and
supplier’s cooperative. Some health and safety issues were
detected to be addressed via individual CAP’s.
• Sites in Egypt and Morocco were found to have defective
health and safety practices and, in many cases, Fair Working
Conditions found unreliable records of actual hours worked
and corresponding salary payment. Corrective action has
been stipulated where applicable.
Developments for ethical trade in 2013
During 2012, we also commissioned an independent assessment
of our working conditions programme. With comment and
interaction from stakeholders we reviewed other established
systems that we could utilise to gain greater coverage across
our supply base for our compliance and auditing programme.
Workers at a banana supplier (Fair Working Conditions audit).
We asked experienced practitioner, Alan Roberts, from Aresa
Consultants to spend some time looking at our programme
and make recommendations for improvement and development.
We will be implementing key recommendations in 2013.
Over the past six years, more audits have been conducted in China
than any other single country as our business has greater supply
engagement particularly for non food items.
Corrective action has been undertaken to address issues such
as excessive working hours and minimum wage irregularities
but equally encouraging is the discernible improvement in terms
of employee forthrightness and site management receptivity.
In all cases, Fair Working Conditions audits are followed by
individual Corrective Action Plans (CAP’s) per site. Conclusions
are determined after careful examination of completed CAP’s
and verified via a follow up audit. Where suppliers (or potential
suppliers) do not comply with the fundamental principles in the
code and are not willing or able to undertake effective and timely
corrective action they are excluded from trade.
We have encountered positives and challenges in all geographical
areas covered by Fair Working Conditions. Below are some
examples of the types of supplier issues, in summary, that
our programme identified during the year. In each case we
are taking corrective action to address the issues identified.
• In the UK, commendable collaboration from suppliers has
rendered a high rate of compliance, however, issues still exist
in relation to national minimum wage and agency worker
regulations, specifically the use of salary sacrifice schemes
and Swedish derogation clauses.
• In Mexico, Fair Working Conditions identified and addressed
a lack of control regarding working hours and payroll records
for casual employees engaged in parts of the seasonal
agricultural industry.
• In Thailand, where large numbers of migrant labour from
Cambodia, Laos and Myanmar are employed, employee
engagement exposed poor working conditions for this
category of worker. This means that greater caution must
be used when identifying potential suppliers.
Fair Working Conditions conduct audits across our supply chain.
30
Overview
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Colne is one of three abattoirs where we take supply direct from livestock farmers.
End-to-end product quality
and supplier assurance
Making great food to the level and scale on which we operate
requires the highest standards and continuous monitoring.
To ensure technical excellence we employ a highly qualified and
expert team who are responsible for setting rigorous specifications
for all product parameters, every aspect of product safety, the
composition and quality of our food (and non food) including
raw materials, approval of all sites for manufacture of Morrisons
branded food and then visiting sites regularly to verify compliance
with our standards.
As we are also food manufacturers ourselves we ensure that our
facilities operate to the best standards. We’ve used this expertise
to develop and publish our own Morrisons Manufacturing
Standard. Anyone who supplies us with Morrisons branded food
must comply with the standard and pass an independent audit.
During the year we completed the major exercise to audit the vast
majority of our Morrisons brand suppliers against the standard.
The value of our technical coverage, combined with our business
model was, we believe, one of the key factors that meant that
we were not implicated in the horsemeat contamination
found in meat based products during the year. With fresh
meat processing at the heart of our food manufacturing we
have significant expertise around all aspects of meat handling
and supply.
In addition, we have a thorough and detailed inspection and
surveillance programme for products destined for our stores.
This means that all products are approved before launch in our
state of the art facilities at our head office. No changes are
allowed without re-approval and re-inspection.
During 2012 over 5,500 food products were launched. Over
1,000 fresh produce lines were re-launched and over 2,000
non-food products.
It means that all products are inspected regularly (from a minimum
of two times per year to four times per year depending on risk).
This amounts to at least 30,000 product inspections per year.
We operate a full programme of surveillance testing to ensure
compliance with our specifications (compositional, nutritional
and microbiological testing).
Our stores also remain under close control to ensure food safety
for all products made and sold to customers. In 2012 we achieved
a 50% increase in stores receiving a top level Food Hygiene Rating.
We undertook 1,107 of our strict food safety assessments and
reduced the percentage requiring re-visits demonstrating our
commitment to getting it right first time.
We also undertook a detailed overarching review of our technical
function to build on our foundations. Our approach is to achieve
industry leading technical operations tailored to support our
unique integrated business model. In 2012 we made a number of
key appointments to increase our capability, support our growing
business function and appoint more specific expertise to support
and provide even greater coverage across our commercial, retail
and manufacturing teams.
Business, Innovation and Skills
A senior civil servant from the retail team at the Department
for Business, Innovation and Skills spent the day seeing first
hand our vertically integrated model. He said of his visit: “I was
enormously impressed by the logistical achievement in bringing
together so seamlessly so many diffuse activities to deliver
maximum value to the business and the customer.”
31
Making great food
“In Technical Services, our focus is
to be a step ahead of any issues that
might occur, and apply creative
problem solving and an integrated
risk assessment process with
strong internal reporting linked
to our overall governance.”
Andrew Clappen
Technical Services
Developments for Technical Services 2013
We’ve also identified key activity for the coming year for Technical
Services to further improve performance and support product
quality and customer experience.
We will develop and implement a Food Safety Management
System and introduce a quarterly food safety standards forum
to drive innovation and better ways of working.
Our manufacturing focus will be to complete the delivery of
front line training of ‘pinnacle’ ensuring full compliance with
our own rigorous manufacturing standard.
Our trading standards and compliance team will upgrade our
current Enterprise IT system to ‘M Create’ which has greater
functionality and better integration with other business systems.
We will also review and re-launch the auditing element of the
Morrisons Manufacturing Standard. Our quality team will focus
attention on fresh produce to improve the products in store and
improve shelf life.
Critically we are also aiming to complete the major transition of
our own brand food and non food items in store a programme
that we started two years ago and has touched over 11,000 of
our Morrisons own brand products. The aim has been to improve
quality and consistency across our entire range.
Our award winning produce at one of our Fresh Format stores, Cheadle Heath.
32
Overview
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Governance
Healthy choices
Government’s Public Health Responsibility Deal
Morrisons is a signatory to the Government’s Public Health
Responsibility Deal, which aims to tackle health inequalities
through food, alcohol, physical activity and health in the workplace.
Under the Deal, we’ve signed a series of collaborative pledges
and annually report our progress to the Department of Health.
Details on our progress with our Public Health Responsibility
Deal commitments are set out with our KPI’s and commitments
from page 68 onwards.
“Our support for the Responsibility
Deal is part of our ongoing
commitment to the health and
wellbeing of our customers and
colleagues. We are delivering on
pledges across the spectrum, from
calorie labelling to occupational
health, which together will make
a real difference.”
NuMe
In 2012, we launched our new healthier eating range, NuMe,
replacing Eat Smart. NuMe offers a wide range of healthier
products.
The range was developed by our in-house professional chefs,
nutritional experts and product development team. Innovative
labelling systems were developed using clear iconography to help
customers more easily identify healthier options.
The 2009/10 National Diet and Nutrition Survey revealed that only
one third of adults currently manage to achieve the recommended
‘5 a day’. In addition, as a nation, we eat too much food with added
sugar, saturated fat and salt, and smaller amounts of food with high
fibre content.
With this in mind, the NuMe team at Morrisons developed more
stringent nutritional guidelines when creating the range. Levels
of sugar, saturated fats and salt were capped to ensure NuMe
products offer customers who want to buy pre-prepared products
an option to help maintain a balanced diet.
David Scott
Corporate Services and Policy
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Making great food
All of our own brand pre-packed foods include front of pack
Guideline Daily Amount (GDA) labelling and allergy information
where appropriate. We are working with the Department of Health
to agree on a universal ‘traffic light’ system based on common
nutritional criteria.
Salt reduction
Salt is an important preservative and is used for flavour. However,
excessive consumption can lead to health problems, which is why
we work continuously to reduce levels of salt in our products, while
maintaining their quality and safety.
Salt still serves a critical food safety function. For example,
removing too much salt from a product such as ham may increase
the risk of listeria, one of the most virulent food-borne pathogens.
While 70% of people still consume more salt than the 6g daily limit
recommended by the Department of Health, official figures show
a significant reduction in the average intake since 2001 – from 9.5g
per day to 8.1g in 2011.
A NuMe truck stop taste comparison.
NuMe on the road
We considered which hard to reach audience might present
a challenge to convince about our NuMe range.
We commissioned research that revealed 29% of UK HGV drivers
are obese with 22% defined as morbidly obese. A limited choice
of healthier food available at service stations was seen as the main
reason for the impact on their health, closely followed by the belief
that healthier food isn’t tasty or convenient.
We piloted a series of initiatives at truck stops on major routes
in Suffolk, Warwickshire and Cumbria; this included a NuMe
truck serving fresh and healthy food options, demonstrations
on healthier alternatives to traditional meals, as well as individual
health check clinics. The response was positive and helped us
to tell a positive story about the wider benefits of carefully made
healthier food.
Nutritional information
Towards the end of 2011, we launched ‘Market Street Nutrition’
on our website, allowing customers to check the nutritional
information of items which are made or prepared in store.
This was extended throughout 2012 and the website now provides
calorie information per serving, as well as fat, saturated fat, sugar,
salt and fibre content per serving for nearly 1,100 Market Street
lines across all categories (excluding produce, meat and fish).
In response to customer demand, we also regularly update the
website to include seasonal products and new lines.
Nutrition and café teams worked with stores to continue to provide
calorie information to café customers in 2012. The printed café
menus display calorie content of various café products, as well
as shelf edge labels for cakes, sandwiches, cold drinks and salads.
34
We are committed to salt reduction targets as part of the Public
Health Responsibility Deal. The targets apply to all categories of
our own brand food and drink. In order to help our suppliers reduce
salt to meet these targets we have produced detailed information
for each food and drink category and specific requirements on
food safety testing. Any reduction in salt content is preceded by
a thorough assessment, to ensure product safety and quality are
not compromised.
Our product development teams work closely with our
manufacturing and supply base to find technically acceptable
solutions. Along with other retailers, Morrisons funded research
by Leatherhead Food Research into the technical solutions available
to facilitate further salt reduction.
Some products will not meet the targets by the reporting deadline
of April 2013, but targets will be maintained and we will continue
to seek technical solutions to the challenges.
“Our increasingly busy lifestyles
mean that we cannot always take
time out to prepare nutritious and
tasty food. This year we improved
our healthy product range, to make
it easier for customers to make
balanced choices in store, without
having to compromise on taste,
quality or affordability.”
Bryonie Hollaert
Nutrition
Overview
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Healthier lifestyles
We want to make it easier for our customers and colleagues to
follow a healthier lifestyle. We regularly communicate on how
to make healthier, informed choices and engage in a more active
lifestyle through our customer magazine, website, colleague
magazine and intranet and in our stores.
We launched a Healthy Living Guide and NuMe information
leaflet in our in-store pharmacies, offering advice and tips on
how to exercise safely, healthy eating, how to boost energy
levels and prevent illness.
For colleagues
‘You Choose’ menus were introduced into our staff canteens
in stores in October 2012. The ‘You Choose’ initiative provides
colleagues with healthier option recipes and added nutritional
information. We’re also continuing to refresh the recipes in our
canteens and provide at-a-glance calorie, salt and nutritional
content of meals.
We launched a new money saving website for colleagues, which
includes a dedicated health portal which promotes the health
benefits of regular physical activity including discounts on gym
memberships, and how to find a local sports club.
Through our partnership with Save the Children, we also actively
engage colleagues to take part in various challenge events such
as the London Marathon and the Great North Run.
See our website
Visit – morrisons.co.uk/Family-Life/Health-and-Pharmacy/Healthy-Living
See our website
Visit – morrisons.co.uk/Food-and-Drink/Healthy-eating
Market Street fresh ‘Pick of the Street’ deals.
Promoting fresh
In 2012, we continued to roll out our Fresh Format stores, firmly
placing fresh produce at the forefront of what we offer in store.
Throughout 2013, we’re aiming to convert up to 100 more stores
into Fresh Formats.
Launched at the beginning of 2013, we will also continue with
our ‘Pick of the Street’ Market Street deals on fresh produce,
making it easier and more affordable for our customers.
Alcohol sales
We make it clear to our customers that alcohol is a product
for adults. Our priority is to ensure that customers have the
information they need to drink responsibly and that sales are
only made to those over the age of 18.
We are supporting all the relevant alcohol pledges in the
Government’s Public Health Responsibility Deal to help foster
a culture of responsible drinking. This includes collective industry
action to reduce alcohol units, labelling with clear health and
responsibility messages, continued funding for the charity
Drinkaware, and support for local Community Alcohol Partnerships
to tackle the problems associated with alcohol misuse.
Morrisons announces support for
‘hybrid’ nutrition labelling scheme
We announced that we will move to a nutrition
labelling system which combines GDAs and traffic lights
if agreement can be reached by the UK food industry and
Government on the nutritional criteria involved. The Public
Health Minister, Anna Soubry MP, commented on our decision,
saying: “We welcome Morrisons move towards a single
nutrition labelling system and continue to work with industry
and partners towards a clear and consistent scheme.”
We believe the Government should focus on more targeted action
to tackle problem drinking; a minimum unit price for alcohol will
hit responsible drinkers in the pocket and impact on the poorest
at a time when alcohol consumption appears to be falling.
We have introduced a number of own brand lower alcohol products
over the past year including own brand low alcohol cider (1% ABV),
own brand beer (2% ABV), own brand lager (2% ABV). To further
expand our choice of lower alcohol alternatives we are planning
to introduce a new own brand low alcohol beer (0.5% ABV) in
2013/14.
Our strict ‘Challenge 25’ policy is in operation throughout our
stores to prevent under age sales of alcohol. Our compliance
rate as measured by independent simulated test purchases has
increased from 76% in September 2010 to 88% in December
2012. This is an industry leading pass rate, according to Serve
Legal, the specialist company that monitors our performance
and that of other major retailers.
35
Affordable
Affordable
Quality, service and value is what matters M savers
to our customers. Driving efficiency from Morrisons serves a wide customer base and we aim to offer all
field to fork, we aim to create affordable of our shoppers nutritious, tasty food regardless of their budget.
In 2012 we created M savers. This category offers a range of
products without compromise.
Our vertically integrated supply chain
means we work directly with suppliers,
own and operate manufacturing sites,
run our own logistics and invest in new
technologies across our estate, giving
us greater resource management and
more control over waste and costs.
Increase in sales of M savers
Approximate savings through
energywise
Reduction in logistics absolute
carbon emissions between
2009 and 2012
Absolute reduction in carbon
emissions since our 2005
baseline (target 30% by 2020)
37
£2m
27%
%
Through M savers we’ve also taken the value message beyond
our stores and into homes and schools.
M savers summer play parks
Research conducted in partnership with online forum, Netmums,
revealed the average family spends over £30 per week more per
child during the school holidays in comparison to term time.
The report into summer spending also highlighted that the average
parent is predicted to accrue £126.95 worth of debt over the
course of the holidays, with 8% in debt at higher levels between
£250 to £500.*
We set up free M savers summer ‘pop-up’ play parks in partnership
with Play England, a leading charity that promotes the importance
of play. The parks toured throughout the UK during the summer
period, offering families free play areas and step-by-step play
guides of free and low cost games.
To give extra benefit we also provided easy to cook, low cost,
nutritious M savers summer-themed recipes from 16p per head.
19.3%
* Parents were spending an average of £31.59 more per week per child on food,
entertainment, child care and days out between 02.07.12 – 15.07.12. Research
conducted amongst 1,662 users of Netmums. Research was provided by Morrisons
external communications consultancy 3 Monkeys.
36
high quality groceries at affordable prices. Since the launch, sales
within our value category have increased by 37% and M savers
has become the fastest growing own label value brand in the UK.
We provided low cost recipes at our summer play parks.
Overview
Friendly people
Making great food
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Managing cost and resources
37
Affordable
Affordable – continued
“ It was great to attend the cook-along
session and see parents cooking
recipes using products from the
M savers range. It demonstrated that
you really can cook family friendly
meals whatever your budget.”
Greg Jones
Hartcliffe Store
“ Our parents thoroughly enjoyed the
cook along! We would be more than
happy to take part in future events,
maybe an event could be arranged
to involve the children?”
School Teacher
Crooksbarn Primary School,
Stockton-on-Tees
Morrisons food education on the road in 2012.
M savers school workshops
We hosted cook-alongs for 600 parents in 20 schools across the
UK, to help build their confidence in the kitchen and show how to
make nutritious meals on a small budget. Each cook-along session
was demonstrated by a professional chef providing M savers meal
solutions. Parents were then invited to create their own recipe
using the M savers ingredients. Special teaching resources and
a recipe book were also made available online after the event.
97% of participants thought the sessions were a good way to
create a link between parents, schools and the community.
98.5% of participants were more likely to buy M savers products
in the future following the session.*
* Research provided by Morrisons external communications consultancy 3 Monkeys.
38
Food Affordability Roundtable
We launched a new ‘Food Affordability
Barometer’ at a roundtable event in Westminster attended
by our Chief Executive Dalton Philips, a range of food and
consumer experts, and nine Parliamentarians including
the Shadow Secretary of State for Defra, the former Farming
Minister, and the new Shadow Farming Minister. Dalton
talked through the consumer response to food inflation
during difficult economic times.
Overview
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VAT rise on bakery products
We were in discussions with the Government
throughout the year on how VAT on hot food would affect
customers and our sales. Early in the year we challenged
whether VAT on hot bakery food should apply to our ‘hot cross
buns’. As VAT will not be applied to bread, hot cross buns only
escape VAT if they are defined as a bread product.
The Government eventually announced that they had decided
to re-think closing VAT loopholes on food that is served above
ambient temperature, but is not being kept hot. This means
that where we sell pasties and pies on the ‘cool down’ to our
customers, these will not be subject to VAT.
Real cost of Christmas
Research revealed that over half of people were more concerned
about the financial impact of Christmas in 2012 than in the
previous year, with 17% claimed they needed to borrow money
to help fund their Christmas celebrations. Using M savers products,
Morrisons pulled together a shopping list to create Christmas
dinner for eight people at £2.49 per head, helping families to
save money during the festive period.*
Shelf edge labelling
We introduced larger and more consistent unit pricing to help
customers choose the best deal from different products. The
change in pricing allows customers to directly compare the prices
of small and large packs and items that are on promotion with
those at a standard price.
Our target is to apply this type of label across 30,000 products by
the end of 2013. Products will be labelled with a price per kilogram
for solids or the price per litre for liquids, with some exceptions
where different measures are more relevant or required by law.
Avoiding food waste
We are able to minimise food waste through close control
throughout our vertically integrated supply chain.
In practice, this means that instead of buying cuts of meat, we
can buy the whole animal; we buy the cow not the steak. As a result
of the relationships that we have built with farmers, our buyers
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.
Large pieces of meat, called primals, are transported to stores
where our trained butchers can expertly prepare smaller cuts upon
customer request. We also supply our food preparation sites to
make our own pies, sausages, cooked meats and other products.
As with fresh meat, we buy much of our volume fruit and
vegetables direct from the farmer and, when in season, we buy
British. 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
more of the food we buy.
In stores before products reach the end of their shelf life, we take
positive action to clear them by reducing the price or using the
food in our own staff canteens. This is our preferred approach,
as we believe it also serves to engender a healthy respect for
food throughout our business. Close financial control, training
and streamlined stock rotation enable us to manage this process
effectively to minimise waste.
Food redistribution
To ensure we are both environmentally and financially efficient
across our business, our aim is to ensure there is as little wasted
stock as possible.
We recognise that occasionally there are problems with the useful
disposal of surplus food and drink products within our supply
chain. This can lead to perfectly acceptable items having to be
disposed of unless there are other options available.
We partner with a number of organisations that redistribute these
goods to divert waste from landfill, reduce costs of disposal and
provide social benefit.
Company Shop
Products with incorrect labelling, damaged cases, or packaging
design issues are collected under a carefully controlled process by
Company Shop. Stock is then sold on at a discounted price through
the company shops of businesses in food retail.
* Research conducted by Vision Critical, October 2012 amongst 2,005 adults aged
18+ with children, who are responsible for their household’s shopping budget.
39
Affordable
Farm to store
Anna Walton, from Technical Services, at Strawsons Farm, one of our long standing produce
suppliers. Here leeks are picked and packed in the field ready for distribution. In other cases we
take whole crops direct into our facilities such as Cutler Heights (pictured) for washing, packing
and then onwards through our logistics operation, ready for customers in store.
“ Morrisons has always had a strong
sense of corporate responsibility,
minimising waste where possible
and maintaining a short supply
chain. We have developed a great
relationship with the team and help
them to handle the residual product
that does occur in a sustainable,
cost effective way.”
Mark Game
Managing Director, Company Shop
40
FareShare
The national food charity FareShare redistributes surplus stock
to a community based network of organisations working with the
most vulnerable people in society. By working with our suppliers,
FareShare is able to redistribute surplus food that can’t be sold
in our stores.
The dual benefit of FareShare is that the offer of free food
encourages disadvantaged people into an environment where
they can receive appropriate support. This enables recipient
organisations to reinvest funds into improving services such
as housing advice, medical services and training.
His Church
In 2012, we began work with the national charity, His Church.
His Church provides solutions for residual stock by redistributing
goods to over 300 charities in the UK.
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“ We are pleased to see Morrisons
continued commitment to support
FareShare by encouraging
their suppliers to work with us.
Morrisons are acting responsibly
by promoting the economic, social
and environmental benefits of
ensuring that their surplus food
goes to people who need it,
rather than being wasted.”
Mark Varney
Director of Food, FareShare
“ Morrisons commitment to waste
prevention and food redistribution
makes them one of our most valued
partners in meeting the needs of
vulnerable people in the community.
Thanks to Morrison’s contribution,
in 2012, His Church gave over 10,000
meals to food-insecure families and
individuals.”
Richard Humphries
Senior Coordinator, His Church
Similar to FareShare, His Church works with our suppliers to collect
and redistribute goods that can’t be sold through our stores. They
operate their own distribution fleet and can collect goods within 48
hours. So far, Morrisons products have been donated to various
charitable projects, including Lincolnshire Safer Communities
‘Speak Out Against Domestic Abuse’ Campaign.
Developments for 2013
In 2013, we will begin a more structured but limited trial to try and
establish processes for food redistribution at store level. To date
we haven’t solved key operational and food safety issues to allow
donations of this type to be made. We are working with FoodCycle
on this project.
We are members of Waste Resources and Action Programme’s
(WRAP) Food Waste and Redistribution Working Group, which
is also supported by the British Retail Consortium. The Group is
working to develop practical industry guidance on how to safely
redistribute surplus food, and will be reporting back progress
to the Government in late summer.
Food waste customer awareness
UK households throw away over 7m tonnes every year, around
20% by weight of that purchased. More than 60% (4.4m tonnes)
of this could have been eaten, including around 17bn ‘5 a day’
portions.
We believe much of this unnecessary food waste can be tackled
through information, education and communication on effective
storage, preparation and cooking of food.
In 2009 we launched our Great Taste, Less Waste campaign,
helping our customers to more meals for their money, by reducing
waste and making the most of fresh food.
The basic principles of the campaign are visible to customers both
in stores and online:
• In-store signage – throughout our Fresh Format stores you will
find Market Street communications on how fruit and vegetables
should be best kept, to ensure longer shelf life.
• Customer website – our Great Taste, Less Waste website
provides tips, recipes for leftover food and how to store various
food items within the home.
• On-pack tips – we provide freezing and defrosting tips alongside
information on how this affects use-by and sell-by dates.
• Phasing out dual date codes – we know customers can be
confused by use of both ‘best before’ and ‘display until’ dates.
In 2012, we reported that we would phase out dual date
coding and move to the sole use of ‘display until’ on pre-packed
produce. However, based on further customer feedback, it is
the ‘best before’ date we have opted to retain and the ‘display
until’ date that we have removed. We believe that this will help
customers get the best out of the food they buy, save money
and reduce waste.
We know there is more we can do as a company to encourage
our customers to reduce their food waste. We aim to refresh
our campaign again in 2013/14.
41
Affordable
Store waste management
We’ve made more progress on our ambition to reduce store waste
going direct to landfill. In practice this means a strong reduction
and recycling programme, treating ‘waste’ as a resource and
working with our contractors to maximise reprocessing and hence
minimise waste being tipped directly to landfill.
We’ve made steady headway since 2007/8 and as the following
table shows we recycled or diverted nearly 97% over the year from
the back of store. This is a significant achievement and has taken
considerable management and operational restructuring
to deliver.
The challenge to reach 100% may not be feasible within 2013.
This would require disproportionate levels of routine transportation
of relatively small amounts of waste across the country. We will,
however, continue to keep this under review to close out the
commitment if and when practical to do so. However, over the
last three periods of the financial year our diversion rate was as
high as 98.3% and we aim to maintain this level.
In the meantime we have begun the same process for waste from
our manufacturing sites. Whilst we already successfully mitigate
and recycle much of the waste we are going to focus our attention
on a more joined up management programme starting in 2013.
Store waste, recycling and
diversion analysis 2012/13
Card
Light tubes
“Reducing waste in the first place
should always be a priority, but
where waste remains we’ve made
significant steps to convert it into
a resource that can be reused,
recycled or reprocessed.”
Steve Duncan
Waste and in store packaging
42
1,224.13
8,064.46
Animal by-product
Dr Richard Swannell
Director of Design and Waste Prevention, WRAP
Percentage
114,685.50
Confidential paper
Polythene
“ As a signatory to Courtauld,
Morrisons has a long standing
commitment to reduce food and
packaging waste, both within
their supply chain and in their
customer’s homes.”
Tonnes
Oil
5,926.25
65.93
4,841.41
Other recyclables
Diverted trade waste
Total recycled/reprocessed
Landfill
Total waste produced
170.23
54,895.43
189,873.33
96.77%
6,340.51
3.23%
196,213.83
100.00%
Waste to Landfill tonnes
53,395.00
2007/08
2008/09
50,509.00
2009/10
42,690.00
2010/11
34,842.00
2011/12
10,859.96
2012/13
6,340.51
Waste to Landfill tonnes
NB. In 2011/12 the reporting methodology was changed to reflect the revised target
and bring in line with retail industry practice.
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Packaging
Customer recycling
Packaging remains an environmental concern to stakeholders.
For many of our customers, it’s seen as a visual representation
of waste in the home. According to a food waste and packaging
report by WRAP, close to four in five consumers (81%) believe
that packaging is an environmental problem and 57% think it is
wasteful and unnecessary.* In addition, environmentalists want
to ensure retailers use efficient packaging and the full life cycle
of a product is also considered.
We want to make it easier for our customers to recycle their waste.
The most efficient and effective way for customers to recycle is
through council operated kerbside schemes. However, kerbside
collections are dictated by individual local councils, and at present
there isn’t a unified system in place.
Packaging plays a fundamental role in preserving the freshness,
quality and safety of a product, helping to significantly reduce food
waste. The resources needed to grow, manufacture and transport
food are more impactful than packaging alone so food preservation
is critical.
The key is smart packaging. We aim to limit the amount of
packaging on each product using the most effective materials,
whilst ensuring it still serves its purpose to protect and prolong
shelf life. This makes sense from not only an environmental
perspective but also financially, using the correct packaging can
result in significant cost savings to the business and our customers.
Alongside other retailers, we are signatories to the second phase
of WRAP’s Courtauld Commitment. Part of this commitment is
to reduce the carbon impact of our own brand packaging by 10%
by the end of 2012.
In 2012, we reported our 2011/12 figures to WRAP which they
converted to an equivalent absolute reduction in the carbon impact
of our own brand packaging compared to 2009 in line with the
Courtauld target. Our 2012/13 figures also appear to be on track
to meet WRAP’s 10% carbon reduction equivalent figure.
Our most recent figures also show that Market Street specific
packaging has reduced in weight terms by 23% (in absolute terms)
when comparing 2012 against 2009.
Recycle Now
It’s important that customers have clear and consistent recycling
information on products bought at our stores. To help, since
2011, we’ve been converting our on pack recycling advice to the
universally recognised Recycle Now system in line with industry
best practice. Customers can easily identify the parts of each
product which can be recycled.
Recycle Now logos are added during any packaging refresh
(replacing our existing Recyclopedia logos). We aim to complete
this conversion process over the next couple of years.
To help our customers, where possible, we provide recycling
facilities in our stores and car parks. We currently operate 4,263
banks across 378 stores which collect materials such as paper,
plastic, glass, cans and clothing. Within all core stores, we also
provide a carrier bag/plastic film and battery recycling services.
Collection activity
Salvation Army clothing collection banks
Total tonnes collected for The Salvation Army for 2012/13
was 3,380, showing a small decline from 2011/12 activity.
3,425
2011/12
3,380
2012/13
Tonnes donated
Christmas card collection scheme
Total Christmas cards collected in stores in 2012/13 was
approximately 219 tonnes showing a drop of 32 tonnes from
2011/12. We believe the decline is a result of increased postage
costs, money saving, wider availability of paper and card recycling
and the prevalence of electronic e-cards.
2011/12
approx 18.5m cards
2012/13
approx 16.1m cards
251
219
Tonnes donated
Save the Children clothing banks
Total tonnes collected through Save the Children clothing banks
increased from 611 tonnes in 2011/12 to 973 tonnes in 2012/13
due to the increased number of banks being rolled out to stores.
The funds from this collection scheme helped to support our
charity partner, Save the Children.
611
2011/12
973
2012/13
Tonnes donated
Staff uniform recycling
Total tonnes of redundant uniforms collected decreased from
20 tonnes in 2011/12 to 7.79 in 2012/13. This is a result of
a large uniform refresh in 2011/12 which involved a higher
than usual volume of garments being recycled.
20.0
2011/12
7.79
2012/13
Tonnes donated
* WRAP: Consumer attitudes to food waste and food packaging
(published March 2013, research date April – August 2012).
43
Affordable
Carrier bags
Since 2006 we have worked to manage and reduce customer
reliance on standard single use carrier bags. Over the last
year, we have seen a further year-on-year absolute reduction.
We achieved a reduction of 3.8% in comparison to 2011/12
(6.2% reduction like-for-like). The number of bags provided
to customers throughout the year was 1.09bn, which is the
equivalent of less than two bags per customer transaction.
Where possible, we offer our customers alternatives to the
standard carrier bag. Our small and large size durable woven
shopping bags, which can also be recycled, are available from
display stands and checkouts in all stores. They are sold in addition
to our ‘bag for life’ which is made from recycled material and is
designed to encourage customer reuse. When damaged, ‘bags
for life’ can be recycled and replaced free of charge at our stores.
Charging for bags
Since October 2011, in accordance with regulation in Wales we
have charged customers for using our single use standard carrier
bags in all of our Welsh stores. Each bag is now subject to a charge
of 5p; all of the proceeds raised (less VAT) go towards our charity
partner, Save the Children, helping to raise funds for their Families
and Schools Together (FAST) programme.
Since the introduction of the new legislation we’ve seen a
significant decline in single use carrier bags given out in Wales
and a total of £374,254 has been raised for Save the Children
during the annual period prescribed under the Regulations
(to April 7th 2013).
We also introduced charging voluntarily in our store in Gibraltar,
charging 2p per bag with proceeds going to local charity partners;
this has seen a decrease in carrier bag usage of 74.1% over
the year.
Reusable bags require significant re-use before they provide
environmental benefit, this is because of the resources used
to make and distribute them. Research commissioned by the
Environment Agency assessing the life cycle of supermarket
carrier bags found that the environmental impact of a cotton
bag for example is 131 times greater than that of a standard
plastic carrier bag.
In short, reusing standard carrier bags and recycling them when
damaged is the most efficient and effective way for customers
to reduce their environmental impact.
Our standard bag is designed specifically to offer exceptional
performance and be suitable for re-use, with a minimum of
resources used in its production. In recent years, we have also
changed the messaging on our bag to encourage further reuse and
recycling and they now feature the Recycle Now logo. We have also
reduced the thickness of each bag so they contain 10% less plastic.
All of our standard stores offer customers carrier bag recycling
facilities, situated in prominent main entrance areas. At these
facilities customers can also recycle other types of plastic including
LDPE, which we communicate on all relevant own brand packaging.
For more information of the proceeds raised
through carrier bag charging in Wales
Visit – morrisons.co.uk/Corporate/CR/Our-carrier-bag-savings-in-Wales
Environment Minister
endorses FAST Scheme
Welsh Environment Minister, John
Griffiths AM, visited Pentrebane Primary School in Wales to
see how a FAST scheme is helping families. We support the
scheme by donating funds raised on the sale of single use
carrier bags in Wales – following the introduction of mandatory
charging. Mr Griffiths commented: “Retailers are passing
money from the bag charge on to environmental and good
causes and it is really heartening to see how the proceeds
from the charge are starting to directly benefit Welsh people.”
We encourage customers to use, re-use and then recycle our ‘bags for life’.
44
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Governance
Total Carbon Footprint (tCO2e/yr)
2005
1,600,601
2006
1,542,757
1,448,419
2007
1,473,756
2008
1,365,639
2009
1,389,045
2010
1,360,674
2011
1,291,367
2012
Solar panels on our Peterborough store.
Carbon Intensity for Combined Estate
Reducing operational carbon emissions
In 2010, we communicated our commitment to reducing
operational carbon emissions within our business by 30% in
absolute terms by 2020 (from a 2005 baseline) to align with the
UK Government’s targets developed by the Committee on Climate
Change. This announcement followed the successful completion
of our previous target after several years of significant focus on
CO2 reduction within our estate.
Carbon Intensity (Kg CO2e/ft2)
2005
44.6
2008
44.4
40.4
2009
40.1
2010
38.5
2011
35.4
2012
Following our success of being
the first supermarket to achieve
the Carbon Trust Standard back
in June 2008, we have now achieved
our second reaccreditation in
early 2012/13.
To date, the most effective area of emissions reduction has been
the increasing efficiency in the use of electricity within our stores.
We have also significantly reduced haulage CO2 emissions due
to our investment in transport optimisation and the reduction
in refrigerant gas emissions has also added significant benefit to
our emissions reduction through reducing leakage and replacing
high global warming potential (GWP) refrigerants with low GWP
natural refrigerants.
Since 2005 our property estate has grown by 17%, mostly through
new store development, but there has also been a significant
increase in our logistics operations through the opening of our
Sittingbourne and Willow Green regional distribution centres.
48.3
2007
We are now nearly at the midpoint of this journey. At the end of
2012 we have achieved an absolute reduction of 19.3% against
our 2005 baseline, which keeps us on target to achieve our 30%
target by 2020.
The most significant challenge in managing our target emission
reduction within the absolute metric is the business growth we
are absorbing.
51.4
2006
19.3%
Absolute reduction in carbon
emissions since our 2005
baseline (target 30% by 2020)
Putting this into context, without an absolute metric we would
have already achieved our emissions reduction target, by 2012
achieving a 31% reduction in seven years.
In order to measure our efficiency across a growing estate, we use
the carbon intensity relative to our combined square footage of
the business to demonstrate progress. In 2012, this saw metric
supported an in-year saving of 8.0%, absorbing a 2.7% growth
in the size of the estate. This is a clear demonstration of the
commitment the management team have given to recognising our
responsibility to assist the UK in reducing overall carbon emissions.
45
Affordable
Willow Green Distribution Centre incorporates a range of energy efficiency measures.
A further challenge in emissions management, at least in terms of
perception, comes from our vertical integration business model;
the direct ownership and control of abattoirs, bakeries, haulage and
food production provides opportunities to directly manage emissions
reduction, but they increase the reporting responsibility for directly
controlled carbon emissions (Scope 1 and 2 emissions and some
direct Scope 3 as defined by GHG Protocol and PAS 2050). Whilst
we continue to develop the reporting of our supply chain emissions
(indirect controlled Scope 3 emissions) we operate in marked
distinction compared to our competitors because our emissions
are far more encompassing in terms of our direct supply chain.
Our focus for 2013 is to obtain even more detailed knowledge
of our emissions sources. We are developing in store energy
management tools to allow our energy champions to be trained to
seek further opportunities and analyse usage. Further investment
in automated meter reading equipment will allow us to manage
the estate more proactively and react faster to issues.
Energy efficiency projects
Whilst we continue to drive energy reduction across the estate, the
focus remains firmly on the efficient use of power within our retail
division. Aside from refrigeration, our single most intensive use of
energy is lighting and we continue to develop initiatives to reduce
consumption in this area.
In 2012 we carried out 22 separate energy efficiency roll out
projects, undertaking 1,638 individual site installations across
the estate.
2012 Footprint Breakdown by Source,
tCO2e/yr
Refrigerant 217,481 – 17%
Waste 23,030 – 2%
Electricity 762,686 – 59%
Gas 138,842 – 11%
Haulage 108,475 – 8%
Staff Travel 35,078 – 3%
Business Miles 4,768 – 0%
2012 Footprint Breakdown by Division,
tCO2e/yr
Central 13,357– 1%
Retail 1,009,041,095 – 78%
Manufacture 93,867 – 7%
Logistics 175,095 – 14%
In 2013, we have a further 23 planned efficiency projects in
development.
Furthermore, as we increase the scale of our manufacturing
activities, we are looking at ways to embed energy efficiency
in our new facilities from day one.
46
Overview
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Governance
Lightwells built in to store design to increase natural light.
New store development
We are committed to ensuring our new store design embraces
efficient building services technology and incorporates sustainable
forms of energy generation where appropriate to do so. We continue
to develop new ideas and technologies that enhance the ‘theatre’
of the customer experience, yet reduce the operational costs of
the stores to deliver better value to our business and therefore
our customers.
Our approach to new store design has been developed from
the success of the Peterborough Stanground store which was
supported by industry awards for refrigeration and lighting in
2012. We have now integrated three key initiatives into our
standard store specification:
• LED lighting throughout the sales area of the store.
• Solar photovoltaic roof mounted renewable energy generation.
• Heat reclaim for store heating and hot water from the
refrigeration process.
The look and feel of our new stores has changed significantly
over the last few years. We continue to develop the use of natural
daylight in our roof structures and select appropriate materials
to enhance the thermal properties of our stores to reduce heating
demand. Our new Fresh Format within the store has given us the
challenge and opportunity to incorporate more effective energy
efficiency into our new store layout and design.
LED lighting to sales areas
LED lighting is a far more efficient light source than traditional
fluorescent lighting found in most retail space. We have developed
our requirements, testing retrofit LED lighting in trial stores for
the last 18 months. We have now commenced a roll out of this
technology in our existing estate, with 33 stores completed to
date and a further 160 stores planned for 2013. When replacing
fluorescent with LED lighting reduces the electricity consumption
by over 55%.
Store warehouse lighting
In 2012, we upgraded the warehouse lighting in 200 stores.
The new lighting, fitted with motion detection has enhanced the
storage areas, increasing light levels but also significantly reducing
energy consumption through lower demand and better control.
Car park lighting
In the last quarter of 2012, we replaced the car park lighting in
85 stores with new induction lighting. This provides a whiter, more
natural light which not only reduces energy, but provides better
illumination to the area. The induction lamps make our customers
feel safer whilst reducing light pollution to surrounding areas.
They also improve site security and support CCTV imagery.
Morrisons new stores incorporate efficient building services technology.
47
Affordable
Voltage optimisation
In December 2012, we completed our fourth phase of rolling out
voltage optimisation technology into the retail estate. Today we
have 190 stores benefitting from voltage reduction which typically
reduces the electricity usage in store by around 8%.
Energywise
We have now completed the first full year of our new behavioural
awareness campaign in retail stores, which has achieved energy
savings of £2m in 2012. Each store has an Energy Champion
within the management team to deliver messages on energy
saving tips and ensure compliance with company wide initiatives.
The energywise campaign will continue in 2013 with an expanding
roll out into our manufacturing and logistics divisions.
“Looking forward, our greatest
challenge is absorbing business
growth. Our multi channel offers
will undoubtedly increase our
estate through convenience stores,
distribution hubs and data centres
for our online businesses. More
of what matters certainly applies
to our energy reduction strategy
as it does to every other aspect
of our business.”
Stuart Kirk
Carbon Reduction and Energy
Refrigeration
There is no getting away from the fact that refrigeration is key
to presenting great fresh food to our customers. It is therefore
no surprise that refrigeration is the single largest source of carbon
emission within our business, due to a combination of 17% of total
emissions through direct loss of refrigerant gases and the energy
to run the refrigeration cabinets in store that account for over
40% of a store’s electricity consumption.
We have continued our dedication to provide robust and effective
natural and CO2 refrigerant systems. Our work with the Natural
Refrigerant Technology Centre in Hereford has provided further
development to our new stores systems with hybrid hydrocarbon
and CO2 refrigeration. This is currently being developed further
in order to find refrigeration solutions which are affordable, reliable
and environmentally friendly for all types and sizes of store.
Within our existing retail estate we have begun to remove the
carbon intensive R404a refrigerant gas from our equipment,
replacing it with the newly developed R407f which has a GWP,
less than half that of its predecessor. This has been completed
in a further 54 stores in 2012 using an innovative portable rig
on the back of a trailer.
In addition to reducing emissions through gas loss, we have also
reduced the power demand to our refrigeration cases in store.
By introducing intelligent control to defrost settings, completing
the installation of heater less doors to frozen food cases at 165
stores and installing small Perspex screens to the front of our open
fresh food cases, they have contributed to a significant reduction
in our emissions in 2012.
48
Our store solar wall at Peterborough captures heat from sunlight.
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Freezer units converted to standing units with doors and LED lighting.
“ The Energy Managers Association
is delighted to have been supported
by Morrisons over the last 12 months
and we continue to develop energy
efficiency measures together for
the benefit of the energy industry
as a whole. We have an exciting
time ahead as we continue to develop
training packages for staff awareness
with the aim of training all staff
in store on energy efficiency.”
Lord Redesdale
Chairman of the Energy Managers
Association and CEO of the
Carbon Management Association
Refrigerant loss has become our first emissions source to more
than half from our 2005 baseline. In the last seven years we have
reduced refrigerant emissions by 52.3% in absolute terms, assisted
by a significant year-on-year reduction of 21.1% in 2012.
Operational water management
In 2012 we made significant strides forward in relation to our water
management and reduction strategy. We’ve surpassed our target
and reduced our costs by 10.6% when taking account of space
growth and price rises. This equates to an absolute reduction of
2.9% year-on-year. In addition to repeating this challenge in 2013
with a further 10% reduction, we are also looking at our long term
reduction strategy for water.
Our retail stores are now equipped with remote meter reading
devices to allow detailed management of real time consumption.
Along with intelligent leak detection software we have been able
to reduce base load water consumption at night and prevent long
term waste water usage.
In 2012, our analysis and reduction of base load consumption
has saved 442m litres of water across our stores, equivalent to
the volume of water in 175 Olympic sized swimming pools.
Through intelligent data capture we are now able to accurately
determine a baseline performance for our estate. Therefore we are
able to establish a long term target to reduce water consumption
in a similar fashion to our carbon emission target.
Our aim is to reduce water consumption by 20% in absolute terms
by 2020, from our 2012 baseline consumption data. The major
challenge in this target is to absorb the growth in the estate over
the next seven years, especially in high water use facilities such
as our manufacturing sites.
To support this target we must also challenge behavioural use
of water by our colleagues. In 2013 we will be launching our
waterwise campaign to run in parallel with our successful
energywise campaign. The aim is to reduce our water consumption
by a further 116m litres through behavioural change in 2013.
49
Affordable
In 2012 we reduced kilometres travelled by our fleet by 3%.
Logistics
Transport optimisation
Morrisons haulage fleet moves goods to and from our network
of stores, manufacturing facilities and depots. Where we can
gain efficiency we also move products for our suppliers and
form wider distribution linkage to try to ensure that we operate
full lorries whenever they are on the road.
Reducing our carbon footprint and efficient working go hand
in hand with cost reduction. This helps to keep us affordable
for our customers. Since 2009 we’ve focused on areas where we
can make the best use of our fleet and secure the biggest savings.
Despite continued growth of the business, including new stores
and operations in 2012, we’ve increased fleet efficiency and have
successfully reduced our haulage emissions compared to the
previous financial year.
Overall in 2012 we reduced kilometres travelled like-for-like by
our vehicles by 3% compared to 2011. In turn, this has reduced
our fuel usage by 1.37m litres and led to a reduction in CO2 by
3,511 tonnes. We have made year-on-year efficiency savings
since 2009 despite volume growth to stores increasing by
12% during that period.
27%
Reduction in logistics
absolute carbon emissions
between 2009 and 2012
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Smarter service to stores
We are in the process of introducing new transport schedules
into all of our depots with 75% of the transport operation
completed so far, and the remainder being completed in 2013.
The new schedules have contributed to the decreases in kilometres
travelled and fuel usage. The recent development of our new
purpose built sites at Sittingbourne in the South-East and Willow
Green in the South-West have been a key element of this strategy.
Air tabs
To make our vehicle usage more efficient, all vehicles are currently
having air tabs fitted to them to make them more aerodynamic
and reduce drag, which in turn will reduce fuel consumption.
Refrigerated trailers
We rolled out the use of mains power for our refrigerated trailers
as an alternative to diesel when at station at our depots. This has
helped our business to save 673,110 litres of diesel and counting.
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Euro 5 engine technology
All of our current fleet now use more modern Euro 5 engine
technology, which also helps to limit our nitrogen oxide emissions.
Dual fuel vehicles
We have been trailling the use of dual fuel vehicles with the further aim
of reducing our fuel usage and CO2 production in 2013 and beyond.
Driver training
All of our drivers are fully trained on mileage efficiency and journey
planning. This ensures vehicles are used correctly and are travelling
on the most effective route to minimise both time and mileage.
We use sophisticated technology to track and record activity and
we’ve encouraged healthy competition for drivers to drive as
efficiently as possible.
Morrisons InMotion
In 2011 we launched a backhaul service for suppliers called ‘InMotion’.
This service is helping to reduce the number of road miles for our
suppliers, by utilising existing Morrisons vehicles making return
journeys from stores to collect goods from our suppliers. To date
we have over 50 suppliers taking part, with more planned in 2013.
Double-deck and longer trailers
Since 2011, we’ve introduced a programme to replace single trailers
with streamlined larger and more efficient alternatives. During 2012,
we further increased the number of double-decker trailers in our fleet.
These trailers transport up to 80% more volume per trip, which also
helps to reduce road miles.
The business has also secured 38 longer trailers as part of a
Government trial involving 200 hauliers, with Bellshill taking 18 and
Wakefield and Latimer Park 10 each. At 15.65 metres – two metres
longer than existing trailers – they are designed to carry more pallets,
so cutting the number of journeys.
Our new distribution centres have been located to best serve our
national network.
Focus on convenience in 2013
In the last two years we have trialled our own convenience format,
Morrisons M locals, in 12 towns and cities. 2013 is time for lift-off
and we aim to have at least 70 Morrisons M locals open by the end
of 2013.
Over 60 M local stores will open in the South-East alone in 2013 and
to help manage the logistics side of the convenience expansion in this
highly populated part of the country, we have acquired a convenience
distribution centre in Feltham, West London, to supply these stores.
The site at Feltham is in an ideal spot for the spread of Morrisons
M locals across London, having capacity to supply 100 stores and great
road links including access to the heart of the capital.
The depot will receive stock from our main South-East distribution hub
in Sittingbourne, Kent, which will consolidate deliveries. The Feltham
team will then break down stock onto roll cages then load them onto
new smaller 18 tonne vehicles more suitable for inner city transport
for delivery to M local stores.
Our South-East M local stores will have their own logistics solution.
The acquisition and smaller sized vehicle operation in a dense urban
environment, is bespoke. Added to our wider integrated model in this
way it allows us to expand but minimise impact with careful planning
at the outset.
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For everyone
For everyone
Contributing to community spirit is
essential to Morrisons. We strive to be
a good neighbour, creating a positive
impact on the areas in which we operate.
More of what matters locally
Where we are most effective is when we
are at the heart of the local community
and understand the issues that matter
most to our customers and colleagues.
We do this in any number of ways, for example by partnering
with local schools, charities and community groups, offering
collections and bag packing, helping them to raise funds
throughout our stores.
Let’s Grow gardening
equipment donated to schools
Charities and community
groups supported through
in-store collections
£4.5m
£14m*
1,000’s
2012 Awards
Big Tick for Morrisons Let’s Grow presented at Business
in the Community’s Awards for Excellence 2012
Highly Commended for Morrisons Let’s Grow for the
Education Award at Business in the Community’s National
Awards for Excellence 2012
*
£10.3m excluding VAT, £14m gross figure.
52
Stores also offer local group tours and talks on what makes
Morrisons different; our skilled colleagues, our vertical integration
model and our focus on serving fresh food.
As one of our ‘More of what matters’ promises to customers,
throughout 2013, we will step up our activity; aiming to improve
our community engagement strategy, and ensure more overall
consistency throughout our shops.
Highlights
Raised for our charity partner
Save the Children
Every store is made up of local people, from customers that
shop there to the colleagues that serve. We want to ensure
that any community investment is reflective of this, by supporting
the causes that matter to each local neighbourhood.
“ The judges were pleased to award
Morrisons with the title of Highly
Commended in the Bank of America
Merrill Lynch Education Award for
Excellence. They felt that Let’s Grow
demonstrated a mass education
programme at its best. Tackling
obesity and food providence
challenges are key issues that are
relevant across young people, schools
and communities. Morrisons have,
through this programme, developed
an approach that really looks at
changing the habits and mindsets
across these groups.”
Business in the Community’s Awards
for Excellence 2012, Judges feedback
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Our communities, our customers
53
For everyone
For everyone – continued
Store visits, with local schools and MPs.
Community Champions in 2013
In 2013, we will introduce dedicated Community Champions in
every main estate store. Initially spending eight hours per week
in their appointed role, Community Champions will act as a
point of contact for local groups, helping to provide support,
communications and engagement within their local community.
Following our in-store Disney promotion in 2012,
Morrisons were able to donate 3,500 of the remaining
soft toys to various Surestart Children’s Centres in
Bradford to give to the children as Christmas presents.
Allowing colleagues dedicated time and resources to focus on
local activity will make a more positive impact on Morrisons
community links and relationships, further building trust and
recognition. In addition, as Champions, store colleagues will
play an active role, which we believe will support their own
personal development.
500 boxes of food were packed and distributed to
homes of old people in and around the Leeds area,
supporting the Leeds Community Foundation, to help
them survive the winter months.
Community boards in 2013
Following on from the trial of our new style community board,
in 2013, we will be rolling out redesigned boards to all stores.
Boards will act as in-store hubs providing a variety of customer
information including charity partnerships, local fundraising,
news and updates, travel information, recruitment opportunities
and details of Let’s Grow activity in the local community.
54
Prior to Christmas, colleagues in a selection of stores
helped in the delivery of Christmas dinners to 1,000
families across Britain, as part of a special project in
support of Save the Children and their efforts to
improve the lives of some of the country’s most
deprived families. The business pulled together to
ensure that the additional goods were sent to store,
packed and delivered direct to people’s homes.
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Let’s Grow
Our award winning Let’s Grow programme has now completed
its fifth year of operation. The programme’s ongoing commitment
is to educate children, our shoppers of tomorrow, about the life cycle
of food through the practical experience of growing fresh fruit and
vegetables in an outdoor environment. We hope to inspire them
to think and care more about food.
Let’s Grow provides UK schools with free gardening equipment,
cooking equipment and key teaching resources. Since the
scheme began in 2008, we have now given away over £14m
worth of equipment.
Equipment and resources
One voucher is issued to customers for every £10 spent in Morrisons
stores between August and October. These vouchers can then
be redeemed, by a school representative, for equipment through
the online catalogue on the Morrisons Let’s Grow website. Ordering
equipment for schools is available throughout November.
Teaching resources designed by the National Schools Partnership
can also be downloaded online. The resources cover Key Stages
1-4 and include lesson plans, how to guides, outdoor activities
and interactive videos.
Evaluation and improvements
A yearly research project is carried out by our Let’s Grow partners,
the National Schools Partnership, to ensure we gain independent
feedback from our key target audiences.
Utilising the feedback received from both National Schools
Partnership and Department of Food and Rural Affairs (Defra)
taskforce, throughout 2012, we added additional equipment
and resources to the programme:
“Let’s Grow is an incredibly powerful
educational initiative which brings
together the wider community,
parents, schools and pupils to provide
a platform where through the vehicle
of a community linked, hands on
growing activity, young people
are becoming more well rounded
and engaged citizens for the future.”
Caroline Leroi
Strategy Director, National Schools Partnership
Let’s Grow presented at DEFRA
taskforce event in City Hall
We presented on the aims and aspirations of the Let’s Grow
programme at the follow up event to the DEFRA Food
Growing in Schools Taskforce report launch. The 100 strong
event at London City Hall, was attended by educational
and horticultural specialists working with DEFRA to get
more schoolchildren growing fruit and vegetables.
• Vertical growing systems – created for schools that have little
or no outdoor growing space.
• ‘Weird and wonderful’ seeds – to educate and inspire children
into trying new things; aiming to provide teachers with a real
conversation starter.
• Fresh Market starter kit – which includes the ‘unusual’ vegetable
varieties stocked in our Fresh Format stores.
• Outdoor wildlife kits – teaching children about insects and
wildlife in the garden.
• Teaching resources and courses – in conjunction with
Garden Organic.
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For everyone
Let’s Grow NSP research
The National Schools Partnership conducted research on behalf
of Morrisons into the overall success of the 2012 Let’s Grow
programme, so we could continue to understand its social impact.
• 99% of respondents are planning on taking part in the
programme next year, an increase of 5.5% in comparison
to last year’s survey.
• 77% of respondents gave Let’s Grow between an 8–10 out
of 10 for excellence, a decrease of 2.6% in comparison to last
year’s survey.
Let’s Grow NSP research
Which of the following changes have taken place as a
result of your school’s participation in Let’s Grow?
Interest in growing
things has increased
Knowledge about growing
things has increased
Active involvement
in growing things
69.8%
Garden Club Leader
Infant School, South-East
60.2%
59.8%
Pupils spend more
time outdoors
Increased understanding
of where food comes from
Teamwork/working
together has improved
The whole school
has benefitted
Increased social interaction
with the the school
Increased social interaction
with the wider community
None of these
“ I think it gives schools a fantastic
opportunity to teach their children
about growing your own produce
and healthy eating; providing lovely
resources which might otherwise
be out of reach for some schools.
My gardening club love learning
about growing their own food
and using the fantastic resources.
Thank you Let’s Grow.”
46.9%
Minister on Let’s Grow
Fresh Format visit
46.3%
41.8%
As part of our focus on Fresh Format stores, we hosted a
number of visits with Members of Parliament, MSPs and
Assembly Members from Wales. Angela Constance MSP,
Scotland’s Minister for Youth Employment mentioned
us following her visit in the Scottish Parliament stating:
“Morrisons runs a great programme that takes primary
school children into the store and exposes them to a
great learning environment where they can find out not
only about food but about the range of jobs that support
supermarkets. It is also a great example of the opportunities
that are afforded by curriculum for excellence.”
28.8%
19.1%
15.2%
4.9%
Have you been able to measure the success of
Let’s Grow in terms of academic achievement?
Yes – we have seen
some positive impact – 38.4%
Yes – we have seen a
significant positive impact – 7%
We have not been able
to measure it – 35.6%
We have seen no impact – 2.1%
Don’t know – 16.9%
Let’s Grow and academic achievement
Teachers have seen some correlation between participating in the
programme and academic achievement. It is difficult to attribute
pupil attainment with one particular programme, but there are
promising results in this area with nearly 50% reporting that they
have seen academic achievement rise.
1
56
Statistics taken from quantitative research provided by National Schools
Partnership, conducted between February and March 2013. 2,817 respondents
took part in the research included positions within nursery, primary and secondary
schools. We had a survey completion rate of 79.9% (2,250 respondents).
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Since 2008, Let’s Grow has donated £14m worth of gardening equipment in total. Over 28,000 schools have registered.
Let’s Grow 2012 activity
• Over 13,900 schools placed Let’s Grow orders, with nearly
2,000 new schools registered.
• We supported ‘Incredible Edible’ community groups in six sites
across the UK, by allowing these groups to participate in Let’s
Grow and redeem equipment. Following the success of this trial,
we will be extending this to over 30 community sites in 2013.
• ‘Big Dig’ saw over 100,000 students throughout the UK invite
family and friends to help them with activities in their Let’s Grow
school garden, further engaging local communities in the
programme’s activity.
• As part of ‘Big Lunch’, UK schools held various community
cooking events, using produce grown throughout the year within
Let’s Grow gardens.
• We began searching for our Young Gardener of the Year, with
over 150 schools taking part. Winners received 40,000 Let’s
Grow vouchers, a day with a celebrity gardener and a chance
to write in the National children’s newspaper, First News.
• We expanded in store lesson plans to become more integral
into the Let’s Grow story. Hundreds of schools have now taken
part in educational store visits, bringing the food story to life
and showing how their produce, meat and bread goes from
field to fork.
“We have worked with a range
of national, governmental and
community based agencies and
partners to ensure Let’s Grow has
a solid academic rationale. From
developing the programme with
DCSF, to working with the National
Schools Partnership and FACE;
we have ensured our products are
educationally relevant, engaging
and fun for the children involved.”
David Hewitt
Communities
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For everyone
“ The whole school is involved in the
Let’s Grow project and there will be
an enhanced range of produce grown
and the students will be able to use
the produce in their Food Technology
classes to prepare and cook. Without
the encouragement that Let’s Grow
has given, this would not have been
part of the educational process here
at the school.”
Secondary School Teacher
South–West England
Let’s Grow activity graphs
Products ordered
488,956
2008
319,044
2009
373,729
2010
2011
335,635
2012
340,000
Products ordered
Orders received
15,693
2008
2009
15,123
2010
15,502
15,500
2011
13,900
2012
Orders received
Retail value of orders
3.2m
2008
3.3m
2009
3.5m
2010
3.3m
2011
3.1m
2012
£ Millions
2013 plans for Let’s Grow
• A new educational website will be developed for use by schools
and community groups entitled ‘Morrisons Food Academy’
focusing on our in-store butchers, fishmongers and bakers
aiming to highlight the skills of our specialists and what happens
to food once it arrives at store.
• All Incredible Edible sites will be eligible to collect gardening
equipment through the programme. We will also work to further
integrate these groups into the community through our existing
relationships with local Let’s Grow schools.
• ‘Let’s Grow and Cook’ re-launch. Originally trialled in 2010,
we will bring added emphasis on cooking equipment enabling
schools to buy kitchen appliances and equipment which will
enable them to prepare and cook the produce they grow.
• Re-launching last year’s ‘Big Dig’, ‘Big Lunch’ and ‘Young Gardener
of the Year’ competitions encouraging more schools, children
and families to get outside, grow, cook and prepare food.
To find out more about Let’s Grow
Visit – morrisons.co.uk/letsgrow
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“ Teachers can see improvements in
performance and there’s a real sense
of community at this school now. It’s
great to see the difference Morrisons
has made right on our doorstep.”
Sam Hill
Morrisons Dukinfield
Once families have completed FAST, they have the option to advance
to FASTWORKS; a continuation stage of the programme, led by FAST
parent graduates.
FASTWORKS allows families to build on the skills gained through
FAST and further strengthen their connections within the local
community, attending meetings every month for a minimum of
22 months.
FAST programmes supporting children’s education.
Across the UK, several FASTWORKS parents have now become
parent governors or classroom assistants as a result, demonstrating
the impact FAST has not only on the children but on the whole
family.
Morrisons
Achievements:
Direct Delivery
Save the Children
Morrisons have been supporting the international charity, Save
the Children, since 2011 by helping to transform the lives of
the UK’s most disadvantaged children and their families through
the Families and Schools Together (FAST) programme.
FAST
Since our partnership began in 2011, our customers and colleagues
have raised over £4.5m through a variety of fundraising initiatives
such as challenge events, bucket collections, ‘Raise a Smile’
merchandise, and cause related marketing campaigns.
FAST
FAST is an award winning, early intervention programme that aims
to create a positive impact on the lives of families and children
across the UK through:
• Improved learning
Helping children who are experiencing difficulty at school
become more engaged in the classroom. The programme shows
parents how to support their child’s learning, which is essential
to help children reach their full potential.
• Improved confidence
Giving parents the space, time and resources to talk and
play with their children in a relaxed and open environment.
This individual attention from parents can make a significant
difference to children who lack confidence, helping them to
make friends and become more active in school activities.
• Increased involvement within the community
FAST brings communities together to focus on the learning
needs of local children enabling parents to create support
networks with those in similar circumstances to themselves.
2012
2013 Total
6
43
Children Reached
421
2,543
–
2,964
Parents Reached
130
1,534
–
1,664
FAST Team members trained
and successfully delivered
FAST groups
130
681
–
811
5
25
–
30
FASTWORKS Groups
*
2011
70*
119
Predicted by end of 2013
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For everyone
FAST facts
After taking part in FAST:
• 90% of parents have a stronger relationship with their child;
• 73% of parents are more involved in their child’s education; and
• Teachers report a 10% improvement in children’s English
and Maths.
Lewis, age 5
Bradford, West Yorkshire
FAST graduation date: December 2011
Lewis lives with his mum Becky and older brother Dillian. Dillian
has severe special needs and requires a significant amount of care.
Becky used to worry that she and Lewis didn’t spend enough
one-to-one time together. Lewis also had a lot of excess energy,
struggled to concentrate at school and would often behave
aggressively towards his family.
FAST transformed their relationship, and Lewis’ concentration
and behaviour at school dramatically improved.
“ Since FAST Lewis is much more
confident in class. His attendance
has improved* and his attainment
is on track. Lewis is now considered
a good role model for the rest of
his peers.”
Mrs Disney
School Director of Service Development
* Lewis’ attendance is currently 96.4%. The national average is 95%
60
Morrisons activity highlights
• Christmas Jumper Day – All colleagues were invited to take part
in our first festive Christmas jumper day to work by donating
£1 to Save the Children. Thousands of colleagues across the
country participated and raised a total of £100,000.
• Emergency response appeals – Morrisons customers continued
to support Save the Children’s emergency response in aid of the
hunger crisis in West Africa raising a total of £50,000 to reach
thousands of children with food, water and healthcare.
• Challenge events – Over 150 Morrisons colleagues took part
in National challenge events such as the London Marathon,
the Great North Run and the Royal Parks Half Marathon
including a range of their own challenges such as bike rides,
treks, golf days and skydives; raising over £100,000 in
sponsorship.
• Great British Cupcake Sale – Over 200 stores and sites signed
up to take part in this activity and over 40,000 cupcakes were
sold, raising over £39,000.
• Miles for Smiles – Encouraging colleagues to get fit and healthy
through sponsored walks or runs, participants needed to clock
up as many miles as possible over a four week period. Over
1,100 colleagues from over 200 sites registered to take part
and raised £32,000.
• Utterly Smiley – Linked to our Save the Children campaign
with Utterly Butterly, all colleagues were sent a Raise a Smile
cookie cutter and fundraising kit to encourage participation
to make and sell cookies in aid of Save the Children raising
a total of £10,000.
4.5m
raised to date for
Save the Children
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Eat Sleep Learn Play! (ESLP!)
We decided to extend our partnership with Save the Children,
aiming to create a greater impact on the valuable work they
do within local communities in the UK. We will be helping to
raise £2m for their ESLP! programme by the end of
January 2014.
Through ESLP!, we will support over 9,000 children and their
families living in poverty throughout the UK by providing basic
items such as cots, cookers and toys.
Eat: a cooker enables children and their families to have a hot,
healthy meal together.
Sleep: a bed gives a child a good night’s sleep so they can be alert
and able to learn at school.
Learn: books stimulate children’s minds, helping them to get ready
for school.
Play: toys enable children to have fun and encourage them to move
and develop.
“Our community programme gives
us a really positive platform to talk
to Members of Parliament with a
shared interest in social mobility
and early intervention. I’m proud
of the recognition we’ve started
to receive for a clearer, stronger
community investment focus.”
Noah, age 2
Keighley, West Yorkshire
When Noah and his Mum Natalie first moved into their
home they had nothing. Natalie survived on less than £25
a week and couldn’t afford basic essentials. Thanks to the
ESLP! programme, Save the Children were able to provide
the family with a crisis grant to supply them with a cooker.
“ All of us at Save the Children
are delighted to be working with
Morrisons for another year on
our ESLP! programme. Morrisons
have made an enormous difference
to the lives of some of the most
disadvantaged children in the
UK. I look forward to making our
partnership even bigger and better. ”
Tanya Steele
Director of Fundraising,
Save the Children
Guy Mason
Corporate Affairs
61
Governance
Governance
About our corporate
responsibility programme
Development
Our first corporate responsibility report was published after our
2006/7 financial year. During this period of strategic review for
the Morrisons Group the corporate responsibility programme
was more clearly defined after consultation with key stakeholders
including customers, colleagues and suppliers. The programme
was linked to a three year optimisation plan, up to 2010, which
determined strategy and identified material issues for Group
as a whole.
The three key areas of focus, for the corporate
responsibility programme were set out in
2007 as:
Environment
•Taking good care of our planet –
climate change, waste, sustainability.
Society
•Taking good care of our shoppers, our
colleagues and their communities.
Business
•Taking good care as we go about our
business – sourcing, supply, engagement.
Our 2008/9 Report was the first of three that were designed
under the ‘Today’ banner. The intention was to make the Report
accessible and engaging and was supported by linked branding
in our stores, in other corporate documents and online.
By 2009/10 the Programme reached a significant milestone
as we completed most of the original targets. Key performance
targets were reviewed by Directors on the Corporate
Responsibility Project Leadership Team during 2009 and revised
commitments and associated KPIs were established and
published. We reframed the document a ‘Review’ recognising
that it would not capture all of our activity and we introduced
more forward looking information.
Our 2011/12 Review took another step forward by including
more information and adopting a more formal style more closely
related to our business and brand strategy to reflect a growing
maturity on the programme. We took a significant step by
undertaking Assurance of the programme and the Review was
set against a recognised Assurance Standard AA1000AS (2008).
This process was independently conducted by Two Tomorrows.
62
This Review follows the same style and is again assured under
AA1000AS(2008). A copy of the Assurance Management Letter
from Two Tomorrows, summarising their findings can be found
on pages 66 and 67.
Essentially, whilst the style of our communication and our
reporting has changed, our priorities remain the same.
Governance and Performance
Best practice in responsible business performance and reporting
is constantly developing. Our current corporate responsibility
programme reflects both changes in the operation, scale and
development of the Morrisons Group and influencing economic,
social and environmental factors.
In 2011, leadership of the Programme was realigned to our
corporate senior management structure. Strategic development
and policy for corporate responsibility were placed within Group
Corporate Services.
Central commitments and KPIs are managed under the stewardship
of relevant Management Board Directors. Their leadership is
assessed alongside their wider performance as part of their
Professional Development Review.
Progress reports and approval for significant strategic developments
are presented to the Management Board. Progress and notification
of significant strategic developments are reported to the Corporate
Compliance and Responsibility Committee for review and
comment.
The Management Board is chaired by Chief Executive, Dalton
Philips, has detailed terms of reference and is responsible amongst
other matters for development and implementation of strategy
(subject to the overall supervision by the Main Board), financial
performance, reporting and control, risk management and the
development of corporate policies and procedures of the Group.
The Corporate Compliance and Responsibility Committee, is
chaired by Penny Hughes a Non-Executive Director and performs
an oversight, monitoring and advisory role for key areas of
corporate governance and development including health and
safety, environmental, competitive and ethical compliance and
corporate responsibility.
Fuller details of members of our Group and Governance structure
can be found in our 2012/13 Annual report and financial
statements.
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
2012/13 Financial Year – Board of Directors, Management Board
and Corporate Compliance and Responsibility Committee (CCR)
Board of Directors (left to right)
Sir Ian Gibson C
Johanna Waterous C
Nigel Robertson C
Philip Cox
Penny Hughes C
Richard Pennycook
Dalton Philips C
Key
Corporate Compliance and Responsibility Committee
C
Management Board (left to right)
Neal Austin
Trevor Strain
Mark Amsden C
Dalton Philips C
Richard Pennycook
Martyn Fletcher
Martyn Jones C
Terry Hartwell
Mark Harrison
Additional CCR members
Richard Taylor C
2013 CCR appointments after
the reporting period
Richard Gillingwater C
2013 Management Board appointments
after the reporting period
Casper Meijer
Nigel Robertson
Nick Collard
Emily Lawson
Retirements after the reporting period
Board of Directors
Nigel Robertson
Management Board
Richard Pennycook
See our Annual report and financial statements
Visit – morrisons.co.uk/corporate/ar2013
63
Governance
Stakeholder engagement
Stakeholder engagement is vital to
ensuring that our approach to sustainable
business is both relevant and effective.
It enables us to identify issues and
opportunities, respond to changing
needs, adhere to best practice and
reflect different views and feedback
on our business operation.
Communities
For greater social benefit, job creation needs to be rooted in the
locations where stores operate to reflect the community. We’ve
worked hard to ensure our recruitment supports applicants from
across the community and can up-skill people once they are part
of the business. We also recognise the importance of community
engagement and have developed a programme for better support
for local community good causes.
Customers
We get feedback through customer services, Insight and market
research, focus groups and panels, our website, correspondence
and social media.
Customers care about environmental and wider sustainability
issues. They want us to make it easier for them to be supportive
through their buying habits and without additional cost.
Employees
We continue to build our formal employee engagement with a
major annual survey as well as regular pulse surveys throughout
the year and individual performance development reviews.
We’ve already implemented a new suite of family friendly policies
and continually reassess and our employment terms and support
for colleagues.
Government and Regulators
We have regular dialogue, respond to consultations, support
initiatives and enter debate on business issues. Government policy
can be implemented with legislation, regulation and increasingly
sector specific voluntary agreements.
64
Investors
As well as direct comment and review of our business operation
from shareholders we also engage with institutional advisory
bodies and research analysts for corporate ESG performance.
Non Governmental Organisations (NGOs)
From industry associations, unions, campaign organisations to
charities we continually engage and work with NGO’s both
formally and informally. At a basic level we will respond though
correspondence. With more complex matters we may fully engage
with an NGO to work collaboratively to progress a particular issue.
Where requests are linked to our operational capability, policy or
strategy they will assessed in the most relevant part of the Group
and may be raised up to Management Board level.
Suppliers
We trade with companies all around the world and our challenge
is to ensure that their operation is aligned with our values, policy
and responsible, sustainable business practice. Through our
terms of trade, monitoring processes, technology, supply chain,
certification and auditing we work hard to ensure compliance.
Suppliers also require responsible and fair trading terms.
Through our contractual framework, adherence to regulation
and specific requirements such as the Groceries Supply Code
of Practice we work with our trading partners to ensure mutual
commercial growth.
Media
Media want access to information, comment on performance
and hold us accountable for our operation.
We have routine dialogue with the media and provide access and
information for broadcast, print and in social media. This is both
proactive and reactive and helps us to communicate with other
stakeholders and opinion formers.
We also utilise the media in wide variety of channels for views
and opinions about our business, the grocery sector and relevant
current social and environmental issues.
Email your comments and views to
[email protected]
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
Govt and Regulators
Suppliers want our
custom, a reliable trading
relationship and the
best price.
ors
Invest
Investors expect a good
return on their money; that
we grow, find opportunities
and mitigate risks.
Communities are where
our operations have the
most immediate impact.
They require us to be
a good neighbour and
bring employment
and investment.
Com
mu
niti
es
Employees want good
working conditions, job
security, satisfaction
and opportunities to
develop a career.
Emplo
yees
NG
Os
Non Governmental
Organisations ask us to
follow their advice, change
or adapt the way we operate.
rs
lie
pp
Su
Government and
Regulators set the rules
and regulations but also
require support to deliver
Government policy.
Customers want
quality, responsible
products at a fair price
with good service.
ers
m
o
t
Cus
65
Governance
Independent Assurance Statement
Scope and objectives
DNV Two Tomorrows Limited (DNV Two Tomorrows) has
undertaken independent assurance of the Morrisons Corporate
Responsibility Review (The Review) for the reporting period ending
3 February 2013.
The assurance process was conducted in accordance with
AA1000AS (2008). We were engaged to provide Type 2 moderate
level assurance, which covers evaluation of:
• adherence to the AA1000APS (2008) principles of inclusivity,
materiality and responsiveness (the Principles); and
• the reliability of specified Corporate Responsibility performance
information which for this report was agreed as: responsible
sourcing, palm oil, timber, fish, carbon/energy, water, waste,
and training.
Responsibilities of the Directors of Morrisons and of the
assurance providers
The Directors of Morrisons have sole responsibility for the
preparation of the Review. We were not involved in the preparation
of any part of the Review. We have no other contract with
Morrisons and this is the 2nd year that we have provided assurance.
Our statement represents our independent opinion and is intended
to inform all of Morrisons stakeholders. We adopt a balanced
approach towards all stakeholders.
Our team comprised Doug Farquhar, Rob Pearson, Judith Murphy,
Gareth Manning and David Keddie. Further information, including
individual competencies relating to the team can be found at:
www.twotomorrows.com
Basis of our opinion
A multi-disciplinary team of corporate responsibility and assurance
specialists performed work at Morrisons head office and three
further UK sites. Our work was designed to gather evidence with
the objective of providing moderate level assurance as defined
in AA1000AS (2008). We undertook the following activities:
• Review of the current Corporate Responsibility issues that could
affect Morrisons and are of interest to stakeholders;
• Review of Morrisons approach to stakeholder engagement
and recent outputs. This did not include direct engagement
with stakeholders;
• Review of information provided to us by Morrisons on its
reporting and management processes relating to the Principles;
• Interviews with eight selected Directors and senior managers
responsible for management of Corporate Responsibility issues
and review of selected evidence to support issues discussed.
These included an interview with the Chairman and Management
Board members. We were free to select interviewees;
66
• Site visits to review processes and systems for preparing site
level Corporate Responsibility data and implementation of the
Corporate Responsibility strategy. In addition to visiting the head
office to interview senior managers and review evidence for
data and claims, we selected three sites to cover the different
aspects of the business: Bridgewater logistics hub, Grimsby fish
processing plant and St Albans store. We were free to select
the sites to visit.
• Review of supporting evidence for key claims and data in the
report. Our checking processes were prioritised according to
materiality and we based our prioritisation on the materiality of
issues at a group level and the specified performance information
agreed as in scope.
• We also checked the targets identified by management as most
challenging: palm oil, carbon emissions reduction (30%), training,
skills development, motivated workforce reporting, timber,
pesticide usage (produce), ethical audit (working conditions),
water reduction, local community partnerships, absence,
enhancements to farm welfare policies, salt reduction, soya,
health and safety accident rates, seafood policy enhancement,
health and safety system, and zero store waste to landfill.
• Review of the processes for gathering and consolidating the
specified Corporate Responsibility performance information
and, for a sample, checking how the data was consolidated; and
• For data collated by external agencies, we checked that the data
provided are accurately included in the report, reviewed the
processes used by these agencies to collate data, but did not
check the actual calculations. This applies to all carbon data
collated by external agencies.
We used the AA1000 Accountability Principles Standard as criteria
to evaluate the nature of adherence to the principles of Inclusivity,
Materiality and Responsiveness and the Global Reporting Initiative
Quality of Information Principles as criteria for evaluating the
selected performance information.
Findings and opinion
We reviewed and provided feedback on drafts of the Review and
where necessary changes were made. On the basis of the work
undertaken, nothing came to our attention to suggest that the
Review does not properly describe Morrisons’ adherence to the
Principles or its performance.
In terms of reliability of the specified performance information,
nothing came to our attention to suggest that these data have not
been properly collated from information reported at operational
level, nor that the assumptions utilised were inappropriate. We are
not aware of any errors that would materially affect the Group data
in the areas in scope.
Observations and Recommendations
Without affecting our assurance opinion we also provide the
following observations and recommendations.
The Review is a fair reflection of Morrisons approach to Corporate
Responsibility and builds on previous Reviews to show how the
Company is developing its approach, key commitments and goals
which underpin the programme. The coverage of issues compared
to previous years continues to be enhanced, providing a thorough
account of progress for Review users.
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
We were encouraged that areas for improvement identified in
last year’s Review have been addressed, in particular the specific
information on the Corporate Responsibility challenges Morrisons
face. We were also encouraged by the engagement of the
Management Board in Corporate Responsibility issues and
acknowledge the improvements Morrisons have made following
the assurance statement provided in the previous Review,
particularly around the governance of the programme.
Given the focus Morrisons place on the business model of vertical
integration of the food supply chain, we recommend that future
Reviews give further consideration and balanced discussion of the
opportunities and challenges faced by Morrisons as it continues
to develop its approach to Corporate Responsibility.
Inclusivity concerns the participation of stakeholders in
developing and achieving an accountable and strategic
response to sustainability
• Morrisons use a range of approaches to stakeholder engagement
which are evident throughout the Review. Engagement in
issues such as fair working conditions and farming policies
are encouraging and demonstrate how the Company is using
a range of stakeholders to inform and involve in key business
decision making.
• We are pleased to see that our recommendations made in the
previous Review assurance statement have resulted in a clearer
process to ensure that a broader range of stakeholder views
are fed back to the Management Board and the Corporate
Compliance and Responsibility Committee. We recommend this
continues to be developed into a more formalised and systematic
approach to external stakeholder engagement to ensure that all
relevant stakeholders are considered adequately.
Material issues are those which are necessary
for stakeholders to make informed judgments
concerning Morrisons and its impacts
• We believe that the Review covers Morrisons material issues.
It is encouraging to see Morrisons is now making a stronger link
between the identification of material issues and perceived risk
and business priority. This is now part of an on-going process
at Management Board level. The outcome of this process is
reflected in the KPIs and commitments in the Review. We would
recommend that the issue identification process is communicated
in future reports for the benefit of readers.
• Morrisons have used the outcome of the process to prioritise and
allocate issue coverage in the Review, for example by reducing
coverage on community and charity engagement. We
recommend that this continues.
Responsiveness concerns the extent to which an
organisation responds to stakeholder issues
• It is encouraging to see the development in commitments and
KPIs from the previous Review and the achievements made
in a number of key KPIs. Notable additions this year are new
commitments around palm oil and timber sourcing. The Review
would benefit from a more detailed discussion around the future
challenges and developments, particularly where KPIs are proving
a challenge to be met. Prioritisation of the KPIs would also help
readers to understand focus areas.
• We are pleased to see that our recommendation to develop more
regular and formal reviews of Corporate Responsibility issues at
Management Board level has been taken forward. We observed
deeper senior management engagement in Corporate
Responsibility issues and a more in-depth understanding of the
opportunities and challenges that the Company faced during
the reported period.
• As Morrisons approach to Corporate Responsibility matures we
would like to see more open and engaging debate included in
future Reviews with regards to challenging issues the Company
has faced during the reporting period. It was observed that
Morrisons have made decisions which do not align with their
previously stated positions. Examples include permitting the
introduction of genetically-modified soya bean animal feed for
standard UK chicken production and importing fresh meat
products sourced outside of the UK for the company’s tertiary
brands, Hemsley’s and Market Deals. Although these are covered
briefly in the report, because of the importance of the issues and
how they relate to Morrisons vertically integrated business model
a more detailed discussion and disclosure is recommended. This
could show the range and depth of stakeholder concerns towards
each issue and how Morrisons has responded to each.
Performance Information
• Further to our recommendations in the previous Review we are
pleased to see a water reduction target and baseline has been
established this year. As with carbon, Morrisons have chosen to
work towards an absolute reduction rather than one based on
intensity. Given the vertical integrated model of Morrison’s food
supply we would recommend that future Reviews provide insight
into the challenges and opportunities that the Company identifies
as it works towards these goals.
• Morrisons is going through a process of improving data collection
systems and we noted a number of improvements from the data
checked in the previous Review. In the very limited number of
areas where Morrisons could not have complete certainty on
particular data, it was encouraging to see that the Company
consistently understated to ensure that Morrisons were not
over-reporting or misrepresenting data in their favour. It was also
encouraging to see that clarity over data boundaries had been
improved from the previous Review.
• Currently data collection in many areas of the Company is largely
a manual process, with information provided from a variety of
different sources using a range of collection techniques. We
recommend improving the method of data collection to improve
accuracy and support a move towards real time reporting.
DNV Two Tomorrows Limited
London
May 2013
Doug Farquhar
Director
DNV Two Tomorrows Limited is part of DNV, a global provider
of services for managing risk, helping customers to safely and
responsibly improve their business performance.
www.twotomorrows.com
67
Governance
Commitments and associated KPIs
Friendly people
Commitments and
associated KPIs
Progress update
Status Future challenges
and/or development
Deliver sector leading training and
skills development to our people.
Approximately 750,000* training days delivered in 2012.
Ongoing
Independent verification of
‘sector leading training’.
Recognition across the year including National Workplace Talent and Skills
Award 2012 at Business in the Community’s Awards for Excellence.
* 602,000 of these training days are the first three months
for new retail colleagues undertaking in-house training.
Develop craft skills to further
establish our Market Street and
fresh food credentials.
232 butcher and bakery apprentices graduated in 2012. Craft skills
masterclasses rolled out to cover Market Street specialists.
Ongoing
Around 300 apprenticeships
planned for 2013 and a wider
programme of development for
other Market Street specialists.
Over 15,000 colleagues to receive
Apprenticeship training in 2012/13
(NVQ Level 2 & 3)
11,000 colleagues graduated during the year at Level 2 Intermediate
Apprenticeship and a further 6,000 to receive Advanced Level 3 QCF
Apprenticeship training in 2013.
Ongoing
Communicating the benefit of
providing apprenticeship
training for colleagues and its
role in up-skilling and longer
term job creation.
Colleague retention
Build colleague stability and retention
through the application of our Values.
Labour turnover 15.0% (down from 16.2%).
Ongoing
Figures remain stable but would
benefit from established trend
monitoring to consistent criteria
as our systems become more
integrated.
Employee stability 87% (no movement).
Absence 3.7% (increased from 3.3%).
Sickness 3.5% (NEW published figure).
Increase female representation in our
senior management group from 13% to
30% by 2014.
Increased the number of females in senior roles from 20% in 2011 to 22%
in 2012.
Ongoing
Challenge to encourage strong
candidates for promotion and
adapting working arrangements
to support.
Leadership
Develop M Futures (graduates) and
our Advanced Leadership Programme
(Senior Management).
74 graduates recruited to the M Futures programme and 125 recruited
to the Senior Management Advanced Leadership Programme.
Achieved
122 graduates to be recruited
in 2013. Advanced Leadership
Programme established and
to be extended.
Values development
The ‘Morrisons Way’ (leadership
behaviours) launched in 2012 will be
incorporated into our Coaching for
Performance training.
Morrisons Way incorporated into core leadership training programmes.
Achieved
Wider recognition of the
Morrisons Way outside the
Senior Management Team.
Motivated workforce
Monitor, measure and improve
colleague conditions and workplace
experience across the Group.
Regular Pulse Survey incorporated into business operation.
Ongoing
Data captured is providing
trend data which is used as
management information to
target specific improvement
activity.
To be an employer of choice
Updated and improved workforce terms and conditions including a suite of
‘family friendly’ policies. Developments driven from the Climate Survey. In
2012 we increased extra hours at checkouts following colleague feedback.
Ongoing
Improving colleague
engagement through more
support for managers through
2013 in their delivery of
colleagues’ personal
development reviews.
Continually improving customer
experience and service
Develop HOT service criteria,
monitoring and measuring performance.
HOT service measurement developed and used as a management control
within the business.
Achieved
Health and safety
Convert H&S management system
in line with BSOHSAS 18001:2001.
Moved management system in line with BSOHSAS 18001:2001 standard.
Achieved
Better systems support more
increased accuracy and real
time reporting.
Reduce accident rates by 20% and
reported accidents by 30% by the end
of 2013 (2011 baseline).
Aim to achieve targets by end of 2013.
Ongoing
Improvements to information
systems and trend analysis to
better target our resources.
The results from our last employee engagement survey show that engagement
levels across Morrisons have improved by 6.18% from the 2012 initial Climate
Survey.
*This data was captured in Jan 2013 as part of our series of Pulse surveys.
Green shaded means this is a Government Health Responsibility pledge
68
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
Friendly people
Commitments and
associated KPIs
Progress update
and/or development
Public Health Responsibility Deal – Physical Activity
Community
“ We will use our local presence to get
more children and adults more active,
more often including engaging
communities in planning and delivery.”
Our Let’s Grow programme aims to inspire children to get more active,
supporting the development of gardening clubs and growing schemes
at school.
Physical activity guidelines
“ We will contribute to the
communication and promotion of the
Chief Medical Officer’s revised physical
activity guidelines.”
In 2012/13 we launched a new money saving website for colleagues.
This includes a dedicated health portal which promotes the health benefits
of regular physical activity. In addition it features:
• Discounts on gym membership and fitness equipment;
• How to find a local sports club;
• Workouts of the month;
• Nutrition advice;
• Information about common lifestyle diseases; and
• Advice on smoking cessation.
Ongoing
Active travel
“ We will promote and support more
active travel (walking and cycling).
We will set measurable targets for
this health enhancing behaviour.”
The process of developing and implementing travel plans across our estate
is ongoing. Progress will be reviewed on an annual basis with feedback
from colleagues and relevant local authorities.
Ongoing
Effective measurement
processes that work across
the business.
Physical activity in the workplace
“We will increase physical activity in the
workplace, for example through
modifying the environment, promoting
workplace champions and removing
barriers to physical activity during the
working day.”
We reported in our 2011/12 Corporate Responsibility Review that we were
looking to expand the opportunities available to colleagues to increase
physical activity and last year we launched the “Miles for Smiles”
fitness challenge.
Ongoing
Miles for Smiles will be back
in 2013, bigger and better than
in 2012. Our activity on this
pledge is showcased on the
Department of Health website.
Ongoing
Increasing promotion and
activity through the scheme.
Ongoing
Since the programme began in 2008 we have now provided over £14m
worth of gardening equipment and seeds to over 28,000 schools, allowing
5m children in the UK to get stuck in to gardening, learn more about where
food comes from and enjoy a health enhancing activity.
During August 2012 colleagues from across the business were encouraged
to see how far they could walk, run, swim and cycle with their progress
tracked on a pedometer.
Over 1,100 colleagues took part across the Company covering more than
66,000 miles over the four week period. And by working with Save the
Children, Miles for Smiles did not just prove to be a fun way to get more
active, it also helped to raise £32,000 for our charity partner.
Inclusion
“ We will tackle the barriers to
participation in physical activity faced
by some of the most inactive groups in
society.”
More than 6,000 people are now signed up to the Morrisons Plus retirement
club, which helps our former colleagues stay connected to the Company and
enjoy an active retirement. This is an increase on the 5,000 we reported in
last year’s Corporate Responsibility Review.
In addition to retaining certain staff benefits, Morrisons Plus provides
opportunities for former colleagues to return to work during busy seasonal
periods and take part in volunteering.
Public Health Responsibility Deal – Health at work
Chronic conditions guides
“ We will embed the principles of the
chronic conditions guides within
HR procedures to ensure that those
with chronic conditions at work are
managed in the best way possible
with reasonable flexibilities and
workplace adjustments.”
We have incorporated the principles of the chronic conditions guides into our
HR procedures.
Achieved
We have our own in-house occupational health team which offers support to
colleagues across the business with a wide range of health issues and chronic
conditions.
Colleagues with long term conditions are encouraged to seek occupational
health advice and where sickness absence is unavoidable, they are supported
by regular contact with their HR manager and an occupational health nurse.
Our occupational health team works closely with HR managers and others
to facilitate a return to appropriate duties sympathetic to the individual’s
medical problems. Return to work may be assisted by reduced hours
(increased as appropriate), redeployment to alternative duties and the
provision of aids or modification of equipment and workstations.
We also operate a physiotherapy service at a number of our manufacturing
and logistics sites where colleagues receive on the spot diagnosis and
treatment.
69
Governance
Commitments and associated KPIs – continued
Friendly people
Commitments and
associated KPIs
Progress update
and/or development
Occupational health standards
“ We will use only occupational
health services which meet the
new occupational health standards
and which aim to be accredited
by 2012/13.”
We are confident that our in-house occupational health service meets
SEQOHS standards. We aspire to apply for and gain this accreditation
at the most appropriate time for the business and in the interim will
continue to be guided by the SEQOHS standards in current provision
and enhancements going forward.
Ongoing
Health and wellbeing report
“ We will include a section on the health
and wellbeing of employees within
annual reports and/or website.
This should include staff sickness
absence rate.”
Our 2012/13 Corporate Responsibility Review includes details on the health
and wellbeing of colleagues and contains our current absence rate (3.7%) and
our staff sickness absence rate (3.5%).
Achieved
Healthier staff restaurants
“ We will implement some basic
measures for encouraging healthier
staff restaurants/ vending outlets/
buffets for staff.”
In 2012 we launched a new menu for our staff canteens which extends the
range of healthy choices. New recipes include guidance for cooks to help
produce nutritionally balanced dishes. For example, adding salt is not
recommended and colleagues are encouraged to minimise the use of
cooking oil.
Achieved
To help our colleagues make informed choices about what they eat, our staff
canteens now display calories at point of choice, which includes the price list
and menu boards. Healthier options will be clearly signposted not only with
calorie content, but nutritional icons explaining what makes the dishes
healthier.
Our activity on this pledge is showcased on the Department of Health
website.
70
Accreditation required.
Developing new menu
options and encouraging
healthy eating.
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
Making great food
Commitments and
associated KPIs
Progress update
and/or development
Extend our 100% British ranges
Maintained 100% British fresh Morrisons own branded meat and poultry
and in season produce (95% across whole fresh offering excluding Hemsley’s
and Market Deals brands).
Ongoing
Buy around £310m of fruit and vegetables from British farmers annually.
Maintenance of British
Morrisons branded fresh
meat and poultry.
Use Category Plans to identify
opportunities to further
maximise our British buying
performance.
All fresh eggs are supplied by British farms.
All fresh milk is sourced from British farms.
Launched traditional beef range in stores from British breeds.
Hosted conference to the farming industry entitled ‘Keep Britain Farming’
to share best practice and exchange information.
Establish applied farm research
programme to support British farming.
Research completed and published in 2012:
Ongoing
Projects under development:
• Hen health management
• Sustainable soya usage
in animal production
• Carbon footprinting
in farming
• Market risk management
Chicken
• Environmental enrichment.
• Wet litter management.
Dairy
• Dairy cow housing.
• Neospora farmers guide.
Farm efficiency
• Energy in farming.
Enhance farm animal welfare policies
and auditing processes by 2013.
Enhanced policy work completed but will remain an ongoing commitment.
All our own Morrisons branded fresh products must be Red Tractor farm
assured as a minimum standard.
All imported fresh products for Hemsley’s and Market Deals brands must
be produced under an independently audited, Morrisons approved, farm
assurance scheme.
Ongoing
We are developing welfare
outcome measures across all
intensive livestock systems
to more frequently monitor
animal wellbeing.
All our Morrisons branded fresh chicken has enhanced welfare in terms
of natural light and environmental enrichment.
All our Morrisons branded fresh meat is stunned before slaughter.
We were the first major food retailer to install CCTV to enable careful
welfare monitoring at every stage of the process.
71
Governance
Making great food
Commitments and
associated KPIs
Progress update
and/or development
Palm oil
By 1 Jan 2015 utilise RSPO certified
fully segregated palm across all own
brand products.
Own manufactured products are now supporting RSPO supply chain systems
(GreenPalm certificates covering non-segregated palm).
Ongoing
Ensuring suppliers are making
progress to support a switch
to sustainable palm oil through
effective monitoring.
Soya
Review utilisation of RTRS
(or equivalent) sourced soya in own
brand products and in animal feed.
We are members the Round Table on Responsible Soy (RTRS) and continue
to support a potential move to a certified responsible supply chain system.
Ongoing
Our view still remains that there
is no clear path on utilising
responsibly sourced soya.
Fish
Responsible seafood policies to apply
across all own brand ranges by 2013.
Achieved initial detailed policy review but work will remain ongoing.
Monitoring third party suppliers to ensure compliance of 2013 commitment
to source palm oil through an RSPO certified supply chain.
As 80% of soya used in the UK is in farming animal feed, we are conducting
research into the sustainable supply of soya within animal feed and will be
completed in 2014.
Concerns remain over the cost
to suppliers and availability
on the market. Time bound
commitment to RTRS or
equivalent cannot yet be made.
Ongoing
New species that we stock now has to meet a set of conditions for an
enhanced policy and decision tree process before it goes into our stores.
This includes stock levels, fisheries management and where/how the fish
is caught.
Re-establish sourcing
credentials and more effective
communication with customers.
Building responsible sourcing
into our new fish manufacturing
supply chain.
We are the only British supermarket to own our own seafood
manufacturing site.
Support and utilisation of the
Sustainable Seafood Coalition
Labelling Code once launched.
We are supporting fully documented fishery schemes, which are seen as
a valuable tool to address discards and improve stock recovery.
Morrisons is funding a fishery improvement project in Southeast Asia,
linked to work being supported by the UN.
We are supporting research by Bangor University into the sustainability
of scallop fishing in the English Channel.
Timber
Review relevant categories to find
opportunities to increase FSC
(or equivalent) coverage.
NEW timber sourcing policy states:
NEW
Suppliers must be able to
demonstrate compliance with
our policy and the exercise of
due diligence under the EU
Timber Regulation 2013.
Complete
Best practice in auditing
and ongoing management
and refinement.
Revised
We will be implementing
recommendations from
the review in 2013.
Any wood and wood derived products which are already FSC certified must
remain FSC certified.
By 1 March 2013 all wood and wood derived products being contracted for
future sale must be FSC certified or from an approved alternative offering an
equivalent means of verification if FSC is not available in sufficient volumes.
Original target – 500 own brand
suppliers to achieve Morrisons ‘Gold
(Value Added) Standard’ by 2013.
Morrisons Food Manufacturing Standard now fully established.
Morrisons Formulated Product Manufacturing Standard now fully established.
UPDATE: Now superseded by
overarching redevelopment
programme for all own brand
suppliers.
Supply chain working conditions.
600 detailed site audits for Morrisons
Ethical Trading Code (aligned with the
ETI Base Code) compliance to be
completed by 2013 – then reset.
Programme in 2012 managed predominantly through Fair Working
Conditions. We undertook an independent review of our programme
in 2012 through Alan Roberts/Aresa Limited (former Non-Executive
Director of the Ethical Trade Initiative).
72
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
Making great food
Commitments and
associated KPIs
Progress update
and/or development
Continually developing our approach to
nutrition and formulation of products.
We reported fully on our commitment to support the Department of Health’s
Public Health Responsibility Deal in April 2012.
Ongoing
Providing customers with clear,
consistent advice.
The internal nutrition policy for making 5-a-day claims on composite foods
(incorporating industry guidelines for 5-a-day claims, which were developed
by the IGD) was revised and reissued in July 2012.
Reporting to the Department
of Health on our work in 2012
and work proposed for 2013.
Continue to listen to customer
feedback and develop improved
nutrition policies.
In August we issued a nutrition policy for kids’ products, which was vetted
by the British Nutrition Foundation ensuring that products in the new kids’
brand, expected to launch late 2013, are nutritionally responsible.
To meet the Responsibility
Deal salt reduction targets
by the end of 2013.
Store cafés continue to display calories on menus and shelf edge labels.
We continued to reformulate popular products to reduce nutrients of public
health concern.
In September 2012 we issued a press release stating that we would move
from displaying GDAs on front of pack to using a hybrid traffic light system,
if agreement could be reached on the nutritional criteria for the scheme.
We are involved in discussions with the Department of Health, NGOs,
retailers and manufacturers regarding development of the scheme.
Revive and further improve healthy
product range in line with the re-launch
of our chilled meal solutions.
Nutritional criteria were developed as the basis for our healthier
product range.
Ongoing
Promoting our ‘NuMe’ range
to customers and encouraging
healthy choices.
Provide calorie information on
our website.
We now provide calorie information per serving, as well as fat, saturated fat,
sugar, salt and fibre per serving for nearly 1,100 Market Street lines across
all categories except produce and plain meat and fish.
Ongoing
Now part of a wider programme
linked to our pledges under
the Government Health
Responsibility Deal.
Throughout the year we have added more lines, mainly for Deli, Butchery
and Fishmongers sections in addition to Fresh to go, Oven Fresh, Bakery
and Cake Shop.
Updated information on Morrisons website now include seasonal products
and new lines on a regular basis in response to customer demand.
73
Governance
Making great food
Commitments and
associated KPIs
Progress update
and/or development
Public Health Responsibility Deal – Food
Out of home calorie labeling
“ We will provide calorie information for
food and non alcoholic drink for our
customers in out of home settings
from 1 September 2011 in accordance
with the principles for calorie labeling
agreed by the Responsibility Deal.”
Morrisons Customer Cafés display calories for hot foods on the menu and
on shelf edge tickets for cakes, sandwiches, cold drinks and salads.
Salt reduction
“ We commit to the salt targets for the
end of 2012 agreed by the
Responsibility Deal, which collectively
will deliver a further 15 per cent
reduction on 2010 targets.”
We have worked to reduce salt in our own brand products. We reported to
the Department of Health in April 2013, that we had met 76% of the targets.
Achieved
We plan to introduce calorie
labelling for hot drinks.
Ongoing
Addressing the technological
challenges inherent in
salt reduction without
compromising quality
or safety.
In addition, we now have calorie information on the following areas
of Market Street: oven fresh, sandwiches, salad pots, pizzas and
granola breakfast pots.
Our progress was constrained by a number of technical challenges inherent
in salt reduction. To improve our understanding of the difficulties involved,
Morrisons was one of several companies who funded research by Leatherhead
Food Research.
The report identified eight main categories where meeting the targets will
be challenging. It can be accessed via:
www.leatherheadfood.com/salt-reduction-report
Trans fats
“ We have already removed, or will
remove, artificial trans fats from
our products by the end of 2011.”
Morrisons removed all artificial trans fats from own brand products in 2008.
Achieved
Ongoing monitoring.
Calorie Reduction
“ We will support and enable our
customers to eat and drink fewer
calories through actions such as
product/menu reformulation,
reviewing portion sizes, education and
information, and actions to shift the
marketing mix towards lower calorie
options. We will monitor and report
on our actions on an annual basis.”
NEW. We have rolled out a new health and wellness brand – NuMe – which
features over 200 new lines and extends our healthier offer across chilled,
frozen and ambient categories.
NEW
We recognise this is an
important issue. We will
engage with our stakeholders,
support developments and
take careful note of customer
opinion.
Fruit & Vegetables
“ We will do more to create a positive
environment that supports and enables
people to increase their consumption
of fruit and vegetables.”
NEW. We are revamping the produce department in more of our stores to
encourage customers to increase their consumption of fruit and vegetables.
This includes new layouts, extended choice and exciting innovations.
Our experience to date indicates that this could increase sales of fruit
and vegetables by an average of 14% in Fresh Format stores, helping
customers get closer to their 5-a-day.
NEW
Rolling out Fresh Format
stores across the estate.
The eye-catching brand design features clear nutritional labelling to help
shoppers navigate for healthier options. The packaging includes bold calorie
and nutrition icons in order to communicate quickly and simply at point of
purchase the calorie content per serving, and other nutritional benefits,
including low salt, high fibre and low saturated fat and, 5-a-day claims.
Our activity on this pledge is showcased on the Department of Health
website.
74
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
Making great food
Commitments and
associated KPIs
Progress update
and/or development
Public Health Responsibility Deal – Alcohol
Alcohol labelling
“ We will ensure that over 80% of
products on shelf (by December 2013)
will have labels with clear unit content,
NHS drinking guidelines and a warning
about drinking while pregnant.”
All Morrisons own brand alcohol products already have labels that clearly
display:
• unit alcohol content;
• NHS guidelines;
• warning about drinking when pregnant;
• responsibility statement; and
• drinkaware.co.uk.
Achieved
Awareness of alcohol units, calories
& other information in the Off-trade
“ We will provide simple and consistent
information as appropriate in the
off-trade (supermarkets and
off-licences) as well as other marketing
channels (e.g. in-store magazines), to
raise awareness of the units, calorie
content of alcoholic drinks, NHS
lower-risk drinking guidelines, and the
health harms associated with
exceeding the guidelines.”
We have refreshed our policy on the responsible sale and promotion of
alcohol, which reinforces our commitment to raising customer awareness.
This includes providing:
• clear information on product labels (for example units and NHS guidelines);
• details of Drinkaware on relevant products, advertising, web pages and
in-store signage;
• guidance in our customer magazine to help customers keep track of their
alcohol consumption (e.g. unit content and calorie content of standard
alcohol measures, such as a glass of wine or pint of beer).
Achieved
Tackling Under-Age Alcohol Sales
We commit to ensuring effective action
is taken in all premises to reduce and
prevent under-age sales of alcohol
(primarily through rigorous application
of Challenge 21 and Challenge 25).
We operate a strict “Challenge 25” policy to prevent under-age sales
of alcohol. Our compliance rate as measured by independent simulated
test purchases has increased from 76% in September 2011 to 88% in
December 2012.
Ongoing
Support for Drinkaware
We commit to maintaining the levels
of financial support and in-kind funding
for Drinkaware and the “Why let the
Good times go bad?” campaign as set
out in the Memoranda of Understanding
between Industry, Government and
Drinkaware.
We have maintained levels of direct financial support for Drinkaware of
£250,000 per annum. This is supplemented by in-kind support equivalent
to over £1m annually.
Advertising and marketing alcohol
“ We commit to further action on
advertising and marketing, namely
the development of a new sponsorship
code requiring the promotion of
responsible drinking, not putting
alcohol adverts on outdoor poster
sites within 100 metres of schools
and adhering to the Drinkaware
brand guidelines to ensure clear and
consistent usage.”
Morrisons abides by industry codes of practice on advertising and marketing
of alcohol. This includes the Fifth Edition of the Portman Group Code of
Practice on the Responsible Naming, Packaging and Promotion of Alcoholic
Drinks, which was announced in November 2012.
Alcohol Unit Reduction
“ We will collectively with the industry
remove 1bn units of alcohol sold
annually from the market by Dec
2015 principally through improving
consumer choice of lower alcohol
products.”
We want to help customers who wish to reduce their alcohol intake and
introduced a number of own brand lower alcohol products in the past year:
• own brand low alcohol cider (1% ABV);
• own brand beer (2% ABV); and
• own brand lager (2% ABV).
Community actions to tackle alcohol
harms
“ In local communities we will provide
support for schemes appropriate for
local areas that wish to use them to
address issues around social and health
harms and will act together to improve
joined up working between associated
schemes.”
During the year we participated in six Community Alcohol Partnerships
(CAPs) although by the end of 2012/13 this had fallen to three due to closure
and consolidation. Morrisons has committed to assistance on a further four
CAPs and we also sit on the CAP Advisory Board.
Keep under review to maintain
best industry practice.
This is an industry-leading pass rate, according to Serve Legal, the specialist
company that monitors our performance and that of other major retailers.
Ongoing
In-kind support includes the promotion of the Drinkaware website, logo and/
or messaging on:
• all own brand product labels;
• certain in-store marketing such as shelf-edge labels and hanging boards;
• relevant pages of the Morrisons website;
• every editorial page of our customer magazine which includes alcohol; and
• all Morrisons advertising that features alcohol.
Ongoing
Our advertising partners adopt the Outdoor Media Centre’s Standard of Best
Practice, which commits to not displaying alcohol advertising on static panels
located within a 100 metre radius of schools.
To further expand our choice
of lower alcohol alternatives
we are planning to introduce
own brand low alcohol beer
in 2013/14.
Ongoing
CAPs aim to tackle public underage drinking through co-operation between
alcohol retailers and local stakeholders, such as Trading Standards, police,
local authority licensing teams, schools and health networks.
Our stores have provided trainers and materials for stand alone training
sessions as well as extending an invitation to local businesses to attend
these events.
75
Governance
Affordable
Commitments and
associated KPIs
Progress update
and/or development
Food Waste – Great Taste Less Waste
campaign.
In store food waste communications refreshed in new and refurbished stores.
Ongoing
Packaging – Reduction of the carbon
impact of packaging by 10% by the end
of 2012 (2009 baseline) – under the
Courtauld II Commitment.
Members of WRAP’s Food Waste Redistribution group, reporting to the
Secretary of State to develop practical industry wide guidance on
redistribution.
We reported our progress to WRAP in 2011/12 which was better than their
collective target of 10% reduction. We appear on target to successfully meet
the closing Courtauld II packaging target based on our 2012/13 figures.
Reviving food waste
communications to customers.
Trials in two stores with
community group FoodCycle
to redistribute potential food
waste in 2013.
Achieved
Across the sector primary
packaging is the greatest
reduction challenge because
of ongoing optimisation for
a number of years.
Support for the Courtauld III
Commitment will require further
absolute reduction.
Ongoing carrier bag reduction
year-on-year.
Overall single use carrier bag usage reduced by 3.8% (year-on-year).
Achieved
Continual challenge to reduce
numbers when the business
continues to expand.
Charging for bags
We will report online during 2012
specific details of bag sales in Wales.
Figures reported online at www.morrisons.co.uk/corporate
Achieved
Continued reporting online as
required under the Single Use
Carrier Bag Regulations.
Zero waste direct to landfill from
stores by 2013.
Up to 98.31% diverted from landfill from stores.
Ongoing
Challenge to divert remaining
1.7% by end of 2013.
Zero waste direct to landfill
from manufacturing by 2016.
NEW target
NEW
30% absolute reduction in carbon
emissions by 2020 (2005 baseline).
19.3% reduction.
Ongoing
This is a very challenging target
because of its ‘absolute’
requirement and our continued
significant expansion.
Assessment of water
management in our wider
supply chain.
Reduction figure from 2005 to 2012 is 309,240tCO2e.
In the year we have reduced by 69,313tCO2e equivalent to 5.1% in year
reduction.
Reduce water cost by 10% in 2012/13
(compared to 2011/12).
Achieved. Now looking at a longer term commitment and potential proactive
commitment to drive best practice in our wider supply chain.
Achieved
Reduce water consumption by 20%
(absolute) by 2020 (2012 baseline).
NEW target
NEW
76
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
For everyone
Commitments and
associated KPIs
Progress update
and/or development
Develop Let’s Grow as a vehicle
to engage young people with fresh
food, supported through education.
£14m worth of equipment donated (gross figure, £10.3m excluding VAT).
Ongoing
Over 13,900 schools placed Let’s Grow orders, with nearly 2,000 new
schools registered.
Relaunch of Let’s Grow
and Cook.
Further integration of Let’s
Grow into the local community.
The amount of Let’s Grow vouchers redeemed against those issued
at till increasing by 4.6m in comparison to 2011 activity.
Engagement with local community group ‘Incredible Edible.’
Greater encouragement for stores to
become more involved with Let’s Grow.
Expanded in-store lesson plans, hundreds of schools have now taken part
in visits.
Ongoing
Development of an educational
website focussing on in-store
skilled colleagues and what
happens to food at stores.
Corporate charity partnership
with Save the Children aiming to
raise £4m by end of 2012.
£4.5m raised.
Achieved
Continue to work with Save the
Children and engage customers
and colleagues to support their
initiative Eat, Sleep, Learn, Play!
Refresh current local community
strategy so engagement better
supports needs of local people.
Successful trial of new style community boards.
NEW
Full roll out of new style
community boards in 2013/14.
Effective community engagement
through stores Community
Champions
NEW – Store ‘Community Champions’ established during 2013.
NEW
Compiled by
Hilmore House, Gain Lane
Bradford BD3 7DL
Photography
Richard Moran
www.richardmoran.co.uk
Telephone: 011 3256 5370
Design
Salterbaxter
www.salterbaxter.com
Telephone: 020 7229 5720
Printing
Pureprint
The Annual report and financial
statements, the Annual review and
summary financial statements in both
paper and HTML format, and the
Corporate responsibility review were
designed and produced by Salterbaxter.
Paper stock:
This report is printed on Amadeus Offset
uncoated, a 100% recycled paper.
Amadeus Offset is manufactured to the
certified environmental management
system ISO 14001.
77
Information at your fingertips
Corporate
Consumer
Our website, www.morrisons.co.uk,
allows you to learn more about
Morrisons.
Offers
• Latest promotions
• Specific product offerings
• Press releases/marketing
• Sign up for our latest offers by email
Market Street
More about our unique in-store offering,
along with video presentations of where
our food comes from and how to buy,
cook and present it. You can now find
nutrition information for Market Street
on our website.
Our suppliers
Read about what food is produced near
your home and explore our seasonal
calendar to see which foods are fresh
at different times of the year.
Let’s Grow
Information about our Let’s Grow
scheme, including how to register, facts,
how it works and teaching resources.
Kiddicare
See our range of baby and toddler
products and order online at
www.kiddicare.com
Food and drink
Information about our food ranges,
healthy eating and mouth watering
recipes along with ideas of what drink
goes well with each recipe.
Family life
From entertainment to bringing up baby
and looking after your pets. View our
current and archived magazine and read
our handy health information for the
whole family.
Hilmore House, Gain Lane
Bradford BD3 7DL
Telephone: 0845 611 5000
Visit our website: www.morrisons.co.uk
Our corporate website,
www.morrisons.co.uk/corporate,
has the following sections.
Work with Morrisons
Career opportunities and information
about working for Morrisons. For our
dedicated recruitment website, go to
www.iwantafreshstart.com
Media centre
Latest releases about the growing estate
of Morrisons, along with promotions and
product news.
Corporate responsibility
Here you can find out about our corporate
responsibility ethos, including how we
take good care of our environment,
society and how we go about business.
www.morrisons.co.uk/cr
Investors
User-friendly
Presentations, announcements and
financial reports can be quickly and easily
downloaded or viewed on-screen as
PDFs. You can navigate around the
Annual report and financial statements
2012/13 on-screen, viewing only the
parts you want to, at
www.morrisons.co.uk/corporate/ar2013
Shareholder information
Other relevant shareholder information
is available, for example share price
history, dividends, financial calendar
and AGM minutes.
Electronic communications
Electronic communications (eComms)
is the fastest and most environmentally
friendly way to communicate with our
shareholders.
Instead of receiving paper copies of the
annual and interim financial results,
notices of shareholder meetings and
other shareholder documents, you will
receive an email to let you know this
information is available on our website.
Visiting our website to obtain our results
reduces our environmental impact by
saving on paper and also reduces our
print and distribution costs.
Sign up to eComms on our website at
www.morrisons.co.uk/corporate
and follow the investor eComms link.
About Morrisons
You will find information about the
Group, its operations, strategy and
structure, and past financial information.

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