Kingfisher : Responsible Business data collection methodology 2022/23

Responsible Business

Data Collection

Methodology

2022/23

1	Kingfisher Responsible Business Data Collection Methodology 2022/23	About this	Our approach to	Colleagues	Planet:	Planet:	Customers	Communities	Fundamentals
		document	data collection		climate change	Forest Positive

About this document

This document explains our methodology for collecting and calculating data that is reported in our annual Responsible Business Report; additional notes on the scope of our data are included in the Performance Data Appendix of our Responsible Business Report (both are available to download at www.kingfisher.com/responsible-business).

Contents

1. Our approach to data collection
2. Our data collection detail

1. Colleagues: We will be a more inclusive company

1. Employee diversity

1. Employee turnover
2. Employee training
3. Planet: We will help tackle climate change

5 Property

1. Haulage - dedicated store and home delivery fleet

1. Scope 3 reporting

1. Planet: We will become Forest Positive

1. Wood and paper in products
2. Paper used in catalogues (GNFR)
3. Customers: We will help make greener, healthier homes affordable

1. Sustainable Home Products
2. Sustainable materials: Peat
3. Communities: We will fight to fix bad housing

1. Community investment - how we contribute

1. Community investment - value of employee and customer giving

1. Fundamentals: Employee safety

1. Employee accidents
2. Fundamentals: Responsible sourcing

1. Supplier assessments and site grades

1. Fundamentals: Waste, recycling and water

1. Landfill and recycled waste

2	Kingfisher Responsible Business Data Collection Methodology 2022/23	About this	Our approach to	Colleagues	Planet:	Planet:	Customers	Communities	Fundamentals
		document	data collection		climate change	Forest Positive

Our approach to data collection

We have two questionnaires to track progress on sustainability:

• Responsible Business Data Questionnaire to monitor KPIs and data trends. This is completed on an annual basis by relevant Global functions and includes data from our markets.
• Responsible Business Targets Questionnaire to monitor progress against targets. This is completed on an annual basis by relevant Global functions and includes data from our markets.

Data responsibilities and sign-off

The Group Responsible Business reporting team is responsible for submitting the data and ensuring that appropriate processes and controls are in place to monitor and report progress against our Responsible Business KPIs and targets.

Assurance

External

DNV provided independent assurance of selected aspects of our 2022/23 data. Their assurance statement is available to download at www.kingfisher.com/responsible- business. The purpose of the engagement is to provide limited assurance over the

accuracy, completeness and integrity of the Responsible Business data reported. The statement provides details on the scope of the assurance engagement. The assurance results are formally reported to the Group Responsible Business reporting team

and representatives from the responsible Global functions, in order to agree any data amendments prior to publication.

Internal

We have a comprehensive internal review process of our data. The Head Office review process provides an overall sense check of the data. The process is co-ordinated by sustainability consultancy Bioregional who works alongside our in-house and other third-party experts to review data.

Scope of data

We report on an 'operational control' basis, meaning that the data covers Kingfisher's markets where we have the full authority to introduce and implement operating policies.

In addition, relevant data is collected from our Global functions, such as Kingfisher IT and Offer & Sourcing. Our third-party sourcing offices in Brazil and India only report data on suppliers and partners, as other areas are out of scope.

Businesses are included in our report if they have been owned for the full financial year, to allow sufficient time to implement data collection processes and systems. In cases where we sell a subsidiary or joint venture, our approach is to exclude its performance in the year of sale and to restate the data from prior years, to enable a comparison of trends over time. During 2020, we sold Castorama Russia; we have therefore re-baselined our data from 2016/17 onwards, to exclude all past data from this operating company. The one reporting area where Castorama Russia is still included in previous years is the supplier data as it was not possible to remove it from this data set.

The detailed notes on data scope for each reporting area are presented in 'Our data collection detail' section, page 3.

Methodology

We restate prior year data if we identify any material errors or if we make significant changes to our data collection methodology or reporting criteria. Our materiality threshold is 5%, although we will assess any errors in the full context and, if appropriate, we may restate data if it falls under this threshold. We indicate any amendments to prior year data in the notes in the Performance Data Appendixof our Responsible Business Report.

Some KPI sections do not include data from our smaller markets in cases where the reported data is less than 1% of Group totals, and therefore immaterial to the reported figures. For relevant KPI sections, we indicate in our Responsible Business Reportthe percentage of Group turnover attributed to the markets that are included in scope for that KPI.

We collect data for the Kingfisher financial year, except where stated. The 2022/23 financial year runs from 1 February 2022 to 31 January 2023. All our targets are to 2025/26 and have a 2016/17 baseline unless stated otherwise.

Each year we use our Responsible Business Targets Questionnaire to monitor progress against our targets. This is completed on an annual basis by relevant Group functions and includes data submitted by the markets which is mostly reported in the detailed performance data tables. In the Performance Data Appendix,we report on our progress during the year and whether we are on track to target (target met/on track/not on track) which we assess using internal interim targets and the updates provided in the sustainability targets questionnaire.

For property-related data (energy and waste), product data and logistics, we include data for the 12-month calendar year, as financial

year data is not available within our data collection timescales. In other situations where data is not available from our suppliers within our data collection timescales, our approach is to make estimates. Estimation methods are dependent on the data type, and further details can be found in the 'Our data collection detail' section.

3	Kingfisher Responsible Business Data Collection Methodology 2022/23	About this	Our approach to	Colleagues	Planet:	Planet:	Customers	Communities	Fundamentals
		document	data collection		climate change	Forest Positive

Our data collection detail

Colleagues: We will be a more inclusive company

Target: Improve gender balance in management by 2025/26, increase women in senior leadership to 35% and increase women in management roles to 40%.

Target: Provide five million hours of learning by 2025/26.

Employee diversity

Definitions - Employees contractually employed by Kingfisher:

• • Includes: temporary or fixed-term employees if they are contracted to the business and paid through payroll; employees on parental leave.
  • Excludes: all agency, consultancy or third-party staff; employees whose contracted hours are effectively zero for the month e.g. sabbaticals (except for B&Q where colleagues on career breaks / sabbaticals were included).
• Management levels:
• • Senior leaders: senior leadership is defined as those who are eligible for our Performance Share Plan (see pages 77 to 100 of theARA 2022/23for more detail).
  • Management: all junior and middle management including heads of units, regional managers and store managers. The management population excludes senior leadership.

Scope- We calculate our diversity data as a % of total employee headcount, using the total number of employees contractually employed by Kingfisher at the end of the financial year.

• We report on diversity through the Workforce Disclosure Initiative.
• Our diversity data covers gender diversity: % of employees that are male and female and % of senior leadership that is male and female and the % of managers that are male and female; the data on managers covers middle and junior management levels.
• The data on Board Directors is collected by Group HR.

Data collection - Data reported covers the 2022/23 financial year.

• The data is collected from personnel records in each of our markets for management. For senior leadership the data is compiled by Kingfisher Group HR.
• Colleague numbers are provided by Kingfisher's finance team.

Units

- % of employees

Employee turnover

Definitions - Voluntary leavers: employees who left the company voluntarily include all employees on fixed contracts which have come to the end of their term, all resignations and all employees who have left without notice.

• Involuntary leavers: employees who left the company involuntarily include all redundancies, dismissals and death in service.

Scope- We report on employee turnover through the Workforce Disclosure Initiative.

• Data on our employee turnover rate includes employees who left the company both voluntarily and involuntarily.
• We calculate the number of leavers as a % of the total number of employees (using the total headcount average, calculated from monthly data).

4	Kingfisher Responsible Business Data Collection Methodology 2022/23	About this	Our approach to	Colleagues	Planet:	Planet:	Customers	Communities	Fundamentals
		document	data collection		climate change	Forest Positive

Data collection - Data reported covers the 2022/23 financial year.

• The data is collected from personnel records in each of our markets.
• Previously finance contributed figures for the total headcount average, from FY22/23 HR will contribute data. FY21/22 figures have been recalculated for comparability.
• In FY 22/23 Kingfisher introduced the Global Leaver Standard to align voluntary/involuntary leaving definitions across all banners. This has been rolled out across banners except Castorama Poland, Brico Dépôt Romania, Castorama France and Koçtaş. Koçtaş used local categorisations for voluntary and involuntary leavers. Brico Dépôt Romania and Castorama France were partially aligned.
• Castorama Poland does not break out involuntary/voluntary data, a total leaver figure was submitted by HR. Castorama Poland is excluded from the voluntary and involuntary total % reported.
• FY 21/22 turnover figures for Brico Dépôt France and Castorama France were adjusted retrospectively in FY 22/23.

Units	- Number of employees who left
	- % employee turnover rate

Employee training

Definitions - Skills for life learning: training for colleagues to help build skills for life, developing themselves and their career.

• Training hours: number of training hours completed by employees during the financial year. Only when a colleague has completed the entire course are training hours consolidated into the reporting figures; training hours spent on incomplete modules are excluded from the reported figures.

Scope- Data on employee training includes:

• • Digital training modules
  • Self-developmentresources
  • Physical workshops (internal and external)
  • Virtual learning sessions
  • External qualifications
  • Leadership and talent programmes
• Work-studycontracts are excluded from the reported figures.

Data collection - Data reported covers the 2022/23 financial year.

• The data is collected from HR departments in each of our markets using local learning management systems and records.

Units

- Number of training hours completed