Shoprite : CDP - Forests Response 2022

SHOPRITE CDP FORESTS

RESPONSE

2022

1

F0. Introduction

F0.1

(F0.1) Give a general description of and introduction to your organization.

Shoprite Holdings Limited is an investment holding company whose combined subsidiaries constitute the largest fast moving consumer goods (FMCG) retail operation on the African continent. Shoprite operates more than 2 525 outlets in 11 countries across Africa, employing over 144 000 people across its operations. It's turnover in the past reporting period amounted to R182bn. At the heart of Shoprite's purpose is the aspiration to be Africa's most accessible, affordable and innovative retailer, by being relentless in its efforts to keep its business efficient and sustain its price leadership.

This is Shoprite's third Forests disclosure. The reporting boundary has been restricted but we have increased our scope from only palm oil in the previous reporting period to also include cocoa and timber products in this reporting period. Furthermore, two premier private label product ranges are included in this reporting period compared to only one premium private label product range in the previous reporting period.

This disclosure leverages on Shoprite's strategy of being a is a customer-centric company. Shoprite has identified nine strategic drivers to grow its customer base and its ability to create shared value. Amongst these strategic drivers are:

• Engrain a customer-first culture
• Have trusted, profitable private labels
• Grow market share in premium and fresh goods

F0.2

(F0.2) State the start and end date of the year for which you are reporting data.

	Start Date	End Date
Reporting year	July 1, 2021	June 30, 2022

F0.3

(F0.3) Select the currency used for all financial information disclosed throughout your response.

ZAR

F0.4

(F0.4) Select the forest risk commodity(ies) that you are, or are not, disclosing on (including any that are sources for your processed ingredients or manufactured goods); and for each select the stages of the supply chain that best represents your organization's area of operation.

	Commodity	Stage of the	Explanation if not disclosing
	disclosure	value chain
Timber	Disclosing	Retailing
products
Palm oil	Disclosing	Retailing

2

			The reporting boundary has been restricted but Shoprite have
Cattle			increased its scope from palm oil and cocoa in the previous
Not disclosing	Retailing	reporting periods to include timber in this reporting period.
products
Shoprite's intention is to increase data completeness and
			extend the reporting boundary in future disclosures.
			The reporting boundary has been restricted but Shoprite have
			increased its scope from palm oil and cocoa in the previous
Soy	Not disclosing	Retailing	reporting periods to include timber in this reporting period.
			Shoprite's intention is to increase data completeness and
			extend the reporting boundary in future disclosures.
			The reporting boundary has been restricted but Shoprite have
Other -			increased its scope from palm oil and cocoa in the previous
Not disclosing	Retailing	reporting periods to include timber in this reporting period.
Rubber
Shoprite's intention is to increase data completeness and
			extend the reporting boundary in future disclosures.
Other -	Disclosing	Retailing
Cocoa
			The reporting boundary has been restricted but Shoprite have
Other -			increased its scope from palm oil and cocoa in the previous
Not disclosing	Retailing	reporting periods to include timber in this reporting period.
Coffee
Shoprite's intention is to increase data completeness and
			extend the reporting boundary in future disclosures.

F0.5

(F0.5) Are there any parts of your direct operations or supply chain that are not included in your disclosure?

Yes

F0.5a

(F0.5a) Identify the parts of your direct operations or supply chain that are not included in your disclosure.

Value			Potential for
chain	Exclusion	Description of exclusion	forests-	Please explain
stage			related risk
				The reporting boundary has
		Our previous disclosure focused		been restricted however we
		on Palm Oil and Cocoa products	Potential for	have increased our scope from
		in our Simple Truth and Forage &	palm oil and cocoa in the
	Specific	forests-
Direct	Feast premium private label	previous reporting periods to
product	related risk
operations	ranges and products. This year	include timber in this reporting
line(s)	but not
	we have increased out scope	period.
		evaluated
		further to include sustainably	Shoprite is planning on
		sourced paper.
			conducting a full risk
				assessment with regards to

3

		All other ranges and products are		other commodities and other
		not included in this year's		product ranges and will report
		disclosure.		on them in future disclosures.
				In this disclosure, our efforts
			Potential for	are focused on where we have
			the most influence and leverage
		All branded products from	forests-
Supply	Business	with our supply chain, i.e., the
suppliers that contain palm oil,	related risk
chain	activity	suppliers of our private label
cocoa and timber are excluded.	but not
		products, which represent
			evaluated
			about 10% of all items in our
				stores.

F0.6

(F0.6) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.?)

Indicate whether you are able to provide a unique identifier for your	Provide your unique
organization	identifier
No

4

F1. Current state

F1.1

(F1.1) How does your organization produce, use or sell your disclosed commodity(ies)?

Timber products

Activity

Buying manufactured products

Retailing/onward sale of commodity or product containing commodity

Form of commodity

Paper

Tertiary packaging

Source

Contracted suppliers (manufacturers)

Country/Area of origin

South Africa

% of procurement spend

<1%

Comment

Our sustainably source packaging paper is sourced directly by our suppliers (contracted manufacturers) from suppliers in South Africa. The sustainably sourced packaging paper represents less 1% of Shoprite's procurement spend.

Palm oil

Activity

Buying manufactured products

Retailing/onward sale of commodity or product containing commodity

Form of commodity

Refined palm oil

Palm oil derivatives

Palm kernel oil derivatives

Source

Contracted suppliers (manufacturers)

Country/Area of origin

Indonesia

Malaysia

% of procurement spend

<1%

5