Woolworths : 2021 Sustainability Report

A better

tomorrow

WOOLWORTHS GROUP LIMITED ABN 88 000 014 675

2 0 2 1 S U S TA I N A B I L I T Y R E P O R T

Contents

SECTION 1

Overview

Introduction	2
CEO and Chairman's message	3
How we create value	4
SUSTAINABILITY TREE™	5
Progress towards our 2025 commitments	6

SECTION 2

People

A truly inclusive workplace	8
The holistic wellbeing of our team	11
Meaningful retail careers	14
in the workplace of the future
Human rights and	15
responsible sourcing
Positive impact on our customers	18
and communities

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7

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22

SECTION 3		SECTION 4		SECTION 5
Planet		Product		Summary
Responding to climate change	23	Healthier choices	35	Message from our Chief	46
Green electricity	27	Sustainable packaging	37	Sustainability Officer
Company directory	47
Food waste	28	Sustainable sourcing	39
Net positive carbon	30	Lead the future of protein	41
emissions by 2050	Responsible service and
Responsible stewardship
33	consumption of alcohol	44
of natural resources	and gaming

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GROUP WOOLWORTHSSUSTAINABILITY 2021 REPORT

Unless otherwise stated, this report covers all our operations in Australia and New Zealand for the 2021 financial		This is an interactive PDF designed to enhance your experience. The best way to view this
year - 1 July 2020 to 30 June 2021 (F21). Only workforce data (excluding safety) is included for our global sourcing
	report is with Adobe Reader. Click on the links on the contents pages or use the home
offices in China, Bangladesh and Thailand. Photos within the report may have been taken before social distancing
	button in the bottom right corner to navigate the report.
restrictions were in place. All amounts are expressed in Australian dollars unless another currency is indicated.

Acknowledgement of Country

Woolworths Group acknowledges the Traditional Custodians of Country throughout Australia and recognises their continuing connection to land, waters and community. We pay our respects to them and their cultures; and to Elders both past and present.

We support the Uluru Statement from the Heart and the recognition of Aboriginal and Torres Strait Islander peoples in the Australian Constitution. We commit to continued listening and learning from First Nations voices and to work in partnership to create change. We acknowledge that we have a responsibility and must do more to truly live our purpose to create better experiences together

for a better tomorrow.

United Nations Global Compact (UNGC)

Woolworths Group Limited reaffirms its support of the Ten Principles of the UN Global Compact in the areas of Human Rights, Labour, Environment and Anti‑Corruption. In this Report, we describe our actions to continually improve the integration of the UN Global Compact and its principles into our business strategy, culture and daily operations.

We create better experiences together for a better tomorrow

Our guiding principles underpin our Sustainability Plan 2025 and will guide our journey towards a better tomorrow for our team, our planet and the customers and communities we serve. We believe they will also create long‑term value for our shareholders.

Guiding principles

We act like a leader and speak up on issues that matter

We care for, and unlock the potential of our people

We have a positive impact on the planet

We apply circular thinking in everything we do

We embrace the power of partnerships to create change

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GROUP WOOLWORTHSSUSTAINABILITY 2021 REPORT

OVERVIEW

SUMMARY

CEO and Chairman's message

Looking after our team, customers and

This year, the ongoing coronavirus pandemic has continued to put pressure on our teams and supply chain as we work to supply food and everyday needs to our communities amongst the challenges of lockdowns, border restrictions and surges in demand.

Community contribution as % of EBT on a rolling average

1.23%

Carbon emissions reduction

27%

below 2015 baseline

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GROUP WOOLWORTHSSUSTAINABILITY 2021 REPORT

communities

In these circumstances of extreme and prolonged uncertainty, a sense of purpose is more important than ever, and as a business we have continued to look to our purpose - we create better experiences together for a better tomorrow

- to guide our decisions.

Whilst we continue to deal with the very real challenges of the present, we are also looking to the future. In November 2020, we were proud to release our Sustainability Plan 2025: Working together to make a better tomorrow - our new program of positive change for our people, our planet and our products. The goals and commitments that are articulated in our Plan represent a lift in ambition for our business. We are no longer satisfied with limiting the negative impacts of our operations - we are actively looking to create positive change in our business and, hand in hand with our partners,

in our extended value chain. We see sustainability as an opportunity to create long‑term value through innovation and resilience building measures that will deliver benefits for decades to come.

This year has also brought significant change to Woolworths Group with the demerger of the Endeavour Group in late June. As we move toward our 100th anniversary, we are building the business that will take us into our second century, and as Today's Fresh Food People, sustainability is at the heart of who we are.

Since the release of our Plan, we have invested in and focussed on laying the groundwork to set ourselves up for our new horizon of sustainability ambition. We have also continued to reach pleasing milestones over this time, such as achieving the Workplace Gender Equality Agency's Employer of Choice for Gender Equality citation for the first time, and having our animal welfare progress recognised by becoming the highest ranked Australian and New Zealand retailer in the global Business Benchmark for Farm Animal Welfare.

In recognition of the changing nature of retail, we announced a $50 million investment in our Future of Work fund, to help equip our team with new skills and capabilities for the workforce of the future. We have continued to focus on the holistic wellbeing of our teams, recognising the fatigue being caused by the ongoing effects of the pandemic. We have also announced our first renewable power purchase agreement, which sets us on the path towards our commitment to power our business with 100% green electricity by 2025.

Despite our intentions, we know that we don't always get it right, and a major focus for us over the coming year will be reflection, listening and learning on our approach and commitment to reconciliation, in light of the findings of the Independent Panel Review into the proposed Dan Murphy's development

Plastics reduction F21

>2,500t

in Darwin. We are committed to quality engagement with Aboriginal and Torres Strait Islander peoples and look forward to sharing our progress as we co‑create long‑term, meaningful steps forward in this critical area.

If we have learnt anything from the past 18 months, it is that the pace of change in sustainability and retail is accelerating. We believe that aspirational goals drive innovative solutions, and we intend to take an Agile approach to our Sustainability Plan, reviewing, and where necessary revising, our goals and commitments on an annual basis in order to continue raising our ambitions.

We are pleased to share with you our Woolworths Group 2021 Sustainability Report.

Brad Banducci	Gordon Cairns
CEO	CHAIRMAN

2021 Countdown Sustainability Report.

OVERVIEW

SUMMARY

How we create value

Our Value Drivers

Team

A diverse and inclusive environment for our teams to work reflecting the diversity of our communities

To create value we bring our customers good food and more everyday through connected experiences. We're focused on creating sustainable long‑term value for our customers, team, shareholders, trade partners and the broader community through living our purpose:

Our Business Activities

Creating better experiences together for a better tomorrow

Value Created 1

Customer

Innovating to meet our customer needs

57	27.8M	19.7M
Group Voice of Customer NPS (June)	Customers served on average per week	Online visits per week

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GROUP WOOLWORTHSSUSTAINABILITY 2021 REPORT

OVERVIEW

Customer services

Connecting customers with good food and more everyday through convenient stores, services and leading loyalty programs

Trusted brands and products

B2C Food

Our cornerstone retail food businesses, famous for good food, prices and acts, and always convenient

B2B Food

Expanding food into new customer segments, channels and markets

Team

Enabling and empowering our team

LAUNCHED	WGEA	AWEI
Woolworths Future of Work Fund	Employer of Choice citation	Gold Tier Status for LGBTQ+ inclusion

Providing best range and value, fresher food, healthier options and everyday needs for our customers in Australia and New Zealand

Sustainability

A leader in sustainability to create a positive impact for generations to come

Business platforms

Leading business platforms built over many years enabling our business activities

Financial

Strong balance sheet and disciplined capital allocation to drive sustainable growth and shareholder value

Stores eCommerce

Products

B2B

International

Wholesale

Platforms & Partners	Everyday Services
Technology, digital and analytics	Complementary everyday categories and
enable retail platforms that deliver for	services to provide more for
Woolworths Group and partners	our customers

Primary	Digital Partnerships	Everyday	Everyday Rewards
Connect	& Data	Services	Needs

Partners

Mutual benefit through strong partnerships

57%	Established partnerships	Quantium
with Endeavour Group	Strengthened data and
Voice of Supplier July 2021	and PFD	analytics partnership

Community

Caring for each other and creating a more sustainable future

27%	113,238	$34.9M
Carbon emission	Tonnes of organic waste	total community
reduction from 2015	diverted from landfill	contributions

Shareholders

Delivering sustainable returns for our shareholders

$1,972M	15.1%	108¢
F21 Group NPAT 2	F21 ROFE 3	F21 Full Year Dividend
1 For the 2021 financial year.	2 Before significant items.	3	F21 ROFE calculation normalised to exclude the
			$7,870 million demerger distribution liability.

SUMMARY