Our Corporate Social Responsibility Report · PDF fileMorrisons corporate social responsibility report 20071 Welcome to our first full Corporate Social Responsibility (CSR) Report,

Our Corporate Social Responsibility Report

Index

1 Chief Executive’s introduction

2 Managing Corporate Social Responsibility

4 Progress and highlights

4 Environment

4 Reducing our Carbon Footprint8 Preventing waste

10 Source responsibly

13 Society

13 Being an employer of choice15 Being neighbourly16 Helping to encourage

a better standard of living

18 Business

18 Product stewardship18 Supply chain integrity19 Satisfaction to all our stakeholders

We are the

UK’s fourth largestfood retailerwith 368 stores and 10.5m square feet ofselling space. Our business is mainly food and grocery – the weekly shop. Uniquely, we source and process most of the fresh food that we sell through our ownmanufacturing facilities, giving us close control over provenance and quality.

Some

9m customersa week pass through our doors, and ourcolleagues across the business work hardeach day to deliver great service to them. Ourservice promise is recognised, by our industry,as the best in the business.

Morrisons corporate social responsibility report 2007 1

Welcome to our first full Corporate Social Responsibility (CSR) Report, which outlines our commitment to taking

good care environmentally, socially and in our business.

Our Group is underpinned by a proud heritage and driven by strong principles, with quality, value and integrity at

the heart of our business strategy. We have a clear vision to be “the food specialist for everyone” and in acknowledging

our wider social and environmental responsibilities, our goal is to be recognised for building a sustainable business

based on trust, loyalty and shared-value attributes.

How we go about our business is very important to us. We invest in our people, our offer and our customer

relationship and experience, aiming to be a well-run company that grows and thrives; and contributes to prosperity

over the long-term.

Sustainability makes sense environmentally, socially and in our business. By ‘doing the right thing’ we can help protect

and nurture the valuable resources on which we all depend, making our business more efficient and effective, whilst

also recognising the opportunity to meet the growing demand for sustainable products and services.

In line with our commercial objectives and our vision for the future, we have laid out our roadmap for CSR. We are

reducing our Carbon Footprint, saving energy and increasing our transport efficiency; preventing waste and

recycling more. We are also continuing to invest in more local and sustainable sourcing and enabling our customers

to eat healthily, whilst ensuring a wide choice of quality, fresh, affordable foods.

Combating climate change is a huge task, which we must all embrace. We recognise that we have both a responsibility

and an opportunity to be part of the solution. In doing our bit to address this unique challenge, we will also involve

our customers and our suppliers and support them as they try to do their bit too. We do not claim to have all the

answers. There is a lot of hard work to be done and some changes may take time but through positive engagement

and by taking good care in all we do, we are determined to make a real difference and be a force for good, creating

value for all our stakeholders.

We view sustainable development as integral to the way we do business and as such, it is our ‘licence to operate’.

Marc Bolland

Chief Executive

Introduction from the Chief Executive

We are determined to make a real difference and be a force

for good, creating value for all our stakeholders

Managing corporate social responsibility

2 Morrisons corporate social responsibility report 2007

Responsibility for CSR starts with our Board of Directors.

Reporting into the Board is a cross-functional steering

group of senior executives from the key business areas,

which provides leadership and puts ownership of CSR

strategy with management at an operational level. This

group meets a minimum of six times a year and its terms

of reference are to:

> Oversee and implement the Group’s strategy and

approach to CSR matters and embed commitments

into the day to day operation of the business.

> Identify and consider emerging issues and legislative

developments. Recognise and assess opportunities

to assist business planning and address stakeholder

requirements or concerns.

> Manage CSR risk and address the various issues arising in

a practical and commercial way and always with integrity.

> Provide recommendations on policies, procedures and

processes in line with Group values, CSR commitments

and sustainable development opportunities.

> Report to the Board, ensuring that the appropriate

management, evaluation and verification systems are

integrated into the core business functions to monitor

delivery against targets by means of Key Performance

Indicators.

> Implement procedures to report publicly on progress

and the extent of compliance with company policies,

procedures and commitments.

On-going work is co-ordinated through our CSR programme

team, with delivery of activities undertaken through line

management in each of the business divisions and driven

through various multi-stakeholder working groups.

Stakeholder engagement We listen to and talk with

employees, customers, investors, regulators, suppliers,

Non-governmental organisations (NGOs) and community

representatives, which helps us to identify and tackle our

key issues and ensure that we are dealing with what matters

most to our business and those involved with it.

In the past year we asked lots of people to talk to us about

their experiences and views of Morrisons. Some of the

feedback came through structured, formal market research

covering over 3,000 customers and 8,000 colleagues. Some

came from talking to people – customers, colleagues and

suppliers around the country – and hearing their views.

We gained a clear picture of the things we do well, what

we should concentrate on and the issues we face. We found

real strength in Morrisons. Our customers appreciate the

value we offer, our high standards of product availability

and our industry-leading in-store service. They recognise our

unique features such as our in-store butchery, fishmongery

and bakery skills, our popular cafes and the fact that we

control key parts of the fresh food supply chain through our

manufacturing businesses. They are interested in great food,

which is also great value; and these are our great strengths.

We also found interest in the provenance, quality and

health aspects of food and in the impact of big business

on the environment. We have some more work to do, in

some cases, to communicate better the many good things

we already do. This report marks the start of sharing more

information on CSR matters and the progress we are making

in our programme towards our targets for achievement.

Our CSR strategy During what has been a period of strategic review for the business under the leadership of our new Chief Executive,

Marc Bolland, and after consultation with a number of key stakeholders, we re-considered our CSR priorities and further

structured our approach around three principal areas.

Environment Taking good care of our planet.

Climate change, waste, sustainability

Society Taking good care of our shoppers, our colleagues and their communities.

Work, neighbours, living

Business Taking good care as we go about our business.

Sourcing, supply, engagement

From this we have established a CSR programme that is integrated with our Company’s vision to be “the food specialist

for everyone” and aligned to delivering our brand values of freshness, service and value. This programme outlines our

priorities to the end of 2010 and the targets we aim to achieve.

Commitments KPIs Targets 2007 to end 2010

EnvironmentReduce our Carbon Energy efficiency and performance • Reduce Carbon Footprint cumulatively by 36% by 2010 (based on 2005 emissions)

Footprint • Reduce Group energy use by 8% per square metre (sqm) by 2010 (based on 2005 emissions)

• 10% of energy from renewable sources by 2010

• Air-freighted produce to be labelled for customer choice/information

• Carbon labelling to be explored

Refrigeration management • Replace Hydrochloroflurocarbons (HCFCs) with Hydroflurocarbons (HFCs) by 2010

• Trial CO2 system

Water conservation • 15% reduction in Group water use by 2010

Transport efficiency • Plan to save 8% of our haulage CO2 emissions by 2010 (based on 2005 emissions) through

mileage reductions and increased efficiencies

• Reduce road miles travelled per pallet of stock by 6% by 2010 and achieve an 8% reduction

of total empty road miles travelled

• Enhance transport planning systems to achieve a 10% increase in trailer utilisation by 2010

• Introduce cleaner Euro5 engines to 15% of fleet by end 2007 and 80% of fleet by 2010.

• Extend availability of BioEthanol E85 fuel on forecourts

Prevent waste Optimisation • Volume of waste to landfill reduced by 50% by 2010

Reduction • Use 15% less own brand packaging by 2010

• Reduce environmental impact of standard plastic carrier bag use by 25% by end 2008

Reuse • Extend returnable tray trips by 14m by 2008. Grow future use in line with sales

Recycling • Increase the proportion of recycled available store waste from 72% to 80% by 2010

• Extend compostable packaging to 200 lines by end 2007

• Increase the opportunities for customers to recycle at and through our stores

• Start to introduce symbols on our packaging to make it easier for customers to recycle

• Increase recycled content of standard plastic carrier bags to 25% by end 2008 and 50% by 2010

Source Responsible sourcing • Use only timber which is recycled or certified as coming from a sustainable source by 2010,

responsibly principles/policies including 100% of wood derived marketing materials.

• 100% of own brand tissue paper lines to be certified by the Forest Stewardship Council (FSC)

by end 2007

• 100% of own brand fish to comply with sustainable sourcing policy by 2010

• 100% of own brand shell eggs to be free range by 2010

Good choice of organic, Fair Trade, • Increase the range of organic foods available by 40% by end 2007

local and in-season food • Label all produce with country/place of origin

• Foster responsible methods of agriculture and biodiversity

SocietyBe an employer Happy and engaged workforce • Continue to increase colleague stability, focusing on engagement and involvement, including

of choice a regular colleague survey

• Continue to focus on training, development and promotion to further improve retention

Be neighbourly Community relations and • Support communities by giving to good causes that reflect local need

supporting good causes • Choose and support a Charity of the Year for national fundraising, aiming for at least

£1m donated each year

Help encourage Quality, choice and value for all • Be “The food specialist for everyone”

a better standard • Deliver great food, which is also great value for every day

of living • Be famous for special offers

• Be renowned for preparing and selling great fresh foods

• Make the most of our in-house fresh food manufacturing and processing facilities and produce

packhouses, to deliver food specialist credentials.

• Provide industry-leading standard of customer service

Providing clear, easy to understand • All own brand foods to carry front of pack Guideline Daily Amount (GDA) labelling by March 2008

information for our customers’ informed choice • 100% of own brand products with ‘Big 8’ back of pack labelling where space allows

Nutritional policies and advice • Increase our healthy ‘Eat Smart’ range by 70% by end 2007

• Increase ‘Free From’ range by 30% by end 2007

• Meet the Food Standards Agency’s 2010 salt reduction targets early, by end 2008

• Remove hydrogenated fats from own brand products by end 2007

• Continue to implement the ‘Task 21’ scheme as part of our approach to responsible drinking

• Provide information to customers about healthy eating in our stores and through our web site

BusinessProduct Specification and traceability • Invest in a new data system to improve the efficiency of accessing information about

stewardship systems implementation our products

Food safety/quality standards • Ensure consistently high standards of food quality and safety

Assurance/accreditation • 100% fresh produce suppliers: Assured Produce/EUREPGAP

Responsible sourcing guidelines • 100% of fresh meat from farm assured sources and produced to high welfare standards

Supply chain Fair and ethical trading standards • Seek to implement our Ethical Trading Code in respect of non-food suppliers in Asia,

integrity farmers in Africa and wine suppliers in South America by end 2007

• Seek to implement fair working conditions auditing initiative in China by end 2007

Being a decent and loyal • Adhere to the ‘Supermarkets Code of Practice’

customer to our suppliers • Build long-term partnerships with suppliers

• Observe the Morrisons ‘Buyers Charter’

Satisfaction for Stakeholder engagement • Engage positively with all stakeholders, responding to them swiftly and efficiently

all stakeholders Delivering our promises


EnvironmentReducing our Carbon Footprint Working with the

Carbon Trust, we have determined the Group’s Carbon

Footprint, which is established from the emissions of carbon

dioxide from sources including energy usage, transport

and waste.

Morrisons Carbon Footprint covers our stores, depots, all

transport (Group-owned and third party haulage) and also

our in-house supply chain of manufacturing, processing and

packing facilities. It is being used as a measure of our carbon

emissions for the Group and taking 2005 as the baseline,

we aim to reduce our Carbon Footprint cumulatively by

36% by 2010. In the past 12 months we have achieved a

6.6% reduction in our total Carbon Footprint of 90,874 tonnes.

To achieve reductions in our emissions, we are continuing

to implement a carbon and energy strategy for the business

based on:

> measuring and monitoring energy consumption

> implementing ‘good housekeeping’ policies

> introducing additional energy saving technologies

> sourcing and generating renewable energy

Our target is to reduce Group energy use by 8% per sqm by

2010, based on 2005 emissions. We are primarily focused on

where we can make the biggest impact, which is on reducing

energy used at our sites, most notably for refrigeration.

However, across the Group, we have achieved a reduction

in CO2 equivalent emissions from energy (electricity and

gas) of 9% over the past year.

2005

2006 1,283,050

1,373,924

0.35m 0.70m 1.05m 1.4m

Tonne of CO2

*Calculated by the Carbon Trust

Morrisons Carbon Footprint*

2005/06 20061

tonnes CO2/£m tonnes CO2/£m

Total CO2 equivalent

emissions from energy

(electricity & gas) used

by the Group 764,221 63.1 718,318 57.4

(Calculated using Department for Environment Food and Rural Affairs

(DEFRA) reporting guidelines.)

(1Our reporting method was changed in 2006 to start from the beginning

of the calendar year).

This has been achieved by:

> Using the Group’s energy management and monitoring

system, Optima, which facilitates targeting areas of

high energy use.

> As part of the on-going monitoring process, 15 sites

identified with unusual or fluctuating energy consumption

levels have been separately audited to assess their gas,

electricity and water usage, with average savings of 5%

having already been made as a result.

> Implementing our ‘Energy Eye’ system of monthly

measurement and targeting of energy consumption

at our sites, monitored by a designated ‘Energy

Engineering Group’.

> Measurement and targeting of refrigeration, with

fixed and locked set points for improved efficiency

and re-commissioning of all refrigeration systems.

> Climate Change Agreements in operation at 202 stores

and 9 manufacturing sites, aimed at reducing the energy

used in food production.

> Introducing an ‘Energy Awareness’ campaign involving

the training of over 100,000 colleagues throughout the

business.

> Issuing a ‘Good Housekeeping’ guide and a supporting

policies document.

We have achieved accreditation for energy efficiency

under the Carbon Trust’s Energy Efficiency Accreditation

Scheme, which is managed by the National Energy

Foundation. The awarding body is the Energy Institute

which recognises good practice in energy management.

Progress and highlights


“Switching On to Switching Off ”

On the basis that energy saving starts with some

simple, practical measures, last year’s introduction of

the ‘Good Housekeeping Guide’ marked Phase 1 of our

Energy Awareness strategy. Phase 2 saw the launch in

October 2006 of a major ‘Energy Awareness Campaign’

throughout the business. Over 100,000 colleagues have

been trained in “Switching On to Switching Off”, which

promotes a series of common sense initiatives enabling

everyone to contribute to saving energy. Performance

is monitored through designated ‘Energy Champions’

at every location and measured centrally.

Each month, stores receive a graph showing their

energy consumption performance compared to last

year to encourage them in making further progress.

Average energy savings of 4.7% were achieved across

our stores over the first two months of the campaign.

The initiative continues and it has recently been

extended to include our manufacturing sites. In addition,

our energy group (which reports into the CSR Steering

Group) is looking at ways of further increasing energy

savings across the business. This working group meets

on a monthly basis and consists of senior managers

from across the business to enable our energy strategy

to apply across the whole Group.

Energy saving technology We specify that contractors for

any of our new-build projects must purchase equipment

from a government approved ‘energy technology product

list’. Everything on this list, from heating and refrigeration

equipment to lighting, is designed to significantly reduce

or eliminate the production of carbon dioxide. In 2006

we invested £10m in energy-saving technology.

Renewable energy We are trialling a micro wind turbine

for generating electricity at our Leominster store. Installed

on the roof of the store, it is being used to run part of

the refrigeration plant.

The test was highly commended in The Cooling Industry

Awards 2006 and we are planning to install the same

technology at a number of other sites. Feasibility trials

for a larger wind-generated electricity system are also

underway at our Regional Distribution Centres.

Other initiatives for low carbon energy being explored

include Combined Heat & Power (CHP), for generating

electricity in supermarkets and re-using more heat including

from the refrigeration system in stores. Further projects for

renewable energy are being investigated in conjunction with

the Carbon Trust.


Leominster store wind-turbine.


Saving Water Our target is to achieve a 15% reduction

in group water use by 2010. We are taking steps to reduce

water consumption. Measures include the installation of

“Opti-flush” water control devices in cisterns and the use

of push taps on wash hand basins.

We are currently working with Yorkshire Water, auditing six

sites as a pilot scheme to identify further ways of saving

water. It is expected that this pilot will lead to a benchmark

for the most efficient water use in stores, which will be

referenced across the estate to achieve savings. We are also

working with Waterscan to identify and fix leaks promptly

and to audit stores.

In March 2006 we moved into our new, purpose built

Head Office, Hilmore House, in Bradford, which features

some of the most efficient and environmentally aware

building control systems. These include collecting rain

water, which is recycled and re-used, for example in the

washrooms. To date we have achieved a peak of 40%

of the water used in the building being supplied

from rainwater.

In addition, the lighting system is sensor controlled

and thermal conditions are balanced between solar gain

coming from a central glass atrium and free-cooling at

night. Analysis has shown that compared to a similar

building housing 1,400 people, the new Hilmore House

uses 33% less energy.

Refrigeration

A variety of proven energy saving technologies and

methods covering engineering

design, controls and equipment specification are

used to reduce consumption. We are replacing HCFCs

with HFCs and our target is to complete this process by

2010, in line with European Union regulations. We have

used secondary refrigerants since 1995 and we will be

trialling a CO2 system as an alternative to HFC.

Transport efficiency We plan to save 8% of our haulage

CO2 emissions by 2010 (based on 2005 emissions) through

mileage reductions and increased efficiencies; and to reduce

road miles travelled per pallet of stock by 6% by 2010.

We will also be improving the space utilisation of our

vehicles and increasing back-haul pallet volumes.

We are introducing vehicles with cleaner Euro5 engines

into our fleet, rather than the currently required Euro4

and well ahead of these engines becoming a requirement

in 2009. These are more efficient and cleaner engines,

which will help to reduce emissions.

Rigorous maintenance schedules, new engineering

developments and fuel efficiency programmes, as well

as driver training, are also aimed at helping to reduce

the environmental impact of our transport fleet. For

example, our new fleet vehicles will have long-drain oils

giving 100,000km between drain intervals, which will save

around 14,000 litres of oil per year. In addition, we remould

9,000 tyres per year saving over 675 tonnes of rubber.

Environment continued

BioEthanol E85 fuel

On March 15th 2006, Morrisons opened the UK’s first

BioEthanol E85 fuel filling pump at Norwich, tying in

with the first deliveries of the Saab 9-5 Bio Power flex-

fuel car. The fuel is branded as Harvest BioEthanol E85,

with the environmentally friendly pumps featuring

a butterfly logo. It is now available at 14 sites and

is being introduced to all new store filling stations.

We intend to further increase availability as demand

increases, believing that E85 offers an effective way to

rapidly increase the percentage of renewable fuel used

in motor vehicles, delivering a significant contribution

to reducing CO2 emissions.

BioEthanol E85 is produced from a wide variety of

agricultural produce, including forest residue, sugar

cane, sugar beet, and grain, making it a totally

renewable and sustainable fuel source.


Energy efficiency in-store: Cardiff

We consider the environmental aspects of all new-build

stores. Each is designed individually, creating buildings

with style and character that are sympathetic to their

locations and which meet the needs of the community

they serve.

Our policy is to cut the carbon emissions from the

energy used for building services through responsible

energy sourcing, by using state of the art technologies

and energy efficient practices and in our specification

for construction, installation, maintenance and

monitoring of plant.

Our new store at Grangetown, Cardiff, which opened on

6th November 2006, is built on a nine acre brown-field

site that was formerly a domestic refuse tip. Around 80%

of the materials used in constructing the framework of

the store, including aluminium and clay blocks, can be

recycled. We have a history of using and re-using such

building materials where they are available.

Integral to the store’s design is an eight metre high

glazed wall enabling natural light to spill through the

building, eliminating the need for artificial light. A nine

metre deep canopy over the checkout mall provides

shade, minimises solar glare and prevents heat gain,

reducing the need for air conditioning/climate control

while the heating system recognises natural warmth

and runs at maximum efficiency by matching heat

output to the building’s actual needs at a given time.

The warehouse has overhead radiant tube heating

that keeps colleagues warm while preventing the

unnecessary heating of large air volumes arising from

open loading doors. It switches off automatically if the

loading doors are left open for more than 15 minutes.

Lighting in the staff canteen is programmed to switch

off when there is sufficient natural daylight, while

infra-red light movement sensors in other recreational

and work areas ensure lights switch off automatically

when the space is unoccupied. The automatic lighting

control system in operation at the petrol filling station

has reduced the amount of artificial light used outside

of trading hours.

Energy savings equivalent to a 10% reduction in

carbon emissions are anticipated from the technology

specification in refrigeration and plant design.

Refrigeration systems are assessed using Total Equivalent

Warming Impact and are monitored remotely to run

at peak efficiency. Large surface air condensers are

fitted with electronically commutated fans and motors

for lower power consumption and noise impact.

Night blinds on refrigerated display cases descend

automatically, initiated by the store’s master time clock

and insulated curtain strips are installed to the doors

of chilled and frozen food store rooms. These measures

reduce cool air loss and increase energy efficiency.

‘Smart’ equipment specification is another feature.

The bakery ovens are specified to be energy efficient

and feature an automatic ‘shut-off’ facility when

un-used for a pre-set period of time.

Measures have also been taken to reduce water

consumption, such as the installation of ‘Opti-flush’

water control devices in cisterns and the use of push

taps on wash hand basins.

Cardiff Store.

Recycling In addition to recovering back-door waste

for recycling, wherever possible we aim to offer our

customers the chance to recycle materials including paper,

aluminium, glass, clothing, shoes, books, CDs and plastics.

Other initiatives have included mobile phone recycling

in aid of our Charity of the Year (last year Breast Cancer

Campaign, this year Asthma UK), Christmas card recycling

in partnership with the Salvation Army and offering inkjet

cartridge recycling through the Woodland Trust, which

has so far enabled 900 trees to be planted. All our stores

also provide facilities for carrier bag recycling.

Reducing packaging Our target is to cut own brand

packaging by 15% by 2010. Our objectives are to use

less packaging and to avoid packaging waste being

sent to landfill, wherever possible.

We are actively addressing packaging waste by aiming

to ensure that we use no more packaging material than

is necessary to protect and transport the products safely,

whilst maintaining the necessary levels of safety, hygiene,

quality and consumer acceptance of the packed product.

We use a range of packaging types and formats that are

designed to be efficient throughout a product’s entire

lifecycle. When designing packaging we aim to ensure

it serves its purpose well, aiming to minimise weight

and volume and following the principles of reduce,

reuse and recycle.

Some form of packaging is often essential. It protects,

meaning products can travel and arrive without damage.

It keeps foods safe, fresh and in good condition and it

carries essential information such as lists of ingredients,

nutrition and cooking instructions. However, we will be

reducing packaging wherever we can and looking for

more sustainable and recyclable sources.

We are making changes and to help us with our decision-

making, we are implementing ‘Packaging Guidelines’ across

the business, which are based on consideration of the

following principles:

• Optimisation

• Recycled content

• Materials’ recyclability

• Materials’ sustainability

• Minimising use of non-renewable resources

used in packaging



Preventing waste We aim to prevent waste through

a sustainable waste management strategy that focuses on

optimisation, reduction, reuse and recycling. Where disposal

is the only practical option available, we use appropriately

licensed waste management facilities in accordance

with legislation.

All of our stores have the capability to recover cardboard

and polythene, which are the largest contributors to waste

produced in store.

Currently 72% of all store generated waste is recovered

for recycling.

By 2010, we aim through a number of initiatives to recycle,

recover or re-direct 50% of the current waste stream away

from landfill against the 2005/06 baseline.

Management initiatives in our stores have seen the recovered

tonnage for recycling increase by some 27% this year.

We have an extensive system of returnable baskets for

both internal and external stock movements, which are

continually reused through our distribution network and

between suppliers. These replace cardboard and other

packaging used to transport and display products and are

most prevalent in our fresh food areas. In the past year

the number of basket trips has increased by over 9% to

144 million, which is estimated to have saved approximately

65,000 tonnes of cardboard. Our use of returnable baskets

is expected to continue to grow at least in line with sales.

Store Waste analysis 2006/07

Total Store Waste Generated 198,500

Recycled Material Tonnes %

Cardboard/paper 119,000 60

Plastics 13,000 7

Other recovered 10,000 5

Recycled Total 142,000 72

Waste to landfill 56,500 28

Recycling Data

No. Tonnes Year onTotal Stores Per Year %

Year Tonnage Recycled Store change

2004/05 144,000 579 249 **

2005/06 128,000 423 303 22%

2006/07 142,000 368 386 27%

**No accurate date available for the integration of the Morrisons and

Safeway estate.


Packaging reduction projects, such as changes to meat

packaging, sandwich and salad packs and a re-design

of our wine carriers, together with the introduction of

compostable packaging to organic produce lines, are

already saving over 30 tonnes of packaging waste a year.

Our packaging group (which reports into the CSR Steering

Group) is working to further reduce the environmental

impact of our packaging by identifying more ways to design

out packaging waste growth by 2008 and deliver absolute

reductions in packaging waste by the end of March 2010,

to meet the shared objectives of the WRAP (Waste Resources

and Action Programme) Courtauld Commitment, to which

we are signatories. This also includes a commitment to

tackling the amount of food waste consumers throw away,

by the end of 2010.

Carrier bags Being focused on reduce, reuse and

recycle, our standard plastic carrier bags are designed to

offer exceptional performance with a minimum of resources

used in their production and also to be reusable. Our target

is to reduce the environmental impact of standard carrier

bag use by 25% by the end of 2008. To date we have

achieved a 5% reduction in use through an active

management policy at our checkouts.

To achieve further reductions in use, in addition to our

multi-trip ‘Charity Bag’, which is made from 100% recycled

material and is also recyclable, we are introducing a small

and a large size durable woven shopping bag, which can

also be recycled, together with a shopping bag made of

jute, which is a natural fibre that is biodegradable. Smaller

size carrier bags are available for convenience shopping to

prevent the use of the full size bags. Messaging on all our

bags provides customers with information on the further

use and means of disposal.

As stated previously, all of our stores have carrier bag

recycling units for our customers’ use, situated in

prominent positions in main entrance areas.

Compostable packaging

Compostable packaging has been introduced to our

Organic fresh produce range, saving 27 tonnes of plastic

packaging and 4.5 tonnes of moulded fibre from going

to landfill this year; figures that are set to increase as

the packaging is extended to more lines.

Trays are made out of sugar cane fibre, flow wrap film

is made from wood pulp and bags are produced using

GM-free corn starch. These materials naturally break

down in a compost heap over a period of between

6 and 24 months.

The packaging is highlighted with a seedling logo and

compostability accreditation standard; and includes

clear instructions for pack disposal.

Freedom Food Free

Range Duck

We are the first supermarket to sell

RSPCA Freedom Food labelled Free

Range Duck, which was launched

in November 2006. In addition to introducing The Best

Breckland Duck we also launched Wye Valley Chicken,

extending our range of Freedom Food labelled poultry.

Steven Tait, Head of Freedom Food Sales and Marketing,

commented: “Animal welfare is an increasingly important

consideration for the consumer. The Freedom Food label

provides consumers with the assurance that the product

has come from animals reared on farms assessed to

strict RSPCA welfare standards; the RSPCA being one

of the most respected animal charities in the world.

We are delighted that Morrisons is leading the way in

its commitment to selling poultry from Freedom Food

approved farms, and to improving animal welfare.”


Source responsibly We seek to ensure that own brand

products and the ingredients that go into them are produced

as responsibly as possible.

This means applying responsible sourcing policies to

cover specific raw materials such as timber, palm oil and

soya and addressing issues such as sustainable seafood

sourcing and animal welfare.

Policy information can be found at www.morrisons.co.uk,

in the Corporate Social Responsibility section.

Responsible sourcing also means offering a good choice

of Organic, Fair Trade, British and locally-sourced produce.

Buying British and local We are committed to providing

our customers with the freshest produce possible

throughout the year. We process 80% of the fresh produce

and 90% of the fresh meat we sell through our own facilities.

When the quality, quantity and value are there we will

always source British first. We have consistently sought

to work with the British farming industry to source as

much produce as possible from UK farmers and growers.

For example, when in season we are 100% British for carrots,

broccoli, swede, cauliflower and 90% for onions, mushrooms

and potatoes. Overall, 75% of the vegetables and 90% of the

plants that we sell throughout the year are British. Our fresh

milk, fresh and frozen poultry and in-season lamb and deli

sausage and bacon, are 100% British, and 95% of our fresh

beef and fresh pork is British too.

We buy a large amount of primary produce directly and

have many long-standing relationships with farmers and

growers, with some dating back over 30 years. We work in

collaboration to develop the quality, safety and marketing

of fresh foods and to shorten the food supply chain, by

working closely together.

Innovative fresh fish labelling

We actively promote sustainable seafood and in a

move that is a first for fresh fish sold in supermarkets,

in October 2006, we launched a new labelling scheme

nationwide, aimed at giving customers every confidence

that the fish we sell has been sourced responsibly. All

the fish on the counter can now be recognised by both

their common and scientific names, which clearly

distinguishes each species and prevents confusion

where more than one common name is used. The new

labels also give the origin of the fish i.e. the country,

area of water where it was caught or farmed and the

catch method.


Our new labels clearly distinguish each species.


CM Mercer

The 16 year partnership between Morrisons and family

run potato growers CM Mercer is an example of what

can be achieved with good, open and honest

communication.

The Mercer family relocated from Lancashire to Bowley

Court Farm, Herefordshire, in 1972, where they now

farm potatoes on over 1,000 acres, with the help of

over 40 employees. The farm supplies Morrisons with

a number of potato varieties including bakers such as

Marfona, Maris Peer new potatoes and loose potatoes

such as Estima.

Working closely with CM Mercer we have also been

able to launch a line of new potatoes under The Best

range, which offers premium products of exceptional

flavours and tastes. This further highlights the quality

of their produce, which has seen an increase in sales

to Morrisons by over 90% since the relationship began.

‘Morrisons quality standards are very high and that is

why we only supply them with the freshest potatoes’,

said owner, Jon Mercer. ‘We have an exceptional

relationship with Morrisons and we strive to provide

their customers with the very best potatoes’.

Longley Farm

We have a long-standing working relationship with

Longley Farm spanning 46 years, of which both parties

are proud. We have grown together, learning,

developing and helping each other throughout our

journey to strive for retail success.

In 1948 Joseph and Edgar Dickinson inherited a ‘typical

Pennine farm’ and the two brothers developed a small-

holding from a herd of 10 cows, which were milked by

hand. In 1956 they were granted a licence to buy milk

from other farms and began to build up to a modest

daily intake of 200 gallons, selling over a 30 mile area.

They began delivering their famous dairy products to

Morrisons first supermarket back in 1961. Since then,

Longley Farm has grown into one of the largest

independent dairies in the country.

Jim Dickinson, Managing Partner of Longley Farm, said:

“Good relationships are crucial to any business and over

the years we have supplied Morrisons with a traditional,

good quality product – whether it be cream, yoghurts,

cottage cheese or butter – whilst in return they have

given clear communication channels and regular contact

with a stable core of people, to build up both businesses

side by side.”



We are keen supporters of regional producers and have many small and local suppliers. We also tailor local products to local

stores. For example, Kelly’s ice cream and Sharpe’s Eden Ale in Cornish stores; apples, plums, cherries and cauliflower, when

in season from Kent are available in our stores in Kent; and Elsdon Goats cheese and Northumbrian Onion & Chive cheese in

our Northumberland stores. There is a full range of regionally sourced cheeses available from every store’s deli counter.

Welsh range

When you visit a Morrisons store in Wales you’ll find

a selection of over 230 locally sourced fresh and frozen

Welsh products to choose from. Every effort is taken

to ensure that each store’s product offering is tailored to

meet the demand of its customers, reflecting the tastes

and preferences of the local area. Own brand products

produced by Welsh suppliers, such as Morrisons Cheddar

cheese supplied by South Caernarfon Creameries, sit

alongside other Welsh cheese varieties such as Y-Fenni,

Tintern and Cadog and popular local brands.

Wherever possible we have worked with suppliers

to extend the range of Welsh products available to

customers. For example, Braces Bakery’s range of bread

rolls and Welsh cakes, which are supplied to the majority

of our stores in Wales has been extended to include two

premium wholemeal brown sliced loaves, a sliced fruit

loaf and soft white baps.

In addition, we aim to forge new relationships with

local suppliers, such as Welsh organic dairy farmers

Calon Wen, who now supply milk to all our Welsh stores

and the Welsh Pantry, which supplies ready meals such

as faggots and peas and Cawl Mamgu (Granny’s Broth).

We also look for opportunities to work closer with the

farming community and offer a full range of Welsh beef

and lamb on the butchers’ counter, as well as loose new

potatoes from Pembroke.

South Caernarfon creameries.

Calon Wen.

Welsh Pantry’s Faggots and Peas


Society

Being an employer of choice We employ

117,000 people in stores, factories, depots and offices.

Our comprehensive employment policies cover all aspects

of our colleagues’ careers with us. These include recruitment,

selection, remuneration, training, education, development,

retention, performance appraisal, equality and diversity.

We keep colleagues fully informed about the activities of

the business through internal publications, communications

programmes, notice boards, briefings, consultative committees

and forums. Our special complaints procedure is designed to

protect all employees against any form of abuse and includes

provision for confidential whistle-blowing if appropriate.

We have also implemented what will be a regular

colleague survey, which investigates employees views about

working for Morrisons, highlights what needs to be done

to make the Group an even better place to work and sets

a benchmark against which to monitor and measure change

and improvement. A more detailed understanding of the

findings is obtained through carefully targeted focus groups,

on which a complete follow-up programme will be based.

We have constructive relationships with a number of trade

unions and the largest membership is with USDAW, with

whom we have a partnership agreement. We encourage

involvement in the financial performance of the business

through Profit Share and Share Option schemes.

We have a team of Occupational Health nurses and a full

time Medical Advisor who focus on the health and wellbeing

of all our colleagues.

Training and Development We invest significantly in the

training and development of our people, enabling them to

do their jobs to the very best of their ability and to offer

our customers the very best service. Our own training

department runs an extensive range of programmes,

particularly aimed at retail skills and specialist craft training.

We also partner with educational establishments to offer

a range of recognised qualifications.

Graduate Training Cheryl Henson joined Morrisons

Graduate Training Scheme in September 2005. “The

programme was fast paced and I immediately got

involved in all areas of store operation. I particularly

enjoyed training on Market Street including the Bakery

and Cake Shop, working alongside skilled crafts people.

The immediacy of responsibility encountered and the

short period of time which it takes to reach senior

management positions is both highly stimulating and

challenging” said Cheryl, who is Assistant Deputy

Manager at the Livingston store.

Company award schemes

Butchery

The Jack Woodhead Award Scheme was established

in memory of a Director of our meat processing facility

in Lancashire. The scheme is designed to recognise

the high level of meat trade skills within our business,

as well as a celebration of the excellence of our

butchery operation.

Robert Sykes of Thornton Cleveleys store was

named Top Butcher, Steve Beard of Fishponds, Bristol,

won Butchery Manager of the Year 2006 and Mark

Thompson of Woodhead Bros received the award for

Trainee Meat Processor of the Year, in the inaugural

awards. Robert has worked for Morrisons for the past

three years and previously worked as a butcher

at the Blackpool store. Steve joined the company four

years ago and transferred to Fishponds from Yate.

Mark has been working at Woodhead Bros for over

three years, following in his father’s footsteps in the

meat processing industry. All three, won their awards

for consistently demonstrating high levels of skill and

customer service.

Customer Café

The Customer Café Awards were established in 2005

to acknowledge the outstanding levels of food service

and quality offered in our cafes. Café Manager of the

Year 2005/06 was Thomas McCann at Barrow, Front

of House Team of the Year was Berwick upon Tweed

and Kitchen Team of the Year was Canvey Island.

Fishmongery

Morrisons fishmongers deliver outstanding levels of

service every day and the Fishmonger Awards Scheme

was developed to highlight this expertise. After a

rigorous selection process overseen by Seafish, Bryan

Mason from Plymstock was named Fish Bar Manager

of the Year 2005/06 and Jacqueline Gormal of

Anniesland, Glasgow, Fish Bar Assistant of the Year.

Congratulations to all!

Age Diversity

We have always promoted a positive attitude towards

age diversity believing that a blend of youth and maturity

benefits both the Company and employees alike.

To support and encourage employees of all ages we:

> Have never imposed a mandatory retirement age

> Provide equal opportunities training for all

management

> Provide ongoing, structured training and career

development programmes

> Proactively encourage older persons to apply

for positions

> Run an established retail graduate scheme to attract

the best people and train them to become the senior

managers of tomorrow

> Nurture relationships with schools and offer work

placements for under 16s

More than 21,000 colleagues are over the age of

50, which equates to over 17% of our entire workforce.

As we have never imposed a mandatory retirement

age, a significant proportion of these are over 60.

Nearly 26,000 colleagues are under the age of 21,

equating to 22% of our entire workforce. Our oldest

member of staff is 90 and the youngest is 16.


Society continued

Helping thousands to go green

CSV Action Earth environmental volunteering campaign:

March – July 2007

We are giving thousands of people throughout

England and Wales the opportunity to help improve their

local environment by funding the green volunteering

campaign CSV Action Earth. This is the first year we have

supported this national environmental volunteering

campaign run by CSV, the UK’s largest volunteering

charity. Last year over 15,000 people took part in CSV

Action Earth projects in England and Wales, giving nearly

300,000 volunteering hours while planting more than

5,500 trees, collecting nearly 10,000 sacks of litter,

cleaning around 6,000 metres of river bed and overall

improving more than 3,300 acres of land.


Being neighbourly We aim to be a consistently

good and considerate neighbour. Our own experienced

management teams influence all new developments and

each store is designed individually, creating buildings with

style and character that are sympathetic to their locations

and environment. Inside and out, the stores are built to

a very high standard that reflects local architecture and

building materials, some of which are reclaimed and reused.

Many of our store plans include facilities for the benefit

of the local community and we are also renowned for

commissioning public works of art that reflect local heritage.

Both hard and soft landscaping are used to enhance the

local environment and we frequently carry out improvement

to highways and pathways to provide private and public

transport links, as well as pedestrian access. When building

work is underway we aim to minimise disturbance, including

noise impact, ensuring there is a point of contact for the

neighbourhood during building work.

Through our new stores programme we create local

jobs and provide training opportunities for the long-term

unemployed; we contribute to improved infrastructure

and transport links and bring economic benefits to an area,

including local business development through supply and

service contracts and regeneration.

Charity support Every year since 1991 our

employees have voted to choose a Charity

of the Year to be the focus of our national

fundraising activity. This year we are raising

money for Asthma UK, following a record-breaking campaign

with Breast Cancer Campaign, which raised £1.6 million.

In 2006/07 we also raised £274,000 for Children in

Need and donated £150,000 to the Farepak Fund.

Donations to local and national causes, including through

Morrisons Charitable Trust and excluding gifts in kind

totalled £1.2 million.

Morrisons volunteers conduct the first CSV Action Earth 2007 project at Bradford City Farm.

Helping to encourage a better standard of living

Earning and maintaining our customers’ trust in the quality,

safety and integrity of the products we sell is our top

priority. Informative food labelling allows our customers to

make choices that are right for them and we pride ourselves

in delivering industry-leading standards of customer service.

Nutritional Labelling In June 2006 we began introducing

new front of pack nutritional signposting, based on

Guideline Daily Amounts (GDAs).

This now features on over 2,500 own brand foods across

all categories and we are targeting for all own brand foods

to carry GDA labelling by March 2008. To increase

awareness and understanding of GDA labelling among

shoppers, we established a dedicated information area

on our web site to explain GDAs and also promote the new

labelling through leaflets and point of sale materials in-store.

GDA signposting complements our back of pack nutrition

information which, wherever space allows, includes the

‘Big 8’, which are energy (calories), protein, carbohydrates,

sugars, fat, saturates, fibre and sodium, together with the

salt equivalent declaration.


Society continued

Great Scot: Community Champions

For the second year running we

sponsored the Sunday Mail Great Scot

Awards, which recognise ordinary people

or groups of people who have achieved the

extraordinary. As part of our sponsorship

we established a new ‘Community Champions’ award

category, encouraging local communities to nominate

people who have been inspirational with their acts of

kindness, courage, or willingness to go that little bit

further for other people.

The Great Scot Community Champion 2006 was

Ann McCulloch, who set up the ‘Watch us Grow’

garden nursery, which employs people with learning

difficulties. Ann, from Cumbernauld, near Glasgow, left

her job with a coffee firm to set up the garden in 1999.

Volunteers grow plants and vegetables to sell in the

nursery shop, run a wormery and refurbish nursery

equipment. Ann is dedicated to helping them gain

confidence and learn about gardening.

The Best Smoked Salmon

Inverness-based Strathaird Salmon Ltd and Spey Valley

Smokehouse in Grantown-on-Spey produce a variety

of smoked salmon and smoked salmon products for

Morrisons, using the best ingredients and traditional

processes. Morrisons The Best Speyside Smoked

Scottish Salmon is hand cured, traditionally hung and

smoked using beech dust and oak chips from whisky

barrels that have been used in local distilleries.

Strathaird’s Kevin Gates says: “The Smokehouse has a

history of smoking salmon since 1888 and we take great

care in sourcing local yet unique ingredients to smoke

our fish. Morrisons demand consistently high quality

for all the products we supply to them and we deliver

this by using 100 per cent fresh Scottish salmon.”

GDA labelling


Other initiatives have included:

• Reducing salt. We have reduced the amounts of salt in

hundreds of our own brand products including cooked

meats, poultry, canned and fresh soups, pizzas, sausages

and ready meals. Our salt reduction programme is

continuing and we are aiming to meet the Food Standards

Agency (FSA) 2010 targets by end 2008.

• Removing hydrogenated fats from over 95% of the

own brand products where present, targeting to achieve

100% of products by the end of 2007.

• Extending the ‘Eat Smart’ range of healthier foods,

aiming to increase the range by 70% by the end of 2007.

• Introducing over 400 new Organic lines including

breakfast cereals, fruit juices, breads and meats, we plan

to further increase the range by 40% by the end of 2007.

• Introducing a new own brand ‘Free From’ range for

consumers with allergies or intolerances, aiming

to increase the range by 30% by the end of 2007.

• Putting ‘5-a-day’ labelling on a range

of fresh produce and foods.

• Supporting and promoting sensible

drinking consumer messages in line

with government and medical advice

and introducing the ‘Task 21’ policy

where customers who do not look 21 are asked

to confirm that they are 18 years or older.

• Voluntarily raising the minimum age for purchase

of tobacco and knives to 18.

Energy saving light bulbs

Having already sold over four million energy saving

light bulbs in just nine months, equating to a cut in

carbon dioxide emissions of over 58,000 tonnes per

year, in October 2006 we became the first supermarket

to launch a new range of bulbs approved by The Energy

Saving Trust.

The Energy Saving Trust’s scheme only accredits

products that meet strict criteria set by an independent

panel on energy efficiency and the whole range features

the ‘energy saving recommended’ logo, which it is hoped

will encourage more customers to replace at least one

ordinary light bulb with an energy saving equivalent.

According to the Energy Saving Trust, UK households

use £1.9 billion worth of electricity every year on

lighting and a 100w light bulb left on for just 30 minutes

creates enough carbon dioxide to fill a party balloon.

Energy saving light bulbs last

on average 12 times as long

as standard bulbs and can

save up to £100 over the

lifetime of the bulb. If

everyone installed one energy

saving light bulb the carbon

dioxide emissions saved

would fill the Royal Albert

Hall nearly 2,000 times.


Product Stewardship We really understand food and

we know where it comes from. We make it and pack it in

our factories and we also make it in our stores. In addition,

we have over 1,800 suppliers who each also have their own

supply chains. We encourage all our suppliers to follow

best practice and to maintain consistently high standards.

We ensure that all own brand products meet the highest

standards of safety and quality. From assessing the safety

of products prior to sale, through to auditing our suppliers

and checking that finished products on our shelves are of

great quality, our safety management and quality assurance

processes are designed to give our customers confidence

in all that they buy from us. We are also investing in a new

data system which will improve the efficiency of accessing

information about our products.

Supply chain integrity We are committed to working

in partnership with our suppliers to ensure an outstanding

offer to our customers in terms of quality, value, freshness

and service. A good, positive relationship with our suppliers

is vital to our success and we aim to be a loyal customer

to our suppliers.

Business

The Best Wild Tagged Line Caught Cornish

Seabass This fresh fish is available from our stores

within 36 hours of being landed. Caught using small

fishing boats, the fish are given an identification tag

that stays attached to them, giving full traceability

and reassurance on sustainability to the customer.

Stewarts of Tayside Ltd

This family-run business, which is one of the largest

independent soft fruit growers in the UK, supplies

strawberries and raspberries to Morrisons, within 24

hours of picking. Mary Stewart says: “We grow our fruit

on our farms in Perthshire and have our own packing

line and haulage fleet. This means that we can offer the

freshest produce available. We judge our fruit on

flavour, quality, sugar levels and appearance. Morrisons

quality standards are very high and so are ours, which is

why we work so very well together.”

Keith Stewart, Cattle Farmer, Aberdeenshire

Stock farmer Keith Stewart has been rearing cattle

and sheep since he can remember. “It takes years of

experience to know what you’re looking for”, he says.

“Morrisons pay a fair price for their produce and they

expect the highest possible standards. That makes

suppliers give them the best. It’s great for consumers

as they know when they step inside Morrisons they

are getting top quality.”


Wensleydale Creamery

Morrisons relationship with The Wensleydale Creamery

in Hawes goes back to 1992, when the present company

was established following a management buyout. We

are the only supermarket in the UK to stock only real

Yorkshire Wensleydale cheese within our Wensleydale

cheese range.

The Wensleydale Creamery currently supplies

Morrisons stores with 10 different varieties including

traditional, organic and mature, blue and smoked;

and has worked with us to develop some exciting

new cheeses, including Fountains Gold Cheddar that

is made using Jersey and Guernsey milk combined

with cracked black pepper.

Alice Amsden, Director at The Wensleydale Creamery,

said: “Our cheese is of the highest quality and the

only real Yorkshire Wensleydale cheese in the world.

The authentic taste of our cheese range is of utmost

importance. We have always had tremendous support

from Morrisons and have benefited from a strong

relationship with the company, maintaining a good

working practice throughout the growth of both brands.

The staff at Morrisons are always friendly and good to

work with and this is always an important factor when

considering a long-term partnership.”

Lloyd Maunder

Lloyd Maunder is a family run business based in Devon,

which has been supplying Morrisons with fresh chicken

for the last two years, including organic, free range

and Freedom Food-accredited corn-fed ranges.

To achieve total control of quality and traceability,

Lloyd Maunder operate their own breeding farms

and hatchery, offering complete traceability and

Farm Assurance on their product range. This extends

to Morrisons customers being able to trace the origin

of their chicken through the Lloyd Maunder web site.

Fair Trade range

Fair Trade and Rainforest Alliance certified fresh

ground coffee is being introduced to 110 customer

cafes nationwide and will be available in all by the

end of 2007. This complements the Fair Trade

tea already on sale in all locations.

In 1994 we were among the

first major retailers to sell fairly

traded products. Our Fair Trade

range includes both branded

and own brand options and

covers a number of categories

including hot beverages,

confectionery, snacks and

fresh fruit and vegetables.

Our policy is to be fair and honest, being accessible and

straightforward in our dealings; and to always deliver what

we promise. We ensure we operate in accordance with

the ‘Supermarkets’ Code of Practice’ and our trading teams

observe the Morrisons ‘Buyers Charter’ for business dealings.

We expect our suppliers to conform to recognised standards

of ethical trading. We are extending our site assessments

and independent third party audits to monitor compliance

with our requirements. During 2007 we will be seeking to

implement our Ethical Trading Code in respect of non-food

suppliers in Asia, farmers in Africa and wine suppliers in

South America. We will also seek to implement a fair working

conditions auditing initiative in China by the end of the year.

Satisfaction for all our stakeholders We aim to engage

positively with all stakeholders, responding to them swiftly

and efficiently and will be continuing to listen to and talk

with our many stakeholder representatives. If you would

like to find out more about our CSR programme and our

policies, please visit www.morrisons.co.uk or telephone

0845 611 5000 and ask to speak to our CSR team in the

Public Relations Department.


www.morrisons.co.uk

Wm Morrison Supermarkets PLC

Carbon offset This Corporate Social Responsibility Report

has been assessed with the assistance of The Carbon Trust

for the amount of carbon emissions that are generated

in its preparation, printing and delivery. To offset these

carbon emissions a donation has been made to PURE,

The Clean Planet Trust, the first UK registered charity

dedicated to combating climate change by offsetting,

meeting the standards of the proposed UK Government

Code of Best Practice. They contribute to projects around

the world to improve air quality, assisting in the reduction

of the impact of climate change. More information about

PURE can be found on their website www.puretrust.org.uk.

Recycled paper This document has been printed by

The Midas Press on recycled paper that is manufactured

in mills with ISO 14001 accreditation from 100%

recycled fibre. It is totally chlorine free and is a NAPM

certified recycled product.

Registered office


Hilmore House, Gain Lane

Bradford, BD3 7DL

Telephone 0845 611 5000

www.morrisons.co.uk

www.morrisons.co.uk


Documents

Our Corporate Social Responsibility Report · PDF fileMorrisons corporate social responsibility report 20071 Welcome to our first full Corporate Social Responsibility (CSR) Report,