Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Reduction
• Diversity & Inclusion
• Employee Wellbeing
• Community Engagement
• Responsible Sourcing
• Modern Slavery

Environmental Achievements

• Reduced greenhouse gas emissions by 14%
• Reduced waste to landfill by 11%
• Reduced business-to-business plastic wrapping by 100 tonnes per annum
• Set a 2030 science-based emissions reduction target of 42%

Social Achievements

• Improved employee engagement score by ~20%
• Donated ~$3m to ~1,450 local organisations through the IGA Community Chest Program
• Donated 850,000 meals to food rescue organisations
• Received third consecutive Employer of Choice citation from the Workplace Gender Equality Agency
• Achieved Gold Accreditation by Mental Health Australia

Governance Achievements

• Established an ESG Council
• Set a 1% gender pay gap target
• Became a signatory to the Food and Grocery Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Increased complexity associated with the impacts of COVID-19 and higher labour hours leading to a slightly higher Total Reportable Injury Frequency Rate (TRIFR)
• Potential impacts of climate change on the supply chain
• Increased insurance premiums due to catastrophe claims

Mitigation Strategies

• Implementing COVID-safe plans across all sites
• Establishing a 2030 science-based emissions reduction target and developing an interactive net-zero pathway tool
• Undertaking climate scenario analysis and developing climate risk mitigation plans
• Discussions with landlords on their climate engagement plans
• Commissioning of solar panels at a new Greenstar facility

Supply Chain Management

Supplier Audits: ~85% of suppliers linked to Metcash on SEDEX completed self-assessment questionnaires or provided audits (168 sites across 14 countries)

Responsible Procurement

• Integrating modern slavery requirements into supplier contracts
• Implementing supplier screening, renewable energy contracts, circular economy and recycling opportunities toolkits and training for store owners
• Working with suppliers to mitigate social and environmental impacts

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of acute physical climate change events (flooding, cyclones, bushfires)

Opportunities

• Onsite Solar PV
• Refrigeration system optimisation
• LED retrofits
• Lighting control opportunities
• High-GWP refrigerant phase out
• Natural gas elimination through electrification
• Forklift electrification
• Improved batteries and battery charging technology for electric forklifts
• Energy sub-metering
• Offsite renewables (via PPAs)
• Offsets

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI) (aiming for alignment by 2023)

Sustainable Products & Innovation

• FAD-free private label tuna range
• Community Co private label range with post-consumer recycled content packaging

Awards & Recognition

• WGEA Employer of Choice
• Mental Health Australia Gold Accreditation

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Sourcing
• Health and Safety
• Diversity, Equity and Inclusion
• Community Engagement
• Modern Slavery
• Packaging
• Waste Reduction
• Renewable Energy
• Employee Engagement
• Supplier Sustainability

Environmental Achievements

• 3.64% reduction in GHG emissions (77,706 tonnes of CO2e) compared to the prior year.
• 396,078 kWh of solar energy generated at Gepps Cross DC.
• Installation of solar panels at several Mitre 10 locations.
• Plans to install solar at three additional sites in FY23.
• Identified potential electricity savings of 3.1 million kWh per year (equivalent to 2.56 ktCO2e savings per year).
• Commitment to switching company vehicles to hybrid-electric.
• Upgrading half of ordered trucks to Euro 6 emissions rating.
• Reduction in plastic wrap usage intensity by revenue.
• Significant progress in improving packaging outcomes in Foodland (South Australia).
• Successful source separation of baled cardboard and plastic at warehouse.
• Diversion of some timber pallets from general waste bins to timber recyclers.
• Implementation of ‘simply cups’ coffee cup recycling solution.
• Increase in food waste diversion through donations.
• Introduction of food organics bins at distribution centre.
• Improved signage to encourage recycling.

Social Achievements

• Improved overall employee engagement score (3.5% increase).
• Established a Diversity, Equity and Inclusion Council and a Women in Leadership Program.
• Awarded the Workplace Gender Equality Agency Employer of Choice for Gender Equality citation for the fourth consecutive year.
• Almost $2.4 million donated via ~1,600 individual donations through the Community Chest Program.
• Additional funds raised through Rapid Response Plan and Emergency Assistance Fund (EAF) for flood relief.
• Countless examples of local community support provided by independent retailers.
• 50% reduction in high potential incidents compared to the prior year.
• Slight improvement in Total Recordable Injury Frequency Rate (TRIFR).
• Implementation of wearable technology for manual handling training.
• Rollout of national in-store battery recycling service.
• IGA Locals Matter community program provided educational material to ~68,000 members.

Governance Achievements

• Established an ESG Council chaired by the Group CEO.
• Developed an ESG dashboard for bi-monthly presentations to the GLT.
• Twice-yearly comprehensive reports to the Board on ESG initiatives.
• Capacity building activities with the Board to strengthen their knowledge of climate risk.
• ESG targets included in balanced scorecards for key management personnel.
• Developed a Climate Change Risk and Opportunity Register.
• Established a Business Resilience Framework.

Climate Goals & Targets

Environmental Challenges

• COVID-19 impacts on communities.
• Pressures on supply chains.
• Extreme weather events.
• Climate change risks to supply chain and business continuity.
• Modern slavery risks in the supply chain.
• Obtaining comprehensive Scope 3 emissions data.
• Managing waste effectively.
• Reducing plastic usage.
• Ensuring responsible sourcing of products.

Mitigation Strategies

• Strengthened resilience of network.
• Set net-zero emissions target for 2040 and 100% renewable energy target for 2025.
• Investigation into Scope 3 emissions.
• State-by-state analysis of climate impacts on business continuity.
• Work with suppliers on mitigating modern slavery.
• Engaging with store owners to set emissions reduction goals.
• Offering advice on energy efficiency and renewable energy.
• Implementing battery and soft-plastics recycling.
• Supporting the goals of the Australian Packaging Covenant Organisation.
• Redesigning product artwork to include the Australasian Recycling Label (ARL).
• Creating a dedicated role to oversee the transition to recycled, recyclable and compostable packaging.
• Expanded sustainability agenda and deepened commitment to existing topics.
• Developed a Metcash Waste Avoidance and Resource Recovery Roadmap.
• Engaged energy specialists for energy management services.
• Implemented a fleet safety corporate standard.
• Updated category and supplier risk allocations for modern slavery.
• Updates to the Metcash due diligence process.

Supply Chain Management

Supplier Audits: 127 independent social audits conducted.

Responsible Procurement

• Sustainable palm oil sourcing.
• Certified tea, coffee, and cocoa sourcing.
• Sustainably sourced timber, pulp, and paper.
• Australian first sourcing for Community Co products.
• Animal welfare standards for private label products.
• Responsibly sourced seafood.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of acute physical climate change events (e.g., floods, bushfires, hailstorms).
• Potential for higher insurance premiums and operating expenditures.

Transition Risks

• Regulatory changes, market shifts (assessed as low risk).

Opportunities

• Energy efficiency improvements.
• Renewable energy adoption.
• Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI (planned for FY23), TCFD

Certifications: WGEA Employer of Choice for Gender Equality (4 consecutive years), FlexReady certification by FlexCareers, Gold accreditation by Mental Health First Aid Australia

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7 (Affordable and Clean Energy)
• 12 (Responsible Consumption and Production)
• 13 (Climate Action)
• 8 (Decent Work and Economic Growth)
• 17 (Partnerships for the Goals)

Initiatives contribute to these goals through emissions reductions, renewable energy adoption, responsible sourcing, waste reduction, community engagement, and stakeholder collaboration.

Sustainable Products & Innovation

• Community Co private label range with healthy options.
• Products with lower salt content.
• Refill Station at Ritchies IGA Taren Point.

Awards & Recognition

• NSCA Safety Excellence Award for best WHS Training Program.
• Finalist for best WHS Solution for a WHS Risk award.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Management
• Renewable Energy
• Modern Slavery
• Diversity, Equity, and Inclusion
• Employee Wellbeing
• Community Engagement
• Responsible Sourcing

Environmental Achievements

• Achieved interim 2030 emissions target for FY23
• Commissioned a 782kwp solar system at Huntingwood distribution centre
• Reduced total emissions by 5.21% to 73,659 tonnes of CO2-e
• Improved energy efficiency across sites
• Increased renewable energy usage
• 80% waste-to-landfill diversion target set for 2028
• Transitioning all operational control sites to renewable energy by 2025
• Reduced plastic packaging by 60% across Community Co organic meats
• Recycled over 45.5 tonnes of batteries in the Hardware pillar
• Recycled ~98 tonnes of batteries in the Food pillar

Social Achievements

• Received fifth consecutive citation as an Employer of Choice for Gender Equality
• Achieved 40/40/20 gender diversity target at Board and Group Leadership levels
• 34% improvement in Total Recordable Injury Frequency Rate (TRIFR)
• Established a sustainable finance facility of $525m
• Donated more than 336 tonnes of food and 22,160kg of essential grocery items to Foodbank
• IGA supports ~34,000 local organisations with $194m of financial, time and in-kind support
• Over 25,000 donations made to local grassroots organisations and national charity partners totalling more than $37m since 2010
• Expanded the number of participating stores in the in-store battery recycling program
• Launched Inclusive Leadership Program and Women in Leadership Program
• Received FlexReady Certification from FlexCareers with a score of 87%

Governance Achievements

• Full alignment to all sections of the Taskforce for Climate-related Financial Disclosures (TCFD) standard
• Improved data collection and reporting aligned with GRI standards
• Undertook an external audit of FY23 NGERS figures by PwC Australia
• Established a cross-functional working group to improve waste management
• Developed a code of practice for suppliers in relation to sustainable packaging guidelines
• Implemented a new tracking tool to record actions taken for business-critical and critical non-conformances
• Launched the NAVEX grievance service for supply chain workers

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (increased frequency and severity of extreme weather events)
• Rising energy costs
• Waste management (particularly packaging)
• Modern slavery risks in the supply chain
• Data limitations for Scope 3 emissions calculations

Mitigation Strategies

• Developed a Climate Change Risk and Opportunity Register
• Implemented energy efficiency projects and expanded solar power
• Established waste avoidance and recovery roadmap
• Implemented responsible sourcing program and supplier audits
• Improved data collection methods and expanded data sources for Scope 3 emissions

Supply Chain Management

Supplier Audits: 195 social audits conducted in the Food pillar supply base

Responsible Procurement

• SEDEX, Fair Farms, or equivalent industry-recognized schemes for suppliers
• Sustainable packaging guidelines
• Modern slavery training for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Energy efficiency improvements, renewable energy expansion

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Null

Third-party Assurance: PwC Australia (limited assurance on NGERS figures)

UN Sustainable Development Goals

• 7 (Affordable and Clean Energy)
• 13 (Climate Action)
• 8 (Decent Work and Economic Growth)

KPIs linked to SDGs; initiatives contribute to emissions reduction, renewable energy use, employee wellbeing, and community engagement

Sustainable Products & Innovation

• Community Co organic and free-range meats, Community Co coffee pods, Community Co convenience salads

Awards & Recognition

• 2022 NSCA Safety Excellence Award
• WGEA Employer of Choice for Gender Equality (five consecutive years)
• Mental Health First Aid Australia Gold Accredited Workplace Status