Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Product
• Planet

Environmental Achievements

• 48% of the Group’s single-use products are fully recyclable
• 66% of the Group’s product packaging is recyclable
• Development of shrink-free wrapping paper, eliminating plastic waste
• Launch of Smartwrap™, a plastic-free packaging solution
• Eco Nature™ range sales grew by 25% to over $2 million
• 75% of our trading European businesses shipping emissions were inset in FY2024

Social Achievements

• Launched Group-wide employee engagement survey: ‘Your Voice, Our Future’
• 10% reduction in accidents compared to the previous year
• DG Europe manufacturing site won the Kartoflex Safety Award
• Launched a global equality, diversity and inclusion calendar of events
• Charitable donations of $1.2m

Governance Achievements

• Continued strong shareholder support at the AGM (99.99% in favor of remuneration decisions)
• Formal succession planning and review process introduced
• Board received Equality, Diversity and Inclusion training

Climate Goals & Targets

Environmental Challenges

• Weaker consumer sentiment in key markets
• Disruption to international supply chains
• Pressures in the retail environment
• High inflation
• Disruption to shipping routes
• Spiking freight costs
• Managing credit risk in the US retail environment
• Softer consumer demand
• Increased risk from retailers in distress
• Tougher retail market in the UK and Australia

Mitigation Strategies

• Improved margins, tighter cost control, working capital reduction, and cash generation
• Improved efficiency
• Justifying pricing to customers
• Restructuring some businesses
• More collaboration between teams
• Strengthened and stable Board
• Invigorated senior leadership
• Secure financing
• Near-shoring opportunities
• Sustainable transportation solutions
• Strengthening sales and account management skills
• Improving category management skills
• Redesigning organizations to simplify operations
• Site rationalisation
• Lower-cost warehousing and domestic fulfilment opportunities
• Investing in design and development of products
• Identifying key brands and licensing opportunities
• Better adoption of social media and e-commerce
• Digitising and standardising intellectual property management
• Improving knowledge in e-commerce, data analysis, category management, and selling skills
• Consolidating ERP landscapes
• Developing improved market insights
• Leveraging experience and best practice
• Strengthening key account contact teams
• Reducing cost to serve through simplification of product assortments
• Expanding customer base in continental Europe and Australia
• Exploration of branding opportunities
• More resource allocation to Craft & Creative Play, Stationery, and Home Decor categories
• ERP consolidations and upgrades
• Investment in platforms enabling data and IP sharing
• Establishment of Insights Teams
• Improved segmentation of offers and more effective category management
• Identifying and exploring “bolt-on” M&A opportunities

Supply Chain Management

Supplier Audits: 365 audits

Responsible Procurement

• Sustainable sourcing of paper
• Focus on fair working conditions and human rights

Climate-Related Risks & Opportunities

Physical Risks

• Heat
• Precipitation
• Drought
• Fire

Transition Risks

• Carbon pricing
• Enhanced climate-related reporting obligations
• Mandates and regulation of existing products and services
• Costs to transition to lower emission technology
• Increased cost of raw materials
• Shift in customer/consumer values
• Emissions offset

Opportunities

• Cost savings from transition to lower emission technologies
• Shift in customer/consumer values

Reporting Standards

Frameworks Used: TCFD, UN SDGs

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Smartwrap™
• Eco Nature™ range
• Shrink-free wrapping paper

Awards & Recognition

• Tesco Supplier Innovation Award