Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste
• Natural Resources
• Ethical Trading
• Health and Wellbeing
• Customer Engagement

Environmental Achievements

• M&S operated stores, offices, warehouses and delivery fleets in the UK and Republic of Ireland became carbon neutral (from Jan 2012)
• Zero waste sent to landfill from M&S stores, offices, warehouses and construction (from Feb 2012)
• Reduced annual carbon dioxide emissions by 158,000 tonnes since 2006/07
• Improved energy efficiency across stores, offices and warehouses by 28%/sq ft
• 100% of wild fish from the most sustainable sources available
• 84% sustainable wood sourcing

Social Achievements

• Launched ‘shwopping’ clothes reuse and recycling programme
• Community partnership with UNICEF, donating at least £650,000 a year for three years
• 5,000th participant in the Marks & Start work experience programme
• Increased sales of Fairtrade food by 88% on 2006/07
• Launched a range of Fairtrade tea and coffee, packed at source by smallholders in Kenya

Governance Achievements

• Senior management bonuses linked to Plan A
• Responsible buying training for all colleagues who deal directly with Food and General Merchandise suppliers
• Revised Anti-Bribery Policy and training for all head office and International management

Climate Goals & Targets

Environmental Challenges

• Poor availability of sustainable timber in sufficient quantity and quality
• Fall in customer demand for organic food
• Difficulties in meeting target to source 10% Fairtrade cotton by 2012 due to poor availability of material and complexities of cotton supply chains
• Concerns over the sustainability of many of the raw materials used to make crop-derived bio-diesel
• Improving energy efficiency at top 100 clothing suppliers

Mitigation Strategies

• Continued work to achieve 100% sustainable wood sourcing
• Developed plans to phase-out 38 potentially hazardous pesticides
• Set a new 2015 commitment to source 25% sustainable cotton, including Fairtrade, organic, recycled and Better Cotton Initiative (BCI) cotton
• Conducted trials on a range of other fuels including electric, diesel/electric hybrids and compressed natural gas
• Developed a revised plan to improve energy efficiency at top 100 clothing suppliers

Supply Chain Management

Supplier Audits: 1,178/year (2011)

Responsible Procurement

• Ethical Model Factories
• Food Supplier Sustainability Framework
• Farming for the Future best practices
• Global Sourcing Principles

Climate-Related Risks & Opportunities

Physical Risks

• Potential changes in growth rate and geographical distribution of raw materials

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: CarbonNeutral®, British Standards Institutes’ PAS2060, ISO 14001

Third-party Assurance: Ernst & Young LLP

Sustainable Products & Innovation

• Carbon neutral chocolate
• Healthier milk
• Beneforte broccoli

Awards & Recognition

• Over 100 sustainability awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Reduction
• Community Transformation
• Wellbeing
• Human Rights
• Supply Chain Sustainability

Environmental Achievements

• Achieved carbon neutrality for four consecutive years through emissions reductions, renewable energy procurement, and carbon offsetting.
• Reduced UK and ROI waste by 28% over ten years and recycled all waste since 2012.
• Improved UK and ROI energy efficiency by 39% over ten years.
• Reduced UK and ROI store refrigeration gas carbon emissions by 67%.

Social Achievements

• Helped more than 17,000 people from disadvantaged communities through work experience programs.
• Donated over £130m and helped raise a further £70m for community programs.
• Ranked as the top retailer and second-best company overall in the inaugural Corporate Human Rights Benchmark.
• Launched Spark Something Good community volunteering events, inspiring over 4,000 volunteers.

Governance Achievements

• Established a revised governance structure and a reconstituted Plan A Committee.
• Improved transparency in supply chain and human rights reporting.
• Updated M&S Global Sourcing Principles to include Human Rights, gender equality, community, fairness, and small farmers.

Climate Goals & Targets

Environmental Challenges

• Insufficient progress on energy efficiency, food waste, and clothing recycling.
• Difficulties in connecting customers more closely with Plan A.
• Significant organizational change impacting performance on several commitments.

Mitigation Strategies

• Developed new Plan A commitments with a renewed focus on customer engagement on wellbeing, improving lives, and caring for the planet.
• Launched three big engagement campaigns on wellbeing, waste, and community transformation.
• Improved approach to human rights, resulting in top ranking in Corporate Human Rights Benchmark.

Supply Chain Management

Supplier Audits: 256 ethical audits conducted for food suppliers; 1014 ethical audits conducted for clothing and home suppliers

Responsible Procurement

• Global Sourcing Principles
• Supplier Exchange program
• Sustainability scorecard for food suppliers
• Animal Feed Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 50001

Third-party Assurance: DNV GL

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)

Plan A activities contribute to these goals through various initiatives (see page 43 for details).

Sustainable Products & Innovation

• Skin Kind jewellery
• Super Hydrate Day Cream

Awards & Recognition

• Over 240 awards since 2007 (see page 40-41 for highlights)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced M&S operated stores, offices, warehouses and delivery fleets greenhouse gas emissions by 13% on 2019/20 to 298,000 tonnes CO2e.
• Achieved carbon neutrality in operations.
• Increased food redistribution by 120%
• 87% of packaging classified as easily recyclable (+10% on 2019/20)
• Zero waste to landfill
• Reduced food waste in-store by almost 5,000 tonnes
• 86% less water and kinder chemicals used in new sustainable denim range
• Reduced refrigeration gas carbon emissions by 23% in UK and ROI

Social Achievements

• Donated 11.8 million meals (+126% on 2019/20)
• Launched a new initiative to turn unsold baguettes into garlic bread in 200 stores
• Launched POWER programme promoting gender equality and creating safe environments for female workers in India (36,436 women participated since 2016)
• Raised over £8.3m for NHS Charities Together
• Provided free access to Unmind mental health app for all colleagues
• Offered 350 UK placements through Marks & Start programme (-81% on 2019/20, but with 87% of those completing the programme offered a role)
• Donated over £14.9m to community and charities (+210% on 2019/20)

Governance Achievements

• Established a new Board Sub-Committee on Environmental, Social & Governance (ESG)

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacted on all stakeholders and disrupted several programmes.
• Supply chain disruptions due to the pandemic.
• Availability of segregated palm oil derivatives and fractions in non-food supply chain.
• Challenges in achieving full supply chain traceability beyond Tier 1 suppliers.
• Inability to conduct traditional face-to-face third-party audits due to pandemic restrictions.

Mitigation Strategies

• Used technology effectively to listen to worker concerns across supply base.
• Developed alternative sourcing strategies.
• Continued to work with suppliers and peers to increase demand for RSPO segregated palm oil.
• Implemented alternative approach reviews and virtual assessments for suppliers.
• Launched a new Food Human Rights standard requiring suppliers to demonstrate their approach to human rights due diligence.

Supply Chain Management

Supplier Audits: 11,511 farms audited in 2020/21 (livestock); alternative approach reviews and virtual assessments implemented due to pandemic.

Responsible Procurement

• M&S Select Farm Standards
• Global Sourcing Principles
• Higg Facility Environmental Module
• Social & Labour Convergence Programme (SLCP)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN Global Compact

Certifications: ISO 50001

Third-party Assurance: DNV

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 6 (Clean Water and Sanitation)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Plan A initiatives contribute to these goals through various actions related to sustainable sourcing, food redistribution, emissions reduction, and stakeholder collaboration.

Sustainable Products & Innovation

• Sustainable denim range; garlic bread from surplus baguettes; Eat Well healthier food range.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Animal Welfare
• Health & Wellbeing
• Ethical Trade & Human Rights
• Community Investment
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 location-based emissions by 34% against 2016/17 baseline.
• Reduced GHG emissions linked to refrigeration by 72% against 2006/07 baseline.
• Removed 75 million pieces of plastic packaging from Food business.
• 91% of packaging recyclable (up from 87% the previous year).

Social Achievements

• Increased base pay for 40,000 UK colleagues to £10.00 per hour.
• Launched ‘People Behind the Product’ human rights training for 95% of colleagues.
• Donated £50,000 to UNICEF UK and £1.5m to UNHCR and UNICEF to support Ukraine.
• Donated 56% of edible surplus food (6,231 tonnes) from UK stores.

Governance Achievements

• Reset Plan A with a singular focus on becoming a net zero business by 2040.
• Linked £850m Revolving Credit Facility to delivery of net zero goals.
• Updated Global Sourcing Principles and developed M&S Supplier Partner Guidelines.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to Covid-19, geopolitical uncertainty, and inflation.
• Shortage of UK food workers increasing risk of human trafficking and forced labour.
• Challenges in achieving 100% Fairtrade approval for Assam tea.
• Availability of segregated palm oil derivatives remains a challenge.

Mitigation Strategies

• Increased pay and offered bonuses for key roles, invested in training, and supported suppliers.
• Active participation in Modern Slavery Intelligence Network and Food Network for Ethical Trade.
• Working closely with supplier partners and Fairtrade Foundation to address challenges in Assam.
• Working with supplier partners and peers to increase demand for RSPO segregated palm oil.

Supply Chain Management

Supplier Audits: 10,972 farms audited; 83 top fabric suppliers completed Higg Index FSLM.

Responsible Procurement

• M&S Global Sourcing Principles
• M&S Food Human Rights Standard
• M&S Supplier Partner Guidelines
• Higg Index FEM and FSLM

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Growth in plant-based food market
• Circular fashion initiatives

Reporting Standards

Frameworks Used: GRI, SASB, UN Global Compact, TCFD

Third-party Assurance: DNV

Sustainable Products & Innovation

• Plant Kitchen range
• School uniforms with recycled materials
• M&S Jeans Redesign capsule collection
• Fill Your Own refillable grocery concept

Environmental Metrics

ESG Focus Areas

• Climate Change
• Animal Welfare
• Ethical Trade
• Healthier Food
• Community
• Human Rights

Environmental Achievements

• Reduced Scope 1 & 2 emissions by 3%
• Removed 60m units of plastic since 2018
• Launched ‘BYOB’ initiative saving 10 million units of plastic annually
• Became the first retailer to only sell slower-reared higher welfare chicken across fresh products
• Reduced food waste by a further 24% on last year
• Removed best before dates from over 300 fruit and vegetable products

Social Achievements

• Invested over £100m in colleagues’ pay and benefits
• Increased national hourly rate to a minimum of £10.90
• Launched Sparks Pay, a digital credit account
• Launched CommUnity, an internal social platform
• Launched ‘Straight to Stuart’ colleague suggestion scheme, implementing over 200 suggestions
• Supported over 10,000 disadvantaged young people through Marks & Start Programme
• Donated £5.8m to various charitable organisations

Governance Achievements

• Female majority Board (55%)
• Enhanced ESG governance process with the introduction of an ESG Business Forum
• Restructured the Audit Committee to become the Audit & Risk Committee
• Completed a review and refresh of risk appetite statements

Climate Goals & Targets

Environmental Challenges

• Uncertain trading environment (cost of goods inflation, energy price volatility, increasing interest rates, potential decline in consumer spending, supply chain pressures)
• Business transformation challenges (modernising supply chain, IT infrastructure, store estate, omni-channel experience)
• Joint venture investment complexities (aligning shareholder perspectives)
• Business continuity risks (operational failures, disruptive global events)
• Product safety and integrity risks (food safety incidents, maintaining product integrity)
• Talent, culture, and capability challenges (attracting and retaining talent, managing labour costs)
• Information security threats (data breaches, cyber-attacks)
• Corporate compliance and responsibility challenges (meeting legal and regulatory obligations)
• Climate change and environmental responsibility challenges (reducing environmental impact, meeting net-zero targets)
• Liquidity, funding, and financial market risks (access to funding, managing foreign exchange and interest rate changes)
• EU border challenges (cost consequences, operational friction)

Mitigation Strategies

• Strong leadership team, three-year plan, proactive supplier engagement, robust business continuity processes
• Transformation programmes aligned to business strategy, dedicated strategy and transformation roles, programme governance principles
• M&S nominated directors on JV boards, aligned operational and people structures, monitoring of internal audit and risk management processes
• Experienced Business Continuity team, risk-based BC assessments, proactive testing of plans
• Group-wide safety risk assessment, safety policies and compliance standards, crisis management planning
• Investment in pay and wellbeing benefits, talent development programmes, Business Involvement Group engagement
• Information security policies, dedicated information security function, risk-based cyber security assurance programme
• Code of Conduct, mandatory training programmes, risk-based assurance and monitoring systems, confidential reporting line
• Established Plan A programme, net-zero targets, product and raw material standards, business-led forums
• Undrawn revolving credit facility, cash and cash equivalents, review of three-year plan, hedging policies
• Regular engagement with the Board, broadening local sourcing, operating a virtual customs warehouse environment

Supply Chain Management

Responsible Procurement

• Code of Conduct
• Supplier sustainability requirements
• Ethical trade programmes
• Sustainable sourcing policies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Volatility in supply of raw materials
• Impact on agricultural production

Transition Risks

• Policy and legislation changes (carbon tax)
• Market and reputational risks (failure to meet commitments)
• Technology availability
• Reliance on third parties

Opportunities

• Revenue opportunity from climate-conscious customers
• Energy efficiency and resilience
• Resource efficiency and energy source

Reporting Standards

Frameworks Used: GRI, TCFD, S.172 Statement

Third-party Assurance: DNV Business Assurance Services UK Limited

Sustainable Products & Innovation

• Plant-based products
• Products made from more sustainable sources (cotton, polyester, MMCF)

Environmental Metrics

ESG Focus Areas

• Net Zero
• Responsible Sourcing
• Waste and Circularity
• Animal Welfare
• Community

Environmental Achievements

• Removed over 100 million pieces of plastic packaging.
• Reduced Scope 1 & 2 emissions by 1% vs 2022/23.
• 76% of fibres responsibly sourced (up from 68%).
• Achieved 100% RSPCA Assured milk.

Social Achievements

• Invested £89m in retail pay, raising hourly rate to at least £12.
• Introduced Neonatal Leave policy providing up to 12 weeks additional leave.
• Enhanced family leave policies, increasing paternity leave to six weeks at full pay and maternity/adoption leave to 26 weeks at full pay.
• Raised £1.7m for YoungMinds.

Governance Achievements

• Restructured the International business.
• Reshaped early careers programmes.
• Introduced ‘The Pulse’ colleague engagement survey.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical issues and extreme weather.
• Cost of goods inflation.
• Cybersecurity threats.
• Meeting net zero targets.
• Maintaining a high-performance culture during transformation.

Mitigation Strategies

• Strong and varied senior leadership team.
• Transformation programmes aligned to the business strategy.
• Information security and data protection policies with mandatory training.
• Plan A programme with clear accountabilities.
• Investment in competitive pay and wellbeing benefits.

Supply Chain Management

Responsible Procurement

• Code of Conduct
• Supplier sustainability requirements
• Ethical trading programmes
• Sustainable sourcing of raw materials.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Impact on agricultural production

Transition Risks

• Carbon tax
• Regulatory changes
• Market shifts
• Changes in customer preferences

Opportunities

• Development of energy-efficient products
• Revenue opportunity from climate-conscious customers

Reporting Standards

Frameworks Used: TCFD

Certifications: RSPCA Assured

Third-party Assurance: DNV Business Assurance Services UK Limited

Sustainable Products & Innovation

• M&S Food x ZOE Gut Shot
• Recyclable takeaway coffee cups
• Plant-based products

Awards & Recognition

• Menopause Friendly Accreditation

Environmental Metrics

ESG Focus Areas

• Deforestation-free soy sourcing
• Recycled polyester usage
• Scope 1 and 2 emissions reduction
• Plastic packaging reduction

Environmental Achievements

• Reduced Scope 1 and 2 emissions from the property estate by 26,968 metric tonnes of CO2e (cumulative)
• Removed 252.2 million plastic pieces from packaging portfolio (cumulative)

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Data limitations in soy sourcing (supplier data gaps, reliance on estimations)
• Data limitations in recycled polyester reporting (incomplete data on trims, filling materials, reliance on estimations and wastage factors)
• Data limitations in emissions reduction reporting (reliance on estimations for missing energy consumption data)
• Data limitations in plastic reduction reporting (reliance on estimations for product quantities)

Mitigation Strategies

• Using third-party specialists (3keel) for data collection and analysis in soy sourcing
• Applying industry standard conversion factors for soy volume estimations
• Applying wastage factors to account for material loss in polyester calculations
• Using a digital reporting system for improved data collection and transparency in emissions reporting
• Using sales, order, and waste data to estimate product quantities in plastic reduction reporting

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with third-party specialists for data collection and analysis
• Using M&S ‘A’ List Suppliers for raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: ISAE 3000

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed