Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• 11% reduction in CO2 emissions per £ million retail sales since 2006/07
• 35% reduction in tonnes of waste disposed per £ million retail sales since 2006/07
• 72% of reported timber volume sold was from proven, well-managed forests or recycled sources

Social Achievements

• Contributions to charity/community projects worth an estimated £1.39 million in 2008/09
• Employees raised £553,000 for charity partners
• Employees spent around 29,000 work hours volunteering in the local community
• Sustainability training for new staff at B&Q UK, Castorama France and Screwfix

Governance Achievements

• Specific CR criteria included in performance reviews for senior management
• CR programme and performance reviewed by URS Corporation Limited
• Group CR data independently reviewed by Ernst & Young

Climate Goals & Targets

Environmental Challenges

• Work more closely with suppliers to extend the range of innovative and affordable eco products
• Ensure that eco products are defined consistently across the Group
• Achieve more ambitious carbon reductions through a switch to renewable energy sources
• Make new stores ‘zero carbon’
• Radically rethink waste management to achieve ‘zero waste’
• Reach every employee to understand their role in achieving CR objectives
• Establish systems to track employee engagement on CR across all businesses
• Provide information to customers on long-term financial and environmental benefits of eco products
• Change customer purchasing habits through effective marketing
• Focus on community activities that bring real benefit in tough economic times
• Ensure an effective community investment strategy across all businesses
• Increase the scope and reach of supplier partnership projects
• Put in place a consistent approach to ethical auditing across all businesses
• Factor in the long-term benefits of investing in sustainability during economic recession
• Get customers to use more energy-saving products

Mitigation Strategies

• Development of eco-design guidelines for seven popular products
• Initiatives to improve energy and transport efficiency, reducing waste and water use
• Sustainability training programmes for store employees
• Sharing of best practice across the Group
• High-profile marketing drives to engage consumers (e.g., B&Q UK’s One Planet Home® range)
• Development of guidelines on community investment
• Kingfisher Sourcing Organisation audits of factories (411 audits in 2008/09)
• Collaborative approach to address key issues (e.g., B&Q UK’s participation in Quarry Working Group)
• Development of a new Quality Management Tool incorporating ethical and environmental criteria

Supply Chain Management

Supplier Audits: 411 audits in 2008/09

Responsible Procurement

• Factory audits
• Training
• Partnership projects

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• B&Q UK’s One Planet Home® range
• Castorama France’s La Maison Éco products

Awards & Recognition

• Ruban d’Honneur in Corporate Sustainability and Environmental Awareness categories of the European Business Awards
• Second in the Observer Good Companies Guide 2008
• Platinum ranking in the Business in the Community (BITC) 2008 CR Index
• Gold Class and leader of the general retail sector in SAM’s Corporate Sustainability Assessment
• Prime status in the Oekom CR rating for the retail sector

Environmental Metrics

ESG Focus Areas

• Innovation
• Energy
• Timber
• Communities

Environmental Achievements

• 25% reduction in CO2 equivalent emissions from energy and transport per £ million retail sales since 2006/07
• 64% reduction in store waste disposed per £ million retail sales since 2006/07
• 81% of reported timber volume sold from proven well-managed forests or recycled sources
• B&Q UK achieved 100% responsibly sourced timber products

Social Achievements

• B&Q UK trained 1,250 staff to be in-store Eco Advisers
• £1,598,000 invested in charity and community projects
• 26,000 employee work hours spent on community volunteering activities
• B&Q UK ran a three-month employee engagement campaign with 6,000 participants

Governance Achievements

• Steps CR programme launched in 2005 achieved policy target level in UK and France by 31 January 2011

Climate Goals & Targets

Environmental Challenges

• To challenge normal business paradigms to move towards more sustainable patterns of production and consumption.
• To reduce our total environmental impact while still growing our business.
• Implementing consistent ethical and environmental standards across all international operations.
• Businesses outside the UK and France not achieving full compliance with Group requirements on the Steps CR programme.

Mitigation Strategies

• Working with Forum for the Future to develop a new 2020 CR vision.
• Working to ensure Group standards are met across all businesses in 2011.
• Steps CR programme to embed CR across all businesses.

Supply Chain Management

Supplier Audits: 478 factory audits

Responsible Procurement

• 100% responsibly sourced timber for B&Q UK

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Decking boards made from waste polystyrene
• Carpet underlay made of 100% recycled clothing
• Low-cost solar panel kit
• Loft insulation product made of 85% recycled polyester
• Home Eco paint made from recycled paint

Awards & Recognition

• 2010 Observer Ethical Business Award
• 2010 Business Commitment to the Environment (BCE) Award

Environmental Metrics

ESG Focus Areas

• Products & Innovation
• Energy & Carbon
• Wood & Paper
• Communities
• People
• Suppliers & Partners
• Environment

Environmental Achievements

• Increased the percentage of responsibly sourced wood and paper in products to 96%
• Reduced property portfolio energy intensity by 15% from a 2010/11 baseline
• Increased waste recycled to 74%
• Reduced carbon emissions from dedicated store and home delivery fleets

Social Achievements

• Increased community investment to £1,785,000
• Reduced employee accident rate to 11,611 per 100,000 full-time equivalent employees
• Increased percentage of women in senior management

Governance Achievements

• Increased percentage of women on the board to 44%
• Improved ethical assessment for own/exclusive brand products

Climate Goals & Targets

Environmental Challenges

• Data limitations and exclusions across various metrics due to differences in legislation, reporting requirements, and data collection processes across different operating companies and countries.
• Incomplete data on wood and paper used in construction.
• Challenges in measuring and quantifying social impact.

Mitigation Strategies

• Progressive extension of data scope over the years.
• Working to improve data collection processes for construction contractor accidents and wood and paper in construction.
• Exploring different methodologies to improve social impact measurement.

Supply Chain Management

Supplier Audits: 89% of factories had an onsite audit or desktop assessment in the past three years

Responsible Procurement

• Kingfisher Supply Chain Workplace Standards
• Kingfisher Supplier Workplace Ethical and Environmental Assurance (SWEEA) Policy Standard

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• 'Best in Class' products
• 'Compliant' products

Environmental Metrics

ESG Focus Areas

• Sustainable homes
• Energy and water efficiency
• Circular economy
• Healthier homes
• Community engagement
• Ethical sourcing
• Climate change
• Chemicals management

Environmental Achievements

• 15% reduction in Scope 1 and 2 emissions compared to 2016/17 baseline.
• Reduced property energy intensity by 2.6% since 2016/17 baseline.
• Reduced property carbon intensity by 22% over the same period.
• Zero waste to landfill achieved at Screwfix.
• 99.6% waste diversion from landfill at B&Q.
• 57% of kitchen and bathroom basin taps sold were water-saving products.

Social Achievements

• Launched strategic partnerships with Shelter, Red Cross, and Abbé Pierre Foundation.
• Community programs directly benefited at least 60,000 people.
• 66% of suppliers using Sedex (up from 40% the previous year).
• 47% of high-risk production sites had an ethical audit in the last two years.
• Piloted worker training program in Turkey's ceramics supply chain.

Governance Achievements

• Published first science-based target for carbon emissions reduction (approved by SBTi).
• Women accounted for 55% of the Board.
• Updated Code of Conduct to include sections on modern slavery and tax evasion.
• Implemented new online approval and reporting procedure for third-party due diligence, gifts, hospitality, and conflicts of interest.

Climate Goals & Targets

Environmental Challenges

• Slower than expected progress in several areas.
• Data system challenges prevented reporting on timber sourcing and sustainable home products.
• Not on track to meet targets for waste recycling and landfill diversion.
• Challenges in achieving transparency on chemicals use in supply chain.
• Excessive overtime remains a challenge in China.

Mitigation Strategies

• Centralizing wood and paper data systems and processes.
• Integrating targets into waste contracts.
• Piloting different approaches to increase chemical transparency.
• Launching a project to raise awareness among suppliers about excessive overtime.
• Developing sustainability roadmaps for priority materials.

Supply Chain Management

Supplier Audits: 995 production sites audited in the past two years (47% of high-risk sites)

Responsible Procurement

• Human Rights Policy
• Code of Conduct
• Supply Chain Workplace Standards
• Ethical Sourcing and Supplier Workplace Ethical and Environmental Assurance (SWEEA) Policy
• Sedex platform
• EcoVadis platform (for GNFR suppliers)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Increased operational and raw material costs
• Reduced demand for goods

Opportunities

• Growing market for energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, UN Sustainable Development Goals

Certifications: Null

Third-party Assurance: Deloitte LLP (limited assurance)

UN Sustainable Development Goals

• Goal 7
• Goal 11
• Goal 12
• Goal 13
• Goal 15

Report details how initiatives contribute to these goals.

Sustainable Products & Innovation

• Métisse insulation
• Safe by Nature plant food
• easyGrow bedding plants
• Pro Grow compost
• Green pallets
• GoodHome air purifying paint

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Colleagues
• Planet
• Customers
• Communities

Environmental Achievements

• 81% of wood and paper in products responsibly sourced; 100% of catalogue paper responsibly sourced.
• 27% reduction in scope 1 and 2 emissions (market-based) since 2016/17.
• New 1.5 °C SBT approved by the SBTi.
• Launched new partnership with the Rainforest Alliance to help become Forest Positive by 2025.
• LED lighting installed in 91% of stores.
• Investment in on-site renewables generating 7.5 million kWh and delivering £1.3 million in financial benefit.

Social Achievements

• New Board-approved ‘Inclusivity and Diversity’ strategy.
• Launched first all-colleague share plan.
• Created 4,800 new jobs in stores in the UK, France, and Poland.
• Improved gender balance at plc Board (23% of senior management is female).
• Colleague engagement score 81 versus retail benchmark 66 (2 points increase vs prior year).
• Prioritized mental health during the pandemic, providing resources and training.

Governance Achievements

• Responsible Business plan overseen by a Board-level committee.
• Linked a portion of colleague bonus program to performance against Responsible Business priorities.
• Entered into a £550m revolving credit facility linked to Responsible Business targets.

Climate Goals & Targets

Environmental Challenges

• Challenges relating to the availability of compliant wood and paper in some markets.

Mitigation Strategies

• Expanded data collection to include all banners; improvements to data collection process highlighted challenges.

Supply Chain Management

Supplier Audits: 73% of high-risk production sites had an ethical audit over the last two years

Responsible Procurement

• Partnered with Slave Free Alliance to strengthen approach to modern slavery.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Inclusion and Diversity
• Climate Change and Forest Positive
• Greener and Healthier Homes
• Community Investment

Environmental Achievements

• Reduced scope 1 and 2 greenhouse gas emissions by 24.5% since 2016/17
• 87.2% of wood and paper in products responsibly sourced
• 100% renewable electricity for operations in UK, Iberia, Poland, Romania, and France
• Invested £19.6 million in energy efficiency projects

Social Achievements

• Reached 25.2% women in senior leadership and 37.7% in management
• Delivered 2.3 million learning hours
• 3,890 apprentices across the Group
• Community investment worth £4.0 million, reaching over 800,000 people

Governance Achievements

• Integrated Responsible Business measures into long-term incentive plan
• £550m three-year revolving credit facility linked to Responsible Business targets
• No health, safety, or environmental prosecutions or fines

Climate Goals & Targets

Environmental Challenges

• Decarbonising heating in larger stores
• Fully decarbonising fleet due to lack of commercially viable electric heavy goods vehicles
• Improving data to better understand scope 3 footprint
• Phasing out non-recyclable plastic packaging
• Developing a peat-free ericaceous compost
• Improving data on ethnic diversity

Mitigation Strategies

• Developing detailed plans to reach net-zero emissions by 2040
• Working with suppliers and peer companies to decarbonise heating
• Switching to lower carbon fuels and transitioning to electric vehicles
• Developing action plans to increase disclosure of production sites by suppliers
• Working with suppliers and growers to develop peat-free products
• Working on improving data collection in 2022

Supply Chain Management

Supplier Audits: 804 ethical audits completed for high-risk production sites (84% of disclosed sites)

Responsible Procurement

• Code of Conduct
• Supply Chain Workplace Standards
• Restricted Substances Lists
• Sustainable Packaging Policy

Climate-Related Risks & Opportunities

Physical Risks

• Operational and supply chain disruption from physical hazards

Transition Risks

• Rising energy costs
• Reputational damage from not meeting climate commitments

Opportunities

• Growing market for Sustainable Home Products

Reporting Standards

Frameworks Used: UN Global Compact, UN Sustainable Development Goals, TCFD, SASB, GRI, CDP, WDI

Certifications: ISO 27001, NIST, PCI DSS

Third-party Assurance: DNV Business Assurance Services UK Limited

Sustainable Products & Innovation

• GoodHome high-quality peat-free compost
• Métisse insulation
• LED lighting
• Water-efficient taps
• Chemical-free gardening ranges
• Products made from recycled plastic

Awards & Recognition

• DC Pension Scheme of the Year award (Kingfisher Pension Scheme)

Environmental Metrics

ESG Focus Areas

• Colleagues
• Planet
• Customers
• Communities

Environmental Achievements

• Reduced operational carbon emissions by 62.0% against a 2016/17 baseline
• 96.6% of wood and paper used in products responsibly sourced
• Sustainable Home Products (SHP) represented 49% of Group sales

Social Achievements

• Women in senior leadership increased to 28.6%
• Women in management increased to 39.6%
• New target announced for more than 20,000 colleagues to complete an apprenticeship, traineeship or external qualification by 2030
• Reached almost 1.2 million people this year through community projects

Governance Achievements

• Completed an internal Board effectiveness review
• Introduced a new component to the Board effectiveness review allowing for individual feedback for each Director

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic conditions in all markets
• Cost of living pressures on customers
• Weaker 'big-ticket' sales
• Unseasonal weather
• Low consumer confidence in France
• Tough comparatives and weak consumer environment in Poland, Iberia, and Romania
• Supply chain disruptions

Mitigation Strategies

• Cost reduction programmes
• Flexing staffing levels and variable costs
• Supplier negotiations
• Accelerated structural cost reduction initiatives in France and Poland
• Strengthened actions around staff costs and discretionary spend
• Updated supply and logistics three-year roadmap
• Business continuity plans
• Partnerships with key transportation and logistics suppliers
• Demand forecasting
• Supply chain visibility tools
• Store-based fulfilment for customer orders
• Diversification of sourcing footprint
• Robust process for selecting suppliers

Supply Chain Management

Responsible Procurement

• Code of Conduct
• Responsible Business strategy
• Risk-based anti-bribery and corruption due diligence
• Supplier ethical risk assessments and audits

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Facilities disruption
• Raw material supply disruptions

Transition Risks

• Consumer preference shifts
• Liability risks
• Policy risks (carbon pricing)
• Reputational risks

Opportunities

• Increased sales of SHP
• Market leadership on emissions and climate performance
• Competitive advantage

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Third-party Assurance: DNV (limited assurance on selected ESG data)

Sustainable Products & Innovation

• Green Star marked products
• MamaTerra range of natural gardening products