Sustainability Policy and Targets to 2015

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1 Sustainability Policy and Targets to

2 Here at Asda our approach to sustainability is based on the belief that protecting the environment and saving people money go hand in hand. This belief is backed up by the fact we ve made great strides in terms of our own environmental performance that have directly helped us to lower our operating costs and, in turn, provide lower prices for our customers. We d like to think our record speaks for itself. Since 2005 we ve reduced energy use in our existing stores by 33% and in new stores by 45%,saving the equivalent of 60,000 homes every year. We travel less too. Today our goods travel 18 million fewer road miles than they did in 2005, which also cuts carbon, and helps our bottom line. Asda hates waste, of any kind, and we re proud to say we ve diverted 96.5% of our waste away from landfill and all food waste. Through this policy and backed up by our sustainability goals, Asda has the following aims: Corporate Reduce our carbon footprint year on year in absolute terms Ensure the business becomes resilient to climate change Reduce embedded carbon in our products and supply chain through collaboration with suppliers Waste Support WRAP to help our customers waste less food in their homes Support WRAP to reduce grocery product and packaging waste in our supply chain Support WRAP to reduce carbon impact of packaging and develop innovative packaging solutions Partner with FareShare to ensure food waste (fit for consumption) is sent to charity Products Support our farmers and their communities Produce more food with less waste and using fewer resources Sustainably sourced key agricultural products Collaborate with suppliers to develop the most sustainable and resilient supply chain in the UK Energy Ensure our stores and depots will consistently become more energy efficient Reduce the negative environmental impact from our refrigeration Increase our usage of renewable energy through self-generation and procurement Reduce emissions from transport operations and trial innovative low carbon solutions Through these commitments we will hold true to the belief that it doesn t cost the Earth to be green. We will continue to transform our operational programmes to increasingly reduce our environmental impacts. It s a journey we re excited to be on, one that promises to reap benefits for the environment, Asda, our partners and, most importantly, our customers. 2

3 CORPORATE Continue reducing our carbon footprint year on year 10% reduction (absolute) 15.8% reduction (absolute) Using an adaptation approach ensure the business is increasingly resilient to climate change All operational business functions and global produce supply chains mapped and partnered with the Environment Agency on practical projects Significant project underway with PwC covering all fresh food supply chain Continue to reduce embedded carbon in our products and supply chain Support WMT project to eliminate 20 million metric tonnes of embedded carbon by end 2015 versus 2010 (absolute) Active member of Walmart project team, particularly on deforestation and livestock WASTE sectoral target to reduce UK household food and drink wastes (Courtauld 3, Target 2) Reduce household food and drink waste by 5% by end 2015 versus 2012 sectoral target to reduce grocery product and packaging waste in supply chain (Courtauld 3, Target 3) Reduce grocery ingredient, product and packaging waste by 3% by end 2015 versus 2012 sectoral target to reduce carbon impact of packaging (Courtauld 3, Target 1) and continue to develop innovative packaging solutions Improve packaging design to maximise recycled content, improve recyclability and deliver protection to reduce food waste with no increase in the carbon by end 2015 versus

4 PRODUCTS Increase products sourced from local suppliers by end ,000 products from 400 suppliers Sustainable agriculture Support farmers and their communities Expand existing initiatives including Farm Links and education schemes by end 2015 Improve health and livelihood of women in agricultural communities by end 2015 We re working with over 5,000 farmers through the Farm Link programmes and have extended Open Farm Sunday to our dairy farms Baselines for products sourced from Africa are being established for women s contribution and financial benefit. Two female agricultural PhDs in Kenya are supported by Asda Reduce fresh food waste and utilise unavoidable waste using sustainable methods by 10% farm to fork by end 2015 Work underway to establish farm to depot workplan and pilots completed with two crop products Produce more food with less waste and fewer resources Invest 99m in perishable supply chain by end 2015 (absolute) target three years early in 2012 Faster Fresh programme added extra shelf life to over 1000 products Deliver programme disseminating RandD for beef, pork, lamb, dairy, produce, poultry by end 2015 BeefLink, LambLink, DairyLink and PorkLink fully established and maintaining engagement Sustainably source key agricultural products Sustainable palm oil in Asda brand products by end 2015 (absolute) All of the 14,000 tonnes of palm oil and palm kernel oil used in Asda supports the RSPO scheme. 30% is segregated, 70% Green Palm Continue to collaborate with suppliers to develop the most sustainable and resilient supply chain in the UK All suppliers actively using the Asda Sustain and Save Exchange Sustain and Save Exchange rolled out to all Fresh, Chilled and Frozen suppliers 4

5 ENERGY Consistently become more energy efficient Maintain flat usage by 2020 versus 2012 irrespective of growth New target in reduced energy use in store by 33% Reduce the negative environmental impact from our refrigeration 8% leakage rate (absolute) 20% reduced to 7.1% leakage rate (absolute) Increase our usage of renewable energy 30% (absolute) by % Reduce emissions from transport operations 60% (intensity target vs cases delivered) 47% (intensity target) 5

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