KPI PERFORMANCE. This document shows how we have performed against our Key Performance Indicators as a Group and in our operating markets
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1 PERFORMANCE This document shows how we have performed against our Key Performance Indicators as a Group and in our operating markets We manage our business using a balanced scorecard - the Steering Wheel. It has five segments - Community, Operations, People, Finance and Customer. The Community segment of the Steering Wheel covers our five Community Promises. We have Key Performance Indicators for each Community Promise and set targets each year as a Group and in our operating markets to assess our performance against them. You can find out more about our corporate responsibility strategy and how we manage our performance in our Corporate Responsibility Review 2012 ( Key: We met our annual target We missed our annual target
2 Community Promise: Caring for the environment We have an ambitious goal to become a zero carbon business by To help us get there we have set ourselves a number of interim targets including halving carbon emissions from our 2006/7 baseline portfolio of stores by Reduce C02 emissions (%) from existing stores and distribution centres reported as a percentage reduction against previous year Reduce C02 emissions (%) from existing stores reported as a percentage reduction against previous year Country Performance Performance Performance Target Target 2012/13 Group 7.8% 7.7% 5% n/a 3.5% UK 7.8% 8.6% 5.3% n/a 4.0% China 5.5% 9.9% 5.2% n/a 7.0% Malaysia -4.8% 10.5% 4.5% n/a 3.0% South Korea 6.2% 5.5% 3.0% n/a 1.9% Thailand 9.0% 3.8% 3.9% n/a 5.5% Czech Republic 4.6% -2.15% 3.2% n/a 1.5% Hungary 6.0% 6.9% -7.7% n/a 1.0% Ireland -6.6% -19.9% 12.9% n/a 5.0% Poland 14.8% % 2.9% n/a 0.5% Slovakia 4.4% -19.4% 2.9% n/a 1.5% Turkey 25.0% 4.4% 4.6% n/a 1.5% Reducing CO2 from stores and distribution centres In 2011/2 we decided to track carbon emissions from stores separately from those of distribution centres as the carbon intensity of distribution centres differs significantly from stores. results were also unduly influenced by whether or not a distribution centre opened in a Tesco market in 2006/7. By changing this measure Tesco can have a more accurate picture of where carbon reductions are being delivered.
3 Community Promise: Caring for the environment We have an ambitious goal to become a zero carbon business by To help us get there we have set ourselves a number of interim targets including making sure that by 2020 new stores emit half the CO2 of a store built in Reduce C02 emissions (%) from new stores and distribution centres reported as percentage reduction against 2006/7 baseline Reduce C02 emissions (%) from new stores reported as percentage reduction against 2006/7 baseline Country Performance Performance Performance Target Performance Target 2011/ /13 Group 28.8% 28.8% n/a n/a 31% 32% UK 24.1% 30.2% n/a n/a 30.4% 30.0% China 29.4% 24.0% n/a n/a 26.4% 28.0% Malaysia 32.5% 38.0% n/a n/a 40.1% 24.0% South Korea 27.1% 24.0% n/a n/a 26.3% 24.8% Thailand 40.0% 42.0% n/a n/a 38.9% 43.5% Czech Republic 17.0% -44.0% n/a n/a 41.4% 42.0% Hungary 31.0% 38.0% n/a n/a 38.0% 42.0% Ireland -55.6% 56.0% n/a n/a 39.0% 30.0% Poland 19.5% -57.0% n/a n/a 12.7% 13.5% Slovakia 17.5% 23.0% n/a n/a 42.1% 42.0% Turkey 29.9% 39.0% n/a n/a 32.8% 33.0% US n/a n/a n/a n/a 49.4% 52.0% Reducing CO2 from stores and distribution centres In 2011/2 we decided to track carbon emissions from stores separately from those of distribution centres as the carbon intensity of distribution centres differs significantly from stores. results were also unduly influenced by whether or not a distribution centre opened in a Tesco market in 2006/7. By changing this measure Tesco can have a more accurate picture of where carbon reductions are being delivered.
4 Community Promise: Caring for the environment We have an ambitious goal to become a zero carbon business by To help us get there we have set ourselves a number of interim targets including reducing the carbon emissions per case of goods delivered by 25% by 2020 against a baseline of 2011/12. Reduce the amount of CO2 emitted in our distribution network to deliver a case of goods reported as a percentage reduction against previous year Country Performance Performance Performance Target Group 6.4% 7.4% 10% 3% UK 8.5% 12.0% 12.8% 4.0% China -29.5% 1.0% -5.7% 3.5% Malaysia -2.7% 12.0% 16.9% 7.3% South Korea 25.0% 8.3% 10.8% 7.7% Thailand -5.6% -30.0% -15.4% -8.6% Czech Republic 7.4% 17.0% 7.4% 3.0% Hungary 8.6% 3.0% 12.4% 3.0% Ireland 38.6% 37.0% 0.6% 3.8% Poland 11.6% -10.0% 2.7% 8.0% Slovakia -3.0% 11.0% 12.9% 3.0% Turkey -14.1% -4.0% -15.5% -10.8% US n/a n/a -21.9% -9.5%
5 Community Promise: Actively Supporting Local Communities In difficult economic times supporting communities becomes even more important. In 2011/12 we donated over 74.5 million to charities and good causes through direct donations, gifts in kind, staff time and management costs. We also supported staff and customer fundraising events to raise over 10 million as a Group. Staff & customer fundraising Country Performance Performance Performance Target Group 7.4m 10.0m 10.1m 13.5m UK 5.4m 7.2m 6.4m 10m China 31,663 64, , ,700 Malaysia 98, , , ,600 South Korea 157, , , ,000 Thailand 260, , , ,200 Czech Republic 241,400 28, , ,900 Hungary 45, , , ,900 Ireland 672, , , ,400 Poland 53, , , ,070 Slovakia 271, , , ,500 Turkey 173, , , ,800 US n/a n/a n/a n/a
6 Community Promise: Providing customers with healthy choices Our customers want us to help them make choices that are better for them and their families. We make sure that our products are clearly labelled with nutritional information and we are developing healthy ranges across the Group. We also recognise that a healthy life is not just about healthy eating, so we invest in programmes to encourage our customers to get active. Staff & customers active Number of people Group 6.2m 7.2m 8.7m 9.3m UK 2.6m 2.55m 2.9m 2.5m China 21,972 38, , ,300 Malaysia 11,154 16,593 14,750 10,000 South Korea 319, , , ,900 Thailand 3.2m 4.2m 5.1m 6m Czech Republic 4,500 9,400 11,000 11,000 Hungary 5,518 6,180 7,800 8,000 Ireland n/a n/a 3,100 2,100 Poland n/a 5,121 6,150 3,420 Slovakia 4,530 8,300 12,600 14,000 Turkey 12,207 29, , ,300 US n/a n/a n/a n/a
7 Community Promise: Creating good jobs and careers Our people are our greatest asset. We are committed to spotting and developing talent so that our staff, wherever they work, can fulfil their potential. In 2011/12, 5.9% of our people were being trained for their next job through official training programmes like our 'Options' and 'advanced leadership' programmes. Staff being trained for their next job Country Performance Performance Performance Target Group 6% 6.2% 5.9% 6.0% UK 1 in 27 1 in 30 1 in 43 1 in 43 China 10.0% 10.0% 12.9% 10.0% Malaysia 11.0% 11.7% 12.5% 13.0% South Korea 7.1% 9.6% 12.7% 8.9% Thailand 5.3% 17.6% 12.7% 10.0% Czech Republic 11.2% 10.0% 11.6% 10.0% Hungary 9.8% 10.0% 8.7% 8.8% Ireland n/a n/a 3.4% 3.0% Poland 7.0% 8.0% 11.6% 10.0% Slovakia 17.6% 13.0% 12.2% 10.0% Turkey 19% 7% 11% 13.0% US n/a n/a 11.2% 10.0%
8 Community Promise: Buying and selling our products responsibly Our anonymous Supplier Viewpoint Survey is completed by suppliers from our global supply base to give us insight into our suppliers perceptions of working with Tesco so that issues are made visible and addressed and strengths are celebrated. The survey asks suppliers to complete 52 mandatory multiple choice questions, and several optional free-text questions. We use two measures from Supplier Viewpoint in our Community s: Response rate and % positive responses to the question I am treated with respect. Response rate of suppliers Country Performance Performance Performance Target Group 51% 54% 56% 60% UK 51% 54% 51% n/a China 30% 63% 46% n/a Malaysia 40% 36% 43% n/a South Korea 49% 53% 61% n/a Thailand 45% 42% 51% n/a Czech Republic 66% 46% 53% n/a Hungary 61% 66% 71% n/a Ireland 37% 43% 61% n/a Poland 73% 66% 68% n/a Slovakia 61% 46% 54% n/a Turkey 60% 57% 58% n/a US n/a n/a 66% n/a We do no set a country level target for the response rate of suppliers to our Supplier Viewpoint survey, but measure our performance on this measure to track progress.
9 Community Promise: Buying and selling our products responsibly Our anonymous Supplier Viewpoint Survey is completed by suppliers from our global supply base to give us insight into our suppliers perceptions of working with Tesco so that we are aware of any issues and can address them. The survey asks suppliers to complete 52 multiple choice questions, and several optional free-text questions. We use two measures from Supplier Viewpoint in our Community s: Response rate and % positive responses to the question I am treated with respect. Supplier Viewpoint: % of positive responses for all questions Supplier Viewpoint: % of positive responses to the question 'I am treated with respect' Country Performance Performance Performance Target Performance Target 2011/ /13 Group 80% 82% n/a n/a 74% 74% UK 81% 83% n/a n/a 78% 75% China 71% 81% n/a n/a 61% 65% Malaysia 75% 74% n/a n/a 53% 58% South Korea 85% 86% n/a n/a 58% 70% Thailand 77% 78% n/a n/a 65% 70% Czech Republic 74% 68% n/a n/a 68% 63% Hungary 65% 81% n/a n/a 82% 78% Ireland 78% 80% n/a n/a 75% 72% Poland 88% 85% n/a n/a 79% 70% Slovakia 74% 76% n/a n/a 78% 80% Turkey 74% 75% n/a n/a 77% 79% US n/a n/a n/a n/a 93% 85% In 2011/12 we replaced the measure on the % of positive responses for all questions in the Supplier Viewpoint survey with a more relevant measure that focuses on whether we act responsibly and fairly in our dealings with suppliers. From 2011/12 we measured our performance for the % of responses to the specific question I am treated with respect.
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