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Corporate responsibility review

Sainsbury’s also recognises the value it can bring to communities in developing countries and we are the UK’s largest retailer of Fairtrade products, accounting for around one-third of all UK Fairtrade sales. In August 2008 we celebrated the first anniversary of our Fair Development Fund by introducing dried fruit and nuts from Uganda, Malawi, Mozambique and Zambia, the first food produced from grants awarded at the fund’s launch in August 2007. A major aim of the fund, run by Comic Relief and financed by Sainsbury’s with £1 million over four years, is to develop long-term sustainable solutions for producers in developing countries to meet Fairtrade standards and start selling internationally on fairer terms.

We remain committed to promoting high standards of animal welfare and recognise that in using sustainable resources in our products, such as FSC Timber, we minimise the impact of our products on the environment.

Highlights during the year

RSPCA Freedom Food chicken: Sales of our RSPCA Freedom Food chicken are up over
130 per cent year-on-year. Sales of all our higher welfare chicken (including Freedom Food, Free range and Organic) are up over 30 per cent year-on-year.

Cage-free Eggs: In February 2009 we became the first major supermarket to stop selling eggs from caged hens. This means that over half a million hens will no longer be kept in battery cages, meeting our 2010 target a whole year ahead of schedule and two years before government legislation comes into effect.

Fairtrade: Our Fairtrade sales this year hit £210 million, maintaining our position as the largest retailer of Fairtrade products in the UK by sales value. We now account for around one-third of all Fairtrade sales in the UK.

RSPCA Freedom Food salmon: In June 2008 we launched our ‘Responsibly sourced’ salmon, making us the first major supermarket to convert all our farmed salmon to the RSPCA Freedom Food standard. All our fresh and smoked farmed salmon is now 100 per cent Scottish and meets the RSPCA Freedom Food standard.

Respect for our environment

Sainsbury’s recognises that tackling issues such as climate change involves working both upstream in its supply chains and downstream with customers. On the issue of carbon reduction we are working hard to reduce our operational footprint by improving the energy efficiency of stores and the distribution network and by increasing the amount of renewable energy used.

Sainsbury’s champions the ‘Reduce, Re-use, Recycle’ approach to minimise waste from its business and customer waste via packaging and food waste. We are on target to send zero food waste to landfill by the end of 2009. We have also promoted the re-use of shopping bags since the mid 1990s. In April 2008 we increased the recycled content of our single use bags from 33 per cent to 50 per cent and started issuing Nectar loyalty points to customers re-using their own bags when shopping in Sainsbury’s stores in June 2008.

Highlights during the year

Environmentally efficient stores: In August 2008 we opened our flagship green store in Dartmouth, Devon. The store has achieved reductions in its overall CO2 emissions by 54 per cent through the use of renewable energy and has reduced energy consumed from the national grid by over 50 per cent. Rainwater harvesting has reduced mains water usage by 60 per cent, saving around one million litres of mains water every year. Most of the energy saving features identified from Dartmouth are now being replicated in our new stores.

Energy reduction programme for existing stores: A project was launched in 2007 to improve the energy efficiency of our existing stores. Over 200 stores have so far been completed, achieving savings of over 53,000 tonnes of CO2 every year as a result. In 2009 we will continue the scheme, targeting 100 stores during 2009/10.

Carrier bags: Over the past three years the company has reduced the environmental impact of its carrier bags by 63 per cent as measured by the amount of virgin plastic used and over the past two years has reduced the number of bags issued by 58 per cent.

Food waste: Following the success of a food waste trial we are on track to send zero food waste to landfill in 2009. Food waste from 38 stores is currently sent for anaerobic digestion in Northamptonshire where it is broken down into fertiliser and methane gas, used to generate electricity. This approach will be rolled out nationwide in 2009.

Making a positive difference to our community

Sainsbury’s stores are at the heart of the communities they serve and with around 150,000 colleagues throughout the UK, we are a major contributor to local employment. We support local communities through programmes such as food donation schemes and Sainsbury’s Active Kids.