98 John Lewis Partnership plc Annual Report and Accounts 2016 Directors’ report


“ Our governance model is different and has stood the test of time, but we should always be prepared to challenge it in the context of the changing world in which we do business to ensure that it continues to serve the purpose laid down by our Founder.”


Keith Hubber General Counsel and Company Secretary


The Directors present their report and the audited financial statements for the year ended 30 January 2016.


The Directors are required to make a statement on key events during the Partnership’s year, confirming the state of the business and certifying that it is being run responsibly.


Principal activity and


future developments The Partnership’s principal activity is retailing, with the main trading operations being the Waitrose and John Lewis businesses. Waitrose and John Lewis operate in a number of different formats including John Lewis department stores, John Lewis at home stores, a John Lewis liaison office in Gurgaon, India, Waitrose supermarkets and convenience stores, on-line (waitrose.comand johnlewis.com), business to business contracts in the UK and abroad and ancillary manufacturing activities (together the Partnership). The Company controls the entities listed in note 16. An indication of likely future developments in the Partnership can be found on page 3.


Corporate governance The Partnership’s statements on corporate governance can be found in the Governance section of these financial statements on pages 58 to 99. These also include the Audit and Risk Committee report, the Corporate Responsibility Committee report, the Chairman’s Nominations Committee report and the Remuneration report. The Governance section forms part of this Directors’ report.


Other information that is relevant to the Directors’ report, and which is incorporated by reference into this report, can be located as follows:


a Employee involvement, equal opportunities and employees with disabilities on page 72


a Groceries Supply Code of Practice (GSCoP) on page 74


a Greenhouse gas emissions data on page 47


The Company has chosen, in accordance with Section 414 C(11) of the Companies Act 2006, and as noted in this Directors’ report, to include certain matters in its Strategic report that would otherwise be required to be disclosed in this Directors’ report. The Strategic report can be found on pages 1 to 57 of the Annual Report and Accounts 2016.


Political donations The Partnership made no political donations.


Directors’ interests Under the Constitution of the Partnership, the Executive Directors, Elected Directors and Partners’ Counsellor, as employees of John Lewis plc, are necessarily interested in the 612,000 Deferred Ordinary Shares in John Lewis Partnership plc, which are held in trust for the benefit of employees of John Lewis plc and certain other subsidiaries.


Any conflicts of interest are disclosed on page 70 and details of the Directors’ service agreements and notice periods are given on page 97.


Capital structure and purchase


of shares At 30 January 2016, the Partnership had in issue 3,696,995 5% Cumulative Preference stock, 500,000 7.5% Cumulative Preference stock (together ‘the Preference Shares’), 612,000 Deferred Ordinary Shares and 104,169,594 SIP Shares. Under the Constitution, the 612,000 Deferred Ordinary Shares in John Lewis Partnership plc are held in trust for the benefit of employees of John Lewis plc and certain other subsidiaries within the Partnership.


Greenhouse gas emissions – methodology


The Partnership has reported on all of the emission sources as required under the Companies Act 2006 (Strategic Report and Directors’ Reports) Regulations 2013. Prior years’ data is reported in line with our financial reporting period. 2015 data is reported on an approximate calendar year basis which comprises the period from 21 December 2014 to 26 December 2015. Going forward, the annual results will be prepared on an approximate calendar year basis.


The reporting followed the 2013 UK Government environmental reporting guidance (Chapter 2) and used the GHG Protocol Corporate Accounting and Reporting Standard (revised edition), data gathered to fulfil our requirements under the CRC Energy Efficiency scheme, and, where available, emission factors from UK Government’s GHG Conversion Factors for Company Reporting.


Data has been calculated using Defra-DECC 2015 emissions factors, with the exception of certain refrigerants, and some emissions sources associated with our Leckford farm which are taken from industrial and academic sources. A change in refrigeration emission factors, included in scope 1, has required restating emissions data for prior years.


See www.johnlewispartnership.co.uk/csr for the basis upon which data is reported.


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