John Lewis Partnership Annual Report and Accounts 2015

56

John Lewis Partnership plc Annual Report and Accounts 2015 Partnership performance (continued)

SOURCING review

Rule 96 of our Constitution says that “The Partnership’s relationships with its suppliers must be based, as with its customers, on honesty, fairness, courtesy and promptness. It looks for a similar attitude throughout its supply chains.

In particular, the Partnership expects its suppliers to obey the law and to respect the wellbeing of their employees, their local communities and the environment”.

The challenges we face

We face a number of issues in sourcing our products, and these are very different to the ones we faced when the Partnership was first established. For example, the globalisation of supply chains has meant that tracing the original source of all products, and ensuring they are sourced responsibly, is not an easy task. Many retailers are under growing pressure from consumers to address serious human rights issues in the supply chain, the exploitation of natural resources, impacts on climate change, and issues with product safety and quality.

In 2014, we carried out an assessment of material sustainability issues linked to our core business activities to help us prioritise and respond to these issues (see more on page 72 for John Lewis and page 64 for Waitrose).

Our approach

We pride ourselves on the mutually beneficial relationships we hold with our many suppliers around the world. Long-term relationships with suppliers give us confidence in our supply chain, and give our suppliers confidence in doing business with us. Our approach also means customers can continue to trust our products and our business.

At a Partnership level we have robust supplier procedures that are enshrined in the Partnership’s supplier Code of Practice on Responsible Sourcing. Adherence to the Code is monitored through regular inspections of supplier sites by third parties and our own Partners. Where problems occur, we work with suppliers to identify the root causes and support them to make long- term improvements.

We aim to uphold internationally agreed standards of labour, in particular those set by the International Labour Organisation. We expect our suppliers to treat workers fairly, honestly and with respect for their human rights and wellbeing. See our human rights statement on page 117.

In 2014, we supported the introduction of the Modern Slavery Act and the UK Government’s commitment to eradicate the abuse and exploitation of workers, both in this country and overseas.

As well as improving workers’ lives, our approach and policies also reflect our ambitions to ensure a responsible approach to farming and to ensure transparency in supply chains to help us source raw materials sustainability.

WWF Forest Campaign

Last year we spoke to more than 20 organisations to help us understand and address our social and environmental footprint.

In 2014 we supported the WWF UK Forest Campaign. We contribute towards the rapidly growing demand for wood, paper and agricultural products, so we have a clear role to play in ensuring all the forest- related products we use come from a sustainable source and do not irreparably destroy the world’s forests. Being a part of the campaign can serve to incentivise positive change and put in place mechanisms to enable the market to trade in 100% sustainable timber by 2020.

Collaborating for change

We work closely with numerous organisations to continue ensuring the integrity of our supply chain. For example, we are active members of the Ethical Trading Initiative. We also engage with organisations such as Cotton Connect, The Fairtrade Foundation, The Better Cotton Initiative, The Soil Association, Compassion in World Farming and WRAP (Waste Resources Action Programme). Please see page 65 for more on our partnership with The Fairtrade Foundation.

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