John Lewis Partnership Annual Report and Accounts 2015

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

SOURCING review

Globalisation of supply chains, the emerging impacts of a changing climate, and the availability of natural resources are among a number of issues that are becoming a greater risk to our business.

At Waitrose, we work with around 800 own brand suppliers. We stock 3,400 product ranges in our smallest convenience shops, up to 27,600 in our largest shops – and each product has some form of environmental or social impact.

Sourcing sustainably

In addition to the Partnership’s Responsible Sourcing Code of Practice, Waitrose has specific policies for the responsible sourcing of fish and shellfish, and the responsible use and sustainable sourcing of soya and palm oil, which we communicate to our suppliers. In 2014, we updated our policy on fish and shellfish to take into consideration the changing sustainability status of certain fish groups.

See the table below for the progress we are making against our commitments to source these ingredients sustainably.

Raising farm standards

We believe we have a role to play in ensuring commercial farming is sustainable in the long- term. This is supported by our tradition of working with suppliers and growers who share our values.

The Waitrose Farming Partnership

Sharing insights and ideas through the supply chain is a priority for us. We are building strong, long-term trusted relationships with our suppliers. The Waitrose Farming Partnership is a good example of this. It brings together all our farmers and offers them even more of the benefits that come from being a Waitrose supplier. Long-term partnerships allow for long- term planning and early adoption of practices that lead to improved quality and sustainability of the farming operation.

Through our Farming Partnership we are confident that our meat, milk, eggs and fish, are of the high quality that customers expect, produced with the highest standards of farming and respect for the environment, and with a fair price paid to British farmers.

For more on our sourcing: www.johnlewispartnership.co.uk/sourcing

Sustainable sourcing

Ingredient Soya

Commitment

100% of the soya in own-brand Waitrose products to come from certified sustainable sources, including RTRS Certified soya and Pro Terra Certified soya by year-end 2015/16.

Fish

Continue to only stock fish and shellfish from responsibly sourced wild capture fisheries and farming operations and work towards 100% third-party verification by year-end 2016/17 for own label fish and shellfish.

Palm oil

Source 100% certified sustainable palm oil (CSPO) in our own-brand ingredients.

Progress in 2014/15 On track

We were commended by WWF in its ‘Soya Scorecard’ for 2014.

On track

At present 78% of seafood sales in Waitrose are from third-party certified sources.

Waitrose received the MSC UK Award for 2014 Best Fish Counter.

Already achieved

We continue to find ways to source more segregated and mass balance CSPO rather than using book and claim certificates.

Applying our Principles to supplier relationships

Timber

Use 100% FSC or PEFC or recycled certified timber and paper products by December 2015.

On track Currently over 90% from certified sources.

EU timber regulation compliance due diligence mechanism set up with consultancy SEC.

A good example of the way we work with suppliers is our relationship with Dovecote Park – our dedicated beef supplier who we have been working with exclusively for almost 20 years. Dovecote Park only produces British beef, sourced directly from 900 trusted farmers, who are members of the Waitrose beef supply group. The short supply chain – direct from farm to supermarket – is a positive example in retail. The majority of our cattle are slaughtered on site to ensure complete traceability is maintained from farm to shelf. Dovecote Park’s confidence in our relationship means they are able to set fair, consistent and competitive prices with farmers.

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