Foundations questionnaire Scoring guide. Updated October 2016 v2.4

Transcription

1 Foundations questionnaire Updated October 2016 v2.4

2 Foundations questionnaire Introduction Net Positive is our ambition to contribute positively to some of the big challenges facing the world, while creating a more valuable and sustainable business for our stakeholders. We aim to transform the way we operate across four key priority pillars wood and paper, energy and carbon, innovation, communities to become Net Positive by On our journey towards Net Positive, we have set 53 targets that run up until We refer to these targets as our Foundations. Our targets cover our four key priorities as well as three other issues. The Foundations questionnaire tracks progress against our targets. It is a self-assessment questionnaire which is completed by our retail operating companies (OpCos),, and. We also have a number of targets which we monitor at level. We have identified the targets which are applicable to each one on pages The questionnaire is completed once a year. This ebook document sets out the scoring guide for each target and is for reference only. The answers should be provided online at: 2

3 Our targets Our targets cover our four Sustainability priorities wood and paper, energy and carbon, innovation and communities. These are the areas where we have a significant impact and can make the greatest positive contribution. In addition, our targets cover three other issues people, suppliers and partners and environment. There are 53 targets in total. Most of our targets run through to 2020 and include a 2016 milestone. There are a few issues where we have only set a 2016 target, and these are clearly indicated. Our targets are reviewed annually and will continue to evolve over time to ensure they remain relevant and in line with our overall business and sustainability ambitions. A list of our targets is on pages The scoring guide for each target is on pages Sustainability priorities Wood and paper page 14 Energy and carbon page 24 Innovation page 35 Communities page 47 Other issues People page 51 Suppliers and partners page 59 Environment page 65 How we monitor progress The Foundations questionnaire monitors the percentage progress towards each target. The following information is required for each target: % progress towards the target. Name of the target sponsor. Description of KPI progress. Description of key initiatives. Supporting evidence attachment. For each target, there is a scoring guide and a summary of key steps on how to achieve the target. 3

4 Progress against numeric targets (% progress and description of KPI progress) is completed by the Kingfisher Sustainability team (using KPI data submitted by OpCos in the KPI questionnaire). Note: Qualitative information on key initiatives which support numeric targets should however be entered by the OpCos under Description of key initiatives during the Foundations review period. The scores for some non-numeric Foundations that are linked to the KPI questionnaire will be reassessed by the Kingfisher Sustainability team in Phase 2 after the related KPI data has been reviewed. Please note that depending on the result of the KPI data, the final score may be revised as part of this review process. These targets are Wood and paper Tropical deforestation, Innovation Sustainability accounting, People Diversity and inclusion, Environment Indirect transport impacts, Environment Packaging and Environment Biodiversity. If a target is not relevant, OpCos should score themselves as. The Kingfisher Sustainability team review the responses and approve the submission. A verified symbol is displayed next to the scores that have been approved by the Kingfisher team. In addition, Internal Audit review a sample of results as part of our Net Positive assurance processes. How we communicate the results We publish the Foundations results in our Internal KPI Report. We also publish a summary of the Foundations results in our annual Sustainability Report which is available on our website at In our Sustainability Report, we provide a summary of results at operating company and levels: Operating company results: We publish scores for each operating company across our key issues (our four key priorities and three other areas of focus). We present the score for each issue as an average by adding together the individual scores for the targets relevant to that issue and then dividing by the number of targets related to that issue. results: We publish a score for each target. For the 34 operating company targets this score is calculated as follows: For qualitative targets: individual operating company scores are weighted by the sales contribution of each operating company and added up into the score. For quantitative targets: a score is allocated based on KPI performance data. 4

5 List of targets The table shows a list of our Foundations targets. The scoring guide for each target is shown in the next section. The table indicates the targets which are applicable to our retail operating companies (OpCos),, and. We also have a number of targets which we monitor at level. We allocate a score for the targets shown with a tick. As the work with our operating companies to help achieve other product related targets we therefore monitor progress of the on some targets (indicated with a symbol ) but only score progress of our OpCos refers to the 2016/17 financial year and 2020 refers to the 2020/21 financial year. Please note that we have not included the target notes in the table below. These are shown on the individual target pages (see next section) starting from page 14. Sustainability priorities Key: score allocated; progress update provided (no score) Numeric target linked to KPI. Wood and paper Target Net Positive wood and paper Page 14 Net Positive 2020 target: responsibly sourced wood and paper in all our operations milestone: Achieve our 2016 milestones on wood and paper used in products, packaging, Goods Not For Resale (GNFR) and construction. Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Products wood and paper Page target: of the wood and paper we sell to be responsibly sourced milestone: 9 of the wood and paper we sell to be responsibly sourced. Packaging wood and paper Page target: of packaging which contains wood fibres to be responsibly sourced milestone: To develop a methodology and data collection system for achieving our 2020 target on responsible sourcing of wood fibres in packaging. GNFR wood and paper Page target: of the wood and paper used in our Goods Not For Resale (GNFR) to be responsibly sourced milestone: All paper used in catalogues and customer marketing to be responsibly sourced. 5

6 Wood and paper Target Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Construction wood and paper Page target: of wood and paper procured for construction and fit-out to be responsibly sourced milestone: 9 of wood and paper procured for construction and fit-out to be responsibly sourced. Tropical deforestation Page target: None of our products to be sourced from materials that are linked to tropical deforestation (including products containing wood and/or paper sourced from forests in tropical countries palm oil and cow leather) milestone: All new products containing wood and/or paper sourced from forests in tropical countries to comply with Kingfisher s Wood and Paper Policy Standard. Reforestation Page target: Implement a unified group forest or woodland enhancement initiative that makes a substantial quantifiable step towards our aspiration of creating more forest than we use milestone: to have at least one forest or woodland enhancement initiative that makes a quantifiable contribution towards the aspiration of creating more forest than we use. Sustainable forestry Page target: Work with partners to measure the impact of FSC certification on forests, biodiversity and forest communities and assess the impact of our responsible wood and paper sourcing. Strategic sourcing Page target: Demonstrate resilient supply chain relationships that can guarantee the future provision of responsibly sourced wood and paper across all of the s major wood and paper categories (by volume or value) milestone: Demonstrate a resilient supply chain relationship that can guarantee the future provision of responsibly sourced wood and paper for at least one of the s major wood and paper categories (by volume or value). 6

7 Energy and carbon Target Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Net Positive customer energy Page 24 Net Positive 2020 target: 38 TWh of energy saved for customers across our international businesses milestone: 11 TWh of energy saved for customers across our international businesses. Net Positive own energy Page 26 Sustainable lifestyles marketing Page 28 Net Positive 2020 target: 45% reduction in the energy intensity (kwh/m 2 ) of our property portfolio from a 2010/11 baseline milestone: 15% reduction in the energy intensity (kwh/m 2 ) of our property portfolio from a 2010/11 baseline target: To use our global brands and marketing to help shift our millions of customers towards sustainable lifestyles milestone: To give customers comprehensive information and/or advice in-store and online to help them with their sustainable choices. Marketing Page target: Embed sustainable home products into the marketing strategy for each of our brands/divisions/ operating companies target: Evidence of sustainable home products embedded in the annual marketing plan and/or sustainable home products featuring in at least three marketing campaigns. Total carbon footprint Page 30 Renewable energy Page target: reduction in our absolute carbon footprint (tonnes CO2e) from a 2010/11 baseline milestone: No increase in our absolute carbon footprint (tonnes CO2e) from a 2010/11 baseline target: We will develop a renewable energy plan for our own operations by 2016/17. Property carbon intensity Page target: reduction in the carbon intensity (CO2e/m 2 ) of our property portfolio from a 2010/11 baseline milestone: 2 reduction in the carbon intensity (CO2e/m 2 ) of our property portfolio from a 2010/11 baseline. 7

8 Innovation Target Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Net Positive closed loop products Page 35 Net Positive 2020 target: 1,000 Kingfisher products with closed-loop credentials milestone: 300 Kingfisher products with closed loop credentials. Sustainable home products: Best in Class Page target: To achieve 1 of sales from the best in class products that help create a more sustainable home milestone: To achieve 5% of sales from the best in class products that help create a more sustainable home. Sustainable home products Page target: To achieve of sales from products that help create a more sustainable home milestone: To achieve of sales from products that help create a more sustainable home. Energy-using products Page target: All energy-using products to meet best practice standards on energy efficiency milestone: of energy-using product sales to meet best practice standards on energy efficiency. Water-using products Page target: All water-using products to meet best practice standards on water efficiency milestone: of water-using product sales to meet best practice standards on water efficiency. Standardised policies Page target: To standardise company policies across all relevant product sustainability issues milestone: Have signed off at least half of company policies across a range of key product sustainability issues. Sustainability of own-brand Page target: Demonstrate leadership on sustainable innovation across our own brands (focussing on relevant sustainability issues to each brand) milestone: All own-brands to conform to Kingfisher minimum sustainability criteria. 8

9 Innovation Target Circular value chains Page target: Work with partners across the product lifecycle to achieve ten circular value chains milestone: Work with partners across the product lifecycle to achieve five circular value chains. Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Alternative services Page target: Explore and trial alternative business models, such as product hire and repair, which encourage a perpetual reuse of products. Learning stores Page target: Every operating company to develop at least three Learning Stores and to have delivered, or confirmed, a site for a flagship store that champions low carbon and sustainability innovation. Sustainability accounting Page target: Calculate and account for the impact and value of our sustainability strategy to the business and communicate this to investors and employees. Communities Target Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Net Positive communities Page 47 Community Page 49 Net Positive 2020 target: 4,000 community projects completed by our people that deliver Better Homes, Better Lives milestone: 1,500 community projects completed by our people that deliver Better Homes, Better Lives target: We will create a unified plan for community involvement across our business, focusing on our core purpose, by 2016/17. 9

10 Communities Target Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Sharing skills Page target: Promote sharing of skills and know how in local communities by building online community platforms in the UK and France to help link people together. Other issues Key: score allocated; progress update provided (no score) Numeric target linked to KPI. People Target Performance management Page 51 Senior management training Page target: Integrate Net Positive into the performance management systems for all relevant employees milestone: Integrate Net Positive into the performance management systems for the top managers from around the target: Top 250 managers from around the completed development programme on Net Positive issues. Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Sustainable home product training Page target: Every employee has the right skills to help customers lead sustainable lifestyles milestone: Our store staff who give advice to customers are trained on sustainable home products and services so they can help customers make more sustainable choices. Net Positive engagement Page 54 Diversity and inclusion Page target: To have Net Positive engagement and development programmes to motivate all our employees to become more sustainable at work and at home milestone: To include Net Positive in induction training for every new employee target: To be recognised as a best practice company for equality and diversity within our local retail markets milestone: All our operating companies to have in place an action plan to become a best practice retailer in their market on equality and diversity. 10

11 People Target Employee H&S Page target: 2 reduction in the employee accident rate from a 2012/13 baseline milestone: 1 reduction in the employee accident rate from a 2012/13 baseline. Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Customer and contractor H&S Page target: Develop a -wide accident reporting framework for customers and onsite contractors and set a reduction target. Employee surveys Page target: Improve our employee engagement by extending engagement surveys to cover all employees. Suppliers and partners Target Supplier ethical assessment Page target: All GFR suppliers will meet or exceed our ethical and environmental standards milestone: High priority GFR suppliers will meet or exceed our ethical and environmental standards. Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Supplier footprint Page target: Require our top 40 GFR suppliers to develop a waste, carbon and water reduction plan by 2020, towards delivering a impact reduction milestone: of our top 40 GFR suppliers have demonstrated that they have waste, carbon and water reduction plans in place in line towards delivering a impact reduction by Goods Not For Resale (GNFR) Page 62 SRI indices and CR ratings Page target: Our key Goods Not For Resale (GNFR) contracts will meet or exceed our sustainability standards milestone: Process to apply our sustainability standards to key Goods Not For Resale (GNFR) contracts target: Kingfisher to maintain its position in key SRI indices and CR ratings. 11

12 Suppliers and partners Target Ethical business conduct Page target: Maintain highest standards of ethical business conduct through ongoing implementation of and compliance with the Governance Manual and Code of Conduct milestone: Operating companies to demonstrate robust reporting and compliance with the Governance Manual and Code of Conduct. Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Environment Target Waste Page target: Achieve zero waste to landfill from our own operations milestone: Recycle at least of the waste we generate. Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Direct transport impacts Page target: 2 reduction in CO2 emissions from our direct transport impacts from a 2010/11 baseline milestone: 1 reduction in CO2 emissions from our direct transport impacts from a 2010/11 baseline. Indirect transport impacts Page target: Demonstrate a comprehensive programme of action to reduce the overall carbon footprint of our indirect transport impacts milestone: Have made progress in measuring and reducing the carbon footprint of our indirect transport impacts, e.g. in a key supply chain. Green travel Page target: Demonstrate proactive green travel programme to minimise the environmental impact of travel by employees and customers milestone: Some key actions taken on green travel to minimise the environmental impact of travel by employees or customers. Own water footprint Page target: To understand the water footprint of our own operations. 12

13 Environment Target Target relevant to retail OpCos? Target relevant to other Kingfisher business units? Chemicals Page target: None of our Goods Not for Resale (GNFR), own-brand, unbranded or exclusive brand products and packaging will contain the unregulated chemicals of concern we have committed to remove milestone: Work is in progress to phase out, substitute or eliminate the unregulated chemicals of concern we have committed to remove from our ownbrand or exclusive brand products. Packaging Page target: Packaging on all own-brand and exclusive brand products to conform to Kingfisher packaging standards milestone: Packaging on new own-brand and exclusive brand products to conform to Kingfisher packaging standards. Construction waste Page target: 9 of construction waste recycled in new build and major refurbishments milestone: of construction waste recycled in new build and major refurbishments. Biodiversity Page target: To enhance biodiversity on new-build projects, major refurbishments and existing stores milestone: Biodiversity audits and action plans to be completed for all new-build projects and major refurbishments. Peat elimination Page target: All growing media for sale and use in our operations in the UK to be from sustainable sources, ahead of the government 2020 and 2030 deadlines milestone: 65% of bagged growing media (by volume) sold in the UK to be from sustainable sources. 13

14 Foundations targets scoring guide Wood and paper sustainability priority Net Positive target wood and paper Net Positive 2020 target: responsibly sourced wood and paper in all our operations milestone: Achieve our 2016 milestones on wood and paper used in products, packaging, Goods Not For Resale (GNFR) and construction. Note: Responsibly sourced wood and paper is from proven well-managed forests or recycled sources according to Kingfisher s Wood and Paper Policy Standard. Target for:, progress update provided (no score) This will help target holders to decide which % score to select. For more guidance go to Key ways to achieve this target. Score : None or minimal progress. Score : If all individual targets score or more then the score could be. Score : 2016 milestones achieved (i.e. 9 of the wood and paper we sell to be responsibly sourced; paper used in catalogues and customer marketing to be responsibly sourced; and methodology and data collection system for responsible sourcing of wood fibres in packaging). Score : If all individual targets score or more then the score could be. Score (target achieved): responsibly sourced wood and paper in all our operations.* *Note: Over 99.5% of wood and paper responsibly sourced can count as meeting this target. Key ways to achieve this target See individual targets on wood and paper used in products, wood and paper used in construction, and wood and paper used in packaging and GNFR. Kingfisher KPI reporting requirements Yes CR KPI questionnaire collects data on wood and paper. Further guidance for this target Kingfisher Wood and Paper Policy Standard. 14

15 Products wood and paper 2020 target: of the wood and paper we sell to be responsibly sourced milestone: 9 of the wood and paper we sell to be responsibly sourced. NUMERICAL TARGET: In December please add commentary to Description of key initiatives box. % score not to be completed in December submission, will be completed by Bioregional in April Note: Responsibly sourced wood and paper is from proven well-managed forests or recycled sources according to Kingfisher s Wood and Paper Policy Standard. Target for: OpCo, progress update provided (no score) This will help operating companies to decide which % score to select. For more guidance go to Key ways to achieve this target. Score : None or minimal progress. Score : At least 45% of wood and paper we sell (by volume) to be from proven well-managed forests or recycled sources + remaining products to comply with recognised Due Diligence requirements (proof of origin, species and legal status). Score : At least 9 of wood and paper we sell (by volume) to be from proven well-managed forests or recycled sources + remaining products to comply with recognised Due Diligence requirements (proof of origin, species and legal status). Score : At least 95% of wood and paper we sell (by volume) to be from proven well-managed forests or recycled sources + remaining products to comply with recognised Due Diligence requirements (proof of origin, species and legal status). Score (target achieved): of wood and paper we sell (by volume) to be from proven wellmanaged forests or recycled sources + commitment to maintain this status within the commercial strategic plan, with a Board level sponsor.* *Note: Over 99.5% of wood and paper responsibly sourced can count as meeting this target. Note: This target applies to all products containing wood including those partially made of wood and paper based products, e.g. wallpaper, sandpaper. Key ways to achieve this target Internal targets each operating company to set targets (with timescales) to increase the amount of wood and paper we sell from proven well-managed forests or recycled sources in line with time-scales (9 by 2016 and by 2020). Monitor KPIs using Kingfisher timber data collection template and verification process. Product lead training train product leads on sustainable wood and paper. Supplier requirements set sustainability requirements as a condition of supply for new wood products, e.g. in Vendor Buying Agreements. As a minimum, these should specify compliance with legal requirements e.g. EUTR and with Kingfisher s Wood and Paper Policy Standard. Monitor compliance check new wood and paper products comply with the sustainability requirements under Kingfisher s Wood and Paper Policy Standard. Note: Kingfisher has developed a timber module within the QMT to help operating companies monitor compliance. Action plans agree action plans with suppliers to phase out wood and paper products that are not compliant with Kingfisher s Wood and Paper Policy Standard starting with high volume/high risk products. Customer communication tell customers about the benefits of responsibly sourced wood and paper. Kingfisher KPI reporting requirements Yes CR KPI questionnaire collects data on wood and paper in products. See KPI Wood and paper questionnaire: Wood and paper used in products. Further guidance for this target Kingfisher Wood and Paper Policy Standard. 15

16 Packaging wood and paper 2020 target: of packaging which contains wood fibres to be responsibly sourced milestone: To develop a methodology and data collection system for achieving our 2020 target on responsible sourcing of wood fibres in packaging. NUMERICAL TARGET: In December please add commentary to Description of key initiatives box. % score not to be completed in December submission, will be completed by Bioregional in April Note: Responsibly sourced wood and paper is from proven well-managed forests or recycled sources according to Kingfisher s Wood and Paper Policy Standard. Target for: This will help target holders to decide which % score to select. For more guidance go to Key ways to achieve this target. Score : None or minimal progress. Score : Work in progress to develop a methodology and data collection system for achieving our 2020 target on responsible sourcing of wood fibres in packaging. Note: we suggest OpCos take a phased approach by starting with suppliers of own brand/exclusive brand packaging. Score : To develop a methodology and data collection system for achieving our 2020 target on responsible sourcing of wood fibres in packaging. This is our 2016 milestone. Score : At least of wood and paper materials used in all our packaging (by weight) to be from proven well-managed forests or recycled sources. Score (target achieved): of wood and paper materials used in all our packaging to be from proven well-managed forests or recycled sources + commitment to maintain this status within the commercial strategic plan, with a Board level sponsor.* *Note: Over 99.5% of wood and paper responsibly sourced can count as meeting this target. Kingfisher KPI reporting requirements Yes CR KPI questionnaire collects data on wood and paper in packaging. See KPI Wood and paper questionnaire: Wood and paper used in packaging. Further guidance for this target Kingfisher Wood and Paper Policy Standard. Kingfisher Packaging Policy Standard. 16

17 Goods Not For Resale (GNFR) wood and paper 2020 target: of the wood and paper used in our Goods Not For Resale (GNFR) to be responsibly sourced milestone: All paper used in catalogues and customer marketing to be responsibly sourced. NUMERICAL TARGET: In December please add commentary to Description of key initiatives box. % score not to be completed in December submission, will be completed by Bioregional in April Note: Responsibly sourced wood and paper is from proven well-managed forests or recycled sources according to Kingfisher s Wood and Paper Policy Standard. Target for: OpCo,, and This will help operating companies to decide which % score to select. For more guidance go to Key ways to achieve this target. Score : None or minimal progress. Score : At least of paper used in catalogues and customer marketing to be from proven wellmanaged forests or recycled sources. Score : All paper used in catalogues and customer marketing to be from proven well-managed forests or recycled sources. This is the 2016 milestone. Score : Met criteria above + at least of other wood and paper used in Goods Not For Resale (GNFR) to be from proven well-managed forests or recycled sources. Score (target achieved): of the wood and paper used in our Goods Not For Resale (GNFR) to be from proven well-managed forests or recycled sources.* *Note: Over 99.5% of wood and paper responsibly sourced can count as meeting this target. Please note that the following items should be included in the scope of this target on wood and paper in Goods Not For Resale (GNFR): Paper our 2016 milestone covers catalogues and customer marketing (e.g. point of sale brochures, leaflets, mail outs). This is where we use the most significant volume of paper. Our 2020 target includes all other paper used such as office paper, till receipts and other paper used in store e.g. for printing kitchen/bathroom plans as well as other wood used in GNFR. Note: OpCos should focus first on collecting data for the most significant volumes of paper used, e.g. customer catalogues and brochures. Key ways to achieve this target Internal targets each operating company to set targets (with timescales) to increase the amount of wood and paper materials used in our GNFR from proven well-managed forests or recycled sources in line with timescales. Monitor KPIs in line with Kingfisher timber data collection methodology. Kingfisher companies should focus first on collecting data for the most significant volumes of paper used e.g. customer catalogues and brochures. Product lead training train product leads on sustainable wood and paper. Supplier requirements set sustainability requirements for wood and paper used in GNFR as a condition of supply for new products, e.g. in Vendor Buying Agreements. As a minimum, these should specify compliance with Kingfisher mandatory minimum requirements (i.e. legal, social and environmental standards). Supplier training provide suppliers with training and guidance on how to meet the Net Positive targets. Monitor compliance check new products comply with the wood and paper sustainability requirements. Action plans agree action plans with suppliers to phase out wood and paper products that are not compliant with Kingfisher policy starting with high volume/high risk products. 17 Kingfisher KPI reporting requirements Yes CR KPI questionnaire collects data on paper used (GNFR section). See KPI Wood and paper questionnaire: Wood and paper used in goods nor for resale (GNFR) e.g. paper. Further guidance for this target Kingfisher Wood and Paper Policy Standard.

18 Construction wood and paper 2020 target: of wood and paper materials procured for construction and fit-out to be responsibly sourced milestone: 9 of wood and paper materials procured for construction and fit-out to be responsibly sourced. NUMERICAL TARGET: In December please add commentary to Description of key initiatives box. % score not to be completed in December submission, will be completed by Bioregional in April Note: Responsibly sourced wood and paper is from proven well-managed forests or recycled sources according to Kingfisher s Wood and Paper Policy Standard. Target for: OpCo This will help operating companies to decide which % score to select. For more guidance go to Key ways to achieve this target. Score : None or minimal progress. Score : Making good progress towards 2015/16 OpCo specific milestone* (agreed with property), e.g. achieved of milestone target. See table below for the details of OpCo specific milestones/targets. Score : Achieved our OpCo specific 2015/16 milestone* (agreed with property) on responsible sourcing of wood and paper in construction and fit-out. Note: this target may be greater or less than the milestone of 9 responsible sourcing, which applies to the aggregation of all Kingfisher properties. Score : Achieved our OpCo specific 2015/16 milestone* + making good progress towards 2020 target. Score (target achieved): Responsible sourcing of of wood and paper (by volume) used in construction and fit-out.* *Note: Over 99.5% of wood and paper responsibly sourced can count as meeting this target. Construction and fit-out refer to new builds and refurbs executed in the Financial Year. Please note that all Kingfisher Net Positive milestones are stated externally as 2016/17 milestones. However, Kingfisher Property has already agreed property-specific milestones with OpCos for 2015/16 and these will remain the same. OpCos should therefore continue to work towards achieving the property milestones by 2015/16 (including this milestone on construction wood and paper), and report progress against these milestones as part of the Foundations submission which is made during the year in 2016/17. All wood and paper associated with contracts commissioned by OpCo s should be compliant with Wood and Paper Policy Standard/target unless items are leased or hired or any of the exclusions apply this extends to the suppliers/sub-contractors involved in works. *OpCo specific milestones/targets to achieve target: B&Q UK 9 Castorama France 9 Castorama Poland 9 Castorama Russia 9 Brico Depot France 9 Brico Depot Iberia 9 Brico Depot Romania 9 Screwfix 9 Screwfix Germany /16 milestone 2020/21 target Please note all OpCos are required to score to achieve this target. total 9 Note: these targets have been agreed with Property. 18

19 Key ways to achieve this target Contractor specification include requirements on responsible wood and paper sourcing in construction contractor specifications and contracts. Monitor compliance and KPIs work with project managers and contractors to set up a reporting system to monitor compliance. Kingfisher has produced a data collection template for timber used in construction and refurbishment projects (see guidance section below). This includes a list of wood and paper materials frequently used in construction and refurbishment projects. Kingfisher KPI reporting requirements Yes CR KPI questionnaire collects data on wood and paper for construction and refurbishment. See KPI Wood and paper questionnaire: Wood and paper used in construction and refurbishment. Further guidance for this target Construction timber data collection template (Excel). Kingfisher Wood and Paper Policy Standard. Kingfisher sustainable property reporting manual. 19

20 Tropical deforestation 2020 target: None of our products to be sourced from materials that are linked to tropical deforestation (including products containing wood and/or paper sourced from forests in tropical countries, palm oil and cow leather) milestone: All new products containing wood and/or paper sourced from forests in tropical countries to comply with Kingfisher s Wood and Paper Policy Standard Target for: OpCo, progress update provided (no score) Note: The score on this target will be reassessed in Phase 2 after related KPI data has been reviewed. Please note that depending on the result of the KPI data, the final score may be revised as part of this review process. This will help operating companies to decide which % score to select. For more guidance go to Key ways to achieve this target. Score : None or minimal progress. Score : Some progress, e.g. have specified to suppliers that products containing wood and/or paper sourced from forests in tropical countries should be in line with our Wood and Paper Policy Standard (which requires all products containing wood and/or paper sourced from forests in tropical countries to be FSC certified or endorsed by schemes working towards FSC certification). Score : All new products containing wood and/or paper sourced from forests in tropical countries to comply with Kingfisher s Wood and Paper Policy Standard (which requires all products containing wood and/or paper sourced from forests in tropical countries to be FSC certified or endorsed by schemes working towards FSC certification). This is our 2016 milestone. Score : Met criteria above + work started to identify and assess risk of other forest-derived materials in products (palm oil and cow leather) that may potentially contribute to deforestation. Score (target achieved): Full phase out, certification or substitution of products that do not comply with the tropical caveat within the Wood and Paper Policy Standard. Note: The scoring guide for this target does not apply to non-tropical wood and paper products since we have a separate target on responsible wood and paper sourcing. Key ways to achieve this target Product lead training brief product leads on tropical deforestation as part of the training on sustainable wood and paper (see previous target). Supplier requirements specify that compliance with our Wood and Paper Policy Standard is a sustainability requirement which must be met as a condition of supply for new forest-derived products, e.g. in Vendor Buying Agreements. Conduct audit to identify products that contain forest-derived materials and determine their origin. Monitor compliance check wood and paper products comply with the Wood and Paper Policy Standard, specifically with the caveats regarding tropical countries. Action plans agree action plans with suppliers to phase out forest-derived materials that are not compliant with Kingfisher policy starting with high volume/high risk products. Chain of custody ensure all FSC products have a chain-of-custody certification code and consider gaining full chain-of-custody certification for your retail operations (to help you win and retain government/trade contracts). Please note that any leather sourced from the Amazon or Southeast Asia has a high risk of contributing to deforestation issues in these regions. Therefore, OpCos should identify the country of origin of leather products and substitute or replace any leather from these regions to avoid any links to deforestation. Kingfisher KPI reporting requirements Yes CR KPI questionnaire collects data on leather. See KPI Wood and paper questionnaire: Deforestation issues. Further guidance for this target Kingfisher Wood and Paper Policy Standard. 20

21 Reforestation 2020 target: Implement a unified group forest or woodland enhancement initiative that makes a substantial quantifiable step towards our aspiration of creating more forest than we use milestone: to have at least one forest or woodland enhancement initiative that makes a quantifiable contribution towards the aspiration of creating more forest than we use. Target for: This will help target holders to decide which % score to select. For more guidance please see the notes below the table. Score : None or minimal progress. Score : Have approved plans in place for implementing and financing a forest or woodland enhancement initiative to achieve our 2016 milestone. Score : Have at least one forest or woodland enhancement initiative that makes a quantifiable contribution* towards the aspiration of creating more forest than we use. This is our 2016 milestone. Score : Have approved plans in place for implementing and financing a forest or woodland enhancement initiative to achieve our 2020 target. Score (target achieved): Have at least one forest or woodland enhancement initiative that makes a substantial* quantifiable step towards the aspiration of creating more forest than we use. *The difference between our 2016 milestone (to make a contribution ) and our 2020 target (a substantial step ) is in the scale and impact of the initiative: To achieve our 2016 milestone (to make a contribution ), should have an example of a forest or woodland enhancement project that is measurable e.g. in hectares or timber volume. It should ideally include a link to a product/supply chain that helps secure supply of sustainable wood and paper. Note: it may be a one off initiative. To achieve our 2020 target (a substantial step ), should have a forest or woodland enhancement project that meets all of the following criteria: Large scale it should have an impact on over 10,000 hectares of forest or woodland or an investment of more than 50,000 (or equivalent in local currency) or have a significant social impact (involving over 10 different local groups/communities/forests). Business benefit it should be linked to a product/supply chain that helps secure supply of sustainable wood and paper. Long term it is a long-term project i.e. runs across a number of years and is not a one off initiative and/or has promising prospects to be scaled up (either internally or by other businesses). 21

22 Sustainable forestry 2020 target: Work with partners to measure the impact of FSC certification on forests, biodiversity and forest communities and assess the impact of our responsible wood and paper sourcing. Target for: This will help target holders to decide which % score to select. Score : None or minimal progress. Score : Define the communication needs of participating businesses regarding the impacts of their procurement policies and convene a wide range of external stakeholders to work as a technical advisory group charged with the task of agreeing a science based methodology capable of measuring such impacts of the FSC system. Score : A desk assessment of the academic and scientific studies undertaken to-date will generate a set of communicable messages that are useful for Communications and Reporting objectives and will have been agreed with the technical advisory group. Score : The initiative will have attracted a growing number of participating businesses and have begun field testing of an agreed draft methodology. Score (target achieved): Production of an agreed methodology for measuring and communicating the impacts of FSC certification will have been consolidated as a blueprint for possible application to other sustainability labelling schemes. 22

23 Strategic sourcing 2020 target: Demonstrate resilient supply chain relationships that can guarantee the future provision of responsibly sourced wood and paper across all of the s major wood and paper categories (by volume or value) milestone: Demonstrate a resilient supply chain relationship that can guarantee the future provision of responsibly sourced wood and paper for at least one of the s major wood and paper categories (by volume or value). Note: Responsibly sourced wood and paper is from proven well-managed forests or recycled sources according to Kingfisher s Wood and Paper Policy Standard. Target for: This will help target holders to decide which % score to select. For more guidance please see the notes below the table. Score : None or minimal progress. Score : Work started to develop a strategic sourcing plan for wood and paper (e.g. which includes identification of priority wood and paper categories) and/or work has started with a forest source or supply chain to increase resilience for a specific product. Score : Demonstrate a resilient supply chain relationship that can guarantee the future provision of responsibly sourced wood and paper for at least one of the s major wood and paper categories (by volume or value). This is the 2016 milestone. Note: This should include OpCo s representing at least of sales. Score : Met above criteria + work on progress to achieve the 2020 target. Score (target achieved): Demonstrate resilient supply chain relationships that can guarantee the future provision of responsibly sourced wood and paper across the s major wood and paper categories (by volume or value). Note: This should include OpCo s representing at least 8 of sales. Key ways to achieve this target Note: Progress will be measured by longevity of contract/relationship, creative use of reforestation initiatives, proximity and transparency of supply to forest level, commercial strategies to agglomerate supply. 23

24 Energy and carbon sustainability priority Net Positive target customer energy Net Positive 2020 target: 38 TWh of energy saved for customers across our international businesses milestone: 11 TWh of energy saved for customers across our international businesses. NUMERICAL TARGET: In December please add commentary to Description of key initiatives box. % score not to be completed in December submission, will be completed by Bioregional in April Note: Our 2020 target is equivalent to the annual energy used in 2.3 million UK homes. We have also calculated that it is equivalent to creating over 2 million energy efficient equivalent homes over the period up until 2020 (i.e. homes that use 7 less energy than a standard home). Target for: OpCo, progress update provided (no score) This will help operating companies to decide which % score to select. For more guidance go to Key ways to achieve this target. Score : None or minimal progress. Score : Some progress, e.g. examples of initiatives to increase sales of energy saving products. Score : Met our OpCo specific 2016 milestone* on energy savings for customers. Score : On track to meet our OpCo specific 2020 target* on energy savings for customers. Score (target achieved): Met our OpCo specific 2020 target* on energy savings for customers. Note: We measure progress against our target by calculating the annual energy saving from products purchased from us since 2011/12. *OpCo specific milestones/targets to achieve target: 2016/17 milestone 2020/21 target B&Q UK Castorama France Castorama Poland Castorama Russia Brico Depot France Brico Depot Iberia Brico Depot Romania Screwfix Screwfix Germany total 11 TWh 38 TWh Note: Our 2016 milestone (11 TWh) and 2020 target (38 TWh) are totals to be achieved across the. We have allocated our milestone and target across all our operating companies, based on turnover. The targets under the Customer Energy Savings model refer to the savings capacity that can be achieved on an annual basis. For more information see the Sustainable Home Products Guidelines: Appendix 7. 24

25 Key ways to achieve this target Monitor KPIs number of energy saving SKUs sold are collected as part of OpCos half yearly sustainable home product data submissions. Kingfisher works with Bioregional to calculate the energy saved for customers and the number of energy efficient homes. Product lead training train product leads to increase the range of energy saving products and services. Note: Kingfisher has developed a sustainable home product training module. Category targets set category targets to increase sales of energy saving products and services and link the targets to performance reviews and bonus payments. Customer information provide information and advice to customers on energy saving products and services (see separate target on sustainable lifestyles marketing). Marketing promote sales of energy saving products and services, e.g. through price promotions, marketing. Kingfisher KPI reporting requirements Yes Operating companies submit data on the number of energy saving SKUs sold (as part of their OpCos half yearly sustainable home product data submissions). Kingfisher works with Bioregional to calculate the energy saved for customers and the number of energy efficient homes. See KPI Energy questionnaire: Energy saving products. Further guidance for this target Sustainable Home Product Guidelines v

26 Net Positive target own energy Net Positive 2020 target: 45% reduction in the energy intensity (kwh/m 2 ) of our property portfolio from a 2010/11 baseline milestone: 15% reduction in the energy intensity (kwh/m 2 ) of our property portfolio from a 2010/11 baseline. NUMERICAL TARGET: In December please add commentary to Description of key initiatives box. % score not to be completed in December submission, will be completed by Bioregional in April Note: Our property portfolio includes stores, offices and other buildings (which we own or lease). Target for: OpCo,,, This will help operating companies to decide which % score to select. For more guidance go to Key ways to achieve this target. Score : None or minimal progress. Score : Some progress, e.g. some improvement in the energy intensity (since the previous year or from a 2010/11 baseline). Score : Achieved our OpCo specific 2015/16 milestone* (agreed with property) to reduce our energy intensity, from a 2010/11 baseline. Note: this target may be greater or less than the milestone of a 15% reduction (from 2010/11), which applies to the aggregation of all Kingfisher properties. Score : Achieved 2015/16 milestone + making good progress towards our OpCo specific 2020 target*, e.g. 3 reduction in the energy intensity from a 2010/11 baseline (or equivalent average annual reductions). Score (target achieved): Achieved our OpCo specific 2020 target* (agreed with property) to reduce our energy intensity, from a 2010/11 baseline. Note: this target may be greater or less than the target of a 45% reduction (from 2010/11), which applies to the aggregation of all Kingfisher properties. Please note that all Kingfisher Net Positive milestones are stated externally as 2016/17 milestones. However, Kingfisher Property has already agreed property-specific milestones with Retail OpCos for 2015/16 and these will remain the same. Retail OpCos should therefore continue to work towards achieving the property milestones by 2015/16 (including this milestone on energy intensity), and report progress against these milestones as part of the Foundations submission, which is made during the year in 2016/17. *OpCo specific milestones/targets to achieve target: 2015/16 milestone (from 2010/11 baseline)* 2020/21 target (from 2010/11 baseline)* B&Q UK 22% reduction 34% reduction Castorama France 2 reduction 39% reduction Castorama Poland 15% reduction 45% reduction Castorama Russia 13% reduction 61% reduction Brico Depot France 29% reduction 45% reduction Brico Depot Iberia 1 reduction 55% reduction Brico Depot Romania Target to be agreed Target to be agreed Screwfix 13% reduction 17% reduction Screwfix Germany Target to be agreed Target to be agreed * 5% reduction from Farenham datacentre baseline 2015/16 1 reduction from Farenham datacentre baseline 2015/16 Target to be agreed Target to be agreed Target to be agreed Target to be agreed total 15% reduction 45% reduction 26 Note: these targets have been agreed with Property. *2010/11 baseline does not apply to ; baseline is Farenham datacentre baseline 2015/16.