Managing Risk sk: Enhancing Bran rand Values s a R Retail l - PowerPoint PPT Presentation

Managing Risk sk: Enhancing Bran rand Values s – a R Retail l Persp spectiv tive Martyn White, Manager of Sustainability, John Lewis May 2016

Co Cont nten ents The Partnership Materiality Governance Timber Policy Risk Management Key Challenges Final Thoughts

The he Par artne nership hip • UK’s largest co -owned business - 91,500 Partners • Annual gross sales of over 11 billion • Partners share in the benefits and profits

Wh What ma makes us us di different? nt? Prin inciple ciple 1: The Partnership’s ultimate purpose is the happiness of all its members, through their worthwhile and satisfying employment in a successful business.

Materialit Ma riality Safe operating Partner health environment & wellbeing Economic & Social Contribution Business Sustainable ethics Diversity agriculture Partner & Satisfaction Inclusion Partner Development Operational emissions Biodiversity Partnership Deforestation & habitat loss Community involvement & Supply chain charitable Manufacturing emissions support pollution Communities Environment Lifecycle Water Constitution waste scarcity Buying Animal Traceability Welfare British Product Safe labelling for products Customers Sourcing informed choices Security of Human supply Healthy Sustainable Rights & lifestyles lifestyles Working Conditions Fair Trade Terms

Ma Materialit riality

Go Governa nanc nce • Formal processes and committees in place for overseeing our corporate responsibilities. • A structured approach to identify, manage, monitor and communicate risks consistently • Keeping the Partnership true to its principles

Su Sustainab ainable le Timb mber & P Pape per: Ou Our Pol olicy • Two drivers; Legal al Requir uireme ement nts s & Repu putational tional Risk sk • Only sources which meet our policy categories classified as ‘Negligible Risk’ can be used. • By the end of 2020, 100% of the timber and paper in our own brand products will be from respon ponsible sible and sustain ainable able sources.

Pol olicy y Im Impl pleme ment ntatio tion

St Stak akeholde holder r Ex Expe pectatio tion • John Lewis brand is about Love & Trust. • NGO’s influence our rationale • Don’t focus on Customer demand – it’s not there ! • BUT - Customer expectation high!

Tra racing ng Ou Our Ti Timb mber ● 800 suppliers. 1,500 factories. 50 countries. ● Traceability an area of continual focus for us and our customers ● ‘Lighthouse’ system enables us to take better ownership of our timber compliance programme

A R A Risk k Bas ased d Ap Appr proa oach • Not a document ‘box - ticking’ exercise. • Focus on higher risk supply chains • Certification plays a key role

A R A Risk k Bas ased d Ap Appr proa oach Assessment essment Methods; ds; 1. Document Analysis 2. Laboratory Timber Testing 3. On-site Supplier Audits

Key Ch Chal allen enge ges Suppl ply y Chain • Product complexity • Accuracy of information • Expectation Vs reality Certif tifica ication tion • Certified Vs non-certified • Cost & availability • Bureaucracy

Final nal Tho houg ughts... ... • Focus on higher risk supply chains • Take ownership of your activity • Certification plays a key role • Referring to compliance is ok – but embed your values

Tha hank nk you ou. An Any Qu Question ons? s?