Cr2010 Report

CONTENTS
Introduction
CEO Introduction 1
Anna Ford Introduction 2 Commitments and next steps 40
Our approach 4 Reducing our carbon footprint 41
Our goal 7 Reducing Waste 46
Our reporting 8 Working with our suppliers 48
Forum for the Future statement 9
Our business 10
Commitments and next steps 51

Our economic impact 52
Our social impact 54

Our products 13
Promoting healthier lifestyles 16
Responsible sales 19
Equality, diversity and inclusion 62
Engagement and recognition 66
Health and wellbeing 68

Working in partnership 24
commitments
Best of British 27
and progress
Animal welfare 30
Fairtrade 32 Next steps 2010 72
Suppliers and the environment 34 Progress against our 2009

commitments 74
Progress against outstanding
2008 commitments 78
Our awards 81
Organisations we engage with 83

Corporate Responsibility Report 2010
CEO introduction
With over 19 million customers visiting our stores each week, 150,000
colleagues and in excess of 2,000 suppliers, Sainsbury’s has a real impact on
the economy, environment and society.
Our values underpin our goal to provide healthy, safe, fresh and tasty food at fair prices. These values are at the heart of our
business; they determine our priorities and guide us in ensuring that we conduct ourselves in an honest, ethical and
sustainable manner.
We operate in a challenging commercial environment and while many of our customers are increasingly price-conscious, they
are not prepared to compromise on the values and principles that they believe in. We know they want us to make it easier for
them to shop ethically and sustainably so we’re making every effort to live up to their expectations and exceed them if we
can. This is why we’re so pleased to have been recognised by the Consumer Focus ‘Green to the Core’ survey, which praised
our engagement with customers on green issues. It also recognised our excellent sustainable farming and fish policies, as well
as the high proportion of sustainable products available in our stores.
As we look forward, there is an increasingly complex set of issues that we will need to address for our business, our
customers, the environment and the communities in which we operate. The right thing to do is rarely clear cut, as good
intentions in one area can create unintended consequences in another. It’s also an agenda that’s constantly evolving. We
must work collaboratively with our colleagues, customers, stakeholders and industry experts to develop forward-thinking
programmes that are aligned with our core values and that help our customers enjoy excellent quality food at affordable
prices.
In such a period of uncertainty and economic recession, we are really proud of what we have achieved over the past year.
Our industry-leading positions in Fairtrade, Freedom Food and Marine Stewardship Council fish are real and tangible
accomplishments. Likewise, our work on energy efficiency and sending zero food waste to landfill demonstrates environmental
leadership and in many cases has also helped us to achieve significant cost savings. We continue to ensure that internal
programmes like ‘You Can’ make it possible for our own people to develop new skills and an even wider range of new recruits
to join us. Finally, our sponsorship of the Paralympics, the UK school games and our support of Comic Relief ensure that we
continue to make a positive difference to all our communities, wherever they are.
The values on which our company was founded in 1869 remain the same today. Through our commitments to Corporate
Responsibility we are ensuring that these values will continue at the heart of our business for many years to come.
Justin King
Chief Executive
Chair of CR Steering Group
© J Sainsbury plc 2010 | Page 1 of 85
Anna Ford introduction
As chair of the CR Committee, I report to the Board twice a year on our plans
and the progress made against each of our values. Sainsbury’s approach to
Corporate Responsibility is not just an add-on; these values are embedded in
the company’s daily planning and actions and are right at the heart of its
policy and decision-making. This work has already been recognised by awards
from a variety of professional bodies.
We know that the last year has been particularly difficult for many families, but despite this, our customers are just as
interested as they ever were in health, the environment, Fairtrade, responsible sourcing and the sustainable use of natural
materials. In fact the bar has, if anything, been raised as issues like climate change and sustainability have moved into the
mainstream.
So what have we achieved this year?
As part of our drive to be Best for food and health, we re-launched both our ‘Be Good to Yourself’ and ‘Freefrom’ ranges,
increasing the number of new and improved lines by 60 and 100 respectively.
As an example of our commitment to Sourcing with integrity, we were named the largest retailer of Fairtrade in the world
by the Fairtrade Foundation, with sales topping £218m in 2009/10. We are also the largest retailer of RSPCA endorsed
‘Freedom Food’ in the UK, both by value and range, reflecting our commitment to being the number one supermarket for
animal welfare.
We also made significant progress in showing Respect for our environment, by increasing the number of our eco-stores
and launching environmental innovations within these stores, such as Europe’s first biomass generator and creating Bee-
Hotels to protect the UK’s decreasing bee population, which in turn protects many species of plants and flora.
Making a positive difference to our community has long been part of the Sainsbury's ethos. Over the past year we have
successfully launched our ‘Local charity partnerships’ and as a result, all our stores, offices and depots now support their own
dedicated local charity. At the same time, we created over 6,500 new Sainsbury's jobs by opening 38 new supermarkets and
51 new convenience stores across the UK, playing our part to help build growth back into the UK economy.
Being a great place to work means giving people the chance to get the skills and experience they need to succeed.

Rewarding our colleagues is just as important and I am delighted that a record of 127,000 colleagues shared a bonus of over
£80 million this year.
Justin and I have hosted a number of roundtable discussions this year, with a wide variety of stakeholders, including farmers,
charities, Scouts, Government departments, NGOs, the National Union of Students, Which?, school leaders, the National
Farmers Union, food journalists and many others. We’ve had free and open discussions, which have given us some valuable
feedback on our business and I would like to thank everyone for their contribution.
Our stakeholders trust us to act responsibly on their behalf: this is an integral part of the Sainsbury’s brand. It’s our values at
the very heart of our business that have made us what we are today and I am confident that they will continue to
differentiate Sainsbury’s in the future.
Anna Ford
Non-Executive Director
Chair of CR Committee
Our approach
Corporate Responsibility & Sainsbury's
For Sainsbury's, corporate responsibility is about providing our customers with

the widest choice of quality food, at fair prices.It is also about paying our
suppliers a fair price and giving them the reassurance of knowing that they
have a buyer for their products on reasonable terms; enriching our
communities through employment and career development opportunities;
growing our business profitably for our shareholders; making the most
effective use of our valuable resources like water and electricity; and
respecting the local environment.
Strategy
As a leading supermarket retailer, we face a wide range of issues and challenges. Many of these are complex, interrelated, and
increasingly global in nature. Some of them we can directly control, others we can influence, but some, unfortunately, are
beyond our reach. Sometimes we have to make difficult decisions to balance conflicting priorities.
We believe that by considering the wider social, environmental, and economic impacts of our business we will deliver long-
term shareholder value. This is because we will be better able to meet all our stakeholders' expectations. Our five values have
guided our company for over 140 years, and provide the practical framework for doing this. They guide us in everything we
do – from key business decisions to day-to-day activities.
Materiality
When we set our goals and priorities we are guided by a ‘materiality’ process. This helps us to focus on where our greatest
impacts are, or that substantively influence stakeholders and where our efforts can make the most difference.
This process of focusing on the most material issues and opportunities helps us to make a more direct link between the
sustainability challenges we face along with our commercial strategy.
1 Analyse
We analysed a wide range of information to understand the key issues for
different stakeholder groups. The information included our engagement
with stakeholders, research and surveys of stakeholder opinion.
2 Prioritise
We then mapped these issues according to the level of stakeholder

concern and potential to impact our business.
3 Act
The outputs of this process have been used to inform our CR strategy, set
new commitments and select the topics covered in this report. We also
use the materiality process to inform our ongoing stakeholder
engagement.
Stakeholder engagement
As a leading national supermarket with a global supply chain, we have significant scale and influence. This means we also have
a role to play in tackling issues and finding solutions. We know we cannot always do this on our own. We therefore work in
partnership with key stakeholders, including Government, NGOs and academics, as well as our customers and colleagues.
We engage with our shoppers on a daily basis, from customer service feedback to more formal customer surveys, two of
which have been carried out in the last 12 months, focusing specifically on corporate responsibility. We talk with our
colleagues as well, whether through daily meetings on the shop floor, or ‘Talkback’, our annual survey. We also engage with
NGOs and Government agencies on a wide range of specific issues.
We are members of a number of groups, including Business in the Community, the Ethical Trading Initiative, the Roundtable
on Sustainable Palm Oil and the World Wildlife Fund Forest and Trade Network. Membership of groups like these helps inform
our thinking and allows us to exchange views with stakeholders on areas of common interest.
Justin King, our CEO, and Anna Ford, the chair of our Corporate Responsibility Committee and Non-Executive Director,
conduct five formal stakeholder meetings every year. One of these is dedicated to each of our five values and we use them to
test whether we are pursuing the right strategy on certain issues and ask for advice if we are not.
Developing and maintaining relationships like this helps us to gain a deeper understanding of complex issues, develop our
business and manage our risks better. There will be times when we will take a different view from other external groups and
we would never change our policies unless we believed that would help us serve our customers better. But we will always
listen.
Commitments & targets

We are setting bold targets to drive real change on the most important issues facing our business. Our current commitments
cover specific issues relating to each of our five values. They have been developed by reviewing our previous targets and
activities, as well as the outputs of our materiality process and ongoing customer research.
These commitments are not the only things we are focused on. We also continue to implement improvements across a much
broader range of issues that, for us, constitute ‘business as usual’. These wider-ranging improvements are detailed
throughout this report under the ‘Next Steps’ headings.
Governance
Our values are part of the way we do business at Sainsbury’s. This is reflected in our corporate responsibility governance
structure, as shown below. As you can see, members of our Operating Board have responsibility for each of our five values
and they also sit on our Corporate Responsibility Steering Group:
Our goal
At Sainsbury's we will deliver an ever improving quality shopping experience

for our customers with great products at fair prices. We will exceed customer
expectations for healthy, safe, fresh and tasty food making their lives easier
every day.

Our reporting
About our report

This website covers the corporate responsibility activities of J Sainsbury plc in the fiscal year to 31 March 2010. The Report
contains details of our five values, which are the guiding principles for our company.
For each value, the website covers our approach to the key issues and progress in 2009/10, and our commitments and next
steps for the future. The key issues were identified through a structured process, which incorporated stakeholder feedback
and research.
At the beginning of 2010, we changed the way we wanted to communicate with our stakeholders. Corporate Responsibility
to us underpins the way we do our business and how we communicate our values. It isn't static, or a one-way push of
information. And the publication of a 'CR Report' didn't fully represent the full extent of what we do and the people we work
with on a daily basis.
This website is the result of our new strategy for communicating about our Corporate Responsibility, which will have three
ongoing activities:
Quarterly reporting
Since January 2010, we have been reporting progress on our corporate responsibility (CR) initiatives with our quarterly
financial updates. As our stakeholders become more knowledgeable about sustainability issues and how they affect the retail
industry, they demand greater information about the claims we make publicly. Quarterly reporting allows us to be more
transparent, timely and accountable for what we say and what we do. And most importantly, we believe that quarterly
reporting will shorten the feedback loops with our stakeholders so that we can act and respond with increased agility.
Online content
The information contained in the responsibility section of our website is Sainsbury's CR Report. This year we have integrated
the report within the responsibility section of our website so that stakeholders can find all the information in one place. This
allows people to pick and choose content of interest to them or select all of the web content as a customisable PDF file. This
means that what you save and print is most relevant to you, and the most recent information available.
Connected reporting
Since 2008, Sainsbury's has been a participant of the Prince of Wales' Accounting for Sustainability project, which is a
business-led initiative to integrate non-financial metrics (such as social and environmental goals) so that they are connected to
key financial targets and the long-term success of a business. The result is a more concise, rounded and balanced picture of
our overall performance, which reflects our business strategy and the way it is managed on a day-to-day basis.
This website, and the quarterly reporting, represents the first step in Sainsbury's journey to connected reporting. Over the
coming months, we will further develop the framework so that investors, and all our stakeholders, have measurable assurance
about Sainsbury's commitment to responsible business, which has guided our values for over 140 years.
You can 'Create your own' report by using the report tools to save any page(s) and then print, email or download them as a
PDF. There is also a summary of our CR activities in the J Sainsbury Annual Report and Accounts.
Forum for the Future statement
This report vividly brings Sainsbury's Corporate Responsibility programme to

life.
This report vividly brings Sainsbury's Corporate Responsibility programme to life. The sheer wealth and diversity of activity
and initiatives that sit under each of Sainsbury's five values are a clear demonstration of Sainsbury's deep commitment to
Corporate Responsibility.
Despite continued economic uncertainty and the ever-price conscious consumer, it's heartening to see that 2009 saw key
strands of Sainsbury's CR programme go from strength to strength. The highly successful Dairy Development Group model
– a genuine partnership with UK diary farmers – has been extended to other key categories, including beef, pork and poultry.
Sainsbury's also continues to be an important engine for local economic growth, with its commitment to the long-term
unemployed of huge importance in these economically challenging times.
2009 also saw Sainsbury's step up a gear in terms of how it measures and manages its environmental impact. There are now
ambitious targets in place for packaging and waste, and the company is on-track to meet its carbon reduction target, actually
delivering an absolute reduction in direct emissions in the last year. This is an important achievement, although we would like
to see ever more ambitious targets for Sainsbury's direct and indirect carbon emissions. It would also be in keeping with
Sainsbury's stated ambition to lead the way to a low carbon economy to express such targets, for its stores, its supply chain
and in its customers, in absolute terms.
When it comes to its customers, Sainsbury's takes its commitment to be the 'best for food and health' extremely seriously.
From helping its customers choose healthier ingredients, to enabling its customers to love their leftovers, Sainsbury's brings
the health and well-being, and the broader sustainability agenda, to life for the millions of people that pass through its stores.
Sainsbury's has the potential to encourage all of its customers to lead sustainable lives. This isn't just about health and
nutrition though, this is also about helping customers reduce their environmental footprint. A key challenge for Sainsbury's is
to deploy its' multiple, and hugely effective, communication channels with its customers to make sustainable living affordable
and desirable.
But what does sustainable living really look like for the mainstream consumer, both now and in the future? We're delighted to
see that Sainsbury's is serious about finding the answer to this question, and is undertaking research with key suppliers in
2010, to provide the understanding and insights to accelerate the pace at which Sainsburys takes sustainability to its
customers.
Sally Uren
Deputy Chief Executive
Forum for the Future
Our business
Promoting healthy
eating and active
lifestyles.
Our goal is to offer our customers great quality food at fair prices and, as a leading food retailer,
we are committed to being ‘Best for food and health’.
Our approach is to inspire and help customers to eat a healthy, balanced diet by promoting healthy eating and active
lifestyles. It’s also about making healthy, high-quality and tasty food easily available in our stores. But it’s about having clear
and straightforward labelling that helps people make more informed choices. We were the first UK retailer to apply front-
of-pack Multiple Traffic Light labelling in 2005 to all relevant products, making it easier for customers to make healthy
choices at a glance. We recognise that customers consistently seek value for money which is why we focus on making
healthy food affordable and inspiring customers to cook and ‘try something new’. Through our initiatives such as ‘Feed Your
Family for a Fiver’ and the ‘Try Team’ we continue to help customers to cook on a budget and we encourage them to waste
less food through initiatives such as ‘Love Your Leftovers’ and ‘Make the Most of your Roast’ tip cards.
Nutrition is a complex and ever-evolving science, which makes it especially important to test the scientific rigour of our
thinking with experts in the field. This is why we set up a Nutrition Science Advisory Group three years ago which is made up
of external health and nutrition experts who provide us with advice and guidance on nutrition and health.
“We welcome the approach of using an independent panel of experts for advice and guidance on
nutrition and health. This supports a commitment to taking responsibilities on health seriously by
approaching such issues with scientific rigour.”
Members of Sainsbury’s Nutrition Science Advisory Group
Commitments and progress

Title Description Progress
Healthier baskets for our We will make the most popular items in our Ongoing – we continue to
customers customers' baskets healthier, focusing on products make the most popular items
that contribute the most saturated fat, salt or sugar in our customers' baskets
to the UK diet, to deliver a real impact on the healthier
nation's health

Commitments and next steps
Healthier baskets for our customers We will introduce calorie labelling into our cafes, across all
foods so that our customers know how many calories they
We will make the most popular items in our customers' are consuming
baskets healthier, focusing on products that contribute the
most saturated fat, salt or sugar to the UK diet, to deliver a We will roll out to all stores where there is a pharmacy
real impact on the nation's health. nutrition training to our pharmacists so they can help our
customers with dietary advice and guidance
We will launch an industry leading, online dieting service,

which will help customers manage their weight responsibly,
eat healthy food and incorporate exercise into their daily
lifestyle
We will host a live UK stakeholder debate on health and

cooking to raise awareness of the important role cooking
plays in tackling the UK's public health challenges
We will define the percentage of promotions that are

healthy and given prominence in store
Our products
We aim to make our products as healthy as possible without compromising on

taste or quality. In order to do this, we employ a range of different methods,
from reformulating the ingredients in products to providing better nutritional
information on packs.
Making nutritional information clearer

We are committed to providing clear nutritional information on our products, which helps our
customers make informed choices about the food and drink they buy.
In 2005 we were the first UK retailer to launch Front of Pack Multiple Traffic Light
labelling (MTL) and we now have them on over 5,000 of our own brand products - more
than any other retailer. These labels give customers at-a-glance nutritional information in a
simple, accessible format, allowing them to make informed purchasing decisions.
Our customers like Front of Pack labelling and our most recent research in May 2010 shows
that: *92% of them are aware of our Multiple Traffic Light labels; over two-thirds (or 81%) are
influenced by them when deciding what to buy and one third actively seek them out.
In 2008 we extended the use of Multiple Traffic Lights to our online groceries website and our Kids range. The Kids labelling is
specially designed for the needs of the children actually eating it. We know the Kids range is eaten by children as young as
four, so we have adapted both the labelling and some of the formulations to reflect this. This means our Kids range meets
some of the strictest nutritional standards in the industry.
Although the Multiple Traffic Light system is very popular, there is still a lot of debate about the best way to convey nutritional
information. We try to get the best of both worlds by including these labels on the front of our packs, as well as Guideline
Daily Amount (or GDA) information on the back.
* (Ipsos MORI Customer Insights Report, May 2010)
Making our customers’ baskets healthier

Making food healthier is about reducing some nutrients and increasing others. Some of these are too prevalent in a typical
diet, while others are too low, such as fibre and omega 3.
We have over 100 product developers and technologists working to progressively reduce levels of fat, saturated fat, sugar,
salt and additives. They are also looking at removing some of the more common allergens so that our food can be enjoyed
by customers with special diets. At the same time, we are improving on how best to communicate portion guidance to our
customers so that they can better manage their overall food consumption.
Reducing saturated fat

Fat reduction has always been a key point in our reformulation strategy. Back in 2007, we removed hydrogenated vegetable
oil (the manufactured form of transfat) from all our products.
Saturated fat intake remain high in the UK population so we have made this a key area of focus for us.
Dairy products are one of the major contributors of saturated fat to the UK diet, which makes them a high priority for us.
You can see from the case study how much progress we’ve made in this area. These are all real examples of our commitment
to the UK Food Standards Agency’s Energy and Saturated Fat Intake Programme and to making our customers’ baskets
healthier.
Case study
Dairy
We launched 1% fat milk in April 2008,
and since then we have sold 64.3 million
litres. Following this success of our own
brand 1% fat milk, we have now
introduced a branded organic version and
a UHT version and together with our own
1% fat milk we estimate that we've helped
our customers reduce their saturated fat
consumption by over 140 tonnes*. We
have worked over the past year to
reformulate existing dairy products and introduce new, healthier ones:
1. In September 2009 we introduced fat percentage labelling on the

front of our own brand yogurt helping customers make informed
choices.
2. Starting January 2010, we re-launched a range of 20 cheese
products, all of which have between 30% and 50% less fat than
standard versions.
3. Since March 2010 our flavoured milk has been made from semi-
skimmed milk, not whole milk.
4. In June 2010, to help our customers manage portion sizes, we
introduced portion markings on cream cartons.
*Based on 12 months, sales of 1% fat milk, assuming all these customers

transferred from semi-skimmed milk
Reducing salt
We were one of the first retailers to set tough targets for salt reduction for our own brand ranges and have been reducing
salt in these products for over 12 years. Salt reduction remains an important focus for us when developing and redeveloping
products. The taste, safety and quality of our products is incredibly important to us and we strongly believe that our
customers should not have to compromise; this is why we have a step-by-step approach to salt reduction. We are striving to
achieve and make progress against the Food Standards Agency's original 2010 salt targets.
Reducing sugar
We are reducing the amount of sugar in our products wherever we can find a way to do so without compromising on taste
and quality. For example, we have reduced the sugar content of all our own brand squash lines by 10%.
Removing additives
For the past four years we have been working hard to remove artificial colours and flavours, flavour enhancers, intense
sweeteners (excluding sucralose) and the benzoate group of preservatives from all our own brand food and drinks. We do
not use the benzoate group of preservatives in any of our finished products, nor do we use flavour enhancers such as MSG
and the only intense sweetener we use is sucralose.
We have led the way in removing additives from our products and are particularly proud of our achievements in
confectionary, soft drinks, breakfast cereals, stocks, gravies and yogurts.
We were the first retailer to remove sulphite ammonia caramel (E150d) from cola drinks, and our lime cordial was the first to
use only natural colour. We no longer use any of the colours identified in the Southampton study, and the only own brand
foods that still contain artificial colours are our canned peas and mint sauce, and a small number of products containing
cherries.
Allergies and intolerances

We aim to be the first choice for customers with special diets, and were the first major
retailer to develop a ‘freefrom’ category as far back as 2002. This has now been re-
launched with the backing of major online and in-store support. We have improved taste,
quality and packaging, and added over 100 new and improved lines. With 228 products in all,
this is by far our biggest ever freefrom range.
In addition, customers will now be able to print off monthly updated lists and our new coeliac
leaflets from our website, which will make it easier for them to see which of our own brand products are suitable for their
allergy or intolerance.
*at February 2010 (Nielsen Market Analysis Report, February 2010; 52 weeks)
“We are very encouraged by the efforts of Sainsbury’s in improving the provision of gluten-free
products for people with coeliac disease and in increasing awareness of the condition. More choice and
better availability makes life easier for people who have to follow a strict gluten-free diet.”
Sarah Sleet, CEO Coeliac UK
Case study
Be Good to Yourself
We re-launched our 'Be Good to Yourself'
range in January 2010 and have now
introduced 60 new and improved lines.
The main focus was to make sure that our
products tasted even better than they did
before, even products like cheese,
houmous and coleslaw, which are
traditionally high in fat. We now have 250
lines in the range, from classic favourites
such as chicken arrabbiata and sticky
toffee pudding, to newer dishes like Singapore noodles all of them either
less than 3% fat or with 30% less fat than a standard version. Within the
range, 67% of products are low in saturated fat. It’s proving extremely
popular already, with our market share up to 27.3%
Promoting healthier lifestyles
Our ambition is to be ‘best for food and health’. As it suggests, this is not just
about supplying good, healthy, affordable food but also inspiring people to live
a healthier life style.
We want people to try new food, and cook more of their own, balancing the food they eat with the exercise they take. This is
why we have invested so much in our Active Kids scheme and why we try to inspire our customers to cook with confidence.
There’s more on this in the ‘Making a Positive Difference to our Community’ section.
Affordability
The recent economic situation has made people understandably more price-conscious. But that does not mean they want, or
need, to compromise on the quality of their food.
Sainsbury’s opened with a belief in ‘quality perfect, prices lower’, and this ethos is just as strong now as it was when we began
in 1869. Eating healthily does not have to be expensive, and we have been encouraging customers to try our basics range if
they want great quality at affordable prices.
We extended the basics range last year, adding over 134 new lines. It offers such good value by, for example, using different
cuts of meat, unusual shapes and sizes, or simpler packaging. Our brand standards and ethical values are the same for our
basics range as they are for all our products. For example, all our fresh and smoked basics farmed salmon is 100% Scottish
and meets the Freedom Food standard developed by the RSPCA. And all the products are free from hydrogenated fats and
artificial flavour enhancers. In addition, there are 50 different ways for our customers to meet their ‘Five-a-day’ using basics
alone. This means our customers can still have great quality food at affordable prices.
Outside our basics range, we also use in-store promotions to encourage our customers to eat healthily.
Case study
Five-a-day
We know it can be difficult to fit the
recommended amount of fresh fruit and
vegetables into a busy lifestyle, and the
current economic downturn is not making
that any easier. We try to help by:
l Running frequent fruit and vegetable promotions on everyday items,

as well as seasonal produce
l Promoting 'mix and match' price offers

l Locating our fruit and vegetables at the front of our stores, making
them easy for customers to find
l Making sure that over 25% of the 69 million Tip card recipes we printed
over the past 12 months had at least one portion of Five-a-day fruit or
vegetables
l Using a special Five-a-day logo to help our customers identify products

containing fruit and vegetables
Our overriding commitment is to help make it easier and more affordable

for all our customers to get their Five-a-day. A recent survey showed that
the average amount of fruit and vegetables eaten dropped to only 2.6 a
day between 2008 and 2009*, the comparable figure for Sainsbury's
customers has risen over the past four years to 2.84 a day. An example
of where our values make us different.
*5-a-day purchasing survey by Kantar Worldpanel, April, 2010.
Cooking
There have been some quite marked changes in consumer behaviour during the economic downturn, and one of these is a
willingness to cook more from scratch at home. Our Tip recipe cards have proved so popular that we have printed 69 million
of them over the past 12 months. Over 25% of these recipes contain at least one portion of Five-a-day fruit or vegetables,
and 50% feature healthier recipes, with only green or amber ‘traffic light’ ingredients. And at least two Tip cards in every set of
12 are aimed specifically at kids. We also have ‘Make the Most of your Roast’ and ‘Love your Leftovers’ Tip cards that
encourage customers to use up their leftover food and save waste and money.
'We continue to inspire our customers through the award-winning Sainsbury's Magazine, with over 550 recipes created every
year, as well as our quarterly customer loyalty magazine 'Fresh Ideas' which features 20 recipe ideas every month, along with
information about new products and money off coupons.
This year we launched the ‘Try Team’, a dedicated team of cooking ambassadors. They travel across the country visiting our
stores and their local communities, inspiring our customers to cook. They are also online on our ‘Trynation’ website, which
shows them cooking from our Tip card recipes, and bringing them to life.
Another recent idea is the ‘Fool Proof Cooking’ range, which is aimed particularly at people who want to cook more, but don’t
have a lot of time. Likewise the new ‘Ingredients for Cooks’ range provides easy-to-use store cupboard products to make
classic dishes like Mediterranean risotto and Moroccan tagine, even when time is short.
We continue to inspire our customers through the award-winning Sainsbury’s Magazine, with over 550 recipes created every
year, as well as our quarterly customer loyalty magazine ‘Fresh Ideas’ which features 20 recipe ideas every month, as well as
Jamie Oliver recipes, information about new products and money off coupons.
Over the past three years our ‘Active Kids Get Cooking’ programme has reached 11,200 schools, providing teachers with
thousands of pounds worth of free cooking equipment, lesson plans, cooking certificates and awards. There’s more
information on Active Kids Get Cooking in ‘Making a Positive Difference to our Community’ section.
Case study
Little Ones launch

Our Little Ones baby and toddler club was
launched in October 2009 and aims to
provide parents of children up to four
years old with targeted, nutritional advice
and recipes through direct mail and a fully
interactive website. All of the 180+ recipes
are approved by the British Nutrition
Foundation and our online experts like Dr
Dawn Harper and nutritionist Sara Stanner
(BNF) are available online to give the
300,000 registered users comprehensive
health and nutrition advice for children.
“Pregnancy, infancy and early childhood are vital times for getting a
healthy varied diet. Mums and mums-to-be therefore need accurate,
reliable and practical information regarding the best balance of foods and
drinks to choose for themselves and for their children in order to support
their health, development and general well-being.”
British Nutrition Foundation
Responsible sales
Being ‘best for food and health’ means selling our food and drink in a
responsible way. It’s about clear, accurate labelling, and doing everything we
can to prevent children under 18 buying alcohol.
It’s also about ensuring that we place certain products in specific locations within each store and that we run ongoing
promotions on healthier products. For example, we do not put confectionery at our main store checkouts, to reduce impulse
purchases.
Alcohol
We want to help our customers make informed choices about their alcohol consumption
through clear and transparent labelling.
We were the first retailer to place alcohol labelling on our own brand beers, wines and spirits, in
advance of government guidance. The labels, which are approved by the Department of
Health, are now on all our own brand alcohol products and include information on:
l Recommended maximum daily intake

l Number of units per glass
l Number of units per bottle

l Drinking while pregnant
l The labels also direct people to the Drinkaware website for more information.
We now provide information on alcohol units at the point of sale. In October 2009 we launched our permanent alcohol
education point of sale notices in all stores. The notices are designed to give practical information on units and measures
helping our customers easily understand how many units are in the drinks they enjoy.
We also recognise it’s important to offer our customers choice. We sell a number of low and reduced alcohol products to give
our customers a range to choose from. We have had a 'Think 21' policy in place for some time, which means that our staff
will check the age of any customer buying alcohol if they look under 21. Building on the positive feedback we received about
this from customers and colleagues alike, we introduced a more rigorous ‘Think 25’ policy nationwide in September 2009. This
was accompanied by new in-store signage for customers.
We are committed to the Community Alcohol Partnership (CAP) model, which is a targeted approach to tackling under age
drinking by bringing together retailers, police, local authorities, schools, clubs and the press. We chair the Retail of Alcohol
Standards Group (RASG), which pioneered this model.
Building on the success of the St Neots CAP, an agreement was reached with Kent County Council to roll out a county-wide
approach to CAP. We lead the CAPs in Maidstone and Thanet. Independent research conducted by the University of Kent in
2009 found that in the three pilot areas included in the scheme, recorded offences of criminal damage fell by 28% overall. In
one area of the pilot – Thanet – the proportion of residents who said they felt safe at night when walking alone increased by
10%.
Promotions and product placement

Good promotions provide shoppers with better information, and encourage them to try new things.
We are one of the UK’s biggest retailers of fresh fruits and vegetables, which are some of our most important products. We
locate them at the front of the store and run frequent promotions on everyday items as well as seasonal produce. The
biggest offers are on aisle ends at the front, making them immediately visible to customers as they enter the store. We are
also great believers in the value of ‘mix and match’ price offers – offering, for example, a free bag of apples with every bag of
pears.
Case study
Sainsbury’s Cafés
We are always looking to improve the
healthiness of our café menu and provide
more nutritional information. For instance,
we have taken part in the Food Standards
Agency’s calorie labelling trial in some of
our stores to give customers full nutrition
and recipe breakdowns for everything our
cafés sell. We have also signed up to the
Food Standards Agency’s Healthy Catering
Commitments, making a number of
commitments to improve the nutritional make up of our products. For
example, we have now converted the cooking oil we use in the café to
sunflower oil, which reduces the saturated fat in every product cooked in
oil in-store. As a result we have reduced the saturated fat of these meals
by an estimated 5 tonnes.
Making Our Customers’ Baskets Healthier
We made a commitment last year to make

the most popular items in our customers’
baskets healthier, with a particular focus on
our most popular 1,300 lines, and tackling
those that contribute the most saturated fat,
salt or sugar to the UK diet.
Some of our key results include:
l Extensively reformulating some of our most popular dairy products, as

outlined in the Dairy case study, and launching a number of new ranges
l Reformulating all of our own brand products to remove the benzoate
group of preservatives and flavour enhancers, as well as artificial colours*
l Developing 60 new and improved lines for our 'Be Good to Yourself'
range, which was re-launched in January 2010 (please see full details in
the case study)
l Launching a range of products which are a good source of fibre, including
‘whole and white’ pasta
l Reducing the sugar content of some of our most popular drinks, for
instance by 10% in our squash lines
l Making some of our most popular bakery products healthier, for instance
reducing the fat, saturated fat, sugar and salt content of our most
popular loaf cakes by an average of 13g sugar, 7g fat, 21g saturated fat
and 40g salt per product
* with some exceptions, please see our 'Additives' section.
Working with our
suppliers to ensure
the sustainability
of our products.
‘Sourcing with integrity’ means forming mutually productive partnerships with our suppliers that
help them raise environmental and social standards, and move towards genuine sustainability.
It’s about fairly-priced products that are healthier for our customers and minimise the impact on the environment. And it’s
about producing the food we sell in a way that is better for the animals, farmers and growers involved.
Sourcing with integrity is central to our ability to deliver great products at fair prices. In practice it means working with our
suppliers to ensure the sustainability of our products in the round, taking into consideration their economic, environmental
and social impacts.
In the past few years sourcing has become one of the most high-profile issues for our industry. Our customers are much
more aware of where their food and household products come from, and they expect us to exert a positive influence on the
firms and farmers in our supply chain. And that is exactly what we are doing.
We offer over 30,000 total products in our stores – which makes sourcing a complex and challenging task. We have a team
of Brand Sustainability and Agriculture & Health experts dedicated to improving the sustainability of the products we sell. We
have also established a series of industry leading Development Group schemes designed to help our farmers and suppliers
produce more sustainably. (Read more about our Development Groups)
We have been supporting British farming for over 140 years, and we are committed to offering British products at their best,
when in season and when the quality meets customers’ expectations. We have also been working more extensively with
other farmers across the world, helping them improve their skills and position their businesses for the long term. As the
world’s largest retailer of Fairtrade products, we know that we make a positive impact by not only providing trade but
also through the payment of social premiums to local communities that improve schools, healthcare and local infrastructure
among other projects.

Being best for British We will source great-tasting British products when in Achieved and Ongoing –
season, wherever these meet our customers' we remain committed to
expectations for quality and authenticity supporting UK farmers and
continue to source British
products, both when in
season and in certain
categories all year round
Being number one We will offer the widest range of higher welfare Achieved – we both offer
supermarket for animal products of any UK retailer the widest range of Freedom
welfare Food higher welfare products
and sell more than any other
UK retailer
Sourcing responsibly and We will be the largest UK retailer of Fairtrade Achieved – we are the
ethically products (by sales value) world's largest retailer of
Fairtrade by value

Being best for British We will continue the roll-out of the Development Groups to
We will source great tasting British products when in pork, beef, chicken and lamb suppliers
season, wherever these meet our customers' expectations
for quality and authenticity
Being number one supermarket for animal welfare We want our five biggest-selling fish species to be MSC-
We will offer the widest range of higher welfare products of certified or green-rated against our own sustainability
any UK retailer standard by the end of 2010
Sourcing responsibly and ethically Our long-term target is to have all our wood sources
We will be the largest UK retailer of Fairtrade products (by certified by the Forest Stewardship Council (FSC) and we
sales value) aim that 90% of our wood products will be FSC certified by
2012
We aim to be the largest user of FSC-certified cork in the

world by early 2011
We will only use certified sustainable palm oil by the end of

2014
We will work with informed stakeholders to research and

identify best practice in water usage across our supply
chain
We are looking to expand the number of Fairtrade

products across our ranges, in particular in chocolate
We are aiming to increase the number of supplier visits we

carry out every year, and open more non-food supply
offices in the Far East, which will help us to get closer to our
suppliers there
Ethical trading and working in partnership
Codes of Practice
We have two formal documents that cover the commitments we make to our
suppliers, and the standards we expect of them in return.
We pride ourselves on having good supplier relationships. We were the first supermarket to implement a voluntary code of
conduct that went beyond the obligations contained in the previous Supermarkets Code of Practice. We have consistently
supported the strengthened and widened Grocery Supply Code of Practice (GSCOP) which came into force in February 2010
following the Competition Commission report into the grocery market. We made significant investments to implement GSCOP
throughout our business. Our Supplier Handbook, which is issued to all suppliers, is our legally binding code of commercial
practice. It incorporates GSCOP and also our 'Code of Conduct for Socially Responsible Sourcing', which includes the Ethical
Trading Initiative (ETI) Base Code. Where there have been disagreements with suppliers about a particular trading practice or
decision we have a proven record of effective internal escalation and resolution. We support effective GSCOP enforcement,
but we remain of the view that an additional enforcement body is unnecessary, as the strengthened provisions in the GSCOP
and the existing enforcement regime are already self sufficient and fully address the areas of concern identified by the
Competition Commission.
Ethical trading
Our customers want to be confident that the people who make our products are not being exploited, or exposed to unsafe
working conditions. Our Code of Conduct for Socially Responsible Sourcing covers the employment practices we expect from
our suppliers, both in the UK and abroad. We work with a number of organisations to ensure that we are able to support our
suppliers to meet these requirements. For example, we continue to work closely with the Gangmasters Licensing Authority on
the food side of our UK supply chain. They regulate the use of temporary labour, and we are signatories to their
Supermarkets and Suppliers’ Protocol, which was published in March 2010.
Our overseas supply chains present different challenges, including the use of homeworkers, ensuring the payment of living
wages or ensuring workers donI’t work excessive hours. We are founder members of the Ethical Trading Initiative (ETI) and
we are working with them and other partners to address issues like these, and develop collaborative best practice models. The
ETI’s Homeworkers Working Group is a good example and is looking at how fair treatment, appropriate pay and decent
working conditions can be ensured in a homeworking model. We are also currently working on a pilot project in Bangladesh,
which looks at how our suppliers can improve their management, communication and productivity systems and become
more efficient. We believe that this should result in an increase in wages for the workers.
We conduct risk assessments on our suppliers to determine how much they need to do to comply with our standards. Lower
risk suppliers will self assess against our Code of Conduct and higher-risk suppliers are required to have an independent third
party audit.
Supplier training
We recognise our responsibility to support the skills and development of our suppliers to ensure they can continue to operate
efficiently and meet our requirements for quality and sustainability. We achieve this through continuous dialogue and
knowledge sharing as well as newsletters, supplier conferences and working groups.
In addition, a formal training programme is provided to Sainsbury’s suppliers through our Technical Management Academy
(TMA), established in 2006 in partnership with Campden BRI, a leader in food and drink research and training. Our
technologists work with suppliers to identify where teams or individuals would benefit from training and the Academy provides
a modular approach to tailor this to their needs. In the past year, over 150 additional suppliers have been trained in areas
such as packaging, quality management and our key technical requirements. In addition, in 2009/10 we launched the TMA in
China, where we trained over 100 suppliers based in Asia.
We have taken all our non-food buyers and technical teams through detailed training in purchasing practices to ensure all our
dealings with our suppliers are fair and ethical.
Supplier capability is a key responsibility for our product technologists and they visit suppliers throughout the year to ensure
exact quality and ethical requirements are met. Over 1,700 audits and site visits were conducted at Sainsbury’s suppliers last
year. In early 2010 our first ethical non-food workshop brought together 60 clothing suppliers in London and we aspire to
have all our non-food suppliers included in this by 2011.
Working in partnership
One of the most important ways we are making progress in sourcing is through active collaboration with our suppliers and
farmers, both in the UK and overseas. Our Development Groups and new Crop Sustainability Groups are practical working
partnerships where we pool our knowledge about supply chains, and work together to develop the skills and resources our
suppliers need. It is initiatives like these that set us apart from other retailers, therefore our values make us different.
Development groups
Dairy
Our Dairy Development Group was the first to be set up, and dates from 2006 and we
invested £15 million to establish the group. In January 2010 we committed a further £40
million for use over the next three years. The aim of the Group is to help our 325 dairy farmers
reduce their on-farm costs by improving efficiency, animal health and welfare and reducing
their impact on the environment. In exchange for this commitment, we offer them a premium
for their milk.
The group focuses on four key areas: herd health and husbandry, environment and energy,
collaborative working and business improvement. For example, we have developed a carbon
footprinting tool specially designed for dairy farming, which has the potential to reduce farmers’
energy costs and also farmers’ carbon footprint by 10% a year. The tool was developed in partnership with the Carbon Trust
and achieved the PAS2050 standard. For herd health and husbandry we use an 'outcome based’ system to ensure we focus
on the cow’s health. The Dairy Development Group was extended in September 2009 to include 98 dairy farmers who
produce milk made into cheese by Milk Link, the UK’s leading farmer-owned dairy co-operative and the largest producer of
British cheese.
“The SDDG has undoubtedly made my farm more profitable, and if more farmers are joining the group,
it can only be a good thing for the dairy industry.”
William Goodwin, SDDG Dairy Crest farmer
Pork, beef, lamb and eggs

During 2009/10 we extended Sainsbury’s successful Development Group model to beef, pork,
poultry, lamb, cheese and egg suppliers. We launched the new Pork Development Group,
which is still in development but already includes 60 Taste the Difference farmers.
The Woodland Egg Development Group was also set up in 2009, and includes 180 farmers
from all of the UK regions.
The Woodland Trust is working with us to provide Woodland Training days, which will help
farmers maintain their trees, and start reducing their carbon footprint.
Crop Sustainability Groups

We launched our Crop Sustainability Groups last year. These are an extension of our well-established Crop Action Groups and
use the successful Development Group model to cover Field Crops, Protected Crops and Orchard Crops looking in particular
at climate change, carbon reduction through better energy use, water and soil health, pesticide reduction, biodiversity waste
management and the welfare of people in our supply chains.
Pesticides
Our Pesticide Policy actively encourages our suppliers to minimise their use of pesticides, and employ Integrated Crop
Management techniques. We know how vital soil health is, and we have and will continue to work with our suppliers through
the Crop Sustainability Groups to develop best practice in this complex area.
Supplier feedback
Communication and transparency are crucial to our relationships with suppliers and our trading and technical
teams are in continuous dialogue with them.
Good communication is a vital aspect of all our supplier relationships, which means honesty and transparency on our part,
and a willingness to listen to feed back and then act. In 2009 we brought together around 1,000 supplier representatives at
both our Trading and Technical Supplier Conferences. This gave suppliers the chance to share best practice, hear updates on
our business strategy and share their own perspectives with our senior management team.
Our technical teams are in constant contact with our suppliers and we have also run quarterly supplier ‘Talkback’ surveys
since 2007. In addition there is a confidential and independent whistleblower hotline, Sainsbury’s ‘Right Line’, for colleagues,
contractors and suppliers to report issues of concern. We will be launching something similar in some of our key factories in
China in 2010.
Supplier Talkback survey
How likely would you be to recommend Sainsbury’s as a retailer to work with

(on a scale of 1-10):
l Own brand suppliers: 8.0 (up from 7.4 in 2008)
l Branded suppliers: 7.7 (up from 7.4 in 2008)
November 2009 Ipsos Mori
We also communicate key technical initiatives, product development successes and business developments to our suppliers in
our 'Working Together' magazine, issued to own brand suppliers every four months.
Best of British
We have been supporting British farmers for over 140 years. We are proud to
offer high-quality British products, and we work hard to buy British whenever
we can.
British products
Our commitment to providing great-tasting British products means offering customers these products when they are in
season, and at their best. In many cases we are buying a particularly large share of the total British crop, such as one third of
all British apples and pears, and a significant number of our products are 100% British all year round such as our fresh
chicken, eggs and fresh and UHT milk. We operate a strict country of origin labelling policy, and will only label meat as
British if the animal was born, reared and slaughtered in the UK. If products contain meat that is not British, we label
the product clearly to reflect this and include the country of origin of the meat. We recognise that customers today seek
more information about the provenance of the food they buy.
We are on course to be the first retailer to use 100% British flour in our own label sliced bread, matching our
commitment to have 100% British flour in store bakeries. We sell nearly 40 million loaves of our own label bread every year,
not including what we make in our in store bakeries. We are now sourcing an additional 1,500 tonnes of wheat from UK
farmers every week – which is a real boost to the industry, and gives us a guaranteed traceable supply.
In 2009 we launched the 'Best of British' apple bag, which gives customers the opportunity to discover more unusual UK-
grown varieties such as Laxton Fortune, Jonagored and Cripps Red.
Case study
Concept Orchards
Our Concept Orchards were developed as
a way to help halt the decline of the
traditional British apple and pear orchard.
We are using the new orchards to develop
new varieties and increase yields through
new and innovative growing practices.
Apples
l We are the largest retailer of British apples in the UK, selling more than
200 million during the British apple season and over 45 varieties. One in
every three British apples bought in the UK comes from a Sainsbury's
store
l We are the only retailer to sell Bramley apples that are direct
descendants of the original Bramley apple tree
l Our Concept Orchards project has helped us to increase yields from 20

tonnes per hectare to 60 tonnes
Pears
l We are the largest retailer of British pear in the UK, with more than a
third of all British pears purchased in the UK sold through our stores
l We offer at least five varieties of British pears and we are the market
leader in British Conference pears
l Our Concept Pear Orchard at East Malling is identifying which growing

system is most productive under UK growing conditions
Supporting British farmers

We work with 4,500 British farmers through partnership initiatives such as our Development
Groups, Crop Sustainability Groups and Farm Connections schemes. These help the farmers
who supply our business to become more efficient and make their operations more sustainable
in the long term. They also give us a more sustainable source of high-quality produce.
Read more about the different Development Groups and Crop Sustainability Groups
We source 100% British for:
l Our milk
l Our fresh and frozen chickens

l The meat in our fresh sausages
l Our fresh eggs, which are all from British cage-free hens
l The potatoes in own brand crisps
l The milk in our own brand dairy ice cream and yoghurt (except French
set)
l Our fresh turkey and duck
l Our fresh ham (excludes Parma)
l Our fresh farmed salmon and smoked salmon
Regional ranges
We continue to see increased demand from our customers for regional products, primarily because they want us to help
them support their local economy in this tough environment. Our dedicated Regional teams, along with buying offices in
Scotland and Northern Ireland, continue to search out the best local products, and we currently sell over 3,000, both own
label and branded. We have plans in place to grow this range in 2010 and beyond. In addition, we try to make it easy for our
customers to seek out these regional and local products both within store, through press and leaflets and online. We are also
helping local and small suppliers to develop their business where we see real potential. Last year, 11 Scottish suppliers
successfully completed our Scottish Supplier Development Programme, which consisted of workshops and visits to stores and
our Scottish depot. We have also helped transform small branded suppliers into national own brand suppliers where the
products meet our customer expectations for quality. We continue to seek out new suppliers using our 'Supply Something
New' programme and we are actively campaigning for new bakery and desserts suppliers to get in contact with us.
Case study
Doherty and Gray

Our supplier Doherty and Gray began their
relationship with us by supplying local
branded sausages for our customers in
Northern Ireland. As this relationship has
grown, they now supply us with our ‘Taste
the Difference’ sausages in Northern
Ireland and also supply our national lines
including Butcher's Choice Beef Sausages.
This has transformed their turnover with
Sainsbury's from £20,000 to £5 million
over a five-year period, enabling them to
reinvest £1.5m into their factory.
Animal welfare
Animal welfare continues to be one of our customers' top concerns. They are
looking for value for money, but they also want food that is reared to high
animal welfare standards. We have been committed to this for many years
and we were one of the first retailers to launch Freedom Food Chicken in
2004.
In February 2009 we became the first major retailer to stop selling eggs from caged hens, a year ahead of our 2010 target
and more than two years ahead of Government legislation. On top of this, we are committed to using only cage free eggs as
an ingredient by the end of 2011.
Woodland eggs and chickens

We are the only retailer to offer high welfare Woodland eggs and chickens. These eggs are produced by hens that have the
freedom to roam in an environment that closely matches their natural habitat. Two pence from every Woodland chicken
sold, and one penny from every dozen Woodland eggs is donated to the Woodland Trust to support the planting of native
woodland across the UK. In addition, all of our ‘Taste the Difference’ turkeys are 100% Woodland.
“The partnership between Sainsbury’s and the Trust has certainly come a long way since we first
started working together in 2004. Not only has it been pioneering in pushing forward hen welfare, but
has also led to more than 200,000 trees being planted. Thousands of these trees have been planted by
schoolchildren and community groups through the Trust’s hedge and copse packs which Sainsbury’s
now completely funds. So this coming year, 10,000 schools and 300,000 children living in the UK will be
able to plant a tree thanks to Sainsbury’s contribution to the Trust’s work!
This is an enormous achievement and one which will grow and grow as our relationship continues to
develop. From a Woodland Trust point of view, we feel Sainsbury's is an ethical brand which we are
very happy to be associated with. Together we really are making a real difference.”
Sue Holden, Chief Executive of the Woodland Trust
Freedom Food
We are proud that not only do we offer the widest range of Freedom Food products of any UK retailer, but we also are the
largest retailer of Freedom Food in the UK by value. This year, total Sainsbury’s Freedom Food sales have hit £143 million,
according to Kantar Worldpanel, and 60% of our customers have purchased at least one Freedom Food labelled item in the
past year.
Sainsbury’s sells 62% of all Freedom Food in the UK, and sales have doubled in the past year. This comes despite tough
economic conditions, with customers continuing to seek out value without compromising what they believe in. Sainsbury’s
data shows that volume sales of Freedom Food chicken increased by 90% between 2009 and 2010 and it is growing at a
faster rate than all other fresh chicken ranges. In 2010 we moved all our fresh and frozen duck to 100% freedom food
(excludes prepared duck).
“It is clear farm animal welfare is of paramount importance to more people than ever before. And the
fact that Sainsbury's customers have stood firm by animal welfare through some of the most difficult
economic times only reinforces that it is an issue that is here to stay.
Our thanks go to Sainsbury's for its continued commitment to Freedom Food and expanding the range,
and its customers for increasingly putting welfare at the top of their shopping lists.”
Leigh Grant, Chief Executive of Freedom Food
Fairtrade
We were the first major UK supermarket to offer Fairtrade food back in 1994,
and we are still expanding our Fairtrade range. This makes a positive long-
term difference to farmers, growers and local communities in developing
countries across the world.
According to the Fairtrade Foundation, we are the world’s biggest retailer of Fairtrade products, with sales last year
reaching £218 million. That equates to one in every four pounds spent on Fairtrade in the UK being spent at Sainsbury’s.
Fairtrade products
We currently offer over 800 Fairtrade products, and now sell more Fairtrade bananas than all
the other major supermarkets combined, according to Kantar Worldpanel. Our own brand tea
is Fairtrade (except speciality teas) and all our own brand roast and ground coffee became
Fairtrade in September 2009. We are still growing our range of Fairtrade clothing, and all our
men’s and women’s standard T-shirts – our best selling clothing line – are made of Fairtrade
cotton.
We offer 100% Fairtrade:
l Bananas
l Sugar
l Tea
l Roast and ground coffee
l Men’s and women’s plain crew neck T-shirts

l Kenyan roses
l Café tea and coffee
Volume of Fairtrade
bananas sold in the UK
Rest of the UK
Sainsbury's
“Now farmers have one strong voice to talk to our buyers and leaders. We have one united platform
which makes it easier to get health care and agricultural extension services, business training and to
obtain micro finance loans. With this kind of organisation the quality and quantity of our products has
greatly improved.”
James Babumba, Chairman Fruits of the Nile Growers Association
The Fair Development Fund

Since 2007, the Sainsbury's Fair Development Fund has been helping farmers and growers in the developing world benefit
from Fairtrade, by setting up international partnerships between producer groups, NGOs and retailers. It supports small
producers to increase their competitiveness and improve their sustainability and to raise their revenues by bringing new
products to market. The Fair Development Fund is managed by Comic Relief and was launched with an investment of £1
million. Last year we launched new Christmas nut lines produced by Fair Development Fund farmers, and their dried fruit was
used in bars sold to raise money for Sport Relief 2010. We have also helped fund the development of new Fairtrade standards
for pulses and vegetables, with Fairtrade green beans launching in store this year.
Case study
Fairtrade
We were the first supermarket in the world
to buy Fairtrade certified tea from
Sukambizi in southern Malawi. This 6,000-
member co-operative received its first
Fairtrade premium payment in May 2009
and it put towards subsidising purchases of
fertilisers, which are often too expensive
for small-scale farmers to buy. Used
properly, they can raise crop yields by up
to 30%. Some of the money is also being
spent on the provision of piped water and training for farmers on good
agricultural practice, soil management and sustainability.
The co-operative members plan to use future premium money for

projects like building schools, buying ambulances, providing electricity to
rural areas and constructing safe play areas for children.
Suppliers and the environment
Climate change, water scarcity, over-exploitation of resources and

unsustainable farming practices are all serious factors threatening our food
security and the long-term sustainability of agricultural production.
Source: Marine Harvest
Our ability to continue to supply our customers with high quality food and drink at fair prices depends upon the long term
sustainability of our business. Failure to address the social and environmental impacts of our food supply chain will, in the long
term, undermine the economic success of our business. We can only have a genuinely resilient food supply if our products
are produced and cultivated in a sustainable manner. We are already working with our suppliers to do just that – to manage
key resources like fish, timber, palm oil and water more responsibly and minimise the impact on the environment. This is good
for us, good for our customers and good for our suppliers too since it helps make their businesses more efficient and more
sustainable in the long term.
Fish
According to the ‘State of World Fisheries and Aquaculture’ report produced by the UN Food
and Agriculture Organisation in 2008, between 75% and 80% of the world’s major fisheries are
fully exploited, over-exploited or depleted. This is why we are so committed to sourcing our
fish in a sustainable and responsible way.
We offer the largest range of own label Marine Stewardship Council certified fish in
the UK. We sell over 60 MSC products and in 2009 our sales of MSC-certified fish reached
over £62 million, an increase of 65% on the year before.
MSC certification is only available on some fish products, and in other cases we use our own
unique fish sustainability rating system. We developed our traffic light sustainability rating system in 2006, by working closely
with the Marine Conservation Society, suppliers, campaigners and industry experts. Our sourcing system considers the health
of the fish stocks, how well the fishery is being managed and the impact of fishing on the environment. All our fish is now
covered by this traffic light rating system, and we are on track to convert our top five fish species to green status by the end
of 2010. These five species cod, haddock, tuna, salmon and prawns represent 80% of our sales.
Highlights so far:
l We were awarded an ‘A’ rating in the Consumer Focus ‘Green

Supermarket Survey’ in November 2009, achieving ‘Excellent’ in the fish
category
l All our fresh and smoked farmed salmon is ‘Responsibly Sourced’, 100%
Scottish and meets the Freedom Food Standard
l All our wild salmon is MSC-certified, including canned wild salmon
l All our Yellowfin tuna is line caught
l All our fresh and frozen haddock and Atlantic cod is line-caught, from
responsibly managed fisheries in Iceland and Norway
l All our canned tuna is caught by pole and line
Timber
We are very aware of the important contribution trees have on our planet and communities.
Forests cover 30% of the planet's total land area and six million hectares of forest are lost
every year through deforestation and degradation. Trees are of paramount importance to our
business and as such we have recently committed to plant one million trees over the next five
years.
We are working with partners like Woodland Trust to support UK woodland regeneration and
national tree planting. We were a founding member of the WWF Forest and Trade Network,
which is committed to responsible certification of the world’s forests.
We expect our suppliers to hold detailed Chain of Custody for any wood or fibre used in our products so that we can be sure
no illegal materials have been used. We are also working with our suppliers around the world to help build their capacity to
manufacture products with sources that are traceable, from tree to shop.
In 2009, 88% of the wood used for Sainsbury’s products was made from Forest Stewardship Council (FSC) or recycled
sources. By the end of 2010, all the natural corks used to bottle our own brand bottles of wine, spirits and beer will be FSC
certified.
“We continue to applaud Sainsbury’s commitment to FSC and the example it is setting by reaching such
high percentages of FSC-certified timber-based products on their shelves. The decision to continue
with natural cork closures deserves special praise. Others are turning to the screw caps and synthetic
closures, but Sainsbury’s recognises that cork is one of the most sustainable of all natural products. A
cork oak tree is happy to surrender its bark every nine years and will still live for centuries, throughout
which time a cork oak forest helps to support a host of rare and endangered animals.”
Charles Thwaites MBE, Executive Director, FSC UK
Sainsbury’s products made from FSC-certified or 100%

recycled materials
l Tissues
l Cork
l Toilet rolls
l Paper tableware
l Stationery
l Kitchen towels
l Christmas cards and wrapping paper (apart from metalised products

where this was not possible)
l Garden furniture
l Barbeque charcoal and briquettes
Case study
Forest Stewardship Council cork

Natural cork is still used in a wide variety of
wines, spirits and beers, and we sell over
six million bottles sealed with cork closures
every year. For the wines where we
choose to use natural cork, we ensure that
all the cork we use comes from sustainably
managed forests. By switching the
sourcing of our natural corks to FSC
certified cork, we aim to be the largest user
of FSC-certified cork in the world by early
2011.
Cork oak trees have a unique ability to regenerate after their bark has
been harvested, which means the forests create exceptionally valuable
eco-systems. FSC certification looks in detail at a producer's conservation
and harvesting practices, and is the best way to encourage biodiversity
and protect this special environment for the long-term benefit of local
communities.
Water
Water is already a significant social, environmental and economic issue and is becoming more so. Unlike carbon, the impact of
water use is specific to a particular locality. Knowing this, we are taking a leading and active role in industry groups like IGD,
who are food and grocery experts, to promote a better understanding among our suppliers of the issues relating to water
usage, both direct and indirect. We are also engaging with growers and local stakeholder groups in water shortage 'hotspots',
through our Crop Sustainability Groups.
We are developing a comprehensive Water Strategy and plan to launch it later in 2010. In the meantime we are working with
our suppliers, farmers and growers to understand and improve their water efficiency and encourage better water stewardship
by those firms that supply products where water use is a particularly sensitive issue.
Carbon footprinting
We are also building on our experience with carbon footprinting from the Sainsbury's Dairy Development Groups and are
rolling out the tool to other species. This year we will be carbon footprinting beef, lamb, pig and poultry farms to help them
reduce their energy costs and carbon footprint.
Palm oil
Increased demand for palm oil is a major contributor to deforestation and climate change; this
is why we have set ourselves the goal of using only certified palm oil across our entire product
range by the end of 2014. In May 2008 our 'basics' frozen fish fingers were the first British
supermarket food product to use palm oil from certified Roundtable on Sustainable
Palm Oil (RSPO) sustainable sources. We were also the first retailer to make all of our own
brand digestive and rich tea biscuits using only RSPO certified product. We sell over 300 million
of these biscuits every year, so this is a significant contribution. Since we started using only
sustainable palm oil in our 'basics' fish fingers, sales doubled within 12 months.
We also want to make it easier for customers to see whether there is palm oil in our products,
instead of using the more generic term 'vegetable oil' as many other companies still do. We were the first supermarket to
identify palm oil on the labels of all fresh and chilled food and completed similar labelling on all Sainsbury's food
products in 2009. All the same, we still need to source higher quantities of sustainable palm oil and as part of this effort we are
working with our suppliers on the ground to drive industry-wide changes in sourcing practices. We have established our own
tracker to identify the sources of palm oil in our own products. This has helped us to identify our top 20 major users of palm
oil and we are now working with them to make the move to certified supplies.
“Sainsbury's has been a strong support in the development of the Roundtable for Sustainable Palm Oil
(RSPO) since the beginning. By making its public commitment of using only certified palm oil by 2014,
it sent a strong signal to the market. Sainsbury's is walking the talk on palm oil sustainability, setting
an example to others.”
Jan Kees Vis, President RSPO
“Sainsbury's can be proud of its record on palm oil. It is an active member of the Roundtable on
Sustainable Palm Oil and it has been one of the earliest movers on sourcing certified sustainable palm
oil - which is the only way to guarantee that the palm oil a company is using has not caused
unacceptable forest loss or damaged valuable wildlife like the orang-utan. Sainsbury's scored well in
WWF's Palm Oil Buyers' Scorecard in 2009, which reflects this good work and shows others that it is
possible to do the right thing. However, like every other palm oil user, it still needs to do more to reach
its target of using only sustainable palm oil by 2014.”
Adam Harrison, Senior Policy Officer: Food and Agriculture, WWF Scotland
In the way we run our
business and making
it easy for customers
to be environmentally
responsible.
At Sainsbury’s we are committed to reducing our impact on the environment and aim to be
leaders in the UK for environmental innovation.
This means being environmentally responsible in the way we run our business, using innovation where we can in stores,
products and packaging but also making it easier for our customers and colleagues to make more sustainable choices.
Climate change is one of the greatest challenges we all face. We source products from all over the world, which means we
have an important part to play, both in the evolving environmental debate, and in doing what we can to reduce our carbon
and wider environmental footprint.
Every major business has both direct and indirect impacts, but in retail the distinction is particularly significant. It means we
don’t just have to think about our own environmental performance, but need to take into account the carbon that goes into
the construction of our buildings, and the environmental consequences of the products we sell and how they are used.
During the past year we have evolved our approach on environment to a Climate Change Strategy. It divides the business
into three elements: Our Operations, Our Products and Our Customers. In the past year we have been concentrating as
much on the way our stores and distribution systems manage issues like waste, carbon and water as on our product range
and the crucial work we can do to help our customers shop and live more sustainably. We have already been given an 'A
rating' in the Consumer Focus 'Green to the Core?' survey which ranked the major supermarkets according to how
easy they made it for consumers to go green. In the survey we were praised for having 'excellent sustainable farming and fish
policies' and the 'high proportion of sustainable products available'.
Looking to the future, our strategy will help us to put in place new targets, aims and ambitions in relation to our operations,
products and customers to 2020 and beyond.
To help us achieve our ambitions we are investing in a partnership to help secure our position as leaders in environmental
innovation. In March 2010 we announced a new five-year partnership with Imperial College, London and the Grantham
Institute for Climate Change. The aim is to research the latest ideas in engineering and building design, which could
dramatically help us to reduce our carbon footprint. This might include developing ‘carbon positive’ stores or providing heat
and recycled water to customers’ homes. We also hope to extend the partnership to help reduce the environmental impact
of products, supply chains and packaging.

Reducing energy We will reduce our CO2 emissions per m2 by 25% Ongoing – our commitment
by 2012, against a 2005/06 baseline on refrigeration, Eco-stores
and reset programme are
helping us to progress
towards this target
Reducing packaging We will reduce our own brand packaging weight, Ongoing – making progress
relative to sales, by 33% by 2015 against a 2009 both incrementally through
baseline packaging redesign and
through packaging
innovation like milk bags
Reducing food waste We will have all supermarkets and depots connected Achieved and ongoing –
to a zero food waste to landfill programme by the we now have all of our
end of 2009 supermarkets and depots
connected to a zero food
waste to landfill programme.
In 2010/11, we will further
embed this into the business
by connecting our
convenience stores to the
programme and provide
additional colleague training
on zero waste
Reducing waste We will have all supermarkets and depots connected Ongoing – making progress
to a zero waste to landfill programme for operational by using our back-hauling
waste by the end of 2010 process more efficiently and
ISO14001 at depots. By the
end of 2010, all
supermarkets, convenience
stores and depots will be
connected to our zero waste
to landfill programme

Reducing energy We will install five new biomass boilers

We will reduce our CO2 emissions per square metre by
25% by 2012, against a 2005/06 baseline
Reducing packaging As well as focusing on reducing our packaging, this year we

We will reduce our own brand packaging weight relative to will also be focusing on depot ready packaging to remove
sales, by 33% by 2015 against a 2009 baseline unnecessary packaging from the overall supply chain
We will work with all the stakeholders to make more of our

packaging recyclable
We will launch hundreds more products where we have

reduced the packaging
Reducing food waste We will deliver a new iconic anaerobic digestion partnership
We will have all supermarkets and depots connected to a
zero food waste to landfill programme by the end of 2009 We will find a solution to diverting convenience food waste
from landfill
Reducing waste We will find a solution to colleague vending machine

We will have all supermarkets and depots connected to a recycling
zero waste to landfill programme for operational waste by
the end of 2010 We will work with Imperial College to develop innovative
'natural' building materials
We will work with the packaging industry to further the use

of recycled materials in packaging
Reducing our carbon footprint – Our operations
We are supportive of the Government’s leadership position to reduce the UK’s

carbon emissions by 80% by 2050.
In practice this means we support the UK government’s attempts to make progress beyond EU targets through initiatives
such as the Carbon Reduction Commitment. It is encouraging to see broad political agreement on the challenge of climate
change. We welcome opportunities to work with Government where applicable and appropriate, though we recognise there
are times when we are aligned and occasions where our interests differ or where the policy is less clear. In those circumstances
we make our own informed decisions and commitments and take leadership positions beyond those set by Government.
We are committed to reducing our carbon emissions and are on track against our target to reduce our store carbon footprint
by 25% per m2 squared by 20121 . Using an updated measure of our total direct carbon footprint2 , our emissions this year
were 844,234 tonnes. This year we have reduced our direct carbon emissions by 12,723 tonnes compared to last
year and we have done this despite growing our supermarket space. The Carbon Trust verified this and we were given the
Carbon Trust Standard at the end of 2009 in recognition of our achievements in reducing carbon emissions from our
supermarkets.
Total tonnes of CO2 (Supermarkets only)
Total tonnes CO2

(including Green Purchase)
Our aim is to be a leader in the journey towards a low carbon emissions and more sustainable economy, both within our own
industry and across British business as a whole.
Energy efficiency – Our operations

The energy our stores use in refrigeration, lighting, heating and ventilation accounts for some 60% of our supermarket
carbon footprint, which means energy efficiency is one of the single most important ways in which we can reduce our
footprint going forward.
Energy efficiency of Sainsbury's supermarkets
Kg CO /m2 (including Green

Purchase) 2
One of the ways we are doing this is by continuing to push the boundaries on the use of new technology. In developing new
stores we incorporate as many energy efficiency measures as possible so that they become standard features. We trial and
then take advantage of the latest developments in building design such as natural lighting through sun-pipes, intelligent
heating and ventilation systems and LED lighting in fridges. In the future we will be considering environmental and natural
building materials. Using a range of innovations like this can make a significant impact on the energy efficiency of our stores.
For instance this year we added an extension to our Durham store that created 50% more space, but cut overall energy use
for the whole store by 10%. Add in the impact of biomass energy generation, ground-breaking refrigeration technology and
wooden panel construction, and we believe our Durham extension will actually be "carbon-negative" after just two
years.
Improving our existing stores can be just as valuable as bringing in new technology. A good example is our Energy Reset
programme. Over half of our main stores have now been through this programme, and nearly 5,000 individual energy
savings initiatives have been identified since it started. The average energy saving for stores that were 'reset' last year was an
impressive 17%. Reset will be extended to a further 60 stores in 2010/11 and we will also be running a trial of automated
building management systems at 20 of our convenience outlets.
Engaging our colleagues is another important way of tackling climate change, and one where small changes can add up to a
significant difference. We encourage our colleagues to push for improvements at their own store by giving them access to a
dedicated website, which has information about their local environmental performance. This means they can see how much
energy their building is using, and how much waste it is producing. This allows our colleagues to target their efforts where
they will make the biggest impact. Last year alone, the website had 12,000 hits.
We are also very much aware that our 150,000 colleagues are consumers of energy in their own homes. This is why we are
one of five major companies to have joined the ‘Insulate Today’ scheme, through which we offer the most cost effective
home insulation deal in the market to our colleagues and is part of the Government’s ‘Act on CO2 ’ campaign (there is more on
home energy efficiency in the case study).
1 Against a 2005/06 baseline.

2 Scope 1 and 2 of the Greenhouse Gas Protocol methodology.
Case study
Refrigeration
Refrigeration accounts for approximately a
third of our direct carbon footprint and
even more than that when the necessary
energy consumption is factored in.
However, we will always need effective
fridges to ensure that our products are
kept fresh from field to fork, which also
helps reduce unnecessary food waste. In
2009, we were the UK's first retailer to
make a firm commitment to phase
out harmful refrigeration gases from our stores, pledging to switch
all our fridges to new CO2 technology by 2030. We have already
earmarked 135 stores to use this technology by 2014 and it will now be
installed in all our new stores. By 2030, this will help us cut our carbon
footprint by more than a third. This is because the harmful gases we are
replacing contribute far more to climate change than CO2 - 3,000 times
more, in fact. Fridges also use a lot of energy and the new versions are
more energy efficient. Our leadership announcement was recognised by
Greenpeace UK:
“Sainsbury’s announcement of a timetabled phase-out of these

dangerous chemicals is a signal that their removal is economically
feasible as well as environmentally necessary. The leadership the
company is showing on F-gases stands in stark contrast to our
political leaders’ timid reluctance to be the first mover on
anything - they must learn from this.”
Doug Parr, Chief Scientist, Greenpeace UK
Case study
Our electric fleet

With 70 in use already, we believe we
have the world’s largest fleet of
electric vans. They keep inner city air
clean and the energy that powers them
produces 100% less carbon than diesel at
the point of use. They also use
regenerative braking, which recaptures the
energy used while the vehicle is slowing
down to help recharge the batteries.
We now have an electric recharge point network at our ten of our

London stores, which allows customers to charge their electric vehicles
free of charge, while they shop.
Renewable energy – Our operations

We want to use the lowest-carbon sources of energy as possible. Our primary approach is to reduce energy demand by
installing conventional efficiency measures and then invest in renewable energy systems in our stores where possible.
We have been trialling different renewable technologies since our first environmental store in Greenwich opened in 1999
including wind power, solar power and hydrogen fuel cells. We have five ‘environmental stores’ across the UK and most of
these now have such renewable energy systems. One of the most successful innovations we have introduced has been to
use biomass boilers and generators that use wood chip pellets instead of gas and so are much lower in carbon. By burning
wood pellets in biomass boilers instead of gas we estimate that stores can generate up to 30% of their energy requirements
from renewable sources. We have already installed six biomass boilers and have plans to introduce another five this year. We
recently installed a biomass combined heat and power generator at our store in Westhoughton, which we believe is a
European first. This will allow the store to generate not only its own heat but also its own electricity. Looking forward into the
future we expect our stores to integrate more renewable energy technologies and continue to carry out trials and tests on
the latest innovations.
Across the business as a whole we now purchase 1% of our electricity requirements directly from renewable sources instead
of buying from ‘green energy tariff’, and we aspire to increase this to 20% by 2012.
Case study
Renewable energy
Our new Westhoughton store is our first
to be equipped with ‘clean’ refrigeration
and we have also included a number of
other environmental features designed to
reduce our carbon impact.
This includes the introduction of Europe’s

first biomass generator, which uses wood
pellets from renewable sources to generate
heat and electricity to power the store. We
predict that this will produce approximately 50% of the store's energy,
making it one of the most carbon efficient stores in the country. Likewise,
more than 90% of the waste generated during construction was reused
or recycled rather than being sent to landfill.
Other environmental features at Westhoughton include:
l A rainwater harvester that will provide water to flush the toilets
l ‘North lights’ that are north-facing windows designed to maximise

daylight
l Automatic dimmer to reduce energy use on brighter days

l LEDs in place throughout the store and car park – another first for
Sainsbury’s – which use less energy
l Blinds over our fridges that can be pulled down at night. This saves 5%
on our energy consumption per year, which is the equivalent of
making 2.5 million cups of tea
l The retrieval of cold air from our fridges that is re-used to keep the
checkout areas cool
l A ‘cyclepod’ that makes it easier for customers to shop by bike. The
cyclepod is made from over 12,500 recycled aluminium cans, which
has saved enough energy to power a TV for 600 hours
l Energy monitoring via web-based technology that shows how much
energy is being consumed in each part of the store
We are working to implement the same high energy management

standards at all our stores, including a trial of automated building
management systems at 20 convenience stores.
Water – Our operations
We want to use less water and our aim is to cut usage by 50% per m2 of sales area by 20123. This starts with a
programme to assess water consumption in both stores and depots, which helps us identify leakage areas and possible water-
saving projects, like reclaiming the water used in our car washes. We are fitting low-flush toilets, waterless urinals and
percussion taps in all our stores. Rainwater harvesting is also now a standard specification for new stores.
Once again, engaging with our colleagues is making a huge difference here. We are encouraging colleagues across the
business to help us save water, both those on the shop floor, and those with specific responsibilities in areas like facilities
management.
Logistics – Our operations

Moving goods from suppliers to stores is a complex process and involves moving products via sea, air, rail and road to our
depots and then to stores. This process of course contributes to our carbon footprint. At the same time, our depots, like our
stores, use energy and water and must therefore be managed as efficiently as possible. All of our depots are certified to the
environmental management system ISO 14001, which provides the framework for us to manage our impacts more
effectively.
Efficient logistics operations are delivered by ensuring that the right stores are linked geographically to the right depots, which
helps to reduce transport miles in the first place. Other initiatives such as introducing double-decker lorries allow us to
transport more food in a single journey and we also train our drivers to drive in the most efficient way possible.
We have completed the introduction of our industry leading Integrated Transport Management System to help cut our CO2
emissions across both our primary and secondary transport operations. In our primary operations (supplier to depot) this
year we are more effectively utilising empty trucks that pick up produce from suppliers en-route back from store deliveries. In
our secondary operations (depot to store) we have reduced our CO2 per 1,000 cases transported to 121.6kgs per 1,000
cases transported this year, a reduction of 6.4% on the year and nearly 16% over the last 5 years, meaning we have already
reached our 2012 target. By utilising both our own and suppliers' fleet more efficiently we have delivered a reduction of
around 1,174,046 vehicle kilometres this year.
3 Against a 2005/06 baseline.
Reducing Waste - Our operations
We are committed to reducing the amount of waste we create in the first

place, by being more resource efficient. We do this through better stock
control management and more accurate sales forecasting.
This ensures that our stores stock the right quantity of food to satisfy customer demand at any one time. If we are then left
with excess food, we sell as much of it as possible at a discount, which keeps waste to a minimum. The final step is to re-use
what we can by donating surplus food to local charities such as FareShare (there’s more on this in the section on Making a
Positive Difference to our Community). Only at this stage do we consider what is left ‘waste’.
We are working towards zero waste to landfill, and are well on track to complete the first phase of this journey by connecting
all our stores and depots to anaerobic digestion or combustion plants by the end of 2010. It is our ambition to be a zero
waste business overall, by finding new ways to re-use or recycle not just food waste but operational and construction waste.
As signatories we are committed to helping WRAP achieve Target 2 of the Courtauld Commitment 2, a 5% reduction in food
and drink waste within the supply chain.
Reusing waste – Our operations

While our first aim is to reduce waste as much as possible, we next try to find opportunities to re-use it. Under our Zero
Waste to Landfill programme we have connected all our main stores to our zero food waste to landfill network where we send
food waste back to our depots. The waste is then collected together and sent to anaerobic digestion or combustion plants. As
a result, we are now diverting nearly 30,000 tonnes of food waste from landfill every year, and will be extending the network
to our convenience stores during 2010/11. Looking to the future, we hope to send all our food waste to anaerobic
digestion, because we believe this is a more environmentally sustainable solution than combustion. Finally, our depots and
new store development programme are also part of the Zero Waste to Landfill programme and through the use of the
ISO14001 management system we are reducing and reusing operational and construction waste.
Waste diverted from landfill
Diverted from landfill

Landfill
Recycling waste – Our customers

This is another area where our colleagues and customers play a huge role. Every year colleagues recycle 125,000 tonnes of
cardboard and 8,500 tonnes of plastic film, plus all of our point-of-sale materials and office paper. Working in partnership with
bio-fuel suppliers we also recover and recycle over one million litres of cooking oil annually from our stores. We were the
UK's first retailer to offer battery and light-bulb recycling facilities to customers in every store, alongside more
general recycling bins. Over a quarter of a million batteries have been recycled since this started in February in 2010, which is
more than any other UK supermarket. We also now recycle customer mobile phones, satellite navigation devices, printer
cartridges and clothing.
This is only one way in which we try to encourage our customers to recycle more themselves. We also use the widely
recognised 'on pack recycling logos' on most of our own brand products and we are the only UK supermarket to offer
recycling facilities for polythene packaging like grape, cereal bags and plastic carrier bags. In fact, we led the first
ever mixed plastics recycling trial in the UK, funded by WRAP. The aim was to identify the most practical and economical way
to collect different types of plastic packaging at a single collection point. We are now awaiting the final results of the trial.
This is all good progress but there are some things that remain real challenges beyond our control. For example, we are trying
to reduce the volume of our packaging and make as much of our packaging recyclable as possible, but local authorities who
manage recycling at our stores cannot offer a single, national and consistent collection scheme nationwide. This makes it very
difficult for our customers to know exactly what they can recycle and makes it difficult for us to communicate a clear, 'one
size fits all' message about recycling. We will continue to work with Government to find a satisfactory solution to this problem.
Carrier bags – Our customers

We know that plastic bags are a concern for many people and our customers, colleagues and
stakeholders often tell us they would like us to do more to reduce the number they use. We
believe that encouraging customers to change their behaviour is the best way to reduce the
numbers of bags, rather than introducing a ban or tax. In 2009 we successfully contributed to
the retail sector voluntary initiative to reduce the number of bags given out by 50% and all
our bags have a lower environmental footprint with 50% recycled material. We encourage
customers to reuse their bags by giving them a Nectar point each time they reuse either their
own bag or one of ours. Last year, we gave out approximately 70% more Nectar points than
the year before for bag reusage, a total of over 462 million. We have also seen a 12% increase
in the sale of our 'Bag for Life' range which further shows our efforts at helping customers to
reuse bags are having real results. We are now trialling new signage to remind customers to bring their bags from the carpark.
Working with our suppliers - our products
The food and drink supply chain is an important part of the UK economy, but
there’s no denying it has some significant environmental impacts.
For example, according to the Government's Food 2030 report, published in 2009, around 22% of UK greenhouse gas
emissions are related to food production and consumption. We completely accept that a company as large as ours has a
responsibility to do what it can to make a positive difference here. We want to be part of the answer, not part of the problem.
Using water to grow crops is a necessary part of the food supply industry but we are all too aware of the scarcity of this
precious resource and the pressure this puts on the world’s ecosystems. We take water reduction in our supply chain very
seriously and even though this is a complex issue involving many stakeholders we are actively working with our suppliers,
particularly in our crop supply chains, to map our key water hotspots. Our long-term aim is that our products should have
the lowest embedded water footprint possible.
Reducing the embedded carbon in products is another huge issue and, like with water, we are seeking better ways of working
with suppliers. Our pioneering Dairy Development Group proves that reducing carbon can actually help suppliers become
more profitable (see Sourcing with Integrity section) and we are rolling out the same approach with our other key raw
materials supply chain both in our food and non-food business. For more information on our suppliers and the environment
please visit our Sourcing with Integrity section.
Packaging
We believe we are pushing the boundaries on packaging reduction and our target, a 33% reduction in packaging by
2015, is the most stretching in the retail sector. We have been introducing packaging innovations in our ranges for
many years, but this year we've made some major improvements to our biggest-selling products. We are now selling our
'basics' tinned chopped tomatoes in Forest Stewardship Council tetrapak cartons rather than cans, reducing packaging by
half a million kilos every year. This is the biggest selling non-fresh item in the store, which makes it the first time such a
high-volume tinned product has ever been switched to cartons. This is the latest innovation in our 'basics' range and
will reduce carbon emissions by 156 tonnes per year – not least because it will require fewer journeys to transport the same
quantity of product.
This year alone we made a 4.4% saving in packaging weight towards our target, which is the equivalent of an estimated
8,000 tonnes. Significant packaging successes with our range that have contributed to this saving include:
l Selling 'basics' white and dark rum in a plastic bottle, which is an 85% packaging reduction, saving an estimated 118 tonnes
of packaging per year
l Redesigning our egg boxes to reduce packaging by 9.4%, saving nearly 19 tonnes of packaging per year
l Reducing the outer sleeve on chilled ready meals, saving 34 per cent of packaging or 33 tonnes of packaging per year
l Removing the box from both our own brand Cornflakes and Fruit and Fibre, saving 126 tonnes of cardboard per year
l Cutting the packaging on the family biscuits selections, which means 70% less packaging per 100g of biscuits
Case study
Milk bags
Milk is one of our best-selling products,
selling over 436 million litres a year. Our
semi skimmed or ‘2% milk’ is particularly
popular. Milk bags offer customers an
alternative to plastic bottles and are a
great way to reduce the plastic involved in
packaging this essential product. Bags are
now used by around 60% of consumers in
Canada, the US and Australia. The UK has
been slower to adopt them, but we led the
way in rolling them out to all our stores. The two pint version uses 75%
less packaging than the equivalent plastic bottle and if all our customers
switched from bottles to bags it would save 1400 tonnes of packaging
every year. The bags will also save customers money and will be easy to
recycle at any of our stores. Since launching the milk-bags, sales have
exceeded expectations and now account for over 10% of all our milk
sales - which demonstrates that customers really like the lower packaged
version.
Alongside the bags, we are now planning to use 10% recycled material in
our plastic milk bottles. We will be the first big retailer to do this and it will
save 900 tonnes of virgin packaging a year.
Case study
One Stop Energy Shop

In December 2009, Sainsbury's Energy
took its first steps towards creating a 'One
Stop Shop' for customers' home energy
requirements. We are working in
partnerships with EDF Energy to pilot
three Home Energy Centres in our
Watchmoor Park, Kidderminster and Glen
Road Stores where customers can buy a
range of renewable products and services.
As a result, we are now the first UK retailer to sell solar PV systems,

solar thermal and air-source heat pumps, as well as other services
that help customers save money and energy, like energy contracts, DIY
insulation, fitted insulation and home energy audits. Since the launch we
have completed over 900 audits and 80 micro-generation surveys.
We have also launched a scheme called the Sainsbury’s Energy Savings

Challenge, every customer that signs up to Sainsbury’s Energy will
automatically join this scheme, and will receive regular information, tips
and advice on how to save money on their energy bills and reduce their
own carbon footprint.
Providing great service,
quality products and being
a good neighbour.
Our stores are at the heart of the communities they serve. For us, this is not only about
providing great service and quality products, it's also about making a positive difference to our
communities and being a good neighbour.
There are practical and economic aspects to this, as well as charitable ones. We provide local jobs for local people, we buy
from local suppliers and we help to protect the local environment and make it safer. We support good causes through our
Active Kids and Local Charity of the Year schemes and our longstanding partnership with Comic Relief.

Generating a positive We will provide 6,500 new Sainsbury's jobs in Achieved – over 6,500 new
economic impact on 2009/10 through our planned opening of 28 jobs were created by opening
communities supermarkets and 55 new convenience stores 38 new supermarkets and 51
new convenience stores
We will provide 6,500 new jobs in 2010/11 through New commitment

our planned opening of 17 supermarkets and over
75 new convenience stores
Supporting local We will launch our Local Charity of the Year scheme, Achieved – we have
communities linking every store, Sainsbury's depot and our supported over 750 local
support centres to a local charity partner each year charities through the scheme
this year
We will support community based fundraising and New commitment

colleague volunteering, encouraging our customers
and colleagues to make a positive difference in the
local community
We will offer local groups and charities space in our New commitment
stores to support community activities and events,
helping bring the community together

Generating a positive economic impact on communities We intend to expand our Employer Supported Policing
We will provide 6500 new jobs in 2010/11, through our intitative subject to agreement by launching a pilot in the
planned opening of 17 supermarkets and 100 new east of England. This will see Sainsbury's colleagues
convenience stores volunteering to be special constables and being given time
to conduct their police duties in combination work with
their Sainsbury's work
Supporting local communities We will host community meetings in our stores to help
We will offer local groups and charities space in our stores bring community groups together and discuss local issues
to support community activities and events, helping bring
the community together We will encourage local community groups to use our
stores as a safe place to meet
We will support community based fundraising and

colleague volunteering, encouraging our customers and
colleagues to make a positive difference in the local
community
Our economic impact
Any company with 150,000 colleagues and over 800 stores is always going to
make a major economic impact and even more so in tough economic times,
when other sources of employment are being stretched or reduced.
We have an ambitious new store development programme for 2010, which will provide 6,500 new jobs, new opportunities
for local businesses and the prospect of some important improvements to local environments and facilities.
Engaging with our communities

Like any other form of communication, good engagement is a two-way process, with benefits to both sides. By listening to
the people in our communities we get a better understanding of what they want from our stores and they get the
opportunity to tell us about any issues they would like us to address. Early and thorough consultation is always a central part
of any planned store development or expansion.
A typical consultation programme starts with a series of meetings with local groups and key figures like the local authority and
local community leaders. We follow this up by publicising details of our proposals through leaflets, dedicated websites and a
free telephone service.
The next step is a public exhibition over 2-3 days, which we advertise to the community through thousands of invitations
and adverts in the local media. We want to show people that the store will complement their town and illustrate how it could
attract further investment into the area. It's only after this event – and after we have gathered all the feedback from it – that
we go ahead with a formal planning application.
Case study
Engaging with local communities – the Wombourne new store

consultation
In late 2007 we hosted a public exhibition
to unveil plans for a new food store in the
village of Wombourne, near
Wolverhampton.
Following consultation with local people, a

planning application was submitted, but
despite high levels of public support our
plans were initially rejected by the council.
The plans were then improved, taking into
account feedback from the council and the local community. The size of
the food store was reduced, a customer café added and new ideas
incorporated, such as a 'hopper bus' and local traders' website, which
would promote links to the shops in the village centre. Consultation with
local residents and traders continued and the latest proposals were
explained at a large public meeting as well as at a series of smaller ones.
Later that month the new plans were unveiled, supported by a 700-
strong petition from local residents. As a result, the Council granted
planning permission in summer 2008 and the store opened in spring
2010.
Economic regeneration
Last year we created around 6,500 new jobs in 38 new supermarkets and 51 new convenience stores across the UK. This
was on top of the 15,500 temporary jobs on offer in our stores over the Christmas season.
Similar to last year, we expect to create around 6,500 new jobs at 17 new stores and 75 to 100 new convenience stores in
2010/11, which will make a significant contribution to the UK economy. In addition, through our store openings and
extensions we have indirectly created jobs in construction, engineering and other disciplines. Our recently launched Supplier
Trainee Partnership scheme works in conjunction with sixty of Sainsbury's top construction, engineering, facilities
management and retail suppliers to provide training and employment.
When we develop a new site, it's not just about building a new supermarket. It often includes investment in local roads and
pedestrian access, as well as other new facilities like shops, sports centres and community centres. We also look to work with
local suppliers where we can – local companies and producers are currently supplying us with over 3,500 products, and we
would like to see this number increase.
Our social impact
Being a good neighbour is about more than the positive economic impact we
bring to communities.
We work with local charities and community groups to support local good causes and larger nationwide charities like Comic
Relief and the Scouts, to name but two. We also support disadvantaged groups and help tackle some of the social problems
we all face, like childhood obesity.
Local Charity
Our 'Local Charity' scheme lets our colleagues and customers select a local charity to support each year. Nominations are
taken in the store, and our local Colleague Councils selects three charities that they feel address local needs. One charity is
then selected from these three by our colleague councils. After positive feedback from customers and colleagues, we will be
running the scheme for the second year in 2010. We will support and encourage our colleagues to get even more involved
through volunteering and fundraising.
Case study
St Anne's Hospice
Last May, the Colleague Council at our
store in Romiley, Manchester, picked St
Anne’s Hospice as its local charity partner.
The store manager, Allen Wales, organised
a 10km Manchester Midnight Walk to help
raise funds and over 100 colleagues took
part, raising £100 each. This figure was
matched by Sainsbury’s, resulting in a total
of £20,000 for the hospice.
“Working with Sainsbury’s has been such a positive experience.”

Chrissie Baldock, responsible for fundraising at the hospice
So far, we've supported over 750 local charities through this scheme and as we promised in our 2009 report, all our stores
and depots are taking part. These partnerships have helped us raise over £1 million for charity and our colleagues have
volunteered over 3,500 days, equivalent to nine yearsbetween them. The scheme has also helped us raise awareness of our
community activities with both customers and colleagues – our Talkback survey shows that this has risen by over 4% among
our own people.
Case study
South Camden Community School

Last year we set up a partnership with
South Camden Community School in
north London to help it to relaunch its
‘Behaviour for Learning’ programme. This
is about finding better ways of working for
the leadership team that will ultimately
improve overall school performance. We
shared some of the things we have learned
as a major retailer and helped the school
get local government funding. Some of
our graduates also ran a workshop for year 7 students starting at the
school. We have expanded our involvement in 2010, with a mentoring
scheme for sixth-form students.
“The partnership which we have been developing with Sainsbury’s over

the past two years has been extremely beneficial to the staff and
students of SCCS in many ways. The support Sainsbury’s has been able
to offer – including organisational development, staff training and
primary-secondary school transition as well as individual mentoring and
work experience for students – has been extremely effectively targeted.”
Rosemary Leeke, Headmistress, South Camden Community
School
'More than just a store'

Being part of our local communities can mean a lot of different things. We pride ourselves on providing efficient, well-run
supermarkets with everything local people need for their weekly shop. This is a good place to start, but we feel we have more
to offer the local community. At their best, our stores are genuine community spaces, where people can access a whole
range of different services and meet together in a safe environment. Our shorthand for this is 'more than just a store', and it's
the reason we have opened seven police offices at our stores in Maidenhead, Ealing, Milton Keynes, Taplow, Leamington Spa,
Fallowfield and Lordshill in Hampshire – the latter is the first to be situated right inside the shop. Having the police on-hand like
this every day helps make our stores a genuine hub for the whole surrounding area. During 2009 a new Metropolitan Police
Training Centre was opened at our store in Barkingside, east London. It's located directly above the store, which means that
they get a free training facility in the heart of the neighbourhood and we get the reassurance of a local police presence, which
is very much welcomed by our customers. We have extended our offer of partnerships with the police to all suitable new and
refurbished supermarkets.
The idea of 'more than just a store' extends to a whole range of other community activities. It's about inviting the community
to use our space (from scout groups to speed dating), and going out into the neighbourhood ourselves, which might take
the form of mentoring local schoolchildren, visiting the elderly, or volunteering for local charities. We have also hosted
'community dinners' with local stakeholders in three different locations recently. They are a great opportunity to get to know
people better and understand any issues they may have. We will be doing more of this across the country in the coming
year.
We look forward to working together on further initiatives to get Scouts in store and together to put fun and value-added
volunteering into communities.
"The Scouts are really pleased with our synergy with Sainsbury's, both nationally for brand and
mission, and locally for community engagements. As a growing, fun-filled and active movement for all
the family, we share many values with Sainsbury's. Our Big Adventure this year is outdoors activity,
healthy eating and recruiting volunteers: Sainsbury's support has been tremendous. Our local groups'
involvement with in-store bag-packing and the Active Kids programme across the UK has really helped
them provide the equipment and opportunities that give young people their 'everyday adventure'.
Derek Twine CBE, Chief Executive, Scout Association
Active Kids
Childhood obesity remains a serious concern in the UK. There is no quick and simple answer to this, but it can be tackled long
term by encouraging children to eat more healthily and to take more exercise. This means getting the right balance between
'energy-in' and 'energy-out'. This is what our Active Kids scheme is all about.
Active Kids is based on providing vouchers to customers that schools and other organisations can exchange for sports,
cooking and gardening equipment, and active experiences. Last year over 39,000 nurseries, schools, Scout and Girlguiding
groups across the country took part in Active Kids, and we donated £16.8 million of equipment and experiences. That brings
the total to over £86 million since 2005, which means we are on track to deliver our commitment of £100 million by 2011.
Our Active Kids Get Cooking scheme is the largest food award scheme available to UK schools, with over 13,000 now
registered. We are helping all these schools teach children about cooking and healthy eating, and we are continually adding to
and improving the scheme. Active Kids Get Cooking scheme is a partnership between Sainsburys, the Design and Technology
Association, and the British Nutrition Foundation. There's more information at www.activekidsgetcooking.org.uk
As part of our commitment towards getting the right balance between 'energy in and energy out', we recently ran a pilot with
nine schools in Burnley, providing them with the food and supplies they need to run breakfast clubs. It was a great success
and showed the children how important it is to start the day with a proper breakfast, so they are ready for the day and can
channel all their energy into learning.
Case study
Sainsbury’s UK School Games

Sainsbury's Active Kids is the main sponsor
of the UK School Games. We are excited
to be part of this huge event for school-
age athletes, which brings together some
of the UK’s most talented young sports
people. This will give them a real life
experience of a major sporting event and
help them to prepare for future success in
their discipline. The 2010 UK School Games
will be held in September and will involve
over 1,600 young people in ten sports: athletics, badminton, cycling,
fencing, gymnastics, hockey, judo, swimming, table tennis and volleyball
with three disability events in swimming, athletics and table tennis.
Comic Relief
We have been the official supermarket sponsor of Comic Relief for 11 years now and we are
also their largest corporate partner, having donated over £48 million since 1999. The
Sainsbury's Sport Relief Mile 2010 was the biggest ever, attracting more that 175,000
participants in more than 330 mile events up and down the country. We ordered 90 tonnes of
Fairtrade certified cotton to produce the Sport Relief merchandise, which included a range of t-
shirts exclusively designed by the Beckhams. Our colleagues raised over £1.8 million, which
contributed towards the total of more than £5.4 million donated to Sport Relief this year.
“We are absolutely delighted with the £5.4 million raised by Sainsbury's for Sport Relief 2010, taking
the total raised for Comic Relief by Sainsbury's to date to a staggering £48 million. Our 11 year
partnership continues to go from strength to strength thanks to the fantastic ongoing commitment and
enthusiasm of each and every Sainsbury's colleague.”
Kevin Cahill, Chief Executive of Comic Relief
Case study
Visiting Comic Relief projects in Bangladesh

Over the past year we gave some of our
top charity fundraising colleagues the
chance to see for themselves what
difference their efforts can make. We took
some of them to Bangladesh to see some
of the Comic Relief projects being funded
there. Here’s what some of them had to
say:
“We started by visiting the main railway in

Dhaka. Right beside the track we saw
families living in squalor; we walked past what looked like a bundle of rags,
but were actually people asleep. Round the corner, however, was hope.
The Aparajeyo project offers a 24-hour shelter for children to live in. It
was amazing to see how our fundraising can stop these children having to
live on the street.”
Mike Sullivan, Holborn Store Support Centre
“On the way home I couldn’t help but feel proud about the difference our
fundraising is making to people’s lives. The extremes that people are
dealing with was mind-blowing, but the work the projects do with the
money we raise is life-changing. It’s really inspired me to get more
involved this year.”
Kevin Davies, Bexhill Store
Other visits took place in the UK, where much of the funding raised by
Comic Relief is spent.
Food donations
We have been donating surplus food to local charities since 1998, and in the last year alone we gave over £1.3 million worth
to a network of organisations across the UK. At present we have 800 stores working with local charities who take and actively
use our surplus food. We always endeavour to work with local charities but when it is not possible we work with FareShare.
FareShare takes on the distribution of food that is past its sell-by date, but within its use-by date. Not only is this a great way
of making a positive difference, it also reduces the waste we send to landfill, builds stronger relationships with local charities and
helps our stores get a better understanding of some of the issues in their community. We are also encouraging our suppliers
to do the same.
“The partnership with Sainsbury's has continued to be central to the impact and growth of FareShare
over the past 12 months.
Sainsbury's has made it clear that it is committed to completing its ethical supply chain and has been
at the forefront of exploring ways to ensure that no good food goes to waste. Sainsbury's was the first
retailer to write to its suppliers promoting FareShare back in 2007 and the funding support we received
from Sainsbury's in 2009 helped FareShare to deliver food for over 350,000 meals, benefiting
disadvantaged people across the UK.”
Tony Lowe, CEO, FareShare
Employee volunteering
Our ‘Local Heroes’ scheme recognises and rewards colleagues who support charities and other good causes in their spare
time. Those who volunteer on a regular basis, or who fundraise for charity, can claim up to £700 through our matched
funding scheme. Over the past year we have matched our colleagues' contributions to the value of over £240,000.
Case study
Cockermouth
After the devastating floods that hit the
Cumbrian town of Cockermouth in
November 2009, we stepped in to make
sure the local community had supplies of
staple items like water, bread, milk,
newspapers and nappies, as well as
emergency items like candles and torches.
We also gave £2,000 worth of food to the
emergency services involved in the
incident, as well as over 1,700 Wellington
boots and 600 items of underwear and socks. Customers joined in by
contributing both money and clothes at the checkout. £2,000 was raised
in total and the sale of local charity CDs and charity cards raised another
£1,000. We also set up a free local bus service for those stranded on the
other side of the river and put up a map at the front of the store showing
which other local businesses were still operational.
Case study
Make the Difference Days

Over the past year we have run six ‘Make
the Difference Days’, with each one
addressing a different issue that concerns
both our customers and colleagues,
whether that’s food waste or health. As
the name suggests, every ‘Make the
Difference Day’ focuses on showing people
how a small shift in behaviour can add up
to a significant change.
The October 2009 ‘Make the Difference

Day’ focused on Active Kids and stores showcased activity equipment
from tennis rackets to gardening trowels. There were also displays
showing how local schools and Girl Guide and Scouts Groups had
benefited from donations of equipment. A further £200,000 worth of
equipment was donated across the UK, as a result of the day.
In January 2010 the ‘Make the Difference Days’ focused on food waste,
and encouraging customers and colleagues to 'love their leftovers'. We
handed out three million food ’wheels' with handy tips to help transform
leftover meat and vegetables with common store cupboard ingredients.
We also gave out two million food storage boxes to help keep leftovers
fresh along with some handy food safety tips.
This year we wanted to make our ‘Make the Difference Days’ even more
compelling and engaging for colleagues and customers alike, so we invited
suggestions for themes from our colleagues. We received over a
thousand suggestions and are currently in the process of developing
them.
Making Sainsbury’s
a great place to work
helps our 150,000
colleagues achieve
our business goals.
Being ‘a great place to work’ is rooted in Sainsbury’s heritage and values. It also plays a crucial
role in achieving our business goals. We rely on our 150,000 colleagues to deliver great service
to our customers every single day.
We have always wanted to be ‘a great place to work’. It’s what has made us the great company we are today and it’s helping
us to build the business for tomorrow. We are all about great food at fair prices and exceeding our customers’ expectations
and the people who deliver this to our customers every day are the 150,000 colleagues who work in our stores and depots.
They are in every sense the face of the company.
This means we have to find the best people and then treat them in the right way, so that not only will they want to stay but
are inspired to do the best job they can for our customers. We do this by living up to our principles of equality, diversity and
fairness, communicating regularly and listening genuinely. We also give everyone the chance to reach their full potential and
recognise them when they go the extra mile.
We were proud to be awarded the 'People's Organisation' by the CBI in their 2009 Human Capital Awards. This award was in
recognition of our broad ranging HR and people management excellence.

Supporting the We will provide over 10,000 colleagues with job Achieved and Ongoing –
development of our opportunities, skills and qualifications through our We have exceeded our
colleagues 'You Can' programme by 2010 commitment to provide
10,000 colleagues with job
opportunities, skills and
qualifications through our
‘You Can’ programme by
2010. We remain committed
to ‘You Can’ and will continue
to support opening
Sainsbury's up to a wide
range of new recruits and to
help our colleagues develop
new skills through our ‘You
Can’ programme
We will improve our leadership capability by investing New commitment

in a development programme that will touch every
manager across the business by the end of the
2010/11 financial year

Supporting the development of our We will offer all colleagues the opportunity to join our cycle to work
colleagues scheme launching Summer 2010
We will provide over 10,000 colleagues with job
opportunities, skills and qualifications through
our 'You Can' programme by 2010.
We will improve our leadership capability by We will continue to offer all of our colleagues the opportunity to gain
investing in a development programme that will an externally recognised qualification
touch every manager across the business by
the end of the 2010/11 financial year
Equality, diversity and inclusion
We are a team of 150,000 committed individuals. We know that everyone is

different and we value this because it brings us so many diverse perspectives
and ideas.
It also helps us serve our customers better because the people who work for us are also our customers. Having a workforce
that spans so many aspects of age, gender, disability, ethnicity, religion and sexual orientation helps us to understand what
our customers want from us now, and how this is likely to change in the future.
Inclusion has become a fashionable word in recent years but it has been at the heart of our ways of working ever since the
business was first established in 1869. Everyone at Sainsbury’s has the same opportunities to come and work with us and
they are all treated fairly and equally when they do. We are very proud of our continued progress in this area but we know
we can always do better so we make sure we spend time talking with our colleagues on a regular basis, so that we can tackle
any issues, and break down any barriers that may still remain.
‘You Can’
‘You Can’ is our umbrella brand for the work we are doing to help our existing colleagues develop new skills, and make
ourselves more accessible to a wider range of new recruits such as the long-term unemployed. This year, we have exceeded
our commitment to provide 10,000 colleagues with job opportunities, skills and qualifications through our ‘You Can’
programme by the end of 2010.
Job opportunities
We know some people struggle to find work or return to it. That is why we were one of the first employers to sign up to
Local Employment Partnerships in April 2007. These aim to help the long-term unemployed back into the workplace
and last year alone we recruited over 800 people through Job Centre Plus and another 250 through the London Employer
Accord. Our stores regularly support both of these organisations with skills sessions for local people looking for employment.
We look for colleagues who have the right skills to serve our customers and can work as part of a team in a busy
environment. Training like this helps people build their confidence and knowledge about some of the more technical aspects of
the jobs we have across our business.
We are also working with the London Employer Accord to help ex-offenders back into jobs – there are 254 people on this
scheme now.
In 2010/11 we are expanding our ‘You Can’ framework to help former military personnel start a new job with us through
Career Transition Partnership.
Case study
‘You Can’ gives Lyn a second chance

Lyn O’Dwyer is a 53-year-old, lone parent
with four children and had not been in paid
employment for 24 years before starting in
our Purley Way store. With her youngest
child turning 15, she felt the time was right
to get back into the workplace. “I was
getting bored. My children are now self-
sufficient and are starting their lives. It’s
about time I have a second shot and start
doing something for myself.”
Lyn felt that retail would be a good place to start as she had worked in
supermarkets in the past, but her length of time out of the workplace was
proving to be a barrier. Lyn’s Jobcentre Plus Advisor told her that
Sainsbury’s was recruiting and she was attracted by the possibility of
working at night as it would give her the chance to balance work with her
family needs. At the end of the selection process Lyn was offered a three-
night work trial. “After that, that was it. I got my 30 hours a week. It was
brilliant.”
She feels that there are two key reasons why she was successful in her
application: “her complete flexibility with hours and her friendly
personality”. Lyn says that she loves her new job and would like to work
for Sainsbury’s until she retires.
Job prospects for young people have been hit particularly hard by the current recession and this is one reason why we have
given our support to ‘Backing Young Britain’. This is a national campaign that brings government, business and other
organisations together to create new opportunities for young people. It’s a great fit with what we are already doing in our
‘You Can’ skills programme where we are giving young people the chance to get the skills and experience they need to
succeed in retail.
New for 2009 was the ‘Try Before You Buy’ scheme which gave over 100 temporary colleagues recruited for the Christmas
period the chance to join our new trainee management programme. As long as they met our selection criteria (two or more
A-levels), they could complete our fast-track scheme and become one of our Department Managers leading a team within a
year. We also increased our graduate programmes and placements this year and welcomed more than 60 graduates in
September. We continue to offer paid placements for students during their summer break or a one-year placement to help
them decide on their future career. It’s a great way to help us attract potential candidates for our graduate programmes.
‘You Can’ works well for young people, but it also helps those with a learning disability. We work closely with both Mencap and
Remploy and through them we have employed over 250 new colleagues with disabilities last year. We are proud to be a ‘Two
Tick’ company, which means we guarantee an interview to any applicant with a disability as long as they meet the minimum
requirements for the job.
Case study
Supplying Colleagues with disabilities

John Smith, who is 37, used to work for
an industrial manufacturer but lost his job
as a result of the recession. He cites his
physical disability as the reason why his
countless job applications were
unsuccessful, and he began to think he
would never work again. However, John
visited Remploy’s specialist recruitment
services branch in Sheffield, and that’s
when his prospects improved. Remploy
has an excellent relationship with Sainsbury’s, and has placed many
candidates with the supermarket all over the UK. John is working at the
Crystal Peaks store near Sheffield, and he is undertaking a range of duties,
including operating the checkouts at what is one of the company’s
busiest shop floors.
Hazel Walker is the store's HR manager. “Our success with Remploy is

based on our past experience of the quality of their candidates. Disability
is not an issue with us; amongst all our colleagues, an ability to do the job
and offer fantastic service to our customers are our only concerns.”
“It’s a privilege to be working in partnership with Sainsbury’s. This

agreement is about connecting local people with local employers.”
Craig Lewis, Operations Director, Remploy
Development opportunities
“Training is at the heart of the company’s vision and is integral to our

business development activity.”
In June 2009 our ‘You Can’ skills programme was inspected by OFSTED and
judged to be ’Good’ with two areas rated as ‘Outstanding’. The report found
that our people enjoy their training, acquire good skills and are highly
motivated to succeed.
We want to help our existing colleagues develop their skills and gain nationally recognised qualifications. Options range from
apprenticeships, to job-related qualifications and to more general ‘Skills for Life’. Our apprenticeship schemes last for 12–18
months and offer vocational experience as well as a Level 2 qualification equivalent to five GCSEs at grade A* – C. We
currently have over 400 colleagues learning new skills on Bakery, Meat and Fish apprenticeships and over 100 people over the
age of 60 working towards a job-related qualification – in fact the two oldest trainees are 72 years old. All in all, 60% of our
new recruits are studying for a nationally recognised qualification.
We remain committed to ‘You Can’ and will continue to support opening Sainsbury’s up to a wide range of new recruits and
to help our colleagues develop new skills through our ‘You Can’ programme.
Case study
Sainsbury’s Bakery College

We launched this in March 2010 in
partnership with the flour supplier,
Whitworth, based at their flour mill. We are
confident that the outstanding facilities,
technical skills programme and individual
one to one coaching will halve the time it
takes for our new bakers, bakery
managers and apprentices to complete a
first rate training.
“The scheme was great, I learnt a great

deal and it improved my confidence, as well as my professional reputation
with customers. I can give much better service to my customers, can
answer all their questions, even details about what ingredients go into
products and give advice on what is suitable for various diets or medical
conditions.”
“The bakery college and apprenticeship scheme is a great area to get

involved in; you learn so many different skills and develop the ability to
apply that knowledge.”
Sam Carlos, Bakery Apprentice, London Colney store
Diversity
We firmly believe in the benefits that a diverse workforce can bring; it helps us to understand and adapt to the changing
needs of our customers and offers new and different perspectives on the challenges we may face.
We want to increase the number of female managers leading our stores. The number has grown over the past three years
particularly in our smaller convenience stores where over 30% of the store managers are female. We would like to have
women in 20% of our Store Manager positions across the business by 2011 and as things stand we are well on track.
That said, there is always more we can do to promote women and people from ethnic minority groups to management level
jobs. We have updated the coaching we offer to line managers to include diversity awareness and this is working extremely
well. Another important factor here will be the new ‘You Can’ Careers framework. This gives every colleague the opportunity
to discuss their career aspirations and options and it has given many of them the chance to join a development programme
or sign up to a job-related qualification.
We are also proud to work with our external partners including Employers Forum on Disability and Employers Forum on Age
who share their expertise with us and we then translate this into our policies and coaching for managers. We do not have a
compulsory retirement age, preferring instead to let colleagues decide for themselves when they wish to retire.
Flexibility
It’s the flexible working hours that attract many people to working in retail, especially those caring for young children, relatives
or other dependants. Everyone at Sainsbury’s has the opportunity to request flexible working because we believe a good
work/life balance makes for a more positive and productive workplace. We know that circumstances can sometimes change
literally overnight and if our colleagues need either short-term support or a permanent change in hours, we will work with
them to find a mutually satisfactory and workable solution bearing in mind the needs of our customers and our business.
Engagement and recognition
We have always known that our colleagues are more committed to giving
great service when they’re more engaged. They achieve more when they
understand how their efforts are contributing to a wider goal and when they
are recognised for the contribution they make.
Engagement
Good communication is like a great conversation – it’s about talking to our colleagues openly and simply and it is also about
really listening to them and responding to their feedback and suggestions. It’s sometimes about telling colleagues things that
they may not agree with personally but if a clear rationale is provided they will have a better understanding of the reasons
behind that decision. Each month Justin King, our CEO, writes a letter to every colleague across the business sharing with
them how we are performing and updating them on our future plans. We know that Justin’s letters are well received by our
colleagues. We supplement this with a Monthly Briefing and include a DVD to help bring the key messages to life.
We have a variety of mechanisms to capture feedback across the business. ‘Talkback’ is a key
measure of employee engagement, and we invite every colleague to complete the
questionnaire once a year. We carry this out on a rolling basis so that we have a regular
‘temperature check’ on how colleagues feel which allows us to pick up any emerging issues
throughout the year. We then use the information gathered to create action plans, at a
company and local level. Acting on feedback in this way has helped to move our engagement
index up by 1% over the past 12 months. In 2010/11 we will introduce an updated version of
Talkback based on what our colleagues have told us is really important to them.
‘Tell Justin’ is our colleague suggestion scheme which is still thriving over five years after its
launch. We have just received our landmark 30,000th suggestion. Our colleagues interact with customers every day, which
means they often have the best ideas about how to improve our service to them. Many of their suggestions have already
resulted in some real improvements including, for example, the changes we have made to our ordering systems to make it
quicker and simpler for colleagues to order in store advertising.
Listening to colleagues is becoming a way of life for us and we actively encourage all levels of management to spend time
doing this. Every month our CEO and other operational board members meet with a group of colleagues from across the
business to find out what is currently on their minds and to get feedback on recent company initiatives.
Over the past year we have simplified the structure of our Colleague Councils and adjusted how they work. They provide a
mechanism for two-way communication between managers and colleagues at every site and they act as a consultative body.
The new framework has made it easier for our Council members to focus on what really matters to their colleagues, and share
ideas that will improve their business.
Case study
Sainsbury’s Annual Colleague Conference

We use our annual conference to
communicate a full business update to
colleagues and inspire them about our
future plans. In the past, this was a
manager-only event, which meant we
were missing the chance to really engage
with the people who serve our customers
every day and are our greatest brand
ambassadors. In 2009 colleagues
outnumbered managers at the conference
by two to one. We also know how important it is to feel valued and the
conference is an ideal venue to celebrate success and acknowledge a job
well done. Our annual 'Stars Awards' recognise colleagues from across the
business who have gone the extra mile and throughout the year our
managers can present Shining Star Awards to people on their teams.
Reward
We want people to enjoy working at Sainsbury’s, but that’s only part of the whole package. Our colleagues get competitive
pay and benefits, and the possibility of a good bonus too. 127,000 colleagues shared a bonus of over £80 million in 2010,
bringing the total amount paid out over the past five years to over £290 million. The bonus scheme is based on sales and
profit measures, as well as some of the key factors that drive our business, like great service and product availability for
customers.
We also have a Sharesave share option scheme and a wide range of voluntary benefits through our ‘You Choose’ savings
and discount programme, in addition to the 10% discount all eligible colleagues receive.
Health and wellbeing
We are committed to maximising the health and wellbeing of our colleagues

by promoting and supporting healthy lifestyles. We believe wellbeing is not
simply about the prevention of sickness or injury but the promotion of an
equitable work-life balance. We all want our colleagues to feel supported on
issues they may face both in and outside work.
A healthy workplace is always a more productive one. Health & Safety is a key part of all our training and management
systems, and over 85% of our colleagues believe that Health & Safety is taken seriously here
Health & Safety training and policy

2009/10 was a year of steady improvement in this area. We continued to implement our revised Health & Safety Policy,
which aims to make these issues an integral part of our everyday business activities. We also continued the roll-out of our
two-day ‘Managing Store Health & Safety’ course for store managers and extended our ‘Safety in Sainsbury’s for Senior
Executives’ training. Our general safety training is now equivalent to the Retail level 2 for Health & Safety.
On a day-to-day basis another important programme is our ‘Safe ‘n’ Sound’ programme, which supports our supermarket
managers to promote a safety culture and check that all the necessary training programmes are in place. Progress is
monitored through store audits. Overall, we have reduced our colleague reportable accident rate by 5.5% in 2009/10, which
represents a cumulative fall of 13.5% over the past three years.
Promoting healthy lifestyles for our colleagues

Whether it is our customers or our own people, we believe wellbeing is not simply about preventing illness, but promoting a
balanced and healthy lifestyle. We play a big part in the communities we serve and we are continuing to strengthen our
relationships with the local Primary Care Trusts near our stores. We want our colleagues to know where to go for information
and advice on both work and personal issues. Likewise we encourage our managers to support the people in their teams and
give them the skills training that will help them do this. We will continue to do more of this in 2010/11.
Throughout 2009/2010 we worked actively with our catering providers at each store, office and depots encouraging them to
offer colleagues a number of healthy alternatives in their menus.
Healthier baskets for our We will make the most popular items in our Ongoing – we continue to
customers customers' baskets healthier, focusing on products make the most popular items
that contribute the most saturated fat, salt or sugar in our customers' baskets
to the UK diet, to deliver a real impact on the healthier
nation's health
Being best for British We will source great-tasting British products when in Achieved and Ongoing –
season, wherever these meet our customers' we remain committed to
expectations for quality and authenticity supporting UK farmers and
continue to source British
products, both when in
season and in certain
categories all year round
Being number one We will offer the widest range of higher welfare Achieved – we both offer
supermarket for animal products of any UK retailer the widest range of Freedom
welfare Food higher welfare products
and sell more than any other
UK retailer
Sourcing responsibly and We will be the largest UK retailer of Fairtrade Achieved – we are the
ethically products (by sales value) world's largest retailer of
Fairtrade by value
Reducing energy We will reduce our CO2 emissions per m2 by 25% Ongoing – our commitment
by 2012, against a 2005/06 baseline on refrigeration, Eco-stores
and reset programme are
helping us to progress
towards this target
Reducing packaging We will reduce our own brand packaging weight, Ongoing – making progress
relative to sales, by 33% by 2015 against a 2009 both incrementally through
baseline packaging redesign and
through packaging
innovation like milk bags
Reducing food waste We will have all supermarkets and depots connected Achieved and ongoing –
to a zero food waste to landfill programme by the we now have all of our
end of 2009 supermarkets and depots
connected to a zero food
waste to landfill programme.
In 2010/11, we will further
embed this into the business
by connecting our
convenience stores to the
programme and provide
additional colleague training
on zero waste
Reducing waste We will have all supermarkets and depots connected Ongoing – making progress
to a zero waste to landfill programme for operational by using our back-hauling
waste by the end of 2010 process more efficiently and
ISO14001 at depots. By the
end of 2010, all
supermarkets, convenience
stores and depots will be
connected to our zero waste
to landfill programme
Generating a positive We will provide 6,500 new Sainsbury's jobs in Achieved – over 6,500 new
economic impact on 2009/10 through our planned opening of 28 jobs were created by opening
communities supermarkets and 55 new convenience stores 38 new supermarkets and 51
new convenience stores
We will provide 6,500 new jobs in 2010/11 through New commitment

our planned opening of 17 supermarkets and over
75 new convenience stores
Supporting local We will launch our Local Charity of the Year scheme, Achieved – we have
communities linking every store, Sainsbury's depot and our supported over 750 local
support centres to a local charity partner each year charities through the scheme
this year
We will support community based fundraising and New commitment

colleague volunteering, encouraging our customers
and colleagues to make a positive difference in the
local community
We will offer local groups and charities space in our New commitment
stores to support community activities and events,
helping bring the community together
Supporting the We will provide over 10,000 colleagues with job Achieved and Ongoing –
development of our opportunities, skills and qualifications through our We have exceeded our
colleagues 'You Can' programme by 2010 commitment to provide
10,000 colleagues with job
opportunities, skills and
qualifications through our
‘You Can’ programme by
2010. We remain committed
to ‘You Can’ and will continue
to support opening
Sainsbury's up to a wide
range of new recruits and to
help our colleagues develop
new skills through our ‘You
Can’ programme
We will improve our leadership capability by investing New commitment

in a development programme that will touch every
manager across the business by the end of the
2010/11 financial year
Next steps 2010
Best for Food and Health
Healthier baskets for our customers We will introduce calorie labelling into our cafes across
all foods, so that our customers know how many
calories they are consuming
We will make the most popular items in our customers'
baskets healthier, focusing on products that contribute the
most saturated fat, salt or sugar to the UK diet, to deliver a We will place into all stores (where there is a
real impact on the nation's health pharmacy) nutrition training for our pharmacists so
they can help our customers with dietary advice and
guidance
We will launch an industry leading, on-line dieting

service, which will help customers manage their
weight responsibly, eat healthy food and incorporate
exercise into their daily lifestyle
We will host a live UK stakeholder debate on health

and cooking to raise awareness of the important role
cooking plays in tackling the UK's public health
challenges
We will define the percentage of promotions that are

healthy and given prominence in store
Sourcing with Integrity
Being best for British We will continue the roll-out of the Development
Groups to pork, beef, chicken and lamb suppliers
We will source great tasting British products when in
season, wherever these meet our customers' expectations
for quality and authenticity
Being number one supermarket for animal welfare We want our five biggest-selling fish species to be
MSC-certified or green-rated against our own
We will offer the widest range of higher welfare products of
sustainability standard by the end of 2010
any UK retailer
Sourcing responsibly and ethically Our long-term target is to have all our wood sources
certified by the Forest Stewardship Council (FSC) and
We will be the largest UK retailer of Fairtrade products (by
we aim that 90% of our wood products will be FSC
sales value)
certified by 2012
We aim to be the largest user of FSC-certified cork in

the world by early 2011
We will only use certified sustainable palm oil by the

end of 2014
We will work with informed stakeholders to research

and identify best practice in water usage across our
supply chain
We are looking to expand the number of Fairtrade

products across our ranges, in particular in chocolate
We are aiming to increase the number of supplier

visits we carry out every year, and open more non-
food supply offices in the Far East, which will help us
get closer to our suppliers there
Respect for the environment

We will install five new biomass boilers
Reducing energy
We will reduce our CO2 emissions per square metre by
25% by 2012, against a 2005/06 baseline
Reducing packaging As well as focusing on reducing our packaging, this

year we will also be focusing on depot ready
We will reduce our own brand packaging weight relative to
packaging to remove unnecessary packaging from
sales, by 33% by 2015 against a 2009 baseline
the overall supply chain
We will launch 100s more products where we have We will work with all the stakeholders to make more
reduced the packaging of our packaging recyclable
Reducing food waste We will deliver a new iconic anaerobic digestion

partnership
zero food waste to landfill programme by the end of 2009
We will find a solution to diverting convenience food
waste from landfill
Reducing waste We will find a solution to colleague vending machine

recycling
zero waste to landfill programme for operational waste by
the end of 2010 We will work with Imperial College to develop
innovative 'natural' building materials
We will work with the packaging industry to further

the use of recycled materials in packagin
Making a positive difference to our

community
Generating a positive economic impact on communities We intend to expand our Employer Supported
Policing intitative subject to agreement by launching
We will provide 6,500 new jobs in 2010/11, through our
a pilot in the east of England. This will see Sainsbury's
planned opening of 17 supermarkets and 100 new
colleagues volunteering to be special constables and
convenience stores
being given time to conduct their police duties in
combination work with their Sainsbury's work
Supporting local communities We will host community meetings in our stores to

help bring community groups together and discuss
We will support community based fundraising and
local issues
colleague volunteering, encouraging our customers and
colleagues to make a positive difference in the local
community
We will offer local groups and charities space in our stores We will encourage local community groups to use
to support community activities and events, helping bring our stores as a safe place to meet
the community together
A Great Place to Work
Supporting the development of our colleagues We will offer all colleagues the opportunity to join our
cycle to work scheme over the next year
We will provide over 10,000 colleagues with job
opportunities, skills and qualifications through our 'You Can'
programme by 2010.
We will improve our leadership capability by investing in a We will continue to offer all of our colleagues the
development programme that will touch every manager opportunity to gain an externally recognised
across the business by the end of the 2010/11 financial qualification
year
Progress against our 2009 commitments
Each year we set ourselves stretching targets to drive

positive improvements and change. The following
section gives our progress against the targets we
committed to in our 2009 Corporate Responsibility
Report.
Best for food and health
Key
Target exceeded or met ahead of schedule Target almost or partially met
Target met or on track Target not met
2009 Next Steps Progress
25% of our Tip card recipes will continue to be 50% of our Tip cards feature healthier recipes, with
healthier (i.e. only green or amber traffic lights) only green or amber traffic light ingredients
50% of our Tip card recipes will contain one portion of Over 25% contain at least one portion of 5-a-day
the recommended 5-a-day fruit or vegetables
100% of relevant* new products will display MTL We remain the most extensive adopter of MTLs,
labelling with the labels on over 5,000 of our own brand
products
We will display MTL labels on recipes, including those We display MTL labels on our Tip cards, Fresh Ideas
featured in Tip cards, Sainsbury's Magazine, Fresh Magazine and Try Something New Magazine.
Ideas Magazine, Try Something New Magazine and However, we're yet to roll this out to our
other promotional materials Sainsbury's Magazine and some other promotional
materials
We will print over 60 million recipe Tip cards in the next We have printed 69 million Tip cards over the past
year 12 months
We plan to launch a cooking competition for all our We launched the competition to all colleagues in
colleagues, 'The Big Cook Off' March 2009. 250 colleagues entered the
competition, with our winner, Amberina Mohammed
from our Cameron Toll store in Edinburgh, cooking
her Kofta Curry with a twist. All our finalists' recipes
are now being collated in a special cook book which
will be given to all our colleagues
* Non relevant products are primarily single ingredients, e.g. bags of sugar
Sourcing with integrity
Key
We aim to enhance our relationships through more This is an ongoing target. In 2009, we opened non-
frequent supplier visits. On the non-food side of our food sourcing offices in Hong Kong and Shanghai
business, we will be opening new offices which will be
located closer to our supply base in the Far East
We plan to expand our Development Group model to Progress is ongoing. We have rolled out the model
beef and cheese farmers to beef, cheese and egg suppliers
We plan to extend Farm Connections to chicken We have not extended Farm Connections. Instead,
farmers we have focused on developing the Development
Groups
100% of our own brand tea and roast and ground All of our own brand tea (except speciality tea),
coffee will be Fairtrade by 2010 roast and ground coffee is Fairtrade
Our long-term target is for all our wood products to We have set a long-term target of having all our
come from certified well-managed forests with the wood sources certified by the Forest Stewardship
Forest Stewardship Council (FSC) being our preferred Council (FSC) and aim that 90% of our wood
certifier, although a firm deadline has yet to be products will be FSC certified by 2012
established
Our aim is for the big five fish species, representing We are on track and working hard to meet this
80% of our sales, to be MSC-certified or green-rated target by the end of 2010
against Sainsbury’s sustainability standard by end of
2010
We will complete labelling the use of palm oil on all The use of palm oil is labelled on all fresh, chilled,
ambient and frozen food by summer 2009, meaning all frozen and shelf-stable food
packaging produced after this time will feature the new
labelling
Sainsbury’s will use only certified sustainable palm oil by We have added digestive and rich tea biscuits to
the end of 2014 our list of own brand products made from
Roundtable on Sustainable Palm Oil certified palm
oil. A new tracker has helped us to identify our top
20 users of palm oil and we are working with them
to move to certified supplies
We will work with informed stakeholders to research We continue to work with our suppliers on water
and identify best practice in managing the water management. We are on track to develop a
footprint of our supply chain comprehensive water strategy
We will continue to increase the amount of pesticide Our progress is ongoing. Our Pesticide Policy
residue free produce we offer actively encourages our suppliers to minimise their
use of pesticides
We will continue to develop best practice and further This is ongoing as part of our overall commitment
tools to measure the ‘in the round’ sustainability to sustainability and sourcing with integrity
impacts of our products
Respect for our environment
Key
We will continue to reduce our depot to store Target has been met
transport CO2 emissions (CO2 per case of product) by
15% by 2012 against a 2005/06 baseline
We plan to open a minimum of two green Target has been met

supermarkets every year plus a greener Sainsbury's
Local
Extensions to existing stores will use a range of Over half of our stores have been through the
environmental measures energy 'Reset' programme to introduce a range of
energy-saving initiatives – with almost 5,000
individual initiatives having been completed across
more than half of our stores
We will continue to reduce our water usage measured We are making good progress against this target
as cubic metres per square metre of sales space by
50% by 2012 against a 2005/06 baseline
Making a positive difference to our community
Key
By the end of 2010, we aim to have a further 15 During the past year, we have engaged with a
stores with ‘Safer Neighbourhood’ space, taking the further ten police forces on taking the
total to over 40 stores neighbourhood policing initiative forward. We now
have 33 stores with police bases or offices within
them, provided to police without payment of rent.
In addition, in December 2009 our CEO Justin King,
and the HR Director of the Metropolitan Police
formally opened the UIT’s first police recruit training
facility in our supermarket in Barkingside, east
London. Once again, provided at no rent. This
allows huge savings to be made on police recruit
training while providing the reassuring presence of
police to the colleagues, customers and citizens of
Barkingside
We will increase participation in Active Kids Get Cooking Our Active Kids Get Cooking scheme is the largest
so that even more teachers have access to resources food award scheme available to UK schools, with
and materials to help them teach young people over 13,000 now registered
cookery skills and the importance of healthy eating
A great place to work
Key
25% of our colleagues to have a Nationally Recognised This target was achieved
Qualification by 2013
We aim to have a ‘You Can’ placement in every This target was achieved
supermarket store by 2011
In 2009/10 we plan to introduce two new This has been superseded by bakery, butchery and
apprenticeship schemes for Pharmacy and Beers, fish
Wines and Spirits
We will introduce a new NVQ Level 3 Team Leader This initiative has been suspended
qualification in 2009/10
In 2009/10 we will be conducting a piece of work to We are starting to monitor career progression
better understand the issues holding back colleagues relating to Diversity / Age and Ethnicity. The
from ethnic minorities in their careers and will develop a analysis of which will be used to underpin our
programme of work to ensure we can address these continuing commitment to provide development
issues appropriately opportunities across our business
We will be reviewing our diversity training in 2009/10 Our Managers have attended our coaching
to ensure it remains fit for purpose programme – Respect for the Individual
We aim to increase the percentage of females at Store The number has grown over the last three years
Manager level to 20% by 2011 particularly in our smaller convenience stores where
over 30% of the store managers are female.
Progress against outstanding 2008 commitments
Each year we set ourselves stretching targets to drive

positive improvements and change. The following
section gives our progress against the targets we
committed to in our 2008 Corporate Responsibility
Report.
Key
We will extend our Concept Orchard scheme into UK In April 2009 planting began on our third Concept
Conference pears; first planting to commence Orchard for pears.We are also looking to introduce
November 2008 tasty new varieties, helping to secure the future of
the UK pear industry
By Autumn 2008, we aim to sell only 100% Scottish- Over 85% of the chicken we sell in Scotland is now
reared chicken in Scotland Scottish reared. Currently we are unable to source
corn-fed birds from Scotland, but continue to look
for a supplier
We are committed to working within the UK Progress is on hold until the Government's new
government's target to reduce peat in all growing rules are clearer
media by 2010
Key
By September 2008, 20% of our supermarkets’ online Despite a delay to this programme we expect to
deliveries will be made using electric vans have 70 electric vehicles in our online fleet, which
will deliver approximately 60% of our online orders
within the M25
We aim to improve the amount of insecticide residue In 2008/09 we completed a comprehensive review
free* primary fruit and vegetables by end 2008/09. on orange production and identified the key issues
We will assess the wider sustainability impacts of other relating to crop and supply chain sustainability
fruit and vegetable categories using the Accounting for including insecticide use. In the next phase we will
Sustainability tool and will report our findings in 2009 identify practical implementation strategies with
affected stakeholders
We aim to improve the amount of herbicide residue The application of herbicides has been reduced,
free* primary fruit and vegetables (except salads) by although residue detections continue to be found
end of 2008/09. We aim to improve herbicide residue due to more targeted sampling and improved
free status on salads year on year detection methodology. Several produce areas,
*By pesticide residue free, we mean no residue including citrus orchards, have reduced the use of
detections above the Pesticide Residue Committee herbicides as part of programmes to improve
reporting limits (April 2008). The Pesticide Residue biodiversity
Committee is part of the Pesticide Safety Directorate,
which is a government body
We aim to reduce our use of fungicides in key primary In 2008/09 we completed a comprehensive review
areas by 2012. As part of this we are assessing all on orange production and identified the key issues
options in line with the Accounting for Sustainability relating to crop and supply chain sustainability
tool. We will report on the findings of these including fungicide use. In the next phase we will
assessments in 2009 identify practical implementation strategies with
affected stakeholders
We will update, revise and improve our banned and We have updated our banned and restricted list of
restricted list of pesticides by July 2008 to reduce the pesticides as planned. The document was launched
use of older, less specific, higher impact pesticides behind schedule in March 2009, due to extensive
consultation with research bodies and agrochemical
manufacturers
Removal of parabens from all own brand baby toiletries Progress is being made towards this target.
commencing January 2009 However, due to a change in suppliers, we had to
start the work from scratch with a new supplier.
The rigorous testing of products means that the
new products free of parabens are expected to be
available in stores in October 2009
We will drive down carrier bag usage by 50% by April We achieved a reduction in the number of free
2009, against an April 2008 baseline carrier bags issued in the last year by 35%, as a
comparison of April 2009 versus April 2008, issuing
312 million fewer bags in 2008/09 than in 2007/08
We will replace 150 million trays and bags with We have moved our focus to reducing packaging
compostable packaging on Sainsbury’s ready meals because we encountered significant technical
and organic food by September 2009 difficulties with sealing technologies and the costs of
compostable packaging have remained high
compared with conventional packaging. We are
therefore not currently pursuing this target
We will offer a comprehensive range of home We have launched our range of home composting
composting solutions by Spring 2009 solutions, which consist of six lines and can be
bought online and will continue to review the range
Making a positive difference to our community
Key
We aim to increase participation in Active Kids Get Considerable progress has been made towards
Cooking to 12,500 schools, with over 150,000 reaching this target, with 11,248 schools currently
children participating in the scheme participating in Active Kids Get Cooking
We will install charity donation boxes in all our main Given the rollout of our Local Charity of the Year
stores by end 2008 scheme we are now focusing on promoting a wider
range of ways for supporting local charities, other
than simply cash donations
By end of 2009, we aim to install a further four fully By the end of 2009 we had 31 police bases in our
operational Police Bases in our stores outside the stores, either built, planned or in progress. Fully
London Metropolitan area (in Warwickshire Police, operational facilities will be available in the Hampshire
Merseyside Police, Thames Valley Police and Norfolk Police, Warwickshire Police and Thames Valley Police
Constabulary), plus an additional six operational bases areas. Plans to open six operational bases within the
within the Metropolitan Police area Metropolitan Police area have been put on hold due
to legal constraints, proceeding as soon as these
are resolved. While legal and financial constraints
have meant that further London police stations
have not been built, we are working on a plan to
build a facility at our refurbished Whitechapel Store
Key
Our 'Colleague Engagement Index' has been set at This year we achieved a Colleague Engagement
75%. This year we have made significant changes to Index score of 73% which, while 2% lower than
our Colleague Survey with the aim of raising the bar on targeted, represents substantial progress given the
our own performance. This provides a considerable significant stretch made to the criteria we are now
level of stretch on last year and supports making applying
Sainsbury's a great place to work
We will provide access to a wellbeing toolkit for Target partly met. We prepared a wellbeing toolkit
colleagues in all locations by January 2009 for colleagues in 2008/09 and we are currently
reviewing the best way to launch this
Our awards
Featured awards
We are proud to be We continue to be For the 2nd year Recognition of our

recognised as the included in the running we are supermarket
global industry FTSE4Good Index, Platinum members division's reduction
leader in the Dow in recognition of our of the BITC CR of CO2 year on
Jones Sustainability management of Index for our year.
Index 2009/10. environmental, commitment to
social and ethical responsible retailing.
issues.
Best for food and health

Sainsbury’s sees gold at the Grocer Awards
Sainsbury’s is proud to announce a win of seven gold and three silver gongs at
The Grocer Own-Label Food & Drink Awards 2010. Each product was tested
against competitors for taste, texture, appearance, packaging, value for money
and clarity of labelling. The judging panel included: development and celebrity
chefs, industry experts and consumer magazine editors with retail buying
experience. Read the release to learn more about Sainsbury’s winning products.

IGD Food Industry Award
This Award recognises positive initiatives developed by food or non-food
companies with regard to their impact on environmental sustainability. We
received the Tetra Pak Environmental Sustainability Award in recognition for the
usage of our innovate carbon footprinting tool in our Dairy Development Group.
RSPCA Good Business Awards

These Awards recognise the food industry's best restaurants, pubs,
supermarkets and catering that go the extra mile for animal welfare and help
tackle issues including: standards of animal care on farms; live transport and
slaughter; import of meat and eggs and clearer labelling of produce. We are
proud to have won the award for most improved supermarket for offering the
widest range of Freedom Food labelled products.

Carbon Trust Standard
Organisations are awarded the Carbon Trust Standard for measuring, managing
and genuinely reducing their carbon emissions and committing to reducing them
year on year. We were recognised for our supermarket division's reduction of
CO2 year on year.
Consumer Focus ‘Green to the Core?’

We received an industry leading overall ‘A’ rating by Consumer Focus, scoring
highly on packaging, organics and sustainable fish. This report rated and
identified which supermarkets are doing more to help their customers shop
sustainably.
Environment award for Sainsbury’s Northampton building

Sainsbury’s distribution centre at Pineham, Northampton has won a Green Apple
Award for the Built Environment and Architectural Heritage. The building includes
an on-site recycling unit and the rainwater harvesting system saves 16 million
litres of water a year. The distribution centre was developed by Prologis and the
planning authority was the West Northamptonshire Development Corporation
(WNDC). The 618,000 sq ft building is energy efficient and a carbon neutral
building.

CBI Human Capital Award
The Human Capital Awards celebrate the impact of people and HR-led
programmes on the business performance and profitability of organisations
across the UK. We won the ‘People’s Organisation’ award for our broad-ranging
HR and people-management excellence.
Simon Ross is The Grocer’s Store Manager of the Year

Sainsbury’s is proud to announce that Simon Ross from our Stirling store has
won The Grocer’s Store Manager of the Year 2010 award after one of the
Awards’ fiercest contests. Simon beat off stiff competition from Asda, Morrisons,
Tesco and Waitrose for the award. Simon showed how attention to availability,
staff training, engagement with the local community and an entrepreneurial spirit
could overcome competition from nearby supermarkets.
Sainsbury’s HR team crowned Best HR Team at HR Excellence Awards

2010
We’re excited to announce that our HR team has won top honours at the HR
Excellence Awards 2010. What impressed the judges was the way HR is now
seen as part of the business team, playing a crucial part in the overall
turnaround. Major HR initiatives include simplification of the staff scheduling
process - resulting in a benefit delivery of £8 billion a year; the introduction of HR
shared services in Manchester, which has freed up HR teams to focus on the
value-adding side of their role; online recruitment - producing a saving of over
£1.6 million in costs; and the new Oracle Colleague Administration HR payroll
system.
Organisations we engage with
To understand issues more fully and make better decisions, we talk

regularly with customers, colleagues, NGOs and the Government and its
agencies.
Design and Technology Association Northern Ireland Executive Shaws Trust

European Commission Remploy Welsh Assembly Government
London Employer Accord Scottish Government Woodland Trust
We hold a series of Corporate Responsibility dinners throughout the year to promote dialogue on each of our
Corporate Responsibility principles, inviting key stakeholders for discussions with our CEO, Justin King, as well as CR
Committee Chair, Anna Ford, and relevant executives. This year, attendees included:
Cadbury World Food Standards Agency Produce World

Centre Point GHK RSA
Charity Commission Guardian/Observer SABMiller
Confederation of British Industry HSBC School of Public Health and
Consumer Focus IGD Population Science
DairyCo Imperial College London Smith School of Enterprise and the
Department of Energy and Climate Institution of Mechanical Engineers Environment
Change Kimberly Clark Europe St George's Hospital
Department for Environment, Kings College Sustainability Ltd
Food and Rural Affairs Kings Fund Sustainable Development
Department of Health MRC Commission
Department of Work and Pensions National Farmers Union UK Energy Research Centre
Department of Business, National Trust University College London
Innovation and Skills Nestle Suisse SA University of Twente
Employment and Skills Commission Netmums Which
Environment Agency NHS Work Foundation
Equality and Human Rights Oxford Brookes University WRAP
Commission WWF International
Ethical Trading Initiative

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CONTENTS

Commitments and next steps 51

Commitments and next steps 12

Commitments and next steps 23

Suppliers and the environment 34 Progress against our 2009

Anna Ford introduction

So what have we achieved this year?

Being a great place to work means giving people the chance to get the skills and experience they need to succeed.

Corporate Responsibility & Sainsbury's

For Sainsbury's, corporate responsibility is about providing our customers with

We then mapped these issues according to the level of stakeholder

Commitments & targets

At Sainsbury's we will deliver an ever improving quality shopping experience

About our report

Forum for the Future statement

This report vividly brings Sainsbury's Corporate Responsibility programme to

Members of Sainsbury’s Nutrition Science Advisory Group

Commitments and progress

Commitments and next steps

We will launch an industry leading, online dieting service,

We will host a live UK stakeholder debate on health and

We will define the percentage of promotions that are

We aim to make our products as healthy as possible without compromising on

Making nutritional information clearer

* (Ipsos MORI Customer Insights Report, May 2010)

Making our customers’ baskets healthier

Reducing saturated fat

1. In September 2009 we introduced fat percentage labelling on the

*Based on 12 months, sales of 1% fat milk, assuming all these customers

Allergies and intolerances

Promoting healthier lifestyles

l Running frequent fruit and vegetable promotions on everyday items,

l Promoting 'mix and match' price offers

l Using a special Five-a-day logo to help our customers identify products

Our overriding commitment is to help make it easier and more affordable

*5-a-day purchasing survey by Kantar Worldpanel, April, 2010.

Little Ones launch

British Nutrition Foundation

l Recommended maximum daily intake

l Number of units per bottle

Promotions and product placement

Making Our Customers’ Baskets Healthier

We made a commitment last year to make

Some of our key results include:

l Extensively reformulating some of our most popular dairy products, as

* with some exceptions, please see our 'Additives' section.

Commitments and progress

Commitments and next steps

We aim to be the largest user of FSC-certified cork in the

We will only use certified sustainable palm oil by the end of

We will work with informed stakeholders to research and

We are looking to expand the number of Fairtrade

We are aiming to increase the number of supplier visits we

Ethical trading and working in partnership

Pork, beef, lamb and eggs

Crop Sustainability Groups

Supplier Talkback survey

How likely would you be to recommend Sainsbury’s as a retailer to work with

l Own brand suppliers: 8.0 (up from 7.4 in 2008)

l Branded suppliers: 7.7 (up from 7.4 in 2008)