Kingfisher : Performance data appendix - PDF

Performance data appendix

2020/21

1	Kingfisher Performance data appendix 2020/21	Introduction	Our business and SDGs	UN Global Compact index	TCFD	SASB	Detailed performance data	Assurance

At Kingfisher, we are committed to doing everything we can to make a positive impact for society so that all our homes - including our communities, our forests and our planet - can flourish.

About this appendix

Our Responsible Business Report performance data appendix provides a detailed insight into our environmental, social and governance (ESG) performance.

It supplements our Responsible Business Report 2020/21, providing further data and a summary of progress against our targets.

Our Appendix also includes details of how our reporting aligns with external frameworks such as the United Nations Global Compact, the United Nations Sustainable Development Goals and the Sustainability Accounting Standards Board (SASB).

You can read our Responsible Business Report at www.kingfisher.com/responsible-business

About Kingfisher

Kingfisher plc is an international home improvement company with over 1,380 stores in eight countries across Europe. We employ 80,000 people.

At Kingfisher, our purpose is to make better homes accessible for everyone.

1. Introduction
2. Our Responsible Business strategy
3. About our data
4. How we performed in 2020/21

1. Governance
2. Our business and the UN Sustainable Development Goals

13 United Nations Global Compact index

1. Task Force on Climate-related Financial Disclosures (TCFD)
2. Sustainability Accounting Standards Board index

1. Detailed performance data
2. Colleagues: We will be a more inclusive company

21 Planet: We will be Forest Positive

23 Planet: We will help tackle climate change

28 Customers: We will help make greener, healthier homes affordable

1. Communities: We will fight to fix bad housing

1. Fundamentals: Employee safety
2. Fundamentals: Responsible sourcing

1. Fundamentals: Waste and recycling

37 Assurance statement

2	Kingfisher Performance data appendix 2020/21	Introduction	Our business and SDGs	UN Global Compact index	TCFD	SASB	Detailed performance data	Assurance

Our Responsible Business strategy

Responsible Business priorities

We are committed to leading our industry in Responsible Business practices, seeking to maximise our positive impact on the lives of our customers, colleagues, communities and the planet. Responsible Business is a key priority in our 'Powered by Kingfisher' strategy.

We focus on four priorities where we can best use our experience, scale and influence to bring about positive change in our business, communities, supply chain and beyond:

• Colleagues: becoming a more inclusive company.
• Planet: helping to tackle climate change and create more forests than we use.
• Customers: helping to make greener, healthier homes affordable.
• Communities: fighting to fix bad housing.

Our priorities have been informed by research with our customers, our materiality assessment and external frameworks such as the UN Sustainable Development Goals. They reflect our most significant impacts and the areas where we have the opportunity to make a significant positive difference.

We have set ambitious targets for each priority and established key performance indicators to help drive progress.

Our priorities are underpinned by our commitment to our Responsible Business Fundamentals - the many issues and impacts we need to measure and manage to ensure we continue to operate responsibly across our business. We have clear policies in each of these areas, from health and safety to responsible sourcing, cyber security and data protection, and ethical conduct, to ensure we take a consistent best practice approach across our banners.

Colleagues	Planet
We will be a more	We will be Forest
inclusive company	Positive and help
	tackle climate change

Customers	Communities
We will help make	We will fight to fix
greener, healthier	bad housing
homes affordable

3	Kingfisher Performance data appendix 2020/21	Introduction	Our business and SDGs	UN Global Compact index	TCFD	SASB	Detailed performance data	Assurance

About our data

Our Responsible Business data covers the period 1 February 2020-31 January 2021. It provides a summary of performance for all our wholly-owned retail banners.

Sustainability experts Bioregional coordinate our head office data review process. They monitor our progress on Sustainable Home Product innovation and calculate our customer energy savings figures.

Detailed information on the scope of the data and the methodologies used to calculate our data are explained in our Responsible Business data collection methodology document.

Our Responsible Business data does not include joint ventures, except where stated. Data for our joint venture Koçtaş is included in our scope 3 greenhouse gas (GHG) emissions, category 15 'Investments' (see page 25). 50% of Koçtaş data is included, in line with our 50% equity share.

Our targets and methodologies have been developed with Bioregional. Wherever possible they reflect established frameworks such as the UN Sustainable Development Goals. Details of how our targets have been developed and our methodology for assessing progress are included in our data collection methodology.

Changes to our targets are summarised on page 6.

Audit and assurance

Our Responsible Business performance data and the qualitative statements included in our Annual Report and Responsible Business reporting are reviewed by our internal Responsible Business teams, and by Bioregional.

We appointed DNV to provide a limited assurance opinion on selected information within this report. Further details on the work they performed and their conclusion are set out in their independent assurance statement on page 37. The information marked throughout the report with the symbol ◊ indicates the scope of their work.

Reporting frameworks

We are members of the United Nations Global Compact and include an index on pages 13 and 14. We aim to support progress on the UN Sustainable Development Goals and include an index on pages 9 to 12 indicating where we can have the most impact.

We align with a number of external disclosure initiatives including CDP, the Workforce Disclosure Initiative (WDI), the Global Reporting Initiative (GRI), and Task Force on Climate- Related Financial Disclosure (TCFD).

From this year, we are further aligning our reporting with the Sustainability Accounting Standards Board (SASB) standards for Multiline and Speciality Retailers and Distributors. We now publish a SASB Index with our Responsible Business Report showing where relevant data and disclosures can be found.

Our Report references selected Global Reporting Initiative (GRI) Standards. We provide a GRI Index on our website: www.kingfisher.com/ griindex

4	Kingfisher Performance data appendix 2020/21	Introduction	Our business and SDGs	UN Global Compact index	TCFD	SASB	Detailed performance data	Assurance

How we performed in 2020/21

We improved or maintained performance across the majority of our target areas in 2020/21. However, we did not achieve some of our targets with a deadline of January 2021. We are reviewing our approach in these areas and in some cases will be publishing new targets.

Colleagues

A more inclusive company

We developed a Group-wide Inclusion and Diversity strategy and action plan, and an inclusion and diversity plan for each banner specific to its market and demographic. These will help us accelerate progress on inclusion across our business. Gender balance improved at Board level from 38% to 44% with a slight improvement in all managers from 35% to 36%. We have set a new target to improve this and it is one of the criteria included in our colleague bonus programme.

Skills for life is our approach to delivering learning and development for colleagues. Colleagues completed 3.27 million hours of training during 2020/21, which means we are on track to reach five million hours by 2025. We are tracking well against this target as there was an increase in digital learning during the year due in part to Covid-19. From 2021, we will increase focus on youth employability and social mobility.

Planet

Helping to tackle climate change

Our original carbon targets were approved by the Science Based Targets initiative in 2019 and we met our operational target ahead

of schedule. We have reduced our absolute scope 1 and 2 (market-based) greenhouse gas emissions by 27% compared with the baseline year of FY 16/17 and against our target of 22% by 2025. This is a large movement from the previous year (FY 19/20: 18%), driven by the temporary closure of stores due to Covid

as well as strong underlying improvements (including 48% of purchased electricity from renewable sources and energy efficiency improvements in our stores).

We have therefore reviewed our plans and agreed new appropriate capital investment to now commit to a more ambitious reduction target. This has been approved by the Science Based Targets initiative confirming that it aligns with a 1.5°C trajectory.

We have reduced scope 3 carbon intensity by 18% compared with 2017/18 against our target of a 40% reduction per £million turnover by 2025. This is due to efficiency improvements in products such as our lighting range and kitchen appliances, reducing their lifetime carbon emissions, and a decrease in sales of high energy using products, such as gas boilers and water heaters. We are not yet able to report progress on the supply chain element of our target.

Towards peat-free gardening

We launched our new GoodHome high-quality 100% peat-free compost in B&Q and Castorama France in early 2020. We expected to start phasing out our peat-containing bagged growing media products during the year. However, progress was slowed by the pandemic which significantly increased demand for compost while disrupting key supply chains. This meant we continued to sell our previous ranges for longer.

Completely peat-free compost now comprises over a quarter of all compost sold in the

UK, Ireland, France and Poland (by volume). Non-peat ingredients accounted for 52% of all bagged growing media ranges in 2020/21 (2019/20: 41%). We expect to see a significant improvement in 2021/22 in the peat-free content of our own exclusive brand composts, with the exception of ericaceous compost, as we introduce new peat-free combinations whilst selling through existing own exclusive brand peat-containing composts.

In 2023 B&Q, the banner selling by far the largest volume of growing media (77% of total volume sold by all banners), will become 100% peat-free across its bagged growing media range.