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LIVING OUR VALUES Respecting everyone's dignily Acting with integrity 2020 has been a challenging year, but one thing has remained constant our commitment to operating responsibly and ethically at all times. Our purpose is to make millions of people's lives better through the provision of safe, nutritious food and affordable clothing. Being a purpose driven business has helped us to navigate 2020, a year like no other. We achieve our purpose through living and breathing our values every day, in how we responded to COVID-19, particularly the way decisions and how we continue to work for the safe and long-term success of our group Our values are Respecting everyone's dignity We strive to protect the dignity of everyone within and beyond our operations, so that the people who make our products feel safe, respected and included During the latter months of COVID-19, we consulted with employees about their safe return Progressing through Progressing through collaboration We work with others to leverage our global expertise for local good. Through collaboration with our stakeholders, including non- governmental organisations (NGOs), we're working to create safer, fairer working environments and promoting thriving. resilient communities. Regular engagement with our stakeholders is fundamental to the success of the group and this year contributed to many of our businesses being able to respond to unprecedented demand for their products Pursuing with rigour From the products we make to the way we preserve the resources we rely on and support the people we work with, we are always learning and incorporating better practices. Across our businesses, we are partnering with industry experts to help us work towards the highest standards. At the start of the COVID-19 outbreak earlier this year, we established a group level steering committee to respond in a timely manner to the dynamic changes, including reimagining working environments for many of our people. We also proudly witnessed many individuals going above we have trosted people, in our principal business collaboration Pursuing with rigour , rigour always learning and incorporating better practices. Across our businesses, we are partnering with industry experts to help us work towards the highest standards. At the start of the COVID-19 outbreak earlier this year, we established a group level steering committee to respond in a timely manner to the dynamic changes, including reimagining working environments for many of our people. We also proudly witnessed many individuals going abova and beyond expectations to meet the changing demands on their businesses and colleagues. Sale and Toniger SUCCESS rour group. Our values are: Pursuing with Respecting everyone's dignity We strive to protect the dignity of everyone within and beyond our operations, so that the people who make our products feel safe, respected and included During the latter months of COVID-19, we consulted with employees about their safe return to offices and other workplaces, providing a range of assistance including emotional and mental health support Acting with integrity We proudly promote and protect a culture of At the start of the trust, fairness and accountability that puts ethics COVID-19 outbreak first. From farms and factories right through to earlier this year, our boardroom, we are committed to embedding we established integrity into every action a group level This has been demonstrated this year by the steering committee group's leadership team taking salary reductions to respond in a and the Board's decision, following the reopening timely manner to of the majority of Primark's stores, not to take the dynamic advantage of the UK Government's Job changes, including Retention Bonus scheme, reimagining working environments for many of our people. Responsibility Environment The world's resources are under increasing pressure from the growing demands of a rising population and climate change is exacerbating these challenges. These are global challenges that we cannot solve by ourselves, but we are working hard at a group and business level to minimise our environmental impacts through a range of activities designed to reduce greenhouse gas (GHG) emissions, use energy, water and other natural resources more efficiently and promote biodiversity Acting on climate change Increasingly unpredictable and severe weather events are already affecting food security, consumption habits and the availability of natural resources. We are also seeing and experiencing the impact of climate change on our operations and supply chain through prolonged droughts, heatwaves and flooding, leading to the need to adapt our operations and consider the medium-to long-term strategic impact on our businesses. We use the Task Force on Climate-related Financial Disclosure's (TCFD) recommendations to inform our approach on climate action and related disclosures. RESPECTING THE ENVIRONMENT Climate change is integrated into our group risk assessments. The Board is accountable for effective risk management and therefore has accountability for the management of climate related risks. As part of our strategic review of climate change, we commissioned the UK's Met Office to model the potential impact of a 2C to 4C temperature rise on our operations and major supply chains. This will help inform our plans for addressing climate risks. Our ambition to reduce our overall environmental footprint therefore includes business-led commitments to reduce GHG emissions, recognising the Paris Climate Agreement which aims to limit global temperature rises well below 2C above pre-industrial levels by the end of the century. Working collaboratively with others in our sectors, industry bodies and suppliers, our businesses are investing in ways to withstand the challenges of the changing climate while taking advantage of new opportunities including product innovation and increased efficiencies We are committed to seeking sustainable solutions to environmental challenges and adapting our operations to respond to changes in the natural environment. 1,600 PRIMARK FEWER JOURNEYS La PRIMARK Primark is extending its UK fleet with 15 new Longer Semi Trailers (LSTs), which will each carry twice the stock as existing trailers. It is estimated that this will result in 1,600 fewer joumeys every year. Our businesses have a role to play in the We publish further detail on our In 2020, our total energy use was transition to a low carbon economy by climate-related governance and risk 22,877 GWh A, a 3% decrease on 2019. increasing the efficiency of our buildings, management through CDP's report at Our sugar businesses consumed 82% operations, logistics and agricultural www.cdp.net. of the group's total, or 18,883 GWh A. activities, by using renewable energy where feasible and by investing in new Our total emissions (Scopes 1, 2 and 3) in 2020, we exported 1,002 GWh A technologies have reduced again this year. For 2020, of energy, which is a 3% increase we report a 9% reduction compared compared with last year. Some of our Our energy-intensive businesses, and with last year to 4.32 million tonnes sites generate energy on-site using those reliant on secure crop supplies, CO, A. Some of this reduction can be renewable sources of fuel and when this have initiatives to manage their impacts attributed to reduced operations during is surplus to their needs, they export it to and adapt to changes and have thus set the COVID-19 pandemic but we also the national grid or other organisations. goals to reduce their emissions. For recognise that our businesses example: continuously seek to reduce their For over ten years we have reported our group and, more recently, business Primark is extending its UK fleet with emissions. This is demonstrated by 15 new longer Semi Trailers ( STs) the downward trend in our emissions division energy use and greenhouse gas emissions in compliance with UK Our businesses have a role to play in the We publish further detail on our In 2020, our total energy use was transition to a low carbon economy by climate-related governance and risk 22,877 GWh 4, a 3% decrease on 2019. increasing the efficiency of our buildings, management through CDP's report at Our sugar businesses consumed 82% operations, logistics and agricultural www.cdp.net. of the group's total, or 18,883 GWh A. activities, by using renewable energy where feasible and by investing in new Our total emissions (Scopes 1, 2 and 3) In 2020, we exported 1,002 GWh A have reduced again this year. For 2020, technologies. of energy, which is a 3% increase we report a 9% reduction compared compared with last year. Some of our Our energy-intensive businesses, and with last year to 4.32 million tonnes sites generate energy on-site using those reliant on secure crop supplies, CO, A. Some of this reduction can be renewable sources of fuel and when this have initiatives to manage their impacts attributed to reduced operations during is surplus to their needs, they export it to and adapt to changes and have thus set the COVID-19 pandemic but we also the national grid or other organisations goals to reduce their emissions. For recognise that our businesses example: continuously seek to reduce their For over ten years we have reported Primark is extending its UK fleet with emissions. This is demonstrated by our group and, more recently, business 15 new Longer Semi Trailers (LSTs), the downward trend in our emissions division energy use and greenhouse since 2017 gas emissions. In compliance with UK which will each carry twice the stock reporting requirements, we provide on as existing trailers. It is estimated that We also report our emissions classified page 82 our UK energy and greenhouse this will result in 1,600 fewer journeys as 'out of scope', which are CO, emissions data. The principal energy every year, 728,000 fewer kilometres emissions resulting from the use of efficiency measures to reduce our travelled and the elimination of 680 renewable fuels. As these are carbon emissions include the introduction CO e tonnes from Primark's UK considered to be net zero or carbon of energy monitoring systems, transport operations: neutral, they are reported separately. conversions to LED lighting and AB Sugar has made a commitment to reduce its end-to-end supply chain Reducing our energy use upgrades to production machinery such carbon footprint by 30% by 2030; and source of GHG emissions, all our as compressors and boilers to improve As energy generation is our primary efficiencies. For more examples of AB Agri is investing in environmental life cycle assessment to support businesses are working hard to improve Responsibility Update on pages 43-46 energy efficiency actions, see our 2020 energy efficiency on a continuous basis, and more granular performance data better choices on both sourcing of feed ingredients and for livestock as well as via investment projects. diet design In addition, the price volatility of the included in our ESG Appendix. energy we purchase means that For more information on our approach to rigorous energy management is a key managing climate risk and our alignment operational focus. to the TCFD disclosure recommendation, see our climate change section in our 2020 Reenanshii | locate Responsibility Environment continued Our greenhouse gas emissions Managing waste We look for positive ways to use the 2020 emissions 2019 emissions 1000 tCo,e) (000 CO,) waste we create, through reuse and Scope 1 - combustion of fuel and operation recycling or by creating by-products such of facilities 2,719 3,087 as energy, soil or animal feed. Ultimately, we are seeking to work towards helping Scope 1 - generation and use of renewables 78 75 to progress towards a circular economy. Scope 1 Total 2,797 A 3,162 Scope 2-emissions from purchased energy This year we generated 585,000 tonnes (location method 758 A 831 A which is a 7% decrease compared Scope 2-emissions from purchased energy with last year. Of the total generated, Reporting for the (market method 84% was recycled, recovered or had a 783 first year in 2020 beneficial use. Through the continuous Scope 3 - indirect emissions from use of third- party transport improvement on waste segregation, 753 764 working with local suppliers to manage Total emissions (Scopes 1, 2 location method increasing quantities of waste which can and 3) 4,319 A 4,746 be recycled and reducing the inputs to Out of scope emissions 4,045 3,962 create waste in the first place, we are 256 tonnes per 252 tonnes per demonstrating strong performance in Emission intensity (Scopes 1 and 2) 1m of revenue im of revenue waste management. We report our GHG inventory using the WRI/WBCSD GHG Protocol Corporate Accounting and Reporting Packaging and plastics Standard Revised Edition as our framework for calculations and disclosure. We use carbon conversion Packaging is essential for containing factors published by the UK's Department for Business, Energy and Industrial Strategy (BEIS) in July 2020, other internationally recognised sources, and bespoke factors based on laboratory calculations at selected and protecting our products during locations. This includes all activities where we have operational control. Scope 2 market-based emissions transit and on the shelf and we remain have been calculated in accordance with the GHG Protocol Scope 2 Guidance on procured renewable committed to initiatives that improve energy. For 2019 and 2020, Scope 3 emissions are our third-party transport emissions only. recyclability and recycling rates, reduce volume and weight and avoid waste. In Streamlined energy and carbon reporting 2020, Associated British Foods used 2020 A 2019 245,000 tonnes of packaging. This is Energy consumed (GWH) UK operations a 5% decrease compared with last year. 5,292 5,826 Outside UK operations 17585 17 740 Opportunities to use innovative, Outside UK operations 17,585 17,740 Scope 1 and 2 emissions (000 tCO,el UK operations 1,299 1,532 Outside UK operations 2,256 2,461 To calculate our energy in Gwn, we divide the total KWh by a million 2. We report our scope 2 location method emissions for 2019 and 2020 We report our energy consumed and associated GHG emissions from electricity and fuel, Scopes 1 and 2 location method using WRI/WBCSD GHG Protocol Corporate Accounting and Reporting Standard Revised Edition as our framework for calculations. See our ESG Appendix pages 21-22 for more detail We also continuously explore how we Water management can better use renewable energy. Of the Our businesses invest in initiatives to total energy we used this year, 55% or reduce water abstraction per tonne of 12,462 GWh A, came from renewable product and increase their ability to sources. This equates to a 2% increase reuse water for cleaning or cooling in the amount of renewable energy oquipment or for irrigation before gonoratod and used on sito compared roturning it to the orwironment. By with last year. Most of this energy (92%) reusing water, we reduce the amount came from bagasse - the residual fibre which is abstracted in the first place. In left after sugar is extracted from sugar 2020, we abstracted 847 million mA cane - from our operations in Africa, of water which is a 4% decrease We also use on-site anaerobic digesters compared with last year. Of the total (AD) to generate biogas from waste water abstracted, 25% was reused streams, such as British Sugar's AD within our operations before finally plant in Suffolk and AB Agri's facility in returning it to the watercourse. Yorkshire. This year biogas accounted for 2% of the total renewable fuels This year we are also reporting the generated and used on our sites. amount of waste water from our operations; 115 million m of waste water was treated and then returned to the watercourse opportunes o use mauve, bio-based materials are limited, not least due to the strict regulations governing the materials that can be used in contact with food. However, we continue to explore potential new packaging solutions. We believe that all stakeholders need to work together to create the recycling infrastructure needed for a truly circular economy for plastics and welcome initiatives which encourage this development. In line with The UK Plastics Pact, signed in 2018, our UK Grocery businesses have committed to eliminate problematic and unnecessary single-use plastic packaging such as PVC and polystyrene, have 100% recyclable, reusable or compostable plastic packaging, and achieve 30% average recycled content in their packaging. Furthermore, Primark has removed 175 million units of plastic from its business, including single-use labels and hangers Based on the extract of the annual report 2020 of Associated British Food Ple, you are required to analyses the extent of contribution given for the ABF Plc for Corporate Social Responsibility and sustainability. You are required to make use of information and explain in detail. (10 marks) Total-25 marks