Social Responsibility at B&Q Annie Johnson Social Responsibility Manager

Where did it all begin?  In 1991 a journalist called our then Marketing Director, Bill Whiting, where our tropical timber came from –We didn’t know the answer –The journalist said if we didn’t know e didn’t care –B&Q does care

Our Approach  Environment –Greener suppliers –Critical product areas  Ethical –Operational standards for factories  Diversity –Respecting our customers and staff  Community –Being a better neighbour in the communities around our stores

Every product tells a story… Product Impacts

Product stewardship  Timber  Peat  Paint  Chemicals

 Safety of ‘every-day’ chemicals questioned  NGO activity and media coverage  Emotion and science  Lack of information Why Chemicals?

Timber  Over the last 14 years B&Q’s approach to responsible purchasing of timber as evolved  B&Q commissioned an independent review of timer certification schemes in 2004 –This showed that FSC was the best scheme for B&Q to ensure that our timber based products are from well managed sources

Timber  Approx 76% of wood based products sold by B&Q are FSC certified  We are working with a number of our suppliers to increase this percentage  We have previously accepted products certified under the Finnish Forest Certification Scheme –We are working with suppliers of Finnish timber over the next 3-5 years to ensure their products meet our standards

Timber We also accept the following  Products sourced from forests who have an MOU with the Tropical Forest Trust –B&Q have a strategic partnership with TFT TFT work with suppliers of products containing tropical timber in gaining FSC certification  Products certified under the Indonesian scheme LEI

Timber – the benefits  Our research has shown that customers are reassured by seeing a label on product which states the wood is independently certified as from a well managed source  We came top in the Greenpeace league table for responsible garden furniture this year  Positive coverage in national newspapers  Improving customer trust  Ensuring the timber we need in 2010, 2030 and beyond will be there

 Safety of ‘every-day’ chemicals questioned  NGO activity and media coverage  Emotion and science  Lack of information Why Chemicals?

 Costs of no action  Customer trust at risk  Supply chain visibility  Product & brand integrity Business case

 ‘DIY Detox’ strategy  Understand and manage chemicals issues  Based in science but includes ‘whole’ issues  Integrated into supplier performance assessment  Audit of products What is B&Q doing?

 List 1 - For suppliers - ‘Do not use’  List 2 - For suppliers - ‘Use with Caution’  For customers - ‘Guidance only’ B&Q Lists

Scope  Stakeholder concerned  Chemicals targeted for phase-out  Hazardous chemicals  Sensitizers and allergens  Endocrine disruptors.  PBT’s and VPVB’s Scope

Paint  Contributes to atmospheric pollution  Health Issues associated with paint  B&Q Paint Labelling Scheme showing the levels of VOCs (Volatile Organic Compounds) contained in paint offers our customers an informed choice  Range of water-based alternatives  Disposal Advice

Peat  Peat extraction can destroy habitats endangering species native to peat bogs  B&Q do not buy peat from SSSI’s (Sites of Special Scientific Interest) or International equivalent  Labelling strategy to ensure customers make an informed choice.  We offer a range of Organic ‘Peat Free’ alternatives  B&Q’s dilution strategy

QUEST for Suppliers  QUEST - Quality, Ethics and Safety  Environmental & Social Management Programme introduced 1995  All suppliers assessed on 10 quality and environment principals  Through B&Q’s QUEST Programme all B&Q suppliers have to have an environmental policy and action plan in place to address impacts including waste management and packaging

B&Q’s Packaging Standards  Eliminate excessive and unnecessary packaging  Display packaging must be totally recyclable preferably made of one material, or two totally separable materials and SPI Code  A high proportion of post consumer recycled waste must be used  All glues and inks must be solvent free and contain no heavy metals  Transit packaging must be designed to be easily recycled by our stores

QUEST for Stores  Environmental and Social Management Programme.  Incorporates issues such as waste management, energy efficiency, community interaction,  Stores are striving to be ‘better neighbours’ in the communities in which they operate and understand the needs of those communities.  Reflecting the local community.  Stores are being externally assessed on these issues through over a 3 year period – started July 2003

Our wagons no longer return empty  Timber, plastics, metal and cardboard backhauled to one of ten regional consolidation centres across the country  In 2003 B&Q recycled: –Wood 18,000 tons –Cardboard 14,000 tons –Plastic 1,500 tons –MDF and Chip 1,000 tons –Metal 1,000 tons.

New POS

Community Schemes  Better Neighbour Grant –Offers up to £500 of materials to local projects –Over 2,000 grants awarded to-date  Waste Donation –Waste materials and unsaleable goods  Yearly ‘You can Do It’ awards –£500,000 awarded to over 100 projects  Match It –B&Q match amount raised by staff to max of £500

Questions ?