Social Responsibility at B&Q Annie Johnson Social Responsibility Manager

1. Social Responsibility at B&Q Annie Johnson Social Responsibility Manager

2. 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

3. 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

4. Every product tells a story… Product Impacts

5. Product stewardship • Timber • Peat • Paint • Chemicals

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

7. 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

8. 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

9. 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

10. 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

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

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

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

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

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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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.

23. New POS

24. New POS

25. 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

26. Questions ? annie.johnson@b-and-q.co.uk