The Way We Do Business - loblaw-reports.ca · Loblaw Companies Limited 2012 Corporate Social Responsibility Report The Way We Do Business 2012 Corporate SoCiaL reSponSibiLity report

Loblaw Companies Limited 2012 Corporate Social Responsibility Report

The Way We Do Business2012 Corporate SoCiaL reSponSibiLity report

We are proud of our progress and of our colleagues who carry out our corporate social responsibility commitments every day, in communities across Canada. Our 2012 report outlines this year’s strategies, achievements and challenges.

Loblaw Companies Limited 2012 Corporate Social Responsibility Report page 2

At Loblaw, our approach to corporate social responsibility helps form the roots of our Company and is the basis of what we call “The Way We Do Business”. And the way we do business is all about the products, services and experiences that we hope deliver on our Company’s purpose: Live Life Well.

• Truetoour“CanadianFirst”strategy,wesourcefreshproductsclose to home and promote specialty items from across the country.

• Aspartofourworld-leadingcommitmenttosustainablysourcedseafood, we are the first Canadian food retailer to introduce responsibly sourced seafood in all of our stores.

• Wearecommittedtoeliminatingartificialflavoursandartificialcolours from our President’s Choice brand products by the end of 2013.

• Weareengagingwithindustryexpertsandactivistsonthebestsolutionstoanimalwelfarechallengessuchassowstallsandimprovedhousingenvironmentsforlayinghens.

• Withthesupportofourcolleaguesandcustomers,wehavereducedthenumberofplasticshoppingbagsfromourstoresbymore than five billion since 2007.

• Since1989,President’s ChoiceChildren’sCharityhasgrantedmorethan$86milliontochildrenwhoarechallengedbyphysicalanddevelopmentaldisabilitiesandtonutritionprogramsthataimtofightchildhoodhunger.

Loblaw and my family take our role in corporate social responsibility veryseriously.Whilewehavenotsolvedallofourchallenges, andthereremainsplentytodo,Iampleasedwiththeprogress we have made.

Iinviteyoutoreviewthefull2012CorporateSocialResponsibilityReportandhopeyouagreewithmethatwearemakingprogresstoward our Company purpose: Live Life Well.

Thank you.

Galen G. Weston

Executive Chairman

Chairman’sMessage


AsCanada’slargestfoodretailerandaleadingproviderofdrugstore,generalmerchandiseandfinancialproductsandservices,LoblawCompaniesLimitedmakessignificantcontributionstoourcountry’ssocialandeconomicwell-being:

• Loblawanditsfranchiseesoperatemorethan1,000corporateand franchised stores from coast to coast. In 2012, we opened 18newstoresandcompleted181majorstorerenovations.

• Morethan14millioncustomersshopwithuseveryweek.

• WeareoneofthelargestpurchasersofCanadiangoods and services.

• Together,ourcorporateandfranchisedstoresemployapproximately134,000full-timeandpart-timecolleaguesandemployees,makingusoneofthelargestprivate-sectoremployersin the country.

• Togetherwithourcolleagues,customers,vendors,franchiseesandtheiremployees,donatedmorethan$45milliontocharitiesandnon-profitorganizationsin2012.

Our corporate mission is to be Canada’s best food, health and home retailerbyexceedingcustomerexpectationsthroughinnovativeproductsatgreatprices.Corporatesocialresponsibility(CSR)supports our mission and is critical to our overall business success. Thewayweseeit,bymakingpositivecontributionsinourcommunityandbyminimizingnegativeimpactsonourenvironment,webecomethe preferred choice of our customers and the preferred partner ofourvendors.Thisinturndrivesstrongbusinessperformance,providesthemeanstogivebacktosocietyandpavesthewayforfuturegenerations.

FiveprinciplesunderpinourCSRstrategy:• RespecttheEnvironment

• SourcewithIntegrity

• MakeaPositiveDifferenceinOurCommunity

• ReflectOurNation’sDiversity

• BeaGreatPlacetoWork

CSRatLoblaw


This2012ReportdetailsthecorporatesocialresponsibilityperformanceofLoblawCompaniesLimited(Loblaw)corporatestores, distribution centres and store support centres for the yearendingDecember31,2012.Wherefranchiseeorthird-partyinformation has been included, it is indicated as such.

ThisisthesixthyearinwhichwehavepublishedaCSRReport.The last report was published in May 2012. There have been nosignificantchangesinthescopeofourreportingorthedatameasurement methods applied since that report.

StakeholderEngagementOngoingengagementwithourkeystakeholders(namely,customers,colleagues,government,non-governmentalorganizations(NGOs),vendors,investorsandpartners)deepensourrelationshipsandisvitaltoourbusiness.Ourengagementtakesplaceinformalandinformalwaysincludingcustomersurveysandstakeholderinterviews.FeedbackfromourstakeholdershelpsguidethecontentofourCSRReportandhelpsproducequantifiable,actionabledataonstakeholderperceptionsofourCompanyandourCSRprioritiesand efforts.

TheCSRReportisalsoguidedbytheGlobalReportingInitiative’s(GRI)G3SustainabilityGuidelines.AlthoughwehavenotincludedaratingagainsttheGRI,theguidelinesareusedasabenchmarkinthe selection of performance indicators and reported content.

ReportAssuranceAllCSRplansandstatedgoals,targets,objectivesandresultswerereviewed by select members of Loblaw’s Disclosure Committee and Legaldepartment.OurInternalAuditServicesdepartmentappliedarisk-basedapproachtoauditingselectstatedtargetsandresultsincludedintheCSRReport.

ExternalStakeholderReviewPriortopublication,BusinessforSocialResponsibility(BSR)reviewedour2012CSRReportagainstgenerallyacceptedprinciplesfordefiningreportcontentandquality.BSRisaglobalnetworkofnearly300companies,workingtobuildajustandsustainableworldthroughtheadoptionofsustainablebusinessstrategiesandsolutions.

“ Loblaw has made strong strides in its environmental performance – reducing energy consumption, diverting waste and further developing its leading sustainable seafood sourcing program. the report provides a close look at Loblaw’s efforts to engage with and improve local communities around its operations both through social investment and a focus on youth issues. We look forward to reading in future reports how Loblaw prioritizes its most material sustainability issues and examples of how its strong relationships with external stakeholders have contributed to the evolution of the Company’s sustainability journey.”

AboutThisReport


Governance

TheLoblawCorporateSocialResponsibility(CSR)CommitteeisresponsibleforchampioningCSRacrosstheCompany.TheCommitteeismadeupofcolleagueswhorepresentvariousareas ofourbusinessandbringuniqueexpertise.

Withinputfromcustomersandcolleagues,CSRCommitteemembersdevelop the priorities, metrics and accountabilities for the Company’s fiveCSRprinciples.Loblawmanagement,colleaguesandtheCSRCommitteeworktogethertodevelopandachievemeasureablegoals.

TheCSRCommitteeischairedbytheSeniorVicePresidentofCorporate Affairs and Communication, who reports directly to the LoblawExecutiveChairmanandtothePresident.

StrategicGovernanceatLoblawTheBoardofDirectorsandmanagementofLoblawarecommittedtosoundcorporategovernancepractices.TheybelievethesepracticescontributetotheeffectivemanagementoftheCompanyanditsachievementofstrategicandoperationalobjectiveswhichcontinually evolve to effectively serve our stakeholders and the communities in which we do business.

CSRCommitteeMembers

bob Chant

ChairofCSRCommitteeandSeniorVicePresident,Corporate Affairs and Communication

Melanie agopian SeniorDirector, Sustainability,LoblawBrands

eric biddiscombe

SeniorDirector,FieldtoFork,ProduceProcurement

Jocyanne bourdeau ExecutiveVicePresident, Maxi, Maxi & Cie

alain brandon Director, Government RelationsandCorporate SocialResponsibility

rosanna D’alessandro Specialist,Corporate SocialResponsibility

Mario Fatica VicePresident, Planning,Development and Approvals, Ontario

Sonya Fiorini SeniorDirector,Corporate SocialResponsibility

ian Gordon SeniorVicePresident, Loblaw Brands

Walter Kraus SeniorDirector, Environmental Affairs, WestonFoods(Canada)Inc.

Mike Liewen SeniorVicePresident,FoodSafetyandQualityAssurance

Susan Lloyd SeniorDirector,Talent

Michael Lovsin SeniorVicePresident, Health and Wellness

philip Mcneill SeniorVicePresident,Conventional Operations

Marie-Hélène Michaud Director, Environmental Affairs

Mark Schembri VicePresident, StoreMaintenance

nicole St-Louis VicePresident,Legal Counsel,LoblawPropertiesLimited; Ontario and NationalCompliance

paul Uys VicePresident, SustainableSeafood

rob Wiebe SeniorVicePresident, SupplyChain


RespecttheEnvironment• Reducedthenumberofplasticshoppingbagsfromourstoresby

more than five billion since 2007

• Diverted81%ofwastefromourdistributioncentres

• Divertedapproximately1,135,000poundsofplasticplantpotsandflatsfromlandfill,foratotalof5,235,000poundsdivertedsince2008

• Todate,convertedmorethan72,000lightfixturesinourcorporatestores,resultinginenergysavingssufficienttopower9,923homes for a year

• Installedafleettrackingsysteminallcorporatetruckstohelpreduce our carbon footprint

SourcewithIntegrity• Wenowoffer108MarineStewardshipCouncil(MSC)certified

products in our stores – more than any other Canadian food retailer

• Sourced100%offreshporkfromCanada

• Sourced31%oftheproducesoldinourstoresyear-roundfromCanadiangrowers

• Sourced100%ofnon-tropicaloutdoorGardenCentreplantsandChristmastreesfromCanadiangrowers

MakeaPositiveDifferenceinOurCommunity• Togetherwithourcustomers,colleagues,vendors,franchiseesandtheiremployees,donatedmorethan$45milliontocharitiesandnon-profitorganizationsacrossCanada

• President’s ChoiceChildren’sCharityhasgrantedmorethan$86milliontomorethan15,000familiesand13,000nutritionprogramsacrossCanadasinceitsinceptionin1989

• Reduced117.6metrictonnesofsodiumin428controlbrandprocessed products since 2010

• Wenowoffer319PC Organicsproductsinourstores–thelargestorganicslineinCanada

• RolledoutGuidingStarsnutritionratingsysteminLoblaws banner stores in Ontario – first Canadian retailer to introduce this ratingsystem

• Added22dietitiansin50corporatestores

ReflectOurNation’sDiversity• 45%ofmanagementpositionsareheldbywomen

• FiveLoblawexecutivesreceivedWomenofInfluenceDistinction

• NamedoneofCanada’sBestEmployersforNewCanadiansandone of Canada’s Best Diversity Employers

• Wenowoffer101T&T brand products

• LaunchedSufra, our new control brand line of Halal products

BeaGreatPlacetoWork• NamedoneofCanada’sTop100Employers

• NamedoneofCanada’sTopEmployersforYoungPeople

• ReceivedtheDéfiEmployeursInspirantsaward,recognizingthemostinspiringemployersinQuebec

• Reducedthenumberofworkplaceaccidentsby52%overthepast five years

Highlights


Wearecommittedtoreducingtheenvironmentalimpactsofourday-to-dayoperationsandtoleadingthewayonissueswherewecanhavethegreatestimpact.AsthelargestfoodretailerinCanada,andgivenoursizeandscope,weseeamajorityofourenvironmentalimpactsoccurringinwastemanagement,energyuse,fuelconsumptionandpackagingreduction.

Ourenvironmentalmanagementsystem(EMS)helpsusmanageour activities in a way that protects the environment and complies withallapplicablelawsandregulations.ElementsoftheEMSincludeourenvironmentalpolicy,annualobjectivesetting,programimplementation,regularauditingandevaluation.ProgressisreportedonaquarterlybasistotheEnvironmental,HealthandSafetyCommittee of the Board of Directors..

reduced the number of plastic shopping bags from our stores by more than five billion since 2007

Diverted 81% of waste from our distribution centres

Diverted approximately 1,135,000 pounds of plastic plant pots and flats from landfill, for a total of 5,235,000 pounds diverted since 2008

to date, converted more than 72,000 light fixtures in our corporate stores, resulting in energy savings sufficient to power 9,923 homes for a year

installed a fleet tracking system in all corporate trucks to help reduce our carbon footprint

Respect the environment


ReSpeCT The enviROnmenT / WaSTe ReDuCTiOn


WasteReduction

Loblawhasahistoryofcommittingtowastereductioninitiativesasdemonstratedbyourcharge-for-plasticshoppingbagprogram.Since2007,wehavereducedthenumberofplasticshoppingbagsfromourstoresbymorethanfivebillion.Ourfocusonwastediversionhasspawnedawiderangeofinitiativesacrossourorganizationincluding,mostrecently,effortstoaddressthecriticalissue of food waste.

ReusablePlasticContainersTheamountofproduceshippedinReusablePlasticContainers(RPC)roseto14.8millioncasesin2012–upfrom3.5millionin2011.Theincreasewaslargelyaresultofourongoingeffortswithlocalgrowerstoconvertcontainersforhigh-volumeproductssuchasbeans,corn,carrots,peaches,grapesandcitrusfruits.Todate,283productsarebeingshippedinRPCs.Weworkcloselywithgrowerstoaddresstheoperationalimplicationsassociatedwithmakingtheswitchfromwaxedorregularcorrugatedcardboard,whichhastraditionallybeenusedforshippingproduce,toRPCs.OncetheyhaveconvertedtoRPCs,manygrowersattesttobenefitssuchasmoreefficientcoolingandfasterloadingandunloading.TheadditionalbenefitsofRPCsaresuperiorproductquality,reduceddamageandlowermaterials,labour,shippingandwastemanagementcosts.

Comparedtowaxedcorrugatedcardboardboxes,RPCsrequirelessenergyandproducelesssolidwasteandgreenhousegas(GHG)emissions because they can be used many times over.

CorporateStoresIneachofourfourregions,wesetatargetofimprovingwastediversionby5%over2011levels.

InWesternCanada,weachieveda54%diversionrate.Theimprovementwasprimarilydrivenbyincreasedorganicwastediversionprograms.Wenowhave55storesparticipatinginthemulti-streamrecyclingprogram.Inadditiontocardboardandpaper,thisprogramacceptstraditionallynon-recycledmaterialssuchashardandsoftplasticsandwaxedcorrugatedcardboard.SixteenofourstoresinBritishColumbiaalsohaveprogramsinplacetodivertorganicwastetocommercialcompostoperations.WearepreparingforabanonorganicwasteinMetroVancouverlandfillsites,whichwillbephasedinby2015.

InOntario,weachieveda74%diversionrate.Today,106of125corporatestoresinOntarioparticipateinthemulti-streamrecyclingprogram.Meanwhile,growthinfarm-basedanaerobicdigestersfororganicwasteasfeedstockandrenewableenergyhasenabledus toimproveourorganicwastediversionrate.

InQuebec,weachieveda60%diversionrate,aswecontinuedtoexpandtheorganicwasteprogram.Byyear-end,22storeswereparticipatinginacompostingprograminwhichstoresarepaired withlocalfarmerswhohaveon-sitecompostingfacilities.Thefarmerscollecttheorganicwasteandconvertitintonutrient-richfertilizer.Weplantoaddapproximately25morestorestotheprogramin2013.

InAtlanticCanada,weachieveda66%overalldiversionrate. The Atlantic SuperstorelocationinElmsdale,NovaScotia,diverted89%ofitswaste.In2012,theElmsdaleteamconductedastoreaudittoidentifyallwastestreamsandhowbesttomanagethem.Follow-upactionsincludedexpandingthemulti-streamrecyclingprogramtocoverwaxedcardboardandblackplasticcontainers,trackingallperishablefooditemsgiventolocalfoodbanks,andupdatingpostersabovetherecyclingcontainerstomakeiteasierforcolleaguestoseparatewaste.Thestoreintendstopilotazerowastediversionprogramin2013.DiversionratesinAtlanticCanadaremainthehighestinthecountrythankstolegislationinNovaScotiaandPrinceEdwardIslandwhichmandateorganicwastediversion.

Whilewemadegoodprogressin2012,resultscontinuedto behamperedbythelimitedavailabilityofcost-effective diversion options.

ReSpeCT The enviROnmenT / WaSTe ReDuCTiOn


DistributionandStoreSupportCentresOurdistributioncentres(DCs)haveastrongtrackrecordofwastediversionandachievedanexceptional81%diversionratein2012.AmongthehighestachieverswerePittMeadows,BritishColumbia(92%),Boucherville,Quebec(86%),Lakeside,NovaScotia(91%)andMapleGrove,Ontario(89%).

WastegeneratedatDCsincludeswoodpallets,corrugatedcardboard,plasticfilmwrap,metal,foodwasteandotherpackagingmaterials,mostofwhichweaimtorecycle.RobustorganicwasteprogramsarenowinplaceateightDCs–SurreyandVancouver(BritishColumbia),FreeportandEdmonton(Alberta),MapleGrove(Ontario),Lakeside(NovaScotia)andMonctonandCaledonia (NewBrunswick).

All DCs are audited annually to ensure compliance with environmentallawsandregulationsandwithourcorporateenvironmentalmanagementprograms.Wealsoretainthird-partyevaluators to conduct waste audits at select DCs in order to evaluate thewastegeneratedandidentifyadditionaldiversionopportunities.

EachDCsetsitsowntargetsandencouragesworkforceparticipation.DCspostquarterlydiversionresultsanddiscussperformanceatworkerhuddles.SomeDCshaveimprovedrecyclingcontainers to make it easier to separate waste, appointed waste championstospearheadinitiatives,andcreatedinternalcolleagueengagementcampaigns.AtMapleGrove,the“Wehatewaste”campaignwaswellreceivedin2012.InselectDCs,colleagues weregivenachancetoearnadayoffbyrecyclingemptyplasticwrap rolls.

Weachieveda76%diversionrateatstoresupportcentres,whererecoveredwastetypicallycomprisespaper,beveragecontainersandorganicmaterialfromcafeteriasandkitchens.Wealsohaveaprogramfordivertingoldcomputers,printersandtheliketoelectronics recyclers. Old furniture is either used at other Loblaw locationsordonatedtocharities.ThesupportcentresinCalgaryandMontrealachievedthehighestdiversionratesin2012,at84%and80%,respectively.

FoodWasteAstheworldgrappleswithconcernsabouttheenvironment,howtofeedagrowingglobalpopulationandglobaleconomicwoes,foodwastehasbecomeamajorissuewhichiscapturingtheattentionofgovernments,businesses,academicsandsocietyatlarge.InCanada, it is estimated that consumers and Canada’s food industry waste40%ofthefoodproducedeachyear,valuedatanestimated$27 billion.1 2Notonlyiswastingfoodaneconomicissue,itis alsoasignificantenvironmentalproblem.Moregreenhouse gasesarecreatedfromfoodwastethanfromsourcessuchas plasticpackaging.3

ReducingfoodwasteisoneoftheprioritiesidentifiedinLoblaw’slong-rangeCSRplan.ItisalsooneofthefirstordersofbusinessforDr.RalphMartin,LoblawCompaniesLimitedChairinSustainableFoodProductionattheUniversityofGuelph.Dr.Martiniscollaboratingwithawiderangeofstakeholderstoshareinsightsanddeveloppracticalstrategiesforreducingfoodwaste,aspartofhismandatetoleadchangeinCanadianfoodproductionsystemswithin the context of sustainability, the environment, communities andtheeconomy.Dr.Martinandhisteamcurrentlyhavethreemajorresearchprojectsunderway:ahouseholdaudittoidentifytheextentofconsumerfoodwasteinOntario;aclimatechangeprojecttodetermine how to establish uniform stands of clover in wheat crops tobuildsoilorganicmatter;andresearchintoreducingenergyconsumptionandgreenhousegasemissionsinagriculture.

AmongthestepsLoblawistakingtoreducefoodwaste,selectstoresanddistributioncentreshaveestablishedprogramsfordonatingperishablefooditemstolocalfoodbanksandfoodrecoveryprograms,aswellasdivertingitemsintoorganicwastestreamsforenergyproduction.In2012,selectcorporatestoresintheGreaterTorontoAreaprovidedSecondHarvestwithmorethan716,000poundsoffreshperishablefooditems.Additionally,selectdistributioncentresdonatedmorethan1.6millionpoundsoffreshperishable food items to local food banks in their communities.

WepartneredwithTheConferenceBoardofCanadatoco-chairtheCanadianFoodSummit.Thetwo-dayconferencebroughttogetherfood retailers, industry representatives, experts and academics to discussfoodinCanada,withafocusonquality,price,availabilityand waste, and to explore the development of a Canadian FoodStrategy.

Wealsospearheadedanindustryprojecttoremoveobstaclestorecyclingthermoformedclamshellpackaging.Thischangenotonlyincreasestherecyclabilityofthepackage,italsoreducesorganicwastebyhelpingcustomers’foodstayfreshlongeronceitreachestheirrefrigerators.

1Statisticsincludefoodthatissuitableforhumanconsumption,orwillbefitforconsumptionafter

processing–suchaswheat.

2Gooch,M.,A.Felfel,andN.Marenick.Food Waste in Canada(2010).ValueChainManagement

Centre,GeorgeMorrisCentre.

3 Cut Waste, Grow Profit(2012).ValueChainManagementCentre,GeorgeMorrisCentre.

technicallynotreportableundertheGreenhouseGasReportingProtocol.

ReSpeCT The enviROnmenT / paCkaging ReDuCTiOn


PackagingReduction

Packagingplaysanessentialroleinprotectingourproductssothat they reach customers in the best possible condition. However, packagingcanendupaswaste,particularlyinregionswherethereislimitedrecyclinginfrastructure.Ourinternalresearchshowsthatourcustomerscareaboutpackagingreduction.Whatwealsoknowisthatwecanplayaroleinoptimizingpackagingtoprotectproductswhilereducingfoodwasteandnegativeenvironmentalimpacts.

Althoughwehavemadeadvancesoverthepastfiveyears,packagingreductionremainsachallengeandmoreworkneeds to be done.

Oneofourkeyobjectivesistoreducethetotalamountofpackagingonourcontrolbrandproductsby5%(or11,800,000kg)by2015.Todate,wehaveremoved4,056,022kilogramsofpackagingin205controlbrandproductsacrossmultiplecategoriessuchasboxedseafood,processedmeat,grocery,andbeverages.Thishasincludedreducingthecapweightofourbottledbeveragelineandthe thickness of our President’s Choicechickenwingcartons.

Wearealsoworkingtowardagoalsetin2010ofreducingnon-recyclablecomponentsoncontrolbrandpackagingby50%by2013,whichwouldaffect5,000products.Thusfar,wehavemadeprogresson511products.

Noneofuscansolvepackagingproblemsalone.Weallneedtodoourpart–poolingexperienceandsharinginvestmenttoarriveatasolutionsoonerthanwecanonourown.Amongourcollaborativeefforts,wehavejoinedforceswithCanada’slargestretailandconsumerpackagedgoodscompaniestocreatetheCanadianStewardshipServicesAlliance(CSSA).TheCSSAaimstoprovidemoreefficientwaysforbusinessestofulfilltheirobligationswithrespecttocollectingandrecyclingpackagingandprintedmaterialonceconsumersarefinishedusingthemandforprovincialstewardshiporganizationstodelivertheirrecyclingprograms.TheCSSAwillalsobearesourceforvariouslevelsofgovernmentastheyformulatepolicyandregulatoryframeworksrelatedtothestewardshipofprintedpaperandpackaginginCanada.LoblawalsoplaysaleadershiproleintheworkinggroupsofPACNEXT,anindustryassociationadvocatingforaworldwithoutpackagingwaste.

In2013,weplantore-evaluateourpackagingtargets,establishasustainablepackagingdecisiontree,andconductpilotstudiesusingourcontrolbrandlineofproductstooptimizepackagingdesignandpromoteincreasedrecycling.

ReSpeCT The enviROnmenT / RefRigeRaTiOn anD eneRgy effiCienCy


RefrigerationandEnergyEfficiency

Overthepastseveralyears,wehaveworkeddiligentlytoreducegreenhousegas(GHG)emissionsthroughenergyefficiency,reducedrefrigerantleaksandotherrenewableenergyinitiatives.

EnergyEfficiencyWeachievedourtargetofreducingenergyconsumptionincomparablestoresby3.1%persquarefoot,dueinlargeparttoourcontinuedworkonupgradinglightinginbuildingsanddisplaycasesandbymanagingheatingandcoolingsystemsinourstoresmoreeffectively.In2012,36,206lightfixturesin127storeswereconvertedtonewfluorescenttechnology.Asaresultofourefforts,inthelasttwoyearswehavereplaced72,495lightfixturesresultinginanenergyreductionequivalenttotheenergyrequiredtopower9,923homes in Canada for one year.

WeconvertedverticalfrozendoorcasestoLEDlightinginfivecorporatestores,aspartofapilotprojectinBritishColumbia.LEDlightslastlongerandusesignificantlylesselectricitythanfluorescentlightsinlowtemperatureenvironments.TheplanistodomoreoftheseconversionsincorporatestoresstartinginOntarioin2013,andallofournewverticalfrozendoorcaseswillhaveLEDlighting.

Since2010,wehavecompletedlightingretrofitsin14distributioncentres(DCs),replacingstandardlightfixtureswithfluorescenttechnology.WehavealsoaddedmanuallightswitchesandlightdimmersinselectDCs,andreplacedstandardlightfixtureswithLEDlightinginthefreezersandloadingdocksoffourDCs.WeareplanningadditionalLEDlightingfixtureconversionsinDCsin2013.

Optimizingtheenergymanagementsystemsinourstoresisanotherpriority. Loblaw has a dedicated team of technicians who are trained inthecontrolandenergyoptimizationofourrefrigeration,lightingandheating,ventilationandairconditioning(HVAC)systems.SomeofthesesystemsaremonitoredremotelyusinganInternet-enabledbuildingcontrolsystem.

RefrigerationApproximately50%ofasupermarket’senergyconsumptionisattributedtorunningarefrigerationsystem.Asaresult,wedevotesignificanttimeandresourcestooptimizingourrefrigerationsystemsand processes. As part of a pilot in 2012, we added vertical doors to open dairy cases in one corporate store and based on results, we plan to roll out further conversions in more stores across Canada in 2013.

Loblawstrivestobeattheforefrontofrefrigerationtechnology.Wehaveputinplacearefrigerationsystemthatusescarbondioxide(CO2),anaturalrefrigerant,attheLoblawsstoreatMapleLeafGardens®.In2013,weplantopilotthenextgenerationinCO2 refrigerationdesign,knownasatranscriticalrefrigerationsystem, inwhichcarbondioxideisthesolerefrigerant.

Minimizingrefrigerantleaksisanotherimportantpartofourprogram.Arobustleak-checkingprotocolinourcorporatestoreshasenabledustoachieveleakreductionsyear-over-yearinthepastthreeyears.

SolarPowerThepilotrooftopsolarprojectsatfourOntariostoresprovedtobesuccessful. As a result, we started construction on 12 additional stores in 2012. We plan to have all 12 stores in commercial operation, andpotentially28moreinstallations,bytheendof2013.Solarpanelsconvertsunlightintoelectricity,offsettingaportionofthepowerdrawnfromtheprovincialelectricitygrid.Theyrequireminimalmaintenanceandoperatesilently,makingsolarenergyacleanandsafemethodofpowergeneration.

ReSpeCT The enviROnmenT / fleeT effiCienCy


FleetEfficiency

We continue to implement initiatives to reduce the environmental impactofourtransportfleet.Actionsrangefromreplacingoldertruckswithnewer,moreefficientmodels;drivertrainingonfueleconomyandidletimeimprovement;andequipmentupgradessuchasbatterypoweredauxiliarypowerunits(APUs).

TrucksIn2012,weadded57new,moreefficienttruckstoourfleet,bringingthetotalto195trucksthatcomplywiththerigorousU.S.EnvironmentalProtectionAgency2010emissionstandards.Ournewtrucksaloneprovidedafueleconomyimprovementof7.5%.

Allnewsleepercabspurchasedin2012areequippedwithnon-diesel,batterypoweredAPUs.Inthesetrucks,bunkheaters,airconditioningsystemsanddriveramenities(suchastelevisionsandmini-refrigerators)runonbatteriesratherthandiesel,therebyreducingengineidling.

Weinstalledafleettrackingsysteminallcorporatetrucks.Thesystemisconnectedtoourtransportationmanagementsystemandprovidesreal-timetrackingofmileage,speed,idlingandotherusefuldata.Ultimately,ithelpsironoutinefficienciesinourfleetandenablestransportmanagerstoprovidedailyfeedbacktodriverstoimprovetheirdrivingbehaviour.Throughdrivertrainingandinvestmentsinequipment,wereducedidletimeto7.9%in2012.

Ourtirerecapprograminvolvesrecappingoldtiresastreadsgetworninsteadofbuyingnewones.Theprogramdivertswastefromlandfill and reduces oil consumption in the production of new tires. Since2008,Loblawhasrecapped29,088tires.

FuelAlternativesWeareworkingonanumberofotherinitiativesdesignedtoreducefuel consumption and improve fuel efficiency:

intermodal transportation–Shippingbyrailisconsiderablymorefuelefficientthanshippingbytruck.RailtransportationisprimarilyusedinWesternCanada;however,itisalsobeingexploredinotherpartsofthecountry.Inthehigh-volumecorridorbetweenTorontoandMontreal,wearetestingtheExpresswaytransportationservice,inwhichLoblawtrailersareloadeddirectlyontospeciallydesignedrailcars.In2012,weshipped22,907loadsofproductbyrail.

Long-Combination Vehicles (LCVs)–Inourongoingefforttoreduceourcarbonfootprint,wecontinuetoexpandtheuseofLCVsinourtransportfleet.LCVscanpullmorevolumeperload,thereforereducingthenumberoftrucksontheroad.AlthoughLCVsareprimarilyusedinWesternCanada,weareworkingwiththeprovincialgovernmentsinOntarioandQuebectoexpandtheuseofLCVsinboth provinces.

Lift-a-Deck Systems–Weinvestedin10Lift-a-Decksystems,whichprovideanextra“shelf”fortransportingproductswithinatrailer.Inthisdouble-deckersystem,crossbeamsaremountedinaprecision-machinedtracktoholdcargoandcanbeadjustedtoanyheight.The system enables us to nearly double the load volume of a trailer.

reduce empty Kilometres – To reduce empty kilometres we increasedthenumberofbackhaulsfrom163,379in2011to189,409in 2012, which in turn reduced the number of empty trailers on theroad.Inoureffortstomaximizeourloadvolumes,weshipped19.8millionmorecasesofproductin12,476fewerloads.

ReSpeCT The enviROnmenT / ReDuCing OuR CaRBOn fOOTpRinT


ReducingOurCarbonFootprint

AsthelargestfoodretailerinCanadaweplayanimportantroleintacklingclimatechangeandwearedeterminedtodoourpart.Thegreatestopportunitiesforustoreduceourcarbonfootprintareinthewaysweconsumeenergyandfuelandreducewasteandrefrigerantleaks.

In2012,wereducedthecarbonfootprintthroughoutouroperationsbyimprovingenergyefficiency;advancingrenewableenergytechnologiesandexpandingwastediversionprograms.Ourgreenhousegas(GHG)emissionstotalled1,098,975,772kilogramsfor the year.

WemonitorGHGusingagroceryindustry–developedcalculatorthatiscompliantwiththeWorldResourcesInstitute(WRI)GreenhouseGasReportingProtocol.

2012 TOTal gReenhOuSe gaS emiSSiOnS*

(1,098,975,772 kilograms CO2 equivalent)

**NumbersdonotincludeT&T Supermarkets, franchised and independent stores.

**Non-scopeemissionsarehydrochlorofluorocarbonrefrigerantreleasesthatwetrackbutare

technicallynotreportableundertheGreenhouseGasReportingProtocol.

ReSpeCT The enviROnmenT / The Way We DO BuSineSS


The Way We Do Business

EdibleTreesProgramWithsupportfromLoblaw,TreeCanadahasplantedmorethan177,000treesacrossCanadasince2008.In2012,wedonated$50,000toTreeCanada’sEdibleTreesProgram.Throughthisprogram,fruitandnuttreesareplantedincommunitiesacrossthecountry.Thegoalistohelpfeedthelessfortunateandempowerneighbourstoshareintheharvestandcareofacity-grownfoodsource.Ourdonationresultedin1,244fruitandnuttreesbeingplantedbetweenAprilandSeptember2012.Twentyprojects,involving1,679peoplein20communities,wereselectedfrom200applicationsreceivedfromalloverCanada.

ElectronicPaystubsAsof2012,allLoblawcolleaguesandfranchiseesreceivetheirpaynoticesthroughasecure,password-protected website. The move to electronic paystubs has eliminated the need to mail approximately 1,395,000paperpaystubseachyear.

Eco EyewearLoblaw Optical departments are proud to offer Eco Eyewear, the first and only optical collection made of 95%recycledmaterials.Therecycledmaterialscomefromwhatiscalled“whiterecycling”,wherenewmaterial that other companies would dispose of is diverted and reconstituted into new sheets of metal and plastictomaketheframes.Eachframecomesinanorganiccottoncasewitharecyclablecardboardboxandanaddressedenvelope.Theboxandenvelopecanbeusedtomailoldglassestothemanufacturer,whichthendistributesthemtopeopleinneedindevelopingcountries.Themanufacturerplantsonetreefor every set of frames sold.

Greenest Employer AwardLoblaw was named one of Canada’s Greenest Employers for 2012. This was the third consecutive year in whichwereceivedthishonour.The2012awardrecognizedouraccomplishmentsinimprovingfleetfuelefficiency,increasingwastediversionandreducingenergyconsumption.

InnovationinPackagingWewerepleasedtolearnthatourvaluedgrowerpartnerPhilipShortofVineland,Ontario,ownerofVortexPackagingNiagaraInc.,wasthewinnerofthePremier’sAwardforAgri-FoodInnovationExcellenceinOntario.Theawardrecognizedhissuccessinbuildingabetterbasketforpeachesthatkeepsfruitfreshlonger,withlessdamagefromtransport.PhilipShortandVortexworkedwithustomeetourpackagingneeds.Wealsocollaboratedonthemarketingofthisinnovativenewplasticpackagingforpeachesandothertenderfruit.Inadditiontoreducingfoodwaste,thepackageismadeof50%recycledmaterial(rPET)andisrecyclableinmanymunicipalities.

We know that our customers expect us to buy and sell our products responsibly. They also expect that we will take the necessary actions to promote the health and vitality of our food sources, ensure product safety,supporttheCanadianeconomy,andrequireourvendorstoupholdtherightvaluesinareasrangingfromlabourconditionstoanimalwelfare.Weexpectthesameofourselvesandaredoingourutmosttoliveuptothehigheststandardsofresponsiblesourcing.

We now offer 108 Marine Stewardship Council (MSC) certified products in our stores – more than any other Canadian food retailer

Sourced 100% of fresh pork from Canada

Sourced 31% of the produce sold in our stores year-round from Canadian growers

Sourced 100% of non-tropical outdoor Garden Centre plants and Christmas trees from Canadian growers


Source with integrity

SOuRCe WiTh inTegRiTy / ReSpOnSiBle SOuRCing


ResponsibleSourcing

ResponsiblesourcingisakeycomponentofLoblaw’slong-rangeplanandtakesintoaccountbothlocalandglobalissuesthataffectCanadians. Our approach is to work with vendors and industry associations to source products responsibly, with a focus on our control brand product lines.

SustainableSeafoodIt has been four years since we embarked on our sustainable seafoodjourney.WewerethefirstmajorfoodretailerinCanadatocommittosourcing100%oftheseafoodsoldinourstoresfromsustainablesources,includingproductsthatcontainseafoodasaningredient,bytheendof2013.Sincethen,wehavemadesignificantstridesbyfocusingoureffortsonincreasingthenumberof certified sustainably sourced seafood products in our stores; collaboratingwithstakeholderstodrivetheseafoodindustrytowardresponsibleharvestingofbothwildandfarmedseafood;educatingourcustomers;delisting“atrisk”species;developingsustainableseafood criteria to ensure the fish and seafood we procure come fromsustainablewild-caughtandresponsiblyfarmedsources;rewardingfisheries,andsupportinglocaleconomiesandfishermen.

WeoffermoreMarineStewardshipCouncil(MSC)certifiedwild-caughtseafoodproductsinourstoresthananyotherCanadianfoodretailer,increasingourtotalfrom73productsin2011to108in2012.Categoriesincludefresh,frozenandcannedseafood,petfood,groceryandvitamins(supplements).WealsocarryseveralMSCcertifiedproductsfromHighLinerandJanesFamilyFoods,amongothers,aswellasBentoSushiwhose124in-storekioskshaveMSCchain-of-custody(CoC)certification.Withjustoneyearremaining toreachour2013target,weareworkingdiligentlyonanaction plantotransitionallremainingproductstosustainableor responsible sources.

In2012,LoblawearnedMSCCoCcertificationforfreshseafoodcountersin16stores.Togainthiscertification,storesareauditedbyathird-partytoconfirmthattheyhavetraceability,storageandrecord-keepingsystemsprovingthatonlyseafoodfromacertifiedfisherycarriestheMSCecolabel.

Wemadeprogressonanumberofotherfrontsaswell:

iFFo–LoblawbecamethefirstandonlyretailerintheworldtojointheIFFO–thetradeassociationforthemarineingredientsindustry.WeareworkingtowardallfarmedfishtoberaisedusingfeedthatonlycontainsfishmealandfishoilthatmeettheIFFOGlobalStandardandCertificationProgrammefortheResponsibleSupplyofFishmealandFishOil.

aquaculture Stewardship Council (aSC) Certified products – WehaveworkedtowardachievingASCchain-of-custody(CoC)certificationforfreshandfrozentilapia,whichwillbeintroducedinourstoresin2013.ASCcertificationassuresthatthefishweselloriginatedfromafarmthathasbeencertifiedasemployingenvironmentallyandsociallyresponsibleaquaculturemethods.ASCcertificationisthemostcrediblebenchmarkofresponsibleaquacultureintheworld.LoblawwillbethefirstfoodretailerinNorthAmericatoofferASCcertifiedseafoodandfishinitsstores.

Managing Species at risk – We added American red snapper tothelistofspeciesthatwewilltemporarilystopsellinguntilasustainable source can be found because it is considered to be at risk.Otherspeciesorspeciesgroupsincludeorangeroughy,sharksand skates. While Chilean sea bass had been at risk, we worked with our scientific advisor to find two sustainable fisheries for Chilean sea bass and will reintroduce the product in our CoC certified stores.

Vendor Questionnaire–Wecollecteddetailedsourcingdatafromsomeofourlargestseafoodvendorstohelpassessandmanage ourseafoodsources.Wewillcontinuetoengageremainingvendorsin 2013.

Sustainably Sourced Canned tuna–Cannedtunaisthesinglehighestvolumeseafoodproductinourstoresandsince2010,webegansourcingallcannedtunafrommembersoftheInternationalSeafoodSustainabilityFoundation(ISSF).In2013,throughresearchandprogramsimplementedbytheISSF,andthesupportofourscientificadvisors,weareevolvingourcannedtunaprocurementpolicytobettersupporttunaconservation.Thisincludesredirectingour sources to ensure that all canned tuna is procured from responsiblesourceswherethereisscientificdatademonstratinglowerby-catchimpactsandhealthystocklevels,anduponconditionof certification over time.

SOuRCe WiTh inTegRiTy / ReSpOnSiBle SOuRCing


Animal WelfareAnimal welfare issues are important to us. Loblaw is committed to workingwithvendors,industryassociationsandanimalwelfareexperts to ensure animal welfare standards and best practices are in place that promote the care, protection and safety of farm animals andtheircaregivers.Oneoftheexpertswehavebeenindiscussionswith is Dr. Temple Grandin, an American doctor of animal science andprofessoratColoradoUniversity.

Weareconcernedabouthousingarrangements,inparticular,batterycagesforlayinghensandsowcratesforpigs.Sowcratesare an important issue and we have had several discussions with porkvendorsexpressingourdirectiontowardandsupportofloosehousingsystems.In2013,wewillmakeacommitmenttopurchasefreshporkfromloosehousingenvironmentsbyyear-end2022.

In2012,webecameassociatemembersoftheNationalFarmAnimalCareCouncil(NFACC),amulti-stakeholderforumthatfacilitatesthe development of standard codes of practice for farm animals, includingrevisingthecurrentegglayerandpigcodesofpracticeinCanada.Thisprocessprovidesacredible,science-basedandbalanced approach.

In 2011, we made a commitment to work with industry to transition all President’s Choiceeggstocage-free.OurPresident’s Choice line of eggsiscomprisedofPresident’s Choice, PC Organics and PC Blue Menu brands. To date, our President’s Choice and PC Organicseggsarefree-run,whichmeansthattheeggsareexclusivelysourcedfromlayinghenswholiveinanopen-conceptenvironmentwherearetheyare free to roam, feed and nest. The next and final step to achieve ourtargetistotransitionourPC Blue MenuOmegaeggstofree-run.

Our Joe Fresh control brand cosmetics and raw materials are not tested on animals.

SustainablePalmOilPalmoilisatypeofvegetableoil,derivedfromthepalmfruitgrownontheAfricanoilpalmtree.Palmoilanditsderivativesappearinsmallquantitiesacrossabroadrangeofproducts,predominantlybakeryandhealthandbeautyproducts.Unfortunately,increasedglobaldemandforpalmoiliscontributingtorainforestdeforestationandhabitatdegradation.

Recognizingtheseriousnessoftheissue,weconsultwithWWFandtheRoundtableonSustainablePalmOil(RSPO),aninternationalorganizationestablishedin2004topromotetheproductionanduseofsustainablepalmoil.Amongitsactivities,theRSPOhasacertificationprogramthatprovidesassurancethatthepalmoilused in a product is responsibly produced and that volumes are traceable.In2013,wewillbecomemembersoftheRSPO,developa sustainable palm oil policy and action plan, complete an inventory ofourfoodandnon-foodcontrolbrandproductsthatcontainpalmoilasaningredientandthenengageourcontrolbrandvendorstoalignwithourobjectivestomeetRSPOcertifiedstandards.

SustainablePaperOurgoalistosourcepaperresponsibly.Todate,allcopypaperusedinternallyinourcorporatefacilitiesisForestStewardshipCouncil(FSC)certified.OurinternalnewslettersandJoe Fresh Look Books arealsoprintedonFSCcertifiedpaper.Themajorityofourcontrolbrandpaper-basedproductssoldinourstationerydepartmentwillbeFSCcertifiedin2013.Wearecurrentlydevelopingasustainablepaper procurement commitment for the business to ensure that all paper-basedproductssoldforretailandusedinternallythroughoutour operations are responsibly sourced.

SOuRCe WiTh inTegRiTy / lOCal SOuRCing


LocalSourcing

LoblawiscommittedtobuyingCanadianfirst.WestrivetoworkwithCanadianvendorsandgrowerstoprovideourcustomerswithlocalandregionalfreshproductsinstoresallyearround.

CanadianFirstAtLoblawCompaniesLimited(Loblaw)wearecommittedtobuyCanadianFirst,placingapriorityonlocalandregionalfreshproductswhenthesafety,quality,availabilityandvaluearerightforourcustomers.AsthelargestfoodretailerandfooddistributorinCanada, Loblaw is proud to offer safe and healthy foods from across the country.

Sinceourinceptionin1919,wehavetakenprideinworkingwithlocalfarmers,fishermenandproducers,helpingthemgrowtheirbusinessesandcontributingtothegrowthoflocaleconomies.Loblawenjoyslong-standingdeeprelationshipswithawideassortment of Canadian suppliers and we are proud to continue the traditionandcommitmenttobuyCanadianFirst.

Grown Close to HomeIn 2012, we ran the Grown Close to Homecampaignforthefifthyearinarow.Thecampaignfeatureddelicious,summer-freshproducegrownbyCanadianfarmers.Duringthecampaign,upto40%oftheproducesoldinourstoreswassourcedfromCanadiangrowers.Numbersvariedfromregiontoregion,butupto180productswerepart of the Grown Close to Homeprogramin2012.Forthefullyear,31%ofLoblaw’sproducepurchaseswereCanadian,asweworkedtomaximizetheamountoffreshCanadian-grownproduceavailableyear-round.

Wevalueourrelationshipswithlocalgrowers,someofwhichhavespannedmorethan40years.Wehavevendordevelopmentmanagersineachregionwhosupportlocalgrowersonafull-timebasis,andhelpconnectgrowersandLoblawbuyers.Wealsoholdannualproducegrowermeetingsineachregiontodiscussindustrytrends,bestpractices,Loblawsafetyandqualityexpectations,andother topics of interest. Loblaw is the only Canadian food retailer to conductthesetypesofmeetings.

Lawn and GardenEachspring,GardenCentrespopupatmostofourstores.Weareproudofthefactthat100%ofthenon-tropicaloutdoorplantsaresourcedfromCanadiangrowers,asaretheChristmastreesofferedduringtheholidayseason.Weworkwithmorethan25CanadiangrowerpartnersacrossthecountrytobringinnovativeproductstotheGardenCentresandtobuildacommunityofgrowerswhoshareandlearnfromoneanother.Amongtheirrecentinnovations–thePresident’s ChoiceSimplySaladBowl,ourexclusivePresident’s Choice Super Gigantico Dahlia Hypnotica Cotton Candy, and our brand new President’s Choice Hascap Bush. Additionally, we worked with a Canadian manufacturer to develop the President’s Choice Solar-PoweredIlluminatedPlanterMulti-ColouredLightsandthePresident’s Choice“PlanttheTop”RainBarrel.TheseproductsdemonstrateourongoingeffortstoworkwithvendorswhocansupplyuswithCanadianproductsandwhoareasforward-thinkingand committed to environmental sustainability as we are.

CanadianBeefandPorkTodate,100%ofourfreshporkissourcedfromCanada,withtheexception of sale items and products sold in select hard discount stores.SourcingfreshbeeffromCanadacontinuestobeaworkinprogress;however,wearecommittedtoworkingwithourvendorstoachievethistarget.

WeexpandedtheOntarioCornFedBeef(OCFB)programto241bannerstoresintheprovince,aspartofourpartnershipwiththeOntarioCattleFeeders’Association.Thestoresaresuppliedbyapproximately500Ontariofarmers.Theprogramhasbeenatremendoussuccessandweareexploringsimilaropportunitieswithproducers in other provinces.

SOuRCe WiTh inTegRiTy / QualiTy aSSuRanCe anD fOOD SafeTy


QualityAssuranceandFoodSafety

Loblaw customers should have every confidence that the food they buyfromusissafe.Ourstandardsandprocessesforensuringthattheproductswesellaresafe,ofhighqualityandmeetalllegalrequirementsareamongthemostrigorousinourindustry.Theyapplyto both our own operations and to those of our vendors. We also collaborateextensivelywithourCanadianandglobalcounterparts,jointlyseekingtomanagefoodsafetyriskforconsumers.

Loblaw AcademyMore than 100 control brand vendors enrolled in the new Loblaw Academy in 2012. The Academy is a partnership between Loblaw andtheCanadianResearchInstituteforFoodSafety,UniversityofGuelph,whichseekstofurthervendors’understandingofLoblaw’sfoodsafetyandqualityexpectations,developprofessionalandtechnicalskills,andoffernetworkingopportunities.Theprogramconsistsof10modules,adiscussionforum,assignmentsandquizzes.Modulescovertopicssuchasriskanalysis,plantlayout,allergens,foreignmatterpreventionanddetection,shelflife,incidentmanagementandmore.TheAcademyhasbeenwellreceivedandparticipation in the discussion forums has far exceeded our expectations.

VendorCertificationLoblaw was the first food retailer in Canada to insist that our control brand food vendors comply with safety standards under the Global FoodSafetyInitiative(GFSI).TheGFSIbenchmarkstheleadingglobalfoodsafetyschemesandintegratesthemsothatwhenamanufactureriscompliantwithaGFSI-benchmarkedscheme,itisautomaticallyacceptedasequivalenttoallothercorrespondingGFSI-recognizedstandards.

WearealsooneoftheearlyadoptersanddriversofGFSIcomplianceatthegrowerlevelinCanada,whichincludesCanadaGAP’sOn-FarmFoodSafetyprogram.In2012,wefocusedonsupportingproducevendorstoachievecertification.Oneofthemajorchallengesisthatmanyvendorsaresuppliedbymultiplegrowers,andcertificationrequiresthatallofthesegrowersbecertifiedaswell.Thisremainsaworkinprogress.Ourfocusistoworkwithourcontrolbrandproducegrowerstoensuretheyare100%compliantwithGFSIcertificationstandards.

FoodSafetyAuditsFoodsafetyauditsareanintegralpartofoursafetyandqualitymanagementsystemsatboththevendorandretaillevels.Third-party audits are conducted by an independent auditor twice a year in our stores and once a year in our distribution centres. Additionally, wehaveadedicatedteamofFoodSafetyprofessionalcolleaguessupportingourstoresanddistributioncentresnationallytohelpexecute food safety procedures, address corrective action plans in responsetoauditfindings,andimplementprogramsofcontinualimprovement.

“ the academy gives us the opportunity to reassess our current safety program and enhance it where applicable. i found module one very thorough and complete. i look forward to the next nine months of learning.”

venDOR paRTiCipanT, lOBlaW aCaDemy

SOuRCe WiTh inTegRiTy / The Way We DO BuSineSS



GardinerFarmsandOntarioCornFedBeefGardinerFarmsnearKirkton,Ontario,hasbeenavaluedsuppliertoLoblawsincethestartofourpartnershipwiththeOntarioCattleFeeders’Association.OwnersJoelandSarahGardinerandtheirfamilyhaveraisedcattleandgrowncorn,beans,hayandwheatformorethan60years.AspartoftheOntarioCornFedBeef(OCFB)program,theyarecommittedtoproducinghigh-qualitybeef,grownlocally,inanenvironmentallyconsciousmanner,andtoadheringtostringentqualityassuranceprotocols.

Usingsoundagronomicpractices,GardinerFarmsplants,rotatesandharvestsitscrops,makingcattlefeedthatcomplieswiththequalityassuredOCFBprogram.Furthermore,thecattlemanureisprocessedthroughananaerobicdigester,whichgeneratesenoughgreenelectricitytopower100homesforayearaswellasproducingnaturalfertilizer.AstheGardinerssay,theirfarmisoneofthefewcattlefarmsinCanadathatcanofferOntariansagreat-tastingOFCBprogramsteakwhilegeneratinggreenrenewableenergytochargetheircellphones.

Linwell GardensLinwellGardensinBeamsville,Ontario,hasbeenavaluedsupplierofLoblawsince1991.OwnerGeorgeAlkematravelstheworldwithustofindannualplantsthatappealtocustomersandsuittheCanadianclimate.Onceplantsareselected,wewanttoensuretheygrowtobeasconsistentlybeautifulhereastheydoabroad.That’swhereLinwellGardenscomesin.Theytakethecuttingsfrombreedersaroundtheworldandplantthemintraystoroot,beforesendingthesmallplantstogrowersacrossCanada.GeorgeAlkemaalsotravelstogrowers’operationsandshareshisknowledgeandexpertise.

Today,LinwellGardensproducesflowersinmorethan19acresofgreenhousesinOntario.Thegreenhousesareequippedwithroboticplantingequipmentandautomaticwateringsystemsalongwithanundergroundwaterstorageunittocapturerainwater.Therainwateristhenusedtoirrigatetheplants.Itisaprovenrecipeforsuccess.WeareproudtocountLinwellGardensamongourgrowerpartners.

Oceans for TomorrowToincreaseconsumerawareness,welaunchedanationalMarineStewardshipCouncil(MSC)certifiedseafoodevent–thefirstofitskindinCanada.Thetwo-weekeventwassupportedbytheMSC,WWFandournationalbrandvendors–HighLinerandBentoSushi.Itincludedin-storeflyerpromotionsandnewin-storesignageanddisplays.Whilerewardingleadingvendorpartners,thiseventsignificantlyincreasedbothsalesofMSCcertifiedproductsandconsumerawarenessoftheMSCeco-label.

SOuRCe WiTh inTegRiTy / The Way We DO BuSineSS


CSRSupplieroftheYearOurCSRSupplieroftheYearAwardrecognizesvendorsinourcontrolbrandportfoliowhodemonstrateleadershipinsupportingLoblaw’sCSRprinciplesinthedevelopment,manufacturingordistributionoftheirproduct.Loblawwasproudtopresentthe2012awardtoOceanNutritionCanada,partofDutchmultinationalRoyalDSM,forsupportingfisheries,sustainabilityandtheenvironment.OceanNutrition’sfishoilissourcedfromsmall,omega-3richanchoviesfromthePeruviancoast,whichhasmaintainedaconsistentfishpopulationformorethan30years.OceanNutritionworkscloselywiththeAssociationofPeruvianAnchovyProducerstoensurethestabilityandsustainabilityoftheregion’sfishpopulation.

Thecompany’seffortsextendtothewayinwhichitrunsitsprimaryfishoilprocessingplantinMulgrave,NovaScotia.Theplantreusesthewastefromfishoilmanufacturingasbiodiesel,whichisthenrecycledintotheboilerandheatingsystemsothattheplantisrunalmostentirelyonfishoilfuel.

JaneGoodallInstituteBlendCoffee Dr.JaneGoodallmadeaspecialappearanceattheLoblawsstoreatMapleLeafGardens®inSeptember2012tolaunchanewsustainable,certifiedorganiccoffee.TheJaneGoodallInstituteBlendwasdevelopedinpartnershipwiththeFreshCoffeeNetwork.ItisroastedlocallyinsmallbatcheswithethicallysourcedAfricancoffeefromregionsincludingTanzania,EthiopiaandtheDemocraticRepublicofCongo.Thecoffeeispackagedin100%post-consumerrecycledmaterial(ForestStewardshipCouncilcertified)andisentirelycompostable.TwodollarsfromeachpoundsoldgodirectlytotheJaneGoodallInstituteofCanada.TheJaneGoodallInstitute’seffortsprotectAfricanforestsandchimpanzeeswhilealsoimprovingthelivesoflocalAfricancommunities.Formoreinformation,visitwww.janegoodall.ca.

Beyondmeetingcustomers’everydayhouseholdneeds,weofferproducts and services that empower Canadians to make healthier choicesandsupportthemontheirjourneytoahealthierlifestyle.Wealsoconsideritaprioritytogivebacktothecommunitiesinwhichour stores operate.

together with our customers, colleagues, vendors, franchisees and their employees, donated more than $45 million to charities and non-profit organizations across Canada

President’s Choice Children’s Charity has granted more than $86 million to more than 15,000 families and 13,000 nutrition programs across Canada since its inception in 1989

reduced 117.6 metric tonnes of sodium in 428 control brand processed products since 2010

We now offer 319 PC Organics products in our stores – the largest organics line in Canada

rolled out Guiding Stars nutrition rating system in Loblaws banner stores in ontario – first Canadian retailer to introduce this rating system

added 22 dietitians in 50 corporate stores


make a positive Difference in Our Community

make a pOSiTive DiffeRenCe in OuR COmmuniTy / live life Well


Live Life Well

LoblawoffersoneofCanada’slargestassortmentsoffreshofferingsandhealthierfoodproductsalongwithawiderangeofservicestoempower Canadians to make healthier choices and support them on theirjourneytoahealthierlifestyle.

PC Blue MenuLaunchedin2005,withmorethan400productsinmarket,PC Blue Menumakeshealthiereatingsimple.ThehealthierattributesofPC Blue Menuproductshelpcustomersmanagetheirintakeofomega-3,fibre,fatandsodium,aswellascalories,sugar,probioticsandmore.In2012,weredesignedthePC Blue Menupackagingtoincludeplus(+)orminus(-)symbolswhichmakeiteasierforcustomerstoseeaproduct’s nutritional attributes.

In-StoreIntegratedHealthProgramsLoblaw strives to be the number one nutrition and health destination in Canada. We feed more Canadians than any other food retailer in the country and with this comes the responsibility to help our customers make healthier food and lifestyle choices. Here’s what we aredoing:

Fresh First–Healthyeatingstartsatourfreshdepartments.Fromseafoodtomeattoproduceandbakedgoods,weencourageconsumers to buy fresh foods and we continually enhance our productofferings.

Gluten-Free products–WeoffereightPresident’s Choicegluten-free products. The President’s Choice brand was the first control brand line in Canada to meet the Canadian Celiac Association’s Gluten-FreeCertificationProgram(GFCP)requirementstodisplaytheGFCPtrademark.

trans Fats (Hydrogenated oils)–Webeganremovingtransfatsfromourcontrolbrandproductsin2005.Sincethen,morethan1,000controlbrandproductsweresuccessfullyswitchedfromusingpartiallyhydrogenatedoilstonon-hydrogenatedoils.Today,noneof our PC Blue Menu and PC Organics products contain trans fats andwecontinuetoexcludetransfatsinremainingcontrolbrandproducts where possible.

no artificial Flavours/no artificial Colours (naFnaC) – We aremakinggoodprogressonourcommitmenttoremoveartificialflavours and artificial colours from our President’s Choice brand productsbyyear-end2013.Currently93%oftheproductsarefreefromtheseingredients.LoblawisthefirstCanadianfoodretailertomake this commitment.

PC Organics – PC Organicsisthelargestorganiclineofproductsavailable in Canada, with more than 300 products in the market, crossingcategoriessuchasfresh,grocery,dairyandbaby.PC Organicsproductsarethird-partycertifiedtoensurethateveryproductmeetsCanada’sorganicstandards,whichemphasizesustainability and a natural approach to weed, pest and disease control.

Guiding Stars–In2012,werolledoutGuidingStarsin44Loblaws store locations in Ontario and at our corporate head office. We are thefirstfoodretailerinCanadatointroducethisin-storetoolthatratesfoodproductsandassignsascoreofuptothreestarsbasedontheirnutritionalvalue.GuidingStarsprovidesafastandeasywayforcustomersandcolleaguestomakenutritiouschoices.

Health and Wellness partnerships and in-Store

education programs:

• Get Checked Now–Since2011,Loblawhascollaboratedwith the Canadian Diabetes Association to raise awareness of diabetes and to provide diabetes information sessions for peoplenewlydiagnosedwithdiabetesandwhoarelookingfor information and support on topics such as nutrition, vision careandbloodglucosemonitoring.Sessionsincludegrocerystoretourswithin-storedietitiansandcookingclassesinourPresident’s ChoiceCookingSchools.

• Food allergy Management assessment program – Developed inpartnershipwithAnaphylaxisCanada,thisprogramhelpsparentsandallergypatientsbettermanagepotentiallylife-threateningfoodallergies.

• Healthy Heart Checks – Developed in collaboration with the Becel Centre for Heart Health. Loblaw pharmacists in select storesconduct20-minuteheartchecksandprovidecustomerswithapersonalizedpictureofkeycardiovasculardisease risk factors.

• S.a.L.t. (Sodium awareness Lifestyle tips) – Developed in partnership with Hypertension Canada, offers customers educationalbookletshighlightinglowsodiumfoodsandHypertensionCanadaguidelinesrelatedtosodiumintake.

“ i love the new [Guiding Stars] program. it is so easy to follow and makes so much sense when i’m shopping!”

lOBlaW CuSTOmeR Speaking aBOuT guiDing STaRS

Dietitians–Wenowhave22dietitiansin44Loblaws stores and six Real Canadian SuperstorelocationsinOntariowhoprovidemenu-planningadvice,foodlabel-readingtours,fooddemonstrations,healtheducationandcookingclasses.Dietitiansalsoteamupwithin-storepharmacistsandotherhealthprofessionalstoofferintegratedhealthprogramsthatcanhelpcustomerspreventandmanagespecificchronicconditions.AspartofoursponsorshipofNutritionMonththroughDietitiansofCanada,wehosted“Dietitian’sDay” on March 3, where more than 100 dietitians across Canada wereinourstoreshelpingeducatecustomersabouthealthiereating.InNovember,aspartofDiabetesMonthinCanada,morethan100dietitians were in our stores to educate customers about healthier foodoptionstohelpmanagethedisease.

pharmacies–Loblawhas502pharmaciesacrossCanada.Inadditiontofillingprescriptions,pharmacistsofferpatienteducationprogramsandworkcloselywithin-storedietitians(whereavailableinselectstores)tohelppatientsachievetheirhealthgoals.In2012,wepurchasedprescriptionfilesfrom106Zellerspharmaciesacrossthecountry(excludingQuebec)toprovidecontinuityofcaretoZellerspharmacypatientswhentheZellerspharmaciesclosed.

Medical Clinics–Medicalclinicsin125selectstoresacrossCanadaoffer health care services to consumers.

optical Departments–Opticaldepartmentsin114selectstores across Canada offer services from licensed opticians and optometrists,eyeexams,eyeglasseswithbrandnameframes, andcontactlenseswiththelatestdigitaltechnology.

Natural Value – Natural Valuedepartmentsin340selectstoresacrossCanadaofferapproximately4,000productstomeetthedietary restrictions and preferences of many Canadians.

GoodLife Fitness–Loblawstoresarehometo58GoodLifeFitnessfacilities,makingitextraconvenientforCanadianstoworkoutandeat healthy.

President’s Choice Cooking Schools – Located within our stores, Loblawhasmorethan200cookingschoolsacrossCanada,ofwhich 127 offer classes to educate and support consumers toward healthierliving.Featuringafullworkingkitchenandalargeseatingarea, each school offers a host of classes for adults and children aswellasregularsessionsonhealthierliving.Manylocationsofferclasses with both a dietitian and a chef to cater to consumers withhealthconditions.Thecookingschoolsalsohostavarietyofcommunity-basedprogramsthatsupportourstores’localcommunities.Pleasevisitwww.pccookingschool.catolearnmore.

SodiumSodiumisanessentialnutrientfoundinsaltandmanyfoods.Ourbodiesneedsodiumtobehealthy,buttoomuchcanleadtohighbloodpressure,amajorriskfactorthatcontributestostrokeandheart disease.

Forthepastthreeyears,wehavemadeitaprioritytolowertheamount of sodium in our processed control brand foods. This is allpartofHealthCanada’ssuggestedguidelinestowardsodiumreductionwhichcallforaboutaone-thirdreductionofsodiuminconsumers’dietsby2016.Since2010,wehavereduced117.6metrictonnesofsodiumin428existingcontrolbrandprocessedproductsanddeveloped741newcontrolbrandprocessedproductsthatmeetourinternalguidelinesforresponsiblesodiumcontent(asestablishedbyourteamofnutritionresearchers,registereddietitiansandnutritionists,followingCanada’sFoodGuideandguidancefromHealthCanada).

In2012,wereformulated95existingcontrolbrandprocessedproducts,reducingsodiumlevelsbyanaverageof22%.Thismeansthat25.8metrictonneslesssodiumwillbeconsumedinthecomingyear.Wealsodeveloped150newcontrolbrandprocessedproductsthatmeetourinternalguidelines.TheseincludedproductsinourPresident’s Choice, PC Blue Menu, Farmers Market and no name product lines.

OurdietitiansofferHealthyEatingandHealthyHearttours in-storeandeducatecustomersabouthealthyeating.In2012, weranamonth-longcampaigninstoresthatofferedcustomers theS.A.L.T.(SodiumAwarenessLifestyleTips)educational bookletswhichhighlightedlow-sodiumfoodsandsodiumintakeguidelines.OureffortsearnedustheCertificateofExcellence from Hypertension Canada.

InpartnershipwithgroceryretailersandfoodvendorsinCanada,weestablishedaworkinggroupthatissettingnewapproachestoreportingprogressonsodiumreductionandimprovingcustomereducation on, and awareness of, nutrition choices.

“Meghan [Loblaw dietitian] was a joy. She looked at my list of food sensitivities and came up with many good ideas and showed me where to find the products. i’ve recommended her to my friends.”

lOBlaW CuSTOmeR

Speaking aBOuT an in-STORe DieTiTian

make a pOSiTive DiffeRenCe in OuR COmmuniTy / live life Well


make a pOSiTive DiffeRenCe in OuR COmmuniTy / pReSiDenT’S ChOiCe ChilDRen’S ChaRiTy


President’s Choice Children’s Charity

Helping Kids Do AnythingisthenewtaglineforPresident’s Choice Children’sCharity(PCCC).Whetherit’sprovidingsupporttochildrenwithspecialneedsorensuringhungrytummiesarefilledwithnutritiousfood,PCCCstrivestoensurethatkidshaveeveryopportunity to live to their full potential.

ChildhoodNutritionProgramsStartingthedaywithanutritiousbreakfastensureschildrenareproperlyfuelledfortheirdayoflearning.PCCCaimstofightchildhoodhungerbyprovidinggrantstoBreakfastforLearning™andBoysandGirlsClubsofCanada.In2012,PCCCgranted$2,895,000tofundmorethan2,900nutritionprogramsacrossCanadaandprovided$1,125,000insupplementalfundingforfruit,vegetablesanddairyproducts,aswellasequipmentsuchastoasters,ovensandrefrigeratorsatselectprogramlocations.

AssistancewithSpecialNeedsPCCCsupportschildrenwithspecialneedsbyprovidingfinancialgrantsforessentialspecializedequipmentandessentialtherapies.In2012,PCCCgrantedmorethan$10milliontomorethan1,900Canadian families with children with special needs.

PleasevisitthenewPCCCwebsitetolearnmore.

make a pOSiTive DiffeRenCe in OuR COmmuniTy / CORpORaTe giving


CorporateGiving

Ourcorporategivingefforts(bothfinancialsupportandprograms)focus on President’s ChoiceChildren’sCharity(PCCC),healthyactivekids,feedingourneighboursandgreeningourcommunities.In2012,weinvested$5.3millioninmanyinitiativesincluding:

pCCC–Donated$1.8milliontoPCCCtosupportchildrenwithspecialneedsandtofundprogramsthataddresschildhoodhunger.

WWF–Donated$1milliontotheWorldWildlifeFund(WWF).Usingaportionoftheproceedsfromthenationalcharge-for-plasticshoppingbagprogramatourstores,wepartneredwithWWFtomobilizeCanadians to take action on the environment in conservation initiativessuchasNationalSweaterDay,theGreatCanadianShorelineCleanupandtheGreenCommUnitySchoolGrantsprogram.UndertheGreenCommUnitySchoolGrantsprogram,grantstotalling$600,000overthreeyearsarebeingawardedtoCanadianschoolstosupportstudentengagementinenvironmentalprojectsandsustainabilityleadership.

University of Guelph–Donated$600,000aspartofour $3millioncommitmenttowardtheLoblawChairinSustainable FoodProduction.

Loblaw after-School Grant–Awarded$252,879to64after-schoolprogramsthathelpkidsdevelophealthy,activelifestyles.Since2010,theAfter-SchoolGrantawardedmorethan$756,000to210organizationsacrossCanada.

Food banks Canada–InadditiontospearheadingtwoExtra Helpingnationalfooddrives,donated$200,000toFoodBanksCanada’sNationalFoodSharingSystemand$50,000tosupportitslongertermmissionofreducinghungerinCanada.

Dr. David Jenkins, research at the University of toronto – Donated$250,000tofundresearchrelatedtotheroleofdietindisease prevention and treatment, particularly the association of diet with heart disease, diabetes and cancer.

the Conference board of Canada–Donated$50,000totheCentreforFoodinCanadaand$25,000totheCanadianAllianceforSustainableHealthCare.

tree Canada–Donated$50,000toTreeCanada’sEdibleTreesProgram,resultingin1,244fruitandnuttreesbeingplantedincommunities across the country.

LoblawSupportPriorities

make a pOSiTive DiffeRenCe in OuR COmmuniTy / COmmuniTy giving


CommunityGiving

Westrivetobeagoodneighbourandanactivecontributortothecommunities in which our stores are located.

SponsorshipsandLocalInvestmentsOur corporate and franchised stores contributed more than $2.2milliontolocalcommunitycausesandorganizationsin2012.Forexample,whentheroofoftheAlgoCentreMallinElliotLake,Ontario,collapsed,wedonated$5,000ingiftcardstotheElliotLakeFoodBank.Thelocalnofrillsstorealsogavegiftcardstothefamiliesofcolleaguesaffectedbythetragedy.Similarly,afterseverefloodinginThunderBay,Ontario,wedonated$1,000ingiftcardstoaffectedfamilies, and the local Real Canadian Superstorelocationjoinedinthereliefeffortbycollectingapproximately3,000poundsoffood.

Wealsoinvestedmorethan$5.2millionincorporatesponsorshipssuch as the President’s Choice Community and Corporate Gift Card programandtheZehrsSave-a-Tapeprogramtosupportnon-profitorganizationsinlocalcommunities.

FundraisingMorethan14millioncustomersshopinourstoreseveryweekincommunitiesacrossCanada.Wetrytohelpcharitiesandnon-profitorganizationsinourcommunitiesandmakeiteasyforourcustomerstogivebyholdingfundraisingcampaignsatcheckouts.Withthehelpofourcustomers,colleagues,franchiseesandtheiremployees,weraisedmorethan$25millionin2012.

Ofthetotalamount,thenationalspringandholidayExtra Helping fooddrivesraisedmorethan$1.8millionincashdonationsandcollectedmorethan1.9millionpoundsoffoodforlocalfoodbanksacrossCanada.Duringthecampaign,eachLoblawcorporateandfranchised store is partnered with a food bank in its community. Sincetheybeganin2009,theExtra Helping food drives have broughtinmorethan$5.6millionandmorethan6.3millionpoundsoffood.Allofthefooddonationsand85%ofcashdonationsgodirectlytothelocalfoodbank.Theremaining15%ofcashdonationsgoestoFoodBanksCanada’sprovincialfoodbankmemberassociationstoassistwithprovincialprogramming.Thesedonationshelpnearly900,000Canadianswhoturntofoodbankseachmonth.

The Give a Little, Help a Lotcampaignraisedmorethan$690,000in2012,bringingthetotaltomorethan$3.4millionsince2008.Give a Little, Help a Lotisapoint-of-purchasecampaigninwhichcustomerscansupporttheselectedcharityororganizationwitha$2donationatcheckout.Thefundsraisedin2012supportedorganizationssuchasIWKHealthCareFoundation(NovaScotia),JanewayChildren’sHospital(Newfoundland),Clubdepetitdéjeuners(Quebec),KidSport,YMCAsinOntario,HeartandStrokeFoundation,TheHospitalforSickChildren,theChildren’sHospitalofEasternOntarioandtheChildren’sHospitalatLondonHealthServicesCentre(Ontario),aswellasvariousothers.

make a pOSiTive DiffeRenCe in OuR COmmuniTy / The Way We DO BuSineSS



MeetKarolinaOtto,LoblawDietitianStepintoaReal Canadian SuperstorelocationinMiltonorOakville,Ontario,andyoujustmightcatchKarolinaOttoconductingagroceryshoppingtour,counsellingindividualsonappropriatenutritionalchoices,teachingahealthycookingclassordirectingacommunitywellnessprogram.Aregistereddietitian,Karolinaworkedfor20yearsasafoodandnutritiondirectorandconsultantathospitalsandschoolboardsinMontrealandTorontobeforejoiningLoblawin2011.Sincethen,shehasembracedtheopportunity to interact with customers and lead them on a path toward a healthier lifestyle. One of the simplerecommendationsshemakesistocookyourownmeals.AccordingtoKarolina:“Manyhealthissues arise because people do not cook or do not know how to cook. It is never too late to learn this essential life skill.”

Habitat for HumanityInMay2012,HabitatforHumanityTorontobrokegroundonanewbuildprojectinthecity’swestend.ThelandwasdonatedbyLoblawandservedasthefoundationforatwo-bedroom,fullyaccessiblehomefortheSinatofamily.SincemovingtoCanadafromArgentinain2002,LorenaSinatohadfacedanuphillbattletryingtoprovidethebestcarepossibleforhersonBryan,whosuffersfromcerebralpalsyandislegallyblind.HomeownershipthroughtheHabitatforHumanitymodelallowsparentslikeLorenatoprovide a stable and safe environment for their families, on financial terms that they can afford.

GoingtheExtraMileOurtransportanddistributionteamsmadesuretodeliverthegoodsinJune2012despitedisastrousroadconditionsinWhitehorse,YukonTerritory.HeavyrainsandmudslideshadwashedoutthenorthernendoftheAlaskaHighwaycuttingoffaccesstolocalroadsandhighways.Afterafewdays,theshelvesatourExtra FoodslocationinYellowknifeandtheReal Canadian Superstore location in Whitehorse were almost bare.

ColleaguesatthestoresandatourEdmontonandFreeport(Calgary)distributioncentresrespondedquickly,coordinatingdeliveryofeightloadsofperishables,drygroceriesandsuppliesviaHerculesaircraft.Colleagueswentonhighalerttopreparethestores’orderforpickup.Fromthere,theWesttransport team partnered with outbound transport carriers to drive the loads to Watson Lake, a town justoutsideoftheaffectedarea,whereproductwascross-dockedontotheaircraftandflowndirectly to Whitehorse.

Expert AdviceTo ensure our PC Blue Menuproductsofferhealthierchoiceslikelowerfat,lowercaloriesorhighfibre,wehaveateamofnutritionresearchers,registereddietitians,nutritionistsandproductdevelopers.Dr.DavidJenkins,ourkeynutritionaladvisor,isaProfessorandCanadaResearchChairinNutritionandMetabolisminthedepartmentsofNutritionalSciencesandMedicineattheUniversityofToronto,andDirectorofClinicalNutritionandRiskFactorModificationatSt.Michael’sHospital.Heisworld-renownedforhisresearch on the potential of diet to prevent and treat chronic diseases, primarily heart disease, cancer anddiabetes.Hisstudieshavefocusedontheglycemicindexoffoods,includingtheuseoflow-glycemicindexdietstotreatdiabetes.Dr.Jenkinsisalsostudyingthedietaryportfoliooffoodswithcholesterolloweringactions(soy,viscousfibres,oats,barley,plantsterolsandnuts),demonstratingthattheright dietcanlowercholesterolaseffectivelyasfirst-generationcholesterol-loweringmedications.

WehavemadeitaprioritytoreflectCanada’sevolvingethnicdiversity in the products we sell, the people we hire and the workplace culture we create.

45% of management positions are held by women

Five Loblaw executives received Women of influence distinction

named one of Canada’s best employers for new Canadians and one of Canada’s best Diversity employers

We now offer 101 T&T brand products

Launched Sufra, our new control brand line of Halal products


Reflect Our nation’s Diversity


RefleCT OuR naTiOn’S DiveRSiTy

FoodsfromAroundtheWorld

Wecontinuallyexpandourrangeofnewanduniqueproductsthatreflectournation’sevolvingculturalmosaic.Wewanttogiveourcustomersthebestselectionofproductsthatreflectthetaste,qualityand traditions from their home countries around the world.

In2012,ourmulticulturalmerchandisingteamexpandedthedistributionofAsian,SouthAsianandCaribbeanproductsinourstores nationally. They also worked closely with select stores in theGreaterTorontoAreatoenhanceourethnicproduceofferings,addingitemssuchasAsiangreens,okra,spicemangos,yellowyams,breadfruit,JuneplumsandcutJamaicanpumpkin.

We currently offer 101 T&T control brand products in all T&T Supermarketlocationsandwewillbegintooffer33T&T products in select Loblaw banner stores nationally in early 2013. The broad array of authentic Asian products that comprises our T&T product lineincludesdrygroceryandfrozenfood,rangingfromaloedrinks,Koreanbarbecuesauceandpineapplecaketofrozenmochi,edamameanddumplings.

Additionally, we launched our new control brand line of Halal products, called Sufra,whichoffersbothfrozenandprocessedchicken items. We also expanded our proprietary Asian Rooster BrandandSouthAsianSurajcontrolbrandassortmentsto35and 89products,respectively.

Storetrainingwasenhancedwiththepublicationofanonlineinformationguidetoeducatestorecolleaguesonethnicholidaysandhowtohighlightholiday-relatedcategoriesandfoodsintheirstores.Thepurposeoftheguideistohelpcolleaguesbetterunderstandandcatertotheirmulticulturalcustomersbyfocusingoncustomers’needsandexpectationsandheighteningtheirshoppingexperience.

Inclusive Workplace

Eachyear,westrivetomakeourworkplaceamorewelcomingandinclusiveplaceforpeopleofdifferentethnicities,ages,abilities,orientations and skills. Here are some of the initiatives implemented in 2012:

• KathyMartin,LoblawSeniorVicePresidentofHumanResources,participatedinafederalgovernmentpanelthatwastaskedwithidentifyingemployerbestpracticesandbarrierstohiringpersonswith disabilities. The panel met with more than 200 Canadian employers and the results of their study identified the need for moreeducationandawarenessamongemployersaswellastheopportunitiesforimprovementingovernmentandcommunityagencysupportprograms.Aspectsoftheworkwillcarryoninto2013withtheoverallobjectivetogetCanadianemployerstohiremore persons with disabilities.

• ThankstoanideathatstartedinourReal Canadian Superstore locationsinWesternCanada,wepilotedthe“ISpeak”programinwhichcolleagues’firstlanguagewasidentifiedontheirnametagssothatcustomerswouldhavetheoptionofusingtheirpreferredlanguage.Theprogramwasahugesuccessandwehavesincerolled it out in select Real Canadian Superstore and Loblaws locationsinOntario.Todate,theprogramhasbeenimplementedin183stores.

• WeadvancedourpartnershipswithorganizationslikeCareerEdge,whichsupportspeopleinspecificdemographicsfindemploymentandintegrateintotheCanadianworkplace,oftenthroughpaidinternships.

• Thewomen@Loblawinitiativecontinuedtogrow,with120womenandmenattendingtheannualconference.In2012,theconferenceincludedabrainstormingsessiononbusinessimprovement ideas.


Women in Leadership

Forthepastseveralyears,wehaveworkedtoincreasethenumberofwomeninleadershippositionsatLoblaw.Todate,45%ofmanagementpositions and above are held by women. Here are some of their stories:

Laura BeecheyStore Manager,

Zehrs 579, ontario

LastyearIcelebratedmy25thanniversarywithLoblaw.Ibeganmy

careerasapart-timeemployeeatthelocalnofrills store in Brantford, Ontario,andhaveworkedinseveraldifferentdepartmentsfromfront-endtoofficeclerk,togroceryovernightcrewtodepartmentmanager.

I am fortunate to have had several mentors in the Company who sawsomethinginmeandinvestedthetimetotrainandmentorme.Ifirmlybelievethatspendingtimewithcolleagues–coachingandmentoringthem–isthewaytobuildourbusiness.

In my role I am responsible for all assets within the four walls of my store.Idomybesteverydaytoprovideastrongsupportsystemformycolleagueteambecausehappycolleaguesgiveyoutheirallandare inspired to do their best every day.

OneofmygreatestachievementsatLoblawwasbecomingamember of the Inclusion Council. As a diversity champion, I am very passionateaboutdevelopingfemalecolleaguestowardsbecomingfutureleaders.IparticipatedinworkingsessionsalongsideotherfemalestoreandassistantstoremanagerswithintheCompanytoshareideas,challengesandopportunities.Thenextstepistoorganizethefirst-ever“WomenatZehrsDay”in2013asawaytoshare our feedback from those sessions with senior leaders at Loblaw.

CathyMuzzolini

District Manager, Real Canadian

Superstore,

british Columbia

IstartedworkingforLoblawpart-timeasacashierwhileattendingcollege.Ihadagreatteamofcolleaguesandreallyenjoyedinteractingwithcustomers.Iwasofferedadepartmentmanagerpositionandsoonaftertheassistantmanagerposition–Iwas21atthetime.IgottomanagemyveryfirststoreinCoquitlamandthenmovedontoDistrictManagerwhereIcurrentlyoversee six Real Canadian Superstore locations in the province.

MycareerwithLoblawspans22years.TheCompanyhasgivenmetheopportunitytosharemyknowledgeandexperiencewithmyteamtohelpinspirethemtogetbettereveryday.Itissoimportanttoinvestincolleagues–tosupportthemontheirjourneyandprovidethemwiththerighttoolstodeveloptheirskillsandtalents.Loblawofferssomanygreatprogramsandincentivesatstoreleveltoengageandempowercolleagues.

OnethingIamreallyproudofisbuildingagoodrapportwithmyteambasedonrespectandunderstanding.Managersarefrontandcentreinalltheday-to-dayactivityandit’simportanttorecognizetheirideasandopinionsalongwiththeirsuccesses.

MoniqueSimardDistrict Manager, Maxi and Maxi & Cie,

Quebec

IbeganmycareerwithLoblawasastoremanagerinJonquière,Quebec,17yearsago.Iwasthenpromoted

toDistrictManagerandcurrentlyoversee14Maxi and Maxi & CiestorelocationsintheSaguenay-Lac–Saint-Jean,Côte-Nord,Chibougamau,andQuebecregions.

I am a passionate person and, every day, I share my passion with my team.Imakeitmymissiontopromoteourregionalproducts,andtomakesurethatcolleaguesgettoknowoursuppliersandcustomers’needsandthattheygetcreativewithmerchandisinglocalproductsin-store.IbelieveinopencommunicationandmentorshipbecauseIwanttoinspiremyteamandmaximizetheirpotentialtohelpbuildthenextgenerationofleaders.

Loblawhasalwayssupportedmeandgivenmetheconfidencetodomyjobanddoitwell.I’mveryproudtoworkforacompanythatisinnovative,constantlyevolvingandtakingactiontoremainthebestinitsfield.Thatissomethingthatkeepsyouloyalandbringsoutthebestinyoueveryday.Moreimportantly,knowingthatmysuperiorstrustmeandappreciatemyworkisalsoverymotivating.

Crystal TriderGeneral Manager,

Lakeside Distribution

Centre, nova Scotia

IbeganmycareerwithLoblawfiveyearsagoasGeneralManagerforDistributionOperationsinHalifax,NovaScotia.MyteamandIareresponsiblefordistributingdrygrocerygoodstoallLoblawbannerstoresinAtlanticCanada.Workinginadistributioncentre, we may not interact directly with customers; however, we are an integralpartofthebusinessandweareresponsibleforgettingproductsto stores on time to meet the needs of our customers.

It’sgreattoworkforacompanythatacknowledgesitscolleaguesandprovidesthemwiththerighttoolstoengageandinformthemaboutthebusiness.Oneofthosetoolsisourdailymorninghuddle.ThehuddleshelpbringteamstogethertosharestoriesabouttheCompany,businessannouncements,producthighlightsinourflyersand Insider’s Reports,upcomingprograms,etc.Toolssuchasthesearecriticaltoouroperationastheyhelpconnectmycolleagueteamtothebiggerpictureandhelpthembetterunderstandtheirroleandhow it impacts the overall business.

Iamalsoproudoftheworkwedoatdistributioncentrestogiveback to our local communities. We support a variety of environmental initiativesthroughourcommunitystewardshipprogramssuchastheGreatCanadianShorelineCleanup.WealsoraisefundsforlocalcharitiesandorganizationsincludingPresident’s Choice Children’s Charity.Distributioncentres,likeourstores,areactivelyengagedanddedicatedtomakingapositivedifferenceinourcommunities.

RefleCT OuR naTiOn’S DiveRSiTy / The Way We DO BuSineSS



Diversity Champions in ActionOurdiversitychampionsimplementedseveralgrassrootsinitiativestosupportourgoalofbeinganinclusiveanddiverseplacetowork.Theireffortsincludedconductingfocusgroupswithfemalestoreleaderstobetterunderstandthebarriersandopportunitiesforwomenworkingintheretailindustry,developingacolleaguesurveyfocusedontheexperienceofourlesbian,gay,bisexualandtransgendercommunity,and,inAtlanticCanada,partneringwithacommunityorganizationtoimproveemploymentand accessibility for people with disabilities.

PrideatWorkCanadaLoblawisthefirstCanadianfoodretailertojoinPrideatWorkCanada,anon-profitorganizationdedicatedtoimprovingtheclimateofinclusivenessforlesbian,gay,bisexualandtransgender(LGBT)colleaguesintheworkplace.OurinvolvementwithPrideatWorkCanadaallowsustobetterpromoteapositiveenvironmentforcolleagueswhoidentifywiththeLGBTcommunity.Italsobringsaccesstoseminarsandnetworkingevents.Pleasevisitprideatwork.catolearnmore.

Women of InfluenceWewerepleasedtolearnthatfiveofourseniorleaderswerehonouredbytheadvocacygroupWomenofInfluence:SarahDavis,ChiefFinancialOfficer;JudyMcCrie,ExecutiveVicePresident,HumanResourcesandLabourRelations;KathyMartin,SeniorVicePresident,HumanResources;JocyanneBourdeau,ExecutiveVicePresident,Maxi and Maxi & Cie;andNanOldroyd,VicePresident,HumanResources,Conventional.

TheseleaderswererecognizedasWomenofInfluence’s2012CanadianDiversityChampionsfordemonstratingexcellenceintheareasofsponsoringandmentoringseniorexecutivewomenandadvancingwomeninbusiness.TheywerealsorecognizedforleadinganddevelopinginnovativediversityprogramsacrossCanada,championingdiversityintheworkplaceandcontributingsignificantlytothoughtleadership and inclusion.

WefirmlybelievethatLoblaw’ssuccesshingesontheideas,talentsandcontributionsofourcolleagues.Itiscriticalforustoengageourcolleaguesandignitetheirpassionsfortheirwork,theircommunities and the millions of people they interact with every day. Opencommunication,rewardsandrecognition,ongoinglearning,asafeandenergizingworkenvironment,andastrongcommitmenttocorporatesocialresponsibilityhelpusachievethesegoals.

named one of Canada’s top 100 employers

named one of Canada’s top employers for young people

received the Défi employeurs inspirants award, recognizing the most inspiring employers in Quebec

reduced the number of workplace accidents by 52% over the past five years


Be a great place to Work

Be a gReaT plaCe TO WORk / OuR COlleagueS


OurColleagues

EngagingColleaguesIn2012,werefreshedourcorporatevaluesafterconsultingwithmorethan2,000colleaguesacrossthecountryonwhoweare,what’simportanttousandwhatmakesusuniquelyLoblaw.Theredefinedshared values are:

CUSTOMERSmattermost WeRESPECTeachother GettingBETTEReveryday CareforCOMMUNITYandenvironment

Toturnthewordsintoaction,andbegintoliveoursharedvalues,Loblawexecutivesmetwithcolleaguestodiscusswhatthevaluesmean to us as individuals, teams and the Company as a whole. Our sharedvalueswerealsothethemeoftheannualGreatPlacetoWorkWeek,whichcelebratesallthereasonswhyLoblawisagreatemployer.OneofthemanyactivitieswastheValuesHeroescontestwhichhadcolleaguesawardingleaf-shapedcardstooneanotherfordemonstratingoneofoursharedvalues.Bytheendoftheweek,colourfuldisplayshadsproutedupacrosstheCompanyshowcasingthemanywonderfulwaysthatcolleaguesliveourvaluesdaytoday.

ColleaguesinAction

national Sweater Day

OnNationalSweaterDay,wedemonstratedoursupportforactiononclimatechangebyloweringthetemperatureinourfacilitiesacrossCanadaby3°Cfortheday.Morethan52,000Loblawcolleaguesandfranchiseesfrom666stores,16distributioncentreofficesand10storesupportcentresjoinedintheactionbyputtingonsweaterstostaywarm.NationalSweaterDayisaconservationinitiativeorganizedbyWWFtoraiseawarenessaboutclimatechangeand toeducateCanadianstoconserveenergy.

Great Canadian Shoreline Cleanup

TheGreatCanadianShorelineCleanup,organizedbyWWFandtheVancouverAquariumandpresentedbyLoblaw,isanannualweek-longconservationinitiativethatencouragesCanadianstokeepourwaters clean for the wildlife and communities that depend on them. In2012,morethan1,000Loblawcolleaguesandfranchiseesfrom46stores,12distributioncentresandeightstoresupportcentresshowedtheirsupportbycleaningup87.1kilometresofshoreline.

raising Funds for President’s Choice Children’s Charity

As part of the President’s ChoiceChildren’sCharity(PCCC)two-weekcolleaguecampaign,fourLoblawexecutivesalongwithourPresidentwerechallengedtospendthedayinawheelchairtoraisefundsforPCCC.Theoriginalgoalwastoraise$1,000eachoverthecourseofthetwoweeks;however,theteamsurpasseditsgoalandraisedmorethan$190,000.OnSeptember17,allfiveexecutivescompletedthechallengebyspendingthefullworkday in a wheelchair.

Smart Commute

AcommuterprogramatourcorporateheadofficeinBramptonhasbeenabighitwithcolleagues.TheprogramissetupinpartnershipwithSmartCommuteBrampton-Caledon–apublic/privatepartnershipdedicatedtoenhancingthemobilityofthelocalworkforce.SmartCommuteworkedwithustoassessthetransportationneedsofourcolleaguesandtodevelopaplanthatincludedimplementingapreferentialcarpoolparkingsystem,providinganonlinetoolforcolleaguestoregisterandsearchforpreferredcarpoolpartners,anddeliveringmarketingcampaignstogenerateinterestintheprogram.Oneofthemanybenefitsoftheprogramisthereducedimpactontheenvironmentandonourcolleagues’wallets.In2012,630LoblawcolleaguesregisteredontheLoblawCarpoolZonewebsite(a22%increaseovertheprioryear)andtherewere122activecarpools.Theresult–56,229single-occupancyvehicletripsavoided,3,935,239fewervehiclekilometrestravelledand854,458.46tonnesofgreenhousegas(GHG)emissionsreduced,aswellas$2,539,583insavingsforcommuters.

Be a gReaT plaCe TO WORk / TRaining anD DevelOpmenT


TrainingandDevelopment

Webelievethatcontinuouslearningisimportantforallofourcolleagues.Itisanimportantsourceofmotivation,stimulationandjobsatisfaction.

AcceleratingLeadershipWeconsolidatedallofourleadershiptraininginitiativesunderBestLeadership in 2012. As part of Best Leadership, approximately 126colleaguesinmanagementrolesparticipatedintheManagerReadypilot.Thisprograminvolvesafour-hoursimulationinwhichparticipantsexperienceadayinthelifeofamanager,dealingwithvariouschallengingsituations.Attheendoftheexercise,theyaregivenareportontheirperformanceinareassuchascollaboration,communicationskills,managingexpectationsandbehaviours,andmeetingcustomerneeds.Developmentopportunitiesareincorporated into their individual professional development plans.

FreshEdgeisaninnovativeprogramforassistantstoremanagersandstoremanagersdesignedtogivethemunparalleledproductknowledgeinallofourfreshfooddepartments.Duringtheeight-weekprogram,participantsrotatethroughtheproduce,bakery,meat, seafood, cheese and deli departments. They learn how to handle, cut and showcase the products in that department and how todrivesalesthroughexemplarycustomerservice.TheyalsotakecookingcoursesthroughPresident’s ChoiceCookingSchoolsandvisitfactoriesandgrowersthatsupplyourstorestogainabetterunderstandingofthesupplychainprocess.Oncetheprogramiscompleted,participantssharetheirknowledgeandkeylearningswithstorecolleaguesineachfreshdepartment.Forty-nineassistantstoremanagersandstoremanagersparticipatedintheprogram in 2012.

TrainingandDevelopmentIn2012,wetrained15,123colleaguesatour16LearningCentres,whicharefullyequippedtrainingfacilitiesconnectedtoastore.Additionally,colleaguescompleted50,135e-learningcoursesthroughtheLoblawVirtualLearningCentre,andattended11,289instructor-ledsessionsthroughourTrainingandDevelopmentdepartment.Mostofthee-learningcoursesfocusedonSAPtrainingforcolleaguesaffectedbyourimplementationofanewsupplychainmanagementsystem.Anotherareaoffocuswascorecompliance–thatis,trainingonfoodsafety,firstaidandpowerequipmenttoensurethatthefoodwesellissafeandthatourcolleaguesarequalifiedtoperformtheirjobssafelyandfollowproperprocedures.

In2011,weintroducedIndividualDevelopmentPlans(IDP)aspartofcolleagues’annualperformancereviews.IDPsconsistofformaltraining,actionlearningandcoachingtohelpcolleaguesachieveorprepareforthenextstageintheircareers.In2012,99%ofIDPplanswerecompletedbycorporatestoremanagersand98%werecompletedbyseniorstoresupportcolleaguesindirectorroles and above.

HealthandSafety

Onourpathtozeroaccidents,wesetagoalofreducing workplaceaccidentsby10%peryear.Since2007,whenwestartedstandardizingsafe-operatingproceduresandintroducedmorerigorousreportingsystems,wehavereducedaccidentsby52%. In2012,weachieveda2.3%reductioninaccidentsnationally, fallingshortofourannualtarget.Significantinjuryreductions, were,however,realizedinourdistributioncentres,with13.3% fewer accidents than in 2011.

Werefreshedourfirstaidprogramandremindedcolleaguesthateach facility has several first aid attendants who can assist in the eventofaninjury.Firstaidprocedureswerediscussedatcolleaguedaily huddles, attendants were introduced, and first aid wallet cards weredistributedasareferencetool.Allfirstaidinjuryreportingwasmovedonlineasameansofsimplifyingtheprocess.

WealsodevelopedanationaltrainingprogramforJointHealthandSafetyCommitteemembersateachfacility,whichwillberolledoutin2013.Theprogramcoverstopicssuchascommitteememberrolesandresponsibilities,safetyhazardidentification,workplaceinspectionsandaccidentinvestigationprocedures.

Be a gReaT plaCe TO WORk / The Way We DO BuSineSS



LoblawColleaguesLendaHandItwasamemorabledayforLoblawcolleaguesandresidentsofChatham-Kent,Ontario,whentheysetanewGuinnessWorldRecordforassembling1,053hamburgersinonehour.Chatham-Kentwasthegrandprizewinnerofthe2012President’s ChoiceBBQTowneventafterreceivingthemostvotesonlinefromtheircommunity.Inadditiontothehamburgerassemblychallenge,thegrandprizeeventincludedafreebarbecuefor8,700anda$25,000donationtotheChatham-KentStudentNutritionProgramonbehalfofthe President’s Choice Children’s Charity.

60-DayWellnessProgramOur60-DayWellnessChallengeisdesignedtoempowerandsupportourcolleaguestoliveahealthierlifestyle.In2012,weexpandedthechallengetocolleaguesatallstoresupportcentres,distributioncentres and Loblawsbannerstores.Theresponsewasoverwhelming–participantnumbersgrewfrom854in2011to2,303in2012.Inteamsoftwototen,participantsrecordedtheirweeklyweightlossandactivityminutesonlineinordertocompeteforprizes.Intotal,therewere354teamswhosememberslost acombined5,381poundsoverthe60-dayperiodandloggedmorethan3.3millionactivityminutes.


TargetsandAchievements

RespecttheEnvironmentTaRgeTS aChievemenTS pROgReSS

WaSTe ReDuCTiOn

Reducewastefromcorporatestoresineachregionbyanadditional5%relativeto2011results:Atlantic,72%;Quebec,62%;Ontario,72%;West,53%.

Divertedcorporatestore-generatedwasteasfollows:Atlantic,66%;Quebec,60%;Ontario,74%;West,54%.

Achieveanaverageof80%wastediversionfromlandfillatdistribution centres.

Diverted81%ofdistributioncentre-generated waste nationally.

Achieveanaverageof80%wastediversionfromlandfillatstore support centres.

Diverted76%ofstoresupportcentre-generated waste nationally.

Expandorganicwastediversionintwoadditional distribution centres.

Expandedorganicwastediversionprogramsineightdistribution centres.

IncreasetheuseofReusablePlasticContainers(RPC), usedforshipping,to19millioncases.

IncreasedtheuseofReusablePlasticContainers(RPCs)to14.8millioncases.Wedidnotachieveourtarget;however,wehavequadrupledtheuseofRPCssince2011.

Divert900,000poundsofplasticplantpotsandflatsfromlandfill,tobringtotalto5millionpoundsdivertedsinceinceptionofournationalrecyclingprogramin2008.

Divertedapproximately1,135,000poundsofplasticplantpotsandflatsfromlandfillin2012,bringingourtotalto5,235,000poundsofplasticplantpotsandflatsdivertedfromlandfillsincetheinceptionofournationalrecyclingprogramin2008.

Rolloute-stubs(paperlesspaystubs)forcolleaguesatcorporate stores and distribution centres.

Programrolledouttoallcolleaguesandfranchiseesnationally,eliminatingtheneedtomailapproximately1,395,000paperpaystubsannually.

fOOD WaSTe

Monitor and assess perishable food waste in corporate stores and distribution centres.

Collaborated with industry associations in Canada and the U.S.A.tolaunchinitiativestoreducefoodwasteinbothoursupplychainandcorporatestores.Targetswillbedeveloped in 2013.

Pilotperishablefooddiversionprograminpartnershipawithfoodrecoveryprograms.

PrograminplacewhereselectcorporatestoresintheGreaterTorontoAreaarepartneredwithSecondHarvest to donate fresh perishable food items.

WorkcloselywiththeLoblawChairinSustainableFoodProduction,Dr.RalphMartin,attheUniversityofGuelphtoidentifyanddevelopknowledgeaboutkeyissues/trendsaround food sustainability.

The Chair is focused on sustainable food production in Canada.Researchareasincludereducingfoodwaste, energyuse,andgreenhousegasemissionsinagriculture.

TaRgeT meT TaRgeT almOST meT OR On TRaCk TaRgeT nOT meT OR aT iniTial STageS



TaRgeTS anD aChievemenTS / ReSpeCT The enviROnmenT

TaRgeTS aChievemenTS pROgReSS

paCkaging ReDuCTiOn

Continueprogresstowardreductionofnon-recyclablepackagingoncontrolbrandproductsby50% (equivalentto5,000productsbyyear-end2013.

Sinceimplementingthetargetin2009,wehavereduced non-recyclablepackagingin511controlbrandproducts.

Continueprogresstowardoverall5%reductioninpackagingoncontrolbrandproducts(equivalentto11.8millionkilograms)byyear-end2015.

Reducedpackagingin98controlbrandproductsbymorethan104,000kilogramsin2012.

Sinceimplementingthetargetin2009,wehavereducedpackagingin205controlbrandproductsby4,056,022kilograms.

Testnewtypesofrecyclablepackagingandworkwithmunicipalitiesandregionalrecyclerstoacceptabroaderrangeofpackagingforrecycling.

In2011,wemadeasignificantimpactbyworkingwiththemanufacturingandretailindustriestoconverttopolyethyleneterephthalate(PET)clamshellsforproductssoldinourstores.

Thisyear,weranexclusivetestswiththeregionalmunicipalityofYorkoncompostableshoppingbagssoldatcheckout.

Setlevelsofpost-consumercontentbymaterialtypeforallcontrolbrandpackaging.

Researchedthefeasibilityofeachmajormaterialtype;however,specifictargetswerenotsetduetolackofavailability of approved material content. As part of our sustainablepackagingdecisiontree,wehaveincorporatedconsiderationsforpost-consumercontenttodrive increased use.

Advocateforanationalindustrystewardshipstrategy. ParticipatedintheestablishmentoftheGrocers/ManufacturersCollaborativeinpartnershipwithgroceryretailersandfoodvendorsinCanada.TheCanadianStewardServiceAgency,asubcommittee,isdedicatedtoproductpackagingandstewardshipfeesandtaskedwithdevelopinganationalindustrystewardshipstrategyinCanada.

eneRgy ReDuCTiOn

Reducetotalenergyconsumptionby3%persquarefoot inexistingcorporatestores.

Reducedenergyconsumptionby3.1%persquarefoot.

Completelightingretrofitsin80corporatestores across Canada.

Completedlightingretrofitsin127corporatestores.

Implementsolarpanelprojectsin10corporatestores in Ontario.

Todate,wehavefoursolarpanelprojectsincommercialoperationwith12projectsunderconstruction.




TaRgeTS anD aChievemenTS / ReSpeCT The enviROnmenT


Develop business case for the use of alternative refrigerationsystemstoreducesyntheticrefrigerantuse in corporate stores.

PlaninplacetoinstallatranscriticalCO2refrigerationsystemin a new corporate store in 2013.

Completelightingretrofitsinthreedistributioncentres across Canada.

Completedlightingretrofitsinsixdistributioncentres.

fuel ReDuCTiOn anD fleeT effiCienCy

Addfournon-diesel-burningreefertrailerstoourfleet. Targetedactivitiesnotimplementedin2012.Testingwillcommence in 2013.

Addnon-diesel-burningequipmenttoourtruckstohelpreduceidling.

Allsleepercabspurchasedin2012areequippedwith non-diesel-burningauxiliarypowerunits(APUs)tohelpreduceidling.

Increasethenumberofloadsbyrailby20%. Shipped22,907loadsofproductbyrail.WewereshortofourtargetduetotheCPrailstrikeinthefirstquarteroftheyearwhichimpactedourprogress.

Reducingthecarbonfootprintinourfleetisapriorityandwewill continue to use rail as much as possible to ship products to distribution centres.

Replace75%ofourtransportfleetwithnewertrucks thatcomplywithU.S.EPA2010emissionstandardsby year-end2015.

Ontracktoachievetarget.Currentlywehavereplaced59%ofourtotaltransportfleetwithnew,moreefficienttrucks.

Reducethecarbonfootprintinourfleetby:

• Expandingtheuseoflong-combinationvehicles(LCV) inOntarioandQuebec

• Increasingourcubeperload

• IncreasingthenumberofLift-a-DecksystemsinOntarioandQuebec

• Increasingourbackhaultripsby15%

• Reducingdriveridletimeby20%relativeto2011.

Madegreatstridesinreducingthecarbonfootprintinourfleet;forexample,we:

• DoubledthenumberofLCVvehiclesinOntarioandQuebec–fourvehiclesintotal

• Increasedourcubeperloadbyshippingmorethan19.8millionmorecasesofproductin12,476fewerloads

• AddedLift-a-Decksystemsin10trailerstoincrease cube volume

• Increasedourbackhaultripsfrom163,379tripsin2011to189,409in2012

• Reduceddriveridletimeto7.9%,a12%improvement vs. 2011.



SourcewithIntegrityTaRgeTS aChievemenTS pROgReSS

lOCal SOuRCing – fReSh

Drivethe“CanadianFirst”buyingstrategythroughout our business.

Ourfreshcategoryteamsareonboardwithour“CanadianFirst”buyingstrategyandworkwithourgrowersandvendorstoprocurelocalandregionalfreshproducts.

Source30%oftheproducesoldinLoblawstoresfromlocalCanadiangrowers.

Sourced31%ofproduceinourstoresfromCanadiangrowers.

Sourceupto40%oftheproducesoldinLoblawstoresfromlocalCanadiangrowersduringthepeakgrowingseason.

Sourcedupto40%ofproduceinourstoresduringthe peakgrowingseason(AugustandSeptember)fromCanadiangrowers.

Source100%ofallfreshbeefandporkfromCanadabytheendof2012(excludingsaleitemsandproductssoldinselectharddiscountstores).

Sourced100%offreshporkfromCanadawiththeexceptionof sale items and products sold in select hard discount stores.

WealsoexpandedourOntarioCornFedBeefprogramintheprovince,from150storesin2011to241storesin2012.Morethan500farmersinOntariosupplyuswiththisproduct.

Strengthenrelationshipswithlocalvendorsandgrowersacross Canada.

Continuedtoworkwithlocalvendorsandgrowerstoexpandourassortmentoflocalproducts.Weheldannualmeetingsineachregionalongwithon-farmreviewsandfeedbacktosupport and empower these vendors to supply our business for years to come.

animal WelfaRe

Collaborate with vendors, industry associations, animal welfareexpertsandmulti-stakeholderforumssuchastheNationalFarmAnimalCareCouncil(NFACC).

LoblawisamemberofNFACC.Weareactivelyengagedwithmemberstore-evaluateexistingon-farmanimalcodesofpractice,withthegoaltodevelopnewcodesofpractice in Canada.

WearealsoworkingwiththeRetailCouncilofCanada,foodservicecompaniesandkeyvendorstofindsolutionstoconcernssurroundingtheuseandtypesofcagesinporkandeggproduction.

Supportindustrysectorsinthedevelopmentofanimalwelfarestandardsandencouragetheuseofemergingalternative practices, particularly alternatives to gestationcrates.

Thistargetremainsaworkinprogress.Weareworking with vendors, industry associations and experts on animal welfareandbestpractices,inparticularonphasingoutgestationcrates.

Encourageindustryassociationstofurtherresearchandevolvehenwelfareandhousingsystems.

Engagedincontinuousdialoguewithvendorsandindustryassociationsonalternativestocagedsystems(i.e.,enrichedhousingandfree-runenvironments).




TaRgeTS anD aChievemenTS / SOuRCe WiTh inTegRiTy


Continue to work with industry to transition all President’s Choiceeggstocage-free.

Our President's ChoicelineofeggsiscomprisedofPresident's Choice, PC Organics and PC Blue Menu brands.

Our President’s Choice and PC Organicseggsaresourcedfromlayinghensraisedinfree-runenvironments.

pRODuCT SafeTy anD TRaCeaBiliTy

StrengthenrelationshipsandexpertisewithexistingandnewcontrolbrandvendorsbypilotingtheLoblawAcademytrainingprogram.

PilotedtheLoblawAcademyinthesecondquarterof the year.

More than 100 control brand vendors are enrolled in the Academywiththeobjectiveoffurtheringtheirunderstandingofourfoodsafetyandqualityexpectationsanddevelopingtheir professional and technical skills in the area.

Achieve100%GlobalFoodSafetyInitiative(GFSI)certificationforallproduceandgrowers.ThisincludesCanadaGAP’sOn-FarmFoodSafetyprogram.

Targetremainsaworkinprogress.Wearefocusedonworkingwithourcontrolbrandproducegrowerstoachieve100%GFSIcertification.

SuSTainaBle SeafOOD

WherethereisaMarineStewardshipCouncil(MSC)fishery,convert,orhaveanactionplantoconvert,alloutstandingcontrolbrandproductstoMSCsources.

Actionplaninplacewhichappliestoallvendorssupplyinguswithseafoodproducts–fresh,frozenandcanned–alongwithproductsthatcontainseafoodasaningredient(e.g.,supplements,petfoodandgroceryitems).

EstablishMSCchain-of-custodycertificationforourfreshseafood counters and distribution centres.

Planinplacetocertifyalldistributioncentresandstoreswhich we will put into action in 2013.

Continuetoestablisharesponsibleaquaculture procurement practice:

• BecomeamemberofIFFO–thetradeassociationforthemarineingredientsindustry–andbeginconversionto100%fishmealandfishoilcertifiedagainsttheIFFOResponsibleSupplystandardinallourcontrolbrandaquacultureprograms.

• LaunchAquacultureStewardshipCouncil(ASC)certifiedWiseSource Tilapia.

• LoblawhasbecomethefirstretailmemberofIFFO.WeareworkingtowardallfarmedfishtoberaisedusingfeedthatonlycontainsfishmealandfishoilthatmeettheIFFOGlobalStandardandCertificationProgrammefortheResponsibleSupplyofFishmealandFishOil.

• WehavesignedalicensingagreementwithASCtoenablethesaleofcertifiedresponsiblefarmedfishandwilllaunchWiseSource Tilapia in stores in early 2013. As a result, we willbethefirstfoodretailerinNorthAmericatointroduceASCcertifiedproductsinourstores.



TaRgeTS anD aChievemenTS / SOuRCe WiTh inTegRiTy


Continuetoworktowardappropriatesolutionstomanagingspeciesatriskinpartnershipwiththefishingindustry,WorldWildlifeFund(WWF)andourindependentscientificadvisor.

ActivelyengagedwithWWFandourscientificadvisortoidentifyandmanageatriskspecies/stocks.

We temporarily delisted American red snapper in our stores andcontinuedoursupportoftheFisheriesImprovementPlan(FIP)forthe3PsSouthernNewfoundlandAtlanticcodstock.Additionally,wesourcedchain-of-custodyandMSCcertifiedsourcesforChileanseabassandwillreintroducethe product in select stores in 2013.

Completevendorquestionnairetoinformoursourcingdecisions,includingidentifyingremaining“atrisk”species/stocksandvendorsunableorunwillingtomeetourcriteria.

Collecteddetailedsourcingdatafromsomeofourlargestseafood vendors. More work needs to be done and we will continuetoengageremainingvendorstodrivecompletion in 2013.

palm Oil

JoinRoundtableonSustainablePalmOil(RSPO). Completed application. Membership to commence in January2013.

Conduct an inventory of all control brand products. Startedcollectingdataandmetwithinternalandexternalstakeholders to decide next steps. Inventory to be completed in 2013.

Engagecontrolbrandvendorsonoursustainablepalm oilobjectives.

Targetedactivitieswerenotimplementedin2012.Weareworkingtodevelopaninternalpolicyandwillengagevendors in 2013.

Sourcepalmoilcontainedinallcontrolbrandproductsfromsustainablesourcesbyyear-end2015.

Ontracktoachievetargetbyyear-end2015.

papeR pROCuRemenT pOliCy

Developsustainablepaperprocurementguidelinesforcorporate operations.

Guidelines in place. All copy paper used internally throughoutourfacilitiesisForestStewardshipCouncil (FSC)certified.



MakeaPositiveDifferenceinOurCommunityTaRgeTS aChievemenTS pROgReSS

President’s ChoiCe ChilDRen’S ChaRiTy

Grant $10 million to families of children with disabilities across Canada.

President’s ChoiceChildren’sCharitygranted$10,062,406 tomorethan1,900familieswithchildrenwithdisabilitiesacross Canada.

Grant$2.75milliontonutritionprogramsacrossCanadathataimtofightchildhoodhunger.

President’s ChoiceChildren’sCharitygranted$2,895,000tosupportmorethan2,900nutritionprogramsprovidinghealthy breakfasts, snacks and lunches to children across Canada.

gReening OuR COmmuniTieS

InpartnershipwithWWF,continuetogrowthreeprimaryprograms–NationalSweaterDay,theGreatCanadianShorelineCleanupandGreenCommUnitySchoolGrants.

InpartnershipwithWWF,increasedLoblawcolleagueandfranchiseeparticipationinNationalSweaterDayandtheGreatCanadianShorelineCleanupyear-over-year.

Since2009,throughtheimplementationofthesethreeprograms,amongothers,morethan1.2millionCanadianshave taken direct positive action on the environment.

healThy aCTive kiDS

Continuetocontributetoreducingtheincidenceofchildhoodobesitybysupportingnational/localprogramsencouragingactivelivingandhealthyeatinghabits.

Donatedmorethan$607,000toavarietyoforganizationsacrossCanadaincludingYMCAsinCanada,Canadian 4-HCouncil,Start2Finish,’NSTEPandLaTabléedesChefsinQuebec.

Theseorganizationsofferprogramsthatkeepchildrenactiveandteachthemtheimportanceofhealthyeating.

feeDing OuR neighBOuRS

Lead partner with The Conference Board of Canada’s CanadianFoodSummit.

PartneredwithTheConferenceBoardofCanadatoco-chairtheCanadianFoodSummit.Thetwo-dayconferencebroughttogetherfoodretailers,industryrepresentatives,expertsandacademics to discuss food in Canada, with a focus on quality,price,availability,andwaste,andtoexploredevelopmentofaCanadianFoodStrategy.

PartnerwiththeCentreforFoodinCanadaon private standards and food, health and sustainability researchprojects.

PartneredandfundedtheCentreforFoodinCanada’sresearch reports on food, health and sustainability.

Raise$1.2millioninfundsand1.2millionpoundsoffoodforlocalfoodbanksduringourExtra Helping food drives.

Raisedmorethan$1.8millioninfundsandmorethan1.9millionpoundsoffoodduringtheExtra Helping national food drives in 2012.




TaRgeTS anD aChievemenTS / make a pOSiTive DiffeRenCe in OuR COmmuniTy


MakeLoblawcorporatedonationof$250,000toFoodBanksCanada’sNationalFoodSharingprogram.

Donated$200,000toFoodBanksCanada’sNationalFoodSharingSystemwhichenablesFoodBanksCanadatoacquireandsharefoodtosupportlocaleffortstofeedCanadians in need.

Anddonated$50,000tosupportFoodBanksCanada’slongertermmissionofreducinghungerinCanada.

lOCal inveSTmenTS

ThroughmoneycontributedbyLoblaw,andfundsraisedbycustomers,colleagues,franchiseesandtheiremployees’volunteer efforts, continue to support our local communities:

• Raise$14.5millionthroughfundraisingeffortsatstorelevel, which include President’s Choice Children’s Charity, Give a Little, Help a Lotcampaign,andourExtra Helping national food drives.

• Make$5millioninlocalinvestmentsandsponsorships.

Raisedmorethan$25millionthroughfundraisingeffortsatstorelevelandcontributedmorethan$14.5millioninlocalinvestments and store sponsorships.

healThieR fOOD ChOiCeS

RedesignandreformulatePC Blue Menupackaging. PC Blue Menupackagingnowfeatures(+)and(-)symbolsto indicate the product’s nutritional attributes whereby customerscanmanagetheirintakeofomega-3,sodium,fibre,fat,sugar,caloriesandmore.

nuTRiTiOn SCOReCaRD

RolloutGuidingStarsconsumernutritionscorecardinallLoblaws banner stores in Ontario.

RolledoutGuidingStarsin44Loblaws stores in Ontario.

PilotGuidingStarsinonestoresupportcentre. RolledoutGuidingStarsinourcorporateheadoffice.

RolloutGuidingStarsinallremainingstoresby year-end2015.

Ontracktoachievetargetbyyear-end2015.



TaRgeTS anD aChievemenTS / make a pOSiTive DiffeRenCe in OuR COmmuniTy


inTegRaTeD healTh pROgRam SeRviCeS

Addin-storedietitiansto50storesinOntario. 22in-storedietitiansarenowavailablein44Loblaws stores and six Real Canadian Superstore locations in Ontario.

Conduct 1,000 diabetes education sessions in our stores. Since2011,conducted925diabeteseducationsessions in stores.

Conduct65,000cholesterolchecksinourstores. Since2011,conducted58,015cholesterolchecksinourstores nationally.

inTegRaTeD healTh pROgRamS – CORpORaTe WellneSS

Rolloutcorporatewellnessonlineprogramforcolleaguesinall store support centres and corporate distribution centres.

Expandedour60-DayWellnessChallenge(corporatewellnessprogram)toallcolleaguesatLoblaws banner stores inOntarioalongwithstoresupportcentresanddistributioncentres nationally.

ContinuetooffertheEnergyforLifewellnessprogramformanagementteamsinstoresupportcentres,corporatestores and distribution centres.

ConductedtwoEnergyforLifewellnesssessionsformanagementincriticalroles.

SODium

Reducesodiumin200existingcontrolbrandprocessedproductsby16%.

Reducedsodiumin95existingcontrolbrandprocessedproductsbyanaverageof22%.

Additionally,wedeveloped150newcontrolbrandprocessedproductswithsodiumlevelsthatmeetourinternalguidelinesfor responsible sodium content.

Workwithindustry,vendorsandfederal/provincialgovernmentsonnationalstrategiestoreduce sodium consumption.

InpartnershipwithgroceryretailersandfoodvendorsinCanada,collaboratedonnewapproachestoreportingonthisprogressandtoimprovingconsumereducationandawareness about nutrition choices.



ReflectOurNation’sDiversityTaRgeTS aChievemenTS pROgReSS

inCluSiOn

Increasethenumberoffemalestoremanagers. Overallnumberremainedflat.Newandexistingprogramswillcontinuetobeleveragedinordertostayfocusedon this area.

Diversitychampionstoimplementregionalandnationaldiversityprogramsatcorporatestoresandstore support centres.

Diversitychampionsimplementedgrassrootsinitiativestosupportourgoaltobeaninclusiveanddiverseplacetowork.

Initiativesfocusedonwomen,thelesbian,gay,bisexualandtransgender(LGBT)community,personswithdisabilities and ethnicity.

Integrategeneraldiversityandinclusioncoretraininginbothmanagerjobladdersandemployeeorientationprograms.

Rolledoutthe"MayIHelpYou"campaignnationallyinallstores,providingtrainingandinformationtostorecolleaguesand employees to help service customers with disabilities.

LaunchapilotprograminourstoresinWesternCanadainwhichcolleagues'firstlanguagesareincludedonnametags.

RolledoutprograminallcorporatestoresinWesternCanadaandin40storesinOntario.Todate,183storesnationallyhaveimplementedtheprogram.

DevelopandimplementexternalprogramstorecruittargetedcommunitygroupssuchasAboriginals,newCanadiansandpersonswithdisabilitiesbyyear-end2014.

Targetisontrackforcompletionbyyear-end2014.




BeaGreatPlacetoWorkTaRgeTS aChievemenTS pROgReSS

emBeD CORpORaTe SOCial ReSpOnSiBiliTy

Increasecolleagueawarenessofcorporatesocialresponsibility(CSR)by2%.

Achieveda1%improvementscoreacrossallfacilities;however,achieveda2%improvementscoreinour corporate stores.

DevelopandlaunchaCSRcoursethroughtheLoblawVirtualLearningCentreforcolleaguesatstoresupportcentres, corporate stores and distribution centres.

DevelopedtheCSRcoursewhichwillcommenceonlineinthefirsthalfof2013.

aCCeleRaTe leaDeRShip effeCTiveneSS

Launch new Company values. RolledoutnewLoblawvaluesandbehavioursinternallytoallcolleaguesinthesecondquarteroftheyear.

ConsolidatetheBestLeadershipprogramintooneconsistent approach for assessment and development planningacrossthebusiness.

Implementednationalprogramforallcolleaguesinmanagementpositionsandaboveinthesecondquarterofthe year.

LaunchtheFreshEdgeprogramatcorporatestores. OfferedtheFreshEdgeprogramtoassistantmanagersandstoremanagersinallcorporatestores.

healTh anD SafeTy

Reducetotalaccidentsby10%inourstoresupportcentres,corporate stores and distribution centres.

Reducedtotalaccidentsby2.3%nationally,withdistributioncentresrecordinga13.3%reduction.

DevelopanationaltrainingprogramfortheJointHealthandSafetyCommittee.

Programdevelopedandtrainingwillcommenceinthefirstquarterof2013.



RespecttheEnvironment

Waste reduction:

•Achieveanaverageof82%wastediversionfromlandfillatdistribution centres.

•Achieveanaverageof80%wastediversionfromlandfillatstoresupport centres.

•Reducewastefromcorporatestoresineachregionbyanadditional5%relativeto2012results(Ontario,80%;Quebec,63%;West,57%;Atlantic,70%).

•20additionalcorporatestoresinWesternCanadaandQuebectodivertorganics.

•Initiatepilotprogramsinonecorporatestoreandonedistributioncentrewithagoaltoachieve100%diversionfromlandfill.

reduce Food Waste:

• PartnerwithFoodBanksCanadatolauncharetailfoodprogramin 100 corporate stores that will increase donations of surplus food and help reduce food waste.

packaging reduction:

• Implementsustainablepackagingdecisiontreetoreduceoverallenvironmentalfootprintofcontrolbrandpackaging.

• Implementpapersourcingcommitmentasitpertainstopackaging.

• 50%reductioninnon-recyclablepackagingfromcontrolbrandproductsbyyear-end2013.

• 5%packagingreductiononcontrolbrandproductsby year-end2015.

energy reduction:

• Reducetotalenergyconsumptionby3%persquarefootinexistingcorporatestores.

• Completesolarpanelprojectsin40corporatestoresinOntario.

• Installatranscriticalrefrigerationsystemthatusescarbondioxideasthesolerefrigerant,inonecorporatestore.

• Completelightingretrofitsin70corporatestores.

Fuel reduction and Fleet efficiency:

Improve the fuel efficiency of our transport fleet:

• Replace75%ofourtransportfleetwithnewtrucksthatcomplywithU.S.EPAemissionstandardsbyyear-end2015.

• 20%increaseinrailuse.

• 5%increaseinbackhaultrips.

• 5%reductionofdriveridletime.

• Add10non-diesel-burningreefertrailerstoourfleet.

• Addfivenaturalgastruckstoourfleet.

• Introducefour60-foottrailerstoourfleet.

• Install10additionalLift-a-Decksystemsinourtrailers.

Water Footprint:

• Conductawaterfootprintassessmentofouroperations.

2013Targets

2013 TaRgeTS


SourcewithIntegrity

Local:

• Source30%oftheproducesoldinLoblawstoresfromlocalCanadiangrowers.

• Sourceupto40%oftheproducesoldinLoblawstoresfromlocalCanadiangrowersduringthepeakgrowingseason.

animal Welfare:

In 2013, we willmakethefollowingcommitments:

• Freshporksoldin our stores will be sourced from suppliers whohavemadeatransitiontoloosehousingenvironmentsbyyear-end2022.WewillworkwiththeNationalFarmAnimalCareCouncil(NFACC),theporkindustryandgovernmentstoadvancetheupcomingPigCodeofPractice.

• Introduce a new President’s Choicefree-runomegaeggproduct.

paper procurement:

• Implement a sustainable paper procurement commitment for the business.

Sustainable Seafood:

• Source100%ofseafood sold in our stores from sustainable sourcesbyyear-end2013.

• Completeproprietaryvendorquestionnaire to inform our sourcingdecisions,includingidentifyingremaining“atrisk”species/stocksandfisheries/farmsunableorunwillingtomeetour sustainable seafood criteria.

• WorkwithWWFand our scientific advisor to assess all species/stocksagainstoursustainableseafoodcriteria.

• Delist products that do not adhere to our sustainable seafood criteria.

• Create an action planforremainingspecies/stocksthatwehave determined to source conditionally.

• Obtainchain-of-custody(CoC)certification for our distribution centresandmorethan600ofourstoresenablingthesaleofbothMSCandASCcertifiedproductsinourseafoodcounters.

• ParticipateintheGlobalSustainableSeafoodInitiative(GSSI)discussionsonseafoodsustainabilityandeco-labelling.

• Continue to drive consumer awareness of sustainable seafood andbeopenandtransparentaboutourprogressandpolicies.

palm oil:

• Sourcepalmoilcontained in all control brand products from sustainablesourcesbyyear-end2015.

• Create a sustainable palm oil policy and action plan.

• Complete an inventory of all control brand products that use palmoiland/orpalmoilderivatives.

product Safety and traceability:

• Expand Loblaw Academy toremainingcontrolbrandvendors.

• Implementqualityandsafetymanagementsystemsfornon-foodcontrol brand products.

• Implementqualityandsafetymanagementsystemsacrossethniccontrol brand products.

• Achieve100%GlobalFoodSafetyInitiative(GFSI)certificationforallcontrolbrandproducegrowers.

• Develop a consumer foodsafetyeducationprograminstores.

2013 TaRgeTS


MakeaPositiveDifferenceinOurCommunity

Health and Wellness:

• RolloutGuidingStarsinallremainingstoresinOntario (excludingnofrills).

• RolloutGuidingStarsinallstoresbyyear-end2015.

• Conduct200,000patienttouch-points(i.e.,riskassessments,vaccinationsandmedicationreviews).

• Conduct 1,000 community education sessions in stores.

• Designate200dietitiansnationallytosupportthe “Healthier Home Event”.

• All President’s Choice brand products to be free of artificial flavours and colours.

• Reducesodiumin200existingcontrolbrandprocessedproductsbyanaverageof16%.

• Develop 300 new control brand processed products that meet our internalguidelinesforresponsiblesodiumcontent.

• Developanactionplantoreducesodiuminremainingcontrolbrandprocessedproductsthroughto2016.

• Enhancecolleaguecorporatewellnessprogram.

Community Giving:

• Continuetocontributetocharitiesandnon-profitorganizationsacrossCanadawithafocusonGreeningOurCommunities,HealthyActiveKids,FeedingOurNeighboursandPresident’s Choice Children’s Charity.

ReflectOurNation’sDiversity

• ImplementexternalprogramstorecruittargetedcommunitygroupssuchasAboriginals,newCanadiansandpersonswithdisabilitiesbyyear-end2014.

• Buildamulti-yearorganizationstrategytoalignwithcustomerandcolleagueaccessibilityrequirements.

• 100%increaseindiversitychampionprogramsin2013.

• Increasethenumberofwomeninleadershiprolesin theorganization.

• Expandthe“ISpeak”programtoallcorporatestoresby year-end2014.

• Expandourrange of authentic multicultural products across our Rooster Brand, T&T and Surajcontrolbrandsby50%by year-end2014.

BeaGreatPlacetoWork

Colleague engagement:

• Rolloutnewcolleaguerecognitionprogram.

• 3%increaseincolleagueunderstandingofCompanysharedvalues.

• 2%increaseincolleagueawarenessofcorporatesocialresponsibility(CSR).

accelerate Leadership effectiveness:

• Increasethenumberofleadershipfocusedtrainingprogramsavailabletocolleagues.

• ExpandourManagerReadyprogram.

• 2%increaseinparticipationofe-learningandinstructor-ledtrainingcourses.

Health and Safety:

• 10%reductionin total accidents.


BuildingstrongpartnershipsandlastingrelationshipsisimportanttoLoblaw.WecollaboratewithawiderangeoforganizationsinoureffortstomeetCSRobjectivesanddriveresponsiblebusinesspractices.Herearesomeofourkeypartners:

PartnersandStakeholders


Wewereprivilegedtoreceivethesehonoursamongothersin2012:

BestEmployersforNewCanadiansRecognizesthenation’sbestemployersforofferinginterestingprogramstoassistnewCanadians inmakingthetransitiontoanewworkplaceandanewlifeinCanada.

Canada’s Best Diversity EmployersRecognizesemployersacrossCanadathathaveexceptionalworkplacediversityand inclusivenessprograms.

Canada’s Greenest EmployersRecognizesemployersthatareleadingthenationincreatingacultureofenvironmentalawarenessintheirorganizations.ThisisthethirdconsecutiveyearinwhichLoblawhasreceivedthisaward.

Canada’s Top 100 EmployersRecognizesLoblawasoneofCanada’sTop100Employersforthefourthyearinarow.ThiscompetitionisoneofCanada’sbest-knownannualawards,recognizingcompaniesandorganizationsthatareleadersinattractingandretainingemployees.

Canada’sTopEmployersforYoungPeopleRecognizesleadersinattractingandretainingyoungeremployeestotheirorganizations.Thisisthethird consecutive year in which Loblaw has received this award.

DéfiEmployeursInspirants(MostInspiringEmployersChallenge)RecognizescompaniesestablishedinQuebecthatexhibitexcellenceinhumanresourcesandcontributetoemployeeengagementininnovativeways.

Greater Toronto’s Top EmployersRecognizesGreaterTorontoemployersthatleadtheirindustriesinofferingexceptionalplacestowork.This is the third consecutive year that Loblaw has received this award.

Hypertension Canada Certificate of ExcellenceRecognizesLoblawandourpharmacygroupforoureffortsandpositiveapproachonhealthmanagementandchronicdisease,andspecificallyonsodiumreductionthroughtheS.A.L.T.(SodiumAwarenessLifestyleTips)campaign(www.hypertension.ca/hypertension-canada-awards).

SmartCommuteBrampton-CaledonEmployeroftheYearRecognizesemployersfortheirelitecommuterprograms–deliveringsuperiorresults,impactsandefforts.

Awards


AquacultureStewardshipCouncilTheASCisanindependent,not-for-profitorganizationthataimstobetheleadingglobalcertificationandlabellingprogramforresponsiblyfarmedseafood.TheASCmanagesaglobalstandardforresponsiblyfarmedseafoodandiscommittedtopreservingmarineandfreshwaterhabitatswhileendorsingsocialstandards.

Artificial flavours and coloursDyesandchemicalsusedincommonartificialingredients.Artificialflavours and colours have been linked to skin reactions, hyperactivity inchildren,nausea,highbloodpressureandbreathingproblems,amongotherissues.

Auxiliarypowerunit(APU)Asmalldieselenginethatprovidesclimatecontrolandelectricalpowerforthetruck’ssleepercabandengineblockheaterwithoutidlingthetruckduringdowntimeontheroad.

BackhaulThereturnmovementofatruckfromitsoriginaldestinationtoitspointoforigin,especiallywhencarryinggoodsbackoverallorpartof the same route.

Farm-raised(seafood)Fishfarminginvolvesraisingfishcommerciallyintanks or enclosures.

GlobalFoodSafetyInitiative(GFSI)GFSI(www.mygfsi.com)isaninternationalalliancestartedbytheworld’slargestfoodretailers.GFSIhasbenchmarkedtheleadingglobalfoodsafetyschemesandintegratedthemsothatwhenamanufactureriscompliantwithaGFSI-benchmarkedscheme,itisautomaticallyacceptedasequivalenttoallothercorrespondingGFSI-recognizedstandards.

GlobalReportingInitiative(GRI)Globallyapplicablesustainabilityreportingguidelinestoassistcorporationsinreportingontheeconomic,environmentalandsocialperformance of their operations.

GreatCanadianShorelineCleanupTheGreatCanadianShorelineCleanup,presentedbyLoblawCompaniesLimited,isoneofthelargestdirectactionconservationprogramsinCanada.AconservationinitiativeoftheVancouverAquariumandWWF,itaimstopromoteunderstandingofshorelinelitterissuesbyengagingCanadiansinrehabilitatingshorelineareasthroughcleanups.TheinitiativeismadepossiblefrompartialproceedsofLoblaw’scharge-for-plasticshoppingbagprogram.

GreenCommUnitySchoolGrantsTheGreenCommUnitySchoolGrantsprogramhelpsfosterinnovationfortheenvironmentamongCanada’syouthbyprovidinggrantsofupto$5,000toCanadianelementaryandsecondaryschoolsworkingonconservationprojects.SpearheadedbyWWF,theprogramismadepossiblefrompartialproceedsofLoblaw’scharge-for-plasticshoppingbagprogram.

Greenhousegas(GHG)emissionsThereleaseofatmosphericgasesthattrapheatfromthesunandwarmtheplanet’ssurface.Humanactivitiessuchastheburningoffossil fuels and the deforestation of tropical forests have contributed toelevatedlevelsofGHGs(especiallycarbondioxideandmethane)in recent decades.

GuidingStarsAnin-storetoolthatratesallfoodproductsuptothreestars basedontheirnutritionalvaluetohelpguidecustomerstohealthierfood options.

Intermodal transportationTheuseofmorethanonemodeoftransport(e.g.,ship,railandtruck)toshipgoods.

Light-emittingdiode(LED)LEDs,orlight-emittingdiodes,areaformoflightingthatisextremelyenergyefficientandlong-lasting.LEDlightslastupto2.5timeslongeranduseasmuchas56%lesselectricitythanstandardfluorescentlighting.

LightingretrofitChangingthecomponentpartsoranentirelightingfixturetoreduceelectricity consumption.

Long-combinationvehicle(LCV)InCanada,anycombinationoftractorunitandsemi-trailersmorethan25metresinoveralllengthisconsideredtobeanLCV.LCVscanpullmorevolumeusingthesamepowersource–leadingtofewer trucks on the road, improved fuel efficiency and a reduced carbon footprint.

Glossary

glOSSaRy


MarineStewardshipCouncil(MSC)Anindependent,non-profitorganizationthatmaintainsthemostwidelyrespectedglobalstandardforthecertificationofwild-capturefisheriesassustainableandwellmanaged.MSCharnessesmarketforcestodrivechangeonthewaterbyrecognizingandrewardingsustainablefisheries,influencingthechoicespeoplemakewhenbuyingseafood,andworkingwithourpartnerstotransformtheseafood market to a sustainable basis.

MSCchain-of-custody(CoC)TheMSCchain-of-custodystandardforseafoodtraceabilitymakessurethattheMSClabelisonlydisplayedonseafoodfromanMSCcertified sustainable fishery. It assures consumers and seafood buyersthatthefishtheyarebuyingcanbetracedbacktoafisherythatmeetstheMSCenvironmentalstandardforsustainablefishing.

NationalSweaterDayOnasetdayinFebruary,CanadiansareaskedtoputontheirfavouritesweaterandturntheheatdownafewdegreestohelpWWFtakeactionagainstclimatechangeandworktowardasustainablefuture.NationalSweaterDayismadepossiblefrompartialproceedsofLoblaw’scharge-for-plasticshoppingbagprogram.

OntarioCornFedBeef(OCFB)TheOntarioCornFedBeefprogramprovidesconsumerswithanidentifiable Ontario brand of beef – known to be consistent, premium andlocallyraised.Thefeedofcattleplaysabigroleintheflavourofthebeef.Inthisprogram,cattleconsumeahighpercentageofcornintheirdiets,givingthebeefsuperiormarblingwhichmakesitthemost tender, tasty beef anywhere.

PalmoilAtypeofvegetableoil,derivedfromthepalmfruit,grownontheAfricanoilpalmtree.OilpalmsoriginatedinWestAfrica,butcanflourish wherever heat and rainfall are abundant. Today, almost all palm oil is produced in Indonesia and Malaysia.

Polyethyleneterephthalate(PET)Acommonlyusedplasticthatistransparent,lightweight,strong,safe, shatterproof and readily recyclable.

TranscriticalrefrigerationsystemAnadvancedrefrigerationsystemthatusescarbondioxideasitssolerefrigerant.

U.S.EnvironmentalProtectionAgency(EPA)2010emission standardsThesestringentstandards,whichtookeffectinJanuary2010,areaimedatreducingatmosphericpollutionbysignificantlyreducingtheamountofnitrogenoxides,particulatematterandhydrocarbonemissionsfromdieselengine-poweredheavytrucks.

Wild-caught(seafood)Seafoodharvestedfromtheirnaturalmarinehabitat.

ContactUs

HeadquarteredinBrampton,Ontario,LoblawCompaniesLimitedisasubsidiaryofGeorgeWestonLimited.

NationalHeadOfficeandSupportCentreLoblaw Companies Limited1President’sChoiceCircleBrampton,Ontario,CanadaL6Y5S5

Tel: 905-459-2500Fax: 905-861-2206Web: loblaw.ca

[email protected].

Documents

The Way We Do Business - loblaw-reports.ca · Loblaw Companies Limited 2012 Corporate Social Responsibility Report The Way We Do Business 2012 Corporate SoCiaL reSponSibiLity report