Corporate responsibility has undergone some major developments during the period of this report, the details of which follow below.

The Ocado Way

From the beginning, Ocado has been passionate about minimising environmental impacts, and as our activities and responsibilities have grown, we have responded with our strategy.

Our new 2020 Vision "The Ocado Way" is underpinned by three guiding principles that we aspire to:

  • For every employee to be engaged with our CR strategy, aspirations and intentions
  • Ensure we are a well-run, responsible, sustainable business
  • Where we believe there is an opportunity to use our position and expertise for good, to step up and take it.

Building on work undertaken to date, our new 2020 vision "The Ocado Way" has four strategic pillars: Education, Entrepreneurship, Environment and Eating Well, focusing on areas where we can make a meaningful difference.

The Ocado Way Strategic Pillars

Education IconEducation

Ocado's success stems from cutting edge technology. We see a significant opportunity with Code for Life to play a role in promoting technology, and our Road Safety programme aims to raise awareness of large vehicles with children and young people.

Code for Life

Ocado.com is the world's largest online-only grocery retailer. Customers use our award-winning mobile applications and website to place their orders, which are packed in our world-class automated warehouses, and delivered in one-hour time slots.

Under the surface is a dynamic technology business, Ocado Technology, that has the look, feel and culture of an innovative software start-up — developing all the software that powers the Ocado.com and Morrisons.com retail businesses.

We believe the ability for children to code will in future years become as important as literacy and maths are today. With that in mind, we developed Code for Life, an initiative to help support primary school teachers deliver the new computer science curriculum. We are keen to lend our support to a programme that will enable every child in the country to flourish in an increasingly digital world, armed with "coding survival skills".

Our Road Safety programme is in the early stages of implementation, and we look forward to sharing more in future years.

Entrepeneurship IconEntrepreneurship

Ocado began life 15 years ago as a small start up with an entrepreneurial spirit, passion and enthusiasm. While we have significantly grown in the last 15 years, a great deal of "the early days" still stays with us — and we are keen to use our example and our influence as a platform for change — inspiring the next generation of students, entrepreneurs and small British businesses.

Britain's Next Top Supplier

Building on our proud entrepreneurial history, "Britain's Next Top Supplier" supports new, up and coming suppliers by running an annual competition aimed at suppliers and producers looking to take the next step towards commercialising their product.

In 2015 our Chairman, Lord Rose, and Chef Tom Kerridge, will again both sit on the judging panel for the competition alongside Ocado buyers – aimed at finding that "next new product".

The 2014 winner, Hiver Beers, won the opportunity to be stocked at Ocado as well as a £10,000 marketing package to promote the product – and sales are going well for the small, niche brewery following this opportunity.

Britain's Next Top Supplier, 2014

"As online pioneers, we've already helped to change the way people shop for groceries; now we want to change the world too, a little bit at a time."

CASE STUDY: EDUCATION & CODE FOR life

Ocado Rapid Router

September saw the launch of Ocado Technology's Code for Life initiative, which sets out to provide primary school children with the ability to write code. Aimed at primary school teachers in England, the free teaching resource called Rapid Router will complement the Key Stage in Computing.

Rapid Router offers a number of coding tools including games, detailed lesson plans for pupils learning Key Stage 1 (children aged 5–7 years) and lower Key Stage 2 (children aged 7–9), unplugged educational activity and coding videos including Ocado Technology programmers.

In less than 4 months, Code for Life has been adopted by more than 13,500 users and over 300 schools are using the tools!

Environment-iconEnviroNment

During the period, we partnered with The Carbon Trust to help us re-evaluate our strategic direction for carbon and waste. A revised, more targeted strategy is being drafted, taking into account our rapidly growing business and ever changing industry.

Greenhouse Gas Emissions

We have measured our greenhouse gas emissions for many years, but it was in the previous period, 2 December 2012 to 1 December 2013, that we formally reported a baseline against which we now track our reductions and efficiencies.

The Group's reported emissions have been prepared and calculated with reference to environmental reporting guidelines (2014), issued by Defra and using conversion factors published by DECC/Defra May 2014. Further details regarding our data and preparation can be found on our website.

Over the period, our emissions increased compared to the previous year, as set out in the table below. During 2013/14, the Group has significantly increased the volume of orders for both Ocado.com and Morrisons.com, an increase of 26.7% compared to the previous year. We continue to make efficiency gains from the increasing orders at our CFCs and the opening of additional spokes which result in shorter van journeys, combined with continuous improvements in technology.

PricewaterhouseCoopers LLP has carried out a limited assurance engagement in accordance with International Standard on Assurance Engagements 3410 "Assurance engagements on greenhouse gas statements" (ISAE 3410), issued by the International Auditing and Assurance Standards Board. A copy of the limited assurance report is available in the "Our Responsibilities" section of the Company's corporate website.

GHG emissions (tonnes CO2e)

2012/132013/14
Scope 1 - Direct39,53050,198
Scope 2 — Indirect21,61326,493
Total Emissions61,14376,691
Intensity measures:
Tonnes CO2e/ 1,000 orders8.238.15

The baseline for last year has been slightly adjusted upwards from the data in last year’s report, due to actuals replacing estimates.

Our largest carbon contributions still come from the fuel used in the vehicles used to transport orders and the electricity consumption used at our CFC's and spokes. The reporting period covered by the emissions data is the same as the financial year, being the 52 weeks ended 30 November 2014.

Our third generation delivery van continues to operate on the premise of maximising the potential payload whilst having the lowest environmental impact possible.

We reduce the environmental impact of the vans by (1) increasing fuel efficiency, (2) improving routing and reducing distance travelled, and (3) increasing deliveries per van route. Our leading edge, in-house routing system enables us to minimise road mileage and take full advantage of the payload available by making over 3 million routing calculations per second, finding the most efficient delivery routes. Working with our body constructor Paneltex for many years, we have increased the payload of our 3.5 tonnes sprinter van fleet by 41%. We also operate FleetBoard in all our trunking fleet, a driver management tool optimising fuel efficiency. We are exploring equivalent options in the van fleet.

"We aim to be the UK's greenest, most innovative and best value grocery retailer by providing a more environmentally efficient alternative to traditional supermarkets."

"Our leading edge, in-house routing system makes over 3 million routing calculations per second, finding the most efficient delivery routes."

GHG EMISSIONS - CO2e TONNES

GHG-Emmisions Pie Chart

Closed loop recycling

Ocado collects both our own and other retailers' carrier bags from our customers. On average, customers return more than 65% of all carrier bags and we then recycle them back into carrier bags to be used again. This all takes place within the UK, rather than being sent overseas — minimising carbon emissions from transportation.

Recycling and reuse of carrier bags is well understood by customers, who work with us and other retailers to help reduce the environmental impact of carrier bag use. We believe we remain the only retailer to take both our own, and other retailers' carrier bags, and recycle them back into carrier bags.

Green van slots

We offer further carbon reductions through the "green van" slots on our time slot booking page. The idea is simple – if we are delivering in an area at a particular time, we can advise at the time of booking, enabling customers to choose an adjacent time slot – thereby minimising drive time and fuel use for deliveries.

Waste

Our waste volumes remain at low levels (compared to the industry) and where possible we find ways to re-use any food.

Food close to its "use by date" goes to our food bank partners, some to Company Shop Limited, and in turn on to Community Shop, and finally to a number of animal parks we also support.

You Give We Give

Donate Food with Ocado – Ocado's virtual food bank allowing online customers to donate food to charitable causes

"On average, customers return more than 65% of all carrier bags and we then recycle them back into carrier bags to be used again."

"Our waste volumes remain at low levels (compared to the industry) and where possible we find ways to re-use any food."

CASE STUDY: EATING WELL AND REDUCING FOOD WASTE

Southend Vineyard storehouse

Ocado has a well-established and long-standing partnership with Southend Vineyard Storehouse, a busy centre which helps thousands of poor, homeless and vulnerable people each year, issuing 500 food parcels to people in crisis every week.

For five years, volunteers from The Storehouse, have collected food still within "use by" date for their food bank and community café.

The food bank sees on average 150 people every day and the café can feed anywhere in the region of 200 each day it opens its doors, showing people with very difficult lives some warmth, kindness and respect as they receive food which they could not otherwise afford.

"The relationship we have with Ocado is hugely important to us at The Storehouse. Weekly collections from Ocado underpin our food programme, helping us to feed thousands of disadvantaged people affected by the recession as well as many homeless and vulnerable people. It is no exaggeration to say that without Ocado we would not be able to provide food for the 90 families and over 500 individuals who depend on our service every week. Ocado is truly our partner in "Reaching Out and Changing Lives", and the Storehouse team is indebted to every Ocado team member who helps make the partnership happen. Thank you on behalf of every Storehouse volunteer and every single person who has ever received an emergency food parcel." John Williams, The Storehouse, Southend Vineyard

Healthy Eating IconEating Well

Key to our Eating Well pillar, is a plan to support the role of food in health and nutrition and help reduce food poverty in the UK.

We believe that by offering the biggest range of nutritional choices, including the largest selection of nutritionally "free from" products in the UK, and ensuring there are always at least 100 fresh fruit and vegetables on promotion at any one time, we can contribute to the broader agenda of healthy eating and sound nutritional choices. This is about informed choices and offering the widest possible selection to facilitate those choices, combined with recipes, and dietary and nutritional information.

We are also working hard to play our part in reducing food poverty in the UK.

This year, we launched a "Donate Food with Ocado" option for customers — they select a donation while doing their shop, and we match the contribution with groceries. This idea was based on feedback from our customers. Southend Vineyard, as our long-standing food bank partner (see case study), is the primary recipient for the time being, but we expect to broaden this to other food banks across the UK.

Twycross Zoo

In more recent years, since the opening of CFC2 in Dordon, we have grown our relationship with Twycross Zoo.

More than 1,200 kg of fruit and vegetables are donated to Twycross Zoo weekly, feeding the animals with food unfit for human consumption — but still perfectly edible for the residents of the zoo.

We plan to continue both this and other partnerships in our efforts to avoid sending food waste to landfill.

Twycross Zoo

Twycross Zoo

Community and Charitable Giving

During the period, our employees voted for Macmillan as "Charity of the Year" for the fourth year. Fundraising throughout the year has included a summer ball, football tournament, cake bakes and a host of sponsored activities across the country. This year, employees have raised more than £65,000, bringing the total to date to £190,000.

"Since our partnership began four years ago staff have thrown themselves into running, cycling, holding coffee mornings, quizzes, balls, barbeques, football matches and much more. From this company-wide effort we're thrilled that to date our partnership has raised nearly £200,000 and is raising vital awareness of Macmillan. The Ocado staff are incredible and we can't thank them enough for their continued support and for helping us to ensure no one has to face cancer alone." Claire Singlehurst, Director of Regional Fundraising, Macmillan

We get approached by many charities, schools, sports and community groups throughout the year asking for charitable support. Whilst we are unable to assist every request, we try where we can – and during the period have donated almost £25,000 to small, often local, events and activities.

"Peas One Day"

Ocado has been a supporter of the organisation Peace One Day for a number of years. Unlike in previous years, this year we chose to involve our customers and during the period leading up to the annual Peace Day (21 Sept), 20p from every pack of frozen peas was donated to the charity. We were delighted to raise £13,350 for Peace One Day's campaign.

Through our continued partnership with Waitrose, we made donations to the Waitrose Foundation, totalling £53,000 during the Waitrose financial year 2013/14. This was from sales of fruit and vegetables; and also in the same period, we made a donation of over £159,000 to the Prince of Wales's Charitable Foundation, through sales of Duchy branded products.

No political donations were made by the Group to any political party, organisation or candidate during the period (2013: nil).

Ocado is committed to the upholding and respect of human rights. We expect our suppliers to operate in a fair and honest way towards their employees and with whom they do business.

Give Peas a Chance