In FY2018 the organisation worked BUSINESS creates mutual economic benefits primarily with its national partners as well as allowing our merchandise White Ribbon Australia, Global Sisters Myer is committed to the highest teams to provide affordable products and The Salvation Army to reduce family levels of integrity and ethics in our to consumers. violence and its impacts. business operations and interactions with stakeholders. We implement this Myer continues to work with its business The organisation has three major commitment through our Code of partners to improve their ethical sourcing fundraising programs. They are the Conduct, team member training and procedures and ensure compliance with Myer Community Fund Precious Metal whistle blower programs. Team members our Ethical Sourcing Policy. In FY2018 Ball; point of sale round-up, providing are required to acknowledge acceptance our focus areas included existing vendor customers with the opportunity to of the Code of Conduct prior to re-certification as well as building ‘round-up’ their purchase to the nearest commencing work, and all salaried team stronger relationships and improving dollar; and team member fundraising members are required to refresh their transparency with Myer’s Australian- activities at every Myer store, distribution Code of Conduct training annually. based sourcing suppliers. centre and the support office. Myer is committed to sourcing products In FY2018, we completed audit reviews Money raised through these fundraising in a responsible manner and integrating of 230 business partners (348 factory programs goes to the Myer Community an effective and sustainable supply chain audits) within our Myer Exclusive Brand Fund to help support the important work within our business and with our business network. Our review identified no zero of our national and local charity partners partners. Business partners are required tolerance issues and 86 high risk issues, in family violence prevention, cultural to meet global standards on human which primarily related to excessive change and victim support. rights, workplace safety, environment overtime hours and the need for safety and ethical business practices. improvements. Myer is committed to HOBART WOMEN’S SHELTER continuing its working relationships with Myer’s Ethical Sourcing Policy prohibits the factories to address high risk issues. The creation of a toy library at the Hobart the use of forced or slave labour and Women’s Shelter has provided a space child labour, the exploitation or unfair where children can engage, reconnect treatment of workers and acts of bribery. and develop key social and emotional The policy also requires business partners skills in a time of crisis. to ensure that workers are treated with Children often arrive with few or no respect, paid fairly and work in safe and possessions and through its partnership hygienic conditions. with Myer Hobart and a grant from the Myer currently sources from several Myer Community Fund, up to 230 children countries including China, India, Italy, each year now have toys they can borrow Bangladesh and Vietnam. Sourcing and spaces where they can play to help products from these countries them feel more secure. SUSTAINABILITY PERFORMANCE AND TARGETS FY2016 FY2017 FY2018 FY2019 Focus area Key measure Performance Performance Performance Target Customer Net Promoter Score AchievedTarget not met Achieved ● Improvement Team Diversity and inclusion (% female senior managers) 49 51 57 ● ≥50 Workplace safety (LTIFR) 6.0 5.8 5.4 ● <5.3 Community Direct community contribution (% EBIT) 1.6 1.4 3.0 ● >0.5 Environment Greenhouse gas emissions reduction (%) 5.9 7.7 7.4 ● ≥1.0 Energy intensity (kJ/m2.opening hour) 169.3 166.6 156.5● ≤156.0 Recycling rate (%) 60 57 60 ● ≥60 Business New suppliers agreed to Ethical Sourcing Policy (%) 100 100 100 ● 100 Code of Conduct training (% of required team members trained) 87.0 85.9 82.5 ● ≥80.0 ● Improved / met target ●Did not reach target Note: Previous financial year targets are available in Myer Annual Reports available on our Investor Centre website. 12 Myer Annual Report 2018