We have a robust career development framework in place that emphasises training and competence. This meets business needs while empowering employees to grow their potential.

Achievements include:

• Foundational ‘adult basic education and training’ literacy programmes are now incorporating retail-specific concepts.

• We have aligned our trainee manager programme and assessments to new standard operating procedures.

• Training courses based on assessment centre results that are mandatory for promotion have been prioritised and scheduled to meet business needs.

Key challenges include:

• Managing the capacity of business units to achieve the required volume and quality of training due to other operational demands.

	Key performance indicator	2012	2011	2010
	Employee turnover	15%	15%	9%
	Total investment in training, including bursaries	R80.2 million	R71.8 million	R55.2 million
	Employment equity
	Top management (target 40%)	38%	39%	39%
	Senior management (target 65%)	61%	58%	59%
	Professionally qualified middle management (target 70%)	85%	84%	84%
	Semi-skilled and discretionary decision-making (target 80%)	95%	94%	93%
	Unskilled and defined decision-making (target 100%)	100%	100%	100%

We continue to embed sustainability across our operations, driving efficiency and exploring new opportunities for our business.

Achievements include:

• Our Carbon Disclosure Project score improved from 77 to 86 and we were placed in performance band A-;

• We were included in the JSE 100 Carbon Performance Leadership Index.

Key challenges include:

• Continually enhancing sustainability data management through our executive scorecard and compliance with an increasing number of external guidance bodies.

	Key performance indicator	2012	2011	2010
	JSE SRI Listing	Listed	Listed	Listed
	Carbon disclosure project	Included on  Performance  Leadership index  for CDP 2011	Included on  Performance  Leadership index  for CDP 2010	–

Partnerships remain a key strategic focus for the Group and through the Pick n Pay Ackerman Foundation (the “Foundation”) we continue to support community-based projects with a potential for economic self-reliance and facilitate market access for small businesses.

The central values on which the Foundation’s development work is built are:

• Encouraging the efficient use of natural resources;

• Creating prosperous livelihoods not jobs;

• Whole community focus;

• Support of start-ups (incubation);

• Support of ready-to-grow businesses (acceleration); and

• Facilitating economic sustainability and self-reliance.

Our multi-faceted approach, supporting communities, enterprises and individuals with a combination of expertise and experience, has seen projects grow from small community gardens to viable opportunities for economic independence.

Suppliers are encouraged to adopt improved environmental and social practices, and our procurement policies drive ethical welfare standards throughout our supply chain. The Foundation actively promotes the use of sustainable environmental practices throughout the value chain, using partnership models for sustainability-driven solutions. We include the important elements of sustainable practices socially, economically and environmentally when we assess projects.

Achievements include:

• We are providing permanent employment for 60 women through a small business initiative which manufactures eco-bags sold in our stores.

• The Pick n Pay Ackerman Foundation has supported and developed more than 36 small enterprises who are supplying Pick n Pay with products, goods and services.

• A dedicated programme to assist small suppliers with their compliance, a substantial challenge for small businesses, which includes water and soil testing, labelling, traceability journals and record keeping.

Key challenges include:

• Aligning enterprise development with the needs of business and supply chains.

• Measuring the impact of our initiatives.

We have seen significant energy savings as a result of our completed roll-out of in-store energy efficiency initiatives and through optimising our logistics network. Our focus on waste is to be intensified.

Achievements include:

• We have reduced our carbon footprint by 4.6% compared to our 2011 scope. Our emissions intensity has improved by 11%.

• Daily automated feedback is provided to corporate stores to promote energy saving behaviour.

• We have started exploring the eligibility of some of our energy savings projects for inclusion under the Clean Development Mechanism (a mechanism for registering carbon credit projects).

• Our development of eco-friendly stores and ongoing commitment to climate change education were recognised when we won the Climate Change Leadership award in the retail category.

• Pick n Pay received the Africa Energy award for “Energy Project of the Year”.

• We also received the Eskom eta award for “Energy Efficiency Awareness”.

Key challenges include:

• Our main challenge in this focus area remains growing our business while significantly reducing our consumption and impact on natural resources.

	Key performance indicator	2012	2011	2010
	Carbon footprint (Scope 1 and 2)	598 896 tonnes*	602 782 tonnes	642 351 tonnes
	Carbon footprint (Scope 1 and 2): annual turnover	10.8	11.6	13.1
	Total energy use for stores, distribution centres and offices	530 million kWh	557 million kWh	569 million kWh
	Energy use per m2 for corporate stores	472kWh	528kWh	550kWh
	Waste volumes recycled	8 392 tonnes**	3 284 tonnes	2 689 tonnes

*  Our carbon footprint is currently being verified and additional data sources will be included in our CDP submission.

** Significant improvement due to both an increase in the number of locations measured and an improvement in data collection