Musgrave Group Sustainability Report 2006

ADDITIONAL INFORMATION

Notes (* = Core Indicators)

[2.7]
Musgrave does not have a 'capitalisation' as such. Normally the word 'market capitalisation' refers to publicly quoted companies being the number of shares in issue multiplied by the market price per share. Musgrave's book value, i.e. its shareholders' funds were €275m at the end of 2005.

[3.13A]
MSVC opened the Kilcock Distribution Centre in January 2005. Musgrave acquired Londis (UK) in July 2004 as part of its strategy to expand overseas. Londis is a convenience retail group consisting of 2,200 independent stores located throughout England,Wales and Scotland. Budgens and Londis have been combined into one operating division, Musgrave Budgens Londis (MBL). In October 2004,MWS acquired C&R Foods and in January 2005 it acquired Variety Foods, both being frozen food suppliers in NI and RoI. These acquisitions will ensure rapid growth in the Musgrave Foodservice business.

[4.2]
The Chairman is a non-executive officer

[4.5]
All company objectives take into account future plans of the organisation as well as corporate strategy. Such long term plans are directly related to an individual's remuneration package. Non-financial targets are also included in the remuneration package as is the case for the Group Commercial Director who oversees environmental and social accountability goals.

[4.6]
External assessment processes are employed for determining the required qualifications and expertise of Musgrave directors. Such processes are continuously updated and vary for different individuals.

[4.7]
Internal process are implemented to ensure conflicts of interest are avoided.

[4.8]
Musgrave Core Values and the organisation principles are contained in our policy namely: The Environmental and Social Accountability Policy and The Ethical Trading Policy. These policies are applied in all divisions of Musgrave Ltd as is the Musgrave Business Code "Who we are, what we do and how we do it", in addition to adhering to the principles of sustainable development.

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[4.10]
Performance is evaluated through the establishment of strategic plans, strategic targets and deliverables in addition to the key performance indicators, which are used throughout the organisation. All outcomes are documented in the Musgrave Annual Review.

[4.13]
Musgrave Group is a member of European Marketing Distribution (EMD).

[EC1*]
Reference the 2005 Musgrave Group Annual Report and Review.

[EC4*]
Zero subsidies received

[EC5*]
Musgrave complies with the National minimum wage Regulations.

[EC7*]
Staff are recruited locally in normal situations, however there is no formal procedure in place.

[EN1*]
Not relevant to any Group divisions

[EN2*]
Not relevant to any Group divisions

[EN9*]
Musgrave are not intensive water users, and have not collected data on water use at our facilities during 2004-2005.

[EN10-11]
Water supplies at Musgrave Group facilities generally come from local authority mains supplies, with the exception of MWS in Ballymun, Dublin, which, in addition to the use of local authority supply, also uses an on-site well. Water volumes are not recorded.

[EN12*]
None of our facilities are located in or near to protected areas.

[EN13*]
No major impacts on diversity associated with activities and/or products and services in terrestrial, freshwater, and marine environments as all sites are in industrial/ commercial locations.

[EN14]
Not relevant to any Group divisions.

[EN15]
Not relevant to any Group divisions.

[EN16]
No IUCN Red List species

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[EN18*]
Some of the refrigerants used within Musgrave Group are classified as "ozone-depleting substances", notably HCFCs, but there has been much change towards alternative sources in the last five years. These refrigerants are used in "fixed" refrigeration units at Musgrave facilities (mainly MWS outlets) and for transportation refrigeration within trailer units of distribution vehicles.

Our trailer units use approximately 8kg of the HCFC refrigerant R404A in each of our 121 units. The refrigeration units are sealed, with no emissions to the atmosphere. Replacement refrigerant is not required for these units, and at the end-of-life they are degassed and disposed of using industry best-practice techniques.

Ammonia-based refrigeration systems are used at the two MSVC Chill warehouses in Cork. Ammonia has desirable characteristics as a refrigerant which have been well known for over 150 years. It has no ozonedepleting or global warming potential, characteristics which result in a highly energy-efficient refrigerant with minimal environmental problems.

No ODSs are used in the MSVC NI facilities (ammonia-based refrigeration), while within Budgens, Freon 22 (HCFC) is currently used. With growth and expansion, all new plant in Budgens will be ammonia-based.

[EN21*]
Not relevant to any Group divisions.

[EN24]
All hazardous or potentially hazardous waste produced or handled at Musgrave is collected, transported and disposed of in accordance with relevant European and national legislation. Musgrave Group does not produce significant volumes of hazardous materials as part of its operations, but incidental items generated as part of day-to-day activities, are carefully stored prior to collection by permitted and licensed waste contractors at each facility.

[EN25]
No water sources and related ecosystems/habitats significantly affected by discharges of water and runoff.

[EN27*]
No data recorded

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[LA7*]
There were no fatalities in any of the divisions during the monitoring period

[LA8*]
The company does not have a HIV/Aids policy.

[LA10]
Health and Safety topics are not covered in formal agreements with trade unions in any Group division

[LA13]
MSVC RoI
2004 100% of all employees received a formal appraisal
2005 100% of all employees received a formal appraisal

MSVC NI
2004 Senior Management   100%
          Middle Management   53%
          Administration             100%

2005 Senior Management*
          Middle Management  17%
          Administration            29%

* A major restructuring process took place in MSVC NI during 2005. It was therefore not appropriate to undertake appraisals as new staff members were still in induction. Probation reviews were carried out but are not included in the statistics above.

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MWS
2004 100% of all employees received a formal appraisal
2005 100% of all employees received a formal appraisal

MBL
2005 Management 95%
          Team Members 90%
          Distribution Staff 10%

[LA14*]
The Composition of employees and management on terms of male/female ratio in all Musgrave Group business units for 2005 was 55% male: 45% female. Age group, minority group membership, and other indicators of diversity are not reported on.

[LA15]
Remuneration information not available.

[HR1*]
Not relevant to any Group divisions.

[HR2*]
Musgrave has implemented an Ethical Trading policy, which allows for the investigation and evaluation of the human rights performance of our suppliers. A number of checks are carried out within Group divisions; for example, within MWS trading managers identify members of the supply chain to audit in line with the needs of the business. MWS deals mainly through third party supplier arrangements and this normally secures the best sourcing routes for particular products.

[HR3]
Musgrave has issued a number of policies and procedural guidelines relating to human/employee rights in the workplace.

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[HR4*]
There were no incidents of discrimination reported by the Musgrave divisions during the reporting period.

[HR5*]
There were no incidents of violations of freedom of association and collective bargaining reported by the Musgrave divisions during the reporting period.

[HR6*]
There were no incidents of child labour reported by the Musgrave divisions during the reporting period.

[HR7*]
There were no incidents of forced or compulsory labour reported by the Musgrave divisions during the reporting period.

[HR8]
Each division has its own specific procedures for dealing with complaints and grievances filed by customers, employees, and communities concerning human rights in accordance with the Musgrave Ethical Trading Policy.

[HR9]
All our security personnel are outsourced and thus training is not conducted directly by Musgrave Group, with the exception of Budgens. Budgens' security personnel are trained in the use of minimum force.

.[HR10]
There were no incidents involving rights of indigenous people reported by the Musgrave divisions during the reporting period.

[SO1*]
There are no programmes or practices in place for assessing and managing the impacts of operations on communities, including entering, operating and exiting as it is not relevant to any of the Musgrave divisions.

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[SO3*]
There have been no incidents of corruption at any of the Musgrave divisions therefore no actions have been taken.

[PR1*]
Musgrave acts to ensure that its customers are offered products and services of the highest quality. In particular, as a major food retailer, we take every step towards guaranteed food safety and hygiene. We are committed to the provision to our customers of safe products in a safe environment, complying with appropriate Codes of Practice and legislation.

[PR2]
No incidents of non-compliance with regulations concerning customer health and safety.

[PR4]
No instances of non-compliance with regulations concerning product information and labelling

[PR6]
In the majority of instances, product labelling is governed by legislation, for example EU Directive 2000/13/EC relating to the labelling, presentation and advertising of foodstuffs, and the individual state regulations that bring that Directive into legislation. In RoI for example, we work with the Department of Agriculture and Food, Food Safety Authority of Ireland, Local Health Authorities and the Office of the Director of Consumer Affairs on issues relating to product labelling. Where amendments are required to product labels, Musgrave takes immediate action in the case of own brand products, or, in the case of a branded product, passes the issue on to the supplier.

[PR7]
No breaches of advertising and marketing regulations.

[PR8*]
All data relating to any person or which could identify an individual (names, addresses, telephone numbers e-mail addresses etc.) are covered by the our data protection procedures

[PR9*]
No complaints regarding breaches of consumer policy




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