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Roger Whiteside, Chief Executive

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MAKING THE WORLD A BETTER PLACE

A WORD FROM OUR CHIEF EXECUTIVE

One year ago, we published the Greggs Pledge: ten things that we're doing to help make the world a better place by 2025. In this report, we share progress towards those ten commitments and explain what we will be doing next. It is our way of being as transparent as possible on this important journey.

I'm proud of what we have achieved together in 2021, particularly given the ongoing challenges we've faced in managing the Covid-19 pandemic. We've come back stronger and better: we opened new Breakfast Clubs and Outlet shops; we smashed our target on providing healthier choices; we are opening our first Eco-Shop; and we have made reductions to both food waste and our use of packaging.

Thank you to the thousands of colleagues who are working hard to deliver our commitments, as well as the partners and suppliers who support us. As our business grows and evolves, we will keep working together to make the world a better place.

sustainable development goals logo

Sustainable Development Goals (SDGs):

There are 17 goals in total, acting as a universal call to action to end poverty, protect the planet, and improve the lives of people around the world. Each of our pledges aligns with at least one of these goals.

the greggs pledge colleagues

THE Greggs pledge

In February 2021, we launched the Greggs Pledge which announced ten things that we're doing to help make the world a better place by 2025 - and beyond

We have always been committed to doing the right thing, but we wanted to get more specific about how we channel our efforts and resources into doing good. We reflected on what we could do to have the most positive impact on the world around us, and have chosen to dedicate our efforts to three areas: communities, the planet, and our approach to business. We have looked ahead to 2025, and set ourselves ten stretching targets to achieve by then.

Stronger, healthier communities

We pledge to play our part in improving the nation's diet by helping to tackle obesity, providing free breakfasts to schoolchildren, and giving surplus food to charities.

The British people made Greggs the success story it is today, and we have always looked for ways to give something back to them. Way back in the sixties we started with our free pie 'n' peas suppers for older residents in Gateshead and, today, give 1% of our pre-tax profits to the Greggs Foundation. As a food business, we know that hunger and obesity are the issues where we are best placed to make a difference.

Safer planet

We pledge to become a carbon neutral, zero waste business.

The planet is facing a climate emergency and we acknowledge our responsibility to do everything we can to reduce our environmental impact. It is no longer okay to be responsible for emitting carbon or creating waste.

Better business

We pledge to increase the diversity of our workforce, and to use our purchasing power responsibly, with the aim of making things better in our supply chain.

By being a successful business, Greggs makes a meaningful contribution to the economy each year through providing jobs and paying tax. We have always strived to be a good corporate citizen and aim to treat everyone - our employees, suppliers, partners and customers - with fairness, consideration and respect.

Ten things that we're doing to help make the world a better place by 2025 - and beyond

Stronger, healthier communities

Safer planet

Better business

1.

Growing Greggs Breakfast Clubs: By 2025, we will support 1,000 school Breakfast Clubs providing some 70,000 meals each school day.

2.

Putting an end to food waste: By 2025, we will create 25% less food waste than in 2018 and will continue to work towards 100% of surplus food going to those most in need.

3.

Supporting our communities: By 2025, we will have 50 Greggs Outlet shops providing affordable food in areas of social deprivation, with a share of profits given to local community organisations.

4.

Helping our customers make healthier choices: By 2025, 30% of the items on our shelves will be healthier choices and we will attract customers through education and promotions.

5.

Going carbon neutral: By 2025, we will be on our way to achieving carbon neutrality by using 100% renewable energy across all of our operations.

6.

Building the shops of the future: By 2025, 25% of our shops will feature elements from our Eco-Shop store of the future design.

7.

Using less packaging: By 2025, we will use 25% less packaging, by weight, than in 2019 and any remaining packaging will be made from material that is widely recycled.

8.

Embracing diversity: By 2025, our workforce will reflect the communities we serve.

9.

Sourcing sustainably: By 2025, we will have a robust Responsible Sourcing Strategy in place and will report annually on progress towards our targets.

10.

Protecting animal welfare: By 2025, we will secure and maintain Tier 1 in the BBFAW Animal Welfare standard.

1. GROWING GREGGS BREAKFAST CLUBS
By the end of 2022...

We'll have 760 Breakfast Clubs

1. GROWING GREGGS BREAKFAST CLUBS

Our commitment

By 2025, we will support 1,000 school Breakfast Clubs providing some 70,000 meals each school day

Our progress so far

In 2021, 686 Greggs Breakfast Clubs fed more than 44,500 children every school day

We've been providing a free breakfast to children who need it for more than two decades. We know that hungry children find it harder to concentrate and learn so we want to make sure as many as possible are getting a good start. By the end of 2021, we had 686 Breakfast Clubs up and running across the country, between them serving wholesome, free breakfasts to more than 44,500 children every school day - over the year, that means we provided 8.5 million meals. By the end of 2025, we hope to have 1,000 clubs open.

2. PUTTING AN END TO FOOD WASTE
By the end of 2022...

We will have reduced the amount of food waste we create in our manufacturing operations by 10% and increase food redistribution by a further 10%

2. PUTTING AN END TO FOOD WASTE

Our commitment

By 2025, we will create 25% less food waste than in 2018 and will continue to work towards 100% of surplus food going to those most in need

Our progress so far

We redistributed 28% of all unsold food in our shops and reduced manufacturing waste by 31% (as a % of sales)

We are looking for ways to reduce food waste right across our business. That means taking care with the ingredients we use to make our products at our manufacturing sites and using a sophisticated forecasting and ordering system to calculate, shop by shop, what we expect our customers to buy each day. Anything unsold at the end of a day is surplus which we try to get to people who need it.

In 2021, we donated over 1,000 tonnes of food to our charity partners which redistributed it to people in need.

3. SUPPORTING OUR COMMUNITIES
By the end of 2022...

We will have 30 Greggs Outlet shops

3. SUPPORTING OUR COMMUNITIES

Our commitment

By 2025, we will have 50 Greggs Outlet shops providing affordable food in areas of social deprivation, with profits given to local community organisations

Our progress so far

We have 20 Greggs Outlet shops up and running

We are opening Greggs Outlet shops in areas around the UK where we know social deprivation is high. These shops offer day-old food products at a big price reduction, meaning that families on a tight budget can pick up a bargain.

Last year, our Outlet customers bought 1.1 million sweet products, 1.1 million sandwiches and 1 million savoury products.

A further benefit comes from the money they generate for the community: in 2021, we donated £370,000 from the profit made by our 20 Outlet shops to local community groups that are working to tackle food poverty and associated issues.

4. HELPING OUR CUSTOMERS TO MAKE HEALTHIER CHOICES
By the end of 2022...

30% of all new products we create will be 'Healthier Choices'

4. HELPING OUR CUSTOMERS TO MAKE HEALTHIER CHOICES

Our commitment

By 2025, 30% of the items on our shelves will be healthier choices, and we will attract customers through education and promotions

Our progress so far

32% of the items on our shelves are healthier choices

Our vision is to be the customer's favourite for food-on-the-go. To achieve that, we know we need to offer great tasting, freshly prepared food that helps people stay healthy.

We might be famous for our sausage rolls and pasties, but we're starting to get a bit of a rep for being great at salads and soups too. Our new products are helping us reach a wider range of customers as well as helping our loyal regulars to cut their intake of salt, sugar and fat.

5. GOING CARBON NEUTRAL
By the end of 2022...

In line with our Scope 3 analysis, we will complete our Supplier Engagement Plan and publish our Science Based Targets

5. GOING CARBON NEUTRAL

Our commitment

By 2025, we will be on our way to achieving carbon neutrality by using 100% renewable energy across all of our operations

Our progress so far

We've assessed the carbon footprint of our whole value chain

The climate emergency requires swift, radical action so we have set up a Net Zero Taskforce to challenge the climate impact of every area of our operations and drive action to reduce it. We aim to be Net Zero by 2040 - a decade earlier than the UK government's plan.

We only purchase green electricity from the grid and want to be using 100% renewable energy across our operations by 2025. We aim to move to a Net Zero fleet by 2035 and, in the meantime, are training our drivers to use fuel efficiently. We recognise that our supply chain is the next area we need to focus on.

6. BUILDING THE SHOPS OF THE FUTURE
By the end of 2022...

We will open our first Eco-Shop and a further 250 shops will have Eco-Shop elements

6. BUILDING THE SHOPS OF THE FUTURE

Our commitment

By 2025, 25% of our shops will feature elements from our Eco-Shop 'shop of the future' design

The design of our shops and the equipment we use within them are a key focus as we look for ways to reduce the environmental impact of our operations. Every year, we open new shops and refit existing ones, and are embracing these opportunities to rethink our approach.

We spent 2021 putting the finishing touches to a template store design with sustainability at its heart. As well as thinking about how we fit out a shop and how we power it, the Eco-Shop design also uses less energy and saves water when a shop is up and running. During 2022, we are opening our first Eco-Shop built using our new template.

Our progress so far

We have created the Eco-Shop template

7. USING LESS PACKAGING
By the end of 2022...

We will include an On Pack Recycling Label on all own brand packaging and build our road-map to move all own brand packaging into 'recyclable criteria'

7. USING LESS PACKAGING

Our commitment

By 2025, we will use 25% less packaging, by weight, than we used in 2019 and any remaining packaging will be made from material that is widely recycled

Our progress so far

We've joined the On Pack Recycling Label scheme to make recycling communications easier to understand

We have pledged to cut the weight of packaging we use by a quarter. That includes not only what our food and drinks come wrapped in and the bag a customer uses to carry them out, but also our secondary packaging which is what we use to bring our products into our shops - most of which remains behind the scenes.

Some packaging is essential - it keeps our products intact, safe and fresh, and makes them easier to consume or transport - but we want to make sure we are never using more than is needed, and that we are making it from the right materials. For instance, all the paper or cardboard we use for our own brand packaging comes from sustainable sources.

8. EMBRACING DIVERSITY
By the end of 2022...

We will achieve the National Equality Standard Assessment

8. EMBRACING DIVERSITY

Our commitment

By 2025, our workforce will reflect the communities we serve

Our progress so far

500 managers attended an Inclusive Leadership workshop

At Greggs, we pride ourselves on our culture, creating an environment which is inclusive of everyone. We want everyone to feel welcome and to be able to be themselves at work, whatever their background, preferences or beliefs. We recognise that difference is good.

Not only does greater diversity make our business stronger, it makes us a more welcoming place. If our colleagues are representative of the communities we serve, we can better understand our customers and make sure they have a great experience when they visit us.

9. SOURCING SUSTAINABLY
By the end of 2022...

We will publish our Deforestation Policy, map supplier compliance and plan to be deforestation free by 2025

9. SOURCING SUSTAINABLY

Our commitment

By 2025, we will have a robust, responsible sourcing strategy in place and will report annually on progress towards our targets

Our progress so far

We completed our review of soy across all our ingredients, joined the UK Roundtable on Sustainable Soya (RTSS) and signed up to the UK Soy Manifesto

We believe in doing business in a way that helps to make both our planet and our communities safer and better. That means having sound social, ethical and environmental practices and choosing suppliers who share our values.

During 2021, we devised a five-year strategic plan to make sure that our approach to sourcing ingredients and packaging is as sustainable as our customers would expect. Our plan set out clearer targets on deforestation and packaging pollution and builds on our recent progress on the areas of modern slavery, animal welfare and climate change.

10. PROTECTING ANIMAL WELFARE
By the end of 2022...

We will ensure chicken stocking densities are a maximum of 38kg/m2

10. PROTECTING ANIMAL WELFARE

Our commitment

By 2025, we will secure and maintain Tier 1 in the BBFAW Animal Welfare standard

Our progress so far

We've created a roadmap to achieve a Tier 1 rating in the Business Benchmark on Farm Animal Welfare

Animal welfare is important to us: we expect all our meat, fish, dairy products and eggs to come from animals that have been well treated.

Over the last eight years, we've worked with our suppliers to implement the Greggs Farm Animal Welfare Standards to avoid the abuse or exploitation of animals. We developed this clear set of rules with consideration of the Farm Animal Welfare Committee's 'Five Freedoms'.

In 2021, we developed a clear roadmap to guide our business to improve our performance to reach Tier 1 of the Business Benchmark on Farm Animal Welfare.