Roger Whiteside, Chief Executive

Dedicated to doing good

Chief Executive Statement

It's our duty as a modern business to stand for more than just profit. The Greggs Pledge is all about how we can do more to help people, protect the planet, and work together with our partners to change the world for the better.

Greggs has a proud reputation of giving back. Since John Gregg founded the business in 1939, we have always tried to do the right thing by our people, our suppliers and our communities. These family values are at the heart of our culture. Today, Greggs is a company with a national presence, supporting hundreds of suppliers, employing thousands of people, and serving millions of consumers. The way we operate affects a great many people so being a good business is more important than ever. The global pandemic has reminded us all of the importance of community, the power of kindness, and the value of collaboration to tackle our biggest problems. Now, we must work together to rebuild our economies and address the complex social and environmental problems that we were already grappling with.

This report - our first full sustainability report - introduces the Greggs Pledge: ten things that we're doing to help make the world a better place by 2025 - and beyond.

We arrived at these pledges by talking with our own people and our external stakeholders, and by considering the issues that are most relevant to our business. Our pledges align with the ambitions of United Nations Sustainable Development Goals (SDGs).

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

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

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.

By the end of 2021, we will have…

…680 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.

For various reasons, many kids sadly don't get the right start to their day. Hungry children find it harder to concentrate and learn, ultimately impacting their academic attainment. Giving children a good start to their day gives them a good start in life so, in 1999, we launched our Breakfast Club programme to provide a free breakfast to children who need it.

Today there are 600 Breakfast Clubs across the UK, serving wholesome, free breakfasts to around 39,000 children every school day - that's 7.6 million meals a year.

We directly fund half of these clubs through the Greggs Foundation, and have welcomed onboard more than 100 local and national partners who provide grants to cover the costs of the other clubs.

By the end of 2021, we will have…

…reduced the amount of food waste we create in our manufacturing operations by 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 customers love our just-baked savouries and the sandwiches we make from bread baked that day, but our 'daily-fresh' approach presents us with a challenge: we have to bake enough so no-one's disappointed, but anything leftover becomes waste.

We've worked hard to reduce waste at every stage of the process, from our manufacturing sites to our retail forecasting and ordering system. Any unsold food left at the end of the day is offered to charities that can pass it on to people in the local community who need it. By the end of 2019, we had 1,700 organisations regularly collecting unsold food from us.

By 2025, we hope to be providing one million meals for people in need every year. However, our ultimate vision is for every unsold perishable food item to be spared from the bin.

By the end of 2021, 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.

Millions of people in the UK don't have enough to eat, or are living with the anxiety of not knowing where their next meal was coming from.

We currently have 13 Greggs Outlet shops around the UK where day-old food products are sold at a big reduction, helping people to spend less on food. We want to increase the number of Outlet shops to enable more people in the UK's more deprived areas to get our products at a big reduction.

We donate a share of our profits from these shops to the Greggs Foundation which passes it on to local community groups that are working to address food poverty and associated problems.

By 2025, we intend to increase the number of Outlet shops to 50.

By the end of 2021…

…25% of the items on our shelves 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 customers lead increasingly busy lives, meaning that convenience is often one of the most important factors influencing their food choices. We want to be the nation's favourite destination for food-on-the-go but aim to make sure that 'convenient' can go hand-in-hand with 'healthy.'

Our Balanced Choice range offers our customers healthier options, all sub-400 calories, when shopping with us. We provide calorie and nutritional information for all of our products either on shelf, or through our website and mobile app.

We have reformulated many of our traditional bakery products to reduce the amount of sugar, fat and calories they contain, whilst remaining true to their great tasting heritage. We have also developed vegan versions of our best sellers, helping people to lower their meat consumption.

By the end of 2021, we will have…

…completed Carbon Footprint modelling.

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.

Today, 96% of the electricity we use is from renewable sources, and is therefore carbon neutral. By 2025, we want to be using 100% renewable electricity.

We are proud signatories of the British Retail Consortium's 'Climate Action Roadmap' meaning that we have committed to be Net Zero by 2040 - ten years ahead of the current UK Government plan.

During 2021, we will complete the mapping of our whole carbon footprint, enabling us to set Science Based Targets and plot our pathway to net zero.

By the end of 2021, we will have…

…created initial design and operational requirements for our Eco-Shop.

6. BUILDING THE SHOPS OF THE FUTURE

Our commitment

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

We're always on the lookout for new green technologies that might work for Greggs. We've created a template for a shop that incorporates sustainable thinking from the design stage. The template considers how we build our shops, and what we make them out of, as well as the technology and fittings that we install and run inside them. It even considers how we decommission the shop and recycle components from it. This shop of the future template is helping us to push the boundaries of what is possible. We call it our Eco-Shop design.

By 2025, we want at least a quarter of our stores to feature elements from the Eco-Shop design.

By the end of 2021, we will have…

…reviewed all packaging against 'On Pack Recycling Label' (OPRL) criteria.

7. USING LESS PACKAGING

Our commitment

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.

Product packaging is obviously a necessity. We use it to keep things fresh and uncontaminated in our supply chain, and our customers need it to carry their purchases away from our shops. However, we want to make sure we are not using more than we need to.

We started with plastic and, in 2019, cut 350 tonnes of single-use plastics from our operations. By 2025, we want to eliminate all unnecessary single use plastic from our shops and manufacturing sites.

After plastic, our next biggest focus area is coffee cups. We are working with our industry peers to develop sector-wide improvements in the way we manage coffee cup usage and disposal.

By the end of 2021, we will have…

…completed the assessment process for the National Equality Standard.

8. EMBRACING DIVERSITY

Our commitment

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

We're pretty proud of our reputation as a good employer, but we're not complacent and recognise that there is more that we can do, particularly in the area of diversity. We want everyone to feel welcomed at Greggs and our colleagues to able to be themselves at work, whatever their background, preferences, or views. We also want to make sure there are no barriers that might stop anyone from growing a successful career with us.

We signed up to the National Equality Standard (NES) in 2017 and renewed our commitment in 2020.

We are working hard to improve the data we hold for our colleagues in relation to their gender, ethnic origin, sexual orientation and whether or not they have a disability. Knowing this will help us to develop plans to ensure we grow as a diverse company, representative of the communities we serve.

By the end of 2021, we will have…

…ensured all direct purchases of soy are verified as 'Identity Preserved' and have completed a review of all other uses of soy in our ingredients.

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.

When it comes to sourcing the ingredients that we need to make our products, or the goods and services that enable us to run our business, 'sourcing sustainably' means taking care that they are produced and delivered responsibly.

We treat our suppliers fairly and respect the human rights of workers in our supply chain. We are big supporters of British business and many of our suppliers are local but we also choose to buy Fairtrade products to support marginalised producers in developing countries.

We don't want to buy products that cause deforestation and are careful in how we procure paper products and anything containing palm.

By the end of 2021, we will have…

…developed and implemented our roadmap to achieve Tier 1 rating.

10. PROTECTING ANIMAL WELFARE

Our commitment

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

Animal welfare is a priority for Greggs. We only use free-range eggs, and we expect all livestock and seafood species reared or caught and supplied to us to have been well treated. Our suppliers must meet or exceed farm animal welfare regulations. We've set out these expectations in the Greggs Farm Animal Welfare Standards, a clear set of rules that we developed with consideration of the Farm Animal Welfare Committee's 'Five Freedoms'.

We participate in the annual Business Benchmark on Farm Animal Welfare (BBFAW) and, by 2025, intend to secure and then maintain Tier One rating. To do this, we are stepping up our efforts in the areas of management commitment, policy, governance and performance monitoring.