Corporate Responsibility by wuyunqing


									Corporate Responsibility                      At WHSmith corporate responsibility is an on-going journey;
                                              a search for new opportunities to improve our performance
                                              in all areas. This is not only good business practice; it is also
                                              the right thing to do.
                                              This commitment is now formalised in the Company’s Code
                                              of Business Conduct, which came into force in April 2003.
                                              While we are primarily focused on delivering value to our
                                              shareholders, the Code of Business Conduct takes into account
                                              the interests of all stakeholders: investors, employees, customers,
                                              suppliers, competitors and the wider community – as well as
                                              the environment shared by everyone.

                                              WHSmith’s Code of Business Conduct
                                              The Company is responsible to those who provide funding. We:
                                              – Provide financial reports that are accurate and timely.
                                              – Seek to use financial resources entrusted to us in ways
                                                that maximise value over time.
                                              – Communicate honestly to all concerned our policies,
                                                achievements, risks and prospects.
                                              – Work at all times to comply with the provisions of the
                                                London Stock Exchange Listing Rules and aim to comply
                                                with corporate governance best practice.

                                              The Company values its employees highly. We:
                                              – Respect the dignity and rights of all employees.
                                              – Provide healthy and safe work environments.
                                              – Have a transparent remuneration policy that rewards
                                                the contribution of our people.
                                              – Encourage employees to develop skills and progress
                                                their careers.
                                              – Do not tolerate any sexual, physical or mental harassment
                                                of our employees.
                                              – Do not discriminate on the grounds of race, gender,
                                                sexual orientation, age, disability or religion.
                                              – Do not employ underage employees.
Speak Up                                      – Encourage employees to report any suspicions of fraud
During 2003, we have put in                     or undesirable practice and we have introduced a process
place foundations of Speak Up,
a confidential helpline whereby                  to facilitate this (Speak Up).
employees are able to report
undesirable working practices.                Customers
Speak Up goes live early in 2004.             The Company’s customers are of paramount importance. We:
In the past WHSmith has encouraged            – Seek to be honest and fair in our dealings with our customers.
employees to report undesirable               – Provide the quality and standard of service that customers
working practices via channels such             have a right to expect.
as Human Resources, Group Risk or             – Provide and promote a range of products responsive to
Internal Audit. Whilst these channels
                                                customer needs that provide value for money.
still exist, we recognise that occasionally
there are sensitive issues that people        – Provide products that are safe, fit for purpose, meet legal
may not feel comfortable reporting              standards and are never described in a misleading manner.
in this manner.                               – Treat all customer complaints seriously and provide a readily
All matters reported via Speak Up               accessible source of advice and guidance regarding our
will be investigated promptly                   products and services.
and confidentially.
                                              The Company’s relations with its suppliers are based on
                                              mutual trust and respect. We:
                                              – Seek to be honest and fair in our relationships with suppliers.
                                              – Pay suppliers in accordance with agreed terms.
                                              – Respect any confidential information.
                                              – Respect copyright and intellectual property rights.
                                              – Have a policy not to offer, pay or accept bribes or
                                                substantial favours.
                                              – Have an ethical code of supply, communicated to our suppliers.
                                              – Work with our suppliers to ensure the standards set out in
                                                the Supply Code are met.

                                              The Company seeks to compete vigorously, but honestly. We:
                                              – Will not seek to gain advantage over our competitors
                                                by illegal means.

25 WH Smith PLC
Annual Report and Accounts 2003
Corporate Responsibility                                                             Community and environment
                                                                                     The Company seeks to be a good corporate citizen, respecting
continued                                                                            the laws of the countries in which we operate and contributing
                                                                                     to the communities in which we operate. We:
                                                                                     – Seek to be sensitive to the local community’s culture
                                                                                       and social and economic needs.
                                                                                     – Encourage our employees to be involved with local
                                                                                       communities to their mutual benefit.
                                                                                     – Measure and, where appropriate, seek to reduce the
                                                                                       environmental impacts of our business activities. We will
                                                                                       use energy and natural resources efficiently and reduce
                                                                                       our generation of waste.
                                                                                     WHSmith’s achievements in corporate responsibility so far are
                                                                                     receiving due recognition. The Company features in the
                                                                                     FTSE4Good Index of socially responsible companies and building
                                                                                     on our established place in the Business in the Community
                                                                                     Environmental Index, in 2003 WHSmith gained a place in
                                                                                     Business in the Community’s first Corporate Responsibility Index.
                                          FTSE4Good                                  And if a company can be judged by the company it keeps, the list
                                          The FTSE4Good Indices have been
                                          designed to measure the performance        of WHSmith’s memberships provides a positive indicator. These
                                          of companies that meet globally            organisations include the Ethical Trading Initiative, Institute of
                                          recognised corporate responsibility        Business Ethics, The Corporate Responsibility Group, Business
                                          standards, and to facilitate investment    in the Community and the Retail Energy and Environment Club.
                                          in those companies. FTSE4Good
                                          is used as a basis for the creation        Through our membership of these organisations, WHSmith takes
                                          of socially responsible investment         part in seminars and working groups to design processes to help
                                          products. It also provides a reference     us implement our Code of Business Conduct in a practical way.
                                          point for companies wishing to             Membership of these organisations also provides:
                                          achieve best practice in corporate
                                          responsibility standards.
                                                                                     – A forum for discussion on community and corporate
                                                                                       responsibility issues with a range of key stakeholders.
                                          FTSE4Good’s inclusion criteria are         – An opportunity to share and promote best practice
                                          regularly reviewed so that they reflect
                                          a broad market consensus on
                                                                                       in corporate responsibility.
                                          what constitutes good corporate            – An opportunity for corporate sector practitioners to develop
                                          responsibility practice as it evolves.       successful and sustainable corporate responsibility activities.
                                                                                     – An opportunity for corporate sector practitioners to
                                                                                       discuss improvements to the management of corporate
                                                                                       responsibility programmes.
                                                                                     – An opportunity to facilitate interaction between corporate
                                                                                       responsibility practitioners, voluntary and community groups,
                                                                                       government and other appropriate organisations.
                                                                                     To ensure corporate responsibility remains high on the business
                                                                                     agenda, the Board intends to form a Corporate Responsibility
                                                                                     Committee of the Board. Details of membership and terms
                                                                                     of reference will be posted on the Company’s website
                                                                                     WHSmith’s corporate responsibility activities focus on four broad
WHSmith TXT                                                                          categories: the community, the marketplace, the workplace and
‘It is essential that young people                                                   the environment.
receive the best possible education
and I passionately believe that                                                      The community
business has a part to play in helping                                               From its start as a newsagent in London in 1792, WHSmith’s
schools to achieve this. Through                                                     success has been founded on the written word. Therefore, it
WHSmith TXT we are focusing
our community efforts on a project                                                   is entirely appropriate that the Company’s flagship community
that helps make a real difference                                                    programme focuses on helping teachers to raise literacy skills
to literacy standards in schools,                                                    among students aged 11–14.
to the confidence of the students
involved, and ultimately to the                                                      Called WHSmith TXT, this initiative concentrates on selected
                                          2003 Chief Executive’s
way we do business.’                                                                 schools across the UK. These are chosen with the help of the
                                          Community Awards
Richard Handover,                         In 2003 Jessie Dunkley of WHSmith          Department for Education and Skills as well as external
Chief Executive, October 2001             Leicester was announced as the             consultants. Every year, for the past three years, WHSmith
‘In September 2002, through               overall winner of the WHSmith Chief        has provided each of the 104 participating schools with an
WHSmith TXT, I became a volunteer         Executive’s Community Awards. Her          annual £4,000 worth of books, magazines and gift vouchers –
reader at Islington Green School          £1,000 prize went to support her local     absolutely free.
in London. During my first year of         Parkinson’s Disease Society, for which
visiting, I was pleasantly surprised      Jessie serves as a visitor and telephone   A key part of the programme has also been the development
by the enthusiasm and commitment          befriender. ‘I’m thrilled to be            of relationships between individual schools and stores to
to learning of individual pupils and      recognised for the work I do,’ she said.   meet specific local needs. These relationships have opened
the progress that their reading made,
in a short space of time, as a result
                                          Other awards went to causes                up opportunities for volunteers from stores to become
                                          supported by employees in towns            involved in a range of other activities to promote literacy
of a little extra individual attention.   and cities across the UK including
I am delighted to be a part of the                                                   in participating schools.
                                          Cardiff, Glasgow, London,
programme again this year.’               Doncaster and Taunton.
Louise Evans,                                                                        Such volunteer work is nothing new for WHSmith’s 30,000
Media Relations Manager,                                                             employees, many of whom are active on a personal basis in their
WH Smith PLC                                                                         own communities. Recognising that these people are great
                                                                                     ambassadors for the Company, WHSmith’s Chief Executive’s
                                                                                     Community Awards spotlight their efforts. This £20,000
26 WH Smith PLC                                                                      programme annually awards grants of £1,000 to encourage
Annual Report and Accounts 2003                                                      the best examples of staff community involvement.
Corporate Responsibility                                                         More broadly, the WHSmith Trust (Registered Charity
                                                                                 No.1013782) supports the voluntary efforts of staff that
continued                                                                        are making a genuine difference in their local communities.
                                                                                 To date, some 500 organisations have benefited in this way,
                                                                                 with grants of up to £3,000 each.

                                                                                 The marketplace
                                                                                 As a responsible retailer, WHSmith aims to sell products that are
                                                                                 of high quality and made by people working in decent conditions,
                                                                                 with the minimum possible impact on the environment.
                                                                                 Since the Company’s supply chain circles the globe, this is not
                                                                                 an easy task. That is why WHSmith has embarked on a number
                                                                                 of partnerships with organisations in tune with these objectives.
                                         WHSmith Trust                           For example, WHSmith works with Envirowise, a government-
                                         Tye Lohrenz works at the                funded organisation that promotes environmental responsibility
                                         headquarters of WHSmith UK
                                         Retail in Swindon as part of the        in the supply chain. Envirowise offers suppliers help in identifying
                                         Store Development and Construction      the ways in which they can reduce overall environmental impact –
                                         team. During the year, with two         while at the same time saving themselves money and preserving
                                         friends, he undertook to raise funds    the world’s natural resources. Over the last year, WHSmith
                                         for the construction of a soft safety   suppliers who took part in the Envirowise Retail Supply Chain
                                         playing surface to enrich the lives
                                                                                 Partnership project identified ways of reducing their environmental
                                         of the children who attend Canon’s
                                         House. Canon’s House in Devizes         impact, worth an estimated £105,000 in cost savings.
                                         offers short-term away breaks for       Of course, as a leading publisher, and retailer of books, stationery,
                                         children and young people who have
                                         severe learning disabilities and who    newspapers and magazines, WHSmith is particularly committed
                                         may also have a physical disability.    to promoting responsible sourcing of forest products, such
                                         Tye and his friends undertook local     as paper and wood, in line with recommendations from the
                                         fundraising and, with a £1,000 grant    WWF 95+ Group. WHSmith is a member of the WWF 95+ Group,
One of our primary targets this year     from the WHSmith Trust, quickly         a partnership between WWF-UK and businesses who are
was to inform and raise awareness with   achieved their objective and            committed to acting responsibly and promoting responsible
our key external own brand suppliers     completed the project.
                                                                                 forestry. This means, at a minimum, ensuring that any wood and
about WHSmith’s commitment to
responsible management of the                                                    pulp in WHSmith branded products is from legally logged forests.
supply chain and our environmental                                               Wherever possible, however, the objective is to source products
requirements therein. To this end,                                               made from materials that originate from certified, well-managed
on 26 February 2003, in conjunction                                              forests such as those accredited by the Forestry Stewardship
with Envirowise, WHSmith hosted                                                  Council (FSC).
the Retail Supply Chain Partnership
Forum in Swindon for 25 delegates.                                               Similarly, membership of the Ethical Trading Initiative (ETI)
The Forum provided delegates                                                     links WHSmith with an organisation that aims to bring about
with a range of ideas to help them                                               improvements to the lives of workers and their families
identify practical ways of reducing                                              by applying internationally recognised labour standards.
their environmental impact.                                                      In alliance with the ETI, WHSmith hopes to continue to act as
These included six free workshops                                                a catalyst for change, working with suppliers to achieve the high
covering waste minimisation, water
minimisation, packaging optimisation,                                            standards on which the principle of ethical sourcing is built.
cleaner design, energy efficiency and                                             Since 2001 WHSmith has had an ethical code of conduct for
green procurement. In addition,
Envirowise undertook free on-site
                                                                                 suppliers. This has been implemented in the Far East with the
audits to help suppliers identify ways                                           help of local agents. In order to ensure greater control over
to reduce energy use and waste at        The Ethical Trading Initiative (ETI)    the implementation and monitoring of ethical standards of
their premises.                          Exists to identify and promote good     our Far East suppliers, we have appointed a Quality Manager
During the year we also sought to        practice in the implementation          who is based in Hong Kong. A large part of this role includes
inform and raise awareness among         of codes of labour practice. It is      engaging with suppliers to help them meet the requirements
our own buying and merchandising         an alliance of companies, non-          of our ethical code of conduct. This will enable us to form
teams about the importance of            government organisations and trade      stronger relationships and monitor improvements more
increasing the percentage of own         unions committed to working
                                         together to achieve this aim.           closely in the future.
brand timber-based product from
FSC certified sources that we use.        The ETI does not endorse the            Examples of some of the small changes which have taken place
To this end we brought our suppliers     practices of member companies
                                         but works with them to encourage
                                                                                 in our supply chain in the last 12 months include: ensuring that
and buyers together for a seminar
detailing our commitments to             continuous improvement.                 suppliers provide personal protective equipment to employees,
sourcing paper and wood products                                                 for example face masks and ear plugs, in hazardous environments;
                                         The ETI runs seminars, sets up
from well managed forests –              experimental projects and working
                                                                                 working with suppliers to ensure that employee representatives
consequently we estimate that            groups and holds meetings where         attend external first aid training programmes; working with
the overall volume of FSC certified       members share information,              suppliers to ensure that their premises have clearly defined
product we use has increased by          experience and solutions to             and marked emergency escape routes in case of fire.
2.5 per cent and we hope to build        common problems.
on this in the future.
                                         In the next 12 months WHSmith
                                         will be actively participating in the
                                         ETI’s China Working Group and
                                         Homeworkers Group.

27 WH Smith PLC
Annual Report and Accounts 2003
Corporate Responsibility          The workplace
                                  Closer to home, WHSmith pays the same attention to workplace
continued                         quality in the Company’s own shops, news houses, warehouses,
                                  offices and other facilities. Throughout, this means providing
                                  a safe, rewarding environment in which people are challenged
                                  to make a difference.
                                  The Board recognises the importance of maintaining high
                                  standards of health and safety for everyone who may be affected
                                  by our business. The effective management of health and safety
                                  is not only a legal issue but is also business critical as it affects
                                  reputation, investor confidence, supplier relationships and
                                  overall profitability.
                                  Maintaining high standards of health and safety for everyone
                                  who may be affected by our business is at the forefront of
                                  everything we do and, as a matter of course, the Company’s
                                  health and safety policy is regularly reviewed by the WHSmith
                                  Board to ensure that high standards are maintained. A copy
                                  of the policy may be viewed on the Company’s website at
                                  The policy states that all employees have a responsibility for
                                  health and safety but that managers and supervisors have special
                                  responsibilities. Additional duties are placed on the directors of
                                  each of the Company’s businesses and the Group Finance Director,
                                  John Warren, is specifically tasked with keeping the Board advised
                                  on health and safety issues, compliance with the policy and
                                  ensuring that suitable support is available to the businesses.
                                  Management teams in each business, supported by professional
                                  safety advisors from the Group Risk Department (GRD), monitor
                                  key safety performance indicators and an annual report of each
                                  business detailing trends, performance and recommendations
                                  is presented to the Board. Each business also has a properly
                                  constituted health and safety committee that comprises employees’
                                  representatives, management, trade union safety representatives
                                  and officials. All work place accidents are monitored by the GRD.
                                  This helps to identify trends and put in place early remedial action
                                  to prevent re-occurrence.
                                  The numbers of accidents affecting the Company are
                                  illustrated below:
                                  Accidents and incidents
                                  (Rate per 100,000 employees)                  2003        2002           2001
                                  Major injury                                   86          69             79
                                  Injury resulting in over
                                  3 days absence from work                      557         451            564
                                  All RIDDORS*                                  643         520            643

                                  * The number of accidents legally reportable under the Reporting
                                  of Injuries, Diseases and Dangerous Occurrence Regulations.
                                  In the past year the workplace accident performance rate per
                                  100,000 employees was 643 – identical to the 2001 figure and
                                  disappointingly higher than the 2002 rate. Most of these accidents
                                  have involved manual handling, slips, trips and falls and striking
                                  against or being struck by objects. It is our firm intention to
                                  address the root causes of accidents. Strategies on how we will
                                  improve in this area will be reported in the corporate responsibility
                                  section of the WHSmith website.
                                  Accidents by type 1 September 2002 – 31 August 2003
                                  1. Handling 26%                                                 78
                                  2. Struck by fixed object 22%                                6        1

                                  3. Struck by moving/falling object 17%
                                  4. Slip/trip/fall 16%
                                  5. Other 11%
                                  6. Fall from height 5%
                                  7. Hand tools 2%
                                  8. Physical assault 1%                                           3

28 WH Smith PLC
Annual Report and Accounts 2003
Corporate Responsibility                                                            While safety must be the primary issue in any discussion of the
                                                                                    workplace, other improvements are important as well.
                                                                                    Introduction of flexible working policies, for example, is helping
                                                                                    staff adapt to increasingly demanding lives, while giving the
                                                                                    Company the edge in retaining experienced, well-trained staff.
                                                                                    Working pattern options now include term-time working, job
                                                                                    shares and career breaks.
                                                                                    As part of an abiding commitment to equal opportunities, racial
                                                                                    equality and workforce diversity, WHSmith has taken part in two
                                                                                    important annual benchmarking surveys for Opportunity Now
                                                                                    (which focuses on gender) and Race for Opportunity.
                                                                                    While the feedback from these surveys has highlighted that
                                                                                    WHSmith has some excellent policies and practices in place,
                                                                                    for example term-time working, they have also highlighted
                                                                                    the need for WHSmith to prepare an in-depth diversity strategy.
                                                                                    The first step towards this, which we are currently working on,
                                                                                    involves assessing the possibility of employing a diversity
                                                                                    manager to co-ordinate our approach across the Group.
                                                                                    Respected employees make for a highly productive workforce.
                                                                                    The WHSmith’s Christmas Awards are a new initiative that
                                                                                    recognise this and reward employees who contribute to
                                                                                    delivering excellence for customers over Christmas.
                                                                                    The Christmas Awards are separated into three areas: stores,
                                                                                    head office and area managers. Individuals are assessed in
                                                                                    terms of service and standards by mystery shoppers. There is
                                                                                    also an additional award for the Best Store Leader voted for
John Dickinson Stationery                                                           by store employees who believe that he or she has demonstrated
John Dickinson Stationery Limited is                                                exceptional leadership.
based in Cambridge and manufactures
paper stationery for WHSmith.                                                       Winners in the Best Store Leader category in 2002 were Wendy
Standardisation of raw materials and                                                Croall of Arbroath Store and Debbie Lansdown of WHSmith
a reduction of packaging have helped                                                Bexleyheath, who both won £3,000 for their outstanding
the company stay ahead of the
deflationary curve that the industry                                                 contribution over the key Christmas trading period. Winners
is experiencing. The company has                                                    in the Best Support Team Category were Central Operations
already identified cost savings of                                                   and the Communications Team.
£57,000 this year, as a result of their
actions taken. For example, by            Bookpoint                                 The environment
switching to larger pallets, the          In 2002, Bookpoint, the provider of       WHSmith is committed to reducing the environmental impact
business has increased pallet fill,        distribution services to the publishing
and now uses fewer pallets, overall.                                                of its business activities. As part of that effort, the Company has
                                          industry, embarked on a project           implemented an Environmental Management System covering
Further savings in the order of           to establish an Environmental
£22,500 through minor changes to          Management System and gain
                                                                                    all UK operations and we are working to extend its remit to
product make up and manufacturing         ISO140001 registration for its site       our non-UK operations.
methods are also expected in the          in Oxfordshire.
coming year.                                                                        The system is administered by an Environmental Action Team,
                                          Site Facilities Manager Derek             chaired by the Corporate Responsibility Manager. Meeting
‘The WHSmith Retail Supply Chain          Hamilton’s first task was to appoint
Partnership Forum has changed                                                       quarterly, the team monitors progress against agreed targets and
                                          a Green Team to co-ordinate the
significantly the way we look at our       project and galvanise employee
                                                                                    ensures that all WHSmith businesses are kept aware of relevant
product development and forced us         support. A series of targets relating     issues and legislative developments in the environmental area.
to question almost everything we do       to the key impact areas of energy,
with regard to product make-up. If an                                               Environmental impacts
                                          waste and resource use were set, and
action doesn’t really add value to our    the action plan to meet these and                                                  2002/03                   2001/02
customer we no longer undertake it.’      an employee awareness raising
Graeme Hargreaves, Retail Business                                                  Energy                       159,4250,000 Kwh           163,941,000 Kwh
                                          campaign were put in place.
Sales Manager,                                                                      Waste                            49,500 tonnes             48,400 tonnes
John Dickinson Ltd.                       One year on, the Green Team has
                                          achieved actual year on year savings
                                                                                    Transport                      85,163,000 kms            84,157,000 kms
                                          of £51,000, with a full year projected    Water                               195,200 m3                203,200 m3
                                          saving of £66,000. Highlights             CO2 emissions                   127,900 tonnes            128,750 tonnes
                                          have included reducing paper
                                          consumption by an estimated 10,000
                                                                                    CO2 emissions have been calculated based on the energy and transport figures.
                                          A4 pages per month and reducing
                                                                                    The 2001/02 figure was adjusted to take account of an amendment in the
                                          waste tonnage to landfill by 53 per
                                                                                    DEFRA guidelines on calculating CO2 emissions following identification
                                          cent. The original target to reduce
                                                                                    of an error in their conversion factor for road freight.
                                          energy consumption by 5 per cent
                                          was surpassed with the actual
                                          reduction coming in at 10.6 per cent.
                                          The team’s efforts were rewarded this
                                          year as Bookpoint successfully gained
                                          ISO14001 status.

29 WH Smith PLC
Annual Report and Accounts 2003
Corporate Responsibility          Objectives 2002/03
                                  1. To undertake an energy saving campaign within WHSmith
continued                            UK Retail’s regional business.
                                  Progress: WHSaving Energy – Care for the Environment is a
                                  poster campaign designed to give employees tips on how they
                                  could save energy, water and waste both at work and at home.
                                  The poster has been distributed to all of our UK businesses
                                  during the year.
                                  Our engineers have also visited the seven regional stores with
                                  the highest energy consumption to provide store managers
                                  with information on how to reduce the energy consumed.
                                  Data management software that reduces the lag in reported
                                  information on energy use and allows more rapid response
                                  to high-energy users has also been updated across the business.

                                  2. To reduce gas consumption across the retail business by
                                     7 per cent per square foot and to reduce energy consumption
                                     at the head office of WHSmith UK Retail by 5 per cent.
                                  Progress: A reduction of 6.7 per cent per square foot in gas
                                  consumption has been achieved across the retail business and
                                  a 4 per cent reduction in total energy consumption has been
                                  achieved at the head offices of WHSmith UK Retail in Swindon.
                                  The heating and hot water at the headquarters of the UK Retail
                                  business in Swindon is provided by three 1-mega watt dual fired
                                  boilers. The three units were beyond their economical life and
                                  therefore over the last four years each section of the warehouse
                                  (three in total) have been converted to a high velocity ducted
                                  warm heating system.
                                  The final requirement was to install two smaller boilers for the
                                  ancillary areas and a hot water generator for staff restaurant and
                                  toilet facilities, thus allowing the removal of the old boiler system.
                                  This work was completed at the beginning of 2003, which when
                                  comparing the energy usage at Swindon on a year on year
                                  basis, has resulted in an energy saving as previously stated.
                                  Five news distribution centres have also been identified as targets
                                  to reduce energy consumption and in the current financial year
                                  work on this will begin.

                                  Waste generated at WHSmith UK Retail headquarters in Swindon
                                  1998/99   1,290 tonnes
                                  1999/00   1,208 tonnes
                                  2000/01   976 tonnes
                                  2001/02   894 tonnes
                                  2002/03   653 tonnes
                                                                                    1,290 tonnes

                                                                                                   1,208 tonnes

                                                                                                                  976 tonnes

                                                                                                                               894 tonnes

                                                                                                                                            653 tonnes



                                  3. To review all waste management contracts across the Group
                                     with a view to achieving environmental improvements and
                                     business benefits.
                                  Progress: The waste management contracts across the Group have
                                  been reviewed. We anticipate that new contracts will be signed off
                                  in the first quarter of the financial year 2003/04, which will not
                                  only bring about financial benefits to the business but will also
                                  allow us to increase the amount of waste that is recycled.

30 WH Smith PLC
Annual Report and Accounts 2003
Corporate Responsibility                                                         4. To identify and implement actions to reduce the impacts
                                                                                    of our Company car fleet.
                                                                                 Progress: Company Car Profile – in the last 12 months average
                                                                                 CO2 emissions have reduced by 2 per cent on petrol cars to
                                                                                 201g/km and 2 per cent on diesel cars to 155g/km. Fuel efficiency
                                                                                 has improved by 2 per cent on petrol cars and 1 per cent on diesel.
                                                                                 The number of people choosing a diesel car has increased by
                                                                                 5 per cent, resulting in a fleet ratio of petrol 35 per cent and
                                                                                 diesel 65 per cent.
                                                                                 The Company car fleet travelled approximately 15,657,300 kms
                                                                                 for business purposes, which is approximately 4 per cent less
                                                                                 than last year.

                                                                                 5. To extend the trial on ideal delivery frequency to cover the
                                                                                    whole of the UK Retail distribution network, resulting in
                                                                                    increased efficiency in fuel consumption.
                                                                                 Progress: This trial was not rolled out because other projects took
                                                                                 precedence. However, a number of other initiatives, including, the
                                                                                 purchase of 20 new vehicles which are the most fuel efficient on
                                                                                 the market and a number of optimised routes will help towards
                                                                                 increasing efficiency in fuel consumption going forward.

                                                                                 6. To improve the quality of mileage and fuel use data available
                                                                                    for the News Distribution fleet – particularly for the WHSmith
                                                                                    owned vehicles.
                                                                                 Progress: A fuel and mileage monitor has been developed, and
                                                                                 implemented at the majority of locations. This enables mileage
                                                                                 and fuel used to be reconciled and has resulted in reduced
                                                                                 consumption at some sites by identifying under performing
                                                                                 vehicles. Enhanced reports are also now available from our
                                                                                 vehicle maintenance provider, giving actual mileages for our
                                                                                 own commercial vehicles.
                                                                                 In addition, we have invested considerably in the commercial
                                                                                 fleet this year, improving the age profile and raising the number
                                                                                 of newer vehicles, which are more fuel-efficient.
                                                                                 Five vehicles serving Heathrow airport have been fitted with
                                                                                 particulate traps which dramatically reduces emissions. These
                                                                                 vehicles are supported by Powershift grants.
                                                                                 A sound environmental policy should have as wide a constituency
                                                                                 as possible, involving customers as well as employees. To that end,
                                         The Woodland Trust
                                         Established in 1972, The Woodland       WHSmith has been a leader in the campaign to promote the
                                         Trust is the UK’s leading woodland      recycling of inkjet cartridges. To encourage customers to
                                         conservation charity and has over       participate in this campaign, a donation is made to WWF, the
                                         250,000 members and supporters.         global environment network, for every cartridge returned. This
                                         The Trust has four key aims:            supports WWF in its mission to promote responsible environment
                                         – To stop further loss
                                                                                 practices, by avoiding wasteful consumption and managing waste
                                           of ancient woodland.
                                         – To restore and improve                with care.
                                           the biodiversity of woods.            Similarly, WHSmith has continued support for the Woodland
                                         – To increase new native woodland.
                                         – To increase people’s awareness        Trust in its Christmas Card recycling scheme. In 2003, customers
Inkjet Recycling                                                                 recycled 22 million cards or 432 tonnes of used Christmas cards
Environmental Business Products            and enjoyment of woodland.
(EBP) is the world’s largest supplier
                                                                                 at WHSmith stores between 6 January and 2 February; a 21 per
                                         The Woodland Trust now has
of re-manufactured inkjet and            over 1,100 sites in its care covering   cent increase in the number of cards recycled in 2002. This not
compatible inkjet cartridges.            approximately 47,000 acres and it       only raised awareness of the importance of recycling, but also
WHSmith has worked with EBP              offers free public access to nearly     prevented a significant amount of waste from being dumped as
for over three years on a scheme to      all of its sites.                       landfill. The funds raised help create and care for new woodland
encourage customers to recycle their                                             across the UK.
empty inkjet cartridges using the        In thanks for the support of
                                         WHSmith’s Christmas card recycling
freepost envelopes available in store.
                                         scheme, the Woodland Trust has
                                                                                 All of WHSmith’s efforts and initiatives in corporate responsibility
For every inkjet cartridge that is       dedicated a stand of trees in Hucking   have a unified objective we are working towards: a safe, contented
returned to EBP for re-manufacture,      Estate, Kent to the Company.            workforce selling top-quality, ethically produced, environmentally
EBP donates at least 50p to the WWF                                              sound merchandise in a way that benefits every community in
(75p per cartridge up to £10,000 and                                             which the Company is involved. In achieving this goal, benefits
50p per cartridge thereafter) and
                                                                                 will also accrue to WHSmith itself, providing real shareholder
in the last six months WHSmith
customers have helped raise in excess                                            value in the form of a satisfied and sustainable customer base.
of £10,000 to support the WWF in
their work.

31 WH Smith PLC
Annual Report and Accounts 2003 06/05/2006

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