Investor Presentaiton

18 Stakeholder review Suppliers and business partners Communities 19 19 Annual Report 2023 Woolworths Group Only through maintaining strong relationships with our suppliers and business partners can we deliver better outcomes for our customers and enable a greater impact for change across our shared value chain. Better together in partnership By working closely with our small suppliers, we can deliver a localised and curated range to our customers as well as support the local communities in which we operate. Key initiatives to help them include our Seedlab Australia partnership which helps small suppliers to become retail ready; sharing curated business performance data through our analytics business, wiq; and small supplier payment terms with 14-day terms to support cash flow. Such initiatives have resulted in a four point improvement in our Voice of Supplier score for small suppliers in F23. Woolworths Group has one of the largest retail supply chains in Australia and New Zealand. We are committed to building a rights-respecting approach across our business where modern slavery risks are identified, managed and mitigated. We work directly with our global trade and non-trade suppliers to embed respect for human rights into our everyday decisions and throughout our value chain. Our Human Rights Program underpins our work with suppliers and defines our approach to managing human rights risks across the Group's supply chain. In F22, Woolworths Group reported its first identified case of modern slavery, and in F23, remediation was completed for 230 (98%) of impacted workers. During the year, 885 supply chain audits across our fresh and own brand supply chains were completed resulting in 238 critical findings, with 67 closed and the remainder being actively monitored. Supporting Indigenous suppliers In 2022, Woolworths Group updated its Procurement Policy, clarifying the definition of an Indigenous supplier while providing greater flexibility in procurement processes to support spend with Indigenous suppliers. In the same year, we launched our internal Indigenous business directory and participated in Supply Nation's connect event as an exhibitor, meeting Indigenous businesses and industry leaders to build relationships and connections. To support the growth of Indigenous businesses we have committed to increasing our influenceable spend with non-trade First Nations suppliers to 3% by 2025 as part of our latest Reconciliation Action Plan. Work is also underway on supplier capacity building to implement the Priority Industry Principles with all own brand suppliers in Malaysia and Thailand. Further information can be found in our 2023 Modern Slavery Statement The value chain generates most of the Group's scope 3 emissions, which are approximately 15 times greater than our scope 1 and 2 emissions combined, with purchased goods and services covering 80-85%. In 2022, we commenced a pilot engagement program with our suppliers in partnership with The Sustainability Consortium. We invited 55 suppliers across Australia and New Zealand from six categories significantly contributing to emissions across our value chain. We piloted a multi-retailer, science-based decision tool, THESIS on SupplyShift, to capture emissions intensity data and, over time, its trajectory through the value chain. The program aimed to provide the opportunity to share progress as companies work towards their own established goals and support those starting out to understand their own emissions profile and taking action to reduce it. More detailed information can be found in our climate and nature disclosure on pages 42 to 59 Reconcitation Action Phan For more information read our Reconciliation Action Plan FareShare Supporting the communities in which we serve is essential to the long-term sustainability of the Group. As one of Australia and New Zealand's largest retailers, we want to have a positive impact on all communities through our expansive retail and wholesale network. Positive impact today and every day We are committed to positively impacting our communities by investing the equivalent of no less than 1% of our total Group earnings before tax (EBT) in community partnerships and programs, which totalled 3.61% of EBT on a rolling two-year average in F23. In February 2023, New Zealand faced devastating weather events, including flooding and Cyclone Gabrielle. Given Countdown's national footprint, we played a crucial role in helping with community recovery. In the first half of 2023, we donated more than NZD$450,000 in food and funds to our partners on the ground and government organisations to support those affected. With our customers' generous support, Countdown raised over NZD$252,000 for the Mayoral Relief Funds, New Zealand Red Cross, and local community partners. We also donated more than 80 tonnes of water, meat, fruit, vegetables and other essentials to evacuation centres in Auckland, Gisborne, and Hawkes Bay. In addition, Countdown announced support to help growers recover from the impact, including NZD$700,000 in cash grants, a NZD$50,000 donation to Rural Support and other in-kind assistance. In Australia, the Group's Support Through Australian Natural Disasters (S.T.A.N.D.) program helps our communities during times of natural disasters, such as the devastating floods that hit WA, Vic and NSW in F23. Funds raised through our S.T.A.N.D. program this past year, including our annual donation of $500,000, enabled The Salvation Army to provide immediate relief to affected communities. Our latest innovate Reconciliation Action Plan, endorsed by Reconciliation Australia, is part of our reconciliation strategy and a call to action to our team, partners, and all Australians to move from 'safe' to 'brave' in regard to reconciliation. The plan details 97 deliverables to increase reconciliation through a number of areas, including First Nations employment, health, education, and sourcing. It also includes key initiatives such as a $10 million investment in a national First Nations residential college at the University of Technology in Sydney, as well as ongoing commitments with our remote retailer partnerships to ensure the supply of food and essential goods to remote Indigenous communities. Caring Austr commu PACK Mini Woolies Cele Au fre 1 This collaborative program between Woolworths Supermarkets and Fujitsu provides hands-on learning experiences for students and job candidates living with disabilities. Since its inception in 2018, it has grown to more than 41 locations and offered experiences to more than 3,000 young Australians. BIG W partners with the Australian Literacy and Numeracy Foundation (ALNF) to deliver the innovative Breakfast Library program to kids, supporting 30 schools each week.. In F23, over $220,000 was raised for the ALNF during Book Week and the Back to School campaign in H2. The program is focused on First Nations and vulnerable communities, and provides children with a healthy breakfast, a new book each week, and reading sessions to improve literacy outcomes. In 2023, BIG W has helped to provide over 20,000 high quality books for children as part of the Breakfast Library program. highlights Performance 2 review Business 3 Directors' Report 4 Financial Report LO Other information