Investor Presentaiton

48 49 49 49 Reducing our scope 1 and 2 emissions Scope 1 and 2 emissions are those directly within Woolworths Group's operational control. Our material scope 1 emissions sources include fugitive synthetic refrigerants, transport fuel for fleet cars and home delivery trucks, and natural gas. Our scope 2 emissions comprise the largest part of our operational footprint which is the electricity we use across our store network, distribution centres and offices. Scope 1 Scope 2 Scope 1.... (-20%) + Scope 2.... (-80%) Refrigeration, transport fuels, natural gas Electricity use across all stores, DCs and offices 6 Woolworths Group is committed to working towards achieving a 63% reduction in emissions from our operations (scope 1 and 2) by 2030, a commitment ratified by the SBTI' in 2020. F23 marks a transition to include market-based scope 2 electricity reporting. 2 This methodology enables us to account for the investment we are making in renewable electricity and helps us track progress against the reduction trajectory shown on pages 46-47. Over the past 12 months, our scope 1 and 2 emissions have reduced 8% due to ongoing grid decarbonisation, energy efficiency work and ongoing transcritical refrigeration upgrades. Our cumulative emissions reduction since 2015 is now up to 36%. This year, we launched our first transport decarbonisation strategy giving us a clear emissions trajectory to address all material scope 1 and 2 emissions. In November 2022, the Clean Energy Regulator (CER) provided new guidance on the treatment of Australian Carbon Credit Units issued for projects registered with the Emissions Reduction Fund (ERF). Since 2016, Woolworths Group has registered projects in the ERF, delivering emissions reductions through energy efficiency and waste reduction. We have adjusted our F22 and F23 emissions to reflect the new guidance from the CER. Full details of our emissions footprint, including these adjustments, can be found in the 2023 Sustainability Data Pack. Partnering to reduce scope 3 emissions Woolworths Group's scope 3 represents the majority of our emissions - at 29.7 million tonnes, these are approximately 15 times greater than our scope 1 and 2 emissions combined, with purchased goods and services representing 80-85% of this. Our current aim under the SBTI, ratified in 2020, is to reduce scope 3 emissions by 19% by 2030, which we acknowledge is not aligned with a 1.5°C pathway. In F24, we intend to update our SBTi target to reflect emissions related to FLAG Guidance. Achieving reductions across the value chain presents a new set of challenges that requires a total systems-based approach. In addition to leveraging existing emissions reduction solutions, we continue to seek out different and innovative solutions to define a path forward. In F23, we applied a test-and-learn approach focused on partnerships and pilots to learn about our suppliers' emissions footprints. Given the proportion of our footprint related to land use and agriculture, adoption of sustainable and regenerative agriculture practices - as part of implementing broader nature-based solutions - will be crucial to our decarbonisation strategy. This approach enables us and our suppliers to identify and implement targeted interventions that both reduce emissions and improve our natural resources stewardship. Both our suppliers and our customers are crucial to enable scope 3 emissions reductions, with supply and demand levers offering significant emissions reduction opportunities.1 Following the first disclosure of our scope 3 emissions footprint in F22, we have continued to improve our approach. We introduced confidence ratings against our reported categories which acknowledges that we have differing levels of visibility over our footprint. The development of an end-to-end scope 3 strategy - a key priority during F24 - will allow us to forecast future emissions reductions across our whole value chain and work with our partners to realise these reductions going forward. 1 CATEGORY Million tonnes CO2-e F23 YOY CHANGE SCOPE 3 PROPORTION EMISSIONS CONFIDENCE Annual Report 2023 Woolworths Group 1 highlights Performance 2 Business review 3 Actions completed to date contributing to our emissions reductions: installed 231 solar systems across Australia and New Zealand, totalling 48MW, with a further >16MW under construction. Also signed renewable energy contracts in SA (100%), WA (50%), and a pathway secured in NSW for 100% spent over $30 million on energy initiatives in F23 covering refrigeration and lighting upgrades and improving our ability to monitor and control energy use delivered 15 Green Star ratings with another 22 underway across the Group formalised our transport decarbonisation strategy, which includes the commitment of a 100% EV last-mile delivery fleet in Australia and New Zealand, helping reduce our transport emissions by 60% in 2030 vs F22. 1 The SBTI assesses and approves companies' targets through a scientific lens, ensuring alignment with the Paris Agreement goal of limiting climate change to an increase of 1.5°C above pre-industrial levels. 2 Market-based reporting reflects emissions based upon the amount of renewable electricity a company procures. Location-based reporting reflects the average emissions intensity of grids in which energy consumption occurs. It is best practice to report on both methods. Scope 3 (Upstream) Scope 3 (Downstream) Purchased goods and services 24.2 -2% 81.3% Medium 2 Capital goods 0.3 -9% 1.0% Medium Directors' Report 3 Fuel- and energy-related activities 0.2 +12% 0.6% High 4 لمما Upstream transportation and distribution 0.3 +18% 1.1% Medium 5 Waste generated in operations 0.1 -5% 0.4% High 6 Business travel <0.1 +54% <0.1% High 4 7 Employee commuting 0.3 +5% 0.9% Low 8 Upstream leased assets 0.3 -15% 1.1% Medium 9 11 12 14 15 Downstream transportation and distribution, لمما use of sold products, end-of-life treatment 4.0 +6% 13.5% Low of sold products, franchises, investments TOTAL 29.7 -1% -211,000 tonnes Financial Report LO Emissions confidence legend High-supplier-specific emissions factors, or other calculations based on direct measurement Medium - spend-based emissions factors, typically updated annually to reflect sectoral emissions reductions Low - indirect estimates or calculations based upon industry/geographic averages, updated irregularly 1 IPCC AR6 Mitigation of Climate Change Demand-side mitigation options by 2050. information Other

View entire presentation